title: Council Recommendation of 12 July 2011 on the national reform programme 2011 of Lithuania and delivering a Council opinion on the updated convergence programme of Lithuania, 2011-2014

text:
               16.7.2011

               EN

               Official Journal of the European Union

               C 210/1

         COUNCIL RECOMMENDATION
   of 12 July 2011
   on the national reform programme 2011 of Lithuania and delivering a Council opinion on the updated convergence programme of Lithuania, 2011-2014
   2011/C 210/01
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,
   Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 9(3) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   After consulting the Economic and Financial Committee,
   Whereas:

               (1)

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

               (2)

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

               (3)

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

               (4)

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

               (5)

               On 25 March 2011, the European Council also invited the Member States participating in the Euro Plus Pact to present their commitments in time to be included in their stability or convergence programmes and their national reform programmes.

               (6)

               On 28 April 2011, Lithuania submitted its 2011 convergence programme update covering the period 2011-2014 and its 2011 national reform programme. In order to take account of the interlinkages, the two programmes have been assessed at the same time.

               (7)

               The Lithuanian economy is recovering from a severe economic crisis, during which GDP contracted by 17 % from peak to trough as the collapse in domestic demand was amplified by a slump in global trade. The labour market reacted rapidly to the crisis, and unemployment rose to a record high, peaking at 18,3 % by mid-2010 from as low as 4,2 % at the beginning of 2008. A strong commitment to the currency board arrangement, underpinned by substantial fiscal consolidation alongside adjustment in private sector wages and measures aimed at strengthening financial system stability, helped stabilise the economy. As the global economy recovered, and the economy benefitted from regained competitiveness, exports surged and economic growth resumed in 2010. In 2011, the recovery is gathering pace as domestic demand picks up. However, even though unemployment is expected to decline at a rapid pace, it will remain at double-digit level.

               (8)

               Based on the assessment of the updated convergence programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underlying the 2011 convergence programme is plausible although economic growth and inflation may turn out higher than currently projected. While based on somewhat more favourable growth assumptions for 2011, it is broadly in line with the latest Commission forecast for 2012. The convergence programme plans to bring the deficit below the 3 % reference value by 2012, the deadline set by the Council, but is not sufficiently underpinned by measures for 2012. The accelerating economic momentum may lead to better 2011 budgetary outcomes than expected in the convergence programme. However, if temporary consolidation measures that will expire at the end of 2011 are not renewed and complemented by sizable permanent measures, the convergence programme's budgetary targets for 2012 risk not being met despite the improving macroeconomic outlook. The average annual fiscal effort over the period of 2010-2012 is well below the 2,25 % of GDP recommended by the Council under the excessive deficit procedure (EDP) adopted on 16 February 2010. As economic growth and tax revenues are substantially stronger than expected at the time of the Council EDP Recommendation of 16 February 2010, implementation of the required fiscal effort should allow for faster deficit reduction and progress towards the medium-term objective (MTO). The MTO of a structural surplus of 0,5 % of GDP is not foreseen to be achieved within the convergence programme period.

               (9)

               In view of the sizable adjustment required to meet the 2012 EDP target and make progress towards the MTO, and the need to secure the necessary co-financing in order to frontload the absorption of EU structural funds and increase productive investment in the economy, identifying further consolidation measures will be a challenge. Improvements in public sector efficiency could create additional room for expenditure adjustments without compromising the quality of public services. In the absence of further reform, age-related expenditure will increase at a rate above the EU average over the next few decades. In June 2010, the government approved the broad outline of a comprehensive social security and pension system reform. The proposal included significant increases in the pensionable age, changes to the way pensions are calculated and the integration of state pensions into the general scheme of social insurance. The approval and successful implementation of all aspects of these proposals will be critical for long-term fiscal sustainability and could help increase the labour supply by providing stronger incentives to work for older workers while ensuring the adequacy of pensions. Moreover, long-term fiscal sustainability would also require a stronger fiscal framework. In particular, in the run-up to the crisis, the fiscal framework did not prevent recurrent sizeable revisions of expenditure targets and pro-cyclical expenditure growth financed by revenue windfalls. Excessive expenditure growth financed by boom-related revenues was at the origin of the large fiscal imbalances that emerged during the crisis. They also contributed to overheating the economy. According to the Commission's latest assessment, the risks with regard to long-term sustainability of public finances appear to be high.

