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		52013DC0391

			Recommendation for a COUNCIL RECOMMENDATION with a view to bringing an end to the situation of an excessive government deficit in Malta /* COM/2013/0391 final */

			   	Recommendation for a
COUNCIL RECOMMENDATION
with a view to bringing an end to the
situation of an excessive government deficit in Malta
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the
Treaty on the Functioning of the European Union, and in particular Article
126(7) thereof,
Having regard to the
recommendation from the Commission;
Whereas:
(1)       According to Article 126
of the 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 [21 June 2013], the
Council decided, in accordance with Article 126(6) TFEU, that an excessive
deficit existed in Malta.
(4)       In accordance with Article
126(7) TFEU and Article 3 of Council Regulation (EC) No 1467/97 on speeding up
and clarifying the implementation of the excessive deficit procedure[1], the Council is required to
address recommendations to the Member State concerned with a view to bringing
the situation of an excessive deficit to an end within a given period. The
recommendation has to establish a maximum deadline of six months for effective
action to be taken by the Member State concerned to correct the excessive
deficit. Furthermore, in a recommendation to correct an excessive deficit the
Council should request the achievement of annual budgetary targets which, on
the basis of the forecast underpinning the recommendation, are consistent with
a minimum annual improvement in the structural balance, i.e. the
cyclically-adjusted balance excluding one-off and other temporary measures, of
at least 0.5% of GDP as a benchmark. In addition, in accordance with Article 2
of Council Regulation (EC) No 1467/97 specifying the requirement under the debt
criterion, the budgetary target recommended for the final year of the
correction period must ensure that the required reduction in the differential
between the debt-to-GDP level and the 60%-of-GDP Treaty reference value will
occur over the two years following the correction of the excessive deficit,
based on the Commission forecast.
(5)       The Commission 2013 spring
forecast projects that the deficit will
continue to be above the reference value in 2013 and 2014, respectively at 3.7% and 3.6% of GDP. These
budgetary projections are based on current policies,
thus incorporating the 2013 budget that was endorsed by Parliament in April
2013, which includes expansionary measures on both the revenue and expenditure
side as well as the already planned equity injection into Air Malta (0.6% of
GDP), with a net deficit-increasing impact of 0.3% of GDP. The expansionary
measures are only partially compensated by increases in excise duties, the
collection of tax arrears as well as the expenditure savings and higher social
contributions stemming from the 2006 pension reform. In addition, the contribution of net deficit-reducing one-offs, as identified by
the Commission, to the consolidation effort would fall sharply after 2012. Due
to the expected continued primary deficits in 2013 and 2014, the general
government debt, according to the Commission 2013 spring forecast, is projected
to rise further, to 73.9% of GDP in 2013 and to 74.9% of GDP in 2014. In 2015
and 2016, the general government deficit is projected to remain above the 3% of
GDP reference value, and the debt-to-GDP ratio would increase to 75.6% of GDP
by 2016.
(6)       According to Regulation
1467/97, the correction of the excessive deficit should be completed in the
year following its identification, unless there are special circumstances. In
light of this, a correction of the excessive deficit by 2014 is warranted. In
particular, a credible and sustainable adjustment path would require Malta to reach a headline general government target of 3.4% of GDP for 2013 and 2.7% of GDP
in 2014, which is consistent with an annual improvement of the structural
balance of 0.7% of GDP in 2013 and 0.7% of GDP in 2014. The 2014 target ensures
that the required reduction in the differential between the debt-to-GDP level
and the 60%-of-GDP Treaty reference value will occur over the two years
following the correction of the EDP. To reach the above-mentioned structural
targets, Malta would need to adopt additional consolidation measures of around
0.4% of GDP in 2013, on top of the measures already included in the baseline
scenario, and around ¾% of GDP in 2014. These targets take into account the
need to compensate for the negative second-round effects of fiscal
consolidation on public finances, through its impact on GDP growth. The
baseline scenario on which this adjustment path is built incorporates the
Commission 2013 spring forecast and extends it up to 2016 relying on standard
assumptions about the closure of the output gap and the sensitivity of the
budget to the cycle; it does not include however the additional capital
injection into Air Malta that is planned in 2015 according to the 2013
stability programme. It is thus assumed that the capital injection will not
take place or be offset by measures in the opposite direction.
(7)       Malta’s fiscal framework
is quite flexible, and its non-binding nature and the short horizon of fiscal
planning are not supportive of a sound fiscal position. Directive 2011/85/EU on
budgetary frameworks has not yet been transposed. Moreover, in accordance with
Article 5 of Regulation No 473/2013 of the European
Parliament and of the Council of 21 May 2013 on common provisions for monitoring and
assessing draft budgetary plans and ensuring the correction of excessive
deficit of the Member States in the euro area, Malta should put in place
independent bodies for monitoring compliance with fiscal rules. While the stability programme states the intention of the government
to set up a fiscal council, no concrete plans are laid out.
(8)       In accordance with Article
9(1) of Regulation No 473/2013 of the European Parliament and of the Council of
21 May 2013 on common provisions for monitoring and assessing draft budgetary
plans and ensuring the correction of excessive deficit of the Member States in
the euro area, Malta should present to the Commission and to the Council an
economic partnership programme, simultaneously with the report to be submitted
in accordance with Article 3(4a) of Regulation (EC) No 1467/97.
(9)       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,
HEREBY RECOMMENDS:
(1)
Malta should put an end
to the present excessive deficit situation by 2014.
(2)
Specifically, Malta should:
(a)
reach a headline general government target of 3.4%
of GDP for 2013 and 2.7% of GDP in 2014, which is consistent with an annual
improvement of the structural balance of 0.7% of GDP in 2013, and 0.7% of GDP
in 2014. This adjustment path would allow bringing the headline government
deficit below the 3% of GDP reference value by 2014 while at the same time
ensuring that the government gross debt ratio will approach the 60%-of-GDP
reference value at a satisfactory pace;
(b)
specify and rigorously implement the measures
that are necessary to achieve the correction of the excessive deficit by 2014,
and use all windfall gains for deficit reduction.
(3)
The Council establishes the deadline of 1
October for Malta to take effective action and, in accordance with Article
3(4a) of Council Regulation (EC) No 1467/97, to report in detail the
consolidation strategy that is envisaged to achieve the targets.
Following the correction of the excessive
deficit, Malta is invited to continue making progress at an appropriate pace towards
its medium-term objective of a balanced budget in strcutral terms, including by
meeting the expenditure benchmark. To limit risks to budgetary execution, the
Council invites Malta to strengthen the effectiveness of its budgetary
framework and improve the monitoring of budget execution throughout the year.
In particular, Malta is invited to put in place a more binding, rule-based
multiannual fiscal framework. In addition, the role of independent bodies
monitoring fiscal policy should be strengthend, in accordance with Article 5 of
Regulation (EC) No 473/2013 of the European Parliament and of the Council of 21
May 2013 on common provisions for monitoring and assessing draft budgetary
plans and ensuring the correction of excessive deficit of the Member States in
the euro area.
Finally, to ensure the success of the
fiscal consolidation strategy, the Maltese authorities are invited to back the
fiscal consolidation with comprehensive structural reforms, in line with the
Council recommendations addressed to Malta in the context of the European
Semester and in particular those related to the preventive arm of the Macroeconomic
Imbalances Procedure.
This
recommendation is addressed to the Republic of Malta.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 209, 2.8.1997, p. 6.


