title: Council Recommendation of 14 July 2015 on the 2015 National Reform Programme of Bulgaria and delivering a Council opinion on the 2015 Convergence Programme of Bulgaria

text:
               18.8.2015

               EN

               Official Journal of the European Union

               C 272/28

         COUNCIL RECOMMENDATION
   of 14 July 2015
   on the 2015 National Reform Programme of Bulgaria and delivering a Council opinion on the 2015 Convergence Programme of Bulgaria
   (2015/C 272/08)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,
   Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 9(2) thereof,
   Having regard to Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (2), and in particular Article 6(1) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the resolutions of the European Parliament,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Social Protection Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

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

               (2)

               On 14 July 2015, the Council, on the basis of the Commission's proposals, adopted a Recommendation on the broad guidelines for the economic policies of the Member States and the Union and, on 21 October 2010, it adopted a decision on guidelines for the employment policies of the Member States (3). Together these form the ‘integrated guidelines’ which Member States were invited to take into account in their national economic and employment policies.

               (3)

               On 8 July 2014, the Council adopted a Recommendation (4) on Bulgaria's National Reform Programme for 2014 and delivered its opinion on Bulgaria's updated Convergence Programme for 2014.

               (4)

               On 28 November 2014, the Commission adopted the Annual Growth Survey, marking the start of the 2015 European Semester for economic policy coordination. On the same day, on the basis of Regulation (EU) No 1176/2011, the Commission adopted the Alert Mechanism Report, in which Bulgaria was identified as one of the Member States for which an in-depth review would be carried out.

               (5)

               On 18 December 2014, the European Council endorsed the priorities for fostering investment, intensifying structural reforms and pursuing responsible growth-friendly fiscal consolidation.

               (6)

               On 26 February 2015, the Commission published its 2015 country report for Bulgaria. This assessed Bulgaria's progress in addressing the country-specific recommendations adopted on 8 July 2014. The country report also includes the results of the in-depth review under Article 5 of Regulation (EU) No 1176/2011. The Commission's analysis leads it to conclude that Bulgaria is experiencing macroeconomic imbalances. In particular, the financial sector turbulence in 2014 has raised concerns about banking practices in the domestically owned part, which may have significant implications for the financial sector and overall macroeconomic stability. In addition, the still negative (albeit improving) external position, corporate overleveraging and weak labour market adjustment continue to pose macroeconomic risks and deserve close attention.

               (7)

               On 30 April 2015, Bulgaria submitted its 2015 National Reform Programme and its 2015 Convergence Programme. In order to take account of their interlinkages, the two programmes have been assessed at the same time.

               (8)

               Bulgaria is currently in the preventive arm of the Stability and Growth Pact. In its 2015 Convergence Programme, the Government plans to keep the headline deficit at 2,8 % of GDP in 2015. Thereafter, the Government sets out its intention to gradually reduce the deficit so as to reach a level of 1,3 % of GDP in 2018. According to the Convergence Programme, the Government plans to meet the medium-term objective — a structural deficit of 1 % of GDP — in 2018. The government debt-to-GDP ratio is expected to increase over the programme period, reaching almost 31 % in 2018. The macroeconomic scenario underpinning these budgetary projections is plausible. However, measures to support the planned deficit targets from 2016 onwards have not been sufficiently specified. Based on the Commission's 2015 spring forecast, net expenditure growth is forecast to respect the benchmark in 2015. However, taking into account the deterioration of the structural balance (1,7 % of GDP in 2014), there is a risk of some deviation from the requirement over the period 2014-2015. In 2016, there is a risk of a significant deviation, as net expenditure growth exceeds the benchmark by 0,9 % of GDP. Hence, further measures will be needed for both years. Based on its assessment of the Convergence Programme and taking into account the Commission's 2015 spring forecast, the Council is of the opinion that there is a risk that Bulgaria will not comply with the provisions of the Stability and Growth Pact.

               (9)

               Tax compliance continues to be a major challenge in Bulgaria. There is a need for a comprehensive tax compliance strategy based on a thorough analysis of risks, systematic impact assessment of measures already taken and close coordination between the various tax collection agencies.

               (10)

               The Bulgarian healthcare system faces several major challenges, including poor health outcomes, low funding and serious inefficiencies in the use of resources. Life expectancy is considerably below the EU average and life expectancy at birth is among the lowest in the Union. The system continues to be based on an oversized hospital sector. Although funding of primary and outpatient care has slightly gained significance in nominal terms in recent years, it is still quite limited. The healthcare fund is contractually obliged to reimburse hospitals for treatments at predefined prices, which is incentivising hospitals to provide inadequately targeted medical care. A National Health Strategy was adopted in 2014 but it lacks a clear implementation plan.

