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32003H0518

Council Recommendation of 15 July 2003 on the appointment of the President of the European Central Bank

Official Journal L 181 , 19/07/2003 P. 0045 - 0045

Council Recommendationof 15 July 2003on the appointment of the President of the European Central Bank(2003/518/EC)THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 112(2)(b) and Article 122(4) thereof, and to Articles 11.2 and 43.3 of the Protocol on the Statute of the European System of Central Banks and of the European Central Bank,HEREBY RECOMMENDS:that Mr Jean-Claude Trichet be appointed President of the European Central Bank for a term of office of eight years with effect from 1 November 2003.This recommendation shall be submitted for decision to the Heads of State or Government of the Member States which have adopted the euro, after consulting the European Parliament and the Governing Council of the European Central Bank.This recommendation shall be published in the Official Journal of the European Union.Done at Brussels, 15 July 2003.For the CouncilThe PresidentG. Tremonti


title: Recommendation for a Council opinion in accordance with the third paragraph of Art. 5 of Council Regulation (EC) No. 1466/97 of 7 July 1997 on the updated stability programme for Austria, 2003-2007

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title: Recommendation for a Council opinion in accordance with the third paragraph of Art. 5 of Council Regulation (EC) No. 1466/97 of 7 July 1997 on the updated stability programme for Austria, 2001-2005

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title: Commission Recommendation of 28 March 2007 on the monitoring of the presence of furan in foodstuffs (Text with EEA relevance )

text:
               29.3.2007

               EN

               Official Journal of the European Union

               L 88/56

      COMMISSION RECOMMENDATION

   of 28 March 2007
   on the monitoring of the presence of furan in foodstuffs
   (Text with EEA relevance)
   (2007/196/EC)
   THE COMMISSION OF THE EUROPEAN COMMUNITIES,
   Having regard to the Treaty establishing the European Community, and in particular the second indent of Article 211 thereof,
   Whereas:

               (1)

               In May 2004 the US Food and Drug Administration (FDA) published the results of a survey concerning the presence of furan in products that undergo heat treatment. Furan levels were found in a variety of foodstuffs (e.g. canned and jarred foodstuffs, baby foods, coffee, soups and sauces, etc.).

               (2)

               The Scientific Panel on contaminants in the Food Chain of the European Food Safety Authority (EFSA) considered those results an urgent issue and compiled a scientific report on furan in food on 7 December 2004.

               (3)

               In this report EFSA concluded that from the presently available data it appears that there is a relatively small difference between possible human exposure and doses in experimental animals that produce carcinogenic effects and that a reliable risk assessment would need further data on both toxicity and exposure.

               (4)

               It is necessary to generate reliable data across the European Community on levels of furan in heat treated foodstuffs in order to enable EFSA to carry out a reliable risk assessment. A special focus should be given on data collection during the years 2007 and 2008. After that, data collection should continue on a routine basis.

               (5)

               Data should be collected on commercial foodstuffs as purchased disregarding any further preparation (e.g. coffee powder, juices, jars and cans not heated before consumption) and commercial foodstuffs analysed as consumed after further preparation in the laboratory (e.g. brewed coffee, canned and jarred products heated before consumption). In the latter case preparation should follow label instructions, if available. Food prepared at home on basis of fresh ingredients (e.g. vegetable soup made with fresh vegetables, home-made Irish stew) should not be subject to this monitoring programme as the effects of home cooking practices on furan levels in foodstuffs could be better explored in a research project.

               (6)

               In order to ensure that samples are representative for the sampled lot, the sampling procedures laid down in Part B of the Annex to Commission Regulation (EC) No 333/2007 of 28 March 2007 laying down the methods of sampling and analysis for the official control of the levels of lead, cadmium, mercury, inorganic tin, 3-MCPD and benzo(a)pyrene in foodstuffs (1) should be followed. The analysis of samples should be carried out in accordance with points 1 and 2 of Annex III to Regulation (EC) No 882/2004 of the European Parliament and the Council of 29 April 2004 on official controls to ensure the verification of compliance with feed and food law, animal health and animal welfare rules (2).

               (7)

               It is important that the analytical results and specific additional information needed for the evaluation of the results are reported on a regular basis to EFSA. The reporting format should be set out by EFSA. The compilation of the data into a database will be ensured by EFSA,

         HEREBY RECOMMENDS:

               1.

               That Member States perform during the years 2007 and 2008 monitoring on the presence of furan in foodstuffs that have undergone heat treatment. The monitoring should include commercial foodstuffs as purchased disregarding any further preparation (3) and commercial foodstuffs analysed as consumed after further preparation in the laboratory (4).

               2.

               That Member States provide on a regular basis to EFSA the monitoring data with the information and in the format as set out by EFSA.

               3.

               That Member States follow the sampling procedures as laid down in Part B of the Annex to Regulation (EC) No 333/2007 in order to ensure that samples are representative for the sampled lot. Sample preparation before analysis should be carried out with the necessary care to ensure that the furan content of the sample is not altered.

               4.

               That Member States carry out the analysis of furan in accordance with points 1 and 2 of Annex III to Regulation (EC) No 882/2004.

      Done at Brussels, 28 March 2007.

            For the Commission

         Markos KYPRIANOU

            Member of the Commission

      (1)  See page 29 of this Official Journal.

      (2)  OJ L 165, 30.4.2004, p. 1, as corrected by OJ L 191, 28.5.2004, p. 1. Regulation as last amended by Council Regulation (EC) No 1791/2006 (OJ L 363, 20.12.2006, p. 1).

      (3)  Commercial foodstuffs as purchased disregarding any further preparation: e.g. coffee powder, juices, jars and cans not heated before consumption.

      (4)  Commercial foodstuffs analysed as consumed after further preparation in the laboratory: e.g. brewed coffee, canned and jarred products heated before consumption. If available, preparation should follow label instructions. Food prepared at home on basis of fresh ingredients (e.g. vegetable soup with fresh vegetables, home-made Irish stew) are not subject of this monitoring programme.


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32003H0217

Commission Recommendation of 26 March 2003 on the application to other media of the provisions of Directive 1999/94/EC concerning promotional literature (Text with EEA relevance) (notified under document number C(2003) 848)

