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		52014DC0428

			Recommendation for a COUNCIL RECOMMENDATION on Sweden's 2014 national reform programme and delivering a Council opinion on Sweden's 2014 convergence programme /* COM/2014/0428 final */

Recommendation for a
COUNCIL RECOMMENDATION
on Sweden's 2014 national reform programme
and delivering a Council opinion on Sweden's 2014 convergence programme
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Articles 121(2) and 148(4)
thereof,
Having regard to Council Regulation (EC) No
1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary
positions and the surveillance and coordination of economic policies[1], and in particular
Article 9(2) thereof,
Having regard to Regulation (EU) No
1176/2011 of the European Parliament and of the Council of 16 November 2011 on
the prevention and correction of macroeconomic imbalances[2],
and in particular Article 6(1) thereof,
Having regard to the recommendation of the
European Commission[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,
Having regard to the opinion of the
Economic and Financial Committee,
Having regard to the opinion of the Social
Protection Committee,
Having regard to the opinion of the
Economic Policy Committee,
Whereas:
(1)
On 26 March 2010, the European Council agreed to
the Commission’s proposal to launch a new strategy for growth and jobs, Europe
2020, based on enhanced coordination of economic policies, which will focus on
the key areas where action is needed to boost Europe’s potential for
sustainable growth and competitiveness.
(2)
On 13 July 2010, the Council, on the basis of
the Commission's proposals, adopted a recommendation on the broad guidelines
for the economic policies of the Member States and the Union (2010 to 2014)
and, on 21 October 2010, adopted a decision on guidelines for the employment
policies of the Member States, 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 or
Government decided on a Compact for Growth and Jobs, providing a coherent
framework for action at national, EU and euro area levels using all possible
levers, instruments and policies. They decided on action to be taken at the
level of the Member States, in particular expressing full commitment to achieving
the objectives of the Europe 2020 Strategy and to implementing the
country-specific recommendations.
(4)
On 9 July 2013, the Council adopted a
recommendation on Sweden’s national reform programme for 2013 and delivered its
opinion on Sweden’s updated convergence programme for 2012-2016.
(5)
On 13 November 2013, the Commission adopted the
Annual Growth Survey[5],
marking the start of the 2014 European Semester of economic policy
coordination. On the same day on the basis of Regulation (EU) No 1176/2011, the
Commission adopted the Alert Mechanism Report[6],
in which it identified Sweden as one of the Member States for which an in-depth
review would be carried out.
(6)
On 20 December 2013, the European Council endorsed
the priorities for ensuring financial stability, fiscal consolidation and
action to foster growth. It underscored the need to pursue differentiated,
growth-friendly fiscal consolidation, to restore normal lending conditions to
the economy, to promote growth and competitiveness, to tackle unemployment and
the social consequences of the crisis, and to modernise public administration.
(7)
On 5 March 2014, the Commission published the
results of its in-depth review for Sweden[7],
under Article 5 of Regulation (EU) No 1176/2011. The Commission's analysis leads
it to conclude that Sweden continues to experience macroeconomic imbalances,
which require monitoring and policy action. In particular, developments
regarding household indebtedness, coupled with inefficiencies in the housing
market, continue to warrant attention. Although the large current account
surplus does not pose risks similar to large deficits, and is partly linked to
the need for deleveraging, the Commission will follow the current account developments
in Sweden in the context of the European Semester.
(8)
On 16 April 2014, Sweden submitted its 2014 national
reform programme and its 2014 convergence programme. In order to take account
of their interlinkages, the two programmes have been assessed at the same time.
(9)
The objective of the budgetary strategy outlined
in the 2014 Convergence Programme is to ensure a general government surplus of
1% of GDP on average over the business cycle, as foreseen by the Swedish fiscal
framework. The programme confirms the medium-term objective set in the previous
programme of a structural deficit of 1% of GDP, which reflects the requirements
of the Stability and Growth Pact. Based on the (recalculated) structural
balance, the Convergence Programme plans an outcome that more than fulfils the
medium-term objective throughout the programme period. According to the
programme, government debt, which remains well below the 60% of GDP reference
value, is projected to decrease from 41.5% of GDP in 2014 to 35% in 2017. Overall,
the budgetary strategy outlined in the programme is in line with the
requirements of the Stability and Growth Pact. The macroeconomic scenario
underpinning the budgetary projections in the programme is plausible. Regarding
the long-term sustainability of public finances, a high share of GDP is spent
on long-term care and a significant increase in spending is foreseen over the
long-term to take sufficient account of the ageing of the population, bringing
spending in Sweden in 2060 to 6.4% of GDP. Sweden would need to address this by
ensuring sufficient primary surpluses and further containing age-related
expenditure growth to ensure long-term fiscal sustainability. Based on its
assessment of the 2014 Convergence Programme and the Commission forecast,
pursuant to Council Regulation (EC) No 1466/97, the Council is of the opinion
that Sweden's programme is in compliance with the rules of the Stability and
Growth Pact and that the risks to the budgetary targets are limited.
(10)
The high indebtedness of the private sector, and
in particular of Swedish households, remains a matter of concern. Moreover, the
financial sector's exposure to households, as opposed to the corporate sector,
has been increasing in line with household sector debt, which currently stands
at 83% of GDP or roughly 160% of disposable income. The indebtedness is spurred
by continued credit growth and a slow pace of mortgage amortisation. In the event of interest rate increases, house
price falls and/or an adverse macroeconomic development, the high household
sector indebtedness would be a risk factor. Such evolutions
would affect households and their consumption patterns. It could also have
adverse second round effects on the banking sector, by increasing the number of
non-performing loans and the cost of market funding. Sweden has neither
announced nor adopted any measures to address the debt bias in taxation linked
to housing which could be done in the context of a tax shift, without
increasing the overall tax burden. However, Sweden has taken some action to
foster prudent lending through the introduction of the 15% risk weight floor
for mortgage exposures in May 2013 and
a further increase has also been announced.
Nevertheless, amortisation practices remain relaxed with very long amortisation
periods below 75% loan-to-value ratios and strong measures in this regard have
not been taken, considering the voluntary nature of the October 2013
recommendation on individual amortisation plans. The Swedish Bankers'
Association strengthened its recommendation in March 2014, calling for
amortisation down to 70% of the loan-to-value ratio. Finally, Sweden has addressed
the corporate taxation debt bias by further strengthening restrictions on
interest deductibility, extending them to all types of intra-group loans as of January
2013 and introducing a so-called investors' deductibility that might alleviate
the debt bias in taxation. The
corporate income tax was also lowered from 26.3% to 22% as from the beginning
of 2013.
(11)
The Swedish housing market, characterised by
sharp price increases over the last two decades, remains a potential source of
instability. Inefficiencies still weigh on the housing supply, particularly as
a result of complex planning processes, limited competition within the
construction sector and a high degree of rent control. Together with
debt-inducing taxation, these inefficiencies tend to create upward bias in
house prices. Sweden has taken some measures in the rental market, but these
measures appear insufficient to address the underlying structural problem
linked to the high degree of rigidity of the rent system. No measures
addressing the rental market were included in the spring bill presented by the
Swedish government on 9 April 2014. Sweden has adopted measures to address the
inefficiencies of the zoning and planning process, as well as municipalities'
planning monopoly, by requiring municipalities to take a regional perspective
when defining housing needs. These measures go in the right direction; not all
of them have been implemented yet, and no penalties are set out for failing
municipalities.
(12)
Despite high funding levels, there is evidence
that learning outcomes in compulsory school as measured by international
student assessments are worse than in the early 2000s, with Sweden now
performing below both the EU and OECD averages in all three areas tested
(reading, mathematics and science). Moreover, the relationship between
socio-economic background and performance has become stronger, and differences
between schools have increased. While the measures put forward by the
government are steps in the right direction, it appears that more radical
structural changes will be necessary. To that end, Sweden is about to carry out
a review of the effectiveness of the school system to
restore a high level of performance.
(13)
The labour market situation of the young, the
low-skilled and people with a migrant background remains weak. Youth
unemployment remains above the EU average. While the Swedish government has
taken steps to address these points, it appears that difficulties may be linked
to problems in the education field, with the Swedish education system failing
to supply a proportion of young people with the necessary skills for successful
integration into the labour market. As regards labour market integration and
education and training, Sweden has adopted measures to facilitate the
transition from school to work (apprenticeships reform, including an
'apprentice salary') and help young people get work experience ('vocational
introduction employment'). The transition has been de facto strengthened
through the introduction of early measures for those most in need. However, coverage
and outreach to unregistered people who are not in education, employment or
training remains weak. Sweden is also working to speed up the integration of people
with a migrant background, while challenges persist notably with people with a migrant background from outside the EU.
Finally, Sweden is in the process of evaluating the effectiveness of the
current reduced VAT rate for restaurants and catering services in support of
job creation. The final evaluation is expected to be ready in January 2016.
(14)
In the context of the European Semester, the
Commission has carried out a comprehensive analysis of Sweden’s economic
policy. It has assessed the convergence programme and the national reform
programme. It has taken into account not only their relevance for sustainable
fiscal and socio-economic policy in Sweden 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 (4) below.
(15)
In the light of this assessment, the Council has
examined Sweden’s convergence programme, and its opinion[8] is reflected in
particular in recommendation (1) below.
(16)
In the light of the Commission's in-depth review
and this assessment, the Council has examined the national reform programme and
the convergence programme. Its recommendations under Article 6 of Regulation
(EU) No 1176/2011 are reflected in recommendations (2) and (3) below.
HEREBY RECOMMENDS that Sweden take
action within the period 2014-2015 to:
1.
Continue to pursue a growth-friendly fiscal policy
and preserve a sound fiscal position, ensuring that the medium-term budgetary
objective is adhered to throughout the period covered by the Convergence
Programme, also with a view to the challenges posed on the long-term
sustainability of public finances by an ageing population.
2.
Moderate household sector credit growth and
private indebtedness. To this end, reduce the effects of the debt bias in personal
income taxation by gradually limiting tax deductibility of interest payments on
mortgages and/or by increasing recurrent property taxes. Take further measures
to increase the pace of amortisation of mortgages.
3.
Further improve the efficiency of the housing
market through continued reforms of the rent setting system. In particular, allow
more market-oriented rent levels by moving away from the utility value system
and further liberalising certain segments of the rental market, and greater
freedom of contract between individual tenants and landlords. Decrease the
length and complexity of the planning and appeal processes, by reducing and
merging administrative requirements, harmonising building requirements and
standards across municipalities and increasing transparency for land allotment
procedures. Encourage municipalities to make their own land available for new
housing developments.
4.
Take appropriate measures to improve basic
skills and facilitate the transition from education to the labour market,
including through a wider use of work-based training and apprenticeships. Reinforce
efforts to target labour market and education measures more effectively towards
low-educated young people and people with a migrant background. Increase early
intervention and outreach to young people unregistered with the public services.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 209, 2.8.1997, p. 1.
[2]               OJ L 306, 23.11.2011, p. 25.
[3]               COM(2014) 428 final.
[4]               P7_TA(2014)0128 and
P7_TA(2014)0129.
[5]               COM(2013) 800 final.
[6]               COM(2013) 790 final.
[7]               SWD(2014) 90 final.
[8]               Under Article 9(2) of Council Regulation (EC) No
1466/97.


