title: EC: Commission Recommendation of 2 March 2005 on the coordinated inspection programme in the field of animal nutrition for the year 2005 in accordance with Council Directive 95/53/EC (Text with EEA relevance)

text:
               9.3.2005

               EN

               Official Journal of the European Union

               L 62/22

         COMMISSION RECOMMENDATION
   of 2 March 2005
   on the coordinated inspection programme in the field of animal nutrition for the year 2005 in accordance with Council Directive 95/53/EC
   (Text with EEA relevance)
   (2005/187/EC)
   THE COMMISSION OF THE EUROPEAN COMMUNITIES,
   Having regard to the Treaty establishing the European Community,
   Having regard to Council Directive 95/53/EC of 25 October 1995 fixing the principles governing the organisation of official inspections in the field of animal nutrition (1), and in particular Article 22(3) thereof,
   Whereas:

               (1)

               In 2004 Member States identified certain issues as worthy of a coordinated inspection programme to be carried out in the year 2005.

               (2)

               Although Directive 2002/32/EC of the European Parliament and of the Council of 7 May 2002 on undesirable substances in animal feed (2) establishes maximum contents of aflatoxin B1 in feedingstuffs, there are no Community rules for other mycotoxins, such as ochratoxin A, zearalenone, deoxynivalenol and fumonisins. Gathering information on the presence of those mycotoxins through random sampling could provide useful data for an assessment of the situation with a view to the development of the legislation. Furthermore, certain feed materials such as cereals and oil seeds are particularly exposed to mycotoxin contamination because of harvesting, storage and transport conditions. As mycotoxin concentration varies from year to year, it is appropriate to collect data from consecutive years for all mycotoxins mentioned.

               (3)

               Antibiotics, other than coccidiostats and histomonostats, may be marketed and used as feed additives only until 31 December 2005. Previous checks for the presence of antibiotics and coccidiostats in certain feedingstuffs where some of those substances are not authorised indicate that this type of infringement still occurs. The frequency of such findings and the sensitivity of this matter justify the continuation of checks.

               (4)

               It is important to ensure that the restrictions on the use of feed materials of animal origin in feedingstuffs, as laid down in the relevant Community legislation, are effectively enforced.

               (5)

               It is appropriate to ensure that the levels of the trace elements copper and zinc in compound feedingstuffs for pigs do not exceed the maximum content laid down by Commission Regulation (EC) No 1334/2003 of 25 July 2003 amending the conditions for authorisation of a number of additives in feedingstuffs belonging to the group of trace elements (3).

               (6)

               The measures provided for in this Recommendation are in accordance with the opinion of the Standing Committee on the Food Chain and Animal Health,

         HEREBY RECOMMENDS:

               1.

               It is recommended that Member States carry out during the year 2005 a coordinated inspection programme aimed to check:

                           (a)

                           the concentration of mycotoxins (aflatoxin B1, ochratoxin A, zearalenone, deoxynivalenol and fumonisins) in feedingstuffs, indicating the methods of analysis; the method of sampling should comprise both random and targeted sampling; in the case of targeted sampling, the samples should be feed materials suspected of containing higher concentrations of mycotoxins, such as cereal grains, oil seeds, oil fruits, their products and by-products, and feed materials stored for a long time or transported by sea over a long distance; in the case of aflatoxin B1, particular attention should also be paid to compound feedingstuffs for dairy animals other than dairy cattle; the results of the checks should be reported using the model set out in Annex I;

                           (b)

                           antibiotics, coccidiostats and/or histomonostats, whether or not authorised as feed additives for certain animal species and categories, that occur frequently in non-medicated pre-mixtures and compound feedingstuffs in which these medicinal substances are not authorised; the checks should target those medicinal substances in pre-mixtures and compound feedingstuffs if the competent authority considers that there is a greater probability of finding irregularities; the results of the checks should be reported using the model set out in Annex II;

                           (c)

                           the implementation of restrictions on the production and use of feed materials of animal origin, as set out in Annex III;

                           (d)

                           the levels of copper and zinc in compound feedingstuffs for pigs, as set out in Annex IV.

               2.

               It is recommended that Member States include the results of the coordinated inspection programme provided for in paragraph 1 in a separate chapter in the annual report on inspection activities to be transmitted by 1 April 2006 in accordance with Article 22(2) of Directive 95/53/EC and the latest version of the harmonised reporting model.

      Done at Brussels, 2 March 2005.

            For the Commission

         Markos KYPRIANOU

            Member of the Commission

      (1)  OJ L 265, 8.11.1995, p. 17. Directive as last amended by Directive 2001/46/EC of the European Parliament and of the Council (OJ L 234, 1.9.2001, p. 55).

      (2)  OJ L 140, 30.5.2002, p. 10. Directive as last amended by Commission Directive 2003/100/EC (OJ L 285, 1.11.2003, p. 33).

      (3)  OJ L 187, 26.7.2003, p. 11. Regulation as amended by Regulation (EC) No 2112/2003 (OJ L 317, 2.12.2003, p. 22).
   ANNEX I
   Concentration of certain mycotoxins (aflatoxin B1, ochratoxin A, zearalenone, deoxynivalenol, fumonisins) in feedingstuffs
   Individual results of all tested samples; model for reports as referred to in paragraph 1(a)

               Feedingstuffs

               Sampling (random or targeted)

               Type and concentration of mycotoxins (μg/kg relative to a feedingstuff with a moisture content of 12 %)

               Type

               Country of origin

               Aflatoxin B1

               Ochratoxin A

               Zearalenone

               Deoxynivalenol

               Fumonisins (1)

         The competent authority should also indicate:

               —

               the action taken when maximum levels for aflatoxin B1 are exceeded,

               —

               the methods of analysis used,

               —

               the limits of detection.

      (1)  The concentration of fumonisins comprises the total of fumonisins B1, B2 and B3.
   ANNEX II
   Presence of certain medicinal substances not authorised as feed additives
   Certain antibiotics, coccidiostats and other medicinal substances may be legally present as additives in pre-mixtures and compound feedingstuffs for certain species and categories of animals, when fulfilling the requirements of Article 10 of Regulation (EC) No 1831/2003 of the European Parliament and of the Council of 22 September 2003 on additives for use in animal nutrition (1).
   The presence of unauthorised medicinal substances in feedingstuffs constitutes an infringement.
   The medicinal substances to be controlled should be chosen from the following:

               1.

               Medicinal substances authorised as feed additives for certain animal species or categories only:

                           avilamycin

                           decoquinate

                           diclazuril

                           flavophospholipol

                           halofuginone hydrobromide

                           lasalocid A sodium

                           maduramicin ammonium alpha

                           monensin sodium

                           narasin

                           narasin — nicarbazin

                           robenidine hydrochloride

                           salinomycin sodium

                           semduramicin sodium

               2.

               Medicinal substances no longer authorised as feed additives:

                           amprolium

                           amprolium/ethopabate

                           arprinocid

                           avoparcin

                           carbadox

                           dimetridazole

                           dinitolmid

                           ipronidazol

                           meticlorpindol

                           meticlorpindol/methylbenzoquate

                           nicarbazin

                           nifursol

                           olaquindox

                           ronidazol

                           spiramycin

                           tetracyclines

                           tylosin phosphate

                           virginiamycin

                           zinc bacitracin

                           other antimicrobial substances

               3.

               Medicinal substances never authorised as feed additives:

                           other substances
                           Individual results of all non-compliant samples; model for reports as referred to in paragraph 1(b)

                                       Type of feedingstuff (animal species and category)

                                       Substance detected

                                       Level found

                                       Reason for the infringement (2)

                                       Action taken

                                 The competent authority should also indicate:

                                       —

                                       the total number of samples tested,

                                       —

                                       the names of the substances which have been investigated,

                                       —

                                       the methods of analysis used,

                                       —

                                       the limits of detection.

      (1)  OJ L 268, 18.10.2003, p. 29.

