other public authorities, other bodies governed by public law, or public undertakings  of Member States to financial institutions, shall be prohibited.

2. The Council, acting in accordance with the procedure referred to in Article 189c,  shall, before 1 January 1994, specify definitions for the application of the  prohibition referred to in paragraph 1.

Article 104b

1. The Community shall not be liable for or assume the commitments of central  governments, regional, local or other public authorities, other bodies governed by  public law, or public undertakings of any Member State, without prejudice to mutual  financial guarantees for the joint execution of a specific project. A Member State  shall not be liable for or assume the commitments 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 I89c, may specify definitions for the application of the prohibition referred  to in Article 104 and in this Article.

Article 104c

1. Member States shall avoid excessive government 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 fulfill 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 account all other relevant factors, including the  medium term economic and budgetary position of the Member State.

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