title: Council Recommendation of 12 July 2011 on the National Reform Programme 2011 of Poland and delivering a Council opinion on the updated Convergence Programme of Poland, 2011-2014

text:
               23.7.2011

               EN

               Official Journal of the European Union

               C 217/5

         COUNCIL RECOMMENDATION
   of 12 July 2011
   on the National Reform Programme 2011 of Poland and delivering a Council opinion on the updated Convergence Programme of Poland, 2011-2014
   2011/C 217/02
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) 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 9(3) 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 Employment Committee,
   After consulting the Economic and Financial Committee,
   Whereas:

               (1)

               On 26 March 2010, the European Council agreed to the Commission's proposal to launch a new strategy for jobs and growth, Europe 2020, based on enhanced coordination of economic policies, which will focus on the key areas where action is needed to boost Europe's potential for sustainable growth and competitiveness.

               (2)

               On 13 July 2010, the Council adopted a recommendation on the broad guidelines for the economic policies of the Member States and the Union (2010 to 2014) and, on 21 October 2010, adopted a decision on guidelines for the employment policies of the Member States (2), which together form the ‘integrated guidelines’. Member States were invited to take the integrated guidelines into account in their national economic and employment policies.

               (3)

               On 12 January 2011, the Commission adopted the first Annual Growth Survey, marking the start of a new cycle of economic governance in the EU and the first European semester of ex-ante and integrated policy coordination, which is anchored in the Europe 2020 strategy.

               (4)

               On 25 March 2011, the European Council endorsed the priorities for fiscal consolidation and structural reform (in line with the Council's conclusions of 15 February and 7 March 2011 and further to the Commission's Annual Growth Survey). It underscored the need to give priority to restoring sound budgets and fiscal sustainability, reducing unemployment through labour market reforms and making new efforts to enhance growth. It requested Member States to translate these priorities into concrete measures to be included in their Stability or Convergence Programmes and National Reform Programmes.

               (5)

               On 25 March 2011, the European Council also invited the Member States participating in the Euro Plus Pact to present their commitments in time to be included in their Stability or Convergence Programmes and their National Reform Programmes.

               (6)

               On 27 April 2011, Poland submitted its 2011 Convergence Programme update covering the period 2011-2014 and on 29 April 2011 its 2011 National Reform Programme. In order to take account of the interlinkages, the two programmes have been assessed at the same time.

               (7)

               The global financial crisis led to a slowdown in economic activity in Poland, with the rate of real GDP growth dropping to 1,6 % in 2009, but stopping short of a recession. In 2010, real GDP growth bounced back to 3,8 % as strong external demand fuelled manufacturing and turned the inventory cycle, while a resilient labour market supported private consumption. The unemployment rate rose to 9,6 % in 2010, up from 7,1 % in 2008, despite increasing employment. The crisis has taken a heavy toll on public finances. The general government deficit rose from 3,7 % of GDP in 2008 to 7,3 % in 2009. In 2010, despite a modest consolidation package and in the face of strong growth, it reached 7,9 % of GDP. The debt-to-GDP ratio rose from 50,9 % in 2009 to 55,1 % (3) in 2010, still below the 60 % Treaty threshold and the Polish Constitutional debt limit.

               (8)

               Based on the assessment of the updated Convergence Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections is plausible, while based on slightly too favourable growth assumptions for 2012. The Convergence Programme plans to bring the deficit below the 3 % of GDP reference value by 2012, the deadline set by the Council. The average annual fiscal effort over the period 2010-2012 is fully in line with the 1,25 % of GDP recommended by the Council under the excessive deficit procedure (EDP) on 7 July 2009. Achievement of the medium-term objective (MTO) is not envisaged during the Convergence Programme period. The amendment to the pension reform reducing the structural budget deficit by 0,7 % in 2011 and by a further 0,5 % of GDP in 2012 does not substantially improve the underlying budgetary situation as an improvement in the initial budgetary position is accompanied by an increase in long-term liabilities. Risks to budgetary targets are tilted to the downside. In particular direct tax revenues might turn out lower than projected because of optimistic assumptions on elasticities with respect to the tax base, programme projections on social contributions rely on favourable scenarios for employment and wage growth; and potential implementation delays and changes to the deficit-reducing measures, also beyond the direct control of the government, could result in a slippage in the consolidation path.

               (9)

               The Polish government committed itself to bringing the general government deficit below 3 % of GDP by 2012, as recommended by the Council, and to ensuring the stability of public finances in the long term. To this end, in 2011 it has embarked on a plan to substantially consolidate public finances, with measures affecting both revenue and expenditure including a substantial reduction in public investment expenditure. The draft 2012 budget was adopted by the government on 5 May 2011. It is expected to contribute to a further significant reduction in the deficit. Measures may still need to be implemented in addition to the ones presented in the draft 2012 budget to meet the 2012 deadline for correction of the excessive deficit. However, a further decline in growth-enhancing expenditure would risk adversely affecting potential growth in the future.

               (10)

               Poland has strengthened its fiscal framework over the years. However, in order to assure sustainability of public finances in the medium to long term the existing fiscal rules and medium-term programming procedures do not appear to provide for sufficient transparency of the budgetary process, incentives for coordination between various tiers of government and flexibility to address macroeconomic shocks and imbalances. The fiscal rules should also be based on sufficiently broad budgetary aggregates and should be consistent with the European System of National and Regional Accounts (ESA95). According to the Commission's latest assessment, the risks with regard to long-term sustainability of public finances appear to be medium.

               (11)

               Although the government has abolished special early pensions for a majority of beneficiaries, special early retirement arrangements for uniformed services and miners remain in place, and the statutory retirement age for women is lower than for men. The effective retirement age is therefore still low. Moreover, the heavily subsidised farmers' social security fund (KRUS) provides little incentives for farmers to move to more productive sectors, which is also affected by education, infrastructure and mobility challenges, slowing economic restructuring and hampering productivity growth.