      (2)  Reason leading to the presence of the unauthorised substance in the feedingstuff, as concluded after an investigation carried out by the competent authority.
   ANNEX III
   Restrictions on the production and use of feed materials of animal origin
   Without prejudice to Articles 3 to 13 and 15 of Directive 95/53/EC, Member States should during 2005 undertake a coordinated inspection programme to determine whether restrictions on the production and use of feed materials of animal origin have been complied with.
   In particular, in order to ensure that the ban on feeding processed animal protein to certain animals, as laid down in Annex IV to Regulation (EC) No 999/2001 of the European Parliament and of the Council of 22 May 2001 laying down rules for the prevention, control and eradication of certain transmissible spongiform encephalopathies (1), are effectively applied, Member States should implement a specific control programme based on targeted controls. In accordance with Article 4 of Directive 95/53/EC, that control programme should be based on a risk-based strategy where all stages of production and all types of premises where feed is produced, handled and administered are included. Member States should pay special attention to the definition of criteria that can be related to a risk. The weighting given to each criterion should be proportional to the risk. The inspection frequency and the number of samples analysed in the premises should be in correlation to the sum of weightings allocated to those premises.
   The following indicative premises and criteria should be considered when drawing up a control programme:

               Premises

               Criteria

               Weighting

               Feed mills

               Double-stream feed mills producing ruminant compound feed and non-ruminant compound feed containing derogated processed animal proteins
               Feed mills with previous history, or suspicion, of non-compliance
               Feed mills with a large amount of imported feedingstuffs with high protein content such as fishmeal, soybean meal, corn gluten meal and protein concentrates
               Feed mills with a high production of compound feed
               Risk of cross-contamination resulting from internal operational procedures (dedication of silos, control of the effective separation of lines, control of ingredients, internal laboratory, sampling procedures)

               Border Inspection Posts and other points of entry into the Community

               Large/small amount of imports of feedingstuffs
               Feedingstuffs with high protein content

               Farms

               Home mixers using derogated processed animal proteins
               Farms keeping ruminants and other species (risk of cross feeding)
               Farms purchasing feedingstuffs in bulk

               Dealers

               Warehouses and intermediate storage of feedingstuffs with high protein content
               High volume of bulk feedingstuffs traded
               Dealers in compound feedingstuffs produced abroad

               Mobile mixers

               Mixers producing for both ruminants and non-ruminants
               Mixers with previous history, or suspicion, of non-compliance
               Mixers incorporating feedingstuffs with high protein content
               Mixers with high production of feedingstuffs
               Large number of farms served including farms which keep ruminants

               Means of transportation

               Vehicles used for the transportation of processed animal proteins and feedingstuffs
               Vehicles with previous history, or suspicion, of non-compliance

         As an alternative to these indicative premises and criteria, Member States may forward their own risk assessment to the Commission before 31 March 2005.
   Sampling should be targeted on batches or events where cross-contamination with prohibited processed proteins is most likely (first batch after the transport of feedingstuffs containing animal protein prohibited in this batch, technical problems or changes in production lines, changes in storage bunkers or silos for bulk material).
   In 2005, Member States should focus on the analysis of sugar beet pulp and imported feed materials.
   The minimum number of inspections per year in a Member State should be 10 per 100 000 tonnes of compound feed produced. The minimum number of official samples per year in a Member State should be 20 per 100 000 tonnes of compound feed produced. Pending the approval of alternative methods, microscopic identification and estimation as described in Commission Directive 2003/126/EC of 23 December 2003 on the analytical method for the determination of constituents of animal origin for the official control of feedingstuffs (2) should be used for analysing samples. Any presence of prohibited constituents of animal origin in feedingstuffs should be considered as a breach of the feed ban.
   The results of the inspection programmes should be communicated to the Commission using the following formats.
   Summary of checks concerning feeding restrictions for feed of animal origin (feeding of prohibited processed animal proteins)
   A.   Documented inspections

               Stage

               Number of inspections comprising checks on the presence of processed animal proteins

               Number of breaches based on documentary checks etc. rather than laboratory testing

               Import of feed materials

               Storage of feed materials

               Feed mills

               Home mixers/mobile mixers

               Intermediaries of feedingstuffs

               Means of transport

               Farms keeping non-ruminants

               Farms keeping ruminants

               Others: …………………….

   B.   Sampling and testing of feed materials and compound feedingstuffs for processed animal proteins

               Premises

               Number of official samples tested for processed animal proteins

               Number of non-compliant samples

               Presence of processed animal protein from terrestrial animals

               Presence of processed animal protein from fish

               Feed materials

               Compound feedingstuffs

               Feed materials

               Compound feedingstuffs

               Feed materials

               Compound feedingstuffs

               for ruminants

               for non-ruminants

               for ruminants

               for non-ruminants

               for ruminants

               for non-ruminants

               At import

               Feed mills

               Intermediaries/storage

               Means of transport

               Home mixers/mobile mixers

               On farm

               Others: ………….

   C.   Summary of prohibited processed animal proteins found in samples of feedingstuffs intended for ruminants

               Month of sampling

               Type degree and origin of contamination

               Sanctions (or other measures) applied

               1

               2

               3

               4

               5

               …

      (1)  OJ L 147, 31.5.2001, p. 1. Regulation as last amended by Commission Regulation (EC) No 214/2005 (OJ L 37, 10.2.2005, p. 9).

      (2)  OJ L 339, 24.12.2003, p. 78.
   ANNEX IV
   Individual results of all samples (both compliant and non-compliant) concerning the content of copper and zinc in compound feedingstuffs for pigs

               Type of compound feedingstuff (animal category)

               Trace element (copper or zinc)

               Level found (mg/kg of complete feedingstuff)

               Reason for exceeding the maximum content (1)

               Action taken

      (1)  As concluded after an investigation carried out by the competent authority.


title: Council Recommendation of 10 February 2009 concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (Ninth EDF) for the financial year 2007

text:
               11.2.2009

               EN

               Official Journal of the European Union

               L 40/37

      COUNCIL RECOMMENDATION

   of 10 February 2009
   concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (Ninth EDF) for the financial year 2007
   (2009/114/EC)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community,
   Having regard to the ACP-EC Partnership Agreement, signed in Cotonou on 23 June 2000 (1) and amended by the Agreement signed in Luxembourg on 25 June 2005 (2),
   Having regard to the Internal Agreement on the financing and administration of Community aid under the Financial Protocol to ACP-EC Partnership Agreement (3), hereinafter referred to as the ‘Internal Agreement’, setting up, amongst others, the Ninth European Development Fund (Ninth EDF), and in particular Article 32(3) thereof,
   Having regard to the Financial Regulation of 27 March 2003 applicable to the Ninth European Development Fund (4), and in particular Articles 96 to 103 thereof,
   Having examined the revenue and expenditure account and the balance sheet relating to the operations of the Ninth EDF as at 31 December 2007 and the Court of Auditors′ report concerning the financial year 2007 together with the Commission's replies (5),
   Whereas:

               (1)

               Pursuant to Article 32(3) of the Internal Agreement, the discharge for the financial management of the Ninth EDF is to be given to the Commission by the European Parliament on the recommendation of the Council.

               (2)

               The overall implementation by the Commission of the operations of the Ninth EDF during the financial year 2007 has been satisfactory,

         HEREBY RECOMMENDS that the European Parliament give the Commission a discharge in respect of the implementation of the operations of the Ninth EDF for the financial year 2007.

      Done at Brussels, 10 February 2009.

            For the Council

            The President

         M. KALOUSEK

      (1)  OJ L 317, 15.12.2000, p. 3.

      (2)  OJ L 287, 28.10.2005, p. 4.

      (3)  OJ L 317, 15.12.2000, p. 355.

      (4)  OJ L 83, 1.4.2003, p. 1.

      (5)  OJ C 286, 10.11.2008, p. 273.


