title: Recommendation of the European Systemic Risk Board of 21 March 2016 amending Recommendation ESRB/2012/2 on funding of credit institutions (ESRB/2016/2)

text:
               21.4.2016

               EN

               Official Journal of the European Union

               C 140/1

         RECOMMENDATION OF THE EUROPEAN SYSTEMIC RISK BOARD
   of 21 March 2016
   amending Recommendation ESRB/2012/2 on funding of credit institutions
   (ESRB/2016/2)
   (2016/C 140/01)
   THE GENERAL BOARD OF THE EUROPEAN SYSTEMIC RISK BOARD,
   Having regard to the Treaty on the Functioning of the European Union,
   Having regard to Regulation (EU) No 1092/2010 of the European Parliament and of the Council of 24 November 2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board (1), and in particular to Article 3(2)(b), (d) and (f), and Articles 16 to 18 thereof,
   Having regard to Decision ESRB/2011/1 of the European Systemic Risk Board of 20 January 2011 adopting the Rules of Procedure of the European Systemic Risk Board (2), and in particular Article 15(3)(e) and Articles 18 to 20 thereof,
   Whereas:

               (1)

               On 20 December 2012 the General Board of the European Systemic Risk Board (ESRB) adopted Recommendation ESRB/2012/2 (3). The recommendation aims at incentivising sustainable funding structures for credit institutions.

               (2)

               In order for the aims of Recommendation ESRB/2012/2 to be achieved, national supervisory authorities (hereinafter ‘NSAs’), national macro-prudential authorities and the European Banking Authority (EBA) are requested to take certain actions within the time limits set out in Section 2(3) of Recommendation ESRB/2012/2.

               (3)

               On 16 September 2014 the General Board decided to extend some time limits by periods of six to 12 months. According to the revised timeline, the EBA should deliver to the ESRB an interim report containing a first assessment of the results of the implementation of Recommendation A(5) of Recommendation ESRB/2012/2 by 31 March 2016 and a final report to the ESRB and the Council of the European Union by 30 June 2016. These reports should be based on the data on funding plans submitted to the EBA by NSAs. However, the EBA has stated that it will not be possible to fully comply with the specified time limits due to delays in the delivery of data.

               (4)

               The overarching objective of the ESRB is to prevent or mitigate systemic risks in a timely and effective manner. The General Board considers that merging the interim and the final reports on Recommendation A(5) into a single report to be delivered by the EBA and extending the time limit for the delivery of the report to the ESRB and the Council by an additional 12 months would not jeopardise the orderly functioning of the financial markets, nor imply that Recommendation A(5) will be left unimplemented.

               (5)

               The General Board should therefore extend the relevant time limit in order to provide the EBA with sufficient time to take the steps necessary for the implementation of Recommendation A(5).

               (6)

               Therefore Recommendation ESRB/2012/2 should be amended accordingly,

         HAS ADOPTED THIS RECOMMENDATION:
   Recommendation ESRB/2012/2 is amended as follows:

               1.

               Section 2(3)(1) is replaced by the following:

                           ‘1.

                              Recommendation A — National supervisory authorities with responsibility for banking supervision, national supervisory authorities and other authorities with a macro-prudential mandate, and the EBA are requested to report according to the following timeline:

                                       (a)

                                       by 31 December 2015, national supervisory authorities with responsibility for banking supervision are requested to deliver to the ESRB an interim report containing a first assessment of the results of the implementation of Recommendation A(1) and (2);

                                       (b)

                                       by 31 July 2016, national supervisory authorities with responsibility for banking supervision are requested to deliver a final report on Recommendation A(1) and (2) to the ESRB and to the Council;

                                       (c)

                                       by 31 December 2015, national supervisory authorities and other authorities with a macro-prudential mandate are requested to deliver to the ESRB an interim report containing a first assessment of the results of the implementation of Recommendation A(3);

                                       (d)

                                       by 30 September 2016 national supervisory authorities and other authorities with a macro-prudential mandate are requested to deliver a final report on the implementation of Recommendation A(3) to the ESRB and to the Council;

                                       (e)

                                       by 30 June 2014, the EBA is requested to deliver the guidelines referred to in Recommendation A(4) to the ESRB and to the Council;

                                       (f)

                                       by 31 March 2017, the EBA is requested to deliver a report on the implementation of Recommendation A(5) to the ESRB and to the Council.’;

               2.

               in the Annex, point V.1.3.1 is replaced by the following:
               ‘V.1.3.1.   Timeline

               National supervisory authorities with responsibility for banking supervision, national supervisory authorities and other authorities with a macro-prudential mandate and the EBA are requested to report to the ESRB and the Council on the actions taken in response to this Recommendation, or adequately justify any inaction, according to the following timeline:

                           a.

                           by 31 December 2015, national supervisory authorities with responsibility for banking supervision are requested to deliver to the ESRB an interim report containing a first assessment of the result of the implementation of Recommendations A(1) and (2);

                           b.

                           by 31 July 2016, national supervisory authorities with responsibility for banking supervision are requested to deliver a final report on Recommendations A(1) and (2) to the ESRB and to the Council;

                           c.

                           by 31 December 2015, national supervisory authorities and other authorities with a macro-prudential mandate are requested to deliver to the ESRB an interim report containing a first assessment of the result of the implementation of Recommendation A(3);

                           d.

                           by 30 September 2016, national supervisory authorities and other authorities with a macro-prudential mandate are requested to deliver a final report on the implementation of Recommendation A(3) to the ESRB and to the Council;

                           e.