               (11)

               Banking sector turmoil in the summer of 2014 revealed institutional and supervisory weaknesses. The supervisory body's failure to detect significant problems in the fourth largest bank in Bulgaria, Corporate Commercial Bank (KTB), points to shortcomings in financial sector supervisory practices and oversight of concentration risk. This has undermined the credibility of banking supervision, in turn also raising doubts as to the health of other parts of the financial sector. The liquidity crisis in June 2014 prompted an in-depth audit in KTB that led to KTB's banking licence being revoked. The guaranteed deposits, amounting to 4,4 % of GDP, were paid out only after a significant delay.

               (12)

               Active labour market policies are insufficiently developed in terms both of coverage and of targeting. Fragmentation of agencies represents a major challenge in delivering benefits and services to the unemployed and the inactive. Coordination between employment offices and the social assistance directorate is not geared to an efficient and integrated delivery of measures to help the most vulnerable. Bulgaria has a high proportion of young people neither in employment nor in education or training who are not in touch with the employment services and are thus outside the scope of standard labour market activation measures. Most of Bulgaria's unemployment is long-term, indicating that it is more structural than cyclical. Although the Bulgarian minimum wage is the lowest in the Union in nominal terms, it has increased substantially since 2011 and the Government plans further significant increases in the coming years. Such sharp discretionary shifts in the Government's wage-setting policy could be distortive for the labour market. Moreover, there are no clear guidelines for minimum-wage setting, so the system creates uncertainty as to whether the right balance will be struck between supporting employment and competitiveness on the one hand and safeguarding labour income on the other. Poverty and social exclusion remain a concern, as Bulgaria has one of the highest rates of material deprivation in the Union. The Roma population faces particularly high levels of poverty and social exclusion. The majority of young Roma are neither in employment nor in education or training. Pre-school and kindergarten enrolment of Roma children is low and almost a quarter of those aged 7-15 are not in the education system.

               (13)

               The low quality of the education and training systems and their limited relevance to the labour market hamper the supply of a suitably skilled labour force to the economy. The rate of adult participation in lifelong learning is one of the lowest in the Union. After years of delay, Bulgaria has still not adopted the reform of the School Education Act and implementation of the strategy on early school leaving is still at an early stage. The National Strategy on Vocational Education and Training (2014-2020) and a new strategy on higher education were adopted in 2015. Implementation of these strategies should help to improve the education system, make it more relevant to the economy and promote innovation and job creation.

               (14)

               In spring 2015, the Government presented a proposal for reform of the pension system. The adequacy and sustainability of the pension system depend on reforms that incentivise and support longer working lives with fewer interruptions. In 2013, 1,2 million pensioners were found to be receiving pensions below the national poverty line. The key drivers behind low pension entitlements are early retirement and short contribution periods. The rapid ageing of Bulgarian society is likely to aggravate the situation in the future. It is therefore appropriate for Bulgaria to further contain growth in age-related expenditure to contribute to the long-term sustainability of public finances, including through implementation of robust pension reforms.

               (15)

               A key building block for an investor-friendly business environment is an independent, high-quality and efficient judicial system and effective mechanisms to fight corruption. Key challenges in this area include a lack of overall coordination, institutional shortcomings and a weak track-record on securing final convictions in court. These important policy areas will be covered by the Cooperation and Verification Mechanism.

               (16)

               The insolvency framework in Bulgaria has been ineffective, increasing uncertainty among market participants and reducing the country's overall attractiveness to investors. Insolvencies take longer than in comparable countries and the claim recovery rate is low. The need for an efficient framework for handling insolvencies should also be seen in the light of the high indebtedness of non-financial corporations in Bulgaria and the role of such a framework in facilitating the deleveraging process.

               (17)

               Strategies for the reform of the public administration and the introduction of e-government were adopted in 2014. Their implementation will need a strong policy steer and coordination. Despite past efforts, the quality of public services remains low. The insufficient development of e-government limits efforts to increase transparency and reduce the administrative burden. A particular problem concerns public procurement procedures, which are hampered by a frequently changing legal framework and insufficient administrative capacity. The ex ante verification of tender procedures is often performed in a formalistic way. At the same time, procurement procedures are subject to overlapping ex post controls, sometimes resulting in divergent findings. The lack of transparency in the bidding process is also due to failure to complete the installation of the full range of e-procurement platforms. Irregularities in public procurement procedures have resulted in significant delays in implementing EU fund programmes in the past, have a negative impact on the business environment and hold back the much needed improvements in infrastructure. A multiannual strategy adopted in July 2014 to address the key weaknesses in the public procurement system sets out a clear timetable for concrete steps to be taken in 2015 and 2016. This needs to be implemented.