Official Journal L 082 , 29/03/2003 P. 0033 - 0034

Commission Recommendationof 26 March 2003on the application to other media of the provisions of Directive 1999/94/EC concerning promotional literature(notified under document number C(2003) 848)(Text with EEA relevance)(2003/217/EC)THE COMMISSION OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European Community,Having regard to Directive 1999/94/EC of the European Parliament and of the Council of 13 December 1999 relating to the availability of consumer information on fuel economy and CO2 emissions in respect of the marketing of new passenger cars(1) and, in particular, Article 9 thereof,Whereas:(1) Under Directive 1999/94/EC, the Commission is requested to take measures aimed at establishing recommendations in order to enable the application of its provisions on promotional literature to other media and material.(2) The Commission has assessed the importance of other media for the marketing, advertising and promotion of vehicles to the general public. Such media included television, radio and the internet, as well as electronic storage media such as video tapes, DVDs and CD-ROMs.(3) As a result of that research, and after consultation with the appropriate Committee, with experts from the industrial and commercial sectors concerned, and with other non-governmental organisations, the Commission identified the need to establish recommendations in respect of the use, for the marketing, advertising and promotion of vehicles to the general public, of internet marketing and electronic storage media such as video tapes, DVDs and CD-ROMs.(4) A recommendation for those media should be adopted as soon as possible in order to enable consumers to make an informed choice and to encourage the harmonised application of certain principles throughout the Community.(5) This Recommendation is also justified in the light of the amendments to Commission Regulation (EC) No 1400/2002 of 31 July 2002 on the application of Article 81(3) of the Treaty to categories of vertical agreements and concerned practices in the motor vehicle sector(2), which will probably result in an increase in the electronic marketing of new passenger cars.(6) Consumer organisations and interested parties have been consulted.(7) The measures provided for in this Recommendation are in accordance with the opinion of the Committee established under Article 10 of Directive 1999/94/EC,HEREBY RECOMMENDS:1. In order to ensure that information on the fuel consumption and CO2 emissions of new passenger cars is made available when such cars are offered for sale or lease in the Community by electronic means, Member States should take the necessary measures to ensure that promotional material distributed by electronic means contain the following information: "Further information on specific fuel consumption and CO2 emissions of new passenger cars is given in (... reference to name of the guide ...) which can be obtained free of charge at all points of sale and (... reference to national designated body; or direct link to the organisation charged with the distribution by electronic means ...)."In addition, if this promotional material contains reference to any particular new passenger car model, or version or variant, Member States should take the necessary measures to ensure that the information includes at least the official specific fuel consumption (combined test cycle) and official specific CO2 emission figure (combined test cycle) of the vehicle to which it refers, expressed in the same way as on the national label established under Directive 1999/94/EC.In all cases the statement should be easy to understand even on superficial contact, and no less prominent than the main part of the information provided. It should be ensured that the recipient of the promotional material receives this information automatically as soon as the promotional material is displayed for the first time on the web page.2. In order to ensure that information on fuel consumption and CO2 emissions of new passenger cars is made available when such cars are offered for sale and lease in the Community by electronic means Member States should take the necessary measures to ensure that electronic, magnetic or optical storage media used for the marketing, advertising and promotion of new passenger cars to the general public contains the following information: "Further information on specific fuel consumption and specific CO2 emissions of new passenger cars is given in (... reference to name of the guide ...) which can be obtained free of charge at all points of sale and (... reference to national designated body/or direct link to the organisation charged with the distribution by electronic means ...)."If the electronic, magnetic or optical storage media used for the marketing, advertising and promotion refer to any particular new passenger car model, or version or variant, Member States should take the necessary measures to ensure that those media contain at least the official specific fuel consumption (combined test cycle) and official specific CO2 emission figure (combined test cycle) of the vehicle to which they refer, expressed in the same way as on the national label established under Directive 1999/94/EC.If the electronic, magnetic or optical storage media only contains reference to the make, and not to any particular model, then fuel consumption and specific CO2 emission data need not be provided.The statement referred to in the first paragraph may be provided in an oral or visual manner. In any case the information should be easy to understand, even on superficial contact, and no less prominent than the main part of the information provided.3. Member States should ensure that information on the fuel consumption and specific CO2 emissions of all new passenger cars marketed throughout their territories is available by electronic means.4. For the purpose of this Recommendation:1. "distribution by electronic means" means that the information is sent initially and received at its destination by means of electronic equipment for processing (including digital compression) and storage of data, and entirely transmitted, conveyed and received by wire, by radio, by optical means or by other electromagnetic means;2. "promotional material" means any form of information used in the marketing, advertising and promotion of new passenger cars for sale or lease to the general public. It includes, text and pictures on web pages of which the content is under legal control of vehicle manufacturers or companies, organisations and persons which offer new passenger cars for sale and lease, as well as web pages of trade fairs where new passenger cars are presented to the general public;3. "recipient of the communication" means any natural or legal person who takes notice of promotional material, in particular for the purposes of seeking information;4. "electronic, magnetic or optical storage media" means any physical material on which information can be electronically recorded and which can serve as information tool for the general public.This Recommendation does not apply to:- radio broadcasting services,- television broadcasting services covered by Article 1 of Council Directive 89/552/EEC(3), as amended by Directive 97/36/EC(4).5. This Recommendation is addressed to the Member States.Done at Brussels, 26 March 2003.For the CommissionMargot WallströmMember of the Commission(1) OJ L 12, 18.1.2000, p. 16.(2) OJ L 203, 1.8.2002, p. 30.(3) OJ L 192, 24.7.1990, p. 1.(4) OJ L 202, 30.7.1997, p. 60.


Recommendation relative au traitement tarifaire applicable aux emballages importés pleins


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32000H0224

2000/224/EC: Council Recommendation of 13 March 2000 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 1998

Official Journal L 071 , 18/03/2000 P. 0025 - 0025

COUNCIL RECOMMENDATIONof 13 March 2000concerning 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 1998(2000/224/EC)THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community,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 1998 and the Court of Auditors' report relating to the financial year 1998 together with the Commission's replies(5),Whereas:(1) Pursuant to Article 29(3) on 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.(2) The overall implementation by the Commission of the operations of the European Development Fund (1984) (sixth EDF) during the financial year 1998 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 1998.Done at Brussels, 13 March 2000.For the CouncilThe PresidentJ. PINA MOURA(1) OJ L 175, 1.7.1986, p. 1.(2) OJ L 86, 31.3.1986, p. 210.(3) OJ L 178, 2.7.1986, p. 13.(4) OJ L 325, 20.11.1986, p. 42.(5) OJ C 349, 3.12.1999, p. 181.


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		52014DC0408

			Recommendation for a COUNCIL RECOMMENDATION on Ireland’s 2014 national reform programme and delivering a Council opinion on Ireland’s 2014 stability programme /* COM/2014/0408 final */

Recommendation for a
COUNCIL RECOMMENDATION
on Ireland’s 2014 national reform
programme
and delivering a Council opinion on Ireland’s 2014 stability programme

