				|

		52014PC0436

			Recommendation for a COUNCIL DECISION abrogating Decision 2010/284/EU on the existence of an excessive deficit in the Czech Republic /* COM/2014/0436 final */

			   	Recommendation for a
COUNCIL DECISION
abrogating Decision 2010/284/EU on the
existence of an excessive deficit in the Czech Republic
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union (TFEU), and in particular Article 126(12)
thereof,
Having regard to the recommendation from
the Commission,
Whereas:
(1)       By Council Decision 2010/284/EU
of 2 December 2009[1],
following a recommendation from the Commission, it was decided that an
excessive deficit existed in the Czech Republic. The Council noted that the
general government deficit in the Czech Republic was planned to reach 6.6% of
GDP in 2009, thus above the 3% of GDP Treaty reference value while the general
government gross debt was expected to reach 35.5% of GDP in 2009, well below
the 60 % of GDP reference value[2].

(2)       On 2 December 2009, in
accordance with Article 126(7) TFEU and Article 3(4) of Council Regulation
(EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation
of the excessive deficit procedure[3],
the Council, based on a recommendation from the Commission, addressed a
recommendation to the Czech Republic with a view to bringing the excessive
deficit situation to an end by 2013 at the latest. The recommendation was made
public.
(3)       In accordance with Article
4 of the Protocol on the excessive deficit procedure annexed to the Treaties,
the Commission provides the data for the implementation of the procedure. As
part of the application of this Protocol, Member States are to notify data on
government deficits and debt and other associated variables twice a year,
namely before 1 April and before 1 October, in accordance with Article 3 of
Council Regulation (EC) No 479/2009 of 25 May 2009 on the application of the
Protocol on the excessive deficit procedure annexed to the Treaty establishing
the European Community[4].

(4)       When considering whether a
decision on the existence of an excessive deficit should be abrogated, the
Council should take a decision on the basis of notified data. Moreover, a
decision on the existence of an excessive deficit should be abrogated only if
the Commission forecasts indicate that the deficit will not exceed the 3% of
GDP Treaty reference value over the forecast horizon[5].
(5)       Based on data provided by
the Commission (Eurostat) in accordance with Article 14 of Regulation (EC) No 479/2009
following the notification by the Czech Republic before 1 April 2014 and
on the Commission 2014 spring forecast, the following conclusions are
warranted:
–
Having peaked at 5.8% of GDP in 2009, the
general government deficit in the Czech Republic was brought down and reached 1.5%
of GDP in 2013, which was the deadline set by the Council. This improvement was
driven by consolidation both on the expenditure and the revenue side, in
particular by increases in indirect taxation and cuts in public investment.
–
The 2014 convergence programme of the Czech Republic projects the general government deficit to increase to 1.8% of GDP in 2014
and to 2.3% of GDP in 2015, while the Commission 2014 spring forecast projects
the general government deficit to reach 1.9% of GDP in 2014 and 2.4% of GDP in
2015, based on a no-policy-change assumption. Thus, the deficit is set to
remain below the reference value of 3% of GDP over the forecast horizon.
–
The structural balance, i.e. the general
government balance adjusted for the economic cycle and net of one‑off and
other temporary measures, improved on average by 1.4% of GDP each year between
2009 and 2013. It is forecast to deteriorate by 1% of GDP in 2014 (to -1.1% of
GDP) and by further 0.8% of GDP in 2015, based on a no‑policy‑change
assumption.
–
The debt-to-GDP ratio
increased by 11.5 pps between 2009 and 2013 to 46%. The Commission 2014 spring forecast
projects the general government gross debt to fall
temporarily to 44.4% of GDP in 2014 and to increase to 45.8% of GDP in 2015.
(6)       The Council recalls that,
starting from 2014, which is the year following the correction of the excessive
deficit, the Czech Republic is subject to the preventive arm of the Stability
and Growth Pact and should maintain its structural balance at or above its
medium-term objective.
(7)       In accordance with Article
126(12) of the Treaty, a Council Decision on the existence of an excessive
deficit is to be abrogated when the excessive deficit in the Member State concerned has, in the view of the Council, been corrected.
(8)       In the view of the
Council, the excessive deficit in the Czech Republic has been corrected and
Decision 2010/284/EU should therefore be abrogated,
HAS ADOPTED THIS DECISION:
Article 1
From an overall assessment it follows that the
excessive deficit situation in the Czech Republic has been corrected.
Article 2
Decision 2010/284/EU is hereby abrogated.
Article 3
This Decision is addressed to the Czech Republic.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 125, 21.5.2010, p. 36.
[2]               The general government
deficit and debt for 2009 were subsequently revised to 5.8% and 34.6% of GDP
respectively.
[3]               OJ L 209, 2.8.1997, p. 6.
[4]               OJ L 145, 10.6.2009, p. 1.
[5]               In line with the “Specifications on the
implementation of the Stability and Growth Pact and Guidelines on the format
and content of Stability and Convergence Programmes”, of 3 September2012. See: http://ec.europa.eu/economy_finance/economic_governance/sgp/pdf/coc/code_of_conduct_en.pdf