Important legal notice

|

52007SC0072

Recommendation for a Council opinion in accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Slovakia, 2006-2009  /* SEC/2007/0072 final */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 23.1.2007SEC(2007) 72 finalRecommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Slovakia, 2006-2009(presented by the Commission)EXPLANATORY MEMORANDUM1. GENERAL BACKGROUNDThe Stability and Growth Pact, which entered into force on 1 July 1998, is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth conducive to employment creation. The 2005 reform of the Pact acknowledged its usefulness in anchoring fiscal discipline but sought to strengthen its effectiveness and economic underpinnings as well as to safeguard the sustainability of the public finances in the long run.Council Regulation (EC) No 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies[1], which is part of the Stability and Growth Pact, stipulates that Member States have to submit, to the Council and the Commission, stability or convergence programmes and annual updates thereof (Member States that have already adopted the single currency submit (updated) stability programmes and Member States that have not yet adopted it submit (updated) convergence programmes). The first convergence programme of Slovakia was submitted in May 2004. In accordance with the Regulation, the Council delivered an opinion on it on 5 July 2004 on the basis of a recommendation from the Commission and after having consulted the Economic and Financial Committee. In accordance with the same procedure, updated stability and convergence programmes are assessed by the Commission and examined by the Committee mentioned above, while the Council may examine them.2. BACKGROUND FOR THE ASSESSMENT OF THE UPDATED PROGRAMMEThe Commission has examined the most recent update of the convergence programme of Slovakia, submitted on 1 December 2006, and has adopted a recommendation for a Council opinion on it (see box for the main points covered by the assessment).In order to set the scene against which the budgetary strategy in the updated convergence programme is assessed, the following paragraphs summarise:1.  the economic and budgetary performance over the last ten years2.  the country’s position under the corrective arm of the Stability and Growth Pact (excessive deficit procedure)3.  the most recent assessment of the country’s position under the preventive arm of the Stability and Growth Pact (summary of the Council opinion on the previous update of the convergence programme); and4.  the Commission’s assessment of the October 2006 national reform programme.2.1. Recent economic and budgetary performanceSlovakia enjoyed strong growth for most of the last ten years. However, neither the labour market situation nor regional disparities have improved. Although the labour market performance finally started to improve in 2005, the employment rate of 54.2% was still far below the Lisbon target of 70%. The unemployment rate remained the second highest in the EU at 16.3% in 2005, particularly hitting young people. No reversal of regional disparities has yet been established. Energy prices continue to have a relatively strong effect on Slovak HICP inflation and thus might endanger the country's inflation convergence vis-à-vis the euro area, especially given the uncertain outlook for oil prices. Thanks to the pension reform implemented since 2005 the age-related pressure on the long-term sustainability of public finances is mitigated.2.2. The excessive deficit procedure for SlovakiaOn 5 July 2004 the Council adopted a decision stating that Slovakia had an excessive deficit in accordance with Article 104(6). At the same time, the Council addressed a recommendation under Article 104(7) specifying that the excessive deficit had to be corrected by 2007. In particular, Slovakia was recommended to take effective action by 5 November 2004 to achieve the 2005 deficit target, to implement with vigour the measures envisaged in the May 2004 programme, and to accelerate the fiscal adjustment if the implemented structural reforms resulted in higher growth than expected in the programme, in particular by dedicating any higher-than budgeted revenues primarily to faster deficit reduction.A Commission communication of 22 December 2004 concluded that, on then available current information and on the basis of the measures detailed in the 2005 budget, it appeared that the Slovak government had taken effective action to achieve the 2005 deficit target, by the deadline of 5 November, in response to the Council recommendation under Article 104(7) to correct the excessive deficit by 2007 at the latest.2.3. The assessment in the Council opinion on the previous programmeOn 24 January 2006, the Council adopted its opinion on the previous update of the convergence programme, covering the period 2005-2008. The Council was of the opinion that "the programme follows the deficit adjustment path set by the Council recommendations under Article 104(7)". The Council invited Slovakia to "(i) strengthen, in the context of strong growth outcome and prospects, the effort in the structural budgetary adjustment, in order to speed up the attainment of the MTO; and (ii) reinforce the binding character of the medium-term expenditure ceilings for central government".2.4. The Commission assessment of the October 2006 national reform programmeThe Implementation Report of the National Reform Programme of Slovakia, provided in the context of the renewed Lisbon strategy for growth and jobs, was submitted on 13 October 2006. Slovakia's National Reform Programme identifies as key challenges/priorities: developing the information society; increasing R&D and innovation; improving the business environment; improving education and raising employment.The Commission’s assessment of this programme (adopted as part of its December 2006 Annual Progress Report[2]) showed that Slovakia is making progress in the implementation of its National Reform Programme. However, important challenges and the need for further measures remain, particularly in the microeconomic and employment fields.Against the background of strengths and weaknesses identified, Slovakia was recommended to take action in the areas of: R&D and innovation; lifelong learning and education reform; and active labour market policies for the most vulnerable groups.Box: Main points covered by the assessment As required by Article 5(1) (for stability programmes) and Article 9(1) (for convergence programmes) of Council Regulation (EC) No 1466/97, the assessment covers the following points: whether the economic assumptions on which the programme is based are plausible; the medium-term budgetary objective (MTO) presented by the Member State and whether the adjustment path towards it is appropriate; whether measures being taken and/or proposed to respect that adjustment path are sufficient to achieve the MTO over the cycle; when assessing the adjustment path towards the MTO, whether a higher adjustment effort is made in economic good times, whereas the effort may be more limited in economic bad times, and, for euro-area and ERM II Member States, whether the Member State pursues an annual improvement of the cyclically-adjusted balance, net of one-off and other temporary measures, of 0.5% of GDP as a benchmark to meet its MTO; when defining the adjustment path to the MTO (for Member States that have not yet reached it) or allowing a temporary deviation from the MTO (for Member States that have), the implementation of major structural reforms which have direct long-term cost-saving effects (including by raising potential growth) and therefore a verifiable impact on the long-term sustainability of public finances (subject to the condition that an appropriate safety margin with respect to the 3% of GDP reference value is preserved and that the budgetary position is expected to return to the MTO within the programme period), with special attention for pension reforms introducing a multi-pillar system that includes a mandatory, fully-funded pillar; whether the economic policies of the Member State are consistent with the broad economic policy guidelines. The plausibility of the programme’s macroeconomic assumptions is assessed by reference to the Commission services’ autumn 2006 forecast, using also the commonly agreed methodology for the estimation of potential output and cyclically-adjusted balances. The assessment of consistency with the broad economic policy guidelines is made against the broad economic policy guidelines in the area of public finances as included in the integrated guidelines for the period 2005-2008. The assessment also examines: the evolution of the debt ratio and the outlook for the long-term sustainability of the public finances, which should be given “sufficient attention in the surveillance of budgetary positions” according to the Council report of 20 March 2005 on “Improving the implementation of the Stability and Growth Pact”. A Commission Communication of 12 October 2006 sets out the approach to the assessment of long-term sustainability[3]; the degree of integration with the national reform programme, submitted by Member States in the context of the Lisbon strategy for growth and jobs. In its cover note of 7 June 2005 to the European Council on the broad economic policy guidelines for the period 2005-2008, the ECOFIN Council stated that the national reform programmes should be consistent with the stability and convergence programmes; compliance with the code of conduct[4], which inter alia prescribes a common structure and set of data tables for the stability and convergence programmes. |-  Recommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Slovakia, 2006-2009THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community,Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies[5], and in particular Article 9(3) thereof,Having regard to the recommendation of the Commission,After consulting the Economic and Financial Committee,HAS DELIVERED THIS OPINION:5.  On [27 February 2007] the Council examined the updated convergence programme of Slovakia, which covers the period 2006 to 2009.6.  The macroeconomic scenario underlying the programme envisages that real GDP growth will increase from 6.6% in 2006 to 7.1% in 2007 and then decrease to 5.5% and 5.1% in 2008 and 2009, respectively. Assessed against currently available information, this scenario appears to be based on cautious growth assumptions for 2006 and plausible growth assumptions for the rest of the programme period. The programme’s projections for inflation also appear realistic.7.  