Important legal notice

|

52007SC0192

Recommendation for a Council opinion in accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Sweden, 2006-2009  /* SEC/2007/0192 final */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 13.2.2007SEC(2007) 192 finalRecommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Sweden, 2006-2009(presented by the Commission)EXPLANATORY MEMORANDUM1. GENERAL BACKGROUNDThe 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. The 2005 reform of the Pact acknowledged its 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 Stability and Growth 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 Sweden was submitted in December 1998. In accordance with the Regulation, the Council delivered an opinion on it on 8 February 1999 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.2. BACKGROUND FOR THE ASSESSMENT OF THE UPDATED PROGRAMMEThe Commission has examined the most recent update of the convergence programme of Sweden, submitted on 7 December 2006, and has adopted a recommendation for a Council opinion on it (see box for the main points covered by the assessment).In order to set the scene against which the budgetary strategy in the updated convergence programme is assessed, the following paragraphs summarise:1.  the economic and budgetary performance over the last ten years;2.  the most recent assessment of the country’s position under the preventive arm of the Stability and Growth Pact (summary of the Council opinion on the previous update of the convergence programme); and3.  the Commission’s assessment of the November 2006 national reform programme.2.1. Recent economic and budgetary performanceIn the last ten years Swedish economic performance has been strong overall. Real GDP growth has been higher than in the euro area. This growth performance has been characterised by strong productivity developments and growth contributions from net exports. The current account has shown a continuously growing surplus position. Unemployment rates are lower than in the euro area and have fallen, although they are still considered high by domestic standards. Labour market participation rates are relatively high. Inflation is low, reflecting a credible inflation-targeting monetary regime. As elsewhere, real and nominal interest rates have fallen. The public finance position, guided by the national rules-based framework, has been sound, showing average budget surpluses broadly in line with the national 2% surplus objective over the cycle. The general government gross debt ratio has been progressively reduced and is well below the 60% threshold.2.2. The assessment in the Council opinion on the previous programmeOn 24 January 2006, the Council adopted its opinion on the previous update of the convergence programme, covering the period 2005-2009. The Council was of the opinion that the budgetary position was sound and the budgetary strategy provided an example of fiscal policies conducted in compliance with the Stability and Growth Pact.Sweden uses the transition period (expiring in spring 2007) for implementing the Eurostat decision of 2 March 2004 on the sectoral classification of funded pension schemes. Compliance with Eurostat's decision will lower the surplus position by around 1% of GDP each year and will raise the government debt ratio by 0.5 percentage point.2.3. The Commission assessment of the November 2006 national reform programmeThe implementation report of the national reform programme of Sweden, as revised by the new government and provided in the context of the renewed Lisbon strategy for growth and jobs, was submitted on 28 November 2006. Sweden's national reform programme identifies as key challenges/priorities: the need for high levels of labour market participation and hours worked as well as the promotion of a knowledge-based economy with environmentally-efficient production processes.The Commission’s assessment of this programme (adopted as part of its December 2006 Annual Progress Report[2]) is that Sweden is making very good progress in the implementation of its National Reform Programme. The stability-oriented macroeconomic framework is appropriate and performs well. A strong effort is being made to strengthen incentives to work. Additional measures are needed to enhance competition in services.Against the background of progress made, Sweden was encouraged to focus also on the areas of: regulatory measures to increase competition, the impact assessment system, better regulation, labour supply and hours worked, the employment rate of immigrants and young people, and reintegration of people on sickness-related schemes.Box: Main points covered by the assessment As required by Article 5(1) (for stability programmes) and Article 9(1) (for convergence programmes) of Council Regulation (EC) No 1466/97, the assessment covers the following points: whether the economic assumptions on which the programme is based are plausible; the medium-term budgetary objective (MTO) presented by the Member State and whether the adjustment path towards it is appropriate; whether measures being taken and/or proposed to respect that adjustment path are sufficient to achieve the MTO over the cycle; when assessing the adjustment path towards the MTO, whether a higher adjustment effort is made in economic good times, whereas the effort may be more limited in economic bad times, and, for euro-area and ERM II Member States, whether the Member State pursues an annual improvement of the cyclically-adjusted balance, net of one-off and other temporary measures, of 0.5% of GDP as a benchmark to meet its MTO; when defining the adjustment path to the MTO (for Member States that have not yet reached it) or allowing a temporary deviation from the MTO (for Member States that have), the implementation of major structural reforms which have direct long-term cost-saving effects (including by raising potential growth) and therefore a verifiable impact on the long-term sustainability of public finances (subject to the condition that an appropriate safety margin with respect to the 3% of GDP reference value is preserved and that the budgetary position is expected to return to the MTO within the programme period), with special attention for pension reforms introducing a multi-pillar system that includes a mandatory, fully-funded pillar; whether the economic policies of the Member State are consistent with the broad economic policy guidelines. The plausibility of the programme’s macroeconomic assumptions is assessed by reference to the Commission services’ autumn 2006 forecast, using also the commonly agreed methodology for the estimation of potential output and cyclically-adjusted balances. The assessment of consistency with the broad economic policy guidelines is made against the broad economic policy guidelines in the area of public finances as included in the integrated guidelines for the period 2005-2008. The assessment also examines: the evolution of the debt ratio and the outlook for the long-term sustainability of the public finances, which should be given “sufficient attention in the surveillance of budgetary positions” according to the Council report of 20 March 2005 on “Improving the implementation of the Stability and Growth Pact”. A Commission Communication of 12 October 2006 sets out the approach to the assessment of long-term sustainability[3]; the degree of integration with the national reform programme, submitted by Member States in the context of the Lisbon strategy for growth and jobs. In its cover note of 7 June 2005 to the European Council on the broad economic policy guidelines for the period 2005-2008, the ECOFIN Council stated that the national reform programmes should be consistent with the stability and convergence programmes; compliance with the code of conduct[4], which inter alia prescribes a common structure and set of data tables for the stability and convergence programmes. |-  Recommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Sweden, 2006-2009THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community,Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies[5], and in particular Article 9(3) thereof,Having regard to the recommendation of the Commission,After consulting the Economic and Financial Committee,HAS DELIVERED THIS OPINION:4.  On [27 February 2007] the Council examined the updated convergence programme of Sweden, which covers the period 2006 to 2009.5.  The macroeconomic scenario underlying the programme envisages that real GDP growth will slow from 4.0% in 2006 to 3.0% on average over the rest of the programme period, although it will remain at close to potential. Assessed against currently available information, this scenario appears to be based on plausible growth assumptions, with growth in 2006 having possibly been even higher. The programme’s projections for inflation also appear realistic.6.  For 2006, the general government surplus is estimated at 2.8% of GDP in the Commission services' autumn 2006 forecast, against a projected outturn of 0.9% in the previous update of the convergence programme; the difference mainly reflects a base effect from the much higher-than-expected surplus in 2005. On the basis of available cash data it appears that, due both to lower primary expenditure and higher tax revenues, the 2006 surplus is likely to have been higher than the Commission services' forecast.7.  The updated programme confirms that a budget surplus of 2% of GDP on average over the cycle remains the key guiding fiscal rule, supported by multi-annual expenditure ceilings. In the spring 2007 Fiscal Policy Bill, the Government will re-evaluate the present target for the general government surplus to take into account Eurostat's decision on the classification of funded second-pillar pension schemes[6]. After the expiry of the transition period for implementing this decision (spring 2007), the surplus will be lower by approximately 1% of GDP each year and the gross-debt-to-GDP ratio will be revised upward by about 0.5% of GDP. The budgetary strategy presented in the update foresees a decline in the surplus in 2007 (from 3.0% of GDP in 2006 to 2.4%) and thereafter projects a progressive recovery (to 3.1% in 2009); the primary surplus follows a similar path. Both expenditure- and revenue-to-GDP ratios are on a gradually declining trend throughout the programme period. The strategy is somewhat backloaded, with significant tax cuts in 2007 being only partially financed. Compared with the previous update, the projected path for the surplus (an initial decline followed by gradual recovery) is similar, but with higher net lending positions throughout the programme period.8.  The structural surplus (i.e. the cyclically-adjusted surplus net of one-off and other temporary measures), calculated according to the commonly-agreed methodology, is projected to remain above 2% of GDP throughout the programme period. As in the previous update of the convergence programme, the medium-term objective (MTO) for the budgetary position presented in the programme corresponds to the above-mentioned objective of a budgetary surplus of 2% of GDP on average over the business cycle (i.e. in structural terms), which the programme plans to maintain throughout the programme period. As the MTO is significantly more demanding than the minimum benchmark (estimated at a deficit of around 1% of GDP), achieving it should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. The MTO is also significantly more demanding than implied by the debt ratio and average potential output growth in the long term.9.  The risks to the budgetary projections in the programme appear broadly balanced from 2007. The macroeconomic outlook and the tax revenue projections seem to reflect plausible assumptions, in spite of some uncertainty on the future performance of capital gains taxes. The expenditure targets are supported by a good track record owing to the above-mentioned expenditure ceilings.10.  In view of this risk assessment, the budgetary stance in the programme seems sufficient to maintain the MTO throughout the programme period, as envisaged in the programme. In addition, it provides a sufficient safety margin against breaching the 3% of GDP deficit threshold with normal macroeconomic fluctuations during the programme period. There is a risk, however, that the fiscal policy stance implied by the programme may turn out to be pro-cyclical in 2007, during which good times are expected to continue. This would not be in line with the Stability and Growth Pact.11.  Government gross debt is estimated to have fallen to 46.5% of GDP in 2006, well below the 60% of GDP Treaty reference value. The programme projects the debt ratio will continue following a downward path, falling by 13.5 percentage points over the programme period.12.  The long-term budgetary impact of ageing in Sweden is lower than the EU average, with pension expenditure projected to remain relatively stable as a share of GDP over the long term, influenced by the considerable expenditure-reducing impact of the reform of the pension system. The initial budgetary position with a high primary surplus contributes to the reduction of gross debt and the accumulation of assets. Maintaining sound government finances with continued surpluses as planned would contribute to limiting risks to the sustainability of public finances. Overall, Sweden appears to be at low risk with regard to the sustainability of public finances.13.  The convergence programme contains a qualitative assessment of the overall impact of the November 2006 implementation report of the national reform programme within the medium-term fiscal strategy. In addition, it provides systematic information on the direct budgetary costs or savings of the main reforms envisaged in the national reform programme and its budgetary projections seem to take into account the public finance implications of the actions outlined in the national reform programme. The measures in the area of public finances envisaged in the convergence programme seem consistent with those foreseen in the national reform programme. In particular, both programmes envisage the implementation of measures to increase the labour supply.14.  The budgetary strategy in the programme is broadly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008.15.  As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme has some gaps in the required and optional data[7].The overall conclusion is that the medium-term budgetary position is sound and the budgetary strategy provides a good example of fiscal policies conducted in compliance with the Stability and Growth Pact. However, it will be important to ensure that a deterioration of the structural budgetary position in 2007, which is linked to structural reforms aimed at encouraging greater participation in the labour market, will not spill over to subsequent years.Comparison of key macroeconomic and budgetary projections 12005 | 2006 | 2007 | 2008 | 2009 |Real GDP (% change) | CP Dec 2006 | 2.7 | 4.0 | 3.3 | 3.1 | 2.7 |COM Nov 2006 | 2.7 | 4.0 | 3.3 | 3.1 | n.a. |CP Dec 2005 | 2.4 | 3.1 | 2.8 | 2.3 | n.a. |HICP inflation2 (%) | CP Dec 2006 | 1.3 | 1.9 | 2.2 | 1.5 | 1.9 |COM Nov 2006 | 0.8 | 1.5 | 1.6 | 1.8 | n.a. |CP Dec 2005 | 1.5 | 1.5 | 2.0 | 2.0 | n.a. |Output gap (% of potential GDP) | CP Dec 20063 | -0.7 | 0.0 | 0.3 | 0.3 | 0.3 |COM Nov 20067 | -0.5 | 0.2 | 0.5 | 0.6 | n.a. |CP Dec 20053 | -0.4 | -0.1 | 0.1 | -0.1 | n.a. |General government balance (% of GDP) | CP Dec 2006 | 3.0 | 3.0 | 2.4 | 2.7 | 3.1 |COM Nov 2006 | 3.0 | 2.8 | 2.4 | 2.5 | n.a. |CP Dec 2005 | 1.6 | 0.9 | 1.2 | 1.7 | n.a. |Primary balance (% of GDP) | CP Dec 2006 | 4.6 | 4.5 | 4.1 | 4.2 | 4.6 |COM Nov 2006 | 4.6 | 4.5 | 4.1 | 4.3 | n.a. |CP Dec 2005 | 3.2 | 2.5 | 3.0 | 3.6 | n.a. |Cyclically-adjusted balance (% of GDP) | CP Dec 20063 | 3.4 | 3.0 | 2.2 | 2.5 | 3.0 |COM Nov 2006 | 3.3 | 2.7 | 2.1 | 2.1 | n.a. |CP Dec 20053 | 1.8 | 0.9 | 1.1 | 1.7 | n.a. |Structural balance4 (% of GDP) | CP Dec 20065 | 3.0 | 3.0 | 2.2 | 2.5 | 3.0 |COM Nov 20066 | 2.9 | 2.7 | 2.1 | 2.1 | n.a. |CP Dec 2005 | 1.8 | 0.9 | 1.1 | 1.7 | n.a. |Government gross debt (% of GDP) | CP Dec 2006 | 50.3 | 46.5 | 41.5 | 37.4 | 33.0 |COM Nov 2006 | 50.4 | 46.7 | 42.6 | 38.7 | n.a. |CP Dec 2005 | 50.9 | 49.4 | 47.8 | 46.0 | 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 2.0% of GDP in 2005, 2.0% in 2006, 1.3% in 2007, 1.6% in 2008 and 2.0% in 2009, while government gross debt would be 50.9% of GDP in 2005, 47.0% in 2006, 42.0% in 2007, 37.9% in 2008 and 33.5% in 2009. 2 The CP inflation figures are estimated on a December-December basis, whereas the Commission figures are annual averages. This explains the difference between the Commission and HICP figures for 2005 and 2006. The programme also assumes that the HICP will follow UND1X (national consumer price index excluding changes in indirect taxes, subsidies and mortgage interest expenditure) in 2008 and 2009. However, HICP is expected to be 0.5 pp. higher than UND1X inflation in 2007, thereby accentuating the programme's projected drop in HICP inflation in 2008. 3 Commission services calculations on the basis of the information in the programme. 4 Cyclically-adjusted balance (as in the previous rows) excluding one-off and other temporary measures. 5 One-off and other temporary measures taken from the programme (0.4% of GDP in 2005; deficit-reducing). 6 One-off and other temporary measures taken from the Commission services’ autumn 2006 forecast (0.4% of GDP in 2005; deficit-reducing). 7 Based on estimated potential growth of 2.6%, 3.2%, 3.1% and 3.0% respectively in the period 2005-2008. Source: Convergence programme (CP); Commission services’ autumn 2006 economic forecasts (COM); Commission services’ calculations. |[1] OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). All the documents referred to in this text can be found at the following website:http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm[2] Communication from the Commission to the Spring European Council, “Implementing the renewed Lisbon strategy for growth and jobs - A year of delivery” - COM(2006) 816, 12.12.2006.[3] Communication from the Commission to the Council and the European Parliament, “The long-term sustainability of public finances in the EU” - COM(2006) 574, 12.10.2006 - and European Commission, Directorate-General for Economic and Financial Affairs (2006), “The long-term sustainability of public finances in the European Union”, European Economy No 4/2006.[4] “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.[5] OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm[6] See Eurostat News Releases No 30/2004 of 2 March 2004 and No 117/2004 of 23 September 2004.[7] Missing required data include inter alia certain deflators, the tax burden and the growth of relevant foreign markets.