67/125/EEC: Commission Recommendation of 31 January 1967 to the Member States on the protection of young workers


Avis juridique important

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32002H0178

Council Recommendation of 18 February 2002 on the implementation of Member States' employment policies

Official Journal L 060 , 01/03/2002 P. 0070 - 0080

Council Recommendationof 18 February 2002on the implementation of Member States' employment policies(2002/178/EC)THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 128(4) thereof,Having regard to the Commission Recommendation of 12 September 2001,Having regard to the joint opinion of the Employment Committee and the Economic Policy Committee,Whereas:(1) The Council adopted the employment guidelines for 2001 by the Decision of 19 January 2001(1).(2) The Lisbon European Council on 23 and 24 March 2000 agreed on a comprehensive strategy towards employment, economic reform and social cohesion and made a commitment to creating the conditions for full employment. Targets for employment rates to be reached by 2010 were accordingly set and further complemented by the Stockholm European Council on 23 and 24 March with intermediate targets for 2005 and a new target for increasing the employment rate among older women and men by 2010.(3) The Nice European Council on 7, 8 and 9 December 2000 approved the European Social Agenda, which states that the return to full employment involves ambitious policies in terms of increasing employment rates, reducing regional gaps, reducing inequality and improving job quality.(4) The Council adopted the Recommendation on the broad economic policy guidelines on 15 June 2001, and the Amsterdam European Council of 16 and 17 June 1997 agreed on a Resolution on a Stability and Growth Pact setting commitments by Member States.(5) Member States should implement this Recommendation in a way which is consistent with the broad economic policy guidelines, and in particular the labour market part thereof.(6) The 2001 Joint Employment Report, prepared jointly with the Commission, describes the employment situation in the Community and examines the action taken by Member States in implementing their employment policy in line with the 2001 employment guidelines and the Council Recommendation of 19 January 2001 on the implementation of Member States' employment policies(2).(7) The Council considers it appropriate, in the light of the examination of the implementation of the Member States' employment policies, to make recommendations. They should be used sparingly, concentrate on priority issues and be based on sound and accurate analysis.(8) In complementing action undertaken by the Member States with a view to contributing towards the achievement of full employment, the powers of the Member States should be respected.(9) The Council acknowledges the significant efforts already undertaken by Member States with a view to implementing the Employment Guidelines and the Recommendation of 19 January 2001. In the assessment of the impact of these policies, the multi-annual perspective of the employment guidelines should be taken into account.(10) Member States should articulate their envisaged response to the Guidelines under the four pillars in a coherent overall strategy aiming at full employment, recognising Member States' different starting positions, the development and implementation of comprehensive and coherent strategies for lifelong learning and a comprehensive partnership with the social partners. Due consideration should be given to gender mainstreaming and the need to reduce regional disparities and evaluate progress under all four pillars on the basis of indicators.(11) In order to influence the trend in youth and long-term unemployment, all young people should have the opportunity to gain entry to the world of work before they have been unemployed for six months and all the adult unemployed should be offered a new start before they have been unemployed for twelve months.(12) Member States should pursue the modernisation of their public employment services.(13) It is important to reduce disincentives to employment embodied in the tax or benefit systems in order to ensure higher participation rates amongst women and older workers.(14) The development and implementation of lifelong learning, covering the development of systems for initial, secondary and tertiary education, further education and vocational training and the setting of national targets, is crucial to the development of a competitive and dynamic knowledge-based society and requires the active commitment of all actors concerned, including public authorities, the social partners and individuals, with a relevant contribution from civil society.(15) A coherent set of policies which promote social inclusion by supporting the integration of disadvantaged groups and individuals into the world of work, and combat discrimination in access to, and on the labour market is called for.(16) Improvements of the business environment and a better equipment of individuals for taking up entrepreneurial activities are needed to stimulate job creation by more and more dynamic enterprises. Framework conditions need to be developed to tap the potential for employment growth in the services sector.(17) Sustained job creation calls for more employment-friendly taxation systems in which the currently high burden on labour is shifted to alternative sources of fiscal revenue, such as energy and the environment.(18) Local action for employment significantly contributes to the achievement of the objectives of the European Employment Strategy.(19) The establishment of partnerships at all appropriate levels is crucial for the modernisation of the organisation of work and the promotion of the adaptability of undertakings and their employees.(20) Gender gaps in the labour market, particularly affecting employment, unemployment and pay, as well as gender segregation across sectors and occupations, require comprehensive mainstreaming strategies and measures to better reconcile work and family life,HEREBY ISSUES to the individual Member States the recommendations set out in the Annex.Done at Brussels, 18 February 2002.For the CouncilThe PresidentM. Arias Cañete(1) OJ L 22, 24.1.2001, p. 18.(2) OJ L 22, 24.1.2001, p. 27.ANNEXI. BELGIUMProblems in employment performanceThe Belgian labour market improved in 2000 with an increase in the employment rate to 60,5 %, still markedly below the Lisbon target of 70 %. A further drop in the unemployment rate to 7 % (below the Community average of 8,2 %) was recorded and employment growth picked up to match the European Community average (1,8 %). However, long-standing challenges are only gradually being met:- inflows into long-term unemployment are high and, despite a further decrease, the stock of long-term unemployed people - 3,8 % of the labour force in 2000 - is greater than the Community average,- participation in employment amongst older workers is still the lowest in the European Community (at 26,3 %, 11,4 points below the Community average), while the rate amongst women, at 51,5 %, remains below the Community average,- the tax burden on labour remains one of the highest in the Community,- labour and skills shortages are apparent and a fully coherent and comprehensive lifelong learning strategy is not yet in place,- regional disparities in unemployment remain considerable and point to inadequate labour mobility.After due analysis, it appears that more efforts are required in response to the employment guidelines and recommendations concerning: implementation of a preventive policy, notably for adults; increasing the employment rate amongst older workers and women; reduction of the tax burden on labour; the development of lifelong learning; and increasing labour mobility between regions.Belgium should therefore:1. reduce inflows into long-term unemployment by taking decisive steps to implement an appropriate early intervention system for unemployed adults; examine the impact of the new personalised approach towards all unemployed young people;2. take stronger action with a view to increasing the overall employment rate, notably for women and older workers. Belgium should, in particular, examine the impact of recent measures and consider further measures aimed at preventing the early withdrawal of workers from work, as well as incentives enhancing the capacity of older workers to remain at work;3. pursue further measures to reduce the tax burden on labour so as to encourage employees to take up work and employers to create new jobs, and closely monitor the impact of measures already taken, including those related to the reduction of social security contributions;4. reinforce, in cooperation with all actors concerned, the development and implementation of a comprehensive lifelong learning strategy to prevent skills shortages, to raise the attractiveness of technical and vocational education and to build a more solid foundation for the knowledge-based economy and society;5. continue, together with the social partners, efforts to better combine security with greater labour market flexibility, and take concerted action to increase labour mobility between regions through the provision of labour market information and further improvements to the coordination of labour market policies.II. DENMARKProblems in employment performanceThe labour market situation remains very favourable with the highest female employment rate in the European Community (71,6 %), one of the highest male employment rates (80,8 %) and one of the lowest unemployment rates (4,7 %). While Denmark exceeds the Lisbon targets, key challenges for Denmark are:- the overall tax burden which - although declining - is still high. The small differences between benefits and low wage incomes have limited so far the effects from tax reforms on work incentives for low income groups,- the tightening of the labour market in 2000, while a considerable part of the working age population is on early retirement or on social benefits, and the employment rate remains low amongst migrant workers.After due analysis, it appears that further efforts are required in response to the employment guidelines and recommendations concerning: the reduction of the tax burden; and increasing labour market participation.Denmark should therefore:1. pursue and closely monitor implementation of on-going reforms to reduce the overall fiscal pressure on labour, in particular through lowering the high marginal effective tax rates on low and medium income earners;2. pursue incentives to encourage yet more people to take up employment, particularly through further development of the inclusive labour market and further efforts towards the integration of migrant workers.III. GERMANYProblems in employment performancePositive overall employment and unemployment trends over recent years were confirmed in 2000. While the overall employment