title: Council Recommendation of 21 March 2017 on the economic policy of the euro area

text:
               24.3.2017

               EN

               Official Journal of the European Union

               C 92/1

         COUNCIL RECOMMENDATION
   of 21 March 2017
   on the economic policy of the euro area
   (2017/C 92/01)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Article 136, in conjunction with Article 121(2) 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 Economic and Financial Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

               Economic recovery in the euro area continues, but remains fragile. There has been significant progress in recent years: since 2015, euro area gross domestic product (GDP) has recovered its pre-crisis level in real terms and unemployment has declined to its lowest level since 2010-2011. However, aggregate demand is sluggish, inflation is well below target, in spite of very accommodative monetary policy by the European Central Bank, and growth is hindered by the legacies of the crisis, such as persisting macroeconomic imbalances and a high level of indebtedness in all sectors of the economy, which require deleveraging and reduce resources available for consumption and investment. Additionally, while the growth potential of the euro area economy has been on a long-term downward trend, that trend has been further accentuated by the crisis. In spite of signs of improvement, the persistent investment gap and high level of unemployment risk further dampening growth prospects. The asymmetric nature of the rebalancing in the euro area economy has continued, with only net debtor countries correcting their imbalances, and is resulting in an increasing current account surplus. In the framework of the global agreement within the G20, the euro area Member States are called upon to use all policy tools, including fiscal and structural — individually and collectively — to achieve strong, sustainable, balanced and inclusive growth.

               (2)

               Ambitious structural reforms should facilitate the smooth and efficient reallocation of human and capital resources and help to address the challenges posed by ongoing technological and structural changes. Reforms that create an enabling business climate, complete the Single Market and remove barriers to investment are necessary. Those efforts are crucial for increasing productivity and employment, strengthening convergence and enhancing the growth potential and adjustment capacity of the euro area economy. Structural reform implementation, by creating efficient markets with responsive price mechanisms, would support monetary policy through facilitating its transmission to the real economy. Reforms that remove investment bottlenecks and support investment can bring a double benefit by supporting economic activity in the short term and creating capacity for long-term sustainable and inclusive growth. Reforms that improve productivity are particularly important for Member States with large deleveraging needs linked to high external debt, as faster growth helps to reduce the debt as a share of GDP. Boosting price- and non-price competitiveness would further contribute to external rebalancing in those countries. Member States with large current account surpluses can contribute to euro area rebalancing by introducing measures, including structural reforms, that facilitate channelling the excessive savings to domestic demand, in particular by strengthening investment. The current environment of low interest rates also offers additional opportunities in that regard, in particular in Member States with significant fiscal space.

               (3)

               Better coordination of the implementation of structural reforms, including those prescribed in the country-specific recommendations and those needed to complete the Economic and Monetary Union (EMU), can create positive spillovers in the Member States and strengthen their positive short-term effects. Eurogroup thematic discussions have proved valuable for building common understanding of reform priorities in the euro area, sharing best practices, promoting reform implementation and structural convergence. Those discussions should continue in the Eurogroup, and be strengthened where possible, including by making effective use of agreed common principles and benchmarking. Those discussions should continue without prejudice to ongoing discussions in relevant Council formations, and while recognising the Union-wide relevance and nature of common challenges and experiences where applicable. In response to the Council Recommendation on the establishment of National Productivity Boards (1) adopted on 20 September 2016, the National Productivity Boards can also contribute to fostering ownership and implementation of the necessary reforms at national level.

               (4)

               A strong coordination of national fiscal policies, based on common rules, is essential to arrive at an appropriate aggregate fiscal stance and for the proper functioning of the monetary union. The common fiscal rules are geared towards pursuing debt sustainability at national level, while providing room for macroeconomic stabilisation. Consequently, the national and aggregate fiscal stances of the euro area have to balance the double objective of ensuring long-term sustainability of national public finances and short-term macroeconomic stabilisation at both country level and the level of the euro area. At the current juncture of high uncertainty about the strength of the recovery and the level of spare capacity in the economy, when monetary policy has delivered substantial accommodation, fiscal policy at the level of the euro area is necessary to complement monetary policy in supporting demand, in particular investment, and moving out of low inflation while taking due account of ongoing debt sustainability concerns. The effectiveness of fiscal policy, including of spillover effects across countries, is enhanced by the context of low interest rates. In its Communication to the European Parliament, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions ‘Towards a positive fiscal stance for the euro area’ issued on 16 November 2016, the Commission considers that for 2017, a fiscal expansion of up to 0,5 % of GDP is desirable at the level of the euro area as a whole in the present circumstances.
               In July 2016, the Eurogroup concluded, on the basis of Commission analysis, that the broadly neutral aggregate fiscal stance in 2017 strikes an appropriate balance. In December 2016, the Eurogroup underlined the importance of striking an appropriate balance between the need to ensure sustainability and the need to support investment to strengthen the fragile recovery, thereby contributing to a more balanced policy mix. At the same time, government debt remains high and there is still a need to make public finances sustainable in the medium term in a number of Member States. For that reason, it is necessary to ensure appropriate differentiation of fiscal efforts across the Member States, taking into account fiscal space and the spillovers across euro area countries. Member States which are over-achieving their fiscal objectives could use their favourable budgetary situation to further strengthen their domestic demand and growth potential, depending on country specific circumstances, while respecting the medium-term objective, the national budgetary prerogatives and national requirements.
               For instance, guarantees to the European Fund for Strategic Investments established by Regulation (EU) 2015/1017 of the European Parliament and of the Council (2) are a particularly effective way for Member States with fiscal space to maximise the impact on the real economy and recovery in the euro area. Member States that need further fiscal adjustments under the preventive arm of the Stability and Growth Pact (SGP) should make sure to be compliant with SGP requirements for 2017. Under the corrective arm of the SGP, Member States need to ensure a timely and durable correction of their excessive deficits which provides fiscal buffers against unforeseen circumstances. Member States should pursue fiscal policies in full respect of the SGP, while making best use of the flexibility embedded within the existing rules. Structural reforms, in particular those that increase productivity, would support growth and improve sustainability of public finances. In addition, a decisive improvement of the composition and management of national budgets, on both the revenue and expenditure sides, by shifting resources towards tangible and intangible investment would increase the impact of budgets on demand in the short term and productivity in the longer term. Effective national fiscal frameworks are necessary to strengthen the credibility of Member States' policies and help strike the right balance between short-term macroeconomic stabilisation, debt sustainability and long-term growth.

               (5)

               Labour markets continue to recover gradually in the euro area, with a steady reduction of unemployment. However, the rates of long-term unemployment and youth unemployment remain high while poverty, social exclusion and inequality remain a serious concern in several Member States. Despite progress with reforms to improve the resilience and adjustment capacity of labour markets, significant differences across the euro area, which continue to challenge its smooth functioning, persist. Well-designed, fair and inclusive labour market, social protection and tax and benefit systems are necessary for a frictionless and constant reallocation of labour towards more productive activities, to support the integration or reintegration of those who are affected by transitions between jobs or are excluded from the labour market, to reduce segmentation, and to promote economic and social convergence, including by increasing the chances of quality employment. They will also result in more effective automatic stabilisation and stronger, sustainable and inclusive growth and employment which are important for addressing the social challenges in the euro area.
               Necessary reforms encompass: (i) changes in employment protection legislation aiming at reliable contractual arrangements that provide flexibility and security for both employees and employers, promote labour market transitions, avoid a two-tier labour market and allow for labour cost adjustment when needed, an area where reform efforts have been particularly intense in recent years; (ii) enhancement of skills by improving the performance and efficiency of education systems and comprehensive lifelong learning strategies, focusing on labour market needs; (iii) effective active labour market policies to help the unemployed, including the long-term unemployed, re-enter the labour market and increase labour market participation; and (iv) modern, sustainable and adequate social protection systems that contribute effectively and efficiently throughout the life-cycle to both social inclusion and labour market integration. Moreover, shifting taxation away from labour, in particular for low-income earners, and ensuring equitable tax systems can improve labour market outcomes. Euro area Member States that have implemented such reforms are more resilient and demonstrate better employment and social performance. The design of such reforms needs to take into account their potential social impact.

