Avis juridique important

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31987H0063

87/63/EEC: Commission Recommendation of 22 December 1986 concerning the introduction of deposit-guarantee schemes in the Community

Official Journal L 033 , 04/02/1987 P. 0016 - 0017

*****COMMISSION  RECOMMENDATION  of 22 December 1986  concerning the introduction of deposit-guarantee schemes in the Community  (87/63/EEC)  THE COMMISSION OF THE EUROPEAN COMMUNITIES,  Having regard to the Treaty establishing the European Economic Community, and in particular Article 155 thereof,  Whereas the Commission transmitted to the Council on 6 January 1986 a proposal for a Council Directive on the coordination of laws, regulations and administrative provisions relating to the reorganization and the winding-up of credit institutions (1);  Whereas Article 16 (2) of that proposal for a Directive contains a transitional provision stipulating that, pending entry into force of a deposit-guarantee scheme in each Member State, the deposit-guarantee schemes in which credit institutions take part must extend cover to deposits received by branches set up in host countries which have no guarantee scheme;  Whereas six Member States currently still have no deposit-guarantee scheme; whereas that situation is likely, when Article 16 (2) of the proposed Directive is applied, to curb the opening of branches on their territory by imposing an additional burden both on a credit institution and on the guarantee scheme in which it is taking part, in the event of a winding-up revealing insufficient assets;  Whereas a number of Member States have deposit-protection schemes which were set up on a voluntary basis under the responsibility of professional organizations, and which have proved just as suitable and effective as compulsory schemes set up and administered on a statutory basis; whereas it is therefore necessary to safeguard, in those Member States which do not yet have guarantee schemes, both private and governmental initiatives;  Whereas a recommendation, which is not binding on the Member States to which it is addressed as to the result to be achieved but solicits their cooperation on a voluntary basis, should be an effective means of enabling them to stimulate the parties concerned;  Whereas the requirement that the branches of institutions having their head office outside national territory must join the deposit-guarantee scheme of the host country, which will result from the implementation of Article 16 of the abovementioned Directive, in conjunction with this recommendation, will maintain at European level the disparities of protection which are already encountered at national level between the various schemes;  Whereas this situation may prove prejudicial to the proper functioning of the European internal market; whereas, in order to verify this, practical experience should be gained of the operation of deposit-guarantee schemes in the Community before binding rules of law are put forward in the context of a proposal for a Directive,  HEREBY RECOMMENDS:  1. That Member States which already have one or more deposit-guarantee schemes (2) should check, in the event of the winding-up of a credit institution revealing insufficient assets, that those schemes:  (a) guarantee compensation for depositors who do not possess the means of properly assessing the financial policies of the institutions to which they entrust their deposits;  (b) cover the depositors of all authorized credit institutions, including the depositors of branches of credit institutions that have their head offices in other Member States;  (c) distinguish sufficiently clearly between intervention prior to winding-up and compensation after winding-up;  (d) clearly set out the criteria for compensation and the formalities to be completed in order to receive compensation.  2. That Member States which already have plans for introducing deposit-guarantee schemes (3):  (a) should check that those plans meet the conditions set out in points 1 (a) to (d);  (b) should take all appropriate measures to ensure that those deposit-guarantee shemes are adopted by 31 December 1988.  3. That Member States which do not have a deposit-guarantee scheme covering all their institutions and which have not yet drawn up plans for such a scheme (4):  (a) should draw up, in collaboration with the authorities responsible for supervising credit institutions and the professional organizations representing the categories of institution concerned, a plan for one or more deposit-guarantee schemes meeting the conditions set out in points 1 (a) to (d);  (b) should take all appropriate measures to ensure that those schemes come into force by 1 January 1990.  4. The Member State shall inform the Commission of any changes made to their deposit-guarantee schemes and of all measures or plans for measures adopted in connection with points 1, 2 and 3.  5. This recommendation is addressed to the Member States.  Done at Brussels, 22 December 1986.  For the Commission  COCKFIELD  Vice-President  (1) OJ C 356, 31. 12. 1985, p. 55.  (2) Belgum, the Federal Republic of Germany, Spain, France, the Netherlands and the United Kingdom.  (3) Italy, Ireland and Portugal.  (4) Denmark, Greece and Luxembourg.


