Glossary procedure). Following discussions on operation of the SGP, the two regulations were amended in June 2005. In the medium term, the member states undertook to pursue the goal of a balanced or nearly balanced budget and to provide the Council and Commission with a stability programme by 1 March 1999(and update it annually thereafter). Similarly, states not taking part in the third stage of EMU, i.e. those that have not(yet) introduced the euro, are required to submit a convergence programme. The SGP opens the way for the Council to penalise any participating member state that fails to take appropriate measures to end an excessive deficit(the“excessive deficit procedure”). Initially, the penalty would take the form of a non-interest-bearing deposit with the Community, but it could be converted into a fine if the excessive deficit is not corrected within two years. However, there is no fixed rule concerning these penalties; they are subject to an assessment of circumstances by the Council. 183