               (6)

               The establishment of the Banking Union has progressed, but it remains unfinished. In line with the roadmap of June 2016, as set out in the Council Conclusions of 16 June 2016, work is set to continue to complete the Banking Union with regard to risk reduction and risk sharing, including a European Deposit Insurance Scheme and making the common backstop for the Single Resolution Fund operational at the latest by the end of the Fund's transitional period as defined in Regulation (EU) No 806/2014 of the European Parliament and of the Council (3). While the overall resilience of the euro area banking sector has increased since the crisis, pressure on banks has mounted due to a number of factors, such as high levels of non-performing loans, inefficient business models and overcapacity in some Member States, all resulting in low profitability and, in some cases, challenges to viability. That pressure impairs the ability of the banks to provide lending to the economy. Risks also extend to the real economy, where the level of public and non-financial private debt in some Member States remains elevated. There is a need for a continued orderly deleveraging in the private sector through working out, servicing and, if necessary, restructuring of debt of viable debtors under distress, and by resolving stocks of non-viable debt, so that capital can be reallocated more quickly and efficiently. In this context, dealing with still elevated levels of non-performing loans and following common principles in the design of insolvency frameworks for businesses and households, including by improving national insolvency procedures and out-of-court settlement frameworks, constitute key components of a successful and growth-friendly deleveraging process.

               (7)

               During 2016, some progress was made on the initiatives presented in the Five Presidents' Report ‘Completing Europe's Economic and Monetary Union’ of 22 June 2015 prepared by the President of the European Commission, in close cooperation with the Presidents of the European Council, of the European Central Bank, of the Eurogroup and of the European Parliament, such as the increased role of the euro area dimension in the European Semester, the Council Recommendation on the National Productivity Boards and the establishment of the European Fiscal Board within the Commission. Work is also ongoing on improving transparency and reducing complexity of fiscal rules and, in November 2015, the Commission issued a proposal for a European Deposit Insurance Scheme. Moreover, there are broader challenges to address in the light of the Five Presidents' Report. On 1 March 2017, the Commission issued a White Paper on the Future of Europe, which also includes the future of the EMU. Agreeing on an operational way forward requires a shared sense of ownership and a common sense of purpose among all euro area Member States and the institutions of the Union, and also among non-euro area Member States, as a strong EMU will help to address the challenges facing the Union more forcefully and will have a positive impact on non-euro area Member States as well. In that regard, it is important for discussions on completing the EMU to be conducted in a manner that is open and transparent towards non-euro area Member States, in full respect of the Union's internal market, and for relevant initiatives to be open to non-euro area Member States on an equivalent basis where appropriate.

               (8)

               The Employment Committee and the Social Protection Committee have been consulted on the employment and social aspects of this Recommendation,

         HEREBY RECOMMENDS that in the period 2017-2018, euro area Member States take action within the Eurogroup, individually and collectively, to:

               1.

               Pursue policies that support sustainable and inclusive growth in the short and the long term, and improve adjustment capacity, rebalancing and convergence. Prioritise reforms that increase productivity, improve the institutional and business environment, remove bottlenecks to investment, and support job creation. Member States with current account deficits or high external debt should raise productivity while containing unit labour costs. Member States with large current account surpluses should implement, as a priority, measures, including structural reforms and fostering investment, that help to strengthen their domestic demand and growth potential.

               2.

               Aim for an appropriate balance in fiscal policies between the need to ensure sustainability and the need to support investment to strengthen the recovery, thereby contributing to an appropriate aggregate fiscal stance and a more balanced policy mix. Member States that, according to the Commission assessment, are at risk of not meeting their obligations under the SGP in 2017 should, on that basis, take, in a timely manner, additional measures to ensure compliance. Conversely, Member States that have outperformed their medium-term objectives are invited to continue to prioritise investments to boost potential growth while preserving the long-term sustainability of public finances. Member States that are projected to be broadly compliant with the SGP in 2017 should ensure compliance with the SGP within their national budgetary processes. Pursue fiscal policies in full respect of the SGP, while making the best use of the flexibility embedded within the existing rules. Overall, Member States should improve the composition of public finances by creating more room for tangible and intangible investment, and ensure the effective functioning of national fiscal frameworks.

               3.

               Implement reforms that promote competitiveness, job creation, job quality, resilience and economic and social convergence, underpinned by an effective social dialogue. They should combine: (i) reliable labour contracts which provide flexibility and security for employees and employers; (ii) quality and efficient education and training systems and comprehensive lifelong learning strategies targeted at labour market needs; (iii) effective active labour market policies to support labour market participation; (iv) modern, sustainable and adequate social protection systems that contribute effectively and efficiently throughout the life cycle to social inclusion and labour market integration. Shift taxes away from labour, particularly for low-income earners and in Member States where cost competitiveness lags behind the euro area average, and make that tax shift budget-neutral in countries without the fiscal room for manoeuvre.

               4.

               In line with the roadmap of June 2016, continue work to complete the Banking Union with regard to risk reduction and risk sharing, including a European Deposit Insurance Scheme and making the common backstop for the Single Resolution Fund operational at the latest by the end of the Fund's transitional period. Devise and implement an effective euro-area wide strategy to complement prudential supervisory action to address viability risks within the banking sector, including as regards the high level of non-performing loans, inefficient business models and overcapacity. In Member States with large stocks of private debt, promote orderly deleveraging.

               5.

               Make progress on completing EMU, in full respect of the Union's internal market and in an open and transparent manner towards non-euro area Member States. Further advance the ongoing initiatives and work on the longer-term issues for EMU, taking due account of the Commission White Paper on the Future of Europe.

      Done at Brussels, 21 March 2017.

            For the Council

            The President

         E. SCICLUNA

      (1)  Council Recommendation of 20 September 2016 on the establishment of National Productivity Boards (2016/C 349/01) (OJ C 349, 24.9.2016, p. 1).

      (2)  Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013 — the European Fund for Strategic Investments (OJ L 169, 1.7.2015, p. 1).

      (3)  Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014 establishing uniform rules and a uniform procedure for the resolution of credit institutions and certain investment firms in the framework of a Single Resolution Mechanism and a Single Resolution Fund and amending Regulation (EU) No 1093/2010 (OJ L 225, 30.7.2014, p. 1).


title: Council Recommendation of 14 July 2015 on the implementation of the broad guidelines for the economic policies of the Member States whose currency is the euro

text:
               18.8.2015

               EN

               Official Journal of the European Union

               C 272/98

         COUNCIL RECOMMENDATION
   of 14 July 2015
   on the implementation of the broad guidelines for the economic policies of the Member States whose currency is the euro
   (2015/C 272/26)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Article 136 in conjunction with Article 121(2) 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 conclusions of the European Council,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

               Sustaining and strengthening the development of the euro area requires continued policy efforts to support a balanced adjustment in the private and public sectors and increase the economy's growth potential in the medium to long term. While economic recovery in the euro area is ongoing, it is hampered by legacies of the recent economic and financial crises, including ongoing external rebalancing, high levels of public and private debt and related deleveraging pressures, persistent structural rigidities in national labour and product markets, high unemployment, and low confidence, and a persistent weakness in investment. So far, implementation of the reforms set out in the country-specific recommendations has not been sufficiently ambitious.

               (2)

               The euro area is more than just the sum of its members. The euro area economies are closely interrelated, underscoring the need for stronger coordination of fiscal, financial and structural policies. The policy stance at the euro area level should promote growth and jobs, while at the same time ensuring that the progress made in rebalancing is sustained and fostered. Euro area Member States have a specific responsibility for effective implementation of the governance framework, which has been significantly strengthened in recent years. This calls for increased peer pressure to support national reform implementation and fiscal prudence. It also calls for greater assessment of national reforms from a euro area perspective, internalising potential spillovers and stimulating policies of particular importance for a well-functioning Economic and Monetary Union.

