2002/2170(COS)

Economic and monetary Union EMU: convergence report 2002 for Sweden. Report

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2002/2170(COS) Economic and monetary Union EMU: convergence report 2002 for Sweden. Report

Role	Committee	Rapporteur	Shadows
Lead	ECON	SCHMIDT Olle (ELDR)

Lead committee dossier: ECON/5/16492
Legal Basis RoP 119

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2004/03/10 Final act published in Official Journal
2003/03/12 Text adopted by Parliament, single reading
- T5-0091/2003 summary
  
  The European Parliament adopted a resolution drafted by its rapporteur Olle SCHMIDT (ELDR, Sweden) by 395 votes for, 79 against and 50 abstentions on the Commission's report. (Please refer to the document dated 19/02/03.) Parliament also felt that there is considerable uncertainty concerning the interpretation and application of the exchange rate criteria. It recalled that the exchange rate criteria was interpreted with a considerable flexibility for four of the first wave countries. Parliament went on to call on the Commission to make public an authoritative interpretation of the exchange rate criterion, with particular emphasis on how it was interpreted in the past, and what if any changes are needed following the introduction of the euro. A pragmatic interpretation of the criteria is required, particularly in view of the fact that many of the new Member States will have achieved a considerable degree of exchange rate stability by other means than ERM II, for example, through currency board arrangements.
- OJ C 061 10.03.2004, p. 0152-0303 E
2003/03/11 Debate in Parliament
2003/02/19 Committee report tabled for plenary, single reading
- A5-0037/2003
2003/02/19 Committee report tabled for plenary, single reading
- A5-0037/2003
2002/11/21 Committee draft report
- PE315.036
2002/09/02 Committee referral announced in Parliament, 1st reading/single reading
- ECON ECON/5/16492 SCHMIDT Olle ELDR
2002/05/22 Non-legislative basic document published
- COM(2002)0243 summary
  
  PURPOSE : to adopt the 2002 Convergence Report on Sweden. CONTENT : in the 2000 convergence report the Commission assessment was that Sweden already fulfilled three of the convergence criteria (on price stability, the government budgetary position and the convergence of interest rates) but that it did not fulfil the exchange rate criterion. The assessment on legal convergence made in the 2000 convergence report concluded that legislation in Sweden was not compatible with the Treaty and the ESCB Statute. The relevant legislation in Sweden has remained unchanged since the last convergence report in May 2000. Developments in 2001 and 2002 have made evident the absence of detailed legislation on profit allocation and extraordinary payments of the Riksbank to the Treasury, safeguarding that the Riksbank retains the financial means necessary for implementing all ESCB-related tasks. In the view of the assessment in the 2000 convergence report and the new developments, the legislation in this field in Sweden is assessed not to be compatible with the Treaty and the ESCB Statute. - The average inflation rate in Sweden during the 12 months to April 2002 was 2.9%, below the reference value of 3.3%. The Swedish 12-month average inflation rate has been below the reference value throughout the period from December 1996. Sweden continues to fulfil the criterion on price stability. - The Council decision of 10 July 1995 on the existence of an excessive deficit in Sweden was abrogated in 1998 (Council decision of 1 May 1998). The government finances were turned around from a deficit of 1.6% of GDP in 1997 to a surplus of 1.9% in 1998 and have been in surplus each year since then. In 2001, a government surplus of 4.8% of GDP was achieved. The government debt ratio peaked in 1994 and it fell below the 60% of GDP reference value in 2000. It was 55.9% of GDP in 2001. Sweden continues to fulfil the criterion on the government budgetary position. - The Swedish krona has not participated in the ERM II during the review period and it has fluctuated quite markedly against the euro and the Danish krone. Hence, as was the case at the time of the 2000 assessment of convergence, Sweden does not fulfil the exchange rate criterion. - The average yield on ten-year Swedish benchmark bonds during the 12 months to April 2002 was 5.3%, below the reference value of 7.0%. The Swedish long-term interest rate has been below the reference value throughout the period from December 1996. Sweden continues to fulfil the criterion on long-term interest rate convergence. In the light of this assessment the Commission concludes that there should be no change in the status of Sweden as a Member State with a derogation.
2002/05/22 Non-legislative basic document
- COM(2002)0243 summary
  
