title: Commission Recommendation of 12 July 2004 on the transposition into national law of Directives affecting the internal market (Text with EEA relevance)

text:
               16.4.2005

               EN

               Official Journal of the European Union

               L 98/47

         COMMISSION RECOMMENDATION
   of 12 July 2004
   on the transposition into national law of Directives affecting the internal market
   (Text with EEA relevance)
   (2005/309/EC)
   THE COMMISSION OF THE EUROPEAN COMMUNITIES,
   Having regard to the Treaty establishing the European Community, and in particular Article 211 thereof,
   Whereas:

               (1)

               Member States transposing Directives into national law can choose the form and methods for such transposition, but are bound by the terms of the Directive as to the result to be achieved and the deadline by which transposition should take place.

               (2)

               At several summit meetings, including those held in Stockholm in March 2001, Barcelona in March 2002 and Brussels in March 2003 and 2004, the European Council, recognising the importance of a properly functioning internal market (1) for the competitiveness of the European economy, has repeatedly urged Member States to accord high priority to the transposition into national law of Directives affecting the internal market.

               (3)

               The European Parliament (2), the European Economic and Social Committee (3) and the Committee of the Regions (4) have repeatedly expressed concern about the poor records of Member States in transposing internal market Directives correctly and on time. The Interinstitutional Agreement on better law-making of 16 December 2003 (5) also emphasised the need for Member States to comply with Article 10 of the Treaty and called upon Member States to ensure that Community law is properly and promptly transposed into national law within the prescribed deadlines.

               (4)

               Despite these calls and the fact that timely and correct transposition is a legal obligation, Member States regularly do not transpose internal market Directives correctly by the deadlines they themselves have agreed, most Member States do not even meet the interim transposition targets set by the European Council, and many such Directives have still not been transposed into national law in all Member States long after the deadline for transposition has passed.

               (5)

               Late or incorrect transposition of internal market Directives is causing harm to businesses and citizens, as it often deprives them of their rights.

               (6)

               Late or incorrect transposition also deprives businesses and consumers of the full economic benefits of a properly functioning internal market and harms the competitiveness of the European economy as a whole, undermining the ability of the Community to generate economic growth while sustaining a high level of social cohesion.

               (7)

               In a European Union of 25 or more Member States, there is an increased risk that late or incorrect transposition of Directives will cause fragmentation of the internal market and a consequent dwindling of its economic benefits.

               (8)

               The Commission will continue, as a matter of priority, to take vigorous legal action against Member States for late or incorrect transposition, and to encourage peer pressure through the regular publication of the transposition records of Member States in the Internal Market Scoreboard; however, while these actions have had some success in the past, transposition deficits nevertheless persist and a more proactive approach by the Commission and Member States is therefore necessary.

               (9)

               The Commission indicated, in its 2002 Communication on better monitoring of the application of European Community law (6), how it can and does assist Member States with transposition of Directives into national law.

               (10)

               It is up to Member States, however, to ensure that they transpose Directives correctly and on time.

               (11)

               Article 10 of the Treaty requires Member States to take all appropriate measures, whether general or particular, to ensure fulfilment of their obligations arising out of the Treaty or resulting from action taken by the institutions of the Community.

               (12)

               The Court of Justice of the European Communities has consistently held that Member States may not plead provisions, practices or circumstances existing in their own internal legal systems to justify failure to comply with obligations and time limits laid down in Directives.

               (13)

               There is a need for Member States, given the repetitive nature of their failure to transpose Directives correctly and on time, to re-examine their procedures and practices to ensure that they consistently meet this legal obligation.

               (14)

               Some Member States have consistently much better transposition records than others, reflecting the existence or adoption of more effective structures, procedures and practices; however, the fact that no Member State has a perfect record suggests that all need to look to improve. In accordance with the Interinstitutional Agreement on better law-making, the Member States should draw up, for themselves and in the interests of the Community, correlation tables illustrating as far as possible the correspondence between Directives and transposition measures, and should make those tables public.

               (15)

               The Commission announced in its Communication ‘Internal Market Strategy 2003-2006’ (7) that it would issue a Recommendation setting out a number of good practices which should be followed by Member States to ensure better and faster transposition of internal market Directives.

               (16)

               Member States have expressed an interest in learning from one another’s practices, and have been consulted, through the Internal Market Advisory Committee, on their good transposition practices and their different national constitutional, legal and administrative rules and practices insofar as they may affect transposition.

               (17)

               A number of good practices have been identified that help Member States to transpose internal market Directives into national law in a timely and correct way.

               (18)

               It is for each Member State to choose the procedures and practices best designed to ensure the correct and timely transposition of internal market Directives, having regard to what would be most effective in the context of that Member State, since procedures and practices that are effective in one Member State may not be as effective in another.

               (19)

               In view of the legal uncertainty and confusion engendered by the late transposition of internal market Directives, businesses and citizens should be informed when Directives are not transposed on time and of their legal rights in such cases.

               (20)

               Where draft implementing provisions are submitted to national Parliaments, they should be accompanied by a declaration concerning their compliance with Community law and informing the Parliament whether they transpose in full or in part the Directive concerned.

               (21)

               Without prejudice to the Commission’s role and obligations as guardian of the Treaty, the Commission should be informed, when national implementing provisions are notified to it, whether the Directive concerned is thus fully or partly transposed into national law and whether the provisions are believed to comply with Community law.

               (22)

               Where Member States decide to include the transposition of a Directive as part of a wider legislative exercise, this can lead to their not meeting the transposition deadline; the insertion of conditions and requirements additional to those necessary to transpose a Directive can also hinder the objectives pursued by the Directive concerned,

         HEREBY RECOMMENDS THAT THE MEMBER STATES:

               1.

               Take the steps, organisational or otherwise, that are necessary to deal promptly and effectively with the underlying causes of their persistent breaches of their legal obligation to transpose internal market Directives correctly and on time;

               2.

               Examine the best practices set out in the Annex and, having regard to their national institutional traditions, adopt those practices that will, or can be expected to, lead to an improvement in the speed or quality of transposition of internal market Directives;

               3.

               In a timely manner, publish a list of the internal market Directives which have not been fully transposed into national law on time and inform business and citizens that, notwithstanding non-transposition, they may in certain circumstances have legal rights under non-transposed Directives; this information should be made available at least on a Government website;

               4.

               Ensure that, where draft national implementing provisions are submitted to national Parliaments, they are accompanied by a declaration that they are believed to comply with Community law and that they transpose a particular Directive in full or in part;

               5.

               Declare to the Commission, when notifying national implementing provisions that, to the best of their knowledge, such provisions comply with Community law and declare whether they transpose the Directive concerned in full or in part;

               6.

               Refrain from adding to national implementing legislation conditions or requirements that are not necessary to transpose the Directive concerned, where such conditions or requirements may hinder attainment of the objectives pursued by the Directive;

               7.

               Ensure, when transposition of a Directive is included in a wider legislative exercise at national level, that this does not lead to missing the deadline for transposition.

      Done at Brussels, 12 July 2004.

            For the Commission

         Frederik BOLKESTEIN

            Member of the Commission

      (1)  The Internal Market also covers three EFTA States, Iceland, Liechtenstein and Norway, as a result of their membership of the European Economic Area Agreement.

      (2)  Harbour Report, A5 0026/2003 (OJ C 234, 30.9.2003, p. 55); Miller Report, A5 0116/2004.