Important legal notice

|

52006SC0021

Recommendation for a Council recommendation with a view to bringing an end to the situation of an excessive government deficit  /* SEC/2006/0021 final */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 11.1.2006SEC(2006) 21 finalRecommendation for aCOUNCIL RECOMMENDATIONwith a view to bringing an end to the situation of an excessive government deficit(presented by the Commission)Recommendation for aCOUNCIL RECOMMENDATIONwith a view to bringing an end to the situation of an excessive government deficitTHE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 104(7) thereof;Having regard to the recommendation from the Commission;Whereas:1.  Article 104 of the Treaty lays down an excessive deficit procedure (EDP) to ensure that Member States avoid excessive government deficits or that they correct such deficits when they occur.2.  Pursuant to point 5 of the Protocol on certain provisions relating to the United Kingdom of Great Britain and Northern Ireland, the obligation in Article 104(1) of the Treaty to avoid excessive general government deficits does not apply to the United Kingdom unless it moves to the third stage of economic and monetary union[1]. While in the second stage of economic and monetary union, the United Kingdom is required to endeavour to avoid excessive deficits, pursuant to Article 116(4) of the Treaty.3.  The Stability and Growth Pact is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth conducive to employment creation.4.  The Council has decided on [24 January 2006], in accordance with Article 104(6) of the Treaty, that an excessive deficit exists in the United Kingdom.5.  In accordance with Article 104(7) of the Treaty and Article 3 of Council Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure[2] (which is part of the Stability and Growth Pact), the Council is also required to make recommendations to the Member State concerned with a view to bringing the situation of excessive deficit to an end within a given period. The recommendation has to establish a deadline of six months at the most for effective action to be taken by the Member States concerned to correct the excessive deficit as well as a deadline for the correction of the excessive deficit, which should be completed in the year (budgetary year in the case of the United Kingdom) following its identification unless there are special circumstances. In deciding whether special circumstances exist, “relevant factors” as clarified in Article 2(3) of Regulation (EC) No 1467/97 should be given due consideration. Article 3(4) of Regulation (EC) No 1467/97 also specifies that in a recommendation to a Member State to correct an excessive deficit the Council should request the achievement of a minimum annual improvement in the structural balance of at least 0.5% of GDP as a benchmark.6.  The Commission, in its autumn 2005 forecasts, projected that on the basis of unchanged policies the general government deficit would rise from 3.2% of GDP in financial year 2004/05 to 3.4% in 2005/06, before declining to 3.2% in 2006/07 and 3.0% in 2007/08. Real GDP growth, following an outturn of 3.2% in 2004, was projected to slow to 1.6% in 2005 before recovering to 2.3% in 2006 and 2.8% in 2007. Given the cyclical position evolving from a positive output gap in 2004 to a negative one in 2005, the cyclically-adjusted deficit was projected to decline from a trough of 3½% of GDP in 2004 to just over 3% of GDP in 2005. Thereafter, given a widening of the negative output gap in 2006, the cyclically-adjusted deficit was projected to continue to narrow progressively, reaching just over 2½% of GDP in 2007. As a consequence of the existence of significant actual and projected primary deficits, general government gross debt was projected to increase from 40.8% of GDP in the 2004/05 financial year to reach around 44½% of GDP in 2007/08.7.  Subsequent to the Commission services’ autumn forecasts, the United Kingdom announced fiscal measures in the Pre-Budget Report presented to Parliament on 5 December 2005. In net terms, the United Kingdom authorities’ costings of these measures, compared with the baseline of announced policy (as taken into account in the autumn forecasts), represent an easing of policy by 0.1pp of GDP in the current financial year and a tightening of policy by 0.1pp of GDP in 2006/07. Taking into consideration these measures, which are all structural, the deficit through to 2006/07 is still expected [by the Commission] to exceed 3% of GDP, at around 3.1% of GDP in 2006/07. In the Pre-Budget Report, the UK authorities expect the deficit to be below 3% in 2006/07.8.  In the case of the United Kingdom, the consideration of relevant factors, as clarified in Article 2(3) of Regulation (EC) No 1467/97 and examined in the Commission’s report under Article 104(3) as being on their own merit relatively favourable, does not suggest the existence of special circumstances warranting a departure from the standard deadline for correcting the deficit. In particular, while the negative output gap is expected to widen between 2005 and 2006 by approaching 0.5 percentage point, output in the Commission services’ autumn forecasts was projected to be strengthening from late 2005, with approximately trend-level growth from 2006. The measures announced in the Pre-Budget Report do not materially affect this growth profile. The cyclically-adjusted deficit in the Commission services’ autumn forecasts was assessed to improve by 0.3 percentage point of GDP between 2005 and 2006; this improvement can be expected to be around 0.4 percentage point of GDP, after taking account of the Pre-Budget Report measures. Therefore, on the basis of announced policies, output growth is projected to remain reasonably strong in a situation of moderate improvement of the cyclically-adjusted deficit, but with the actual deficit remaining slightly above the reference value. Against this baseline, the application of the benchmark annual improvement of at least 0.5% of GDP requires only a further slight degree of fiscal effort. Accordingly, since overall growth performance in the United Kingdom remains reasonably satisfactory and the structural improvement in the government balance required to put to an end its excessive deficit is modest, the budgetary correction should be completed at the latest by financial year 2006/07.9.  In general, in the view of the Council, budgetary consolidation measures should secure a lasting improvement in the general government balance, while being geared towards enhancing the quality of the public finances and reinforcing the growth potential of the economy. A budgetary correction in the United Kingdom should be consistent with these objectives.HEREBY RECOMMENDS:-  The United Kingdom authorities should put an end to the present excessive deficit situation as soon as possible and by financial year 2006/07 at the latest, in accordance with Article 3(4) of Council Regulation (EC) No 1467/97.-  The United Kingdom authorities should bring the general government deficit below 3% of GDP in a credible and sustainable manner and to this end ensure an improvement of the structural balance by at least 0.5 percentage point of GDP between the 2005/06 and 2006/07 financial years.The Council establishes the deadline of [24 July 2006] for the United Kingdom authorities to take effective action to this end.In addition, the Council invites the United Kingdom authorities to ensure that, after the excessive deficit has been corrected, budgetary consolidation is sustained towards a medium-term budgetary objective that (i) provides a safety margin with respect to the 3% of GDP deficit limit; (ii) maintains prudent debt ratios taking into account the economic and budgetary impact of ageing populations; and (iii) taking (i) and (ii) into account, allows room for budgetary manoeuvre, in particular considering the needs for public investment.This recommendation is addressed to the United Kingdom of Great Britain and Northern IrelandDone at Brussels,For the CouncilThe President [1] http://europa.eu.int/eur-lex/en/treaties/selected/livre340.html[2] OJ L 209, 2.8.1997, p. 6. Regulation as amended by Regulation (EC) No 1056/2005 (OJ L 174, 7.7.2005, p. 5).


title: Council Recommendation of 9 July 2013 on the National Reform Programme 2013 of Finland and delivering a Council opinion on the Stability Programme of Finland, 2012-2017

text:
               30.7.2013

               EN

               Official Journal of the European Union

               C 217/24

      COUNCIL RECOMMENDATION

   of 9 July 2013
   on the National Reform Programme 2013 of Finland and delivering a Council opinion on the Stability Programme of Finland, 2012-2017
   2013/C 217/07
   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 conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Social Protection Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

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

               (2)

               On 13 July 2010, the Council adopted a recommendation on the broad guidelines for the economic policies of the Member States and the Union (2010 to 2014) and, on 21 October 2010, it adopted a decision on guidelines for the employment policies of the Member States (3), which together form the ‘integrated guidelines’. Member States were invited to take the integrated guidelines into account in their national economic and employment policies.

               (3)

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

               (4)

               On 10 July 2012, the Council adopted a recommendation (4) on Finland’s National Reform Programme for 2012 and delivered its opinion on Finland’s Stability Programme for 2012-2015.

               (5)

               On 28 November 2012, the Commission adopted the Annual Growth Survey, marking the start of the 2013 European Semester for economic policy coordination. Also on 28 November 2012, the Commission, on the basis of Regulation (EU) No 1176/2011, adopted the Alert Mechanism Report, in which it identified Finland as one of the Member States for which an in-depth review would be carried out.

               (6)

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

               (7)

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

               (8)

               On 10 April 2013, the Commission published the results of its in-depth review for Finland, under Article 5 of Regulation (EU) No 1176/2011. The Commission’s analysis leads it to conclude that Finland is experiencing macroeconomic imbalances, which deserve monitoring and require policy action. In particular, the substantial deterioration in the current account position and the weak export performance, driven by industrial restructuring, as well as cost and non-cost competitiveness factors, deserve continued attention.

               (9)

               On 18 April 2013, Finland submitted its 2013 National Reform Programme and its Stability Programme for the period 2012-2017. In order to take account of their interlinkages, the two Programmes have been assessed at the same time.

               (10)

               Based on the assessment of the Stability Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the public finances in Finland have been overall sound and efforts have been made to increase revenues and to control expenditures in order to move towards the medium-term objective (MTO). The macroeconomic scenario underpinning the budgetary projections in the Stability Programme is plausible. The growth projection for 2013 is similar to the Commission services 2013 spring forecast, whereas the one for 2014 is 0,6 percentage points higher than in the Commission services 2013 spring forecast. The objective of the budgetary strategy outlined in the Stability Programme is to balance the central government finances and to bring the central government debt to GDP ratio on a declining path by 2015. The Stability Programme incorporates a change in the MTO from 0,5 % to – 0,5 %. The new MTO is in line with the requirements of the Stability and Growth Pact. The Stability Programme foresees reaching the MTO by 2014 and staying at the MTO until 2017. Based on the (recalculated) structural balance on the basis of information in the Stability Programme, in 2012 Finland did not meet the previously applicable MTO and would not meet the new MTO in 2013.
               The Stability Programme projects the (recalculated) structural budget balance to improve from – 1 % of GDP in 2012 to – 0,9 % of GDP in 2013. Between 2014 and 2017, it would remain between – 0,6 % and – 0,7 % of GDP. In 2012, Finland’s net expenditure increased by 0,4 %, which remains below the applicable reference rate of the expenditure benchmark of the Stability and Growth Pact. Due to the negative real GDP growth in 2012, the low structural adjustment is deemed sufficient. In 2013, Finland’s (recalculated) structural budget balance is improving and its net expenditure is projected to deviate by only 0,1 % of GDP from the expenditure benchmark. In the light of Finland’s large negative output gap, this is deemed to be appropriate. In 2014, Finland’s (recalculated) structural budget balance is forecast to improve further, reaching – 0,6 % of GDP, thus getting sufficiently close to the MTO. Moreover, according to the Commission services 2013 spring forecast, Finland would fully reach it in 2014. Overall, this would entail compliance with the preventive arm of the Stability and Growth Pact. General government gross consolidated debt was 53 % of GDP in 2012 and will remain, according to the Stability Programme, below 60 % of GDP over the Programme horizon. The Stability Programme foresees reductions in the debt level in 2016 and 2017. Long-term sustainability continues to be the most important challenge for fiscal policy. The ageing related sustainability gap, concerning pensions, healthcare and long-term care, has been recognised and needs constant monitoring.

               (11)

               The productivity growth in public services has not matched the productivity growth in the wider economy whilst the burden linked to an ageing population is increasing. Whereas the principles for reforming municipalities have been established, mergers will remain voluntary although financial incentives from central government will be available. It is expected that the ongoing reform of social and health services will not lead to any significant reduction in the current number of healthcare districts.

