ECOFIN: Main results

22 June 2012

The Council approved draft recommendations to all Member States on the economic policies set out in their national reform programmes, and opinions on the fiscal policies presented in the stability and convergence programmes. It also approved a specific draft recommendation for the eurozone as a whole.

The texts will be forwarded to the June European Council and adopted in July, under this year's European Semester. In accordance with the "comply or explain principle" endorsed recently, the Council must comply with the recommendations and proposals of the Commission or explain its position publicly.

The Council adopted decisions closing excessive deficit procedures for Germany and Bulgaria[1], thus confirming that they have reduced their deficits below 3 per cent of GDP, the EU's reference value for government deficits. It adopted a decision lifting the suspension of commitments for Hungary from the EU's cohesion fund decided in March, in the light of an assessment by the Commission of actions taken by Hungary in order to correct its excessive government deficit.

The Commission expects Hungary's budget deficit to reach 2.5 per cent of GDP in 2012 and remain well below the 3 per cent of GDP reference value in 2013. Hungary's excessive deficit procedure nevertheless remains open.

The Council also approved:

• a report to the European Council on tax issues, as requested in March. Additionally, finance ministers of signatory countries approved a report on tax issues in the framework of the Euro Plus Pact;
• conclusions on implementation of a code of conduct aimed at eliminating situations of harmful tax competition in the EU with regard to business taxation, in the light of a biannual report,
• conclusions on the single market for services.

Full press release

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