The Treaty On Stability, Coordination And Management Of The Economic And Monetary Union

Original Language Title: Par Līgumu par stabilitāti, koordināciju un pārvaldību ekonomiskajā un monetārajā savienībā

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Read the untranslated law here: https://www.vestnesis.lv/ta/id/249048


The Saeima has adopted and the President promulgated the following laws: the Treaty on stability, coordination and management of the economic and Monetary Union article 1. 2.2012 in March signed the agreement on the stability, coordination and management of the economic and Monetary Union (hereinafter referred to as the Treaty) this law is adopted and approved. 2. article. Contractual commitments coordinated by the Ministry of finance. 3. article. The agreement shall enter into force for the period specified in article 14 and in order, and the Ministry of Foreign Affairs shall notify the newspaper "journal". 4. article. The agreement shall be applied in accordance with its article 14, paragraph 5, as from the date of entry into force of the decision on the Treaty on the functioning of the European Union article 139 1. Republic of Latvia referred to abrogation of the derogation. 5. article. The law shall enter into force on the day following its promulgation. With the law put for Latvian language in the contract. The Parliament adopted the law of 31 May 2012.
The President a. Smith in Riga on 13 June 2012 Treaty on stability in the coordination and management of the economic and Monetary Union BETWEEN the Kingdom of Belgium, the Republic of Bulgaria, the Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, Ireland, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Republic of Cyprus, the Republic of LATVIA, the Republic of Lithuania, the Grand Duchy of Luxembourg, Hungary, Malta, the Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese Republic, Romania, the Republic of Slovenia , The Slovak Republic, the Republic of Finland and the Kingdom of Sweden, the Kingdom of Belgium, Republic of Bulgaria, the Kingdom of Denmark, the Federal Republic of Germany, the Republic of Estonia, Ireland, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy of Luxembourg, Hungary, Malta, the Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese Republic, Romania, the Republic of Slovenia, the Slovak Republic, the Republic of Finland and the Kingdom of Sweden, hereinafter referred to as "the Contracting Parties", recognising her as the obligation of the Member States of the European Union to treat economic policy as a matter of common interest , Desiring to promote conditions for stronger economic growth in the European Union and, to that end, to develop ever-closer coordination of economic policies in the euro area, bearing in mind that Governments must maintain a reasonable and sustainable public finances and must avoid excessive general government deficits, which is extremely important to ensure the stability of the euro area, and therefore require specific provisions be introduced, including the "balanced budget rule" and automatically perform the adjustment mechanism Realizing the need to ensure that the general government deficit does not exceed 3% of gross domestic product at market prices and that the general government debt not exceeding 60% of the gross domestic product at market prices or decreases enough, tuvinot to this indicator, recalling that the Contracting Parties as Member States of the European Union should refrain from any measure which could jeopardise the Economic Union in relation to the achievement of the objectives of the Union, in particular of the trend to accumulate debt outside the General Government accounts Bearing in mind that the Member States of the euro area heads of State or Government in 2011 on 9 December agreed on the economic and Monetary Union reinforced structure, which is based on the treaties on which the European Union is founded, and which contribute to the implementation of the measures carried out in accordance with the Treaty on the functioning of the European Union 121.136.126. and, article, bearing in mind that the Member States of the euro area and the other Member States of the European Union Heads of State or Government for the purpose of this agreement as soon as possible to include in contracts that is the core of the European Union, welcoming the European Commission's legislative proposals in relation to the euro area under the contract, which the European Union is founded, 2011 November 23 submitted on how to strengthen the Member States ' economic and budgetary supervision that is affected by or threatened by serious difficulties in the field, financial stability and for common rules to monitor and evaluate the budget plan projects and ensure that the Member States ' excessive deficits and having regard to the European Commission's intention to submit further legislative proposals in relation to the euro area, in particular for ex ante reporting of debt securities issuance plans, economic partnership, detailing structural reforms of the Member States which apply the excessive deficit procedure, as well as for the Member States ' most important economic policy reform plan coordination, demonstrating their willingness to support the proposals which the European Commission could submit to reinforce the stability and Growth Pact, in relation to Member States whose currency is the euro, the introduction of the new medium-term objectives under this agreement, the limit values, taking into account the fact that the review and monitoring of commitments under this Treaty in the area of the budget, the European Commission will act under the powers conferred on it by the Treaty on the functioning of the European Union, in particular with its 121.136.126. and article, indicating in particular the that in relation to article 3 of this agreement set out in the "balanced budget rules ' application of the above monitoring will be implemented by each Contracting Party as required when developing the country-specific medium-term objectives and convergence graphics. Noting that the medium-term objective should be regularly updated based on the commonly agreed methodology, the main criteria should also be regularly reviewed, properly reflecting the risks that public finances pose direct and indirect liabilities as included in the stability and Growth Pact objectives, indicating that progress to the medium-term