               (12)

               Measures have been implemented to reduce youth and long-term unemployment such as the Youth Guarantee, the temporary skills programme for young adults and the pilot programme for the long-term unemployed. These programmes were supplemented in 2013 by additional financial support for apprenticeships as part of the Youth Guarantee and are welcome in the context of an expected increase in the rate of unemployment. These measures now need to be implemented with a clear focus on improving the skills level and labour-market position of the target groups. Raising the employment rate of older workers is important to ensure sustainable public finances and to meet the demand for labour in the future. The size of the working age population is declining in Finland. Several measures have been agreed to address pathways to early retirement such as raising the age for access to part-time pension, removal of the reduced pension possibility and raising the age for retirement following unemployment. However, the increase in life expectancy has been more rapid than was envisaged during the 2005 pension reform, and over time the current statutory retirement age range could turn out to be too low and pensions insufficient. In its Stability Programme, the Government committed itself to increasing the effective retirement age to 62,4 years by 2025, which remains low in the context of life expectancy and demographic challenges. Implementing these agreed lines of action remains a priority in the short term.

               (13)

               Regulatory barriers in the services sector in Finland are still restrictive and market concentrations are high in important sectors such as retail. The envisaged changes to the Competition Act in respect of the dominant position of grocery trade operators, the objectives of the programme on healthy competition in terms of greater supervision of this sector, and the removal of unnecessary restrictions on competition in existing legislation, such as that on spatial planning and construction, should help tackle current problems. The merger of the Competition Authority with the Consumer Agency, along with an increase in its budget and wider powers to cover competition neutrality between public and private actors, should also improve the effectiveness and benefits of competition policy, more generally. Competition law fines in Finland have traditionally been low and the survey planned for 2013 should provide a basis for further reforms to improve their deterrent effect.

               (14)

               Productivity growth in Finland continues to lag behind the growth in wages while international competitiveness has weakened, as is shown by a decreasing market share for Finnish exports. Whilst investment in research, development and innovation continues to be high, a critical issue remains the efficiency with which this research is translated into innovations and new high-growth companies, which can penetrate fast-growing export markets and strengthen international competitiveness. In the short term, Finland should implement recently adopted policies and measures to improve the research and innovation system such as the new action plan, and propose further reforms, where relevant, based upon existing evaluations and the foresight report currently under preparation. Prices for energy and labour have been identified among the input prices increasing the costs for the Finnish producers. Wage growth in recent years has been modest due to the current tripartite wage agreement which expires in 2013. It is of concern, therefore, that no new agreement has yet been concluded by the social partners.

               (15)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of Finland’s economic policy. It has assessed the National Reform Programme and Stability Programme, and presented an in-depth review. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy 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 (5) below.

               (16)

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

               (17)

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

               (18)

               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, Finland should also ensure the full and timely implementation of those recommendations,

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

               1.

               Pursue a growth-friendly fiscal policy and preserve a sound fiscal position as envisaged, ensuring compliance with the MTO over the Programme horizon. Continue to carry out annual assessments of the size of the ageing-related sustainability gap and adjust public revenue and expenditure in accordance with long-term objectives and needs. Ensure the cost-effectiveness and sustainability of long-term care and put a stronger focus on prevention, rehabilitation and independent living.

               2.

               Ensure effective implementation of the on-going administrative reforms concerning the municipal structure, in order to deliver productivity gains and cost savings in the provision of public services, including social and healthcare services.

               3.

               Take further steps to increase the employment rate of older workers, including by improving their employability and reducing early exit pathways, increasing the effective retirement age by aligning the retirement age or pension benefits to changes in life expectancy. Implement and monitor closely the impact of ongoing measures to improve the labour-market position of young people and the long-term unemployed, with a particular focus on the development of job-relevant skills.

               4.

               Continue efforts to enhance competition in product and service markets, especially in the retail sector, by implementing the new programme on promoting healthy competition.

               5.

               Boost Finland’s capacity to deliver innovative products, services and high-growth companies in a rapidly changing environment, and continue the diversification of the industry; continue to improve overall energy efficiency in the economy. In the current low-growth environment, support the alignment of real wage and productivity developments whilst fully respecting the role of social partners, and in line with national practices.

      Done at Brussels, 9 July 2013.

            For the Council

            The President

         R. ŠADŽIUS

      (1)  OJ L 209, 2.8.1997, p. 1.

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

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

      (4)  OJ C 219, 24.7.2012, p. 28.

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

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


title: Recommendation for a Council opinion in accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 on the updated convergence programme of Sweden, 2004-2007

text:
Important legal notice

|

52005SC0014

Recommendation for a Council opinion in accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Sweden, 2004-2007  /* SEC/2005/0014 final */