               (10)

               The unemployment rate in Lithuania is one of the highest in the EU. The immediate concern is to ensure that this rapid increase does not become structural. Very strict labour regulations and disincentives to work within the social assistance system are compromising the functioning of the labour market. This requires a revision of the Labour Code and other relevant legislation, in particular the Law on Cash Social Assistance. When combined with sufficiently funded active labour market policies, measures taken in these domains would help reduce the risk of high unemployment becoming structural, and reduce the sizeable shadow economy.

               (11)

               Lithuanian State-owned enterprises represent about 18 % of GDP. They remain prone to inefficiencies with unsatisfactory financial returns. The successful reform of State-owned enterprises would also enhance competition and improve the business environment. In 2010 Lithuania began a reform in five major sectors. The reform set out transparency guidelines for State-owned enterprises, providing a basis for government accountability. The Government's Resolution on Improvement of Efficiency in December 2010 provided a further credible framework for the reform. Nevertheless these remain only frameworks and guidelines, and the Resolution lacks a number of key measures initially proposed, and which would have ensured the separation of regulatory and ownership functions.

               (12)

               The energy intensity of the Lithuanian economy is one of the highest in the EU. This is to a large extent related to household heating where poorly maintained multi-apartment buildings account for the bulk of the problem. Despite the introduction of a strategy to address this dating back to 2004, few investments have been made. Moreover, levels of car ownership have increased rapidly, whilst revenues from energy and transport taxes have fallen relative to GDP and to taxes on labour (considerably above the EU average). Addressing low energy tax rates, including those for the registration and ownership of transport vehicles, would support fiscal consolidation in the short term, whilst also incentivising more efficient energy use.

               (13)

               While Lithuania has a business regulatory framework that is favourable overall, it scores relatively poorly on start-up conditions, the time and cost involved in issuing construction permits, and the protection of investors. Improvements to regulations in these areas would help stimulate job creation and growth. Competition policy reform would further improve the environment, but progress is slow, especially in the energy and food retail sectors. The completion of the revised national energy independence strategy will help address concerns over security of supply and support greater competition in electricity generation. The implementation of the Third Package of EU electricity and gas market legislation would improve retail energy market competition. Within the food retail sector, Lithuanian passed a law in 2009 on the prohibition of unfair operations of retail trade undertakings. However, the food retail sector continues to show an insufficient level of competition, due partly to its structure and inefficiencies in market regulation. Concentration in the food retail chains has been on an upward trend, with the share of the four largest retailers reaching 72 % of the total sales in 2008.

               (14)

               Lithuania has made a number of commitments under the Euro Plus Pact. To strengthen fiscal sustainability, Lithuania will adopt laws to facilitate the accumulation of funds in the State Treasury reserve for difficult economic periods and promote a responsible anti-inflationary budgetary policy. A number of important measures to reform the pension and social security system have also been announced. Employment measures focus on fostering employment, combating illegal and undeclared work, and promoting flexible employment agreements. To improve the business environment a number of commitments have been made to strengthen business inspectorates, increase transparency and reduce the administrative burden on business. These commitments relate to all four areas of the pact. Overall, they reflect the reform agenda outlined in the convergence programme and the national reform programme. The range of measures in the employment domain would, if implemented, provide a welcome contribution to generating demand for labour. These commitments have been assessed and taken into account in the recommendations.

               (15)

               The Commission has assessed the convergence programme and national reform programme, including the Euro Plus Pact commitments. It has taken into account not only their relevance for sustainable fiscal and socio-economic policy in Lithuania, but also their conformity with EU rules and guidance, given the need to reinforce the overall economic governance of the EU by providing EU-level input into future national decisions. In this light, the Commission considers that measures to ensure compliance with the budgetary targets for 2012 will need to be specified. Further steps should be also taken to reform the pension system in order to improve fiscal sustainability and to encourage longer working lives, improve the functioning of the labour market, implement the State-owned enterprises reform package, improve energy efficiency and address low taxes on energy, and strengthen competition in certain sectors.

               (16)

               In light of this assessment, also taking into account the Council Recommendation under Article 126(7) of the Treaty on the Functioning of the European Union of 16 February 2010, the Council has examined the 2011 update of the convergence programme of Lithuania and its opinion (3) is reflected in particular in its recommendations (1) and (2) below. Taking into account the European Council conclusions of 25 March 2011, the Council has examined the national reform programme of Lithuania,

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

               1.