               (12)

               The education and training system is not fully tailored to labour market needs. Despite a sharp increase in tertiary education attainment, employability is affected by a skills and jobs mismatch. The higher education system is not adequately linked to the business and employment environment. The proportion of adults (especially older and low-skilled workers) participating in education and vocational training remains very low.

               (13)

               Despite some recent increase, public spending on research and development (R&D) is low in Poland, also private spending on R&D is among the lowest in the EU and has been declining in recent years. This is likely to become a major obstruction to medium- and long-term economic growth. The R&D system is not fully integrated as universities, research institutes and industry are only weakly interlinked.

               (14)

               Low female labour market participation is partly due to insufficient provision of care facilities for children and dependents. The number of children under three years for whom formal care arrangements are made in Poland is far below the EU average. The enrolment rate of older children, although it has risen over the last few years, is similarly low. In many cases young parents can only participate in the labour market if childcare is provided by their relatives. In addition, insufficient provision of care services reduces the labour force potential of older women in particular since they leave their jobs or retire early in order to take care of their grandchildren or other dependents.

               (15)

               The underdeveloped network infrastructure is an obstacle to business and foreign investment and the underdeveloped transport infrastructure amplifies regional disparities. The energy infrastructure is ageing rapidly and has reached its capacity limits. Moreover, it needs significant adjustments to meet the requirements associated with climate change mitigation policies. Although Poland's rail system is the third largest in Europe, it cannot properly support the expansion of economic activity because of outdated infrastructure and rolling stock.

               (16)

               The quality of the business environment and the efficiency of public administration are low in Poland. In cross-country comparisons, Poland has particular problems in the areas of paying taxes, starting and closing businesses, enforcing contracts and registering property. Companies are hindered by lengthy licensing and permit procedures. As regards legal actions, such as contract enforcement and obtaining construction permits, the number of procedures involved is rather high and the overall process is too long.

               (17)

               Poland has made a number of commitments under the Euro Plus Pact. On the fiscal side, Poland commits itself to the existing debt and the temporary expenditure rule, the introduction of new regulations limiting deficit ratios of local governments and the introduction of a permanent expenditure rule. To reinforce financial stability, measures aim at more efficient regulation and supervision of the banking sector. Employment measures focus on labour market participation of women as well as of older workers and reforms to strengthen business-education links. The competitiveness measures focus on education and the science sector, transport and broadband infrastructure development and measures to improve the business environment. These commitments refer to the four areas of the Pact and largely reflect the agenda presented in the Convergence and National Reform Programmes. Several important policy challenges need to be further addressed (e.g. the low participation rate of older workers) or are only touched upon (e.g. the improvement of the business administration). The Euro Plus Pact commitments have been assessed and taken into account in the recommendations.

               (18)

               The Commission has assessed the Convergence Programme and National Reform Programme, including the Euro Plus Pact commitments. It has taken into account not only their relevance for sustainable fiscal and socio-economic policy in Poland but also their conformity with EU rules and guidance, given the need to reinforce the overall economic governance of the EU by providing EU-level input into future national decisions. It considers that the programmes set out an ambitious public finance consolidation plan and encourages the government to proceed with implementation, and to take additional measures, if necessary, to reduce the general government deficit to below 3 % of GDP by 2012. Building on the achievements of the past decade, steps should be taken to further increase employment, mainly by implementing reforms in the pension and education systems, and by improving child- and dependent-care services. Moreover, non-price competitiveness should be further increased by improving the R&D framework and the business environment and by promoting infrastructure investment.

               (19)

               In the light of this assessment, also taking into account the Council Recommendation of 7 July 2009 under Article 126(7) of the Treaty on the Functioning of the European Union, the Council has examined the 2011 update of the Convergence Programme of Poland and its opinion (4) is reflected in particular in its recommendations 1 and 2 below. Taking into account the European Council conclusions of 25 March 2011, the Council has examined the National Reform Programme of Poland,

         HEREBY RECOMMENDS that Poland take action within the period 2011-2012 to:

               1.

               Implement the measures announced in the draft 2012 Budget Law and take additional measures of a permanent nature if needed to reduce the general government deficit to below 3 % of GDP in 2012, in line with the Council recommendations under the EDP. While ensuring adequate progress towards the medium-term objective, minimise cuts in growth-enhancing expenditure in the future.

               2.

               Enact legislation with a view to introducing a permanent expenditure rule by 2013. This rule should be based on sufficiently broad budgetary aggregates and should be consistent with the European system of accounts. Moreover, take measures to strengthen the mechanisms of coordination among the different levels of government in the medium-term and annual budgetary processes.

               3.

               Raise as planned the statutory retirement age for uniformed services, continue steps to increase the effective retirement age, such as linking it to life expectancy. Establish a timetable to further improve the rules for farmers' contributions to the social security fund (KRUS) to better reflect individual incomes.

               4.

               Implement the proposed lifelong learning strategy, enhance apprenticeships and dedicated vocational training and education programmes for older workers and low-skilled workers. Strengthen links between science and industry by implementing the ‘We build on Knowledge’ programme (‘Budujemy na Wiedzy’). Implement the higher education reform programme ‘Partnership for Knowledge’ (‘Partnerstwo dla Wiedzy’) so as to better align educational provision with labour market needs.

               5.

               Increase female labour market participation by taking measures to ensure stable funding for pre-school child-care arrangements, to increase enrolment rates of children under three years.

               6.

               Take measures to improve incentives for investment in energy generation capacity with a view to encouraging low-carbon emitting technologies, and to further develop cross-border electricity grid interconnections; develop a multiannual plan for investment in railway infrastructure and implement the rail transport master plan.

               7.

               Take steps to simplify legal procedures involved in enforcing contracts; revise construction and zoning legislation, with a view to streamlining appeal procedures and speeding up administrative procedures.

      Done at Brussels, 12 July 2011.

