title: Council Recommendation of 8 July 2014 on the National Reform Programme 2014 of the United Kingdom and delivering a Council opinion on the Convergence Programme of the United Kingdom, 2014

text:
               29.7.2014

               EN

               Official Journal of the European Union

               C 247/136

         COUNCIL RECOMMENDATION
   of 8 July 2014
   on the National Reform Programme 2014 of the United Kingdom and delivering a Council opinion on the Convergence Programme of the United Kingdom, 2014
   2014/C 247/26
   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 9(2) thereof,
   Having regard to Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (2), and in particular Article 6(1) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the resolutions of the European Parliament,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Social Protection Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

               On 26 March 2010, the European Council agreed to the Commission's proposal to launch a new strategy for growth and jobs, 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, on the basis of the Commission's proposals, 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 (3), 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 9 July 2013, the Council adopted a Recommendation (4) on the United Kingdom's National Reform Programme for 2013 and delivered its opinion on the United Kingdom's updated Convergence Programme for 2012‐13 to 2017‐18.

               (5)

               On 13 November 2013, the Commission adopted the Annual Growth Survey, marking the start of the 2014 European Semester for economic policy coordination. Also, on 13 November 2013, the Commission, on the basis of Regulation (EU) No 1176/2011, adopted the Alert Mechanism Report, in which it identified the United Kingdom as one of the Member States for which an in‐depth review would be carried out.

               (6)

               On 20 December 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.

               (7)

               On 5 March 2014, the Commission published the results of its in‐depth review for the United Kingdom, under Article 5 of Regulation (EU) No 1176/2011. The Commission's analysis leads it to conclude that the United Kingdom continues to experience macroeconomic imbalances, which require monitoring and policy action. In particular, developments in the areas of household debt, linked to the high levels of mortgage debt and structural characteristics of the housing market, as well as unfavourable developments in export market shares, continue to warrant attention. The risks in the housing sector relate to a continuing structural undersupply of housing; intrinsic supply constraints, particularly in London, and the relatively slow response of supply to increases in demand continues to drive house prices higher, particularly in London and the southeast, and also leads to buyers taking on high mortgages. While the declining export market share is unlikely to pose short‐term risks, taken together with the current account deficit, it still points to structural challenges. These are related to skills gaps and infrastructure deficiencies. As regards public finances, the United Kingdom is not projected to comply with the deadline for correcting the excessive deficit set by the Council and the average annual fiscal effort falls short of the recommendation.

               (8)

               On 30 April 2014, the United Kingdom submitted its 2014 National Reform Programme and its 2014 Convergence Programme. In order to take account of their interlinkages, the two programmes have been assessed at the same time.

               (9)

               Pursuant to Article 4 of the Protocol (No 15) on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland, the obligation in Article 126(1) of the Treaty on the Functioning of the European Union to avoid excessive general government deficits does not apply to the United Kingdom. Article 5 of the Protocol provides that the United Kingdom is to endeavour to avoid an excessive government deficit. On 8 July 2008, the Council decided, in accordance with Article 104(6) of the Treaty establishing the European Community, that an excessive deficit exists in the United Kingdom.

               (10)

               The objective of the budgetary strategy outlined in the 2014 Convergence Programme is to balance the cyclically‐adjusted current budget by the end of a five‐year rolling period, currently ending in 2018‐19. The Convergence Programme does not include a medium‐term objective as foreseen by the Stability and Growth Pact. The general government deficit is estimated at 5,0 % of GDP in 2014‐15, having fallen from a peak of 11,4 % of GDP in 2009‐10. This does not comply with the deadline for correcting the excessive deficit set by the Council. According to the Convergence Programme, the excessive deficit will be corrected in 2016‐17 at 2,4 % of GDP, two years after the deadline set by the Council. The Convergence Programme implies that the (recalculated) general government structural deficit will improve by 0,3 percentage points to 4,4 % of GDP over the year to 2014‐15. The budgetary plans are not sufficient to attain the annual average fiscal effort recommended to correct the excessive deficit. Thereafter, the Convergence Programme foresees an annual improvement of the (recalculated) structural balance of 0,8 percentage points in 2015‐16 and 1,3 percentage points in 2016‐17. Overall, the Convergence Programme is only partly in line with the requirements of the Stability and Growth Pact.

               (11)

               The consolidation has until now been mainly delivered through expenditure cuts, therefore the potential revenue contribution from a broadening of the tax base could be considered. The United Kingdom has a high level of foregone taxes, particularly with regard to indirect taxation. According to the Convergence Programme, the debt‐to‐GDP ratio is projected to increase to 93,1 % in 2015‐16 before falling back to 86,6 % in 2018‐19. The United Kingdom's macroeconomic scenario underpinning the budgetary projections in the Convergence Programme is plausible. Potential risks to the budgetary projections stem from lower‐than‐expected growth due to constrained wages curtailing private consumption and uncertainty hindering investment. Nevertheless, the projections are consistent with the Commission services 2014 spring forecast, which also does not foresee that the excessive deficit will be corrected by the deadline set by the Council. Furthermore, based on the Commission forecast, the (corrected) change in the structural balance over 2010‐2014 falls short by on average 0,6 % of GDP per year compared to the recommendation and is projected to fall short in 2015 as well. Based on its assessment of the Convergence Programme and the Commission forecast, pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that additional measures are needed to ensure compliance with the recommendation under the excessive deficit procedure.

               (12)

               The United Kingdom has taken both demand and supply side measures in the area of housing. Although the supply of new properties has risen, it remains low and has fallen short of demand by a considerable margin. This has combined with low interest rates and easier terms for mortgage lending (such as higher loan‐to‐income multiples) to push up house prices in certain parts of the United Kingdom, particularly in London. A shortage of supply has long been a structural phenomenon and is likely to extend into the medium term. Action is needed to further boost the supply of houses by creating appropriate incentives to raise supply at the local level. The authorities should continue to monitor house prices and mortgage indebtedness and stand ready to deploy appropriate measures, including adjusting the Help to Buy 2 (loan guarantee) scheme, if deemed necessary. There is a need to increase the transparency of the use and impact of the macro‐prudential regulation of the housing sector by the Financial Policy Committee that could be deployed to address excessive house price rises and increases in mortgage indebtedness. Reforms to the taxation of land and property should be considered to alleviate distortions in the housing market.

               (13)

               The United Kingdom continues to address the challenges of unemployment and underemployment as well as the specific issues related to youth unemployment. There are important challenges with equipping young people with the skills and work experience required by the labour market and increasing the supply of apprenticeships. This helps to explain the fact that the take‐up of wage subsidies provided for by the Youth Contract remains lower than forecast. The labour market suffers from skill mismatches and the authorities are attempting to re‐skill the workforce to address both unemployment and a shortage of high‐quality vocational and technical skills. While there have been efforts to improve the quality of apprenticeship programmes, further efforts are needed. Moreover, the qualifications system remains complex and needs to be streamlined to facilitate universal recognition and a higher level of engagement by employers.

               (14)

               The authorities are addressing the problem of weak work incentives, especially for recipients of social benefits with the introduction of the Universal Credit, which will allow individuals to keep more of their benefit income as they move into work. Whilst Universal Credit could have a positive impact on employment much will depend on effective implementation and support services, including the interaction with other benefits. The focus on getting back into work has also been reflected in limiting the annual adjustment to many working‐age benefits and tax credits to 1 % per annum until 2016.

               (15)

               The United Kingdom continues to tackle challenges to increasing parental employment by increasing access to high‐quality, affordable childcare. It continues to introduce schemes to make childcare affordable for both part‐time and full‐time employed parents, taking into account different levels of earnings. Childcare costs, however, remain among the highest in the Union and continue to pose problems particularly for second earners and for single parents.

               (16)

               In terms of access to finance, while conditions in credit markets have improved in 2013, credit growth remains weak and existing policies need more time to show that they have been successful. Particular challenges regarding access to credit remain for SMEs. While large firms can finance themselves directly in wholesale markets and profit from the well‐developed financial services offer of the United Kingdom, SMEs largely rely on banks to obtain their external funding. Good progress has been made to address last year's recommendation on competition in banking by the creation of new banks, referred to as challenger banks (one such example is TSB, which, however, is not yet fully independent).