Important legal notice

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52006SC0022

Recommendation for a Council opinion in accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 on the updated convergence programme of Denmark, 2005-2010  /* SEC/2006/0022 final */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 11.1.2006SEC(2006) 22 finalRecommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Denmark, 2005-2010(presented by the Commission)EXPLANATORY MEMORANDUMBackgroundThe Stability and Growth Pact, which entered into force on 1 July 1998, 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. In 2005, the Pact was amended for the first time. The reform acknowledged the Pact’s usefulness in anchoring fiscal discipline but sought to strengthen its effectiveness and economic underpinnings as well as to safeguard the sustainability of the public finances in the long run.Council Regulation (EC) No 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies[1], which is part of the Pact, stipulates that Member States have to submit, to the Council and the Commission, stability or convergence programmes and annual updates thereof (Member States that have already adopted the single currency submit (updated) stability programmes and Member States that have not yet adopted it submit (updated) convergence programmes). The first convergence programme of Denmark was submitted in October 1998. In accordance with the Regulation, the Council delivered an opinion on it on 1 December 1998 on the basis of a recommendation from the Commission and after having consulted the Economic and Financial Committee. In accordance with the same procedure, updated stability and convergence programmes are assessed by the Commission and examined by the Committee mentioned above, while the Council may examine them.In these programmes, Member States need to specify their medium-term objective for the budgetary position and set out the policy measures to achieve and maintain it, including the accompanying economic assumptions. Following the reform of the Pact, the medium-term objective should be differentiated for individual Member States in the light of the economic and budgetary heterogeneity in the Union, including as regards the fiscal risk to sustainability. Other elements of the reform are that a more symmetrical approach to fiscal policy over the cycle through enhanced budgetary discipline in economic good times should be achieved, while “major structural reforms” with a verifiable impact on long-term sustainability should be taken into account for a temporary deviation from the medium-term objective or the adjustment path towards it.Taking into account the Commission services’ autumn 2005 forecast, the code of conduct[2], the commonly agreed methodology for the estimation of potential output and cyclically-adjusted balances and the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008, the Commission has examined the recently submitted update of the convergence programme of Denmark and, based on its assessment below, has adopted a recommendation for a Council opinion on it.Assessment1.  The 2005 update of the Danish convergence programme, covering the period up to 2010, was submitted to the Commission on 30 November 2005. The programme is based on the Budget Bill for 2006 adopted by Parliament on 14 December. The programme broadly follows the model structure for stability and convergence programmes specified in the new code of conduct. The programme has gaps in the compulsory and optional data prescribed by the new code of conduct (especially projected world and EU GDP growth for certain years are missing). The Danish programme does not explicitly define the medium-term objective as required by the code of conduct.2.  Over the last decade, GDP growth has averaged some 2%, while inflation has broadly followed euro area inflation. Employment growth has picked up in recent years and unemployment is close to its lowest level in the last decade. Real GDP growth rates of 2.4% are foreseen for 2005 and 2006, as domestic demand, in particular private consumption, is projected to continue to grow vigorously. For 2007-2008, GDP growth is set markedly lower, as a technical assumption, followed by growth of around 2% annually in the remainder of the programme period. The macroeconomic scenario underlying the update is broadly in line with the Commission services’ evaluation in the autumn 2005 forecast in the period until 2006 and reflects on the whole cautious assumptions. In particular for the years 2007 and 2008, the growth outlook is on the cautious side, with growth assumptions below the Commission services’ estimates of potential growth. The update expects inflationary pressures to remain relatively subdued, which appears realistic.3.  Since the inception of the ERM II mechanism on 1 January 1999, there have been no tensions affecting the exchange rate of the krone. Deviations of the exchange rate from the central parity have been much smaller than the official band width and the short-term interest rate differential to the euro area has continued to be small. This reflects the confidence in the fixed exchange rate regime. The macroeconomic policy framework continues to ensure low long-term bond yields. The yield differential between long-term government bonds in Denmark and the euro area has declined to almost zero basis points, at times it has been slightly negative.4.  On 17 February 2005, in its opinion the Council endorsed the budgetary strategy presented in the 2004 update of the convergence programme of Denmark. Regarding the 2005 budgetary implementation, the 2004 update targeted a 2.2% of GDP general government surplus for 2005 while the current update forecast a 3.6% surplus for a similar GDP growth outlook. Overall, revenues have come in better than expected, including revenues from the pension fund yield tax as well as from oil and gas exploitation, but also expenditures have developed in a contained way.5.  The medium-term budgetary strategy aims at maintaining high primary surpluses throughout the programme period so as to ensure a rapid decline in the debt ratio. The strategy is based on expenditure restraint, with the objective of keeping the annual growth of real public consumption at 0.5%, maintenance of the tax freeze and of a balance budget requirement for local governments. This update foresees the general government surplus narrowing from a peak of 3.6% of GDP in 2005 (driven by exceptional factors, including revenues from the pension fund yield tax and oil and gas-related activities) to just over 3% in both 2006 and 2007 and declining slightly thereafter to reach 2.9% of GDP at the end of the programme period. The time profile of the primary surplus is similar, with a reduction by 2 percentage points of GDP over the programme period (1 percentage point if the exceptionally high surplus of 2005 is left out of the comparison). Both expenditure and revenue ratios are on a gradually declining trend over the projection period. This reflects a fall in tax revenues (partly due to the tax freeze), expenditure restraint based on limiting real public consumption growth to 0.5% annually and a decline in the interest burden. Compared with the previous programme, the new update over-achieves the planned path of the general government balance against a broadly unchanged macroeconomic scenario. Denmark uses the transition period for the implementation of the Eurostat decision of 2 March 2004 on the classification of funded second-pillar pension schemes; the estimated impact of implementing the decision is to reduce the general government balance by around 1% of GDP annually.6.  Commission services’ calculations on the basis of the programme according to the commonly agreed methodology show that the structural surplus (i.e. the cyclically-adjusted surplus net of one-off and temporary measures) eases from its peak of 3½% of GDP in 2005 to around 2¾% of GDP in 2006 before rising to 3¼% of GDP thereafter. The decline in the structural position between 2005 and 2006, when the output gap improves from slightly negative in 2005 to marginally positive in 2006, largely reflects the exceptionally high revenues in 2005 followed by an expected normalisation of these revenues in 2006.7.  The programme targets a structural balance (taking into account the use of the transition period of the Eurostat decision mentioned above) of between 1½% and 2½% of GDP over the programme period. For the purpose of this assessment, this is taken to be the programme’s MTO.8.  As the programme’s MTO is more demanding than the minimum benchmark (estimated at a deficit of about 0.5% of GDP), its achievement should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. As regards appropriateness, the programme’s MTO lies within the range indicated for euro area and ERM II Member States in the Stability and Growth Pact and the code of conduct and is significantly more demanding than implied by the debt ratio and average potential output growth in the long term. The programme explains that the MTO is set at a more demanding level than required by the Pact to set a sound basis for long-term fiscal sustainability through a rapid debt reduction.9.  On balance, the risks to the budgetary projections in the update appear to be on the positive side, mainly as GDP growth may be higher than expected, mainly due to the technically-assumed low GDP growth in 2007 and 2008. Hence, GDP growth and the budgetary outcome in these years could be better than projected in the programme. A negative risk is the compliance with the target of limiting the growth of real public consumption, against the background of a mixed track record.10.  Taking account of the balance of risks to the budgetary targets, the budgetary strategy outlined in the programme seems sufficient to ensure that the MTO identified therein is maintained by a large margin throughout the programme period. It is also sufficient to provide a safety margin against breaching the 3% of GDP deficit reference value with normal macroeconomic fluctuations in each year. As regards the requirement for countries that have already reached their MTO to avoid pro-cyclical fiscal policies in good times, the structural balance deteriorates by 0.3 percentage point of GDP between 2005 and 2010, with a fall of 0.8 percentage point between 2005 and 2006 when the output gap turns from slightly negative to marginally positive. Taking into account the exceptional revenues recorded in 2005, the budget package for 2006 and the uncertainties attached to the calculation of the output gaps, Denmark’s fiscal policy probably cannot be characterised as pro-cyclical.11.  The reclassification of the second-pillar funded pension schemes from spring 2007 (when the transition period for implementing the March 2004 Eurostat decision on the matter expires) would not materially alter this assessment. Overall, the budgetary position is sound and the budgetary strategy provides a good example of fiscal policies run in compliance with the pact.12.  At 36% of GDP in 2005, gross debt is already well under the 60% of GDP Treaty reference level. According to the update, the debt ratio is projected to fall further over the programme horizon, to stand at 21½ % of GDP in 2010. Mainly due to larger primary balances, this is a more rapid debt reduction than foreseen in the previous update.13.  With regard to the sustainability of public finances, Denmark appears to be at low risk on grounds of the projected budgetary costs of ageing populations. The level of gross debt is currently comfortably below the 60% reference value and is projected to remain below the reference value throughout the projection period. The strategy of putting sustainability concerns at the heart of fiscal policy-making, including containing pension expenditure and involving accumulation of assets, contributes positively to the long-term outlook for public finances. The currently very favourable budgetary position contributes to limit the projected budgetary impact of ageing populations and the medium-term budgetary plans are consistent with low risks to public finance sustainability.14.  