For 2006, the general government deficit is estimated at 3.4% of GDP in the Commission services’ autumn 2006 forecast, against a target of 4.2% of GDP set in the previous update of the convergence programme. The better outturn is due to much stronger GDP and employment growth and lower interest expenditure and pension reform costs than expected. However, some of the additional revenues owing to the growth surprise were spent rather than devoted to faster deficit reduction.8.  As in the previous update, the main goal of the new programme’s medium-term budgetary strategy is to achieve long-term sustainability of public finances in 2010, notably by reaching the medium-term objective (MTO) for the budgetary position of a structural balance (i.e. cyclically-adjusted balance net of one-off and other temporary measures) of -0.9% of GDP. According to the programme the headline deficit should gradually decline from 3.7% of GDP in 2006 to 1.9% of GDP in 2009 and the primary deficit from 1.9% of GDP in 2006 to 0.2% of GDP in 2009. The envisaged fiscal consolidation relies on expenditure restraint with respect to both current and capital expenditure (decline in the expenditure ratio by around 3¼ percentage points of GDP), which is less than fully offset by a decline in the revenue ratio (1½ percentage point). Compared with the previous update, the new programme broadly confirms the planned adjustment against a more favourable macroeconomic scenario.9.  The structural balance calculated according to the commonly agreed methodology is planned to improve from around -3½% of GDP in 2006 to some -2½% of GDP in 2009. As in the previous update, the medium-term objective (MTO) for the budgetary position presented in the programme is a structural deficit of just below 1% of GDP, which the programme does not aim to achieve within the programme period but by 2010. As the MTO is more demanding than the minimum benchmark (estimated at a deficit of around 2% of GDP), achieving it should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. The MTO lies within the range indicated for euro-area and ERM II Member States in the Stability and Growth Pact and the code of conduct and adequately reflects the debt ratio and average potential output growth in the long term.10.  The risks to the budgetary projections in the programme appear broadly balanced. The risks from the macroeconomic scenario are broadly neutral, while tax projections seem on the whole based on prudent assumptions. The envisaged fiscal consolidation in the programme relies heavily on expenditure restraint, but the programme does not provide sufficient information on the measures supporting this (after 2007) nor is there a binding medium-term expenditure framework. On the other hand, Slovakia has built up a good track-record in recent years, although achieving the budgetary targets was facilitated by higher-than-expected growth and lower-than-expected absorption of EU funds.11.  In view of this risk assessment, the budgetary stance in the programme seems broadly consistent with a correction of the excessive deficit by 2007 as recommended by the Council. However, the adjustment path in structural terms during the correction period should be strengthened given the upward revision of growth prospects and the good economic times. In the following years the budgetary stance in the programme does not seem to provide a sufficient safety margin against breaching the 3% of GDP deficit threshold with normal macroeconomic fluctuations. Moreover, it seems insufficient to ensure that the MTO is achieved in 2010, as envisaged in the programme. In the years following the correction of the excessive deficit, the pace of the adjustment towards the MTO implied by the programme should be strengthened to be in line with the Stability and Growth Pact, which specifies that, for euro-area and ERM II Member States, the annual improvement in the structural balance should be 0.5% of GDP as a benchmark and that the adjustment should be higher in good economic times. In particular, an improvement in the structural balance of only around ¾% of GDP is anticipated between 2007 and 2009 when good times are expected to occur .12.  Government gross debt is estimated to have reached 33.1% of GDP in 2006, well below the 60% of GDP Treaty reference value. The programme projects the debt ratio to decline by 3.4 percentage points over the programme period.13.  The long-term budgetary impact of ageing in Slovakia is lower than the EU average, with pension expenditure influenced by the recent pension reform showing a more limited increase than in many other countries. The initial budgetary position constitutes a risk to sustainable public finances even before considering the long-term budgetary impact of an ageing population. Consolidating the public finances would therefore contribute to reducing risks to the sustainability of public finances. Overall, Slovakia appears to be at medium risk with regard to the sustainability of public finances.14.  The convergence programme does not contain a qualitative assessment of the overall impact of the October 2006 implementation report of the national reform programme within the medium-term fiscal strategy. However, it provides some information on the direct budgetary costs or savings of the main reforms envisaged in the national reform programme and its budgetary projections seem to take into account the public finance implications of the actions outlined in the national reform programme. The measures in the area of public finances envisaged in the convergence programme do not seem to be fully consistent with those foreseen in the national reform programme. In particular, apart from education, expenditure priorities listed in the programme are different from the key challenges identified in the national reform programme. Moreover, the significant support for education indicated in the national reform programme is not evident in the 2007 budget or in the convergence programme.15.  The budgetary strategy in the programme is broadly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008.16.  As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme provides all required and most of the optional data[6].The overall conclusion is that the programme is consistent with a correction of the excessive deficit by 2007 but envisages limited progress towards the MTO thereafter.In view of the above assessment and also in the light of the recommendation under Article 104(7) of 5 July 2004, Slovakia is invited to:(i) exploit the strong growth prospects to strengthen the structural adjustment in order to ensure the correction of the excessive deficit in 2007 with a larger margin and to speed up the progress towards the MTO; and(ii) reinforce the binding character of the medium-term expenditure ceilings for central government.Comparison of key macro economic and budgetary projections2005 | 2006 | 2007 | 2008 | 2009 |Real GDP (% change) | CP Dec 2006 | 6.1 | 6.6 | 7.1 | 5.5 | 5.1 |COM Nov 2006 | 6.0 | 6.7 | 7.2 | 5.7 | n.a. |CP Dec 2005 | 5.1 | 5.4 | 6.1 | 5.6 | n.a. |HICP inflation (%) | CP Dec 2006 | 2.8 | 4.4 | 3.1 | 2.0 | 2.4 |COM Nov 2006 | 2.8 | 4.5 | 3.4 | 2.5 | n.a. |CP Dec 2005 | 2.2 | 1.5 | 2.2 | 2.5 | n.a. |Output gap (% of potential GDP) | CP Dec 20061 | -2.2 | -0.9 | 1.0 | 1.6 | 1.9 |COM Nov 20065 | -2.0 | -0.7 | 1.1 | 1.6 | n.a. |CP Dec 20051 | -1.6 | -1.1 | 0.1 | 0.8 | n.a. |General government balance6 (% of GDP) | CP Dec 2006 | -3.1 | -3.7 | -2.9 | -2.4 | -1.9 |COM Nov 2006 | -3.1 | -3.4 | -3.0 | -2.9 | n.a. |CP Dec 2005 | -4.9 | -4.2 | -3.0 | -2.7 | n.a. |Primary balance6 (% of GDP) | CP Dec 2006 | -1.4 | -1.9 | -0.9 | -0.6 | -0.2 |COM Nov 2006 | -1.4 | -1.7 | -1.1 | -0.9 | n.a. |CP Dec 2005 | -3.1 | -2.3 | -1.1 | -0.8 | n.a. |Cyclically-adjusted balance6 (% of GDP) | CP Dec 20061 | -2.4 | -3.4 | -3.2 | -2.9 | -2.5 |COM Nov 2006 | -2.5 | -3.2 | -3.3 | -3.3 | n.a. |CP Dec 20051 | -4.4 | -3.9 | -3.0 | -2.9 | n.a. |Structural balance2 6 (% of GDP) | CP Dec 20063 | -1.6 | -3.5 | -3.2 | -2.9 | -2.5 |COM Nov 20064 | -1.7 | -3.3 | -3.3 | -3.3 | n.a. |CP Dec 2005 | -3.6 | -3.9 | -3.1 | -2.9 | n.a. |Government gross debt6 (% of GDP) | CP Dec 2006 | 34.5 | 33.1 | 31.8 | 31.0 | 29.7 |COM Nov 2006 | 34.5 | 33.0 | 31.6 | 31.0 | n.a. |CP Dec 2005 | 33.7 | 35.5 | 35.2 | 36.2 | n.a. |Notes: 1 Commission services calculations on the basis of the information in the programme. 2 Cyclically-adjusted balance (as in the previous rows) excluding one-off and other temporary measures. 3 One-off and other temporary measures taken from the programme (0.8% of GDP in 2005 – deficit-increasing; 0.1% in 2006 – deficit- reducing). 4 One-off and other temporary measures taken from the Commission services’ autumn 2006 forecast (0.9% of GDP in 2005 – deficit-increasing; 0.1% in 2006 deficit-reducing). 5 Based on estimated potential growth of 5.2%, 5.3%, 5.3% and 5.2% respectively in the period 2005-2008. 6 Since October 2006, Slovakia has implemented the Eurostat decision of 2 March 2004 on the classification of the second pillar funded pension schemes. The general government data from the previous update have been adjusted accordingly so as to facilitate comparison with the new update and the Commission services' autumn 2006 forecast. Source: Convergence programme (CP); Commission services’ autumn 2006 economic forecasts (COM); Commission services’ calculations |[1] OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). All the documents referred to in this text can be found at the following website:http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm[2] Communication from the Commission to the Spring European Council, “Implementing the renewed Lisbon strategy for growth and jobs - A year of delivery” - COM(2006) 816, 12.12.2006.[3] Communication from the Commission to the Council and the European Parliament, “The long-term sustainability of public finances in the EU” - COM(2006) 574, 12.10.2006 - and European Commission, Directorate-General for Economic and Financial Affairs (2006), “The long-term sustainability of public finances in the European Union”, European Economy No 4/2006.[4] “Specifications on the implementation of the Stability and Growth Pact and guidelines on the format and content of stability and convergence programmes”, endorsed by the ECOFIN Council of 11 October 2005.[5] OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm[6] In particular, the data on general government expenditure by function for 2009 are not provided.