rate of 65,3 % exceeds the European Community average, it remains 5 percentage points below the Lisbon target. The key challenges still facing Germany's labour market are:- relatively slow decreases in long-term unemployment, which still accounts for 4 % of the labour force, with persistent regional differences, notably in unemployment rates, regions in the new Länder being particularly badly affected. While active labour market policies have been able to soften the impact of changes, the outcome of these policies in the eastern part of the country are mixed,- the employment rate of people aged 55 to 64, at 37,3 %, which decreased slightly to below the Community average,- the need for modernising work organisation and for a continuing substantial and lifelong learning effort to overcome skill gaps and to enhance generally the qualification level of the labour force,- despite on-going reforms, the still high overall tax burden on labour,- a high gender pay gap, according to available data, and relatively few childcare facilities.After due analysis, it appears that more efforts are required in response to the employment guidelines and recommendations concerning: preventive policies; increasing older people's labour market participation; lifelong learning; the tax burden on labour; and equal opportunities.Germany should therefore:1. in order to substantially reduce long-term unemployment, devote additional effort to the prevention of inflows into long-term unemployment, particularly in the eastern part of the country and in respect of ethnic minorities and migrant workers, and increase the effectiveness of active labour market policies;2. continue to remove obstacles and disincentives liable to discourage labour market participation amongst older workers and other groups at risk; examine and report on the effectiveness of initiated and agreed actions and adopt further measures to improve the employability of workers above 55 years of age;3. take measures, where appropriate in the framework of the "Alliance for Jobs", to make work contracts and work organisation more flexible; tackle skill gaps in the labour market through the implementation of agreed improvements for initial and continuing training, and through further developing a comprehensive strategy for lifelong learning supported by qualitative and quantitative targets. The social partners and the Government, each in its field of competence, are invited to strengthen their efforts to raise the quality of continuing training and to set up systems for the accreditation and recognition of formal and non-formal learning;4. pursue efforts to reduce taxes and social security contributions at the lowest end of the wage scale to make work pay and to enhance viable and acceptable employment prospects; examine and report on the impact of measures undertaken;5. strengthen action to reduce the gender pay gap and address the impact of the tax and benefit system on women's employment; promote the availability of childcare facilities and improve their correspondence with working hours and school schedules. The implementation of these policies, involving the respective actors at all levels, should be monitored with appropriate verifiable indicators and targets.IV. GREECEProblems in employment performanceGreece still has one of the lowest employment rates in the European Community (55,6 % overall and 40,9 % for women, well below the Lisbon targets). Unemployment has now stabilised at 11 % - well above the Community average - with growth in employment outweighed by long-term structural increases in the labour force. Long-term unemployment has been reduced to 6,2 % but remains significantly higher than the Community average. This situation reflects the following structural problems in the labour market:- the low employment rate, while there is still unexploited job-creation potential in its small and medium-sized enterprises (SME) and services-based economy,- against the background of high youth, female and long-term unemployment, the public employment services do not deliver yet a preventive and personalised approach. Despite efforts to monitor flow statistics, a comprehensive system is not yet available,- in the context of low employment rates, the tax system as well as rules on pension entitlements should be reviewed in order to increase labour supply,- educational reforms include steps to develop lifelong learning, but there is still no clear overall strategy, and education and vocational training systems need further improvement,- while the recent labour market reforms constitute an important move towards modernisation of work, there is room for further improvement. Success in this field will require the active involvement of the social partners,- there are wide gender gaps in employment and unemployment which should be addressed inter alia by increased provision of childcare facilities.After due analysis, it appears that further efforts are required in response to the employment guidelines and recommendations concerning: the overall policy approach; prevention of unemployment; tax-benefit reform; lifelong learning; the modernisation of work organisation; and gender mainstreaming.Greece should therefore:1. improve the strategic framework, in particular by developing a set of well coordinated and balanced policies for the implementation of the employment guidelines across the four pillars with a view to increasing the employment rate, in particular for women and young people;2. speed up the restructuring of the public employment services and take decisive and coherent action to prevent young and adult unemployed people from drifting into long-term unemployment through inter alia swift implementation of the personalised approach; further upgrade the statistical system so that indicators on prevention and activation are available in good time and progress can be effectively monitored;3. examine and eliminate distortions arising from labour taxes and pension entitlements, thus improving incentives to work;4. further develop and implement a comprehensive strategy on lifelong learning, including the setting of targets; increase investment in and further improve education and vocational training systems, including apprenticeship, in order to enhance the skills of the labour force and meet the needs of the labour market;5. ensure the full implementation of the recent labour market reform package, in close cooperation with the social partners; in this context, the social partners should make further commitments on the modernisation of work organisation, while seeking an appropriate balance between flexibility and security;6. take effective and comprehensive action to reduce the employment and unemployment gender gaps. To this end, care facilities for children and other dependants should be extended.V. SPAINProblems in employment performanceSpain has been experiencing steady and positive economic and employment growth over recent years, but serious challenges remain:- unemployment is still very high at 14,1 %, despite a significant decline since 1996. Long-term unemployment has also declined, but women remain particularly badly affected by unemployment,- the employment rate of 55 %, though on the increase, is among the lowest in the European Community and far below the Lisbon target. Although the female employment rate has been steadily increasing, at 40,3 % it is still one of the lowest in the Community. Gender gaps in both employment and unemployment (29,6 and 10,8 percentage points respectively) are among the highest in the Community,- while levels of educational attainment and participation in further learning are low, a fully coherent and comprehensive approach to lifelong learning is not yet in place,- employment under fixed term contracts is high; most of these temporary contracts are of short duration and tend to be taken predominantly by women and young people,- regional disparities are wide, while geographical mobility is very low.After due analysis, it appears that more efforts are required in response to the employment guidelines and recommendations concerning: activation and prevention of unemployment; gender mainstreaming; lifelong learning; adaptability; and regional disparities.Spain should therefore:1. complete the modernisation of the public employment services so as to improve its efficiency, and step up implementation of the preventive approach, particularly with regard to the adult unemployed, so as to cover all potential beneficiaries. These efforts should include the completion of the statistical monitoring system;2. take effective and comprehensive action to increase the overall employment rate and to close gender gaps in employment and unemployment. As part of a gender mainstreaming approach, targets for the provision of care facilities for children and other dependants should be adopted and implemented;3. vigorously complete reforms on vocational training to encompass a comprehensive and coherent strategy on lifelong learning, including the setting of verifiable targets, with a view to increasing the levels of educational attainment and the participation of adults in education and training, addressing the low level of skills and developing non-formal learning;4. further modernise the labour market and work organisation with the active involvement of the social partners with a view to reducing the high share of fixed-term contracts, and increasing the use of part-time contracts;5. improve the conditions conducive to employment creation in regions lagging behind and eliminate obstacles to labour mobility, with a view to reducing regional disparities in employment and unemployment.VI. FRANCEProblems in employment performanceThe employment situation continues to improve. At 62,2 %, the overall employment rate is close to the European Community average, whilst the female employment rate exceeds that average.However, significant structural problems persist:- the employment rate of people aged 55 to 64 rose in 2000 but remains considerably lower than the Community average (29,7 % compared to 37,7 %),- despite some progress, the marginal effective tax rate is still relatively high,- the unemployment rate continues to exceed the Community average (9,5 % compared to 8,2 %) thus necessitating the pursuit and evaluation of programmes that implement the preventive approach,- the modernisation of work organisation needs to be pursued; the implementation of working time legislation constitutes an important new challenge for small enterprises,- lifelong learning must be promoted and the social dialogue must be strengthened in this area.After due analysis, it appears that more efforts are required in response to the employment guidelines and recommendations concerning: increasing older people's labour market participation; efforts to reduce the tax burden on labour; the prevention of unemployment; the implementation of legislation on the 35 hour working