	Brussels, 11.1.2005SEC(2005) 14 finalRecommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Sweden, 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 non-participating Member States, that is, those which have not adopted the single currency, had to submit convergence programmes to the Council and the Commission by 1 March 1999. In accordance with Article 9 of this Regulation, the Council had to examine each convergence 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 convergence programmes, which may also be examined by the Council in accordance with these same procedures.The first convergence programme of Sweden, covering the period 1998-2001, was submitted on 23 December 1998 and assessed by the Council on 8 February 1999. Updates were presented every following year. Sweden submitted the most recent update of its convergence programme on 18 November 2004. The Commission services have carried out a technical evaluation of this update, taking into account the results of the Commission services 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[3], endorsed by the Council. This evaluation is as follows:-  The sixth updated Swedish convergence programme was sent to the Commission on 18 November and covers the period 2004 to 2007. The programme is based on the Budget Bill for 2005 adopted by Parliament on 16 December 2004. The programme complies partly with the data requirements of the “code of conduct on the content and format of stability and convergence programmes”[4] with some data not fully in line with ESA95 standards.-  The 2004 update projects GDP growth of 3.5% in 2004, 3.0% in 2005, 2.5% in 2006 and 2.3% in 2007. Despite high growth in 2004, employment growth was negative but is expected to recover in the coming years. Overall, on the basis of currently available information, the macroeconomic scenario underlying the update seems plausible and is broadly in line with the Commission services’ evaluation including the autumn 2004 forecast. Moreover, for the later years the growth assumptions appear cautious and below estimated potential growth rates.-  Inflation in Sweden has fallen gradually since the beginning of 2003, partly as a result of earlier energy price increases falling outside the base reference period , and is currently clearly below the Riksbank 2% target level. The krona has been relatively stable vis-à-vis the euro in 2003 and 2004 but has appreciated recently, reflecting Sweden’s stable macroeconomic environment and solid growth outlook, large current account surpluses, and market expectations of relatively higher policy rates in the course of 2005. Over the past year, developments in Swedish bond yields have been in line with trends in major bond markets. The positive yield differential between long-term government bonds in Sweden and the euro area fluctuated around 50 basis points over recent years but declined in the course of 2004.-  The budgetary framework in Sweden includes a general government surplus objective of 2% of GDP on average over the cycle, multi-annual nominal ceilings for central government expenditures and a balanced budget requirement for local governments. The update foresees a general government surplus of 0.7% in 2004, 0.6% in 2005, 0.4% in 2006 and 0.9% in the final year, 2007. Both expenditure and revenue ratios are on a gradually declining trend over the projection period. Adjusting for the estimated impact of the cycle using the common methodology, the cyclically-adjusted budget balance is in surplus throughout the projection period. Compared to previous updates, budget targets for 2005 and 2006 have been revised downwards despite growth assumptions now being significantly higher. This can partly be explained by lower projected tax revenues in line with recent outturns. Tax reductions introduced in the 2004 Spring Bill and the 2005 budget also contribute to the projected slight weakening in 2005 and 2006. While the pension system and the local government sub-sector are expected to show stable surpluses, the central government deficit is increasing in 2005 and 2006, thus driving the deterioration in the general government position in these years. In 2007 lower government expenditure is foreseen.-  The risks to the budgetary projections in the programme appear broadly balanced. On the one hand the budgetary projections seem plausible and Sweden has a very good track record in not exceeding set expenditure ceilings. In addition, the financial situation at local government level seems to be improving. On the other hand, tax revenues have been quite volatile over the last few years. In addition, the budgetary margin against the central government expenditure ceilings is very narrow not only for 2004 but, according to the 2005 budget, also for 2005 and 2006. Furthermore, elections scheduled for 2006 might influence the budget for that year. In view of this risk assessment, the budgetary stance in the programmes seems sufficient to maintain a medium-term budgetary position of “close to balance or in surplus” as required by the Stability and Growth Pact throughout the programme period. It also provides a sufficient safety margin against breaching the 3% of GDP deficit threshold with normal macroeconomic fluctuations. However, cyclically-adjusted budget positions as well as average surpluses over the programme period remain below the domestic objective of a surplus of 2% of GDP.-  The gross debt ratio - below 60% of GDP since 2000 - is projected to continue to decline and reach 49% of GDP in 2007. Debt is mainly issued by the central government sector - which runs budget deficits - and the surplus in the pension system is mainly invested in non-government assets, thus slowing the reduction in the gross debt ratio. The debt ratio net of financial assets is projected to improve from some -2% of GDP in 2004 to below -4% in 2007. These projections seem reasonable.-  The programme reviews the government’s wider structural reform programme which focuses on improving the functioning of the labour market, increasing employment and reducing the number of working days lost to sick leave. A broad range of measures have been implemented but the results have so far been mixed. A further step has been taken to complete the tax reform and to ease labour taxation further in the framework of the ‘green tax swap’ strategy, though this has been partially offset by increases in local government tax rates in both 2003 and 2004. Completion of the tax reform and efforts to reach the key policy objectives of raising employment, reducing the number of social security recipients and days of sick-leave continue to have priority within the framework of sound public finances.-  Sweden appears to be in a relatively favourable position with regard to long-term sustainability of the public finances, of which the projected budgetary cost of an ageing population is an important element. A sustainability gap of around 2% of GDP arises if the country wants to ensure full sustainability over time. This is based on the projected increase in the old-age dependency ratio and existing trends in healthcare-related expenditures, labour force participation and employment. Without further reforms modifying these trends, aiming at a budgetary surplus over the next 10 years of 2% of GDP, in line with the government’s budgetary target, will become a key factor in addressing sustainability over the longer term.Comparison of key macroeconomic and budgetary projections2004 | 2005 | 2006 | 2007 |Real GDP (% change) | CP Nov 2004 | 3.5 | 3.0 | 2.5 | 2.3 |COM | 3.7 | 3.1 | 2.9 | n.a. |CP Nov 2003 | 2.0 | 2.6 | 2.5 | n.a. |HICP inflation (%) | CP Nov 20042 | 1.3 | 1.5 | n.a. | n.a. |COM | 1.1 | 1.5 | 1.9 | n.a. |CP Nov 20032 | 1.7 | n.a. | n.a. | n.a. |General government balance (% of GDP) | CP Nov 2004 | 0.7 | 0.6 | 0.4 | 0.9 |COM | 0.6 | 0.6 | 0.8 | n.a. |CP Nov 20033 | 0.6 | 1.4 | 1.9 | n.a. |Primary balance (% of GDP) | CP Nov 20041 | 2.8 | 2.8 | 2.7 | 3.3 |COM | 2.7 | 2.8 | 3.0 | n.a. |CP Nov 2003 | 0.9 | 1.7 | 2.1 | n.a. |Cyclically-adjusted balance (% of GDP) | CP Nov 20044 | 0.8 | 0.5 | 0.5 | 1.2 |COM | 0.7 | 0.4 | 0.6 | n.a. |CP Nov 20034 | 1.3 | 1.8 | 2.0 | n.a. |Government gross debt (% of GDP) | CP Nov 2004 | 51.7 | 50.5 | 50.0 | 49.0 |COM | 51.6 | 50.6 | 49.7 | n.a. |CP Nov 2003 | 51.5 | 50.0 | 48.3 | n.a. |1 In the update, the Swedish authorities provide primary balances excluding net interest and not the conventional gross interest. However, in the table, primary balances are given excluding gross interest using data from the update. 2 % change Dec-Dec 3 For comparability,net lending reported for the 2002 and 2003 updates refers to figures calculated taking into account the full periodisation of taxes (while this accounting change was not formally introduced until 2004). 4 Commission services calculations on the basis of information in the programme. Sources: Updated Swedish Convergence Programme, November 2003 and November 2004 (CP); Commission services autumn 2004 economic forecasts (COM); Commission services calculations |On the basis of this assessment, the Commission has adopted the attached recommendation for a Council Opinion on the updated convergence programme of Sweden and is forwarding it to the Council.Recommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Sweden, 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 9(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 convergence programme of Sweden, which covers the period 2004 to 2007. The programme partly complies with the data requirements of the revised “code of conduct on the content and format of stability and convergence programmes”. In particular, some data are not fully in line with ESA95 standards. Accordingly, Sweden is invited to achieve full compliance with data requirements.The macroeconomic scenario underlying the programme envisages real GDP growth moderating from a strong 3.5% in 2004 to 3.0% in 2005 and an average 2.4% in 2006-07. On the basis of currently available information, this scenario seems to reflect plausible growth assumptions. The programme’s projections for inflation appear realistic.The budgetary framework includes a general government surplus objective of 2% of GDP on average over the cycle, multi-annual nominal ceilings for central government expenditures and a balanced budget balance requirement for local governments. The update foresees general government surpluses of 0.7% in 2004, 0.6% in 2005, 0.4% in 2006 and 0.9% in the final year, 2007. Both expenditure and revenue ratios are on a gradually declining trend over the projection period. Adjusting for the estimated impact of the cycle using the common methodology, the cyclically-adjusted budget balance is in surplus throughout the projection period. However, cyclically-adjusted budget positions as well as average surpluses over the programme period remain below the domestic objective of a surplus of 2% of GDP. While the pension system and the local government sub-sector are expected to show surpluses, the central government deficit is increasing in 2005 and 2006, thus driving the deterioration in the general government position in these years. In 2007 lower government expenditure is foreseen.The risks to the budgetary projections in the programme appear broadly balanced. On the one hand, the budgetary projections seem plausible and Sweden has a very good track record in not exceeding set expenditure ceilings. In addition, the financial situation at local government level seems to be improving. On the other hand, taxes have shown to be quite volatile over the last few years. In addition, the budgetary margin against the central government expenditure ceilings is very narrow not only for 2004 but, according to the 2005 budget, is expected to be so also for 2005 and 2006. Furthermore, elections scheduled for 2006 might influence the budget for that year.In view of this risk assessment, the budgetary stance in the programme seems sufficient to maintain the achievement of surpluses over the 2004 to 2007 period in line with the Stability and Growth Pact’s medium-term objective of a position of close to balance or surplus. It also provides a sufficient safety margin against breaching the 3% of GDP deficit threshold with normal macroeconomic fluctuations throughout the programme period.The debt ratio is estimated to have reached 51.7% of GDP in 2004, well below the 60% of GDP Treaty reference value. The programme projects the debt ratio to decline to 49.0% of GDP by 2007.Sweden appears to be in a relatively favourable position with regard to the long-term sustainability of the public finances, despite important projected budgetary costs of an ageing population. A sustainability gap of around 2% of GDP arises if the country wants to ensure full sustainability over time. This is based on the projected increase in the old-age dependency ratio and existing trends in healthcare-related expenditures, labour force participation and employment. Without further reforms modifying these trends, aiming at a budgetary surplus over the next 10 years of 2% of GDP, in line with the government’s budgetary target, becomes a key factor to address sustainability over the longer term.Key projections from the updated convergence programme of Sweden2003 | 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) | 1.6 1.8 0.5 2.7 1.4 52.0 | 3.5 1.3 0.7 2.8 0.8 51.7 | 3.0 1.5 0.6 2.8 0.5 50.5 | 2.5 n.a 0.4 2.7 0.5 50.0 | 2.3 n.a 0.9 3.3 1.2 49.0 |1Commission 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 andconvergence programmes, endorsed by the ECOFIN Council on 10.7.2001.[3] COM(2002) 668 final, 27.11.2002.[4] Revised Opinion of the Economic and Financial Committee on the content and format of stability and convergence programmes, document EFC/ECFIN/404/01 - REV 1 of 27.6.2001 endorsed by the ECOFIN Council of 10.7.2001.[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 8 March 2005 concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (Seventh EDF) for the financial year 2003

text:
               23.3.2005

               EN

               Official Journal of the European Union

               L 77/13

         COUNCIL RECOMMENDATION
   of 8 March 2005
   concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (Seventh EDF) for the financial year 2003
   (2005/255/EC)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community,
   Having regard to the Fourth ACP-EC Convention, signed at Lomé on 15 December 1989, as amended by the Agreement signed at Mauritius on 4 November 1995,
   Having regard to Internal Agreement 91/401/EEC on the financing and administration of Community aid under the fourth ACP-EEC Convention (1), setting up, amongst others, the Seventh European Development Fund (Seventh EDF) and in particular Article 33(3) thereof,
   Having regard to the Financial Regulation of 29 July 1991 applicable to development finance cooperation under the Fourth ACP-EEC Convention (2), and in particular Articles 69 to 77 thereof,
   Having examined the revenue and expenditure account and the balance sheet relating to the operations of the Seventh EDF as at 31 December 2003 and the Court of Auditors’ Report concerning the financial year 2003 together with the Commission’s replies (3),
   Whereas:

               (1)

               Pursuant to Article 33(3) of the Internal Agreement, the discharge for the financial management of the Seventh EDF is to be given to the Commission by the European Parliament on the recommendation of the Council.

