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31998H0288

98/288/EC: Commission Recommendation of 23 April 1998 on dialogue, monitoring and information to facilitate the transition to the euro

Official Journal L 130 , 01/05/1998 P. 0029 - 0031

COMMISSION RECOMMENDATION of 23 April 1998 on dialogue, monitoring and information to facilitate the transition to the euro (98/288/EC)THE COMMISSION OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European Community, and in particular Article 155 thereof,1. Whereas the euro will become the currency of the participating Member States as from 1 January 1999; whereas the euro will be substituted for the national currencies of the participating Member States at the conversion rates; whereas during the transitional period money-market and financial instruments, but not notes and coins, will be available in euro; whereas the national currency units will be sub-units of the euro according to the conversion rates; whereas pursuant to Article 4(3) of Council Regulation (EC) No 1103/97 of 17 June 1997 on certain provisions relating to the introduction of the euro (1) the conversion rates must be used for conversions either way between the euro unit and the national currency units;2. Whereas account should be taken of the work (2) undertaken since the Round Table of May 1997, of the communications of the Commission which have resulted from that work, and of the discussions at the Round Table of 26 February 1998 (3); whereas the Commission considers it necessary to recommend that measures be taken as regards dialogue between professional organisations and consumers, the monitoring of the transition to the euro, especially by the creation of observatories, and as regards training and education; whereas the European Parliament has encouraged the Commission to continue this work (4);3. Whereas Recommendations 98/286/EC concerning banking charges for conversion to the euro (5), and 98/287/EC concerning dual displays of prices and other monetary amounts (6) are supplementary to the dialogue initiated at national and Community level;4. Whereas following the work carried out by the Committee on Commerce and Distribution and the Consumer Committee (7) and the joint work carried out by these two committees, negotiations have begun at the Community level between professional organisations in the fields of distribution, tourism, small enterprises, crafts, and consumer organisations; whereas the Commission intends to continue and to intensify this dialogue;5. Whereas it would be appropriate for Member States to set up observatories, in line with relevant national law and compatible with existing administrative structures, as centres for dialogue and monitoring for the citizen; whereas the European Parliament has urged that this approach be continued;6. Whereas consumer contracts have to comply with the provisions of applicable legislation, including those of Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (8);7. Whereas as far as the standards of good practice for banking charges for conversion to the euro are concerned, in addition to other arrangements set in place for monitoring the Commission intends to monitor the observance of those standards, and calls on all the parties concerned, and in particular the banking associations, to provide it with the information necessary for that purpose;8. Whereas there should be a permanent dialogue between small and medium-sized enterprises and their business partners; whereas small enterprises in particular may face specific difficulties in their own preparations for the changeover to the euro during the transitional period; whereas it is in everyone's interest to facilitate the changeover to the euro for small enterprises; whereas one way of achieving this would be for enterprises to engage in negotiations at the appropriate level with a view to agreeing on principles that would help small enterprises to make the changeover to the euro;9. Whereas small enterprises have difficulty in gaining access to traditional information sources, and lack information; whereas targeted information activities should be organised for small enterprises; whereas professionals and institutions, including chambers of commerce, having contact with small enterprises should keep up their awareness-raising and information efforts; whereas the Commission will continue to make available to small enterprises, in particular through the Euro-Info Centres network, practical tools tailored to their needs;10. Whereas Member States should continue to examine the role played by the education system in informing young people and the general public; whereas Member States should exchange information and good practice in this area, for which purpose a network of national education officials has been set up; whereas it is essential that young people of school age should be able rapidly to understand and accept the euro under the most favourable conditions and adjust to the new scales of values, due regard being had in particular to their ability to pass on information within the family circle; whereas, if it is to bear fruit, action in schools must closely involve education officials, teachers and other school staff; whereas action on the education front should involve not only schools but all the different components of the education and training system; whereas young people outside the school system should be given special attention,HEREBY RECOMMENDS:Article 1 Dialogue 1. To ensure further progress in practical preparations for the changeover to the euro, national authorities are invited to encourage consumer organisations and trade associations to keep up an interactive dialogue. The Commission will also continue to encourage such dialogue at Community level, and will invite the Member States to take into account the results.2. As part of that dialogue, consumer organisations and trade associations are invited to negotiate and, where appropriate, to conclude agreements on standards of good practice concerning dual display and payments, and to lay down minimum standards with regard to the information to be provided.3. Businesses should negotiate at the appropriate level with a view to defining principles that would help small enterprises to make the changeover to the euro. Such principles should aim in particular at ensuring:(a) that businesses give a period of notice before issuing or requesting invoices exclusively in euro in order to allow their customers, particularly where these are small enterprises, time to prepare themselves properly;(b) that, if a small enterprise requests its supplier to continue showing prices in national currency alongside prices in euro on invoices, the supplier accepts;(c) that large firms provide their subcontractors with the necessary assistance in order to help them make the changeover to the euro.Article 2 Observatories and monitoring 1. The Member States, including where appropriate local authorities, are invited to establish suitable facilities, and preferably to set up observatories on the transition to the euro, for monitoring the introduction of the euro, and the fairness and transparency of professional practices.2. Each observatory should involve representatives of all relevant business sectors, the public administrations concerned and members of the public, including representative bodies, particularly consumer associations.3. Observatories should carry out the following tasks at local level: reception, guidance to sources of information, providing feedback, mediation, and assistance to citizens. On the basis of an evaluation of these practices, they should be able to transmit the benefits of their experience to the relevant national and Community instances.4. In order to facilitate the monitoring of the implementation by banks of the standard of good practice on banking charges for conversion to the euro, and in addition to other monitoring arrangements set in place, the national and European banking associations are invited to respond forthwith to the Commission's requests for information on progress in implementing them. To allow an initial evaluation of these good practices to be carried out before the end of 1998, the national banking associations are requested to report to the Commission by 1 November 1998, through their European associations, on the way in which banks intend to implement these good practices.5. The Member States are invited to follow closely the implementation of the standard of good practice and the information provided by banks on the subject.Article 3 Information and training 1. In view of the specific difficulties facing small enterprises in their own preparations for the changeover to the euro and in gaining access to traditional information sources, professionals and institutions, including chambers of commerce, in contact with small enterprises should keep up their awareness-raising and information efforts by targeted activities, including consultancy and advice, and emphasising the practical preparations to be undertaken.2. Member States are invited to involve their education and school systems as quickly as possible in the information drive on the euro, and to that end to take all the necessary steps to raise the awareness of, to inform and train teachers and other school staff.3. Action in the education field should comprise specific measures for all forms of education and training, such as distance learning, adult education, higher education, vocational training, and block-release training. Information technology should be not only for raising the awareness of and training teachers but also for channelling information to young people. Member States are also invited to prepare teaching materials that can be easily used by teachers.Special attention should also be given to young people outside the school system or educational structures, by taking appropriate measures to inform them.Article 4 Final provision Member States are invited to support the implementation of this Recommendation.Article 5 Addressees This Recommendation is addressed to the Member States, trade associations, consumer organisations, chambers of commerce, banking associations, enterprises and all other organisations or institutions in contact with them.Done at Brussels, 23 April 1998.For the CommissionYves-Thibault DE SILGUYMember of the Commission(1) OJ L 162, 19. 6. 1997, p. 1.(2) Report of the expert group on the technical and cost aspects of dual display, Euro Paper No 13; report of the expert group on banking charges for conversion to the euro, Euro Paper No 14; report of the expert group on adjusting to prices and values in euro, Euro Paper No 18; report of the expert group on euro-education, Euro Paper No 19; report of the expert group on small enterprises and the euro, Euro Paper No 21.(3) Communication from the Commission Update on the practical aspects of the introduction of the euro; COM(98) 61 final, 11 February 1998. Communication from the Commission on the information strategy for the euro; COM(98) 39 final, 6 February 1998.(4) Resolution of the European Parliament of 13 January 1998 on the euro and the consumer.(5) See page 22 of this Official Journal.(6) See page 26 of this Official Journal.(7) Committee on Commerce and Distribution 'Opinion on the key points of the introduction of the single currency`, adopted 20 February 1998; Consumer Committee 'Facilitating the transition of the consumer to the euro`, adopted 10 February 1998; Report of the working group on acceptance of the new prices and scales of values in euro, Euro Paper No 18.(8) OJ L 95, 21. 4. 1993, p. 29.


title: Council Recommendation of 8 July 2014 on the National Reform Programme 2014 of Ireland and delivering a Council opinion on the Stability Programme of Ireland, 2014

text:
               29.7.2014

               EN

               Official Journal of the European Union

               C 247/29

         COUNCIL RECOMMENDATION
   of 8 July 2014
   on the National Reform Programme 2014 of Ireland and delivering a Council opinion on the Stability Programme of Ireland, 2014
   2014/C 247/07
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,
   Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 5(2) thereof,
   Having regard to 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)

               Ireland was subject to a macroeconomic adjustment programme until December 2013. Under Article 12 of Regulation (EU) No 472/2013 of the European Parliament and of the Council (4), it was thus exempt from the monitoring and assessment of the European Semester for economic policy coordination for the duration of that programme. In view of the successful completion of the Irish macroeconomic adjustment programme, Ireland should now be fully integrated in the European Semester framework.