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[3],
Having regard to the resolutions of the
European Parliament[4],
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, which will focus on
the key areas where action is needed to boost Europe’s potential for
sustainable growth and competitiveness.
(2)
On 13 July 2010, the Council, 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 (2010 to 2014)
and, on 21 October 2010, adopted a decision on guidelines for the employment
policies of the Member States, which together form the ‘integrated guidelines’.
Member States were invited to take the integrated guidelines into account in
their national economic and employment policies.
(3)
On 29 June 2012, the Heads of State or
Government decided on a Compact for Growth and Jobs, providing a coherent
framework for action at national, EU and euro area levels using all possible
levers, instruments and policies. They decided on action to be taken at the
level of the Member States, in particular expressing full commitment to achieving
the objectives of the Europe 2020 Strategy and to implementing the
country-specific recommendations.
(4)
Ireland was subject to a macroeconomic
adjustment programme until December 2013. Under Article 12 of Regulation (EU)
No 472/2013 it was thus exempt from the monitoring and assessment of the
European Semester for economic policy coordination for the duration of that
programme. In view of the successful completion of the Irish macroeconomic adjustment
programme, Ireland should now be fully integrated in the European Semester
framework.
(5)
On 13 November 2013, the Commission adopted the
Annual Growth Survey[5],
marking the start of the 2014 European Semester of economic policy
coordination. On the same day on the basis of Regulation (EU) No 1176/2011, the
Commission adopted the Alert Mechanism Report[6].
(6)
On 20 December 2013, the European Council
endorsed the priorities for ensuring financial stability, fiscal consolidation
and action to foster growth. It underscored the need to pursue differentiated,
growth-friendly fiscal consolidation, to restore normal lending conditions to
the economy, to promote growth and competitiveness, to tackle unemployment and
the social consequences of the crisis, and to modernise public administration.
(7)
On 5 March 2014, the Commission published the
results of its in-depth review for Ireland[7],
under Article 5 of Regulation (EU) No 1176/2011 and taking into account the
successful completion of the Irish economic adjustment programme and thus the
fact that Ireland should now be fully integrated in the European Semester
framework. The Commission's analysis leads it to conclude that Ireland's
recently completed macroeconomic adjustment programme was instrumental in
managing economic risks and reducing imbalances. However, the remaining
macroeconomic imbalances require specific monitoring and decisive policy action.
In particular, financial sector developments, private and public sector
indebtedness, and, linked to that, the high gross and net external liabilities
and the situation of the labour market mean that risks are still present.
(8)
On 17 April 2014, Ireland submitted its 2014 national
reform programme and on 29 April 2014 its 2014 stability programme. In order to
take account of their interlinkages, the two programmes have been assessed at
the same time.
(9)
The main objectives of the budgetary strategy
outlined in the 2014 Stability Programme are to correct the excessive deficit
by 2015 and reach the medium-term objective by 2018. The programme targets a
deficit below 3 % of GDP by 2015, in line with the Excessive Deficit Procedure
recommendation. The programme confirms the medium-term objective of a balanced
budgetary position in structural terms, which is consistent with the provisions
of the Stability and Growth Pact. Beyond 2015, the programme sets a reduction
in the headline fiscal deficit of around 1 pp. of GDP per annum in 2016–2018. It
aims to reduce debt from close to 124 % of GDP in 2013 to 107 % of GDP in 2018.
The macroeconomic scenario underpinning the budgetary projections in the
programme is broadly in line with Commission forecasts for 2014 and 2015, with
some differences in the contributions of the demand components. It was endorsed
by an independent body (the Irish Fiscal Advisory Council). However, the
authoritiesʼ forecast for the later years of the programme are optimistic.
Moreover, the achievement of the budgetary targets is not supported by
sufficiently detailed measures for 2015. As a result, the Commission deficit forecast
for 2015 is higher than the target recommended by the Council. Based on the
assessment of the programme and the Commission forecast, pursuant to Council
Regulation (EC) No 1466/97, the Council is of the opinion that the programme's
targets are consistent with the requirements of the Stability and Growth Pact,
but need to be supported by specific measures from 2015 onward. There have been
significant steps to improve important aspects of the Irish fiscal framework
and the quality and timeliness of data provision. However, medium-term
budgetary plans are not supported by well specified adjustment measures and are
subject revisions at the time of annual budget decisions. The medium-term
expenditure ceilings are not sufficiently constrained by legally binding
specific adjustments.
(10)
Tax reforms have contributed to the fiscal
adjustment, but there is further scope to improve the efficiency and
growth-friendliness of the tax system. Property taxation has been shifted from
a transaction tax to a recurrent tax based on residential property values, but
the tax base is still relatively narrow as certain properties remain outside of
the tax net. Labour taxation is fragmented and complex; and the tax bases for
consumption and environment taxes are narrowed by reduced rates and exemptions,
while such taxes are more growth-friendly. Zero and reduced VAT rates result in
a VAT efficiency below the EU average. Reduced VAT rates are widely used to
achieve redistribution objectives even though they are not an efficient and
well-targeted policy tool to protect vulnerable groups. There is scope to
improve the effectiveness of environmental tax instruments and removing
environmentally harmful subsidies.
(11)
Even though Ireland has a relatively young
population, public healthcare expenditure was among the highest in the EU in
2012 at 8.7% of GNI, significantly above the EU average of 7.3%. Given the
current difficulties in managing the health budget, expected demographic
pressures due to an ageing population mean that current service levels can be
maintained only if value-for-money gains are achieved over the medium to long
term. The increase in health-related spending to 2060 due to demographic
pressures is projected at 1.2 percentage points of GDP. Challenges to the
health sector are multifaceted. Financial management and accounting systems and
processes are fragmented across healthcare providers. This causes delays and
hurdles in collecting and processing information. It also hinders the
monitoring of healthcare expenditure and efforts to achieve value-for-money and
an appropriate allocation of resources. The high level of pharmaceutical
expenditure is another challenge, with expenditure on out-patient drugs being
comparatively high.
(12)
Ireland faces challenges relating to unemployment,
particularly long-term and youth unemployment, and there is still a large working
age population with low skills, resulting in inequality and skills mismatches.
Long-term unemployment has fallen gradually with the recent strengthening of
the labour market, but it remains high and continues to increase as a
proportion of overall unemployment, representing over 61% of the total at the
end of 2013. The unemployment rate among young people peaked above 30% in late
2012 and early 2013. Additionally, the proportion of young people not in
employment, education or training increased by eight percentage points between
2007 and 2012 to 18.7% before ebbing to 16.1%, but still among the highest in
the EU. There is a need to cover all young people in
need within a 4-month period, in line with the objectives of a youth guarantee.
Skills mismatches have emerged with the rebalancing of
the economy, making re-skilling and up-skilling a challenge for the education
and training system. In addition, participation in lifelong learning is lower
than the EU average (7.3%, as compared with 10.7% in 2013).
(13)
Ireland has one of the highest proportions of
people living in households with low work intensity in the EU, which generates
serious social challenges. The proportion was higher than the EU average prior
to the crisis and surged from 14.3% in 2007 to 24.2% in 2011. Low work
intensity is particularly severe among single-parent households with children.
This has contributed to a growing risk of poverty or social exclusion of children
in Ireland and exacerbates the issue of the unequal labour market participation
of women which stood at 67.2% in 2013, as compared with 83.4% for men. As a
result, attention has turned to access to and affordability of childcare, a
significant barrier to parents finding employment and avoiding the risk of
poverty. The labour market is also affected by pockets of unemployment traps. The
flat structure of unemployment benefits under the Jobseeker's Benefit and Jobseeker's
Allowance system, the unlimited duration of the Jobseeker's Allowance and the
loss of supplementary payments (in particular rent supplement and medical
cards) upon return to employment mean that replacement rates are relatively
high for the long-term unemployed with low income potential and other
categories of workers depending on family circumstances.