               (2)

               The overall implementation by the Commission of the operations of the Seventh EDF during the financial year 2003 has been satisfactory,

         HEREBY RECOMMENDS
   that the European Parliament give the Commission a discharge in respect of the implementation of the operations of the Seventh EDF for the financial year 2003.

      Done at Brussels, 8 March 2005.

            For the Council

            The President

         J.-C. JUNCKER

      (1)  OJ L 229, 17.8.1991, p. 288.

      (2)  OJ L 266, 21.9.1991, p. 1.

      (3)  OJ C 293, 30.11.2004, p. 315.


title: Recommendation of the European Central Bank of 7 April 2005 to the Council of the European Union on the external auditors of the Nationale Bank van België/Banque Nationale de Belgique (ECB/2005/8)

text:
               15.4.2005

               EN

               Official Journal of the European Union

               C 91/5

      RECOMMENDATION OF THE EUROPEAN CENTRAL BANK

   of 7 April 2005
   to the Council of the European Union on the external auditors of the Nationale Bank van België/Banque Nationale de Belgique
   (ECB/2005/8)
   (2005/C 91/05)
   THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
   Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 27.1 thereof,
   Whereas:

               (1)

               The accounts of the European Central Bank (ECB) and of the national central banks of the Eurosystem are audited by independent external auditors recommended by the Governing Council of the ECB and approved by the Council of the European Union.

               (2)

               The mandate of the current external auditors of the Nationale Bank van België/Banque Nationale de Belgique (hereinafter ‘NBB/BNB’) has expired and will not be renewed. It is therefore necessary to appoint external auditors from the financial year 2005.

               (3)

               The NBB/BNB has selected Ernst & Young Bedrijfsrevisoren/Réviseurs d'Entreprises as its new external auditors in accordance with its public procurement rules, and the ECB considers that the selected auditors fulfil the necessary requirements for appointment.

               (4)

               The mandate of the external auditors will be for three years and may be renewed once,

         HAS ADOPTED THIS RECOMMENDATION:
   It is recommended that Ernst & Young Bedrijfsrevisoren/Réviseurs d'Entreprises should be appointed as the external auditors of the NBB/BNB from the financial year 2005 for a period of three years, this period being renewable once.

      Done at Frankfurt am Main, 7 April 2005.

            The President of the ECB

         Jean-Claude TRICHET


title: Commission Recommendation of 22 December 2008 on the safe storage of metallic mercury no longer used in the chlor-alkali industry (notified under document number C(2008) 8422)

text:
               20.1.2009

               EN

               Official Journal of the European Union

               L 14/10

      COMMISSION RECOMMENDATION

   of 22 December 2008
   on the safe storage of metallic mercury no longer used in the chlor-alkali industry
   (notified under document number C(2008) 8422)
   (Only the English text is authentic)
   (2009/39/EC)
   THE COMMISSION OF THE EUROPEAN COMMUNITIES,
   Having regard to the Treaty establishing the European Community, and in particular Article 211, second indent, thereof,
   Whereas:

               (1)

               The Commission has adopted a Community Strategy Concerning Mercury (1).

               (2)

               Action 9 of the Strategy stipulates the storage of mercury from the chlor-alkali industry and commits the Commission to explore the scope for an agreement with industry.

               (3)

               On 24 June 2005, the Council adopted positive Conclusions on the Strategy, inviting the Commission to pursue the safe storage or disposal of mercury, inter alia, from the chlor-alkali industry to a timescale consistent with the intended phase out of mercury exports.

               (4)

               On 14 March 2006, the European Parliament adopted a Resolution welcoming the Strategy, asking the Commission to take action ensuring that all mercury coming from the chlor-alkali industry is safely stored.

               (5)

               The European Parliament and the Council adopted Regulation (EC) No 1102/2008 of 22 October 2008 on the banning of exports of metallic mercury and certain mercury compounds and mixtures and the safe storage of metallic mercury (2).

               (6)

               Euro Chlor, the association of the chlor-alkali industry in Europe, with the support of its member companies, has adopted a commitment on the safe storage of mercury that is no longer needed in the chlor-alkali production process (decommissioned mercury). All companies of the chlor-alkali industry operating within the Community can sign up to this commitment on objective and non-discriminatory terms.

               (7)

               The Commission is satisfied with the undertakings given by Euro Chlor in its commitment which complements the provisions of the Regulation.

               (8)

               The commitment fulfils the criteria laid down in the Communication from the Commission on Environmental Agreements at Community Level within the Framework of the Action Plan on the Simplification and Improvement of the Regulatory Environment (3),

         HEREBY RECOMMENDS:
   1.   The members of Euro Chlor as well as other companies of the chlor-alkali industry operating within the Community which will adhere to the Euro Chlor Voluntary Agreement on the Safe Storage of Decommissioned Mercury should use utmost care in selecting storage facilities for decommissioned mercury (i.e. metallic mercury that is not required for the future operation of plants based on the mercury cell process) and undertake to have contracts in place with the operators of such storage facilities that are classified and authorised for the disposal of hazardous waste. Such contracts should be based on objective and non-discriminatory requirements.
   2.   The members of Euro Chlor should engage to respect a high standard of technical requirements with respect to the containment of mercury, the preparation and filling operations as well as the loading and unloading of containers.
   3.   Euro Chlor should provide relevant data related to decommissioned mercury on an annual basis.
   This Recommendation is addressed to Euro Chlor.

      Done at Brussels, 22 December 2008.

            For the Commission

         Stavros DIMAS

            Member of the Commission

      (1)  COM(2005) 20 final, 28.1.2005.

      (2)  OJ L 304, 14.11.2008, p. 75.

      (3)  COM(2002) 412 final, 17.7.2002.