                           by 30 June 2014, the EBA is requested to deliver the guidelines referred to in Recommendation A(4) to the ESRB and to the Council;

                           f.

                           by 31 March 2017, the EBA is requested to deliver a report on the implementation of Recommendation A(5) to the ESRB and to the Council.’.

      Done at Frankfurt am Main, 21 March 2016.

            The Chair of the ESRB

         Mario DRAGHI

      (1)  OJ L 331, 15.12.2010, p. 1.

      (2)  OJ C 58, 24.2.2011, p. 4.

      (3)  Recommendation ESRB/2012/2 of the European Systemic Risk Board of 20 December 2012 on funding of credit institutions (OJ C 119, 25.4.2013, p. 1).


title: Council Recommendation of 21 February 2017 concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (eleventh EDF) for the financial year 2015

text:
               23.2.2017

               EN

               Official Journal of the European Union

               C 58/4

         COUNCIL RECOMMENDATION
   of 21 February 2017
   concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (eleventh EDF) for the financial year 2015
   (2017/C 58/04)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union,
   Having regard to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000 (1), as last amended,
   Having regard to the Internal Agreement between the Representatives of the Governments of the Member States of the European Union, meeting within the Council, on the financing of European Union aid under the multiannual financial framework for the period 2014 to 2020, in accordance with the ACP-EU Partnership Agreement, and on the allocation of financial assistance for the Overseas Countries and Territories to which Part Four of the Treaty on the Functioning of the European Union applies (2) (the ‘Internal Agreement’) setting up, amongst others, the eleventh European Development Fund (eleventh EDF), and in particular Article 11(7) thereof,
   Having regard to Council Regulation (EU) 2015/323 of 2 March 2015 on the Financial Regulation applicable to the 11th European Development Fund (3), and in particular Articles 43 to 45 thereof,
   Having examined the revenue and expenditure account and the balance sheet relating to the operations of the eleventh EDF as at 31 December 2015 and the Annual Report of the Court of Auditors on the activities funded by the 8th, 9th, 10th and 11th European Development Funds (EDFs) concerning the financial year 2015, together with the Commission’s replies (4) contained in that Annual Report,
   Whereas:

               (1)

               Pursuant to Article 11(7) of the Internal Agreement, the discharge for the financial management of the eleventh 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 eleventh EDF during the financial year 2015 has been satisfactory,

         HEREBY RECOMMENDS that the European Parliament give the Commission a discharge in respect of the implementation of the operations of the eleventh EDF for the financial year 2015.

      Done at Brussels, 21 February 2017.

            For the Council

            The President

         E. SCICLUNA

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

      (2)  OJ L 210, 6.8.2013, p. 1.

      (3)  OJ L 58, 3.3.2015, p. 17.

      (4)  OJ C 375, 13.10.2016, p. 287.


title: Recommendation for a Council recommendation with a view to giving early warning to France in order to prevent the occurrence of an excessive deficit

text: ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---  ---pagebreak---


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

text:
               18.8.2015

               EN

               Official Journal of the European Union

               C 272/94

         COUNCIL RECOMMENDATION
   of 14 July 2015
   on the 2015 National Reform Programme of Portugal and delivering a Council opinion on the 2015 Stability Programme of Portugal
   (2015/C 272/25)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,
   Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 5(2) thereof,
   Having regard to Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (2), and in particular Article 6(1) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the resolutions of the European Parliament,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Social Protection Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

               On 26 March 2010, the European Council agreed to the Commission's proposal to launch a new strategy for growth and jobs, Europe 2020, based on enhanced coordination of economic policies. 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 Portugal's National Reform Programme for 2014 and delivered its opinion on Portugal's updated Stability Programme for 2014. On 28 November 2014, in line with Regulation (EU) No 473/2013 of the European Parliament and of the Council (5), the Commission presented its opinion on Portugal's draft budgetary plan for 2015.

               (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 Portugal 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 Portugal. This assessed Portugal'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 Portugal is experiencing excessive macroeconomic imbalances which require decisive policy action and specific monitoring. It is true that considerable progress has been achieved through the adjustment programme, both as regards economic adjustment and policies. Despite the deleveraging effort observed in the households and non financial corporations sectors, significant risks remain, linked to the high levels of internal and external indebtedness across various sectors, and these deserve close attention. There are also strong deleveraging pressures in a context of low growth, low inflation and high unemployment.

               (7)

               On 28 April 2015, Portugal submitted its 2015 National Reform Programme and its 2015 Stability Programme. In order to take account of their interlinkages, the two programmes have been assessed at the same time.

               (8)

               Portugal is currently in the corrective arm of the Stability and Growth Pact. In its 2015 Stability Programme, the Government plans to correct the excessive deficit by 2015, in line with the deadline set by the Council. It sets out to reduce the headline deficit to 2,7 % of GDP in 2015 and gradually further to 0,6 % of GDP in 2018. According to the Stability Programme, the Government plans to meet the medium-term objective — a structural deficit of 0,5 % of GDP — in 2016. The government debt-to-GDP ratio is expected to decrease to 124,2 % in 2015 and further to around 112,1 % in 2018. The macroeconomic scenario underpinning these budgetary projections is plausible for 2015 and 2016, but rather optimistic for 2017 and 2018 for which some risks have also been identified by the Portuguese Public Finance Council. Based on the Commission's 2015 spring forecast, a timely and durable correction of the excessive deficit by 2015 is not yet ensured, but within reach. At the same time, the fiscal effort is below what is recommended by the Council. Assuming that the excessive deficit is corrected, Portugal would be subject to the preventive arm of the Pact as of 2016. Balance-improving measures to support the planned deficit targets from 2016 onwards have not been sufficiently specified and appear to be insufficient in size. Therefore, there appears to be a risk of a significant deviation from the required adjustment towards the medium-term objective in 2016 and further structural measures will be needed. Based on its assessment of the Stability Programme and taking into account the Commission's 2015 spring forecast, the Council is of the opinion that there is a risk that Portugal will not comply with the provisions of the Stability and Growth Pact.