               Adopt additional fiscal measures of a permanent nature by the time of the 2012 budget to correct the excessive deficit in line with the Council recommendations under the EDP. Reinforce tax compliance and take full advantage of the economic recovery to further accelerate deficit reduction and ensure progress towards the medium-term objective by at least 0,5 % of GDP annually. Strengthen the fiscal framework, in particular by introducing enforceable and binding expenditure ceilings in the medium-term budgetary framework.

               2.

               Adopt the proposed implementing legislation on Pension System Reform. In order to enhance participation in the labour market, remove fiscal disincentives to work, especially for people at pensionable age.

               3.

               Enhance labour market flexibility by amending the labour legislation to make it more flexible and to allow better use of fixed-term contracts. Amend the relevant legislation to ensure that the social assistance system does not contain disincentives to work.

               4.

               Implement all aspects of the State-owned enterprise reform package by the end of 2011, ensuring a separation of ownership and regulatory functions, clear enterprise objectives, enhanced transparency and a separation of commercial and non-commercial activities.

               5.

               Improve the energy efficiency of buildings, including through a rapid implementation of the Holding Fund, and take steps to shift taxation towards energy use.

               6.

               Take steps to improve start-up conditions and the delivery of construction permits, and to strengthen competition in the energy and retail sectors.

      Done at Brussels, 12 July 2011.

            For the Council

            The President

         J. VINCENT-ROSTOWSKI

      (1)  OJ L 209, 2.8.1997, p. 1.

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

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


Avis juridique important

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32002H0218

Council Recommendation of 5 March 2002 concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (1995) (eighth EDF) for the financial year 2000

Official Journal L 072 , 14/03/2002 P. 0025 - 0025

Council Recommendationof 5 March 2002concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (1995) (eighth EDF) for the financial year 2000(2002/218/EC)THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community,Having regard to the Fourth ACP-EC Convention, signed at Lomé on 15 December 1989, as amended by the Agreement signed at Mauritius on 4 November 1995,Having regard to Council Decision 91/482/EEC of 25 July 1991 on the association of the overseas countries and territories with the European Economic Community(1), as revised in the interim by Decision 97/803/EC(2),Having regard to the Internal Agreement on the financing and administration of Community aid(3), signed in Brussels on 20 December 1995, and in particular Article 33(3) thereof,Having regard to the Financial Regulation of 16 June 1998 applicable to the eighth European Development Fund(4), and in particular Articles 69 to 74 thereof,Having examined the revenue and expenditure account and the balance sheet relating to the operations of the European Development Fund (1995) (eighth EDF) as at 31 December 2000 and the Court of Auditors' report relating to the financial year 2000 together with the Commission's replies(5),Whereas:(1) Pursuant to Article 33(3) of the Internal Agreement, the discharge for the management of the European Development Fund (1995) (eighth EDF) must be given to the Commission by the European Parliament on a recommendation from the Council.(2) The overall implementation by the Commission of the operations of the European Development Fund (1995) (eighth EDF) during the financial year 2000 has been satisfactory,HEREBY RECOMMENDS that the European Parliament give the Commission a discharge in respect of the implementation of the operations of the European Development Fund (1995) (eighth EDF) for the financial year 2000.Done at Brussels, 5 March 2002.For the CouncilThe PresidentR. de Rato y Figaredo(1) OJ L 263, 19.9.1991, p. 1.(2) OJ L 329, 29.11.1997, p. 50.(3) OJ L 156, 29.5.1998, p. 108 and Corrigendum OJ L 173, 18.6.1998, p. 54.(4) OJ L 191, 7.7.1998, p. 53.(5) OJ C 359, 15.12.2001, p. 421.