objective should be evaluated on the basis of a comprehensive assessment, based on structural balance including expenditure analysis , excluding diskrecionāro of revenue measures, in line with European Union legislation, in particular the provisions of Council Regulation (EC) No 1466/97 of 7 July 1997 on the of the surveillance of budgetary positions and the surveillance and coordination of economic policies, as amended by European Parliament and Council Regulation (EU) No 1175/2011 (2011-16 November) ("revised stability and growth pact"), indicating that the adjustment mechanism that the parties should implement the should be oriented to prevent deviation from the medium-term objective or objectives of the specific adaptations, including the cumulated impact on government debt dynamics, noting that the question of whether it is the obligation of the parties filled in the "balanced budget rule" to take in its national legal system, using binding, permanent and preferably constitutional norms, in accordance with the Treaty on the functioning of the European Union article 273 should be under the jurisdiction of the Court of Justice of the European Union in Recalling that the Treaty on the functioning of the European Union article 260 empowers the Courts of the European Union to impose fines or periodic penalty payments to the Member State of the European Union, which has failed to comply with one of its judgments, and recalling that the European Commission has developed the criteria under which shall be determined in accordance with that article, the applicable fines or periodic penalty payments, recalling the need to promote the European Union in accordance with the excessive deficit procedure for the adoption of measures for Member States whose currency is the euro, and that the planned or actual general government budget deficit to exceed 3% of gross domestic product, while strongly supporting the latter's objective, namely, to encourage the Member State concerned to reduce deficit, if any, are detected and-if necessary-to ask it to reduce this deficit, recalling that the Contracting Parties that the general government debt exceeds the 60% reference size, there is bound to be reduced, as the report criteria, assuming an average reduction of one twentieth of the year Bearing in mind that the implementation of this Treaty must take account of the specific role of the social partners, as it recognized the right of each of the Contracting Parties or the right systems, emphasising that none of the provisions of this agreement be interpreted so that it in any way amend the economic policy conditions under which a Contracting Party has granted financial assistance under a stabilisation programme, which involved the European Union , its Member States or the International Monetary Fund, indicating that economic and Monetary Union, the proper functioning of the need for the parties to work together on the economic policy, according to which-on the basis of economic policy coordination mechanisms, as laid down in the treaties on which the European Union is founded-they take the necessary steps and measures in all areas, which are essential to the proper functioning of the euro area, indicating in particular the willingness of the parties to make more active use of closer cooperation as provided for in the Treaty on European Union and article 20 of the Treaty on The functioning of the European Union in article 326 to 334, while not compromising the internal market, as well as their willingness, in accordance with the Treaty on the functioning of the European Union, article 136 of the full use of the special measures for the Member States whose currency is the euro, and the procedure for contracting parties whose currency is the euro, ex ante shall consult and coordinate all of their planned major economic policy reforms, to assess and collect benchmarking best practices , Reminding of the Member States of the euro area heads of State or Government on 26 October 2011 agreement to improve the governance of the euro area, including at least twice a year by the Eurosamit meetings-except with exceptional circumstances justified cases-convened immediately after the European Council meetings or meetings involving all the contracting parties who have ratified this agreement, the Member States of the euro area also REMIND YOU and the other Member States of the European Union Heads of State or Government of the 25 March 2011 accepted in euro plus "Pact where the specific questions that are essential for the competitiveness of the euro area, highlighting the agreement on the European stabilisation mechanism is an important element of the comprehensive strategy on how to strengthen economic and Monetary Union, and noting that the granting of financial aid under the new programmes under the European stabilisation mechanism from March 1, 2013 will be subject to the condition that the Contracting Party concerned must be ratified this Treaty and as soon as the end of the article 3 of this Treaty referred to in paragraph 2, the period for transposition of the said article to comply with the requirements, noting that the Kingdom of Belgium, the Federal Republic of Germany, the Republic of Estonia, Ireland, the Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian Republic, the Republic of Cyprus, the Grand Duchy of Luxembourg, Malta, the Netherlands, the Republic of Austria, the Portuguese Republic, the Republic of Slovenia, the Slovak Republic and the Republic of Finland are parties whose currency is the euro, and that this agreement will be binding on them from the first day of the month after the deposit of its instrument of ratification of the instruments, if that date is already in force; Noting also that the Republic of Bulgaria, the Kingdom of Denmark, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, Poland, Romania and the Kingdom of Sweden are Contracting Parties as Member States of the European Union on the date of signature of this agreement, is exempted from participation in the single currency, and while this exceptional status not cancelled, they can be binding only III and IV of this agreement, the provisions of section, regarding which they deposit their instruments of ratification-tool or later-have declared their intention to be bound Have agreed upon the following provisions. Title I objective and scope article 1 1 this agreement the Contracting Parties as Member States of the European Union agree to strengthen economic and Monetary Union, the economic pillar, adopting a set of rules that aim to improve budgetary discipline to the budget pact, strengthening their economic policies coordination and improve governance of the euro area, thus supporting the objectives of the European Union to achieve sustainable growth, employment, competitiveness and social cohesion. 