title: 2013/142/EU: Commission Recommendation of 12 March 2013 on enhancing the democratic and efficient conduct of the elections to the European Parliament

text:
               21.3.2013

               EN

               Official Journal of the European Union

               L 79/29

         COMMISSION RECOMMENDATION
   of 12 March 2013
   on enhancing the democratic and efficient conduct of the elections to the European Parliament
   (2013/142/EU)
   THE EUROPEAN COMMISSION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Article 292 thereof,
   Whereas:

               (1)

               Article 10(2) of the Treaty on European Union states that citizens are directly represented at Union level in the European Parliament. This helps to ensure that democratic control and accountability occur at the level at which decisions are taken.

               (2)

               Article 10(3) of the Treaty on European Union states that every citizen shall have the right to participate in the democratic life of the Union and that decisions shall be taken as openly and as closely as possible to the citizen.

               (3)

               The Treaty of Lisbon enhances the role of citizens of the Union as political actors, establishing a solid link between citizens, the exercise of their political rights and the democratic life of the Union.

               (4)

               Reinforcing the democratic legitimacy of the EU decision-making process and bringing the system closer to Union citizens is particularly relevant in view of the actions required at EU level to address the financial and sovereign debt crisis.

               (5)

               The Commission Communication of 28 November 2012 on ‘A blueprint for a deep and genuine economic and monetary union — Launching a European debate’ (1) underlined that reinforced democratic legitimacy and accountability are a necessary part of any European Union reform.

               (6)

               Article 10(4) of the Treaty on European Union and Article 12(2) of the Charter of Fundamental Rights of the European Union confer a key role on European political parties highlighting their contribution to forming European political awareness and to expressing the will of the citizens of the Union.

               (7)

               To enable European political parties to fully accomplish their mission, on 12 September 2012 the Commission presented a proposal for a Regulation on the statute and funding of European political parties and European political foundations (2). This proposal aims at ensuring that European political parties can benefit from a more visible status and a more flexible, transparent and efficient framework for their funding. The Commission also proposed that European political parties would have to take, in the context of the elections to the European Parliament, all appropriate measures to inform citizens of the Union of the affiliation between national political parties and the European political parties. When adopted, the new Regulation would repeal and replace Regulation (EC) No 2004/2003 of the European Parliament and of the Council of 4 November 2003 on the regulations governing political parties at European level and the rules regarding their funding (3).

               (8)

               Creating a transparent link between the national parties for which citizens of the Union cast their votes and the European political parties to which the national parties are affiliated should allow European political parties to express more directly the will of citizens of the Union and should have a powerful impact on the transparency of decision-making in the Union.

               (9)

               Further enhancing the transparency of the elections to the European Parliament will contribute to better reflecting the strengthened role and powers of the European Parliament under the Treaty of Lisbon. Strengthening the connection of citizens of the Union to the democratic process of the Union is a necessary corollary to closer institutional integration.

               (10)

               Additional measures would enhance the visibility of the European political parties during the whole electoral process, from the campaign to the casting of votes, and enable them to efficiently bridge the divide between politics and citizens of the Union, complementing the information obligation foreseen for European political parties by the Commission proposal for a Regulation on the statute and funding of European political parties and European political foundations.

               (11)

               It is already an established practice in a number of Member States for some or all national parties to indicate on the ballots for elections to the European Parliament their affiliation to a European political party. To ensure the visibility of the European political parties during the whole European electoral process, it would be important that all Member States encourage and facilitate the provision of information to the electorate on the affiliation of national parties to European political parties. To further enhance the transparency of the elections to the European Parliament whilst at the same time increasing the accountability of political parties participating in the European electoral process and voters’ trust in this process, national parties should make publicly known, ahead of the elections, their affiliation to a given European political party. Apart from various party events, such as party congresses, the electoral campaigns of the national parties are indeed the most appropriate and efficient means of making this affiliation known and give it strong visibility.

               (12)

               Decision No 1093/2012/EU of the European Parliament and of the Council (4) declared that 2013 is the European Year of Citizens. Further enhancing the power of citizens in European Parliament elections is an important step to take place this year.

               (13)

               Since the Treaty of Lisbon, the President of the Commission is elected by the European Parliament, in accordance with the procedure laid down in Article 17(7) of the Treaty on European Union, and taking into account the arrangements foreseen in Declaration No 11 to the Treaty of Lisbon. These procedures require that the elections to the European Parliament must be taken into account and that appropriate consultations between the European Council and the European Parliament must be carried out in electing the President of the Commission. These provisions thus reflect the increased role of the European Parliament in the designation of the President of the Commission and the relevance in this process of the outcome of the elections to the European Parliament.

               (14)

               In its Resolution of 22 November 2012 on Elections to the European Parliament in 2014 (5), the European Parliament urged the European political parties to nominate candidates for President of the Commission, noting that it expected those candidates to play a leading role in the parliamentary electoral campaign, in particular by personally presenting their programme in all Member States of the Union. This resolution further emphasises the increased role that the elections to the European Parliament play in electing the President of the Commission.

               (15)

               In its Communication of 28 November 2012 on ‘A blueprint for a deep and genuine economic and monetary union — Launching a European Debate’, the Commission highlighted the nomination of candidates for President of the Commission by political parties in the elections to the European Parliament of 2014 as one of the important steps to foster the emergence of a genuine European political sphere.

               (16)

               It is therefore appropriate to raise the awareness of citizens of the Union regarding the pivotal role of their vote in determining who will be the President of the Commission and regarding the candidates for that function who are supported by the parties they vote for in the elections to the European Parliament.

               (17)

               If European political parties and national parties make known the candidates for President of the Commission they support, and the candidate’s programme, in the context of the elections to the European Parliament, this would make concrete and visible the link between the individual vote of a citizen of the Union for a political party in the European elections and the candidate for President of the Commission supported by that party. This should increase the legitimacy of the President of the Commission, the accountability of the Commission to the European Parliament and the European electorate and, more generally, increase the democratic legitimacy of the whole decision-making process in the Union. Political broadcasts serve the purpose of allowing the electorate to make informed choices. Therefore it is appropriate that national political parties should also use this means to make known which candidate for President of the Commission they support and the candidate’s programme.

               (18)

               Elections to the European Parliament currently take place over a period of several days as they are held on different days in different Member States. A common European voting day with polling stations closing at the same time would better reflect common participation by citizens across the Union and therefore is part of the representative democracy on which the EU is founded.

               (19)

               Citizens of the Union have the right to vote and to stand as candidates in elections to the European Parliament in the Member State where they choose to live, pursuant to Article 22(2) TFEU put into effect by Council Directive 93/109/EC of 6 December 1993 laying down detailed arrangements for the exercise of the right to vote and stand as a candidate in elections to the European Parliament for citizens of the Union residing in a Member State of which they are not nationals (6).

               (20)

               Directive 93/109/EC establishes an information exchange mechanism aimed at ensuring that citizens cannot vote or stand as candidates in more than one Member State in the same elections.

               (21)

               A number of Commission reports on the application of Directive 93/109/EC over the years (7), and most recently the 2010 report on the evaluation of the 2009 European elections (8), have revealed deficiencies in the functioning of the mechanism to prevent multiple voting and candidacies. Those deficiencies are due in particular to the insufficient personal data that the Member States of residence notify under the Directive to the home Member States of citizens of the Union. The deficiencies are also due to the differences in the electoral calendars of the Member States. As a consequence, large numbers of citizens of the Union who registered to vote in their Member State of residence could not be identified by their home Member State.

               (22)

               Measures based on extensive consultations with Member States’ experts and drawing upon good practices identified in this context could effectively address some of those deficiencies so as to improve the functioning of the mechanism in the 2014 European elections and to alleviate the administrative burden on national authorities.

               (23)

               The majority of Member States have already set up a single contact authority for exchanging data on voters and candidates in the framework of Directive 93/109/EC. The overall efficiency of the mechanism would be increased if all Member States were to set up such an authority.

               (24)

               The dates when electoral rolls close vary widely between Member States, ranging from two months to five days before election day. It would increase the efficiency of the mechanism if the Member States, taking into account the timing of the electoral process in the other Member States, would send the data on voters at a time when the national arrangements of the respective home Member States still allow for taking the necessary measures. Several further technical aspects of the transmission of data could be improved in order to increase the efficiency of the mechanism. These include the use of a common electronic format and a common character set, the mode of transmission and the encryption method applied to guarantee an appropriate level of protection of personal data.

               (25)

               The provision of certain additional personal data on voters to be notified by the Member States of residence, which are not expressly required by Directive 93/109/EC, would allow home Member States to identify more efficiently their nationals on the electoral rolls. The personal data which may be necessary for the efficiency of the mechanism varies between Member States.

               (26)

               Any processing of personal data within the framework of the information exchange mechanism should comply with the national laws implementing Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (9).

         HAS ADOPTED THIS RECOMMENDATION:

      DEMOCRATIC CONDUCT OF THE ELECTIONS

      Encouraging and facilitating information for voters on the affiliation between national parties and European political parties

               1.

               Member States should encourage and facilitate the provision of information to the electorate on the affiliation between national parties and European political parties before and during the elections to the European Parliament, inter alia, by allowing and encouraging the indication of such an affiliation on the ballots used in those elections.