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		52013PC0914

			Recommendation for a COUNCIL RECOMMENDATION with a view to bringing an end to the situation of an excessive government deficit in Croatia /* COM/2013/0914 final */

			   	Recommendation for a
COUNCIL RECOMMENDATION
with a view to bringing an end to the
situation of an excessive government deficit in Croatia
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the
Treaty on the Functioning of the European Union, and in particular Article
126(7) thereof,
Having regard to the
recommendation from the Commission;
Whereas:
(1)       According to Article 126
of the Treaty on the Functioning of the European Union
(TFEU) Member States shall avoid excessive government deficits.
(2)       The Stability and Growth
Pact is based on the objective of sound government finances as a means of
strengthening the conditions for price stability and for strong sustainable
growth conducive to employment creation.
(3)       On X January 2014, the Council decided, in accordance with Article
126(6) TFEU, that an excessive deficit existed in Croatia.
(4)       In accordance with Article
126(7) TFEU and Article 3 of Council Regulation (EC) No 1467/97 on speeding up
and clarifying the implementation of the excessive deficit procedure (EDP)[1], the Council is
required to address recommendations to the Member State concerned with a view
to bringing the situation of an excessive deficit to an end within a given
period. The recommendation has to establish a maximum deadline of six months
for effective action to be taken by the Member State concerned to correct the
excessive deficit. Furthermore, in a recommendation to correct an excessive
deficit the Council should request the achievement of annual budgetary targets
which, on the basis of the forecast underpinning the recommendation, are
consistent with a minimum annual improvement in the structural balance, i.e.
the cyclically-adjusted balance excluding one-off and other temporary measures,
of at least 0.5% of GDP as a benchmark. In addition, in accordance with Article
2 of Council Regulation (EC) No 1467/97 specifying the requirement under the
debt criterion, the budgetary target recommended for the final year of the
correction period must ensure that the required reduction in the differential
between the debt to GDP level and the 60% of GDP Treaty reference value will
occur over the two years following the correction of the excessive deficit,
based on the Commission forecast.
(5)       According to the
Commission 2013 Autumn forecast, the general government deficit is projected to
remain above the 3% of GDP reference value in the period 2013-2015, and the
structural balance is projected to continue deteriorating throughout the
forecast period, from around 4% of GDP in 2013 to nearly 6% of GDP in 2015. These
developments result mainly from increases on the expenditure side such as
interest outlays combined with revenue shortfalls. The Commission 2013 Autumn forecast
did not include the budgetary consolidation programme announced in September 2013
with the release of the Economic and Fiscal Policy Guidelines, as the
information on measures underpinning this announced consolidation package was
very limited. Measures presented in the second revision of the 2013 budget and the
draft 2014 budget adopted by the government on 14 November 2013 and sent to the
Parliament do not have a substantial impact on
budgetary trends. Indeed, the projections for government
revenues and expenditures and general government debt in the Commission 2013
Autumn forecast updated to reflect the new information that has become
available since the publication, show only very modest changes. The revised
projections constitute the Commission's new baseline.
(6)       Regarding
general government debt developments, according to the revision of the 2013
budget and the draft 2014 budget the planned general government debt-to-GDP ratio at the end of 2014 is expected to reach 62% and to increase
further to about 64% and 64¾% in 2015 and 2016. The
Commission 2013 Autumn forecast projects the government debt ratio to breach
the Treaty reference value in 2014, reaching close to 65%, and increasing
further over the forecast. An update of the 2013 Autumn forecast to incorporate
additional information that became available after the forecast release, most
notably a new USD-denominated bond issuance in November
2013, brings the general government debt ratio above the 60% of GDP threshold
already in 2013.
(7)       Against the background of
high uncertainites regarding economic and budgetary developments, the budgetary
target recommended for the final year of the correction period should be set at
a level clearly below the reference value, in order to ensure compliance with
the debt reduction benchmark in the final year of the EDP period.
(8)       According to Regulation
1467/97, the correction of the excessive deficit should be completed in the
year following its identification, unless there are special circumstances. In