               (17)

               In December 2013, the United Kingdom published an updated national infrastructure plan: a long‐term and strategic approach to the planning, funding, finance and delivery of infrastructure. The plan sets out a ‘pipeline’ of forward‐looking capital investment to 2020 and beyond of GBP 375 billion in total (approximately EUR 460 billion). A large proportion of the ‘pipeline’ (GBP 340 billion, i.e. approximately EUR 420 billion) concerns investment in the energy and transport sectors. Around three‐quarters of the funding is projected to be privately‐sourced, while the rest is projected to be publicly funded. Although the plan is an appropriate initiative, there remain concerns about the private sector element of financing, regulatory certainty and timely planning permission. There is a need for stringent mechanisms to mitigate financing and execution risks while ensuring transparency on projected and actual expenditure on infrastructure.

               (18)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of the United Kingdom's economic policy. It has assessed the National Reform Programme and the Convergence Programme. It has taken into account not only their relevance for sustainable fiscal and socio‐economic policy in the United Kingdom 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.

               (19)

               In the light of this assessment, the Council has examined the United Kingdom's Convergence Programme, and its opinion (5) is reflected in particular in recommendation (1) below.

               (20)

               In the light of the Commission's in‐depth review and this assessment, the Council has examined the National Reform Programme and the Convergence Programme. Its recommendations under Article 6 of Regulation (EU) No 1176/2011 are reflected in recommendations (2), (3), (5) and (6) below,

         HEREBY RECOMMENDS that the United Kingdom take action within the period 2014‐2015 to:

               1.

               Reinforce the budgetary strategy, endeavouring to correct the excessive deficit in a sustainable manner in line with the Council recommendation under the Excessive Deficit Procedure. Pursue a differentiated, growth‐friendly approach to fiscal tightening by prioritising capital expenditure. To assist with fiscal consolidation, consideration should be given to raising revenues through broadening the tax base. Address structural bottlenecks related to infrastructure, skills mismatches and access to finance for SMEs to boost growth in the export of both goods and services.

               2.

               Increase the transparency of the use and impact of macro‐prudential regulation in respect of the housing sector by the Bank of England's Financial Policy Committee. Deploy appropriate measures to respond to the rapid increases in property prices in areas that account for a substantial share of economic growth in the United Kingdom, particularly London, and mitigate risks related to high mortgage indebtedness. Monitor the Help to Buy 2 scheme and adjust it if deemed necessary. Consider reforms to the taxation of land and property including measures on the revaluation of property to alleviate distortions in the housing market. Continue efforts to increase the supply of housing.

               3.

               Maintain commitment to the Youth Contract, especially by improving skills that meet employer needs. Ensure employer engagement by placing emphasis on addressing skills mismatches through more advanced and higher level skills provision and furthering apprenticeship offers. Reduce the number of young people with low basic skills.

               4.

               Continue efforts to reduce child poverty in low‐income households, by ensuring that the Universal Credit and other welfare reforms deliver adequate benefits with clear work incentives and support services. Improve the availability of affordable quality childcare.

               5.

               Continue efforts to improve the availability of bank and non‐bank financing to SMEs. Ensure the effective functioning of the Business Bank and support an increased presence of challenger banks.

               6.

               Follow up on the National Infrastructure Plan by increasing the predictability of the planning processes as well as providing clarity on funding commitments. Ensure transparency and accountability by providing consistent and timely information on the implementation of the Plan.

      Done at Brussels, 8 July 2014.

            For the Council

            The President

         P. C. PADOAN

      (1)  OJ L 209, 2.8.1997, p. 1.

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

      (3)  Maintained for 2014 by Council Decision 2014/322/EU of 6 May 2014 on guidelines for the employment policies of the Member States for 2014 (OJ L 165, 4.6.2014, p. 49).

      (4)  OJ C 217, 30.7.2013, p. 93.

      (5)  Under Article 9(2) of Regulation (EC) No 1466/97.


title: 2014/478/EU: Commission Recommendation of 14 July 2014 on principles for the protection of consumers and players of online gambling services and for the prevention of minors from gambling online  Text with EEA relevance

text:
               19.7.2014

               EN

               Official Journal of the European Union

               L 214/38

         COMMISSION RECOMMENDATION
   of 14 July 2014
   on principles for the protection of consumers and players of online gambling services and for the prevention of minors from gambling online
   (Text with EEA relevance)

      (2014/478/EU)

   THE EUROPEAN COMMISSION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Article 292 thereof,
   Whereas:

               (1)

               In 2011, the Commission held a public consultation on its ‘Green Paper on online gambling in the internal market’ (1). It identified common objectives of the Member States regarding the regulation of online gambling services and helped to identify the key priority areas for Union action.

               (2)

               In its Communication ‘Towards a comprehensive European Framework for online gambling’ adopted on 23 October 2012 (2), the Commission proposed a series of actions which seek to respond to the regulatory, societal and technical challenges of online gambling. In particular, the Commission announced that it would present Recommendations on the protection of consumers in the area of online gambling services, including the protection of minors, and on responsible commercial communication of online gambling services. This Recommendation is designed to combine both those subject matters and to improve the protection of consumers, players and to prevent minors from gambling online. This Recommendation aims to ensure that gambling remains a source of entertainment, consumers are provided a safe gambling environment and measures are in place to counter the risk of financial or social harm as well as to set out action needed to prevent minors from gambling online.

               (3)

               In its Resolution of 10 September 2013 on online gambling in the internal market, the European Parliament (3) called on the Commission to explore the possibility of interoperability between national self-exclusion registers, to raise awareness about the risks of gambling addiction and to consider compulsory third-party identification checks. It also called for online gambling operators to be obliged to provide on the gambling website information on regulatory authorities and warnings to minors and the use of self-restrictions. In addition, the European Parliament called for common principles for responsible commercial communications. It recommended that commercial communications should contain clear warnings as to the consequences of compulsive gambling and the risks of gambling addiction. Commercial communications should be neither excessive nor displayed on content specifically targeted at minors or where there is a higher risk of targeting minors.

               (4)

               The European Economic and Social Committee has also called on the Commission to intervene to improve consumer protection as regards online gambling, and to protect minors (4).

               (5)

               In the absence of harmonisation at Union level, Member States are in principle free to set the objectives of their policy on games of chance and to define the level of protection sought for the purpose of protecting the health of consumers. The Court of Justice of the European Union has provided general guidance on the interpretation of the fundamental freedoms of the internal market in the area of (online) gambling, taking into account the specific nature of gambling activities. While Member States may restrict or limit the cross-border supply of online gambling services on the basis of public interest objectives that they seek to protect, they are nonetheless to demonstrate the suitability and necessity of the measure in question. Member States have a duty to demonstrate that the public interest objectives are being pursued in a consistent and systematic manner (5).

               (6)

               The Court of Justice of the European Union has also established ground rules for commercial communications on gambling services and, in particular, for those provided under monopoly conditions. Advertising by the holder of a public monopoly is to be measured and strictly limited to what is necessary in order to channel consumers towards controlled gaming networks. Such advertising cannot aim to encourage consumers' natural propensity to gamble by stimulating their active participation in it, for example by trivialising gambling, or increasing the attractiveness of gambling by means of enticing advertising messages holding out the prospect of major winnings. In particular, a distinction should be drawn between strategies of the holder of a monopoly that are intended solely to inform potential customers of the existence of products and serve to ensure regular access to games of chance by channelling gamblers into controlled circuits, and those which invite and encourage active participation in such games (6).

               (7)

               Protection of consumers and health are the main public interest objectives of Member States in the context of their national gambling frameworks addressing the prevention of problem gambling and the protection of minors.

               (8)

               The rules and policies that Member States have introduced to pursue public interest objectives vary considerably. Action at Union level encourages Member States to provide a high level of protection throughout the Union, in particular in light of risks associated with gambling that include the development of a gambling disorder or to other negative personal and social consequences.

               (9)

               The aim of this Recommendation is to safeguard the health of consumers and players and thus also to minimise eventual economic harm that may result from compulsive or excessive gambling. To that end, it recommends principles for a high level of protection of consumers, players and minors as regards online gambling services. In preparing this Recommendation, the Commission has drawn from good practices in the Member States.