week; and lifelong learning.France should therefore:1. strengthen efforts to curb older workers' early withdrawal from working life by developing a more comprehensive approach towards active ageing involving the social partners;2. building on recent tax-benefit reforms, continue implementing and monitoring the impact of policy measures designed to encourage workers to seek and remain in work, particularly measures with an effect on low-skilled and low-paid workers;3. pursue implementation of personalised and early intervention schemes for the unemployed; examine the effectiveness of and report on the implementation of the personalised action plans for a new start initiative; evaluate the medium term impact of on-going efforts to create new job opportunities for young people;4. intensify efforts to modernise work organisation with a view to better combining security with greater adaptability to facilitate access to employment; closely monitor the net effects of the implementation of the 35 hour working week legislation, especially on small businesses;5. pursue efforts within the framework of the social dialogue to improve the efficiency of the continuous training system and to promote a comprehensive lifelong learning strategy.VII. IRELANDProblems in employment performanceIreland's economic and employment performance has been very good. In 2000 the overall employment rate at 65,1 % was higher than the European Community average for the second year running and the already low unemployment rates continued to fall for all groups. These developments indicate a further tightening of the labour market and some structural problems still exist:- whilst labour supply shortages have increased in recent years and have fuelled wage inflation pressures, the employment rate for women (despite recent increases) has only just reached the Community average (54 %) and the gender gap in employment remains high,- in this context, further effort is also needed to boost the low rates of participation in further learning, especially amongst those in employment,- considerable regional disparities - in employment and unemployment rates but also educational levels and earnings - risk impeding sustained and balanced development.After due analysis, it appears that continued efforts are required in response to the employment guidelines and recommendations concerning: increasing labour market participation rates, particularly amongst women; lifelong learning, especially in-company training; and regional disparities.Ireland should therefore:1. pursue further its comprehensive strategy to increase labour supply and employment rates. Particular efforts should be undertaken to mobilise and integrate further into the labour market economically inactive people, in particular women, by removing tax barriers, increasing the number of affordable childcare places and taking action with the aim of reducing the gender pay gap;2. pursue efforts to sustain productivity growth and upgrade skills and qualifications in the workforce, through increased emphasis on in-company training and the further development of lifelong learning, including the setting of overall targets, and in this respect promote active involvement of the social partners in implementing the programme for prosperity and fairness;3. in the context of the spatial strategy programme, address imbalances in employment, unemployment, job creation and human capital endowment between various areas in Ireland.VIII. ITALYProblems in employment performanceAs in the previous year, employment increased and unemployment fell during 2000. However, these improvements leave several structural problems of the Italian labour market still unresolved:- the low employment rate of 53,5 % is still some 10 percentage points below the European Community average and far below the Lisbon target. The employment rate for women (39,6 %) is the lowest in the Community and for older people it is one of the lowest in the Community (27,8 %),- work organisation needs to be further modernised; the planned general review of the social benefit system was postponed for the second time,- unemployment fell to 10,5 % but remains almost 2 percentage points above the Community average. Regional disparities remain significant with unemployment rates ranging from less than 5 % to over 20 %, despite recently recorded faster growth in the south,- wide gender gaps in employment - at 27,9 percentage points - are characteristic of the labour market, particularly in the southern regions, and female unemployment, at 14,4 %, is almost double the male unemployment rate of 8,0 %,- in a context of low levels of educational attainment and participation in further learning, improvements in the approach to lifelong learning are required, including as regards those in employment.After due analysis, it appears that further efforts are required in response to the employment guidelines and recommendations concerning: the appropriate policy mix to favour employment growth, reduce regional imbalances and combat undeclared work; tax and benefit systems; activation and prevention of unemployment; gender mainstreaming and gender gaps; and lifelong learning.Italy should therefore:1. pursue policy reforms to sustain growth in employment rates, in particular for women and older workers. Such reforms should address regional imbalances by further strengthening employability policies, and by promoting job creation and the reduction of undeclared work, in partnership with the social partners;2. continue to increase labour market flexibility with a view to better combining security with greater adaptability to facilitate access to employment; pursue the implementation of the reform of the pensions system through the review planned for 2001, and undertake the planned review of other benefit systems in order to reduce the outflow from the labour market; pursue efforts to reduce the tax burden on labour, especially on low-paid and low-skilled workers;3. in the context of employability policies, take further action to prevent the inflow of young and adult unemployed people into long-term unemployment. Such action should include: the full implementation of the reform of the public employment services across the country, the speedy introduction of an employment information system, and strengthened efforts to upgrade the statistical monitoring system;4. improve the effectiveness of active labour market policies and implement specific measures to reduce the wide gender gaps in employment and unemployment within an overall gender mainstreaming approach, and in particular by setting targets for the provision of care services for children and other dependants;5. strengthen efforts towards the adoption and implementation of a coherent strategy on lifelong learning, including the setting of national targets; social partners should step up their efforts to provide more training opportunities for the work force.IX. LUXEMBOURGProblems in employment performanceIn Luxembourg, the labour market is benefiting from a favourable environment supported by strong economic growth (8,5 %) and an increase in employment (5,5 %). At 2,4 %, the unemployment rate continues to be the lowest in the European Community. However, some structural problems persist:- at 62,9 %, the employment rate continues to fall short of common objectives, despite the highly favourably employment situation. The latter results, however, in large part from a high level of cross-border working. Activity rates are particularly low amongst older workers (27,4 %) and women (50,3 %) though both figures have been on the increase since 1996,- the gender employment gap - 24,8 percentage points - remains one of the highest in the Community,- efforts underway in respect of continuing training must be pursued in order that the needs of a modern and dynamic economy be met.After due analysis, it appears that more efforts are required in response to the employment guidelines and recommendations concerning: increasing labour market participation amongst older people and women; the coherence of lifelong learning policy.Luxembourg should therefore:1. further strengthen action aimed at significantly increasing labour market participation rates amongst workers over the age of 55 by reviewing early retirement and disability pension schemes;2. strengthen efforts aimed at increasing labour market participation rates amongst women, by improving services to facilitate a better reconciliation of work and family life, by encouraging their return to work after long periods outside the labour market and by adopting measures to promote equality between men and women particularly as far as the gender pay gap is concerned;3. ensure effective implementation of the framework law on continuous training, with strong involvement by the social partners, combat early school leaving and undertake a revision of the overall learning system with a view to achieving better coherence between the different education and training sectors.X. THE NETHERLANDSProblems in employment performanceEmployment growth was healthy in 2000 and employment rates (73,2 % overall and 63,7 % for women) are well above the European Community averages and the Lisbon targets. The official unemployment rate continued to fall in 2000, to less than 3 %, which is significantly below the Community average. However, a key structural imbalance characterises the labour market:- despite emerging labour market shortages, the labour force is constrained by the high proportion of the working age population drawing on disability, unemployment or welfare benefits.After due analysis, it appears that more efforts are required in response to the employment guidelines and recommendations concerning: labour supply and benefit reforms.The Netherlands should therefore:1. in addition to measures to decrease the inflow into disability benefits, develop effective policies to reintegrate people currently drawing on such benefits into jobs that take account of their remaining capacity to work;2. in order to tap all possibilities of potential labour supply and reduce inactivity, address the cumulation of benefits, including local cost of living subsidies for low income recipients.XI. AUSTRIAProblems in employment performanceThe Austrian labour market's performance improved last year, with an overall employment rate of 68,3 % (59,4 % for women) close to the targets set by the Lisbon Summit and well above the European Community average. Overall unemployment was reduced to 3,7 % in 2000 and, together with youth and long-term unemployment, is still among the lowest in the Community. Despite the overall good performance, structural problems remain in the labour market:- in the context of ensuring an adequate labour supply in a tightening labour market, there is room to boost the participation of older and low-paid workers, as well as ethnic minorities and migrant workers,- there is still a significant