title: Recommendation No U1 of 12 June 2009 concerning the legislation applicable to unemployed persons engaging in part-time professional or trade activity in a Member State other than the State of residence (Text of relevance to the EEA and to the EC/Switzerland Agreement)

text:
               24.4.2010

               EN

               Official Journal of the European Union

               C 106/49

         RECOMMENDATION No U1
   of 12 June 2009
   concerning the legislation applicable to unemployed persons engaging in part-time professional or trade activity in a Member State other than the State of residence
   (Text of relevance to the EEA and to the EC/Switzerland Agreement)
   2010/C 106/15
   THE ADMINISTRATIVE COMMISSION FOR THE COORDINATION OF SOCIAL SECURITY SYSTEMS,
   Having regard to Article 72(a) of Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (1), under which the Administrative Commission is responsible for dealing with all administrative questions or questions of interpretation arising from the provisions of Regulation (EC) No 883/2004 and Regulation (EC) No 987/2009 of the European Parliament and of the Council of 16 September 2009 laying down the procedure for implementing Regulation (EC) No 883/2004 on the coordination of social security systems (2),
   Having regard to Articles 11(3)(a) and 16(1) of Regulation (EC) No 883/2004 and Article 18 of Regulation (EC) No 987/2009,
   Whereas:

               (1)

               Where persons residing in the territory of a Member State are eligible, under the legislation applicable to them, to receive unemployment benefits, they should be allowed to pursue a part-time professional or trade activity in the territory of another Member State, while retaining entitlement to unemployment benefits provided by the State in which they reside.

               (2)

               It is necessary in this situation to determine the legislation applicable to such persons under Article 11 of Regulation (EC) No 883/2004, in order to avert possible conflicts of laws.

               (3)

               Under Article 11(2) of the said Regulation, persons receiving cash benefits because of, or as a consequence of, their activity as an employed or self-employed person shall be considered to be pursuing the said activity.

               (4)

               Under Article 11(3)(a) of the said Regulation, persons pursuing an activity as an employed or self-employed person in a Member State shall be subject to the legislation of that Member State.

               (5)

               In the interests of the persons referred to in recital 1 above, it is desirable that such persons should continue to be subject to the legislation of their country of residence as regards both the payment of contributions due by virtue of their professional or trade activity and the granting of benefits.

               (6)

               Article 16(1) of Regulation (EC) No 883/2004 permits Member States to provide for exceptions to Articles 11 to 15 of the said Regulation.
               Acting in accordance with the conditions laid down in Article 71(2) of Regulation (EC) No 883/2004,

         HEREBY RECOMMENDS TO THE COMPETENT SERVICES AND INSTITUTIONS THAT:

               1.

               The competent authorities of the Member States concerned conclude, or instruct the bodies designated by these competent authorities to conclude, agreements pursuant to Article 16(1) of Regulation (EC) No 883/2004 on the following conditions:
               The agreements should provide that persons receiving unemployment benefit in their State of residence and simultaneously pursuing part-time professional or trade activity in another Member State shall be subject exclusively to the legislation of the former State as regards both the payment of contributions and the granting of benefits.
               The institution providing the unemployment benefit in the State of residence of the person concerned shall inform the institution designated by the competent authority of that State of any part-time professional or trade activity in which the person concerned engages in another Member State.
               The latter institution shall immediately inform the institution designated by the competent authority of the Member State in whose territory the person concerned is engaging in part-time activity that the person remains subject to the legislation of the Member State of residence.

               2.

               Under these agreements, the administrative procedures set out in Articles 19 to 21 of Regulation (EC) No 987/2009 shall apply.

               3.

               The agreement concluded by Member States pursuant to Recommendation No 18 of 28 February 1986, which is annexed hereto, shall remain valid under Regulations (EC) No 883/2004 and (EC) No 987/2009, subject to point 2 of this Recommendation.

               4.

               This Recommendation shall be published in the Official Journal of the European Union. It shall apply from the date of entry into force of Regulation (EC) No 987/2009.

            The Chair of the Administrative Commission

         Gabriela PIKOROVÁ

      (1)  OJ L 166, 30.4.2004, p. 1.

      (2)  OJ L 284, 30.10.2009, p. 1.

      ANNEX
      Agreement of 28 October 1986 between Belgium and Luxembourg on the determination of the legislation applicable to unemployed persons residing in one of the two States, in which State they receive unemployment benefits, while working part-time in the other State.