               (10)

               Online gambling services are widely offered and used. Online gambling is a service activity with annual EU revenues of EUR 10,54 billion in 2012. Technological developments, the increase of internet availability and the convenience of mobile technologies are driving the accessibility and growth of online gambling. However, misinformed choices can be made where information is not sufficiently clear or transparent. In addition, online players look for competing gambling opportunities whenever they perceive a lack of attractive offers.

               (11)

               A wide range of media contributing to exposure to commercial communications relating to gambling exists, for example print media, direct mail, audiovisual media and outdoor advertising, as well as sponsorship. This may result in vulnerable groups such as minors being attracted to gambling. At the same time, commercial communication of online gambling services can play an important role in directing consumers to an offer which has been allowed and is supervised, for example by showing the identity of the operator and by carrying correct information about gambling including the risks of problem gambling, as well as appropriate warning messages.

               (12)

               Some individuals who engage in gambling experience problems as a result of their behaviour to a degree which impacts on person or family, others are severely harmed for reasons of pathological gambling. It is estimated that between 0,1-0,8 % of the general adult population suffers from a gambling disorder and an additional 0,1-2,2 % demonstrate potentially problematic gambling involvement. (7) Therefore, a preventive approach is necessary for online gambling services to be offered and promoted in a manner that is socially responsible, in particular to ensure that gambling remains a source of recreational and leisure activity.

               (13)

               Minors are frequently exposed to gambling as they use the internet and mobile applications and media that display gambling advertising as well as outdoor gambling advertising. They also watch or attend sports competitions sponsored by gambling interests or carrying advertising focused on gambling activities. Therefore, this Recommendation is also intended to prevent minors from being harmed or exploited by gambling.

               (14)

               Online gambling operators established in the Union increasingly hold multiple licences across several Member States which have chosen license-based systems in relation to gambling regulation. They could benefit from a more common approach. Furthermore, the multiplication of compliance requirements can create unnecessary duplication of infrastructure and costs, resulting in an unnecessary administrative burden on regulators.

               (15)

               It is appropriate to invite Member States to put forward rules providing consumers with information about online gambling. Such rules should prevent the development of gambling related disorders and prevent minors from accessing gambling facilities and discourage consumers from availing of offers which are not allowed and therefore potentially harmful.

               (16)

               Where appropriate, the principles of this Recommendation should not only be addressed to operators but also to third parties, including so-called ‘affiliates’, who are allowed to promote online gambling services on behalf of the operator.

               (17)

               It is appropriate to better inform consumers and players about online gambling services which, consistently with Union law, are not allowed according to the law of the Member State where the online gambling service is received and also to act against such services. Within that framework, Member States that do not allow a specific online gambling service should not allow commercial communication for such a service.

               (18)

               The registration process to open a player account serves the purpose of verifying the identity of the person and enabling the tracking of player behaviour. It is essential that such registration be designed in such a way as to also prevent consumers from dropping out of the registration process and turning to gambling websites that are not regulated.

               (19)

               Whilst the registration process has been introduced differently across the Member States, at times with offline or manual steps in the verification process, Member States should ensure that the identification details can be effectively checked to facilitate the completion of the registration process.

               (20)

               It is important that player accounts only be made permanent once the identity details provided by the players are validated. Before the account becomes a permanent one, it is desirable that players be allowed to use temporary accounts. In light of their nature, temporary accounts should be for a fixed nominal value and players should not be able to withdraw deposits or winnings.

               (21)

               In order to protect players and their funds as well as ensure transparency there should be procedures in place to verify player accounts that have not been active for a determined period, and for closing or suspending a player account. Furthermore, where the person is found to be a minor the player account should be cancelled.

               (22)

               In respect of information alerts, where appropriate, the option of a timer should be visibly available to the player during a gambling session.

               (23)

               In respect of player support, in addition to the setting of deposit limits, players could be provided with additional protection measures, such as the possibility to set wager or loss limits.

               (24)

               In order to prevent the development of a gambling disorder, an operator should also be able, in the event of disconcerting changes in gambling behaviour, to direct the player to take time out or to exclude the player. The operator should, in such circumstances, communicate the reasons to the player, and guide the player to assistance or treatment.

               (25)

               Operators are significant sponsors of sports teams and events in Europe. In order to improve accountability of sponsorship by online gambling service providers, requirements should be clear that sponsorship is to be transparent and carried out in a responsible manner. In particular, clearer requirements should be set out to prevent sponsorship by gambling operators from adversely affecting or influencing minors.

               (26)

               It is also necessary to create awareness about the inherent risks of prevailing gambling websites, such as fraud, that are outside any form of control at the level of the Union.

               (27)

               Effective supervision is necessary for the appropriate protection of public interest objectives. Member States should designate competent authorities, lay down clear guidance for operators and provide easily accessible information for consumers, players and vulnerable groups including minors

               (28)

               Codes of conduct can play an important role in the effective application, and monitoring, of the principles on commercial communication of this Recommendation.

               (29)

               This Recommendation does not interfere with Directive 2005/29/EC of the European Parliament and of the Council (8) and Council Directive 93/13/EEC (9).

               (30)

               Application of the principles laid down in this Recommendation implies the processing of personal data. Directive 95/46/EC of the European Parliament and of the Council (10) and Directive 2002/58/EC of the European Parliament and of the Council (11) therefore apply,

         HAS ADOPTED THIS RECOMMENDATION:
   I.   PURPOSE

               1.

               Member States are recommended to achieve a high level of protection for consumers, players and minors through the adoption of principles for online gambling services and for responsible commercial communications of those services, in order to safeguard health and to also minimise the eventual economic harm that may result from compulsive or excessive gambling.

               2.

               This Recommendation does not interfere with the right of Member States to regulate gambling services.

         II.   DEFINITIONS

               3.

               For the purposes of this Recommendation the following definitions apply:

                           (a)

                           ‘online gambling service’ means any service which involves wagering a stake with monetary value in games of chance, including those with an element of skill, such as lotteries, casino games, poker games and betting transactions that are provided by any means at a distance, by electronic means or any other technology for facilitating communication, and at the individual request of a recipient of services;

                           (b)

                           ‘consumer’ means any natural person who is acting outside own trade, business, craft or profession;

                           (c)

                           ‘player’ means any natural person who holds a player account with the operator and participates in the online gambling service;

                           (d)

                           ‘player account’ means the account opened by the player in which all transactions with the operator are registered;

                           (e)

                           ‘minor’ means any person under the minimum age set, in accordance with the applicable national law, for participating in an online gambling service due to age;

                           (f)

                           ‘operator’ means any natural or any legal person allowed to provide an online gambling service and anyone acting in the name of or on behalf of such person;

                           (g)

                           ‘commercial communication’ means any form of communication designed to promote, directly or indirectly, the goods, services, or image of an operator;

                           (h)

                           ‘sponsorship’ means a contractual relationship between an operator and a sponsored party under which the operator provides financing or other support to any sporting or artistic event, organisation, team or individual in order to establish an association between the operator's image, brands or products and a sponsorship property, in return for commercial communications or other benefits.

         III.   INFORMATION REQUIREMENTS

               4.

               The following information should be displayed prominently on the landing page of the operator's gambling website and be accessible from all pages on the website:

                           (a)

                           the company details, or other means that ensures the operator is identifiable and can be contacted, including:

                                       (i)

                                       company name;

                                       (ii)

                                       place of registration;

                                       (iii)

                                       e-mail address;

                           (b)

                           a ‘no underage gambling’ sign, which shows the minimum age below which gambling is not permissible;

                           (c)

                           a ‘responsible gambling’ message, which no more than one click away provides:

                                       (i)

                                       information that gambling can be harmful if not controlled;

                                       (ii)

                                       information about the player support measures on the website;

                                       (iii)

                                       self-assessment tests for the players to check their gambling behaviour;

                           (d)

                           a link to at least one organisation providing information and assistance in respect of gambling disorders.

               5.

               The terms and conditions of the contractual relationship between the operator and the consumer should be provided in a concise and legible manner. They should:

                           (a)

                           contain information at least about timeframes and limits regarding withdrawals from the player account, any charges concerning the player account transactions and a link to the applicable payout percentages for every game;

                           (b)

                           be accepted and confirmed by the consumer during the registration process referred to in Section V;

                           (c)

                           be made available by electronic means in a way that allows the consumer to store and retrieve them, and any changes communicated to the consumer.

               6.