  PURPOSE : to adopt the 2002 Convergence Report on Sweden. CONTENT : in the 2000 convergence report the Commission assessment was that Sweden already fulfilled three of the convergence criteria (on price stability, the government budgetary position and the convergence of interest rates) but that it did not fulfil the exchange rate criterion. The assessment on legal convergence made in the 2000 convergence report concluded that legislation in Sweden was not compatible with the Treaty and the ESCB Statute. The relevant legislation in Sweden has remained unchanged since the last convergence report in May 2000. Developments in 2001 and 2002 have made evident the absence of detailed legislation on profit allocation and extraordinary payments of the Riksbank to the Treasury, safeguarding that the Riksbank retains the financial means necessary for implementing all ESCB-related tasks. In the view of the assessment in the 2000 convergence report and the new developments, the legislation in this field in Sweden is assessed not to be compatible with the Treaty and the ESCB Statute. - The average inflation rate in Sweden during the 12 months to April 2002 was 2.9%, below the reference value of 3.3%. The Swedish 12-month average inflation rate has been below the reference value throughout the period from December 1996. Sweden continues to fulfil the criterion on price stability. - The Council decision of 10 July 1995 on the existence of an excessive deficit in Sweden was abrogated in 1998 (Council decision of 1 May 1998). The government finances were turned around from a deficit of 1.6% of GDP in 1997 to a surplus of 1.9% in 1998 and have been in surplus each year since then. In 2001, a government surplus of 4.8% of GDP was achieved. The government debt ratio peaked in 1994 and it fell below the 60% of GDP reference value in 2000. It was 55.9% of GDP in 2001. Sweden continues to fulfil the criterion on the government budgetary position. - The Swedish krona has not participated in the ERM II during the review period and it has fluctuated quite markedly against the euro and the Danish krone. Hence, as was the case at the time of the 2000 assessment of convergence, Sweden does not fulfil the exchange rate criterion. - The average yield on ten-year Swedish benchmark bonds during the 12 months to April 2002 was 5.3%, below the reference value of 7.0%. The Swedish long-term interest rate has been below the reference value throughout the period from December 1996. Sweden continues to fulfil the criterion on long-term interest rate convergence. In the light of this assessment the Commission concludes that there should be no change in the status of Sweden as a Member State with a derogation.
- DG Economic and Financial Affairs,

Documents

Non-legislative basic document published: COM(2002)0243
Non-legislative basic document: COM(2002)0243
Committee draft report: PE315.036
Committee report tabled for plenary, single reading: A5-0037/2003
Committee report tabled for plenary, single reading: A5-0037/2003
Decision by Parliament, 1st reading/single reading: T5-0091/2003
Text adopted by Parliament, single reading: OJ C 061 10.03.2004, p. 0152-0303 E

History

(these mark the time of scraping, not the official date of the change)

