Mr. Marco Buti:

The Deputy makes a good point. We used the methodology that was adopted by the Council and that was endorsed by all the member states. We have a dedicated group - the output gaps working group - which deals with all of these matters. We realised there was a danger in treating as structural, revenues which had the potential to be temporary. In 2006 we proposed that the output gaps working group focus on this and address the soundness of the methodology used to estimate the structural balance. We brought in the OECD to reassess the position regarding tax elasticity and eventually, in 2007 and 2008, the methodologies were changed. However, that was after the collapse. We were not ignorant of that matter and we had already started the work relating to it. We do not want methodologies to be imposed by the Commission on the member states on a take-it-or-leave-it basis, we want to use analytical tools which are commonly shared among and supported by all member states. This implies that there was a need to come to an agreement and adopt a common methodology. This was done within the working group to which I refer. The proposal of 2006 came into effect only later on.