HL Deb 27 July 1999 vol 604 c174WA
Lord Shore of Stepney

asked Her Majesty's Government:

Further to the Written Answer by Lord McIntosh of Haringey on 12 July (WA 10), on what dates recommendations under the Excessive Deficit Procedure have been made to the United Kingdom by the European Council of Ministers under paragraphs 7 and 8 of Article 104 of the Maastricht Treaty. [HL3807]

Lord McIntosh of Haringey

As I explained on 12 July, under Protocol 25 of the EC Treaty (ex Protocol 11) the UK is not legally obliged to avoid running an excessive deficit. The European Council of Finance Ministers also has no powers to enforce recommendations made under Article 104(7) on the UK. But the UK is obliged under Article 116(4) (ex Article 109e(4)) to "endeavour to avoid excessive government deficits".

On 26 September 1994, acting in accordance with Article 104(6) of the Treaty, ECOFIN assessed that the UK had an excessive government deficit. A recommendation was made to the UK, and was updated each year under Article 104(7). These recommendations have been notified to the European Legislation Committee of the House of Commons, and the Select Committee on the European Communities of the House of Lords under cover of Explanatory Memoranda.

On May 1 1998, in accordance with Article 104(12). ECOFIN agreed to abrogate its earlier recommendation on the existence of an excessive deficit in the UK.