               (3)

               The implementation of ambitious structural reforms that modernise economies and boost competitiveness and growth potential is not yet sufficient in the euro area. The extent of imbalances prior to the crisis, the position in the business cycle, and the fiscal space available vary significantly across Member States. Despite improvements in labour markets and some progress with reforms to improve the resilience of labour markets, unemployment rates remain high and long-term unemployment risks becoming entrenched, further weakening the social situation in the most vulnerable countries. External rebalancing is ongoing, but progress has been asymmetric and elevated current account surpluses in a few Member States persist. Ambitious structural reforms of labour and product markets would facilitate the necessary economic adjustment within the euro area and boost growth in the countries that implement them. By increasing employment and lowering prices for consumers, reforms also contribute to greater social inclusion. If carried out jointly across Member States, structural reforms offer benefits to the euro area as a whole through positive spillover effects through trade and financial channels. This would also encourage the appropriate policy choices in the rest of the euro area. The thematic discussions of the Eurogroup can help this process via the assessment and benchmarking of reforms and their impact on the euro area as a whole. This can be done through learning from best practice, agreement on common principles for good reforms and peer pressure. In view of the adjustment process at national level and therefore the functioning of the euro area, regular monitoring of progress with reforms in Member States which are experiencing excessive imbalances and imbalances requiring decisive action is particularly important.

               (4)

               One of the key policy challenges facing the euro area is to reduce government debt by pursuing fiscal responsibility. Thanks to the consolidation efforts of the past years, the euro area fiscal situation has improved but the coordination of fiscal policies remains sub-optimal. A number of euro area Member States still need to continue with fiscal adjustment to bring down very high levels of debt. Other countries have more room for manoeuvre and could use it to encourage domestic demand, with a particular emphasis on investment; this would support domestic growth and the euro area as a whole. The flexibility embedded in the Stability and Growth Pact rules allows Member States to facilitate structural reforms and investment, while following the commonly agreed rules. Fiscal strategies are not yet sufficiently growth-friendly. On the revenue side, despite increased coordination in the Eurogroup, there is further scope for improving the efficiency of tax systems and reducing the tax wedge on labour. On the expenditure side, more focus is needed on public investment, backed by sound cost-benefit analysis, and other public expenditure with strong and positive growth effects. Spending reviews have emphasised the need for efficiency gains in public administration. Well-functioning national fiscal frameworks will support this process.

               (5)

               Financial market conditions in the euro area have been improving, but lending to the private sector remains subdued and financial markets remain fragmented. This is holding back investment in the euro area. As a result, a wide investment gap has opened, while investment needs exist both in terms of tangible and intangible investments. The EU Investment Plan offers opportunities to mobilise investment and channel it into productive uses. However, the impact of the Investment Plan and the ECB's expanded asset purchase programme will be larger when accompanied by measures in the broader financial sector to restore credit flows, deepen capital markets and boost the long-term financing of the economy. Completion of the banking union is underway and will be supported by the application of the single rulebook and a consistent regulatory approach. Better integrated and more efficient capital markets would mobilise further funding for investment, make the European economy less dependent on banks, and make its financial structures more balanced and more stable.

               (6)

               Notwithstanding the recent achievements in strengthening the EMU architecture, current challenges call for progress in completing its design. Further developing EMU will require a step-by-step approach combining discipline with solidarity. The President of the Commission, together with the Presidents of the European Council, the European Parliament, the European Central Bank, and the Eurogroup, will prepare the next steps on better economic governance in the euro area,

         HEREBY RECOMMENDS that euro area Member States take action within the Eurogroup, in the period 2015-2016, to:

               1.

               Use peer pressure to promote structural reforms that facilitate the correction of large internal and external debts and support investment. Regularly assess the delivery of reforms in those Member States which require specific monitoring within the framework of the Macroeconomic Imbalances Procedure. Continue the regular thematic assessment of structural reforms. By spring 2016, take decisions on the follow-up to the coordination exercise on reducing the high tax wedge on labour and on reforming services markets.

               2.

               Coordinate fiscal policies to ensure that the aggregate euro area fiscal stance is in line with sustainability risks and cyclical conditions. This is without prejudice to the fulfilment of the requirements of the Stability and Growth Pact. By spring 2016, hold thematic discussions on improvements in the quality and sustainability of public finances, focussing in particular on the prioritisation of tangible and intangible investment at national and EU levels, and on making tax systems more growth friendly. Monitor the effective functioning of the recently strengthened national fiscal frameworks.

               3.

               Ensure the timely finalisation of the follow up of the Comprehensive Assessment carried out by the European Central Bank, implementation of Directive 2014/59/EU of the European Parliament and of the Council (3) (Bank Recovery and Resolution Directive), completion of the ratification of the Intergovernmental Agreement on the Single Resolution Fund and make the Fund fully operational as from January 2016. Promote measures to deepen market-based finance, to improve access to finance for SMEs and to develop alternative sources of finance. Encourage further reforms of national insolvency frameworks.

               4.

               Take forward work on deepening Economic and Monetary Union, and contribute to the improvement of the economic surveillance framework in the context of the report on the next steps on better economic governance in the euro area, prepared by the President of the European Commission, Jean-Claude Juncker, in close cooperation with the President of the European Council, Donald Tusk, the President of the European Parliament, Martin Schulz, the President of the European Central Bank, Mario Draghi, and the President of the Eurogroup, Jeroen Dijsselbloem, and its follow-up.

      Done at Brussels, 14 July 2015.

            For the Council

            The President

         P. GRAMEGNA

      (1)  OJ L 209, 2.8.1997, p. 1.

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

      (3)  Directive 2014/59/EU of the European Parliament and of the Council of 15 May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012, of the European Parliament and of the Council (OJ L 173, 12.6.2014, p. 190).


Avis juridique important

|

31980H1089

80/1089/EEC: Commission Recommendation of 11 November 1980 to the Member States concerning tests relating to the safety evaluation of food additives

Official Journal L 320 , 27/11/1980 P. 0036 - 0036 Spanish special edition: Chapter 13 Volume 11 P. 0089  Portuguese special edition Chapter 13 Volume 11 P. 0089

COMMISSION RECOMMENDATION of 11 November 1980 to the Member States concerning tests relating to the safety evaluation of food additives (80/1089/EEC)    THE COMMISSION OF THE EUROPEAN COMMUNITIES,  Having regard to the Treaty establishing the European Economic Community and in particular Article 155 thereof,  Whereas by Decision 74/234/EEC (1) the Commission instituted a Scientific Committee for Food;  Whereas the Scientific Committee for Food in its opinion of 22 February 1980 (2) elaborated guidelines for the safety assessment of food additives to indicate the general principles applied by the Committee in advising on health questions associated with their approval;  Whereas in the normal course of events the Commission consults the Committee in drawing up legislation on food additives;  Whereas the Commission endorses the Committee's recommendations on guidelines for the safety assessment of food additives without prejudice to recommendations which might be formulated by the Commission for chemical substances having other uses;  Whereas therefore the Commission requires that in as far as it is possible information supporting the inclusion of food additives in a Community list should include toxicological and technological data developed in accordance with these guidelines;  Whereas in the interests of harmonization, and to avoid wastage of resources, it is desirable that Member States align their national requirements on the subject;  Whereas tests designed to evaluate the quality and safety of food additives must be constantly adapted to take account of the latest scientific and technical knowledge, and the development of a Community approach to the methodology used in the testing of chemical substances,  RECOMMENDS TO THE MEMBER STATES TO:       1. Comply with the principles and methodology described in the Guidelines for the Assessment of Food Additives established by the Scientific Committee for Food on 22 February 1980 for the conduct of tests and in the presentation of results on food additives suggested for inclusion in a Community list.       2. Incorporate the provisions of those guidelines in those of their national approval requirements for food additives which are not yet the subject of Community legislation.           Done at Brussels, 11 November 1980.  For the Commission  Étienne DAVIGNON  Member of the Commission  (1) OJ No L 136, 20.5.1974, p. 1.  (2) Reports of the Scientific Committee for Food, 10th series (1980).