            For the Council

            The President

         J. VINCENT-ROSTOWSKI

      (1)  OJ L 209, 2.8.1997, p. 1.

      (2)  Maintained for 2011 by Council Decision 2011/308/EU of 19 May 2011 on guidelines for the employment policies of the Member States (OJ L 138, 26.5.2011, p. 56).

      (3)  Figure according to the Commission services' AMECO database. According to the Ministry of Finance's communication of 30 May 2011, debt-to-GDP ratio on 31 December 2010 amounted to 54,9 %.

      (4)  Foreseen in Article 9(3) of Regulation (EC) No 1466/97.


Avis juridique important

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31988H0041

88/41/EEC: Commission Recommendation of 10 December 1987 on the involvement and improvement of consumer participation in standardization

Official Journal L 023 , 28/01/1988 P. 0026 - 0026

*****COMMISSION  RECOMMENDATION  of 10 December 1987  on the involvement and improvement of consumer participation in standardization  (88/41/EEC)  THE COMMISSION OF THE EUROPEAN COMMUNITIES,  Having regard to the Treaty establishing the European Economic Community,  Whereas one of the aims of the Community is the improvement of the living conditions of its citizens including the protection of health, safety and consumer interests;  Whereas the Council Resolution of 14 April 1975 on a preliminary programme of the European Economic Community for a consumer protection and information policy (1) recognized the right to protection of health and safety as one of the five basic rights for consumers; whereas this programme as well as the second programme (2) defined the principles for priority action at Community level, particularly concerning the protection of health and safety of consumers through consultation between consumers and producers/distributors;  Having regard to the new impetus for consumer protection policy (3),  Having regard to the Council Regulation of 7 May 1985 on a new approach to technical harmonization and standards (4),  Having regard to the conclusions of the European Forum of consumers and standardization, held in Brussels on the 4 and 5 June 1987,  Whereas, in its communication on consumer involvement on standardization, the Commission proposed to take action to reach agreement with CEN/Cenelec on a new way of working and to prepare a priority programme of standardization for consumer products in the interests of consumers,  RECOMMENDS TO THE MEMBER STATES:  1. That they associate themselves with Commission action aimed at:  (a) persuading national and European standards organizations to:  - provide for active participation of consumers, as well as all other interested parties (such as mawnufacturers, users, traders, and trade unions), in their activity,  - assure the selection of consumer representatives nominated by consumer interests to serve as members of the delegations of national standards bodies in chosen technical committees of CEN/Cenelec;  (b) encouraging consumer representatives to fix clear priorities at European level for standardization aimed at greater consumer protection.  2. To provide basic funding to enable consumers to play an effective role in European standardization without loss of earnings.  Done at Brussels, 10 December 1987.  For the Commission  Grigoris VARFIS  Member of the Commission  (1) OJ No C 92, 25. 4. 1975, p. 1.  (2) OJ No C 133, 3. 6. 1981, p. 1.  (3) COM (85) 314 final, 23. 7. 1985.  (4) OJ No C 136, 4. 6. 1985, p. 1.


title: Council Recommendation of 11 July 2017 on the 2017 National Reform Programme of Bulgaria and delivering a Council opinion on the 2017 Convergence Programme of Bulgaria

text:
               9.8.2017

               EN

               Official Journal of the European Union

               C 261/7

         COUNCIL RECOMMENDATION
   of 11 July 2017
   on the 2017 National Reform Programme of Bulgaria and delivering a Council opinion on the 2017 Convergence Programme of Bulgaria
   (2017/C 261/02)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) 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 9(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 resolutions of the European Parliament,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Social Protection Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

               On 16 November 2016, the Commission adopted the Annual Growth Survey, marking the start of the 2017 European Semester for economic policy coordination. The priorities of the Annual Growth Survey were endorsed by the European Council on 9-10 March 2017. On 16 November 2016, on the basis of Regulation (EU) No 1176/2011, the Commission adopted the Alert Mechanism Report, in which it identified Bulgaria as one of the Member States for which an in-depth review would be carried out.

               (2)

               The 2017 country report for Bulgaria was published on 22 February 2017. It assessed Bulgaria’s progress in addressing the country-specific recommendations adopted by the Council on 12 July 2016, the follow-up given to the country-specific recommendations adopted in previous years and Bulgaria’s progress towards its national Europe 2020 targets. It also included an in-depth review under Article 5 of Regulation (EU) No 1176/2011, the results of which were also published on 22 February 2017. The Commission’s analysis led it to conclude that Bulgaria is experiencing excessive macroeconomic imbalances. In particular, Bulgaria continues to experience imbalances linked to remaining fragilities in the financial sector and high corporate indebtedness in a context of the high long-term unemployment.

               (3)

               Bulgaria submitted its 2017 National Reform Programme and its 2017 Convergence Programme on 17 May 2017, after the deadline.

               (4)

               Relevant country-specific recommendations have been addressed in the programming of the European Structural and Investment Funds (ESI Funds) for the 2014-2020 period. As provided for in Article 23 of Regulation (EU) No 1303/2013 of the European Parliament and of the Council (3), where it is necessary to support the implementation of relevant Council recommendations, the Commission may request a Member State to review and propose amendments to its Partnership Agreement and relevant programmes. The Commission has provided further details on how it would make use of that provision in guidelines on the application of the measures linking effectiveness of the ESI Funds to sound economic governance.

               (5)

               Bulgaria is currently in the preventive arm of the Stability and Growth Pact. In its 2017 Convergence Programme, the Government, starting from a balanced budgetary position in 2016, plans a headline deficit of 0,6 % of GDP in 2017. The headline deficit is projected to slightly improve to 0,5 % of GDP in 2018 and turn into a small surplus thereafter. The medium-term budgetary objective — a structural deficit of 1 % of GDP — is planned to be achieved with a margin throughout the programme period. According to the 2017 Convergence Programme, the general government debt-to-GDP ratio is expected gradually to decline from 29,5 % of GDP in 2016 to 23,8 % in 2020. The macroeconomic scenario underpinning those budgetary projections is plausible.