      (3)  OJ C 221, 7.8.2001, p. 25; OJ C 241, 7.10.2002, p. 180; OJ C 234, 30.9.2003, p. 55.

      (4)  OJ C 128, 29.5.2003, p. 48.

      (5)  OJ C 321, 31.12.2003, p. 1.

      (6)  COM(2002) 725 final of 11.12.2002.

      (7)  COM(2003) 238 final of 7.5.2003.
   ANNEX
   IDENTIFIED PRACTICES OF MEMBER STATES THAT FACILITATE THE CORRECT AND TIMELY TRANSPOSITION INTO NATIONAL LAW OF DIRECTIVES AFFECTING THE INTERNAL MARKET
   1.   Making correct and timely transposition a permanent political and operational priority

               1.1.

               One senior member of government, at Minister or Secretary of State level, is designated as being responsible for monitoring the transposition of all internal market Directives into national law and for improving the transposition record of the Member State. This member of government has the visible support of the Head of Government in this task and it is clear to Ministers and the administration that the government considers correct and timely transposition to be a priority.

               1.2.

               All Ministers receive a report regularly (for example, once a month) on the transposition records of all Ministries/governmental bodies. Transposition records are discussed regularly at meetings of Ministers.

               1.3.

               Sufficient resources are allocated to ensure correct and timely transposition.

         2.   Ensuring permanent monitoring and coordination of the transposition of internal market Directives at administrative and political level

               2.1.

               One Ministry or government body is responsible for monitoring transposition as a whole. It coordinates transposition with the Ministries and sub-federal, regional and devolved government bodies responsible for transposition, and is sent the planning schedule for transposition. It ensures that progress on transposition is discussed with Ministries at high administrative level regularly (for example, once a month). It reports regularly (for example, once a month) to the Minister or Secretary of State responsible for monitoring transposition. It also acts as national coordinator for dealing with the Commission concerning the transposition record of the Member State.

               2.2.

               Each Ministry and each sub-federal, regional and devolved government body that carries out transposition designates officials who are responsible for monitoring transposition in the Ministry or body and for acting as a contact point. A national network is established among these officials.

               2.3.

               Guidelines are issued, setting out how transposition should be carried out and ensuring that there is a common approach to transposition throughout the administration.

               2.4.

               A central national database is maintained on transposition. This database is accessible to all Ministries and sub-federal, regional and devolved government bodies involved in transposition. For each Directive, it contains: the references and subject-matter of the Directive; the Ministry or other government body responsible for transposition, and the persons responsible within the Ministry or government body; a list of other Ministries and government bodies involved in transposition and the persons responsible; the resources needed for transposition; the deadline for transposition; the measures to be taken to transpose the Directive; the planned time-schedule for transposition (including any parliamentary deliberations); the state of progress; any difficulties in transposition; and whether infringement proceedings have started for late or incorrect transposition. It is possible to establish at any time the transposition record of the Member State as a whole and by Ministry.

               2.5.

               Reminders are sent to the Ministry or other government body responsible before the deadline for transposition (for example, three months and again one month before the deadline).

               2.6.

               When a deadline has passed, a reminder is sent immediately at both administrative and Ministerial level, and the national Parliament is informed.

               2.7.

               Member States are proactive in seeking the advice and assistance of the Commission on transposition issues in a timely way. The contact point database set up by the Commission is used to identify the officials responsible.

         3.   Ensuring that preparations for transposition take place at an early stage and that they have as their aim correct and timely transposition

               3.1.

               A planning schedule for transposition is prepared during negotiations of the Directive by the Ministry or other government body responsible for negotiations, and in any event before the Directive is adopted. For each Directive, the planning schedule includes: the references and subject-matter of the Directive; the Ministry or other government body responsible for transposition, and the persons responsible within the Ministry or government body; a list of other Ministries and government bodies involved in transposition and the persons responsible; the resources needed for transposition; the deadline for transposition; a comparison of existing national law and the terms of the proposed directive; the measures to be taken to transpose the directive; and the planned time-schedule for transposition (including any parliamentary deliberations). This planning schedule is sent to the Ministry or government body responsible for monitoring transposition as a whole, a short time (for example, four weeks) after publication of the directive in the Official Journal of the European Union, to ensure that the transposition database is kept up to date.

               3.2.

               Drafting of legislation starts before or as soon as the Directive is published in the Official Journal of the European Union.

               3.3.

               A correlation table is prepared by the Ministry or other government body responsible for transposition, setting out how each provision of a Directive is being transposed into national law. This table accompanies any draft national implementing legislation when it is sent to the Parliament or government to facilitate their deliberations, and accompanies any notification of the national implementing legislation to the Commission.

               3.4.

               The addition of supplementary provisions that are not necessary to transpose a Directive is avoided. Where it happens, the Ministry or other government body responsible justifies why it is considered necessary and establishes that it will not result in delays in transposition.

               3.5.

               To the extent possible, national officials responsible for negotiating a Directive are involved in its transposition into national law. If this is not possible, they cooperate closely with those that are responsible for transposition. In any event, officials who are negotiating a Directive keep those officials who will transpose it informed throughout negotiations of the Directive to ensure that any potential transposition problems are raised and dealt with before the Directive is adopted.

               3.6.

               Representatives of any sub-federal, regional or devolved government body that will have to transpose a Directive are kept informed during negotiation of the Directive.

               3.7.

               National implementing legislation is notified to the Commission electronically.

         4.   Working closely with national, regional and devolved Parliaments involved in transposition of internal market Directives to ensure correct and timely transposition

               4.1.

               Parliaments are sent proposals for Directives as soon as they are presented by the Commission, and are kept advised of progress in negotiation of Directives.

               4.2.

               Parliaments receive reports on a regular basis (for example, every three months) on progress in transposition, on Directives whose transposition is late and on infringement proceedings initiated by the Commission for late or incorrect transposition.

               4.3.

               Together with draft national legislation, Parliaments are sent a timetable for transposition, a clear indication of the deadline, any correlation tables that have been prepared and a Government declaration that the national implementing measure is believed to comply with Community law.

               4.4.

               Parliaments receive early warning (for example, three months before the transposition deadline) from government that the deadline for transposition is approaching. They are advised when the deadline has passed.

               4.5.

               The government encourages Parliaments to set aside time to transpose Directives in good time.

         5.   Taking action quickly, visibly and effectively to transpose Directives whose transposition is late

               5.1.

               All necessary measures are taken to ensure that any directives that have not been transposed on time are transposed as soon as possible after the deadline for transposition.

               5.2.

               Where the transposition of one or more directives is late, Parliaments are encouraged to set aside additional time to transpose such directives as soon as possible and to deal with any procedural cause of delays.

               5.3.

               Member States publish the list of directives they have not transposed on time and advise business and citizens that, notwithstanding non-transposition, they may in certain circumstances have legal rights under non-transposed Directives.

               5.4.

               Where there is a persistent failure to transpose directives on time, Member States examine to what extent the legislative procedure before Parliament may be shortened for transposition of directives. Adoption in one reading or under an accelerated procedure is envisaged.

               5.5.

               Where there is a persistent failure to transpose directives on time, and where this is permitted by a Member State’s Constitution or internal legal order, the use of governmental decrees or regulations to transpose is considered if it will speed up transposition.