gender gap in employment and one of the highest pay gaps in the Community, requiring new measures to facilitate the reconciliation of work and family life. Childcare coverage rates are among the lowest in the Community and need to be extended,- efforts are being made to define a comprehensive and coherent lifelong learning strategy in the "Zukunftsforum Weiterbildung", involving all relevant actors and through which quantitative targets on financing and participation will be developed, in accordance with the national legal framework.After due analysis, it appears that more efforts are required in response to the employment guidelines and recommendations concerning: increasing labour market participation; gender gaps and childcare provision; and lifelong learning.Austria should therefore:1. develop policies to ensure an adequate labour supply in the future. In this context, Austria should pursue and extend the reform of tax and benefit systems to increase the participation of older workers and low skilled and low paid workers, and improve equal opportunities for ethnic minorities and migrant workers on the labour market;2. develop a target-based strategy for narrowing the gender pay gap, in agreement with the social partners; promote at all levels action to reduce the gender gap in employment, by extending childcare facilities and promoting policies to facilitate the reconciliation of work and family life;3. adopt and implement a comprehensive and coherent strategy on lifelong learning in agreement with all actors involved, which includes indicators and quantitative targets on financial resources and participation, in accordance with the national legal framework; this strategy should strengthen links between compulsory and higher education, initial and continuing training, and adult education.XII. PORTUGALProblems in employment performanceWith an overall employment rate of 68,3 %, the employment situation has further improved and come close to the Lisbon target. At 4,2 %, unemployment is among the lowest in the European Community and long-term unemployment is at a low level (2,7 %). However, the labour market suffers from structural weaknesses which require action:- in the context of low levels of educational attainment and participation in further learning, as well as (despite a fall) the highest rates of early school leaving in the Community (43,1 %), improvements in the field of lifelong learning are required,- further strong input from the social partners is needed to address the main challenges facing the Portuguese labour market, in particular the low skill level, the modernisation of work organisation and employment relations,- Portugal has a good record in terms of its female employment rate, having now reached the 60 % target set at the Lisbon Summit. However, the Portuguese labour market displays one of the most pronounced gender imbalances in terms of employment across sectors in the Community.After due analysis, it appears that more efforts are required in response to the employment guidelines and recommendations concerning: lifelong learning and skills; the partnership approach; and gender imbalance.Portugal should therefore:1. better articulate the lifelong learning strategy, by improving education and training systems in order avoid skill shortages, increase the supply of skilled labour and thus promote the creation of medium and highly skilled jobs and raise labour productivity;2. pursue efforts to implement an approach based on partnership and support the concrete commitments of social partners, in particular in the areas of modernisation of work organisation and adaptation of employment relations, including labour regulations, carefully monitoring the implementation of the agreements already signed by the Government and the social partners;3. pursue efforts to reconcile family and working life, in particular by extending childcare facilities, and examine new ways to promote a better gender balance at sectoral level.XIII. FINLANDProblems in employment performanceWhile Finland has maintained strong employment growth over the past five years, reaching an overall employment rate (67,5 %) close to the Lisbon target and a female employment rate (64,4 %) in excess of the Community average and the Lisbon target, some major structural problems remain:- the overall unemployment rate is still high at 9,8 %, with high youth and long-term unemployment rates among older workers giving particular cause for concern, as well as large regional differences in unemployment,- Finland has a high female employment rate and well developed equal opportunities policies. However, the Finnish labour market displays one of the most pronounced gender imbalances in terms of employment across sectors and occupations in the European Community, as well as a considerable gender pay gap,- Finland faces skills shortages in several sectors (both in high and low-skilled jobs) and in some regions; the outcome of active labour market programmes in terms of lasting integration on the labour market is mixed.After due analysis, it appears further efforts are required in response to the employment guidelines and recommendations concerning: tax and benefit incentives to increase participation; the gender pay gap and gender imbalance; and regional disparities.Finland should therefore:1. continue to review tax and benefit schemes with a view to encouraging participation in the labour market and ensuring the availability of labour; in particular, strengthen efforts to reduce high marginal effective tax rates especially on low wage earners and to improve incentives in benefit schemes, especially pensions, for people to take up work and to stay in the labour force;2. take appropriate action, in the context of a gender mainstreaming approach, to close the gender pay gap and continue taking action to improve the balance in representation between men and women across both occupations and sectors;3. ensure the effectiveness of active labour market programmes with a view to combating unemployment and reducing regional disparities and labour market bottlenecks, focusing on the needs of the long-term and young unemployed.XIV. SWEDENProblems in employment performanceAt 73 % and 71 % respectively, Sweden exceeds the Lisbon targets and has among the highest overall and female employment rates in the European Union. Overall unemployment fell to 5,9 % in 2000. However, a number of structural problems remain in the labour market:- Sweden has taken a number of measures to reduce the number of people receiving benefits; however, the tax and benefit incentives to work could be further enhanced in line with the employment guidelines; the tax burden on labour is still high,- Sweden has a high female employment rate and well developed equal opportunities policies. However, the Swedish labour market displays one of highest gender imbalances across sectors and occupations in the Community,- some regional differences in unemployment persist and the labour market situation of ethnic minorities and migrant workers could be improved; the effectiveness of different types of active labour market policies is mixed.After due analysis, it appears that further efforts are required in response to the employment guidelines and recommendations concerning: the tax burden on labour and tax-benefit incentives to work; gender imbalance; and the effectiveness of active labour market policies.Sweden should therefore:1. pursue reforms, including the setting of targets taking into account the national situation, to reduce the tax burden on labour in particular for low wage earners; pursue further the reforms of tax and benefit systems to promote work incentives;2. pursue initiatives to tackle the current imbalance in representation between women and men (at both occupational and sectoral level), as part of the gender mainstreaming reforms begun in 1999;3. ensure the effectiveness of the active labour market programmes, especially in relation to long-term unemployment, in this context paying particular attention to the needs of ethnic minorities and migrant workers.XV. UNITED KINGDOMProblems in employment performanceThe United Kingdom saw further employment growth in 2000 and, at 77,8 % and 64,6 % respectively, the employment rates for men and women are well above the European Community average and the Lisbon targets. The unemployment rate continued to fall in 2000, to 5,5 %, below the Community average. However, important structural problems persist:- at national level, despite increasing role and visibility, there is no general approach to social partners' involvement which therefore remains restricted to a number of specific issues,- though diminishing, the gender pay gap and the current imbalance in representation between women and men (both occupational and sectoral) remain high compared to the Community averages; the provision of affordable childcare places, although it has started to improve, is important in this regard,- inflows into long-term unemployment amongst young people and adults slowed only slightly in 2000 (to 16 % and 10 % respectively) and are still rather high. Inactivity, long-term unemployment and low employment rates are concentrated in households with no-one in work, certain regions and particular disadvantaged groups (single parents, certain ethnic minorities, male older workers, the disabled, and the low skilled),- the low level of basic skills amongst the workforce is contributing to emerging skills gaps and to levels of labour productivity which, despite recent improvements, remain low.After due analysis, it appears that further efforts are required in response to the employment guidelines and recommendations concerning: the partnership approach; gender imbalance; activation policies, especially for adults and disadvantaged groups; and the role of work-based training in tackling skill gaps.The United Kingdom should therefore:1. further foster social partnership at the national level, in particular to improve productivity and skills, and the modernisation of working life;2. strengthen efforts to reduce the gender pay gap and improve the balance in representation between women and men across occupations and sectors, by involving all relevant actors including the social partners and enabling monitoring with appropriate verifiable indicators and targets; further implement and monitor the impact of actions taken to improve the provision of affordable childcare facilities;3. reinforce active labour market policies for the adult unemployed before the 12 month point to supplement the support provided by the jobseekers' allowance benefit and schemes to improve job search effectiveness. Within this context, particular attention should be paid to groups facing particular problems in the labour market;4. reinforce current efforts to encourage and develop work-based training to address increasing workforce skill gaps and low levels of basic skills.