               (6)

               On 12 July 2016, for 2017 the Council recommended Bulgaria to achieve an annual fiscal adjustment of 0,5 % of GDP towards the medium-term budgetary objective. Outturn data indicate that Bulgaria already outperformed its medium-term budgetary objective in 2016. Based on the Commission 2017 spring forecast, the structural balance is forecast to reverse from a surplus of 0,1 % of GDP in 2016 to a deficit of 0,4 % of GDP in 2017 and of 0,3 % of GDP in 2018 on a no-policy-change basis. In spite of this deterioration, the structural balance is projected to remain above the medium-term budgetary objective in both years. Overall, the Council is of the opinion that Bulgaria is projected to comply with the provisions of the Stability and Growth Pact in 2017 and 2018.

               (7)

               Efforts to improve tax collection are ongoing. Despite improvements, tax compliance remains a challenge. The shadow economy and undeclared work are still high. The tax-related administrative burden has been reduced but is still significant. Measures to cut red tape appear to have produced limited results so far and there are no indications of major improvements in voluntary tax compliance. Under these circumstances, enforcing the rules appears to be key not only for implementing controls but also for strengthening the prevention of tax non-compliance. The Action Plan to the 2015-2017 Single National Strategy for improving tax collection, tackling the shadow economy and reducing compliance costs appears to be a useful tool, especially for evaluating and improving the coordination and efficiency of a number of administrative bodies working in the tax field. An ex post analysis of the impacts of the specific measures could contribute to the proper assessment, planning and targeting of future tax compliance measures. These measures will be included in a comprehensive single national strategy to replace the current strategy which expires at the end of 2017.

               (8)

               The Bulgarian authorities, in consultation and cooperation with the relevant European bodies, conducted asset quality reviews and stress tests of the banking and insurance sectors, and a review of private pension funds’ assets. While the results confirmed the robustness of the sectors on aggregate, pockets of vulnerabilities were confirmed, including in some systemically-important institutions As the follow-up measures have not yet been fully implemented, the source of the vulnerability remains. Furthermore, some issues, including valuing illiquid financial instruments and assets as well as related-party exposures, were not fully tackled by the three reviews. The supervisors could take a more conservative approach to address these issues. Outstanding issues in the insurance sector also include the treatment of certain reinsurance contracts, some insurance receivables and group-level supervision.

               (9)

               To tackle the possibility of similar imbalances re-emerging in the future, the measures to improve banking supervision need to be finalised and further efforts to improve non-banking supervision are required. Tackling hard-to-value assets and unsound business practices, including related-party and connected lending, remain key challenges for the authorities. The Bulgarian National Bank has launched a plan to reform and develop banking supervision, based also on the findings of the World Bank and the IMF. This plan is now being implemented, but may need to be amended in light of the findings of the Financial Sector Assessment Programme. The shortcomings in supervision evidenced by the insurance and pension fund reviews highlight the need for the Financial Supervision Commission to develop and implement a comprehensive plan to strengthen supervision, including by improving its own internal governance and functioning. To ensure full credibility, such a plan should draw on international best practices in the area and should be prepared and implemented in close cooperation with the relevant European bodies, incorporating input from third-party service providers as needed.

               (10)

               Corporate debt remains high (well above that of peer countries), placing a burden on companies’ balance sheets and potentially constraining credit demand and investment over the medium term. To reduce the still-high level of corporate non-performing loans, the Bulgarian authorities should facilitate the workout process for banks by drawing on a comprehensive set of tools. For instance, speeding up the insolvency framework reform would improve the legal environment for dealing with bad debt and provide opportunities for out-of-court restructuring. Beyond the insolvency framework, the toolkit could include supervisory guidance to banks with particularly high levels of non-performing loans. It could also include actions to make data on asset quality more transparent in order to help to deepen the secondary market for non-performing loans.

               (11)

               Recent labour market developments have been positive, but structural problems remain. The labour force continues to shrink because of population ageing combined with emigration. As the economy is undergoing structural changes, it is essential to tap into the unused labour potential. Currently, the labour market is characterised by a high share of long-term unemployed in total unemployment and a high inactivity rate, limited inclusion of young people in the labour market and skills shortages and mismatches. While the unemployment rate fell below the Union average in 2015, the share of long-term unemployment and the rate of young people not in employment, education or training and the low employment rate of low-skilled people are still major challenges. In the face of these challenges, active labour market policies are insufficiently targeted towards disadvantaged groups and their needs, which hinders their employability. In addition, the insufficient integration of employment and social services for recipients of social benefits can limit their labour market participation.

               (12)

               Improving educational outcomes and strengthening the provision of quality inclusive mainstream education remains a challenge, with potential consequences for poverty. While the risk of poverty or social exclusion for children has slightly decreased, it remains one of the highest in the Union and is strongly linked to the educational level of the parents. Achievement in basic skills as measured by the 2015 OECD Programme for International Student Assessment (PISA) show that the proportion of underachievers in reading, mathematics and science remains one of highest in the Union. The planned methodology to improve school financing has yet to be developed. This aims to support more equitable outcomes by providing additional support to low-performing schools. Children from families with lower socioeconomic status, particularly Roma families, do not enjoy de facto equal educational opportunities, including in early childhood. Vocational education and training is being reformed, but its quality and the cooperation with business and social partners are insufficient. Dual education continues to be rolled out. In higher education, performance-based funding seeks to improve quality and labour market relevance.

               (13)

               Limited accessibility, low funding, the emigration of professionals and weak health outcomes continue to be key challenges in the healthcare system. Low health insurance coverage, including the low public coverage of outpatient medical services and high out-of-pocket payments, make it difficult for some people to access healthcare. Recent measures, such as selective contracting of hospital services based on the National Health Map, have the potential to improve access to healthcare and equity if implemented fully.

