Avis juridique important

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31982K2975

Commission Recommendation No 2975/82/ECSC of 8 November 1982 imposing a definitive anti-dumping duty on certain sheets and plates, of iron or steel, originating in Brazil

Official Journal L 312 , 09/11/1982 P. 0010 - 0013 Spanish special edition: Chapter 11 Volume 28 P. 0094  Portuguese special edition Chapter 11 Volume 28 P. 0097

*****COMMISSION  RECOMMENDATION No 2975/82/ECSC  of 8 November 1982  imposing a definitive anti-dumping duty on certain sheets and plates, of iron or steel, originating in Brazil  THE COMMISSION OF THE EUROPEAN  COMMUNITIES,  Having regard to the Treaty establishing the European Coal and Steel Community,  Having regard to Commission recommendation No 3018/79/ECSC of 21 December 1979 on protection against dumped or subsidized imports from countries not members of the European Coal and Steel Community (1), as amended by recommendation No 1995/82/ECSC (2), and in particular Article 12 thereof,  After consultations within the Advisory Committee set up by the said recommendation,  Whereas in March 1982 the Commission received a complaint, lodged by the Walzstahl-Vereinigung, Duesseldorf, on behalf of almost all Community producers of sheets and plates, of iron or steel, hot-rolled or cold-rolled, of a thickness of less than 3 mm; whereas the complaint contained evidence of dumping in respect of like products originating in Brazil, and of material injury resulting therefrom, particularly in the Federal Republic of Germany;  Whereas the information supplied provided sufficient evidence to justify initiating a proceeding; whereas the Commission accordingly announced, by a notice published in the Official Journal of the European Communities (3), the initiation of a proceeding concerning imports of certain sheets and plates, of iron or steel, originating in Brazil, and commenced an investigation of the matter at Community level;  Whereas, for its preliminary determination of dumping, the Commission compared the prices of imports into the Community of cold-rolled coils and sheets originating in Brazil with the basic prices published for these products by the Commission; whereas, in addition, on the basis of the evidence made available to it during this preliminary investigation the Commission reached the conclusion that these dumped imports were causing or threatening to cause injury to a Community industry; whereas the Commission, therefore, by recommendation No 1104/82/ECSC (4), imposed a provisional anti-dumping duty on imports of sheets and plates, of iron or steel, not further worked than cold-rolled, of a thickness of less than 3 mm, originating in Brazil;  Whereas this duty was equal to the amount by which the prices on import of the products concerned were lower than the basic prices published by the Commission; whereas, subsequently, the Commission found that while all the products concerned originating in Brazil were shipped directly to the Community a significant proportion of them was sold to the Community via trading companies, situated in non-member countries, related to the Community importers concerned; whereas, in order to avoid evasion of the provisional measures in force, the Commission considered it appropriate to supplement the variable duty by a specific duty and amended the abovementioned recommendation by recommendation No 2086/82/ECSC (5); whereas at the same time it extended the duration of the provisional duty for a period not exceeding two months;  Whereas, in the course of the subsequent examination, the Commission requested from Community producers, exporters, importers and agents known to be concerned all the information it deemed necessary in order to arrive at a final determination of the dumping margin and injury; whereas the Commission carried out inspections at the premises of all three Brazilian exporters: Cosipa, São Paulo, CSN, Rio de Janeiro and Usiminas, Belo Horizonte; whereas the Commission also carried out on-the-spot investigations at the offices of Thyssen AG, Duisburg, Estel Huettenwerke Dortmund AG, Dortmund and Krupp Stahl AG, Bochum, as well as at the premises of the following importers: Thyssen Stahl Union, Duesseldorf, SEM GmbH & Co. KG, Hamburg, Coutinho, Caro & Co. KG aA, Duesseldorf and Steelpartners GmbH & Co. KG, Duesseldorf;  Whereas the Commission selected 1 June 1981 to 31 May 1982 as the investigation period for the examination of dumping;  Whereas, in order to determine definitively the existence of dumping, the Commission compared the Brazilian export prices with the normal values for sales of prime-quality material during the investigation period;  Whereas, in respect of cold-rolled coils and sheets, for which the Commission has published basic prices, based on the lowest normal prices or costs of production in the supplying countries where normal conditions of competition prevail, including the costs of transport, insurance and customs duties, the Commission determined normal value on the basis of the lowest such effective price (basic + extra) applicable to imports of products of like quality in the first five months of 1982;  Whereas export prices were based on the prices paid or payable for products sold for export to the Community during the investigation period, adjusted to the cif-Community-frontier level, duty paid, taking into account the drawback of import charges on coal imported by CSN;  Whereas this comparison showed weighted average dumping margins of 22;41 % for Cosipa, 32;43 % for CSN and 27;37 % for Usiminas; whereas it was appropriate to calculate one overall margin for all three exporting companies since they are all members of the Government-owned Siderbras group; whereas this weighted average margin based on exports made by the three companies concerned was found to be 26;3 % and equivalent to 82;77 ECU per tonne;  Whereas, in respect of hot-rolled sheets corresponding to DIN 17100, for which no basic prices are published, the Commission established normal value on the basis of domestic selling prices in Brazil; whereas, in order to verify the appropriateness of the published basic prices in the case of imports of cold-rolled coils and sheets from Brazil, the Commission also established normal values on the basis of domestic prices with regard to these products; whereas the domestic selling prices were based on quarterly lists of ex-factory prices which are identical for all three exporting companies, taking account, where applicable, of extras for quality and dimensions, special surface and tolerance requirements, sheared edges and off-standard dimensions in case of lots of less than 200 tonnes; whereas for the purpose of fair comparison between normal values and export prices the Commission adjusted normal values of all three exporting companies for the cost of finance for 60 days credit to their domestic customers, using the discount rate of the Banco do Brasil and for 0;75 % PIS tax included in the domestic price; whereas the Commission also made an adjustment, where appropriate, for quantity discounts given on the home market and variable distribution costs where claims in this area could be satisfactorily demonstrated; whereas claims for an additional adjustment for domestic selling expenses up to the amount of commissions paid on export sale were rejected, since no distinction could be made between selling expenses directly related to the home market sales and general overheads;  Whereas export prices were based on the prices paid or payable for products sold for export to the Community during the investigation period; whereas the Commission, when establishing the ex-factory export prices, made adjustments, where appropriate, for internal and ocean transport costs, handling and port charges, commissions paid to agents, packaging costs, costs for credit granted to the overseas customer and 0;75 % PIS tax included in the invoiced price; whereas, in addition, the Commission took into account the drawback of import charges on coal imported by CSN;  Whereas export prices and normal values were compared on a transaction by transaction basis at the ex-factory level, taking into account the exact dimensions and quality of the products exported and using the average exchange rate for the month when the export shipment was made;  Whereas, in respect of hot-rolled sheets corresponding to SAE 1008, for which no basic prices are published either, the normal value was established on the basis of constructed value since the cost information supplied by the exporting company concerned showed that production costs were above domestic list prices for this product; whereas constructed value was calculated by taking the company's cost for materials and manufacture, an appropriate proportion of the overheads shown in the company's accounts and adding a 5 % profit margin which was considered reasonable and was not disputed by the company; whereas for the purpose of a fair comparison with the export price this constructed value was adjusted for 60 days credit costs incurred on the domestic market; whereas, since information on production costs was made available only for October and November 1981, the Commission could not accept the argument that prices did permit recovery of all costs within a reasonable period of time in the normal course of trade;  Whereas the weighted average margins thus established in respect of cold-rolled coils and sheets are 42;65 % for Cosipa, 36;73 % for CSN and 38;86 % for Usiminas, the overall margin being 40 %; whereas, since the comparison of export prices with domestic selling prices showed