               Member States should ensure that information is available to the consumer about the rules concerning the games and bets available on the operator's gambling website.

               7.

               Member States should ensure that the operator's gambling website displays the details of the gambling regulatory authority to show that the operator is authorised.

         IV.   MINORS

               8.

               No minor should be able to play on a gambling website or hold a player account.

               9.

               Member States should ensure that the operator has procedures in place designed to prevent minors from gambling, including age verification checks during the registration procedure referred to in Section V.

               10.

               To prevent minors from having access to gambling websites, Member States should encourage the display of links to parental control programmes on gambling websites.

               11.

               Member States should ensure that commercial communications for online gambling services do not harm minors or induce them to view gambling as a natural element of their leisure time activities.

               12.

               Commercial communications should carry a clear ‘no underage gambling’ message indicating the minimum age below which gambling is not permissible.

               13.

               Member States should encourage that commercial communications are not broadcast, displayed or facilitated:

                           (a)

                           in media, or around programmes, where minors are expected to be the main audience;

                           (b)

                           on websites with minors as the audience profile;

                           (c)

                           in close proximity of places where minors normally spend time and are expected to be the main audience including at least schools.

               14.

               Commercial communications should not:

                           (a)

                           exploit the inexperience or lack of knowledge of minors;

                           (b)

                           use images of minors or young persons or campaigns that particularly appeal to minors;

                           (c)

                           appeal to minors, or to young persons by reflecting or associating gambling with youth culture activities;

                           (d)

                           suggest that to gamble marks the transition from adolescence to adulthood.

         V.   PLAYER REGISTRATION AND ACCOUNT

               15.

               Member States should ensure that a person is only permitted to participate in an online gambling service when registered as a player and holding an account with the operator.

               16.

               The following information should be required in the registration process in order to open a player account:

                           (a)

                           name;

                           (b)

                           address;

                           (c)

                           date of birth;

                           (d)

                           electronic mail address or mobile telephone number.

               17.

               The electronic mail address or mobile telephone number provided should be validated by the player or verified by the operator. These should allow contact and communication between the operator and player in a direct and effective manner.

               18.

               The identity details of the player should be verified. Where direct electronic verification is not possible or in place, Member States are encouraged to facilitate access to national registers, databases or other official documents against which operators should verify the identity details.

               19.

               Member States should ensure that whenever the identity or the age of the person cannot be successfully verified, the registration process to open a player account, including the temporary account, should be cancelled.

               20.

               Member States are encouraged to adopt electronic identification systems in the registration process.

               21.

               Member States should ensure that:

                           (a)

                           the registration process enables identity verification to be completed in a reasonable period and is not unnecessarily burdensome for consumers or for operators;

                           (b)

                           the registration systems allow for alternative means to verify identification, in particular when the consumer does not have a national identification number of that Member State where this is required, or in the event of temporary unavailability of databases.

               22.

               Member States should ensure that players have:

                           (a)

                           access to a temporary account with the operator with whom the account is held until the identity verification is successfully completed;

                           (b)

                           a unique identification username and a password or other access security feature with the operator with whom the account is held.

               23.

               Member States should have rules in place:

                           (a)

                           to ensure that the players' funds are protected and can only be paid out to the player, and are kept separate from the operator's own funds;

                           (b)

                           to avoid collusion by players and money transfers between them including rules regarding annulment of transfers or recovery of funds from player accounts where collusion or fraud is detected.

         VI.   PLAYER ACTIVITY AND SUPPORT

               24.

               Member States should ensure that at the registration stage on the operator's gambling website a player can by default set monetary deposit limits, as well as temporal limits.

               25.

               Member States should ensure that a player can at all times easily access the following on the operator's gambling website:

                           (a)

                           the balance on the player's account;

                           (b)

                           the player support function concerning responsible gambling via online forms or personal contact including at least live chat or telephone;

                           (c)

                           helplines to information and assistance organisations as referred to in point 4(d).

               26.

               Member States should ensure that on an operator's website, a player can receive by default information alerts at regular intervals about winnings and losses during a game or bet and how long the player has been playing. The player should confirm the information alert and be able to suspend or to continue gambling.

               27.

               Member States should ensure that on the operator's gambling website a player cannot:

                           (a)

                           make deposits beyond the monetary deposit limit for the specified time period;

                           (b)

                           participate in gambling unless the player account has the necessary funds to cover the game or bet.

               28.

               Member States should not allow for credit to be provided to the player by the operator.

               29.

               Member States should ensure that on the operator's website a player can:

                           (a)

                           reduce the deposit limit, with immediate effect;

                           (b)

                           increase the deposit limit. The request should only come into effect at least twenty-four hours after the player's request;

                           (c)

                           take time out and self-exclude.

               30.

               Member States should ensure that the operator has policies and procedures in place which facilitate interaction with players whenever their gambling behaviour indicates a risk of the development of a gambling disorder.

               31.

               Member States should ensure that the operator keeps a record at least of the deposits and winnings by the player for a determined period of time. These should be made available to the player upon request.

         VII.   TIME OUT AND SELF EXCLUSION

               32.

               Member States should ensure that the player can at any time on the operator's website activate time out or self-exclusion from a specific online gambling service, or from all types of online gambling services.

               33.

               Member States should provide that:

                           (a)

                           time out serves to suspend gambling for at least twenty four hours;

                           (b)

                           self-exclusion with an operator is possible for not less than six months.

               34.

               Member States should ensure that in the case of self-exclusion the player account is closed.

               35.

               Member States should ensure that the re-registration of a player is only possible upon request by the player, in written or electronic form, and in any event only after the self-exclusion period has elapsed.

               36.

               Member States should have rules regarding requests by interested third parties to an operator for player exclusion from a gambling website.

               37.

               Member States are encouraged to establish a national registry of self-excluded players.

               38.

               Where established, Member States should facilitate the access of operators to national registries of self-excluded players and ensure that operators regularly consult these registries so as to prevent self-excluded players from continuing to gamble.

         VIII.   COMMERCIAL COMMUNICATION

               39.

               Member States should ensure that the operator on whose behalf the commercial communication is made is clearly identifiable.

               40.

               Where appropriate, Member States should ensure that commercial communications of online gambling services carry messages including at least the risks for health of problem gambling, in a practical and transparent manner.

               41.

               Commercial communications should not:

                           (a)

                           make unfounded statements about chances of winning or the return that players can expect from gambling;

                           (b)

                           suggest that skill can influence the outcome of a game, when this is not the case;

                           (c)

                           exert pressure to gamble or disparage abstention through timing, location or nature of the commercial communication;

                           (d)

                           portray gambling as socially attractive or contain endorsements by well-known personalities or celebrities that suggest gambling contributes to social success;

                           (e)

                           suggest that gambling can be a resolution to social, professional or personal problems;

                           (f)

                           suggest that gambling can be an alternative to employment, a solution to financial concerns or a form of financial investment.

               42.

               Member States should ensure that play-for-fun games used in commercial communications are subject to the same rules and technical conditions as the corresponding play-for-money games.

               43.

               Commercial communications should not target vulnerable players in particular by making use of unsolicited commercial communications addressed to players who have self-excluded from gambling or have been excluded from receiving online gambling services on reasons of problem gambling.

               44.

               Member States that permit unsolicited commercial communication by electronic mail should ensure:

                           (a)

                           that such commercial communication is identifiable clearly and unambiguously;

                           (b)

                           that the operator respects the opt-out registers in which natural persons not wishing to receive such commercial communications can register.

               45.

               Member States should ensure that commercial communications take into account the risk potential of the online gambling service promoted.

         IX.   SPONSORSHIP

               46.

               Member States should ensure that sponsorship by operators is transparent and that the operator is clearly identifiable as the sponsoring party.

               47.

               Sponsorship should not adversely affect or influence minors. Member States are encouraged to ensure that:

                           (a)

                           no sponsorship is allowed of events designated for or mainly aimed at minors;

                           (b)

                           promotional material of the sponsoring party is not used in merchandising designed for or mainly aimed at minors.

               48.

               Member States should encourage sponsored parties to verify if the sponsorship is authorised, in accordance with national law, in the Member State where the sponsorship should take effect.

         X.   EDUCATION AND AWARENESS

               49.

               Member States, where appropriate with consumer organisations and with operators, are invited to organise or promote regular education and public awareness-raising campaigns to raise awareness of consumers and vulnerable groups including minors about online gambling.