2. this Treaty fully apply to contracting parties whose currency is the euro. In accordance with article 14 of the conditions laid down in this also applies to other Contracting Parties. Title II compliance and the link with Union law article 2 1. This agreement, the Contracting Parties shall apply and shall be interpreted according to the treaties on which the European Union is based, in particular, under the Treaty on European Union, article 4, paragraph 3, and in line with European Union law, including procedural law in all cases when it is necessary to adopt secondary legislation. 2. This agreement shall apply, in so far as it is compatible with the treaties on which the European Union is founded, and with the instruments of the European Union. This is without prejudice to the competence of the Union to act in the field of economic Union. Title III of the budget pact article 3 1. in addition to its obligations as set out in the legislation of the European Union, and without prejudice to it, the Contracting Parties shall apply the provisions laid down in this paragraph: (a) the Contracting Parties) in the General Government budget in balance or in surplus; (b)) (a) of this paragraph) is deemed to comply with the rules, if the annual general government structural balance corresponds to the respective country-specific medium-term objective, as defined in the revised stability and Growth Pact, and the structural deficit the lowest score is 0.5% of the gross domestic product at market prices. The Contracting Parties shall ensure fast convergence to achieve their respective medium-term objectives. Such convergence will propose a schedule of the European Commission, taking into account the relevant country-specific sustainability risks. Progress on medium-term objective and its observance shall be evaluated, on the basis of a comprehensive assessment, as a reference assuming structural balance including expenditure analysis, excluding diskrecionāro of revenue measures, under the revised stability and Growth Pact; (c)) the Contracting Parties may at times diverge from their respective medium-term objectives for achieving or only certain adaptations to paragraph 3 (b)) defined in exceptional circumstances; d) if general government debt to gross domestic product at market prices is significantly less than the 60% public financial sustainability in the long term, the risk is small, (b)) referred to the medium-term target low can reach a structural deficit that does not exceed 1.0% of the gross domestic product at market prices; (e) if significant) deviation from the medium-term objective or objectives of specific adaptations to it, automatically starts the adjustment mechanism. The facility includes an obligation for the Contracting Party concerned to take measures to prevent deviations within the period specified. 2. No later than one year after the entry into force of this Treaty shall enter into force for the Contracting Parties, the provisions of paragraph 1 takes over the provisions, which are binding and permanent, constitutional, or preferably, with full respect for and execution of the State budget process is otherwise guaranteed. The Contracting Parties national level introduced in paragraph 1 (e)) referred to the adjustment mechanism on the basis of uniform principles, proposed by the European Commission and in particular, relates to the nature of the adjustment, the scope and schedule, including in case of exceptional circumstances, and the role of the authorities and independence, which is the responsibility of the national level of the provisions set out in paragraph 1 of the monitoring of compliance. This adjustment mechanism fully take into account the prerogatives of Parliament. 3. for the purposes of this article, the definitions set out in article 12 2 of the Protocol on the excessive deficit procedure annexed to the Treaty on European Union. In this article the following definitions shall also apply: (a)) "Annual General Government structural balance" refers to the year the cyclically-adjusted balance, net of one-off and temporary measures; b) "exceptional circumstances" refers to the extraordinary events that are outside the control of the Contracting Party concerned and considerable impact on the General Government financial position, or to a significant economic recession periods, as set out in the revised stability and Growth Pact, provided that the Contracting Party concerned a temporary deviation does not jeopardise the fiscal sustainability in the medium term. Article 4 If the Contracting Parties of the general government debt to gross domestic product exceeds the 60% reference value mentioned in article 12 1 of the Protocol on the excessive deficit procedure annexed to the Treaty on European Union, the Contracting Party concerned, it shall be reduced for the report criteria assuming an average reduction of one twentieth part of the year, as provided for in article 2 of Council Regulation (EC) No 1467/97 of 7 July 1997 on the How to speed up and clarify the implementation of the excessive deficit procedure, as amended by Council Regulation (EC) No 1177/2011 (2011-8 November). The decision on the existence of an excessive deficit, based on the debt criteria, will be decided in accordance with the Treaty on the functioning of the European Union. the procedure laid down in article 126. 1. Article 5 the Contracting Parties, in respect of which the excessive deficit procedure, in accordance with the treaties on which the European Union is based on the introduction of budget and economic partnership programme, which included detailed structural reforms that need to be adopted and implemented to ensure its excessive deficit in effective and sustainable prevention. This program determines the content and form of the European Union legislation. Submission of programmes to the Council of the European Union and the European Commission for approval and monitoring will take place under the existing stability and Growth Pact provided for monitoring procedures.  