margins which are higher than the dumping margin obtained when the normal value is determined on the basis of the published basic prices, the Commission concluded that in the present case the use of these basic prices as provided for by Article 2 (6) (b) of recommendation No 3018/79/ECSC is appropriate;  Whereas in respect of hot-rolled sheets, which during the period of investigation were exported only by Cosipa, weighted average dumping margin is 64;8 %;  Whereas, with regard to injury caused to the Community industry, the Commission distinguished between cold-rolled coils and sheets and hot-rolled sheets;  Whereas, in respect of cold-rolled coils and sheets, the Commission found that the imports originating in Brazil increased dramatically from 1 813 tonnes in 1981 to 100 748 tonnes in the first five months of 1982, 70 700 tonnes of which were shipped to the Federal Republic of Germany; whereas these imports were not sold to the car industry; whereas the Commission had to take into consideration that the supply of the car industry is ensured by long-term contracts between Community manufacturers and the car industry which take account of the special requirements of this sector and which are, therefore, subject to developments different from those of the general market for cold-rolled coils and sheets; whereas, since most of the imports from Brazil were offered for sale on the general market of the Federal Republic of Germany, which accounts for a major proportion of the total Community production of the products under consideration, the Commission concentrated its investigation on the impact of imports from Brazil on the general market in this Member State; whereas, using the information available, it found that during the first five months of 1982 the share of these imports on the general market in Germany had risen from 0 to 8 %;  Whereas the prices of these imports were very low; whereas the Commission found that a number of importers sold these imports within the Community at prices significantly below Community producers' list prices in force at the time of delivery;  Whereas the Commission has also examined the impact of the imports from Brazil on the Community industry; whereas the Commission found that this impact took the form of a serious loss of sales; whereas the information verified by the Commission shows that during the first quarter of 1982 the average quantity of monthly sales made by German producers on the general market in Germany was 19 % lower than the comparable quantity sold during the first quarter of 1981; whereas sales in April 1982 were 44 % below the monthly average of the second quarter of 1981; whereas, in addition, the monthly average of imports of cold-rolled sheets and coils from other Member States into Germany in 1981 was more than 17 000 tonnes higher than in the first five months of 1982;  Whereas the Commission also took into account the fact that the Community steel industry is in a state of crisis; whereas between 1974 and 1980 production of the products concerned fell by more than 21 %, while the numbers employed fell by 244 700 or 30;8 % between 1974 and 1981; whereas the situation of the Community producers continues to be one of extremely low capacity utilization levels and seriously reduced profits or of losses;  Whereas, in order to remedy this situation, the Community's steel policy seeks to ensure sufficient price levels for the products concerned sold in the Community through the use of internal and external measures; whereas the internal measures consist of production quotas for ECSC companies and the obligation to respect certain price levels; whereas, in order to keep imports within reasonable limits, the Community has concluded steel arrangements with a large number of supplying countries which involve quantitative limitations on exports to the Community and the observance of arrangement prices which are closely linked to the development of internal price levels in the Community;  Whereas production quotas for Community producers are adjusted periodically on the basis of a forecast of supply and demand for the products concerned, taking into account the development of imports from third countries including those whose exports are not covered by a bilateral arrangement with the Community; whereas any sharp increase of imports from these countries, such as Brazil, requires a downward adjustment of the quotas of Community producers and thereby increases their indirect costs and further reduces their margins;  Whereas imports of significant quantities of dumped products into the Community also puts into question the objectives sought by the external measures adopted within the framework of the Community steel policy; whereas third countries which have concluded steel trade arrangements with the Community will only respect and renew these arrangements if they see a reasonable chance of selling the quantities provided for at the price levels agreed; whereas significant imports of dumped products from sources not covered by an arrangement jeopardize the equilibrium not only of the internal quantity and pricing system but also of the quantities and prices agreed with most of the supplying countries;  Whereas the Commission has considered whether injury has been caused by other factors which individually or in combination could adversely affect the Community industry, such as volume and prices of other imports or reduction in demand; whereas, while in fact the level of consumption in the Community has declined, the volume of imports from other sources has fallen at a much greater rate, from 1 440 000 tonnes in 1977 to 740 204 tonnes in 1981; whereas during the same period the volume of these imports into the Federal Republic of Germany has fallen from 660 000 tonnes to 281 751 tonnes and has remained relatively stable between 1981 and the first five months of 1982; whereas from January to May 1982 almost all of these imports originated in arrangement countries, whose exports have to respect strict minimum price levels; whereas the impact of the dumped imports from Brazil, which accounted for over 85 % of imports from non-arrangement countries, has been isolated from other factors;  Whereas the facts as finally established show that, taking into account the already extremely difficult situation of the Community industry and the restructuring efforts being undertaken at present, material injury has been caused by dumped imports from Brazil and that further injury would have been caused if provisional action had not been taken;  Whereas in the serious conditions experienced by the Community steel industry the interests of the Community call for the imposition of a definitive anti-dumping duty and the definitive collection of the amount secured by way of provisional duty; whereas the Commission has also explored the possibility of a constructive remedy as stipulated by Article 13 of the Anti-Dumping Code; whereas it has, however, concluded, after hearing the opinions of Member States, that it would be inappropriate at this time to seek such a solution of the issue given that these exports were made at price levels below the published basic prices which the Brazilian Government had undertaken to observe; whereas, having regard to the extent of the injury caused, it is appropriate that the amount of the definitive duty should be equal to the weighted average dumping margin of 82;77 ECU per tonne;  Whereas, with regard to hot-rolled sheets of a thickness of less than 3 mm, the Commission found that during the investigation period Brazilian exports were 4 572 tonnes; whereas, in addition, the Commission received insufficient information from the Community industry to evaluate the impact of these exports; whereas in view of the small quantities exported the Commission has concluded that it is not necessary at this time to take protective measures in respect of imports of hot-rolled sheets,  MAKES THE FOLLOWING RECOMMENDATION:  Article 1  1. A definitive anti-dumping duty is hereby imposed on sheets and plates, of iron or steel, not further worked than cold-rolled, of a thickness of less than 3 mm, falling within subheadings 73.13 B II b) and c) of the Common Customs Tariff and corresponding to NIMEXE codes 73.13-43, 45, 47 and 49, originating in Brazil.  2. The amount of the duty shall be 82;77 ECU per 1 000 kilograms net.  3. This duty shall, however, be reduced to the extent that the importer establishes to the satisfaction of the competent national authorities that the quality of these products is inferior to the lowest quality described in the last publication of basic prices by the Commission.  4. The provisions in force concerning customs duties shall apply for the application of this duty.  Article 2  The amounts secured by way of provisional anti-dumping duty pursuant to recommendation No 1104/82/ECSC, as amended by recommendation No 2086/82/ECSC, shall be definitively collected to the extent that they did not exceed of 82;77 ECU per 1 000 kilograms net.  Article 3  The anti-dumping proceeding concerning sheets and plates, of iron or steel, not further worked than hot-rolled, of a thickness of less than 3 mm, is hereby terminated.  Article 4  This recommendation shall enter into force on the day following its publication in the Official Journal of the European Communities.  Done at Brussels, 8 November 1982.  For the Commission  Étienne DAVIGNON  Vice-President  (1) OJ No L 339, 31. 12. 1979, p. 15.  (2) OJ No L 215, 23. 7. 1982, p. 28.  (3) OJ No C 70, 19. 3. 1982, p. 3.  (4) OJ No L 128, 11. 5. 1982, p. 9.  (5) OJ No L 221, 30. 7. 1982, p. 17.


