title: Recommendation of the EFTA Surveillance Authority No 194/04/COL of  14 July 2004  on relevant product and service markets within the electronic communications sector susceptible to  ex ante  regulation in accordance with Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communication networks and services, as incorporated into the Agreement on the European Economic Area

text:
               27.4.2006

               EN

               Official Journal of the European Union

               L 113/18

      RECOMMENDATION OF THE EFTA SURVEILLANCE AUTHORITY

   No 194/04/COL
   of 14 July 2004
   on relevant product and service markets within the electronic communications sector susceptible to ex ante regulation in accordance with Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communication networks and services, as incorporated into the Agreement on the European Economic Area
   THE EFTA SURVEILLANCE AUTHORITY,
   Having regard to the Agreement on the European Economic Area (1),
   Having regard to the Agreement between the EFTA States on the establishment of a Surveillance Authority and a Court of Justice, and in particular Article 5(2)(b) thereof,
   Having regard to the Act referred to at point 5cl of Annex XI to the EEA Agreement and as adapted to the Agreement by Protocol 1 thereto and by the sectoral adaptations contained in Annex XI to that Agreement, Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communication networks and services (2), and in particular Article 15(1) thereof,
   Whereas:

               (1)

               Directive 2002/21/EC (hereinafter the Framework Directive), establishes a new legislative framework for the electronic communications sector that seeks to respond to convergence trends by covering all electronic communications networks and services within its scope. The aim is to reduce ex ante sector-specific rules progressively as competition in the market develops.

               (2)

               Article 15 of the Framework Directive provides that the EFTA Surveillance Authority (hereinafter the Authority) shall, after public consultation and consultation with national regulatory authorities (NRAs) in the EFTA States adopt a recommendation on relevant product and service markets.

               (3)

               The European Commission has issued Recommendation 2003/311/EC on relevant product and service markets within the electronic communications sector susceptible to ex ante regulation in accordance with Directive 2002/21/EC (3).

               (4)

               In order to ensure homogenous application of EEA law throughout the European Economic Area, the Authority aligns this Recommendation as closely as possible with the respective Commission Recommendation.

               (5)

               The purpose of this Recommendation is to identify those product and service markets in which ex ante regulation may be warranted. However, this first Recommendation has to be consistent with the transition from the 1998 regulatory framework to the new regulatory framework. Directive 2002/19/EC of the European Parliament and of the Council on access to, and interconnection of, electronic communications networks and associated facilities (4), hereinafter the Access Directive, and Directive 2002/22/EC of the European Parliament and of the Council on universal service and users' rights relating to electronic communications networks and services (5), hereinafter the Universal Service Directive, already identify specific market areas which need to be analysed by NRAs in addition to the markets listed in this Recommendation. In accordance with the Framework Directive, it is for NRAs to define relevant geographic markets within their territory.

               (6)

               Under the 1998 regulatory framework, several areas in the telecommunications sector are subject to ex ante regulation. These areas have been delineated in the applicable directives, but are not always ‘markets’ within the meaning of EEA competition law and practice. Annex I of the Framework Directive provides a list of such market areas to be included in the initial version of the Recommendation.

               (7)

               As the title of Annex I of the Framework Directive makes clear, all the market areas listed therein need to be included in the initial version of the Recommendation in order that NRAs can carry out a review of existing obligations imposed under the 1998 regulatory framework.

               (8)

               Article 15(1) of the Framework Directive requires the Authority to define markets in accordance with the principles of EEA competition law. The Authority has therefore defined markets (corresponding to the market areas listed in Annex I of the Framework Directive) in accordance with EEA competition law principles.

               (9)

               There are in the electronic communications sector at least two main types of relevant markets to consider: markets for services or products provided to end users (retail markets), and markets for the inputs which are necessary for operators to provide services and products to end users (wholesale markets). Within these two types of markets, further market distinctions may be made depending on demand and supply side characteristics.

               (10)

               The starting point for the definition and identification of markets is a characterisation of retail markets over a given time horizon, taking into account demand-side and supply-side substitutability. Having characterised and defined retail markets which are markets involving the supply and demand of end users, it is then appropriate to identify relevant wholesale markets which are markets involving the demand of products of, and supply of products to, a third party wishing to supply end users.

               (11)

               Defining markets in accordance with the principles of EEA competition law means that some of the market areas in Annex I of the Framework Directive comprise a number of separate individual markets on the basis of demand side characteristics. This is the case of products for retail access to the public telephone network at a fixed location and for telephone services provided at a fixed location. The market area in Annex I referring to wholesale leased lines is defined as separate markets for wholesale terminating segments and wholesale trunk segments on the basis of both demand side and supply side characteristics.

               (12)

               In identifying markets in accordance with EEA competition law principles, recourse should be had to the following three criteria. The first criterion is the presence of high and non-transitory entry barriers whether of structural, legal or regulatory nature. However, given the dynamic character and functioning of electronic communications markets, possibilities to overcome barriers within a relevant time horizon have also to be taken into consideration when carrying out a prospective analysis to identify the relevant markets for possible ex ante regulation. Therefore the second criterion admits only those markets the structure of which does not tend towards effective competition within the relevant time horizon. The application of this criterion involves examining the state of competition behind the barriers of entry. The third criterion is that application of EEA competition law alone would not adequately address the market failure(s) concerned.

               (13)

               In particular, as far as entry barriers are concerned, two types of entry barriers are relevant for the purpose of this Recommendation: structural barriers and legal or regulatory barriers.

               (14)

               Structural barriers to entry result from original cost or demand conditions that create asymmetric conditions between incumbents and new entrants impeding or preventing market entry of the latter. For instance, high structural barriers may be found to exist when the market is characterised by substantial economies of scale and/or economies of scope and high sunk cost. To date, such barriers can still be identified with respect to the widespread deployment and/or provision of local access networks to fixed locations. A related structural barrier can also exist where the provision of service requires a network component that cannot be technically duplicated or only duplicated at a cost that makes it uneconomic for competitors.

               (15)

               Legal or regulatory barriers are not based on economic conditions, but result from legislative, administrative or other state measures that have a direct effect on the conditions of entry and/or the positioning of operators on the relevant market. Examples are legal or regulatory barriers preventing entry into a market where there is a limit on the number of undertakings that have access to spectrum for the provision of underlying services. Other examples of legal or regulatory barriers are price controls or other price related measures imposed on undertakings, which affect not only entry but also the positioning of undertakings on the market.

               (16)

               Entry barriers may also become less relevant with regard to innovation-driven markets characterised by ongoing technological progress. In such markets, competitive constraints often come from innovative threats from potential competitors that are not currently in the market. In such innovation-driven markets, dynamic or longer term competition can take place among firms that are not necessarily competitors in an existing ‘static’ market. This Recommendation does not identify markets where entry barriers are not expected to persist over a foreseeable period.

               (17)

               Even when a market is characterised by high barriers to entry, other structural factors in that market may mean that the market tends towards an effectively competitive outcome within the relevant time horizon. This may for instance be the case in markets with a limited, but sufficient, number of undertakings having diverging cost structures and facing price-elastic market demand. There may also be excess capacity in a market that would allow rival firms to expand output very rapidly in response to any price increase. In such markets, market shares may change over time and/or falling prices may be observed.

               (18)

               The decision to identify a market as justifying possible ex ante regulation should also depend on an assessment of the sufficiency of EEA competition law in reducing or removing such barriers or in restoring effective competition. Furthermore, new and emerging markets, in which market power may be found to exist because of ‘first-mover’ advantages, should not in principle be subject to ex ante regulation.

               (19)

               In undertaking periodic reviews of the markets identified in this Recommendation, the three criteria should be used. These criteria should be applied cumulatively, so that failing any one of them means that the market should not be identified in subsequent recommendations. Thus, whether an electronic communications market continues to be identified by subsequent versions of the Recommendation as justifying possible ex ante regulation would depend on the persistence of high entry barriers, on the second criterion measuring the dynamic state of competitiveness and thirdly on the sufficiency of EEA competition law (absent ex ante regulation) to address persistent market failures. A market could also be removed from a recommendation once there is evidence of sustainable and effective competition on that market within the European Economic Area, provided that the removal of existing regulation obligations would not reduce competition on that market.