Avis juridique important

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31997Y0304(01)

Recommendation No 21 of 28 November 1996 concerning the application of Article 69 (1) (a) of Regulation (EEC) No 1408/71 to unemployed persons accompanying their spouses employed in a Member State other than the competent State

Official Journal C 067 , 04/03/1997 P. 0003 - 0003

RECOMMENDATION No 21 of 28 November 1996 concerning the application of Article 69 (1) (a) of Regulation (EEC) No 1408/71 to unemployed persons accompanying their spouses employed in a Member State other than the competent State (97/C 67/03)THE ADMINISTRATIVE COMMISSION OF THE EUROPEAN COMMUNITIES ON SOCIAL SECURITY FOR MIGRANT WORKERS,Having regard to Article 81 (a) of Council Regulation (EEC) No 1408/71 of 14 June 1971 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community, under which it is responsible for dealing with all administrative questions and questions of interpretation arising from the provisions of Regulation (EEC) No 1408/71 and subsequent regulations,Whereas under the terms of Article 69 (1) and employed or self-employed person who is wholly unemployed and who goes to one or more Member States other than the competent State in order to seek employment is allowed, subject to certain conditions and limits, to retain his entitlement to unemployment benefits;Whereas one of the conditions set out in subsection (a) of the said paragraph is that the person concerned must have remained available to the employment services of the competent State for at least four weeks after becoming unemployed.Whereas the final sentence of subsection (a) does, however, allow the competent services or institutions to authorize the job-seeker's departure before four weeks have expired;Whereas this authorization should not be denied to persons who, while meeting the other conditions set out in Article 69 (1) of Regulation (EEC) No 1408/71, wish to accompany their spouse who has taken a job in another Member State;Acting in accordance with the provisions of Article 80 of Regulation (EEC) No 1408/71,HEREBY RECOMMENDS to the competent services and institutions that:1. authorization of departure before four weeks have expired as provided for in the final sentence of Article 69 (1) (a) shall be granted to an employed or self-employed person who is wholly unemployed, meets all the other conditions laid down in Article 69 (1) and is accompanying his/her spouse who has taken a job in a Member State other than the competent State;2. this recommendation shall apply from the first day of the month following its publication in the Official Journal of the European Communities.Chairman of the Administrative CommissionDenis CROWLEY


Avis juridique important

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31977H0609

77/609/EEC: Commission Recommendation of 19 September 1977 to the United Kingdom Government regarding the draft Regulations implementing Council Directive 74/562/EEC of 12 November 1974 on admission to the occupation of road passenger transport operator in national and international transport operations

Official Journal L 248 , 29/09/1977 P. 0029 - 0030

COMMISSION RECOMMENDATION of 19 September 1977 to the United Kingdom Government regarding the draft Regulations implementing Council Directive 74/562/EEC of 12 November 1974 on admission to the occupation of road passenger transport operator in national and international transport operations (77/609/EEC) By letter dated 3 March 1977, the Permanent Representation of the United Kingdom to the European Communities sent to the Commission, for consultation purposes, the text of draft Regulations implementing Council Directive 74/562/EEC of 12 November 1974 on admission to the occupation of road passenger transport operator in national and international transport operations.  This communication was sent pursuant to Article 6 (1) of the Directive, which provides that "Member States shall, after consulting the Commission and before 1 January 1977, adopt the measures necessary for the implementation of this Directive, and in particular Article 2 (4) thereof".  The Commission regrets in the first instance that the United Kingdom Government, by failing to inform it of the implementing measures in good time, has thereby failed to fulfil the obligations incumbent upon it under Article 6 of the Directive, and has made it impossible for the Commission to issue this recommendation by the requisite date.  The Commission hereby issues the following recommendation in respect of the draft Regulations referred to above:    1. The Commission notes that the draft United Kingdom Regulations satisfy the provisions of the Directive on the following points:      (a) the principle, definition and implementation of the conditions regarding good repute and professional competence (Article 2 of the Directive);           (b) the statement of grounds for decisions rejecting an application for admission to the occupation, the withdrawal of authorization if one or more of the conditions of admission are no longer met and the ability of the parties concerned to defend their interests with regard to such decisions (Article 5 of the Directive).                  2. The definition of financial standing will, however, have to be clarified in the light of Article 2 (3) of the Directive, which provides that:  "Appropriate financial standing shall consist in having available sufficient financial resources to ensure the launching and proper administration of the undertaking."  The Commission therefore advises the United Kingdom Government to expand Section 10 (3) of the draft Regulations.       3. The Commission also notes that the 10th subparagraph of Section 2 (1) of the draft Regulations excludes services provided by means of a vehicle constructed or adapted for the carriage of not more than 17 persons (including the driver), otherwise than in the course of a business of carrying passengers, or by a person whose main occupation is not the provision of road passenger transport services. Although Article 1 (3) of the Directive does not prohibit such exemptions, it does make them subject to three conditions, namely, that they are granted only to natural persons or undertakings:      (i) engaged exclusively in road passenger transport services for non-commercial purposes, or           (ii) having a main occupation other than that of road transport passenger operator, and           (iii) in so far as their transport operations have only a minor impact on the transport market.             The Commission recommends the United Kingdom Government to amend the 10th subparagraph of Section 2 (1) of the draft Regulations to ensure that the requirements of Article 1 (3) of the Directive, particularly the first and third, are fully met.       4. As regards the determination of the natural persons who must, in each case, fulfil the conditions of admission to the occupation set out in Article 2 (1) of the Directive, the Commission draws the attention of the United Kingdom Government to the definition of "undertaking" contained in the second subparagraph of Article 1 (2) of the Directive. Undertakings are defined there as any association or group of persons with or without legal personality. Two or more individuals trading in partnership, as referred to in Section 10 (6) of the draft Regulations, must therefore be regarded as forming an undertaking. It is therefore not enough, as subsection 6 states, to take it that if one or more of the partners is professionally competent then the holder of the authorization will be regarded as meeting this condition.   On the contrary, the third subparagraph of Article 2 (1) of the Directive provides that "provisions (a) and (c) (good repute and professional competence) must be satisfied by one of the natural persons who will continuously and effectively manage the transport operations of the undertaking". The Commission therefore recommends that the United Kingdom Government amends Section 10 (6) of the draft Regulations to ensure that the requirements of the third subparagraph of Article 2 (1) of the Directive are satisfied.       5. The Commission also draws the Government's attention to the wording of Article 3 (1) of the Directive:  "Member States shall determine the circumstances in which operation of a road passenger transport undertaking may, by way of derogation from the provisions of Article 2 (1), be continued on a temporary basis for a maximum period of one year, with extension for a maximum period of six months, in duly justified special cases, in the event of the death or physical or legal incapacity of the natural person engaged in the occupation of transport operator or of the natural person who satisfies the provisions of Article 2 (1) (a) and (c)."  The Commission advises the United Kingdom Government to expand Section 7 (4) of the draft Regulations to ensure that the time limits laid down in Article 3 (1) of the Directive are respected.       6. Finally, as regards the transitional provisions, Section 10 (7) and (8) broadly meets the corresponding requirements of Article 4 of the Directive. The Commission would, however, remind the United Kingdom Government of the precise wording of Article 4 (2):  "However, those natural persons who, after 31 December 1974 and before 1 January 1978, were:      - authorized to engage in the occupation of road passenger transport operator without having furnished proof, under national regulations, of their professional competence, or           - designated continuously and effectively to manage the transport operations of the undertaking,             must satisfy, before 1 January 1980, the condition of professional competence referred to in Article 2 (4).  The same requirement shall apply in the case referred to in the third subparagraph of Article 2 (1)."  The Commission finds that, under Section 10 (8), such persons must comply with the requirement of professional competence before 1 January 1978, and they are thus subject to stricter conditions than those intended by Article 4 (2) of the Directive.  The Commission therefore recommends that the United Kingdom Government amends Section 10 (8) on this point so that the natural persons concerned may benefit from the time limit laid down in Article 4 (2) of the Directive.      Done at Brussels, 19 September 1977.  For the Commission  Richard BURKE  Member of the Commission