(14)
Lending to SMEs remains weak, reflecting a
combination of subdued credit demand and supply constraints, as SMEs continue
to be affected by excess leveraging and weak domestic demand while banks need
to make further progress in achieving sustainable resolutions in their SME
non-performing loans book. The latest Red C survey indicates that, of the 40%
of SMEs that requested bank credit between October 2012 and March 2013, 19%
were declined a loan. The Credit Review Office was established at the end of
2009 to mediate disputes between lenders and prospective SME borrowers who have
been refused credit. Although positive, the impact of the Credit Review Office appears
to have been rather limited to date, partly because the number of appeals has
been quite small. SMEs rely heavily on bank financing for investment, and non-bank
sources of finances are relatively underdeveloped, although some alternatives,
including loan funds, are currently being examined. As the recovery gathers
momentum, however, and as domestic demand recovers supply constraints are
likely to increase unless credit channels are adequately repaired, which is
crucial for the growth outlook. Dedicated schemes and funds have been put in
place to improve access to finance for SMEs, such as the Credit Guarantee
Scheme, the Microenterprise Loan Fund Scheme and three SME funds put in place,
but so far take-up has been low.
(15)
Despite banking sector reforms undertaken under
the recently completed programme of financial assistance, there are still
significant challenges. These challenges were analysed in detail in the
Commission's 2014 in-depth review of Ireland. Non-performing loans represented
almost 27 % of the total as of June 2013 for the three main domestic banks. Private
sector indebtedness is still among the highest in the EU in spite of recent
deleveraging and this remains a risk to financial stability and a burden on the
economy. Household and SME deleveraging is incomplete, and bank and SME balance
sheet repair are critical to restore credit channels. Bank lending continues to
fall and the banking sector still struggles with profitability, in part because
of the high number of tracker mortgages (low-yielding legacy assets) on banks'
balance sheets.
(16)
The cost of enforcing contracts is high. Lawyer
fees represent the majority of these costs, at 18.8 pp and high legal services
costs affect the cost structure of all businesses, including SMEs. In addition,
unlike for other professional services, legal services costs have failed to
adjust downwards since the onset of the crisis, in part due to insufficient
competition. The authorities have committed themselves to introducing reforms
to the legal services sector as part of the macroeconomic adjustment programme.
They published a Legal Services Regulation Bill in 2011 that remains to be
enacted. Judicial and court administrative resources to implement active
pre-trial case management are very limited, which may be contributing to delays
in the delivery of justice and raise costs. In addition, there are significant
gaps in Ireland's ability to collect data on the quality and efficiency of the
justice system.
(17)
In the context of the European Semester, the
Commission has carried out a comprehensive analysis of Ireland’s economic
policy. It has assessed the stability programme and the national reform
programme. It has taken into account not only their relevance for sustainable
fiscal and socio-economic policy in Ireland but also their compliance with EU
rules and guidance, given the need to reinforce the overall economic governance
of the European Union by providing EU-level input into future national
decisions. Its recommendations under the European Semester are
reflected in recommendations (1) to (7) below.
(18)
In the light of this assessment, the Council has
examined Ireland’s stability programme, and its opinion[8] is reflected in
particular in recommendations (1) and (2) below.
(19)
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. Its recommendations under Article 6 of Regulation (EU)
No 1176/2011 are reflected in recommendations (1), (3), (5) and (6) below.
(20)
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 for the Member States whose currency is the euro. Ireland should
also ensure the full and timely implementation of these recommendations.
HEREBY RECOMMENDS that Ireland take
action within the period 2014-2015 to:
1.
Fully implement the 2014 budget and ensure the
correction of the excessive deficit in a sustainable manner by 2015 through
underpinning the budgetary strategy with additional structural measures while achieving
the structural adjustment effort specified in the Council recommendation under
the Excessive Deficit Procedure. After the correction of the excessive deficit,
pursue a structural adjustment towards the medium-term objective of at least
0.5% of GDP each year, and more in good economic conditions or if needed to
ensure that the debt rule is met in order to put the high general government
debt ratio on a sustained downward path. Enhance the credibility of the fiscal
adjustment strategy, effectively implement multi-annual budgetary planning and
define broad budgetary measures underlying the medium-term fiscal targets. Make
the government expenditure ceiling more binding by limiting the statutory scope
for discretionary changes. To support fiscal consolidation, consideration
should be given to raising revenues through broadening the tax base. Enhance
the growth and environmental friendliness of the tax system.
2.
Advance the reform of the healthcare sector
initiated under the Future Health strategic framework to increase
cost-effectiveness. Pursue additional measures to reduce pharmaceutical spending,
including through more frequent price realignment exercise for patented
medicines, increased generic penetration and improved prescribing practices.
Reform the financial management systems of the national health authority to
streamline systems across all providers and to support better claims
management. Roll out individual health identifiers starting in January 2015.
3.
Pursue further improvements in active labour
market policies, with a particular focus on the long-term unemployed, the
low-skilled and, in line with the objectives of a youth guarantee, young
people. Advance the on-going reform of the further education and training (FET)
system, employment support schemes and apprenticeship programmes. Offer more
workplace training; improve and ensure the relevance of FET courses and
apprenticeships with respect to labour market needs. Increase the level and
quality of support services provided by the Intreo labour offices. Put
in place a seamless FET referrals system between Intreo offices and
Education and Training Boards.
4.
Tackle low work intensity of households and address
the poverty risk of children through tapered withdrawal of benefits and
supplementary payments upon return to employment. Facilitate female labour
market participation by improving access to more affordable and full-time
childcare, particularly for low income families.
5.
Develop further policy initiatives for the SME
sector including policy initiatives to address the availability of bank and
non-bank financing and debt restructuring issues. Advance initiatives to
improve SME's access to bank credit and non-bank finance. Introduce a monitoring
system for SME lending in the banking sector. In parallel, work to ensure that
available non-bank credit facilities, including the three SME funds co-funded
by the National Pensions Reserve Fund, Microfinance Ireland and the temporary
loan guarantee scheme, are better utilised. Promote the use of these and other
non-bank schemes by SMEs. Enhance the Credit Review Office's visibility and
capabilities in mediating disputes between banks and prospective SME borrowers
who have been refused credit.
6.
Monitor banks' performance against the mortgage
arrears restructuring targets. Announce ambitious targets for the third and
fourth quarters of 2014 for the principal mortgage banks to propose and
conclude restructuring solutions for mortgage loans in arrears of more than 90
days, with a view to substantially resolving mortgage arrears by the end of 2014.
Continue to assess the sustainability of the concluded restructuring
arrangements through audits and targeted on-site reviews. Develop guidelines
for the durability of solutions. Publish regular data on banks' SME loan
portfolios in arrears to enhance transparency. Develop a strategy to address
distressed commercial real-estate exposures. Establish a central credit
registry.
7.
Reduce the cost of legal proceedings and
services and foster competition, including by enacting the Legal Services
Regulation Bill by the end of 2014, including its provision allowing the
establishment of multi-disciplinary practices, and by seeking to remove the
solicitor's lien. Monitor its impact, including on the costs of legal services.
Take executive steps to ensure that the Legal Services Regulatory Authority is
operational without delay and that it meets its obligations under the
legislation, including in terms of publishing regulations or guidelines for
multi-disciplinary practices and the resolution of complaints. Improve data
collection systems to enable quality and efficiency of judicial proceedings.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 209, 2.8.1997, p. 1.
[2]               OJ L 306, 23.11.2011, p. 25.
[3]               COM(2014) 408 final.
[4]               P7_TA(2014)0128 and P7_TA(2014)0129.
[5]               COM(2013) 800 final.
[6]               COM(2013) 790 final.
[7]               SWD(2014) 79 final.
[8]               Under Article 5(2) of Council Regulation (EC) No
1466/97.