title: Recommendation for a Council recommendation with a view to bringing an end to the situation of an excessive government deficit in the United Kingdom

text:
   EN
EN    EN
 ---pagebreak---                     COMMISSION OF THE EUROPEAN COMMUNITIES
                                                      Brussels, 2.7.2008
                                                      SEC(2008) 2189 final
                                    Recommendation for a
                             COUNCIL RECOMMENDATION
   with a view to bringing an end to the situation of an excessive government deficit in the
                                       United Kingdom
                                (presented by the Commission)
EN                                                                                EN
 ---pagebreak---                                             Recommendation for a
                                     COUNCIL RECOMMENDATION
     with a view to bringing an end to the situation of an excessive government deficit in the
                                               United Kingdom
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community, and in particular
   Article 104(7) thereof;
   Having regard to the recommendation from the Commission;
   Whereas:
   (1)     Article 104 of the Treaty lays down an excessive deficit procedure (EDP) to ensure
           that Member States avoid excessive government deficits or that they correct such
           deficits when they occur.
   (2)     Pursuant to point 5 of the Protocol on certain provisions relating to the United
           Kingdom of Great Britain and Northern Ireland, the obligation in Article 104(1) of the
           Treaty to avoid excessive general government deficits does not apply to the United
           Kingdom unless it moves to the third stage of economic and monetary union1. While
           in the second stage of economic and monetary union, the United Kingdom is required
           to endeavour to avoid excessive deficits, pursuant to Article 116(4) of the Treaty.
   (3)     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.
   (4)     The Council has decided on 8 July 2008, in accordance with Article 104(6) of the
           Treaty, that an excessive deficit exists in the United Kingdom.
   (5)     In accordance with Article 104(7) of the Treaty and Article 3 of Council Regulation
           (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive
           deficit procedure2 (which is part of the Stability and Growth Pact), the Council is also
           required to make recommendations to the Member State concerned with a view to
           bringing the situation of excessive deficit to an end within a given period. The
           recommendation has to establish a deadline of six months at the most for effective
           action to be taken by the Member States concerned to correct the excessive deficit as
           well as a deadline for the correction of the excessive deficit, which should be
   1
           http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:12006E/PRO/25:EN:HTML
   2
           OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) No 1056/2005 (OJ L 174,
           7.7.2005, p. 5).
EN                                                      2                                             EN
 ---pagebreak---        completed in the year (financial year in the case of the United Kingdom) following its
       identification unless there are special circumstances. In deciding whether special
       circumstances exist, “relevant factors” as clarified in Article 2(3) of Regulation (EC)
       No 1467/97 should be given due consideration. Article 3(4) of Regulation (EC) No
       1467/97 also specifies that in a recommendation to a Member State to correct an
       excessive deficit the Council should request the achievement of a minimum annual
       improvement in the structural balance of 0.5% of GDP as a benchmark.
   (6) The Commission, in its spring 2008 forecast, projected that on the basis of unchanged
       policies the general government deficit would rise from 2.9% of GDP in financial year
       2007/08 to 3.3% in 2008/09, and to remain at 3.3% in 2009/10. Real GDP growth,
       following an outturn of 3.0% in 2007, was projected to slow to 1.7% in 2008 and
       further to 1.6% in 2009. Against the background of the cyclical position moving from
       a positive output gap in 2007 to a negative one in 2008, the cyclically-adjusted deficit
       was projected to increase from 3.0% of GDP in 2007/08 to 3.1% of GDP in 2008/09.
       Thereafter, the cyclically-adjusted deficit was projected to narrow to 2.9% of GDP in
       2009/10, reflecting the combined effects of discretionary measures, including the
       higher taxes on alcohol and motor vehicles introduced in the 2008 Budget, and a small
       planned fall in the government expenditure ratio. In part due to significant projected
       primary deficits, general government gross debt was forecast to increase from 43.2%
       of GDP in the 2007/08 financial year to reach 47½% of GDP in 2009/10.
   (7) In the United Kingdom's 2008 Budget, the authorities presented budgetary plans
       showing a general government deficit of 3.2% of GDP in 2008/09, thereafter falling to
       2.8% in 2009/10. The deficit figure in the latter year is lower than the corresponding
       figure in the Commission services' spring 2008 forecast of 3.3% of GDP, mainly due
       to differences in expected GDP growth in 2009/10. Subsequent to the 2008 Budget
       and the Commission services’ spring forecast, the United Kingdom announced
       additional fiscal measures on 13 May 2008 relating to changes in personal income tax
       bands for the financial year 2008/09. The changes are expected to reduce personal
       income tax receipts in 2008/09 and will be financed by additional government
       borrowing. Other things being equal, this will lead to an increase in the 2008/09 deficit
       ratio forecast by the Commission services by 0.2 percentage points3, to around 3.5% of
       GDP, with a similar impact on the structural deficit. Furthermore, the UK
       government's statement implies a risk of a deficit overshoot also in 2009/10 relative to
       the deficit expected in the spring forecast.
   (8) In the case of the United Kingdom, the consideration of relevant factors, as clarified in
       Article 2(3) of Regulation (EC) No 1467/97 and examined in the Commission’s report
       under Article 104(3), does not suggest the presence of special circumstances
       warranting a departure from the standard deadline for correcting the deficit. While
       GDP growth is expected to slow in 2008 and 2009 relative to potential growth rates,
       leading to the emergence of a negative output gap, GDP growth is expected to remain
       positive throughout the spring forecast horizon at annual rates above 1.5% in 2008 and
       2009. A deadline for correction of an excessive deficit is to be set in accordance with
       the aforementioned Regulation, which envisages that the correction should be
   3
       In the UK government's income tax announcement published on 13 May 2008, the cost of the income
       tax reduction was stated to amount to £2.7bn in 2008/09, which is estimated by the Commission to be
       equivalent to 0.2% of GDP.
EN                                                  3                                                      EN
 ---pagebreak---            completed in the year following its identification. In the case of the United Kingdom
           the identification took place in 2008 on the basis of a planned deficit in excess of the
           3% of GDP reference value in 2008/09. Accordingly the headline deficit should be
           brought below the 3% of GDP reference at the latest by financial year 2009/10. For
           this correction to be sustainable, based on the Commission services' spring forecast,
           the UK authorities would have to achieve a structural improvement of at least 0.5% of
           GDP in 2009/10.
   (9)     In general, in the view of the Council, budgetary consolidation measures should secure
           a lasting improvement in the general government balance, while being geared towards
           enhancing the quality of the public finances and reinforcing the growth potential of the
           economy. A budgetary correction in the United Kingdom should be consistent with
           these objectives.
   HEREBY RECOMMENDS:
   – The United Kingdom authorities should put an end to the excessive deficit situation as
       soon as possible and by financial year 2009/10 at the latest, in accordance with Article 3(4)
       of Council Regulation (EC) No 1467/97, by bringing the general government deficit below
       3% of GDP in a credible and sustainable manner.
   – To this end, on the basis of the Commission services' spring 2008 forecast, the authorities
       should ensure a structural improvement of at least 0.5% of GDP in 2009/10.
   The Council establishes the deadline of 8 January 2009 for the United Kingdom authorities to
   take effective action to this end.
   In addition, the Council invites the United Kingdom authorities to ensure that, after the
   excessive deficit has been corrected, budgetary consolidation is sustained towards a medium-
   term budgetary objective that (i) provides an adequate safety margin with respect to the 3% of
   GDP deficit limit; (ii) maintains prudent debt ratios taking into account the economic and
   budgetary impact of ageing populations; and (iii) taking (i) and (ii) into account, allows room
   for budgetary manoeuvre, in particular considering the needs for public investment.
   This recommendation is addressed to the United Kingdom of Great Britain and Northern
   Ireland
   Done at Brussels,
                                                 For the Council
                                                 The President
EN                                                 4                                                 EN