               (9)

               Fiscal consolidation must be underpinned by increased efficiency and quality of public expenditure at all levels of public administration and further reforms of the system for managing public finances. In particular, further efforts are necessary to ensure strict expenditure control by enforcing the commitment control law and strengthening accountability. The Law on the single wage scale was published in September 2014 and has been applied since January 2015; implementation of the Decree-law on the single supplements scale is under preparation. The restructuring of state-owned enterprises has not been completed. There has been limited progress in developing new comprehensive measures as part of the ongoing pension reform following the Constitutional Court judgements of August 2014. Portugal has undergone a comprehensive reform of its tax system in the past two years, targeting corporate income tax, personal income tax and environmental taxation. The overall impact of this reform should be evaluated. There is ample scope for further reforms to modernise the revenue administration and to further improve taxpayer compliance.

               (10)

               The collective bargaining system has recently undergone several reforms, though not all of them promote the alignment of wages to productivity at sector and firm level. The challenge of the system is to allow firms to adjust to specific circumstances. This includes effective use of existing provisions for firms to derogate from sectorial collective agreements under specific circumstances. Despite the freeze in recent years, the minimum wage has risen significantly faster than the average wage in nominal terms since 2008 and the proportion of workers covered by the minimum wage has risen from 5 % in 2005 to 12,9 % in 2014.

               (11)

               Significant progress has been made regarding the deployment of active labour market policies and the reform of public employment services. However, challenges remain as regards reaching the young people who are neither in employment nor in education or training. There is a need to increase the digitisation of services in charge of labour market matching. Ensuring adequate coverage of social assistance, in particular the minimum income scheme, remains a key challenge. Some progress has been made in improving the quality and labour-market relevance of education. Portugal has reformed curricula and teachers' statutes in order to improve the quality of education. The use of the monitoring tool and the diversification of pathways with new vocational education and training programmes should address early school leaving and help improve performance rates. Recent reforms are designed to upgrade the vocational education and training system, but making it more attractive to students remains a challenge. Fostering knowledge transfers between higher education, private-sector firms and research organisations also represents a challenge.

               (12)

               The high debt of Portuguese firms still weighs on their performance and impedes new investments, and households' indebtedness has declined markedly. Following up on the Comprehensive Assessment exercise, the Central Bank stepped up its monitoring of banks' liquidity and capital position, and also assessed banks' recovery plans. The ratio of non-performing corporate loans remains high (above 18 %) and is a burden on banks' balance sheets. The corporate income tax reform initiated in 2014 strengthens the limits for the deductibility of net financial expenses, but the high debt bias in corporate taxation could be further addressed. The corporate restructuring platforms/processes PER and SIREVE are being re-designed, with an enhanced focus on helping viable firms to stay in business rather than go into liquidation. Deleveraging figures for 2014 show substantial progress in implementing measures to reduce corporate debt overhang. The strategic plan for corporate debt restructuring, published in May 2014, is gradually taking shape in legislation through various measures. There is also progress in widening the range of financing alternatives available to non-financial firms by encouraging equity investments. The Development Finance Institution, formally established in September 2014, intends to address market failures that hamper SMEs' access to finance.

               (13)

               There is scope to strengthen measures to increase the efficiency and quality of the justice system, in particular as regards the evaluation of courts' activities and the use of online tools, and to conduct surveys of court users or legal professionals. According to the 2015 EU Justice Scoreboard, proceedings in civil and commercial cases continue to be lengthy (386 days). The number of enforcement cases is still falling slightly, while disposition time remains long (1 045 days in 2014). Reforms relating to the tax and administrative courts are proceeding at a slower pace than other judicial reforms. The rise in the number of insolvency cases has highlighted the need to step up resources and training for first-instance courts in this field. The liquidity of businesses continues to be aggravated by long delays in payments, in particular by the public sector. No new measures have been taken or commitments made to tackle these late payments. There is insufficient transparency as regards private-public partnerships at local and regional government levels and in the area of concessions at all levels. The prevention of corruption is hampered by the ineffective application of the existing legal framework, where monitoring, implementation and the enforcement of sanctions need improvement.

               (14)

               The new transport regulatory authority is not yet operational. Liberalisation measures in port concessions, railways and metropolitan public transport are slow, thus failing to stimulate investment. There has been limited progress in implementing the long-term transport plan and the timetable for reform of the ports sector. Delays have been experienced in transport concessions for the metropolitan areas of Lisbon and Porto. Moreover, limited progress has been made in port concession renegotiations and in the railways sector. The merger between the railway (REFER) and the road (EP) infrastructure operators, intended to improve the financial sustainability of the new road and railway infrastructure body, is still ongoing. Staff numbers have been reduced in the state-owned enterprises in the transport sector.

               (15)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of Portugal's economic policy and published it in the 2015 country report. It has also assessed the Stability Programme and the National Reform Programme and the follow-up given to the recommendations addressed to Portugal in previous years. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Portugal 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.