               (18)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of Bulgaria's economic policy and published it in the 2015 country report. It has also assessed the Convergence Programme and the National Reform Programme and the follow-up given to the recommendations addressed to Bulgaria in previous years. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Bulgaria but also their compliance with EU rules and guidance, given the need to strengthen the overall economic governance of the Union by providing EU-level input into future national decisions. The recommendations under the European Semester are reflected in recommendations 1 to 5 below.

               (19)

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

               (20)

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

         HEREBY RECOMMENDS that Bulgaria take action in 2015 and 2016 to:

               1.

               Avoid a structural deterioration in public finances in 2015 and achieve an adjustment of 0,5 % of GDP in 2016. Take decisive measures to improve tax collection and address the shadow economy, based on a comprehensive risk analysis and evaluation of past measures. Improve the cost-effectiveness of the healthcare system, in particular, by reviewing the pricing of healthcare and strengthening outpatient care and primary care.

               2.

               By December 2015, complete a system-wide independent asset-quality review and a bottom-up stress test of the banking sector, in close cooperation with European bodies. Perform a portfolio screening for the pension funds and insurance sectors. Review and fortify banking and non-banking financial sector supervision, including by strengthening the bank-resolution and deposit-guarantee frameworks. Improve corporate governance in financial intermediaries, including by tackling concentration risk and related-party exposures.

               3.

               Develop an integrated approach for groups at the margin of the labour market, in particular older workers and young people not in employment, education or training. In consultation with the social partners and in accordance with national practices, establish a transparent mechanism for setting the minimum wage and minimum social security contributions in the light of their impact on in-work poverty, job creation and competitiveness.

               4.

               Adopt the reform of the School Education Act, and increase the participation in education of disadvantaged children, in particular Roma, by improving access to good-quality early schooling.

               5.

               With a view to improving the investment climate, prepare a comprehensive reform of the insolvency framework drawing on international best practice and expertise, in particular to improve mechanisms for pre-insolvency and out-of-court restructuring.

      Done at Brussels, 14 July 2015.

            For the Council

            The President

         P. GRAMEGNA

      (1)  OJ L 209, 2.8.1997, p. 1.

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

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

      (4)  Council Recommendation of 8 July 2014 on the National Reform Programme 2014 of Bulgaria and delivering a Council opinion on the Convergence Programme of Bulgaria, 2014 (OJ C 247, 29.7.2014, p. 7).

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


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

text:
               30.7.2013

               EN

               Official Journal of the European Union

               C 217/47

      COUNCIL RECOMMENDATION

   of 9 July 2013
   on the National Reform Programme 2013 of Latvia and delivering a Council opinion on the Convergence Programme of Latvia, 2012-2016
   2013/C 217/12
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,
   Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 9(2) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Social Protection Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

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

               (2)

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

               (3)

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

               (4)

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

               (5)

               On 28 November 2012, the Commission adopted the Annual Growth Survey, marking the start of the 2013 European Semester of economic policy coordination. Also on 28 November 2012, the Commission, on the basis of Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (4), adopted the Alert Mechanism Report, in which Latvia was not identified as one of the Member States for which an in-depth review would be carried out.

               (6)

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

               (7)

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

               (8)

               On 29 April 2013, Latvia submitted its Convergence Programme for the period 2012-2016 and, on 2 May 2013, its 2013 National Reform Programme. In order to take account of their interlinkages, the two Programmes have been assessed at the same time.

               (9)

               Based on the assessment of the Convergence Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections in the Programme is plausible. Economic growth is expected to slow down somewhat, to around 4 % per year, over the Programme period, while price increases are projected to remain moderate. The general government deficit declined in 2012 to a level well below the 3 % of GDP Treaty reference value and the medium-term objective (MTO) was reached in that year, considerably earlier than what was foreseen in Latvia’s Convergence Programme for 2012-2015. The Convergence Programme confirms the previous MTO of -0,5 %, which adequately reflects the objectives of the Stability and Growth Pact. The objective of the budgetary strategy outlined in the Convergence Programme is to maintain a structural budgetary position which is based on the MTO, with any deviation limited to the incremental impact of systemic pension reform. This reform entails a gradual increase in the share of social security contributions which is diverted to a funded pension scheme and is implemented in 2013, 2015 and 2016. However, following an overall assessment with the recalculated structural balance as a reference, including an analysis of expenditure net of discretionary measures, it appears that the structural balance is set to deviate from the MTO by 1,0 percentage point of GDP in 2013, which is significantly more than the incremental impact of the systemic pension reform, and by a further 0,2 percentage point in 2014. Government debt is set to remain well below 60 % over the whole Programme period, increasing from 40,7 % of GDP in 2012 to 44,5 % in 2013, as the Government accumulates assets for debt repayments, and is declining from 2014 as repayments take effect, reaching 34,6 % by the end of the Programme period. The Fiscal Discipline Law was approved by the Latvian Parliament in January 2013 and entered into force in March 2013. If effectively implemented, the new law would considerably strengthen the fiscal framework in Latvia, providing an effective mechanism to limit expenditure growth in good economic times and serving as a basis for rules-based multi-annual budgeting.