      Informing voters about the affiliation between national parties and European political parties

               2.

               National political parties participating in the elections to the European Parliament should make publicly known ahead of those elections their affiliation with European political parties. National political parties should prominently display their affiliation with European political parties in all campaign materials, communications and political broadcasts.

      Support for a candidate for President of the European Commission

               3.

               European and national political parties should make known, ahead of the elections to the European Parliament, the candidate for the function of the President of the European Commission they support and the candidate’s programme.
               National political parties should ensure that their political broadcasts in view of the European Parliament elections are also used to inform citizens about the candidate for the function of President of the European Commission they support and about the candidate’s programme.

      Common voting day

               4.

               Member States should agree on a common day for elections to the European Parliament with polling stations closing at the same time.

      EFFICIENT CONDUCT OF THE ELECTIONS

      Single contact authority

               5.

               The Member States should set up a single contact authority in charge of the exchange of data on voters, for the implementation of Article 13 of Directive 93/109/EC.

      Transmission of data

               6.

               Member States should take account, as far as possible, of each other’s electoral arrangements, so that the Member State of residence sends the data on voters in time for the respective home Member State to take the necessary measures.

      Additional data allowing for more efficient identification

               7.

               The Member States of residence are encouraged to transmit, in addition to the personal data foreseen in Article 9 of Directive 93/109/EC, all relevant personal data, which may be necessary for the identification of voters by the authorities of their home Member State.

      Technical means for safe and efficient transmission of data

               8.

               For exchanging the data as provided in Article 13 of Directive 93/109/EC the Member States should use a uniform and secure electronic means, as set out in the Annex. The Member States should transmit the data in one single package per home Member State, with one further transmission at a later stage for updates, where necessary.
               This Recommendation is addressed to the Member States and to the European and national political parties.

      Done at Brussels, 12 March 2013.

            For the Commission

         Viviane REDING

            Vice-President

      (1)  COM(2012) 777 final/2.

      (2)  COM(2012) 499 final.

      (3)  OJ L 297, 15.11.2003, p. 1.

      (4)  OJ L 325, 23.11.2012, p. 1.

      (5)  European Parliament Resolution of 22 November 2012 on the elections to the European Parliament in 2014 (2012/2829(RSP)).

      (6)  OJ L 329, 30.12.1993, p. 34.

      (7)  COM(97)731 final, COM(2000)843 final, COM(2006)790 final.

      (8)  COM(2010)605 final.

      (9)  OJ L 281, 23.11.1995, p. 31.

      ANNEX

         Detailed technical arrangements for the implementation of Article 13 of Directive 93/109/EC

                  1.

                  For exchanging the data as provided in Article 13 of Directive 93/109/EC the Member States should use files following the Extensible Markup Language format (‘XML’). These XML files should be transmitted exclusively via electronic means in a secure way.

                  2.

                  The Member States should use the Universal Character Set Transformation Format — 8-bit (UTF-8) to record and transmit the data of voters within the information exchange mechanism.

                  3.

                  The Member States should use the W3C XML Encryption Syntax and Processing recommendation, involving the exchange of a public key and a private key, to guarantee an appropriate level of protection of the personal data transmitted.


title: EU rapid response capability European Parliament recommendation to the Council of 14 December 2010 on setting up an EU rapid response capability (2010/2096(INI))

text:
               15.6.2012

               EN

               Official Journal of the European Union

               CE 169/140

         Tuesday 14 December 2010EU rapid response capability
   P7_TA(2010)0465
   European Parliament recommendation to the Council of 14 December 2010 on setting up an EU rapid response capability (2010/2096(INI))
   2012/C 169 E/21

      The European Parliament,

               —

               having regard to Article 196 of the Lisbon Treaty which states that ‘the Union shall encourage cooperation between Member States in order to improve the effectiveness of systems for preventing and protecting against natural or man-made disasters’ and that ‘Union action shall aim to promote consistency in international civil-protection work’,

               —

               having regard to Article 214 of the Treaty on the Functioning of the European Union which states that the Union’s operations in the field of humanitarian aid are intended to provide ‘assistance and relief and protection for people in third countries who are victims of natural or man-made disasters’ and that its operations shall be ‘conducted in compliance with the principles of international law and with the principles of impartiality, neutrality and non-discrimination’,

               —

               having regard to the European Consensus on Humanitarian Aid jointly signed in December 2007 by the Presidents of the Council of the European Union, the European Parliament and the European Commission, and the Action Plan presented by the Commission in May 2008 for the implementation of the consensus,

               —

               having regard to the Council conclusions of December 2007 inviting the Commission to make the best use of the Community Civil Protection mechanism and to further strengthen cooperation between Member States,

               —

               having regard to the guidelines on the use of military and civil defence assets in the event of disaster (Oslo Guidelines), as revised on 27 November 2006,

               —

               having regard to the Communication from the Commission to the Council and to the European Parliament of 23 February 2009 on an ‘EU strategy for supporting disaster risk reduction in developing countries’,

               —

               having regard to the Communication from the Commission to the European Parliament and to the Council of March 2008 on ‘Reinforcing the Union's Disaster Response Capacity’ (COM(2008) 0130) and the European Parliament resolution of 19 June 2008 on stepping up the Union's disaster response capacity (1),

               —

               having regard to the report of 9 May 2006 by Michel Barnier entitled ‘For a European civil protection force: europe aid’,

               —

               having regard to the European Parliament resolution of 10 February 2010 on the recent earthquake in Haiti (2),

               —

               having regard to its resolution of 21 September 2010 on the prevention of natural and man-made disasters,

               —

               having regard to the proposal for a recommendation to the Council of 23 March 2010 on setting up an EU rapid response capability, presented by Anneli Jäätteenmäki, Charles Goerens, Louis Michel, Marielle De Sarnez and Frédérique Ries on behalf of the ALDE Group pursuant to Rule 121(1) of the Rules of Procedure (B7-0228/2010),

               —

               having regard to Rule 121(3) of its Rules of Procedure,

               —

               having regard to the report of the Committee on Development and the opinion of the Committee on Foreign Affairs (A7-0332/2010),

               A.

               whereas disasters causing significant human, economic and environmental damage are on the increase worldwide; whereas such crises are happening with greater impact, frequency and scope in more parts of the world, mainly due to the effects of climate change; and whereas the European Union is making considerable efforts to respond to these crises,

               B.

               whereas the multiplication and greater frequency of interventions inside and outside the European Union are compounded by the global financial situation and budgetary constraints which underline the need for more cost effective operations,

               C.

               whereas sharing of resources among the 31 states that are members of the Community civil protection mechanism (EU-27, Norway, Lichtenstein, Croatia, Iceland), or in the context of enhanced cooperation between Member States, can represent an operational and financial asset,

               D.

               whereas the Commission's budget for humanitarian disasters, and specifically that of DG ECHO, has not merely been frozen but has fallen slightly in real terms over the last five years,

               E.

               whereas progress has been made in recent years towards a more coherent EU disaster response, notably through progressive strengthening of the civil protection mechanism, better interaction/coordination between civil protection and humanitarian aid, and the recognition that an integrated approach to disaster management involves not only response but also prevention and preparedness,

               F.

               whereas the European Union's response to the earthquake in Haiti triggered not only a rapid, significant and large scale humanitarian aid intervention but also the activation of the civil protection mechanism which was able to deploy immediately and for the first time two modules (a water purification unit and an advanced medical post) financed through a 2008 Preparatory Action for an EU rapid response capability,

               G.

               whereas lessons learned from recent crises continue to demonstrate the need to improve the EU’s disaster response in terms of efficiency, coordination and visibility, and whereas these disasters have once again highlighted the need for an EU rapid response capability (European civil protection force),

               H.

               whereas the EU’s capacity to protect citizens’ lives and property is a decisive factor for its credibility,

               1.

