title: Recommendation of the European Central Bank of 25 June 2009 to the Council of the European Union on the external auditors of Národná banka Slovenska (ECB/2009/14)

text:
               1.7.2009

               EN

               Official Journal of the European Union

               C 149/1

      RECOMMENDATION OF THE EUROPEAN CENTRAL BANK

   of 25 June 2009
   to the Council of the European Union on the external auditors of Národná banka Slovenska
   (ECB/2009/14)
   2009/C 149/01
   THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
   Having regard to the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the ‘Statute of the ESCB’), and in particular Article 27.1 thereof,
   Whereas:

               (1)

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

               (2)

               Pursuant to Article 1 of Council Decision 2008/608/EC of 8 July 2008 in accordance with Article 122(2) of the Treaty on the adoption by Slovakia of the single currency on 1 January 2009 (1), Slovakia adopted the single currency on 1 January 2009.

               (3)

               Pursuant to Article 38 of the Law on Národná banka Slovenska, as from 1 January 2009 the accounts of Národná banka Slovenska are audited in accordance with Article 27.1 of the Statute of the ESCB.

               (4)

               Národná banka Slovenska has selected Deloitte Audit s.r.o. as its external auditors for the financial year 2009,

         HAS ADOPTED THIS RECOMMENDATION:
   It is recommended that Deloitte Audit s.r.o. should be appointed as the external auditors of Národná banka Slovenska for the financial year 2009.

      Done at Frankfurt am Main, 25 June 2009.

            The President of the ECB

         Jean-Claude TRICHET

      (1)  OJ L 195, 24.7.2008, p. 24.


				|

		52011SC0828

			Recommendation for a COUNCIL RECOMMENDATION on the implementation of the broad guidelines for the economic policies of the Member States whose currency is the euro /* SEC/2011/0828 final */