               (20)

               The Annex to this Recommendation indicates how each market in the Recommendation is linked to the market areas in Annex I to the Framework Directive. When reviewing existing obligations imposed under the previous regulatory framework, in order to determine whether to maintain, amend or withdraw them, NRAs should undertake the analysis on the basis of the markets identified in this Recommendation, in order to give effect to the requirement that market definition for the purposes of ex ante regulation should be based on EEA competition law principles. Pending the first market analysis by NRAs under the new regulatory framework, existing obligations remain in force.

               (21)

               The identification of markets in this Recommendation is without prejudice to markets that may be defined in specific cases under EEA competition law.

               (22)

               The range of different network topologies and technologies deployed across the European Economic Area means that in some cases NRAs must decide the precise boundaries between, or elements within, particular markets identified in the Recommendation, while adhering to EEA competition law principles. NRAs may identify markets that differ from those of the Recommendation, provided they act in accordance with Article 7 of the Framework Directive. Since the imposition of ex ante regulation on a market could affect trade between the Contracting Parties to the EEA Agreement as described in recital 38 of the Framework Directive, the Authority considers that the identification of any market that differs from those of the Recommendation are likely to be subject to the appropriate procedure in Article 7 of the Framework Directive. Failure to notify a market which affects trade between the contracting parties to the EEA Agreement may result in infringement proceedings being taken. Any market identified by NRAs should be based on the EEA competition principles developed in the EFTA Surveillance Authority Notice on the definition of relevant market for the purposes of EEA competition law (6), and be consistent with the Authority's Guidelines on market analysis and the assessment of significant market power and satisfy the three criteria set out above. Should an NRA consider that demand and supply patterns may justify an alternative market definition of a market listed in this Recommendation, it should then follow the appropriate procedures set out in Article 6 and 7 of the Framework Directive.

               (23)

               The fact that this Recommendation identifies those product and service markets in which ex ante regulation may be warranted does not mean that regulation is always warranted or that these markets will be subject to the imposition of regulatory obligations set out in the specific Directives. Regulation will not be warranted if there is effective competition on these markets. In particular, regulatory obligations must be appropriate and be based on the nature of the problem identified, proportionate and justified in the light of the objectives laid down in the Framework Directive, in particular maximising benefits for users, ensuring no distortion or restriction of competition, encouraging efficient investment in infrastructure and promoting innovation, and encouraging efficient use and management of radio frequencies and numbering resources.

               (24)

               This Recommendation has been subject to a public consultation and to consultation with NRAs and national competition authorities,

         HAS ADOPTED THIS RECOMMENDATION:

               1.

               In defining relevant markets in accordance with Article 15(3) of the Act referred to at point 5cl of Annex XI to the EEA Agreement and as adapted to the Agreement by Protocol 1 thereto and by the sectoral adaptations contained in Annex XI to that Agreement, Directive 2002/21/EC of the European Parliament and of the Council on a common regulatory framework for electronic communication networks and services, national regulatory authorities are recommended to analyse the product and service markets identified in the Annex.

               2.

               This Recommendation is addressed to the EFTA States.

      Done at Brussels, 14 July 2004.

            For the EFTA Surveillance Authority

         Hannes HAFSTEIN

            President

      (1)  Hereinafter referred to as the EEA Agreement.

      (2)  OJ L 108, 24.4.2002, p. 33.

      (3)  OJ L 114, 8.5.2003, p. 45.

      (4)  OJ L 108, 24.4.2002, p. 7, as referred to at point 5cj of Annex XI to the EEA Agreement and as adapted to the Agreement by Protocol 1 thereto and by the sectoral adaptations contained in Annex XI to that Agreement.

      (5)  OJ L 108, 24.4.2002, p. 51, as referred to at point 5cm of Annex XI to the EEA Agreement and as adapted to the Agreement by Protocol 1 thereto and by the sectoral adaptations contained in Annex XI to that Agreement.

      (6)  OJ L 200, 16.7.1998, p. 48 and EEA Supplement to the OJ No 28, 16.7.1998, p. 3.

      ANNEX
      Retail level

                  1.

                  Access to the public telephone network at a fixed location for residential customers.

                  2.

                  Access to the public telephone network at a fixed location for non-residential customers.

                  3.

                  Publicly available local and/or national telephone services provided at a fixed location for residential customers.

                  4.

                  Publicly available international telephone services provided at a fixed location for residential customers.

                  5.

                  Publicly available local and/or national telephone services provided at a fixed location for non-residential customers.

                  6.

                  Publicly available international telephone services provided at a fixed location for non-residential customers.
                  These six markets are identified for the purpose of analysis in respect of Article 17 of the Universal Service Directive.
                  Together, markets 1 through 6 correspond to ‘the provision of connection to and use of the public telephone network at fixed locations’, referred to in Annex I(1) of the Framework Directive. This combined market is also referred to in Article 19 of the Universal Service Directive (for possible imposition of carrier call-by-call selection or carrier selection).

                  7.

                  The minimum set of leased lines (which comprises the specified types of leased lines up to and including 2 Mb/sec as referenced in Article 18 and Annex VII of the Universal Service Directive).
                  This market is referred to in Annex I(1) of the Framework Directive in respect of Article 16 of the Universal Service Directive (the provision of leased lines to end users).
                  A market analysis must be undertaken for the purposes of Article 18 of the Universal Service Directive which covers regulatory controls on the provision of the minimum set of leased lines.

            Wholesale level

                  8.

                  Call origination on the public telephone network provided at a fixed location. For the purposes of this Recommendation, call origination is taken to include local call conveyance and delineated in such a way as to be consistent with the delineated boundaries for the markets for call transit and for call termination on the public telephone network provided at a fixed location.
                  This market corresponds to that referred to in Annex I(2) of the Framework Directive in respect of Directive 97/33/EC (call origination in the fixed public telephone network).

                  9.

                  Call termination on individual public telephone networks provided at a fixed location.
                  For the purposes of this Recommendation, call termination is taken to include local call conveyance and delineated in such a way as to be consistent with the delineated boundaries for the markets for call origination and for call transit on the public telephone network provided at a fixed location.
                  This market corresponds to the one referred to in Annex I(2) of the Framework Directive in respect of Directive 97/33/EC (call termination in the fixed public telephone network).

                  10.

                  Transit services in the fixed public telephone network.
                  For the purposes of this Recommendation, transit services are taken as being delineated in such a way as to be consistent with the delineated boundaries for the markets for call origination and for call termination on the public telephone network provided at a fixed location.
                  This market corresponds to the one referred to in Annex I(2) of the Framework Directive in respect of Directive 97/33/EC (transit services in the fixed public telephone network).

                  11.

                  Wholesale unbundled access (including shared access) to metallic loops and sub-loops for the purpose of providing broadband and voice services.
                  This market corresponds to that referred to in Annex I(2) of the Framework Directive in respect of Directive 97/33/EC and Directive 98/10/EC (access to the fixed public telephone network, including unbundled access to the local loop) and to that referred to in Annex I(3) of the Framework Directive in respect of Regulation (EC) No 2887/2000.

                  12.

                  Wholesale broadband access.
                  This market covers ‘bit-stream’ access that permit the transmission of broadband data in both directions and other wholesale access provided over other infrastructures, if and when they offer facilities equivalent to bit-stream access. It includes ‘Network access and special network access’ referred to in Annex I(2) of the Framework Directive, but does not cover the market in point 11 above, nor the market in point 18.

                  13.

                  Wholesale terminating segments of leased lines.

                  14.

                  Wholesale trunk segments of leased lines.
                  Together, the wholesale markets 13 and 14 correspond to those referred to in Annex I(2) of the Framework Directive in respect of Directive 97/33/EC and Directive 98/10/EC (leased line interconnection) and to those referred to in Annex I(2) of the Framework Directive in respect of Directive 92/44/EEC (wholesale provision of leased line capacity to other suppliers of electronic communications networks or services).