Avis juridique important

|

31989H0601

89/601/EEC: Commission Recommendation of 8 November 1989 concerning the training of health personnel in the matter of cancer

Official Journal L 346 , 27/11/1989 P. 0001 - 0007

*****COMMISSION  RECOMMENDATION  of 8 November 1989  concerning the training of health personnel in the matter of cancer  (89/601/EEC)  I. Cancer is a disease on which there has been a great deal of action, both public and private, for many years. This action has covered many aspects, including research, prevention, screening, treatment, and the counselling of patients and their families. Our knowledge about the disease and its management has advanced considerably, but cancer remains one of the biggest causes of death in modern society.  The initiative taken at the European Councils of June 1985 in Milan and December 1985 in Luxembourg was innovative in that it was the first time that a specific disease had been singled out for a broad attack at European Community level. The results already obtained in pursuit of the 'Europe against cancer' programme have confirmed that the initiative was justified, in particular in the field of the training of health personnel.  II. In order to facilitate the mutual recognition of diplomas, certificates and other qualifications between Member States, as provided for in Article 57 of the EEC Treaty, the Council, by successive Decisions, set up the Advisory Committee on Medical Training (1), the Advisory Committee on Training in Nursing (2) and the Advisory Committee on the Training of Dental Practitioners (3). The Advisory Committees are the authoritative sources of advice on professional training of health personnel to the Commission and to the Member States at Community level.  At the request of the Commission and on the basis of the recommendations of the committee of cancer experts, their contribution to the 'Europe against cancer" programme has been to review how the subject of cancer is taught to members of their professions, at all levels in their training, and to make recommendations for improving such training. The Advisory Committees carried out their reviews during 1987/88, and have now adopted the enclosed recommendations which constitute the practical application of the first action programme (1987 to 1989) on the training of health personnel (measures 51 and 52) (4).  III. The Commission attaches considerable importance to the recommendations of the three Advisory Committees, which have underlined the value of looking at training collectively at Community level, and of generating ideas for bringing about improvements while respecting national competences and academic freedom.  All the specific recommendations by these advisory committees should be the subject of wide-ranging debate among those responsible at national and regional level in each Member State.  For its part, within the framework of its responsibilities and the available funds, the Commission intends to propose as part of the second 'Europe against cancer' programme (1990 to 1994) measures which can contribute at Community level to improving training in cancer of those belonging to the health professions.  In particular, measures should be undertaken to encourage the mobility between the Member States of such persons, the exchange of experience in the area of prevention, treatment and terminal care, the collection and exchange of teaching materials of interest at Community level and the establishment of pilot European networks of medical, nursing and dentistry schools.  IV. The Commission intends to work together with the responsible authorities and training establishments in the Member States in the future development of ideas and recommendations relating to the training of health personnel in matters concerning cancer. In this context, the Commission will encourage from 1990 an examination of progress recorded in the Member States as regards the practical implementation of the recommendations.  The Commission, believing that the attached recommendations on training in cancer adopted by the Advisory Committee on Medical Training, the Advisory Committee on Training in Nursing, and the Advisory Committee on the Training of Dental Practitioners, constitute a good basis for the widest possible discussion in the Member States, makes the following recommendation pursuant to the EEC Treaty, and in particular the second indent of Article 155 thereof:  The Commission recommends that the Member States, their competent authorities and their establishments responsible for professional training make every effort to ensure, in accordance with their respective competence, that these recommendations are widely distributed, discussed and implemented.  This recommendation is addressed to the Member States.  Done at Brussels, 8 November 1989.  For the Commission  Vasso PAPANDREOU  Member of the Commission  (1) Decision 75/364/EEC (OJ No L 167, 30. 6. 1975, p. 17).  (2) Decision 77/454/EEC (OJ No L 176, 15. 7. 1977, p. 11).  (3) Decision 78/688/EEC (OJ No L 233, 24. 8. 1978, p. 15).  (4) OJ No C 50, 26. 2. 1987, p. 1.  ANNEX I  RECOMMENDATIONS  of the Advisory Committee on Medical Training  1. The training of doctors in cancer should be vigorously advanced by both teaching and research in the subject.  2. Each medical school should have an undergraduate teaching programme in cancer. Coordination of this programme is of critical importance, and should be implemented.  3. The vital role of the general practitioner both in the prevention and early diagnosis of cancer should be recognized and developed in all possible ways.  4. General practitioners should receive specific training in those aspects of the care of cancer patients particularly relevant to general practice, such as screening methods, counselling, appropriate methods of treatment, rehabilitation and terminal care.  5. Trainees in all relevant disciplines should receive appropriate teaching in the biology of neoplastic disease and in the scientific and clinical basis of treatment.  6. In those countries where oncologists are recognized, agreement should be reached on minimal objectives and requirements for the training of such specialists.  7. The principles of epidemiology should be taught at all levels of training.  8. All postgraduate trainees should have opportunities for gaining experience in both basic and clinical research.  9. The importance of inter-disciplinary cooperation in the care of patients with cancer should be recognized and encouraged in all relevant disciplines.  10. Efforts should be made to coordinate the activities of cancer institutes, specialist and scientific societies, universities and all types of hospital both in regard to clinical training and cancer research.  11. Modern teaching techniques should be used whenever appropriate at all levels of training.  12. More advantage should be taken of existing opportunities for promoting the interchange within the European Community of teachers, undergraduate students, postgraduate students and research workers.  13. All those responsible for planning programmes of continuing medical education should ensure that the subject of oncology receives appropriate emphasis. Particular attention should be given to the needs of doctors who, by nature of their isolated practice, do not have easy access to institutions providing continuing education programmes.  ANNEX II  RECOMMENDATIONS  of the Advisory Committee on Training in Nursing  I. BASIC TRAINING  1. Basic training of nurses should include in a systematic and global way the prevention of cancer, participation in detection and diagnosis, identification of the problems of cancer patients and responding to their specific needs, the administration of anti-cancer therapy programmes, participation in rehabilitation as well as the care of patients in the terminal stage of their illness, and the care of the family of cancer patients.  2. The training of nurses in the care of cancer patients should be based upon a nursing model adapted to the situation of such patients. It should serve as a framework for organising the actual training in accordance with clearly established teaching objectives. The objectives of nursing care are identifying and interpretating the needs of the individual, and responding to them in an appropriate and personalized manner. Nurse training should react to these objectives and should prepare the nurse to practice his or her profession in a responsible manner. Nurses should therefore have the capacity to take decisions, resolve problems, assess their actions and to adapt themselves to the particular situations of patients and to the evolution of knowledge.  3. Together with the other professionals concerned, nurses should participate actively in action programmes against cancer, collaborate in informing and educating the general public about the positive benefits of prevention, screening and detection, and the early treatment of cancerous conditions. To fulfill this task nurses through their own training must acquire a positive attitude towards this very real social problem and should equip themselves, with a sound base of knowledge which they can use in their clinical training.  4. Given the speed of developments and discoveries, as much in the level of understanding of physio-pathological processes and mechanisms as in diagnostic and therapeutic techniques, basic training must provide nurses with the substantial tools to enable them to make use of their knowledge and practical skills, and to reinforce their ability. It is a question of a dynamic process, in a constant state of evolution.  5. The teaching materials that cover the prevention, screening and treatment of cancer, the fruit of work carried out in teaching establishments and cancer research and treatment centres, must be developed and a European Community network set up for the exchange of information so as to make the best possible use of human, material and financial resources.  6. The basic training must prepare nurses for interdisciplinary tasks, for team work is essential in patient care and even more so in the case of cancer patients.  II. POST BASIC TRAINING  A. Continuing education  1. Continuing training courses that deal with cancer care should be made available to as many nurses as possible by setting up organizational procedures that can adjust to personal and professional constraints. The organization of these activities should be encouraged and the resources necessary for their realization should be found.  2. Continuing education in the field of cancer care must not be developed as a way of making up for gaps in basic training; it must be an extension of basic training, taking account of prerequisites and exploiting acquired experience. The courses must comply with adult education principles.  3. In the context of cancer care the objectives of the continuing training programmes are to update acquired knowledge, reinforce it on specific aspects and stimulate and promote reflection on nurses' actual professional experience with cancer patients. The course content must not therefore be limited to passing on theoretical information on pathology and diagnostic and therapeutic methods, but must also cover relationships and personal and ethical question which nurses have to face in their daily work with cancer patients. 4. Both the conditions of access to continuing training courses and the structures used must be very flexible. Distance learning should be promoted, and the Committee recommend that the exchange of knowledge, experience and teaching materials be encouraged at Community level. It is in fact complementary to group sessions and leads to a more effective use of the knowledge acquired.  5. The requirements and expectations of the nurses concerned must be carefully analysed before any continuing education programme is set up. Common training courses drawn up by nurses having special experience of caring for cancer patients and fighting cancer in cooperation with other professionals could be developed and distributed in the various Member States. Such programmes would not constitute sets of rules, but serve as scientific references for the national authorities wishing to introduce such training. Such training courses should make the maximum use of modern teaching technology.  B. Advanced training  1. Improving the quality of the care provided for cancer patients is a priority. It is therefore essential that nurses who have completed high level training in cancer care should take part in the research carried out in this field, fulfilling an advisory role in the departments concerned and providing special training for nursing staff.  2. This advanced training in cancer care should be at the highest appropriate level. The general and specific objectives of such a training programme and its contents should be drawn up by a group of expert nurses in cooperation with other professionals and form a common core for the Member States. Specialized centres should be associated in the implementation of these high level programmes.  3. The content of the training should not concentrate only on the acquiring of theoretical medical knowledge; it must also incorporate human relations and the acquiring of skills in managing teams of nurses responsible for cancer patients. The theoretical teaching must be supplemented by suitable clinical teaching, preferably in hospital departments or other centres specialized in cancer care.  4. In the course of the advanced training the student should take part in research work in the field of cancer nursing. Publication of work in this area should be promoted and stimulated.  ANNEX III  RECOMMENDATIONS  of the Advisory Committee on the Training of Dental Practitioners  1. Objectives and guidelines should be drawn up at European Community level on the content of a core curriculum upon oral precancer and cancer for undergraduate dental students (1).  2. Consideration should be given to the use (in whole or part) of these objectives and guidelines for the teaching of these same subjects to undergraduate medical students.  3. The basic dental curriculum must equip the general dental practitioner to play a major role in prevention, and in the early detection and diagnosis of oral malignancies so that treatment may be initiated at as early a stage as possible.  4. Emphasis should be placed upon clinical experience during basic training. To this end, where necessary, dental faculties should collaborate closely with medical services to ensure that dental students obtain access to a wide range of patients with malignant disease. At all major centres for the treatment of cancer there should be a dentally qualified specialist with particular knowledge of oral oncology.  5. There should be developed urgently at European Community level continuing dental education courses on oral precancer and cancer.  6. Similarly, consideration should be given to developing at Community level common teaching material in oral precancer and cancer, possibly in association with the medical profession.  7. The three action programmes set out in the Appendix should be implemented as early as possible in all Member States.  (1) The Advisory Committee has made explicit proposals for such objectives and guidelines (Doc. III/D/886/3/88).  Appendix  Action Programme No 1  National dental associations in all Member States should give consideration to the desirability and feasibility that on one day or more in 1989 citizens in accepted risk groups for oral precancer and oral cancer should be offered a free examination of the oral cavity and associated regions by general dental practitioners.  Action Programme No 2  The national bodies in the individual Member States responsible for continuing dental education should in 1989/90 arrange a national meeting upon oral precancer and oral cancer with emphasis on early diagnosis and prevention as the main theme of the meeting. The meeting should be open to all dental practitioners.  National dental journals should be fully involved in propulgating to the profession current knowledge on oral precancer and cancer.  Action Programme No 3  The national dental associations of the different Member States in cooperation with national cancer organizations and dental school's should prepare informative material for the general public with emphasis on early signs of oral precancer and oral cancer and prevention of oral precancer and oral cancer.