               (10)

               Latvia has reduced taxes on labour and plans to take further steps in this regard in 2014 and 2015. However, the tax wedge for low-wage earners is still among the highest in the Union, indicating a need for appropriate calibration of tax policy to stimulate employment for low-skilled workers. Moreover, shifting taxation from labour to recurrent property taxes and taxes on the use of natural and other resources should improve the structural balance. Environmental taxes remain relatively underdeveloped and are heavily dominated by motor-fuel taxation, while taxation of other energy sources, pollution and the use of natural resources is below the EU average. Further broadening of the tax base to include other sources of environmental taxation would help in achieving environmental goals. The Government has stepped up efforts to combat the informal economy and these efforts should be maintained.

               (11)

               While the post-crisis structural adjustment has been successful, the experience of a pronounced boom-bust cycle calls for monitoring future credit growth and the stability of the bank funding base related to foreign deposit inflows by appropriate micro- and macro-prudential policies.

               (12)

               Latvia has taken a number of steps to tackle high long-term and youth unemployment. Funding and coverage of active labour-market policies was increased in 2013 as compared to 2012, and new measures are being implemented, including profiling of the unemployed and improved job search assistance. Nevertheless, long-term unemployment and youth unemployment are still high, activation of the unemployed and benefit recipients is low and access to social services is poor. There are concerns that vocational education and training is failing to provide sufficient quality of skills for the workforce and there is limited availability of quality work-based training. The establishment of comprehensive career guidance and continued implementation of reforms in vocational education and training, including improving the quality and the accessibility of its work-based learning and apprenticeship components are necessary.

               (13)

               A high proportion (40 %) of the Latvian population is at risk of poverty or social exclusion and for children it is even higher, standing at 43,6 %. Overall, the at-risk-of-poverty rate increased slightly in 2012, suggesting that growth does not automatically translate into less poverty, and that targeted policies are necessary. Latvia has taken some steps to address the poverty of unemployed people and children. However, there has been less direct action to address the problems of the social assistance system in particular in relation to transparency, benefit adequacy and coverage, and insufficient activation measures for benefit recipients. Lack of fiscal space has led Latvia to decrease the level of guaranteed minimum income (GMI) and to abolish the state budget financing of the GMI benefit. These decisions are likely to aggravate extreme poverty and exacerbate the existing inequality in access to social assistance across local governments, while reducing central government incentives to invest in policy development and control of social assistance. It is important to monitor the effects of these decisions to prevent any deterioration in the situation.

               (14)

               Latvia has proposed an ambitious reform that can be expected to have a significant positive impact on the quality of its higher education system. Reform plans cover an overhaul of the accreditation process, the separation of academic and management functions of the universities, the development of a new financing model, and a consolidation of the higher education institutions. However, the plans are still at an early stage and need to be properly implemented to ensure that the foreseen positive impacts materialise. Moreover, in 2013, an evaluation will be carried out of the effectiveness of scientific institutions and their development strategies. This important assessment should help underpin future reform and funding of scientific institutions, in support of increased innovation activity in Latvia.

               (15)

               Latvia has put forward policy measures addressing energy savings for the main sectors of the economy. It is expected that, in the coming years, more than 70 % of energy savings will be generated in the buildings sector. However, the implementation of housing insulation projects has been slow, and the number of completed projects remains small relative to the stock of buildings, with large energy losses. The potential for efficiency gains in this field is significant as the energy intensity of Latvian households was the highest in the Union in 2010. In 2012, Latvia made progress in opening its electricity market to competition and participation in regional markets. Direct contracting with electricity suppliers is fully enforced in the business sector and is introduced on a voluntary basis for households. Latvia is set to join Nord Pool Spot trading in June 2013. However, there has been no progress in opening the natural gas market and a single-source dependency prevails. The authorities are also facing difficult negotiations on the ownership and management of the gas storage facility, which is of high importance for the proper functioning of the regional gas market.