                  15.

                  Access and call origination on public mobile telephone networks, referred to (separately) in Annex I(2) of the Framework Directive in respect of Directives 97/33/EC and 98/10/EC.

                  16.

                  Voice call termination on individual mobile networks.
                  This market corresponds to the one referred to in Annex I(2) of the Framework Directive in respect of Directive 97/33/EC (call termination on public mobile telephone networks).

                  17.

                  The wholesale national market for international roaming on public mobile networks.
                  This market corresponds to the one referred to in Annex I(4) of the Framework Directive.

                  18.

                  Broadcasting transmission services, to deliver broadcast content to end users.

            Note:
      NRAs have discretion with respect to the analysis of the market for ‘Conditional access systems to digital television and radio services broadcast’ in accordance with Article 6(3) of the Access Directive. Article 6(3) of the Access Directive provides that EFTA States may permit their NRAs to review the market for conditional access system to digital television and radio services broadcast, irrespective of the means of transmission.


				|

		52013PC0382

			Recommendation for a COUNCIL DECISION giving notice to Belgium to take measures for the deficit reduction judged necessary in order to remedy the situation of excessive deficit /* COM/2013/0382 final */

			   	Recommendation for a
COUNCIL DECISION
giving notice to Belgium to take measures
for the deficit reduction judged necessary in order to remedy the situation of
excessive deficit
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the
Treaty on the Functioning of the European Union, and in particular Article
126(9) thereof,
Having regard to the
recommendation from the European Commission,
Whereas:
(1)       According to Article 126 Treaty on the Functioning of the European Union (TFEU)
Member States shall avoid excessive government deficits.
(2)       The Stability and Growth
Pact is based on the objective of sound government finances as a means of
strengthening the conditions for price stability and for strong sustainable
growth conducive to employment creation.
(3)       On 2 December 2009, the
Council decided[1],
in accordance with Article 126(6) TFEU, that an excessive deficit existed in
Belgium and issued a recommendation to correct it by 2012 at the latest, in
accordance with Article 126(7) TFEU and Article 3 of Council Regulation (EC) No
1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the
excessive deficit procedure[2].
In order to bring the general government deficit below 3% of GDP in a credible
and sustainable manner, the Belgian authorities were recommended to (a)
implement the deficit-reducing measures in 2010 as planned in the draft budget
for 2010 and strengthen the planned fiscal effort in 2011 and 2012; (b) ensure
an average annual fiscal effort of ¾% of GDP over the period 2010-2012, which
should also contribute to bringing the government gross debt ratio back on a
declining path that approaches the reference value at a satisfactory pace by
restoring an adequate level of the primary surplus; (c) specify the measures
that are necessary to achieve the correction of the excessive deficit by 2012,
cyclical conditions permitting, and to accelerate the reduction of the deficit
if economic or budgetary conditions turned out better than expected at the time
the EDP recommendations were issued; and (d) strengthen the monitoring
mechanisms to ensure that fiscal targets are respected. In its recommendations,
the Council established a deadline of 2 June 2010 for effective action to be
taken in line with the provisions of Article 3(4) of Regulation (EC) No
1467/97.
(4)       According to the
provisions of Article 126(8) TFEU, the Council decided on [21 June 2013] that
Belgium did not take effective action in response to the December 2009 Council
recommendation within the period laid down in that recommendation.
(5)       According to Article 10(3)
of Regulation (EC) No 1467/97, if actual data pursuant to Regulation (EC) No
479/2009 indicate that an excessive deficit has not been corrected by a
participating Member State within the time limits specified in a recommendation
issued under Article 126(7), the Council shall immediately take a decision
under Article 126(9), that is, give notice to the Member State to take, within
a specified time limit, measures for the deficit reduction which is judged
necessary by the Council in order to remedy the situation.
(6)       The Commission services'
2013 Spring Forecast, projects real GDP to remain flat in 2013 with domestic
demand continuing the contraction initiated in 2012. While household
consumption is likely to stagnate, investment is expected to drop, driven by an
economy-wide lack of confidence, a depressed construction sector, tightening
credit conditions and an industry featuring ample spare capacity. Both private
consumption and investment are anticipated to gain pace only as of 2014 when
domestic demand would become the main driver behind a real GDP growth rate of
1.2%. Against the background of this more robust domestic demand, import growth
is assumed to catch up with export growth. This would limit further gains from
net exports in 2014, contrary to 2013 when positive net foreign demand growth
is expected to prevent GDP from contracting.
(7)       According to the
Commission services' 2013 Spring Forecast, the general government deficit is
projected to decrease to 2.9% of GDP in 2013. The initial 2013 budget targeted
a nominal deficit of 2.15% of GDP. However, since the drafting of the budget,
the official growth projections underpinning the budget (+0.7%, in line with
the Commission services' 2012 Autumn Forecast) have been substantially revised
downwards, to 0.2% in the 2013 Stability Programme and 0.0% in the Spring
Forecast. Therefore, the government abandoned the nominal deficit target and
replaced it by a commitment to improve the structural balance by 1.0 % of GDP.
In March 2013, the government took additional measures amounting to 0.2% of GDP
on top of around 0.75% of GDP of measures taken in the initial 2013 budget,
which have been taken into account in the Commission services' 2013 Spring
Forecast. This forecast projects a structural improvement of ¾ % of GDP in
2013, including a ¼ pp. contribution from lower interest expenditure.
(8)       At unchanged policy, the
Commission services' 2013 Spring Forecast projects the deficit to rise again
above the reference value in 2014, to 3.1% of GDP, despite the projected growth
above potential. This new rise is due to the autonomous rising trend in social
transfers and the fact that the 2013 budget also included around 0.4% of GDP of
one-off and temporary revenues, such as a fiscal amnesty, the sale of telecom
licenses and an exceptionally high dividend from the National Bank of Belgium.
(9)       Public debt rose from 84%
of GDP in 2007 to almost 100% of GDP in 2012. The dynamics of the deficit and
of GDP account for around 6.5 pps. of the increase, while exogenous factors
amount to around 9 pps., mainly due to rescue operations in the financial
sector in the form of equity injections. According to the Commission services'
2013 Spring Forecast, it is expected to increase to over 102% of GDP in 2014.
The Belgian government intends to sell financial assets in order to keep the
debt below 100% of GDP in 2013. In this context, the Belgian government
announced recently the sale of Royal Park Investment (the special purpose
vehicle created in the context of the Fortis rescue operation) which would
reduce the debt level by 0.2% of GDP.
(10)     The European Commission
Fiscal Sustainability Report 2012 shows that Belgium does not appear to face a
risk of fiscal stress in the short term. However, fiscal sustainability risks
are high in a medium- to long-term perspective. The long-term budgetary impact
of ageing in Belgium is well above the EU average, which is mainly the result
of a rapid increase in pension expenditure as a share of GDP over the coming
decades. Although the December 2011 pension reform was an important positive
step, additional measures appear necessary to fully restore the long-term
sustainability of public finances.
(11)     Measures taken in the
initial 2013 budget and the March 2013 budget control are currently expected to
bring the deficit below 3% of GDP in 2013. However, according to the Commission
services' 2013 Spring Forecast, the safety margin against breaching the Treaty
reference value is very narrow. Moreover, the correction is currently not yet
sustainable.
(12)     Against the background of
high uncertainties regarding economic and budgetary developments, the budgetary
target recommended for the final year of the correction period should be set at
a level clearly below the reference value, in order to guarantee an effective
and lasting achievement of the correction within the requested deadline.
(13)     Therefore, a further
reduction of the 2013 deficit to 2.7% of GDP is warranted, which is consistent
with a structural improvement of 1% of GDP in 2013. To this end, additional
measures with an estimated impact of ¼% of GDP are considered necessary, also
in view of possible negative second round effects.
(14)     Belgium committed in its
Stability Programme to achieve a balanced budget in structural terms in 2015,
before reaching its MTO of a surplus of 0.75% of GDP in structural terms in
2016. Subsequently, in a letter sent to the Commission on 28 May 2013, the
Belgian authorities committed to target a higher fiscal effort at ¾% of GDP in
2014. Also in view of the high level of debt this is an appropriate effort and
it will comply with the debt reduction benchmark., a Thereafter, Belgium should continue making sufficient progress towards its medium-term objective including
meeting the expenditure benchmark, and towards compliance with the debt
reduction benchmark.
(15)     Furthermore, Belgium should strengthen the long-term sustainability of the pension and social security
systems. In this respect, additional efforts are needed to close the gap between
the effective and the statutory retirement age, while measures to link the
statutory retirement age to developments in life expectancy would allow
safeguarding the sustainability of the pension system in the long term.
(16)     In addition, Belgium should adopt explicit coordination arrangements to ensure that budgetary targets
are binding at federal level and sub-federal levels within a medium-term
planning perspective, including through the prompt adoption of a rule on the
general government budget balance/surplus that complies with the requirements
of the Treaty on Stability, Coordination and Governance in the Economic and
Monetary Union.
(17)     Finally, to ensure the
success of the fiscal consolidation strategy, it will also be important to back
the fiscal consolidation by comprehensive structural reforms, in line with the
Council recommendations addressed to Belgium in the context of the European
Semester and in particular those related to the Macroeconomic Imbalances
Procedure,
HAS ADOPTED THIS DECISION:
Article 1
1.           Belgium shall put an end
to the present excessive deficit situation by 2013.
2.           Belgium
shall reduce the headline deficit to 2.7% of GDP in 2013 This nominal
improvement is consistent with an improvement in the structural balance
of 1% of GDP in 2013, based on the Commission services' 2013 Spring
Forecast.
3.           Belgium shall adopt and
fully implement all the consolidation measures incorporated in the 2013 budget
as well as additional measures of structural nature to achieve the recommended
structural effort for 2013.
4.           Belgium shall stand ready to adopt further measures should risks to the budgetary
plans materialise. Budgetary consolidation measures
should secure a lasting improvement in the general government structural
balance in a growth-friendly manner.
Article 2
1.           Belgium shall submit to
the Commission, by 21 September 2013 at the latest, a report outlining the
measures taken to comply with this Decision. The Commission will evaluate this
report with a view to assessing progress made towards the correction of the
excessive deficit.
2.           Belgium shall submit
further quarterly reports to the Commission, examining progress made in
complying with this decision.
3.           Belgium shall submit a
report by 31 December 2013 on the intended implementation of the first recommendation
issued under the European Semester regarding the adoption of explicit
coordination arrangements to ensure that budgetary targets are binding at
federal level and sub-federal levels within a medium-term planning perspective.