The envisaged measures in the area of public finances are broadly consistent with the broad economic policy guidelines, included in the integrated guidelines, for the period 2005-2008. In particular, Denmark respects its MTO. However, new measures have not been specified to achieve the assumed increase in employment of close to 2% of the labour force by 2010.15.  The National Reform Programme of Denmark, submitted on 26 October 2005 in the context of the renewed Lisbon strategy for growth and jobs, identifies the following challenges with significant implications for public finances: (i) improving labour supply to ensure the long-term sustainability of public finances and (ii) improving the efficiency of the public sector. The budgetary implications of the actions outlined in the National Reform Programme are reflected in the budgetary projections of the convergence programme. The measures in the area of public finances envisaged in the convergence programme are in line with the actions foreseen in the National Reform Programme.16.  Recommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Denmark, 2005-2010THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community,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[3], and in particular Article 9(3) thereof,Having regard to the recommendation of the Commission,After consulting the Economic and Financial Committee,HAS DELIVERED THIS OPINION:17.  On [24 January 2006] the Council examined the updated convergence programme of Denmark, which covers the period 2005 to 2010. The programme broadly follows the model structure for stability and convergence programmes specified in the new code of conduct. The programme has gaps in the compulsory and optional data prescribed by the new code of conduct (especially projected world and EU GDP growth for certain years are missing). The Danish programme does not explicitly define the medium-term objective (MTO) for the budgetary position as required in the code of conduct.18.  Over the last decade, GDP growth has averaged some 2%, while inflation has broadly followed euro area inflation. Employment growth has picked up in recent years and unemployment is close to its lowest level in the last decade. The macroeconomic scenario underlying the programme envisages real GDP growth of 2.4% in 2006 and 1.6% on average over the rest of the programme period. Assessed against currently available information, this scenario appears to be based cautious, in particular regarding 2007 and 2008. The programme’s projections for inflation appear realistic.19.  On 17 February 2005, in its opinion the Council endorsed the budgetary strategy presented in the 2004 update of the convergence programme of Denmark. Regarding the 2005 budgetary implementation, the 2004 update targeted a 2.2% of GDP general government surplus for 2005 while the current update forecast a 3.6% surplus for a similar GDP growth outlook. Overall, revenues have come in better than expected, including revenues from the pension fund yield tax as well as from oil and gas exploitation, but also expenditures have developed in a contained way.20.  The budgetary strategy aims at maintaining structural surpluses between 1½% and 2½% on average over the programme period, implying a marked reduction in the general government debt ratio, in order to provide a sound basis for the ageing of the population. The strategy is based on expenditure restraint, with the objective of keeping the annual growth of real public consumption at 0.5%, maintenance of the tax freeze and of a balance budget requirement for local governments. The update foresees the general government surplus to narrow from 3.6% of GDP in 2005 to 3.1% in 2006 and 3.2% in 2007, then declining slightly to reach 2.9% of GDP at the end of the programme period. The estimated general government surpluses in the present update are markedly higher than in the previous update while projected GDP growth is similar.21.  The programme targets a structural balance (taking into account the use of the transition period of the Eurostat decision mentioned above) of between 1½% and 2½% of GDP over the programme period. For the purpose of this assessment, this is taken to be the programme’s MTO. In structural terms (i.e. in cyclically-adjusted terms net of one-off and other temporary measures), the surplus falls from a peak of 3.6% of GDP in 2005 to around 2¾% of GDP in 2006 before firming to 3¼% of GDP thereafter. However, the calculated easing in 2006 by 0.8 percentage point of GDP reflects a normalisation of expected tax receipts from pension funds, which were exceptionally high in 2005.22.  As the MTO implied in the programme is more demanding than the minimum benchmark (estimated at a deficit of about 0.5% of GDP), its achievement should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. As regards appropriateness, the programme’s MTO lies within the range indicated for euro area and ERM II Member States in the Stability and Growth Pact and the code of conduct and is significantly more demanding than implied by the debt ratio and average potential output growth in the long term. The programme explains that it is set at a more demanding level than required by the Pact to set a sound basis for long-term fiscal sustainability through a rapid debt reduction.23.  On balance, the risks to the budgetary projections in the update appear to be on the positive side, in particular as GDP growth may be higher than expected, mainly due to the technically-assumed low GDP growth in 2007 and 2008. Hence, GDP growth and the budgetary outcome in these years could be better than projected in the programme. A negative risk is the compliance with the target of limiting the growth of real public consumption, against the background of a mixed track record in this regard.24.  In view of this risk assessment, the budgetary stance in the programme seems sufficient to maintain the programme’s MTO throughout the programme period. In addition, it provides a sufficient safety margin against breaching the 3% of GDP deficit threshold with normal macroeconomic fluctuations in each year. Also taking account of the exceptional size of the estimated surplus for 2005, the fiscal policy stance implied by the programme is also in line with the Stability and Growth Pact in the sense that it is not pro-cyclical in good economic times. The reclassification of second-pillar funded pension schemes from spring 2007 (when the transition period for the implementation of the Eurostat decision of 2 March 2004 on the matter expires) will reduce the Danish surpluses by around 1% of GDP in each year but would not materially alter this assessment. Overall, the budgetary position is sound and the budgetary strategy provides a good example of fiscal policies run in compliance with the pact.25.  The debt ratio is estimated to have reached 36% of GDP in 2005, well below the 60% of GDP Treaty reference value. The programme projects the debt ratio to decline by around 14 percentage points over the programme period.26.  With regard to the sustainability of public finances, Denmark appears to be at low risk on grounds of the projected budgetary costs of ageing populations. The level of gross debt is currently comfortably below the 60% reference value and is projected to remain below the reference value throughout the projection period. The strategy of putting sustainability concerns at the heart of fiscal policy making, including containing pension expenditure and involving accumulation of assets, contributes positively to the long-term outlook for public finances. The currently very favourable budgetary position contributes to limit the projected budgetary impact of an ageing population and the medium-term budgetary plans are consistent with low risks to public finance sustainability[4].27.  The envisaged measures in the area of public finances are broadly consistent with the broad economic policy guidelines, included in the integrated guidelines for the period 2005-2010. In particular, Denmark respects its MTO. However, new measures have not been specified to achieve the assumed increase in employment of close to 2% of the labour force by 2010.28.  The National Reform Programme of Denmark, submitted on 26 October 2005 within the context of the renewed Lisbon strategy for growth and jobs, puts emphasis on improving labour supply to ensure the long-term sustainability of public finances and improving the efficiency of the public sector. The budgetary implications of the actions outlined in the National Reform Programme are reflected in the budgetary projections of the convergence programme. The measures in the area of public finances envisaged in the convergence programme are in line with the actions foreseen in the National Reform Programme.Comparison of key macroeconomic and budgetary projections12004 | 2005 | 2006 | 2007 | 2008 | 2010 |Real GDP (% change) | CP Nov 2005 | 2.0 | 2.4 | 2.4 | 1.1 | 1.6 | 2.1 |COM Nov 2005 | 2.1 | 2.7 | 2.3 | 2.1 | n.a. | n.a. |CP Nov 2004 | 2.2 | 2.5 | 1.3 | 1.9 | 1.8 | 1.8 |HICP inflation (%) | CP Nov 2005 | 0.9 | 1.6 | 2.0 | 1.3 | 1.9 | 1.8 |COM Nov 2005 | 0.9 | 1.7 | 2.0 | 1.9 | n.a. | n.a. |CP Nov 2004 | 1.2 | 1.7 | 1.6 | 1.7 | n.a. | 1.6 |Output gap (% of potential GDP) | CP Nov 20052 | -0.8 | -0.3 | 0.1 | -0.7 | -0.9 | -0.6 |COM Nov 20056 | -1.3 | -0.6 | -0.4 | -0.4 | n.a. | n.a. |CP Nov 20042 | -0.6 | -0.1 | -0.5 | -0.4 | n.a. | -0.4 |General government balance (% of GDP) | CP Nov 2005 | 2.3 | 3.6 | 3.1 | 3.2 | 2.7 | 2.9 |COM Nov 2005 | 2.9 | 3.7 | 3.0 | 2.7 | n.a. | n.a. |CP Nov 2004 | 1.4 | 2.2 | 1.8 | 1.9 | 2.2 | 2.2 |Primary balance (% of GDP) | CP Nov 2005 | 4.7 | 5.6 | 4.7 | 4.1 | 3.5 | 3.7 |COM Nov 2005 | 5.3 | 5.8 | 4.9 | 4.4 | n.a. | n.a. |CP Nov 2004 | 4.5 | 4.8 | 4.5 | 4.6 | n.a. | 4.4 |Cyclically-adjusted balance (% of GDP) | CP Nov 20052 | 2.8 | 3.8 | 3.0 | 3.6 | 3.3 | 3.3 |COM Nov 2005 | 3.8 | 4.1 | 3.3 | 3.0 | n.a. | n.a. |CP Nov 20042 | 1.7 | 2.0 | 2.0 | 2.0 | n.a | 2.3 |Structural balance3 (% of GDP) | CP Nov 20054 | 2.6 | 3.6 | 2.7 | 3.3 | 3.3 | 3.3 |COM Nov 20055 | 3.6 | 3.9 | 3.0 | 2.7 | n.a. | n.a. |CP Nov 2004 | n.a. | n.a. | n.a. | n.a. | n.a. | n.a. |Government gross debt (% of GDP) | CP Nov 2005 | 42.3 | 35.6 | 31.7 | 28.9 | 26.5 | 21.5 |COM Nov 2005 | 43.2 | 36.0 | 33.0 | 31.5 | n.a. | n.a. |CP Nov 2004 | 42.3 | 39.4 | 37.4 | 35.3 | 33.1 | 28.8 |Notes: 1 The budgetary projections exclude the impact of the Eurostat decision of 2 March 2004 on the classification of funded pension schemes, which needs to be implemented by the time of the spring 2007 notification. Including this impact, the general government balance would be 1.3% of GDP in 2004, 2.7% in 2005, 2.1% in 2006, 2.2% in 2007, 1.7% in 2008 and 1.9% in 2009, while government gross debt would be 43.5% of GDP in 2004, 36.8% in 2005, 32.9% in 2006, 30.1% in 2007, 27.7% in 2008 and 22.7% in 2010. 2 Commission services calculations on the basis of the information in the programme. 3 Cyclically-adjusted balance (as in the previous rows) excluding one-off and other temporary measures. 4 One-off and other temporary measures taken from the programme (0.2% of GDP in 2004 and 2005 and 0.3% in 2006 and 2007; all deficit-reducing). 5 One-off and other temporary measures taken from the Commission services’ autumn 2005 forecast (0.2% of GDP in 2004 and 2005 and 0.3% in 2006 and 2007; all deficit-reducing). 6 Based on estimated potential growth of 1.9%, 2.1%, 2.1% and 2.1% respectively in the period 2004-2007. Source: Convergence programme (CP); Commission services’ autumn 2005 economic forecasts (COM); Commission services’ calculations. |[1] OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). All the documents referred to in this text can be found at the following website:http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm[2] Opinion of the Economic and Financial Committee on the “Specifications on the implementation of the Stability and Growth Pact and guidelines on the format and content of stability and convergence programmes”, endorsed by the ECOFIN Council of 11 October 2005.[3] OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm[4] Details on long-term sustainability are provided in the technical assessment of the programme by the Commission services, to be published at the website: http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm


title: Recommendation for a Council opinion in accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 on the updated convergence programme of Estonia, 2005-2009

text:
Important legal notice

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52006SC0109

Recommendation for a Council opinion in accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Estonia, 2005-2009  /* SEC/2006/0109 final */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 1.2.2006SEC(2006) 109 finalRecommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Estonia, 2005-2009(presented by the Commission)EXPLANATORY MEMORANDUMBackgroundThe Stability and Growth Pact, which entered into force on 1 July 1998, 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. In 2005, the Pact was amended for the first time. The reform acknowledged the Pact’s usefulness in anchoring fiscal discipline but sought to strengthen its effectiveness and economic underpinnings as well as to safeguard the sustainability of the public finances in the long run.Council Regulation (EC) No 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies[1], which is part of the Pact, stipulates that Member States have to submit, to the Council and the Commission, stability or convergence programmes and annual updates thereof (Member States that have already adopted the single currency submit (updated) stability programmes and Member States that have not yet adopted it submit (updated) convergence programmes). The first convergence programme of Estonia was submitted in May 2004. In accordance with the Regulation, the Council delivered an opinion on it on 5 July 2004 on the basis of a recommendation from the Commission and after having consulted the Economic and Financial Committee. In accordance with the same procedure, updated stability and convergence programmes are assessed by the Commission and examined by the Committee mentioned above, while the Council may examine them.In these programmes, Member States need to specify their medium-term objective for the budgetary position and set out the policy measures to achieve and maintain it, including the accompanying economic assumptions. Following the reform of the Pact, the medium-term objective should be differentiated for individual Member States in the light of the economic and budgetary heterogeneity in the Union, including as regards the fiscal risk to sustainability. Other elements of the reform are that a more symmetrical approach to fiscal policy over the cycle through enhanced budgetary discipline in economic good times should be achieved, while “major structural reforms” with a verifiable impact on long-term sustainability should be taken into account for a temporary deviation from the medium-term objective or the adjustment path towards it.Taking into account the Commission services’ autumn 2005 forecast, the code of conduct[2], the commonly agreed methodology for the estimation of potential output and cyclically-adjusted balances and the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008, the Commission has examined the recently submitted update of the convergence programme of Estonia and, based on its assessment below, has adopted a recommendation for a Council opinion on it.Assessment1.  The latest update of the Estonian convergence programme, covering the period 2005-2009, was submitted on 1 December 2005[3]. The updated programme broadly follows the model structure and data provision requirements for stability and convergence programmes specified in the new code of conduct[4].2.  After reaping early benefits from bold reform and stabilisation efforts by the mid-1990s, Estonia in the wake of the 1998 Russian crisis suffered a temporary setback with a slack in growth in 1999. Owing to the comprehensive structural reforms in the financial and enterprise sector which had increased the economy’s responsiveness to market forces and its international openness, growth quickly resumed as from 2000. Over the past decade, real annual GDP growth has averaged about 6%, by far outpacing the EU average of 1.7%. A high external deficit, at 10.5% of GDP in 2004, constitutes the major macroeconomic imbalance.3.  Real GDP growth in the update is estimated at 6.5% for 2005, edging up to 6.6% in 2006 and levelling off at 6.3% over the rest of the programme period 2007-2009. Overall, the macroeconomic scenario underlying the update seems markedly cautious, as compared with the Commission services’ evaluation including the autumn 2005 forecast. Based on Commission services’ calculations on the basis of the programme according to the commonly agreed methodology, potential GDP growth is projected to remain relatively high but on a slightly declining trend in the medium term. Consequently, the cautious outlook for real GDP growth leads to a negative output gap throughout the programme period, whereas the Commission services’ autumn 2005 forecast shows a positive output gap for 2005 and 2006 with only a small amount of free capacity in the economy in 2007. Employment growth is expected to remain strong in the coming years. Inflation is projected to decrease from 3.5% in 2005 to 2.6% in 2006 and 2007, and to remain moderate at 2.7% in 2008 and 2009. Since the actual HICP increase turned out at 4.1% for 2005, reflecting accession-related base effects as well as high energy prices, the projection appears relatively optimistic for 2006, whereas for 2007 it is in line with the Commission forecast. The external deficit is estimated to have narrowed to 9% of GDP in 2005, down from 13.4% in 2003. While the unwinding of this major imbalance in the Estonian economy has benefited from government finances regularly in surplus, it would, according to the programme, receive little further support in that regard in the years to come. Estonia has maintained full exchange rate stability within ERM II throughout 2005 in the context of its currency board, which it operates as a unilateral commitment within the mechanism. Money market and bank lending rates have remained low and stable through 2005, reflecting the credibility of Estonia’s monetary framework.4.  In its opinion of 17 February 2005, the Council endorsed the budgetary strategy presented in the previous update of the convergence programme, covering the period 2004-2008. As regards budgetary implementation in 2005, the general government surplus for 2005 is estimated at 1.1% of GDP in the Commission services’ autumn 2005 forecast, against a target of a balanced budget set in the previous update of the convergence programme. Due to a combination of high growth and improvements in tax collection, the actual surplus for 2005 turned out much stronger, at around 2½% of GDP.5.  The budgetary framework in Estonia is geared towards maintaining sound public finances in the context of sustainable high growth and rising employment. To this end it includes a balanced-budget requirement for general government and nominal ceilings for central government expenditure. The programme aims at general government accounts in balance from 2007, following surpluses of 0.3% and 0.1% of GDP in 2005 and 2006, respectively. The general government surplus targets for 2005 and 2006 are slightly higher than in the previous update, but reflect only partly the better-than-expected outcome in 2005. Both expenditure and revenue ratios are projected to decline gradually up to the programme horizon. Compared with the previous programme, the December 2005 update broadly confirms the planned fiscal strategy of annually balanced budgets, against a considerably more favourable macroeconomic scenario.6.  Based on Commission services’ calculations on the basis of the programme according to the commonly agreed methodology, the structural balance (surplus) is projected to gradually decline in the next four years from around 0.5% of GDP in 2005 to balance in 2009. The update sets a medium-term objective (MTO) for the budgetary position as meant in the Stability and Growth Pact of a balanced budget in structural terms, i.e. cyclically-adjusted and net of one-off and other temporary measures, As the programme’s MTO is more ambitious than the minimum benchmark (estimated at a deficit of around 2% of GDP) its achievement should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. As regards appropriateness, the programme’s MTO lies within the range indicated for euro area and ERM II Member States in the Stability and Growth Pact and the code of conduct and is more demanding than implied by the debt ratio and average potential output growth in the long term.7.  Budgetary outcomes may prove significantly better than projected in the programme, even beyond 2005. The underlying economic outlook for 2006-2009 is markedly cautious. Moreover, Estonia’s confirmed record of out-performing fiscal targets warrants the perception of the balance of risks being somewhat skewed to the positive side.8.  In view of this risk assessment, the budgetary stance in the programme seems sufficient to meet the programme’s MTO throughout the programme period. As the MTO is more demanding than the minimum benchmark, its achievement should fulfil the aim of providing a safety margin against breaching the 3% of GDP deficit ceiling with normal macro-economic fluctuations for the entire period. However, taking into account the likelihood of a better-than-projected outturn in 2005, targeting a budgetary surplus no higher than 0.1% of GDP in 2006 may carry the risk of pro-cyclicality in good times.9.  Estonia’s gross debt ratio is the lowest in the EU, and well below the Treaty reference value. According to the update and in line with the Commission services’ forecast for 2005-2007, the debt ratio is set to decrease further, over the entire programme period, to a ratio of just 2.8% of GDP at the end of 2009.10.  With regard to the sustainability of public finances, Estonia appears to be at low risk on grounds of the projected budgetary costs of ageing populations. The level of gross debt is currently very low and is projected to remain below the 60% reference value throughout the projection period. Estonia’s strategy of putting sustainability concerns at the heart of fiscal policy making, including the pension system reform which involves the accumulation of assets, contributes positively to the outlook for the public finances. The current budgetary position in surplus contributes towards limiting the projected budgetary impact of an ageing population and the medium-term budgetary plan of maintaining balanced budgets is consistent with low risks to public finance sustainability.11.  The envisaged measures in the area of public finances are broadly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008. In particular, large government surpluses in 2005 have indeed contributed to a significant narrowing of the external account deficit to below 10% of GDP. A prudent fiscal policy is defined as a cornerstone of the Estonian policy mix over the programme period, notably with a view to supporting a further decline in the external deficit to sustainable levels. The update also presents measures to promote a growth- and employment-oriented allocation of resources, in particular by reducing the size of the public sector in the economy and by shifting the tax burden from direct to indirect taxation.12.  The National Reform Programme of Estonia, submitted on 15 October 2005, identifies the following challenges with significant implications for public finances: (i) sustainability of public finances; (ii) fiscal policy supportive to growth and jobs and (iii) ensuring a stable macroeconomic environment. The budgetary implications of the actions outlined in the National Reform Programme are fully reflected in the budgetary projections of the convergence programme. The measures in the area of public finances envisaged in the convergence programme are in line with the actions foreseen in the National Reform Programme. In particular, the convergence programme outlines measures to complete the 2002 pension reform, to increase consumption and environment taxes while reducing taxes on labour, and to systematically shift budget resources towards investment, promotion of R&D and vocational training. The convergence programme complements these measures with changes in the institutional arrangements for public finances, namely by completing an IT-based budgeting system connecting all line ministries to the scrutiny of the Ministry of Finance, by further formalising the strategic planning process and by preparing new legislation to improve the financial management at local government level.Overall, the budgetary position is sound and the budgetary strategy provides a good example of fiscal policy conducted in compliance with the Pact. Nevertheless, in view of the above assessment and of a budgetary outturn in 2005 probably significantly better than estimated in the programme, it would be appropriate for Estonia to aim for a higher budgetary surplus in 2006 and in the subsequent years in order to continue supporting the correction of the external imbalance. Recommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Estonia, 2005-2009THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community,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[5], and in particular Article 9(3) thereof,Having regard to the recommendation of the Commission,After consulting the Economic and Financial Committee,HAS DELIVERED THIS OPINION:13.  