2. the budget and economic partnership with the implementation of the programme and budget of the year saskanīgo plans will be monitored by the Council of the European Union and the European Commission.
6. Article to better coordinate their national debt securities issues, the Contracting Parties shall provide the Council of the European Union and the European Commission for ex-ante reports on their national debt securities issues.
Article 7 while fully respecting the procedural requirements laid down in the treaties on which the European Union is based, the Contracting Parties whose currency is the euro, is committed to supporting such proposals or recommendations made by the European Commission, taking the view that the Member State of the European Union, whose currency is the euro, has breached the excessive deficit procedure the deficit criteria. This obligation is not respected, if Contracting Parties whose currency is the euro, finds that the proposed or recommended decision to object to the qualified majority to be calculated by analogy with the relevant provisions of the treaties on which the European Union is founded, not taking into account the position of the Contracting Party concerned. 1. Article 8 the European Commission is invited to give a timely report to the Contracting Parties of the provisions adopted by each of them under paragraph 2 of article 3. If the European Commission once it is given the option of the Contracting Party concerned to submit their comments, their report concluded that the Contracting Party has not complied with paragraph 2 of article 3, one or more of the Contracting Parties of the European Union will challenge in court. If one of the Contracting Parties irrespective of the Commission's report considers that the other Contracting Party has not complied with paragraph 2 of article 3, it may also go to court. In both cases, the judgment of the Court is binding on the parties which shall take the measures necessary to comply with the time limit fixed by the Court judgment. 2. If, on the basis of its own assessment of the European Commission, one of the Contracting Parties considers that the other Contracting Party has not taken the necessary measures to comply with the Court referred to in paragraph 1, it may go to court and ask for the application of financial penalties, subject to the criteria established by the European Commission pursuant to the Treaty on the functioning of the European Union article 260. If the Court finds that the Contracting Party concerned has not complied with its judgment, it may impose a lump sum or penalty payment that is appropriate and does not exceed 0.1% of the contracting parties concerned for the gross domestic product. The amounts the State whose currency is the euro, the European stabilisation mechanism in contributions. In other cases, the payments shall be made to the general budget of the European Union. 3. This article is a specific agreement of the parties to the Treaty on the functioning of the European Union within the meaning of article 273. Title IV on economic policy coordination and convergence article 9 on the basis of economic policy coordination, as defined in the Treaty on the functioning of the European Union, the Contracting Parties undertake to act, jointly to develop economic policies that promote economic and Monetary Union to function properly and to economic growth through stronger convergence and competitiveness. To this end, the Contracting Parties shall take the necessary action and measures in all areas, which are essential for the proper functioning of the euro area, in order to achieve the objectives of competitiveness, employment, sustainability of public finances in the future and in strengthening financial stability. Article 10 in accordance with the requirements of the treaties on which the European Union is based, the Contracting Parties are willing, which is essential to the proper functioning of the euro area, and, where appropriate, the relevant assets to use special measures to Member States whose currency is the euro, as provided for in the Treaty on the functioning of the European Union, in article 136 and closer cooperation, as provided for in the Treaty on European Union and article 20 of the Treaty on the functioning of the European Union in article 326 to 334 not detrimental to the internal market. Article 11 To assess and collect benchmarking best practice and seek to develop a closer coordination of economic policies, the Contracting Parties shall ensure that all the important economic policy reforms, which they plan to take, will be discussed and appropriate ex ante case mutually coordinated. This coordination involving the institutions of the European Union under European Union law. Title v euro area management article 12 1. Contracting Parties whose currency is the euro, the heads of State or Government are informal meetings of Eurosamit, with the participation of the European Commission. Invited to participate in those meetings the President of the European Central bank. Eurosamit President shall be appointed by the Contracting Parties in whose currency is the euro, the heads of State or Government with a simple majority vote at the same time as the European Council elect its own President, and for the same term of Office. 