               (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.

               (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 Ireland, under Article 5 of Regulation (EU) No 1176/2011 and taking into account the successful completion of the Irish economic adjustment programme and thus the fact that Ireland should now be fully integrated in the European Semester framework. The Commission's analysis leads it to conclude that Ireland's recently completed macroeconomic adjustment programme was instrumental in managing economic risks and reducing imbalances. However, the remaining macroeconomic imbalances require specific monitoring and decisive policy action. In particular, financial sector developments, private and public sector indebtedness, and, linked to that, the high gross and net external liabilities and the situation of the labour market mean that risks are still present.

               (8)

               On 17 April 2014, Ireland submitted its 2014 National Reform Programme and, on 29 April 2014, its 2014 Stability Programme. In order to take account of their interlinkages, the two programmes have been assessed at the same time.

               (9)

               The main objectives of the budgetary strategy outlined in the 2014 Stability Programme are to correct the excessive deficit by 2015 and reach the medium-term objective by 2018. The Stability Programme targets a deficit below 3 % of GDP by 2015, in line with the Excessive Deficit Procedure recommendation. The Stability Programme confirms the medium-term objective of a balanced budgetary position in structural terms, which is consistent with the provisions of the Stability and Growth Pact. Beyond 2015, the Stability Programme sets a reduction in the headline fiscal deficit of around 1 percentage point of GDP per annum in 2016–2018. It aims to reduce debt from close to 124 % of GDP in 2013 to 107 % of GDP in 2018. The macroeconomic scenario underpinning the budgetary projections in the Stability Programme was endorsed as ‘within the range of appropriate projections’ by an independent body (the Irish Fiscal Advisory Council). It is broadly in line with the Commission forecast for 2014 and 2015, with some differences in the contributions of the demand components. However, the authorities' forecast for the later years of the Stability Programme is optimistic. Moreover, the achievement of the budgetary targets is not supported by sufficiently detailed measures for 2015. As a result, the Commission deficit forecast for 2015 is higher than the target recommended by the Council. Based on the assessment of the Stability Programme and the Commission forecast, pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the Stability Programme's targets are consistent with the requirements of the Stability and Growth Pact, but need to be supported by specific measures from 2015 onward. There have been significant steps to improve important aspects of the Irish fiscal framework and the quality and timeliness of data provision. Current rules for the medium-term expenditure ceilings allow for discretionary changes by the government that are not limited to predefined contingencies.

               (10)

               Tax reforms have contributed to the fiscal adjustment, but there is further scope to improve the efficiency and growth-friendliness of the tax system. Property taxation has been shifted from a transaction tax to a recurrent tax based on residential property values, but the tax base is still relatively narrow as certain properties remain outside the tax net. Labour taxation is fragmented and complex; and the tax bases for consumption and environment taxes are narrowed by reduced rates and exemptions, while such taxes are more growth-friendly. Zero and reduced VAT rates result in a VAT efficiency below the EU average. Reduced VAT rates are widely used to achieve redistribution objectives even though they are not an efficient and well-targeted policy tool to protect vulnerable groups. There is scope to improve the effectiveness of environmental tax instruments and removing environmentally harmful subsidies.

               (11)

               Even though Ireland has a relatively young population, public healthcare expenditure was among the highest in the Union in 2012 at 8,7 % of GNI, significantly above the EU average of 7,3 %. Given the current difficulties in managing the health budget, expected demographic pressures due to an ageing population mean that current service levels can be maintained only if value-for-money gains are achieved over the medium to long term. The increase in health-related spending to 2060 due to demographic pressures is projected at 1,2 percentage points of GDP. Challenges to the health sector are multifaceted. Financial management and accounting systems and processes are fragmented across healthcare providers. This causes delays and hurdles in collecting and processing information. It also hinders the monitoring of healthcare expenditure and efforts to achieve value-for-money and an appropriate allocation of resources. The high level of pharmaceutical expenditure is another challenge, with expenditure on out-patient drugs being comparatively high.

               (12)

               Ireland faces challenges relating to unemployment, particularly long-term and youth unemployment, and there is still a large working age population with low skills, resulting in inequality and skills mismatches. Long-term unemployment has fallen gradually with the recent strengthening of the labour market, but it remains high as a proportion of overall unemployment, representing over 61 % of the total at the end of 2013. The unemployment rate among young people peaked above 30 % in mid 2012. Additionally, the proportion of young people not in employment, education or training increased by 8 percentage points between 2007 and 2012 to 18,7 % before ebbing to 16,1 %, but still among the highest in the Union. There is a need to cover all young people in need within a four-month period, in line with the objectives of a youth guarantee. Skills mismatches have emerged with the rebalancing of the economy, making re-skilling and up-skilling a challenge for the education and training system. In addition, participation in lifelong learning is lower than the EU average (7,3 %, as compared with 10,7 % in 2013).

               (13)

               Ireland has one of the highest proportions of people living in households with low work intensity in the Union, which generates serious social challenges. The proportion was higher than the EU average prior to the crisis and surged from 14,3 % in 2007 to 24,2 % in 2011. Low work intensity is particularly severe among single-parent households with children. This has contributed to a growing risk of poverty or social exclusion of children in Ireland and exacerbates the issue of the unequal labour market participation of women which stood at 67,2 % in 2013, as compared with 83,4 % for men. As a result, attention has turned to access to and affordability of childcare, a significant barrier to parents finding employment and avoiding the risk of poverty. The labour market is also affected by pockets of unemployment traps. The flat structure of unemployment benefits under the Jobseeker's Benefit and Jobseeker's Allowance system, the unlimited duration of the Jobseeker's Allowance and the loss of supplementary payments (in particular, rent supplement and medical cards) upon return to employment mean that replacement rates are relatively high for the long-term unemployed with low income potential and other categories of workers depending on family circumstances.

               (14)

               Lending to SMEs remains weak, reflecting a combination of subdued credit demand and supply constraints, as SMEs continue to be affected by excess leveraging and weak domestic demand while banks need to make further progress in achieving sustainable resolutions in their SME non-performing loans book. The latest Red C survey indicates that, of the 35 % of SMEs that requested bank credit between October 2013 and March 2014, 19 % were declined a loan. The Credit Review Office was established at the end of 2009 to mediate disputes between lenders and prospective SME borrowers who have been refused credit. Although positive, the impact of the Credit Review Office appears to have been rather limited to date, partly because the number of appeals has been quite small. SMEs rely heavily on bank financing for investment, and non-bank sources of finances are relatively underdeveloped, although some alternatives, including loan funds, are currently being examined. As the recovery gathers momentum, however, and as domestic demand recovers supply constraints are likely to increase unless credit channels are adequately repaired, which is crucial for the growth outlook. Dedicated schemes and funds have been put in place to improve access to finance for SMEs, such as the Credit Guarantee Scheme, the Microenterprise Loan Fund Scheme and three SME funds put in place, but so far take-up has been low.

               (15)

               Despite banking sector reforms undertaken under the recently completed programme of financial assistance, there are still significant challenges. These challenges were analysed in detail in the Commission's 2014 in-depth review of Ireland. Non-performing loans represented almost 27 % of the total as of June 2013 for the three main domestic banks. Private sector indebtedness is still among the highest in the Union in spite of recent deleveraging and this remains a risk to financial stability and a burden on the economy. Household and SME deleveraging is incomplete, and bank and SME balance sheet repair are critical to restore credit channels. Bank lending continues to fall and the banking sector still struggles with profitability, in part because of the high number of tracker mortgages (low-yielding legacy assets) on banks' balance sheets.