2012-02-09

activities	added	date 2002-05-22 docs url http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2002&nu_doc=0243 text PURPOSE : to adopt the 2002 Convergence Report on Sweden. CONTENT : in the 2000 convergence report the Commission assessment was that Sweden already fulfilled three of the convergence criteria (on price stability, the government budgetary position and the convergence of interest rates) but that it did not fulfil the exchange rate criterion. The assessment on legal convergence made in the 2000 convergence report concluded that legislation in Sweden was not compatible with the Treaty and the ESCB Statute. The relevant legislation in Sweden has remained unchanged since the last convergence report in May 2000. Developments in 2001 and 2002 have made evident the absence of detailed legislation on profit allocation and extraordinary payments of the Riksbank to the Treasury, safeguarding that the Riksbank retains the financial means necessary for implementing all ESCB-related tasks. In the view of the assessment in the 2000 convergence report and the new developments, the legislation in this field in Sweden is assessed not to be compatible with the Treaty and the ESCB Statute. - The average inflation rate in Sweden during the 12 months to April 2002 was 2.9%, below the reference value of 3.3%. The Swedish 12-month average inflation rate has been below the reference value throughout the period from December 1996. Sweden continues to fulfil the criterion on price stability. - The Council decision of 10 July 1995 on the existence of an excessive deficit in Sweden was abrogated in 1998 (Council decision of 1 May 1998). The government finances were turned around from a deficit of 1.6% of GDP in 1997 to a surplus of 1.9% in 1998 and have been in surplus each year since then. In 2001, a government surplus of 4.8% of GDP was achieved. The government debt ratio peaked in 1994 and it fell below the 60% of GDP reference value in 2000. It was 55.9% of GDP in 2001. Sweden continues to fulfil the criterion on the government budgetary position. - The Swedish krona has not participated in the ERM II during the review period and it has fluctuated quite markedly against the euro and the Danish krone. Hence, as was the case at the time of the 2000 assessment of convergence, Sweden does not fulfil the exchange rate criterion. - The average yield on ten-year Swedish benchmark bonds during the 12 months to April 2002 was 5.3%, below the reference value of 7.0%. The Swedish long-term interest rate has been below the reference value throughout the period from December 1996. Sweden continues to fulfil the criterion on long-term interest rate convergence. In the light of this assessment the Commission concludes that there should be no change in the status of Sweden as a Member State with a derogation. title COM(2002)0243 type Non-legislative basic document published celexid CELEX:52002DC0243:EN body type Non-legislative basic document published date 2002-05-22 docs url http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexplus!prod!DocNumber&lg=EN&type_doc=COMfinal&an_doc=2002&nu_doc=0243 text PURPOSE : to adopt the 2002 Convergence Report on Sweden. CONTENT : in the 2000 convergence report the Commission assessment was that Sweden already fulfilled three of the convergence criteria (on price stability, the government budgetary position and the convergence of interest rates) but that it did not fulfil the exchange rate criterion. The assessment on legal convergence made in the 2000 convergence report concluded that legislation in Sweden was not compatible with the Treaty and the ESCB Statute. The relevant legislation in Sweden has remained unchanged since the last convergence report in May 2000. Developments in 2001 and 2002 have made evident the absence of detailed legislation on profit allocation and extraordinary payments of the Riksbank to the Treasury, safeguarding that the Riksbank retains the financial means necessary for implementing all ESCB-related tasks. In the view of the assessment in the 2000 convergence report and the new developments, the legislation in this field in Sweden is assessed not to be compatible with the Treaty and the ESCB Statute. - The average inflation rate in Sweden during the 12 months to April 2002 was 2.9%, below the reference value of 3.3%. The Swedish 12-month average inflation rate has been below the reference value throughout the period from December 1996. Sweden continues to fulfil the criterion on price stability. - The Council decision of 10 July 1995 on the existence of an excessive deficit in Sweden was abrogated in 1998 (Council decision of 1 May 1998). The government finances were turned around from a deficit of 1.6% of GDP in 1997 to a surplus of 1.9% in 1998 and have been in surplus each year since then. In 2001, a government surplus of 4.8% of GDP was achieved. The government debt ratio peaked in 1994 and it fell below the 60% of GDP reference value in 2000. It was 55.9% of GDP in 2001. Sweden continues to fulfil the criterion on the government budgetary position. - The Swedish krona has not participated in the ERM II during the review period and it has fluctuated quite markedly against the euro and the Danish krone. Hence, as was the case at the time of the 2000 assessment of convergence, Sweden does not fulfil the exchange rate criterion. - The average yield on ten-year Swedish benchmark bonds during the 12 months to April 2002 was 5.3%, below the reference value of 7.0%. The Swedish