               50.

               Member States should ensure that operators and the gambling regulatory authority are required to inform their respective employees working with gambling related activities about the risks associated with online gambling. Employees interacting directly with players should be trained to ensure they understand problem gambling issues and know how to respond to them.

         XI.   SUPERVISION

               51.

               Member States are invited to designate competent gambling regulatory authorities when applying the principles laid down in this Recommendation to ensure and monitor in an independent manner effective compliance with national measures taken in support of the principles set out in this Recommendation.

         XII.   REPORTING

               52.

               Member States are invited to notify the Commission of any measures taken pursuant to this Recommendation by 19 January 2016 in order for the Commission to be able to evaluate the implementation of this Recommendation.

               53.

               Member States are invited to collect reliable annual data for statistical purposes on:

                           (a)

                           the applicable protection measures in particular the number of player accounts (opened and closed), the number of self-excluded players, those experiencing a gambling disorder and complaints by players;

                           (b)

                           commercial communication by category and by type of breaches of the principles;

                     Member States are invited to communicate this information to the Commission, for the first time by 19 July 2016.

               54.

               The Commission should evaluate the implementation of the Recommendation by 19 January 2017.

      Done at Brussels, 14 July 2014.

            For the Commission

         Michel BARNIER

            Vice-President

      (1)  COM (2011) 128 final.

      (2)  COM (2012) 596 final.

      (3)  P7_TA(2013)0348.

      (4)  2012/2322(INI).

      (5)  Cases C-186/11 and C-209/11 Stanleybet International, C-316/07 Stoss & Others and case-law cited.

      (6)  Case C-347/09 Dickinger and Omer and case-law cited.

      (7)  ALICE-RAP policy paper series: ‘Gambling: two sides of the same coin — recreational activity and public health problem’. ALICE RAP is a research project funded under the 7th Framework Programme for research and development (www.alicerap.eu).

      (8)  Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council (‘Unfair Commercial Practices Directive’) (OJ L 149, 11.6.2005, p. 22).

      (9)  Council Directive 93/13/EEC of 5 April 1993 on unfair terms in Consumer contracts (OJ L 95, 21.4.1993, p. 29).

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

      (11)  Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector (OJ L 201, 31.7.2002, p. 37).


title: Council Recommendation of 18 February 2014 concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (tenth EDF) for the financial year 2012

text:
               29.8.2014

               EN

               Official Journal of the European Union

               C 289/4

         COUNCIL RECOMMENDATION
   of 18 February 2014
   concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (tenth EDF) for the financial year 2012
   2014/C 289/03
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union,
   Having regard to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000 (1) and amended by the Agreement signed in Luxembourg on 25 June 2005 (2),
   Having regard to the Internal Agreement between the Representatives of the Governments of the Member States, meeting within the Council, on the financing of Community aid under the multiannual financial framework for the period 2008 to 2013 in accordance with the ACP-EC Partnership Agreement and on the allocation of financial assistance for the Overseas Countries and Territories to which Part Four of the EC Treaty applies (3) (the ‘Internal Agreement’) setting up, amongst others, the tenth European Development Fund (tenth EDF), and in particular Article 11(8) thereof,
   Having regard to Council Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable to the 10th European Development Fund (4), and in particular Articles 142 to 144 thereof,
   Having examined the revenue and expenditure account and the balance sheet relating to the operations of the tenth EDF as at 31 December 2012 and the Annual Report of the Court of Auditors on the activities funded by the 8th, 9th and 10th European Development Funds (EDFs) (5), concerning the financial year 2012, together with the Commission’s replies contained in that Annual Report,
   Whereas:

               (1)

               Pursuant to Article 11(8) of the Internal Agreement, the discharge for the financial management of the tenth EDF is to be given to the Commission by the European Parliament on the recommendation of the Council.

               (2)

               The overall implementation by the Commission of the operations of the tenth EDF during the financial year 2012 has been satisfactory,

         HEREBY RECOMMENDS that the European Parliament give the Commission a discharge in respect of the implementation of the operations of the tenth EDF for the financial year 2012.

      Done at Brussels, 18 February 2014.

            For the Council

            The President

         G. STOURNARAS

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

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

      (3)  OJ L 247, 9.9.2006, p. 32.

      (4)  OJ L 78, 19.3.2008, p. 1.

      (5)  OJ C 331, 14.11.2013, p. 261.


65/76/EEC: Commission Recommendation of 12 January 1965 to Member States on certificates concerning the pursuit of a profession in the country of origin, provided for in Article 4, paragraph 2 of Council Directive 64/427/EEC of 7 July 1964 relating to the transitional measures in the area of self-employed processing activities in groups 23-40 of ISIC (crafts and industries)


Avis juridique important

|

31985H0249

85/249/EEC: Council recommendation of 22 April 1985 concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (1979) (Fifth EDF) for the financial year 1983

Official Journal L 112 , 25/04/1985 P. 0055 - 0055

*****COUNCIL  RECOMMENDATION  of 22 April 1985  concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (1979) (Fifth EDF) for the financial year 1983  (85/249/EEC)  THE COUNCIL OF THE EUROPEAN  COMMUNITIES,  Having regard to the Treaty establishing the European Economic Community, and in particular Article 206b thereof,  Having regard to the Second ACP-EEC Convention, signed at Lomé on 31 October 1979,  Having regard to Council Decision 80/1186/EEC of 16 December 1980 on the association of the overseas countries and territories with the European Economic Community (1),  Having regard to the 1979 Internal Agreement on the financing and administration of Community aid (2), signed on 20 November 1979, and in particular Article 29 (3) thereof,  Having regard to the Financial Regulation of 17 March 1981 applicable to the Fifth European Development Fund (3), and in particular Articles 66 to 70 thereof,  Having examined the revenue and expenditure account and the balance sheet relating to the operations of the European Development (1979) (Fifth EDF) as at 31 December 1983 and the Court of Auditors' report relating to the financial year 1983 together with the Commission's replies (4),  Whereas, pursuant to Article 29 (3) of the Internal Agreement, the discharge for the management of the European Development Fund (1979) (Fifth EDF) must be given to the Commission by the European Parliament on a recommendation from the Council;  Whereas the overall implementation by the Commission of the operations of the European Development Fund (1979) (Fifth EDF) during the financial year 1983 has been satisfactory.  RECOMMENDS:  that the European Parliament give the Commission a discharge in respect of the implementation of the operations of the European Development Fund (1979) (Fifth EDF) of the financial year 1983.  Done at Brussels, 22 April 1985.  For the Council  The President  F. M. PANDOLFI  (1) OJ No L 361, 31. 12. 1980, p. 1.  (2) OJ No L 347, 22. 12. 1980, p. 210.  (3) OJ No L 101, 11. 4. 1981, p. 12.  (4) OJ No C 348, 31. 12. 1984, p. 121, 240.


title: Recommendation for a Council opinion in accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 on the updated convergence programme of Lithuania, 2006-2009