Important legal notice

|

52005SC0228

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 Cyprus, 2004-2008  /* SEC/2005/0228 final */

	Brussels, 16.2.2005SEC(2005) 228 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 Cyprus, 2004-2008(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, have to submit convergence programmes to the Council and the Commission. In accordance with Article 9 of this Regulation, the Council has 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 consulting the Economic and Financial Committee, the Council is required to deliver 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 ten countries that joined the EU on 1 May 2004 do not participate in the single currency. They committed themselves to submitting their convergence programmes by 15 May 2004 and a first update thereof towards the end of 2004.The first convergence programme of Cyprus, covering the period 2004-2007, was submitted on 24 May 2004 and assessed by the Council on 5 July 2004. Cyprus submitted an update of its convergence programme on 7 December 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, 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]. This evaluation warrants the following assessment:-  The updated Cypriot convergence programme covering the period 2004-2008 was submitted on 7 December, 2004. The programme complies with the data requirements of the “code of conduct on the content and format of stability and convergence programmes”[4] . The text model structure provided in Annex 2 of the code of conduct is followed but the update consists of (the first) six chapters and not seven. Also, the tables indicate CPI inflation instead of HICP inflation. For Table 7 external assumptions for 2008 are missing.-  The update provides the fiscal consolidation path and macro-economic scenario for the period 2004-2008. Projected GDP growth and inflation for 2004-2006 are close to the Commission services autumn 2004 forecast. Medium term projected GDP growth at 4.5% is based on strengthening of domestic private demand accompanied by a rebound in exports (especially tourism, a mainstay of the economy). Other than the scenario discussed above (the “central scenario”), the update contains three alternative scenarios for the macroeconomic and budgetary projections: an “upper”, “lower”, and “higher interest rates” scenario, with different assumptions on average GDP growth (± 0.5 percentage point) and higher interest rates (+0.5 percentage point). The projections given in the so-called “central” scenario can be considered as the reference scenario for assessing budgetary projections because, on the basis of currently available information and given historical growth rates, it seems to reflect plausible growth assumptions whereby the output gap is gradually closed[5].-  Cyprus continues to perform well in terms of inflation, which reached 1.9% in 2004, compared with 4% in 2003 when inflation was pushed by increases in VAT rates and excise duties. Despite a growth rebound from 2004 onward, inflationary pressures are expected to remain subdued with inflation projected to slightly increase to 2.4% in 2005 and then move back toward 2% by 2008. Despite low inflation, long-term interest rates increased in the first half of 2004 and only slightly decreased towards the end of the year. Monetary policy continues to be geared towards price stability through a peg of the Cyprus pound to the euro, and the update envisages keeping the current monetary policy framework, whereby the pound is pegged to the euro in place until the eventual membership in the euro area. The authorities confirmed the intention to enter the euro area as soon as possible.-  The update aims at reducing the government deficit to below the 3% of GDP reference value in 2005, in line with the Council recommendation under Article 104(7). It foresees the general government deficit to sharply decline from 4.8% of GDP in 2004 to 2.9% in 2005 and to decline more gradually thereafter, to 0.9% in 2008. Since interest expenditures are projected to remain constant at around 3.5% of GDP the primary surplus path is similar to that of the deficit, improving from -1.3% in 2004 to 2.5% at the end of the programme period. To this end, the update envisages a series of mostly structural measures to restrain expenditure, which is where most of the slippage occurred in past years, and to increase revenue. Expenditure limits contribute 2.3 percentage points to the overall deficit reduction of almost 4 percentage points of GDP over the period 2004-2008. The adjustment path reflects the government commitment to improve public finances with the intention to adopt the euro by 2007. This is the main factor behind the frontloading of the fiscal adjustment which would reduce the general government budget deficit by 1.9 percentage points of GDP in 2005. It should also be noted that with 2004 GDP growth in line with previous programme projections, through expenditure restraint but also higher revenues the update estimated a 2004 deficit of 4.8% of GDP, instead of 5.2% of GDP in the previous programme. The 2004 deficit is now estimated even lower at 4.3% of GDP, despite delays in a number of measures originally planned for 2004 and now to be implemented in 2005. Compared with the previous programme, the current update broadly confirms the planned adjustment against a broadly unchanged macroeconomic scenario. The fiscal consolidation objective for 2005 is unchanged, despite somewhat lower anticipated GDP growth. At the same time, the downward deficit path for 2006-2007 is slightly tightened further, although projected growth and the planned measures are mostly unchanged.-  The programme objective to reduce the general government deficit by 3.9 percentage points over the period 2004-2008 is ambitious but does not appear unachievable within this time frame, also given the plausible growth assumptions. The risks to the budgetary projections in the update appear broadly balanced. In particular, the main downside macro-economic risks are the economic outlook in the US and EU (notably the UK and Germany, main tourist source countries), tensions in the Middle East, and oil price developments. The main risks for the implementation of the adjustment path will be for 2005, given that the largest deficit reduction is targeted for that year. However, the update reiterates that additional measures will be taken if lower growth would risk leading to a higher deficit in 2005. Fiscal consolidation measures emphasize structural expenditure control, especially on government consumption. Furthermore, the 2004 deficit of 4.8% of GDP (now estimated at 4.3% of GDP), instead of a previously targeted 5.2% of GDP, facilitates the deficit adjustment for 2005. While expenditure should remain under control, the update prudently takes revenues from a number of measures as a safety margin to offset the impact of possible delays in other measures for 2005 and so to maintain the deficit target of 2.9% for 2005 as an “upper limit”. In addition, several of the planned measures for 2005 have now been successfully negotiated with the social partners. All in all, the planned deficit reduction for 2005 looks challenging but increasingly feasible.-  In view of this risk assessment, the budgetary stance in the update seems sufficient to reduce the deficit to below 3% of GDP by 2005. For 2006-2008 the adjustment path risks are smaller, as projected adjustments are less significant. The adjustment path has however been revised downward while it is not clear how this tightening will be achieved, given that planned measures and GDP growth path have broadly remained the same. With this path, budgetary consolidation toward the medium term budgetary position of close to balance would be sustained after the excessive deficit has been corrected.-  The general government debt level in 2004 reached 74.9% of GDP, above the 60% reference value. This peak is followed by a downward path to reach 58.1% of GDP by 2008. The decrease is mainly driven by increasingly positive primary balances and an annual nominal GDP growth above the average nominal interest rate on government debt in 2005-2008. In addition, the gradual phasing out of sinking funds leads to debt-reducing stock-flow adjustments (SFAs) of on average 1.6 percentage point from 2005 onward, following debt-increasing SFAs in 2000-2004. As indicated, the underlying GDP growth scenario is plausible but the projected debt path also depends on the ambitious fiscal consolidation for 2005 and following years.-  The update only briefly spells out the government’s structural reform agenda, which deals with labour, product and capital market policies; fostering a knowledge-based economy; and sustainable development. No estimate of budgetary impact is given for these policies[6]. In the context of preparing for ERMII and eventual participation in EMU, it observes that greater reliance has to be placed on structural policies to maintain competitiveness. However, the report mainly focuses on fiscal policy measures, stating that, alongside structural reform, a fiscal policy strategy is required to achieve sustainable economic growth and real convergence. It refers in this context to the Broad Economic Policy Guidelines (BEPG) as well as the Lisbon strategy. However, the discussion of structural market reform measures remains relatively meagre.-  Cyprus presents some risks with regard to long-term sustainability of the public finances, of which the projected budgetary costs of an ageing population is an important element. A significant sustainability gap arises, even if the planned and necessary budgetary consolidation up to 2007 is fully implemented. The strategy outlined in the update is mainly based on the budgetary consolidation in the next few years and additional reforms of pension and health care system are to be implemented in the future. It is imperative to pursue the reform process in order to reduce the sustainability risks associated with the future evolution of age-related expenditures, together with the planned and necessary budgetary consolidation in the medium term.