Legal provisions of COM(2016)518 - Recommendation for a COUNCIL DECISION giving notice to Spain to take measures for the deficit reduction judged necessary in order to remedy the situation of excessive deficit

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dossier COM(2016)518 - Recommendation for a COUNCIL DECISION giving notice to Spain to take measures for the deficit reduction judged necessary in ...
document COM(2016)518 EN
date August  8, 2016

Contents

Article 1

1. Spain shall put an end to the present excessive deficit situation by 2018.

2. Spain shall reduce the general government deficit to 4,6 % of GDP in 2016, to 3,1 % of GDP in 2017 and to 2,2 % of GDP in 2018. This improvement in the general government deficit is consistent with a deterioration of the structural balance by 0,4 % of GDP in 2016 and a 0,5 % of GDP improvement in both 2017 and 2018, based on the updated Commission 2016 spring forecast. Spain shall also use all windfall gains to accerelate the deficit and debt reduction.

3. In addition to the savings already included in the updated Commission 2016 spring forecast, Spain shall adopt and fully implement consolidation measures for the amount of 0,5 % of GDP in both 2017 and 2018.

4. Spain shall stand ready to adopt further measures should risks to the budgetary plans materialise. Fiscal consolidation measures shall secure a lasting improvement in the general government structural balance in a growth-friendly manner.

5. Spain shall adopt measures to strengthen its fiscal framework, in particular with a view to increasing the automaticity of mechanisms to prevent and correct deviations from the deficit, debt and expenditure targets and to strengthening the contribution of the Stability Law's spending rule to public finance sustainability.

6. Spain shall set up a consistent framework to ensure transparency and coordination of public procurement policy across all contracting authorities and entities with a view to guaranteeing economic efficiency and a high level of competition. Such framework shall include appropriate ex ante and ex post control mechanisms for public procurement to ensure efficiency and legal compliance.

Article 2

The Council establishes the deadline of 15 October 2016 for Spain to take effective action and, in accordance with Article 5(1a) of Regulation (EC) No 1467/97, to submit a report to the Council and the Commission on action taken in response to this Decision. The report shall include the targets for government expenditure and revenue, and specify the discretionary measures on both the expenditure and the revenue side, as well as information on the actions being taken in response to the specific Council recommendations to strengthen its fiscal framework and its public procurement policy framework in accordance with Article 1(5) and (6).

Article 3

This Decision is addressed to the Kingdom of Spain.