               (16)

               The Latvian judicial system is characterised by inefficiencies in the civil justice system. The system combines several unfavourable factors such as lengthy proceedings to solve civil and commercial cases at first instance and low clearance rates leading to a backlog of court cases. Disposition times are particularly long for insolvency proceedings. Moreover, many cases do not get settled at first instance, which creates delays at all levels, up to the Supreme Court. Positive steps to improve the efficiency and quality of the system have been taken recently, but it is too early to assess their impact. It is particularly important to devote sufficient attention to human resources management policies within the judiciary. Stronger involvement of the Judicial Council, rethinking of the role of management positions within the judiciary and more training of judges could contribute to a higher quality judiciary. Amendments to the Law on Insolvency were proposed by the end of 2012. However, it remains to be seen whether the proposed amendments are sufficient to address the shortcomings of the law in a comprehensive way. For instance, problems have been identified in relation to the practical implementation of the law, in particular with regard to the role of insolvency practitioners, their responsibilities with regard to the judges and the effective liquidation of assets, as well as issues with personal insolvencies, which also need to be addressed.

               (17)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of Latvia’s economic policy. It has assessed the National Reform Programme and the Convergence Programme. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Latvia but also their compliance with EU rules and guidance, given the need to reinforce the overall economic governance of the Union by providing EU-level input into future national decisions. Its recommendations under the European Semester are reflected in recommendations (1) to (7) below.

               (18)

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

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

               1.

               Reinforce the budgetary strategy to ensure that the deviation from the MTO only reflects the incremental impact of the systemic pension reform. Within this strategy, reduce taxation of low-income earners by shifting taxation to areas such as excise duties, recurrent property taxes and/or environmental taxes. Maintain efforts to improve tax compliance and combat the shadow economy. Continue strengthening the fiscal framework through effective implementation of the Fiscal Discipline Law and multi-annual budgeting.

               2.

               Continue to use micro and macro prudential policies to prevent possible vulnerabilities that could arise from future credit growth and non-resident banking activities.

               3.

               Tackle long-term and youth unemployment by increasing coverage and effectiveness of active labour-market policies and targeted social services. Improve the employability of young people, for example through a Youth Guarantee, establish comprehensive career guidance, implement reforms in the field of vocational education and training, and improve the quality and accessibility of apprenticeships.

               4.

               Tackle high rates of poverty by reforming social assistance for better coverage, by improving benefit adequacy and activation measures for benefit recipients. Reinforce the delivery mechanisms to effectively reduce child poverty.

               5.

               Implement the planned reforms of higher education concerning, in particular, the establishment of a quality-rewarding financing model, reform of the accreditation system, consolidation of the institutions and promotion of internationalisation. Take further steps to modernise research institutions based on the ongoing independent assessment.

               6.

               Continue improving energy efficiency, especially of residential buildings and district heating networks, provide incentives for reducing energy costs and shift consumption towards energy-efficient products. Improve connectivity with EU energy networks and take steps towards liberalisation of the natural gas market, including the provision of clear rules for third-party access to storage capacities.

               7.

               Complete pending reforms to improve the efficiency and quality of the judiciary and reduce the backlog and length of proceedings, including as regards insolvency. Put in place a comprehensive human resources policy and take steps to implement the mediation laws and streamline the arbitration court system.

      Done at Brussels, 9 July 2013.

            For the Council

            The President

         R. ŠADŽIUS

      (1)  OJ L 209, 2.8.1997, p. 1.

      (2)  Maintained for 2013 by Council 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).

      (3)  OJ C 219, 24.7.2012, p. 50.

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

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


               19.2.2016

               EN

               Official Journal of the European Union

               C 65/174

         P7_TA(2013)0279
   Promotion and protection of freedom of religion or belief
   European Parliament recommendation to the Council of 13 June 2013 on the draft EU Guidelines on the Promotion and Protection of Freedom of Religion or Belief (2013/2082(INI))
   (2016/C 065/25)

      The European Parliament,

               —

               having regard to the proposal for a recommendation to the Council by Laima Liucija Andrikienė, on behalf of the PPE Group, on the draft EU Guidelines on the Promotion and Protection of Freedom of Religion or Belief (B7-0164/2013),

               —

               having regard to the Universal Declaration of Human Rights and the UN Declaration on the Elimination of All Forms of Intolerance and of Discrimination Based on Religion or Belief,

               —

               having regard to the International Covenant on Civil and Political Rights and General Comment 22 by the United Nations Human Rights Committee (1),

               —

               having regard to the Charter of Fundamental Rights of the European Union,

               —

               having regard to the Council Conclusions on intolerance, discrimination and violence on the basis of religion or belief from 2009 and 2011 (2),

               —

               having regard to the EU Strategic Framework and Action Plan on Human Rights and Democracy, adopted by the Council on 25 June 2012 (3),

               —

               having regard to the Commission Joint Communication to the European Parliament and the Council of 12 December 2011 entitled ‘Human Rights and Democracy at the Heart of EU External Action — Towards a More Effective Approach’ (COM(2011)0886),