			   	Recommendation for a
COUNCIL RECOMMENDATION
on the implementation of the broad
guidelines for the economic policies of the
Member States whose currency is the euro
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 136 in combination
with Article 121(2) thereof,
Having regard to the recommendation of the
European Commission[1],
Having regard to the conclusions of the
European Council,
After consulting the Economic and Financial
Committee,
Whereas:
(1)
On […] the Euro Group held a discussion on the
implementation of the broad guidelines for the economic policies of Member
States whose currency is the euro area, recognising the need further to
strengthen within the Euro Group the policy coordination and the monitoring of
the implementation of the recommendations addressed to the Member States whose
currency is the euro.
(2)
On 26 March 2010, the European Council agreed to
the European Commission's proposal to launch a new strategy for jobs and
growth, Europe 2020, based on enhanced coordination of economic policies, which
will focus on the key areas where action is needed to boost Europe’s potential
for sustainable growth and competitiveness.
(3)
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). Member States and, where relevant, the European Union
were invited to take the guidelines into account in their economic policies.
(4)
On 12 January 2011, the Commission adopted the
first Annual Growth Survey, marking the start of a new cycle of economic
governance in the EU and the first European semester of ex-ante and integrated
policy coordination, which is anchored in the Europe 2020 strategy.
(5)
On 25 March 2011, the European Council endorsed
the priorities for fiscal consolidation and structural reform (in line with the
Council’s conclusions of 15 February and 7 March 2011 and further to the
Commission’s Annual Growth Survey). It underscored the need to give priority to
restoring sound budgets and fiscal sustainability, reducing unemployment
through labour market reforms and making new efforts to enhance growth. It
requested Member States to translate these priorities into concrete measures to
be included in their Stability or Convergence Programmes and National Reform
Programmes.
(6)
On 25 March 2011, the European Council also
invited the Member States participating in the Euro Plus Pact to present their
commitments in time to be included in their Stability or Convergence Programmes
and their National Reform Programmes.
(7)
In April and May 2011 the euro area Member
States submitted their 2011 Stability Programmes covering the period 2011-2014
and their 2011 National Reform Programmes. These programmes have been assessed
at the same time.
(8)
The experience of the first decade of the euro
generally underlined the many benefits of the single currency. However, the global
crisis resulted in a deep contraction in 2009, which sent euro area GDP below
its 2006 level. While 2010 saw that GDP grow again, output still remains below
that of 2007. As a consequence, euro area unemployment rose from 7.6% in 2007
to 10.1% in 2010. Public finances in the euro area deteriorated, triggering a
significant reassessment of sovereign debt risks in some Member States and bringing
about risks to macro-financial stability. Growth is now recovering, with
divergences between Member States reflecting both structural and cyclical
differences. The crisis triggered reduction in macroeconomic imbalances which
had developed before the crisis. However, it remains to be seen whether this is
sufficient and sustainable.
(9)
General government balances in the euro area
have, on average, begun to improve in 2010. Based on the Commission spring
forecast, assuming unchanged policies, they are expected to continue improving
in 2011. However, public debt will continue to grow until 2012. If not
corrected in the years to come, it may jeopardise long-term fiscal
sustainability given the combination of low potential growth and unfavourable
demographic developments. In 2010, the euro area deficit decreased to 6.0% of
GDP, while the debt ratio increased to 85.1% of GDP. According to the 2011
Stability Programme targets, the euro area deficit would fall to 1.3% of GDP in
2014 and the debt ratio would begin to decline again to below 85% of GDP in
2014, after peaking in 2012. Such a path of fiscal consolidation for the euro
area as a whole would be broadly compatible with the strengthening of the
recovery. The planned emphasis of consolidation on expenditure reduction
relative to tax increases enhances the likelihood of its success. Still, a
concern remains in a number of countries as to the effective implementation of
the plans. Moreover, several euro area Member States have recently implemented new
fiscal rules or announced the strengthening of existing ones, but these will in
some Member States require additional measures to be fully effective. In view
of ageing populations, reforms of pensions and social security systems are not
yet sufficient to ensure fiscal sustainability.
(10)
The EU policy response has brought improvements
to the functioning and stability of the financial system. Challenges in the financial sector in several euro area Member
States include banks' exposure to further losses on their asset holdings or a tightening of conditions
on refinancing markets, the continuation of banking sector restructuring and
recapitalisation, while public sector support to the banking sector is still to
be phased out.
(11)
Improvements in productivity and competitiveness
are needed to increase the growth potential of the euro area and to address the
macroeconomic imbalances within the euro area. In this respect, euro area
Member States announced a number of structural reforms in their National Reform
Programmes. However, there are still shortcomings on measures needed to improve
the functioning of their product and labour markets, notably regarding service
sectors, growth-friendly fiscal consolidation, and the wage setting systems.
(12)
In order to ensure the proper functioning of
EMU, euro area Member States are under a particular obligation to regard their
economic policies as a matter of common concern due to the potential for
spillover effects among countries sharing a common currency. Therefore, a more
comprehensive and permanent overhaul of economic policy coordination at the EU
and euro area level proved necessary in light of the crisis and the current
challenges. The integrated annual surveillance cycle enshrined in the 'European
Semester', the strengthened economic governance framework as proposed by the
Commission, the creation of the European Systemic Risk Board and the European
supervisory agencies, and the European Stability Mechanism are essential
elements some of which remain to be fully adopted and/or implemented. The 'Euro
Plus Pact' further reinforces this framework.
(13)
The Commission has assessed the Stability
Programmes and the National Reform Programmes of the euro area Member States[2],
taking into account the need to reinforce the overall economic governance of
the euro area. It considers that strict adherence to budgetary targets, with a reinforcement
in some Member States, and further measures to strengthen fiscal rules and
sustainability are required. Additional steps should also be taken to improve financial
stability, incentives to work, wage setting mechanisms, the efficiency of
service sectors, and euro area governance,
RECOMMENDS that Member States whose
currency is the euro should take action within the period 2011-2012 to:
(1)
Strictly adhere to the budgetary targets set out
in their 2011 Stability Programmes as well as the Memoranda
of Understanding in Member States receiving EU/IMF
financial assistance and, where applicable, reinforce consolidation efforts in
line with the opinion delivered by the Council.
(2)
Ensure fiscal discipline at both national and
sub-national levels by introducing fiscal rules supported by a sufficiently
strong and binding legal framework.
(3)
Implement reforms to social security systems
that ensure fiscal sustainability with due regard to the adequacy of pensions
and social benefits, notably by aligning pension systems with the national
demographic situation.
(4)
Improve the functioning and stability of the
financial system, following up immediately on the forthcoming EU-wide stress
tests to ensure that the banking sector becomes resilient to possible further
losses or funding constraints and that non-viable financial institutions are
able to restructure or exit the market without creating undue tensions on financial
markets.
(5)
Pursue further tax
reforms which give priority to growth-friendly sources of taxation while
preserving overall tax revenues, in particular by lowering taxes on labour to
make work pay; when reducing public expenditure, protect growth-enhancing items
such as spending on research and development, education and energy efficiency; where
necessary adjust wage setting arrangements and indexation mechanisms in
consultation with social partners, so as to ensure that wages are evolving in
line with productivity and competitiveness.
(6)
Introduce further reforms in service sectors, in
particular by removing unjustified restrictions on professional services,
retailing and network industries.
(7)
Fully implement the commitments made in the Euro
Plus Pact so as to enhance growth, competitiveness and employment within the
area.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ C , , p. .
[2]               SEC(2011) 737.