title: Recommendation for a COUNCIL REGULATION (EEC) on the conclusion of the Agreement in the form of an exchange of letters amending certain zero-duty tariff quotas opened by the United Kingdom for 1983 in accordance with Protocol 1 of the Agreement between the European Economic Community and the Republic of Finland (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 280
Vol. 1983/0114
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- C O M M I S S I O N OF THE E U R O P E A N COMMUNITIES
                                                               COM(83) 280 f i n a l
                                                              B r u s s e l s , 24 May 1983
                                     Recommendation for a
                                 COUNCIL REGULATION (EEC)
   on the c o n c l u s i o n of the Agreement i n the form of an exchange of
     l e t t e r s amending c e r t a i n zero-duty t a r i f f   quotas opened by the
       U n i t e d Kingdom f o r 1983 i n accordance with P r o t o c o l 1 of the
          Agreement between the European Economic Community and the
                                       Republic of F i n l a n d
                      (submitted to the      Council by the         Commission)
    COM(83) 280         final
 ---pagebreak---                                        Explanatory Memorandum
  1. As for the last four years the United Kingdom has requested that the
       1983 zero-duty t a r i f f quota for coated printing and writing paper,
       including light weight coated mechanical paper weighing less than
       65 gms/m^ (LWC), provided for in Protocol No 1 of the Free Trade Agree
      ment between the European Economic Community (EEC) and Finland be i n
       creased.
 2. The reasons for this request are the following:
      - Since the conclusion of the Agreement in 1973 the demand structur
          for paper products imported from Finla'nd has changed considered y.
     - The demand for light weight coated paper has increased sharp.y since
         1973, in particular for a special type of this paper supplied by
         Finland.
     - There is no production of this type of paper in the United Kingdom
        and although the rest of the Community has been able to supply an'
         increasing proportion of U.K. demand, much of the latter has s t i l l
        to be met by supplies from Finland. P o l i t i c a l l y and economically it
        would not be desirable to impose customs duties - even very minor
        ones - on this traditional commerce during the last year of transition
        towards f u l l free trade.
3. The increase       in the quotas for coated printing and writing paper would be
    for 1983 and would be accomplished through a temporary transfer of
   7.571     tons from the underutilized quota for ex 48.01         C II (kraft paper
   for large capacity sacks) to the quota ex 48.07 D (coated printing and
   writing paper).
 ---pagebreak---                                     - 2 -
4 . As a result of the negooiationa between the Commission and Finland
    the attaohad draft exohange of letters proposes to amend the United
    Kingdom sero-duty t a r i f f quotas for ooated printing and writing paper
    and fcraft paper for large oapaolty saoks oontained i n Annex A to
    Protoool Ko 1 of the above mentioned Free Trade Agreement*
5
  - It is proposed that Mr. Pierre Duohateau signs on "behalf of the
    Community. The Finnish Ambassador oould sign on behalf of his govern
    ment .
°- I f the Council agrees to the pro osed temporary transfer from the zero-
    duty t a r i f f quota ex 48.01 C I I o the zero-duty t a r i f f quota ex 48.07 D
    the corresponding quotas w i l l have to be modified by an exohange of letters.
    A draft regulation to this end i s attached.
 ---pagebreak---        30. 9. 81                             Official Journal of the European Communities                             N'o L 276/1
                                                                       I
                                                  (Acts whose publication is obligatory)
                                         RECOMMENDATION FOR A
                                           C O U N C I L R E G U L A T I O N (EEC)
                     on the conclusion of the Agreement in the form of an exchange of letters
                     amending certain zero-duty tariff quotas opened by the United Kingdom for
                      1 9 8 in accordance with Protocol 1 of the Agreement between the European
                                      Economic Community and the Republic of Finland
     T H E C O U N C I L O F T H E EUROPEAN                                the United Kingdom for 1983 in accordance with
     COMMUNITIES,                                                          Protocol 1 of the Agreement between the European
                                                                           Economic Community and the Republic of Finland is
     Having regard to the Treaty establishing the European
                                                                           hereby approved on behalf of the C o m m u n . y .
     Economic Community, and in particular Article 113
     thereof,
                                                                          The text of the Agreement is attached t< .his Regula
     Having regard to the Agreement between the Euro
                                                                          tion.
    pean Economic Community and the Republic of
    Finland (') signed in Brussels on 5 October 1973,
    Having regard          to the  recommendation       from  the
    Commission,                                                                                Article 2
    Whereas certain zero-duty tariff quotas opened by the
    United Kingdom for 1983 in accordance with                            The President of the Council is hereby authorized to
    Protocol 1 of the Agreement should be amended;                        designate the person empowered to sign the Agree
   whereas the Agreement in the form of an exchange of                    ment in order to bind the Community.
   letters negotiated to this effect should be approved,
   HAS A D O P T E D THIS R E G U L A T I O N :                                                 Article 3
                               Article 1
                                                                         This Regulation shall enter into force on the third day
   The Agreement in the form of an exchange of letters                   following its publication in the Official Journal of
   amending certain zero-duty tariff quotas opened by                    the European Communities.
                  This Regulation shall be binding in its entirety and directly applicable in all Member
                  States.
                  Done at Brussels,
                                                                                For the Council
                                                                                The President
(') O J No L 328, 28. 11. 1973, p. 2.
 ---pagebreak---        N o L 276/2                         Official Journal of the European Communities                             30. 9. 81
                                                            AGREEMENT
                   in the form of an exchange of letters amending certain zero-duty tariff quotas
                   opened by the United Kingdom for 198 3 in accordance with Protocol 1 of the
                   Agreement between the European Economic Community and the Republic of
                                                                Finland
                   Sir,
                    In accordance with Protocol 1 of the Agreement b.tween the European Economic
                    Community and the Republic of Finland signed in Brussels on 5 October 1973, the
                    United K i n g d o m has since 1 January 1974 opened tariff quotas fc>' coated printing paper
                    and writing paper (subheading ex 48.07 D of the C o m m o n C u s o m s Tariff) as well as for
                    kraft paper for large-capacity sacks (subheadinr ex 48.01 C II of the C o m m o n Customs
                    Tariff). The permissible maxima for these quo;is were fixed on the basis of statistics avail
                    able for the period 1968 to 1971.
                    W i t h i n the quota for coated printing and writing paper the United K i n g d o m has estab
                                                                                2
                     lished a subquota for lightweight coated mechanical paper weighing less than 65 g / m
                    (LWC).
                     During recent years the demand for L W C has increased significantly in the United
                     Kingdom and elsewhere. Although the rest of the Community has been able to supply                     an increasing
proportion of United Kingdom demand, much of the latter is s t i l l being met by supplies from Finland. It i s
          therefore proposed that the permissible maximum for the quota which the United K i n g d o m may
                     open i n 1983 for coated printing and writing paper be increased by 7 571 tonnes to a
                     total of 31.278 tonnes, it being understood that the increase will be confined to the
                      subquota for L W C . By way of compensation the permissible maximum for the quota for
                      kraft paper for large-capacity sacks will be reduced for 1983 by 7 571 tonnes to 51.537
                      tonnes. The quota for this type of paper has been under-utilized during recent years.
                      I should be grateful if you would confirm that your Government is in agreement with the
                      above.
                       Please accept. Sir, the assurance of my highest consideration.
                                                                                On behalf of the
                                                                        Council of the European Communities
 ---pagebreak---     '    30. 9. 81                          Official Journal of the European Communities                         L 27o3
                   Sir,
                   I have the honour to acknowledge receipt of your letter of today's date which reads as
                   follows:
                        'In accordance with Protocol 1 of the Agreement between the European Economic
                        Community and the Republic of Finland signed in Brussels on 5 October 1973, the
                        United Kingdom has since 1 January 1974 opened tariff quotas for coated printing
                        paper and writing paper (subheading ex 48.07 D of the Common Customs Tariff) as
                        well as for kraft paper for large-capacity sacks (subheading ex 48.01 C II of the
                        C o m m o n Customs Tariff). The permissible maxima for these quotas were fixed on the
                         basis of statistics available for the period 1968 to 1971.
                         W i t h i n the quota for coated printing and writing paper the United Kingdom has
                         established a subquota for lightweight coated mechanical paper weighing less than
                         65 g/m* (LWC).
                         During recent years the demand for LWC has increased significantly in the United
                         Kingdom and elsewhere. Although the rest of the Conmunity has been able to supply an increasing
Droportion of United Kingdom demand, much of the latter is s t i l l being met by supplies from Finland. It i s therefore
                         proposed that the permissible maximum for the quota which the united Kingdom
                         may open in 1983 for coated printing and writing paper be increased by 7 571 tonnes
                         to a total of 31.278tonnes, it being understood that the increase will be confined to
                         the subquota for LWC. By way of compensation the permissible maximum for the
                         quota for kraft paper for large-capacity sacks will be reduced for 1983 by 7 571 tonnes
                         to 51.537 tonnes. The quota for this type of paper has been under-utilized during
                         recent years.
                         I should be grateful if you would confirm that your Government is in agreement witl'
                         the above.'
                    I have the honour to confirm that my Government is in agreement with the contents of
                    your letter.
                    Please accept, Sir, the assurance of my highest consideration.
                                                                                For the Republic of Finland
 ---pagebreak---                                   Flnanoial eheet
The inorease by 7i571 "t of the duty-free quota would mean a reduotion
of 98.600 UCE i n Customs duties levied on light weight coated paper.
It 1B unlikely that the revenue from duties levied on kraft paper would
inoreaae because of the quota reduotion, since theoe fruotoa were not
f u l l y u t i l i s e d i n the past.


				|

		52014PC0100

			Recommendation for a COUNCIL DECISION approving the conclusion, by the European Commission, on behalf of the European Atomic Energy Community, of the Protocol to the Partnership and Cooperation Agreement establishing a partnership between the European Communities and their Member States, of the one part, and the Russian Federation, of the other part, to take account of the accession of the Republic of Croatia to the European Union /* COM/2014/0100 final - 2014/ () */