title: Recommendation for a COUNCIL REGULATION (EEC) on the conclusion of the Agreement on the text in the Greek Language of the Agreement between the European Economic Community, the Swiss Confederation and the Republic of Austria on the extension of the application of the rules on Community transit (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (81) 73
Vol. 1981/0021
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(81)73 final
                                                   Brussels - 27 February 1981
                                 Recommendation for a
                               COUNCIL REGULATION ( EEC )
            on the conclusion of the Agreement on the text in the Greek
              Language of the Agreement between the European Economic
              Community , the Swiss Confederation and the Republic of
                 Austria on the extension of the application of the
                              rules on Community transit
                    ( submitted to the Council by the Commission )
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                                        V
COM ( 81 ) 73 final
 ---pagebreak---                                                           CerYM j-3
                                EXPLANATORY MEMORANDUM
1 . The Agreement of 12 July 1977 between the European Economic Community ,
    the Swiss Confederation and the Republic of Austria extended application
    of the rules on Community transit to goods traffic passing through both
    Swiss and Austrian territory .
2 . On accession to the Community , the Hellenic Republic will be bound by
    this Agreement , which will therefore also have to be . drawn up in the
    Greek language .  In addition , the Contracting Parties to the Agreement
    will have to agree to recognize the Greek-language version as having the
    same legal authenticity as the existing six language versions *
3 . Bearing in mind the purely formal nature of the agreement to be reached
    on the matter of the Greek-language version and in view of the fact that
    the details of that agreement require no actual negotiation , there would
    appear to be nothing to prevent it from being concluded forthwith , once
    the Council has nominated the person empowered to sign it and thereby to
    commit the Community and once the Council has given its approval .
    The Swiss and Austrian authorities were consulted on this procedure and
    have raised no objections .
4 . The purpose of the attached draft , which the Council is recommended to
    adopt , is to nominate the person empowered to sign the agreement and to
    render the latter applicable in the Community .   - 1
 ---pagebreak---                             Recommendation for a
                         COUNCIL REGULATION ( EEC )
             on the oonclusion of the Agreement on the text in
          the Greek language of the Agreement between the European
            Economic Community , the Swiss Confederation and the
          Republio of Austria on the extension of the application
                      of the rules on Community transit
THE COUNCIL OP THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 113 thereof ,
Having regard to the Recommendation from the Commission ,
Whereas in consequenoe of its accession to the Community , the Hellenic
Republio is bound by the Agreement between the European Economio Community ,
the Swiss Confederation and the Republic of Austria on the extension of the
application of the rules on Community transit ( l ) signed on 12 July 1977 ;
Whereas that Agreement is drawn up in the Danish , Dutch , English , French ,
German and Italian languages , all six texts being equally authentic ;
Whereas it is now necessary to give to the text in the Greek language a
value equal to that of the other texts referred to above ;
Whereas the Agreement on the text in the Greek Language of the Agreement
of 12 July 1977 should be concluded ,
HAS ADOPTED THIS REGULATION }
                                    Article 1
The Agreement on the text in the Greek language of the Agreement of 12 July
1977 between the European Economic Community , the Swiss Confederation and the
Republic of Austria on the extension of the application of the rules on
Community , transit is hereby approved on behalf    of the Community.
The text of the Agreement is annexed to this Regulation.
( 1 ) OJ No L 142 , 9.6.77 , P. 1
 ---pagebreak---                                  Article 2
The President of the Council is hereby authorized to designate the person
empowered to sign the Agreement in order to bind the Community.
                                 Article 3
The President of the Council shall give the notification provided for in
Artiole 2 of the Agreement .
                                 Article 4
This Regulation shall enter into force on the third day following that of
its publication in the Official Journal of the European Communities .
This- Regulation shall be binding in its entirety and directly applicable in
all Member States .                  '
Done at Brussels ,
                                        For the Counoil
                                         The President
 ---pagebreak---                                        - 3 -
                                  AGREEMENT
           on the text in the Greek language of the Agreement
           between the European Economic Community , the Swiss
       Confederation and the Republic of Austria on the extension
          of the application of the rules on Community transit
THE EUROPEAN ECONOMIC COMMUNITY ,
THE SWISS CONFEDERATION
and
THE REPUBLIC OF AUSTRIA ,
WHEREAS the Agreement of 12 July 1977 between the European Economic Commu
nity , the Swiss Confederation and the Republic of Austria extended the
application of the rules on Community transit to goods traffic through both
Swiss territory and Austrian territory ;
WHEREAS from the time of its accession to the Community the Hellenic Republic
is bound by the Agreement of 12 July 1977 i whereas it is necessary to give
to the text in the Greek language of the Agreement , which was drawn up in
the Danish , Dutch , English , French , German and Italian languages , all six
texts being equally authentic , a value equal to that of the other texts
referred to ,
HAVE AGREED AS FOLLOWS :
 ---pagebreak---                                      Article 1
  The contracting parties to the Agreement of 12 July 1977 "between the Euro
 pean Economio Community , the Swiss Confederation and the Republio of
  Austria on the extension of the application of the rules on Community transit
hereby     agree that the text in the Greek language of the Agreement which
  appears as the Appendix to this Agreement shall have equal authenticity
with the texts in the Danish , Dutch , English , French , German . and Italian
  languages .                      ,
1                                    Article 2
  This Agreement shall enter into foroe on the first day of the month following
  that in whioh the contracting parties have notified each other of the com
  pletion of the procedures which it necessitates .
                                     Article 3
  This Agreement is drawn up in three copies in the Danish ,. Dutch , English ,
  French , German, Greek and Italian languages , all seven texts being equally
  authentic .
  Done at Brussels ,
                                            «             :           /        v
  For the Counoil of the European Communities ,
   For the Republic of Austria /
                                                                  Γ
 On behalf     of the Government of the Swiss Confederation ,
 ---pagebreak---                              ΣΥΜΦΩΝΙΑ
μεταΕύ της Ευρωπαϊκές Οίκονομικές Κοινότητος , τές Ελβετικής
Συνομοσπονδίας καί της Δημοκρατίας της Αυστρίας γιά τήν έπέ-
κταση του πεδίου έφαρμογές των κανονισμών περί τές κοινοτι
κές διαμετακομίσεως .
Η ΕΥΡΩΠΑΪΚΗ ΟΙΚΟΝΟΜΙΚΗ ΚΟΙΝΟΤΗΣ ,
Η ΕΛΒΕΤΙΚΗ ΣΥΝΟΜΟΣΠΟΝΔΙΑ καί
Η ΔΗΜΟΚΡΑΤΙΑ ΤΗΣ ΑΥΣΤΡΙΑΣ
ΕΠΙΘΥΜΩΝΤΑΣ ν * Απλουστεύσουν τίς τελωνειακές διατυπώσεις που
πρέπει νά τηρούνται , κατά τήν διέλευση των συνόρων, κατά τίς
μεταφορές έμπορευμάτων οι όποιες χρησιμοποιούν τό * Ελβετικό
καί τό αΟστριακό έδαφος .
            ,
ΕΚΤΙΜΩΝΤΑΣ ότι πρέπει νά έπεκταθεΐ τό 'πεδιο έφαρμο-
γης τ&ν διατάΕεων των συμφωνιών" διαμετακομίσεως, πού συνάφθη
καν μεταζύ τές Εύρωπαϊκές Οίκονομικης Κοινότητος άφ'ένός καί
τής Ελβετικές Συνομοσπονδίας καί τέ ς Δημοκρατίας της Αύστρίας
άφ'έτέρου , καί στίς μεταφορές αύτές,
ΓΥΝΕΦΩΝΗΣΑΝ ΤΑ ΑΚΟΛΟΥΘΑ *
 ---pagebreak---                                      Αρθρο 1
          Κατά τήν έννοια τής συμφωνίας αύτής νοούνται ι
   ( α ) μέ τόν δρο " συμφωνία διαμετακομίσεως ΕΟΚ-* Ελβετίας " Ϊ
  ή συμφωνία πού υπεγράφη στίς 23 Νοεμβρίου 1972,· μεταξύ τής
  Ευρωπαϊκής Οίκονομικης Κοινότητος καί της " Ελβετικής Συνο
  μοσπονδίας γ ιά τήν έφαρμογή των κανονισμών περί της κοινο
  τικής διαμετακομίσεως , περιλαμβανομένων τών παρουσών καί
  μελλοντικών τροποποιήσεων *
   ( β ) μέ τόν δρο "συμφωνία διαμετακομίσεως ΕΟΚ-Αύστρίας
  ή συμφωνία πού υπεγράφη τήν 30η Νοεμβρίου 1972 , μεταξύ
  τής Ευρωπαϊκές Κοινότητος καί της Δημοκρατίας τής Αυστρίας
  γιά τήν έφαρμογή των κανονισμών περί της κοινοτικής διαμε
  τακομίσεως ? περιλαμβανομένων των παρουσών καί μελλοντικών
  τροποποιήσεων *
   ( γ ) μέ τόν δρο " Κοινότης " ι ή Εύρωπαϊκή Οίκονομική Κοινότης *
   ( δ) μέ τόν δρο "Κράτος μέλος " ένα Κράτος μέλος τής Κοινότητος .
                                    "Αρθρο 2
          * Η έφαρμογή τών διατάξεων τών συμφωνιών διαμετακομίσεως
  ΕΟΚ-*Ελβετίας καί ΕΟΚ-Αύστρίας έπεκτείνεται στίς μεταφορές
  έμπορευμάτων μεταξύ δύο σημείων πού ευρίσκονται στήν Κοινό
  τητα γιά τίς όποϋες χρησιμοποιείται τό έλβετικό καί τό αύ-
  στριακό έδαφος .
 Οϊ δι ατ&χει ς αίττές δύνανται δμοΓως ν<5 έφαρμδζο\ηται σέ κδθε αλλη με
 ταφορά έμπορευμάτων γι δ τήν δποΓα χρησι μοττοι εΤται τ6 έλβετικδ καί
.τδ αυστριακό έδαφος .
 ---pagebreak---                                 Αρθρο 3
1 . " Εντός των όρίων του άρθρου 2 τής συμφωνίας καί μέ τήν
έπιφύλαξη των διατάξεων της παραγράφου 1 του άρθρου 13 των
συμφωνιών διαμετακομίως ΕΟΚ-*Ελβετίας καί ΕΟΚ-Αύστρίαςι
- ήΈλβετική Συνομοσπονδία , έχει έναντι της Δημοκρατίας
   της Αυστρίας τά Γδια δικαιώματα καί ύποχρεώσεις πού
   έχει ένα Κράτος μέλος *
- ή Δημοκρατία τής Αύστρίας , έχει έναντι της Ελβετικής Συ
   νομοσπονδίας τά ίδια δικαιώματα καί υποχρεώσεις πού έχει
   ένα Κράτος μέλος·
2 . Γιά τήν έφαρμογή της συμφωνίας αύτης , οι έγγυητικές
πράξεις πού έγιναν σύμφωνα μέ τά υποδείγματα, τά προσηρτη-
μένα στίς συμφωνίες διαμετακομίσεως ΕΟΚ-* Ελβετίας καί ΕΟΚ-
Αύστρίας , πρέπει νά συμπληρωθούν άναλόγως .
3 . Οΐ άκόλουθες διατάξεις , πού δέν περιέχονται στή συμφωνία
διαμετακομίσεως ΕΟΚ-Αύστρίας , έφαρμόζονται στίς σχέσεις με
ταξύ τής * Ελβετικής Συνομοσπονδίας καί τής Δημοκρατίας τή ς
Αύστρίας ι
(α) " Οταν , κατ * έφαρμογή των παραγράφων 1 καί 2 τοϋ άρθρου 4
των συμφωνιών διαμετακομίσεως ΕΟΚ-* Ελβετίας καί ΕΟΚ -Αυστρίας
κρίνονται άπαραίτητες ποινικές άνακρίσεις , πραγματοποιούνται
σέ κάθε Κράτος μέλος σύμφώνως μέ τίς διατάξεις τής έθνικής
νομοθεσίας περί διώξεως των τελωνειακών παραβάσεων .
 ---pagebreak---   ( β ) Στις περιπτώσεις που προβλέποντας άπό τό άρθρο 4 των συμφω
 νιών διαμετακομίσεως ΕΟΚ-*Ελβετίας καί ΕΟΚ-Αθστρίας/ οι τελωνει
 ακές διοικήσεις τής'Ελβετικής Συνομοσπονδίας καί της Δημοκρατί-
                            /
ας της Αυστρίας θα παρέχουν δλε ς τίς πληροφορίες πού διαθέτουν,
άκόμη καί έκεΐνες πού προέκυψαν άπό έρευνα πού έγινε μετά άπό
αΕτηση τής τελωνειακές διοικήσεως της Δημοκρατίας τής Αυστρίας
ή της " Ελβετικής Συνομοσπονδίας , στά ίδια τά έμπορεύματα ή σέ
πρόσωπα πού άποδεδε ιγμένως παρέβησαν       ή ε£ναι ύποπτα ότι έχουν
παραβεί         τίς διατάζεις των κανόνων περί τής κοινοτικής δια
μετακομίσεως .
        " Εν τούτοις , λαμβάνοντας υπόψη τίς διατάξεις της εθνικής
νομοθεσίας πού έγγυώνται τήν προστασία τοϋ βιομηχανικού , έμπο-
ρικοϋ ή έπαγγελματικοΟ άπορρήτου , ή διοικητική συνδρομή πού
προβλέπεται ατό άνωτέρω άρθρο 4 , δύναται ώς πρός τά πρόσωπα
τά όποια ούτε άποδεδε ιγμένως παρέβησαν       ούτε είναι ύποπτα
παραβάσεως       των διατάξεων αυτών τών κανόνων της κοινοτικής )
διαμετακομίσεως , νά περιορίζεται σ " έκεΐνες μόνο τίς πληροφο
ρίες πού δέν θίγουν τήν προστασία αυτή .
( γ ) Δέν δύνανται νά έκδίδονται παραστατικά έσωτερικής κοινο
τικής διαμετακομίσεως γιά έμπορεύματα πού έπαναποστέλλονται
 ---pagebreak--- άπό τήν * Ελβετία μετά τήν άποθήκευση σέ Ιδιωτική Αποθήκη
κατά τήν έννοια τοΟ έλβετικοϋ Συνομοσπονδιακού νόμου περί
Τελωνείων .   .           Ί
                            "Αρθρο 4
    *Η παρούσα συμφωνία έφαρμόζεται στό Πριγκηπάτο τοϋ
Λίχτενστάι'ν γιά όσο διάστημα συνδέεται αυτό μό τήν Ελβε
τική Συνομοσπονδία μέ συνθήκη τελωνειακής ένώσεως .
                            "Αρθρο 5
    * Η παρούσα συμφωνία άρχίζει νά Ισχύει τήν πρώτη ήμέρα
τοΟ δευτέρου μηνός , πού άκολουθεΐ έκεΕνον κατά τόν όποιο
τά συμβαλλόμενα μέλη θά γνωστοποιήσουν άμοιβαϊα τή συμπλή
ρωση των άναγκαίων διαδικασιών γι'αύτό τό σκοπό .
                            "Αρθρο 6
    *Η παρούσα συμφωνία δύναται νά καταγγελθεί άπό κάθε
συμβαλλόμενο μέρος μετά άπό έζάμηνη προειδοποίηση . '
 ---pagebreak---                                   - 10 -
                            • ' " Αρθρο 7
    * Η παρούσα συμφωνία συντάσσεται οέ τρία άντίτυπα στή
γερμανική , άγγλική , δανική , γαλλική / Ιταλική καί ολλανδική
γλώσσα , καί κάθε κείμενο άπώ αύτά είναι έ£ Γ σου αυθεντικό .