After reaping early benefits from bold reform and stabilisation efforts by the mid-1990s, Estonia in the wake of the 1998 Russian crisis suffered a temporary setback with a slack in growth in 1999. Owing to the comprehensive structural reforms in the financial and enterprise sector which had increased the economy’s responsiveness to market forces and its international openness, growth quickly resumed as from 2000. Over the past decade, real annual GDP growth has averaged about 6%, by far outpacing the EU average of 1.7%. A high external deficit, at 10.5% of GDP in 2004, constitutes the major macroeconomic imbalance. Budgetary developments were marked by an overall prudent fiscal stance resulting in healthy fiscal surpluses.14.  In its opinion of 17 February 2005, the Council endorsed the budgetary strategy presented in the previous update of the convergence programme, covering the period 2004-2008. As regards budgetary implementation in 2005, the general government surplus for 2005 is estimated at 1.1% of GDP in the Commission services’ autumn 2005 forecast, against a target of a balanced budget set in the previous update of the convergence programme. Due to a combination of high growth and improvements in tax collection, the actual surplus for 2005 turned out much stronger, at around 2 ½% of GDP.15.  On [14 February 2006] the Council examined the updated convergence programme of Estonia, which covers the period 2005 to 2009. The updated programme broadly follows the model structure and data provision requirements for stability and convergence programmes specified in the new code of conduct[6].16.  The macroeconomic scenario underlying the programme envisages that real GDP growth will edge up from 6.5% in 2005 to 6.6% in 2006 and level off at 6.3% on average over the rest of the programme period. Assessed against currently available information, this scenario appears to be based on markedly cautious growth assumptions. Based on Commission services’ calculations on the basis of the programme according to the commonly agreed methodology, potential GDP growth is projected to remain relatively high but on a slightly declining trend in the medium term. Consequently, the cautious outlook for real GDP growth leads to a negative output gap throughout the programme period, whereas the Commission services’ autumn 2005 forecast shows a positive output gap for 2005 and 2006. The programme’s short-term projections for inflation also appear to be on the low side.17.  The medium-term budgetary framework in Estonia is geared towards maintaining sound public finances in the context of sustainable high growth and rising employment. The programme aims at the general government accounts to remain in balance from 2007, following surpluses of 0.3% and 0.1% of GDP in 2005 and 2006, respectively. The primary balance is only insignificantly higher because of a negligible interest burden. The projected general government surplus targets for 2005 and 2006 are slightly higher than in the previous update, but reflect only partly the better-than-expected outcome in 2005 at a surplus around 2½% of GDP, mainly owing to buoyant economic growth and improvements in tax collection. Both expenditure and revenue ratios are projected to decline gradually up to the programme horizon. Compared with the previous programme update, the December 2005 update broadly confirms the planned fiscal strategy of annually balanced budgets, against a considerably more favourable macroeconomic scenario.18.  Over the programme period, the structural surplus (i.e. the cyclically-adjusted balance net of one-off and other temporary measures) calculated according to the commonly agreed methodology is planned to decline on average by 0.1% of GDP per year. The programme sets the medium-term objective (MTO) for the budgetary position at a balanced budget in structural terms and plans to maintain a structural balance that satisfies the programme’s MTO throughout the programme period. As the programme’s MTO is more demanding than the minimum benchmark (estimated at a deficit of around 2% of GDP) its achievement should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. As regards appropriateness, the programme’s MTO lies within the range indicated for euro area and ERM II Member States in the Stability and Growth Pact and the code of conduct and is more demanding than implied by the debt ratio and average potential output growth in the long term.19.  Budgetary outcomes may prove significantly better than projected in the programme, even beyond 2005. The underlying economic outlook for 2006-2009 is markedly cautious. Moreover, Estonia’s confirmed record of out-performing fiscal targets warrants the perception of the balance of risks being somewhat skewed to the positive side.20.  In view of this risk assessment, the budgetary strategy seems sufficient to achieve a budgetary position in structural terms that can be considered as appropriate under the Pact throughout the programme period. In addition, the budgetary stance in the programme provides a sufficient safety margin against breaching the 3% of GDP deficit threshold with normal macroeconomic fluctuations throughout the programme period. However, taking into account the likelihood of a better-than-projected outturn in 2005, targeting a budgetary surplus no higher than 0.1% of GDP in 2006 may carry the risk of pro-cyclicality in “good times”.21.  The debt ratio is estimated at 4.6% of GDP at the end of 2005, well below the 60% of GDP Treaty reference value and, indeed, the lowest in the EU. The programme projects the debt ratio to decline by 1.8 percentage points over the programme period.22.  With regard to the sustainability of public finances, Estonia appears to be at low risk on grounds of the projected budgetary costs of ageing populations. The level of gross debt is currently very low and is projected to remain below the 60% reference value throughout the projection period. Estonia’s strategy of putting sustainability concerns at the heart of fiscal policy making, including the pension system reform which involves the accumulation of assets, contributes positively to the outlook for the public finances. The current budgetary position in surplus contributes towards limiting the projected budgetary impact of an ageing population and the medium-term budgetary plan of maintaining balanced budgets is consistent with low risks to public finance sustainability.23.  The envisaged measures in the area of public finances are broadly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008. In particular, large government surpluses in 2005 have indeed contributed to a significant narrowing of the external account deficit to below 10% of GDP. A prudent fiscal policy is defined as a cornerstone of the Estonian policy mix over the programme period, notably with a view to supporting a further decline in the external deficit to sustainable levels. The update also presents measures to promote a growth- and employment-oriented allocation of resources, in particular by reducing the size of the public sector in the economy and by shifting the tax burden from direct to indirect taxation.24.  The National Reform Programme of Estonia, submitted on 15 October 2005 in the context of the renewed Lisbon strategy for growth and jobs, identifies the following challenges with significant implications for public finances: (i) sustainability of public finances; (ii) fiscal policy supportive to growth and jobs and (iii) ensuring a stable macroeconomic environment. The budgetary implications of the actions outlined in the National Reform Programme are fully reflected in the budgetary projections of the convergence programme. The measures in the area of public finances envisaged in the convergence programme are in line with the actions foreseen in the National Reform Programme. In particular, the convergence programme outlines measures to complete the 2002 pension reform, to increase consumption and environment taxes while reducing taxes on labour, and to systematically shift budget resources towards investment, promotion of R&D and vocational training. The convergence programme complements these measures with changes in the institutional arrangements for public finances, namely by completing an IT-based budgeting system connecting all line ministries to the scrutiny of the Ministry of Finance, by further formalising the strategic planning process and by new legislation improving the financial management at local government level.In view of the above assessment, the Council notes that overall, the budgetary position is sound and the budgetary strategy provides a good example of fiscal policy conducted in compliance with the Pact. Nevertheless, the Council notes that in view of a budgetary outturn in 2005 probably significantly better than estimated in the programme, it would be appropriate for Estonia to aim for a higher for the budgetary surplus in 2006 and in the subsequent years in order to continue supporting the correction of the external imbalance.Comparison of key macroeconomic and budgetary projections2004 | 2005 | 2006 | 2007 | 2008 | 2009 |Real GDP (% change) | CP Dec 2005 | 7.8 | 6.5 | 6.6 | 6.3 | 6.3 | 6.3 |COM Nov 2005 | 7.8 | 8.4 | 7.2 | 7.4 | n.a. | n.a. |CP Nov 2004 | 5.6 | 5.9 | 6.0 | 6.0 | 6.0 | n.a. |HICP inflation (%) | CP Dec 2005 | 3.0 | 3.5 | 2.6 | 2.6 | 2.7 | 2.7 |COM Nov 2005 | 3.0 | 4.1 | 3.3 | 2.6 | n.a. | n.a. |CP Dec 20041 | 3.3 | 3.2 | 2.5 | 2.8 | 2.8 | n.a. |Output gap (% of potential GDP) | CP Dec 20052 | 0.1 | -0.4 | -0.6 | -0.7 | -0.5 | -0.1 |COM Nov 20053 | -0.2 | 0.5 | 0.1 | -0.1 | n.a. | n.a. |CP Dec 20042 | -0.9 | -1.3 | -1.7 | -1.2 | -1.0 | n.a. |General government balance (% of GDP) | CP Dec 2005 | 1.7 | 0.3 | 0.1 | 0.0 | 0.0 | 0.0 |COM Nov 2005 | 1.7 | 1.1 | 0.6 | 0.4 | n.a. | n.a. |CP Dec 2004 | 1.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |Primary balance (% of GDP) | CP Dec 2005 | 1.9 | 0.5 | 0.3 | 0.2 | 0.1 | 0.1 |COM Nov 2005 | 1.9 | 1.3 | 0.8 | 0.5 | n.a. | n.a. |CP Dec 2004 | 1.3 | 0.2 | 0.2 | 0.2 | 0.1 | n.a. |Cyclically-adjusted balance = Structural balance4 (% of GDP) | CP Dec 2005 | 1.7 | 0.4 | 0.3 | 0.2 | 0.1 | 0.0 |COM Nov 2005 | 1.8 | 1.0 | 0.6 | 0.4 | n.a. | n.a. |CP Dec 2004 | n.a | n.a. | n.a. | n.a. | n.a. | n.a. |Government gross debt (% of GDP) | CP Dec 2005 | 5.4 | 4.6 | 4.4 | 3.3 | 3.0 | 2.8 |COM Nov 2005 | 5.5 | 5.1 | 4.0 | 3.1 | n.a. | n.a. |CP Dec 2004 | 4.8 | 4.6 | 4.3 | 3.1 | 2.9 | n.a. |Notes: 1 The December 2004 update of the convergence programme discusses national CPI definition, not HICP. Discrepancies are negligible. 2 Commission services calculations on the basis of the information in the programme. 3 Based on estimated potential growth of 7.2%, 7.1%, 6.7% and 6.5% respectively in the period 2004-2007. 4 Since there are no one-off and other temporary measures specified in the programme, the cyclically-adjusted balance and the structural balance are identical. Source: Convergence programme (CP); Commission services’ autumn 2005 economic forecasts (COM); Commission services’ calculations. | [1] OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). All the documents referred to in this text can be found at the following website:http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm[2] Opinion of the Economic and Financial Committee on the “Specifications on the implementation of the Stability and Growth Pact and guidelines on the format and content of stability and convergence programmes”, endorsed by the ECOFIN Council of 11 October 2005.[3] The English translation of the programme was submitted on 2 January 2006.[4] The programme provides most compulsory and optional data prescribed by the new code of conduct.[5] OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm[6] The programme provides most compulsory and optional data prescribed by the new code of conduct.