-  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. In particular, the fiscal consolidation programme aims to reduce the general government deficit in a credible and sustainable way within a multi-annual framework. The fiscal consolidation measures both on the expenditure and revenue side are mostly of a structural nature, and although there is still some uncertainty surrounding the implementation of some of the planned consolidation measures, the deficit objective path, particularly for 2005, is ambitious but does not look implausible.In view of the above assessment and in the light of the recommendations made by the Council under Article 104(7), it would be appropriate for Cyprus to (i) implement with vigour the measures envisaged in the updated convergence programme to bring the deficit below 3% of GDP by 2005 and ensure that budgetary consolidation towards the medium term budgetary position of close to balance or in surplus is sustained after the excessive deficit has been corrected; (ii) ensure that the debt ratio will start to decline from 2005 onward; and (iii) pursue the reform process in the pension and health care system in order to reduce the sustainability risks associated with the future evolution of age-related expenditures, together with the planned and necessary budgetary consolidation in the medium term.Based on this assessment, the Commission has adopted the attached recommendation for a Council Opinion on the updated convergence programme of Cyprus 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 Cyprus, 2004-2008THE 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[7], 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 [8 March 2005] the Council examined the updated convergence programme of Cyprus, which covers the period 2004 to 2008. The programme complies with the data requirements of the revised “code of conduct on the content and format of stability and convergence programmes”.The programme contains four different scenarios for the macroeconomic and budgetary projections: a “central” scenario, an “upper” scenario, “lower” scenario and “higher interest rate” scenario. The so-called “central” scenario is considered as the reference scenario for assessing budgetary projections because, on the basis of currently available information, it seems to reflect plausible growth assumptions. It projects real GDP growth to pick up from 3.6% in 2004 to 4.3% on average over the rest of the programme period. The programme’s projections for inflation also appear realistic.On 5 July 2004, the Council decided that an excessive deficit existed in Cyprus and recommended that this be corrected by 2005. The update aims at reducing the government deficit to below the 3% of GDP reference value in 2005, in line with the Council recommendation under Article 104(7). Compared to the May 2004 convergence programme the update maintains the deficit target for 2005 but sharpens the targets after 2005. It foresees the general government deficit to sharply decline from 4.8% of GDP in 2004 to 2.9% in 2005 and to decline more gradually thereafter, to 0.9% in 2008. Since interest expenditures are projected to remain constant at around 3.5% of GDP the path of the primary balance is similar to that of the overall balance, improving from -1.3% in 2004 to 2.5% at the end of the programme period. To this end, the update envisages a series of mostly structural measures to restrain expenditure and to increase revenue. Expenditure limits contribute 2.3 percentage points to the overall deficit reduction of almost 4 percentage points of GDP over the period 2004-2008. The adjustment path reflects the government commitment to improve public finances with the intention to adopt the euro by 2007. This is the main factor behind the frontloading of the fiscal adjustment which would reduce the general government budget deficit by 1.9 percentage points of GDP in 2005.The risks to the budgetary projections in the update appear broadly balanced. In particular, the main downside macro-economic risks are the economic outlook in the US and the EU (notably the UK and Germany, main tourist source countries), tensions in the Middle East, and oil price developments[8]. The update further indicates that several planned measures for 2005 onward are to be ‘studied’ further, which leaves some uncertainty. On the other hand, the estimated deficit outcome for 2004 has been better than expected. This positive result was achieved despite delays in a number of consolidation measures originally planned for 2004. These are now to be implemented in 2005, the budgetary impact of which is prudently considered as a safety margin for 2005 in case of e.g. delays in other measures, to keep the target of 2.9% of GDP as an “upper limit” while at the same time expenditure is to be kept under strict control. Although expenditure overruns were a main problem in the past, the consolidation measures now emphasize structural expenditure control, especially on government consumption. In addition, several of the planned measures for 2005 have now been successfully negotiated with the social partners. The Commission services autumn 2004 forecast projected a deficit of 3.0% of GDP for 2005, given a slightly lower GDP growth forecast for that year. However, the update reiterates that ‘additional measures’ will be taken if lower growth would risk leading to a higher deficit in 2005. All this would facilitate the adjustment to 2.9% of GDP for 2005. All in all, the planned deficit reduction for 2005 looks challenging but increasingly feasible. For the period 2006-2007 the adjustment path is slightly tightened to reach lower deficits compared to the previous May 2004 programme. However, it is not clear how this tightening will be achieved, given that the planned measures and GDP growth path have broadly remained the same.In view of this risk assessment, the budgetary stance in the programme seems sufficient to reduce the deficit to below 3% of GDP by 2005 and seems to provide a sufficient safety margin against breaching this threshold with normal macroeconomic fluctuations from 2006 onward. It is however not sufficient to ensure that the Stability and Growth Pact’s medium-term objective of a budgetary position of close to balance is achieved within the programme period.The debt ratio is estimated to have reached 74.9% of GDP in 2004, above the 60% of GDP Treaty reference value. The programme projects the debt ratio to decline by 16.8 percentage points over the programme period. The evolution of the debt ratio is partly driven by debt-reducing stock-flow adjustments linked to the gradual phasing out of sinking funds, the accumulation of which had earlier on led to debt-increasing stock flow adjustments.Cyprus presents some risks with regard to long-term sustainability of the public finances, reflected by the projected budgetary costs of an ageing population. The strategy outlined in the update is mainly based on the budgetary consolidation in the next few years and additional reforms of pension and health care system to be implemented in the future. It is imperative to pursue the reform process in order to reduce the sustainability risks associated with the future evolution of age-related expenditures, together with the planned and necessary budgetary consolidation in the medium term.The economic policies outlined in the programme are broadly consistent with the country-specific broad economic policy guidelines in the area of public finances. In particular, the fiscal consolidation programme aims to reduce the general government deficit in a credible and sustainable way within a multi-annual framework. The fiscal consolidation measures both on the expenditure and revenue side are mostly of a structural nature, and although there is still some uncertainty surrounding the implementation of some of the planned consolidation measures, the deficit objective path, particularly for 2005, is ambitious but does not look implausible.* * *In view of the above assessment and in the light of the recommendations made by the Council under Article (104(7), the Council is of the opinion that Cyprus should:(i) implement with vigour the measures envisaged in the updated convergence programme to bring the deficit below 3% of GDP by 2005 and ensure that budgetary consolidation towards the medium term budgetary position of close to balance or in surplus is sustained after the excessive deficit has been corrected;(ii) ensure that the debt ratio will start to decline from 2005 onward; and(iii) pursue the reform process in the pension and health care system in order to reduce the sustainability risks associated with the future evolution of age-related expenditures, together with the planned and necessary budgetary consolidation in the medium term.Comparison of key macroeconomic and budgetary projections2004 | 2005 | 2006 | 2007 | 2008 |Real GDP (% change) | CP Dec2004 | 3.6 | 4.0 | 4.4 | 4.5 | 4.5 |COM Nov 2004 | 3.5 | 3.9 | 4.2 | n.a. | n.a. |CP May 2004 | 3.5 | 4.3 | 4.4 | 4.5 | n.a. |CPI inflation (%) | CP Dec2004 | 2.1 | 2.6 | 2.2 | 2.1 | 2.0 |COM Nov 2004 | 2.4 | 2.2 | 2.1 | n.a. | n.a. |CP May2004 | 2.0 | 2.0 | 2.0 | 2.0 | n.a. |General government balance (% of GDP) | CP Dec2004 | -4.8 | -2.9 | -1.7 | -1.5 | -0.9 |COM Nov 2004 | -5.2 | -3.0 | -2.4 | n.a. | n.a. |CPMay2004 | -5.2 | -2.9 | -2.2 | -1.6 | n.a. |Primary balance (% of GDP) | CP Dec2004 | -1.3 | 0.7 | 1.8 | 2.0 | 2.5 |COM Nov 2004 | -1.8 | 0.5 | 1.1 | n.a. | n.a. |CP May2004 | -1.6 | 0.7 | 1.4 | 2.0 | n.a. |Government gross debt (% of GDP) | CP Dec2004 | 74.9 | 71.9 | 69.2 | 65.7 | 58.1 |COM Nov 2004 | 72.6 | 72.4 | 69.4 | n.a. | n.a. |CP May2004 | 75.2 | 74.8 | 71.5 | 68.4 | n.a. |Sources: Convergence programme (CP); Commission services autumn 2004 economic forecasts (COM); Commission services calculations. |[1] OJ L 209, 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 and convergence programmes, endorsed by the ECOFIN Council on 10.7.2001.[3] COM(2002) 668, 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] It should be noted at the outset that future economic developments in Cyprus remain subject to unusual uncertainty. In case of future reunification, the economic situation of the entire island would fundamentally shift.[6] In the 2003 PEP, the indicated budgetary costs of structural reforms were not significant, amounting to around 0.4% of GDP over the period 2003-2006.[7] 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.[8] It should also be noted that future economic developments in Cyprus remain subject to unusual uncertainty: In case of reunification, the economic situation of the entire island would fundamentally shift.