title: Commission Recommendation of 10 January 2008 on measures to facilitate future changeovers to the euro (notified under document number C(2007) 6912)

text:
               26.1.2008

               EN

               Official Journal of the European Union

               L 23/30

      COMMISSION RECOMMENDATION

   of 10 January 2008
   on measures to facilitate future changeovers to the euro
   (notified under document number C(2007) 6912)
   (2008/78/EC)
   THE COMMISSION OF THE EUROPEAN COMMUNITIES,
   Having regard to the Treaty establishing the European Community, and in particular Article 211 thereof,
   Whereas:

               (1)

               While the first group of participants experienced a long transition phase during which the euro was their currency but euro cash was not yet introduced, most of the existing national plans for future changeovers foresee the introduction of euro coins and banknotes on the day of adoption of the euro. This difference and the wide availability of euro cash implies that the Member States preparing for the adoption of the euro should implement a different strategy to the one followed between 1999 and 2002.

               (2)

               In these different circumstances, the provisions of the Commission Recommendation of 11 October 2000 on measures to facilitate the preparation of the economic operators for the changeover to the euro (1) do not adequately address the questions raised by the change of context. Therefore, in order to take into consideration this new context and to profit from the experience acquired in the course of the introduction of euro cash in 2002, 2007 and 2008, a new Recommendation should be adopted,

         HEREBY RECOMMENDS:
   Article 1
   Steering the organisation of the changeover
   1.   Member States should set up appropriate and dedicated structures to plan, coordinate and facilitate all the necessary preparations for the introduction of the euro.
   2.   A national changeover plan covering all aspects of the organisation of the euro changeover should be prepared, discussed with the representatives of the main economic operators (credit institutions, retail sector, CIT companies, the vending industry, consumer associations, chambers of commerce etc.) and regularly updated.
   Article 2
   Facilitating the preparation of the citizens for the euro
   1.   National law should impose the dual display of prices and other monetary amounts to be paid, credited or debited. The mandatory dual display should start as soon as possible after the official adoption of the irrevocably fixed conversion rate between the national currency and the euro by the Council. Member States should discourage retailers from using dual display before the official adoption of the conversion rate. Member States should also require a separate display of any charges imposed by businesses for accepting payments in euro between the fixing of the conversion rate and the introduction or the euro. Using a conversion rate other than the conversion rate adopted by the Council should be prohibited. The dual display should remain mandatory for a period of a minimum of six months and a maximum of one year after the introduction of the euro. It should stop afterwards, in order to allow the citizens to get fully accustomed to the new currency.
   2.   Member States should ensure that the citizens are well informed of the arrangements for the changeover to the euro, of the provisions for the protection of the euro banknotes and coins and of the security features of euro cash, and they should help citizens to learn the new scale of value. This information drive should be maintained for some time after the euro introduction. In particular, special information programmes should be established for vulnerable persons (such as senior citizens, persons suffering from a physical, sensory or mental health problem, etc.) as well as for the persons for whom access to information is difficult (such as migrants and homeless persons, illiterate and innumerate persons, etc.).
   3.   Member States, credit institutions and enterprises should organise training sessions in order to familiarise the personnel working regularly with cash to the euro so as to ensure better recognition, correct identification of the security features and quicker manipulation of euro coins and banknotes. Furthermore, recurrent practical training sessions should be organised for people with visual impairment in order to help them develop a sensory memory for the new currency.
   4.   Public administrations should provide businesses, and especially SMEs, with precise information on the timetable for the changeover and the relevant legal, tax and accounting rules. Trade associations, euro info centres, chambers of trade and commerce, accountants and business advisers should ensure that the businesses with which they are in contact make the necessary preparations and are able to carry out all their transactions in euro as from the date of its introduction.
   5.   Credit institutions should inform their customers of the practical consequences of the changeover to the euro. They should, in particular, draw their attention to the fact that they will no longer be able to make scriptural payments or keep an account in any of the old national currency units after the date of the introduction of the euro.
   6.   Businesses should take action to raise the awareness of their employees and organise ad hoc training activities for members of their staff who are in contact with the public.
   7.   Member States should monitor the preparation of economic operators for the changeover to the euro, notably through regular surveys.
   Article 3
   Ensuring a quick introduction of euro cash
   1.   With a view to reducing the amounts of money to be physically exchanged, consumers should be encouraged to deposit their surplus cash holdings in the weeks before the changeover. Contracts usually involving national currency which are concluded after the Council decision fixing the irrevocable conversion rate should preferably refer to the euro to the extent that their validity extends beyond the date of the introduction of the euro.
   2.   Credit institutions and sales outlets should make use of the frontloading and sub-frontloading of euro banknotes and coins in the months before the changeover as foreseen by the European Central Bank (2). Sales outlets should be sub-frontloaded with banknotes and coins in the last weeks preceding the changeover. Special arrangements, including notably kits of euro coins for retailers, should be foreseen for small retail outlets. In order to encourage sales outlets to participate in sub-frontloading, financially attractive deferred debiting conditions should be offered to them. Citizens should be able to acquire kits of euro coins during the three weeks before the changeover, with a view to ensure that each household could dispose of at least one kit.
   3.   Cash dispensers should be adapted to dispensing euro banknotes as from the introduction of the euro. Cash dispensers which, for technical reasons, cannot be adapted on time should be closed. Cash withdrawals and exchanges at credit institutions during the two weeks before and after the changeover should primarily be made in small denomination banknotes.
   4.   Sales outlets should be obliged to give change exclusively in euro as from its introduction, unless they are for practical reasons unable to do so. Ad hoc measures should be taken in order to facilitate their sub-frontloading with cash and reduce the difficulties linked to the increase of cash volume in sales outlets.
   5.   All electronic point-of-sale terminals should be switched to the euro on the day of its introduction. Consumers should be encouraged to use electronic payments more often during the first days after its introduction.
   6.   The main offices of credit institutions should be opened during the first days of the dual circulation period in order to facilitate the exchange of the national currency for euro. Furthermore, bank opening hours should be extended during the period of the changeover. Retailers should be provided with special facilities allowing a quicker cash supply with a view to avoiding queues.
   Article 4
   Preventing abusive practices and a wrong perception of the evolution of prices by the citizens
   1.   Agreements should be negotiated with the retail and services sector in order to ensure a neutral impact of the euro introduction on prices. Retailers should notably not increase prices because of the changeover and should try to minimize price changes when setting the prices in euro after the conversion. These agreements should be materialised in the adoption of a logo which is visible and easily recognisable for consumers. The logo should be advertised by means of communication and information campaigns. A close monitoring of the retailers’ compliance with the commitments undertaken under the agreements should be put in place in cooperation with consumer associations. Dissuasive measures should be foreseen for cases of non-compliance, ranging from public disclosure of enterprise’s name to possible fines for the most serious cases.
   2.   Member States should implement a close and frequent monitoring of the prices during the weeks following the adoption of the conversion rate until the end of the period of dual display of prices. Weekly information on the evolution of prices should, in particular, be offered to citizens during the weeks immediately before and after the changeover in order to prevent possible wrong perceptions.
   3.   The same bank charges applicable to payment transactions in national currency should be, after conversion, applicable to payment transactions in euro.
   Article 5
   Final provision
   Member States are invited to support the implementation of this Recommendation.
   Article 6
   Addresses
   This Recommendation is addressed to the Member States with a derogation as defined in Article 122 of the Treaty as well as to credit institutions, enterprises, trade associations and consumer organisations in these Member States.

      Done at Brussels, 10 January 2008.

            For the Commission

         Joaquín ALMUNIA

            Member of the Commission

      (1)  Recommendation 2000/C 303/05 (OJ C 303, 24.10.2000, p. 6).

      (2)  See Guideline of the European Central Bank of 14 July 2006 on certain preparations for the euro cash changeover and on frontloading and sub-frontloading of euro banknotes and coins outside the euro area (ECB/2006/9, OJ L 207, 28.7.2006, p. 39).


Avis juridique important

|

32000H0303

2000/303/EC: Commission Recommendation of 13 April 2000 on the reduction of CO2 emissions from passenger cars (KAMA) (notified under document number C(2000) 801) (Text with EEA relevance)

Official Journal L 100 , 20/04/2000 P. 0055 - 0056

Commission Recommendationof 13 April 2000on the reduction of CO2 emissions from passenger cars(KAMA)(notified under document number C(2000) 801)(Text with EEA relevance)(2000/303/EC)THE COMMISSION OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European Community, and in particular Article 211, second indent, thereof,Whereas:(1) The Commission has proposed a Community strategy to reduce CO2 emissions from passenger cars and improve fuel economy(1).(2) The Council (environment), in its conclusions of 25 June 1996, invited the Commission to undertake the necessary steps to implement the main elements of this strategy.(3) An environmental agreement with the automobile industry is one of the main elements of the Community strategy. Both the Commission and the Council believe that such agreement should commit the automobile industry to making a major contribution to the achievement of the overall objective of the strategy for attaining a CO2 emission target of 120 g/km CO2 on average for newly-registered passenger cars by 2005, and at the latest 2010.(4) The Korea Automobile Manufacturers Association (KAMA), with the support of its member companies manufacturing passenger cars, has adopted a commitment on CO2 emission reductions from new passenger cars (hereinafter referred to as "the commitment").(5) The Commission is satisfied with the undertakings given by KAMA in the commitment.(6) The Commission acknowledges the assumptions underlying the commitment and will review the situation together with KAMA and agree to any necessary adjustments to the commitment in good faith, in the event that the assumptions are not borne out.(7) The commitment is based on the requirements of Directive 98/70/EC of the European Parliament and of the Council of 13 October 1998 relating to the quality of petrol and diesel fuels and amending Council Directive 93/12/EEC(2), although KAMA expects that the market average fuel quality will be better than these legislative requirements.(8) The Commission and KAMA agree to jointly monitor the undertakings in the commitment, the assumptions underlying them as well as certain other developments.(9) The commitment includes a clause stating that no additional fiscal measures are needed to help KAMA to achieve its CO2 objectives. The commitment does not question the right of the Community or its Member States to exercise their prerogatives in the field of fiscal policy as laid down in the strategy. The effect of fiscal measures will be assessed in the context of the monitoring of the commitment.(10) The Commission intends to present a legislative proposal on CO2 emissions from passenger cars from KAMA fail to achieve the CO2 emission objective for 2009 in its commitment or should it not make sufficient progress towards this objective (as measured in particular against the estimated target range for 2004 in the commitment), and should the Commission not be satisfied that such failure is due to factors for which KAMA cannot be held accountable.(11) The Commission has addressed similar recommendations to European(3) and Japanese(4) automobile associations, to undertake CO2 emission reduction efforts which are equivalent to the commitment for their sales in the Community,HEREBY RECOMMENDS:Article 11. The members of the Korea Automobile Manufacturers Association (KAMA) should, mainly by technological developments and market changes linked to these developments, collectively achieve a CO2 emission target of 140 g/km CO2, as measured according to Commission Directive 93/116/EC(5), for the average of their new cars sold in the Community (category M1 as defined in Annex I to Council Directive 70/156/EEC(6)) by 2009. Innovative concepts for vehicles replacing conventional cars and passenger cars not producing CO2 emissions or using alternative fuels will be counted towards the achievement of this CO2 emission target even if they are not included in category M1 or are not currently covered by Directive 93/116/EC.During the monitoring of the commitment, KAMA should cooperate with the Commission in identifying the effect of market changes which are not linked to technological developments.2. KAMA should evaluate in 2004 the potential for additional fuel-efficiency improvements with a view to moving further towards the objective of 120 g/km CO2 by 2012.3. Individual members of KAMA should place on the market in the Community models emitting 120 g/km CO2 or less, as measured according to Directive 93/116/EC, at the earliest possible date after the year 2000.4. The members of KAMA should undertake every effort to achieve collectively an intermediate CO2 emission target in the range of 165 to 170 g/km CO2, as measured according to Directive 93/116/EC, by 2004.5. KAMA should cooperate with the Commission in the monitoring of its commitment.Article 2This Recommendation is addressed to the Korea Automobile Manufacturers Association (KAMA).Done at Brussels, 13 April 2000.For the CommissionMargot WallströmMember of the Commission(1) COM(95) 689 final of 20 December 1995.(2) OJ L 350, 28.12.1998, p. 58.(3) OJ L 40, 13.2.1999, p. 49.(4) See page 57 of this Official Journal.(5) OJ L 329, 30.12.1993, p. 39.(6) OJ L 42, 23.2.1970, p. 1.