long-term interest rate has been below the reference value throughout the period from December 1996. Sweden continues to fulfil the criterion on long-term interest rate convergence. In the light of this assessment the Commission concludes that there should be no change in the status of Sweden as a Member State with a derogation. title COM(2002)0243 type Non-legislative basic document celexid CELEX:52002DC0243:EN body EC commission DG Economic and Financial Affairs type Non-legislative basic document date 2002-09-02 body EP type Committee referral announced in Parliament, 1st reading/single reading committees body EP responsible True committee ECON date 2002-06-19 committee_full Economic and Monetary Affairs rapporteur group ELDR name SCHMIDT Olle date 2002-11-21 docs type Committee draft report title PE315.036 body EP type Committee draft report date 2003-02-19 docs url http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-2003-0037&language=EN type Committee report tabled for plenary, single reading title A5-0037/2003 body type Committee report tabled for plenary, single reading date 2003-02-19 docs url http://www.europarl.europa.eu/sides/getDoc.do?type=REPORT&mode=XML&reference=A5-2003-0037&language=EN type Committee report tabled for plenary, single reading title A5-0037/2003 text The committee adopted the report by Olle SCHMIDT (ELDR, S) on the Commission's 2002 convergence report on Sweden. Pointing out that the recent political turmoil surrounding the Stability and Growth Pact (SGP) had had a negative impact on the public perception of the euro, especially in those countries still outside the euro area, the report welcomed the decision to implement the Pact more flexibly. It nevertheless warned that any changes to the Pact might be seen by the public as solutions to short-term problems rather than as a result of a coordinated policy action. The committee welcomed Sweden's decision to hold a referendum on the introduction of the euro this year and hoped that other Member States outside the eurozone would follow its example. It agreed with the Commission's assessment that Sweden did not currently fulfil all the convergence criteria and said that Sweden must also actively pursue structural reform and take measures to boost competition in order to prepare for eurozone membership. This was especially important in the case of Sweden, given that the changeover to the euro would bring with it complete price transparency to a country where the general price level was higher than in most euro area countries. Lastly, the Commission was urged to carry out a study into how the legal framework for the introduction of the euro had functioned during the changeover process in the 12 eurozone countries, with a view to adapting it where necessary for future changeovers. The study should focus in particular on whether the legislation had been sufficiently well drafted so as to prevent changeovers from resulting in price increases, and should also examine whether the current denominations of euro coins and notes were appropriate. body EP type Committee report tabled for plenary, single reading date 2003-03-11 body EP type Debate in Parliament date 2003-03-12 docs url http://www.europarl.europa.eu/sides/getDoc.do?type=TA&language=EN&reference=P5-TA-2003-0091 text The European Parliament adopted a resolution drafted by its rapporteur Olle SCHMIDT (ELDR, Sweden) by 395 votes for, 79 against and 50 abstentions on the Commission's report. (Please refer to the document dated 19/02/03.) Parliament also felt that there is considerable uncertainty concerning the interpretation and application of the exchange rate criteria. It recalled that the exchange rate criteria was interpreted with a considerable flexibility for four of the first wave countries. Parliament went on to call on the Commission to make public an authoritative interpretation of the exchange rate criterion, with particular emphasis on how it was interpreted in the past, and what if any changes are needed following the introduction of the euro. A pragmatic interpretation of the criteria is required, particularly in view of the fact that many of the new Member States will have achieved a considerable degree of exchange rate stability by other means than ERM II, for example, through currency board arrangements. type Decision by Parliament, 1st reading/single reading title T5-0091/2003 url http://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2004:061E:SOM:EN:HTML type Text adopted by Parliament, single reading title OJ C 061 10.03.2004, p. 0152-0303 E body EP type Text adopted by Parliament, single reading date 2004-03-10 type Final act published in Official Journal
committees	added	body EP responsible True committee ECON date 2002-06-19 committee_full Economic and Monetary Affairs rapporteur group ELDR name SCHMIDT Olle
links	added
other	added	body EC dg Economic and Financial Affairs
procedure	added	dossier_of_the_committee ECON/5/16492 geographical_area Sweden reference 2002/2170(COS) title Economic and monetary Union EMU: convergence report 2002 for Sweden. Report legal_basis Rules of Procedure of the European Parliament EP 119 stage_reached Procedure completed subtype Commission strategy paper type COS - Procedure on a strategy paper (historic) subject 5.10.01 Convergence of economic policies, public deficit, interest rates 5.20.02 Single currency, euro

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2002/2170(COS)

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History