Examples of using Adjustment path in English and their translations into German
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Political
The adjustment path is up to 5 mm radial.
The Council therefore agrees that Member States implementing suchreforms should be allowed to deviate from the adjustment path towards the MTO, or from the MTO itself.
Overall, a risk of deviation from the adjustment path towards the medium-term objective is to be expected as of 2015.
Member States with fiscal room of manoeuvre should allow automatic stabilisers to function to mitigate the effects of a slowdown of the recovery on activity andjobs while sticking to their structural adjustment paths.
The adjustment path incorporates the systemic pension reform in 2016 but does not reflect the planned structural reform in 2017.
The Commission today also recommends to the Council that this medium-term adjustment path should form the basis for the correction of the excessive deficit, which, according to the Commission, exists in Poland.
This adjustment path would allow bringing the deficit below the 3% of GDP reference value by 2014 while at the same time ensuring that the debt ratio will approach the 60%-of-GDP reference value at a satisfactory pace.
I welcome the provision for a Member State's temporary departure from the adjustment path when it results from unforeseen events, which ensures that the process will be flexible and realistic.
These specific adjustment paths for various countries may prove to be not simply specific but also significantly different, because transparency in these matters is hard to ensure.
Finally, the Member State concerned should commit to introduce the necessarycorrective measures in the event of a failure to stick to the adjustment path for returning to a budget position of‘close to balance or in surplus.
The medium-term objective for the budgetary position of close to balance or in surplus and the adjustment path towards this objective for the general government surplus/deficit; the expected path for the general government debt ratio; the medium-term monetary policy objectives; the relationship of those objectives to price and exchange rate stability;
Based on the assessment of the Stability Programme and the Commission forecast, pursuant to Council Regulation(EC) No 1466/97,the Council is of the opinion that there is a risk of deviation from the adjustment path towards the medium-term objective in 2014 whereas an appropriate correction is expected in 2015.
If it were to be activated, this would not mean pausing the fiscal adjustment, but rather re-designing the adjustment path on a country-specific basis, both in terms of the adjustment effort and the deadlines to achieve the targets, taking into account the exceptional circumstances of the severe economic downturn in the euro area or the Union as a whole.
The provisions defined in Article 5(1) and Article 6(3) of Regulation(EC) No 1466/97 allow catering for this additional expenditure, in that the inflow of refugees is an exceptional event, its impact on Hungary's public finances is significant andsustainability would not be compromised by allowing for a temporary deviation from the adjustment path towards the medium-term budgetary objective.
The information provided by the 2016 stabilityprogramme seems to confirm that Italy's deviation from the adjustment path towards the medium-term budgetary objective in 2016 is being effectively used for the purposes of increasing investments.
The Council, when assessing the adjustment path toward the medium-term budgetary objective, shall examine if the Member State concerned pursues an appropriate annual improvement of its cyclically-adjusted budget balance, net of one-off and other temporary measures, required to meet its medium-term budgetary objective, with 0.5% of GDP as a benchmark.
The Commission forecast points to a durable correction of the excessive deficit in 2013 andsome deviation from the adjustment path towards the medium-term objective of a structural general government deficit of 0.45% of GDP in 2014.
The provisions defined in Article 5(1) and Article 6(3) of Regulation(EC) No 1466/97 allow catering for this additional expenditure, in that the inflow of refugees is an exceptional event, its impact on Finland's public finances is significant andsustainability would not be compromised by allowing for a temporary deviation from the adjustment path towards the medium-term budgetary objective.
The medium-term objective for the budgetary position of close to balance or in surplus and the adjustment path towards this objective for the general government surplus/deficit and the expected path of the general government debt ratio;
Based on its assessment of the programme and the Commission forecast as well as its assessment of the additional measures announced on 12 May, pursuant to Council Regulation(EC) No 1466/97, the Council is of the opinion that Austria has sustainably corrected its excessive deficit,but that a risk of significant deviation from the adjustment path towards the medium-term objective in 2014 and 2015 remains.
Moreover, although Slovakia limits the growth of expenditure in line with requirements,some deviation from the adjustment path towards the medium-term objective of a structural general government deficit of 0.5% of GDP is expected.
To reinforce the Pact, the Commission has suggested strengthening the surveillance for countries that are in transition to the medium-term balanced position, in order to obtain consistent improvements in good and bad economic times.3 Until a budget position of“close to balance or in surplus” has been reached,effective budgetary surveillance requires a strict and enforceable adjustment path.
In particular, the Commission forecast points to a durable correction of the excessive deficit in 2013 andsome deviation in 2014 from the adjustment path towards the medium-term objective of a structural general government deficit of 0.45% of GDP.
The medium-term budgetary objective and the adjustment path towards this objective for the general government balance as a percentage of GDP, the expected path of the general government debt ratio, the planned growth path of government expenditure, the planned growth path of government revenue at unchanged policy and a quantification of the planned discretionary revenue measures, the medium-term monetary policy objectives, the relationship of those objectives to price and exchange rate stability and to the achievement of sustained convergence;
According to the Commission 2014 spring forecast, which incorporates the impact of the expenditure savings due to the debt brake,the deviation from the adjustment path would be smaller in 2014 than foreseen in the programme, while a sufficient structural adjustment is projected in 2015, with the expenditure benchmark being met both in 2014 and 2015.
The provisions defined in Article 5(1) and Article 6(3) of Regulation(EC) No 1466/97 allow catering for this additional expenditure, in that the inflow of refugees as well as the severity of the terrorist threat are exceptional events, their impact on Italy's public finances is significant andsustainability would not be compromised by allowing for a deviation from the adjustment path towards the medium-term budgetary objective.
The activation of this provision would not mean puttingon hold the fiscal adjustment, but rather re-designing the adjustment path on a country-specific basis, both in terms of the adjustment effort and the deadlines to achieve the targets, to take into account the exceptional circumstances of the severe economic downturn in the euro area or the Union as a whole.
The increased focus on public debt and sustainability of public finances feeds through into three suggestions for revisiting the SGP: to identify country-specific medium-term budgetary objectives(see indent ii below),to render the debt criterion of the Treaty operational and to define the adjustment path in the excessive deficit procedure inter alia according to the degree of sustainability risks see indent iii below.
The Commission has responded to the discrepancy between budgetary plans andoutcomes by increasingly focusing its assessment on the credibility of the adjustment path described in the stability and convergence programmes, and by assessing Member States' fiscal policies more comprehensively over time, thereby taking into greater account also aspects relating to the sustainability and quality of public finances.