order to correct the excessive deficit by the 2015 deadline consistent with
this approach and ensure the joint compliance with the debt reduction benchmark,
the required structural effort would amount to at least 1.3% of GDP both in
2014 and 2015. This would result in a significant output loss and aggravate an already
protracted and deep recession. Longer deadlines could be set, in particular in
the case of excessive deficit procedures based on the debt criterion, when the
government deficit requested to comply with the debt criterion is significantly
lower than 3% of GDP.
(9)       In light of this, setting
the deadline for the correction of the excessive deficit by 2016 is warranted. In
particular, a credible and sustainable adjustment path under this extended
deadline would require Croatia to reach a headline general government target of
4.6% of GDP for 2014, 3.5% of GDP in 2015 and 2.7% of GDP in 2016, which is
consistent with an annual improvement in the structural balance of 0.5% of GDP
in 2014, 0.9% of GDP in 2015 and 0.7% of GDP in 2016, based on the EDP
scenario. The scenario for the adjustment path has been built on the Commission
2013 Autumn forecast updated to reflect new information, including from the revision
of the 2013 budget and draft 2014 budget, and extended up to 2018 relying on
standard assumptions about the closure of the output gap and the sensitivity of
the budget to the cycle. This adjustment path would allow bringing the headline
government deficit below the 3% of GDP reference value by 2016 while at the
same time ensuring that the debt to GDP ratio will approach the 60% reference
value at a satisfactory pace, thus complying with the government debt
criterion. Based on the EDP scenario, to reach the above-mentioned structural
targets Croatia would need to adopt consolidation measures of 2.3% of GDP in
2014, 1% of GDP in 2015 and 2016. These targets take into account the need to
compensate for the negative second-round effects of fiscal consolidation on public
finances, through its impact on economic activity.
(10)     Budgetary consolidation
measures should secure a lasting improvement in the general government balance,
while being geared towards enhancing the quality of public finances. In
particular, measures to prioritise growth-enhancing expenditure and investments
including through the use of EU cohesion and structural funds, enhance tax
compliance, and strenghten the fiscal framework would be supportive in this
respect.
(11)     In order to ensure an
outcome most conducive to economic prosperity in the medium to long run, the
correction of the excessive deficit would benefit from accompanying
macro-structural reforms. These measures should aim to reinforce the growth
potential of the economy by creating a more flexible labour market, improving
the quality of the business environment and increasing the efficiency of public
administration,
HAS ADOPTED THIS RECOMMENDATION:
(1)
Croatia should put an
end to the present excessive deficit situation by 2016.
(2)
Croatia should reach
headline general government deficit targets of 4.6% of GDP for 2014, 3.5% of
GDP in 2015 and 2.7% of GDP in 2016, which is consistent with an annual
improvement in the structural balance of 0.5% of GDP in 2014, 0.9% of GDP in 2015
and 0.7% of GDP in 2016.
(3)
Croatia should specify
and rigorously implement the measures that are necessary to achieve the
correction of the excessive deficit by 2016, and use any windfall gains for
deficit reduction.
(4)
The Council establishes the deadline of 30 April
2014 for Croatia to take effective action and, in accordance with Article 3(4a)
of Council Regulation (EC) No 1467/97, to report in detail the consolidation
strategy that is envisaged to achieve the targets; thereafter the authorities
should report on progress made in the implementation of these recommendations
at least every six months, until full correction of the excessive deficit has
taken place.
Furthermore, the Council invites the
Croatian authorities to (i) carry out a thorough expenditure review with the
objective to rationalise wage, social security and subsidy outlays and to
provide sufficient fiscal space for implementation of growth-enhancing expenditure,
including co-financing of EU-funded projects; (ii) further improve tax
compliance and increase the efficiency of tax administration and (iii) improve
the institutional framework of public finances, including through enhancing
multi-annual budgetary programming, strengthening the role and independence of
the Fiscal Policy Committee, and ensuring compliance with fiscal rules. In
addition, the Council invites the Croatian authorities to implement structural reforms,
notably as regards addressing labour market rigidities and an unfavourable
business environment and improving the quality of public administration, with a
view to raising potential GDP growth.
This Recommendation
is addressed to the Republic of Croatia.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 209, 2.8.1997, p. 6.