               Addresses the following recommendations to the Council:

                           (a)

                           acknowledges that the inclusion of civil protection and humanitarian aid within the portfolio of a single Commissioner responsible for Humanitarian Aid and Crisis Response creates better synergies within the Commission and helps enhance the coherence of the overall EU disaster response;

                           (b)

                           calls for greater integration between civil protection and humanitarian working methodologies within DG ECHO, while preserving their specific features by maintaining a clear distinction and demarcation of roles between them, in order to maximize synergies and complementarities and to enhance efficiency; calls also for military and civilian personnel and humanitarian workers involved in disaster response or humanitarian operations to act in accordance with the principles of neutrality, independence and impartiality;

                           (c)

                           reiterates that the use of civil protection resources, where deployed in any humanitarian crisis, should be needs driven and complementary to, and coherent with, humanitarian aid, in accordance with the European Consensus on Humanitarian Aid and the United Nations guidelines (Oslo guidelines), with a view to ensuring compliance with the humanitarian principles of neutrality, humanity, impartiality and independence;

                           (d)

                           insists that EU assistance in the event of natural or man-made disasters should aim, wherever possible, at helping the local economy, for example by purchasing locally or regionally produced foodstuffs as well as providing the necessary materials for farmers in order to relaunch the rural economy;

                           (e)

                           asks the Council and the Commission to clarify the arrangements for cooperation and coordination between the European External Action Service (EEAS) and the Commission for the management of a large-scale disaster response outside the territory of the European Union;

                           (f)

                           suggests localised coordination efforts, in cooperation with the national government of the affected state, using EU and Member States' representatives on the ground to ensure a targeted and competent response to affected localities;

                           (g)

                           urges the Council to strengthen the EU’s disaster response capacity as a high priority, especially in view of the discussions on setting up an EU Civil Protection Force, and to follow up the European Parliament’s repeated requests that the proposals put forward in the Barnier report in 2006 should be implemented;

                           (h)

                           calls for the immediate establishment of an EU Civil Protection Force which must be adequately equipped with the necessary technological and technical resources;

                           (i)

                           calls also, in the context of operations following a natural disaster, for better coordination between the humanitarian agencies and the civil protection mechanisms of the Member States and DG ECHO, and any future European civil protection force;

                           (j)

                           urges the Commission to develop programs with national governments, local authorities and civil society organisations in beneficiary countries with regard to community-based disaster prevention and response management capacity;

                           (k)

                           encourages the Council to adopt, under the ordinary legislative procedure, measures (to be proposed by the Commission) for improving the predictability and the forward-planning capacity of the current EU civil protection mechanism, which is currently based on ad-hoc and voluntary contributions from Member States; suggests that these measures may include arrangements tested under the EU Preparatory Action including EU-level assets, voluntary pooling of resources, mapping of existing capacities, identification of scenarios and the development of further training activities;

                           (l)

                           calls also for realistic budgets in which appropriations for natural disasters or humanitarian action are allocated on the basis of previous years' spending;

                           (m)

                           considers that the EU civil protection force should build on the EU Civil Protection mechanism, should optimise the tools available, which would gain in efficiency and visibility, should involve the voluntary pooling of existing logistical and human resources with regard both to disaster-response training and disaster management by developing initiatives taken during preparatory actions, and it should be capable of providing initial aid within 24 hours of the occurrence of a disaster;

                           (n)

                           recommends that the EU civil protection force be based on the principles that it should:

                                       —

                                       be based on an assessment of needs, with the participation of all humanitarian actors,

                                       —

                                       be civilian,

                                       —

                                       operate under the banner of the EU,

                                       —

                                       observe international humanitarian law,

                                       —

                                       respect the voluntary nature of the Member States' participation in the intended arrangements,

                                       —

                                       be based on the principle of burden-sharing,

                                       —

                                       be open to contributions from non-EU countries,

                                       —

                                       recognise the UN’s overall role in coordinating international relief outside the territory of the European Union,

                                       —

                                       be organised on a preventive basis, according to specific scenarios;

                           (o)

                           considers that, with particular reference to humanitarian aid operations, and based on the lessons learned from intervention in Haiti and Pakistan, the EU should, as far as possible, operate under the coordinating umbrella of the UN, concentrating on those fields where its intervention can contribute greater added value;

                           (p)

                           considers that the European civil protection force could be based on a commitment by some Member States to voluntarily make available pre-determined civil protection modules that are ready to intervene immediately in EU operations coordinated by the MIC, that most of these modules, which are already available nationally and thus would not entail significant additional costs, would remain under their control, and that the deployment of these modules placed on standby would form the nucleus of the EU’s civil protection system for responding to disasters inside and outside the EU;

                           (q)

                           considers that additional civil protection modules could be financed by the EU for certain specific requirements where gaps have been identified and where the European level would add value, and stresses the importance of increasing funding for transport and developing standby transport modules;

                           (r)

                           underlines the need to develop a comprehensive and proactive approach in response to disasters, coordinating the various means of action available to the Union and its Member States, such as crisis management (civil and military), financial assistance and development or social and environmental policies; believes in this context that the transition between disaster response and post-disaster reconstruction should be managed more efficiently; recalls the proposal to set up a European Voluntary Humanitarian Aid Corps in accordance with the provisions of the Lisbon Treaty (Article 214(5)), and with a view to the European Year of Volunteering 2011 encourages the European Commission and the Council to work, together with the European Parliament, on the rules and procedures for the operation of the Corps as soon as possible, especially in the light of similar initiatives taken by some Member States;

                           (s)

                           reminds the Council that the use of military assets and capabilities in disaster response, particularly for logistics, transport and infrastructure support for humanitarian aid operations, should be exceptional, used as a ‘last resort’ and always in compliance with existing agreements such as the European Consensus on Humanitarian Aid and the Oslo guidelines on the use of military and civil defence assets in international disaster relief;

                           (t)

                           acknowledges that military and civil defence assets in disaster relief should be used as a last resort, in compliance with the European Consensus on Humanitarian Aid and the Oslo guidelines; recalls that military means often constitute an important contribution to disaster response, along with civil protection and humanitarian aid, and notes that military assets can be necessary for filling critical capacity gaps (particularly strategic lift, specialised assets, heavy engineering and transport); therefore stresses the need to develop a comprehensive approach and to improve synergies between civil and military capabilities, and to identify areas in which Member States can pool their efforts and capabilities at EU level to contribute to EU disaster response, which is particularly important in a difficult economic climate;

                           (u)

                           emphasises the need to build up permanently available civilian capabilities in the EU which operate independently from military structures and to identify areas in which Member States can pool their efforts and capabilities at EU level in this respect;

                           (v)

                           urges the Council and the Commission to cooperate on the implementation of a visibility action plan that should include concrete measures to enhance the visibility of the EU’s disaster response;

                           (w)

                           encourages the utilisation of the Global Monitoring for Environment and Security (GMES) system to keep potential crisis areas under surveillance, allowing for better preparedness in sending humanitarian support, and stresses the critical importance of establishing a follow-up mechanism on EU efforts and assessment of deployed assistance;

                           (x)

                           encourages the development of research budgets and industrial capacity (for example satellite imagery in the GMES programme) to improve disaster management phases;

                           (y)

                           invites the Council to take the above recommendations into consideration when examining and reaching conclusions on the forthcoming Commission Communication on reinforcing the European Union’s Disaster Response Capacity, announced by the European Commission;

               2.

               Instructs its President to forward this recommendation to the Council and, for information, to the Commission.

      (1)  OJ C 286 E, 27.11.2009, p. 15.

      (2)  Texts Adopted, P7_TA(2010)0015.


Avis juridique important

|

31994H0007

94/7/EC: Council Recommendation of 22 December 1993 on the broad guidelines of the economic policies of the Member States and of the Community