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

text:
               18.8.2016

               EN

               Official Journal of the European Union

               C 299/7

         COUNCIL RECOMMENDATION
   of 12 July 2016
   on the 2016 National Reform Programme of Spain and delivering a Council opinion on the 2016 Stability Programme of Spain
   (2016/C 299/02)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,
   Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 5(2) thereof,
   Having regard to Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (2), and in particular Article 6(1) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the resolutions of the European Parliament,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Social Protection Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

               On 26 November 2015, the Commission adopted the Annual Growth Survey, marking the start of the 2016 European Semester for economic policy coordination. The priorities of the Annual Growth Survey were endorsed by the European Council on 17-18 March 2016. On 26 November 2015, on the basis of Regulation (EU) No 1176/2011, the Commission adopted the Alert Mechanism Report, in which it identified Spain as one of the Member States for which an in-depth review would be carried out. On the same day, the Commission also adopted a recommendation for a Council Recommendation on the economic policy of the euro area. This Recommendation was endorsed by the European Council on 18-19 February 2016 and adopted by the Council on 8 March 2016 (3). As a country whose currency is the euro and in view of the close interlinkages between the economies in the economic and monetary union, Spain should ensure the full and timely implementation of the Recommendation.

               (2)

               The 2016 country report for Spain was published on 26 February 2016. It assessed Spain's progress in addressing the country-specific recommendations adopted by the Council on 14 July 2015 and Spain's progress towards its national Europe 2020 targets. It also included the in-depth review under Article 5 of Regulation (EU) No 1176/2011. On 8 March 2016, the Commission presented the results of the in-depth review. The Commission analysis leads it to conclude that Spain is experiencing macroeconomic imbalances. In particular, high external and internal debt, both public and private, continue to constitute vulnerabilities in a context of high unemployment. The need for action to reduce the risk of adverse effects on the Spanish economy and, given its size, of negative spillovers to the economic and monetary union, is important. Despite improvement in the current account balance, net external liabilities are not projected to reach prudent levels in the short term. Private sector deleveraging is on track, supported partly by favourable growth conditions, but deleveraging needs are large and public debt remains high. Measures have been taken in the financial sector and in corporate and personal insolvency frameworks, but further action is needed on innovation and skills and on compliance with the Stability and Growth Pact.

               (3)

               On 29 April 2016, Spain submitted its 2016 National Reform Programme and on 30 April 2016 it submitted its 2016 Stability Programme. In order to take account of their interlinkages, the two programmes have been assessed at the same time.

               (4)

               Relevant country-specific recommendations have been addressed in the programming of the European Structural and Investment Funds for the 2014-2020 period. As foreseen in Article 23 of Regulation (EU) No 1303/2013 of the European Parliament and of the Council (4), where it is necessary to support the implementation of relevant Council recommendations, the Commission may request a Member State to review and propose amendments to its Partnership Agreement and relevant programmes. The Commission has provided further details on how it would make use of this provision in guidelines on the application of the measures linking effectiveness of the European Structural and Investment Funds to sound economic governance.

               (5)

            Spain is currently in the corrective arm of the Stability and Growth Pact. In its 2016 Stability Programme, Spain plans to achieve headline deficit targets of 3,6 % of GDP in 2016 and 2,9 % of GDP in 2017. The excessive deficit is thus planned to be corrected one year later than currently recommended by the Council, the fiscal effort and headline targets having been missed in 2014 and 2015. These targets assume the full implementation of 0,4 % of GDP in permanent savings at central and regional government level announced in response to the Autonomous Commission recommendation of 9 March 2016. The deficit is planned to continue declining thereafter, to 1,6 % of GDP in 2019. However, the medium-term objective of a balanced budgetary position in structural terms is not planned to be reached within the time horizon of the Stability Programme. In particular, the recalculated structural balance is projected to improve only marginally in 2016 and 2017 to around -2
                   % of GDP, and decline slowly to reach -2
                   % of GDP in 2019. The government debt-to-GDP ratio declined only marginally in 2015 to 99,2 % of GDP and is expected to decline slightly in 2016 and 2017 and more decisively in the following two years, to 96 % of GDP in 2019, as the primary balance turns into a surplus. The macroeconomic scenario underpinning these budgetary projections is plausible for 2016 and 2017 and somewhat optimistic thereafter; it has been endorsed by Spain's Independent Fiscal Institution (AIReF). The Commission 2016 spring forecast projects the deficit at 3,9 % of GDP in 2016 and 3,1 % of GDP in 2017, above the headline targets in the Stability Programme. Spain is thus not projected to correct the excessive deficit by 2016 as recommended by the Council. Risks to the deficit targets in the programme largely stem from uncertainties surrounding the implementation of the savings from the March/April 2016 measures. As the structural deficit is projected to slightly increase in both years, the fiscal effort is not in line with the requirements of the Stability and Growth Pact. Based on its assessment of the Stability Programme and taking into account the Commission's 2016 spring forecast, the Council is of the opinion that there is a risk that Spain will not comply with the provisions of the Stability and Growth Pact. Therefore, further measures are needed to ensure compliance in 2016 and 2017.

               (6)

               Pursuant to Article 10(1) of Council Regulation (EC) No 1467/97 (5), the Commission will regularly monitor the implementation of action taken by Spain in response to the last recommendation made by the Council under Article 126(7) TFEU: the Commission will therefore recommend to the Council the appropriate steps to be taken in the framework of the excessive deficit procedure.

               (7)

               Since 2012, Spain's fiscal framework has been strengthened in order to, among other things, prevent deviations and ensure compliance by all government levels with their respective deficit, debt and expenditure targets. In addition, a rule for application (on a voluntary basis and, in 2016, made compulsory for most regions) at regional level was approved in mid-2015 to limit growth in expenditure on healthcare and pharmaceutical products, and an agreement between the Government and the pharmaceutical industry was signed in November 2015 to help rationalise spending on pharmaceuticals. Despite this, in 2015, most regions as well as the social security sector fell significantly short of meeting their domestic fiscal targets. The stability law's expenditure rule was not observed by the central, regional and local government subsectors and growth in expenditure of pharmaceutical products, namely in hospitals, strengthened further, even excluding the impact of new anti-hepatitis C treatments.

               (8)

               In the field of public procurement, Spain performs well concerning the quality of the legislation and the availability of review procedures. Efforts have been made to rationalise public purchasing, in particular via joint procurement mechanisms. However, there are disparities in the implementation of public procurement across administrations and insufficient control mechanisms hinder the correct application of public procurement rules. The number of presumed breaches of EU public procurement legislation brought to the Commission's attention in recent years has been relatively high. Furthermore, the Spanish Court of Auditors has pointed to some weaknesses such as the frequent use of the negotiated procedure without publication, the repeated modification of contracts, the splitting of contracts into smaller ones and the insufficient precision and clarity of some tender documents and administrative decisions.

               (9)

               Spain has made substantial progress in restructuring the financial sector. The law on savings banks to strengthen their governance and reduce controlling stakes held by banking foundations has been implemented. The implementation of plans for restructuring state-aided banks is well advanced. The Bank of Spain has amended the existing accounting regime for credit institutions and adopted a new framework for SAREB, the Spanish asset management company. The new framework will allow SAREB to achieve a proper treatment of impairments and help in adapting its deleveraging policies to credible market assumptions.

               (10)

               Labour market reforms undertaken in recent years have made employment more responsive to growth and job creation has resumed, supported by increased flexibility and continued wage moderation. Collective agreements have been supportive of this trend, also owing to the inter-professional agreement signed in June 2015. The recent increase in overall employment has been driven mainly by temporary contracts, although the number of newly signed open-ended contracts is slowly rising. However, the take-up of incentives for new permanent hiring remains limited, and the proportion of temporary workers remains one of the highest in the Union, while the opportunities for temporary workers to move to a permanent contract remain low. The short duration of temporary contracts limits incentives to invest in human capital, hampering productivity growth. Although decreasing rapidly, unemployment remains very high, in particular among young people and its average duration is also very high. Persistently high long-term unemployment implies that unemployment risks becoming entrenched, negatively affecting working and social conditions. Nearly 60 % of the long-term unemployed are low-skilled, which calls for appropriate active and passive labour market and training policies to tackle pervasive skills mismatches and prevent skills depreciation among this group. Interaction with employers in the design of training programmes is still weak..

               (11)

               The effectiveness of activation and active labour market measures depends heavily on the capacity of employment services to design and offer individualised support to beneficiaries. The implementation of recent reforms of active labour market policies is progressing slowly and the capacity of the public employment services to provide effective, individualised counselling and job search assistance is still limited. Cooperation between the regional public employment services and private placement agencies remains limited. Moreover, cooperation between employment and social services is uneven across regions, hampering the provision of coordinated assistance for those further away from the labour market, in particular minimum income beneficiaries. There are significant disparities across regions as regards income support schemes, for example in delivery arrangements, eligibility requirements, coverage and adequacy, while difficulties in transferring social benefits hamper inter-regional job mobility. In addition, information about the transition to employment from minimum income schemes is quite limited. Spain is currently preparing a map of national and regional income support schemes in the country, covering national and regional levels. While some measures have been introduced, the effectiveness of family and housing benefits in reducing poverty remains limited, and the lack of adequate and affordable child care and long-term care provision discourages women, in particular, from taking up a job.

               (12)

               The increasingly rapid change in the sectoral composition of employment that Spain has been witnessing since 2008 has been accompanied by an increase in skills mismatches. The low overall skills level constrains the transition towards higher value-added activities and hampers productivity growth. Despite a high level of tertiary education attainment, skills supply is not sufficiently aligned with labour market needs and employability rates for recent tertiary graduates are among the lowest in Europe, with a significant proportion employed in jobs that do not require a university degree. Furthermore, despite a slight improvement over the past five years, partly supported by initiatives to increase business representation on university governing boards, cooperation between universities and businesses remains weak. The reduced mobility of academics, the rigidity of the university governance system and the administrative barriers faced by the Offices for the Transfer of Research outcomes (Oficinas de transferencia de resultados de investigación) compound obstacles to closer cooperation.