               (14)

               Bulgaria’s minimum wage level, while still the lowest in the Union, has increased significantly since 2011. Limited progress has been achieved in setting up an objective mechanism, despite employers and trade unions agreeing on the criteria. The absence of a transparent mechanism which takes into account economic and social criteria, the labour market conditions and the institutional aspect of their application may jeopardise a proper balance between the objectives of supporting employment and competitiveness and safeguarding labour income. Despite some tensions among the social partners during the failed negotiations for minimum social security thresholds for 2017, social dialogue in the country remains in place.

               (15)

               The high share of people living at risk of poverty or social exclusion remains a major economic and social challenge. Bulgaria is still the poorest Member State in the Union, with disadvantaged groups, such as Roma, children, the elderly, and people in rural areas, being disproportionately affected. After several years of sustained improvements, the at-risk-of-poverty rate for the elderly deteriorated substantially. Elderly women are at particularly high risk of poverty or social exclusion given their typically shorter pension contribution period. While the relative poverty situation of children has improved, poverty levels among this group remain very high. The deinstitutionalisation of children is keeping its momentum with the adoption of the new action plan. However, the process is still lagging behind for adults and people with disabilities. Income inequality represents a significant and growing problem. The ratio of the income of the richest 20 % of households to that of the poorest 20 % rose from 6,1 in 2012 to 7,1 in 2015 and is among the highest in the Union. In Bulgaria, the difference between income inequality before and after taxes and social transfers is among the smallest in the Union. The social protection system, including the general minimum income scheme does not provide adequate levels of support. Coverage of people on social benefits remains low, driven by very restrictive entry requirements. The level of minimum income remains low and has not been updated since 2009 and does not have a transparent adjustment mechanism.

               (16)

               Measures to improve the public procurement system have been put in place, but their concrete added value still remains to be seen. Appropriate and efficient implementation of the new risk-based ex ante control system needs to be ensured. Enacting the recommendations made in the review of the appeal system remains a challenge since efficient remedies are key to implementing important projects. Once assessed, the administrative capacity of the Public Procurement Agency would have to be adjusted to reflect the Agency’s functions. Furthermore, the administrative capacity of the contracting authorities should be enhanced, including by drawing on methodological support provided by the Public Procurement Agency and centralised and/or ancillary purchasing activities provided by the Central Purchasing Bodies for the central administration, the municipalities and the health sector. The work to introduce e-procurement in order to boost the transparency of public procurement still needs to be finalised. Safeguarding the impartiality of public tenders and preventing possible conflicts of interest continue to be important concerns. Despite the recent reforms aimed at modernising the public administration, the effectiveness and efficiency of public institutions remain limited. A number of legal amendments were finalised in 2016 to put in place the appropriate legal framework, but enforcing and implementing them in an efficient and systematic way is challenging.

               (17)

               In 2016, Bulgaria adopted significant reforms to address continued concerns about the independence and quality of its judicial system. However, as these reforms have been adopted only recently, it is too early to assess their impact. Further steps are needed in a number of areas. Corruption also remains a major challenge in Bulgaria and continues to weigh on investment, both at national and local level. In 2015, the authorities presented an ambitious strategy to fight against corruption, but its implementation is still in its early stages. Bulgaria’s anti-corruption policy continues to be hampered by weak and fragmented institutions, a weak track record in the prosecution of high-level cases, and faltering parliamentary backing for reform. Under the Cooperation and Verification Mechanism (4), Bulgaria receives recommendations in the areas of judicial reform and the fight against corruption and organised crime. These areas are therefore not covered in the country-specific recommendations for Bulgaria.

               (18)

               In the context of the 2017 European Semester, the Commission has carried out a comprehensive analysis of Bulgaria’s economic policy and published it in the 2017 country report. It has also assessed the follow-up given to the recommendations addressed to Bulgaria in previous years.

               (19)

               In the light of this assessment, the Council is of the opinion that Bulgaria is expected to comply with the Stability and Growth Pact.

               (20)

               In the light of the Commission’s in-depth review and this assessment, the Council recommendations made under Article 6 of Regulation (EU) No 1176/2011 are reflected in recommendations (2) and (3) below,

         HEREBY RECOMMENDS that Bulgaria take action in 2017 and 2018 to:

               1.

               Further improve tax collection and tax compliance, including through a comprehensive set of measures beyond 2017. Step up enforcement of measures to reduce the extent of the informal economy, in particular undeclared work.

               2.

               Take follow-up measures on the financial sector reviews, in particular concerning reinsurance contracts, group-level oversight, hard-to-value assets and related-party exposures. Improve banking and non-banking supervision through the implementation of comprehensive action plans, in close cooperation with European bodies. Facilitate the reduction of still-high non-performing corporate loans, by drawing on a comprehensive set of tools, including by accelerating the reform of the insolvency framework and by promoting a functioning secondary market for non-performing loans.

               3.

               Improve the targeting of active labour market policies and the integration between employment and social services for disadvantaged groups. Increase the provision of quality mainstream education, in particular for Roma. Increase health insurance coverage, reduce out-of-pocket payments and address shortages of healthcare professionals. In consultation with social partners, establish a transparent mechanism for setting the minimum wage. Improve the coverage and adequacy of the minimum income.

               4.

               Ensure efficient implementation of the 2014-2020 National Public Procurement Strategy.

      Done at Brussels, 11 July 2017.

            For the Council

            The President

         T. TÕNISTE

      (1)  OJ L 209, 2.8.1997, p. 1.

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

      (3)  Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 20.12.2013, p. 320).