title: COUNCIL RECOMMENDATION of 16 March 1992 concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (1984) (Sixth EDF) for the financial year 1990 (92/173/EEC) #

text:
Avis juridique important

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31992H0173

COUNCIL RECOMMENDATION of 16 March 1992 concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (1984) (Sixth EDF) for the financial year 1990 (92/173/EEC)  -

Official Journal L 075 , 21/03/1992 P. 0055 - 0055

COUNCIL RECOMMENDATION  of 16 March 1992  concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (1984) (Sixth EDF) for the financial year 1990  (92/173/EEC)THE COUNCIL OF THE EUROPEAN COMMUNITIES,  Having regard to the Treaty establishing the European Economic Community, and in particular Article 206b thereof,  Having regard to the Third ACP-EEC Convention, signed at Lomé on 8 December 1984,  Having regard to Council Decision 86/283/EEC of 30 June 1986 on the association of the overseas countries and territories with the European Economic Community (1),  Having regard to the Internal Agreement on the financing and administration of Community aid (2), signed in Brussels on 19 February 1985, as amended by Decision 86/281/EEC (3), and in particular Article 29 (3) thereof,  Having regard to the Financial Regulation of 11 November 1986 applicable to the Sixth European Development Fund (4), and in particular Articles 66 to 73 thereof,  Having examined the revenue and expenditure account and the balance sheet relating to the operations of the European Development Fund (1984) (Sixth EDF) as at 31 December 1989 and the Court of Auditors' report relating to the financial year 1990  together with the Commission's replies (5),  Whereas, pursuant to Article 29 (3) of the Internal Agreement, the discharge for the management of the European Development Fund (1984) (Sixth EDF) must be given to the Commission by the European Parliament on a recommendation from the Council;  Whereas the overall implementation by the Commission of the operations of the European Development Fund (1984) (Sixth EDF) during the financial year 1990 has been satisfactory,  HEREBY RECOMMENDS that the European Parliament give the Commission a discharge in respect of the implementation of the operations of the European Development Fund (1984) (Sixth EDF) for the financial year 1990.Done at Brussels, 16 March 1992.For the  Council  The President  Jorge BRAGA DE MACEDO   (1) OJ No L 175, 1. 7. 1986, p. 1.(2) OJ No L 86, 31. 3. 1986, p. 210.(3) OJ No L 178, 2. 7. 1986, p. 13.(4) OJ No L 325, 20. 11. 1986, p. 42.(5) OJ No C 324, 13. 12. 1991, pp. 194 to 209 and 305 to 316.


Important legal notice

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E2002C0912(01)

Recommendation of the EFTA Surveillance Authority of 5 March 2002 on a coordinated programme for the official control of foodstuffs for 2002

Official Journal C 216 , 12/09/2002 P. 0004 - 0008

Recommendation of the EFTA Surveillance Authorityof 5 March 2002on a coordinated programme for the official control of foodstuffs for 2002(2002/C 216/05)THE EFTA SURVEILLANCE AUTHORITY,HAVING REGARD to the Agreement on the European Economic Area (EEA), in particular Article 109 and Protocol 1 thereof,HAVING REGARD to the Agreement between the EFTA States on the establishment of a Surveillance Authority and a Court of Justice, in particular Article 5(2)(b) and Protocol 1 thereof,HAVING REGARD to the Act referred to in point 50 of Chapter XII of Annex II to the EEA Agreement (Council Directive 89/397/EEC of 14 June 1989 on the official control of foodstuffs)(1), in particular Article 14(3) thereof,AFTER CONSULTING the EFTA Foodstuffs Committee assisting the EFTA Surveillance Authority,WHEREAS:(1) It is necessary, with a view to the sound operation of the European Economic Area, to arrange for coordinated food inspection programmes within the EEA designed to improve the official controls by the EEA States.(2) Such programmes place emphasis on compliance with the foodstuffs legislation in force under the EEA Agreement, the protection of public health, consumer interests and fair trade practices.(3) Article 3 of the Act referred to in point 54n of Chapter XII of Annex II to the EEA Agreement (Council Directive 93/99/EC 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 the European standard EN 45000 series, now replaced by EN ISO 17025:2000.(4) The results from simultaneous implementation of national programmes and coordinated programmes can provide information and experience on which to base future control activities.(5) The European Commission, in its Recommendation concerning a coordinated programme for the official control of foodstuffs for 2002, has recommended that Member States apply a corresponding control programme. However, the Community control programme also includes monitoring of compliance with Community rules on labelling of certain foodstuffs that can contain ingredients, which may contain, consist of, or be produced from genetically modified organisms (GMOs). This part of the Community programme is not included in the Recommendation to the EFTA States since the relevant labelling rules have not yet been incorporated into the EEA Agreement,HEREBY RECOMMENDS THE EFTA STATES TO:1. During 2002, carry out inspections and controls including, where indicated, taking samples and analysing such samples in laboratories, with the aim of:- assessing the bacteriological safety of pre-cut fresh fruits and vegetables and of sprouted seeds,- assessing the bacteriological safety of fruit and vegetable juices.2. Although sampling and/or inspection rates have not been set in this recommendation, ensure that they are sufficient to provide an overview of the subject under consideration.3. Provide information as requested following the format of the record sheets provided in the Annexes to this Recommendation to help enhance the comparability of results. This information should be sent to the EFTA Surveillance Authority by 1 May 2003 accompanied by an explanatory report.4. Foodstuffs submitted for analysis under this programme should be submitted to laboratories complying with the provisions of Article 3 of Directive 93/99/EC.SCOPE AND METHODSA. Bacteriological safety of pre-cut fresh fruits and vegetables and of sprouted seeds1. Scope of the programmeThere is no EEA legislation fixing specific microbiological criteria for fresh fruits and vegetables. Experience shows that there is potential for a wide range of these products to become contaminated with micro-organisms, including human pathogens. Most of the reported outbreaks have been associated with bacterial contamination, particularly members of (Enterobacteriaceae Salmonella spp., Escherichia coli O157:H7).Certain factors contribute to the microbiological contamination with pathogens, particularly when fruits and vegetables are eaten raw. These pathogens can derive from agricultural practices or from other processes along the production chain. Another aspect contributing to the microbial risk for consumers is the increasing consumption of new products (e.g. sprouted seeds) or fruits and edible plants imported as a part of the globalisation of the trade in these commodities. Additionally, the application of technologies such as cutting, slicing, skinning and shredding, remove the natural protective barriers of the intact plant and open the possibility for providing a suitable medium for the growth of contaminants.Good agricultural practices and good manufacturing practices can help control microbial hazards associated with all stages of the production of fresh fruits and vegetables, from primary production to packing and trade. The effective implementation of the HACCP (hazard analysis and critical control points) principles, where applicable, according to Council Directive 93/43/EEC on the hygiene of foodstuffs(3), is another important element to ensure safety of fruits and vegetables.The aim of this element of the programme is to assess the microbiological safety of pre-cut fresh fruits and vegetables and of sprouted seeds to monitor possible risks for human health. In view of this it is recommended to verify the application of the HACCP principles by food operators and test for some pathogens such as Salmonella spp., toxigenic E.coli (in particular E.coli O157:H7) and Listeria monocytogenes.2. Sampling and method of analysisThe verifications should concern ready to eat fresh fruits and vegetables that have been peeled, cut or otherwise physically altered from their original form intended to be consumed raw, and sprouted seeds.The competent authorities of the EFTA States should carry out controls at the level of establishments of production and/or at retail level in order to verify the application of the HACCP principles including, where indicated, taking samples of products for analysis. These samples shall be of one hundred grams minimum each and the product shall be kept in its original packaging. Samples should be placed in refrigerated containers and sent immediately to the laboratory for analysis.The overall level of sampling is left to the judgement of the competent authorities of the EFTA States.Laboratories are allowed to use a method of their choice provided that its level of performance matches the aims to be achieved. However, the most recent version of standard ISO 6579 is recommended for the detection of Salmonella, the most recent version of standard EN/ISO 16654 is recommended for the detection of toxigenic E.coli and the most recent versions of standards EN/ISO 11290-1 and EN/ISO 11290-2 are recommended for detection and enumeration of Listeria monocytogenes. Additional equivalent methods recognised by competent authorities may also be used.The results of the controls should be recorded on the record sheet model provided in Annex I to this Recommendation.B. Bacteriological safety of fruit and vegetable juices1. Scope of the programmeAs for fresh fruits and vegetables, there are no specific microbiological standards for juices in the EEA legislation. The Council Directive 93/43/EEC on the hygiene of foodstuffs requires juice to be manufactured in a hygienic way and requests food operators to apply the HACCP principles for ensuring the safety and wholesomeness of their products. Food operators are also encouraged to develop and implement on a voluntary basis a code of practice outlining ways to minimise the contamination of fruit while it is being grown, harvested, stored and processed to make juice and to minimise the contamination of fruit juice concentrate while it is being stored, transported or restored into juice for consumption.The experience in this sector shows that all juices (fruit and vegetable) have the potential to be contaminated with microbiological hazards, in particular juice that has not undergone any form of heat treatment. While it is recognised that there is a low probability for juice being contaminated with dangerous pathogens, the consequences, if it is, can be severe for at-risk groups. Most of the reported outbreaks have been associated with pathogens such as Salmonella spp., Escherichia coli O157:H7.The aim of this element of the programme is to assess the bacteriological safety of fruit and vegetable juices and to monitor possible risks for human health. In view of this it is recommended to verify the application of the HACCP principles by food operators and to test for some pathogens such as Salmonella spp., toxigenic E. coli (in particular E. coli O157:H7) and Listeria monocytogenes.2. Sampling and method of analysisThe verifications should concern fruit and vegetable juices, in particular apple and citrus juices, which have not been pasteurised.The competent authorities of the EFTA States should carry out controls at the level of establishments of production and/or at retail level in order to verify the application of the HACCP principles including, where indicated, taking samples of products for analysis. For the sampling and methods of analysis it is recommended to apply the same criteria as indicated in point 2 of paragraph A for fresh fruits and vegetables.The results of the controls should be recorded on the record sheet model provided in Annex II to this Recommendation.This Recommendation is addressed to Iceland, Liechtenstein and Norway.Done at Brussels on 5 March 2002.For the EFTA Surveillance Authority.Bernd HammermannCollege MemberPeter DyrbergDirector(1) OJ L 186, 30.6.1989, p. 23. Hereinafter referred to as Directive 89/397/EEC.(2) OJ L 290, 24.11.1993, p. 14. Hereinafter referred to as Directive 93/99/EC.(3) OJ L 175, 19.7.1993, p. 1.ANNEX I>PIC FILE= "C_2002216EN.000702.TIF">ANNEX II>PIC FILE= "C_2002216EN.000802.TIF">