text:
Important legal notice

|

52007SC0190

Recommendation for a Council opinion in accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Lithuania, 2006-2009  /* SEC/2007/0190 final */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 13.2.2007SEC(2007) 190 finalRecommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Lithuania, 2006-2009(presented by the Commission)EXPLANATORY MEMORANDUM1. GENERAL BACKGROUNDThe Stability and Growth Pact, which entered into force on 1 July 1998, is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth conducive to employment creation. The 2005 reform of the Pact acknowledged its usefulness in anchoring fiscal discipline but sought to strengthen its effectiveness and economic underpinnings as well as to safeguard the sustainability of the public finances in the long run.Council Regulation (EC) No 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies[1], which is part of the Stability and Growth Pact, stipulates that Member States have to submit, to the Council and the Commission, stability or convergence programmes and annual updates thereof (Member States that have already adopted the single currency submit (updated) stability programmes and Member States that have not yet adopted it submit (updated) convergence programmes). The first convergence programme of Lithuania was submitted in May 2004. In accordance with the Regulation, the Council delivered an opinion on it on 5 July 2004 on the basis of a recommendation from the Commission and after having consulted the Economic and Financial Committee. In accordance with the same procedure, updated stability and convergence programmes are assessed by the Commission and examined by the Committee mentioned above, while the Council may examine them.2. BACKGROUND FOR THE ASSESSMENT OF THE UPDATED PROGRAMMEThe Commission has examined the most recent update of the convergence programme of Lithuania, submitted on 13 December 2006, and has adopted a recommendation for a Council opinion on it (see box for the main points covered by the assessment).In order to set the scene against which the budgetary strategy in the updated convergence programme is assessed, the following paragraphs summarise:1.  the economic and budgetary performance over the last ten years2.  the most recent assessment of the country’s position under the preventive arm of the Stability and Growth Pact (summary of the Council opinion on the previous update of the convergence programme) and3.  the Commission’s assessment of the October 2006 national reform programme.2.1. Recent economic and budgetary performanceLithuania has successfully completed the transition to a functioning market economy and now enjoys one of the highest output growth rates among the EU Member States. GDP per capita was just above 50% of the EU average in 2005. Domestic demand has accelerated rapidly in the last years partly reflecting buoyant credit growth, becoming the main driver of economic growth and leading to higher external deficits. After a period of non-inflationary growth, inflation picked up since mid-2004 reflecting a combination of factors including increases in unprocessed food and energy prices and significant wage increases against the background of a tightening labour market. The government has shown a good track record in meeting its fiscal targets in the last years, while better advantage could have been taken from the good times enjoyed by Lithuania.2.2. The assessment in the Council opinion on the previous programmeOn 14 March 2006, the Council adopted its opinion on the previous update of the convergence programme, covering the period 2005-2008. “In the context of strong growth prospects and to ensure sustainable convergence with the EU”, the Council invited Lithuania "(i) to strengthen the effort in the structural budgetary adjustment in order to speed up the attainment of the MTO, and (ii) in particular, aim for a more demanding general government deficit target in 2006, making sure that a better-than-projected deficit outcome in 2005 is carried over to 2006 and subsequent years".2.3. The Commission assessment of the October 2006 national reform programmeThe implementation report of the national reform programme of Lithuania, provided in the context of the renewed Lisbon strategy for growth and jobs, was submitted on 13 October 2006. Lithuania's national reform programme identifies as key challenges/priorities: to sustain fast economic growth and a stable macroeconomic environment; to promote the competitiveness of Lithuanian companies; and to promote employment and investment in human capital.The Commission’s assessment of this programme (adopted as part of its December 2006 Annual Progress Report[2]) showed that Lithuania is making good progress in the implementation of the National Reform Programme, in most of the main policy areas across the macro, micro and employment sectors. However, with many important measures at the conceptual stage, there remains much to do in terms of implementation .Against the background of strengths and weaknesses identified, Lithuania was recommended to take action in the areas of R&D and supply of skilled labour.Box: Main points covered by the assessment As required by Article 5(1) (for stability programmes) Article 9(1) (for convergence programmes) of Council Regulation (EC) No 1466/97, the assessment covers the following points: whether the economic assumptions on which the programme is based are plausible; the medium-term budgetary objective (MTO) presented by the Member State and whether the adjustment path towards it is appropriate; whether measures being taken and/or proposed to respect that adjustment path are sufficient to achieve the MTO over the cycle; when assessing the adjustment path towards the MTO, whether a higher adjustment effort is made in economic good times, whereas the effort may be more limited in economic bad times, and, for euro-area and ERM II Member States, whether the Member State pursues an annual improvement of the cyclically-adjusted balance, net of one-off and other temporary measures, of 0.5% of GDP as a benchmark to meet its MTO; when defining the adjustment path to the MTO (for Member States that have not yet reached it) or allowing a temporary deviation from the MTO (for Member States that have), the implementation of major structural reforms which have direct long-term cost-saving effects (including by raising potential growth) and therefore a verifiable impact on the long-term sustainability of public finances (subject to the condition that an appropriate safety margin with respect to the 3% of GDP reference value is preserved and that the budgetary position is expected to return to the MTO within the programme period), with special attention for pension reforms introducing a multi-pillar system that includes a mandatory, fully-funded pillar; whether the economic policies of the Member State are consistent with the broad economic policy guidelines. The plausibility of the programme’s macroeconomic assumptions is assessed by reference to the Commission services’ autumn 2006 forecast, using also the commonly agreed methodology for the estimation of potential output and cyclically-adjusted balances. The assessment of consistency with the broad economic policy guidelines is made against the broad economic policy guidelines in the area of public finances as included in the integrated guidelines for the period 2005-2008. The assessment also examines: the evolution of the debt ratio and the outlook for the long-term sustainability of the public finances, which should be given “sufficient attention in the surveillance of budgetary positions” according to the Council report of 20 March 2005 on “Improving the implementation of the Stability and Growth Pact”. A Commission Communication of 12 October 2006 sets out the approach to the assessment of long-term sustainability[3]; the degree of integration with the national reform programme, submitted by Member States in the context of the Lisbon strategy for growth and jobs. In its cover note of 7 June 2005 to the European Council on the broad economic policy guidelines for the period 2005-2008, the ECOFIN Council stated that the national reform programmes should be consistent with the stability and convergence programmes; compliance with the code of conduct[4], which inter alia prescribes a common structure and set of data tables for the stability and convergence programmes. |-  Recommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Lithuania, 2006-2009THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community,Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies[5], and in particular Article 9(3) thereof,Having regard to the recommendation of the Commission,After consulting the Economic and Financial Committee,HAS DELIVERED THIS OPINION:4.  On [27 February 2007] the Council examined the updated convergence programme of Lithuania, which covers the period 2006 to 2009. The update was submitted almost two weeks beyond the 1 December deadline set in the code of conduct in view of a change in the approval procedure for the programme which now involves the Parliament.5.  The macroeconomic scenario underlying the programme envisages that real GDP growth will decelerate progressively from 7.8% in 2006 to 4.5% in 2009. Assessed against currently available information, this scenario appears to be based on cautious growth assumptions from 2007. The programme’s projections for inflation appear to be on the low side in the light of recent developments.6.  For 2006, the general government deficit is estimated at 1% of GDP in the Commission services' autumn 2006 forecast against a target of 1.4% of GDP set in the previous update of the convergence programme. The updated programme presents a deficit estimated at 1.2%. However, preliminary data for the whole of 2006 point to an even better deficit outcome close to balance. This is due to much higher-than-foreseen economic activity and employment, faster wage growth and improvements in tax collection and was achieved in spite of a budget amendment in July 2006 which increased expenditures by around 0.5% of GDP.7.  