title: Commission Recommendation of 30 May 2008 on risk reduction measures for the substances 2,3-epoxypropyltrimethylammonium chloride (EPTAC), (3-chloro-2-hydroxypropyl) trimethylammonium chloride (CHPTAC) and hexachlorocyclopentadiene (notified under document number C(2008) 2316) (Text with EEA relevance)

text:
               21.6.2008

               EN

               Official Journal of the European Union

               L 162/37

      COMMISSION RECOMMENDATION

   of 30 May 2008
   on risk reduction measures for the substances 2,3-epoxypropyltrimethylammonium chloride (EPTAC), (3-chloro-2-hydroxypropyl) trimethylammonium chloride (CHPTAC) and hexachlorocyclopentadiene
   (notified under document number C(2008) 2316)
   (Text with EEA relevance)
   (2008/472/EC)
   THE COMMISSION OF THE EUROPEAN COMMUNITIES,
   Having regard to the Treaty establishing the European Community,
   Having regard to Council Regulation (EEC) No 793/93 of 23 March 1993 on the evaluation and control of the risks of existing substances (1) and in particular Article 11(2) thereof,
   Whereas:

               (1)

               In the framework of Regulation (EEC) No 793/93 the following substances have been identified as priority substances for evaluation in accordance with Commission Regulations (EC) No 143/97 (2) and (EC) No 2364/2000 (3) respectively concerning the third and fourth list of priority substances as foreseen under Regulation (EEC) No 793/93:

                           —

                           2,3-epoxypropyltrimethylammonium chloride (EPTAC),

                           —

                           (3-chloro-2-hydroxypropyl) trimethylammonium chloride (CHPTAC),

                           —

                           hexachlorocyclopentadiene.

               (2)

               The rapporteur Member States designated pursuant to those Regulations have completed the risk evaluation activities with regard to man and the environment for those substances in accordance with Commission Regulation (EC) No 1488/94 of 28 June 1994 laying down the principles for the assessment of risks to man and the environment of existing substances in accordance with Council Regulation (EEC) No 793/93 (4) and have suggested a strategy for limiting the risks.

               (3)

               The Scientific Committee on Health and Environmental Risks (SCHER) has been consulted and has issued opinions with respect to the risk evaluations carried out by the rapporteurs. The opinions have been published on the website of the Scientific Committee.

               (4)

               The results of the risk evaluation and further results of the strategies for limiting the risks are set out in the corresponding Commission Communication (5).

               (5)

               It is appropriate, on the basis of that evaluation, to recommend certain risk reduction measures for certain substances. For the substances which are not specifically listed, there are no recommendations for the addressees of this Recommendation.

               (6)

               The risk reduction measures recommended for workers should be considered within the framework of the legislation for workers’ protection, which is considered to provide an adequate framework to limit the risks of the relevant substances to the extent needed.

               (7)

               The risk reduction measures provided for in this recommendation are in accordance with the opinion of the Committee set up pursuant to Article 15(1) of Regulation (EEC) No 793/93,

         HEREBY RECOMMENDS:
   SECTION 1
   2,3-EPOXYPROPYLTRIMETHYLAMMONIUM CHLORIDE (EPTAC)

         (CAS No 3033-77-0; Einecs No 221-221-0)

   Risk reduction measures for workers (1) and the environment (2)

               1.

               Employers using EPTAC in manufacturing and as a cationisation agent in the cationisation of starches should take note of any sector specific guidance developed at national level based on the practical non-binding guidelines, drawn up by the Commission pursuant to Article 12(2) of Council Directive 98/24/EC (6) (Chemical Agents Directive).

               2.

               Local emissions to the environment of EPTAC should, where necessary, be controlled by national rules to ensure that no risk for the environment is expected.

         SECTION 2
   (3-CHLORO-2-HYDROXYPROPYL) TRIMETHYLAMMONIUM CHLORIDE (CHPTAC)

         (CAS No 3327-22-8; Einecs No 222-048-3)

   Risk reduction measures for workers (3) and the environment (4)

               3.

               Employers using CHPTAC as a cationisation agent in the cationisation of starches should take note of any sector specific guidance developed at national level based on the practical non-binding guidelines, drawn up by the Commission pursuant to Article 12(2) of Directive 98/24/EC.

               4.

               Local emissions to the environment of CHPTAC should, where necessary, be controlled by national rules to ensure that no risk for the environment is expected.

         SECTION 3
   ADDRESSEES

               5.

               This Recommendation is addressed to all sectors importing, producing, transporting, storing, formulating into a preparation or other processing, using, disposing or recovering the substances and to the Member States.

      Done at Brussels, 30 May 2008.

            For the Commission

         Stavros DIMAS

            Member of the Commission

      (1)  OJ L 84, 5.4.1993, p. 1. Regulation as amended by Regulation (EC) No 1882/2003 of the European Parliament and of the Council (OJ L 284, 31.10.2003, p. 1).

      (2)  OJ L 25, 28.1.1997, p. 13.

      (3)  OJ L 273, 26.10.2000, p. 5.

      (4)  OJ L 161, 29.6.1994, p. 3.

      (5)  OJ C 157, 21.6.2008, p. 10.

      (6)  OJ L 131, 5.5.1998, p. 11. Directive as modified by Directive 2007/30/EC of the European Parliament and of the Council (OJ L 165, 27.6.2007, p. 21).


title: Recommendation of the European Central Bank of 17 December 2013 to the Council of the European Union on the external auditors of Banque centrale du Luxembourg (ECB/2013/51)

text:
               24.12.2013

               EN

               Official Journal of the European Union

               C 378/15

         RECOMMENDATION OF THE EUROPEAN CENTRAL BANK
   of 17 December 2013
   to the Council of the European Union on the external auditors of Banque centrale du Luxembourg
   (ECB/2013/51)
   2013/C 378/04
   THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
   Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 27.1 thereof,
   Whereas:

               (1)

               The accounts of the European Central Bank (ECB) and national central banks of the Member States whose currency is the euro are audited by independent external auditors recommended by the ECB’s Governing Council and approved by the Council of the European Union.

               (2)

               The mandate of the Banque centrale du Luxembourg’s current external auditors will end after the audit for the financial year 2013. It is therefore necessary to appoint external auditors from the financial year 2014.

               (3)

               The Banque centrale du Luxembourg has selected DELOITTE AUDIT SARL as its external auditors for the financial years 2014 to 2018,

         HAS ADOPTED THIS RECOMMENDATION:
   It is recommended that DELOITTE AUDIT SARL should be appointed as the external auditors of the Banque centrale du Luxembourg for the financial years 2014 to 2018.

