title: Recommendation of the European Parliament and of the Council of  16 November 2005  on film heritage and the competitiveness of related industrial activities

text:
               9.12.2005

               EN

               Official Journal of the European Union

               L 323/57

      RECOMMENDATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

   of 16 November 2005
   on film heritage and the competitiveness of related industrial activities
   (2005/865/CE)
   THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community, and in particular Article 157 thereof,
   Having regard to the proposal from the Commission (1),
   Having regard to the Opinion of the European Economic and Social Committee (2), After consulting the Committee of the Regions,
   After consulting the Committee of the Regions,
   Acting in accordance with the procedure laid down in Article 251 of the Treaty (3),
   Whereas:

               (1)

               Article 151(4) of the Treaty stipulates that the Community is to take cultural aspects into account in its action under other provisions of the Treaty, in particular in order to respect and to promote the diversity of its cultures.

               (2)

               Cinematography is an art form contained on a fragile medium, which therefore requires positive action from the public authorities to ensure its preservation. Cinematographic works are an essential component of our cultural heritage and therefore merit full protection.

               (3)

               In addition to their cultural value, cinematographic works are a source of historical information about European society. They are a comprehensive witness to the history of the richness of Europe's cultural identities and the diversity of its people. Cinematographic images are a crucial element for learning about the past and for civic reflection upon our civilisation.

               (4)

               This Recommendation aims to foster better exploitation of the industrial and cultural potential of European film heritage by encouraging policies of innovation, research and technological development in the field of conservation and restoration of cinematographic works. The actions recommended below aim to ensure that the conditions necessary for the competitiveness of the Community's film industry exist and accelerate the development of its competitiveness.

               (5)

               Film heritage is an important component of the film industry and encouraging its conservation, restoration and exploitation can contribute to improving the competitiveness of that industry.

               (6)

               The development of the European film industry is of vital importance for Europe in view of its significant potential in the fields of access to culture, economic development and job creation. This refers not only to the production and showing of films, but also to the collection, cataloguing, preservation and restoration of cinematographic works. The conditions for the competitiveness of these industrial activities related to film heritage need to be improved, especially as regards better use of technological developments such as digitisation.

               (7)

               Full achievement of this potential requires the existence of a successful and innovative film industry in the Community. This can be facilitated by improving the conditions of conservation, restoration and exploitation of film heritage and by removing obstacles to the development and full competitiveness of the industry, in particular by the collection, cataloguing, preservation and restoration of the film heritage and by making it accessible for educational, cultural, research or other non-commercial uses of a similar nature, in all cases in compliance with copyright and related rights.

               (8)

               The general competitiveness of the film industry will improve through the development of an environment that favours cooperation between designated bodies, which could be European, national or regional archives, film institutes or similar institutions, on matters concerning the conservation and protection of film heritage.

               (9)

               Council Resolution of 26 June 2000 on the conservation and enhancement of European cinema heritage (4) called on Member States to cooperate in the restoration and conservation of cinema heritage, including through recourse to digital technologies, to exchange good practice in this sector, to encourage progressive networking of European archival data and to consider the possible use of these collections for educational purposes.

               (10)

               The European Convention for the Protection of the Audiovisual Heritage provides that each Party has to introduce, by legislative or other appropriate means, the obligation to deposit moving-image material forming part of its audiovisual heritage and having been produced or co-produced in the territory of the Party concerned.

               (11)

               The Commission Communication of 26 September 2001 on certain legal aspects relating to cinematographic and other audiovisual works (5) examined the legal deposit of audiovisual works at national or regional level as one of the possible ways of conserving and safeguarding the European audiovisual heritage and launched a stocktaking exercise of the situation regarding the deposit of cinematographic works in the Member States.

               (12)

               At the Council (Cultural/Audiovisual Affairs) of 5 November 2001, the President of the Council noted that the content of the Commission Communication had been favourably received by the Council.