Commission Recommendation to the Member States on the activities of the social services in respect of workers moving within the Community


Avis juridique important

|

31992H0383

92/383/EEC: Council Recommendation of 5 June 1992 on the provision of harmonized integrated services digital network (ISDN) access arrangements and a minimum set of ISDN offerings in accordance with open network provision (ONP) principles

Official Journal L 200 , 18/07/1992 P. 0010 - 0019

COUNCIL RECOMMENDATION of 5 June 1992 on the provision of harmonized integrated services digital network (ISDN) access arrangements and a minimum set of ISDN offerings in accordance with open network provision (ONP) principles (92/383/EEC)THE COUNCIL OF THE EUROPEAN COMMUNITIES,  Having regard to Council Directive 90/387/EEC of 28 June 1990 on the establishment of the internal market for telecommunications services through the implementation of open network provision (1),  Having regard to the proposal from the Commission,  Whereas Directive 90/387/EEC considers, inter alia, the application of the principles of open network provision (ONP) to the integrated services digital network (ISDN);  Whereas the full establishment of a Community-wide market in telecommunications services will be promoted by the rapid introduction of ONP principles to ISDN, as provided for in Directive 90/387/EEC; whereas ONP conditions should ensure transparency and  equal access and be based on objective criteria; whereas applying ONP principles to ISDN means harmonizing the conditions for open and efficient access to and use of ISDN;  Whereas recommendation 86/659/EEC (2) calls for the coordinated introduction of the ISDN in the European Community;  Whereas resolution 89/C 196/04 (3) calls for strengthening of the further coordination of the ISDN in the European Community up to 1992;  Whereas in 1989 several telecommunications organizations signed a memorandum of understanding (MoU) for the phased and harmonized implementation of European ISDN services; whereas within the framework of this MoU, a range of services has been recognized  as commercially valid for ISDN and agreement has been reached on a minimum ISDN service offering to be introduced by 31 December 1993 at the latest; whereas other services will be introduced on the basis of harmonized standards according to market need;   Whereas ISDN can be considered a natural development of the telephone network; whereas it will allow, via a single access, using the existing subscriber line, the transmission of voice telephony, text, data and images in the form of a multitude of more  efficient or new services;  Whereas Member States should notify to the Commission those organizations whose provision of ISDN offerings enables Member States to comply with the provisions of point 4 of Annex III to Directive 90/387/EEC; whereas other organizations may offer  certain ISDN services in accordance with the recommendation;  Whereas, in accordance with Directive 90/387/EEC, voice telephony means the commercial provision for the public of the direct transport of real time speech via the public switched network or networks such that any user can use equipment connected to a  network termination point to communicate with another user of equipment connected to another termination point;  Whereas Commission Directive 90/388/EEC (4) applies;  Whereas, in accordance with Directive 90/388/EEC, Member States may make the supply of certain services subject to a licensing or declaration procedure aimed at compliance with the essential requirements and in that case they shall ensure that the  conditions for the granting of licenses are objective, non-discriminatory and transparent, that reasons are given for any refusal and that there is a procedure for appealing against any such refusal; whereas the Commission will carry out an overall  assessment of the situation in the telecommunications sector, in connection with the aims of this Directive in 1992;  Whereas ISDN is a means to support both services provided under special or exclusive rights and services for which no such rights may be maintained;  Whereas, pursuant to the principle of non-discrimination, access to ISDN should be available and provided on request without discrimination to all users; whereas therefore, the terms and conditions which apply to telecommunication organizations using  ISDN for the provision of services for which no special or exclusive rights may be maintained should be equivalent to the terms and conditions which apply to other users;  Whereas cross-subsidization between services provided by telecommunications organizations (TOs) under special and exclusive rights and services for which no such rights may be maintained, provided by TOs, may be incompatible with Community competition  rules;  Whereas Article 4 (4) (b) of Directive 90/387/EEC provides for a period for public comment on the reports on the detailed analysis on the application of ONP to specific areas; whereas public comments on the analysis report on the application of ONP to  ISDN were invited by notice in the Official Journal of the European Communities (5);  Whereas it became evident from public comments that users are requiring a high degree of transparency in the provision of ISDN offerings; whereas users are requiring further access arrangements to be considered, such as M- and U-type interfaces;  Whereas the European Telecommunications Standards Institute (ETSI) is developing standards for ISDN; whereas the Commission has given a special study and investigation mandate to ETSI to study the technical implications of the specification of M- and  U-type interfaces in ISDN; whereas the Commission will also carry out studies on the economic and market impact related to the provision of these interfaces;  Whereas Community policy in relation to the coordinated introduction of ISDN is given in recommendation 86/659/EEC and resolution 89/C 196/04; whereas a broad range of services to be provided are defined in the abovementioned documents;  Whereas ISDN networks have developed on a national basis and the availability in each Member State of an ISDN with equivalent capabilities and providing full interconnectivity is important to meet the requirements of pan-European provision of  telecommunications services;  Whereas users have stressed the value of the availability in all Member States of a minimum set of harmonized offerings;  Whereas Member States should encourage their telecommunications organizations to provide ISDN offerings in addition to the minimum set, both in response to market demand;  Whereas, however, such additional offerings should in no way impede the provision of the minimum set;  Whereas interoperability between ISDN and existing public network services should be ensured, in particular with the public voice telephony service and the public packet switched data service? Whereas adequate and efficient interoperability between ISDN networks is essential for the provision of Community-wide services;  Whereas Directive 90/387/EEC provides, in point 1 of Annex III, for the adoption of a specific directive on voice telephony;  Whereas ISDN provides for the opportunity to offer voice telephony in an efficient way; whereas, therefore, the provision of voice telephony service by means of ISDN should meet the relevant requirements of ONP applied to voice telephony;  Whereas Directive 90/387/EEC provides, in point 3 of Annex III, for the adoption of a recommendation on the supply of technical interfaces, conditions of usage and tariff principles applying to the provision of packet-switched data services (PSDSs)  complying with open network principles; whereas the Council has adopted a recommendation on the harmonized provision of a minimum set of PSDSs in accordance with ONP principles (6);  Whereas ISDN may be used to provide packet-switched data services (PSDSs); whereas, therefore, the provision of data services by means of ISDN should in principle meet the relevant requirements of ONP applied to PSDSs;  Whereas, in accordance with Directive 90/387/EEC, the Commission has published in the Official Journal of the European Communities (7) the list of ISDN standards suitable for ONP; whereas this list may be amended by further publication;  Whereas common ordering procedures, one-stop-ordering and one-stop billing and maintenance are desirable in order to encourage the use of ISDN and the development of competition in the provision of value-added services throughout the Community and have  been requested by users; whereas any cooperation between organizations in that respect is subject to compliance with Community competition law; whereas, in particular, such procedures should not result in any price fixing or market sharing; whereas  these procedures are to be established through commercial arrangements, e.g. through memoranda of understanding;  Whereas the implementation of one-stop-ordering and one-stop-billing procedures by telecommunications organizations must not prevent offers by service providers other than telecommunications organizations;  Whereas, in order to promote European-wide operation by service providers using ISDN, it is desirable to allow for a system where the called party pays for the calls on the basis of the number called, allowing the offering of free of charge calls to the  subscriber accessing the service offered by the provider ('green number/freephone');  Whereas, in order to promote the use of ISDN by small- and medium-size providers of value-added services, it is desirable that billing arrangements which facilitate such operations across the Community are established; whereas such billing arrangements  should allow for a system where the cost of the value-added service and the cost of the call are combined in a single bill ('kiosk type arrangement');  Whereas it is important in this context that appropriate allocation of harmonized numbering capacity is made to allow the establishment of such service arrangements across the Community; whereas such allocation should be made in accordance with the  principles of transparency and equal treatment; whereas numbering issues at a national and European level, including the area of ISDN, will play a major role in the future worldwide telecommunications environment;  Whereas quality of service - including delivery time and repair time - as perceived by the users is an essential aspect of the service provided; whereas information for users should allow for a comparison between achieved performance and typical or  target values;  Whereas the quality of service indicators, as identified in other ONP measures, will apply where appropriate to services provided by means of ISDN;  Whereas, in accordance with Community law and in particular Directive 90/387/EEC, usage conditions for ISDN should be compatible with Community law and should be imposed through regulatory means and not through technical restrictions;  Whereas, without prejudice to Article 3 of Directive 90/388/EEC, restrictions on the use of ISDN may be based only on infringement of special or exclusive rights compatible with Community law, or on the conditions generally applicable to the connection  of terminal equipment as laid down in Directive 91/263/EEC (8), or on essential requirements, in particular on the basis of data protection; whereas Member States may restrict use of ISDN to the extent necessary to ensure compliance with regulations on  the protection of data, including protection of personal data, the confidentiality of information transmitted or stored, as well as the protection of privacy compatible with Community law; whereas those restrictions should be objectively justified,  follow the principle of proportionality and not be excessive in relation to the aim pursued; whereas open access to ISDN via the proposed access arrangements should not jeopardize ISDN network integrity and security requirements;  Whereas, in accordance with Directive 90/387/EEC, tariffs must be based on objective criteria and, especially in the case of services and areas subject to special or exclusive rights, must in principle be cost-oriented; whereas they must be transparent  and properly published, sufficiently unbundled in accordance with the competition rules of the Treaty and non-discriminatory and must guarantee equal treatment;  Whereas the availability of itemized billing will enable ISDN users to check their bills;  Whereas, in accordance with the principle of separation of regulatory and operational functions and pursuant to the principle of subsidiarity, the national regulatory authority of each Member State should play an important role in the application of  this recommendation;  Whereas, to enable the Commission to monitor effectively the application of this recommendation, it is necessary that Member States provide the relevant information requested by the Commission;  Whereas implementation of harmonized ONP conditions for access to and use of ISDN are dependent on the state of network development and market demand in Member States;  Whereas the Committee referred to in Articles 9 and 10 of Directive 90/387/EEC should play an important role in the application of this recommendation.  