               (16)

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

               (17)

               In the light of the Commission's in-depth review and this assessment, the Council has examined the National Reform Programme and the Stability Programme. Its recommendations under Article 6 of Regulation (EU) No 1176/2011 are reflected in recommendations (1) to (4) 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 the basis of this analysis, the Council has issued specific recommendations addressed to the Member States whose currency is the euro (7). As a country whose currency is the euro, Portugal should also ensure the full and timely implementation of those recommendations,

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

               1.

               Ensure a durable correction of the excessive deficit in 2015 by taking measures as necessary. Achieve a fiscal adjustment of 0,6 % of GDP towards the medium-term budgetary objective in 2016. Use windfall gains to accelerate the deficit and debt reduction. Enforce the commitment control law to better control expenditure. Improve the medium-term sustainability of the pension system. Safeguard the financial sustainability of state-owned enterprises. Further improve tax compliance and the efficiency of the tax administration.

               2.

               Promote the alignment of wages and productivity, in consultation with the social partners and in accordance with national practices, taking into account differences in skills and local labour market conditions as well as divergences in economic performance across regions, sectors and companies. Ensure that developments relating to the minimum wage are consistent with the objectives of promoting employment and competitiveness.

               3.

               Improve the efficiency of public employment services, in particular by increasing outreach to non-registered young people. Ensure effective activation of benefit recipients and adequate coverage of social assistance, in particular the minimum income scheme.

               4.

               Take further measures to reduce the corporate debt overhang, to address the corporate non-performing loans ratio in banks and to reduce the debt bias for corporates under tax provisions. Improve the efficiency of debt restructuring tools for viable companies by introducing incentives for banks and debtors to engage in restructuring processes at an early stage.

               5.

               Accelerate measures and increase transparency as regards concessions, including in the transport sector, and private-public partnerships at local and regional level.

      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 Portugal and delivering a Council opinion on the Stability Programme of Portugal, 2014 (OJ C 247, 29.7.2014, p. 102).

      (5)  Regulation (EU) No 473/2013 of the European Parliament and of the Council of 21 May 2013 on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area (OJ L 140, 27.5.2013, p. 11).

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

      (7)  OJ C 272, 18.8.2015, p. 98.


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

text:
               18.8.2015

               EN

               Official Journal of the European Union

               C 272/70

         COUNCIL RECOMMENDATION
   of 14 July 2015
   on the 2015 National Reform Programme of Lithuania and delivering a Council opinion on the 2015 Stability Programme of Lithuania
   (2015/C 272/18)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,
   Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 5(2) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the 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 (2). 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 (3) on Lithuania's National Reform Programme for 2014 and delivered its opinion on Lithuania'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 of the European Parliament and of the Council (4), the Commission adopted the Alert Mechanism Report, in which Lithuania was not 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 Lithuania. This assessed Lithuania's progress in addressing the country-specific recommendations adopted on 8 July 2014.

               (7)

               On 13 April 2015, Lithuania submitted its 2015 National Reform Programme and on 30 April 2015 its 2015 Stability Programme. In order to take account of their interlinkages, the two programmes have been assessed at the same time.

               (8)

               Lithuania is currently under the preventive arm of the Stability and Growth Pact. In its 2015 Stability Programme, Lithuania has requested the application of the pension reform clause. Lithuania estimates the budgetary costs of the pension reform at 0,1 % of GDP in 2016. Subject to confirmation by Eurostat that the pension reform fulfils the necessary conditions, and taking into account that an appropriate safety margin with respect to the deficit reference value is preserved, the Council is of the opinion that Lithuania could benefit in 2016 from the requested temporary deviation from the required adjustment path towards the medium-term objective. In its Stability Programme, the Government plans to reach a headline deficit of 1,2 % of GDP in 2015 and to turn it into a surplus of 0,7 % of GDP by 2018. The Government intends to remain at the medium-term budgetary objective — a structural deficit of 1 % of GDP — throughout the programme period. According to the Stability Programme, the government debt-to-GDP ratio is expected to peak in 2015 at 42,2 % and to decline to 32,9 % 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, there is a risk of some deviation from the required adjustment path towards the medium-term objective in 2015 because of the 0,3 % of GDP excess of net expenditure growth over the benchmark. For 2015-2016, both the structural balance and expenditure growth significantly deviate from the required adjustment path indicating a risk of a significant deviation in 2016. Therefore, further measures will be needed in both years. Based on its assessment of the Stability Programme and taking into account the Commission's 2015 spring forecast, the Council is of the opinion that there is a risk that Lithuania will not comply with the provisions of the Stability and Growth Pact. In addition, despite recent progress, the current fiscal framework should be further improved by strengthening its binding character and ensuring full consistency with the EU fiscal provisions. Lithuania's tax revenue is largely dependent on indirect and labour taxation, while the revenue from environmental and wealth taxation remains very low. Lithuania continues to face challenges in the area of tax compliance, in particular in relation to VAT.

               (9)

               Lithuania is facing a substantial fall in the working-age population, driven by demographics, migration and poor performance of the healthcare system. The persistently low level of participation in life-long learning is not conducive to strengthening human capital, improving employability or increasing productivity. Schools have an above-average rate of low-achievers in basic skills, indicating a need to modernise teacher training and to promote continuing professional development. The education and training on offer is not always relevant to the labour market. The proportion of students following vocational education and training programmes in secondary education is low. Lithuania is taking action to improve and extend apprenticeships and work-based learning, but the number and quality of such programmes is still insufficient. The number of hospital beds per capita remains high as compared with the rest of the Union, suggesting there may be imbalances in the provision of healthcare. At the same time, total public investment in the healthcare sector remains low. The reported high frequency of informal payments for healthcare services, together with concerns about corruption in public procurement procedures for medical goods, demonstrate the need to improve the governance of the healthcare system.