Avis juridique important

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31970H0122

70/122/EEC: Commission Recommendation of 22 December 1969 to the Italian Republic on the adjustment of the State monopoly of a commercial character in cigarette paper (Only the Italian text is authentic)

Official Journal L 031 , 09/02/1970 P. 0009 - 0011 Danish special edition: Series II Volume VI P. 0019  English special edition: Series II Volume VI P. 0019

COMMISSION RECOMMENDATION of 22 December 1969 to the Italian Republic on the adjustment of the State monopoly of a commercial character in cigarette paper (Only the Italian text is authentic) (70/122/EEC) I    1. The Italian Government, by letter of 24 March 1959, informed the Commission of the European Economic Community that cigarette paper cut to size, in packets or tubes, is in Italy subject to a State monopoly of a commercial character within the meaning of Article 37 of the EEC Treaty.  Under that provision Member States are required progressively to adjust State monopolies of a commercial character so as to ensure that, when the transitional period has ended, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of Member States.       2. Royal Decree No 70 of 13 January 1936 (which became Law No 1342 of 4 June 1936) gave the State the sole right to import and sell in Italy cigarette paper cut to size, in packets or rolls. The sale is carried out by the distribution network of the Amministrazione autonoma dei monopoli di Stato (AAMS). Export is subject to a permit.  The manufacture of those products by private undertakings requires a permit from the AAMS. The products must be sold to the AAMS at delivery prices fixed by the Minister of Finance on advice from the AAMS. The latter is, moreover, entitled to fix the quantity of paper which each permit holder may manufacture for domestic consumption. Production may be carried out directly by the AAMS. In fact it at present produces about 40 % of the Italian output, the remaining 60 % being produced by private undertakings.       3. Since 1958, the Italian Government has taken certain measures for the adjustment of the monopoly:      (a) By Law No 1085 of 19 December 1958 and by Law No 825 of 13 July 1965 the principle of specifying retail price components was adopted for cigarette paper as for other products subject to a revenue-producing monopoly : for each price charged by the supplier of such products, the amount of the consumer tax and the amounts allowed to the AAMS for distribution costs and to retailers by way of rebate are fixed by law and published ; the total is the sale price to the public. Suppliers, by asking a particular delivery price, can thus determine the end-price at which their products will be sold.           (b) Presidential Decree No 390 of 9 March 1961, by way of derogation from the Decree of 1936, allowed the importation of cigarette paper into Italy within an annual quota equal to 5 % of domestic production. Prior approval of the AAMS is required for quantities in excess of 2 000 units and the product must have the same characteristics as those laid down for domestic production. No derogation from the AAMS sales monopoly is however permitted since the Decree of 9 March 1961 lays down Article 5 that cigarette paper from Member States of the EEC may, in the Italian territory over which the monopoly extends, be sold only through the monopoly's selling organization. The importation of cigarette paper for the purpose of sale is therefore conditional on the product being delivered to AAMS for sale on a consignment basis. The first quota (for the year 1961) was fixed by Ministerial Decree of 16 June 1961 at 465 000 000 sheets and/or tubes and has been increased each year : in 1966 it reached an amount of 935 281 090. However, no imports of the products in question have been effected.                  4. The Commission is of the opinion that the measures so far taken are insufficient to achieve the objective of Article 37.  Since the end of the transitional period is approaching, measures should now be adopted to bring to an end all discrimination between nationals of Member States regarding the conditions under which goods are procured and marketed.  Article 37, which comes under the Title relating to the free movement of goods and, more particularly, under the Chapter concerning the elimination of quantitative restrictions between Member States, aims at achieving by the end of the transitional period in respect of products subject to a State monopoly of a commercial  character (or a like system), the same result as that achieved for other products by the application of Articles 30 to 34, that is to say the free movement of goods.  However, a different procedure was provided in order to achieve that result in the sectors covered by State monopolies. Their progressive adjustment was provided for partly in order to take account of the fact that in the view of the Member States concerned the products subject to a monopoly presented special problems and partly so that the elimination of quantitative restrictions and of measures having an equivalent effect in those sectors should not be without practical result. There were indeed grounds for fearing that the liberalization of trade in respect of the products subject to a monopoly would not take place if the monopolies, by virtue of their exclusive right to import, export and market certain products, were to remain free to decide to what extent and under what conditions products from other Member States could be allowed on the domestic market (or, conversely, to what extent domestic products could be exported to other Member States).  It is for that reason that Article 37 contains the provision designed "to ensure that when the transitional period has ended no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of Member States".  