title: RECOMMENDATION FOR A REGULATION OF THE COUNCIL concluding an Agreement between the European Economic Community and Macao on trade in textiles. (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 32
Vol. 1976/0015
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(76)32 final .
                                                   Brussels , 9 Februaiy 1976
                                     -
             RECOMMENDATION FOR A REGULATION OF THE COUNCIL
       concluding an Agreement between the European Economic Community
       and Macao on trade in textiles .
                                                                     \
               ( submitted to the Council by the Commission)
COM(76 ) 32 final .
 ---pagebreak---                     EXPLANATORY MEMORANDUM
1.      By a decision of 16 June 1975 * the Council authrorized the
Commission to open negotiations with Macao for the conclusion of an
Agreement on trade in textiles under Article k of the Arrangement re
garding International Trade in Textiles .
2.      In accordance with the above Council Decision and in consulta
tion with the Article 113 Committee , the Commission conducted negotia
tions with Macao on Zk and 25 September 1975 *
        Following these negotiations a draft agreement was drawn up *
The draft makes provision for t
        - voluntary restraint , at agreed levels , on exports to the Commu
          nity of certain categories of textile products and articles
          of clothing intended for consumption within the Community f
        - the adoption of a surveillance and consultation procedure appli
          cable to certain categories of products and permitting , inter
          alia , the establishment on agreed terms of voluntary restraint
          measures for the products in question ;
        - the corresponding undertaking by the Community not to invoke
          the safeguard provisions of the Multifibre Arrangement for the
          categories of products covered by the agreement so long as the
          agreed ceilings are observed .
        The heads of the delegations found the draft Agreement to be
in accordance with the results of the negotiations and initialled the
text on 27 September 1975 »
 ---pagebreak---                              '«• 2 •
3.       The Commission considers that this draft agreement constitutes
a result that is acceptable to the Community * It proposes that the
Council conclude this Agreement by adopting the draft Regulation annexed
hereto .
4.       In order to ensure the achievement of the objectives of the
Agreement and to prevent , in particular , the risk of extraordinary
exports before its entry into force , the Community and Macao have , during
the negotiations , declared their intention to apply the provisions of
the Agreement autonomously from 1 October 1975 in anticipation of its
entry into force .
         For this reason the measure necessary for the Community 's imple
mentation of the provisions of the Agreement are inoluded in a separate
draft Regulation ,     . ..                .....         ,        . J
 ---pagebreak---              RECOMMEN DATION FOR A SEGULATICN CI? THE CGU!\C
                     concluding an Agrees ' - between
               the European Booaoaie Cor^ri'ani'cy u-..d i.uoao
                            on trade in textile .;
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic . Community «
and in particular Article H3 thereof ,
Having regard to the recommendation frc.v. the Cc      lesion ,
Whereas the Agreement on Trade in Textiles negotiated between the European
Economic Community and Macao should be concluded ;
Whereas the import arrangements for certain textile products originating
in Macao set up by Council Regulation ( ESC ) No
permit  the application of the provisions of this Agreement ,
HAS ADOPTED THIS REGULATION :
                                Article 1
        The Agreement between the European Economic Community and Macao
on Trade in Textiles , the text of which is given in the Annex , is hereby
concluded on behalf of the Community .
                                Article 2
        ihe President of the Council shall notify the other Contracting
Party of the completion      by the Community of the procedures required
for the entry into force of the Agreement .
 ---pagebreak---                             Article 3
    This Regulation shall enter into , force on the third day following
                                         /
its publication on the Official Journal of the European Communities *
Done at Brussels ,                               For the Council
                                                 The Président
 ---pagebreak---   Lincn :;/*:* Ecoxirxo co:sru:mT
        r^cLio
21 TRAIHS 13 T5Äm33
 ---pagebreak--- Ths Council of iim European CoE*num.t.ien
of tho or<o puri . r.:id
Tho Covornaeni of jkcaoç                   '
of lho othor pari .
X>uoirins to on-uvro iho orderly and eqv.Hafrlo devolopaent of iirado in
textiles 'bclvrocn iho European Econouio Cooauniiy, hcrnia-xCtcv called
" tha Corcaunity" and r<acr.o |
Having regard to iho provioions of tho Arranreuejrt regarding -lafcermviAcnal
Trade in Textiles (liaroinaftcr referred to at» iho ."Coaova Arravv^cnt'' )
©ad in particular Artiolo A ihorcoi'j                                      '
I.'ava decided } in a npiric of rcuUial cooperation aid in conformity v.ith the
8&id Cansva. Arra»£c?3ont f io conclude this Agreement and io iliia end ho.vo
dooiciviicd as tiioir Plenipotcntiari-ao : .                ■
Tiïi COUiiCIL OP T1J3 EUROÏEAir COrSIUIJITEXJ *
5SE GOTJ.H:r-KKÏ OS» ÜACAOï
ilio ha vo arroed sio follovjns
 ---pagebreak---                                           / rticjo 1
1.     She Y-oxti&a reco^niso t-nd cenfara               subject to the jsrovioioiin of
this A£?oo»cufc end without projudlco to theia? righto end obli,-j?.tiono vni'cr
the General Agroc-neat on Tariffs R.n& 'frado , the conduct of their
trado in tcxtilca shall ho governed ty tha provisions of the Gonovrv
Jlrrr.nccffiiont .
                                                                                i
2+     This - iiiTOoncnt fdu-vll apply to trado in tJioso categories of tcrfcilo
products                    la . and coraing fros# I'-aceo which »r0 listed in
/rfjaoxc-B I end II unci to those referred "to in Article 4 hclou .
3 . J£tcao agrees to establish q^iaatitativo linita on exports to tha .■
Cowaunity In eooorc-'mco vith tho cohedulo fiet out in Annex I »
 ---pagebreak---  1*   The? Coranunit.y unclertakcB , in rorspoot ox"" tha cato^oriaa of
jtrortuclo to which -this Acroencnt applies , owl subject -to tho c&tiofaotory
opomtion of thic A/recnont 4 not to introduoo now (lusntitativo reatrictions
and to rcf^c-in frcr,i invoking Article 3 of tho Gcnova ArraiirxEe.n1; provided
that exports to "t3jo Ccrrutuuiiy of unch toxtilo products original in.* in ar.d
ca-iiix? iVora Ifucao do nox oxoood tho quantitative limits ostabliohcd under
thlu Acrcsacat .
2«    Tho 2'acao authorities \md ertalno to talr.o all ajmroprirtlc nc^nui'or. to ■-
okkuto that tho acyoc4 quantitative Units r,ro not exceeded *
                                                                                ;
3«   Tho Cosinramty tihalx not object to tho fibovo quantitative Units bcin^
ccrcoedod in tho evont of aOcUtioral dfi^vuul oil tho Coi.^unity carkot , on tho
luxlcsrotaRding that tho additional cpiantitiaa ohall bo fixed by ccnrcon
o»ocord of both Portion *
 ---pagebreak---                                        A.t"M.olo 3
                                       «»Mr ««    0
1*    Inpcrto into tha GoasiVinity of tcrlilo products covcu-od lr/ tbi.'J
t /yramcni wlilch tiro for IcKcdir.te ra^oxv-ort or ) for inward rroco.~cin'-r ond
sv-hsecjucnt re-export outaido tho Corsrmnity f.:ball not "bo subject io tho
q-vrrcitit&tivo 'linita entail irshed wador thio Ajroemont , provided they ar©
cutci^d as rrnch ufj'Icr an fcdninintrativ© pystna of control in forco for
Ihia purpose Within. tj ;*■; Coanunity *
2m    liliero Coranunity cuthox-itioa ascertain that inportu referred to in
p:uv ^v;iph 1 rtbovo h?nr» >c?n roisinod for vr;o within tfco Caxausity* tfc«
lattor '.rill notify tho Ctovorraont of Kacao on a quarterly lanin of tho           «
ecounto involved . I-'AOao obi.ll in cuch oaaoa ml ut tha reqxioot of tha
Ccsxivnity pet off svrih amounts against tho quaatlt&t.ivo Unit or lindta
in qxiftstion for tho current year or for tho following year . " .
3»   la easy case Khc.ro th® ciuthoritioa in tho Corsmuiity aasorisiu undo? an
fc&:d«iatrat ive oyctou of control in forco tla'c iaportc of toxtilo produoto
covered l:y thio Ayc-fi-.mnt lavo been set off a rain,", t c-.iarititativa lir.;ita
eotahliehed under this A^rcnacnt Taut Lava lxson oubsecruently ro-oxicrtod
ou'tnic.fj iho Corar-mnity, tho mxthoritioa concerned trill infora th® J!?.cao
authorities of tho <nj?.ntition involved and authorise iwportn of er;ui^1.ent
quantities , which ehpJ.1 not to cot off against the qu»\ntit&tivo linitra
under tho. A£rcor>ent .
 ---pagebreak---  1 . Soth Tartica ajreo            cuter presptly into ccncvltationa with each
ether, at the requoot of cither an:! in confomity with the ^coxiziczr, of
the Gonw.n                    cn e.:ny isattcr coneorniir; their traoe in tortile:;
and in particular cn any problcna arirmi^; frora the application of thia
J>;-ra?r.oa"U Cor^uitationa held ur.de? thin Article arxxll "ba approached
V Loth Partica in a spirit of ccaprcnio® csd with a view to tlio
conciliation of differences cxiatin^ "between tli<sa »
 2» Tha Cosssunity ivsy , in particular tdi^nsver conditions in its r^rket
£ive rino to real ricks cf narkat disruption , request con-ruTUi-t iors vith
I^-cao in accordance with. tho proc^rr® laid do'm in para^rr.ph 5 tolov
vith regard to the prcducty listed in Aiwax II *
3.        If , in th-3 opinion cf the Corrcnnity , inpoxta into the Coj-wnviity of