Recommendation for a Council opinion in accordance with the third paragraph of Art. 5 of Council Regulation (EC) No 1466/97 of 7 July 1997 on the updated stability programme of Spain, 2005-2008


title: Commission Recommendation of 30 May 2008 on risk reduction measures for the substances zinc oxide, zinc sulphate and trizinc bis(orthophosphate) (notified under document number C(2008) 2322) (Text with EEA relevance)

text:
               20.6.2008

               EN

               Official Journal of the European Union

               L 161/47

      COMMISSION RECOMMENDATION

   of 30 May 2008
   on risk reduction measures for the substances zinc oxide, zinc sulphate and trizinc bis(orthophosphate)
   (notified under document number C(2008) 2322)
   (Text with EEA relevance)
   (2008/468/EC)
   THE COMMISSION OF THE EUROPEAN COMMUNITIES,
   Having regard to the Treaty establishing the European Community,
   Having regard to Council Regulation (EEC) No 793/93 of 23 March 1993 on the evaluation and control of the risks of existing substances (1) and in particular Article 11(2) thereof,
   Whereas:

               (1)

               In the framework of Regulation (EEC) No 793/93 the following substances have been identified as priority substances for evaluation in accordance with Commission Regulation (EC) No 2268/95 of 27 September 1995 concerning the second list of priority substances as foreseen under Regulation (EEC) No 793/93 (2):

                           —

                           zinc oxide,

                           —

                           zinc sulphate,

                           —

                           trizinc bis(orthophosphate).

               (2)

               The Member State designated as rapporteur pursuant to this Commission Regulation has completed the risk evaluation activities with regard to man and the environment for those substances in accordance with Commission Regulation (EC) No 1488/94 of 28 June 1994 laying down the principles for the assessment of risks to man and the environment of existing substances in accordance with Council Regulation (EEC) No 793/93 (3) and has suggested a strategy for limiting the risks.

               (3)

               The Scientific Committee on Toxicity, Ecotoxicity and the Environment (SCTEE) and the Scientific Committee on Health and Environmental Risks (SCHER) have been consulted and have issued opinions with respect to the risk evaluations carried out by the rapporteur. The opinions have been published on the website of those Scientific Committees.

               (4)

               The results of the risk evaluation and further results of the strategies for limiting the risks are set out in the corresponding Commission Communication (4).

               (5)

               It is appropriate, on the basis of that evaluation, to recommend risk reduction measures for the substances covered by this Recommendation and the Communication.

               (6)

               The risk reduction measures provided for in this recommendation are in accordance with the opinion of the Committee set up pursuant to Article 15(1) of Regulation (EEC) No 793/93,

         HEREBY RECOMMENDS:
   SECTION 1
   ZINC OXIDE

         (CAS No 1314-13-2; Einecs No 215-222-5)

   ZINC SULPHATE

         (CAS No 7733-02-0; Einecs No 231-793-3)

   TRIZINC BIS(ORTHOPHOSPHATE)

         (CAS No 7779-90-0; Einecs No 231-944-3)

   Risk reduction measures for the environment (1, 2, 3, 4 and 5)

               1.