               (16)

               The cost of enforcing contracts is high. Lawyer fees represent the majority of these costs, at 18,8 percentage points and high legal services costs affect the cost structure of all businesses, including SMEs. In addition, unlike for other professional services, legal services costs have failed to adjust downwards since the onset of the crisis, in part due to insufficient competition. The authorities have committed themselves to introducing reforms to the legal services sector as part of the macroeconomic adjustment programme. They published a Legal Services Regulation Bill in 2011 that remains to be enacted. Judicial and court administrative resources to implement active pre-trial case management are very limited, which may be contributing to delays in the delivery of justice and raise costs. In addition, there are significant gaps in Ireland's ability to collect data on the efficiency of the justice system.

               (17)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of Ireland's economic policy. It has assessed the National Reform Programme and the Stability Programme. It has taken into account not only their relevance for sustainable fiscal and socio-economic policy in Ireland 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 (7) below.

               (18)

               In the light of this assessment, the Council has examined the Stability Programme, and its opinion (5) is reflected in particular in recommendations (1) and (2) below.

               (19)

               In the light of the Commission's in-depth review and this assessment, the Council has examined the National Reform Programme and the Stability Programme. Its recommendations under Article 6 of Regulation (EU) No 1176/2011 are reflected in recommendations (1), (3), (5) and (6) below.

               (20)

               In the context of the European Semester the Commission has also carried out an analysis of the economic policy of the euro area as a whole. On this basis, the Council has issued specific recommendations addressed to the Member States whose currency is the euro (6). As a country whose currency is the euro, Ireland should also ensure the full and timely implementation of those recommendations,

         HEREBY RECOMMENDS that Ireland take action within the period 2014-2015 to:

               1.

               Fully implement the 2014 budget and ensure the correction of the excessive deficit in a sustainable manner by 2015 through underpinning the budgetary strategy with additional structural measures while achieving the structural adjustment effort specified in the Council recommendation under the Excessive Deficit Procedure. After the correction of the excessive deficit, pursue a structural adjustment towards the medium-term objective of at least 0,5 % of GDP each year, and more in good economic conditions or if needed to ensure that the debt rule is met in order to put the high general government debt ratio on a sustained downward path. Enhance the credibility of the fiscal adjustment strategy, effectively implement multi-annual budgetary planning and define broad budgetary measures underlying the medium-term fiscal targets. Ensure the binding nature of the government expenditure ceiling including by limiting the statutory scope for discretionary changes. To support fiscal consolidation, consideration should be given to raising revenues through broadening the tax base. Enhance the growth and environmental friendliness of the tax system.

               2.

               Advance the reform of the healthcare sector initiated under the Future Health strategic framework to increase cost-effectiveness. Pursue additional measures to reduce pharmaceutical spending, including through more frequent price realignment exercise for patented medicines, increased generic penetration and improved prescribing practices. Reform the financial management systems of the national health authority to streamline systems across all providers and to support better claims management. Roll out individual health identifiers starting by the end of the first quarter of 2015 at the latest.

               3.

               Pursue further improvements in active labour market policies, with a particular focus on the long-term unemployed, the low-skilled and, in line with the objectives of a youth guarantee, young people. Advance the ongoing reform of the further education and training (FET) system, employment support schemes and apprenticeship programmes. Offer more workplace training; improve and ensure the relevance of FET courses and apprenticeships with respect to labour market needs. Increase the level and quality of support services provided by the Intreo labour offices. Put in place a seamless FET referrals system between Intreo offices and Education and Training Boards.

               4.

               Tackle low work intensity of households and address the poverty risk of children through tapered withdrawal of benefits and supplementary payments upon return to employment. Facilitate female labour market participation by improving access to more affordable and full-time childcare, particularly for low income families.

               5.

               Advance policies for the SME sector including initiatives to address the availability of bank and non-bank financing and debt restructuring issues, while avoiding risks to public finances and financial stability. Advance initiatives to improve SME's access to bank credit and non-bank finance. Introduce a monitoring system for SME lending in the banking sector. In parallel, work to ensure that available non-bank credit facilities, including the three SME funds co-funded by the National Pensions Reserve Fund, Microfinance Ireland and the temporary loan guarantee scheme, are better utilised. Promote the use of these and other non-bank schemes by SMEs. Enhance the Credit Review Office's visibility and capabilities in mediating disputes between banks and prospective SME borrowers who have been refused credit.

               6.

               Monitor banks' performance against the mortgage arrears restructuring targets. Announce ambitious targets for the third and fourth quarters of 2014 for the principal mortgage banks to propose and conclude restructuring solutions for mortgage loans in arrears of more than 90 days, with a view to substantially resolving mortgage arrears by the end of 2014. Continue to assess the sustainability of the concluded restructuring arrangements through audits and targeted on-site reviews. Develop guidelines for the durability of solutions. Publish regular data on banks' SME loan portfolios in arrears to enhance transparency. Develop a strategy to address distressed commercial real-estate exposures. Establish a central credit registry.

               7.

               Reduce the cost of legal proceedings and services and foster competition, including by adopting the Legal Services Regulation Bill by the end of 2014, including its provision allowing the establishment of multi-disciplinary practices, and by seeking to remove the solicitor's lien. Monitor its impact, including on the costs of legal services. Take executive steps to ensure that the Legal Services Regulatory Authority is operational without delay and that it meets its obligations under the legislation, including in terms of publishing regulations or guidelines for multi-disciplinary practices and the resolution of complaints. Improve data collection systems to enhance the monitoring and evaluation of the efficiency of judicial proceedings to identify issues in need of reform.

      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)  Regulation (EU) No 472/2013 of the European Parliament and of the Council of 21 May 2013 on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability (OJ L 140, 27.5.2013, p. 1).

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

      (6)  See page 141 of the current Official Journal.


				|

		52012PC0676

			Recommendation for a COUNCIL DECISION abrogating Decision 2009/587/EC on the existence of an excessive deficit in Malta /* COM/2012/0676 final */

			   	Recommendation for a
COUNCIL DECISION
abrogating Decision 2009/587/EC on the
existence of an excessive deficit in Malta
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union,
and in particular Article 126(12) thereof,
Having regard to the recommendation from
the Commission,
Whereas:
(1)       By Council Decision 2009/587/EC
of 7 July 2009[1],
following a recommendation from the Commission in accordance with Article 104(6)
of the Treaty establishing the European Community (TEC), it was decided that an
excessive deficit existed in Malta. The Council noted that the general
government deficit in Malta had reached 4.7% of GDP in 2008, thus largely
exceeding the 3% of GDP reference value, while general government gross debt had been above the 60% of GDP
reference value since 2003 and stood at 64.1% of GDP in 2008[2].
(2)       Also on 7 July 2009, on
the basis of a recommendation by the Commission, the Council addressed a
recommendation to Malta in accordance with Article 104(7)TEC and Article 3(4)
of Regulation (EC) No 1467/97 on speeding up and clarifying the implementation
of the excessive deficit procedure[3],
with a view to bringing an end to this situation by 2010 at the latest. The
recommendation was made public.
(3)       On 16 February 2010, on
the basis of a Commission recommendation, the Council concluded that effective
action had been taken in compliance with its recommendation under Article
104(7) TEC but that unexpected adverse economic events with major unfavourable
consequences for government finances had occurred in Malta after the adoption
of its recommendation. The Council therefore adopted a revised recommendation
in accordance with Article 126(7) of the Treaty on the Functioning of the
European Union (TFEU) to Malta, extending the deadline for the correction of
the excessive deficit by one year, i.e. to 2011. The recommendation was made
public.
(4)       According to Article 126(12)
TFEU, a Council Decision on the existence of an excessive deficit is to be
abrogated when the excessive deficit in the Member State concerned has, in the
view of the Council, been corrected.
(5)       According to Article 4 of the
Protocol on the excessive deficit procedure annexed to the TFEU, the Commission
provides the data for the implementation of the procedure. As part of the
application of this Protocol, Member States are to notify data on government
deficits and debt and other associated variables twice a year, namely before 1
April and before 1 October, in accordance with Article 3 of Council Regulation
(EC) No 479/2009 of 25 May 2009 on the application of the Protocol on the
excessive deficit procedure annexed to the TFEU[4].

