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16.7.2011 Official
Journal
of
the
European
Union L
187/27
DECISIONS
COUNCIL DECISION
of 12 July 2011
abrogating Decision 2010/408/EU on the existence of an excessive deficit in Finland
(2011/417/EU)
THE COUNCIL OF THE EUROPEAN UNION,
the Commission provides the data for the implemen
tation of this procedure. As part of the application of
this Protocol, Member States are to notify data on
government deficits and debt and other associated
Having regard to the Treaty on the Functioning of the European
variables twice a year, namely before 1 April and
Union, and in particular Article 126(12) thereof,
before 1 October, in accordance with Article 3 of
Council Regulation (EC) No 479/2009 of 25 May
2009 on the application of the Protocol on the
excessive deficit procedure annexed to the Treaty estab
Having regard to the recommendation from the European
lishing the European Community ( 3 ).
Commission,
Whereas:
(5) Based
on
data
provided
by
the
Commission
(Eurostat)
in
accordance with Article 14 of Regulation (EC) No
479/2009 following the notification by Finland before
1 April 2011 and on the Commission services’ spring
(1) By
Decision
2010/408/EU
( 1 ), following a proposal from
2011 forecast, the following conclusions are warranted:
the Commission in accordance with Article 126(6) of the
Treaty, the Council decided that an excessive deficit
existed in Finland. In Decision 2010/408/EU, the
Council noted that the general government deficit
planned for 2010 was 4,1 % of GDP, above the 3 % of
— while the EDP notification of April 2010 planned for
GDP Treaty reference value, while general government
a deficit of 4,1 % of GDP in 2010, the actual
gross debt was planned to reach 49,9 % of GDP, below
outcome was considerably better at a deficit of
the 60 % of GDP Treaty reference value.
2,5 % of GDP,

(2) On
13
July
2010,
in
accordance
with
Article
126(7)
of
— the better-than-planned deficit outturn is primarily
the Treaty and Article 3(4) of Council Regulation (EC) No
explained by stronger-than-expected economic
1467/97 of 7 July 1997 on speeding up and clarifying
growth and an improved labour market situation
the implementation of the excessive deficit procedure ( 2 ),
boosting tax revenues (notably VAT and income
the Council adopted, on a recommendation from the
tax), while expenditure growth remained overall
Commission, a recommendation addressed to Finland
contained,
with a view to bringing the excessive deficit situation
to an end by 2011 at the latest. The recommendation
was made public.
— the Commission services’ spring 2011 forecast
projects the deficit to fall further to 1 % of GDP in
(3) In
accordance
with
Article
126(12)
of
the
Treaty,
a
2011. Similarly, the 2011 update of the stability
Council Decision on the existence of an excessive
programme projects a deficit of 0,9 % of GDP in
deficit is to be abrogated when the excessive deficit in
2011. The improvement of the fiscal balance from
the Member State concerned has, in the view of the
the previous year is driven by cyclical factors,
Council, been corrected.
reflecting the expected continuation of relatively
robust economic activity, and some discretionary
tax increases (mostly energy and product taxes)
worth about % of GDP. The deficit is forecast by
(4) In
accordance
with
Article
4
of
the
Protocol
(No
12)
on
both the Commission services and the 2011 update
the excessive deficit procedure annexed to the Treaties,
of the stability programme to marginally improve
further to 0,7 % of GDP in 2012,
( 1 ) OJ L 189, 22.7.2010, p. 17.
( 2 ) OJ L 209, 2.8.1997, p. 6.
( 3 ) OJ L 145, 10.6.2009, p. 1.

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L 187/28
EN
Official Journal of the European Union
16.7.2011
— according to the Commission services’ spring 2011
(6) It
follows
from
these
conclusions
that
the
excessive
forecast and the structural balances (recalculated by
deficit in Finland has been corrected and Decision
the Commission services on the basis of the
2010/408/EU should therefore be abrogated,
information in the latest stability programme
update, using the commonly agreed methodology)
in 2011, the structural balance is estimated to
HAS ADOPTED THIS DECISION:
reach a more favourable level than the medium-
term objective, which is set by the Finnish authorities
at a structural surplus of 0,5 % of GDP. However, the
structural balance is estimated to weaken somewhat
Article 1
and turn negative in the medium term. The apparent
From an overall assessment it follows that the excessive deficit
decline in the structural balance estimate results from
situation in Finland has been corrected.
a broadly stable headline deficit against the backdrop
of favourable projections for economic growth
closing the currently large output gap. As a result,
and unless further measures are taken, in 2015 the
Article 2
budget balance net of cyclical factors and one-off and
Decision 2010/408/EU is hereby abrogated.
other temporary measures is currently estimated to
move slightly below the minimum benchmark of
– 1,2 % of GDP which under normal cyclical fluc
tuations ensures a safety margin against breaching
Article 3
the 3 % of GDP reference value. The stability
This Decision is addressed to the Republic of Finland.
programme projections, extending until 2015,
forecast the general government deficit to settle at
about 1 % of GDP over 2013-2015,
Done at Brussels, 12 July 2011.
— the Commission services’ spring 2011 forecast
projects the debt ratio to climb from 48,4 % of
For the Council
GDP recorded in 2010 to 52,2 % of GDP in 2012.
The stability programme update projects the debt
The President
ratio to climb to 51,3 % of GDP by 2012.
J. VINCENT-ROSTOWSKI

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