               (10)

               The pension reform measures that have been adopted are not sufficient to address the issue of the medium-term sustainability of the pension system. The statutory retirement age is being gradually increased over the period to 2026, but the pension system does not take into account indicators of life expectancy. Moreover, the rules for the indexation of pensions are unclear. Low participation in voluntary pension savings schemes and the absence of occupational pension schemes create risks for future pension adequacy. The Government intends to implement a comprehensive reform of the pension system as part of a wider ‘new social model’. However, this strategy has not yet been finalised and adopted, and consultation with social partners must first be concluded. Lithuania has introduced financial support measures for the elderly and financial incentives for employing older workers. A comprehensive active ageing strategy is, however, still lacking.

               (11)

               Over 30 % of Lithuania's population is at risk of poverty or social exclusion. The reform of cash social assistance, combined with the effect of an improved economic situation, has led to a considerable fall in expenditure and in the number of recipients of social assistance. Active labour market measures and other services for supporting beneficiaries are still, however, limited.

               (12)

               Lithuania has made substantial progress on reforming state-owned companies and has enacted legislation to ensure that the reforms have a lasting effect. The Government has completed the separation of commercial and non-commercial activities, which are now disclosed in annual reports. The remaining state-owned companies are required to appoint independent board members by the end of September 2015.

               (13)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of Lithuania's economic policy and published it in the 2015 country report. It has also assessed the Stability Programme and the National Reform Programme and the follow-up given to the recommendations addressed to Lithuania in previous years. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Lithuania 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 (3) below.

               (14)

               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.

               (15)

               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 the basis of this analysis, 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, Lithuania should also ensure the full and timely implementation of those recommendations,

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

               1.

               Avoid deviating from the medium-term budgetary objective in 2015 and ensure that the deviation in 2016 is limited to the allowance linked to the systemic pension reform. Broaden the tax base and improve tax compliance.

               2.

               Address the challenge of a shrinking working-age population by improving the labour-market relevance of education, increasing attainment in basic skills, and improving the performance of the healthcare system; reduce the high tax wedge for low-income earners by shifting the tax burden to other sources less detrimental to growth.

               3.

               Adopt a comprehensive reform of the pension system that also addresses the challenge of achieving pension adequacy. Improve the coverage and adequacy of unemployment benefits and cash social assistance and improve the employability of those looking for work.

      Done at Brussels, 14 July 2015.

            For the Council

            The President

         P. GRAMEGNA

      (1)  OJ L 209, 2.8.1997, p. 1.

      (2)  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).

      (3)  Council Recommendation of 8 July 2014 on the National Reform Programme 2014 of Lithuania and delivering a Council opinion on the Convergence Programme of Lithuania, 2014 (OJ C 247, 29.7.2014, p. 67).

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

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

      (6)  OJ C 272, 18.8.2015, p. 98.


title: Commission Recommendation of 11 October 2007 on the electronic network of officially appointed mechanisms for the central storage of regulated information referred to in Directive 2004/109/EC of the European Parliament and of the Council (notified under document number C(2007) 4607) (Text with EEA relevance)

text:
               12.10.2007

               EN

               Official Journal of the European Union

               L 267/16

      COMMISSION RECOMMENDATION

   of 11 October 2007
   on the electronic network of officially appointed mechanisms for the central storage of regulated information referred to in Directive 2004/109/EC of the European Parliament and of the Council
   (notified under document number C(2007) 4607)
   (Text with EEA relevance)
   (2007/657/EC)
   THE COMMISSION OF THE EUROPEAN COMMUNITIES,
   Having regard to the Treaty establishing the European Community, and in particular second indent of Article 211 thereof,
   Whereas:

               (1)

               Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC (1) requires that the access for investors to information about issuers is more organised at a Community level in order to actively promote the integration of European capital markets.

               (2)

               Directive 2004/109/EC obliges the competent authorities of the Member States to draw up guidelines with a view to further facilitate public access to information to be disclosed under Directive 2003/6/EC of the European Parliament and of the Council of 28 January 2003 on insider dealing and market manipulation (market abuse) (2), Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered tot he public or admitted to trading and amending directive 2001/34/EC (3) and Directive 2004/109/EC of the European Parliament and of the Council and to create a single electronic network (hereinafter ‘the electronic network’) or a platform of electronic networks across Member States linking the different mechanisms appointed at national level for the storage of such information (hereinafter ‘the storage mechanisms’).

               (3)

               The competent authorities of the Member States adopted, within Committee of European Securities Regulators (CESR) established by Commission Decision 2001/527/EC (4), an opinion to the Commission on 30 June 2006, in which they expressed a preference for a simple electronic network mode linking the storage mechanisms. Such network could be accessed via a common interface which would contain a list of all listed companies in the Community and would redirect the user to the site of the relevant storage mechanism. The relevant data would thus remain stored at national level without any need to establish a common infrastructure replicating all the relevant information contained at national level and incurring excessive additional costs.

               (4)

               It is appropriate to provide at this stage for voluntary standards giving the necessary flexibility to the storage mechanisms to adapt themselves to the functioning of the electronic network.

               (5)

               It is desirable that the storage mechanisms are able to interconnect electronically to each other, so that investors and interested parties can easily accede to financial information on listed companies in the Community. In order to provide for a rapid establishment of such an electronic network, it should be based on simple conditions such as those suggested by the competent authorities of the Member States. A simple network should also allow for the provision of added value services to investors.

               (6)

               For the purposes of facilitating the access of investors to financial information on listed companies, storage mechanisms should be invited to integrate, wherever possible, related financial information disclosed by issuers in accordance with other Community or national acts.