			   	EXPLANATORY MEMORANDUM
The attached proposal constitutes the legal
instrument for the Recommendation for a Council Decision approving the
conclusion of the Protocol, by the European Commission, on behalf of the
European Atomic Energy Community, to the Partnership and Cooperation Agreement
establishing a partnership between the European Communities and their Member
States, of the one part, and the Russian Federation of the other part, to take
account of the accession of the Republic of Croatia to the European Union:
(i)      Recommendation for a Council Decision
approving the conclusion of the Protocol, by the European Commission, on behalf
of the European Atomic Energy Community.
This proposal is presented jointly with a:
(ii)     Proposal for a Council Decision on
the signature and provisional application of the Protocol on behalf of the
European Union and its Member States;
(iii)    Proposal for a Council Decision on
the conclusion of the Protocol on behalf of the European Union and its Member States;
According to the Act of
Accession of the Republic of Croatia, the Republic of Croatia is to accede to
international agreements signed or concluded by the European Union and its Member States by means of a protocol to those agreements.
The Partnership and Cooperation Agreement
establishing a partnership between the European Communities and their Member States, of the one part, and the Russian Federation, of the other part was signed on 24
June 1994. The Agreement entered into force on 1 December 1997.
A Council Decision of 14
September 2012[1]
authorised the Commission to open negotiations with the third countries
concerned, in order to conclude the relevant protocols. The negotiations with
the Russian Federation were successfully concluded. The Russian Federation agreed to the Protocol text in its Note Verbale of 4 September, the EEAS
in its Note Verbale of 24 September. This exchange of Notes Verbales, requested
by the Russian Federation, replaced the initialling of the Protocol.
The proposed Protocol incorporates the Republic of Croatia as contracting party to the Agreement and commits the EU to provide for the
authentic version of the Agreement in the new official language of the EU.
The Protocol
contains a clause specifying that the Agreement is amended following the entry
into force of the Treaty of Accession of the Republic of Croatia to the
European Union on 1 July 2013.
The Partnership and Cooperation
Agreement with the Russian Federation in particular aims to promote trade and
investment, including trade in transport services, and establishes a framework
for cooperation in different sectors which is limited to an overall economic,
financial and technical cooperation. Therefore, next to the applicable
procedural legal bases, the Protocol should be signed and concluded by the
European Union on the basis of Article 6(2) of the Act of
Accession of the Republic of Croatia on the one hand and of Articles 91,
100(2), 207 and 212 TFEU of the other hand.
The Commission
has judged the results of the negotiations to be satisfactory and requests the
Council:
–
to recommend a Council Decision approving the
conclusion, by the European Commission, on behalf of the European Atomic Energy
Community, of the Protocol to the Partnership and Cooperation Agreement
establishing a partnership between the European Communities and their Member
States, of the one part, and the Russian Federation, of the other part, to take
account of the accession of the Republic of Croatia to the European Union.
The European
Parliament will be called upon to give its consent to this Protocol.
Recommendation for a
COUNCIL DECISION
approving the conclusion, by the European
Commission, on behalf of the European Atomic Energy Community, of the Protocol
to the Partnership and Cooperation Agreement establishing a partnership between
the European Communities and their Member States, of the one part, and the
Russian Federation, of the other part, to take account of the accession of the
Republic of Croatia to the European Union

THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing
the European Atomic Energy Community, and in particular the second paragraph of
Article 101 thereof,
Having regard to the recommendation from
the European Commission,
Whereas:
(1)       Under the terms of Article
6(2) of the Act of Accession of the Republic of Croatia, the accession of the
Republic of Croatia to the Partnership and Cooperation Agreement, establishing
a partnership between the European Communities and their Member States, of the
one part, and the Russian Federation, of the other part[2] (‘the Agreement’) is to
be agreed by means of a Protocol to the Agreement (‘the Protocol’).
(2)       On 14 September 2012, the
Council authorised the Commission to open negotiations with the third countries
concerned[3].
The negotiations were successfully concluded with the Russian Federation. This was confirmed in an exchange of letters on 24 September 2013.
(3)       The conclusion, by the
Commission, of the Protocol should be approved as regards matters falling
within the competence of the European Atomic Energy Community.
(4)       The signature and
conclusion of the Protocol are subject to a separate procedure as regards
matters falling within the competence of the Union and its Member States,
HAS ADOPTED THIS DECISION:
Sole
Article
The conclusion by the European Commission,
on behalf of the European Atomic Energy Community, of the Protocol to the
Partnership and Cooperation Agreement establishing a partnership between the
European Communities and their Member States, of the one part, and the Russian
Federation, of the other part, to take account of the accession of the Republic
of Croatia to the European Union, is hereby approved.
The text of
the Protocol is attached to the Decision on its signature.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               Council decision authorising
the opening of negotiations for the adaptation of agreements signed or
concluded between the European Union, or the European Union and its Member
States, with one or more third countries or international organisations, in
view of the accession of the Republic of Croatia to the European Union (Council
doc. 13351/12 LIMITED).
[2]               OJ L 327, 28.11.1997, p. 3.
[3]               Council decision authorising the opening of
negotiations for the adaptation of agreements signed or concluded between the
European Union, or the European Union and its Member States, with one or more
third countries or international organisations, in view of the accession of the
Republic of Croatia to the European Union (Council doc. 13351/12 LIMITED).


title: Recommendation of the European Central Bank of 7 April 2005 to the Council of the European Union on the external auditors of the Bank of Greece (ECB/2005/7)

text:
               15.4.2005

               EN

               Official Journal of the European Union

               C 91/4

      RECOMMENDATION OF THE EUROPEAN CENTRAL BANK

   of 7 April 2005
   to the Council of the European Union on the external auditors of the Bank of Greece
   (ECB/2005/7)
   (2005/C 91/04)
   THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
   Having regard to the Statute of the European System of Central Banks and of the European Central Bank, and in particular Article 27.1 thereof,
   Whereas:

               (1)

               The accounts of the European Central Bank (ECB) and of the national central banks of the Eurosystem are audited by independent external auditors recommended by the Governing Council of the ECB and approved by the Council of the European Union.

               (2)

               Under the law of Greece, the same external auditor may not be appointed for more than four financial years. Accordingly, the mandate of Charalambos Stathakis, who is one of the two current external auditors, may not be renewed. The Bank of Greece may retain Ernst & Young (Hellas) Certified Auditors SA as its external auditors, provided that the partner in charge is rotated.

               (3)

               The Bank of Greece has decided that Ernst & Young (Hellas) Certified Auditors SA should be its sole external auditor for the financial year 2005, and the ECB considers that this company fulfils the necessary requirements for such appointment.

               (4)

               The existing mandate of the external auditors should continue and be for a renewable period of one year,

         HAS ADOPTED THIS RECOMMENDATION:
   It is recommended that Ernst & Young (Hellas) Certified Auditors SA should be appointed as the external auditors of the Bank of Greece for the financial year 2005 and that this appointment should be renewable for one year.

      Done at Frankfurt am Main, 7 April 2005.

            The President of the ECB

         Jean-Claude TRICHET


title: Council Recommendation of 12 July 2011 on the National Reform Programme 2011 of the United Kingdom and delivering a Council opinion on the updated Convergence Programme of the United Kingdom, 2011-2014

text:
               23.7.2011

               EN

               Official Journal of the European Union

               C 217/12

         COUNCIL RECOMMENDATION
   of 12 July 2011
   on the National Reform Programme 2011 of the United Kingdom and delivering a Council opinion on the updated Convergence Programme of the United Kingdom, 2011-2014
   2011/C 217/04
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,
   Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 9(3) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   After consulting the Economic and Financial Committee,
   Whereas:

               (1)

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

               (2)

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

               (3)

               On 12 January 2011, the Commission adopted the first Annual Growth Survey, marking the start of a new cycle of economic governance in the EU and the first European semester of ex-ante and integrated policy coordination, which is anchored in the Europe 2020 strategy.

               (4)

               On 25 March 2011, the European Council endorsed the priorities for fiscal consolidation and structural reform (in line with the Council's conclusions of 15 February and 7 March 2011 and further to the Commission's Annual Growth Survey). It underscored the need to give priority to restoring sound budgets and fiscal sustainability, reducing unemployment through labour market reforms and making new efforts to enhance growth. It requested Member States to translate these priorities into concrete measures to be included in their Stability or Convergence Programmes and National Reform Programmes.

               (5)

               On 28 April 2011, the United Kingdom submitted its 2011 Convergence Programme update covering the period 2011-2014 and its 2011 National Reform Programme. In order to take account of interlinkages, the two programmes have been assessed at the same time. For the first time the UK's Convergence Programme contained economic and fiscal forecasts produced by the new, independent Office for Budget Responsibility (OBR), which is a welcome improvement to the UK's fiscal framework.