               (13)

               Research and innovation policy in Spain faces several challenges. Interaction between public and private research is weak. Spain's R & D intensity (spending on R & D relative to GDP) and innovation performance keeps declining, against the backdrop of a relatively low number of innovative firms and limited incentives for collaboration between public research and business. Spain underperforms in respect of most business innovation indicators. The gap on spending on R & D intensity compared to the Union as a whole is especially significant as regards investment in R & D by the private sector (0,6 % in Spain compared to 1,3 % in the Union as a whole). Venture capital is still not widely used in Spain, in particular at seed stage. Weak coordination of R&I policies in Spain and a fragmented regional landscape of bodies and programmes to promote innovation activities and foster science-business cooperation create significant challenges for businesses, especially for smaller firms. Low business involvement in innovation activities could point to a lack of absorptive capacity, innovation-friendly framework conditions and incentives. As highlighted in the 2014 ERAC (European Research Area Committee) Peer Review of the Spanish Research and Innovation System, most successful public research systems are driven by higher degrees of evaluation and accountability than are found in Spain. In this context, the allocation of public institutional funding for universities and public research bodies is usually not based on R&I performance, thus reducing the incentives to improve the quality and relevance of scientific outputs.

               (14)

               The small average size of Spanish firms helps explain the economy's persistently low productivity. Firm growth, combined with improvements in human capital, innovation, technology, access to finance and efficient justice could spur aggregate productivity. In 2015, business investment strengthened, underpinned by dynamic demand conditions, low borrowing costs and ongoing balance sheet repair by the corporate sector and households. Spain has taken various measures to ease business growth. For example, a recent law on business financing is expected to facilitate access to finance for small and medium-sized enterprises (SMEs). Furthermore, prior assessment of the potential impact of new legislation on SMEs has now become compulsory. However, the time and number of permits required for starting up a business and launching certain economic activities remains relatively high.

               (15)

               Spain's considerable differences across regions in regulatory practices, including on business licencing, may limit firms' capacity to grow. The law on market unity aims to reduce barriers to access to and the exercise of economic activities across Spanish regions and to improve regulation. It could potentially have a significant impact on removing barriers to investment and facilitate business licensing, business operations and company growth. The implementation of the law on market unity requires full involvement of all administrations. However, in its third year of application, it is being implemented slowly by regional governments. Likewise, the benefits of the retail sector reform of 2014 depend on regional governments adopting the necessary implementing acts. Furthermore, tackling obstacles to access to the professional services sector is likely to improve productivity in other sectors that use those inputs. Apart from the transposition of the Services Directive into Spanish law, there has been no progress on a horizontal reform of the regulatory framework for regulated professions and professional associations, other than in the area of professional board certification of projects. The reform planned in successive National Reform Programmes was not adopted. This reform aimed at defining the professions requiring registration in a professional organisation, increasing transparency and accountability of professional bodies, opening up unjustified reserved activities and safeguarding market unity in the access to and exercise of professional services in Spain.

               (16)

               In the context of the European Semester, the Commission has carried out an analysis of Spain's economic policy and published it in the 2016 country report. It has also assessed the Stability Programme and the National Reform Programme and the follow-up given to the recommendations addressed to Spain in previous years. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Spain but also their compliance with EU rules and guidance, given the need to strengthen the EU's overall economic governance by providing EU-level input into future national decisions. The recommendations under the European Semester are reflected in recommendations (1) to (4) below.

               (17)

               In the light of this assessment, the Council has examined the Stability Programme, and its opinion (6) is reflected in particular in recommendation (1) below.

               (18)

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

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

               1.

               Ensure a durable correction of the excessive deficit, in accordance with the relevant decisions or recommendations under the excessive deficit procedure, by taking the necessary structural measures and by using all windfall gains for deficit and debt reduction. Implement at all government levels the tools set out in the fiscal framework law. Enhance control mechanisms for public procurement and coordination of procurement policies across government levels.

               2.

               Take further measures to improve labour market integration, by focusing on individualised support and strengthening the effectiveness of training measures. Enhance the capacity of regional employment services and reinforce their coordination with social services. Address gaps and disparities in minimum income schemes and improve family support schemes, including access to quality childcare and long-term care.

               3.

               Take further measures to improve the labour market relevance of tertiary education, including by incentivising cooperation between universities, firms and research institutions. Increase performance-based funding of public research bodies and universities and foster R&I investment by the private sector.

               4.

               Accelerate the implementation of the law on market unity at regional level. Ensure implementation by the autonomous regions of the reform measures adopted for the retail sector. Adopt the planned reform on professional services and associations.

      Done at Brussels, 12 July 2016.

            For the Council

            The President

         P. KAŽIMÍR

      (1)  OJ L 209, 2.8.1997, p. 1.

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

      (3)  OJ C 96, 11.3.2016, p. 1.

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

      (5)  Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (OJ L 209, 2.8.1997, p. 6).

      (6)  Under Article 5(2) of Regulation (EC) No 1466/97.


Important legal notice

|

52007PC0214

Recommendation for a Council Decision concerning the accession of Bulgaria and Romania to the Convention of 17 June 1998, drawn up on the basis of Article K.3 of the Treaty on European Union, on driving disqualifications  /* COM/2007/0214 final - CNS 2007/0075 */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 25.4.2007COM(2007) 214 final2007/0075 (CNS)Recommendation for aCOUNCIL DECISIONconcerning the accession of Bulgaria and Romania to the Convention of 17 June 1998, drawn up on the basis of Article K.3 of the Treaty on European Union, on driving disqualifications(presented by the Commission)EXPLANATORY MEMORANDUMThe 2005 Act of accession of Bulgaria and Romania[1] has introduced a simplified system for the accession of Bulgaria and Romania to the conventions (and protocols) concluded by the Member States on the basis of Art. 34 TEU (previously Art. K.3 TEU) or Art. 293 EC. It is indeed not anymore necessary, as in the past, to negotiate and conclude specific accession protocols to these conventions (which would have implied ratification by 27 States): Article 3(3) of the Act provides simply that Bulgaria and Romania accede to these conventions and protocols by virtue of the Act of Accession.Article 3(3) and 3(4) of the Act of Accession provide that, to that effect, the Council shall adopt a decision in order to determine the date on which these conventions shall enter into force for Bulgaria and Romania and to make all the necessary adjustments to these conventions required by reason of the accession of the two new Member States (which would include, in any event, the adoption of the conventions in the Bulgarian and Romanian languages, so that these versions can be "equally authentic"). The Council shall act on a recommendation of the Commission, after consulting the European Parliament.Annex I to the Act of Accession gives the list of the seven conventions and protocols concerned in the Justice and Home Affairs area.The list includes the Convention of 17 June 1998, drawn up on the basis of Article K.3 of the Treaty on European Union, on driving disqualifications.This Commission Recommendation for a Council Decision is intended to make the adjustments required by reason of the accession of Bulgaria and Romania to the aforementioned Convention, in accordance with Article 3(4) of the Act of Accession.2007/0075 (CNS)Recommendation for aCOUNCIL DECISIONconcerning the accession of Bulgaria and Romania to the Convention of 17 June 1998, drawn up on the basis of Article K.3 of the Treaty on European Union, on driving disqualificationsTHE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty on European Union,Having regard to the Treaty of Accession of Bulgaria and Romania,Having regard to the Act of Accession of Bulgaria and Romania (hereinafter referred to as the "Act of Accession"), and in particular Article 3 (4) thereof,Having regard to the recommendation from the Commission[2],Having regard to the opinion of the European Parliament[3],Whereas:1.  The Convention of 17 June 1998, drawn up on the basis of Article K.3 of the Treaty on European Union, on driving disqualifications[4] (hereinafter referred to as "the Convention on driving disqualification") was signed at Luxembourg on 17 June 1998 and has not yet entered into force.2.  Article 3 (3) of the Act of Accession provides that Bulgaria and Romania accede to the conventions and protocols concluded between the Member States, listed in Annex I to the Act of Accession, which comprises, inter alia , the Convention on Driving Disqualifications. They are to enter into force in relation to Bulgaria and Romania on the date determined by the Council.3.  In accordance with Article 3 (4) of the Act of Accession the Council is to make all adjustments required by reason of accession to those conventions and protocols,HAS DECIDED AS FOLLOWS:Article 1The Convention on driving disqualifications shall enter into force in relation to Bulgaria and Romania on the date on which it enters into force for the original signatory Member States.Article 2The text of the Convention on driving disqualification drawn up in the Bulgarian and Romanian languages and annexed to this Decision shall be authentic under the same conditions as the other texts of that Convention.Article 3This Decision shall take ef fect on the day following that of its publication in the Official Journal of the European Union .Done at Brussels,For the CouncilThe PresidentANNEX Text of the Convention of 17 June 1998, drawn up on the basis of Article K.3 of the Treaty on European Union, on driving disqualifications in the Bulgarian and Romanian languages.[1] OJ 2005, L 157, p. 203.[2] OJ C […], […], p. […].[3] OJ C […], […], p. […].[4] OJ C 216, 10.7.1998, p. 1.