               (7)

               In order to enable effective launching of the electronic network, the competent authorities of the Member States, within CESR and in close association with the storage mechanisms, should be invited to prepare a network governance agreement containing the essential conditions for the creation, functioning and funding of the electronic network and notably the appointment of a body that should be charged with the daily management of the network.

               (8)

               It is important that the storage mechanisms remain free to decide on their own pricing policy so as to secure their own financial viability. At the same time, they should not discriminate in their pricing policy between the users of electronic network and the users who have access to the storage mechanism at national level.

               (9)

               For the proper functioning of the electronic network, and in order to make sure that comparable services are offered to the users of that network within the Community, minimum quality standards for the storage of regulated information at the national level are necessary. It is important that sufficient security as regards the communication, storage and access to data is guaranteed by the storage mechanisms. It is equally important to establish systems providing for certainty as to the source and the content of the information filed with the storage mechanisms. In order to facilitate the automatic electronic docketing, date and time stamping and further processing of information filed, storage mechanisms should consider imposing the use of appropriate formats and templates. Additionally, in order to facilitate the access to the information stored by end users, appropriate searching facilities and service support should be provided. For the purposes of coherence of the system, the standards should be, to the extent possible, identical for the storage mechanisms participating in the network and for the body designed to manage the network platform on a daily basis.

               (10)

               A gradual approach appears necessary in order to ensure that the electronic network of storage mechanisms will be able to meet the expectations of issuers and investors in the long term, notably the possibility of a virtual one-stop-shop for accessing financial information disclosed by listed companies. Therefore, it is appropriate to provide for an examination of possible solutions to enhance this network in the future. In order to ensure coherence with the initial establishment of the network, such examination should be undertaken by the competent authorities of the Member States within the CESR. This work should at least include an examination of the possibility to link this electronic network with the electronic network which is being developed by the national company registries covered by the First Council Directive 68/151/EEC of 9 March 1968 on coordination of safeguards which, for the protection of the interests of members and others, are required by Member States of companies within the meaning of the second paragraph of Article 58 of the Treaty, with a view to making such safeguards equivalent throughout the Community (5).

               (11)

               In order to allow the Commission to monitor closely the situation and to assess the need for further measures, including the possibility to adopt implementing measures in accordance with Article 22(2) of Directive 2004/109/EC, the Member States should be invited to provide the Commission with the relevant information,

         HEREBY RECOMMENDS:
   CHAPTER I
   SUBJECT MATTER

               1.

               The objective of this Recommendation is to encourage the Member States to ensure that the necessary steps are taken in order to effectively interconnect the officially appointed mechanisms for the central storage of regulated information, as referred to in Article 21(2) of Directive 2004/109/EC (hereinafter ‘the storage mechanisms’), in a single electronic network within the Community, as referred to in point (b) of second subparagraph of Article 22(1) of that Directive (hereinafter ‘the electronic network’).

         CHAPTER II
   THE ELECTRONIC NETWORK
   2.   The agreement on governance of the electronic network

               2.1.

               Member States should facilitate the establishment and development of the electronic network in its initial stage by mandating the competent authorities referred to in Article 24 of Directive 2004/109/EC to prepare within the Committee of European Securities Regulators (CESR) established by Decision 2001/527/EC, an agreement on the governance of the electronic network (hereinafter ‘the governance agreement’). The storage mechanisms should be closely associated to the preparation of that agreement.
               Member States should designate the entity empowered to conclude this agreement. In doing so, they should take into account the respective powers of the storage mechanisms, the competent authorities or other appropriate entity.

               2.2.

               The governance agreement should address at least the following issues:

                           (a)

                           the creation of a network platform;

                           (b)

                           the conditions to join the electronic network;

                           (c)

                           the consequences of non-compliance with the conditions of participation and how to enforce these conditions;

                           (d)

                           the appointment of a body that manages the network platform on a daily basis and the main conditions applicable to this management;

                           (e)

                           the mechanism to decide on the upgrades of the electronic network, which should take into account, where appropriate, the views of all stakeholders, including end users;

                           (f)

                           the funding conditions;

                           (g)

                           the dispute resolution system;

                           (h)

                           the mechanism for the modification of the agreement itself.

               2.3.

               Member States should take appropriate measures to ensure that the storage mechanisms comply with the governance agreement.

         3.   The conditions as regards technical interoperability of the electronic network
   The electronic network, established under the governance agreement, should, at least, contain the following functionalities:

               (a)

               a central application server and a central database containing a list of all issuers with a common interface and allowing, for each issuer, to link the end user to the storage mechanism which holds regulated information relating to that issuer;

               (b)

               a single access point for end users, which could be either achieved at a central point or at each storage mechanism individually;

               (c)

               an interface language directory available to end users at the single access point with the communication languages accepted nationally by the storage mechanisms participating in the electronic network;

               (d)

               access to all documents available nationally in the storage mechanisms participating in the electronic network, including, when available, information disclosed by issuers pursuant to Directive 2003/06/EC, Directive 2003/71/EC and other Community acts or national law;

               (e)

               the possibility of the further use of data accessible through the electronic network, where possible.

         4.   Pricing of access to the information contained in the electronic network

               4.1.

               Storage mechanisms should be free to establish their own pricing policy. However, they should not discriminate in their pricing policy between end users accessing to their information directly through their respective national access point and those accessing indirectly through the single access point provided by the electronic network.

               4.2.

               Storage mechanisms should consider granting free of charge access to investors or interested parties in relation to the regulated information, at least during a certain period following its filing by the issuer.