4.           Belgium shall present
structural measures for 2014 which ensure a sustainable correction of the
excessive deficit and appropriate progress towards its medium-term objective.
Article 3
This
Decision is addressed to the Kingdom of Belgium.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               All documents related to the
excessive deficit procedure of Belgium can be found at:
http://ec.europa.eu/economy_finance/economic_governance/sgp/deficit/countries/belgium_en.htm
[2]               OJ L 209, 2.8.1997, p. 6.


title: 2011/622/EU: Commission Recommendation of 20 September 2011 on the procedure demonstrating the level of compliance of existing railway lines with the basic parameters of the technical specifications for interoperability  Text with EEA relevance

text:
               21.9.2011

               EN

               Official Journal of the European Union

               L 243/23

         COMMISSION RECOMMENDATION
   of 20 September 2011
   on the procedure demonstrating the level of compliance of existing railway lines with the basic parameters of the technical specifications for interoperability
   (Text with EEA relevance)
   (2011/622/EU)
   THE EUROPEAN COMMISSION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Article 292 thereof,
   Whereas:
   According to Section 7.3.4 of the Annex to Commission Decision 2011/275/EU of 26 April 2011 concerning a technical specification for interoperability relating to the ‘infrastructure’ subsystem of the trans-European conventional rail system (1), existing lines that are not subject to a renewal or upgrading project may allow the circulation of TSI-conform vehicles whilst meeting the essential requirements of Directive 2008/57/EC of the European Parliament and of the Council of 17 June 2008 on the interoperability of the rail system within the Community (2). The infrastructure manager should be able in this case, on a voluntary basis, to complete the register of infrastructure in accordance with Annex D to Decision 2011/275/EU. A common procedure to be used for the demonstration of the level of compliance with the basic parameters of the TSI laid down in Decision 2011/275/EU should be recommended,
   RECOMMENDS that
   the procedure set out in the Annex be applied for demonstrating the level of compliance of existing fixed installations with the basic parameters of technical specifications for interoperability.

      Done at Brussels, 20 September 2011.

            For the Commission

         Siim KALLAS

            Vice-President

      (1)  OJ L 126, 14.5.2011, p. 53.

      (2)  OJ L 191, 18.7.2008, p. 1.

      ANNEX

         Procedure for demonstrating the level of compliance of existing railway lines with the basic parameters of the technical specifications for interoperability

      1.   Introduction

      1.1.   Technical Scope

      This procedure concerns the following subsystems of the Union rail system:

                  (a)

                  the infrastructure structural subsystem; and

                  (b)

                  the energy structural subsystem.

            These subsystems are included in the list of subsystems in Annex II (1) to Directive 2008/57/EC.
      1.2.   Geographical Scope

      The geographical scope of this procedure is the Union rail system as determined by Directive 2008/57/EC.
      1.3.   Definitions

      For the purpose of this procedure:

                  (a)

                  ‘EI’ means existing infrastructure (fixed installations) placed in service before the entry into force of Directive 2008/57/EC or lines placed in service after the entry into force of Directive 2008/57/EC without being subject to the EC verification procedure;

                  (b)

                  ‘EI demonstration of compliance’ means the verification whether basic parameters of a subsystem or/and an element of existing lines comply with requirements of the relevant TSIs;

                  (c)

                  ‘EI certificate of demonstration’ means the document issued by an independent assessor as a result of the EI demonstration of compliance;

                  (d)

                  ‘EI declaration of demonstration’ means the document issued by an applicant after receiving EI certificate of demonstration.

            2.   Procedure demonstrating compliance with Technical Specifications for Interoperability for existing lines

      2.1.   Purpose

      According to Decision 2011/275/EU concerning a technical specification for interoperability relating to the ‘infrastructure’ subsystem of the trans-European conventional rail system, existing lines that are not subject to a renewal or upgrading project may allow the circulation of TSI-conform vehicles whilst meeting the essential requirements of Directive 2008/57/EC.
      Therefore, the following procedure may be applied for demonstrating compliance of existing fixed installations with the relevant TSIs without being subject to a new authorisation for putting into service.
      It is not mandatory, but may be used on a voluntary basis.
      2.2.   Procedure for demonstration of the level of compliance with the basic parameters of the TSI

      1.   Procedure for demonstration of the level of compliance with the basic parameters of the TSI is the EI demonstration of compliance procedure whereby the applicant fulfils the obligations laid down in points 2,3,5.2 and 5.4, and ensures and declares on his sole responsibility that the subsystem concerned, which has been subject to the provisions of point 4, satisfies the requirements of the relevant TSI(s).
      2.   The applicant lodges an application for the EI demonstration of compliance of the subsystem with an independent assessor of his choice.
      The application includes:

                  (a)

                  name and address of the applicant and, if the application is lodged by the authorised representative, his name and address as well;

                  (b)

                  the technical documentation.

            3.   Technical documentation

                  3.1.

                  The applicant establishes the technical documentation and makes it available to the independent assessor referred to in point 4. The documentation should make it possible to demonstrate the level of compliance of the existing subsystem's with the basic parameters of the relevant TSI(s).

                  3.2.