textile produotn in direct competition irith tkene covered 7r,«- this
A/n"cc.-ient cocoa a real risk of market disruption, the Cccr.u.-iit,v isay reject
coiirultuiior.3 vith I'icao under identical conditions to there specified
 i» paragraph 5 of tliis Article *
4.        If an excessive e cnc ontrat i on of trade in n\y Bpcoific predue Is
vit^in a cato/wy listed in Annox II caucc-a a real rick of nwrkct
disruption in respect cf thoee products , the Cora-unity nay ro'iuoat
ccivcultations v:ith Ilacao vrrlor identical conditions to thceo npocificd in
paragraph 5 of thia Article .
        *
5 . In tho cfcni-3 defined in jarficraplw 2 , 3 ard of tiia Article, U-ci'-o
tlir-.ll li-iit , In ccoorCfuieo with tho Co:.r..utiity *n rcqucnt , itn expert 3 of the
jcji'-ctn or c\ic;cricfj of proa acta in crustier. to tho Corznujily srirkct tr
to the Gorauuity Darket in one er ncro of ito i'cuho? States , perJ.ins a
cativ-lly c^tiafp.ctox'y co/aclunion to tho c;;id consultations , to a level
ii. Lic j.ted 1^* t].-3 Cenaujiiiy v.hich , aa an arjriual rata , my rot be louor than
 *' C7- j cf the imports recorded for the said products or cat series of jxreduot
•juri.n.7 tho twelve uentfcn eliding three uonths "before that in vhich the
reject for consultation tsr;3 cade *
 ---pagebreak---                                      « u »
                                               (Article 4 covrldJ
C*   Ccnsvltaiionu shall bo hold at tfco rarest of I fees o in on'cr to
ravion iho Jicod for t:io aMintoaanco or nodi float ion of my <jur.atite.iivo
rcotrSctiono cataljlicfcctl wa&or thia Article , iJienovor th.i oarl:ct
conditions which led to "tho cotiiblinJaaont of nucli restrictions no
                                           %
Icacîor jwov&il»                                                            ;
                                                                     /.
 ---pagebreak---                                     Article 5
1 * Portions of any quantitative limit established under this Agreement
which arc not need during any given period may bo carried ovmr^und added
to the corresponding quantitative limits for the following period , within
a limit of "10$ of the latter coiling.                         .          .
2. Within a limit of 10/S of each ceiling established under this Agreement ,
advance deliveries shall "be authorized from the corresponding ceiling in
force for the following period. Amounts dispatched in advance shall "be
deducted from the ceiling for the products in question for the following
period .
3 . During eaqh period of application of this Agreement , unused portions
of quantitative ceilings established under this Agreement for one of the
regions of the Community market may bo transferred under the conditions
set out below to another quantitative ceiling established for the same
region of the Community market .        -
Transfers may be effected under this Agreement :
  (i ) to catégories :
           ex 60.05              (Jcrseyp , pullovers , slipovers , twincets,'
              01 and 21 to 39      cardigans , jackets and blouses , knitted or
                                   crocheted )
           ex 61.01              (ïlen 's , boys' women 's , girls * and infante *
          .• 61 and 69             trousers , shorts and jeans )                 *
           ex 61.02
              ex 91 to ex 99
           ex 61.03              (Men's shirts )
              11 to 19
           ex 61.03              ( Pyjajnas )
           ex 62.02              (Bed linen, table linen, toilet linen and
                                   kitchen linen ;         curtaino and other furnishing
                                   articles exocpt not curtains )
       provided euoh transfers do not exceed 7$ of the quantitative limit for
       tho category to vihieh tlicy are raado ;
(ii ) to catégories
              oX«C<\o\-'60 íí -!              ttlii rt-B rv.rl
                                 ( ocvl ton
       provided thrvfc cuch transfers do not exoecd %> of the quantitative
       limit for the category to which they are made :
 ---pagebreak---                                         8 «•
                                  Artici o 5 ( cont d,)
( iii ) MSrf- c- r as the quantities v/hich arc transferred to a quantitative
        limit aro debited from enoth or quantitative limit on the basis of
        the table of equivalences given in Aunox IV ;
  ( iv)            ao a transfer io mo/lo to a quantitative limit only once
        during each period of application of the Agreement .
4*    The preceding flexibility provisions must not , in any given period
of tlio Agreement , lead to the ceiling for any category being exceeded by
more than 15cl> of the ceiling for the . category and period in question.
5.    The flexibility provisions contained in this Article may be applied
by Macao only follovdng written notification to the Community by the
Maoao authorities .
 ---pagebreak---                                 Artici fi 6
Macao shall make every endeavour to ensxiro that - exports of all textile
produots for which quantitative limits may ho established under this
Agreement are spaced out as evenly as possible over each period of tho
Agreement* duo account being taken , in particular , of seasonal factors .
 ---pagebreak---                                  - 10 ~
                               Article; 7
The two Parties agree to exchange all relevant information concerning
their trade in textiles in order to ensure the smooth functioning of
thi o Agrcement «
          «
 ---pagebreak---                                      - 11 -
                                   Article 8
 1«  The Parties agree that the quantitative limits established under this
Agreement shall be managed under a cyst cm of double control , tho details
 of which are set out in Annex V to this Agreement .
 2 . ITaoao there £c.re undertakes to furnish tho Community ;/ith statistical
 information , on a quarterly basic , on all certificates of origin issued '
"by tho Macao authorities for all categories of textile exports to the
 Community covered "by this Agreement ,
                                        «*-
3#   The Community shall likewise forx*ard to the I-Iacao authorities on a
quarterly "basis statistical information on imports of such products into
the Community a
 ---pagebreak---                                        12 ~
                                   Artielo 9
1*  Both Parties 8h?.'ll tc.lco all appropriate measures to cnenve that the
traditional trado flowa and oomraarcitl practices are maintrinod Lei' .- cm
the Coinrrmnity and Macao .
2*  Should either Party inform the other that the functi-nair      of faliid
Agreement has given riet to difficult! cc regarding the r,u-dntc mince of
existing commercial relations "between import ern in tho Cc. 'ivvity and
their suppliers in Macao , tho Parties agree to consult together in
accordance with the procedures set out in Article 4 ( l ) above .
 ---pagebreak---                                  Article 10
Without prejudice* to the other provisions of this Agreement ,. Macao
agrees that the quantitative restrictions on imports into Ireland of the
following textile produote may "be maintained until 30 Juno 1977 n-t "the
latest .
   BUT 55*05   Cotton yarn , not put up for retail salo
         55.05 Cotton y e.rn , put up for retail eulo
         55*07 Cotton gauze#
 ---pagebreak---                                 Article 11
Thia A<yrecmont shall apply to tho territories where tho Treaty
establishing tho European Economio Community applies , on the oonrlitiona
laid down in that Treaty , and to tho territory of Ilacao.
 ---pagebreak---                                  Article 12
1# Tina Agreement shall enter into foroo on the firut dry of the nonth
following tho dato on vhich tho Contracting Parties havo notified
each other of tho completion of tho proce &ureG necessary for this purpose .
It shall remain applicable until 31 December 1977 •
                                                                        »
2 . Thio Afti-ccmcnt shall enter into force , in tho manner defined in
paragraph 1 of this Article , with retroactive effect from 1 October 1975 *
3 . Either P.irty nay at any time propone modifications to thin Agreement
or denounce it provided that notice ia given at least 120 days before tho
e>rpiry of any .twelve-month period ; in the latter event tho Agreement
will come to an end at tho expiry of tho said twelve-month period.
4#   The Annexea and Protocols to this Agreement shall form an integral
part thereof.                                  ,
 ---pagebreak---                                    - 16 -
                                  Article 13
This Agreement eho,ll "be drawn up in two copies in tho Danish , Xutch ,
English , French , German , Italian o.nd Portuguese languages , each of
tho&o tc;stn "being: equally authentic .            •
 ---pagebreak---                                                                   A r>ïFX T
                                    ]' r o d u c
                           in rsnpcet of which Ilncao vill
                           oxcrciuo voluntary rcr.trai.nt vis-
                           f\-vis ilio Cr- unvty ra a vhole
                           from tho entry into forco of the
                                        jw-rccEient
                                                               Qumtitativo linito
Contraen Cuctonia    iTip.ox                         L'ombcr   ( '000 unito )
Tnriff ï.o           Codo             Description    Stato
                                                             1 Oct 1975 to
                                                                                1977
                                                             31 fleo 1976
ex 61.01          61 to 69       Kcn't?, boyo' ,     FkG       6 770           5 691
ox 61.02          03. 91 to      v/oncn'n , ,-irin *  J        3 206           2 7 66