title: Council Recommendation of 11 July 2017 on the 2017 National Reform Programme of Austria and delivering a Council opinion on the 2017 Stability Programme of Austria

text:
               9.8.2017

               EN

               Official Journal of the European Union

               C 261/83

         COUNCIL RECOMMENDATION
   of 11 July 2017
   on the 2017 National Reform Programme of Austria and delivering a Council opinion on the 2017 Stability Programme of Austria
   (2017/C 261/19)
   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 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 16 November 2016, the Commission adopted the Annual Growth Survey, marking the start of the 2017 European Semester for economic policy coordination. The priorities of the Annual Growth Survey were endorsed by the European Council on 9-10 March 2017. On 16 November 2016, on the basis of Regulation (EU) No 1176/2011 of the European Parliament and of the Council (2), the Commission adopted the Alert Mechanism Report, in which it did not identify Austria as one of the Member States for which an in-depth review would be carried out. On the same date, the Commission also adopted a recommendation for a Council Recommendation on the economic policy of the euro area, which was endorsed by the European Council on 9-10 March 2017. On 21 March 2017, the Council adopted the Recommendation on the economic policy of the euro area (‘Recommendation for the euro area’) (3).

               (2)

               As a Member State whose currency is the euro and in view of the close interlinkages between the economies in the economic and monetary union, Austria should ensure the full and timely implementation of the Recommendation for the euro area, as reflected in recommendation (1) below.

               (3)

               The 2017 country report for Austria was published on 22 February 2017. It assessed Austria’s progress in addressing the country-specific recommendations adopted by the Council on 12 July 2016, the follow-up given to the country-specific recommendations adopted in previous years and Austria’s progress towards its national Europe 2020 targets.

               (4)

               Austria submitted its 2017 National Reform Programme on 21 April 2017 and its 2017 Stability Programme on 2 May 2017. In order to take account of their interlinkages, the two programmes have been assessed at the same time.

               (5)

               Relevant country-specific recommendations have been addressed in the programming of the European Structural and Investment Funds (ESI Funds) for the 2014-2020 period. As provided for 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 that provision in guidelines on the application of the measures linking effectiveness of the ESI Funds to sound economic governance.

               (6)

               Austria is currently in the preventive arm of the Stability and Growth Pact and subject to the debt rule. In its 2017 Stability Programme, the Government expects that the headline deficit will improve to 1,0 % of GDP in 2017 and then reach 0,3 % of GDP in 2021. The medium-term budgetary objective — a structural deficit of 0,45 % of GDP until 2016 and 0,5 % of GDP thereafter — is foreseen to be met in 2019. According to the Stability Programme, the general government debt-to-GDP ratio is expected to gradually decline to 71,0 % in 2021 from 84,6 % in 2016. The macroeconomic scenario underpinning those budgetary projections is favourable, assuming buoyant growth of investment and exports in 2017 and 2018.