(6)       When considering whether
an excessive deficit procedure should be abrogated, the Commission and the
Council should take a decision on the basis of notified data. Moreover, the
excessive deficit procedure should be abrogated only if the Commission
forecasts indicate that the deficit will not exceed the 3% of GDP threshold
over the forecast horizon.
(7)       Based on data provided by
the Commission (Eurostat) in accordance with Article 14 of Regulation (EC) No 479/2009
following the notification by Malta before 1 April 2012 and on the
Commission services’ 2012 Autumn Forecast, the following conclusions are
warranted:
–
After the peak in 2008, the general government deficit
has narrowed gradually, reaching 2.7% of GDP in 2011, below the 3% of GDP
reference value. The significant improvement compared to 2010, when the general
govermnment deficit was 3.6% of GDP, was mainly due to an increase in revenues
by 0.7% of GDP. The impact of net deficit-reducing one-off measures in 2011 is
estimated in the Commission services’ 2012 Autumn Forecast at 0.7% of GDP. The
structural balance, i.e. the cyclically adjusted budgetary balance net of one-off
and temporary measures, is estimated to have improved by 1 pp. of GDP in 2011,
above the requested effort of at least ¾% of GDP recommended by the Council.
–
The Commission services' 2012 Autumn Forecast
projects the deficit to fall further to 2.6% of GDP in 2012, mainly thanks to revenue-increasing
measures, most of which are considered to be of a one-off nature; the net
deficit-reducing impact of one-offs is estimated at 1% of GDP. On a no-policy change
basis, i.e. without incorporating the consolidation measures contained in the
2013 budget, which was adopted after the cut-off date of the forecast, the
general government deficit is projected to widen to 2.9% of GDP in 2013, before
narrowing again, to 2.6% of GDP, in 2014, thus remaining below the 3% of GDP
reference value over the forecast horizon. The April 2012 Stability Programme
targets lower deficits, of 2.2%, 1.7% and 1.1% of GDP in 2012, 2013 and 2014,
respectively. The difference between the Commission services' 2012 Autumn Forecast
and the Stability Programme target for 2012is mainly explained by more dynamic
revenue growth in the latter.
–
In the years after the 2011 deadline set by the
Council, the budgetary projections of the Commission services' 2012 Autumn
Forecast point to no improvement of the cyclically-adjusted budget balance, net
of one-off and other temporary measures, in 2012 and to an improvement of ¼ pp.
of GDP in 2013. This is below the 0.5% of GDP benchmark for the adjustment
towards the Medium Term Budgetary Objective (MTO) required under the preventive
arm of the Stability and Growth Pact, notably Regulation (EC) No 1466/97[5]. This slow adjustment is
projected against broadly balanced cyclical conditions; i.e. the output gap is
estimated to be close to zero. At the same time, the composition of growth is
expected to be relatively tax-revenue-poor. Especially in 2012, economic growth
is driven by net exports, while domestic demand is projected to be rather weak
compared to the past trends. In 2014, the improvement is projected to amount to
of ½ pp. of GDP. Furthermore, in 2012, the real growth rate of government
expenditure, net of discretionary revenue measures, is projected to be below
the benchmark reference medium-term rate of potential GDP growth, as defined in
Article 5 of Regulation (EC) No 1466/97. However, on a no-policy-change basis,
the real net growth in expenditure would significantly breach this benchmark
reference rate in 2013 and 2014.
–
General government gross debt as a share of GDP has
been on an increasing trend since 2008 and reached 70.9% of GDP in 2011. The
Commission services’ 2012 Autumn Forecast projects the debt ratio to continue
increasing to reach 72.4% of GDP in 2012, 73.1% of GDP in 2013 and 72.8% of GDP
in 2014. By contrast, the 2012 Stability Programme projects the debt ratio to start
decreasing after 2011, to 67.4% of GDP by 2014. The difference between the two
projections is due to a lower primary surplus and higher stock-flow adjustment
in the Autumn Forecast.
(8)       The Council recalls that,
starting in 2012, which is the year following the correction of the excessive
deficit, and for a period of three years, Malta should make sufficient progress
towards compliance with the requirement under the debt criterion, in accordance
with Article 2(1a) of Regulation (EC) No 1467/97.
(9)       In the view of the
Council, the excessive deficit in Malta has been corrected by the 2011 deadline
and Decision 2009/587/EC should therefore be abrogated,
HAS ADOPTED THIS DECISION:
Article 1
From an overall assessment it follows that
the excessive deficit situation in Malta has been corrected.
Article 2
Decision 2009/587/EC is hereby abrogated.
Article 3
This Decision is addressed to the Republic
of Malta.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 202, 4.8.2009, p. 42.
[2]               The general government deficit and debt for 2008 were
subsequently revised to currently 4.6% of GDP and 62.0% of GDP respectively.
[3]               OJ L 209, 2.8.1997, p. 6.
[4]               OJ L 145, 10.6.2009, p. 1.
[5]               OJ L 209, 2.8.1997, p. 1.


Important legal notice

|

52005SC0011

Recommendation for a Council opinion in accordance with the third paragraph of Art. 5 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated stability programme of the Netherlands, 2004-2007  /* SEC/2005/0011 final */