               —

               having regard to its recommendation to the Council of 13 June 2012 on the EU Special Representative for Human Rights (4) and to Council Decision 2012/440/CFSP of 25 July 2012 appointing the European Union Special Representative for Human Rights (5),

               —

               having regard to its resolution of 13 December 2012 on the review of the EU’s human rights strategy (6),

               —

               having regard to its resolutions on the annual reports on Human Rights and Democracy in the World and the European Union’s policy on the matter (7),

               —

               having regard to Article 36 of the Treaty on the European Union,

               —

               having regard to the draft EU Guidelines on the Promotion and Protection of Freedom of Religion or Belief (‘the Guidelines’),

               —

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

               —

               having regard to the report of the Committee on Foreign Affairs (A7-0203/2013)

               A.

               whereas, according to Article 21 of the Treaty on the European Union, democracy, the rule of law, the universality and indivisibility of human rights and fundamental freedoms, respect for human dignity, the principles of equality and solidarity, and respect for the principles of the United Nations Charter and international law are the guiding principles for all EU external actions;

               B.

               whereas the right to freedom of religion or belief, including theistic, non-theistic and atheistic beliefs, the right not to believe and the right to change one’s religion or belief, is a universal human right and a fundamental freedom of each human being, interrelated with other human rights and fundamental freedoms as enshrined in Article 18 of the Universal Declaration of Human Rights;

               C.

               whereas the European Parliament has repeatedly called for an ambitious toolkit to advance the right to freedom of religion or belief as part of EU external policy;

               D.

               whereas the European Parliament has welcomed, in this context, the EU’s commitment to developing guidelines on freedom of religion or belief in accordance with the EU Action Plan on Human Rights and Democracy, and has stressed the need for Parliament and civil society organisations to be involved in the preparation of these guidelines;

               E.

               whereas according to the standards of international law, all states have the duty to provide effective protection to all their citizens and all other persons under their respective jurisdictions; whereas persecutions against persons and their families, communities, places of worship and institutions, based on their particular religious affiliation, their convictions or any legitimate public expression of their religion or belief, are widely reported in some regions of the world; whereas discrimination based on religion or belief still exists in all regions of the world including Europe and its neighbourhood, and whereas persons belonging to particular religious communities, including religious minorities and non-believers, continue to be denied their human rights and are regularly discriminated against, arrested, convicted and in many countries sometimes even executed because of their religion or belief;

               1.

               Addresses the following recommendations to the Council:

         Reason for action

               (a)

               Promoting the right to freedom of religion or belief and preventing it from being violated has to be a priority in the EU’s external policies;

               (b)

               Violence, persecution and discrimination against people belonging to religious communities and minorities, or against people who hold non-religious beliefs, persist in many parts of the world; the lack of religious tolerance and openness to dialogue and the lack of ecumenical coexistence often lead to political unrest, violence and open armed conflicts, endangering lives and undermining regional stability; clear and prompt condemnation by the European Union of all forms of violence and discrimination should be a basic element of EU policy in the area of freedom of religion or belief; particular attention should be paid to the situation of those who change their religion or belief, as in practice they are subject in a number of countries to social pressure, intimidation or outright violence;

         Purpose and scope

               (c)

               The purpose and scope of the EU Guidelines should be to promote and protect freedom of religion or belief in third countries, to mainstream freedom of religion or belief in all the EU’s external actions and human rights policies and to develop clear benchmarks, criteria, standards and a practical orientation in order to enhance the promotion of freedom of religion or belief in the work of officials from the EU institutions and Member States, and thus contribute to more coherence, effectiveness and visibility on the part of the EU in its external relations;

         Definitions

               (d)

               As their successful implementation will depend on this, the Guidelines should offer clarity in the definitions used and the appropriate and full protection of the right to freedom of religion or belief, in accordance with international law, in its private and public expressions, as well as in its individual, collective and institutional dimensions, including the right to believe or not to believe, the right to change one’s religion or belief, the freedom of expression, assembly and association, as well as the right of parents to educate their children according to their moral convictions — i.e. religious or non-religious; clear definitions and full protection are also required as regards the recognition of the legal personality of religious and belief-based institutions and respect for their autonomy, the right to conscientious objection, the right to asylum, the right to observe days of rest and to celebrate holidays and ceremonies in accordance with the precepts of one’s religion or belief, and the fundamental right to protection of one’s property;

         Operational Guidelines

               (e)

               The Guidelines should be based on international law and treaties recognised and ratified by the international community;

         Proportionality

               (f)