It should be stressed that the ending of discrimination resulting directly from provisions applicable to products subject to a monopoly is not the only requirement laid down in Article 37 ; that objective could be achieved, in the absence of an Article on State monopolies, by means of other provisions of the Treaty, in particular those prohibiting charges having an equivalent effect to customs duties and measures having an equivalent effect to quantitative restrictions. It follows from what has been said above in relation to the special characteristics of the State monopolies and of the restrictions to which they can give rise that the objective of the "adjustment", i.e. of ensuring that "no discrimination exists", is to eliminate the possibility that the particular powers vested in the monopolies in respect of the importing and domestic marketing, or the exporting, of certain products might at the end of the transitional period still give rise to discrimination.  Since these are the objectives laid down in Article 37, it is incumbent upon Italy to adjust the monopoly in cigarette paper before the end of the transitional period in order that the objectives may be attained. On the other hand, it is for the Commission, in addition to its general duty to see that the Treaty is implemented, to make recommendations, in accordance with Article 37 (6), as to the manner in which the adjustment provided for in that Article shall be carried out.  The Commission considers that the objective of Article 37 will not be attained so long as the AAMS is in a position to decide whether, to what extent and in respect of which qualities the needs of the Italian market will be covered by suppliers from other Member States.  The adjustment of the monopoly, by means of the Decree of 9 March 1961 on the opening of quotas, has not in essence changed this situation, since sale on the Italian market has remained the preserve of the monopoly.  For these reasons it seems to the Commission that the best solution for attaining the objective laid down in Article 37, because there is no doubt that it will be effective, is to abolish the exclusive importing and marketing rights of AAMS, in so far as those rights concern trade between Member States.       5. The Monopoly in cigarette paper has the character of a revenue-producing monopoly. Pursuant to Article 90 (2) of the EEC Treaty undertakings having the character of a revenue-producing monopoly are subject to the rules contained in the Treaty, in particular the rules of competition, in so far as the application of such rules does not obstruct the performance in law or in fact of the particular tasks assigned to them. The development of trade must not be affected to such an extent as would be contrary to the interests of the Community.  The Commission is of the opinion that the revenue function of this monopoly does not justify the maintenance of the restrictions which now exist in respect of the importation and marketing of the products in question. Because of the general rise in the standard of living and of the steadily increasing preference of consumers for ready-made cigarettes, the importance of cut-to-size cigarette paper is continually deminishing, as is borne out by the figures for production and consumption.  In the circumstances the importance of the revenue function of that monopoly may well be doubted, since it consists in the main in reserving to the State the right to manufacture and/or sell and in fixing the selling price at a much higher level than the cost price. Through the adoption in 1958 of a system of specifying retail price components, thereby establishing a direct and constant relationship between each selling price and each delivery price, the Italian Government had already taken away much of the significance of the monopoly's revenue function : since the amount of tax corresponding to a particular selling price is fixed in advance, the ability of the tax authorities to derive the maximum tax revenue from the sale of each product - which, as has been shown, is the main taxation objective - has been correspondingly reduced. One should further add that, in this particular case, the fixing of a high selling price, in order to make a maximum profit, would eventually further hasten the decline of the product. In the circumstances, it seems that the revenue function of the monopoly could be fulfilled simply by means of a consumer tax.    II  On these grounds the Commission of the European Communities recommends the Italian Republic to take  the following measures, in accordance with Article 37 of the EEC Treaty:      1. To allow cigarette paper, cut to size, in packets or tubes, to be imported from Member States without any restriction. To that end, all formalities necessary for the introduction of these products on to the Italian market must be such as can be carried out directly by the buyers or persons appointed by them, so that the latter may immediately dispose of the products without the intervention of the AAMS.           2. To allow all operations necessary for the marketing of cigarette paper from other Member States to be freely carried out on the Italian market. To that end, in particular:        - to allow suppliers from other Member States to set up their own wholesale trade network in Italy and to hold stocks there;               - to allow prices for products from the other Member States to be freely agreed between sellers and buyers at the different stages of marketing;               - to allow suppliers from other Member States to advertise their products freely;               - to take all measures necessary to ensure that retailers are commercially independent of the public authorities.                          3. To allow cigarette paper to be exported, without limitation, to the other Member States.   Done at Brussels, 22 December 1969.  For the Commission  The President  Jean REY