               For the river basins where emissions of zinc may cause a risk, the Member States concerned should establish environmental quality standards (hereafter EQS). The national pollution reduction measures to achieve those EQS in 2015 should be included in the river basin management plans in line with the provisions of Directive 2000/60/EC of the European Parliament and of the Council (5).

               2.

               The Member States should provide information to the Commission on the contribution of zinc sources and pathways to the aquatic environment, on possible controls and also on the levels of zinc in the aquatic environment, in order to consider possible inclusion of zinc in the next review of Annex X to Directive 2000/60/EC.

               3.

               The competent authorities in the Member States concerned should lay down conditions, emission limit values or equivalent parameters or technical measures regarding zinc and zinc compounds in the permits issued under Directive 2008/1/EC of the European Parliament and of the Council (6) in order for installations to operate according to the best available techniques (hereafter BAT) taking into account the technical characteristic of the installations concerned, their geographical location and the local environmental conditions.

               4.

               Member States should carefully monitor the implementation of BAT regarding zinc and zinc compounds and report any important developments to the Commission in the framework of the exchange of information on BAT.

               5.

               Local emissions to the environment should, where necessary, be controlled by national rules to ensure that no risk for the environment is expected.

         SECTION 2
   ADDRESSEES

               6.

               This Recommendation is addressed to Member States.

      Done at Brussels, 30 May 2008.

            For the Commission

         Stavros DIMAS

            Member of the Commission

      (1)  OJ L 84, 5.4.1993, p. 1. Regulation as amended by Regulation (EC) No 1882/2003 of the European Parliament and of the Council (OJ L 284, 31.10.2003, p. 1).

      (2)  OJ L 231, 28.9.1995, p. 18.

      (3)  OJ L 161, 29.6.1994, p. 3.

      (4)  OJ C 155, 20.6.2008, p. 1.

      (5)  OJ L 327, 22.12.2000, p. 1. Directive as last amended by Directive 2008/32/EC (OJ L 81, 20.3.2008, p. 60).

      (6)  OJ L 24, 29.1.2008, p. 8.


				|

		52013DC0359

			Recommendation for a COUNCIL RECOMMENDATION on Spain’s 2013 national reform programme and delivering a Council opinion on Spain’s stability programme for 2012-2016 /* COM/2013/0359 final */