      (4)  Commission Decision 2006/929/EC of 13 December 2006 establishing a mechanism for cooperation and verification of progress in Bulgaria to address specific benchmarks in the areas of judicial reform and the fight against corruption and organised crime (OJ L 354, 14.12.2006, p. 58).


title: Council Recommendation of 16 June 2017 with a view to correcting the significant observed deviation from the adjustment path toward the medium-term budgetary objective in Romania

text:
               6.7.2017

               EN

               Official Journal of the European Union

               C 216/1

         COUNCIL RECOMMENDATION
   of 16 June 2017
   with a view to correcting the significant observed deviation from the adjustment path toward the medium-term budgetary objective in Romania
   (2017/C 216/01)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Article 121(4) 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 10(2), second subparagraph, thereof,
   Having regard to the recommendation of the European Commission,
   Whereas:

               (1)

               In accordance with Article 121 of the Treaty on the Functioning of the European Union, Member States are to promote sound public finances over the medium term through the coordination of economic policies and multilateral surveillance in order to avoid the occurrence of excessive government deficits.

               (2)

               The Stability and Growth Pact (SGP) is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth conducive to employment creation.

               (3)

               On 12 July 2016, the Council recommended that Romania limit the deviation from the medium-term budgetary objective in 2016 and achieve an annual fiscal adjustment of 0,5 % of GDP in 2017 unless the medium-term budgetary objective is met with a lower fiscal effort (2).

               (4)

               In 2016, based on the Commission 2017 spring forecast and the 2016 outturn data validated by Eurostat, the structural balance has deteriorated from a position of -0,6 % of GDP, namely, above the medium-term budgetary objective of -1 % of GDP, to -2,6 % of GDP, which indicates a significant deviation from the medium-term budgetary objective (namely, a deviation of 1,6 % of GDP). The growth of government expenditure, less discretionary revenue measures and one-offs, was well above the expenditure benchmark, which also indicates a significant deviation (namely a deviation of -2,0 % of GDP). The difference in the indicators is mainly due to different annual nominal potential GDP growth rates used in their computation. Irrespective of that difference, both indicators confirm a significant deviation from the requirements of the preventive arm of the SGP in 2016.

               (5)

               On 22 May 2017, following an overall assessment, the Commission considered that there is a significant observed deviation from the medium-term budgetary objective in Romania, and issued a warning to Romania in accordance with Article 121(4) of the Treaty and Article 10(2), first subparagraph, of Regulation (EC) No 1466/97.

               (6)

               According to Article 10(2), second subparagraph, of Regulation (EC) No 1466/97, within 1 month of the date of the adoption of the warning, the Council is toprovide the Member State concerned with a recommendation to take the necessary policy measures. Regulation (EC) No 1466/97 provides that the recommendation will set a deadline of no more than 5 months for the Member State to address the deviation. On that basis, a deadline of 15 October 2017 for Romania to address the deviation appears appropriate. Within that deadline, Romania should report on action taken in response to this Recommendation.

               (7)

               Romania’s structural balance in 2016 is estimated to have been 1,6 % of GDP short of its medium-term budgetary objective. Based on the output gap projections of the Commission 2017 spring forecast, Romania is experiencing normal economic times in 2017. Romania’s general government debt ratio is below the 60 % of GDP threshold. The minimum required structural effort prescribed by Regulation (EC) No 1466/97 and the adjustment matrix, which factors in the prevailing economic circumstances and possible sustainability concerns, amounts to 0,5 % of GDP. The Commission 2017 spring forecast projects a further deterioration of the structural balance by 1,3 % of GDP in 2017. Therefore, a minimum structural improvement of 0,5 % of GDP in 2017 translates into a need to adopt measures of a total yield of 1,8 % of GDP compared to the current baseline from the Commission 2017 spring forecast. Given the significant size of the required structural consolidation effort resulting from the minimum SGP-required adjustment, it is appropriate not to require any additional adjustments in addition to the minimum 0,5 % of GDP requirements.

               (8)

               The required improvement of the structural balance by 0,5 % of GDP in 2017 is consistent with the nominal growth rate of net primary government expenditure not exceeding 3,3 % in 2017 (3).

               (9)

               The Commission’s 2017 spring forecast projects a general government deficit of 3,5 % of GDP in 2017, which is above the 3 %-of-GDP Treaty reference value. The required structural adjustment also seems appropriate to ensure that Romania respects the 3 %-of-GDP general government deficit threshold in 2017.

               (10)

               It is appropriate that this Recommendation be made public.

               (11)

               In order to achieve the recommended budgetary targets, it is crucial that Romania adopt and strictly implement the necessary measures and monitors the development of current expenditure closely,

         HEREBY RECOMMENDS:
   THAT ROMANIA:

               (1)

               take the necessary measures to ensure that the nominal growth rate of net primary government expenditure does not exceed 3,3 % in 2017, corresponding to an annual structural adjustment of 0,5 % of GDP, thereby putting the country on an appropriate adjustment path toward the medium-term budgetary objective;

               (2)

               use any windfall gains for deficit reduction; budgetary consolidation measures should secure a lasting improvement in the general government structural balance in a growth-friendly manner;

               (3)

               report to the Council by 15 October 2017 on action taken in response to this Recommendation.

      This Recommendation is addressed to Romania.
      Done at Luxembourg, 16 June 2017.

            For the Council

            The President

         E. SCICLUNA

      (1)  OJ L 209, 2.8.1997, p. 1.

      (2)  Council Recommendation of 12 July 2016 on the 2016 National Reform Programme of Romania and delivering a Council opinion on the 2016 Convergence Programme of Romania (OJ C 299, 18.8.2016, p. 73).