                  ex 99          tind infants 1        1       1 778           •l 624
                                 trour.orn , ohorta  eïl       1 507           1 3^1
                                 and jeans             UK         256             < 03
                                                     Irl             11             17
                                                       IX            33             53
                                                     EEC     13 561           11 900-
 ---pagebreak--- Products crubjeot to tho epocial oonoultotion procedure provided for in
Article 4
 CoCTion Cusîtorai?                                                            t
 Ttiriff No                           J)f SCdifif t t> n
   ex 60.05         Jerseyu , pullovers , slipovers , "tv/inoeto , cnxdipnnH ,
                    ;jnc]:otn rund "blourson , knitted or crocheted
   ex 6.1.01        ITcn'y , "boyc * , women's , £i»ls * ottd infants' cuter
   ex 61.02         {•arment, b , other than trounora , r<horts arid j o;inc
       61.03        Mon*n and laoyu * under {jarmonte , including callers , dvirt
                    fronts and cuffo : .
                       Shirts          ■
                       Other
 . 61.0-3.30        Cotton hcndkerchiefa
   62.02 B          Bod linen , tablo linen , toilet linen ftiid kitebon lir.en ;
                    curtains and other furnishing articles except not
                    curtains                             ,
 ---pagebreak---                                                              FHOÎOCOL                                                      ATHEX III
                                 to "the Agreement "between -the European Economic Comnunity
                                               and i'acao on trade in textiles
1.      n accordance with Article 4 of ths Agreement cn trade in textiles concluded bet-ween the Con-runity end Kacao cor
     - In                                                                                .t -tions
      haave taken plccs between the Parties rocnrdirc imports from Macao into the Comsamity of the textile products she                       - lo:r.
2 . As agreed at the above consultations Kacao will limit its exports of the products "below to the regions of the Co:                    :- i.ty
      Market to ths indicated levels .                                    :         • . '                      -    •    -  ... -
                                               Re ;-! on of the Cccniumty
Co-mnon Custoss                                market where the                                                              Periode
                            Description                                        Unit       Quantitative lirsxts
Tsriff Eo                                      quantitative lisit
                                               applies
e:c 60.05           Jerseys , pullovers ,                  EÎIL              items               600 COO         1 Oct 75 to 31 Dec l?75
01 and 21 to     39 slipovers , tvrinsets ,                 F                    n
                                                                                2 220 000
                     cardigans , jackets and
                    "blouses , knitted or -
                     crocheted
61.02               Vlomen* 5 shirts and
 î\ b ?1            "blouses                                                                  1 600 000               Il           H
wx 61.03            lien' s and boys * chirts              Sx* li               11
                                                                                400 C00              Il         ' «
V. to 19                                                    p                    tt
                                                                                2 459 200          1 Jsn 16 to 31 Tec   ■ - vr
CX 61.03            Pyjanas                                 p                    «r
                                                                                2 014 0C0               «s           n
61.05.30             Cotton fcancikerchiefs                BEL .          Eietric ions            50             1 Oct 75 to 31 Tec  • ' -> C
                                                                                -• V I ■•>
                                                            P                   n
                                                                                83.3           1 Jan 76 to 31 Ics
                                                            I                   11
                                                                                273.3           1 Oct 75 to 31 rsc
es 62.C2            Bed linen , ta"ble linen ,                                                  320              1 Oct 75 to 31 See -1
                    toilet linen and kitchen
                    linen ; curtains and
                    other fur-nishirj
                    articles , of cotton ,
                    excect net curtains
3 . If the above limits remain in fbrce for one or more .additional periods of t*:olve Eonths , ths level for that period /. A "
      net "be lo:;er than that in force during the preceding tuolve-r.cr.th period , ',;ith an incrsa-js of at leaot J/j ci:d :*■ t ?. >
      cotton hsrdkerchiefs *
 ---pagebreak---                                                                     AtTMEK TV
                             Table of ecpiivalonoca
                      for "fell® application of Arfciclo 5
   ran
                          Daccription                                 Evraivaleiaccn
hooding
ox 60.05   Jorneyc ,                   r-lilpovera ? "t*.'inrjOus f   5. 13   itemn/kg •
           cardinAnn ,. .v -okoio cutid blouses ( iraiirfcod
           or crochav.'-d
ox 61.01   I-Ven'n , v<x^on*o » 't>oyr', {'jlrlo* esarl               p  /.7  i ;, - ;:r/ks
ex 61,02 ^ infants' *ircarif;r3 , tficrts and *jccaE»
ex 61.02   Wonsn*» r* viré a «od bXûuaoa
C3£ 6l»0.> Ken* s «îd l)C/n * rhii/tu                                 4.60 ito;s: /kg
ex 61.03   ry,jc.itao                            -                    \  r>'> X n        -k {î
                                                                                i
                                                                                i
                                                                                j
                                                                                i
                                                                                1
 ---pagebreak---                                                                                t rmx v
   Ao asrcod botv/aon tho Portico in Article 8 of tho Acreoccnt , tho adminis
   tration of toxtil© iinporbs from Uac^o trill "be "based on a oyotcm of uoublo
   control .          Tho dot ail a of this qyctca huvo "been agreed fcotvoon •the Partieo
   and aro cet out below.
   The cuthoriticD in tho Ccr-nunity will , automatically and without dolayt
   accept icporfcn of tortile product n on submission of tho importer * a applica
   tion tocother with tho orieinal certificate of origin iacasd "by tho Hocao
   Government authorities^.                Tho authoritieo in tho Corcnnaiity chall l-o
   authorised to request tho presentation of tho cortificato of origin in
   renpeot cf coodo oripj.ia.ting in Ilacao of tho categories ehoun in Annox I
   end, ifhorc Articlo 4                "been invoked, in Annex III,               Taeco certificates
   of origin vi.ll Tae issued "by tho I'acao Government authoritioa up to tho
   total mount of tho a^Toed quantitative 1 iip.it o,
   Tho certificates of origin iocued Tny tho iiacc.o authoriticn eh&ll Lo
   applicable to tho products subject to restraint undor tho Acroorccnt .
   Tha ccrtiiicato of oricin muet Dpcoify:
   1*     destination
   2m     sériai nuiiber
  j»     ic!porí,cr*o nano and address
  4.     Cjq5crter t c rurio and audroos
   5. net quantity (in cotric tons or number of items as indicated in tho
' Acrconent ) e»d value
   Cu    cr.tcix^' end clc.n :.« ifi cation of product                                      "
  7 • certificate icoircd "by tho Ilacao authorities cliovrin^ that tho quantity
  hoc. Loon debited p^ainrjt tho acroed coiling for crpoxto to tho Counnmity or,
  vhoro .T\->ro^rintc f ir.i Tor irnediata re-export or fev in;;r:;ru-procc. n nirt£ and
  cu'nGoqucnt re-export outside tho Coaasuiii-fcy.
    i.   .,. .    » : Y. .V i . V/.1 :          r \ , ; ^ ^ * "■ " i » •• ♦ j \ •'     .• •« * « • f .– - '• ? •
         c.io r -Mprx-nt or import quantities px^cvidnA it is \:itVin reaoonablo lirdt ".
  tj.v.io v .l',cr.o o,/l?:ovitica , for thoir part , trill cn&onvour to Iceop tsay
        »'C:'.....CIOS ii (> L, ruxttwuuw
        -r...vvo ovovzucxal do serviços de economia do Kaeao .
 ---pagebreak---                                                       (Anusx V coîrfccU
la tho event of total or i>n.rfcir„l vi'lh^r^'.;':.! of certificate of origin j tho
Vac&o authorities v;ill natiiy tho relevant authorities in tho Ccrsttinity of
cv.ch total or partial withdrawal •           Efce authorities in tha Cotasunifcy vill tcJ
tho a&didntrativo mensuria available to thcxa .
Cflus ". 'C'Oao ©utftoritiea v;ill i'canraril tc the tvuthoriticn 5 12 th.s ' Co;::r.u*J.ty »
via the Sralxi»Rio;j of tho        ••>,•*.he?      of tho Cortrurtiuy £'.r/l directly to
tho Comirdcfjion , <jn:»arfc*;i*?y yrUiraa ch-.rt>i»« the quantities eov.a'crt ty tho
certificates of ori /..5 u Lnix-A against the coiling for . o"r<cr :-« to tho
CcmymlXji as vcJU r.s tho allocation cf                   cortiiina'tcs or origin
aoon/j tho I-Tcsah-x* states of tho Community .for each c- vUv - .vy vv cfdii-v: in-
recpoot 01* textile? ciporta to tho C OM-, utility cubjcct to <piaaiit&tiv5 linitn
tai&er thin JL^'a o-v.cnt .