title: Council Recommendation of 31 May 2007 on the prevention of injury and the promotion of safety Text with EEA relevance

text:
               18.7.2007

               EN

               Official Journal of the European Union

               C 164/1

      COUNCIL RECOMMENDATION

   of 31 May 2007
   on the prevention of injury and the promotion of safety
   (Text with EEA relevance)
   (2007/C 164/01)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community, and in particular the second subparagraph of Article 152(4) thereof,
   Having regard to the proposal from the Commission,
   Having regard to the opinion of the European Parliament (1),
   Whereas:

               (1)

               Every year, about 235 000 citizens of the Community die as a result of an accident or violence. Injuries are, after cardiovascular diseases, cancer and respiratory diseases, the fourth most common cause of death in the Member States.

               (2)

               In children, adolescents and young adults accidents and injuries are the leading cause of death.

               (3)

               Many survivors of severe injuries suffer life-long impairments. Accidents and injuries are a main cause of chronic disability among younger people leading to a heavy and largely avoidable loss of life years in good health.

               (4)

               On average, injuries account for about 6,8 million hospital admissions, which represent 11 % of all hospital admissions in the European Union.

               (5)

               Injuries represent a huge financial burden on health and welfare systems, causing about 20 % of sick leave and constituting a major factor for reduced productivity.

               (6)

               The risk of an injury is unequally distributed in Member States and in social groups, and varies by age and gender as well. The risk of dying from an injury is five times greater in the Member State with the highest injury rate than in that with the lowest rate.

               (7)

               In contrast to many other causes of illness or premature death, injuries can be prevented by making our living environment, as well as products and services we use safer. There is ample evidence of proven effectiveness in accident measures that are still not widely applied throughout the Community.

               (8)

               Most of these measures have been proven cost-effective, because the benefits of prevention for health systems often exceed by a factor of several times the costs of intervention.

               (9)

               The important advances that have been made in a number of areas of safety concern like traffic or the workplace should be continued. In addition, attention should be paid to other areas which up until now have been less covered like home, leisure and sport accidents, and prevention for children and elderly citizens.

               (10)

               Consideration should also be given to the link between the consumption of alcohol and drugs and the number of injuries and accidents as well as to intentional injuries, in particular domestic violence against women and children.

               (11)

               It therefore seems necessary to make better use of existing data and develop, where appropriate, an injury surveillance and reporting mechanism, which could ensure a coordinated approach across Member States to develop and establish national policies on prevention of injuries, including exchange of best practice. Such a mechanism could be developed within the Community Public Health Programme (2), any successor programmes and any other relevant Community programmes, and should be built on the basis of representative national injury surveillance and reporting instruments to be developed in a coherent and complementary manner.

               (12)

               In order to streamline the resources of the Community Public Health Programme and any other relevant Community programmes and to tackle injury prevention most effectively priority areas have been identified: safety of children and adolescents, safety of elderly citizens, safety of vulnerable road users, prevention of sports and leisure injuries, prevention of injuries caused by products and services, prevention of self-harm and prevention of violence, particularly domestic violence against women and children. These priority areas have been determined by taking account of the social impact of injuries in terms of the number and severity, the evidence regarding the effectiveness of intervention actions and the feasibility of successful implementation in the Member States,

         HEREBY RECOMMENDS:
   With a view to providing for a high level of public health, Member States should:

               (1)

               Make better use of existing data and develop, where appropriate, representative injury surveillance and reporting instruments to obtain comparable information, monitor the evolution of injury risks and the effects of prevention measures over time and assess the needs for introducing additional initiatives on product and service safety and in other areas.

               (2)

               Set up national plans or equivalent measures, including the promotion of public awareness of safety issues, for preventing accidents and injuries. Such plans and measures should initiate and promote interdepartmental and international cooperation and use funding opportunities effectively for preventive actions and promoting safety. In their implementation, particular attention should be paid to gender aspects and to vulnerable groups such as children, elderly people, persons with disabilities, vulnerable road users, and to sports and leisure injuries, injuries caused by products and services, violence and self-harm.

               (3)

               Encourage the introduction of injury prevention and safety promotion, in schools and in training of health and other professionals, so that these groups can serve as competent actors and advisors in the field of injury prevention.

         HEREBY INVITES THE COMMISSION TO:

               (1)

               Gather, process and report Community-wide injury information based on national injury surveillance instruments.

               (2)

               Facilitate the exchange of information on good practices and on policy actions in the identified priority areas and the dissemination of the information to relevant stakeholders.

               (3)

               Support Member States in the inclusion of injury prevention knowledge into the training of health and other professionals.

               (4)

               Carry out Community actions as outlined above by using the resources provided for in the Community Public Health Programme and successor programmes, the general framework for financing Community actions in support of consumer policy (3), the Framework Programme for Research (4) and any other relevant Community programmes.

               (5)

               Carry out an evaluation report four years after the adoption of this Recommendation to determine whether the measures proposed are working effectively and to assess the need for further actions.

      Done at Brussels, 31 May 2007.

            For the Council

            The President

         F. MÜNTEFERING

      (1)  Not yet published in the OJ.

      (2)  Decision No 1786/2002/EC of the European Parliament and of the Council of 23 September 2002 adopting a programme of Community action in the field of public health (2003-2008) (OJ L 271, 9.10.2002, p. 1).

      (3)  Decision No 20/2004/EC of the European Parliament and of the Council of 8 December 2003 establishing a general framework for financing Community actions in support of consumer policy for the years 2004 to 2007 (OJ L 5, 9.1.2004, p. 1).