               (13)

               In its Resolution of 2 July 2002 (6) on the Commission Communication, the European Parliament underlined the importance of safeguarding the cinematographic heritage and supported the approach of the European Convention for the Protection of the Audiovisual Heritage, which is an important reference in times of intensive technological changes. The gradual switchover to digital technologies will allow for greater competitiveness of the European film industry and contribute in the longer term to a reduction in costs in cataloguing, depositing, conserving and restoring audiovisual works. At the same time, it will create new opportunities for innovation in the field of protection of film heritage.

               (14)

               Council Resolution of 24 November 2003 on the deposit of cinematographic works in the European Union (7) invited Member States to put in place an efficient system of deposit and preservation of the cinematographic works forming part of their audiovisual heritage in their national archives, film institutes or similar institutions, if such systems do not yet exist.

               (15)

               All Member States already have systems in place for collecting and preserving cinematographic works forming part of their audiovisual heritage. Four-fifths of these systems are based on a legal or contractual obligation to deposit all films, or at least those films that have received public funding.

               (16)

               ‘Moving-image material ’ means any set of moving images recorded by whatever means and on whatever medium, whether or not accompanied by sound, capable of conveying an impression of movement.

               (17)

               ‘Cinematographic work’ means moving-image material of any length, in particular cinematographic works of fiction, cartoons and documentaries, which is intended to be shown in cinemas.

               (18)

               ‘Cinematographic works forming part of their audiovisual heritage’ means film productions including co-productions with other Member States and/or third countries, qualified as such by Member States or bodies designated by them, on the basis of objective, transparent and non-discriminatory criteria. The audiovisual heritages of the Member States taken together constitute the European audiovisual heritage.

               (19)

               In order to ensure that the European film heritage is passed down to future generations, it has to be systematically collected, catalogued, preserved and restored in all cases in compliance with copyright and related rights.

               (20)

               European film heritage should be made more accessible for educational, cultural, research or other non-commercial uses of a similar nature, in all cases in compliance with copyright and related rights.

               (21)

               Transferring the possession of cinematographic works to archiving bodies does not imply transferring copyright and related rights to them.

               (22)

               Article 5(2)(c) of Directive 2001/29/EC of the European Parliament and of the Council of 22 May 2001 on the harmonisation of certain aspects of copyright and related rights in the information society (8) stipulates that Member States may provide for an exception or limitation in respect of specific acts of reproduction made by publicly accessible libraries or by archives which are not for direct or indirect economic or commercial advantage,

         TAKE NOTE OF THE COMMISSION'S INTENTION:

               1.

               to consider making it compulsory for the beneficiaries of EU funding to deposit a copy of European films that have obtained EU funding in at least one national archive;

               2.

               to support cooperation between designated bodies;

               3.

               to consider the funding of research projects in the fields of long-term preservation and restoration of films;

               4.

               to promote European standardisation on film cataloguing, with the purpose of improving the interoperability of databases, including by co-financing standardisation projects and by enhancing the exchange of best practices, while respecting linguistic diversity;

               5.

               to facilitate the negotiation of a standard contract at European level between designated bodies and rights-holders stipulating the conditions under which designated bodies may make deposited cinematographic works accessible to the public;

               6.

               to monitor and assess the extent to which the measures set out in this Recommendation are working effectively, and to consider the need for further action.

         HEREBY RECOMMEND THAT MEMBER STATES improve conditions of conservation, restoration and exploitation of film heritage and remove obstacles to the development and full competitiveness of the European film industry by:

               1.

               fostering an enhanced exploitation of the industrial and cultural potential of the European film heritage through systematic conservation and restoration measures by encouraging policies of innovation, research and technological development in the field of conservation and restoration of cinematographic works;

               2.

               adopting, by 16 November 200716 November 2007, legislative, administrative or other appropriate measures to ensure that cinematographic works forming part of their audiovisual heritage are systematically collected, catalogued, preserved, restored and made accessible for educational, cultural, research or other non-commercial uses of a similar nature, in all cases in compliance with copyright and related rights;

               3.