	Brussels, 11.1.2005SEC(2005) 11 finalRecommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Art. 5 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated stability programme of the Netherlands, 2004-2007(presented by the Commission)EXPLANATORY MEMORANDUMCouncil Regulation (EC) No. 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies[1] stipulates that participating Member States, that is, those which have adopted the single currency, had to submit stability programmes to the Council and the Commission by 1 March 1999. In accordance with Article 5 of this Regulation, the Council had to examine each stability programme based on assessments prepared by the Commission and the Committee set up by Article 114 of the Treaty (the Economic and Financial Committee). On the basis of a recommendation from the Commission and after having consulted the Economic and Financial Committee, the Council delivered an opinion, following its examination of the programme. According to the Regulation, Member States need to submit annual updates of their stability programmes, which may also be examined by the Council in accordance with these same procedures.In view of a general government deficit of 3.2% of GDP recorded in 2003, the Council decided that the Netherlands were in excessive deficit on 2 June 2004 and recommended that the excessive deficit be corrected by 2005 at the latest. In particular, it was recommended that the corrective measures taken by 2005 should be mainly of a structural nature and amount to at least half a percentage point of GDP. In its meeting of 21 October 2004 the Ecofin Council reviewed the measures taken by the Netherlands and concluded, in line with the assessment of the Commission, that at that stage the measures appeared adequate to correct the excessive deficit by the required deadline. The Commission and the Council will continue to monitor the action taken. The assessment of the stability programme update is part of this continuous surveillance.The first stability programme of the Netherlands, covering the period 1999-2002, was submitted on 4 November 1998 and assessed by the Council on 1 December 1998. Updates have been presented every subsequent year, the most recent one having been submitted on 23 November 2004. The Commission services have carried out a technical evaluation of this update, taking into account the results of their own autumn 2004 economic forecasts, and having regard to the code of conduct[2], the commonly agreed methodology for the estimation of potential output and cyclically-adjusted balances, the recommendations in the broad economic policy guidelines for the period 2003-2005 and the principles laid down in the Communication from the Commission to the Council and the European Parliament of 27 November 2002 on strengthening the coordination of budgetary policies, endorsed by the Council[3]. This evaluation is as follows:-  The 2004 update of the stability programme of the Netherlands, which covers the period 2004-2007, was submitted on 23 November 2004, following its approval by the government. The multi-annual projections in the update are mainly derived from the 2005 budget, which was submitted to Parliament on 21 September 2004[4]. The update largely complies with the data requirements of the “code of conduct on the content and format of stability and convergence programmes”. It covers all the areas required and provides all the compulsory variables requested, and most of the optional ones except certain data concerning potential output.-  The macroeconomic scenario in the update is taken from the CPB Netherlands Bureau of Economic Policy Analysis (CPB). The update assumes a gradual recovery, with real GDP growth at 1½% in 2005, picking up to 2½% from 2006 onwards. For the period 2004-2006, the projections of key variables are quite close to those in the Commission services’ autumn 2004 forecast. However, the latest available data on commodity prices, exchange rates and trade volumes suggest that macroeconomic scenario in the update for the years 2005 and 2006 is on the optimistic side. The assumptions on economic growth in 2005 in particular seem favourable. The growth assumptions for 2007 seem plausible in view of the estimated rate of potential growth and the expectation that the negative output gap would be reduced gradually during the upturn. The rates of potential growth and of the output gap derived from the update’s macroeconomic scenario using the agreed methodology appear to be plausible. The programme’s projections for inflation appear realistic.-  The primary aim of the update’s budgetary strategy is to bring the general government deficit below the Treaty reference value of 3% of GDP by 2005. To this end, it encompasses a frontloaded consolidation effort, concentrated in 2004 and 2005. The corrective measures for 2005 add up to half a percentage point of GDP. With the combined effect of fiscal consolidation and the expected gradual economic upturn, the update projects the general government deficit to fall from 3.0% of GDP in 2004 to 2.6% of GDP in 2005, 2.1% of GDP in 2006 and 1.9% of GDP in 2007. The cyclically-adjusted deficit is expected to be lower throughout the time horizon covered and to decrease from 1.6% of GDP in 2004 to 1.2% of GDP in 2005. However, the cyclically-adjusted balance is not expected to improve further in 2006 and would even deteriorate slightly in 2007, to a deficit of 1.3% of GDP. The budgetary strategy entails the use of real expenditure ceilings to control expenditure growth and the longer-term objective of sustainable public finances, in line with the strategy of the previous update. The public investment ratio is expected to remain constant over the period covered, at slightly above 3% of GDP, against an EU average of 2.4% of GDP in 2004.-  The budgetary forecasts of the update appear plausible and the uncertainties to the projections are broadly balanced. Some risks to the deficit projections stem from the risks to the macroeconomic outlook. Moreover, the budgetary costs of the social agreement reached between the government and social partners on 5 November 2004 have not been incorporated in the update, while the uncertainty surrounding the implementation of reforms in the areas of health care and pensions might also lead to a higher deficit. However, these risks are mitigated by the positive impact of higher oil prices on receipts from the sale of natural gas, and by the fact that the assumptions on the tax intensity of economic activity used in the baseline scenario of the update are on the cautious side. Taking into account the balance of risks to the budgetary targets, the Netherlands appear to be on track to correct its excessive deficit by 2005, the deadline set by the Council. However, the fiscal consolidation path foreseen after the correction of the excessive deficit lacks ambition, as it would not ensure the achievement of the medium-term objective of a budgetary position of close-to-balance within the programme period. Moreover, in this period (2006-2007), the budgetary stance in the update does not seem to provide a sufficient safety margin against normal macroeconomic fluctuations breaching the 3%-of-GDP threshold.-  The update expects the debt ratio to remain below the 60%-of-GDP reference value and to rise from slightly over 56% of GDP in 2004 to somewhat above 58% of GDP in each of the years 2005 to 2007, with the pick-up in nominal GDP growth largely offsetting the upward impact of persistent deficits on the debt ratio. The update expects the stock-flow adjustments to contribute slightly to increases in debt in the period 2005-2007 after debt-reducing stock-flow adjustments in the period 2000-2003 due to privatisation receipts; the size of the adjustments, however, would remain relatively limited at less than half a percentage point of GDP. These projections are quite close to the Commission services’ autumn 2004 forecast. Risks to the debt ratio correspond to those for the deficit projections and appear broadly balanced.-  The update briefly reviews the government’s structural reform programme, which encompasses a far-reaching overhaul of the social security, pension and health care systems that is intended to improve the sustainability of public finances and to increase labour participation. It also outlines the positive impact on employment and economic activity of a reduction in the administrative burden. On balance, the reforms should help improve the sustainability of Dutch public finances. However, in several areas, such as health and pension reform, there is some doubt as to how effectively the proposed measures will influence the actual behaviour of economic agents and thus secure the intended budgetary savings. Moreover, it seems that the positive budgetary impact of structural reforms which strengthen potential growth will be felt mainly after the period covered by the update, while some of the measures that boost net revenue in the near term may not be optimal in terms of improving the structure of the economy, for instance the increase in the marginal wedge for low-to-medium incomes.-  The Netherlands are in a relatively favourable position with regard to the long-term sustainability of public finances, in spite of important projected budgetary cost of an ageing population. However, despite ongoing reforms in the areas of social security, pensions and health care, its current policies do carry some sustainability risks. The strategy outlined in the programme is mainly based on measures aimed at raising labour force participation and at containing age-related expenditures. Given the projected increase in the old-age dependency ratio, further reforms that would modify the trends in age-related expenditures and raise further participation rates are a key factor in ensuring sustainability over the longer-term.-  Overall, the economic policies outlined in the update are partly consistent with the country-specific broad economic policy guidelines in the area of public finances. The budgetary framework with expenditure ceilings is adhered to, and budgetary adjustment to correct the excessive deficit is well under way. However, the expected reduction in the headline deficit in 2006 and especially 2007 is quite slow, and the cyclically-adjusted balance would not be reduced by at least 0.5 percent of GDP in each year. Moreover, the attainment of a fiscal position close to balance or in surplus is not anticipated within the time span covered by the update.-  In view of the above assessment, the Netherlands are recommended to take the necessary measures to ensure that a budgetary position close to balance is achieved and maintained after the correction of the excessive deficit.Comparison of key macroeconomic and budgetary projections2004 | 2005 | 2006 | 2007 |Real GDP (% change) | SP Nov. 2004 | 1¼ | 1½ | 2½ | 2½ |COM | 1.4 | 1.7 | 2.4 | n.a. |SP Oct. 2003 | 1 | 2½ | 2½ | 2½ |HICP inflation (%) | SP Nov. 2004 | 1¼ | 1¼ | 1½ | 1½ |COM | 1.2 | 1.3 | 1.4 | n.a. |SP Oct. 2003 | 1.5 | 1½ | 1½ | 1½ |General government balance (% of GDP) | SP Nov. 2004 | -3.0 | -2.6 | -2.1 | -1.9 |COM | -2.9 | -2.4 | -2.1 | n.a. |SP Oct. 2003 | -2.3 | -1.6 | -0.9 | -0.6 |Primary balance (% of GDP) | SP Nov. 2004 | -0.1 | 0.3 | 0.7 | 0.8 |COM | 0.0 | ½ | 0.9 | n.a. |SP Oct. 2003 | 0.6 | 1.2 | 1.8 | 2.1 |Cyclically-adjusted balance (% of GDP) | SP Nov. 20041 | -1.6 | -1.2 | -1.2 | -1.3 |COM | -1.4 | -1.0 | -1.0 | n.a. |SP Oct. 20031 | -0.7 | -0.3 | -0.2 | -0.2 |Government gross debt (% of GDP) | SP Nov. 2004 | 56.3 | 58.1 | 58.6 | 58.3 |COM | 55.7 | 58 | 58.4 | n.a. |SP Oct. 2003 | 54. 5 | 53.7 | 53.0 | 52.2 |1Commission services’ calculations on the basis of the information in the programme. Sources: Stability programmes (SP); Commission services’ autumn 2004 economic forecasts (COM); Commission services’ calculations. Forecast growth rates in the update have been rounded to the nearest quarter of a percentage point. |On the basis of this assessment, the Commission has adopted the attached recommendation for a Council Opinion on the updated stability programme of the Netherlands and is forwarding it to the Council.Recommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Art. 5 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated stability programme of the Netherlands, 2004-2007THE 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 5(3) thereof,Having regard to the recommendation of the Commission,After consulting the Economic and Financial Committee,HAS DELIVERED THIS OPINION:On [18 January] 2005 the Council examined the updated stability programme of the Netherlands, which covers the period 2004 to 2007. The programme largely complies with the data requirements of the revised “code of conduct on the content and format of stability and convergence programmes”.The macroeconomic scenario underlying the programme envisages that real GDP growth will pick up from 1% in 2004 to 1½% in 2005 and 2½% on average over the rest of the programme period. This scenario seems to reflect rather favourable growth assumptions in view of recent trends in commodity prices, exchange rates and relevant trade volumes. The programme’s projections for inflation appear realistic.On 2 June 2004, the Council decided that an excessive deficit existed in the Netherlands and recommended that this be corrected by 2005. In line with this recommendation, the primary aim of the budgetary strategy of the programme is to bring the general government deficit below the Treaty reference value of 3% of GDP by 2005. To this end, the programme encompasses a frontloaded consolidation effort, concentrated in 2004 and 2005. The budgetary strategy also includes the use of real expenditure ceilings to control expenditure growth and the longer-term objective of sustainable public finances. At the same time, significant public investments will continue, resulting in an average public investment ratio over the programme period of slightly above 3% of GDP, against an EU average of 2.4% of GDP in 2004.The risks to the budgetary projections in the programme appear broadly balanced. In particular, negative risks stemming from the macroeconomic scenario and the budgetary cost of the social agreement between the government and social partners reached on 5 November 2004 are broadly offset by positive risks of the impact of higher oil prices on revenue from the sale of natural gas and the cautious nature of the assumptions on the tax intensity of economic activity in the upturn. In view of this risk assessment, the budgetary stance in the programme seems sufficient to reduce the deficit to below 3% of GDP by 2005 but does not seem to provide a sufficient safety margin against breaching this threshold as a result of normal macroeconomic fluctuations in the following years. It also seems insufficient to ensure that the Stability and Growth Pact’s medium-term objective of a budgetary position of close to balance is achieved within the programme period.The debt ratio is estimated to have reached 56.3% of GDP in 2004, below the 60% of GDP Treaty reference value. The programme projects the debt ratio to increase by two percentage points over the programme period.The budgetary strategy outlined in the programme puts the Netherlands in a relatively favourable position with regard to the long-term sustainability of public finances, despite important projected budgetary costs of an ageing population. Given the projected increase in the old-age dependency ratio, and in the absence of further fiscal consolidation leading to a budgetary position close to balance or in surplus in the medium term, further reforms that would modify the trends in age-related expenditures and raising further participation rates would reduce sustainability risks over the longer term.The economic policies outlined in the programme are partly consistent with the country-specific broad economic policy guidelines in the area of public finances. The budgetary framework with expenditure ceilings is adhered to, and budgetary adjustment to correct the excessive deficit is well under way. However, the expected reduction in the headline deficit in 2006 and especially 2007 is quite slow, while the cyclically-adjusted balance would not show progress towards the medium-term objective of a budgetary position of close-to-balance after 2005.* * *In view of the above assessment, the Netherlands are recommended to continue to ensure that the deficit is brought below 3% of GDP by 2005, and to take the necessary measures to achieve a budgetary position close to balance thereafter.Key projections from the updated stability programme of the Netherlands2003 | 2004 | 2005 | 2006 | 2007 |Real GDP growth (%) HICP inflation (%) General government balance (% of GDP) Primary balance (% of GDP) Cyclically-adjusted balance (% of GDP)1 Government gross debt (% of GDP) | -0.9 2.2 -3.2 -0.3 -1.9 54.1 | 1¼ 1¼ -3.0 -0.1 -1.6 56.3 | 1½ 1¼ -2.6 0.3 -1.2 58.1 | 2½ 1½ -2.1 0.7 -1.2 58.6 | 2½ 1½ -1.9 0.8 -1.3 58.3 |1 Commission services’ calculations applying the commonly agreed methodology to the information in the programme. |[1] OJ L 209, 2.8.1997. 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] Revised Opinion of the Economic and Financial Committee on the content and format of stability and convergence programmes, endorsed by the ECOFIN Council on 10.7.2001.[3] COM(2002) 668 final, 27.11.2002.[4] The 2005 budget was adopted by Parliament with a number of amendments that did not have an appreciable impact on the main budgetary aggregates.[5] OJ L 209, 2.8.1997, 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.


