for or assume the commitment of central governments, regional, local
or other public authorities, other bodies governed by public law or
public undertakings of another Member State, without prejudice to
mutual financial guarantees for the joint execution of a specific project.
2. If necessary, the Council, acting in accordance with the procedure
referred to in Article 189c, may specify definitions for the application of
the prohibitions referred to in Article 104 and in this Article.
ARTICLE 104c
1. Member States shall avoid excessive governmental deficits.
2. The Commission shall monitor the development of the budgetary
situation and of the stock of government debt in the Member States
with a view to identifying gross errors. In particular it shall examine
compliance with budgetary discipline on the basis of the following two
criteria:
(a) whether the ratio of the planned or actual government deficit to
gross domestic product exceeds a reference value, unless
- either the ratio has declined substantially and continuously and
reached a level that comes close to the reference value;
- or, alternatively, the excess over the reference value is only
exceptional and temporary and the ratio remains close to the
reference value;
(b) whether the ratio of government debt to gross domestic product
exceeds a reference value, unless the ratio is sufficiently diminishing
and approaching the reference value at a satisfactory pace.
The reference values are specified in the Protocol on the excessive
deficit procedure annexed to this Treaty.
3. If a Member State does not fulfil the requirements under one or both
of these criteria, the Commission shall prepare a report. The report of
the Commission shall also take into account whether the government
deficit exceeds government investment expenditure and take into