HEREBY RECOMMENDS:  1. That, in line with previous Council measures on integrated services digital network (ISDN), and taking into account market demand, Member States:  (a) ensure that, on their territory, the telecommunications organizations notified in accordance with point 15 provide an ISDN with harmonized access arrangements and a minimum set of offerings in accordance with Annex I, together with adequate and  efficient interoperability between ISDNs in order to allow for Community-wide operation. Where no dates are indicated in Annex I, Member States should encourage telecommunications organizations to publish target dates for the availability of these  features;  (b) encourage the harmonized provision by the same organizations of additional offerings as identified in Annex II. This additional provision should be in accordance with international standardization and in response to market demand but should not  endanger or delay the provision of the minimum set referred to in subparagraph (a).  2. That modifications necessary to adapt Annex I to new technical developments and to changes in market demand be determined by the Commission in accordance with the procedure laid down in Article 10 of Directive 90/387/EEC, taking into account the  state of development of the national networks.  3. That Member States take the necessary steps so that, in respect of the ISDN offerings provided in accordance with point 1, information is published on technical characteristics, supply conditions, contractual conditions, usage conditions, tariffs,  licensing and/or declaration conditions and conditions for the attachment of terminal equipment, in accordance with the presentation given in Annex III.  Information on changes in existing offerings should be published as soon as possible and not later than two months before the implementation, unless the national regulatory authority agrees otherwise.  4. That the supply conditions referred to in point 3 include at least:  - information concerning the ordering procedure,  - typical delivery periods, which are the periods, counted from the date when the user has made a firm request for an ISDN offering, in which 80 % of all requests for each type of ISDN offerings have been put through to the users. Each period will be  established on the basis of the actual delivery periods of ISDN offerings during a recent time interval of reasonable duration. The calculation must not include cases where late delivery periods were requested by users.  Until actual data are available, a target delivery period shall be published in place of the typical delivery period,  - typical repair times, which are the periods, counted from the time when a failure message has been given to the responsible unit within the organization supplying ISDN up to the moment in which 80 % of all ISDN offerings of the same type have been  re-established and, in appropriate cases, notified as back in operation to the users.  Until actual data are available, a target repair time shall be published instead of the typical repair time.  Where different classes of quality of repair are offered for the same type of ISDN offerings, the different typical repair times shall be published:  - contractual periods, which include the periods generally provided for in the case of contracts and the minimum contractual periods which the user is obliged to accept for each type of ISDN offering,  - any refund procedure,  - target values for the indicators of quality of service identified in point 6.  5. That the supply of ISDN offerings be based on a contract specifying the elements of the ISDN offerings to be provided.  6. That, by 1 January 1995, at least for the bearer services identified in Annex I, common indicators and common measurement methods be adopted for the network performance aspects of the quality of service, by organizations supplying ISDN offerings in  accordance with this recommendation, notably for those indicators in Annex IV.  7. That the common indicators and measurement methods referred to in point 6 be based on appropriate standards adopted by ETSI allowing for the determination of a representative sample of the performance of the ISDN offerings as well as the statistical  end-to-end performance achieved by the network as a whole.  8. That national regulatory authorities take the necessary steps so that annual statistical information showing achieved performance in the following areas is made publicly available:  - delivery periods,  - repair times,  - quality of service indicators, where possible those identified in Annex IV.  The first annual period should run from 1 January to 31 December 1994.  9. That Member States encourage the establishment, in accordance with the procedural and substantive rules of competition of the Treaty and in consultation with users, of harmonized procedures for user access to ISDN, in particular via the establishment  of the following procedures:  - a common ordering procedure for ISDN throughout the Community, i.e. an ordering procedure for the procurement of intra-Community ISDN offerings which ensures that there is commonality across the organizations supplying ISDN offerings, in both the  information which has to be supplied by the user and the organization supplying ISDN offerings and the format in which the information is presented,  - a one-stop-ordering procedure for ISDN, to be applied where requested by the user, i.e. a system whereby all transactions involving a user, required for the procurement of intra-Community ISDN offerings supplied by more than one organization to a  single user, can be completed at one location between the user and a single organization supplying ISDN offerings,  - a one-stop-billing procedure for ISDN, to be applied where requested by the user, i.e. a system whereby the billing and payment transaction for intra-Community ISDN offerings supplied by more than one organization to a single user can be completed at  one location between the user and a single organization supplying ISDN offerings, and - a one-stop-maintenance procedure for ISDN, to be applied where requested by the user, i.e. a system whereby the reporting of faults for intra-Community ISDN offerings supplied by more than one organization to a single user can be done at one location  between the user and a single organization supplying ISDN offerings, which will coordinate the restoration of services.  It is envisaged that, taking into account technical feasibility and commercial viability, these procedures should include Community-wide charging and billing procedures, allowing for the capability where:  - the called party pays for the calls (green number/freephone),  - the cost of the value-added service and the cost of the call are combined in a single bill collected by the organization supplying ISDN offerings, or other arrangements equally effective for users ('kiosk type arrangements').  These harmonized procedures are to be established through commercial arrangements, e.g. through memoranda of understanding.  10. That ISDN numbering plans be controlled by the national regulatory authority, in order to provide for fair competition. In particular, procedures for the allocation of individual numbers for specific services should be transparent, equitable and  timely.  11. That Member States take the necessary steps so that usage conditions for ISDN are subject to scrutiny by the national regulatory authority.  12. That tariffs be transparent, based on objective criteria, independent of the type of application implemented by users where the same type of offerings is used and in principle oriented towards cost. Each ISDN offering should in principle be tariffed  on an individual basis. Offerings should be sufficiently unbundled, in accordance with Community law. In addition, the tariff principles of recommendation 86/659/EEC should be taken into due account.  13. That tariffs for ISDN offerings normally contain the following elements:  - an initial connection charge,  - a periodic rental charge,  - a usage charge.  Where other tariff elements are applied, these should be approved by the national regulatory authority and must be in accordance with point 12.  14. That under the contol of national regulatory authorities targets are set and published for the provision of itemized billings as a facility available on users' request, subject to technical feasibility. The level of detail given in itemized bills  may be subject to relevant law relating to the protection of personal data and privacy.  15. That Member States notify to the Commission before 31 December 1992 those organizations whose provisions of ISDN enables Member States to comply with the provisions of Annex III, point 4, of Directive 90/387/EEC and thereafter any changes to this  information.  16. That national regulatory authorities prepare annual summary reports covering the availability of ISDN offerings, including level of penetration, provided in accordance with point 1. These summary reports should be sent to the Commission no later  than five months after the end of the calendar year, this requirement being reviewed by the Commission in consultation with the ONP Committee in accordance with Article 9 of Directive 90/387/EEC during 1995. The Commission will transmit these summary  reports to the ONP Committee.  The execution of this requirement fulfils corresponding requirements of recommendation 86/659/EEC.  17. That national regulatory authorities keep available, and submit to the Commission on request, data on the application of the supply conditions under points 3 and 4 and the statistical information under point 8.  18. That national regulatory authorities establish simple procedures for users of the ISDN offerings to invoke with regard to any difficulties encountered in relation to the application of this recommendation.  19. That the Commission, in consultation with the ONP Committee, examine the results of the application of this recommendation, in view of the fulfilment of the objectives of Directive 90/387/EEC, on the basis of the summary reports provided under point  16.  Done at Luxembourg, 5 June 1992.  For the Council The President Joaquim FERREIRA DO AMARAL (1) OJ No L 192, 24. 7. 1990, p. 1.(2) OJ No L 382, 31. 12. 1986, p. 36.(3) OJ No C 196, 1. 8. 1989, p. 4.(4) OJ No L 192, 24. 7. 1990, p. 10.(5) OJ No C 38, 14. 2. 1991, p. 12. (Notice No 91/C 38/21).(6) See page 1 of this Official  Journal.(7) OJ No C 327, 29. 12. 1990, p. 19. List of standards reference - ISDN.(8) OJ No L 128, 23. 5. 1991, p. 1.   ANNEX I  DEFINITION OF THE HARMONIZED ISDN ACCESS ARRANGEMENTS AND THE MINIMUM SET OF ISDN OFFERINGS IN ACCORDANCE WITH POINT 1, AND RECOMMENDED TIMETABLE FOR THEIR AVAILABILITY  GENERAL CONSIDERATIONS This Annex describes the harmonized ISDN access arrangements and the minimum set of ISDN offerings which are to be made available in all Member States.  