title: Council Recommendation of 8 March 2016 on the economic policy of the euro area

text:
               11.3.2016

               EN

               Official Journal of the European Union

               C 96/1

         COUNCIL RECOMMENDATION
   of 8 March 2016
   on the economic policy of the euro area
   (2016/C 96/01)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Article 136, in conjunction with Article 121(2) thereof,
   Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 5(2) thereof,
   Having regard to Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (2), and in particular Article 6(1) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

               According to the Commission’s 2015 autumn economic forecast, the economic recovery continues at a moderate pace in the euro area. Sustaining and strengthening growth in the euro area requires continued policy efforts to support a balanced adjustment in the private and public sectors, improve the adjustment capacity and increase the economy’s competitiveness and growth potential in the medium to long term. The pace of growth is hampered by legacies of the most recent economic and financial crises, including ongoing external rebalancing, high levels of public and private debt, high unemployment, as well as persistent structural rigidities in national labour and product markets. Investment remains weak on account of these factors, but also of other bottlenecks, such as unfavourable business environments, public-administration inefficiencies as well as obstacles to access to finance.

               (2)

               The implementation of ambitious structural reforms that raise productivity and boost growth potential needs to be bolstered in line with the policy priorities set out in the Commission’s 2016 Annual Growth Survey for all Member States. If carried out jointly across Member States, structural reforms can offer benefits to the euro area as a whole through positive spillover effects, in particular through trade and financial channels. Despite some progress with reforms to improve the resilience of labour markets, significant divergences persist across the euro area, especially as regards long-term and youth unemployment rates. Those Member States that pursued comprehensive labour market and social protection reforms prior to the crisis have been able to better support employment and preserve fairness during the economic downturn. Such reforms encompass flexible and reliable contractual arrangements, comprehensive lifelong learning strategies, effective active labour market policies, and adequate and sustainable social protection systems. Also, reducing the tax wedge on labour, in particular for low-income earners, and ensuring equitable tax systems can improve outcomes.