Recommendation for a
COUNCIL RECOMMENDATION
on Spain’s 2013 national reform programme
and delivering a Council opinion on Spain’s stability programme for 2012-2016
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[3],
Having regard to the resolutions of the
European Parliament,[4]
Having regard to the conclusions of the
European Council,
Having regard to the opinion of the
Employment Committee,
After consulting the Economic and Financial
Committee,
Whereas:
(1)       On 26 March 2010, the
European Council agreed to the Commission’s proposal to launch a new strategy
for growth and jobs, Europe 2020, based on enhanced coordination of economic
policies, which will focus on the key areas where action is needed to boost Europe’s potential for sustainable growth and competitiveness.
(2)       On 13 July 2010, on the
basis of the Commission's proposals, the Council adopted a recommendation on
the broad guidelines for the economic policies of the Member States and the
Union (2010 to 2014) and, on 21 October 2010, adopted a decision on guidelines
for the employment policies of the Member States[5],
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 Heads
of State and 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
achieve the objectives of the Europe 2020 Strategy and to implement the
country-specific recommendations.
(4)       On 6 July 2012, the
Council adopted a recommendation on Spain’s national reform programme for 2012
and delivered its opinion on Spain’s updated stability programme for 2011-2015.
(5)       On 28 November 2012, the
Commission adopted the Annual Growth Survey[6],
marking the start of the 2013 European Semester of economic policy
coordination. On 28 November 2012, the Commission, on the basis of Regulation
(EU) No 1176/2011, adopted the Alert Mechanism Report[7], in which it identified Spain as one of the Member States for which an in-depth review would be carried out.
(6)       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.
(7)       On 10 April 2013, the
Commission published the results of its in-depth review[8] for Spain, under Article 5 of
Regulation (EU) no 1176/2011. The Commission's analysis lead it to conclude
that Spain is experiencing excessive macroeconomic imbalances. In particular,
very high domestic and external debt levels continue to pose risks for growth
and financial stability; the banking sector is undergoing a process of
recapitalisation and restructuirng, including with public money; rigidities in product
and labour markets contribute to high and rising unemployment, and more
generally hinder the adjustment of the economy. Although adjustment is taking
place, the magnitude of the necessary correction requires continuous strong
policy action, in the areas of product and service markets, labour market,
financial sector, and public finances.
(8)       On 30 April 2013, Spain submitted its 2013 stability programme covering the period 2012-2016 and its 2013
national reform programme (NRP). 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 2013 stability programme pursuant to Article 5(1) of Council Regulation
(EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario
underpinning the budgetary projections in the programme is broadly plausible
for 2013 and subject to some downside risks in 2014 and beyond compared with
the Commission's 2013 spring forecast. Although the programme projects growth
to be lower over the 2014-16 period compared to the Commission's 2013 spring
forecast, the latter is based on a no-policy-change assumption and hence does
not take into account the fiscal consolidation that will be needed to attain
the budgetary targets in the programme. The objective of the budgetary strategy
outlined in the programme is to bring the general government deficit below the
3% of GDP reference value by 2016. The consolidation relies mainly on
expenditure restraint with the expenditure ratio decreasing by 3.7 percentage
points over the 2012-16 period, but also on some revenue-increasing measures.
Based on the (recalculated) structural balance[9]
the annual improvement of the structural deficit planned in the programme is
1.2%, 0.4%, 0.9% and 0.9% of GDP for the years 2013 to 2016. Following the
correction of the excessive deficit, the programme confirms the medium-term
objective (MTO) of a balanced budgetary position in structural terms, which
would be achieved by 2018. The MTO is more ambitious than required by the
Stability and Growth Pact. The envisaged pace of adjustment in structural terms
in 2017-18 represents sufficient progress towards the MTO. The programme
projects the government debt ratio to peak in 2016 and to start declining
thereafter. The deficit and debt adjustment paths are subject to downside
risks. Measures to support the deficit targets are not sufficiently specified,
especially at regional level. For 2016 the programme does not present any
measures and previous temporary measures are extended only to 2014. Planned
savings from the local government reform are subject to significant
implementation risks. Moreover, there are uncertainties surrounding the
economic, labour market and financial situation as well as revenue developments
in the context of persisting large macroeconomic imbalances. Fully implementing
the adopted early retirement reform and reaching an agreement on the
sustainability factor would mitigate risks in the social security system. A
further risk stems from contingent liabilities linked with asset protection
schemes/guarantees. There were major progress in the reporting of budgetary
execution, but there is scope for a more transparent and timely implementation