               4.3.

               Points 4.1 and 4.2 do not concern the provision of added value services by the storage mechanisms or by any third party using the information accessible through the electronic network.

         CHAPTER III
   THE MINIMUM QUALITY STANDARDS

      Section 1

      General

               5.

               Member States should ensure that the storage mechanisms participating in the electronic network comply with standards equivalent to the model standards laid down in this chapter.
               The Member States should also ensure that the body referred to in point 2.2(d) appointed pursuant to the governance agreement complies with the standards laid down in Sections 2 and 3.

               6.

               Member States should ensure that the same standards applying to issuers as defined in point 1(d) of Article 2 of Directive 2004/109/EC apply also to persons who have applied for admission to trading on a regulated market without the issuer's consent, as referred to in Article 21(1) of that Directive.

      Section 2

      Security

   7.   Security of communication

               7.1.

               The storage mechanism should have in place sound security mechanisms designed to ensure the security of the means of communication used to link the issuer with the mechanism, and to provide certainty as to the source of the information being filed.

               7.2.

               The storage mechanism should be, for security reasons, entitled to limit the means of communication to be used but it should be able, at least, to receive electronic filings through a system accessible to the issuer.
               In any event, the types of means of communication to be used should be easily accessible, commonly used and widely available at a low cost.

         8.   Integrity of stored regulated information

               8.1.

               The storage mechanism should store the information in a secure electronic format and should have in place appropriate security mechanisms designed to minimise the risks of data corruption and unauthorised access.

               8.2.

               The storage mechanism should ensure that the regulated information it holds as received from the issuer is complete and that the content of the regulated information is not editable while stored.
               In case that the storage mechanism accepts the filing of information using means of communication other than electronic, the storage mechanism should ensure, when converting the documents into electronic documents, that the content of the information is complete and unedited as originally sent by the issuer the information.

               8.3.

               Information that has been sent to the storage mechanism and displayed should not be taken out of the storage mechanism. If an addition or correction is necessary, then the correcting or additional piece of information should identify the item it modifies and should be identified as a correction or addendum.

         9.   Validation

               9.1.

               The storage mechanism should be able to validate the information filed, meaning that the mechanism should enable an automatic inspection of the filed documents for technical adherence to standards required, completeness and accuracy of their formats.

               9.2.

               The storage mechanism should have systems in place to detect interruptions of the electronic feed and to request the re-transmission of any data that it fails to receive from the sender.

         10.   Reliable access to services

               10.1.

               The storage mechanism should have security systems in place so as to ensure that its services can be accessed by issuers and end users, without disruption, 24 hours a day and seven days a week.
               Each storage mechanism should define its own requirements, based on the characteristics of its systems and the particular conditions in which it operates.
               The capacity of the systems, namely, the capacity of its servers and the bandwidth available, should be sufficient to support the expected requests from issuers, as regards filing of information, and end users, as regards access to stored information.

               10.2.

               The storage mechanism should be entitled to prevent access to its systems for brief periods when necessary in order to perform essential maintenance or in order to upgrade its services. Where possible, such interruptions should be announced in advance.

         11.   Acceptance of waivers and recovery
   The storage mechanism should have an evaluation process for reviewing and accepting or denying waivers for late filings due to technical issues of the storage mechanism and non-standard submissions. The mechanism should also provide recovery tools that allow the issuer to use other mechanisms of filing in place of the prescribed one when this is out of order. However, there should be an obligation on the issuer to re-file the information through the main mechanism when restored.
   12.   Back-up systems

               12.1.

               The storage mechanism should be technologically independent and have sufficient back-up facilities in place in order to maintain and to re-establish its services in a reasonable timeframe.

               12.2.

               The nature of these back-up systems will need to be evaluated by each storage mechanism taking into consideration the specific characteristics of the systems in place.

      Section 3

      Certainty as to the information source

   13.   Certainty as to the source of information and the authenticity of origin

               13.1.

               The storage mechanism should have in place sound systems designed to provide certainty as to the source of the information being filed. The storage mechanism should have certainty that the information it receives is from an authentic source. The storage mechanism should verify that any regulated financial information it receives directly originates from the person or entity that has the filing obligation or from a person or entity authorised to on its behalf.

               13.2.

               The storage mechanism should be able to electronically acknowledge receipt of documents. The storage mechanism should either confirm validation of filing or reject a submission with an explanation for the rejection and it should have a ‘non-repudiation’ function.

         14.   User Authentication
   The security measures of the storage mechanism should be designed to establish the validity of the originator, or a means of verifying an individual’s authorization to send specific information. The storage mechanism should be entitled to impose the use of digital signatures, access codes or any other appropriate measure providing with sufficient certainty.
   15.   Need to ensure integrity of the content of regulated information
   The storage mechanism should assure that there is no significant risk of corruption or change of original information either accidentally or maliciously and to ascertain any alteration.

      Section 4

      Time recording

   16.   Electronic docketing and date and time stamp

               16.1.

               The storage mechanism should be able to automatically docket electronic filings and add a date and time stamp.

               16.2.

               The storage mechanism should be entitled to impose the filing of information in pre-determined formats and templates allowing for the use of straight-through processing technology.
               If particular formats are imposed, the storage mechanism should nevertheless use open architecture systems for the filing of information and should, at least, accept:

                           (a)

                           file formats and transmission protocols that are non-proprietary and that obviate single vendor software applications;

                           (b)

                           commonly used and generally accepted proprietary formats.

                     If templates are imposed, the storage mechanism should ensure that they are easily accessible and, where available, they should be aligned with those used for filing the same regulated information with the competent authority.