               (3)

               An appropriate development and swift implementation of reforms can help in addressing existing imbalances in the euro area and in preventing the build-up of new ones. The thematic discussions within the Eurogroup, with increased focus on benchmarking, pursuing best practices and peer pressure, can contribute to promoting convergence towards best performance. The Eurogroup should therefore further strengthen the thematic discussions on reforms in areas that are essential for the functioning of Economic and Monetary Union (EMU) and regularly monitor the implementation of reforms by euro area Member States as well as the progress made with the correction of imbalances in the context of the macroeconomic imbalances procedure.

               (4)

               Fiscal policies are a matter of vital common interest in EMU. Responsible national fiscal policies that respect the common fiscal rules are essential to support debt sustainability and allow the fiscal stabilisers to operate and cushion country specific shocks. In addition, it is essential to achieve an appropriate fiscal stance at the level of the euro area as a whole reflecting a balance between long-term fiscal sustainability and short-term macroeconomic stabilisation, and to avoid pro-cyclical fiscal policies. The fiscal effort needed varies depending on Member States’ respective positions with regard to the requirements under the Stability and Growth Pact (SGP), and Member States should also consider stabilisation needs and take into account possible spillovers across the euro area. This calls for a reinforcement of the coordination of fiscal policies within the euro area in full respect of the SGP. In this context, the broadly neutral aggregate fiscal stance in the euro area expected in 2016 appears appropriate in light of the overall macroeconomic conditions and downside risks to growth. As regards 2017, based on the forecast of a gradually closing output gap, fiscal policies should avoid pro-cyclicality and reduce public debt in order to restore fiscal buffers. This should be reflected in the preparations of the updated stability programmes in spring 2016, taking into account the latest economic and fiscal developments. The composition of fiscal strategies is not yet sufficiently growth-friendly. As highlighted in the Council Recommendation to the euro area Member States (3) adopted on 14 July 2015, euro area Member States should hold thematic discussions on improvements in the quality and sustainability of public finances.

               (5)

               The Banking Union needs to be fully implemented. First, Directive 2014/59/EU of the European Parliament and of the Council (4) (‘Bank Recovery and Resolution Directive’) is to be fully transposed without further delay by all Member States. Second, a fiscally neutral common backstop to the Single Resolution Fund (SRF) will be developed during the transitional period as defined in Regulation (EU) No 806/2014 of the European Parliament and of the Council (5), and will be fully operational by the end of the transitional period, when resources of the SRF are fully mutualised. Progress shall be reviewed soon after the entry into force of the SRF. The common backstop also will be fiscally neutral over the medium term and will ensure equivalent treatment across all participating Member States, as well as incurring no costs for Member States not participating in the Banking Union. Once the SRF enters into force and when participating Member States have ratified the intergovernmental agreement and fully transposed the Bank Recovery and Resolution Directive, Member States will take stock of the establishment of the bridge financing arrangements and consider the way forward and timing regarding the work on the common backstop, to ensure that it will be fully operational by the end of the transitional period. Member States will also reflect further in 2016 on measures needed to continue deepening the Banking Union. Finally, as part of the further development of the Banking Union, the Commission issued on 24 November 2015 its communication entitled ‘Towards the Completion of the Banking Union’.

               (6)

               Financial market conditions remain overall favourable in the euro area, against the background of an accommodative monetary policy stance. However, the still weak economic fundamentals and high leverage in the private sector continue to weigh on demand for bank lending, and thereby economic growth. Banks’ balance sheets remain under pressure from high levels of non-performing loans, hampering lending activity. Diverse and sometimes inadequate insolvency regimes in the Union contribute to delaying the reduction of private sector debt, holding back investment.

               (7)

               Notwithstanding the recent achievements in strengthening the EMU architecture, work must continue to complete it. The Five Presidents’ Report ‘Completing Europe’s Economic and Monetary Union’ of 22 June 2015 prepared by the President of the European Commission, in close cooperation with the Presidents of the European Council, of the European Central Bank, of the Eurogroup and of the European Parliament, sets out the way ahead to complete EMU by 2025. On 21 October 2015, the Commission adopted, jointly with the European Parliament, the Council and the European Central Bank, a ‘Communication on steps towards Completing Economic and Monetary Union’, which contains a first set of follow-up proposals to the Five Presidents’ report. The euro area Member States should take collective ownership and move ahead in a timely, open and transparent manner, with the implementation of short and medium-term initiatives towards the completion of EMU. With a view to promoting convergence across the euro area, the proposals include measures to strengthen the euro area dimension of the European Semester by, inter alia, an earlier publication of the euro area recommendations, with a view to identifying common challenges early on in the process and to reflecting this in the formulation of country-specific recommendations for the euro area Member States to be adopted later in the European Semester. The euro area Member States should also work, in an open and transparent manner, on more long-term initiatives towards the completion of EMU,

         HEREBY RECOMMENDS that in the period 2016-2017, euro area Member States take action within the Eurogroup, individually and collectively, to:

               1.

               Pursue policies that support the recovery, foster convergence, facilitate the correction of macroeconomic imbalances and improve adjustment capacity. To this end, Member States, particularly those with large stocks of private and foreign debt, are to implement reforms that enhance productivity, foster job creation, raise competitiveness and improve the business environment. Member States with large current account surpluses are to implement as a priority measures, including structural reforms, that help strengthen their domestic demand and growth potential.

               2.

               Implement reforms that combine: (i) flexible and reliable labour contracts that promote smooth labour market transitions and avoid a two-tier labour market; (ii) comprehensive lifelong learning strategies; (iii) effective policies to help the unemployed re-enter the labour market; (iv) adequate and sustainable social protection systems that contribute effectively and efficiently throughout the life cycle both to social inclusion and labour market integration; and (v) open and competitive product and services markets. Reduce the tax wedge on labour, particularly on low-earners, in a budgetary-neutral way to foster job creation.

               3.

               Pursue fiscal policies in full respect of the SGP. For 2016, the objective of a broadly neutral aggregate fiscal stance in the euro area appears appropriate in order to reflect a balance between long-term fiscal sustainability and short-term macroeconomic stabilisation. Looking towards 2017, reduce public debt to restore fiscal buffers and avoid pro-cyclicality. Differentiate the fiscal effort by individual Member States in line with their respective positions with regard to the requirements under the SGP while considering stabilisation needs, as well as taking into account possible spillovers across euro area Member States. To this end, review the euro area fiscal stance in the context of the stability programmes and the draft budgetary plans.

               4.

               Facilitate the gradual reduction of banks’ non-performing loans and improve insolvency proceedings for businesses and households. In Member States with large stocks of private debt, promote an orderly deleveraging, including by facilitating the resolution of unviable private debt.

               5.

               Work towards completing EMU in an open and transparent manner, while fully supporting the internal market, and further exploring the legal, economic and political aspects of the more long-term measures contained in the Five Presidents’ Report.

      Done at Brussels, 8 March 2016.

            For the Council

            The President

         J.R.V.A. DIJSSELBLOEM

      (1)  OJ L 209, 2.8.1997, p. 1.

      (2)  OJ L 306, 23.11.2011, p. 25.

      (3)  Council Recommendation of 14 July 2015 on the implementation of the broad guidelines for the economic policies of the Member States whose currency is the euro (OJ C 272, 18.8.2015, p. 98).

      (4)  Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council (OJ L 173, 12.6.2014, p. 190).

      (5)  Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No 1093/2010 (OJ L 225, 30.7.2014, p. 1).