The main goal of the programme is to gradually reduce the general government deficit throughout the programme period so as to achieve the medium-term objective (MTO, see below) by 2008 and a balanced budget in 2009. The primary deficit is expected to be in balance by 2007 and to record a surplus of 0.8% of GDP at the end of the programme period. Compared with the previous update, the planned adjustment is more ambitious, but backloaded against a less favourable macroeconomic scenario towards the end of the programme period. The envisaged fiscal consolidation relies on an increase in the revenue-to-GDP ratio that is higher than the increase in the expenditure-to-GDP ratio (2.6 percentage points compared to 1.4 percentage point). On the revenue side, only 0.5 percentage point is explained by an increase in the tax ratio, which is mainly due to an expected improvement in tax collection. The rest of the increase is not specified in the programme, but seems to be linked to the inflow of EU funds. On the expenditure side, the changes stem from a rise in public investment, social transfers and "other" primary expenditures, which is less than fully offset by a significant cut in government consumption as a percentage of GDP (by more than 2 percentage points).8.  The structural balance (i.e. the cyclically-adjusted balance net of one-off and other temporary measures) calculated according to the commonly agreed methodology is planned to gradually improve from a deficit of 1¾% of GDP in 2006 to a surplus of ½% of GDP in 2009. As in the previous update of the convergence programme, the medium-term objective (MTO) for the budgetary position presented in the programme is a structural deficit of 1% of GDP, which the programme aims to achieve by 2008. As the MTO is more demanding than the minimum benchmark (estimated at a deficit of around 2% of GDP), achieving it should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. The MTO lies within the range indicated for euro-area and ERM II Member States in the Stability and Growth Pact and the code of conduct and adequately reflects the debt ratio and average potential output growth in the long term.9.  The risks to the budgetary projections in the programme appear broadly balanced until 2007, but budgetary outcomes could be worse than projected in the programme from 2008 onwards. The budgetary strategy relies on a significant increase in the revenues-to-GDP ratio and the substantial cut in public consumption-to-GDP ratio, which could have been better substantiated, taking into account the medium-term framework for the planning and control of public finances which is not sufficiently binding. While the likely carry-over from a lower-than-estimated deficit outcome in 2006 implies that the target for 2007 could be achieved, the lack of detailed information on the envisaged measures introduces considerable uncertainty for the achievement of the budgetary targets from 2008 onwards.10.  In view of this risk assessment, the budgetary stance in the programme may not be sufficient to ensure that the MTO is achieved by 2008, as envisaged in the programme. However, it seems to provide a sufficient safety margin against breaching the 3% of GDP deficit threshold with normal macroeconomic fluctuations throughout the programme period. According to the programme, the pace of the adjustment towards the MTO is in line with the Stability and Growth Pact which specifies that the adjustment should be higher in good economic times and could be lower in bad economic times. Nevertheless, in view of the risks identified above, the planned structural adjustment should be strengthened by backing it up with measures so that the annual improvement in the structural balance is 0.5% of GDP as a benchmark, as required for euro-area and ERM II Member States.11.  Government gross debt is estimated to have reached 18½% of GDP in 2006, well below the 60% of GDP Treaty reference value. The programme projects the debt ratio to remain at around 19% of GDP in 2007-2008 before decreasing to 17¾% in 2009.12.  The long-term budgetary impact of ageing in Lithuania is lower than the EU average, with a limited increase in pension expenditure over the coming decades, influenced by the pension reforms enacted. The current level of gross debt is very low in Lithuania and improving the budgetary position as planned in the convergence programme update would contribute to containing the risks to the long-term sustainability of public finances. Overall, Lithuania appears to be at low risk with regard to the sustainability of public finances.13.  The convergence programme does not contain a qualitative assessment of the overall impact of the October 2006 implementation report of the national reform programme within the medium-term fiscal strategy. However, it provides systematic information on the direct budgetary costs of the main reforms envisaged in the national reform programme and its budgetary projections seem to take into account the public finance implications of the actions outlined in the national reform programme. The measures in the area of public finances envisaged in the convergence programme seem consistent with those foreseen in the national reform programme. In particular, both programmes highlight the ongoing pensions, health care and tax reforms. Nevertheless, the general government deficit targets presented in the convergence programme are significantly lower than those presented in the national reform programme.14.  The budgetary strategy in the programme is broadly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008.15.  As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme provides all required and most of the optional data[6] .The overall conclusion is that, in a context of strong growth prospects, the programme envisages progress towards the MTO, which is targeted to be reached by 2008. However, there are risks to the achievement of the budgetary targets from 2008 onwards.In view of the above assessment, Lithuania is invited to(i) exploit the good times by aiming for a more demanding deficit target in 2007 in view of the likely better deficit outcome in 2006 and back-up the pace of adjustment towards the MTO with measures which would ensure that the annual improvement in the structural balance is 0.5% of GDP as a benchmark, as required for euro-area and ERM II Member States;(ii) improve the medium-term framework for the planning and control of public finances.Comparison of key macroeconomic and budgetary projections2005 | 2006 | 2007 | 2008 | 2009 |Real GDP (% change) | CP Dec 2006 | 7.6 | 7.8 | 6.3 | 5.3 | 4.5 |COM Nov 2006 | 7.6 | 7.8 | 7.0 | 6.5 | n.a. |CP Dec 2005 | 7.0 | 6.0 | 5.3 | 6.8 | n.a. |HICP inflation (%) | CP Dec 2006 | 2.7 | 3.9 | 4.7 | 3.4 | 3.1 |COM Nov 2006 | 2.7 | 3.8 | 4.6 | 3.3 | n.a. |CP Dec 2005 | 2.7 | 2.7 | 2.7 | 2.5 | n.a. |Output gap (% of potential GDP) | CP Dec 20061 | 1.9 | 2.4 | 1.6 | 0.1 | -1.9 |COM Nov 20065 | 1.2 | 1.4 | 0.7 | -0.6 | n.a. |CP Dec 20051 | 2.9 | 2.1 | 0.5 | 0.6 | n.a. |General government balance (% of GDP) | CP Dec 2006 | -0.5 | -1.2 | -0.9 | -0.5 | 0.0 |COM Nov 2006 | -0.5 | -1.0 | -1.2 | -1.3 | n.a. |CP Dec 2005 | -1.5 | -1.4 | -1.3 | -1.0 | n.a. |Primary balance (% of GDP) | CP Dec 2006 | 0.3 | -0.4 | 0.0 | 0.4 | 0.8 |COM Nov 2006 | 0.3 | -0.2 | -0.4 | -0.5 | n.a. |CP Dec 2005 | -0.9 | -0.8 | -0.7 | -0.4 | n.a. |Cyclically-adjusted balance (% of GDP) | CP Dec 20061 | -1.0 | -1.8 | -1.3 | -0.5 | 0.5 |COM Nov 2006 | -0.8 | -1.4 | -1.4 | -1.2 | n.a. |CP Dec 20051 | -2.3 | -2.0 | -1.4 | -1.2 | n.a. |Structural balance2 (% of GDP) | CP Dec 20063 | -1.0 | -1.8 | -1.3 | -0.5 | 0.5 |COM Nov 20064 | -0.8 | -1.4 | -1.4 | -1.2 | n.a. |CP Dec 2005 | -2.3 | -2.0 | -1.4 | -1.2 | n.a. |Government gross debt (% of GDP) | CP Dec 2006 | 18.7 | 18.4 | 19.2 | 19.0 | 17.7 |COM Nov 2006 | 18.7 | 18.9 | 19.6 | 19.8 | n.a. |CP Dec 2005 | 19.2 | 19.9 | 19.8 | 18.9 | n.a. |Notes: 1 Commission services calculations on the basis of the information in the programme. 2 Cyclically-adjusted balance (as in the previous rows) excluding one-off and other temporary measures. 3 There are no one-off and other temporary and other temporary measures in the programme.. 4 There are no one-off and other temporary measures taken from the Commission services’ autumn 2006 forecast. 5 Based on estimated potential growth of 7.9%, 7.7%, 7.8% and 7.9% respectively in the period 2005-2008. Source: Convergence programme,; Commission services’ autumn 2006 economic forecasts (COM); Commission services’ calculations. |[1] OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). All the documents referred to in this text can be found at the following website:http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm[2] Communication from the Commission to the Spring European Council, “Implementing the renewed Lisbon strategy for growth and jobs - A year of delivery” - COM(2006) 816, 12.12.2006.[3] Communication from the Commission to the Council and the European Parliament, “The long-term sustainability of public finances in the EU” - COM(2006) 574, 12.10.2006 - and European Commission, Directorate-General for Economic and Financial Affairs (2006), “The long-term sustainability of public finances in the European Union”, European Economy No 4/2006.[4] “Specifications on the implementation of the Stability and Growth Pact and guidelines on the format and content of stability and convergence programmes”, endorsed by the ECOFIN Council of 11 October 2005.[5] OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm[6] In particular the data on the subcomponents of the stock-flow adjustment and the contributions to potential GDP growth by labour, capital and TFP are missing.