title: Council recommendation of 20 November 2008 on the mobility of young volunteers across the European Union

text:
               13.12.2008

               EN

               Official Journal of the European Union

               C 319/8

      COUNCIL RECOMMENDATION

   of 20 November 2008
   on the mobility of young volunteers across the European Union
   (2008/C 319/03)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community, and in particular Article 149(4) thereof,
   Having regard to the proposal from the Commission,
   Whereas:

               (1)

               Mobility for young volunteers is an integral part of freedom of movement for people, protected by Article 18 of the Treaty.

               (2)

               The Community may adopt measures to promote the mobility of young volunteers by enhancing cooperation between organisers of voluntary activities, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, the present Recommendation does not go beyond what is necessary in order to achieve that objective.

               (3)

               Council Regulation (EEC) No 1408/71 of 14 June 1971 on the application of social security schemes to employed persons and their families moving within the Community (1) and related provisions cover only those volunteers who are insured under national security legislation, with the consequence that issues relating to social protection may sometimes act as a disincentive to engage in voluntary activities in another Member State.

               (4)

               Recommendation 2001/613/EC of the European Parliament and of the Council of 10 July 2001 on mobility within the Community for students, persons undergoing training, volunteers, teachers and trainers (2) invites Member States to take the measures they consider appropriate, in accordance with Community law and in the framework of their national law, to ensure that volunteers and their families are not discriminated against as a result of relevant social protection policies, such as health care and social welfare, which may hinder their mobility.

               (5)

               Recommendation 2001/613/EC and Recommendation 2006/961/EC of the European Parliament and of the Council of 18 December 2006 on transnational mobility within the Community for education and training purposes: European Quality Charter for Mobility (3) refer explicitly to volunteers.

               (6)

               Council Directive 2004/114/EC of 13 December 2004 on the conditions of admission of third-country nationals for the purposes of studies, pupil exchange, unremunerated training or voluntary service (4) provides for the possibility of issuing special residence permits to third-country nationals who apply to be admitted to the territory of a Member State for the purpose of volunteering.

               (7)

               The Resolution of the Council and the Representatives of the Governments of the Member States, meeting within the Council of 15 November 2004, on common objectives for voluntary activities of young people and the Resolution of the Council and the Representatives of the Governments of the Member States, meeting within the Council of 16 November 2007, on implementing the common objectives for voluntary activities of young people (5) set out common objectives for voluntary activities of young people, proposed exchanges of good practice and peer-learning activities to strengthen their implementation, and invited Member States to consider the practical means of measuring progress. The latter Resolution also invited the Commission to make further proposals for the promotion and recognition of voluntary activities of young people.

               (8)

               The European Parliament adopted in April 2008 a report on the ‘Role of Volunteering in Contributing to Economic and Social Cohesion’ which encouraged Member States and regional and local authorities to recognise the value of volunteering in promoting social and economic cohesion, and recommended the promotion of cross-border voluntary projects,

         RECOGNISES THAT:

               1.

               in the framework of this Recommendation, cross-border voluntary activities are characterised as follows: open to all young people, undertaken by their own free will in the general interest, for a sustained period, within a clear framework and in a country other than the country of residence, unpaid or with token payment and/or coverage of expenses. Voluntary activities should not have an adverse effect on potential or existing paid employment, nor should they be seen as a substitute for it;

               2.

               voluntary activities constitute a rich experience in a non-formal educational and informal learning context which enhances young people's professional skills and competences, contributes to their employability and sense of solidarity, develops their social skills, smoothes their integration into society and fosters active citizenship;

               3.

               there is a large variety of voluntary activities throughout Europe, organised by civil society and public authorities. These activities should be preserved and further developed and cooperation between the organisers of such activities should be facilitated;

               4.

               cross-border mobility in Europe can be an important tool to promote education, employment and regional and social cohesion, and to help improve mutual understanding and active participation in society. This is particularly the case for young people in a labour market which increasingly values adaptability and flexibility;

               5.

               local communities hosting young volunteers benefit greatly from their activities, that can take place in a wide array of fields, such as promoting social inclusion, preserving cultural heritage, fostering intergenerational solidarity and protecting the environment. Such activities, at the same time, enrich the cultural diversity of the hosting communities;

               6.

               voluntary activities have been a priority of the open method of coordination in the field of youth, which has already identified a great number of good practices. In this context, the European Voluntary Service (EVS), an action of the EU Youth Programme since 1996, has allowed young people to engage in voluntary service in a variety of areas. The current Youth in Action Programme reinforces this action;

               7.

               despite these efforts, there may still be obstacles to the cross-border mobility of young volunteers across Europe and this Recommendation therefore aims primarily at providing a framework for Member States to intensify their cooperation, without prejudice to the diversity of their national situations;

               8.

               better cooperation between the organisers of voluntary activities in different countries and greater information sharing may stimulate all young Europeans, whatever their nationality, to engage further in voluntary activities in third countries;

               9.

               special attention should be paid to young people with fewer opportunities, as voluntary activities constitute a particularly valuable possibility of mobility for those young people who otherwise would benefit less, or not at all, from mobility programmes.

         HEREBY RECOMMENDS THAT THE MEMBER STATES:

               A.

               promote the mobility of young volunteers across Europe by enhancing the conditions for cooperation between the organisers of voluntary activities in different countries, whether civil society or public authorities, so that every young person shall have the opportunity to volunteer in Europe if she or he wishes to do so;

               B.

               facilitate the development, for that purpose, of the following lines of action, while having due regard for their national frameworks and legislation in the field of voluntary activities, and their overall national priorities, existing local opportunities and public expenditure regimes:

                           1.

                           improve the level of knowledge of voluntary activities within their national territories and transfer this information to the European Commission for further dissemination;

                           2.

                           make information on opportunities for voluntary activities abroad easily accessible to young people and to those active in youth work and in youth organisations;

                           3.

                           make information available to all the relevant actors on the rights and opportunities that arise from existing provisions at European and national level on cross-border voluntary activities;

                           4.

                           promote the exchange of information on the opportunities for voluntary activities in other Member States and the simplification of the procedures to be followed with the aim of making it easier for young volunteers of a Member State to take part in voluntary activities in other Member States;

                           5.