Avis juridique important

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32000H0164

2000/164/EC: Council Recommendation of 14 February 2000 on the implementation of Member States' employment policies

Official Journal L 052 , 25/02/2000 P. 0032 - 0040

COUNCIL RECOMMENDATIONof 14 February 2000on the implementation of Member States' employment policies(2000/164/EC)THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 128(4) thereof, stating that the Council may make recommendations to Member States in light of the examination of the implementation of Member States' employment policies,Having regard to the 1998 and 1999 guidelines adopted by the Council resolutions of 15 December 1997 and 22 February 1999 respectively,Having regard to the 15 implementation reports for 1999 received from the Member States, comprising the implementation of the 1998 national employment action plans and describing the adjustments made to the national employment action plans to take account of the changes introduced by the 1999 guidelines,Having regard to the 1999 Joint Employment Report, prepared jointly with the Commission, describing the employment situation in the Community and examining the action taken by the Member States in implementing their employment policy in line with the guidelines,Having regard to the recommendation on the Broad Economic Policy Guidelines adopted by the Council on 12 July 1999 and to the commitments included in the resolution of the European Council of 17 June 1997 on the Stability and Growth Pact,Having regard to the recommendation submitted by the Commission on 8 September 1999,Whereas:(1) The Cologne European Council on 3 and 4 June 1999 stated in its conclusions that higher employment continues to be the top objective for the European Union.(2) The Employment and Labour Market Committee and the Economic Policy Committee jointly submitted on 28 October 1999 an opinion on this recommendation.(3) The Council considers it appropriate, in the light of the examination of the implementation of the Member States' employment policies, to make recommendations pursuant to Article 128(4) of the Treaty; such recommendations should be used sparingly, should concentrate on priority issues and should be based on sound and accurate analysis.(4) In complementing action undertaken by the Member States with a view to securing a high level of employment, the competences of the Member States should be respected.(5) The Council acknowledges the significant efforts already undertaken by Member States with a view to implementing the Employment Guidelines; in the assessment of the impact of these policies, the multiannual perspective of the Employment Guidelines should be taken into account.(6) To tackle youth unemployment, which is a long-standing problem in most European Union countries, all young people should have the opportunity to gain an entry into the world of work before completing six months of unemployment.(7) To prevent adult long-term unemployment, which affects roughly half of the unemployed in the European Union, all the adult unemployed should be offered a new start before completing 12 months of unemployment.(8) It is important to reduce disincentives to employment embodied in the tax or benefit systems in order to ensure a higher participation by women and older workers.(9) Framework conditions need to be developed to tap the potential for employment growth in the services sector.(10) Sustained job creation calls for more employment-friendly taxation systems in which the currently high burden on labour is shifted to alternative sources of fiscal revenue, such as energy and the environment.(11) The establishment of partnerships at all appropriate levels is key for the modernisation of the organisation of work and the promotion of the adaptability of undertakings and their employees.(12) Gender gaps in the labour market, particularly affecting employment, unemployment and pay, as well as gender segregation across sectors and occupations, require comprehensive mainstreaming strategies and measures to reconcile work and family life better.(13) Common indicators and comparable employment statistics, as well as qualitative analyses, are crucial for monitoring the implementation and the outcome of the guidelines and for identifying good practices at European level,HEREBY ADOPTS the recommendations addressed to the individual Member States, as set out in the Annex.Done at Brussels, 14 February 2000.For the CouncilThe PresidentJ. GAMAANNEXI. BELGIUMDespite an improvement of the economic climate, the employment situation in Belgium recovered only modestly in 1998. The labour market is characterised by long-standing challenges:- high inflows into long-term unemployment leading to increasing stocks of long-term unemployed people, which represented 5,7 % of the labour force in 1998; these may be related, inter alia, to benefit duration, eligibility conditions and enforcement,- poor participation of older persons in employment, particularly those over 55, whose employment rate (22 %) is now the lowest in the Union,- a large gender gap in employment, similar to the EU average of 20 percentage points,- potential for job creation in services, which despite having a high share in overall employment, employs only 40 % of the working age population, that is 10 percentage points below the average of the three best performing Member States.Belgium should:1. strengthen preventive policies, by taking early action based on individual needs, to stem the flow into long-term unemployment. In particular, Belgium should comply fully with guidelines 1 and 2 and provide young and adult unemployed with effective employability measures before the 6- and 12-month thresholds, respectively;2. examine in more detail disincentives within the tax and benefit system which may discourage labour market participation, particularly of women and older workers. Belgium should, in particular reassess existing policies facilitating early retirement of workers, and consider the policy choices most appropriate to avoid the early withdrawal of workers from the labour market and to promote employment of older persons;3. adopt and implement coherent strategies, encompassing regulatory, fiscal and labour market measures, to exploit more fully the job creation potential of the services sector;4. reinforce the cooperation between the different authorities implementing the national employment action plan.II. DENMARKThe performance of the Danish labour market has improved significantly in recent years. Denmark enjoys currently the highest employment rate in the Union and one of the lowest unemployment rates. The key challenges for Denmark are:- to promote the upgrading of skills and qualifications of the labour force as a means to help overcoming emerging bottlenecks in the labour market,- to expand the current labour force, by encouraging employees to stay longer in working life and reducing the number of persons of working age on social benefits,- to reach a more balanced participation of women and men across sectors and occupations.Denmark should:1. pursue reforms of the tax and benefit system so as to reduce the overall fiscal pressure on labour, in particular the tax burden on low incomes, and to increase incentives to take up or remain in jobs. The reform of early retirement and leave schemes should be completed and closely monitored in the light of the need to increase labour supply;2. promote training and job opportunities for unemployed women, and examine, in the context of a gender mainstreaming approach, ways to reduce the current levels of occupational and sectoral segregation in the labour market.III. GERMANYAs the economy recovered in 1998, the protracted fall of employment levels has come to a halt and unemployment has fallen somewhat against the background of the continuing consequences of German unification. The key challenges facing Germany's labour market include:- negative employment growth throughout most of the 1990s (-1,2 % per year in 1991 to 1998 and -0,7 % in 1994 to 1998), and large regional differences in unemployment rates, affecting in particular the new Länder,- persistently high long-term unemployment, representing 5 % of the labour force,- a considerable potential for job creation in services, which employ only 38,5 % of the total working age population (50 % in the best performing Member States),- the low share of people between 50 and 64 still in employment (about 47,5 %), which points to an additional unused employment potential.Germany should:1. strengthen preventive policies, by taking early action based on individual needs to prevent people from becoming long-term unemployed. Germany should increase the level of ambition of the present targets, to bring down the inflow into long-term unemployment to the levels reached by the best performing Member States (less than 10 % after 12 months);2. adopt and implement a coherent strategy to exploit the employment potential of the services sector, encompassing regulatory, fiscal and other measures to reduce the burden for setting up new undertakings;3. examine in more detail disincentives within the tax and benefit system which may discourage labour-market participation of all groups, especially of older workers. Germany should in particular reassess existing policies facilitating early retirement and consider the policy choices most appropriate to avoid the early withdrawal of workers from the labour market and to promote employment of older workers;4. pursue and monitor efforts to bring down gradually the fiscal pressure on labour, by reducing taxes and social security contributions. In particular, labour costs should be reduced further at the lowest end of the wage scale, while respecting the need for fiscal consolidation;5. take appropriate measures to improve and adapt its statistical system so as to provide data compatible with the common policy indicators by 2000. Germany should consider introducing a quarterly Labour Force Survey in the light of Council Regulation (EC) No 577/98.IV. GREECEIn 1998, which was a year of high economic performance, employment increased significantly by 3 %, while unemployment increased by 1 %. This recent worsening of the unemployment situation illustrates serious structural deficiencies of the labour market which include the following:- a low employment rate, owing to a very low participation of women in employment (41,3 %, 10 percentage points below the EU average), while employment in services remains low, despite recent improvements,- youth unemployment is particularly high: nearly 12 % of the young population compared with an EU average of 9,3 %,- long-term unemployment is also high and women have a long-term unemployment rate three times as high as men,- despite continuous labour-productivity growth, labour productivity levels are still low and further improvements of skill levels of the labour force and up-take of new technologies and modernisation of work organisation are needed.Greece should:1. take decisive, coherent and measurable action to prevent young and adult unemployed people from drifting into long-term unemployment. In particular, strengthened efforts should be made to complete the reform of employment services, to implement preventive policies in compliance with guidelines 1 and 2;2. examine in more detail disincentives within the tax and benefit system which may discourage labour market participation, in particular of women, so as to increase progressively the female employment rate towards the EU average of 50 %, and reinforce gender mainstreaming by building on progress already made in respect of entrepreneurship;3. pursue efforts to improve further the quality of education and vocational training, and to strengthen support for continuous training, in particular by involving social partners more actively;4. adopt and implement coherent strategies, encompassing regulatory, fiscal and other measures, designed to reduce the administrative burden for setting up new undertakings, in order to stimulate entrepreneurship and exploit the job creation potential of the service sector;5. encourage a partnership approach and promote concrete commitments by the social partners at all appropriate levels on the modernisation of work organisation, with the aim of making undertakings more productive and competitive while achieving the required balance between flexibility and security;6. take appropriate measures to upgrade the statistical monitoring system so that policy indicators on prevention and activation will be provided by 2000, with the agreed definitions and methods.V. SPAINSpain has seen vigorous employment growth since 1996 at a rate three times above the Union average followed by a steady improvement of the unemployment situation and structural changes. However, serious challenges remain which include:- the lowest employment rate (50,2 %) in the Union, including below-average employment in services (30 %),- an unemployment rate which at 18,8 % is still very high, although Spain has achieved a strongly declining trend,- the highest long-term unemployment rate in the Union, which will not decline until the high inflows into long-term unemployment are significantly reduced. Currently, 21,5 % of young unemployed people and 15,5 % of adult unemployed people reach the six month- and twelve month-thresholds respectively,- the gender gaps in terms of employment and unemployment are the widest in the Union: the female unemployment rate is 26,6 %, more than twice the EU average, and only 35 % of the female working age population is in employment (against 51 % in the Union as a whole),- a high proportion of workers on fixed-term contracts, mostly of short duration, representing almost one third of the total number of contracts.Spain should:1. pursue the preventive policies initiated in 1998, moving beyond the identification of the unemployed persons' needs by increasing the number and the efficiency of the individualised activation measures so as to reduce significantly the inflow of young people and adults into long-term unemployment;2. adopt and implement coherent strategies, encompassing regulatory, fiscal and other measures, designed to reduce the administrative burden on companies, in order to stimulate entrepreneurship and exploit the potential for more stable employment in the service sector;3. intensify efforts to mainstream equal opportunities in employment policy beyond the preparatory measures already announced in order to raise the female employment rate towards the average EU level;4. pursue efforts to upgrade the statistical monitoring system, so that policy indicators on prevention and activation will be provided by 2000 in accordance with agreed definitions and methods. This is particularly important in the current framework of decentralisation of active labour market