               As the draft Guidelines state, in accordance with the principles accepted by the international community, the freedom from coercion to have or to adopt a religion or belief and the liberty of parents and guardians to ensure religious and moral education cannot be restricted. Any other manifestation of the right to freedom of religion or belief may be subject only to ‘such limitations as are prescribed by law and are necessary to protect public safety, order, health or morals or the fundamental rights and freedoms of others’ (8); at the same time, the limitations must be strictly interpreted, directly related and proportionate with regard to the protected rights of others and the right balance must be achieved; the proportionality criterion should therefore be stressed in the Guidelines;

         Freedom of expression

               (g)

               While freedom of religion or belief and freedom of expression are mutually reinforcing rights, in cases where these two rights are invoked against each other, the EU should also bear in mind that modern media tools allow for a greater degree of interconnectedness between cultures and faiths; therefore steps need to be taken to avoid intercultural violence as a reaction to acts of freedom of expression related to criticism and especially ridicule or mockery; in this context, the EU should help in reducing such tensions, for example by promoting mutual understanding and dialogue, and condemn unequivocally any act of violence committed in reaction to such speech, and it should firmly oppose any attempt to criminalise freedom of speech in relation to religious issues, such as blasphemy laws;

         Collective dimension of freedom of religion or belief

               (h)

               It should be stressed in the Guidelines that an indispensable part of freedom of religion or belief is the right of each individual to manifest the freedom of religion or belief alone or in community with others; this includes:

                           —

                           the freedom to worship or assemble in connection with a religion or belief, and to establish and maintain places and religious sites for these purposes;

                           —

                           the freedom not to participate in any given religious activity or event,

                           —

                           the freedom to establish and maintain appropriate religious, media, educational, health, social, charitable or humanitarian institutions;

                           —

                           the freedom to solicit and receive voluntary financial and other contributions from individuals and institutions;

                           —

                           the freedom to train, appoint, elect or designate by succession appropriate leaders called for by the requirements and standards of any religion or belief;

                           —

                           the freedom to establish and maintain communications with individuals and communities in matters of religion and belief at the national and international levels; equally, it should be noted in the Guidelines that the right to exercise religion in community with others (in the context of which ’individual freedoms must always be respected) should not unnecessarily be limited to officially recognised places of worship, and that all undue limitations to the freedom of assembly should be condemned by the EU; the Guidelines should underline that States have a duty to remain neutral and impartial towards religious groups, including as regards symbolic or financial support;

               (i)

               considers that secularism, defined as the strict separation between religious and political authorities, implies the rejection of any religious interference in the functioning of government and of any public interference in religious affairs except for the purpose of upholding rules of safety and public order (including respect for the freedom of others), and that it guarantees equal liberty of conscience for all, be they believers, agnostics or atheists;

         Registration requirements

               (j)

               The EU should take action when registration requirements for religious or belief-related organisations unduly limit the freedom of religion or belief. Registration should not be understood as a prerequisite for the enjoyment of one’s human right to freedom of religion or belief, as that right cannot be conditional upon administrative or legal requirements; the EU should call for the abolishment of any legislation, such as the mandatory registration of one’s religion in civil status documents, if this legislation leads to discrimination against persons holding non-religious beliefs or persons who have changed their religion or belief;

         Education

               (k)

               As recognised by internationally accepted standards, the parents or legal guardians of a child have the liberty to ensure that their children receive a religious and moral education in conformity with their own convictions, and the child shall not be compelled to receive teaching on religion or belief against the wishes of his or her parents or legal guardians, the best interests of the child being the guiding principle; the right of parents to educate their children according to their religious or non-religious convictions includes their right to deny any undue interference by state or non-state actors in their education opposed to their religious or non-religious convictions; the Guidelines should stress these aspects of the right to freedom of religion or belief, and should also guarantee secularisation in public education, and EU delegations should take appropriate action if this principle is violated;

         Family and social laws

               (l)

               The EU should pay particular attention to discrimination based on religion or belief in the family and social laws of third countries, especially but not exclusively within the context of the right to marriage and the right to child custody;

         The right to conscientious objection

               (m)

               The Guidelines should include the right to conscientious objection to military service as a legitimate exercise of the right to freedom of thought, conscience and religion; the EU should call on states with a system of compulsory military service to allow for an alternative service of a non-combatant or civilian character, in the public interest and not of a punitive nature, and to refrain from punishing, including through prison sentences, conscientious objectors for failure to perform military service;

         Asylum

               (n)

               The EU should encourage third countries to accept refugees persecuted on the basis of their religion or belief, and to provide them with asylum protection, especially in cases where refugees are threatened by death or violence. EU Member States should step up their efforts to accept refugees persecuted on the basis of their religion or belief;

         Support for — and engagement with — civil society

               (o)