Official Journal L 007 , 11/01/1994 P. 0009 - 0012

COUNCIL RECOMMENDATION of 22 December 1993 on the broad guidelines of the economic policies of the Member States and of the Community (94/7/EC)THE COUNCIL OF THE EUROPEAN UNION,  Having regard to the Treaty establishing the European Community, and in particular Article 103 (2) thereof,  Having regard to the recommendation from the Commission,  Having regard to the conclusions of the European Council of 10 and 11 December 1993,  HEREBY RECOMMENDS:  Article 103 of the Treaty on European Union provides the framework for economic policy coordination from the start of Stage II of the process towards Economic and Monetary Union. The economic policy guidelines adopted under that Article will constitute  the reference for the conduct of the economic policies in the Community and in the Member States.  Main objectives There are signs that the recession is bottoming out in the European Union. Output indicators and business surveys in a number of countries are showing signs of improved confidence and prospects. Long-term interest rates have declined substantially and  most European central banks have lowered their leading rates. However, unemployment continues to increase in most Member States. Against this background, the broad guidelines for economic policies in 1994 should aim, as a priority, for the return of a  sustainable and non-inflationary economic growth.  The Community should set itself the objective of, in the short term, reversing the trend and then, before the end of the century, significantly reducing the number of unemployed, at present standing at the unacceptable level of 17 million. A decrease in  unemployment is imperative to reduce the negative economic and social consequences arising from this wastage of human resources. Higher employment creation is also necessary to achieve a more active society where all those wishing to join in the  production process are given a chance to do so and where the weight of the factors leading to social exclusion is substantially reduced.  This employment objective should be obtained by a non-inflationary, strong and employment-creating growth, lasting over many years and respecting the environment. Higher growth is essential not only in relation to employment creation but also to enable  the Community to reap the benefits of the internal market, to improve its economic and social cohesion and to meet its growing commitments in relation to the rest of the world. Since growth cannot be artificially generated, it must be brought about  essentially by the effect of market forces and by the dynamism of the internal market, open to the outside world. The conclusion of the GATT negotiations on a global, durable and balanced basis and the Community's openness to new markets has a vital  role to play in this respect.  Achieving a higher growth rate also requires a strengthening of economic convergence among Member States. Convergence will set in place the conditions for stronger job-creation and will allow the Community to reap the full benefits of the internal  market. It will also make possible a successful transition to EMU.  In this respect the task of economic policy-makers is to allow market forces to display their full potential by:  (i) providing a stable and coherent macro-economic framework;  (ii) removing the macro- and micro-economic obstacles to growth.  In the present situation the challenge is a dual one. Firstly, to act decisively to improve the conditions for growth consistent with the commitment to the creation of high employment in the medium-term. Secondly, to create the economic and social  conditions which will permit stronger, sustainable and more employment-creating growth in the medium to longer term.  The recovery process will require a restoration of confidence through a rebalancing of the current macro-economic policy mix combined with credible structural measures. The sooner current and expected pay and budgetary trends incorporate the price  stability objective, the sooner interest rates can be further reduced substantially on a sound basis. For lower interest rates, achieved on this basis, represent an important element to boost short-term prospects in the Community. Given the severity of  the present situation, however, and the size of the budgetary adjustment to be undertaken in many countries, the recovery process may well be modest and hesitant. Therefore, the full realization of the initiatives agreed at the European Council meetings  in Edinburgh and Copenhagen is of paramount importance.  In the medium-term, policies and behaviour must remain consistent with stability. They must help to overcome rigidities and to put an end to the damaging reduction of national saving resulting from high budget deficits, thereby strengthening the  investment conditions and the growth potential of the Community so that many years of stronger and more employment-creating growth become possible.  Economic policy guidelines In order to create the conditions to realize the Community's economic objectives, in particular the increase of employment and the reduction in unemployment, the Council adopts the following broad economic policy guidelines:  Price and exchange-rate stability The Community will aim to keep a stable macro-economic framework. A rate of inflation of no more than 2 to 3 % should be reached in most Member States by 1996 as a step towards price stability in the Community.  All policies and behaviour should be consistent with this objective. Those Member States who have already reached this level of inflation should ensure that policy measures are consistent with the maintenance of this performance. For the other Member  States, determined action is needed to provide the basis for lower short-term and long-term interest rates, for example involving action related to budgetary consolidation, wage evolution and inflationary price developments in the services sector.  If these measures are implemented with sufficient speed, conditions would be established for both nominal and real interest rates to come down as inflation expectations are reduced. The setting up of the EMI will represent an additional factor of  stability and cooperation, given the important role it will play in strengthening arrangements for the coordination of Member States' monetary policies and in monitoring the functioning of the European Monetary System.  The high degree of integration and the reaping of the benefits of the internal market demand that the Community continues to aim for exchange-rate stability built on common efforts to make progress on convergence and to create sound economic  fundamentals in all Member States of the Community.  The Community reaffirms its commitment to the EMU process and timetable as agreed in the Treaty on European Union. To this end it will intensify its efforts at achieving economic convergence.  Sound public finances The restoration of confidence requires that in 1994 Member States prevent any further deterioration in their budgetary situations and carry forward the process of deficit reduction. In those Member States facing more worrying fiscal positions,  confidence will benefit from an immediate strong pursuit of the consolidation process. This holds true especially for Member States with very high and rising public debt ratios. The consolidation process should intensify in those Member States with high  budget deficits and which are expected to face a relatively favourable economic situation in 1994. In other Member States tight control of budgets will be necessary in 1994 but the emphasis should mainly be on credible medium term consolidation  strategies with measures to be already announced now which will take effect in future years as the recovery strengthens. At the Community level, the limits on EC spending and revenue agreed at the Edinburgh Council must be respected.  In 1995, Member States should continue action to make their public finance positions sustainable again. Under the expected growth path for the years ahead, this means action towards reducing budget deficits to the reference value indicated in the Treaty  on European Union (3 % of GDP). Most Member States have the potential to reach this goal by 1996, with the others needing more time. This action will contribute to meeting the criterion relating to public debt provided for in the Treaty.  The measues used to stabilize public budgets will give priority to reductions in current expenditure and to improving the efficiency of the tax system, for example, by strengthening action against tax evasion. All Member States need to re-orient public  expenditure to more productive uses and to increased investment in particular.  In the long term, Member States' budgetary policies will be directed towards contributing to higher national savings and investment. This will entail much lower budget deficits (perhaps close to balance by the year 2000).  Creating more employment Member States and the Community will take resolute action to improve the functioning of their economies, aiming specifically at improving competitiveness and the Community's capacity to create jobs.  Because of the institutional, legislative and contractual peculiarities of each Member State, the Community's action must focus on defining objectives, while leaving Member States free to choose the means appropriate to their situation within a general  framework defined in common. With this in mind, the Council considers that, in order to strengthen the capacity of the European economy to create jobs, Member States should draw on suggestions from the Commission White Paper.  Pay, investment and employment Member States set themselves the objective of a significant increase in the share of investment in GDP. Meeting this objective is essential in order to increase the Community's potential for sustainable non-inflationary growth of the European economy in  the medium and long term. Moreover, the recovery in private investment will, in the short term, help to stimulate demand.  Recovery in investment will be possible if society is prepared today to make the efforts which will bring more prosperity and more jobs tomorrow. That calls, amongst other things, for pay developments consistent with the improvement in the profitability  of investment and in the competitiveness of European undertakings on world markets. That process will also contribute to promoting job-creation in the immediate term.  In the short term, the need to create news jobs will not permit real pay growth in most countries and may result in real pay reductions in certain sectors of the economy. However, pay movements should provide for an appropriate differentiation according  to the situation in Member States, industrial sectors and firms, as well as vocational qualifications and work experience.  To this end, Governments and the social partners will use all instruments which national procedures provide to ensure that pay trends in their countries adapt rapidly to the objective concerning inflation.  Pay moderation in the public sector is also important, on the one hand to take the pressure off public finance and to accelerate promotion of public investment and on the other to set an example for the private sector.  Schemes promoting new forms of labour organization on a sound economic basis may be introduced through negotiation in a decentralized way (at sector or enterprise level).  Reducing the indirect cost of labour Where appropriate, Member States must intensify their efforts to bring about a significant reduction in the indirect cost of labour. Such reduction would enable a better balance to be achieved between the costs of the various production factors. Failing  that, the labour factor, in particular low-skill labour, would suffer excessively.  Action to be undertaken in this field has a twofold objective:  - it should promote job-creation in services responding to new society needs, the development of which is currently discouraged by the high level of the indirect cost of labour,  - combined with pay moderation, it should also save jobs in the sector exposed to international competition by curbing the replacement of labour by capital and the relocation of activity.  In order to encourage the process in the right direction, Member States are invited to examine to what extent an adaptation of the financing mechanisms of their social protection system, along with saving measures, could further contribute to the  promotion of employment. However changes in the systems should not increase Member States' indebtedness. The question will be re-examined at Community level on the basis of reports which Member States are invited to present. Fiscal measures possibly  relating, inter alia, to the environment could be one of the means of offsetting a drop in social contributions, within a general context of stabilizing all statutory contributions and reducing the tax burden.  Active policies towards employment Meeting the objective will also depend on adjusting employment policies to the changing economic environment.  Member States are invited to:  - improve educational and job-training systems so that those who enter the labour market have the possibility of developing professionally and at the same time have skills that are useful to undertakings,  - help reintegrate the long-term unemployed in the labour market,  - improve the functioning of local placement services,  - remove excessive rigidities which prevent the labour market from functioning effectively,  - improve labour mobility,  - promote liberalization measures aimed at sheltered sectors, including, where appropriate, the services industry.  Completing the international market The existence of a large export-oriented internal market is a major asset of the European economy, and it must be fully exploited. The full incorporation of Community legislation into national law, simplification and reduction of the legislation, the  creation of a fiscal, administrative and financial environment favourable to small and medium-sized enterprises, the application of the competition rules and the control of State aids are essential elements in the completion of the internal market.  Likewise, the capital market must be made more efficient in order to encourage a flow of savings into productive job-creating investments.  The trans-European networks are also an essential element for the effective operation of the internal market and the reinforcement of economic competitiveness. The Council will make full and rapid use of the new possibilities offered by the Treaty  (Article 129b).  The economic policy guidelines laid out above will constitute the reference for all future multilateral surveillance exercises. The implementation of the guidelines will be monitored in accordance with the procedures laid down in the Treaty. The Council  will also assess the implementation of those guidelines in their assessment of Member States' convergence programmes.  Done at Brussels, 22 December 1993.  For the Council The President J.-M. DEHOUSSE


title: Council Recommendation of 9 July 2013 on the National Reform Programme 2013 of Luxembourg and delivering a Council opinion on the Stability Programme of Luxembourg, 2012-2016

text:
               30.7.2013

               EN

               Official Journal of the European Union

               C 217/55

      COUNCIL RECOMMENDATION

   of 9 July 2013
   on the National Reform Programme 2013 of Luxembourg and delivering a Council opinion on the Stability Programme of Luxembourg, 2012-2016
   2013/C 217/14
   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 conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Social Protection Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

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

               (2)

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

               (3)

               On 29 June 2012, the Member States’ Heads of State or Government decided on a Compact for Growth and Jobs, providing a coherent framework for action at national, EU and euro area levels using all possible levers, instruments and policies. They decided on action to be taken at the level of the Member States, in particular expressing full commitment to achieving the objectives of the Europe 2020 strategy and to implementing the country-specific recommendations.

               (4)

               On 10 July 2012, the Council adopted a Recommendation (3) on Luxembourg’s National Reform Programme for 2012 and delivered its opinion on Luxembourg’s Stability Programme for 2012-2015.

