178 EMIL BĂLAN, MARILENA ENE
Council and two Council Regulations, i.e. Council Regulation 1466/97 on the
strengthening of the surveillance of budgetary positions and the surveillance and
coordination of economic policies, called „the preventive arm of the Stability and
Growth Pact” and Council Regulation 1467/97 on speeding up and clarifying the
implementation of the Excessive Deficit Procedure, considered to be „the corrective
arm of the Stability and Growth Pact”.
Currently, Articles 121, 122, 126, 136 and 143 of the Treaty on the Functioning
of the European Union (TFEU) and Protocol 12 on Excessive Deficit Procedure are
the basis of any secondary legislation regarding the Stability and Growth Pact.
The economic crisis of 2008 showed that these procedures were not enough to
ensure the surveillance of budgetary positions and the surveillance and coordination
of economic policies of the Member States. In order to increase the surveillance made
by the European Commission additional legislation was adopted in 2011, the so-
called „six pack”10.
Furthermore, the Fiscal Compact (TSCG)11 was adopted in 2012 and the
Council approved the „two-pack12” to provide enhanced monitoring and
surveillance of the deficit and public debts for the euro area Member States in 2013.
In order to understand the importance and relevance of this short historical
presentation, it is worth mentioning Article 119 (1) TFUE:
„For the purposes set out in Article 3 of the Treaty on European Union, the activities
of the Member States and the Union shall include, as provided in the Treaties, the adoption
of an economic policy which is based on the close coordination of Member States' economic
policies, on the internal market and on the definition of common objectives, and conducted
in accordance with the principle of an open market economy with free competition”.
It is clear that the Member States agreed to transfer to the Union their sovereignty
in the field of economic policy, including fiscal policy, in order to ensure „an open
market economy with free competition”. In addition, the Member States have to
comply with the principles mentioned in Article 119 (3) TFUE „stable prices, sound
public finances and monetary conditions and a sustainable balance of payments”.
10 The six-pack comprises of: 1. Regulation 1175/2011 amending Regulation 1466/97 on the
strengthening of the surveillance of budgetary positions and the surveillance and coordination of
economic policies, 2. Regulation 1177/2011 amending Regulation 1467/97 on speeding up and clarifying
the implementation of the excessive deficit procedure, 3. Regulation 1173/2011 on the effective
enforcement of budgetary surveillance in the euro area, 4. Council Directive 2011/85/EU on requirements
for budgetary frameworks of the Member States, 5. Regulation 1176/2011 on the prevention and
correction of macroeconomic imbalances and 6. Regulation 1174/2011 on enforcement action to correct
excessive macroeconomic imbalances in the euro area.
11 The Treaty on Stability, Coordination and Governance in the Economic and Monetary Union
(TSCG) formally concluded on 2 March 2012, and entered into force on 1 January 2013.
12 Two-Pack comprises two Regulations designed to further enhance economic integration and
convergence amongst euro area Member States: Regulation 472/2013 on the strengthening of
economic and budgetary surveillance of Member States in the euro area experiencing or threatened
with serious difficulties with respect to their financial stability and Regulation 473/2013 on common
provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive
deficit of the Member States in the euro area.