               16.3.

               The information should be date and time stamped as it enters into the storage mechanism, irrespective of whether the information is checked by the competent authority before (ex ante control) or will be checked after (ex post control) it enters in the storage mechanism.

      Section 5

      Easy Access by end users

   17.   Presentation of the information
   When presenting its services to the end users, the storage mechanism should distinguish between regulated financial information filed pursuant to a legal obligation and any additional valued-added service offered by the storage mechanism.
   18.   Language regime

               18.1.

               The storage mechanism should file and facilitate access to all the available linguistic versions of the information as submitted by the issuer. However, access to all the linguistic versions does not mean that the information should be translated by the storage mechanism into languages other than those submitted by the issuer.

               18.2.

               The searching facilities in the storage mechanism should be available in the language accepted by the competent authorities in the home Member State and, at least, in a language customary in the sphere of international finance.

         19.   Technical accessibility

               19.1.

               The storage mechanism should use open architecture systems for the access to the stored information. In designing the systems, the storage mechanism should ensure that its systems allow or are capable of allowing for technical interoperability with other storage mechanisms in the same or in other Member States.

               19.2.

               Information should be accessible to end users by the storage mechanism as soon as technically feasible from its filing, taking into consideration the structures and operating procedures of the storage mechanism. The storage mechanism should not deliberately delay the process.

               19.3.

               The storage mechanism should provide end users with access to all stored regulated information on a continuous basis, in accordance with the conditions described in point 10.

               19.4.

               The storage mechanism should offer service support for its users. The level of support that each storage mechanism decides to provide needs to be decided at national level.

         20.   Format of the information that can be accessed by end users

               20.1.

               Regulated information held by the storage mechanism should be held in a format that enables users to view, download and print, in a straightforward manner, the full content of regulated information from wherever the user is located. However, access to the regulated information does not mean that printed copies of this information should be made available by the storage mechanism.

               20.2.

               The storage mechanism should offer end users the possibility to search, order and interrogate regulated information stored.

               20.3.

               The storage mechanism should record sufficient reference information relating to the regulated information it receives. Such reference information should, at least, include the following items:

                           (a)

                           identify the information as regulated information;

                           (b)

                           the name of the issuer from which the regulated information originated;

                           (c)

                           the title of the document;

                           (d)

                           the time and date on which the regulated information was disseminated;

                           (e)

                           the language of the document;

                           (f)

                           the type of regulated information.

                     The storage mechanism should organise and categorise regulated information in accordance with, at least, the items listed in the first subparagraph.
               The storage mechanism should be allowed to require issuers to provide the necessary reference information when filing regulated information.
               The storage mechanism should align these categories with the other storage mechanisms, in particular in relation to the type of regulated information, in accordance with the agreement referred to in chapter II of this Recommendation.

               20.4.

               The storage mechanism should be allowed to require issuers to use predetermined file formats and templates. In any event, the storage mechanism should, at least, accept:

                           (a)

                           file formats and transmission protocols that are non-proprietary and that obviate single vendor software applications;

                           (b)

                           commonly used and generally accepted proprietary formats.

                     If templates are imposed, the storage mechanism should ensure that they are easily accessible and they should be aligned with those used for filing the same regulated information with the competent authority.

         CHAPTER IV
   GUIDELINES FOR FUTURE DEVELOPMENT OF ELECTRONIC NETWORK

               21.

               The Member States should encourage the competent authorities to draw up, by 30 September 2010, within CESR, appropriate guidelines for the future development of the electronic network.

               22.

               Those guidelines should in particular examine the feasibility, including a cost/benefit analysis, to require:

                           (a)

                           the use, in all the access points to the electronic network, of harmonised searching facilities based on a set of common search keys and reference data items, thus harmonising the methods of classifying and identifying the information to store;

                           (b)

                           the use of common input formats and standards for the submission of regulated information to the storage mechanisms;

                           (c)

                           the use by the storage mechanism of a common list of types of regulated information;

                           (d)

                           the technical interconnection with the electronic network developed by the national company registries covered by the Directive 68/151/EEC;

                           (e)

                           entrusting the supervision of the services provided by any legal entity operating the common elements of the electronic network to a single body composed of representatives of the competent authorities referred to in Article 24 of Directive 2004/109/EC.

                     The harmonised searching facilities referred to in point (a) of the first subparagraph should at least provide for the possibility of making:

                           (a)

                           searches using common category labels attached to the regulated financial information when filed with the storage mechanisms, such as: issuer name; date of filing; country of issuer; title of document; industry/branch of trade and type of regulated information;

                           (b)

                           dynamic or chain searches;

                           (c)

                           multiple-country searches with a single request.

                     The guidelines should also develop common lists for the purposes of establishing sub-category labels with regard to industry/branch of trade and type of regulated information.

         CHAPTER V
   FOLLOW-UP AND ADDRESSEES

               23.

               Member States are invited to inform the Commission of the steps taken in the light of this Recommendation by 31 December 2008.

               24.

               This recommendation is addressed to the Member States.

      Done at Brussels, 11 October 2007.

            For the Commission

         Charlie McCREEVY

            Member of the Commission

      (1)  OJ L 390, 31.12.2004, p. 38.

      (2)  OJ L 96, 12.4.2003, p. 16.

      (3)  OJ L 345, 31.12.2003, p. 64.

      (4)  OJ L 191, 13.7.2001, p. 43.

      (5)  OJ L 65, 14.3.1968, p. 8. Directive as last amended by Directive 2006/99/EC (OJ L 363, 20.12.2006, p. 137).