               (5)

               On 28 November 2012, the Commission adopted the Annual Growth Survey, marking the start of the 2013 European Semester for economic policy coordination. Also on 28 November 2012, the Commission, on the basis of 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 (4), adopted the Alert Mechanism Report, in which Luxembourg was not identified as one of the Member States for which an in-depth review would be carried out.

               (6)

               The European Parliament has been duly involved in the European Semester, in accordance with Regulation (EC) No 1466/97, and, on 7 February 2013, adopted a resolution on employment and social aspects in the Annual Growth Survey 2013 and a resolution on the contribution to the Annual Growth Survey 2013.

               (7)

               On 14 March 2013, the European Council endorsed the priorities for ensuring financial stability, fiscal consolidation and action to foster growth. It underscored the need to pursue differentiated, growth-friendly fiscal consolidation, to restore normal lending conditions to the economy, to promote growth and competitiveness, to tackle unemployment and the social consequences of the crisis, and to modernise public administration.

               (8)

               On 26 April 2013, Luxembourg submitted its 2013 National Reform Programme and its Stability Programme for the period 2012-2016. In order to take account of their interlinkages, the two Programmes have been assessed at the same time.

               (9)

               Based on the assessment of the Stability Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections in the Programme is plausible. In particular, the Stability Programme scenario for 2013 is very close to the 2013 Commission services 2013 spring forecast, while for 2014 it is slightly more optimistic. Medium-term deficit projections are made under a slightly optimistic growth scenario, above potential growth. The objective of the budgetary strategy outlined in the Stability Programme is to bring the deficit from 0,8 % of GDP in 2012 to 0,6 % of GDP in 2014. However in the outer years of the programme period, the deficit is forecast to deteriorate to 1,3 % of GDP both in 2015 and 2016. This is the result of the introduction of the new VAT rules regarding electronic services, entering into force on 1 January 2015. According to these rules, the VAT revenues generated from e-commerce activities will be transferred from the country where the supplier is located to that of the residence of the customer. The impact of the new rules is estimated by the authorities to lower tax revenues from VAT by 1,4 % of GDP. The Government has already announced that the standard VAT rate will be increased, with a view to make up a part of the revenue loss. The Stability Programme confirms the previous medium-term budgetary objective (MTO) of a structural surplus of 0,5 % of GDP. The MTO is in line with the requirements of the Stability and Growth Pact. Based on both the Commission services 2013 spring forecast as well as on the (recalculated) structural budget balance in the Stability Programme, Luxembourg is expected to be at a structural surplus of 0,1 % of GDP, which is below the MTO, in 2012, and is projected to achieve its MTO in 2013. However, Luxembourg is projected to depart again from its MTO starting from 2014 by 0,3 % of GDP and even further in 2015 and 2016. The national authorities have reiterated their objective to return to the MTO at the latest in 2017 so as to provide greater room for manoeuvre. At 20,8 % of GDP in 2012, gross government debt is well below the Treaty reference value.

               (10)

               Luxembourg has been able to keep its public deficit below the 3 % of GDP threshold over the past years, therefore avoiding entering the excessive deficit procedure. This has been due more to buoyant revenues rather than to expenditure restraint. Specifically, in 2012, the growth rate of government expenditure, net of discretionary revenue measures, is estimated to have exceeded the expenditure benchmark of the Stability and Growth Pact. The deviation of the growth rate of government expenditure from the expenditure benchmark is estimated to reach 1,3 % of GDP, above the threshold of 0,5 % of GDP defined in Regulation (EC) 1466/97. However, to qualify this deviation, an overall assessment needs to be conducted, taking into account other factors: (i) the deficit deteriorated in structural terms by only 0,2 % of GDP in 2012; (ii) the economy of Luxembourg, given the small size of the country and its degree of openness, is very volatile; and (iii) according to the Commission services spring 2013 forecast, Luxembourg should attain its MTO already in 2013. All these elements point to a non-structural nature of the deviation. Still, the high volatility of the revenues collected by Luxembourg’s general government, up to now resulting in higher-than-planned revenues, represents a risk for the sustainability of public finances. To better address these risks, both the debt and expenditure constraints should be established in law. Moreover, there should be an identified monitoring body and predefined action in case of non-compliance. The entry into force on 1 January 2015 of the above-mentioned VAT package and its subsequent strong negative impact on tax collection illustrates the importance for Luxembourg to introduce a medium-term budgetary framework. Specifically, this would call for a particularly prudent fiscal stance in 2014.

               (11)

               Currently, less than a third of tax revenues are raised from consumption taxes, partially owing to moderate standard and reduced VAT rates. Luxembourg ranks first in the EU in terms of the number of categories of goods and services covered by reduced VAT rates. The presence of a large financial sector, exempted from VAT, also contributes to the low VAT to GDP ratio. Overall, Luxembourg has scope to raise revenue by extending the standard VAT rate. In addition, the corporate tax system in Luxembourg is characterised by a large tax bias towards indebtedness, which contributes to a high private debt to GDP ratio.

               (12)

               The Luxembourg pension reform adopted in December 2012 can only be considered an important first step in the right direction. Even when taking into account most of the aspects of the adopted pension reform, Luxembourg would still need to implement long-term sustainability-enhancing policies equivalent to a permanent improvement of 8,6 percentage points of GDP in the primary balance to close the fiscal gap. Luxembourg therefore needs to go further in its pension reform. The introduction of a cap on pension adjustments based on real wage increases would increase pension reserves and increasing the effective retirement age by aligning the retirement age or pension benefits to change in life expectancy would help ensure the long-term sustainability of the pension system. Moreover, the possibilities for early retirement should be reduced and it should be made more attractive to work longer than the minimum required. In addition, the impact on fiscal sustainability of long-term care expenditure is projected to contribute by 2,1 percentage points to Luxembourg’s sustainability gap. The expected increase in both the number of elderly and the number of dependants in Luxembourg is high compared to the EU average.

               (13)

               Luxembourg’s current productivity is rather high. However, the room for manoeuvre in terms of productivity gains is getting smaller. Therefore, the growth of unit labour costs should be limited by ensuring a better correlation between wages and productivity. Luxembourg has taken measures to moderate wage growth by modulating the indexation system between 2012 and 2014. However, this reform is only temporary and does not guarantee that wages will over time evolve in line with productivity. Productivity is not the same across all economic sectors, and the level of productivity in the financial sector is almost twice as high as in the remaining part of the economy. There will be a significant risk to Luxembourg’s competitiveness from 2015 onward, when the automatic indexation system will again be applied in the normal way. Additional measures should thus be taken to reform the wage setting system in a more permanent way to avoid a further deterioration of competitiveness in the future.

               (14)

               Luxembourg’s economy is heavily dependent on its financial sector, which accounts for about 30 % of total value added and 25 % of collected fiscal revenues. To safeguard the country’s future competitiveness, alternative "competence niches" would need to be developed. However, the Luxembourgish research and innovation system remains very weak and Luxembourg is not on track to reach its research and development (R&D) intensity target for 2020. The performance of Luxembourg on the indicators on cooperation between public research institutions and firms is well below the EU average, reflecting the current disconnections between the private sector R&D and the public research system. Luxembourg should counteract the declining trend of its R&D intensity, in particular by helping boost business R&D intensity. The development of a more targeted smart specialisation strategy could play a crucial role in maximising the economic impacts of public research funding, in particular through ensuring a leverage effect on private investments. Such a targeted approach should be complemented by a comprehensive horizontal policy focused on the development and growth of innovative firms.

               (15)

               Youth unemployment remains persistently high at 18 % and depends heavily on the educational level. Young residents face intense competition for jobs from non-residents, who are often more skilled. While Luxembourg has demonstrated a strong commitment to combating youth unemployment, further efforts are needed. In order to maximise returns, measures taken should be made part of a comprehensive reform strategy, including enhanced activation policies to combat benefit dependency. Luxembourg’s PISA (5) performance testing on basic skills of young people is relatively weak. Further measures are needed to counteract the negative tendency in reading, mathematics and science observed since 2006. Further efforts should be made to improve and target education resources for schools with disadvantaged students and increase resources available for language support and remedial classes. The specific challenges faced by people with a migrant background on the labour market should be further examined and addressed by targeted measures, including in respect of language skills. Vocational education and training should be given particular attention in this context. Further measures should be taken to improve early childhood education and reduce early school leaving, in particular for the migrant population. The employability of older workers should be improved, including through skills upgrading.

               (16)

               Luxembourg is committed to reducing its greenhouse gas emissions in the non-ETS (emissions trading system) sectors by 20 % in 2020 compared to 2005 but is expected to fail to meet its target by 23 percentage points according to the latest 2020 projections based on existing measures. The transport sector was responsible for 68 % of non-ETS emissions in 2011 and represents a key challenge for Luxembourg. Measures currently in place would only contribute to approximately a third of the greenhouse gas emission reduction necessary to meet the target. Consequently, measures need to be significantly stepped up, in particular by increasing fuel taxation so as to reduce the taxation gap with neighbouring countries. The vehicle tax reform should also be accelerated. Luxembourg should continue with the implementation of projects which favour the use of public transport. It should introduce congestion charging on roads to encourage a shift towards public transport. Better public transport connections with neighbouring regions should be promoted.