      (3)  Net government expenditure is comprised of total government expenditure excluding interest, expenditure on Union programmes fully matched by Union funds revenue and non-discretionary changes in unemployment benefit expenditure. Nationally financed gross fixed capital formation is smoothed over a 4-year period. Discretionary revenue measures or revenue increases mandated by law are factored in. One-off measures on both the revenue and expenditure sides are netted out.


title: Commission recommendation No 263/78/ECSC of 7 February 1978 imposing a provisional anti-dumping duty on certain angles, shapes and sections, of iron or steel, not further worked than hot-rolled or extruded, originating in Japan

text:
9 . 2 . 78                             Official Journal of the European Communities                                No L 39 / 15
                               COMMISSION RECOMMENDATION No 263 / 78 / ECSC
                                                        of 7 February 1978
               imposing a provisional anti-dumping duty on certain angles, shapes and
               sections, of iron or steel , not further worked than hot-rolled or extruded, origi
                                                          nating in Japan
THE COMMISSION OF THE EUROPEAN                                       Community of the products increased globally from
COMMUNITIES,                                                         347 000 tonnes in 1974 to 240 000 tonnes during the
                                                                     first six months of 1977, imports originating in Japan
Having regard to the Treaty establishing the European                having risen from 3 671 tonnes in 1974 to about
Coal and Steel Community, and in particular Articles                  19 720 tonnes in the same period, and that, as a result,
74 and 86 thereof,                                                   they have been able to acquire in the Community a
                                                                     market share of 10-6 % in total and more than 5 %
Having regard to Commission recommendation                           for imports originating in Japan, together with those
77/329/ ECSC of 15 April 1977 on protection against                  from Spain, which are already subject to a provisional
dumping or the granting of bounties or subsidies by                  anti-dumping duty in the Community and that, on
countries which are not members of the European                      the other hand, the Community steel industry is in a
Coal and Steel Community ('), as amended by recom                   crisis situation characterized by a reduction of about
mendation No 3004/77/ ECSC (2 ), and in particular                   21 % in the deliveries of the products concerned
Articles 15 and 19 thereof,                                          between 1974 and 1977 in the Community, and by a
                                                                     reduction in the number employed from 780 000 to
Having heard the opinions expressed within the Advi                 720 000 between 1974 and 1977 and by short-time
sory Committee provided for by recommendation                        working and that, as a result, the Community steel
77/329/ ECSC,                                                        industry recorded serious losses in most of the firms
                                                                     concerned ;
Whereas the Commission has received a complaint,
submitted in the name of the relevant Community
industry, setting out evidence as to the existence of                Whereas, in order to remedy this situation, the
dumping of certain angles, shapes and sections, of                   Commission has introduced a system of guidance
iron or steel , not further worked than hot-rolled or                prices (4) for sales within the Community of certain
extruded, originating in Japan and certain other coun               steel products produced by the European steel
tries, and of material injury resulting therefrom ;                  industry ;
Whereas the Commission has published basis                           Whereas the import prices into the Community of
prices (3) based on the lowest normal prices or costs of             products originating in Japan are considerably lower
production in the supplying countries where normal                   than these guidance prices and that such undercutting
conditions of competition prevail , including the costs              prevents the European producers from achieving the
of transport, insurance and customs duties ;                         guidance prices and jeopardizes the equilibrium of the
                                                                     entire pricing system and causes or threatens to cause
Whereas the prices of imports into the Community of                  material injury to the Community industry or to a
the products which are the subject of the complaint                  major part of it ;
have been compared with these basis prices ;
Whereas a preliminary examination of the matter                      Whereas immediate action has been requested by
based on this comparison shows that these products,                  several Member States ;
originating in Japan, are offered for import within the
Community (United Kingdom and Belgian markets)
at prices lower than the basis prices and that dumping               Whereas, in the serious conditions being experienced
has taken place, the margin of which is constituted by               by the Community steel industry, the interests of the
this undercutting ;                                                  Community require immediate action ;
Whereas, with regard to injury to the industry
concerned , the evidence submitted to the Commis                    Whereas it is for the Commission , without prejudice
                                                                     to the results of the investigation opened in accor
sion shows that, on the one hand, imports into the                   dance with Article 1 1 of recommendation 77/ 329/
(') OJ No L 1 14, 5. 5. 1977, p. 6.
                                                                     ECSC, to decide promptly to apply provisional
(2) OJ No L 352, 31 . 12. 1977, p. 13 .                              measures consisting of the imposition of a provisional
(3 ) Communication from the Commission of 31 December
      1977 concerning the basis prices of certain steel products     (4) OJ No L 114, 5 . 5. 1977, p. 1 ; OJ No C 174, 22. 7.
     (OJ No L 353 , 31 . 12 . 1977, p. 1 ).                              1977 ; OJ No L 352, 31 . 12. 1977, p. 17.
 ---pagebreak--- No L 39 / 16                        Official Journal of the European Communities                              9 . 2 . 78
anti-dumping duty on imports of the products                                           Article 2
concerned, originating in Japan, the rate of which
                                                               The entry of the products described in Article 1 for
corresponds to the difference between the basis price          consumption within the Community shall be condi
published by the Commission for this product and its           tional upon the deposit of a security for the amount of
price on importation into the Community,
                                                               the provisional duty.
MAKES THE FOLLOWING RECOMMENDATION :
                                                                                Article 3
                                                               This recommendation shall be notified to the Member
                          Article 1                            States .
1 . A provisional anti-dumping duty is hereby                  It shall enter into force for each Member State on the
imposed on the following products originating in               date of its publication in the Official Journal of the
Japan :                                                        European Com nm n ities.
— certain angles, shapes and U, I or H sections, of            Without prejudice to the provisions of Article 18 of
    iron or steel , not further worked than hot-rolled or      recommendation 77/329/ ECSC, it shall apply until
    extruded,                                                  the entry into force of an Act of the Commission
— Common Custom Tariff heading No 73.11 A I a),                either adopting definitive measures or extending the
— NIMEXE code 73.11-11 , 12, 14 and 16 .                       provisional duty, and in any event for a maximum
                                                               period of three months .
2. The amount of this duty shall be equal to the
amount by which the effective price (basic price plus          Done at Brussels, 7 February 1978 .
extras) established by contract, free frontier duty-paid,
is lower than the effective price (basic price plus                                       For the Commission
extras) published by the Commission for this product.
                                                                                Wilhelm HAFERKAMP
3 . The provisions in force for the collection of
customs duty shall apply to the collection of this duty.                                      Vice-President


title: Commission recommendation of 3 June 2005 on common guidelines for the national sides of euro circulation coins (notified under document number C(2005) 1648)

text:
               18.7.2005

               EN

               Official Journal of the European Union

               L 186/1

      COMMISSION RECOMMENDATION

   of 3 June 2005
   on common guidelines for the national sides of euro circulation coins
   (notified under document number C(2005) 1648)
   (Only the Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish texts are authentic)
   (2005/491/EC)
   THE COMMISSION OF THE EUROPEAN COMMUNITIES,
   Having regard to the Treaty establishing the European Community, and in particular Article 211 thereof,
   Whereas:

               (1)

               According to Article 106(2) of the Treaty, Member States may issue coins subject to approval by the European Central Bank of the volume of the issue.