      Done at Frankfurt am Main, 17 December 2013.

            The President of the ECB

         Mario DRAGHI


Important legal notice

|

52005SC0141

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, 2004-2010  /* SEC/2005/0141 final */

	Brussels, 2.2.2005SEC(2005) 141 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, 2004-2010(presented by the Commission)EXPLANATORY MEMORANDUMCouncil Regulation (EC) No 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies[1] stipulates that non-participating Member States, that is, those which have not adopted the single currency, had to submit convergence programmes to the Council and the Commission by 1 March 1999. In accordance with Article 9 of this Regulation, the Council had to examine each convergence programme based on assessments prepared by the Commission and the Committee set up by Article 114 of the Treaty (the Economic and Financial Committee). On the basis of a recommendation from the Commission and after having consulted the Economic and Financial Committee, the Council delivered an opinion, following its examination of the programme. According to the Regulation, Member States need to submit annual updates of their convergence programmes, which may also be examined by the Council in accordance with these same procedures.The first convergence programme of Denmark, covering the period 1998-2005 was submitted on 30 October 1998 and assessed by the Council on 1 December 1998. Updates were presented every following year. Denmark submitted the most recent update of its convergence programme on 29 November 2004. The Commission services have carried out a technical evaluation of this update, taking into account the results of the Commission services Autumn 2004 economic forecasts, and having regard to the code of conduct[2], the commonly agreed methodology for the estimation of potential output and cyclically-adjusted balances, the recommendations in the broad economic policy guidelines for the period 2003-2005 and the principles laid down in the Communication from the Commission to the Council and the European Parliament of 27 November 2002 on strengthening the coordination of budgetary policies[3], endorsed by the Council. This evaluation is as follows:-  The 2004 update of the Danish convergence programme was adopted by the government on 29 November 2004 and submitted to the Commission the same day. The update was sent to the Danish Parliament for information. The present update, covering the period up to 2010, is the sixth update of the Convergence Programme submitted in October 1998. The updated programme fully complies with the data requirements of the “code of conduct on the content and format of stability and convergence programmes”[4].-  In the update, GDP growth rates of 2.2% and 2.5% are foreseen for 2004 and 2005, as domestic demand, in particular private consumption, rebounds after the slowdown in 2003. For 2006, GDP growth is set markedly lower. The labour market has so far improved only modestly but is expected to recover in the coming years. Overall, on the basis of currently available information, the macroeconomic scenario underlying the update seems relatively cautious and is broadly in line with the Commission services’ evaluation including the autumn 2004 forecast. However, for 2006 and the following years the growth assumptions appear cautious and slightly below the Commission services’ estimations of the potential growth rate in the medium term.-  Inflation decelerated in late 2003 due to falling import and energy prices and annual inflation was subdued in most of 2004. Towards the end of the year inflation rose somewhat as the reduction of excise duties on several items in late 2003 fell out of the year-on-year comparison and energy prices increased; average inflation in 2004 was 1.2%. There have not been any severe tensions affecting the exchange rate of the krone . Deviations in the exchange rate from the central parity have been much narrower than the official margin and the short-term interest rate differential to the euro area has continued to be low. This reflects a strong confidence in the macroeconomic policy framework in Denmark, which also continues to provide for low long-term bond yields. Over the past year, developments in Danish bond yields have been in line with trends in major bond markets.-  The medium-term budgetary framework includes a target range of general government surpluses of 1½-2½% of GDP up to 2010 and a limit on yearly real public consumption growth of 0.5% from 2005 onwards; expenditure control is reinforced through the so-called tax freeze. Both the central government sub-sector and the pension funds are expected to show stable surpluses in the programme period. Local governments are projected to balance their budgets, as required by law. The updated programme foresees surpluses of 1.2% in 2004, 2.0% in 2005 and 1.6 % of GDP in 2006. The surplus reaches 2.0% of GDP in 2010. Both expenditure and revenue ratios are on a gradually declining trend over the projection period. Adjusting for the estimated impact of the cycle using the common methodology, the cyclically-adjusted budget balance is in comfortable surplus throughout the projection period. The projected general government surplus targets are close to the 2003 update. Differences in the near term are due to revised assumptions about GDP growth as well as to the effects of recent policy measures, including the March 2004 fiscal package, which frontloaded the tax reform adopted in 2003. From 2007 the projected surpluses are slightly lower than in the previous update, due to revised demographic assumptions that have contributed to lowering the long-term fiscal requirements. Overall, the current update thus broadly confirms the strategy of the previous update against a similar macroeconomic scenario.-  The risks to the budgetary projections are fairly balanced, though to some extent weighted towards an outcome better than projected in the first years of the programme. Over a number of years, Denmark has posted solid general government budget surpluses. This held also in 2003, when the surplus was 1.0% of GDP in spite of GDP growth of only 0.5%. A GDP growth rate closer to trend in 2006, higher than expected, should strengthen public finances in that year in relation to the programme scenario. In addition, higher oil prices than assumed in the update could also improve public finances as Denmark is a net oil exporter. The composition of GDP growth in the coming years, largely based on domestic demand, should cater for sustained revenues and thus support a favourable development of public finances. Over the medium term, downside risks to the projections include any failure to restrain public expenditure to targeted growth, in particular at local government level, or to reach the medium-term targets of higher employment. In view of this risk assessment, the budgetary stance in the programmes is sufficient to maintain a medium-term budgetary position of “close to balance or in surplus” as required by the Stability and Growth Pact throughout the programme period. It also provides a sufficient safety margin against breaching the 3% of GDP deficit threshold with normal macroeconomic fluctuations.-  The gross debt ratio stood at 44.7% of GDP in 2003 and is projected to reach 28¾% of GDP in 2010 in the update. The main contributions to the fall in the debt ratio come from positive primary balances and the impact of nominal GDP growth.-  The 2004 update reviews the government’s structural reform programme which focuses on increasing employment and strengthening competition. In recent years a range of measures have been taken. The recent tax reform, fully implemented in 2004, aims to mitigate the negative impact of high taxation on labour supply, including the number of hours worked. Even after the reform, however, the top marginal tax rate remains among the highest in the EU and still applies to a relatively large share of full-time workers. The objective of the earned-income tax credit introduced as a part of the tax reform is to increase incentives to enter or stay in the labour market, primarily for low-wage-earners. The medium-term fiscal projections assume increases in employment through future reforms, recognised as necessary by the Danish authorities but which remain unspecified. With the mid-point of the programme’s time-frame to 2010 approaching, the picture is therefore mixed in this regard.-  Denmark appears to be in a favourable position with regard to the long-term sustainability of its public finances, despite significant projected budgetary costs of an ageing population. The budgetary strategy outlined in the programme, mainly based on further debt consolidation through continued budgetary surpluses, should result in a sustainable position over time. However, achieving continued tight expenditure control and a considerable rise in employment on which the strategy also relies may prove challenging.-  Overall, the economic policies outlined in the update are broadly consistent with the country-specific broad economic policy guidelines in the area of public finances.On the basis of this assessment, the Commission has adopted the attached recommendation for a Council Opinion on the updated convergence programme of Denmark and is forwarding it to the Council.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, 2004-2010THE 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[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:On [15 February] 2005 the Council examined the updated convergence programme of Denmark, which covers the period 2004 to 2010. The programme fully complies with the data requirements of the “code of conduct on the content and format of stability and convergence programmes”.The macroeconomic scenario underlying the programme envisages real GDP growth firming from 2.2% in 2004 to 2.5% in 2005 and an average 1.7% in 2006-10. On the basis of currently available information, this scenario seems to reflect relatively cautious growth assumptions. The programme’s projections for inflation appear realistic.The medium-term budgetary framework includes a target range of general government surpluses of 1½-2½% of GDP up to 2010 and a limit on yearly real public consumption growth of 0.5% from 2005 onwards; expenditure control is reinforced through the so-called tax freeze. Both the central government sub-sector and the pension funds are expected to show stable surpluses in the programme period. Local governments are projected to balance their budgets, as required by law. The updated programme foresees surpluses of 1.2% in 2004, 2.0% in 2005 and 1.6 % of GDP in 2006. The surplus reaches 2.0% of GDP in 2010. Both expenditure and revenue ratios are on a gradually declining trend over the projection period. Adjusting for the estimated impact of the cycle using the common methodology, the cyclically-adjusted budget balance is in comfortable surplus throughout the projection period. The projected general government surplus targets are close to the 2003 update. Differences in the near term are due to revised assumptions about GDP growth as well as to the effects of recent policy measures, including the March 2004 fiscal package, which frontloaded the tax reform adopted in 2003. From 2007 the projected surpluses are slightly lower than in the previous update, due to revised demographic assumptions that have contributed to lowering the long-term fiscal requirements. Overall, the current update thus broadly confirms the strategy of the previous update against a similar macroeconomic scenario.The risks to the budgetary projections are fairly balanced, though to some extent weighted towards an outcome better than projected in the first years of the programme. Over a number of years, Denmark has posted solid general government budget surpluses. This held also in 2003, when the surplus was 1.0% of GDP in spite of a GDP growth of only 0.5%. A GDP growth rate closer to trend in 2006, higher than expected, should strengthen public finances in that year in relation to the programme scenario. In addition, higher oil prices than assumed in the update could also improve public finances as Denmark is a net oil exporter. The composition of GDP growth in the coming years, largely based on domestic demand, should cater for sustained revenues and thus support a favourable development of public finances. Over the medium term, downside risks to the projections include any failure to restrain public expenditure to targeted growth, in particular at local government level, or to reach the medium-term targets of higher employment.In view of this risk assessment, the budgetary stance in the programmes is sufficient to maintain a medium-term budgetary position of “close to balance or in surplus” as required by the Stability and Growth Pact throughout the programme period. It also provides a sufficient safety margin against breaching the 3% of GDP deficit threshold with normal macroeconomic fluctuations.The gross debt ratio stood at 44.7% of GDP in 2003 and is projected in the update to reach 28¾% of GDP in 2010. The main contributions to the fall in the debt ratio come from positive primary balances and the impact of nominal GDP growth.Denmark appears to be in a favourable position with regard to the long-term sustainability of public finances, despite significant projected budgetary costs of an ageing population. The budgetary strategy outlined in the programme, mainly based on further debt consolidation through continued budgetary surpluses, should result in a sustainable position over time. However, achieving continued tight expenditure control and a considerable rise in employment on which the strategy also relies may prove challenging.Overall, the economic policies outlined in the update are broadly consistent with the country-specific broad economic policy guidelines in the area of public finances.Comparison of key macroeconomic and budgetary projections2004 | 2005 | 2006 | 2007 | 2010 |Real GDP (% change) | CP Nov 2004 | 2.2 | 2.5 | 1.3 | 1.9 | 1.8 |COM Oct 2004 | 2.3 | 2.4 | 2.0 | n.a. | n.a. |CP Nov 2003 | 2.3 | 2.2 | 1.9 | 1.7 | 1.7 |HICP inflation (%) | CP Nov 2004 | 1.2 | 1.7 | 1.6 | 1.7 | 1.6 |COM Oct 2004 | 1.1 | 1.9 | 1.6 | n.a. | n.a. |CP Nov 2003 | 1.8 | 1.7 | 1.7 | 1.7 | 1.7 |General government balance (% of GDP) | CP Nov 2004 | 1.2 | 2.0 | 1.6 | 1.7 | 2.0 |COM Oct 20042 | 2.0 | 2.6 | 2.8 | n.a. | n.a. |CP Nov 2003 | 1.3 | 1.8 | 1.9 | 2.1 | 2.1 |Primary balance (% of GDP) | CP Nov 20043 | 4.3 | 4.8 | 4.5 | 4.6 | 4.4 |COM Oct 2004 | 4.4 | 4.9 | 4.9 | n.a. | n.a. |CP Nov 2003 | 2.3 | 2.7 | 2.6 | 2.3 | 2.3 |Cyclically-adjusted balance (% of GDP) | CP Nov 20041 | 1.7 | 2.0 | 2.0 | 2.0 | 2.3 |COM Oct 2004 | 2.6 | 2.9 | 3.0 | n.a. | n.a. |CP Nov 20031 | 1.1 | 1.5 | 1.7 | 1.9 | 2.1 |Government gross debt (% of GDP) | CP Nov 2004 | 42.3 | 39.4 | 37.4 | 35.3 | 28.8 |COM Oct 2004 | 41.5 | 37.5 | 34.2 | n.a. | n.a. |CP Nov 2003 | 41.2 | 38.7 | 36.4 | 27.5 | 27.5 |Notes: 1 Commission services calculations on the basis of the information in the programme 2 In the September 2004 EDP notification, Denmark presented figures for general government balance and gross debt where the ATP fund was reclassified outside of the government sector, which lowered the general government surplus by around 1 p.p. of GDP. On this basis, the Commission services’ autumn 2004 forecast also excluded the ATP surplus. In this assessment, the Commission services’ figures for general government balance and gross debt have been recalculated so as to include the ATP fund, as is the case in the programme update. The Commission services figures for general government balance and government debt are therefore not the same as in the autumn forecast. 3 The updated programme presents primary balances excluding net interest expenditure and not gross interest expenditure which otherwise is conventional; this table presents primary balances excluding gross interest expenditure. Sources: Updated Convergence Programme, November 2003 and November 2004 (CP); Commission services autumn 2004 economic forecasts (COM; see note 2 above); Commission services calculations |[1] OJ L209, 2.8.1997. 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] Revised Opinion of the Economic and Financial Committee on the content and format of stability andconvergence programmes, endorsed by the ECOFIN Council on 10.7.2001.[3] COM(2002) 668 final, 27.11.2002.[4] Revised Opinion of the Economic and Financial Committee on the content and format of stability and convergence programmes, document EFC/ECFIN/404/01-REV 1 of 27.6.2001 endorsed by the ECOFIN Council of 10.7.2001.[5] OJ L 209, 2.8.1997, 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.