      (4)  Decision No 1513/2002/EC of the European Parliament and of the Council of 27 June 2002 concerning the sixth framework programme of the European Community for research, technological development and demonstration activities, contributing to the creation of the European Research Area and to innovation (2002-2006) (OJ L 232, 29.8.2002, p. 1).


title: Commission recommendation No 262/78/ECSC of 7 February 1978 imposing a provisional anti-dumping duty on certain sheets and plates, of iron or steel, originating in Poland

text:
9 . 2. 78                             Official Journal of the European Communities                                 No L 39 / 13
                              COMMISSION RECOMMENDATION No 262/78 / ECSC
                                                       of 7 February 1978
               imposing a provisional anti-dumping duty on certain sheets and plates, of iron
                                               or steel , originating in Poland
THE COMMISSION OF THE EUROPEAN                                      the first six months of 1977, imports originating in
COMMUNITIES,                                                        Poland having risen from 63 000 tonnes in 1974 to
                                                                    38 500 tonnes in the same period, and that, as a result,
Having regard to the Treaty establishing the European               they have been able to acquire in the Community a
Coal and Steel Community, and in particular Articles                market share of 20 % in total and 12-3 % for imports
74 and 86 thereof,                                                  originating in Poland, together with those from Japan,
                                                                    Czechoslovakia, Romania, Spain, Bulgaria and the
Having regard to Commission recommendation                          German Democratic Republic, which are already
77/329/ECSC of 15 April 1977 on protection against                  subject to a provisional anti-dumping duty in the
dumping or the granting of bounties or subsidies by                 Community and that, on the other hand, the Commu
countries which are not members of the European                     nity steel industry is in a crisis situation characterized
Coal and Steel Community ('), as amended by recom                  by a reduction of about 40 % in the production of the
mendation No 3004/77/ECSC (2), and in particular                    products concerned between 1974 and 1977 in the
Articles 15 and 19 thereof,                                         Community, and by a reduction in the number
                                                                    employed from 780 000 to 720 000 between 1974 and
Having heard the opinions expressed within the Advi                1977 and by short-time working and that, as a result,
sory Committee provided for by recommendation                       the Community steel industry recorded serious losses
77/329/ECSC,                                                        in most of the firms concerned ;
Whereas the Commission has received a complaint,
submitted in the name of the relevant Community                     Whereas, in order to remedy this situation, the
industry, setting out evidence as to the existence of               Commission has introduced a system of guidance
dumping of certain sheets and plates, of iron or steel,             prices (4) for sales within the Community of certain
originating in Poland and certain other countries, and              steel products produced by the European steel
of material injury resulting therefrom ;                            industry ;
Whereas the Commission has published basis
prices (3) based on the lowest normal prices or costs of            Whereas the import prices into the Community of
production in the supplying countries where normal                  products originating in Poland are considerably lower
conditions of competition prevail, including the costs              than these guidance prices and that such undercutting
of transport, insurance and customs duties ;                        prevents the European producers from achieving the
                                                                    guidance prices and jeopardizes the equilibrium of the
Whereas the prices of imports into the Community of                 entire pricing system and causes or threatens to cayse
the products which are the subject of the complaint                 material injury to the Community industry or to a
have been compared with these basis prices ;                        major part of it ;
Whereas a preliminary examination of the matter
                                                                    Whereas immediate action has been requested by one
based on this comparison shows that these products,                 Member State ;
originating in Poland, are offered for import within
the Community (United Kingdom market) at prices
lower than the basis prices and that dumping has
                                                                    Whereas, in the serious conditions being experienced
taken place, the margin of which is constituted by this
                                                                    by the Community steel industry, the interests of the
undercutting ;
                                                                    Community require immediate action ;
Whereas, with regard to injury to the industry
concerned, the evidence submitted to the Commis
                                                                    Whereas it is for the Commission, without prejudice
sion shows that, on the one hand, imports into the                  to the results of the investigation opened in accor
Community of the products increased globally from                   dance with Article 1 1 of recommendation 77/ 329/
1 242 000 tonnes in 1974 to 903 000 tonnes during                   ECSC, to decide promptly to apply provisional
                                                                    measures consisting of the imposition of a provisional
(!) OJ No L 114, 5. 5. 1977, p. 6.                                  anti-dumping duty on imports of the products
(2 ) OJ No L 352, 31 . 12. 1977, p . 13 .
(3) Communication from the Commission of 31 December
     1977 concerning the basis prices of certain steel products     (4) OJ No L 114, 5 . 5. 1977, p . 1 ; OJ No C 174, 22. 7.
     (OJ No L 353, 31 . 12. 1977, p. 1 ).                               1977 ; OJ No L 352, 31 . 12. 1977, p . 17.
 ---pagebreak--- No L 39 / 14                      Official Journal of the European Communities                              9 . 2. 78
concerned, originating in Poland, the rate of which                                  Article 2
corresponds to the difference between the basis price       The entry of the products described in Article 1 for
published by the Commission for this product and its         consumption within the Community shall be condi
price on importation into the Community,                     tional upon the deposit of a security for the amount of
                                                             the provisional duty.
MAKES THE FOLLOWING RECOMMENDATION :
                                                                                Article 3
                                                             This recommendation shall be notified to the Member
                        Article 1
                                                             States .
1 . A provisional anti-dumping duty is hereby                It shall enter into force for each Member State on the
imposed on the following products originating in             date of its publication in the Official Journal of the
Poland :
                                                             European Communities.
— sheets and plates, of iron or steel, other than elec      Without prejudice to the provisions of Article 18 of
    trical , not further worked than hot-rolled , of a       recommendation 77/329/ ECSC, it shall apply until
    thickness of 2 mm or more ,                              the entry into force of an Act of the Commission
— Common Customs Tariff heading No 73.13 B I a),             either adopting definitive measures or extending the
— NIMEXE-code 73.13-17, 19, 21 , 23 and 26 .                 provisional duty, and in any event for a maximum
                                                             period of three months.
2. The amount of this duty shall be equal to the
amount by which the effective price (basic price plus        Done at Brussels, 7 February 1978 .
extras) established by contract, free frontier duty-paid,
is lower than the effective price (basic price plus                                     For the Commission
extras) published by the Commission for this product.
                                                                                Wilhelm HAFERKAMP
3 . The provisions in force for the collection of
customs duty shall apply to the collection of this duty.                                    Vice-President


title: Council Recommendation of 14 July 2015 on the 2015 National Reform Programme of Slovenia and delivering a Council opinion on the 2015 Stability Programme of Slovenia

text:
               18.8.2015

               EN

               Official Journal of the European Union

               C 272/6

         COUNCIL RECOMMENDATION
   of 14 July 2015
   on the 2015 National Reform Programme of Slovenia and delivering a Council opinion on the 2015 Stability Programme of Slovenia
   (2015/C 272/02)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,
   Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 5(2) thereof,
   Having regard to Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (2), and in particular Article 6(1) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the resolutions of the European Parliament,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Social Protection Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

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

               (2)

               On 14 July 2015, the Council, on the basis of the Commission's proposals, adopted a Recommendation on the broad guidelines for the economic policies of the Member States and the Union and, on 21 October 2010, it adopted a decision on guidelines for the employment policies of the Member States (3). Together these form the ‘integrated guidelines’ which Member States were invited to take into account in their national economic and employment policies.

               (3)

               On 8 July 2014, the Council adopted a Recommendation (4) on Slovenia's National Reform Programme for 2014 and delivered its opinion on Slovenia's updated Stability Programme for 2014. On 28 November 2014, in line with Regulation (EU) No 473/2013 of the European Parliament and of the Council (5), the Commission presented its opinion on Slovenia's draft budgetary plan for 2015.

               (4)

               On 28 November 2014, the Commission adopted the Annual Growth Survey, marking the start of the 2015 European Semester for economic policy coordination. On the same day, on the basis of Regulation (EU) No 1176/2011, the Commission adopted the Alert Mechanism Report, in which Slovenia was identified as one of the Member States for which an in-depth review would be carried out.