               Support for and engagement with a broad range of civil society organisations, including human rights organisations and religious and belief-based groups, while developing and implementing the Guidelines, will be of crucial importance for the promotion and protection of freedom of religion or belief, and therefore the human rights focal points in the EU delegations should maintain regular contacts with these organisations in order to be able to identify as soon as possible problems arising in the area of freedom of religion or belief in their respective countries;

         Monitoring and assessment

               (p)

               Proper and ongoing monitoring and assessment of the situation in the area of freedom of religion or belief in the world has to be ensured by the European External Action Service, under the responsibility of the High Representative of the Union for Foreign Affairs and Security Policy, and a section should continue to be dedicated to this issue in the EU’s Annual report on Human Rights in the World, including recommendations for improvement; monitoring of the situation in the area of freedom of religion or belief should be one of the key issues among other human rights and fundamental freedoms in EU relations with third countries, especially in the context of the European Neighbourhood Policy; this should be reflected in all agreements and in reviewing and reporting documents; the EU Special Representative for Human Rights should pay particular attention to questions relating to the promotion and protection of freedom of religion or belief in the course of all his or her activities and should have a visible role in promoting this freedom through the external relations of the EU; he or she should also liaise with the European Parliament and its relevant committees on areas of concern and progress achieved and engage with relevant non-governmental organisations;

               (q)

               A set of instruments for the monitoring, assessment and support of the EU Guidelines should be adopted. It should focus on operational tools in order to better reflect the priority areas of action spelled out in the Guidelines and should, inter alia:

                           —

                           provide a detailed situation analysis checklist to track and monitor the situation as regards the right to freedom of religion or belief in the respective country in order to identify progress/setbacks;

                           —

                           require EU Heads of Mission to report regularly on freedom of religion or belief issues, with a detailed assessment of the situation, as well as of the existence of violations of the right to freedom of religion or belief and repression against its defenders or other individuals, identifying particular cases of apparent violations of the right to freedom of religion or belief; these reports by the EU Heads of Mission should be standardised to the greatest extent possible so that they can be compared;

                           —

                           emphasise concrete action in international fora, or in development cooperation activities which have been instrumental in protecting and promoting the right to freedom of religion or belief, including the successful handling of particular cases (individuals, groups, minorities, institutions) of discrimination or persecution ’on the grounds of religion or convictions;

                           —

                           recall that the support given to victims of discrimination or persecution based on their religion or convictions can be manifold, including inviting those victims to the EU institutions to give testimony on their situation;

         This set of instruments (circulaire) should be prepared in consultation with stakeholders and be ready before the end of 2013;

         Use of external financial instruments

               (r)

               The EU’s external financial instruments should be used both as incentives and deterrents (for example, freezing funds) with regard to freedom of religion or belief in a particular country, as this forms an integral part of the assessment of the overall human rights situation in the country; in the event of a serious deterioration of the human rights situation, including that as regards freedom of religion or belief, the EU should apply the existing human rights clauses in EU external agreements with the country concerned; the use of human rights clauses in EU external agreements has to be binding and systematically integrated into all agreements of the EU with third countries;

         EU action in multilateral fora

               (s)

               The EU should continue its initiatives in various multilateral fora in order to promote and protect the freedom of religion or belief; when appropriate, and upon request, the EU should assist third countries in drawing up legislation promoting and protecting freedom of religion or belief;

         Evaluation

               (t)

               In accordance with Article 36 of the Treaty on the European Union, the European Parliament should be involved in the evaluation of the implementation of the Guidelines, which should be carried out no later than three years after the Guidelines have come into force; the evaluation should be based on an analysis of the EU response to concrete situations related to the violation of freedom of religion or belief in third countries; the European Parliament should be regularly informed of areas or developments of concern, as reported by the EU delegations; its relevant committees should receive detailed information;

               2.

               Instructs its President to forward this recommendation to the Council, the High Representative of the Union for Foreign Affairs and Security Policy and, for information, to the Commission.

      (1)  General Comment adopted by the UN Human Rights Committee under Article 40, paragraph 4 of the International Covenant on civil and political rights CCPR/C/21/Rev.1/Add.4, 27 September 1993

      (2)  Council of the European Union 24.11.2009, 21.2.2011

      (3)  Council of the European Union 11855/12

      (4)  Texts adopted, P7_TA(2012)0250.

      (5)  OJ L 200, 27.7.2012, p. 21.

      (6)  Texts adopted, P7_TA(2012)0504.

      (7)  Texts adopted, P7_TA(2010)0489, P7_TA(2012)0126, P7_TA(2012)0503.

      (8)
   UN Declaration on the Elimination of All Forms of Intolerance and of Discrimination Based on Religion or Belief, Art. 1, par. 3, A/RES/36/55