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 Slovakia, 2005-2008

text:
Important legal notice

|

52006SC0026

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 Slovakia, 2005-2008  /* SEC/2006/0026 final */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 11.1.2006SEC(2006) 26 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 Slovakia, 2005-2008(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 Slovakia 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 Slovakia and, based on its assessment below, has adopted a recommendation for a Council opinion on it.Assessment1.  Slovakia submitted its convergence programme on 1 December 2005. It covers the period 2005 to 2008 and, in addition, provides indicative projections until 2010. The document was adopted by the government on 30 November 2005. It incorporates the 2006 budget, which the parliament approved on 13 December 2005, and the government’s multi-annual budgetary framework 2006-2008, which the government adopted on 12 October 2005. The programme broadly follows the model structure for stability and convergence programmes specified in the new code of conduct[3]. The programme has gaps in the compulsory and optional data prescribed by the new code of conduct[4].2.  On 5 July 2004 the Council decided that Slovakia had an excessive deficit. According to the Council recommendation under Article 104(7) of the same date, the excessive deficit has to be corrected by 2007. In its opinion of 17 February 2005 on the previous update of the Slovakia's convergence programme covering the period 2004-2007, the Council invited Slovakia to “(i) seize every opportunity for an accelerated deficit reduction, including through the use of better-than-expected revenues and of savings on the expenditure side, in particular in 2005; (ii) make the medium-term expenditure ceilings more binding; (iii) be vigilant that second-round effects from the high inflation in 2004 do not affect the inflation convergence path envisaged in the programme”.3.  Slovak real GDP growth averaged 4.3% between 1994 and 2004 almost two percentage points above the EU25 average of 2.4%. The labour market situation remains the country’s major problem. As a consequence of accelerated enterprise restructuring in the late 1990s, the unemployment rate increased from 13.7% in 1994 to 18.2% in 2004 while total employment decreased by two percentage points over the same period. The programme projects real GDP growth at an average rate of 5.6% over the programme period and, starting with a negative output gap in 2005, implies a marked swing in cyclical conditions. GDP growth is expected to increase from 5.1% in 2005 to 5.4% in 2006 and 6.1% in 2007, with net exports providing an increasing contribution to GDP growth and complement a strong positive contribution of domestic demand. Strong domestic demand should be sustained thanks to positive wage and labour market developments as well as an attractive business environment and growing public investment supported by EU funds. Covering the period until 2007, the Commission services autumn 2005 forecast broadly confirms the growth projections of the programme as well as the development of the underlying composition of growth. For 2008, the growth assumption of almost 5½% exceeds the Commission services' estimate of potential output growth. The programme expects inflation to rise to 3.6% in 2006 due to increases in administered prices induced by higher oil and natural gas prices. As these effects fade out, inflation is projected to ease to 2.0% in 2007 and 2008. The inflation projections presented in the programme seem plausible although recently announced further upward adjustments of some regulated prices represent an upside risk.4.  After a depreciation in March-April 2005, the koruna slowly appreciated until its ERM II entry on 28 November 2005. Following this move, the koruna initially further strengthened by about 1.5% and subsequently stabilized at between 1 and 2% above the central rate during the first weeks of ERM II participation. Since early 2005 long-term interest rates remained close to the euro area level compared to a spread of around 100 basis points in 2003 and 2004. As the recent increase in Slovak long-term interest rates outpaced that of the euro area, the spread widened again somewhat in the last quarter of 2005. Since 1 January 2005 the National Bank of Slovakia has defined the conduct of its monetary policy as “inflation targeting in the conditions of ERM II”.5.  The general government deficit for 2005 is estimated, based on the Commission services’ forecast, at 4.1% of GDP but a comparison with previous convergence programmes is not straightforward because it includes a cancellation of some developing countries’ debt amounting to about 0.8% of GDP. Without the debt cancellation the deficit is estimated at around 3.3% of GDP which is slightly lower than foreseen in the previous update (3.4% of GDP). This positive development is, however, mainly driven by lower-than-expected interest expenditure.6.  The programme aims at reducing the deficit to below the 3% of GDP reference value in 2007 (including the costs of the pension reform), in line with the Council recommendation under Article 104(7) from 5 July 2004. The general government deficit (net of the pension reform costs) is projected to decrease from 4.1% of GDP (including debt cancellations amounting to 0.8 % of GDP) in 2005 to 2.9% in 2006, then decline sharply to 1.6% of GDP in 2007 and afterwards to fall to 1.3% of GDP in 2008. The budgetary adjustment is mainly expenditure based. The expenditure-to-GDP ratio is projected to decrease by 3.4 percentage points between 2005 and 2008 (by 2.6 percentage points excluding debt cancellations of 0.8% of GDP in 2005). General government revenues are estimated to remain broadly stable until 2007 and then decrease by 0.7% of GDP in 2008. The budgetary impact of the classification of the funded second-pillar pension scheme outside the general government sector (which has to be implemented by the time of the spring 2007 fiscal notification) is estimated at 0.8%, 1.3%, 1.4% and 1.4% of GDP in 2005, 2006, 2007 and 2008 respectively. The planned fiscal consolidation is back-loaded, mainly concentrated in 2007. Compared to the previous convergence programme the back-loading of the fiscal consolidation effort required to reach the 2007 deficit target of 3.0% of GDP has grown stronger in view of higher estimates of the costs of the pension reform. The 2006 deficit target remained unchanged. Overall, the new update broadly confirms the planned adjustment in the previous programme against the background of a more favourable macroeconomic outlook. The budgetary effect of stronger economic growth projections is largely offset by an upward revision of the costs of the pension reform.7.  Based on Commission services’ calculations on the basis of the programme according to the commonly agreed methodology, the structural balance would improve from around -2¾% of GDP in 2005 to about -1½% of GDP in 2008. The fiscal effort planned in the programme is mainly concentrated in 2007, when the output gap implied by the macroeconomic scenario of the programme is estimated to be close to zero but with cyclical conditions clearly expected to improve compared to the previous year. The programme identifies a medium-term objective (MTO) for the budgetary position as meant in the Stability and Growth Pact of a structural balance of -0.9% of GDP, which it aims to achieve by 2010. As the programme’s MTO is more demanding than the minimum benchmark (estimated at a deficit of around 2¼% of GDP), its achievement should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. The programme’s MTO is at an appropriate level because it 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 adequately reflects the debt ratio and average potential output growth in the long term.8.  According to this update the medium-term budgetary framework approved by the government is exclusively based on current legislation and on government approved legislative changes. However, it is not very explicit about the measures that would ensure the achievement of the 2007 deficit target. So far the government has overachieved the budgetary targets set in the previous programmes: after a lower-than-expected 2004 deficit a better-than-planned result is also projected for 2005 (excluding debt cancellations of 0.8% of GDP). Nevertheless, some of the financial resources that were freed by lower-than-expected interest expenditure in 2005 were used to cover other unbudgeted public expenditures highlighting the need for more binding ceilings for expenditure items. Overall, the risks to the predictions appear broadly balanced and the budgetary projections presented in the programme thus seem plausible.9.  Taking into account the balance of risks Slovakia is on track to correct its excessive deficit by the deadline set by the Council. An increase in the deficit projection for 2005 results from the one-off effect of debt cancellations amounting to 0.8% of GDP. However, the budgetary strategy outlined in the programme may not be sufficient to ensure that the programme’s MTO (-0.9% of GDP) will be reached in 2010. Including the budgetary impact of the Eurostat decision of 2 March 2004 on the classification of the funded second-pillar pension schemes (which has to be implemented by the time of the spring 2007 notification) the structural balance based on the Commission services' calculations on the basis of the programme is estimated at -2.9% of GDP in 2008 (-1.5% of GDP net of the costs of the pension reform). Substantial additional consolidation measures would thus be needed to reach the programme’s MTO by 2010. The planned improvement in the structural balance of around ¼% of GDP in 2008 is below the 0.5% of GDP benchmark set in the Stability and Growth Pact, when the cyclical conditions may qualify as good economic times.10.  The debt ratio is expected to fall quite significantly by nearly 9 percentage points to 33.7% of GDP in 2005. This large fall - even larger than expected in the Commission services' forecasts - is mainly because of a reduction in liquidities (deposits) managed by a new agency responsible for managing government debt (ARDAL). The reduction in liquid assets is recorded as a component of the stock-flow adjustment. The debt ratio is then expected to hover around 35 to 36% of GDP (35.5% in 2006, 35.2% in 2007 and 36.2% in 2008), as a result of a small primary balance, a debt-decreasing snow-ball effect (as the effective interest rate is below GDP growth). The stock-flow adjustment is expected to remain positive over the programme horizon in spite of some privatisation receipts expected in 2006.11.  With regard to the sustainability of public finances, Slovakia appears to be at medium risk in view of the projected budgetary costs of ageing populations. The level of the debt is significantly below the 60% reference value and should remain so under the assumption of unchanged policies for the coming two decades. Slovakia has recently enacted a two-step pension reform, which has contained future increase in public expenditure. However, the currently high structural deficit will prevent the reduction of the debt/GDP ratio, which increases the risk to long-term sustainability. Implementing rigorously the planned consolidation of public finances over the medium-term is necessary in order to reduce risks to long-term sustainability[5].12.  The planned 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. Slovakia is on track to correct its excessive deficit by the deadline set by the Council.13.  The National Reform Programme of Slovakia, submitted on 14 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) information society; (ii) R&D and innovations; and (iii) education and employment. The budgetary implications of the actions outlined in the National Reform Programme are fully reflected in the budgetary projections of the convergence programme. The convergence programme describes the already adopted reforms of the tax and the pension system. The 2006 budget as well as the 2006-2008 budgetary framework foresee significant increases in expenditure on education and research and development and thus reflect priorities set in the National Reform Programme.In view of the above assessment and in the light of the recommendations under Article 104(7), the Council is of the opinion that Slovakia should:(i) strengthen the effort in the structural budgetary adjustment, in the absence of any margin with respect to the reference value targeted for 2007 (which is the deadline for the correction of the excessive deficit) and in order to fully take advantage of the upward revision of growth prospects compared to those underlying the Council recommendations, and(ii) reinforce the binding character of the medium-term expenditure ceilings for central government.