policies.VI. FRANCEFollowing the resumption of economic growth in 1997, the employment situation recovered in 1998. However, major structural problems remain to be tackled:- lower than average employment rate (60,8 %), due to the low participation rate of workers above 55 years of age (29 %), which is well below the EU average (40,3 %),- very slow growth of employment for most of the 1990s (0,1 % in 1991 to 1998),- a high unemployment rate, nearly two percentage points above the EU average, and high long-term unemployment,- high levels of youth unemployment linked to difficulties in the process of transition from school to work, particularly for those with lower qualifications,- high non-wage labour costs in excess of the EU average,- potential for job creation in services, which, despite having a high share in overall employment, employs only some 40 % of the working age population, that is 10 percentage points below the average of the three best performing Member States.France should:1. review existing benefit schemes, particularly those facilitating early retirement, in order to keep older workers longer in active life;2. adopt and implement coherent strategies, encompassing regulatory, fiscal and other measures, designed to reduce the administrative burden on companies, in order to exploit the job creation potential of the service sector, inter alia, building on recent efforts to create new job opportunities for young people;3. pursue and evaluate policy measures designed to reduce the fiscal pressure on labour, particularly those addressing unskilled and low-paid workers;4. strengthen social partnership with a view to developing a comprehensive approach to modernising work organisation.VII. IRELANDThe economy has enjoyed a protracted period of strong economic growth and job creation in the 1990s. The labour market is undergoing deep structural change and the nature of the problems is gradually shifting from high unemployment and long-term unemployment (both among young people and adults) to new challenges such as:- tightening labour market conditions, which will act as a constraint on future economic growth,- a substantial gender gap in employment, which offers scope for an increase in the participation of women in the labour market,- low levels of participation of workers in education and training (around 5 %),- maximising job-potential in services, where, despite the success of recent policy initiatives to create favourable conditions for job creation, the employment rate lags behind the EU average.Ireland should:1. adopt a comprehensive strategy to increase the participation of women in the labour market, including the removal of tax-benefit disincentives, and putting in place measures which facilitate the reconciliation of work and family life. In particular, a sustained effort to raise the standards of care for children and other dependants and flexible leave schemes is called for;2. pursue recently implemented policies, encompassing regulatory, educational and fiscal measures, in order to further exploit the potential for job growth in the service sector;3. intensify policy efforts to expand and improve in-house training of employees.VIII. ITALYThe labour market showed a slight recovery in 1998. Employment grew moderately by 0,6 % in a context of subdued economic growth and a sharp decline of real unit labour costs. However, this improvement was not sufficient to redress the long-standing structural problems of the labour market which include:- slow employment growth and a low employment rate of 50,8 %, (almost 10 percentage points below the EU average), linked to low average employment rate in services (31,7 %),- high average unemployment, which remains two points above the EU average; in addition, high and rising youth unemployment (12,9 % of youth population) and long-term unemployment (8,4 % of the labour force),- wide gender gaps in employment - close to 30 percentage points, compared with 20 percentage points for the Union as a whole; also, unemployment affects women to a much larger extent than men (16,7 % and 9,4 % respectively),- regional differentials of unemployment between North and South remain significant (in the South, unemployment reaches 22,8 %, 10 points above the national average),- higher than average tax burden on labour, with the implicit tax rate on labour income standing at 50 % (against an EU average of 43 %).Italy should:1. take decisive, coherent and measurable action to prevent young and adult unemployed people from drifting into long-term unemployment. In particular, strengthened efforts should be made to complete the reform of employment services, to implement preventive policies in compliance with guidelines 1 and 2, and to improve the quality of vocational training. Efforts to upgrade the statistical monitoring system should be pursued, so that policy indicators on prevention and activation will be provided by 2000 in accordance with agreed definitions and methods;2. adopt and implement coherent strategies, encompassing regulatory, fiscal and other measures, designed to alleviate the administrative burden on companies, to stimulate entrepreneurship and exploit the job creation potential of the service sector;3. continue current reform efforts designed to shift away the tax burden from labour to other tax bases;4. continue the implementation of the reform of pension and other benefit systems in order to reduce the outflow from the labour market into pensions and other schemes;5. adopt comprehensive policies in order to address the wide gender gaps in employment and unemployment, inter alia, by building on existing specific initiatives. Gender policies should also be mainstreamed under all the pillars of the National Employment Action Plan.IX. LUXEMBOURGThe employment situation is generally favourable and is underpinned by strong economic growth accompanied by a constant rise in employment. However, very low employment rates of some segments of the population coexist with huge inflows of cross-border workers. Key issues of the labour market are:- very low employment rate of workers over 50 (only 38 %) which is principally the result of policies facilitating early withdrawal from the labour market such as invalidity pensions and early retirement schemes,- very low employment rate of women (45 %), resulting in a gender gap close to 29 percentage points, one of the highest in the Union,- a growth in employment of which 75 % is accounted for by cross-border workers,- low participation in continuous education and training.Luxembourg should:1. examine in more detail the tax-benefit system with a view to removing disincentives which may discourage the participation in employment, in particular of older workers;2. pursue efforts towards a comprehensive strategy to increase the participation of women in the labour market, including the examination of tax-benefit disincentives, and measures facilitating the reconciliation of work and family life.X. THE NETHERLANDSThe economy has enjoyed a protracted period of strong economic growth and job creation, so reducing unemployment steadily. Although the performance of the Dutch labour market is among the most favourable in the Union, key challenges in the labour market remain:- low participation of people over 55 in employment (only 31 %, against an EU average of 40,6 %); the rate is even lower for women (19,8 % against an EU average of 26,1 %),- despite a recent decline, the tax burden on labour remains considerable,- high ratio of dependent to active people (35 %). Disability benefits have increased recently and the number of people receiving unemployment benefit is high (9 % of the labour force),- emerging labour supply bottlenecks, with some 1360 00 unfilled vacancies at the end of 1998,- high gender gap in employment, despite recent growth of the participation of women in employment. Women's employment rate remains some 24 percentage points below the employment rate for men (80,0 %), which represents a gender gap of 1 million jobs.The Netherlands should:1. continue efforts to improve the tax-benefit system with a view to removing disincentives which may discourage participation in employment, in particular of women and older workers. Resolute efforts are needed to reduce the high number of persons who remain outside the labour market supported by passive income support schemes;2. pursue efforts to upgrade the statistical monitoring system, so that policy indicators on prevention and activation will be provided by 2000 in accordance with agreed definitions and methods.XI. AUSTRIAThe employment situation remains generally favourable despite a slight increase of unemployment in 1998. The economy presents one of the highest employment rates and one of the lowest unemployment rates in the Union. Key challenges in the labour market are:- slow employment growth throughout most of the 1990s (0,4 % in 1991 to 1998 and -0,03 % in 1994 to 1998),- low participation of older workers in employment (43 % in the age bracket of 50 to 64),- significant gender gap in employment (21 percentage points) despite the fact that the employment rate of women is higher than the EU average,- higher-than-average tax burden on labour, with the implicit tax rate on labour income standing at 46 %.Austria should:1. review early retirement incentives and develop flexible working time schemes, so as to keep older people longer in working life;2. pursue a comprehensive strategy to narrow the gender gap in employment, inter alia, by putting in place measures which facilitate the reconciliation of work and family life;3. continue efforts to reduce the high tax burden on labour, in particular by focusing on problem groups in the labour market.XII. PORTUGALThe employment situation has improved continuously over recent years as a result of strong economic activity. However, good employment performance indicators hide structural weaknesses which make the labour market vulnerable. Key challenges in the labour market are:- low levels of participation of workers in education and training and low level of formal education attainment among the adult work force,- significant potential for creating jobs in services, which employs only 38 % of the population in working age,- low average labour productivity levels, suggesting insufficient skill levels of the labour force and slow up-take of new technologies, as well as scope for modernisation of work organisation.Portugal should:1. pursue efforts to improve the quality of the education system, and to strengthen support for continuous training, in particular by involving social partners more actively;2. adopt and implement coherent strategies, encompassing regulatory, fiscal and other measures, in order to reduce the administrative burden on companies, to stimulate entrepreneurship and to exploit the job creation potential of the service sector;3. encourage a partnership approach and promote concrete commitments by the social partners at all appropriate levels on the modernisation of work organisation, with the aim of making undertakings more productive and competitive while achieving the required balance between flexibility and security.XIII. FINLANDThe economy has achieved strong economic and employment growth over the recent years, which has led to a significant reduction of its unemployment rate. Key problems of the labour market are:- low employment among men and women over 50 (55,2 % and 50,6 %, respectively), which are considerably lower than the equivalent rates among prime-age workers (76 % and 71 %, respectively),- persistence of a stock of difficult-to-place unemployed, especially among older people (7 % of the work force),- high youth unemployment (more than 11 %, two percentage points higher than the EU average),- while the employment rate for women is high, particularly in the prime-age group, the occupational and sectoral segregation is significant,- higher-than-average tax burden on labour, with the implicit tax rate on labour income standing at 55 % (against an EU average of 43 %).Finland should:1. pursue the review of existing benefit schemes, particularly those facilitating early retirement, in order to keep older workers longer in active life;2. pursue recent policy orientations to reduce the tax burden on labour;3. examine, in the context of a gender mainstreaming approach, ways of reducing the current levels of occupational and sectoral segregation in the labour market.XIV. SWEDENThe overall recovery of the economy has led to a marked improvement of the labour market in 1998. Despite the high employment rate, key challenges in the labour market are:- slow employment growth throughout most of the 1990s (-1,7 % in 1991 to 1998 and 0,3 % in 1994 to 1998),- unemployment is still high at 8,2 %, even if slightly below the EU average,- high occupational segregation by gender,- the highest tax burden on labour income in the Union, with the implicit tax rate standing at 58 % (compared with the EU average of 43 %).Sweden should:1. take measures to reduce the high tax burden on labour income, in particular for those with a low take-home pay from work;2. examine, in the context of a gender mainstreaming approach, ways to reduce the current levels of occupational and sectoral segregation in the labour market.XV. UNITED KINGDOMThe labour market presents a relatively favourable performance recently compared with the EU average. However, structural challenges to be tackled still remain:- despite a favourable labour-market situation, the inflows into long-term unemployment of both young and adult unemployed (respectively at 18 % and 12 %) still exceed those of the best performing Member States in the EU,- persistent pockets of very long-term unemployment and/or inactivity among older people, ethnic minorities, lone parents and deprived communities,- the gender gap is above the EU average, in terms of full-time equivalents (some 33 percentage points), reflecting the important role of part-time work among women.The United Kingdom should:1. focus on the issue of gender pay gap and develop appropriate policies to address this, building, inter alia, on the positive effects to be expected from the introduction of the minimum wage in 1998;2. encourage a partnership approach in order to enable the social partners at all appropriate levels to reach agreements on the modernisation of work organisation, with the aim of making undertakings more productive and competitive while achieving the required balance between flexibility and security;3. upgrade the statistical monitoring system, so that policy indicators on prevention and activation will be provided by 2000 in accordance with agreed definitions and methods;4. pursue efforts to expand and improve the quality of child-care provisions, in order to enable women particularly to participate more in part-time as well as full-time work, according to their preferences.