               (7)

               The Stability Programme indicates that the budgetary impact of the exceptional inflow of refugees and security-related measures is significant and provides adequate evidence of the scope and nature of these additional budgetary costs. According to the Commission, the eligible additional expenditure in 2016 amounted to 0,25 % of GDP for the exceptional inflow of refugees and 0,04 % of GDP concerning security-related measures. In 2017, the additional impact compared to 2016 of the security-related measures is currently estimated at 0,01 % of GDP. The provisions set out in Articles 5(1) and 6(3) of Regulation (EC) No 1466/97 cater for this additional expenditure, in that the inflow of refugees as well as the severity of the terrorist threat are unusual events, their impact on Austria’s public finances is significant and sustainability would not be compromised by allowing for a temporary deviation from the adjustment path towards the medium-term budgetary objective. Therefore, the required adjustment towards the medium-term budgetary objective for 2016 has been reduced to take into account additional refugee-related and security-related costs. Regarding 2017, a final assessment, including on eligible amounts, will be made in spring 2018 on the basis of observed data as provided by the Austrian authorities.

               (8)

               On 12 July 2016, the Council recommended Austria to ensure that the deviation from the medium-term budgetary objective is limited to the allowance linked to the budgetary impact of the exceptional inflow of refugees (5), and to that effect achieve an annual fiscal adjustment of 0,3 % of GDP in 2017 unless the medium-term budgetary objective is respected with a lower effort. Based on the Commission 2017 spring forecast, the structural balance is required to remain stable in 2017, taking into account the granted allowances. The Commission forecast points to a risk of some deviation from that requirement in 2017. In 2018, based on the Commission 2017 spring forecast, Austria should ensure that the nominal growth rate of net primary government expenditure (6) does not exceed 2,2 %, corresponding to an improvement in the structural balance by 0,3 % of GDP (7). Under unchanged policies, Austria would be at risk of some deviation from the requirement in 2018. At the same time, Austria is forecast to comply with the debt rule in 2017 and 2018. Overall, the Council is of the opinion that Austria needs to stand ready to take further measures to ensure compliance in 2017 and 2018.

               (9)

               Pension spending and healthcare spending pose a medium risk to fiscal sustainability in the medium and long term, due to a rapidly ageing population. Austria’s public expenditure on pensions is relatively high compared to other Member States and is expected to increase by 0,5 percentage points of GDP by 2060. This compares to the Union average which is expected to decrease by 0,2 percentage points of GDP over the same period. The effective retirement age remains low despite recent reforms and is one of the main drivers of higher pension expenditure. Expressed as the average exit age from the labour market it is 62 years and 6 months for men and 61 years for women, which is below the Union average of 63 years and 7 months for men and 62 years and 7 months for women (2014). Furthermore, the current statutory retirement age for women of 60 years is among the lowest in the Union, and it will only start to be harmonised with that of men in 2024. Linking the statutory retirement age to changes in life expectancy would help to ensure pension sustainability in an ageing demographic context, also by contributing to raising the effective retirement age.

               (10)

               For healthcare, public expenditure is expected to rise significantly in the medium and long term from already high levels, namely by 1,3 percentage points of GDP by 2060 compared to the Union average of 0,9 percentage points. The main driver of the high healthcare spending is the large hospital sector, while the less costly outpatient care is underutilised. The proportion of hospital expenditure in overall healthcare costs is one of the highest in the Union. The recent initiatives aimed at strengthening the provision of primary care therefore need to be thoroughly implemented, including by supporting new financial agreements between healthcare providers and social security funds. Furthermore, Austria’s hospital sector makes insufficient use of effective public procurement such as Union-wide tendering (0,23 % of GDP compared to 0,62 % Union average), procurement aggregation and non-price award criteria.

               (11)

               The 2017 financial equalisation law has helped to simplify the financial relations between the different layers of government in Austria. Nevertheless, the fiscal framework in Austria remains overly complex in terms of competencies and financial arrangements, and still suffers from misalignments between limited revenue-raising powers and broader spending responsibilities of local and federal state governments.

               (12)

               While the 2016 tax reform has reduced the tax wedge from 49,5 % to 46,7 %, it remains relatively high compared to the Union average of 40,6 % (figures refer to a single average income earner without children). In the absence of an indexation of tax brackets to inflation, the tax wedge will again gradually increase as an effect of the yearly fiscal drag. By contrast, more growth-friendly sources of revenue, such as recurrent property taxes, are underutilised, mainly because the tax base is outdated. Revenues from recurrent property taxes in Austria are very low, amounting to 0,2 % of GDP compared to the Union average of 1,6 % of GDP in 2014. Similarly, the implicit tax rate on energy in Austria is relatively low, pointing to unexploited potential for environmental taxes, which also include positive behavioural incentives.

               (13)

               While the labour market performs better in Austria than in most Member States, challenges remain. In particular, women’s labour market potential is underused, as reflected in the high gender pay gap, resulting, inter alia, from a high share of part-time employment. In 2015, the gender pay gap was 21,7 %, compared to the Union average of 16,3 %. The high and above-average proportion of women working part-time is largely driven by care responsibilities for children and the elderly. The number of early childcare places for children under 3 years of age was at 25,5 % in 2015, still significantly below the Barcelona target of 33 %.

               (14)

               Austria has already exceeded its national Europe 2020 targets for education. However, education outcomes depend considerably on the socioeconomic background as confirmed by the 2015 OECD Programme for International Student Assessment (PISA) results. Furthermore, the education results of pupils with a migrant background are considerably worse than those of pupils without one. In 2016, foreign-born pupils were 2,7 times more likely to leave school before completing upper secondary education than native-born pupils. The integration challenge also affects Austrian-born children of immigrants. Furthermore, Austria faces challenges in integrating a large number of asylum seekers and refugees into its education system.

               (15)

               Banking-sector developments point towards a steady, albeit slow improvement. The capitalisation of Austrian banks remains below that of its Union peers and their ability to generate profits in the domestic market has been under pressure. Regarding international operations, asset quality and profitability have improved further in several markets in Central, Eastern and South-Eastern Europe, but pockets of vulnerability still remain. Meanwhile, the increase in real estate prices and the revival of mortgage lending underscores the importance of macro-prudential measures.

               (16)

               Investment growth in Austria returned in 2016 but investment by SMEs and in the service sector continued to show weaknesses. Austria has recognised the role that business creation and firm growth play for new investments (i.e. going beyond replacement investments) and for the corresponding job creation. Austria has therefore set itself ambitious targets to facilitate digital transformation as well as to tackle its traditionally low rate of business creation (7,4 % compared to 10,8 % Union average) and company growth (7,3 % share of high-growth firms compared to 9,2 % Union average). Some specific measures which combine the reduction of investment barriers with improved framework conditions for equity capital funding, entrepreneurship promotion and taxation incentives have already been announced.

               (17)

               High regulatory barriers remain in the business services sector and regulated professions with the level of restrictions being higher than the Union average in particular for architects and engineers. In addition, for these professions, as well as for lawyers, accountants/tax advisers, patent agents, real estate agents and tourist guides, the business churn rate is significantly lower than the Union average, which seems to indicate relatively low dynamism and competition in professional services in Austria. These barriers include, inter alia, (1) shareholding and company form restrictions for architects, engineers and patent attorneys, (2) multidisciplinary restrictions for architects and engineers, as well as (3) particularly wide scopes of reserved activities for architects, engineers and tourist guides. The reduction of such barriers could generate more intense competition, resulting in more firms entering the market, and leading to benefits for consumers in terms of lower prices. Recommendations to address this issue were made in January 2017 in a Communication from the Commission, as part of a package of measures to tackle barriers in services markets.

               (18)

               Austria has made considerable efforts in receiving asylum seekers and in integrating refugees as well as other immigrants. Nevertheless, labour market integration of people with a migrant background, in particular women born outside the Union and jobseeking refugees, remains a challenge.

               (19)

               In the context of the 2017 European Semester, the Commission has carried out a comprehensive analysis of Austria’s economic policy and published it in the 2017 country report. It has also assessed the 2017 Stability Programme, the 2017 National Reform Programme and the follow-up given to the recommendations addressed to Austria in previous years. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Austria, but also their compliance with Union rules and guidance, given the need to strengthen the Union’s overall economic governance by providing Union-level input into future national decisions.