                           adopt, where appropriate, a flexible approach to developing opportunities for cross-border voluntary activities in Europe, for example by:

                                       —

                                       supporting the development of the hosting capacity for cross-border volunteers,

                                       —

                                       supporting the creation of contact points for young European volunteers, in connection, if feasible, with National Agencies of the Youth in Action Programme,

                                       —

                                       promoting the use of existing European mechanisms that can help youth mobility, such as, for instance, mobility cards,

                                       —

                                       promoting the cross-border mobility of those active in youth work and in youth organisations,

                                       —

                                       supporting the development of information and training, for those active in youth work, youth organisations, local authorities and civic services, on the cross-border voluntary activities of young people;

                           6.

                           increase awareness of the importance of intercultural competences and language learning among young people in order to reduce barriers to their cross-border mobility;

                           7.

                           encourage organisers of voluntary activities to develop self-assessment tools, taking into account the EVS experience, in order to ensure the quality of the cross-border voluntary activities they are taking part in;

                           8.

                           encourage organisers in both sending and receiving Member States to cooperate in providing assurances about the protection of young volunteers and service recipients. This should include sufficient information about the voluntary activity, its organisers and the volunteer, so as to enable both parties to make an informed decision about the activity's suitability and meet any legal requirements;

                           9.

                           examine further relevant social protection provisions through the appropriate existing EU fora with a view to making full use of the possibilities under EU and national legislation;

                           10.

                           promote the appropriate recognition of learning outcomes of voluntary activities, in line with Community provisions and within the respective national systems or frameworks for qualifications, where existing;

                           11.

                           promote the use of instruments at EU level that can facilitate cross-border voluntary activities by ensuring the transparency of qualifications, such as Europass, Youthpass and the European Qualifications Framework;

                           12.

                           give particular attention to young people with fewer opportunities in order to enhance their access to voluntary activities and especially to cross-border voluntary activities.

         HEREBY ENDORSES THE COMMISSION'S INTENTION TO:

               1.

               support the Member States in the above tasks by using the EU cooperation framework in the field of youth and, in particular, the open method of coordination and the Youth in Action programme;

               2.

               encourage and organise, in liaison with Member States, the exchange of information and experiences about cooperation between the organisers of voluntary activities in different countries, whether representatives of civil society or public authorities;

               3.

               develop a European Youth Volunteer Portal on voluntary activities based on national youth volunteering portals, databases or specific websites, where they exist;

               4.

               report to the Council four years after the adoption of this Recommendation in order to determine whether the measures proposed are working effectively and to assess the need for further actions.

         Done at Brussels, 20 November 2008.

      (1)  OJ L 149, 5.7.1971, p. 2.

      (2)  OJ L 215, 9.8.2001, p. 30.

      (3)  OJ L 394, 30.12.2006, p. 5.

      (4)  OJ L 375, 23.12.2004, p. 12.

      (5)  OJ C 241, 20.9.2008, p. 1.


Important legal notice

|

52006SC0885

Recommendation from the Commission to the Council to amend the Negotiating Directives for a Stabilisation and Association Agreement with Serbia and Montenegro in order to continue negotiations with the Republic of Serbia  /* SEC/2006/0885 final */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 6.7.2006SEC(2006) 885 finalRECOMMENDATION FROM THE COMMISSION TO THE COUNCILto amend the Negotiating Directives for a Stabilisation and Association Agreement with Serbia and Montenegro in order to continue negotiations with the Republic of Serbia1. EXPLANATORY MEMORANDUMThrough the Stabilisation and Association process (SAp)[1] the EU has set up in 1999 a framework for the establishment of closer relations between the EU and the countries in the Western Balkans, notably through a new category of agreements, the Stabilisation and Association Agreements (SAA).To help overcome the difficulties arising from Serbia and Montenegro’s complex institutional structure and to re-energise Serbia and Montenegro’s progress towards the EU, a “twin-track” approach was proposed by the Commission to negotiate an SAA with the State Union and its two constituent Republics according to the repartition of competences.This approach was subsequently endorsed by the Council and the political leaders of Serbia and Montenegro in October 2004, which in turn enabled the Commission in April 2005 to present its Feasibility Report on an SAA with Serbia and Montenegro.[2] The Report concluded that Serbia and Montenegro were sufficiently prepared to negotiate an SAA but that in order to progress through the various stages of the process, both before and during the negotiations, Serbia and Montenegro must continue to co-operate with the ICTY, and achieve full cooperation without delay. The Commission also considered that the State Union and the two Republics should continue to implement the revised European Partnership priorities through their Action Plans and that they should pay special attention to a number of issues that are particularly relevant for an SAA enumerated in the Report This report was endorsed by the Council on 25 April 2005. In its 2005 Progress Report the Commission could also note further improvements in the areas relevant for the SAA.On a recommendation from the Commission, the Council decided on 3 October 2005 to authorise the Commission to negotiate a Stabilisation and Association Agreement with Serbia and Montenegro in conformity with the Negotiating Directives adopted simultaneously[3]. The negotiation for a Stabilisation and Association Agreement with Serbia and Montenegro was launched on 10 October 2005. Two official rounds, in Belgrade on 7 November 2005 and 5 April 2006, as well as two technical rounds, on 20-21 December 2005 and on 22-23 February 2006, have taken place so far. Good progress has been achieved, reaching provisional agreement on an important number of the provisions of the future SAA.However, the Commission decided on 3 May 2006 to call off the negotiation round on 11 May considering that Serbia and Montenegro did not fully cooperate with the International Criminal Tribunal for the former Yugoslavia (ICTY). The Commission continues to work with Serbia on all other aspects of the Stabilisation and Association process .The referendum on 21 May 2006 in Montenegro resulted in a 55.5% majority for independence. The Montenegrin Parliament consequently adopted on 3 June 2006 a Declaration of Independence. The Republic of Montenegro has withdrawn from the State Union of Serbia and Montenegro.According to Article 60 of the Constitutional Charter, Serbia is the successor state of the State Union of Serbia and Montenegro and inherits its international personality. At the General Affairs and External Relations Council meeting of 12 June 2006 the Council took note of the Parliament of Serbia’s Decision that defines the Republic of Serbia as the continuing State of the State Union of Serbia and Montenegro. Furthermore, the Serbian Government has adopted a Decree taking over the responsibility of the main institutions of the State Union and is proceeding to replace the State Union in international organisations.***Consequently, the current framework of negotiations with the State Union of Serbia and Montenegro for a Stabilisation and Association Agreement will have to be adapted to these developments. The Commission recommends that it continues the negotiations on the basis of the results achieved so far with a view of concluding two separate agreements, with Montenegro and with Serbia respectively.The Commission's Feasibility Report of April 2005 regarding the capacity of Serbia and Montenegro to negotiate a Stabilisation and Association Agreement is still valid in its main conclusions, considering that Serbia and Montenegro were sufficiently prepared to negotiate an SAA. Serbia has so far shown a remarkable capacity to negotiate the Stabilisation and Association Agreement. The Commission will in its progress report this autumn give specific emphasis to Serbia's capacity to properly implement the future Agreement. In the report the Commission will also assess Serbia's capacity to conclude the negotiations in line with Feasibility Report and the Council Conclusions on 3 October 2005.[4]As the Republic of Serbia is the successor state to the State Union, the Council decision of 3 October 2005 needs to be amended to take into account the new legal situation. However, all what is required is a technical adaptation replacing the reference to the State Union by a reference to the Republic of Serbia, and deleting all references to Montenegro. This will allow the Commission to conduct the negotiations, on the basis, as to the substance, of the negotiating directives as adopted on 3 October 2005, continuing, from the point at which they have been interrupted on 3 May 2006. The Serbian side have indicated their readiness to continue negotiations on this basis.This Recommendation has no implications on the Commission's decision on 3 May 2006 to freeze the SAA negotiations as long as Serbia does not fulfil its obligations to fully co-operate with the ICTY. However, the adoption of this Amendment will enable the Commission to rapidly resume the negotiations as soon as the obligations towards the ICTY are fulfilled.When presenting this Recommendation, the Commission shall inform the special committee appointed to assist it (COWEB) of the results of the negotiations so far and will make available the draft SAA text.2. RECOMMENDATIONIn the light of the above, the Commission hereby recommends that the Council:- finds that the authorisation to negotiate a Stabilisation and Association Agreement with the State Union of Serbia and Montenegro, adopted on 3 October 2005, is applicable, henceforth, on the negotiation of a Stabilisation and Association Agreement with the Republic of Serbia;- decides that the Negotiating Directives for a SAA with Serbia and Montenegro adopted on 3 October 2005, be amended as follows:- the references to "the State Union of Serbia and Montenegro" or "the two republics" are replaced with references to the Republic of Serbia,- the provisions referring to the Republic of Montenegro are deleted,- the third paragraph of section 1 and the thirteenth and fourteenth indents in 3.1 are deleted;- last sentence of the 1st indent in section 3.6.2; last sentence in 3.6.6 and last sentence of 2nd indent in 3.7.3 are deleted.- reconfirms that the Commission will be assisted by a special committee composed of representatives of the Member States in this task. [1] with Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia and Serbia and Montenegro. See COM(1999) 235 of 26 May 1999[2] COM(2005) 476 final of 12 April 2005[3] Council Documents 12882/05, 12708/05, 12589/05 and 12590/05[4] Council Document 12591/05