               (17)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of Luxembourg’s economic policy. It has assessed the National Reform Programme and Stability Programme. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Luxembourg but also their compliance with EU rules and guidance, given the need to reinforce the overall economic governance of the Union by providing EU-level input into future national decisions. Its recommendations under the European Semester are reflected in recommendations (1) to (6) below.

               (18)

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

               (19)

               In the context of the European Semester, the Commission has also carried out an analysis of the economic policy of the euro area as a whole. On this basis, the Council has issued specific recommendations addressed to the Member States whose currency is the euro (7). As a country whose currency is the euro, Luxembourg should also ensure the full and timely implementation of those recommendations,

         HEREBY RECOMMENDS that Luxembourg take action within the period 2013-2014 to:

               1.

               Preserve a sound fiscal position and remain at the MTO so as to ensure the long-term sustainability of public finances, in particular by taking into account implicit liabilities related to ageing. Strengthen fiscal governance by adopting a medium-term budgetary framework covering the general government and including multi-annual expenditure ceilings, and by putting in place the independent monitoring of fiscal rules.

               2.

               Take measures to address the debt-bias in corporate taxation and extend the application of the standard VAT rate.

               3.

               Curb age-related expenditure by making long-term care more cost effective, in particular through a stronger focus on prevention, rehabilitation and independent living, strengthening the recently adopted pension reform, taking additional measures to curb early retirement and increasing the effective retirement age by aligning the retirement age or pension benefits to changes in life expectancy.

               4.

               Beyond the current freeze, take further structural measures, in consultation with the social partners and in accordance with national practices, to reform the wage setting system, including wage indexation, to improve its responsiveness to productivity and sectoral developments and labour market conditions and foster competitiveness. Step-up efforts to diversify the structure of the economy, fostering private investment in research, in particular by developing cooperation between public research and firms.

               5.

               Step up efforts to reduce youth unemployment by improving the design and monitoring of active labour market policies. Strengthen general and vocational education to better match young people’s skills with labour demand, in particular for people with a migrant background. Reinforce efforts to increase the participation rate of older workers, including by improving their employability through lifelong learning.

               6.

               Step up measures to meet the target for reducing non-ETS greenhouse gas emissions, in particular by increasing taxation on energy products for transport.

      Done at Brussels, 9 July 2013.

            For the Council

            The President

         R. ŠADŽIUS

      (1)  OJ L 209, 2.8.1997, p. 1.

      (2)  Maintained for 2013 by Council Decision2013/208/EU of 22 April 2013 on guidelines for the employment policies of the Member States (OJ L 118, 30.4.2013, p. 21).

      (3)  OJ C 219, 24.7.2012, p. 58.

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

      (5)  PISA is the OECD Programme for International Student Assessment.

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

      (7)  See page 97 of the current Official Journal.


				|

		52012PC0273

			Recommendation for a COUNCIL DECISION abrogating Decision 2010/422/EU on the existence of an excessive deficit in Bulgaria /* COM/2012/0273 final */

			   	Recommendation for a
COUNCIL DECISION
abrogating Decision 2010/422/EU on the
existence of an excessive deficit in Bulgaria
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union,
and in particular Article 126(12) thereof,
Having regard to the recommendation from
the Commission,
Whereas:
(1)       By Council Decision
2010/422/EU of 13 July 2010[1],
following a proposal from the Commission in accordance with Article 126(6)
of the Treaty, it was decided that an excessive deficit existed in Bulgaria.
The Council noted that the general government deficit reached 3.9% of GDP in
2009, above the 3% of GDP Treaty reference value, while the general government
gross debt was 14.8% of GDP, well below the 60% of GDP Treaty reference value[2].
(2)       On 13 July 2010, in
accordance with Article 126(7) of the Treaty and Article 3(4) of Council Regulation
(EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation
of the excessive deficit procedure[3],
the Council, based on a recommendation from the Commission, addressed a
recommendation to Bulgaria with a view to bringing the excessive deficit
situation to an end by 2011 at the latest. The recommendation was made public.
(3)       In accordance with Article
4 of the Protocol on the excessive deficit procedure annexed to the Treaties,
the Commission provides the data for the implementation of the procedure. As
part of the application of this Protocol, Member States are to notify data on
government deficits and debt and other associated variables twice a year,
namely before 1 April and before 1 October, in accordance with Article 3 of
Council Regulation (EC) No 479/2009 of 25 May 2009 on the application of the
Protocol on the excessive deficit procedure annexed to the Treaty establishing
the European Community[4].

(4)       When considering whether a
decision on the existence of an excessive deficit should be abrogated, the
Council should take a decision on the basis of notified data. Moreover, a
decision on the existence of an excessive deficit should be abrogated only if
the Commission forecasts indicate that the deficit will not exceed the 3% of
GDP threshold over the forecast horizon[5].
(5)       Based on data provided by
the Commission (Eurostat) in accordance with Article 14 of Regulation (EC) No 479/2009
following the notification by Bulgaria before 1 April 2012 and on the
Commission services’ 2012 spring forecast, the following conclusions are
warranted:
–
The budgetary targets have been consistently overachieved
in the period following the year of the excessive deficit. The general
government deficit was reduced to 3.1% of GDP in 2010 and decreased further to
2.1% of GDP in 2011, against initially set targets of 3.8% and 2.5%
respectively. The correction of the deficit has been driven mainly by strict
control of expenditure growth, including through freezing the government sector
wage bill and pensions, whereby the expenditure-to-GDP ratio fell by 5.5 percentage
points between 2009 and 2011. The 2012 convergence programme projects the deficit
to continue falling to 1.6% of GDP in 2012 and 1.3% of GDP in 2013. In the
Commission services' 2012 spring forecast the general government deficit is
projected to improve to 1.9% of GDP in 2012 and to 1.7% of GDP in 2013,
supported by a continued freeze in the government sector wage bill, as well as
a cyclical improvement in revenues.
–
The Commission services' 2012 spring forecast
projects a cyclically adjusted balance net of one-off and temporary measures of
0.7% in 2012 and of 0.8% of GDP in 2013, under a no-policy-change assumption. Meanwhile,
in 2012 and 2013, the growth rate of government expenditure net of
discretionary revenue measures is forecast to remain below the benchmark
reference medium-term rate of potential GDP growth, as specified in Article 5(1)
of 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.
–
The Commission services'
2012 spring forecast projects the general government gross debt to increase
moderately from 16.3% of GDP in 2011 to 18.5% of GDP in
2013. This debt forecast does not include possible external debt issuance in
2012 to pre-fund the repayment of euro-denominated bonds of around 2% of GDP in
January 2013. Similarly, the latest convergence programme projects the debt
ratio to increase to 18.4% by 2013.
(6)       In accordance with Article
126(12) of the Treaty, a Council Decision on the existence of an excessive
deficit is to be abrogated when the excessive deficit in the Member State
concerned has, in the view of the Council, been corrected.
(7)       In the view of the
Council, the excessive deficit in Bulgaria has been corrected and Decision
2010/422/EU should therefore be abrogated.
HAS ADOPTED THIS DECISION:
Article 1
From an overall assessment it follows that the
excessive deficit situation in Bulgaria has been corrected.
Article 2
Decision 2010/422/EU is hereby abrogated.
Article 3
This Decision is addressed to the Republic
of Bulgaria.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 199, 31.7.2010, p. 26.
[2]               The general government deficit and debt for 2009 were
subsequently revised to currently 4.3% of GDP and 14.6% of GDP respectively.
[3]               OJ L 209, 2.8.1997, p. 6.
[4]               OJ L 145, 10.6.2009, p. 1.
[5]               In line with the “Specifications on the
implementation of the Stability and Growth Pact and Guidelines on the format
and content of Stability and Convergence Programmes”, as agreed by the Council
on 24 January 2012. See:
http://ec.europa.eu/economy_finance/economic_governance/sgp/pdf/coc/code_of_conduct_en.pdf


Avis juridique important

|

31994H0480

94/480/EC: Council Recommendation of 11 July 1994 on the broad guidelines of the economic policies of the Member States and of the Community