               (6)

               The UK was particularly exposed to the international financial crisis because of its large, globally-integrated financial sector and high levels of household debt. GDP fell by 0,1 % in 2008 and 4,9 % in 2009. The UK government intervened massively to support the banking sector, and provided extraordinary additional liquidity to the whole sector. The government deficit rose by 8,5 percentage points in two years to 11,2 % of GDP in 2009. Unemployment rose from 5,3 % in 2007 to 7,6 % in 2009. Quarterly growth returned in the fourth quarter of 2009 although output remains below its pre-crisis peak. The short-term outlook is for moderate growth driven by strong corporate investment and an exchange-rate driven rebound in net exports. However, growth will be held back by weak or negative growth in household and government consumption. Inflation is expected to remain well above the 2 % official target during 2011, reflecting increases in value added tax and higher import and energy prices, before falling in 2012. High inflation is likely to erode real incomes as wage growth remains low. The main downside risks to the forecast are that the rebounds in corporate investment or net exports may not materialise and that persistent high inflation may prevent the use of monetary policy to offset lower government spending.

               (7)

               Based on the assessment of the updated Convergence Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections is plausible except for 2012 when it may be slightly too favourable. The Convergence Programme does not include a medium-term objective (MTO) as foreseen by the code of conduct although it can be derived from targets therein. The objective of the budgetary strategy is to bring down the deficit from 9,9 % in 2010-2011 to 1,7 % in 2015-2016, mainly based on expenditure restraint, a strategy consistent with evidence on fiscal consolidations that have supported growth. The Convergence Programme plans to bring the deficit below the 3 % reference value by 2014-2015, the deadline set by the Council. Starting from a debt ratio of 78,7 % in 2010-2011, the budgetary projections in the Convergence Programme foresee the debt ratio increasing to 87,2 % by 2013-2014 before beginning to fall slowly. The average annual fiscal effort over the period of 2010-2011 to 2014-2015 is 1,6 %. This is slightly below that recommended by the Council in December 2009 (1,75 % of GDP) but is nevertheless appropriate given that the effort is being pursued from a significantly lower-than-expected budget deficit in 2009-2010 and is therefore consistent with reducing the headline deficit to below the reference value by 2014-2015. According to the Commission's latest assessment, the risks with regard to the long-term sustainability of public finances appear to be high.
               The long-term cost of ageing is above the EU average and the current budgetary position compounds the cost of ageing. Based on the current fiscal position, debt would increase to 128 % of GDP by 2020. However, the full implementation of the Convergence Programme would be enough to put debt on a downward path but would still be above 80 % by 2020. Beyond its consolidation plans, the UK Government has announced measures which will support long-run sustainability; these include bringing forward the date of the planned rise in the State Pension Age from 65 to 66 and changes to the method of up-rating certain benefits and tax thresholds.

               (8)

               Implementing the proposed fiscal consolidation remains a major challenge. Ensuring no slippage from published spending plans will be vital to re-establishing a sustainable fiscal position. Subject to this, the historically low rates of public infrastructure investments, particularly as regards transport, mean that growth-enhancing expenditure should be prioritised. Ensuring sufficient primary surpluses over the medium-term, as already envisaged in the Convergence Programme, will improve the sustainability of public finances.

               (9)

               The UK's flexible labour market allowed it to cope reasonably well with the large contraction in GDP during the crisis. However, increases in unemployment were heavily concentrated on young people: between 2008 and 2010 youth unemployment increased from 15 % to almost 20 %. Poor labour market outcomes for young people are linked to more general and structural shortcomings in skills provision. The proportion of UK 18 to 24-year-olds who are early leavers from education and training, at 15,7 %, is higher than the EU average of 14,4 %. While the share of people aged 25-64 having attained high skill levels is particularly high in the UK, there are weaknesses at intermediate skills level, with the share of people in this group currently below the EU average. A further key challenge for the UK labour market is the significant proportion of children living in jobless households: at 17,5 % this is the highest level in the EU, where the overall average is 10,2 %. The problem is specifically acute for single-parent households, reflecting poor financial incentives and lack of viable childcare options: over 32 % of people with care responsibilities are inactive or work part-time due to lack of care services (this is 4 percentage points higher than the EU average).

               (10)

               The UK experienced a house price boom in the decade before the crisis. Prices fell sharply after the crisis hit but have since recovered partially and remain at historically high levels. Transaction levels collapsed and have remained very low. The house price boom contributed to the large increases in household indebtedness and unsustainable growth in household consumption in the pre-crisis decade. The collapse in housing transactions drove corresponding falls in receipts on housing transaction taxes, contributing to the worsening of the UK fiscal position. Weaknesses in the housing market also help explain the UK's high expenditure on housing benefits and high share of the population in state-subsidised housing. The UK has announced initial reforms to its planning system and to mortgage regulation. Reflecting the importance of this challenge to all sectors of the UK economy, there is a case to build on these measures to develop a more comprehensive package of reforms including in the mortgage market and property taxation to address these issues.

               (11)

               A recovery in private investment would be an essential component of the necessary rebalancing of the economy away from domestic consumption and help drive productivity gains. Surveys suggest that credit availability and cost is a significant constraint on investment and expansion plans in the private sector, notably for smaller firms reliant on bank financing. The annual rate of growth in lending to small and medium-sized enterprises (SMEs) has been negative since late 2009, with lending to small businesses contracting even more steeply. Moreover, whilst spreads over reference rates seem to have stabilised for medium-sized businesses, they have increased somewhat for small businesses. The UK has recently put in place a number of measures to improve SME access to finance including state sponsored investment vehicles and reaching an agreement with UK banks requiring them to increase their gross lending to SMEs. It is important to also recognise challenges on the demand side, and that businesses will also need to play their part in taking up the schemes made available to them. To develop a solution which can continue to work without regular government intervention, there is a case for further reform with the aim of improving competition in the banking sector and facilitating the further development of markets for non-bank finance accessible to small and medium-sized firms.

               (12)

               The Commission has assessed the Convergence Programme and National Reform Programme. It has taken into account not only their relevance for sustainable fiscal and socio-economic policy in the UK but also their conformity with EU rules and guidance, given the need to reinforce the overall economic governance of the EU by providing EU level input into future national decisions. It considers that the Programmes set out ambitious measures to reduce the deficit and encourages the government to proceed as planned. Further steps should also be taken to reform the housing market, reduce youth unemployment, early school leaving, address the situation of children living in workless households and improve credit availability to the private sector.

               (13)

               In light of this assessment, also taking into account the Council Recommendation under Article 126(7) of the Treaty on the Functioning of the European Union of 2 June 2010, the Council has examined the 2011 update of the Convergence Programme of the United Kingdom and its opinion (3) is reflected in particular in recommendations (1) and (2) below. Taking into account the European Council conclusions of 25 March 2011, the Council has examined the National Reform Programme of the United Kingdom,

         HEREBY RECOMMENDS that the United Kingdom take action within the period 2011-2012 to:

               1.

               Implement the planned fiscal consolidation aiming at a deficit of 6,2 % of GDP in 2012-2013, in line with Council recommendations on correcting the excessive deficit, and setting the high public debt ratio on a downward path when the excessive deficit is corrected by the end of the programme period. Ensure no slippage from the ambitious spending reduction targets, thereby strengthening long-term sustainability; and, subject to this, prioritise growth-enhancing expenditure.

               2.

               Develop a programme of reform which addresses the destabilising impact of the house price cycle on public finances, the financial sector and the economy, with a view to alleviating problems of affordability and the need for state subsidy for housing. A broad set of measures and policy instruments could be considered including reforms to the mortgage market, financial regulation, property tax and the planning system in order to prevent excessive volatility.

               3.

               Take steps by 2012 to ensure that a higher share of young people enter the labour market with adequate skills and to improve the employability of 18 to 24-year-olds who left education or training without qualifications. Address skill shortages by increasing the numbers attaining intermediate skills, in line with labour market needs.

               4.

               Take measures, within current budgetary plans, to reduce the number of workless households by targeting those who are inactive because of caring responsibilities, including lone parents.

               5.

               Implement measures already announced and continue to work to improve the availability of bank and non-bank financing to the private sector and in particular to SMEs while recognising potential challenges on the demand side. Encourage competition within the banking sector and explore with the market ways to improve access to non-bank financing such as venture and risk capital and debt issued on public markets.

      Done at Brussels, 12 July 2011.

            For the Council

            The President

         J. VINCENT-ROSTOWSKI

      (1)  OJ L 209, 2.8.1997, p. 1.

      (2)  Maintained for 2011 by Council Decision 2011/308/EU of 19 May 2011 on guidelines for the employment policies of the Member States (OJ L 138, 26.5.2011, p. 56).

      (3)  Foreseen in Article 9(3) of Regulation (EC) No 1466/97.