of the Budgetary Stability Law's preventive and corrective mechanisms.
Systematic and timely reporting on government arrears, whose large outstanding
stock required an ad-hoc repayment scheme, is missing. The establishment of an
independent fiscal council has been lagging behind schedule. A proposed
revision of indexation rules for all public revenues and expenditures would
bring budgetary savings and a higher responsiveness of prices to economic
conditions. The NRP also acknowledges the need to further improve
cost-effectiveness in healthcare and pharmaceutical expenditure, e.g. by
revising reference prices and centralising purchasing of pharmaceutical
products, or extending co-payments.
(10)     While significant rebalancing
of the relative tax burden towards consumption and environmental taxes took
place in 2012, the Spanish tax-to-GDP ratio remains among the lowest in the EU.
The efficiency of the tax system can be improved further by increasing the
share of more growth-friendly indirect taxes and by tackling tax fraud and
evasion, in line with the fiscal consolidation efforts. Spain took some measures to address the debt bias in corporate taxation, but further
efforts are necessary in the context of high private indebtedness.
(11)     The financial sector
adjustment programme is on track. In particular, the necessary recapitalisations
have been carried out, and the asset management company Sareb has been set up.
The restructuring of banks, in accordance to the decisions under state aid
rules, will require continued attention in the coming years. To alleviate the
funding and liquidity constraints on companies Spain implemented in 2012 a
large plan of payment of State commercial debt to companies (EUR 27.3 bn) and
launched various initiatives to widen the financing options for firms. An
extension of the plan to repay State commercial debt is foreseen for 2013.
(12)     The situation on the labour
market remains critical. The readjustment of the economy away from domestic
demand and construction in a context of market rigidities and skills mismatch,
among others, have contributed to the increase in the unemployment rate to 27% in
early 2013. Of particular concern is the marked increase of the youth
unemployment rate to 56% and the rise of long-term unemployment to 44.4% of
total unemployment at the end of 2012. Available data suggest that the 2012
labour market reform has started to lead to higher internal (within the firm) flexibility,
to some reduction of dismissal costs and to increasing wage moderation. An
official assessment of the reform against its stated objectives, with a view to
complement it where needed, has been announced in the NRP for July 2013. Reforms
in the field of active labour market policies have lagged behind and actions to
modernise and reinforce the Public Employment Service itself are still needed
and the recently adopted opening for private placement agencies remains to be
made fully operational as well as the co-operation between national and
regional public employment services (Single Job Portal).
(13)     A high share of unemployed
without formal qualifications (35%) and inadequate labour market relevance of
education and training contribute to the high youth unemployment rate, as well
as to long term unemployment.The national Youth Employment and Entrepreneurship
Strategy 2013-2016, presented in March 2013, incorporates a range of short- and
longer-term measures intended to improve employment opportunities for young
people. At the same time, dual vocational training has been introduced and
pilot projects have already started in 2012. The 2013 NRP also highlights the
importance of a swift implementation of the reform of the educational system
and improving the overall quality of education and training.
(14)     Mainly as a result of the
labour market situation, but also due limited effectiveness of social
protection in reducing poverty, Spain is below the EU average in the main key
indicators measuring poverty and social exclusion, with children being
particularly exposed. Overall, no major improvements were registered in the
development of new policy measures. The NRP does not include information on the
content or the timeframe for the approval of the National Action Plan on Social
Inclusion 2013-2016. The key challenges lie in the need to rationalise targets
and resources under an adequate policy framework, improve governance and
inter-institutional coordination at national, regional and local level,
simplify procedures for social assistance claimants and review mobility
barriers. Some progress was registered in measures to tackle child poverty and
improve the efficiency of family support services.
(15)     Weaknesses in the business
environment such as segmentation of the domestic market or entry barriers in
services' industries, hold back job creation and reform progress in this area is
taking longer than envisaged in the September 2012 reform plan. The first draft
of the Law on market unity was adopted by the government in January 2013 and
its final approval by Parliament is foreseen by end-2013. The reiterated
commitments in the 2013 NRP foresee a first draft of the law on professional
services by the end of June 2013 and final adoption of the Law on entrepreneurship
and on company internationalization before the end of 2013. In spite of the
expected effects of these reforms, there is still scope to further ease market
entry and exit conditions, in particular by reducing the time needed for
business licencing and by reviewing the insolvency framework. Moreover,