Official Journal L 200 , 03/08/1994 P. 0038 - 0041

COUNCIL RECOMMENDATION of 11 July 1994 on the broad guidelines of the economic policies of the Member States and of the Community (94/480/EC)THE COUNCIL OF THE EUROPEAN UNION,  Having regard to the Treaty establishing the European Community, and in particular Article 103 (2) thereof,  Having regard to the recommendation from the Commission,  Having regard to the opinion of the Monetary Committee,  Having regard to the conclusions of the European Council of 24 and 25 June 1994,  HEREBY RECOMMENDS:  Article 103 of the Treaty provides the framework for economic policy coordination from the start of Stage II of the process towards economic and monetary Union. The economic policy guidelines adopted under that Article will constitute the reference for  the conduct of the economic policies in the Community and in the Member States.  An economic recovery is currently under way in the Community. The key task of economic policy will be to sustain and to strengthen this recovery in the coming quarters, and to ensure that it lays the ground for strong employment growth. Furthermore,  growth must be sustainable and take due account of the environment. To sustain the recovery, it will be necessary to maintain progress towards price stability and thereby to create the conditions for low interest rates. Budgetary policy will play a  crucial role in this respect, by making budgetary positions sustainable again and by contributing to the necessary increase in national saving. Equally important will be the continuation of the structural adjustment reforms currently under way. The  improvement in the economic situation must constitute a spur to step up efforts in these two areas and not to lead to complacency and a reduced determination. The errors of the previous economic cycle must not be repeated.  The current set of policy guidelines develops more concretely those adopted last December to take into account the economic outlook and the specific situation of the Member States. Their implementation will contribute to the improvement of the current  policy mix, by fostering budgetary consolidation and by sustaining wage moderation and by easing the stabilization burden placed on monetary policy. If the policy mix is improved upon as inflationary expectations subside and budgetary consolidation  progresses, and if effective structural adjustment efforts are implemented, the Community can return to sustained rates of growth and employment creation. Under these conditions, it should be possible to stabilize unemployment in the course of 1995 and  to place it on a downward trend thereafter.  The present guidelines, adopted under Article 103 (2) of the Treaty, will constitute the reference for the conduct of the economic policies in the Community and in the Member States. The re-affirm the goal identified in the December 1993 guidelines of  substantially increasing employment over the next few years to reduce the current high level of unemployment. The present guidelines confirm the medium-term strategy outlined last December to bring the Community economy back to a path of stronger,  durable and more employment-creating growth.  Price and exchange rate stability The favourable price trends which have been recorded over the past year, and the progress which is expected to be made in 1994 and 1995, will pave the way for the resumption of sustainable non-inflationary growth in the near-term. Macro-economic and  financial policies should be firmly directed towards securing price stability as the norm in the Community. The return to, and maintenance of, price stability requires wage and budgetary trends to be consistent with this objective. A rate of inflation  of no more than 2 to 3 % should be reached in most Member States at the latest by 1996, as a step towards price stability in the Community.  The commitment to sustaining low inflation depends, to a large extent, on the conduct of macro-economic and structural policies. The results obtained until now also reflect the working of the internal market and the effects of competition policy. To  reduce further inflationary pressures and expectations, it is necessary that all policies are predictable, credible, and time-consistent. Success in this respect will help achieve lower interest rates. Price stability is also an essential ingredient of  exchange rate stability between Member States. In turn, such exchange rate stability, when soundly based, can help in the achievement of price stability.  Member States which have already achieved inflation rates, reflected in consumer price indices, in the range proposed by the guidelines are Belgium, Denmark, Germany, France, Ireland, Luxembourg, the Netherlands and the United Kingdom. In most of these  countries, wage trends have developed in a manner consistent with price stability. These countries should consolidate the gains made on inflation and should continue the cautious policies necessary to secure stable prices in the medium term.  Inflation in the other Member States has yet to decline into the range set by the guidelines. It is essential that, as their economies recover, possible lagged effects of past depreciations do not put price stability under threat. In all countries,  additional efforts are required in order both to reduce inflation and to maintain price stability over the medium term.  Disinflation in Greece needs to be reinforced. A fundamental condition for lowering inflation and achieving price stability in Greece is the correction of budgetary imbalances. Credible policies for budgetary adjustment should be pursued in order to  dispel adverse inflation expectations and to support the external stability of the drachma.  All Member States should ensure that policies are consistent with and support exchange rate stability within the Community. This is necessary to reap the full benefits of the increase in economic integration.  Sound public finances As proposed in the December 1993 economic policy guidelines, from 1995 onwards budgetary policy will have to lay the ground for more investment and growth. The first priority will be making budgetary positions sustainable again; budgetary deficits  should be brought within the reference value of 3 % of GDP, defined in the Treaty. Current forecasts indicate that, while the prospects for moving deficits within the reference value of 3 % of GDP by 1996/97 may now be more favourable, this will not be  possible without a determined commitment to fiscal adjustment. At the Community level, the limits on EC spending and revenue agreed at the Edinburgh Council must be respected.  The deterioration in the public finances experienced since 1990 has led to worrying budgetary positions in most Member States and there is an urgent need to return to a path of sustained reductions in fiscal imbalances. Restoration of confidence  requires that, as the recovery gets under way, the budgetary consolidation plans envisaged in convergence programmes are implemented and that, should deviations emerge, additional measures are taken to ensure that the targets of these plans for 1994 and  beyond are met. Member States should use any room for manoeuvre created by stronger rates of economic growth, or lower interest rates, than those underlying the budgetary forecasts to accelerate the pace of consolidation. It is necessary to exploit the  improving economic situation to implement a fundamental reversal in the path of budgetary deficits recorded since the early part of the decade. This would reinforce the authorities' commitment to budgetary consolidation and would improve the credibility  of their actions.  Budgetary policy can make an important contribution to growth and employment creation not only by pursuing the priority goal of budgetary consolidation. In addition, it can help through re-orienting tax receipts and expenditure towards support of viable  public and private investment and other spending conducive to stronger economic growth. At the same time, and where necessary, Member States should aim at modifying their tax structures in ways which are likely to favour employment and benefit the  environment.  It is essential that budgetary consolidation should continue as the economic recovery progresses. The budgets for 1995 should therefore constitute a clear confirmation that fiscal consolidation is under way.  In Member States where interest payments constitute a significant budgetary item and where the debt ratio is high and increasing (Belgium, Greece and Italy), decisive efforts should be undertaken to reduce budget deficits, mainly through the containment  of the growth of primary current spending. Among the countries having convergence programmes, Belgium, Denmark, Germany, France, the Netherlands, Portugal and the United Kingdom must follow up with determination the budgetary consolidation programmes  already announced or implemented. Ireland and Luxembourg need to continue the progress already achieved.  In Greece, a determination to achieve fiscal consolidation through credible policies in a multiannual framework is crucial. Policies, aimed in particular at enhancing tax collection and restraining spending, should be quickly translated into concrete  actions.  In Italy, following the progress made in 1993, it is necessary to strengthen the efforts to promote budgetary adjustment in a medium-term framework.  In Spain, the sharp deterioration in the budgetary position which took place in 1993 makes it necessary to embark upon a multiannual path of fiscal consolidation, thereby updating the 1992 convergence programme as already announced by the Government.  In certain Member States significant improvements in tax administration (for example, simplification of the tax system, more effective fight against tax evasion, etc.) are essential conditions to promote budgetary adjustment, while in some other  countries there is also a continuing need to contain current expenditure pressures, including social security outlays.  A more dynamic Community economy All Member States must increase their efforts aimed at improving the functioning of their economies along the lines indicated in the Commission's White Paper on 'Growth, competitiveness and employment' and, in particular, in the action plan adopted by  the European Council in December 1993.  Member States should ensure that their economies will reap fully the benefits of the internal market and of international trade. Community firms, particularly SMEs, should be encouraged to improve their organization, their R&  D efforts and their  awareness of emerging opportunities, especially in the most dynamic world markets. Continued attention should be devoted to improving the competitive environment in which firms operate. Privatization, to the extent that Member States judge it compatible  with their objectives, could further the progress already made in this direction.  The Community, for its part, will continue to implement those parts of the action plan falling under its competence (e.g. trans-European networks, maintenance of an open trading system, involving rigorous enforcement of rules on state aids and  competition, improved research and development efforts, etc.). The combined efforts of Member States and of the Community will increase the dynamism and the competitiveness of the Community's economy.  Structural measures for creating more employment Structural policies should be directed towards ensuring that growth delivers more and better jobs. They should also equip the workforce with the skills needed for those jobs and the capacity to adapt to change. Priorities include:  - improving training and education which must be focused on ensuring a match between skills and the new jobs that will be available. Central to this will be the need to foster a new attitude towards the balance between work, training and leisure. This  involves:  - better basic education, particularly problem solving and adaptability,  - easing the school to work transition,  - employer involvment,  - life-long training,  - making markets, particularly labour markets and regulations much more flexible. This means looking anew at the whole range of policy areas that affect the operation of the labour market, including labour law, taxation, social security policy, to  ensure that:  - equity objectives are achieved in a way that does not adversely affect the functioning of labour markets,  - labour market regulation, housing or other policies do not act as a constraint on labour mobility,  - obstacles to more flexible working time are dismantled,  - stepping up active labour market policies. These should target help towards particular groups (long-term and young unemployed), to counter the problem of exclusion and to remove potential inflationary bottlenecks,  - fully exploiting the job-creating potential of SMEs,  - promoting liberalization measures aimed at sheltered sectors of the economy, including, where appropriate, the liberal professions,  - improving the use of labour as a factor of production by reducing non-wage costs, especially on the low-paid, who are the hardest hit. In most Member States, measures are contemplated or are being implemented which aim at reducing the non-wage costs  of employment for certain categories of workers, notably lower paid workers and young people. These steps should be pursued with determination, consistent with the objective of budgetary consolidation,  - ensuring that environmental costs are better reflected in prices throughout the economy and maintaining the principle according to which the polluter should pay,  - pay policies, beyond being consistent with the inflation targets, should contribute to making room for stronger investment and increased employment. Given the present high level of unemployment throughout the Community, any real wage increases should  fall short of productivity increases; current trends suggest that this is already occurring in the Community. The policy task will be to ensure that the conditions are created whereby present trends are sustained over many years. Real wage increases  should reflect changes in demand and supply between sectors and different areas of the Union. In some sectors of the economy, the need to maintain or create jobs may require in the short run a decrease in real wages.  Wage moderation should be maintained in all Member States. This is especially necessary as the projected recovery gains strength. Pay agreements in Member States need to be consistent with the proposals of the guidelines and they should be built upon to  sustain wage moderation in the medium term. This is especially the case where unemployment is projected to decline. Wage moderation would help to secure these labour market gains and would pave the way for further employment growth in the medium term.  In the Member States, especially where unemployment might still increase this year, various specific measures are either planned or implemented to encourage employment opportunities and to halt the deterioration in the labour market. Whatever the  effectiveness of these measures to create employment in the short term, it is essential that these policies are actively pursued and that their contribution to strengthening job creation is enhanced. As the recovery gains momentum, the benefits from  these policies will become visible.  The Commission's White Paper has helped to stimulate the debate on growth, competitiveness and employment in numerous countries. Many Member States have taken measures consistent with the strategy proposed in the White Paper, as set out in the report of  the Economic Policy Committee to the Ecofin Council. But as that report makes clear, much remains to be done to improve the employment situation and the efficiency of European labour markets.  Done at Brussels, 11 July 1994.  For the Council The President Th. WAIGEL