               (5)

               On 18 December 2014, the European Council endorsed the priorities for fostering investment, intensifying structural reforms and pursuing responsible growth-friendly fiscal consolidation.

               (6)

               On 26 February 2015, the Commission published its 2015 country report for Slovenia. The country report assessed progress in addressing the country-specific recommendations adopted on 8 July 2014. For Slovenia, the country report also includes results of the in-depth review under Article 5 of Regulation (EU) No 1176/2011. The Commission's analysis leads it to conclude that Slovenia is experiencing macroeconomic imbalances, which require decisive policy action and specific monitoring. In particular, the rebalancing is ongoing and decisive policy actions, improved export performance and growth conditions have reduced risks compared to last year, in particular those linked to external sustainability. However, weak corporate governance, a high level of state ownership, high corporate leverage, and an increasing public debt pose risks for financial stability and growth and warrant close attention. The imbalances are therefore no longer considered as excessive but continue to deserve close attention.

               (7)

               On 30 April 2015, Slovenia submitted its 2015 National Reform Programme and its 2015 Stability Programme. In order to take account of their interlinkages, the two programmes have been assessed at the same time.

               (8)

               Slovenia is currently in the corrective arm of the Stability and Growth Pact. In its 2015 Stability Programme, the Government plans to correct the excessive deficit by 2015, in line with the deadline set by the Council, and to reach the medium-term objective — a balanced budgetary position in structural terms — by 2020, i.e. one year after the programme period. The Government plans to gradually reduce the headline deficit to 2,9 % of GDP in 2015 and to 0,9 % of GDP in 2019. According to the Stability Programme, the government debt-to-GDP ratio is expected to peak in 2015 at 81,6 % before starting to decline. The macroeconomic scenario underpinning these budgetary projections is plausible. Based on the Commission's 2015 spring forecast, a timely and durable correction of the excessive deficit by 2015 is foreseen. At the same time, the fiscal effort is below what is recommended by the Council, based on the structural balance and the discretionary measures taken. Assuming a timely correction of the excessive deficit as planned, Slovenia will be subject to the preventive arm of the Pact as of 2016. Measures to support the planned deficit targets from 2016 onwards have not been sufficiently specified. Therefore, in the light of the Commission's 2015 spring forecast, there appears to be a risk of a significant deviation from the required adjustment towards the medium-term objective in 2016 and further measures will be needed. Based on its assessment of the Stability Programme and taking into account the Commission's 2015 spring forecast, the Council is of the opinion that there is a risk that Slovenia will not comply with the provisions of the Stability and Growth Pact. With respect to the fiscal rules, in 2013 the Parliament approved a constitutional basis for establishing a general government budget balance/surplus rule in structural terms. However, the necessary implementing legislation has yet to be adopted. Revisions to the Public Finance Act are expected to provide the necessary legislative basis for the procedural issues underpinning the Fiscal Rules Act.

               (9)

               Slovenia has taken action to alleviate pressures on the medium-term sustainability of the pension system but key parameters still need to be adjusted to ensure its sustainability beyond 2020. The 2013 pension reform has had a positive impact and the legal act establishing a demographic fund is expected to be adopted until the end of 2015. However, ensuring the long-term sustainability of pensions will require further reform. No progress has been made as regards the long-term care reform. At the end of 2013, the Government adopted a blueprint for long-term care reform but the adoption of the legislation implementing the reform has been postponed to the end of 2015 in order to allow prior decisions on health insurance reform including the question of sources to finance overall healthcare and long-term care. Age related expenditure on long-term care can be contained by targeting benefits to those most in need and by refocusing care provision from institutional to home care.

               (10)

               A Social Agreement was concluded in January 2015 providing that public sector wage growth will lag behind private sector wage growth. The composition and indexation of minimum wages are not covered by this Agreement. While still relatively high compared to the average wage, recent growth of the minimum wage has been limited. An evaluation of the 2013 labour market reform shows that labour market restrictions have decreased, but structural problems persist as regards the long-term unemployment and low employment rates of low-skilled and older workers. Slovenia has undertaken some action to address the skills mismatch and numerous other measures are planned until 2020.

               (11)

               The banking sector has been further stabilised through the recapitalisation of Abanka and Banka Celje in 2014. A comprehensive action plan for banks has been finalised and submitted to the Prime Minister's office in January 2015. The Bank of Slovenia has ensured follow-up of the shortcomings identified by the 2013 Asset Quality Review and will resume on-site inspections in the first quarter of 2015 to verify whether the recommendations have been implemented by banks. The major banks have reorganised and reinforced their work-out and restructuring units. However, boosting the long-term profitability and reducing non-performing loans in the corporate sector are necessary for a healthier banking sector. Both the corporate restructuring master plan and a centralised corporate restructuring task force have been established. Further deleveraging of the corporate sector, including through the Bank Asset Management Company and by full application of the new insolvency legislation, would help restore the conditions for a rebound of private investment. Bank lending activity continues to decline, mainly affecting SMEs. The recent banking sector recapitalisation is expected to show full results only in 2016. Restrained bank lending and high interest rates are weighing on the financing capacity of SMEs. While the proportion of rejected loan applications has decreased over the past six years, the number of SMEs reporting a deterioration in the willingness of banks to provide loans has increased substantially and is one of the highest in the Union.

               (12)

               The privatisation programme is progressing, albeit with delays. The restructuring of the five major state-owned banks and the wind-down of two smaller domestic banks are on track. The Slovenian Sovereign Holding, responsible for the management and divestment of state assets, is now fully operational. A draft asset management strategy is still to be approved by the Parliament and this is expected to be followed by the release of the divestment schedule for a number of well- targeted state-owned assets. A new corporate governance code was adopted by the Slovenian Sovereign Holding in December 2014, and in January 2015 a compliance officer was appointed.

               (13)

               The efficiency of the courts further improved in 2014, although at a slower pace. While some progress in reducing the length of judicial proceedings at first instance in litigious civil and commercial cases has been made, including in cases under the insolvency legislation, the length of proceedings and the number of unresolved cases backlogs remain significant.

               (14)

               An unsupportive business environment in Slovenia is a key factor for low investment levels in Slovenian business and the high number of laws and numerous changes in the legislation make it difficult to run a business and comply with local regulation. The number of regulated professions has decreased from 323 to 242 but remains high. Around 25 % of measures included in the Single Document to cut administrative burden were implemented. Sufficient budgetary autonomy for the Competition Protection Agency and institutional independence are provided.

               (15)

               The new government reiterated its commitment to fight corruption and adopted a new two-year programme of 11 perennial measures in January 2015. Some progress has been made regarding transparency and accountability. A comprehensive public-sector reform is in preparation. No progress has been made regarding reports on performance evaluation and quality control procedures.

               (16)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of Slovenia's economic policy and published it in the 2015 country report. It has also assessed the Stability Programme and the National Reform Programme and the follow-up given to the recommendations addressed to Slovenia in previous years. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Slovenia but also their compliance with EU rules and guidance, given the need to reinforce the overall economic governance of the Union by providing EU-level input into future national decisions. The recommendations under the European Semester are reflected in recommendations (1) to (4) below.

               (17)

               In the light of the Commission's in-depth review and this assessment, the Council has examined the National Reform Programme and the Stability Programme. The recommendations under Article 6 of Regulation (EU) No 1176/2011 are reflected in recommendations (1) to (4) below.

               (18)

               In the context of the European Semester, the Commission has also carried out an analysis of the economic policy of the euro area as a whole. On the basis of this analysis, the Council has issued specific recommendations addressed to the Member States whose currency is the euro (6). As a country whose currency is the euro, Slovenia should also ensure the full and timely implementation of those recommendations,

         HEREBY RECOMMENDS that Slovenia take action within the period 2015-2016 to:

               1.

               Ensure a durable correction of the excessive deficit in 2015, and achieve a fiscal adjustment of 0.6 % of GDP towards the medium-term budgetary objective in 2016. Adopt the Fiscal Rule Act and revise the Public Finance Act. Advance long-term reform of the pension system. By end of 2015, adopt a healthcare and long-term care reform.