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 Slovakia, 2005-2008THE 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[6], 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:14.  On [24 January 2006] the Council examined the updated convergence programme of Slovakia, which covers the period 2005 to 2008. 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.15.  Slovak real GDP growth averaged 4.3% between 1994 and 2004 almost 2 percentage points above the EU25 average of 2.4%. The labour market situation remains the country’s major problem. As a consequence of accelerated enterprise restructuring in the late 1990s, the unemployment rate increased from 13.7% in 1994 to 18.2% in 2004 while total employment decreased by 2 percentage points over the same period. The macroeconomic scenario assumes that real GDP growth will average 5.6% per year over the programme period and, starting with a negative output gap in 2005, implies a marked swing in cyclical conditions. Assessed against currently available information, this scenario appears to be based on plausible growth assumptions. The programme’s projections for inflation also appear realistic.16.  On 5 July 2004, the Council decided that Slovakia was in excessive deficit. According to the Council recommendation under Article 104(7) of the same date, the excessive deficit has to be corrected by 2007. In its opinion of 17 February 2005 on the previous update of the Slovakia's convergence programme covering the period 2004-2007, the Council invited Slovakia to “(i) seize every opportunity for an accelerated deficit reduction, including through the use of better-than-expected revenues and of savings on the expenditure side, in particular in 2005; (ii) make the medium-term expenditure ceilings more binding; (iii) be vigilant that second-round effects from the high inflation in 2004 do not affect the inflation convergence path envisaged in the programme”.17.  The programme aims at reducing the deficit to below the 3% of GDP reference value in 2007, in line with the Council recommendation under Article 104(7) from 5 July 2004. The general government deficit (net of the pension reform costs) is projected to decrease from 4.1% of GDP (including 0.8 % of GDP debt cancellations) in 2005 to 2.9% in 2006, then decline sharply to 1.6% of GDP in 2007 and to reach 1.3% of GDP in 2008. The profile of the primary balance is similar, which is expected to improve from -2.3% of GDP (-1.5% of GDP excluding debt cancellations amounting to 0.8 % of GDP) in 2005 to 0.7% in 2008. The budgetary adjustment is mainly expenditure based. The government expenditure-to-GDP ratio is expected to fall by 3.4 percentage points between 2005 and 2008 (by 2.6 percentage points excluding 0.8% of GDP of debt cancellations in 2005). General government revenues are estimated to remain broadly stable until 2007 and then decrease by 0.7% of GDP in 2008. The budgetary impact of the classification of the second-pillar funded pension scheme outside the general government sector (which has to be implemented by the time of the spring 2007 notification) is estimated at 0.8%, 1.3%, 1.4% and 1.4% of GDP in 2005, 2006, 2007 and 2008 respectively. The planned fiscal consolidation is back-loaded, mainly concentrated in 2007. Compared to the previous convergence programme the back-loading of the fiscal consolidation effort required to reach the 2007 deficit target of 3.0% of GDP (including the costs of the pension reform) has grown stronger in view of higher estimates of the costs of the pension reform.18.  Over the programme period, the structural balance (i.e. the cyclically-adjusted budget balance net of one-off and other temporary measures) calculated according to the commonly agreed methodology is planned to improve on average by 0.4% of GDP per year, from -2.8% of GDP to -1.3% of GDP. The programme sets the medium-term objective (MTO) for the budgetary position in structural terms at a deficit of 0.9% of GDP and aims at achieving this position by 2010 (beyond the programme period). As the programme’s MTO is more demanding than the minimum benchmark (estimated at a deficit of around 2¼% of GDP), its achievement should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. The programme’s MTO is at an appropriate level because it 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 adequately reflects the debt ratio and average potential output growth in the long term.19.  The risks to the budgetary projections in the programme appear broadly balanced. Although, the programme is not very explicit about the specific measures planned to be adopted in order to reach the 2007 deficit target, the update emphasizes that the medium-term budgetary framework approved by the government is based exclusively on currently valid legislation and on government approved legislative changes. The current government has so far, more-than-respected the budgetary targets set in the previous programmes: after a lower-than-expected 2004 deficit a better-than-planned result is also anticipated for 2005 (if debt cancellations of 0.8% of GDP are excluded). Nevertheless, some of the financial resources that were freed by lower-than-expected interest expenditure in 2005 were used to cover other unbudgeted public expenditures highlighting the need for more binding ceilings for expenditure items.20.  In view of this risk assessment, the budgetary stance in the programme seems consistent with a correction of the excessive deficit by 2007 as recommended by the Council. However, the budgetary stance in the programme may not be sufficient to ensure that the programme’s MTO is achieved in 2010, as envisaged in the programme. In 2008 (the year following the correction of the excessive deficit), the pace of the adjustment towards the programme’s MTO implied by the programme is not in line with the Stability and Growth Pact, which specifies that, for euro area and ERM II Member States, the annual improvement in the structural balance should be 0.5% of GDP as a benchmark and that the adjustment should be higher in good economic times and could be lower in bad economic times. In particular, in 2008 the improvement in the structural balance is only around ¼% of GDP, when cyclical conditions signal ‘good times’[7].21.  The debt ratio is estimated to have reached 33.7% of GDP in 2005, well below the 60% of GDP Treaty reference value. The programme projects the debt ratio to increase by 2.5 percentage points over the programme period.22.  With regard to the sustainability of public finances, Slovakia appears to be at medium risk on grounds of the projected budgetary costs of ageing populations. The level of debt is significantly under the 60% reference value and should remain so under the assumption of unchanged policies for the coming two decades. Slovakia has recently enacted a two-step pension reform, which has contained future increase in public expenditure. However, the currently high structural deficit will prevent the reduction of the debt/GDP ratio, which increases the risk to long-term sustainability. Implementing rigorously the planned consolidation of public finances over the medium-term is necessary in order to reduce risks to long-term 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. Slovakia is on track to correct its excessive deficit by the deadline set by the Council.24.  The National Reform Programme of Slovakia, submitted on 14 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) information society; (ii) R&D and innovations; and (iii) education and employment. The budgetary implications of the actions outlined in the National Reform Programme are fully reflected in the budgetary projections of the convergence programme. The convergence programme describes already adopted reforms of tax and pension systems. The 2006 budget as well as the 2006-2008 budgetary framework foresee significant increases in the expenditure on education and research and development and thus reflect priorities set in the National Reform Programme.In view of the above assessment and in the light of the recommendations under Article 104(7), the Council is of the opinion that Slovakia should:(i) strengthen the effort in the structural budgetary adjustment, in the absence of any margin with respect to the reference value targeted for 2007 (which is the deadline for the correction of the excessive deficit) and in order to fully take advantage of the upward revision of growth prospects compared to those underlying the Council recommendations, and(ii) reinforce the binding character of the medium-term expenditure ceilings for central government. Comparison of key macroeconomic and budgetary projections 12004 | 2005 | 2006 | 2007 | 2008 |Real GDP (% change) | CP Dec 2005 | 5.5 | 5.1 | 5.4 | 6.1 | 5.6 |COM Nov 2005 | 5.5 | 5.1 | 5.5 | 6.3 | n.a. |CP Nov 2004 | 5.0 | 4.5 | 5.1 | 5.4 | n.a. |HICP inflation (%) | CP Dec 2005 | 7.5 | 2.9 | 3.6 | 2.0 | 2.0 |COM Nov 2005 | 7.5 | 2.9 | 3.6 | 2.1 | n.a. |CP Nov 2004 | 7.8 | 3.3 | 2.8 | 2.5 | n.a. |Output gap (% of potential GDP) | CP Dec 20052 | -1.9 | -1.6 | -1.1 | 0.1 | 0.8 |COM Nov 20056 | -1.5 | -1.3 | -0.9 | 0.2 | n.a. |CP Nov 20042 | 0.4 | 0.2 | 0.4 | 0.9 | n.a. |General government balance (% of GDP) | CP Dec 20052 | -3.2 | -4.1 | -2.9 | -1.6 | -1.3 |COM Nov 2005 | -3.1 | -4.1 | -3.0 | -2.5 | n.a. |CP Nov 2004 | -3.8 | -3.4 | -2.9 | -1.9 | n.a. |Primary balance (% of GDP) | CP Dec 2005 | -1.0 | -2.3 | -1.0 | 0.4 | 0.7 |COM Nov 2005 | -0.9 | -1.9 | -0.8 | -0.2 | n.a. |CP Nov 2004 | -1.5 | -1.0 | -0.6 | 0.4 | n.a. |Cyclically-adjusted balance (% of GDP) | CP Dec 20052 | -2.6 | -3.6 | -2.6 | -1.6 | -1.5 |COM Nov 2005 | -2.7 | -3.8 | -2.7 | -2.5 | n.a. |CP Nov 20042 | n.a. | n.a. | n.a. | n.a. | n.a. |Structural balance3 (% of GDP) | CP Dec 20054 | -2.6 | -2.8 | -2.6 | -1.7 | -1.5 |COM Nov 20055 | -2.7 | -3.0 | -2.7 | -2.5 | n.a. |CP Nov 2004 | n.a. | n.a. | n.a. | n.a. | n.a. |Government gross debt7 (% of GDP) | CP Dec 2005 | 42.6 | 33.7 | 35.5 | 35.2 | 36.2 |COM Nov 2005 | 42.6 | 36.7 | 38.2 | 38.5 | n.a. |CP Nov 2004 | 43.0 | 44.2 | 45.3 | 45.5 | n.a. |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 according to the updated programme would be -3.2% of GDP in 2004, -4.9% in 2005, -4.2% in 2006, -3.0% in 2007 and -2.7% in 2008. 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 (0.8% of GDP in 2005, deficit-increasing and 0.1% in 2007, deficit-reducing). 5 One-off and other temporary measures taken from the Commission services’ autumn 2005 forecast (0.8% of GDP in 2005, deficit-increasing). 6 Based on estimated potential growth of 4.9%, 4.8%, 5.1% and 5.1% respectively in the period 2004-2007. 7 The debt projections (in contrast with deficit projections) in the programme have been prepared taking into account the Eurostat decision of 2 March 2004 on the classification of funded pension schemes. Source: Convergence programme (CP); Commission services’ autumn 2005 economic forecasts (COM); Commission services’ calculations. |[1] OJ L 209, 2.8.1994, p, 1. Regulation as amended by Regulation (EC) N° 1055/2005 (OJ L 174, 7.7.2005, p. 1) All the documents referred to in this text can be found on 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] However, sections on growth implications of “major structural reforms” and on sensitivity of budgetary projections to different scenarios and assumptions are missing. The chapter on institutional features of public finances is divided into different sections than the model structure.[4] Note, however, that compulsory data on nominal effective exchange rate are missing in order to avoid pre-empting the setting of the euro conversion rate. The data on FISIM and general government expenditure by function are also missing.[5] 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[6] 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[7] 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