regulatory and other barriers to firms' growth should be tackled. In spite of recent
reforms, barriers to entry for large-surface outlets continue to limit competition
in the retail sector. In September 2012 the government adopted a draft law to
merge the national competition authority with supervisory and regulatory
authorities in six sectors, thus creating a single body — the National
Commission for Markets and Competition (CNMC). This reform aims at a consistent
application of competition principles across the various economic sectors. Removing
the tax deductability of mortgage interest payments and re-payments in 2012 was
essential to shifting incentives away from home ownership, but efforts to
create a larger and more efficient rental market, which would also support
labour mobility, are still at an early stage.
(16)     The electricity tariff
deficit, which implies a potentially sizeable contingent liability for the
budget and non-negligible macroeconomic risks, has not yet been tackled
conclusively, as the measures presented during 2012 and in early 2013 have been
insufficient. In the 2013 NRP, the government announced that a draft law
further reforming the electricity sector will be presented by the end of June
2013. There is scope for further improving competition in the retail
electricity market. The transport infrastructure is abundant but there is scope
to make the selection of investment more stringent and prioritise efficient
maintenance of existing networks. Setting up an independent observatory, as
planned, would help in this respect. At the same time, technical and legal
obstacles prevent competition in railway freight and passenger transport.
(17)     The highly decentralised
setting calls for an enhanced coordination between the various public
administrations, both to reduce costs and to limit the administrative burden on
companies and households. To this end, several initiatives have been undertaken
or are on-going. In particular in February 2013 the government presented a
draft Law on local administration reform (to be adopted by Parliament before
end-2013) and a committee for the reform of the public administration was
established. It shall present proposals for a reform of the Spanish public
administration by the end of June 2013. Reforms to improve the working of the
judicial system are on-going, although some measures are cumulating delays and
scope to improve the efficiency of the Spanish judiciary remains.
(18)     In the context of the
European Semester, the Commission has carried out a comprehensive analysis of Spain's economic policy. It has assessed the stability programme and national reform
programme. It has taken into account not only their relevance for sustainable
fiscal and socio-economic policy in Spain but also their compliance with EU
rules and guidance, given the need to reinforce the overall economic governance
of the European Union by providing EU-level input into future national
decisions. Its recommendations under the European Semester are
reflected in recommendations (1) to (10) below.
(19)     In the light of this
assessment, the Council has examined Spain’s stability programme, and its
opinion[10]
is reflected in particular in recommendation (1) below,
(20)     In the light of the
Commission's in-depth review and this assessement, the Council has examined the
national reform programme and the stability programme. The assessment concludes
that the proposed reform agenda is comprehensive and goes in the right
direction. At the same time, the assessment underscores the urgency of adopting
and effectively implementing the missing reforms so that they can start
deploying the expected positive effects. Its recommendations under Article 6 of
Regulation (EU) No 1176/2011 are reflected in recommendations (1), (2), (3),
(4), (5), (7), (8) and (9) below.
(21)     In the context of the
European Semester the Commission has also carried out an analysis of the
economic policy of the euro area as a whole. On this basis the Council has
issued specific recommendations addressed to the Member States whose currency
is the euro. Spain should also ensure the full and timely implementation of
these recommendations.
HEREBY RECOMMENDS that Spain should take action within the period 2013-2014 to:
1.           Deliver the structural
fiscal effort as required by the Council recommendation under the EDP to ensure
correction of the excessive deficit by 2016. To this end, implement the
measures adopted in the 2013 budget plans at all levels of government,
reinforce the medium-term budgetary strategy with sufficiently specified
structural measures for the years 2014-16. A durable correction of the fiscal
imbalances is predicated upon the credible implementation of ambitious
structural reforms which would increase the adjustment capacity and boost
potential growth and employment. After achieving the correction of the
excessive deficit, pursue the structural adjustment at an appropriate pace so
as to reach the medium term objective by 2018. Ensure a strict and transparent
enforcement of the preventive and corrective measures provided for in the
Budgetary Stability Organic Law. Establish an independent fiscal authority
before the end of 2013 to provide analysis, advice and monitor compliance of
fiscal policy with national and EU fiscal rules. Improve the efficiency
and quality of public expenditure at all levels of government, and conduct a
systematic review of major spending items by March 2014. Increase the cost-effectiveness
of the health-care sector, while maintaining accessibility for vulnerable
groups, for example by reducing hospital pharmaceutical spending, strengthening