               (20)

               In the light of this assessment, the Council has examined the 2017 Stability Programme and its opinion (8) is reflected in particular in recommendation (1) below,

         HEREBY RECOMMENDS that Austria take action in 2017 and 2018 to:

               1.

               Pursue its fiscal policy in line with the requirements of the preventive arm of the Stability and Growth Pact, which entails achieving its medium-term budgetary objective in 2018, taking into account the allowance linked to unusual events. Ensure the sustainability of the healthcare system and of the pension system. Rationalise and streamline competencies across the various layers of government and align their financing and spending responsibilities.

               2.

               Improve labour market outcomes for women through, inter alia, the provision of full-time care services. Improve the educational achievements of disadvantaged young people, in particular those from a migrant background. Foster investment in the services sector by reducing administrative and regulatory barriers, easing market entry and facilitating company growth.

      Done at Brussels, 11 July 2017.

            For the Council

            The President

         T. TÕNISTE

      (1)  OJ L 209, 2.8.1997, p. 1.

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

      (3)  OJ C 92, 24.3.2017, 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)  Austria is allowed to deviate from its medium-term budgetary objective up to 2017 and 2018 by the additional budgetary impact related to the exceptional inflow of refugees and security-related measures incurred in 2015 and 2016 respectively, as temporary deviations are carried forward in each case for a total period of three years.

      (6)  Net government expenditure comprises total government expenditure excluding interest expenditure, expenditure on Union programmes fully matched by Union funds revenue and non-discretionary changes in unemployment benefit expenditure. Nationally financed gross fixed capital formation is smoothed over a 4-year period. Discretionary revenue measures or revenue increases mandated by law are factored in. One-off measures on both the revenue and expenditure sides are netted out.

      (7)  For Austria the adjustment requirement in 2018 takes into account the allowance linked to the unusual events granted for 2016, as temporary deviations are carried forward for a period of three years.

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


Avis juridique important

|

31988H0349

88/349/EEC: Council Recommendation of 9 June 1988 on developing the exploitation of renewable energy sources in the Community

Official Journal L 160 , 28/06/1988 P. 0046 - 0048

*****COUNCIL  RECOMMENDATION  of 9 June 1988  on developing the exploitation of renewable energy sources in the Community  (88/349/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),  Whereas, in its resolution of 16 September 1986 on new Community energy policy objectives for 1995 and the convergence of the policies of the Member States (4), the Council adopted the objective of continuing the development of new and renewable energy sources and of increasing their contribution to the total energy balance;  Whereas, in its resolution of 26 November 1986 on a Community orientation to develop new and renewable energy sources (5), the Council requested the Commission to present proposals to develop the exploitation of renewable energy sources in the Community;  Whereas these sources are indigenous and their exploitation has a favourable impact on the diversification, compatibility, in a number of cases, with the environment, on the security of the Community's energy supply and on the development of less-favoured regions;  Whereas, by its Regulation (EEC) No 3301/86 (6), the Council instituted a Community programme relating to the development of certain less-favoured regions of the Community by the exploitation of their indigenous energy potential (Valoren programme);  Whereas, among the priority actions with a claim to the European Social Fund, are professional training activities aimed directly at specific employment posts in enterprises of less than 500 personnel and linked to the application of new technologies which are the object of Community research and development programmes;  Whereas the development of renewable energy sources requires appropriate legislative, administrative and financial measures;  Whereas the optimum exploitation of these energy sources in the Community must be pursued taking account of their economic prospects and their availability in the Member States;  Whereas assessment of the profitability of these energy sources should take into account medium- and long-term economic prospects;  Whereas, at Community level, it must be ensured that the measures launched are mutually compatible and that the results and experience gained are widely disseminated, in an attempt to make the efforts to develop these sources profitable;  Whereas, with a view to completion of the internal market, cooperation among industries producing renewabled energy exploitation equipment must be facilitated, together with the extension of the markets;  Whereas renewable sources of energy may make a valuable contribution to the energy requirements of developing countries;  Whereas, in the present state of the technology, the sources offering the most practical development prospects in the short and medium term are solar, geothermal and wind energy, biomass and energy from waste and hydroelectricity, especially low power instalations;  Whereas the Commission plans to draw up sectoral proposals for each of these sources, which will include the principles governing the contractual relations between producers of electricity generated from renewable energy sources and public electricity suppliers;  Whereas the Commission will, where appropriate, submit common rules for certification, so that the resulting consistency will enable such certification by one Member State to be acceptable throughout the Community and hence promote the free movement of equipment for the exploitation of renewable energy sources,  HEREBY RECOMMENDS MEMBER STATES:  1. to introduce, where appropriate and necessary, legislation and/or administrative procedures which would help to overcome, on a non-discriminatory basis, obstacles to the exploitation of renewable energy sources;  2. to pursue, in particular through the continuation of present efforts, research and demonstration programmes at Community and Member State levels, and periodically assess them from the technico-economic point of view, in relation to market potential, adapting them accordingly;  3. to pay particular attention to the development of renewable energy sources and to energy saving, in coordination with the corresponding European Regional Developmednt Fund programmes, in particular to the Valoren programme, and the European Social Fund;  4. to complete national inventories of renewable energy resources and disseminate these inventories as widely as possibler at regional and local level;  5. to promote cooperation among industries producing equipment for the exploitation of renewable energy sources and promote the transfer of technology and cooperation between small and medium-sized enterprises to facilitate their adjustment to potential demand;  6. with a view to expanding the scope of the internal market, to recall their obligations laid down by Council Directive 83/189/EEC of 28 March 1983 laying down a procedure for the provision of information in the field of technical standards and regulations (1) in respect of draft standards and technical rules for the exploitation of renewable energy equipment;  7. to encourage contractual terms governing supplies to the distribution companies of electricity generated by private producers from renewable energy sources which are such as to facilitate, on a non-discriminatory basis, the economic exploitation of these sources and to ensure that these terms are complied with;  8. to consider measures for financial or other support towards feasibility studies for projects to exploit renewable energy sources, whenever appropriate, in particular for local authorities and small and medium-sized enterprises;  9. to ensure that in public investment the possibility of using renewable energy and energy-saving measures is taken into account;  10. to consider the prospects of the eventual economic viability in promoting a given type of renewable energy;  11. to consider, in accordance with its resolution of 26 November 1986, in Member States where they do not yet exist, advisory bodies to prepare, or facilitate the preparation of, feasibility studies and for assembling technical and financial packages for projects to exploit renewable energy sources; such bodies should also lay particular emphasis on informing the public of the practical possibilities of exploiting these sources and of the environmental aspects;  12. to facilitate the exchange of information concerning the development of renewable energy sources between Member States and at Community level, in particular by agreements for access to national data bases; to assist the Commisison in fully completing the Sesame Community data base on projects carried out under national and Community programmes;  13. to consider the preparation and launch of a statistical survey system for renewable energy sources in collaboration with the Statistical Office of the European Communities;  14. to communicate regularly to the Commission details of the measures taken or planned in the field covered by this recommendation and the effects obtained or expected from these measures; in particular, the Member States are invited to inform the Commission at regular intervals of the progress achieved in eliminating administrative and legal barriers to the introduction of new and renewable energy sources. In this context, the Commission will propose or take the most appropriate measures for the coordination of the Member States' initiatives and will from time to time, on its own initiative or at the request of a Member State, arrange meetings for the exchange of information at Community level in order to ensure that the measures are mutually compatible.  Done at Luxembourg, 9 June 1988.  For the Council  The President  M. BANGEMANN  (1) OJ No C 279, 17. 10. 1987, p. 6.  (2) OJ No C 167, 27. 6. 1988.  (3) OJ No C 80, 28. 3. 1988, p. 5.  (4) OJ No C 241, 25. 9. 1986, p. 1.  (5) OJ No C 316, 1. 12. 1986, p. 1.  (6) OJ No L 305, 31. 10. 1986, p. 6.  (1) OJ No L 109, 26. 4. 1983, p. 8.