2. the Eurosamit shall meet as necessary and at least twice a year, for contracting parties whose currency is the euro, discuss the issues with them in the common special responsibilities for the single currency, other issues on the euro area's governance and the rules applicable to it, as well as the strategic framework for economic policy to promote convergence in the euro area. 3. The Contracting Parties to the heads of State or Government whose currency is not the euro, and which have ratified this agreement, participate in the discussions on the Eurosamit of the Contracting Parties, the competitiveness of the euro area changes, the general structure and basic rules, which will apply it in the future, as well as-where appropriate and at least once a year-the deliberations on specific issues relating to the implementation of the agreement on the stability, coordination and management of the economic and Monetary Union. 4. the President of the Eurosamit, in close cooperation with the President of the European Commission supports the preparation of meetings and Eurosamit continuity. For the preparation of meetings of Eurosamit and monitoring after the responsible body is the Eurogroup, and, to this end, the Chairman may invite to participate in such meetings. 5. Invite the President of the European Parliament to be heard. After each meeting of the Eurosamit Eurosamit, the President shall present a report to the European Parliament. 6. On the preparation of the Eurosamit and the results of meetings of President Eurosamit detailed inform contracting parties whose currency is not the euro, and the other Member States of the European Union. 13. Article II, section 1, as provided for in the Protocol on the role of national parliaments in the European Union, annexed to the Treaty on European Union, the European Parliament and the national parliaments of the Contracting Parties shall jointly determine how to organize and promote the relevant committees of the European Parliament and the national parliaments of the representatives of the Committee of representatives of the Conference to discuss budget policy and other matters covered by this Treaty. Title vi General and final provisions article 14 Contracting Parties 1 this Agreement shall be subject to ratification in accordance with their respective constitutional requirements. The instruments of ratification shall be deposited with the General Secretariat of the Council of the European Union (the "depositary"). 2. this Agreement shall enter into force on January 1, 2013, provided that in the twelve Contracting Parties whose currency is the euro, have deposited their instruments of ratification of the instruments, or the first day of the month following the date on which either Contracting Party whose currency is the euro, have deposited instruments of ratification of the twelfth, whichever is the earlier date. 3. This agreement from the date of its entry into force shall apply between the Contracting Parties in whose currency is the euro, which has ratified this Treaty. Other Contracting Parties whose currency is the euro, this Agreement shall apply from the first day of the month after the deposit of its instrument of ratification of the relevant instruments. 4. By way of derogation from article 3, paragraph 5, and section V, all the contracting parties concerned shall apply from the entry into force of this Treaty. 5. This agreement ratificējušaj parties with a derogation as defined in the Treaty on the functioning of the European Union article 139, paragraph 1, or as mentioned in the 16. Protocol on certain provisions relating to Denmark, annexed to the Treaty on European Union, this Agreement shall apply as from the date of entry into force of the decision of abolishing this derogation, except where the Contracting Party concerned shall notify his intention from a day earlier to commit arising from this agreement, and all provisions of title IV or part of. Article 15 of this agreement may accede to the European Union Member States that are not Contracting Parties. Accession shall take effect, shall be effected by the deposit of an instrument to the depositary, which shall inform the other Contracting Parties. The text of this agreement, the Member State which, in the national language, which is also the official language and working language of the institutions of the Contracting Parties, the depositary shall be deposited in the archives of authentication as the authentic text of this Treaty. Article 16 no later than five years from the date of entry into force of the Treaty, on the basis of the experience gained in its implementation, in accordance with the Treaty on European Union and Treaty on the functioning of the European Union shall take the necessary measures to include the contents of this Treaty, the European The legal framework of the Union. In Brussels, the two thousand twelve-second March. This agreement is drawn up in a single original in English, Bulgarian, Danish, French, Greek, Dutch, Hungarian, Italian, Irish, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish languages, each text being equally authentic; It shall be deposited in the archives of the depositary, the depositary and to each Contracting Party shall issue a certified copy.
On behalf of the Republic of Latvia Valdis Dombrovskis, Prime Minister of the representatives of the Contracting Parties by the depositary of the Treaty, confirmed signatures representative Hubert Legal, Juridik in service of the General Secretariat of the Council by the Director-General