               2.

               Review, in consultation with the social partners and in accordance with national practices, the mechanism for setting the minimum wage, and in particular the role of allowances, in light of the impact on in-work poverty, job creation and competitiveness. Increase the employability of low skilled and older workers. Take measures to address long-term unemployment and provide adequate incentives to extend working lives.

               3.

               Bring down the level of non-performing loans in banks by introducing specific targets. Improve credit risk monitoring capacity in banks. Continue corporate restructuring and maintain strong corporate governance in the Bank Asset Management Company. Take measures to improve access to finance for SMEs and micro companies. Adopt a strategy for the Slovenian Sovereign Holding with a clear classification of assets, implement an annual asset management plan and apply performance criteria.

               4.

               Ensure that the reforms adopted to improve the efficiency of civil justice help reduce the length of proceedings.

      Done at Brussels, 14 July 2015.

            For the Council

            The President

         P. GRAMEGNA

      (1)  OJ L 209, 2.8.1997, p. 1.

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

      (3)  Maintained by Council Decision 2014/322/EU of 6 May 2014 on guidelines for the employment policies of the Member States for 2014 (OJ L 165, 4.6.2014, p. 49).

      (4)  Council Recommendation of 8 July 2014 on the National Reform Programme 2014 of Slovenia and delivering a Council opinion on the Stability Programme of Slovenia, 2014 (OJ C 247, 29.7.2014, p. 115).

      (5)  Regulation (EU) No 473/2013 of the European Parliament and of the Council of 21 May 2013 on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area (OJ L 140, 27.5.2013, p. 11).

      (6)  OJ C 272, 18.8.2015, p. 98.


title: Council Recommendation of 12 July 2016 on the 2016 National Reform Programme of Croatia and delivering a Council opinion on the 2016 Convergence Programme of Croatia

text:
               18.8.2016

               EN

               Official Journal of the European Union

               C 299/96

         COUNCIL RECOMMENDATION
   of 12 July 2016
   on the 2016 National Reform Programme of Croatia and delivering a Council opinion on the 2016 Convergence Programme of Croatia
   (2016/C 299/23)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,
   Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 9(2) thereof,
   Having regard to Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (2), and in particular Article 6(1) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the resolutions of the European Parliament,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Social Protection Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

               On 26 November 2015, the Commission adopted the Annual Growth Survey, marking the start of the 2016 European Semester for economic policy coordination. The priorities of the Annual Growth Survey were endorsed by the European Council on 17-18 March 2016. On 26 November 2015, on the basis of Regulation (EU) No 1176/2011, the Commission adopted the Alert Mechanism Report, in which it identified Croatia as one of the Member States for which an in-depth review would be carried out.

               (2)

               The 2016 country report for Croatia was published on 26 February 2016. It assessed Croatia's progress in addressing the country-specific recommendations adopted by the Council on 14 July 2015 and Croatia's progress towards its national Europe 2020 targets. It also included the in-depth review under Article 5 of Regulation (EU) No 1176/2011. On 8 March 2016, the Commission presented the results of the in-depth review. The Commission's analysis leads it to conclude that Croatia is experiencing excessive macroeconomic imbalances. In particular, it is essential to address vulnerabilities linked to high public, corporate and external debt in the context of high unemployment. Further weaknesses requiring specific policy action include fiscal governance, the governance of state-owned enterprises, the efficiency of public administration, and the resolution of non-performing loans.

               (3)

               On 28 April 2016, Croatia submitted its 2016 National Reform Programme and its 2016 Convergence Programme. In order to take account of their interlinkages, the two programmes have been assessed at the same time. The National Reform Programme presents a fairly ambitious reform agenda, which, if fully implemented within the indicated timelines, would help address its macroeconomic imbalances. It outlines relevant measures to improve the management of public finances, the health sector and the business environment and commits to ambitious reforms in the public administration, the pension system, social protection and the improvement of governance in state-owned enterprises. Based on the assessment of Croatia's policy commitments, there is no need at this stage for a stepping-up of the macroeconomic imbalances procedure.

               (4)

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

               (5)

               Croatia is currently in the corrective arm of the Stability and Growth Pact. In its 2016 Convergence Programme, the Government expects that the headline deficit will be below 3 % of GDP, at 2,6 % of GDP, in 2016 and will fall further thereafter, reaching 1,0 % of GDP by 2019. Moreover, the Government expects to reach its medium-term budgetary objective — a deficit of 1,75 % of GDP in structural terms — throughout the programme period. The government debt-to-GDP ratio peaked at 86,7 % in 2015 but, according to the Convergence Programme, is projected to gradually decline to 80,0 % in 2019. Taken at face value, the debt-to-GDP projections in the Programme comply with the debt reduction benchmark. However, while the macroeconomic scenario underpinning these budgetary projections is plausible in real terms, nominal GDP growth is higher than projected in the Commission forecast, especially for 2016. The projected reduction in the debt ratio therefore relies on favourable nominal growth projections; in addition, it factors in significant debt-reducing stock-flow adjustments from the sale of financial assets, which are not sufficiently specified. Furthermore, the measures needed to support the planned deficit targets from 2017 onwards are mostly unspecified. Based on the Commission 2016 spring forecast, the general government deficit is projected to reach 2,7 % of GDP in 2016, in line with the headline deficit target included in the Council Recommendation of 21 January 2014 under Article 126(7) TFEU. The recommended fiscal effort under the excessive deficit procedure is projected to be achieved. By contrast, the Commission forecast does not point to compliance with the forward-looking debt reduction benchmark. Whereas a structural adjustment of 0,2 % of GDP in 2017 would be sufficient to reach the medium-term budgetary objective, a higher structural adjustment would be needed to ensure compliance with the debt reduction benchmark. In particular, an adjustment above the 0,5 % of GDP benchmark would seem appropriate given the high debt and current cyclical conditions in Croatia. Currently, the structural balance is projected to deteriorate by 0,2 % of GDP in 2017. Based on its assessment of the Convergence Programme and taking into account the Commission 2016 spring forecast, the Council is of the opinion that there is a risk that Croatia will not comply with the provisions of the Stability and Growth Pact. Therefore, further measures will be needed to ensure compliance in 2017.

               (6)

               Croatia's budgetary planning continues to suffer from major weaknesses despite some improvements made by the 2015 amendment of the Budget Act. Linkages between the multiannual budgetary framework and annual budgets remain weak, and there are no clear rules on changing budgetary plans within the year. The strategic planning of individual budgetary units is not subject to systematic scrutiny and does not sufficiently support the alignment of policy priorities with medium-term fiscal targets. The budgetary process gives little consideration to the sizeable off-budget transactions and accounting adjustments impacting general government deficit and debt. Numerical fiscal rules are currently being revised. One of the main challenges is to make them more operational and better aligned with the Stability and Growth Pact. Efforts are also needed to improve the statistical basis of budgetary planning.

               (7)

               The Fiscal Policy Commission, which is in charge of monitoring compliance with fiscal rules at the national level, is closely linked with national fiscal authorities and is understaffed. Under these conditions, its political and functional independence is not ensured. A revision of the institutional setup and the mandate of the Fiscal Policy Commission has been announced for the third quarter of 2016.

               (8)

               Croatia has started to reform the system of communal charges, presented as a step in a broader reform of immovable property taxation. Combined revenue from recurrent taxes on immovable property and communal charges is relatively low as a proportion of GDP.

               (9)

               A high level of tax arrears, VAT fraud and the shadow economy are key challenges. Measures are being taken to improve tax compliance, including the development of a compliance risk management system. Yet, evidence on the effectiveness of the measures taken is still limited.