Avis juridique important

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32001H0337

Commission Recommendation of 18 April 2001 concerning a coordinated programme for the official control of foodstuffs for 2001 (Text with EEA relevance) (notified under document number C(2001) 1076)

Official Journal L 120 , 28/04/2001 P. 0041 - 0044

Commission Recommendationof 18 April 2001concerning a coordinated programme for the official control of foodstuffs for 2001(notified under document number C(2001) 1076)(Text with EEA relevance)(2001/337/EC)THE COMMISSION OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European Community,Having regard to Council Directive 89/397/EEC of 14 June 1989 on the official control of foodstuffs(1), and in particular Article 14(3) thereof,After consultation of the Standing Committee for Foodstuffs,Whereas:(1) It is necessary, with a view to the sound operation of the internal market, to arrange for coordinated food inspection programmes at Community level.(2) Such programmes place emphasis on compliance with Community legislation, the protection of public health, consumer interests and fair trade practices.(3) Article 3 of Council Directive 93/99/EEC of 29 October 1993 on the subject of additional measures concerning the official control of foodstuffs(2) requires the laboratories referred to in Article 7 of Directive 89/397/EEC to comply with the criteria in European Standard EN 45000 series. Only such laboratories may be considered as laboratories suitable to carry out analyses within the coordinated programme of official controls.(4) The results from simultaneous implementation of national programmes and coordinated programmes may provide information and experience on which to base future control activities,HEREBY RECOMMENDS:1. During 2001 Member States should carry out inspections and controls including, where indicated, taking samples and analysing such samples in laboratories, with the aim of:- monitoring compliance with the Community labelling rules concerning the quantitative ingredients declaration (QUID),- assessing the bacteriological quality of smoked fish products.2. Although sampling and/or inspection rates have not been set in this Recommendation, Member States should ensure that they are sufficient to provide an overview of the subject under consideration in each Member State.3. Member States should provide information as requested following the format of the record sheets provided in the Annex to this Recommendation to help enhance the comparability of results.4. Foodstuffs submitted for analysis under this programme should be submitted to laboratories complying with the provisions of Article 3 of Directive 93/99/EEC.5. Quantitative ingredients declaration (QUID)5.1. Scope of the programmeA statement of the quantity of an ingredient or category of ingredients used in the manufacture or preparation of foodstuff provides the consumer with better information and helps to ensure fair trade. According to Article 7 of European Parliament and Council Directive 2000/13/EC of 20 March 2000 on the approximation of the laws of the Member States relating to the labelling, presentation and advertising of foodstuffs(3), a declaration of quantity is compulsory if:- the ingredient or category of ingredients concerned appears in the name under which the foodstuff is sold or is usually associated with that name by the consumer, or- the ingredient or category of ingredients concerned is emphasised on the labelling in words, picture or graphics, or- the ingredient or category of ingredients concerned is essential to characterise a foodstuff and to distinguish it from products with which it might be confused because of its name or appearance.Products not labelled in accordance with the requirements of the abovementioned Directive should not be traded. However, products labelled before 14 February 2000 are permitted until the stocks are depleted. The aim of this element of the programme is to check the compliance of foodstuffs with the new provisions for quantitative ingredient declaration.5.2. MethodThe examinations should concern, in particular, milk products (i.e. yoghurt, cheese, etc.), fruits juices, and dry biscuits. The competent authorities of the Member States should carry out inspections on premises of manufacturers or importers of foodstuffs in order to check compliance with the provisions for quantitative ingredients declaration. Samples could be taken in addition to the inspections in order to determine the quantity of an ingredient or category of ingredients.The results of the control should be recorded on the record sheet in Annex I.6. Bacteriological quality of smoked fish6.1. Scope of the programmeThere is no Community legislation fixing specific microbiological standards for smoked fish. Experience shows that a considerable percentage of these products may be contaminated by pathogenic micro-organisms, including Listeria monocytogenes, and that the adoption of new techniques of production and processing may increase the risk of bacteriological contamination.Listeria monocytogenes is known to cause foodborne outbreaks of listeriosis in humans, with potentially fatal consequences for susceptible categories of the population and therefore actions shall be taken to reduce the risk of human listeriosis from food consumption, in particular ready-to-eat food, such as smoked fish.Certain measures may be adopted relating to the management of risk at the level of food business operators. Implementation of good hygiene practices and principles used to develop the HACCP (hazard analysis and critical control points) system are important tools in ensuring food safety.The aim of this element of the programme is to assess the level of contamination on smoked fish, specifically on smoked salmon, in particular as concerns Listeria monocytogenes and indicator organisms for faecal contamination. The programme should allow the assessment of the bacteriological quality of these products and possible risks for human health.6.2. MethodThe examinations should concern refrigerated and pre-packaged salmon and other hot or cold smoked fish. The competent authorities of the Member States should take samples of products at retail level, possibly close to the date of minimum durability. In those countries with important volumes of production, the taking of samples also at the site of production (raw material and/or finished products) is recommended. These samplings should be in the form of samples, from the same lot, comprising, when possible, five units of one hundred grams minimum each and the product should be kept in its original packaging. Products should be refrigerated as soon as samples have been taken and they should be sent immediately, in this state, to the laboratory.The level of sampling is left to the judgement of the competent authorities of the Member States. In this regard, volume and characteristics of production, trade and consumption patterns are important factors to be taken into account.Laboratories are allowed to use methods of their choice provided their level of performance matches the aims to be achieved. However, for detection and enumeration of Listeria monocytogenes, the most recent version of standard EN/ISO 11290-1 and EN/ISO 11290-2 is recommended. Additional equivalent methods recognised by competent authorities may also be used.The results of the following controls should be recorded on the record sheet in Annex II. In the case of sampling at the site of production a separate record sheet should be used.Done at Brussels, 18 April 2001.For the CommissionDavid ByrneMember of the Commission(1) OJ L 186, 30.6.1989, p. 23.(2) OJ L 290, 24.11.1993, p. 14.(3) OJ L 109, 6.5.2000, p. 29.ANNEX I>PIC FILE= "L_2001120EN.004302.EPS">ANNEX II>PIC FILE= "L_2001120EN.004402.EPS">