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		52012PC0255

			Recommendation for a COUNCIL DECISION authorising the opening of negotiations for the adaptation of the following agreements in view of the enlargement of the EU to Croatia: the Agreement on the European Economic Area, the Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2009-2014, the Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons and the Agreement on Cooperation and Customs Union with San Marino /* COM/2012/0255 final */

			   	EXPLANATORY MEMORANDUM
The Treaty concerning the accession of the Republic
of Croatia to the European Union[1] was signed on 9 December
2011.
The European Union and its Member States
have concluded agreements on the European Economic Area with Norway, Iceland
and Liechtenstein, on a Norwegian Financial Mechanism for the period 2009-2014,
on free movement of persons with Switzerland, and on a cooperation and customs
union with San Marino.
These agreements need to be adapted to
include Croatia as a contracting party upon its accession to the European
Union. The terms of the adaptation are to be negotiated between the current
contracting parties and the acceding country. The negotiations should be
initiated in a timely fashion, in order to ensure that the instruments for the
adaptation of these agreements will enter into force on the date of accession
of Croatia to the EU.
In accordance with Article 6 of the Act
concerning the conditions of accession of the Republic of Croatia (further on:
Act of Accession), such negotiations should be carried out by the Commission on
the basis of negotiation directives approved by the Council and in consultation
with a committee comprised of the representatives of the Member States.
Negotiations on behalf of the European
Union and its Member States should be launched on the basis of the following
considerations:
1. Agreement on the European Economic
Area
Pursuant to Article 6(5) of the Act of
Accession concerning the conditions of accession of the Republic of Croatia,
Croatia has undertaken to accede to the European Economic Area (EEA), under the
conditions of that Act. In accordance with Article 128 of the Agreement on the
EEA, Croatia will therefore submit its application to the EEA.
To that end, the Commission should be
authorised to negotiate, on behalf of the EU and its Member States, with the
contracting parties of the EEA and Croatia, an Agreement on the participation
of Croatia in the EEA.
On the basis of the experience from the 2007
EEA enlargement negotiations, the following issues have been identified as
possible subjects for negotiation:
–
Derogations and transition periods: The derogations and transition periods agreed in the context of
the Treaty of Accession should be taken over in the EEA Agreement. It is
unlikely that Norway, Iceland and Liechtenstein will oppose this fundamental
principle.
–
Agricultural products and processed
agricultural products: Croatia has a fairly limited
share in EEA trade. However, it cannot be excluded that Norway and Iceland will
request compensation for the termination of existing bilateral free trade
agreements with Croatia from the date of accession. As for agricultural and
processed agricultural products, such adaptations should be agreed
within the framework of the regular negotiations on the basis of Article 19 and
Protocol 3 to the Agreement on the EEA, respectively, with the objective of
continued liberalisation of trade in these products.
–
EEA and Norway Financial Mechanisms: In the 2007 EEA Enlargement Agreement, all three EEA EFTA States
agreed to contribute an additional €72 million to social and economic cohesion
in the enlarged EEA (€21.5 million for Bulgaria and €50.5 million for Romania)
up to 30 April 2009, inclusive. Norway alone contributed an additional €68
million, through two bilateral cooperation programmes for promoting economic
growth and sustainable development in Bulgaria (€20 million) and Romania (€48
million). From 2009-2014, through the Agreement between the European Union,
Iceland, Liechtenstein and Norway on an EEA Financial Mechanism 2009-2014, all
three EEA EFTA States will contribute, in total, €988.5 million to social and
economic cohesion in the EEA. Through the Agreement between the European Union
and Norway on a Norwegian Financial Mechanism for the period 2009-2014, Norway
alone will contribute an additional €800 million in total. The EU point of
departure for the negotiations was that the EEA EFTA States as part of the
internal market would benefit as much as Member States from the enlarged
internal market, and should therefore also participate to a sustainable and
equitable development of the internal market by contributing to the alleviation
of social and economic disparities in the EU/EEA. Considering that it is
envisaged that the EEA and Norway will start negotiations with the EU on the
financial contribution to the beneficiary states for the EEA / Norway financial
mechanisms for the period 2015-2020 in 2013, it seems appropriate to apply
the same logic used for Bulgaria and Romania for the negotiations concerning
Croatia and that the EEA EFTA states should financially contribute to social
and economic cohesion in the enlarged EU/EEA with the EEA/Norway financial
mechanisms, but proportionally, until 2014 and without depriving the current
beneficiary states of any of the previously agreed funds, based on the same
criteria. The allocation of the additional
funds to Croatia should be based on the same criteria as those applied for the
two existing financial mechanisms. In the revision of the financial mechanisms,
it should also be recalled that any existing bilateral assistance agreements
between the EEA-EFTA countries and the new EU Member State will be terminated
upon the accession of the latter to the EU.
During the enlargement process with Bulgaria
and Romania, it was negotiated that the Commission 'may' screen the proposed
projects, instead of 'shall'. This issue should be included again in the
negotiations.
As a general rule, negotiations should be
limited to the main subjects indispensable for EEA enlargement, in order to
avoid lengthy procedures that would endanger simultaneous entry into force of
the EU and EEA enlargements.
2. Switzerland and San Marino
In accordance with Articles 6(2) and 6(3) of
the Act of Accession concerning the conditions of accession of the Republic of
Croatia, Croatia has undertaken to accede to the agreements concluded or signed
by the present Member States and the Union with one or more third countries or
with an international organisation. Pursuant to this same provision, the accession
of Croatia to such agreements shall be agreed by the conclusion of a protocol
to such agreements between the Council, acting unanimously on behalf of the
Member States, and the third country or countries or international organisation
concerned. These protocols[2] are to be negotiated by the Commission on the basis of negotiating
directives approved by the Council, acting unanimously, and in consultation
with a committee comprised of the representatives of the Member States and
concluded by the Council.
For that purpose, the Commission should
submit to the Council a recommendation for the adoption of a decision authorising
the Commission to open negotiations
Agreement on the Free Movement of Persons with Switzerland
With reference to Article 6(3) of the Act
of Accession, the Agreement on the Free Movement of Persons with Switzerland needs
to be adapted to include the new EU Member State. The following issues are
possible subjects of negotiation:
Transition periods: The Agreement on Free
Movement of Persons contains transition periods enabling Switzerland under
certain conditions to enforce quantitative limits in respect of access to an
economic activity for. They vary between 12 years after the entry into force of
the Agreement (until 31 May 2014), 8 years after the entry into force of its
Protocol of 2004 regarding the participation as contracting parties to the
Agreement of the Member States that joined the EU in 2004 (until 31 May 2014),
and 10 years after the entry into force of its Protocol of 2008 regarding the
participation as contracting parties to the Agreement of Bulgaria and Romania
(until 31 May 2019)[3]. As with the previous
enlargement, Switzerland should be granted similar derogations and transition
periods to those agreed in the context of the Treaty of Accession. Calculation
of the Swiss quantitative limits should be obtained by taking account of
existing migration from the acceding country, and of its population.
Agreement on Cooperation and Customs
Union with San Marino
With reference to Article 6(2) of the Act
of Accession of Croatia, this agreement also needs to be adapted to include the
new EU Member State. No particular items of negotiation have been identified.
The Commission therefore recommends to
the Council:
–
to adopt the attached decision authorising the
opening of negotiations to
–
adapt the Agreement on the European Economic
Area in line with the enlargement of the European Union to Croatia,
–
adapt the Agreement between the Kingdom of
Norway and the European Union on a Norwegian Financial Mechanism for the period
2009-2014
–
adapt the Agreement between the European
Community and its Member States, of the one part, and the Swiss Confederation,
of the other, on the free movement of persons in line with the enlargement of
the European Union to Croatia,
–
adapt the Agreement on Cooperation and Customs