                  The technical documentation contains, wherever applicable, the following elements:

                              (a)

                              general description of the existing subsystem;

                              (b)

                              the documents necessary for the compilation of the technical file;

                              (c)

                              a list of the harmonised standards and/or other relevant technical specifications the references of which have been published in the Official Journal of the European Union and/or national technical specifications which are notified under Article 17(3) of Directive 2008/57/EC, applied in full or in part, and descriptions of the solutions adopted to meet the requirements of the relevant TSI(s) where those harmonised or national standards have not been applied. In the event of partly applied harmonised or national standards, the technical documentation specifies the parts which have been applied;

                              (d)

                              conditions for use of the subsystem (restrictions of running time or distance, wear limits, etc.);

                              (e)

                              descriptions and explanations necessary for the understanding of the operation and maintenance of the subsystem;

                              (f)

                              conditions for maintenance and technical documentation regarding the maintenance of the subsystem;

                              (g)

                              any technical requirement specified in the relevant TSI(s) that have to be taken into account during maintenance or operation of the subsystem;

                              (h)

                              other appropriate technical evidences, which demonstrate that previous checking or tests have been successfully performed, under comparable conditions, by competent bodies.

                  3.3.

                  The applicant keeps the technical documentation at the disposal of the relevant national authorities throughout the service life of the subsystem.

            4.   Procedure for demonstration of the level of compliance with the basic parameters of the TSI.

                  4.1.

                  The independent assessor chosen by the applicant takes into account evidence of examinations, checks or tests that have been performed by other bodies or by the applicant.

                  4.2.

                  The evidences gathered by the independent assessor should be suitable and sufficient to demonstrate the level of compliance with the requirement of the relevant TSI(s) and that all required and appropriate checks and tests have been carried out.

                  4.3.

                  Where the existing subsystem meets the requirements of the relevant TSI(s), the independent assessor issues an EI certificate of demonstration.

            5.   EI declaration of demonstration

                  5.1.

                  The applicant draws up a written EI declaration of demonstration for the subsystem and keeps it throughout the service life of the subsystem. The EI declaration of demonstration identifies the subsystem for which it has been drawn up.

                  5.2.

                  The EI declaration of demonstration and the accompanying documents is written in accordance with Chapter 2.5.

                  5.3.

                  A copy of the EI declaration of demonstration is made available to the relevant authorities upon request.

            6.   Technical file

                  6.1.

                  The independent assessor is responsible for compiling the technical file that accompanies the EI declaration of demonstration.

                  6.2.

                  The technical file accompanying the EI declaration of demonstration is lodged with the applicant.

                  6.3.

                  The applicant keeps a copy of the technical file throughout the service life of the subsystem; it is sent to any other Member State which so requests.

            2.3.   Characteristics to be assessed

      The characteristics to be assessed when applying the procedure for demonstration of the level of compliance with the basic parameters of the TSI are set out in:

                  —

                  Table 1 for the conventional rail infrastructure subsystem,

                  —

                  Table 2 for the conventional rail energy subsystem,

                  —

                  Table 3 for the high speed rail infrastructure subsystem, and

                  —

                  Table 4 for the high speed rail energy subsystem.

         Table 1

         Assessment of the conventional rail infrastructure subsystem for the EI demonstration of compliance

                  Characteristics to be assessed (CR INF TSI)

                  Existing line not subject to any EC verification

                  Particular assessment procedures
                  (CR INF TSI)

                  1

                  2

                  Structure gauge (4.2.4.1)

                  X

                  6.2.4.1

                  Distance between track centres (4.2.4.2)

                  X

                  6.2.4.2

                  Maximum gradients (4.2.4.3)

                  X

                  Minimum radius of horizontal curve (4.2.4.4)

                  X

                  Minimum radius of vertical curve (4.2.4.5)

                  X

                  Nominal track gauge (4.2.5.1)

                  X

                  Cant (4.2.5.2)

                  X

                  Rate of change of cant (4.2.5.3)

                  X

                  Cant deficiency (4.2.5.4)

                  X

                  6.2.4.3

                  Equivalent conicity (4.2.5.5.1) — design

                  n.a.

                  Equivalent conicity (4.2.5.5.2) — in-service

                  Open point

                  6.2.4.5

                  Railhead profile for plain line (4.2.5.6)

                  n.a.

                  Rail inclination (4.2.5.7)

                  X

                  Track stiffness (4.2.5.8)

                  n.a.

                  Means of locking (4.2.6.1)

                  X

                  In service geometry of switches and crossings (4.2.6.2)

                  n.a.

                  Maximum unguided length of fixed obtuse crossings (4.2.6.3)

                  X

                  6.2.4.7

                  Track resistance to vertical loads (4.2.7.1)

                  X

                  6.2.5

                  Longitudinal track resistance (4.2.7.2)

                  X

                  6.2.5

                  Lateral track resistance (4.2.7.3)

                  X

                  6.2.5

                  Resistance of new bridges to traffic loads (4.2.8.1)

                  n.a.

                  Equivalent vertical loading for new earthworks and earth pressure effects (4.2.8.2)

                  n.a.

                  Resistance of new structures over or adjacent to tracks (4.2.8.3)

                  n.a.

                  Resistance of existing bridges and earthworks to traffic loads (4.2.8.4)

                  X

                  6.2.4.9

                  Determination of immediate action, intervention and alert limits (4.2.9.1)

                  n.a.

                  The immediate action limit for track twist (4.2.9.2)

                  n.a.

                  The immediate action limit for variation of track gauge (4.2.9.3)

                  n.a.

                  The immediate action limit for cant (4.2.9.4)

                  n.a.

                  Usable length of platforms (4.2.10.1)

                  X

                  Width and edge of platforms (4.2.10.2)

                  X

                  End of platforms (4.2.10.3)

                  X

                  Height of platforms (4.2.10.4)

                  X

                  Offset of platforms (4.2.10.5)

                  X

                  Maximum pressure variation in tunnels (4.2.11.1)

                  X

                  6.2.4.6

                  Noise and vibration limits and mitigation measures (4.2.11.2)

                  Open point

                  Protection against electric shock (4.2.11.3)

                  See ENE

                  Safety in railway tunnels (4.2.11.4)

                  See SRT

                  Effect of crosswinds (4.2.11.5)

                  Open point

                  Distance markers (4.2.12.1)

                  X

                  Toilet discharge (4.2.13.2)

                  X

                  6.2.4.10

                  Train external cleaning facilities (4.2.13.3)

                  X

                  6.2.4.10

                  Water restocking (4.2.13.4)

                  X

                  6.2.4.10

                  Refuelling (4.2.13.5)

                  X

                  6.2.4.10

                  Electric shore supply (4.2.13.6)

                  X

                  6.2.4.10

         Table 2

         Assessment of the conventional rail energy subsystem for the EI demonstration of compliance

                  Characteristics to be assessed (CR ENE TSI)

                  Existing line not subject to any EC verification

                  Particular assessment procedures
                  (CR ENE TSI)

                  1

                  2

                  Voltage and frequency (4.2.3)

                  X

                  Parameters relating to system performance (4.2.4)

                  X

                  6.2.4.1

                  Continuity of power supply in case of disturbances in tunnels (4.2.5)

                  X

                  Current capacity, DC systems, trains at standstill (4.2.6)

                  X

                  Regenerative braking (4.2.7)

                  X

                  6.2.4.2

                  Electrical protection coordination arrangements (4.2.8)

                  X

                  6.2.4.3

                  Harmonics and dynamic effects for AC systems (4.2.9)

                  X

                  6.2.4.4

                  Geometry of the overhead contact line: contact wire height (4.2.13.1)

                  X

                  Geometry of the overhead contact line: Variation in contact wire height (4.2.13.2)

                  X

                  Geometry of the overhead contact line: Lateral deviation (4.2.13.3)

                  X

                  Pantograph gauge (4.2.14)

                  X

                  Mean contact force (4.2.15)

                  X

                  Dynamic behaviour and quality of current collection (4.2.16)

                  X

                  6.1.4.1, 6.2.4.5

                  Pantograph spacing (4.2.17)

                  X

                  Contact wire material (4.2.18)

                  X

                  Phase separation sections (4.2.19)

                  X

                  System separation sections (4.2.20)

                  X

                  Management of power supply in case of danger (4.4.2.3)

                  X

                  Maintenance rules (4.5)

                  X

                  6.2.4.6

                  Protection against electric shock (4.7.2, 4.7.3, 4.7.4)

                  X

         Table 3

         Assessment of the high speed rail infrastructure subsystem for the EI demonstration of compliance

                  Characteristics to be assessed (HS INF TSI)

                  Existing line not subject to any EC verification

                  Particular assessment procedures
                  (HS INF TSI)

                  1

                  2

                  Nominal track gauge (4.2.2)

                  X

                  Minimum structure gauge (4.2.3)

                  X

                  6.2.6.1

                  Distance between track centres (4.2.4)

                  X

                  Maximum rising and falling gradients (4.2.5)

                  X

                  Minimum radius of curvature (4.2.6)

                  X

                  Track cant (4.2.7)

                  X

                  Cant deficiency (4.2.8)

                  X

                  Equivalent conicity (design value) (4.2.9.2)

                  n.a.