               (10)

               The stock of public debt is high and still increasing, making it indispensable to adopt a forward-looking proactive approach to public debt management. A debt management strategy for 2016-2018 is planned to be adopted soon. However, Croatia is still lacking a more comprehensive approach to debt management comprising, inter alia, annual revisions that take account of market developments, an appropriate risk management strategy, and the strengthening of the function to carry out the associated tasks.

               (11)

               A large proportion of the working-age population does not participate in the labour market. One of the main reasons for this is early retirement, also among prime-aged men. Early retirement is possible a full five years before the statutory retirement age and financial incentives to work until (and beyond) that age are weak. In addition, the pension system is characterised by a number of special provisions for specific categories of workers and generous early retirement options for certain occupations. Statutory retirement ages for men and women are being brought into line and increased to 67, but only slowly. Both the current and future adequacy of pensions is low and creates high risks of poverty in old age, especially for those with short working lives.

               (12)

               The problem of high inactivity is compounded by high unemployment; the low utilisation of the labour potential holds back growth. Youth unemployment remains a key concern, pointing to weaknesses in the education system, and there is still room to improve the effectiveness, monitoring and evaluation of the Youth Guarantee. Long-term unemployment rates have fallen recently but are still about twice the EU average. Participation in lifelong learning remains very low, due to an underdeveloped adult education system.

               (13)

               There are regional differences in per capita spending on social protection, and inconsistencies as regards the eligibility criteria for general social protection schemes and those targeting special categories. Moreover, only a small share of the overall social protection budget is spent on the nation-wide minimum income scheme. This results in inefficiencies and provides insufficient protection to the poorest. The reform of the social protection system suffered delays in terms of consolidating various benefits and establishing one-stop shops as single administrative points for the delivery of social protection services.

               (14)

               The functional distribution of competences of public administration between central and local levels is complex, and the system is fragmented. The allocation of decentralised administrative functions is not in line with the fiscal capacity of the local units in charge. This makes the local units strongly reliant on central government transfers while leaving considerable regional disparities in the provision of public services. The fragmentation of public administration weighs on service delivery, the business environment and the efficiency of public expenditure. The reform of public administration has not been taken forward in substance. A legal framework was introduced for the voluntary merger of local government units, but incentives to take up this option were not provided. The rationalisation of the system of state agencies is proceeding slowly.

               (15)

               Public sector wages are regulated by inconsistent provisions across public institutions in the definition of job complexity, fringe benefits and wage supplements. This limits the Government's control over the wage bill and weighs on the efficiency of the public sector. Due to the relatively high proportion of total employment accounted for by the public sector, public wage developments are also relevant to the wider economy.

               (16)

               State ownership of companies is highly present in the economy. Weaknesses in governance, including the lack of appropriate performance monitoring, continue to result in significantly lower profitability of state-owned enterprises relative to comparable private corporations, with negative impacts on public finance. Listing shares of state-owned enterprises on the stock exchange can help improve their corporate governance, in particular by fostering reporting and internal control mechanisms. In the past year, steps to open up state-owned enterprises to private ownership advanced slowly.

               (17)

               The national promotional bank ‘Croatian Bank for Reconstruction and Development’ (HBOR), a state-owned entity, could play a crucial role in Croatia's recovery. Its lending activity could have a substantial impact on promoting investment while addressing market failures. An appropriate regulatory framework and sound corporate governance are needed to contain the risk associated with its activity, especially since HBOR is increasingly engaging in direct lending.

               (18)

               The independent asset quality review of HBOR's credit portfolio that the authorities are planning to carry out in 2017 is one step in addressing the above-mentioned challenges. In the meantime, it is necessary to strengthen the monitoring and accountability mechanisms applying to HBOR.

               (19)

               The absorption rate of European Structural and Investment Funds has so far been low due to factors such as insufficient administrative capacity, burdensome procedures and the limited number of ready-to-implement projects.

               (20)

               Croatia's business environment continues to suffer from major shortcomings that weigh on the investment climate. Many parafiscal charges levied on firms still hamper the business environment. The regulatory environment for service providers and regulated professions remains restrictive. There are restrictions on access to and the conduct of certain regulated professions, including legal professions and tax advisors. Croatia has been reviewing the need for and the proportionality of these restrictions, but the delivery of action has been delayed. Furthermore, regulated professions and businesses suffer from high administrative burdens.

               (21)

               Regulatory instability and a perceived low quality of legislation also weigh on the business environment. With lengthy proceedings, significant backlogs and inconsistent case-law, the quality and efficiency of the judicial system and of commercial courts in particular are facing challenges. ICT systems are under-developed in particular in the communication with parties in court proceedings and electronic delivery of court documents.

               (22)

               The resolution of non-performing loans is critical in addressing the debt overhang in the economy. In this regard, important steps have been made by reinforcing the pre-insolvency and insolvency frameworks for businesses and adopting a personal insolvency procedure. The impact of the new frameworks requires detailed monitoring. However, legal uncertainty in the tax treatment of write-offs still constitutes a barrier to the swift unwinding of banks' stocks of non-performing loans.

               (23)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of Croatia's economic policy and published it in the 2016 country report. It has also assessed the Convergence Programme and the National Reform Programme and the follow-up given to the recommendations addressed to Croatia in previous years. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Croatia but also their compliance with EU rules and guidance, given the need to strengthen the EU's overall economic governance by providing EU-level input into future national decisions. The recommendations under the European Semester are reflected in recommendations (1) to (5) below.

               (24)

               In the light of this assessment, the Council has examined the Convergence Programme, and its opinion (4) is reflected in particular in recommendation (1) below.

               (25)

               In the light of the Commission's in-depth review and this assessment, the Council has examined the National Reform Programme and the Convergence Programme. Its recommendations under Article 6 of Regulation (EU) No 1176/2011 are reflected in recommendations (1) to (5) below,

         HEREBY RECOMMENDS that Croatia take action in 2016 and 2017 to:

               1.

               Ensure a durable correction of the excessive deficit by 2016. Thereafter, achieve an annual fiscal adjustment of at least 0,6 % of GDP in 2017. Use any windfall gains to accelerate the reduction of the general government debt ratio. By September 2016, reinforce numerical fiscal rules and strengthen the independence and the mandate of the Fiscal Policy Commission. By the end of 2016, improve budgetary planning and strengthen the multi-annual budgetary framework. By the end of 2016, start a reform of recurrent taxation of immovable property. Reinforce the framework for public debt management. Adopt and start implementing a debt management strategy for 2016-2018.

               2.

               By the end of 2016, take measures to discourage early retirement, accelerate the transition to the higher statutory retirement age, and align pension provisions for specific categories with the rules of the general scheme. Provide appropriate up- and re-skilling measures to enhance the employability of the working-age population, with a focus on the low-skilled and the long-term unemployed. Consolidate social protection benefits, including special schemes, by aligning eligibility criteria and integrating their administration, and focus support on those most in need.

               3.

               By the end of 2016, start reducing fragmentation and improving the functional distribution of competencies in public administration to improve efficiency and reduce territorial disparities in the delivery of public services. In consultation with social partners, harmonise the wage-setting frameworks across the public administration and public services. Advance the divestment process of state assets and reinforce the monitoring of state-owned enterprises' performance and boards' accountability, including by advancing the listing of shares of state-owned companies.

               4.

               Significantly reduce parafiscal charges. Remove unjustified regulatory restrictions hampering access to and the practice of regulated professions. Reduce the administrative burden on businesses.

               5.

               Take measures to improve the quality and efficiency of the judicial system in commercial and administrative courts. Facilitate the resolution of non-performing loans, in particular by improving the tax treatment of the resolution of non-performing loans.

      Done at Brussels, 12 July 2016.

            For the Council

            The President

         P. KAŽIMÍR

      (1)  OJ L 209, 2.8.1997, p. 1.

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

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

      (4)  Under Article 9(2) of Regulation (EC) No 1466/97.


Recommendation for a Council opinion in accordance with the third paragraph of Article 5 of Council Regulation (EC) n°1466/97 of 7 July 1997 on the updated stability programme of Belgium, 2004 2007