Union with San Marino in line with the enlargement of the European Union to
Croatia;
–
to issue the negotiating directives attached to
that decision;
–
to designate a special committee in consultation
with which the negotiations must be conducted.
Recommendation for a
COUNCIL DECISION
authorising the opening of negotiations
for the adaptation of the following agreements in view of the enlargement of
the EU to Croatia: the Agreement on the European Economic Area, the Agreement
between the Kingdom of Norway and the European Union on a Norwegian Financial
Mechanism for the period 2009-2014, the Agreement between the European
Community and its Member States, of the one part, and the Swiss Confederation,
of the other, on the free movement of persons and the Agreement on Cooperation
and Customs Union with San Marino
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 218(3) and (4)
thereof,
Having regard to Treaty between the Kingdom
of Belgium, the Republic of Bulgaria, the Czech Republic, the Kingdom of
Denmark, the Federal Republic of Germany, the Republic of Estonia, Ireland, the
Hellenic Republic, the Kingdom of Spain, the French Republic, the Italian
Republic, the Republic of Cyprus, the Republic of Latvia, the Republic of
Lithuania, the Grand Duchy of Luxembourg, the Republic of Hungary, the Republic
of Malta, the Kingdom of the Netherlands, the Republic of Austria, the Republic
of Poland, the Portuguese Republic, Romania, the Republic of Slovenia, the
Slovak Republic, the Republic of Finland, the Kingdom of Sweden, the United
Kingdom of Great Britain and Northern Ireland (Member States of the European
Union) and the Republic of Croatia concerning the accession of the Republic of
Croatia to the European Union[4], signed on 9 December
2011, and in particular Article 3(4) thereof,
Having regard to the Act concerning the
conditions of accession of the Republic of Croatia and the adjustments to the
Treaty on European Union, the Treaty on the Functioning of the European Union
and to the Treaty establishing the European Atomic Energy Community[5],
and in particular the second subparagraph of Article 6(2) and Article 6(5) thereof,
Having regard to the recommendation from
the European Commission,
Whereas negotiations should be opened for
the adaptation in view of the enlargement of the EU to Croatia of the Agreement
on the European Economic Area, to the Agreement between the Kingdom of Norway
and the European Union on a Norwegian Financial Mechanism for the period
2009-2014, the Agreement between the European Community and its Member States,
of the one part, and the Swiss Confederation, of the other, on the free
movement of persons and the Agreement on Cooperation and Customs Union with San
Marino,
HAS ADOPTED THIS DECISION:
Article 1
The Commission is hereby authorised to
negotiate, on behalf of the European Union and its Member States, the
amendments to the Agreement on the European Economic Area and to the Agreement
between the Kingdom of Norway and the European Union on a Norwegian Financial
Mechanism for the period 2009-2014 in view of the enlargement of the European Union
to Croatia.
Article 2
The Commission is hereby authorised to
negotiate, on behalf of the European Union and its Member States, including –
subject to the entry into force of the Treaty of Accession – the Republic of
Croatia, the amendments to the Agreement between the European Community and its
Member States, of the one part, and the Swiss Confederation, of the other, on
the free movement of persons and to the Agreement on Cooperation and Customs
Union with San Marino in view of the enlargement of the European Union to
Croatia.
Article 3
The negotiating directives are set out in
the Annex.
Article 4
The negotiations shall be conducted in
consultation with the [name of the special committee to be inserted by the
Council].
Article 5
This Decision is addressed to the
Commission.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
ANNEX
Directives for the negotiation
for
the adaptation in view of the enlargement of the EU to Croatia of the Agreement
on the European Economic Area, the Agreement between the Kingdom of Norway and
the European Union on a Norwegian Financial Mechanism for the period 2009-2014,
the Agreement between the European Community and its Member States, of the one
part, and the Swiss Confederation, of the other, on the free movement of
persons and the Agreement on Cooperation and Customs Union with San Marino
1.           General Objective
Adaptation of the above mentioned agreements to
allow for the accession of Croatia to these agreements upon its accession to
the EU and revision of the relevant financial contributions for the alleviation
of economic and social disparities in the enlarged EU.
2.           Start of the negotiations
The negotiations on the adaptation of the above
agreements with the acceding country, on the one hand, and Iceland,
Liechtenstein, Norway / Switzerland / San Marino, respectively, on the other hand,
should start as soon as possible.
3.           Content of the instruments adapting the
existing agreements
The incoming new Member State of the EU is to
accede to the agreements.
Agreement on the European Economic Area
(EEA Agreement) and the Agreement on the Norwegian Financial Mechanism
The derogations and transition periods agreed
in the Act concerning the conditions of accession of
the Republic Croatia should be taken over in the EEA Agreement. A proportional
increase in the existing EEA and Norwegian financial mechanisms until 2014
should be obtained for Croatia, based on the same criteria as those applied for
the existing mechanisms. Negotiations should as much as possible be limited to
the main subjects indispensable for EEA enlargement.
Agreement between the European Community
and its Member States, of the one part, and the Swiss Confederation, of the
other, on the free movement of persons
The derogations and transition periods agreed
in the Act of Accession should be taken over where relevant. Calculation of the
Swiss quantitative limits should be obtained by taking account of existing
migration from the acceding country and of its population.
Agreement on Cooperation and Customs
Union with San Marino
This agreement has to be adapted to include Croatia
upon its accession to the EU. No particular subjects have been identified that
require substantial negotiation.
4.           Ratification and Entry into Force
Negotiations should be concluded as soon as
possible in order to allow for the instruments of adaptation to enter into
force on the date of and subject to accession of Croatia. In case the instruments
of adaptation cannot enter into force at the date of accession, a provisional
application should be envisaged, taking into account the respective procedures
in the EU and in the third countries concerned.
 FINANCIAL STATEMENT ||
   || DATE:
 1. || BUDGET HEADING: n.a. || APPROPRIATIONS:
 2. || TITLE:   Adaptation of the following mixed agreements in view of the enlargement of the EU to include Croatia: Agreement on the European Economic Area, Agreement between the Kingdom of Norway and the European Union on a Norwegian Financial Mechanism for the period 2009-2014 Agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on Free Movement of Persons, Agreement on Cooperation and Customs Union with San Marino
 3. || LEGAL BASIS: Articles 207, 217 and 218 TFEU
 4. || AIMS:
 5. || FINANCIAL IMPLICATIONS   None || 12 MONTH PERIOD (EUR million) || CURRENT FINANCIAL YEAR [n] (EUR million) || FOLLOWING FINANCIAL YEAR [n+1] (EUR million)
 5.0 || EXPENDITURE -               CHARGED TO THE EU BUDGET (REFUNDS/INTERVENTIONS) -               NATIONAL AUTHORITIES -               OTHER ||     None ||     None ||     None
 5.1 || REVENUE -               OWN RESOURCES OF THE EU (LEVIES/CUSTOMS DUTIES) -               NATIONAL ||     None ||     None ||     None
   ||   || [n+2] || [n+3] || [n+4] || [n+5]
 5.0.1 || ESTIMATED EXPENDITURE ||   ||   ||   ||
 5.1.1 || ESTIMATED REVENUE ||   ||   ||   ||
 5.2 || METHOD OF CALCULATION:
 6.0 || CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? || YES
 6.1 || CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? ||  NO
 6.2 || WILL A SUPPLEMENTARY BUDGET BE NECESSARY? ||  NO
 6.3 || WILL APPROPRIATIONS NEED TO BE ENTERED IN FUTURE BUDGETS? ||  NO
 OBSERVATIONS:
[1]               [Treaty between the Kingdom of Belgium, the Republic
of Bulgaria, the Czech Republic, the Kingdom of Denmark, the Federal Republic
of Germany, the Republic of Estonia, Ireland, the Hellenic Republic, the
Kingdom of Spain, the French Republic, the Italian Republic, the Republic of
Cyprus, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy of
Luxembourg, the Republic of Hungary, the Republic of Malta, the Kingdom of the
Netherlands, the Republic of Austria, the Republic of Poland, the Portuguese
Republic, Romania, the Republic of Slovenia, the Slovak Republic, the Republic
of Finland, the Kingdom of Sweden, the United Kingdom of Great Britain and
Northern Ireland (Member States of the European Union) and the Republic of
Croatia concerning the accession of the Republic of Croatia to the European
Union, OJ L 112 of 24 April 2012]
[2]               Unless those concerning
agreement related exclusively or principally to the
common foreign and security policy.
[3]               Article 10 of the Agreement as supplemented by the
Protocols of 2004 and 2008.
[4]               OJ L 112 of 24 April 2012.
[5]               OJ L 112. of 24 April 2012