                  Minimum value of mean track gauge (4.2.9.3.1)

                  n.a.

                  Track Geometrical Quality and limits on isolated defects (4.2.10)

                  n.a.

                  Rail inclination (4.2.11)

                  X

                  6.2.6.4

                  Means of locking (4.2.12.1)

                  X

                  Use of swing nose (4.2.12.2)

                  X

                  Geometrical characteristics (4.2.12.3)

                  n.a

                  Track resistance (4.2.13)

                  X

                  Traffic load on structures (4.2.14)

                  X

                  Global track stiffness (4.2.15)

                  Open point

                  6.2.6.3

                  Maximum pressure variations in tunnels (4.2.16)

                  X

                  6.2.6.5

                  Effect of crosswinds (4.2.17)

                  X

                  Electrical characteristics (4.2.18)

                  X

                  Noise and vibrations (4.2.19)

                  n.a.

                  Access to platforms (4.2.20.1)

                  X

                  Usable length of platform (4.2.20.2)

                  X

                  Platform height and distance from the centre of the track (4.2.20.4-5)

                  X

                  Track layout along the platforms (4.2.20.6)

                  X

                  Prevention of electric shock (4.2.20.7)

                  See HS ENE

                  Access for people with reduced mobility (4.2.20.8)

                  See PRM

                  Fire safety and safety in railway tunnels (4.2.21)

                  See SRT

                  Access to or intrusion into line installations (4.2.22)

                  X

                  Lateral space for passengers in the event of detrainment outside of a station (4.2.23)

                  X

                  Length of stabling track (4.2.25.1)

                  X

                  Gradient of stabling track (4.2.25.2)

                  X

                  Radius of curvature (4.2.25.3)

                  X

                  Fixed installations for servicing trains (4.2.26)

                  X

         Table 4

         Assessment of the high speed energy subsystem for the EI demonstration of compliance

                  Characteristics to be assessed (HS ENE TSI)

                  Existing line not subject to any EC verification

                  Particular assessment procedures
                  (HS ENE TSI)

                  1

                  2

                  Voltage and frequency (4.2.2)

                  X

                  System performance and installed power (4.2.3)

                  X

                  Regenerative braking (4.2.4)

                  X

                  Continuity of power supply (4.2.7)

                  n.a.

                  Overhead contact line overall design, geometry (4.2.9)

                  X

                  Compliance of the overhead contact line system with infrastructure gauge (4.2.10)

                  X

                  Contact wire material (4.2.11)

                  X

                  Contact wire wave propagation speed (4.2.12)

                  n.a.

                  Static contact force (4.2.14)

                  n.a.

                  Mean contact force (4.2.15)

                  X

                  Quality of current collection with mean contact force (4.2.16)

                  X

                  4.2.16.2.1, 4.2.16.2.3

                  Vertical movement of the contact point (4.2.17)

                  X

                  Current capacity of overhead contact line (4.2.18)

                  X

                  Current at standstill (4.2.20)

                  X

                  Phase separation sections (4.2.21)

                  X

                  System separation sections (4.2.22)

                  X

                  Electrical protection coordination arrangements (4.2.23)

                  X

                  Harmonics and dynamic effects (4.2.25)

                  n.a.

                  Power supply in case of danger (4.4.1)

                  X

                  Maintenance — Manufacturer’s responsibilities (4.5.1)

                  n.a.

                  Maintenance — Infrastructure Manager’s responsibilities (4.5.2)

                  n.a.

                  Protection against electric shock (4.7.1, 4.7.2, 4.7.3)

                  X

            2.4.   Requirements for independent assessor

      1.   An independent assessor selected by the applicant carries out the EI demonstration of compliance of the existing lines. An independent assessor may be an external entity or an internal part of the Infrastructure Manager.
      2.   With respect to railway infrastructure, the independent assessor possesses:

                  (a)

                  proper technical training;

                  (b)

                  a satisfactory knowledge of the requirements relating to the assessment that he carries out and sufficient practice in those checks; and

                  (c)

                  the ability to draw up EI certificates of demonstration and technical documentations which constitute the formal record of the assessments conducted.

            3.   An independent assessor as an internal part of the Infrastructure Manager meets the following requirements:

                  (a)

                  the assessor and its personnel is organisationally identifiable and has reporting methods which ensure their impartiality;

                  (b)

                  neither the assessor nor its personnel is responsible for the operation or maintenance of the products they assess nor do they engage in any activity that might conflict with their independence of judgment or integrity in relation to their assessment activities;

                  (c)

                  the assessor supplies its services exclusively to the undertaking of which it forms a part.

            2.5.   Declaration of demonstration

      1.   The EI declaration of demonstration and accompanying documents are dated and signed.
      2.   That declaration is written in the same language as the technical file and contains the following:

                  (a)

                  the references to the Procedure demonstrating compliance with Technical Specifications for Interoperability for existing lines;

                  (b)

                  name and address of the applicant or its authorised representative established within the EU (give trade name and full address; in case of representative, also give the trade name of applicant);

                  (c)

                  a brief description of the subsystem;

                  (d)

                  name and address of independent assessor which conducted the EI demonstration of compliance;

                  (e)

                  the references of the documents contained in the technical file;

                  (f)

                  all the relevant temporary or definitive provisions to be complied with by the subsystems and in particular, where appropriate, any operating restrictions or conditions;

                  (g)

                  if temporary, duration of validity of the EI declaration of demonstration;

                  (h)

                  identity of the signatory.


title: Council Recommendation of 12 July 2011 on the national reform programme 2011 of Luxembourg and delivering a Council opinion on the updated stability programme of Luxembourg, 2011-2014

text:
               16.7.2011

               EN

               Official Journal of the European Union

               C 210/5

         COUNCIL RECOMMENDATION
   of 12 July 2011
   on the national reform programme 2011 of Luxembourg and delivering a Council opinion on the updated stability programme of Luxembourg, 2011-2014
   2011/C 210/02
   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(3) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   After consulting the Economic and Financial Committee,
   Whereas:

               (1)

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

               (2)

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

               (3)

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

               (4)

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

               (5)

               On 25 March 2011, the European Council also invited the Member States participating in the Euro Plus Pact to present their commitments in time to be included in their stability or convergence programmes and their national reform programmes.

               (6)

               On 29 April 2011, Luxembourg submitted its 2011 stability programme update covering the period 2011-2014 and its 2011 national reform programme. In order to take account of the interlinkages, the two programmes have been assessed at the same time.

               (7)

               Considering the exceptional weight of the financial sector in the economy, Luxembourg has withstood the financial and economic crisis relatively well. After real GDP fell by 3,6 % in 2009, the economy recovered quickly in 2010. GDP expanded by about 3,5 %, boosted by an increase in public spending decided by the government as part of the European economic recovery programme, and by a strong increase in net exports. Employment remained resilient, partly due to a sizeable recourse to short-time working arrangements, encouraged by the authorities. Unemployment began to rise from the beginning of 2008 on and broadly stabilised at about 6 %, a level which is historically high in Luxembourg. Despite the recession, public finances in Luxembourg are relatively sound (a deficit of 1,7 % and gross debt of 18,4 % in 2010), thanks to a very favourable starting position.