coordination across types of care and improving incentives for an efficient use
of resources. Take measures to reduce the outstanding amount of government
arrears, avoid their further accumulation and regularly publish data on
outstanding amounts. Adopt the dis-indexation law to reduce the degree
of price inertia in public expenditures and revenues, in time to have it in
force by the beginning of 2014 and consider additional steps to limit the
application of indexation clauses. Finalise by end-2013 the regulation of the
sustainability factor so as to ensure the long-term financial stability of the pension
system, including by providing that the retirement age will rise in line with
gains in life expectancy.
2.           Conduct a systematic
review of the tax system by March 2014. Consider further limiting tax
expenditure in direct taxation, explore the scope to further limit the
application of the reduced VAT rates and take additional steps in environmental
taxation, notably as regards fuel taxes. Take further measures to address the
debt bias in corporate taxation. Intensify the fight against the shadow economy
and undeclared work.
3.           Implement the financial
sector programme for the recapitalisation of the financial institutions,
including the measures promoting non-bank intermediation adopted in November
2012.
4.           Finalise the evaluation of
the 2012 labour market reform covering the full range of its objectives and
measures by July 2013, and present amendments, if necessary, by September 2013.
Adopt the 2013 national Employment Plan by July 2013 and enact swiftly a
result-oriented reform of active labour market policies, including by
strengthening the targeting and efficiency of guidance. Reinforce and modernise
public employment services to ensure effective individualised assistance to the
unemployed according to their profiles and training needs. Reinforce the
effectiveness of re-skilling training programmes for older and low-skilled workers.
Fully operationalize the Single Job Portal and speed up the implementation of
public-private cooperation in placement services to ensure its effective
application already in 2013.
5.           Implement and monitor
closely the effectiveness of the measures to fight youth unemployment set out
in the Youth Entrepreneurship and Employment Strategy 2013-2016, for example
through a Youth Guarantee. Continue with efforts to increase the labour market
relevance of education and training, to reduce early school leaving and to
enhance life-long learning, namely by expanding the application of dual
vocational training beyond the current pilot phase and by introducing a
comprehensive monitoring system of pupils' performance by the end of 2013.
6.           Adopt and implement the
necessary measures to reduce the number of people at risk of poverty and/or
social exclusion by reinforcing active labour market policies to improve
employability of people further away from the labour market and by improving
the targeting and increasing efficiency and effectiveness of support measures
including quality family support services.
7.           Urgently adopt and
implement the draft Law on Market Unity and speed up all complementary actions
needed for its swift implementation. Ensure the effectiveness, autonomy and
independence of the newly created regulatory authority. By the end of 2013,
adopt and implement the Law on professional associations and services and the
Law on Entrepreneurship. Regroup and concentrate support schemes for the internationalisation
of firms. Reduce the number and shorten licensing procedures, including for
industrial activities, and spread the use of the "express licence"
approach to activities other than retail. Review insolvency frameworks for
companies and individuals, including through limiting personal liability of
entrepreneurs and easing second chances for failed businesses. Remove
unjustifiable restrictions to the establishment of large-scale retail premises.
By March 2014, review the effectiveness of the regulatory framework to support
the development of the housing rental market.
8.           Tackle the electricity
tariff deficit by adopting and implementing a structural reform of the
electricity sector by the end of 2013. Intensify efforts to complete the
electricity and gas interconnections with neighbouring countries. Reduce the
contingent liability for public finances stemming from unprofitable transport
infrastructure. Provide for an independent national assessment of future major
infrastructure projects. Take measures to ensure effective competition in
freight and passenger rail services.
9.           Adopt in line with the
presented timetable the reform of the local administration and define by October
2013 a plan to enhance the efficiency of the overall public administration.
Adopt and implement the on-going reforms to enhance the efficiency of the
judicial system.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 209, 02.08.1997, p. 1
[2]               OJ L 306, 23.11.2011, p. 25.
[3]               COM(2013) 359 final
[4]               P7_TA(2013)0052 and P7_TA(2013)0053.
[5]               Council Decision 2013/208/EU of 22 April 2013.
[6]               COM(2012)750 final
[7]               COM(2012)751 final
[8]               SWD(2013) 116 final
[9]               Cyclically adjusted balance net of one-off and temporary
measures, recalculated by the Commission services on the basis of the information provided in the programme, using
the commonly agreed methodology.
[10]             Under Article 5(2) of Council Regulation (EC) No
1466/97.