   EN
EN    EN
 ---pagebreak---                     EUROPEAN COMMISSION
                                                   Brussels, 11.3.2011
                                                   SEC(2011) 304 final
         RECOMMENDATION FROM THE COMMISSION TO THE COUNCIL
   to amend Council Decision of 26 July 2010 on the participation of the European Union
      in negotiations of amendments to the 1998 Protocol on Heavy Metals to the 1979
                  Convention on Long-range Transboundary Air Pollution
EN                                                                                EN
 ---pagebreak---                          A.       EXPLANATORY MEMORANDUM
   1.  OBJECTIVES
       The objective of this Recommendation is to amend the Council Decision of 26 July
       2010 on the participation of the European Union in negotiations of amendments to
       the 1998 Protocol on Heavy Metals to the 1979 Convention on Long-Range
       Transboundary Air Pollution (hereafter: the Council Decision) in view of the
       decision of the Convention's Executive Body in December 2010 to broaden the scope
       of the negotiations to include mercury containing products and adjust the timing for
       the finalisation of the negotiations.
   2.  GENERAL CONTEXT
       The European Union is a Party to the UN-ECE Convention on Long-Range
       Transboundary Air Pollution (hereinafter: the Convention) since 15 July 1982 and to
       the Protocol on Heavy Metals (hereinafter: the Protocol) since 3 May 2001. The
       Protocol sets obligations for the Parties that aim at reducing air emissions of heavy
       metals, in particular for cadmium, lead and mercury.
       The Executive Body of the Convention in December 2009 decided to revise the
       Protocol with the aim of facilitating for non-parties to accede to an amended Protocol
       and mandated the Working Group on Strategies and Review (hereinafter: WGSR) to
       start negotiations. At that time negotiations on mercury containing products (Annex
       VI and VII) were excluded from the mandate awaiting further information on
       progress in the recently opened negotiations under UNEP on a global legally binding
       instrument for mercury. The WGSR was mandated to aim at concluding negotiations
       by the end of 2011.
       On 26 July 2010, the Council authorised the Commission to participate on behalf of
       the EU in the negotiations of the revision of the Protocol. The Council Decision was
       adopted in view of the mandate given to the WGSR in December 2009 and therefore
       does not include an authorisation to negotiate obligations on mercury containing
       products (described in Annex VI and VII). In this respect, the Council Decision in
       Article 1 Paragraph 4 stipulates that the Council may, in any case, consider
       reviewing the negotiating directives, should the Executive Body decide to broaden
       the mandate to amend Annex VI, including consequential changes to other parts of
       the Protocol and its Annexes.
       Furthermore, the Commission was authorised to participate on behalf of the EU in
       the negotiations until the end of 2011, in accordance with the original plan of the
       negotiations under the Convention.
   3.  RECENT DEVELOPMENTS
       On 17 December 20101 the Executive Body of the Convention decided to broaden
       the scope of negotiations to include also aspects of mercury containing products (i.e.
       Annex VI and VII) and consequential changes to the other parts of the Protocol. It
       further mandated the WGSR to continue negotiations with the view of finalizing the
       discussions and presenting proposed amendments to the Protocol in 2012 at the
   1
      Report of the twenty-eight session of the Executive Body of the Convention (Section VI B)
EN                                                                                EN
 ---pagebreak---             latest. The main reason for broadening the scope was the positive signals from some
            non-Parties, in particular Belorussia and the Russian Federation, that amendments of
            Annex VI and VII would be important for these countries to accede to an amended
            Protocol. In the light of Article 1 Paragraph 4 of the Council Decision and in
            accordance with Article 218 (3) of the Treaty on the Functioning of the European
            Union, it is necessary for the Commission to make recommendations to the Council
            which shall authorize the Commission to participate in the negotiations on behalf of
            the EU also on the above mentioned additional elements. At the same time the
            Recommendation proposes to adjust the time frame of the authorization in order to
            enable the Commission to participate in the negotiations until the end of 2012.
   4.       EXISTING UNION'S PROVISIONS
            The subject matter of Annexes VI (product measures) and VII (product management)
            is covered by EU legislation. This includes Directive 98/70/EC of the European
            Parliament and of the Council of 13 October 1998 relating to the quality of petrol and
            diesel fuels2 and Directive 2006/66/EC on batteries and accumulators and waste
            batteries and accumulators3 (as amended by Directive 2008/103/EC4).
            Product management measures now listed in Annex VII are covered inter alia by
            Regulation 1103/20105 on the labeling of batteries, Directive 2002/95/EC on
            restriction of the use of certain hazardous substances in electrical and electronic
            equipment6, Directive 2002/96/EC on waste electrical and electronic equipment
            (WEEE)7 and Directive 2007/51/EC relating to restrictions on the marketing of
            certain measuring devices containing mercury8.
                                      B.  RECOMMENDATION
   In the light of the above, the Commission recommends amending the Council Decision as
   follows:
   (a)      In Article 1 Paragraph 1, the words '2010 and 2011' are replaced by '2011 and 2012';
   (b)      Article 1 Paragraph 4 is replaced by the following:
            '4. The Council may review the content of the negotiating directives at any time. The
            Council may, in particular, consider reviewing them in case of relevant developments
            during 2011 and 2012. To this effect, the Commission shall report to the Council on
            the outcome of the negotiations at regular intervals.'
   (c)      Point 1 of the Negotiating Directives set out in the Annex to the Council Decision is
            replaced by the following:
            '1. In the negotiation process under the auspices of the UNECE, the Commission
            shall endeavour to ensure the objectives falling within the scope of the mandate
            given by the Executive Body of the Convention on Long-Range Transboundary Air
   2
           OJ L 350 , 28.12.1998 p. 58
   3
           OJ L 266, 26.9.2006, p. 1
   4
           OJ L 327, 5.12.2008, p. 7
   5
           OJ L 313 30.11.2010, p 3
   6
           OJ L 37, 13.2.2003, p. 19
   7
           OJ L 37, 13.2.2003, p. 24
   8
           OJ L 257, 3.10.2007, p.13
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 ---pagebreak---    Pollution to the Working Group on Strategies and Review (WGSR) on 17 December
   2010, that is:
   "(a) To continue negotiations with the view of finalizing the discussions and
   presenting proposed amendments to the Protocol on Heavy Metals at the thirtieth
   session of the Executive Body in 2012 at the latest. It requested the Working Group
   to consider potential revisions to the Protocol on Heavy Metals that fall within the
   following scope:
         (i)      As a first priority for any revision possibilities for increasing
         ratifications of the Protocol taking into consideration possible options put
         forward by the Task Force on Heavy Metals;
         (ii)     Potential revisions to the text of the Protocol and annexes I to VII,
         taking into consideration possible options put forward by the Task Force on
         Heavy Metals as well as the relevant adopted amendments to the Protocol on
         POPs and the proposed amendments to the Gothenburg Protocol, provided that
         such revisions would not make it more difficult to achieve increased
         ratifications;
         (iii) Possibilities to make the Protocol more adaptable to future
         developments by producing a guidance document on best available techniques
         extracted from annex III and updated as appropriate".
   (b) To focus the negotiations, as requested in 2011,on those proposed amendments
   aimed at increasing ratifications and that address issues raised also in the revision of
   the Gothenburg Protocol.
   (c) To be mindful of the work of the Intergovernmental Negotiating Committee,
   under the auspices of the United Nations Environment Program, when considering
   proposals for amendments to Annexes VI and VII regarding mercury containing
   products (based on the proposal by the European Union and the work of the Task
   Force on Heavy Metals) given that this Intergovernmental Negotiating Committee is
   working towards a legally-binding global instrument to address mercury including
   mercury containing products.'
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