               (8)

               Based on the assessment of the updated stability programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections is slightly cautious when compared with the Commission services’ 2011 spring forecast. According to the stability programme, the target for 2011 is a deficit of 1 %, which is in line with the Commission services’ spring forecast. The stability programme, under an unchanged policy scenario, projects a deterioration of the headline deficit in 2012 to 1,5 % of GDP before it improves gradually again to 0,8 % of GDP by 2014. The Commission services’ forecast is slightly more optimistic projecting a deficit of 1,1 % of GDP in 2012, based on a more favourable macroeconomic scenario and a slower increase in expenditure. The stability programme does not foresee the achievement of the medium-term objective (MTO), which is defined as a structural surplus of 0,5 % of GDP, within the 2011-2014 programming period. On the contrary, the structural balance (recalculated by Commission services based on the information in the stability programme, following the commonly agreed methodology) is expected to deteriorate gradually from a 0,3 % surplus in 2011 to a 0,8 % deficit in 2014.

               (9)

               With GDP growth projected to remain robust, Luxembourg's public finances could benefit from a further improvement of the structural balance with a view to achieving the MTO already in 2012. This would provide Luxembourg with a safety margin against a possible future economic downturn and help improve long-term sustainability of public finances. Additionally, in the light of the estimated impact of the implicit liabilities related to population ageing, the country would benefit from having a more ambitious MTO.

               (10)

               According to the Commission's latest assessment, the risks with regards to long-term sustainability of public finances appear to be medium. The increase in age-related public expenditure in Luxembourg in coming decades is projected to be the strongest in the EU. The short-term financing of the pension system is currently supported by a low old-age dependency ratio and depends in part on the contributions paid by the relatively young population of cross-border workers. In future, both factors will reverse and pension costs are anticipated to increase substantially. Although the government has accumulated sizeable assets and pension reserves are still growing, these will not be sufficient to ensure the sustainability of the system. In addition, the employment rate of older workers (age 55-64) at 38,2 % (2009) is one of the lowest in the EU (EU average: 46 %). While the statutory retirement age is in principle 65 years, the Luxembourg’s pension system often allows retiring earlier with virtually no reduction in the pension level, which is, moreover, comparatively high. As a result, the average age of withdrawal from the labour market is 59,4 years, which weighs on the costs of the pension system. The government's plans for a pension reform foresee a new model aimed at keeping jobholders in work longer on a voluntary basis. This would improve the dependency ratio of the pension system. However, this mechanism would only concern new pensioners and only apply to the part of the career situated after the entry into force of the reform, so it would only produce its full effect in 40 years.

               (11)

               The price and cost competitiveness of Luxembourg has deteriorated substantially since the beginning of the last decade. This is due to developments both in wages and productivity. Over the period 2000-2010, unit labour costs rose about one and a half times faster in Luxembourg than on average in the EU-15, and more than five times faster than in Germany. Given the agreement between the government and the trade unions to postpone, from spring to October 2011, the application of the automatic wage indexation mechanism, there will be a substantial moderation of real wage growth in 2011. A decision has yet to be taken concerning the subsequent threshold. Given the current inflation outlook the next automatic indexation could fall already in spring 2012, thus wiping out the earlier gains in cost-competitiveness.

               (12)

               Despite historically strong employment growth, the employment rate of the resident population is lower than the EU average, especially at both ends of the age spectrum. Job creation in recent years has mainly benefitted non-residents. Even though the rise in unemployment since 2008 is related to the recession, it has an increasingly structural character, illustrated by the fact that during the growth years prior to the crisis, employment needed to grow at around 4 % a year in order to produce a marginal decline in unemployment. Youth unemployment is relatively high at 16,1 % in 2010 compared to 6 % of total active population. The unemployment rate depends heavily on the educational level. Young residents face an acute competition for available jobs from non-residents, who are often as, or even higher, qualified.

               (13)

               The government outlined a series of commitments in the context of the Euro Plus Pact. These commitments refer to the four areas of the Pact. On the fiscal side, the government approved the features of a pension reform and commits itself to finalising the reform by the end of 2011. To reinforce financial stability, measures focus on boosting the resistance of the financial sector through regulation and supervision at the European and international levels and pursuing the efforts to diversify the structure of the Luxembourg economy. Employment measures focus on increasing the efficiency of active employment policies (reform of the ‘Administration de l'Emploi’) and encouraging lifelong learning in the private sector by a higher co-financing rate by the State. The competitiveness measures include a postponement of the indexation of wages from spring 2011 (implied by the automatic indexation system) to October 2011, and a commitment to negotiate with social partners a similar postponement for 2012. Moreover, the government committed itself to improving the business environment through administrative simplification and better infrastructure. They are in line with the broader reform agenda outlined in the stability and national reform programmes and address challenges in the areas of pensions, competitiveness, employment (particularly of young and older workers) and the financial sector. However, some of the proposed reforms lack detail. The Euro Plus Pact commitments have been assessed and taken into account in the recommendations.

               (14)

               The Commission has assessed the stability programme and national reform programme including the Euro Plus Pact commitments for Luxembourg. It has taken into account not only their relevance for sustainable fiscal and socio-economic policy in Luxembourg, but also their conformity with EU rules and guidance, given the need to reinforce the overall economic governance of the EU by providing EU-level input into future national decisions. In this light, the Commission considers that a more ambitious reduction of the deficit in 2011 should be possible in view of the favourable macro-economic outlook, and that a stronger fiscal effort would allow Luxembourg to reach the MTO in 2012. Further steps should also be taken to reform the pension system and promote active ageing, to strengthen competitiveness, and to help young people into jobs.

               (15)

               In light of this assessment, the Council has examined the 2011 update of the stability programme of Luxembourg and its opinion (3) is reflected in particular in its recommendations (1) and (2) below. Taking into account the European Council conclusions of 25 March 2011, the Council has examined the national reform programme of Luxembourg,

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

               1.

               Take advantage of the improving cyclical conditions, strengthen the fiscal effort and use unexpected additional revenue in order to further reduce the headline deficit and reach the medium-term objective in 2012.

               2.

               Propose and implement a broad pension reform to ensure the long-term sustainability of the pension system, starting with measures that will increase the participation rate of older workers, in particular by discouraging early retirement. With a view to raising the effective retirement age, measures such as a link between the statutory retirement age and life expectancy, could be considered.

               3.

               Take steps to reform, in consultation with social partners and in accordance with national practices, the system of wage bargaining and wage indexation, to ensure that wage growth better reflects developments in labour productivity and competitiveness.

               4.

               Take steps to reduce youth unemployment by reinforcing training and education measures aimed at better matching young people's qualifications to labour demand.

      Done at Brussels, 12 July 2011.

            For the Council

            The President

         J. VINCENT-ROSTOWSKI

      (1)  OJ L 209, 2.8.1997, p. 1.

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

      (3)  Foreseen in Article 5(3) of Regulation (EC) No 1466/97.


