2005/441/EC: Council Decision of 17 February 2005 giving notice to Greece, in accordance with Article 104(9) of the EC Treaty, to take measures for the deficit reduction judged necessary in order to remedy the situation of excessive deficit

• Articles: 5

Article 1

1.   Greece shall put an end to the present excessive deficit situation as rapidly as possible and at the latest by 2006 through:

(i)

a rigorous implementation of the 2005 budget as approved by its Parliament;

(ii)

implementing in 2006 adjustment measures of a permanent nature leading to a correction in the deficit of at least 0,6 of a percentage point of GDP.

2.   Greece shall further pursue the efforts to identify and control factors other than net borrowing, which contribute to the change in debt levels, with a view to ensuring that the government gross debt ratio diminishes sufficiently and approaches the reference value at a satisfactory pace in line with the correction of the excessive deficit.

3.   Greece shall further pursue the efforts to improve the collection and processing of general government data, notably by enhancing the mechanisms that ensure the prompt and correct supply of the general government data required by the existing legal framework.

Article 2

1.   Greece shall submit, by 21 March 2005 at the latest, a report outlining the decisions to respect the recommendations of this Decision. The Commission and the Council shall analyse the report with a view to assessing compliance by Greece with this Decision.

2.   Greece shall submit reports by 31 October 2005, 30 April 2006 and 31 October 2006, examining progress made in respecting the recommendations of this Decision. These reports shall be analysed by the Commission and the Council with a view to assessing compliance by Greece with this Decision.

Article 3

The Council urges Greece to take the necessary measures to ensure that budgetary consolidation towards the medium-term position of government finances close to balance or in surplus is sustained through a reduction in the cyclically-adjusted deficit by at least 0,5 of a percentage point of GDP per year after the excessive deficit has been corrected.

Article 4

Greece shall take effective action to comply with this Decision by 21 March 2005.

Article 5

This Decision is addressed to the Hellenic Republic.