The ISDN offerings are structured in two parts: Part A contains the minimum set of offerings which are to be made available in all Member States by 1 January 1994; Part B contains those offerings which are to be made available in all Member States  according to published target dates.  The CCITT distinctions of bearer services, supplementary services and teleservices (¹) are used. The bearer services and supplementary services in Part A are those indicated as the minimum service offering in the ISDN memorandum of understanding (MoU)  of June 1991, and the date for implementation is in accordance with the commitment given by the signatories of the MoU.  Implementation of these offerings should take account of relevant legislation concerning data protection and privacy.  STANDARDS TO BE UTILIZED In accordance with the procedure in Article 5 (1) of Directive 90/387/EEC, reference to relevant ISDN standards will be published in the Official Journal of the European Communities.  The initial indicative list of ISDN standards suitable for ONP already published in the Official Journal of the European Communities will be amended/updated by further publication in the Official Journal of the European Communities.  PART A. Offerings to be made available in all Member States by 1 January 1994  A.1 Access arrangements Access arrangements concerning the interfaces at CCITT defined reference points.  Basic rate access (2B + D) at the S/T reference point Primary rate access (30B + D) at the S/T reference point A.2. Bearer service Circuit mode 64 kbit/s unrestricted bearer service Circuit mode 3.1 kHz audio bearer service A.3. Supplementary services Calling line identification presentation (CLIP) Calling line identification restriction (CLIR) Direct dialling in (DDI) Multiple subscriber number (MSN) Terminal portability (TP) A.4. Teleservices Telephony (3.1 kHz bandwidth).  (¹) Appropriate associations between access arrangements, bearer services and supplementary services are given in CCITT Recommendation I.250.  PART B. Offerings to be provided in all Member States, according to published target dates and the availability of international standards  Dates for the implementation of these offerings will depend on market demand in each Member States. In accordance  with point 1 (a), telecommunications organizations are to be encouraged to publish targets for the availability of each of these offerings.  B.1. Access arrangements Future access arrangements to be included in the minimum set are subject to further study by ETSI and the Commission.  The situation will be reviewed at the latest by 31 December 1992, after completion of a study and investigation mandate given to ETSI on the technical implications of the M- and U-type interfaces, and completion of an economic and market assessment.  Consideration should be given to the inclusion of these access arrangements into the minimum set in accordance with the procedure given in point 2 of this recommendation.  B.2. Bearer services Circuit mode 64 kbit/s unrestricted bearer service on reserved or permanent mode Packet mode bearer service provided over the B and/or D channels (see Note 1) B.3. Other services Call transfer services Call forwarding services Closed user group User to user signalling Malicious call identification Reverse charging Green number (freephone) for voice and non-voice applications Kiosk billing or equivalent features, for voice and non-voice applications.  Note 1 When ISDN is used for the provision of packet-switched data services, users should, where feasible, have equivalent functionality to users of the dedicated packet network, as defined in Council recommendation 92/382/EEC (¹) on the harmonized provisions  of a minimum set of packet switched data services in accordance with ONP principles.  (¹) See page 1 of this Official Journal.   ANNEX II  ADDITIONAL OFFERINGS WHICH MAY BE IMPLEMENTED, IN ACCORDANCE WITH PROGRESS IN INTERNATIONAL STANDARDIZATION  I. Supplementary services Advice of charge (AOC) services Number identification services (COLP, COLR) Call waiting (CW) Completion of calls to busy subscribers (CCBS) Conference services Sub-addressing (SUB) Three party service (3PTY) II. Network management services (¹) Note: These supplementary services are covered by the ISDN MoU.  (¹) The Commission has given ETSI a mandate to study network management standards.   ANNEX III  PUBLICATION PRESENTATION FOR THE INFORMATION TO BE PROVIDED IN RESPECT OF ISDN OFFERINGS IN ACCORDANCE WITH POINT 3  The information referred to in point 3 should follow the presentation given below.  A. Technical characteristics The technical characteristics include the physical and electrical characteristics as well as the detailed technical and performance specifications which apply at the network termination point, without prejudice to 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). Clear reference shall be made to the standards implemented.  B. Supply conditions The supply conditions include at least the elements identified in point 4.  C. Contractual conditions or terms of subscription D. Usage conditions The conditions resulting from the application of essential requirements and from the exercise of exclusive or special rights.  E. Tariffs In accordance with point 13, tariffs will normally include an initial connection charge, a periodic rental charge and a usage charge.  (a) The initial charge for connection to the ISDN network may depend on the type of access and offerings.  (b) The periodic subscription charge will vary according to the type of access and range of ISDN capabilities provided.  (c) The usage charges will normally include a call duration charge and supplementary services usage charges and may also include a call-set-up charge and, in the case of packet mode bearer services, there may also be a volume related usage charge. These  charges may depend on time and/or day.  Clear indication of other charges, e.g. charges related to different levels of quality of service, or bulk provision, should be available.  F. Licensing and/or declaration conditions for use of ISDN service, where applicable This should include information on any licensing conditions which have to be met by the user or by its customer.  G. Conditions for the attachment of terminal equipment Conditions approved by the national regulatory authority, in accordance with the provisions of Directive 91/263/EEC.  (¹) OJ No L 109, 26. 4. 1983, p. 8.   ANNEX IV  INDICATORS FOR THE NETWORK PERFORMANCE ASPECTS OF THE QUALITY OF SERVICE OF ISDN BEARER SERVICES (¹)  IV.1. Indicators for all bearer services Availability of access, defined as the average, for all connections of a given type, of the number of hours in a reasonable period for which service was available to a user, divided by the total number of hours in the period.  Mean time between interruptions, defined as the average time duration between the end of one interruption and the beginning of the next. An interruption is defined as the temporary inability of a service to be provided persisting for more than a given  time duration characterized by a change beyond given limits in at least one parameter essential for the service.  Bit error ratio, defined as the ratio of the number of bit errors to the total number of bits transmitted in a given time interval (for non-speech bearer service).  IV.2. Indicators for circuit mode switched bearer services Connection processing delay, as defined in CCITT recommendation I.352.  Network transit delay, defined as the time which elapses between the initial offering of a unit of user data to an ISDN network by a transmitting terminal equipment and the complete delivery of that unit to the receiving terminal equipment (a unit of  user data may be a bit, byte, packet, etc.).  Average figures for national calls and for intra-Community calls should be considered.  Unsuccessful calls ratio, defined as the ratio of unsuccessful calls to the total number of calls in a specified time period.  IV.3. Indicators for packet-mode bearer services The indicators for packet-mode bearer services should in principle be the same as those featuring in the proposal for a recommendation 92/382/EEC on the harmonized provision of a minimum set of packet-switched data services in accordance with ONP  principles.  (¹) The Commission has given ETSI a mandate to develop standards covering definitions for the above quality of service indicators and appropriate measurement methods.  PROTOCOL 1  THE CONTRACTING PARTIES,  CONSIDERING that whereas the Agreement envisages the incorporation of future legislation in civil aviation,  WHEREAS the Community has already announced legislative action in a number of areas;  WHEREAS such action should not lead to future difficulties,  ARE AGREED THAT action inter alia in the following areas:  - consultation between airports and users,  - mutual acceptance of licences and harmonization,  - slot allocation,  - licensing of air carrier and allocation of route rights,  - common specifications for ATC equipment,  - cabotage,  - value-added tax,  - abolition of tax free sales between the Contracting Parties,  - relations with third countries,  - predatory practices,  shall be considered under Article 12 for inclusion in the Agreement.  PROTOCOL 2  THE CONTRACTING PARTIES,  CONSIDERING that the Agreement must be implemented in the same way for all the Contracting Parties,  WHEREAS the Council and the European Commission have already given important indications for the implementation of specific articles,  ARE AGREED THAT:  1. In applying the matching provisions of Article 3 (5) of Regulation (EEC) No 2342/90 mentioned in point 2 of the Annex in respect of non-scheduled air fares it is the product which is in the market which must be equivalent in terms of quality and  conditions. Elements of importance for the assessment would be the inclusion or not of additional services such as accommodation and also whether the non-scheduled product is legally on the market in a regular way according to the definition in Article  2 (b) (iii) (2) of that Regulation while the Commission may need to assess matching of fares with respect to the rules concerning predatory behaviour;  2. Member States which benefit from the special conditions under paragraph 3 of Article 10 of Regulation (EEC) No 2343/90 mentioned in point 1 of the Annex will not, on pain of losing such special conditions which they have, grant new rights regarding  the airports concerned, on terms which would put their Community partners at a disadvantage by comparison with carriers from third countries outside the Community.  and that 3. In a situation where Article 12 (2) of Regulation (EEC) No 2343/90 mentioned in point 1 of the Annex is invoked, the Commission will examine, in addition to capacity utilization, the marketing efforts and the products of air carriers from the Member  State with the lower market share and will consider whether a higher market share should normally be expected. If this is the case, the Commission will further consider whether the possibilities of the air carriers concerned of competing in the market  are reduced by virtue, in particular of difficulties experienced by congestion at airports, market structure and/or the direct impact of the large presence of non-scheduled traffic.  In arriving at a decision to reduce the 7,5 percentage points, the Commission will be guided by the following relationships:   Market share Reduced growth rate - between 30 and 25 % 5 - less than 25 % 4 PROTOCOL 3    THE CONTRACTING PARTIES,  - AFFIRM the need for continuation and intensification of the work in Eurocontrol to tackle and resolve the problems of air traffic congestion in Europe,   - NOTE that accession to the Eurocontrol Convention of all Member States should be seriously considered,   - INVITE Member States to cooperate to ensure that more airspace is made available for civil traffic and that it is used more flexibly and rationally,   - WELCOME the efforts made in the relevant fora to make progress in establishing compatible technical and performance specifications for air traffic control systems and equipment.