Avis juridique important

|

31992H0441

92/441/EEC: Council Recommendation of 24 June 1992 on common criteria concerning sufficient resources and social assistance in social protection systems

Official Journal L 245 , 26/08/1992 P. 0046 - 0048

COUNCIL RECOMMENDATION of 24 June 1992 on common criteria concerning sufficient resources and social assistance insocial protection systems (92/441/EEC)THE COUNCIL OF THE EUROPEAN COMMUNITIES,  Having regard to the Treaty establishing the European Economic Community, and in particular Article 235 thereof,  Having regard to the proposal from the Commission (1),  Having regard to the opinion of the European Parliament (2),  Having regard to the opinion of the Economic and Social Committee (3),   (1) Whereas reinforcing social cohesion within the Community requires the encouragement of solidarity with regard to the least privileged and most vulnerable people;   (2) Whereas respect for human dignity is one of the fundamental rights underlying Community law, as recognized in the preamble to the Single European Act;   (3) Whereas social exclusion processes and risks of poverty have become more prevalent and more diversified over the last 10 years, owing primarily to a combination of developments in the labour market with, in particular, growth in long-term  unemployment, and in family structures with, in particular, an increase in social isolation;   (4) Whereas there is a need for general development policies capable of contributing towards halting the perceived structural trends to be accompanied by specific, systemic and coherent integration policies;   (5) Whereas, consequently, social policy efforts need to be continued, their achievements reinforced and these policies adapted to the multi-dimensional nature of social exclusion, which involves linking the various forms of immediate assistance needed  to measures aiming expressly at the economic and social integration of the people concerned.   (6) Whereas people with insufficient, irregular and uncertain resources are unable to play an adequate part in the economic and social life of the society in which they live and to become successfully integrated economically and socially; whereas the  right of the least privileged to sufficient, stable and reliable resources should therefore be recognized as part of a consistent, overall policy for supporting their integration;   (7) Whereas on 29 September 1989 the Council and the Ministers for Social Affairs meeting within the Council adopted a resolution on combating social exclusion (4) which stressed that combating social exclusion may be regarded as an important part of  the social dimension of the internal market;   (8) Whereas the Community Charter of the Fundamental Social Rights of Workers, adopted at the European Council in Strasbourg on 9 December 1989 by the Heads of State or Government of 11 Member States, states, inter alia, in its eighth recital and in  points 10 and 25:  'Whereas, (. . .) in a spirit of solidarity, it is important to combat social exclusion;' 'According to the arrangements applying in each country:  10. Every worker of the European Community shall have a right to adequate social protection and shall, whatever his status and whatever the size of the undertaking in which he is employed, enjoy an adequate level of social security benefits.  Person who have been unable either to enter or re-enter the labour market and have no means of subsistence must be able to receive sufficient resources and social assistance in keeping with their particular situation.' '25. Any person who has reached retirement age but who is not entitled to a pension or who does not have other means of subsistence, must be entitled to sufficient resources and to medical and social assistance specifically suited to his needs.';   (9) Whereas the Commission has included this fundamental aspect of the fight against social exclusion in its action programme relating to the implementation of the Community Charter of the Fundamental Social Rights of Workers, while noting in  particular the value of a Community initiative, in a spirit of solidarity, to assist the least privileged citizens of the Community, including the elderly, whose situation all too often resembles that of persons excluded from the labour market;  (10) Whereas the implementation of a guarantee of resources and social assistance comes within the sphere of social protection; whereas it is for Member States to define, in this connection, the legal nature of the provisions intended to ensure this  guarantee, which in most Member States do not come within the sphere of social security;  (11) Whereas it is important to take account during the progressive implementation of this recommendation of the availability of financial resources, of national priorities and of balances within national social protection systems; whereas there are  disparities in development between Member States as regards social protection;  (12) Whereas, in its resolution on combating poverty in the European Community (5), the European Parliament declared itself in favour of establishing in all the Member States a guaranteed minimum income to help ensure that the poorest citizens are  integrated into society;  (13) Whereas, in its opinion on poverty of 12 July 1989 (6), the Economic and Social Committee also recommended the introduction of a minimum social income, both to act as a safety net for the poor and to boost their reintegration into society;  (14) Whereas this recommendation does not affect national and Community provisions on right of residence;  (15) Whereas the Treaty does not, in respect of the attainment of these objectives, provide for any means of action other than those laid down in Article 235,  I. HEREBY RECOMMENDS MEMBER STATES:  A. to recognize the basic right of a person to sufficient resources and social assistance to live in a manner compatible with human dignity as part of a comprehensive and consistent drive to combat social exclusion, and to adapt their social protection  systems, as necessary, according to the principles and guidelines set out below;  B. to recognize this right according to the following general principles:  1. it is to be a right based on respect for human dignity;  2. the scope of that right is to be defined vis-à-vis individuals, having regard to legal residence and nationality, in accordance with the relevant provisions on residence, with the aim of progressively covering all exclusion situations in that  connection as broadly as possible, in accordance with detailed arrangements laid down by the Member States;  3. every person who does not have access individually or within the household in which he or she lives to sufficient resources is to have access to such right:  - subject to active availability for work or for vocational training with a view to obtaining work in the case of those persons whose age, health and family situation permit such active availability, or, where appropriate, subject to economic and social  integration measures in the case of other persons, and - without prejudice to the Member States' option of not extending this right to persons in full-time employment or to students;  4. access is not to be subject to time limits, assuming compliance with the eligibility conditions and on the understanding that, in practice, the right may be granted for limited but renewable periods;  5. the right is auxiliary in relation to other social rights. An effort should be made in parallel to reintegrate the poorest people into the systems of general rights;  6. it is to be accompanied by those policies deemed necessary, at national level, for the economic and social integration of those concerned, as laid down in the resolution of the Council and of the Ministers for Social Affairs, meeting within the  Council, of 29 September 1989 on combating social exclusion;  C. to organize the implementation of this right according to the following practical guidelines:  1. (a) fixing the amount of resources considered sufficient to cover essential needs with regard to respect for human dignity, taking account of living standards and price levels in the Member State concerned, for different types and sizes of household;   (b) adjusting or supplementing amounts to meet specific needs;  (c) in order to fix the amounts, referring to appropriate indicators, such as, for example, statistical data on the average disposable income in the Member State, statistical data on household consumption, the legal minimum wage if this exists or the  level of prices;  (d) safeguarding an incentive to seek employment for persons whose age and condition render them fit for work;  (e) establishing arrangements for periodic review of these amounts, based on these indicators, in order that needs continue to be covered;  2. granting, to people whose resources taken at the level of the individual or the household are lower than the amounts thus fixed, adjusted or supplemented, differential financial aid to bring them up to these amounts;  3. taking the necessary measures to ensure that, with regard to the extent of the financial support thus granted, the implementation of the regulations in force in the areas of taxation, civil obligations and social security takes account of the  desirable level of sufficient resources and social assistance to live in a manner compatible with human dignity;  4. taking every measure to enable those concerned to receive appropriate social support, comprising measures and services such as, in particular, advice and counselling, information and assistance in obtaining their rights;  5. adopting arrangements in respect of persons whose age and condition render them fit for work, which will ensure they receive effective help to enter or re-enter working life, including training where appropriate;  6. taking the necessary measures to ensure that the least privileged are informed of this right;  simplifying as far as possible the administrative procedures and arrangements for examining means and situations involved in claiming this right;  organizing, in so far as possible and in accordance with national provisions, the machinery for appeals to independent third parties, such as tribunals, to which the persons concerned should have easy access:  D. to guarantee these resources and benefits within the framework of social protection arrangements;  to determine detailed arrangements, finance costs and organize their administration and implementation in accordance with national legislation and/or practice;  E. to implement the measures laid down in this recommendation progressively as from now in such a way that a report can be drawn up after five years,  - taking into account economic and budgetary resources as well as the priorities set by national authorities and balances within social protection systems, and - where appropriate, varying their scope according to age group or family situation;  F. to take appropriate measures:  - to collect information systematically on the actual arrangements for access to these measures for the people concerned, and - to carry out a methodical evaluation of their implementation and impact;  II. AND THEREFORE ASKS THE COMMISSION:  1. to encourage and organize, in liaison with the Member States, the systematic exchange of information and experiences and the continuous evaluation of the national provisions adopted;  2. to submit to the European Parliament, the Council and the Economic and Social Committee, on a regular basis, reports based on information supplied by the Member States describing the progress achieved and obstacles encountered in implementing this  recommendation.  Done at Luxembourg, 24. 6. 1992.  For the Council The President José da SILVA PENEDA (1) OJ No C 163, 22. 6. 1991, p. 3.(2) OJ No C 150, 15. 6. 1992.(3) OJ No C 14, 20. 1. 1992, p. 1.(4) OJ No C 277, 31. 10. 1989, p. 1.(5) OJ No C 262, 10. 10. 1989, p. 194.(6) OJ No C 221, 28. 8. 1989, p. 10.