               (2)

               The Council has, in accordance with the second sentence of Article 106(2) of the Treaty, adopted harmonising measures in this field, by way of Council Regulation (EC) No 975/98 of 3 May 1998 on denominations and technical specifications of euro coins intended for circulation  (1).

               (3)

               According to Article 11 of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro  (2), coins denominated in euro and cent and complying with the denominations and technical specifications should have the status of legal tender in all ‘participating’ Member States as defined in that Regulation. Since being brought into circulation on 1 January 2002, these coins have circulated throughout the whole euro area.

               (4)

               The informal Ecofin Council of Verona agreed in April 1996 that euro coins should have a common European reverse side and a distinctive national obverse side. The common designs for the different denominations were chosen by the Heads of State or Government of the Member States at the European Council in Amsterdam in December 1997, following a competition organised by the Commission. The designs on the national sides of the euro coins are decided by each Member State.

               (5)

               The Council agreed on 8 December 2003 that the moratorium on issues of commemorative coins intended for circulation, which was established by the Ecofin Council on 23 November 1998, should be lifted. From 2004 onwards, and subject to certain limitations, Member States are allowed, in order to commemorate a specific event or personality, to issue commemorative euro circulation coins bearing a national design which is different from the normal euro circulation coin design in line with the Commission Recommendation 2003/734/EC of 29 September 2003 on a common practice for changes to the design of national obverse sides of euro circulation coins  (3). Moreover, the Council agreed that a change to the standard national side is possible if the Head of State depicted on a coin changes, while the moratorium for changes to the national sides on other grounds could be reconsidered by the end of 2008.

               (6)

               Following the enlargement of the European Union in May 2004, several of the recently acceded Member States have started to prepare themselves for the adoption of the euro. The selection of the national sides of their euro coins forms part of these preparations.

               (7)

               In view of the increasing number of different national sides, the common guidelines for the selection of the national sides of both normal circulation coins and commemorative circulation coins put forward in the present Recommendation will strengthen the overall coherence of the euro coinage system.

               (8)

               Euro coins not only circulate in the country of issue but in the whole euro area and even beyond. As a consequence, the proportion of coins in circulation not bearing the national side is increasing in each of the euro area countries. In this context, a clear indication of the issuing country should be put on the national side in order to allow interested coin users to easily identify the country of origin.

               (9)

               The common European sides of the euro coins bear both the name of the single currency and the denomination of the coin. The national side should neither repeat the name of the single currency nor the denomination of the coin. The edge lettering of the 2-euro coin can provide an indication of the denomination provided only the figure ‘2’ and/or the term ‘euro’ are used, in accordance with existing practices in most Member States.

               (10)

               As the euro coins circulate throughout the euro area their national design features are to some extent a matter of common interest. Member States should inform each other about new national sides prior to the final decision. To this effect, Member States should forward their new euro coin designs (including the edge lettering of 2-euro coin) to the Commission for further distribution. This will be managed in such a way as to avoid any undue delay.

               (11)

               The Member States have been consulted on the guidelines set out in this Recommendation, in order to take account of their different national practices and preferences in this area.

               (12)

               The Community has concluded monetary agreements with the Principality of Monaco, the Republic of San Marino and the Vatican City State, allowing them to issue certain quantities of euro circulation coins. The common guidelines should also be applicable to the circulation coins issued by those States,

         HEREBY RECOMMENDS:
   Article 1
   Identification of the issuing Member State
   The national sides of all denominations of the euro circulation coins should bear an indication of the issuing Member State by means of the Member State’s name or an abbreviation of it.
   Article 2
   Absence of the currency name and denomination

               (a)

               The national side should not repeat any indication on the denomination, or any parts thereof, of the coin neither should it repeat the name of the single currency or of its subdivision, unless such indication stems from the use of a different alphabet.

               (b)

               The edge lettering of the 2-euro coin could bear an indication of the denomination, provided that only the figure ‘2’ and/or the term ‘euro’ are used.

         Article 3
   Information procedure
   Member States should inform each other on the design of new national sides, including the edge letterings, before they formally approve these designs. To this effect, new designs should be forwarded by the issuing Member State to the Commission which will without delay inform the other Member States via the Economic and Financial Committee’s relevant subcommittee, as appropriate. All relevant information on new national coin designs will be published in the Official Journal of the European Union.
   Article 4
   Scope of the recommended practices
   This Recommendation should apply to national sides and edge letterings of both normal and commemorative euro circulation coins. It should not apply to the national sides and edge letterings of both normal and commemorative euro circulation coins which have been first issued prior to the adoption of this Recommendation.
   Article 5
   Addressees
   This Recommendation is addressed to all Member States as defined in Article 1 of Regulation (EC) No 974/98.

      Done at Brussels, 3 June 2005.

            For the Commission

         Joaquín ALMUNIA

            Member of the Commission

      (1)  OJ L 139, 11.5.1998, p. 6. Regulation as amended by Regulation (EC) No 423/1999 (OJ L 52, 27.2.1999, p. 2).

      (2)  OJ L 139, 11.5.1998, p. 1. Regulation as amended by Regulation (EC) No 2596/2000 (OJ L 300, 29.11.2000, p. 2).

      (3)  OJ L 264, 15.10.2003, p. 38.