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31978K2346

Commission Recommendation No 2346/78/ECSC of 5 October 1978 amending the Annex to Recommendation 78/282/ECSC

Official Journal L 282 , 07/10/1978 P. 0021 - 0021

****( 1 ) OJ NO L 73 , 15 . 3 . 1978 , P . 37 .    COMMISSION RECOMMENDATION NO 2346/78/ECSC   OF 5 OCTOBER 1978   AMENDING THE ANNEX TO RECOMMENDATION 78/282/ECSC   THE COMMISSION OF THE EUROPEAN COMMUNITIES ,   HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN COAL AND STEEL COMMUNITY , AND IN PARTICULAR ARTICLE 74 ( 3 ) THEREOF ,   WHEREAS BY RECOMMENDATION 78/282/ECSC OF 9 MARCH 1978 TO THE GOVERNMENTS OF THE MEMBER STATES AMENDING COMMISSION RECOMMENDATION 77/330/ECSC OF 15 APRIL 1977 ESTABLISHING COMMUNITY SURVEILLANCE IN RESPECT OF IMPORTS INTO THE COMMUNITY OF CERTAIN IRON AND STEEL PRODUCTS COVERED BY THE ECSC TREATY , ORIGINATING IN THIRD COUNTRIES ( 1 ), THE COMMISSION DECIDED THAT IT WOULD NO LONGER BE NECESSARY THAT THE REQUEST FROM THE IMPORTER SHOULD MENTION THE EFFECTIVE PRICE ( BASIC PRICE PLUS EXTRAS ) ESTABLISHED ON A FREE-AT-COMMUNITY-FRONTIER DUTY PAID BASIS , IN RESPECT OF REINFORCING BARS FALLING WITHIN SUBHEADING EX 73.10 A II , ORIGINATING IN SWITZERLAND , AND IN RESPECT OF THE PRODUCTS ORIGINATING IN THE THIRD COUNTRIES INDICATED IN THE LIST ANNEXED TO THE SAID RECOMMENDATION ;   WHEREAS THIS LIST SHOULD BE EXTENDED TO INCLUDE SOUTH KOREA ,   HAS ADOPTED THIS RECOMMENDATION :   ARTICLE 1   THE LIST OF THIRD COUNTRIES IN THE ANNEX TO RECOMMENDATION 78/282/ECSC IS HEREBY EXTENDED TO INCLUDE SOUTH KOREA .   ARTICLE 2   THIS RECOMMENDATION SHALL BE NOTIFIED TO THE MEMBER STATES AND PUBLISHED IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .   IT SHALL ENTER INTO FORCE ON 7 OCTOBER 1978 .   DONE AT BRUSSELS , 5 OCTOBER 1978 .   FOR THE COMMISSION   WILHELM HAFERKAMP   VICE-PRESIDENT


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31978K0859

Commission Recommendation No 859/78/ECSC of 27 April 1978 providing for the suspension of provisional anti- dumping duties established in relation to imports of steel products originating in Czechoslovakia

Official Journal L 116 , 28/04/1978 P. 0020 - 0020

****( 1 ) OJ NO L 114 , 5 . 5 . 1977 , P . 6 .  ( 2 ) OJ NO L 352 , 31 . 12 . 1977 , P . 13 .  ( 3 ) OJ NO L 17 , 21 . 1 . 1978 , P . 27 .  ( 4 ) OJ NO L 19 , 24 . 1 . 1978 , P . 5 .  ( 5 ) OJ NO L 19 , 24 . 1 . 1978 , P . 7 .  ( 6 ) OJ NO L 19 , 24 . 1 . 1978 , P . 9 .    COMMISSION RECOMMENDATION NO 859/78/ECSC   OF 27 APRIL 1978   PROVIDING FOR THE SUSPENSION OF PROVISIONAL ANTI-DUMPING DUTIES ESTABLISHED IN RELATION TO IMPORTS OF STEEL PRODUCTS ORIGINATING IN CZECHOSLOVAKIA   THE COMMISSION OF THE EUROPEAN   COMMUNITIES ,   HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN COAL AND STEEL COMMUNITY , AND IN PARTICULAR ARTICLE 74 THEREOF ,   HAVING REGARD TO COMMISSION RECOMMENDATION 77/329/ECSC OF 15 APRIL 1977 ON PROTECTION AGAINST DUMPING OR THE GRANTING OF BOUNTIES OR SUBSIDIES BY COUNTRIES WHICH ARE NOT MEMBERS OF THE EUROPEAN COAL AND STEEL COMMUNITY ( 1 ), AS AMENDED BY RECOMMENDATION NO 3004/77/ECSC ( 2 ), AND IN PARTICULAR ARTICLES 15 AND 19 THEREOF ,   HAVING HEARD THE OPINIONS EXPRESSED WITHIN THE ADVISORY COMMITTEE PROVIDED FOR BY RECOMMENDATION 77/329/ECSC ,   WHEREAS THE COMMISSION HAS ESTABLISHED , BY RECOMMENDATIONS NO 112/78/ECSC ( 3 ), NO 119/78/ECSC ( 4 ), NO 120/78/ECSC ( 5 ) AND NO 121/78/ECSC ( 6 ), PROVISIONAL ANTI-DUMPING DUTIES IN RELATION TO IMPORTS OF STEEL PRODUCTS ORIGINATING IN CZECHOSLOVAKIA ;   WHEREAS SINCE THAT TIME CERTAIN ARRANGEMENTS HAVE BEEN MADE BETWEEN THE COMMUNITY AND CZECHOSLOVAKIA WITH RESPECT TO TRADE IN STEEL PRODUCTS ;   WHEREAS THESE ARRANGEMENTS , WHICH THE COMMISSION DEEMS REASONABLE , ALLOW THE FURTHER APPLICATION OF PROVISIONAL ANTI-DUMPING DUTIES TO BE SUSPENDED , WITHOUT PREJUDICE HOWEVER TO THE SUBSEQUENT DECISION OF THE COMMISSION WITH RESPECT TO THE TREATMENT TO BE ACCORDED TO THE AMOUNTS GUARANTEED BY WAY OF PROVISIONAL DUTY ,   HAS ADOPTED THIS RECOMMENDATION :   ARTICLE 1   THE APPLICATION OF PROVISIONAL ANTI-DUMPING DUTIES ESTABLISHED BY COMMISSION RECOMMENDATIONS NO 112/78/ECSC , NO 119/78/ECSC , NO 120/78/ECSC AND NO 121/78/ECSC , IN RELATION TO IMPORTS OF STEEL PRODUCTS ORIGINATING IN CZECHOSLOVAKIA , IS SUSPENDED FROM THE DATE OF THE ENTRY INTO FORCE OF THIS RECOMMENDATION .   THIS RECOMMENDATION DOES NOT PREJUDICE THE DECISION WHICH THE COMMISSION MAY TAKE SUBSEQUENTLY WITH RESPECT TO THE TREATMENT TO BE ACCORDED TO THE SUMS GUARANTEED UP TO THIS DATE BY WAY OF PROVISIONAL DUTIES .   NO OTHER ANTI-DUMPING DUTY OR OTHER SIMILAR MEASURES WILL BE APPLIED TO IMPORTS OF STEEL PRODUCTS FALLING UNDER THE ECSC TREATY AND ORIGINATING IN CZECHOSLOVAKIA UNLESS A COUNTER-RECOMMENDATION IS MADE BY THE COMMISSION .   ARTICLE 2   THIS RECOMMENDATION IS ADDRESSED TO THE MEMBER STATES . IT WILL ENTER INTO FORCE IN RESPECT OF EACH MEMBER STATE FROM THE DATE OF ITS PUBLICATION IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .   DONE AT BRUSSELS , 27 APRIL 1978 .   FOR THE COMMISSION   WILHELM HAFERKAMP   VICE-PRESIDENT