Avis juridique important

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31996H0527

96/527/EC: Commission Recommendation of 30 July 1996 on the use of the Common Procurement Vocabulary (CPV) for describing the subject matter of public contracts (Text with EEA relevance)

Official Journal L 222 , 03/09/1996 P. 0010 - 0012

COMMISSION RECOMMENDATION of 30 July 1996 on the use of the Common Procurement Vocabulary (CPV) for describing the subject matter of public contracts (Text with EEA relevance) (96/527/EC)THE COMMISSION OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European Community, and in particular the second indent of Article 155 thereof,(1) Whereas the Commission has adopted a communication on administrative simplification in the Community with a view to achieving greater transparency in the transmission of information;(2) Whereas Council Directives 92/50/EEC (1), 93/36/EEC (2), 93/37/EEC (3) and 93/38/EEC (4) require contracting authorities and contracting entities in all Member States to publish notices in the Official Journal of the European Communities so that there is effective competition for public contracts;(3) Whereas certain items of notices must give a precise description of the subject matter of the contract by reference to various nomenclatures (5);(4) Whereas it is necessary to harmonize the references made to the different nomenclatures currently used by contracting authorities or by contracting entities operating in the water, energy, transport and telecommunications sectors, to describe the subject matter of contracts to be published in accordance with the Directives relating to public contracts;(5) Whereas the Common Procurement Vocabulary (CPV) is an adaptation of the CPA established by Council Regulation (EEC) No 3696/93 (6) designed for describing the subject matter of contracts;(6) Whereas the CPA offers a fixed correspondence with the CPC nomenclature of the United Nations and comprises four digits of NACE Rev. 1 (statistical classification of economic activities in the European Community), of which it retains the sectoral structure;(7) Whereas it is necessary for contracting authorities and contracting entities to use the CPV to describe the subject matter of public works contracts, instead of the General Public Works Nomenclature recommended hitherto by Commission Recommendation 91/561/EC (7);(8) Whereas standardization of the information will also:- boost transparency in public procurement,- make it possible to set up an information system for public procurement (Simap project),- reduce the risks of error in the translation of notices,- simplify the task of preparing notices, and in particular of describing the subject matter of contracts, for contracting authorities and contracting entities,- simplify the preparation of statistics on public procurement, including those necessary to fulfil the Community's commitments under the Government Procurement Agreement (GPA) concluded within the framework of the WTO;(9) Whereas the information provided in contract notices must be adequate to enable candidates or tenderers to determine whether the proposed contracts are of interest to them;(10) Whereas the Community institutions also require clear information in order to be able to take action to prevent distortions of competition;(11) Whereas the business community has been consulted on the Vocabulary and has shown interest in it;(12) Whereas the Vocabulary will be adapted to circumstances since it will be revised regularly,HEREBY FORMULATES THIS RECOMMENDATION:1. It is recommended that contracting authorities and contracting entities covered by Directives 92/50/EEC, 93/36/EEC, 93/37/EEC and 93/38/EEC use the terms and codes of the CPV, the text of which is published in the Supplement to the Official Journal of the European Communities and which will be updated regularly, to describe the nature and scale of their public contracts in the notices they submit to the Office for Official Publications of the European Communities. As regards notices of public works contracts, it is recommended that the CPV be used instead of the General Public Works Nomenclature set out in the Supplement to the Official Journal of the European Communities No S 217 of 16 November 1991.2. It is recommended that suppliers of goods, works and services, and their agents, use the CPV to describe contracts of interest to them among the notices published in the Supplement to the Official Journal of the European Communities and via the Tenders Electronic Daily (TED) database.3. It is recommended that Member States take all necessary measures to publicize the CPV and to encourage and facilitate its use by contracting authorities, contracting entities and suppliers.4. It is recommended that all users, where they find that the CPV does not describe the nature and scale of public contracts with the necessary clarity and precision, inform the Commission thereof and, where possible, propose amendments or additions, using the form annexed to the CPV.5. This Recommendation replaces Recommendation 91/561/EEC.Done at Brussels, 30 July 1996.For the CommissionMario MONTIMember of the Commission(1) OJ No L 209, 24. 7. 1992, p. 1.(2) OJ No L 199, 9. 8. 1993, p. 1.(3) OJ No L 199, 9. 8. 1993, p. 54.(4) OJ No L 199, 9. 8. 1993, p. 84.(5) Common product classification (CPC) of the United Nations in Directives 92/50/EEC and 93/38/EEC.Classification of products by activity (CPA) in Directive 93/36/EEC. Statistical classification of economic activities in the European Community (NACE) in Directives 93/37/EEC and 93/38/EEC.(6) OJ No L 342, 31. 12. 1993, p. 1.(7) OJ No L 305, 6. 11. 1991, p. 19.