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11.7.2012 Official
Journal
of
the
European
Union L
179/19
COUNCIL DECISION
of 22 June 2012
abrogating Decision 2010/422/EU on the existence of an excessive deficit in Bulgaria
(2012/370/EU)
THE COUNCIL OF THE EUROPEAN UNION,
should take a decision on the basis of notified data.
Moreover, a decision on the existence of an excessive
deficit should be abrogated only if the Commission
Having regard to the Treaty on the Functioning of the European
forecasts indicate that the deficit will not exceed the
Union, and in particular Article 126(12) thereof,
3 % of GDP threshold over the forecast horizon ( 5 ).
Having regard to the recommendation from the European
Commission,
(5) Based
on
data
provided
by
the
Commission
(Eurostat)
in
accordance with Article 14 of Regulation (EC) No
479/2009 following the notification by Bulgaria before
1 April 2012 and on the Commission services 2012
Whereas:
spring forecast, the following conclusions are justified:
(1) On
13
July
2010,
by
Decision
2010/422/EU
( 1 ),
following a proposal from the Commission in
— The budgetary targets have been consistently over
accordance with Article 126(6) of the Treaty, the
achieved in the period following the year of the
Council decided that an excessive deficit existed in
excessive deficit. The general government deficit was
Bulgaria. The Council noted that the general government
reduced to 3,1 % of GDP in 2010 and decreased
deficit reached 3,9 % of GDP in 2009, above the 3 % of
further to 2,1 % of GDP in 2011, against initially
GDP Treaty reference value, while the general
set targets of 3,8 % and 2,5 % respectively. The
government gross debt was 14,8 % of GDP, well below
correction of the deficit has been driven mainly by
the 60 % of GDP Treaty reference value ( 2 ).
strict control of expenditure growth, including
through freezing the government sector wage bill
and pensions, which led the expenditure-to-GDP
(2) On
13
July
2010,
in
accordance
with
Article
126(7)
of
ratio to fall by 5,5 percentage points between 2009
the Treaty and Article 3(4) of Council Regulation (EC) No
and 2011. The 2012 Convergence Programme
1467/97 of 7 July 1997 on speeding up and clarifying
projects the deficit to continue falling to 1,6 % of
the implementation of the excessive deficit procedure (
GDP in 2012 and 1,3 % of GDP in 2013. In the

3 ),
the Council, based on a recommendation from the
Commission services 2012 spring forecast the
Commission, addressed a recommendation to Bulgaria
general government deficit is projected to improve
with a view to bringing the excessive deficit situation
to 1,9 % of GDP in 2012 and to 1,7 % of GDP in
to an end by 2011 at the latest. The recommendation
2013, supported by a continued freeze in the
was made public.
government sector wage bill, as well as a cyclical
improvement in revenues.
(3) In
accordance
with
Article
4
of
the
Protocol
on
the
excessive deficit procedure annexed to the Treaties, the
— The Commission services 2012 spring forecast
Commission provides the data for the implementation of
projects a cyclically adjusted balance net of one-off
the procedure. As part of the application of this Protocol,
and temporary measures of 0,7 % in 2012 and of
Member States are to notify data on government deficits
0,8 % of GDP in 2013, under a no-policy-change
and debt and other associated variables twice a year,
assumption. Meanwhile, in 2012 and 2013, the
namely before 1 April and before 1 October, in
growth rate of government expenditure net of discre
accordance with Article 3 of Council Regulation (EC)
tionary revenue measures is forecast to remain below
No 479/2009 of 25 May 2009 on the application of
the benchmark reference medium-term rate of
the Protocol on the excessive deficit procedure annexed
potential GDP growth, as specified in Article 5(1)
to the Treaty establishing the European Community ( 4 ).
of Council Regulation (EC) No 1466/97 of 7 July
1997 on the strengthening of the surveillance of
budgetary positions and the surveillance and coor
(4) When
considering
whether
a
decision
on
the
existence
of
dination of economic policies ( 6 ).
an excessive deficit should be abrogated, the Council
( 5 ) In line with the ‘Specifications on the implementation of the
( 1 ) OJ L 199, 31.7.2010, p. 26.
Stability and Growth Pact and Guidelines on the format and
( 2 ) The general government deficit and debt for 2009 were
content of Stability and Convergence Programmes’, as agreed by
subsequently revised to currently 4,3 % of GDP and 14,6 % of
the Council on 24 January 2012. See: http://ec.europa.eu/
GDP respectively.
economy_finance/economic_governance/sgp/pdf/coc/code_of_
( 3 ) OJ L 209, 2.8.1997, p. 6.
conduct_en.pdf
( 4 ) OJ L 145, 10.6.2009, p. 1.
( 6 ) OJ L 209, 2.8.1997, p. 1.

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L 179/20
EN
Official Journal of the European Union
11.7.2012
— The Commission services 2012 spring forecast
HAS ADOPTED THIS DECISION:
projects the general government gross debt to
increase moderately from 16,3 % of GDP in 2011
Article 1
to 18,5 % of GDP in 2013. This debt forecast does
not include possible external debt issuance in 2012
From an overall assessment it follows that the excessive deficit
to pre-fund the repayment of euro-denominated
situation in Bulgaria has been corrected.
bonds of around 2 % of GDP in January 2013. Simi
larly, the latest convergence programme projects the
Article 2
debt ratio to increase to 18,4 % by 2013.
Decision 2010/422/EU is hereby abrogated.
Article 3
(6) In
accordance
with
Article
126(12)
of
the
Treaty,
a
Council Decision on the existence of an excessive
This Decision is addressed to the Republic of Bulgaria.
deficit is to be abrogated when the excessive deficit in
the Member State concerned has, in the view of the
Council, been corrected.
Done at Luxembourg, 22 June 2012.
For the Council
(7) In the view of the Council, the excessive deficit in
Bulgaria has been corrected and Decision 2010/422/EU
The President
should therefore be abrogated,
M. VESTAGER

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