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31972H0368

72/368/EEC: Commission Recommendation of 17 October 1972 on health inspection of animals and fresh meat imported into the Community  /* Unofficial translation */

Official Journal L 253 , 09/11/1972 P. 0014 - 0014 Danish special edition: Series I Chapter 1972(11) P. 0040  English special edition: Series I Chapter 1972(11) P. 0041  Spanish special edition: Chapter 03 Volume 6 P. 0123  Portuguese special edition Chapter 03 Volume 6 P. 0123

COMMISSION RECOMMENDATION  of 17 October 1972  concerning the health inspection of animals and fresh meat introduced into the territory of the Community  (72/368/EEC) For the protection of human and animal life or health in the Community, live animals and fresh meat which come from third countries and are introduced into the territory of the Community undergo an inspection by the veterinary authorities which usually takes place at the external frontier. If the introduction of dangerous and epizootic diseases is to be prevented, inspections must be very rigorous and thorough.  It has, however, become apparent that this inspection is not always carried out in respect of animals and fresh meat which immediately on entry into the Community are placed under customs procedure relating to free zones or warehousing. If such animals or meat are unhealthy, the danger to human and animal lifeor health in the Community could be considerable.  In order to avert such danger and also, as far as possible, to prevent fraudulent practices in respect of the abovementioned products, e.g. the submission of false or falsified documents intended to make possible the movement of such products within the Community in spite of the fact that they come from third countries from which, for health reasons, their importation is not authorised, it is desirable that veterinary inspection take place, in all cases, as soon as the products arrive in the Community.  For those reasons and in pursuance of Article 155 of the Treaty establishing the EEC, the Commission recommends that the Member States:  Apply the animal health measures in respect of animals and fresh meat coming from third countries immediately on their arrival in the Community, irrespective of the customs procedure under which the goods are placed.  Done at Brussels, 17 October 1972.  For the Commission  The President  S.L. MANSHOLT


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31974H0435

74/435/EEC: Commission Recommendation of 2 August 1974 to the French Republic concerning the adjustment of the State monopoly of a commercial character in manufactured tobacco vis-à-vis the new Member States (Only the French text is authentic)

Official Journal L 237 , 29/08/1974 P. 0035 - 0036

COMMISSION RECOMMENDATION  of 2 August 1974  to the French Republic concerning the adjustment of the state monopoly of a commercial character in manufactured tobacco vis-à-vis the new Member States  (74/435/EEC)  I  In France, manufactured tobacco is subject to a State monopoly of a commercial character within the meaning of Article 37 (1) of the EEC Treaty. Under Order No 59.80 of 7 January 1959 and Decree No 61-15 of 15 January 1961 on the organization of the Service d'exploitation industrielle des tabacs et allumettes (SEITA) ; SEITA still holds the exclusive rights to import and market manufactured tobaccos.  Under the first subparagraph of Article 44 (1) of the Act concerning the Conditions of Accession and the Adjustments to the Treaties, the new Member States are progressively to adjust their State monopolies of a commercial character within the meaning of Article 37 (1) of the EEC Treaty, so as to ensure that by 31 December 1977 no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of Member States. Moreover, the second subparagraph of Article 44 (1) imposes equivalent obligations on the original Member States in relation to the new Member States.  Article 44 (2) reads : "From the beginning of 1973 the Commission shall make recommendations as to the manner in which and the timetable according to which the adjustment provided for in this Article must be carried out, it being understood that the manner and timetable must be the same for the new Member States and the original Member States".  This Recommendation will not - indeed it cannot - deal with the question whether the monopoly is compatible with Article 37 (1) of the EEC Treaty as regards the original Member States, particularly as far as retail trading is concerned. Since, in the new Member States, there are no monopolies of a commercial character in this particular industry, there is no need to address recommendations to them under the first subparagraph of Article 44 (1).  However, since SEITA still retains its exclusive right to import and market manufactured tobacco, the Commission feels that the adjustment provided for in Article 44 (1) of the Act concerning the Conditions of Accession and the Adjustments to the Treaties should consist, firstly, of progressively eliminating that form of discrimination which consists of imposing quantitative restrictions on imports of manufactured tobacco from the new Member States, deriving from SEITA's discretionary power to grant or refuse import licences. Secondly, it should lead to termination by 31 December 1977 of the exclusive right held by SEITA to import, export and market tobacco wholesale from the new Member States.  II  Subsequently for these reasons, and whilst reserving the right to take such further action as it may consider necessary in the light of the results obtained by the application of this Recommendation, the Commission recommends the French Republic, pursuant to Article 44 (2) of the Act concerning the Conditions of Accession and the Adjustments to the Treaties:    1. to open an import quota for manufactured tobacco from the new Member States of:      - 3 % of 1973 national production for 1974,           - 5 % of 1974 national production for 1975,           - 9 % of 1975 national production for 1976,           - 15 % of 1976 national production for 1977.             it being understood that by 31 December 1977 all quantitative restrictions on imports of manufactured tobacco from the new Member States will have been removed;        2. to inform all concerned, by appropriate publicity, of the new opportunities offered to them by these quotas to obtain supplies of manufactured tobacco from the new Member States;       3. to terminate by 31 December 1977 SEITA's exclusive right to import, export and sell on the wholesale market manufactured tobacco from the new Member States.         Done at Brussels, 2 August 1974.  For the Commission  The President  François-Xavier ORTOLI