Avis juridique important

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51999HB0001

European Central Bank recommendation for a Council Regulation (EC) concerning further calls of foreign reserve assets by the European Central Bank (ECB/1999/1)

Official Journal C 269 , 23/09/1999 P. 0009 - 0011

European Central Bank recommendation for a Council Regulation (EC) concerning further calls of foreign reserve assets by the European Central Bank(ECB/1999/1)(1999/C 269/08)EXPLANATORY MEMORANDUMI. INTRODUCTIONArticle 123(1) of the Treaty establishing the European Community (hereinafter referred to as the Treaty) requires the Council of the European Union (the EU Council), immediately after 1 July 1998, to adopt the complementary legislation referred to in Article 107(6) of the Treaty and Article 42(1) of the Statute of the European System of Central Banks and of the European Central Bank (hereinafter referred to as the Statute). A special procedure is foreseen within the Treaty for the adoption of the provisions referred to in Article 107(6): the EU Council shall adopt them either on a proposal from the Commission or on a recommendation from the European Central Bank (ECB). To avoid any duplication of effort, the ECB and the Commission have agreed that the ECB will prepare a recommendation for the Council Regulation referred to in Article 30(4) of the Statute.II. GENERAL CONSIDERATIONSArticle 30(4)(2) of the Statute stipulates that further calls of foreign reserve assets beyond the limit set in Article 30(1) may be effected by the ECB. It is further required that the Council sets the limits and conditions for these further calls of foreign reserve assets under the procedure laid down in Article 42. In this respect it is important that the secondary legislation foresees a pre-established limit for such further calls of foreign reserve assets. By merely setting a ceiling to the amount of foreign reserve assets in the secondary legislation, rather than stipulating specific conditions, it is intended to enhance the necessary financial independence of the ECB and the convenience to provide flexibility for different possible scenarios which should not be reflected in a Council Regulation. The assessment for the need to effect further calls within the overall limit to be established in the proposed secondary legislation should be left to the decision of the Governing Council, under the voting procedures provided for in Article 10(3) of the Statute.To ensure that the complementary legislation concerning further calls of foreign reserve assets by the ECB is directly enforceable in participating Member States on identical terms, it needs to be adopted in the form of an EU Council Regulation.III. COMMENTS ON THE ARTICLESArticle 1 - DefinitionsThis Article contains definitions of the terms "participating Member State", "national central bank" and "foreign reserve assets", as used in the recommendation.The definition of "foreign reserve assets" is consistent with the foreign reserve assets that may be provided to the ECB by the national central banks in accordance with Article 30(1) of the Statute, which excludes Member States' currencies, IMF reserve positions and SDRs. In addition, "foreign reserve assets" have been defined to include official foreign reserves, consistent with the wording of Article 105(2), third indent, of the Treaty establishing the European Community.Article 2 - Further calls of foreign reserve assetsThis Article stipulates that the ECB may effect further calls of foreign reserve assets from the national central banks beyond the limit set in Article 30(1) of the Statute of the European System of Central Banks and of the European Central Bank up to an amount equivalent to an additional EUR 50000 million. It is considered that an amount equivalent to the limits set for the initial transfer, i.e., EUR 50000 million, is appropriate for the time being, but that the ceiling might be increased at a later stage, following the same procedure, once the possible needs of the ECB have been more clearly established.Article 2 further provides that the central bank of a Member State whose derogation has been abrogated, or who is treated on the same basis as the central bank of a Member State whose derogation has been abrogated, shall transfer to the ECB a sum of foreign reserve assets determined by multiplying the euro value at current exchange rates of the foreign reserve assets which have already been transferred to the ECB by way of further calls, by the ratio between the number of shares subscribed by the central bank concerned and the number of shares already paid up by the other national central banks. This provision is designed to ensure that the same methodology for calculating the level of foreign reserves to be transferred by Member States that may adopt the euro in the future is used for further calls as is stipulated for the initial call of foreign reserve assets in accordance with Article 49(1) of the Statute.Article 3 - Final provisionsThis Regulation is set to take effect immediately after its publication in the Official Journal of the European Communities.(1) Article 42 of the Statute states: "In accordance with Article 106(6) of this Treaty, immediately after the decision on the date for the beginning of the third stage, the Council, acting by a qualified majority either on a proposal from the Commission and after consulting the European Parliament and the ECB or on a recommendation from the ECB and after consulting the European Parliament and the Commission, shall adopt the provision referred to in Articles 4, 5(4), 19(2), 20, 28(1), 29(2), 30(4) and 34(3) of this Statute."(2) Article 30(4) states: "Further calls of foreign reserve assets beyond the limit set in Article 30(1) may be effected by the ECB, in accordance with Article 30(2), within the limits and under the conditions set by the Council under the procedure laid down in Article 42."Council Regulation (EC) concerning further calls of foreign reserve assets by the European Central BankTHE COUNCIL OF THE EUROPEAN UNION,Having regard to the Statute of the European System of Central Banks and of the European Central Bank (hereinafter referred to as the Statute) and in particular to Article 30(4) thereof,Having regard to the recommendation of the European Central Bank (ECB),Having regard to the opinion of the European Parliament,Having regard to the opinion of the Commission of the European Communities,Acting in accordance with the procedure foreseen in Article 107(6) of the Treaty establishing the European Community (hereinafter referred to as the Treaty) and Article 42 of the Statute and under the conditions set out in Article 122(5) and paragraph 7 of Protocol No 11 on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland,(1) Whereas Article 30(1) of the Statute requires that the ECB be provided by the national central banks of participating Member States with foreign reserve assets, other than Member States' currencies, euro, IMF reserve positions and SDRs, up to an amount equivalent to EUR 50000 million;(2) Whereas Article 30(4) of the Statute requires the Council to specify the limits and conditions under which further calls of foreign reserve assets beyond the limit set in Article 30(1) of the Statute may be effected by the ECB;(3) Whereas Article 30(4) of the Statute requires that such further calls be effected in accordance with Article 30(2) of the Statute; whereas Article 30(2) in conjunction with Article 43(6) of the Statute and paragraph 10(b) of Protocol No 11 on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland requires that the contributions of each national central bank shall be fixed in proportion to its share of the capital of the ECB subscribed by the national central banks of participating Member States;(4) Whereas Article 10(3) in conjunction with Article 43(4) of the Statute requires that for any decisions to be taken under Article 30 of the Statute, the votes in the Governing Council of the ECB shall be weighted according to the shares of the national central banks of participating Member States in the subscribed capital of the ECB;(5) Whereas Article 30(4) of the Statute, in conjunction with Articles 43(4) and 43(6) of the Statute and paragraph 8 of Protocol No 11 on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland and paragraph 2 of Protocol No 12 on certain provisions relating to Denmark, shall not confer any rights or impose any obligations on the non-participating Member States;(6) Whereas Article 49(1) of the Statute in conjunction with paragraph 10(b) of Protocol No 11 on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland requires that the central bank of a Member State whose derogation has been abrogated, or who is treated on the same basis as the central bank of a Member State whose derogation has been abrogated, shall transfer to the ECB foreign reserve assets in accordance with Article 30(1) of the Statute; whereas Article 49(1) of the Statute requires that the sum to be transferred shall be determined by multiplying the euro value at current exchange rates of the foreign reserve assets which have already been transferred to the ECB in accordance with Article 30(1), by the ratio between the number of shares subscribed by the national central bank concerned and the number of shares already paid up by the other national central banks;(7) Whereas all references to amounts in euro in the aforementioned provisions of the Treaty, in this Regulation and in any call of or request by the ECB for foreign reserve assets are references to nominal amounts in euro at the time a call of such foreign reserve assets by the ECB is effected;(8) Whereas it is deemed appropriate that, in case of need, the ECB may effect further calls of foreign reserve assets from the national central banks beyond the limit set in Article 30(1) of the Statute, up to an amount equivalent to an additional EUR 50000 million; the amount of foreign reserve assets that may additionally be called by the ECB from the national central banks may be increased by the Council acting in accordance with the procedure laid down in Article 42 of the Statute,HAS ADOPTED THIS REGULATION:Article 1DefinitionsFor the purpose of this Regulation:- "foreign reserve assets" shall mean any official foreign reserve assets of the participating Member States held by national central banks that are denominated in, or comprise, currencies, units of account or gold other than Member States' currencies, euro, IMF reserve positions and SDRs,- "national central bank" shall mean the central bank of a participating Member State, and- "participating Member State" shall mean a Member State which has adopted the single currency in accordance with the Treaty.Article 2Further calls of foreign reserve assets1. The ECB may effect further calls of foreign reserve assets from the national central banks beyond the limit set in Article 30(1) of the Statute, up to an amount equivalent to an additional EUR 50000 million, in case of need for such foreign reserve assets.2. The central bank of a Member State whose derogation has been abrogated, or who is treated on the same basis as the central bank of a Member State whose derogation has been abrogated, shall transfer to the ECB a sum of foreign reserve assets determined by multiplying the euro value at current exchange rates of the foreign reserve assets which have already been transferred to the ECB in accordance with paragraph 1 of this Article, by the ratio between the number of shares subscribed by the central bank concerned and the number of shares already paid up by the other national central banks.Article 3Final provisionsThis Regulation shall enter into force on the day following its publication in the Official Journal of the European Communities.This Regulation shall be binding in its entirety and directly applicable in all Member States.