               designating the appropriate bodies to carry out the tasks of public interest described in point 2 with independence and professionalism, ensuring that they are provided with the best available financial and technical resources;

               4.

               encouraging the designated bodies to specify, in agreement or by contract with rights-holders, the conditions under which deposited cinematographic works may be made available to the public;

               5.

               considering, notably with a view to promoting film heritage, establishing or supporting national film academies or similar bodies;

               6.

               adopting appropriate measures to increase the use of digital and new technologies in the collection, cataloguing, preservation and restoration of cinematographic works;

         Collection

               7.

               undertaking the systematic collection of cinematographic works forming part of their audiovisual heritage through a mandatory legal or contractual deposit of at least one high quality copy of such cinematographic works with designated bodies. When setting the conditions for the deposit, Member States should ensure that:

                           (a)

                           during a transitional period they cover those productions or co-productions that have received public funding at national or regional level; after this transitional period has elapsed, they should cover, as far as practicable, all productions, including those which did not receive any public funding,

                           (b)

                           the deposited cinematographic works are of good technical quality, so as to facilitate preservation and reproducibility, with accompanying metadata in standardised form, as appropriate,

                           (c)

                           deposit takes place when the film is made available to the public, and in any case not more than two years later;

         Cataloguing and creation of databases

               8.

               adopting appropriate measures (which might eventually lead to an archiving code of film production) to promote the cataloguing and indexing of deposited cinematographic works and to encourage the creation of databases containing information about the films, making use of European and international standards;

               9.

               promoting European standardisation and interoperability of databases of filmography and their availability to the public, for instance, through the Internet, especially through the active involvement of designated bodies;

               10.

               exploring the possibility of establishing a network of databases encompassing the European audiovisual heritage together with the relevant organisations, in particular the Council of Europe (Eurimages and the European Audiovisual Observatory);

               11.

               inviting archiving bodies to give value to stocks by organising them in collections at EU level, for instance, by theme, author and period;

         Preservation

               12.

               adopting legislation or using other methods in accordance with national practices in order to ensure preservation of deposited cinematographic works. Preservation measures should include, in particular:

                           (a)

                           the reproduction of films on new storage mediums,

                           (b)

                           the preservation of equipment for showing cinematographic works on different mediums;

         Restoration

               13.

               introducing all appropriate measures in order to permit, within their legislation, the reproduction of deposited cinematographic works for the purpose of restoration while allowing rights-holders to benefit from the improved industrial potential of their works resulting from that restoration on the basis of an agreement between all interested parties;

               14.

               encouraging projects for the restoration of old films or films with high cultural or historical value;

         Making deposited cinematographic works accessible for educational, cultural, research or other non-commercial uses of a similar nature

               15.

               adopting the necessary legislative or administrative measures to allow designated bodies to make deposited cinematographic works accessible for educational, cultural, research or other non-commercial uses of a similar nature, in all cases in compliance with copyright and related rights;

               16.

               taking appropriate measures to ensure access for people with disabilities to deposited cinematographic works, in all cases in compliance with copyright and related rights;

         Professional training and media literacy

               17.

               promoting professional training in all fields related to film heritage to foster an enhanced exploitation of the industrial potential of film heritage;

               18.

               promoting the use of film heritage as a way of strengthening the European dimension in education and promoting cultural diversity;

               19.

               fostering and promoting visual education, film studies and media literacy in education at all levels, professional training programmes and European programmes;

               20.

               promoting close cooperation between producers, distributors, broadcasters and film institutes for educational purposes while respecting copyright and related rights;

         Deposit

               21.

               considering the putting in place of a system of voluntary or mandatory deposit of:

                           (a)

                           ancillary and publicity material related to cinematographic works forming part of the national audiovisual heritage,

                           (b)

                           cinematographic works forming part of national audiovisual heritages from other countries,

                           (c)

                           moving-image material other than cinematographic works,

                           (d)

                           cinematographic works of the past;

         Cooperation between designated bodies

               22.

               encouraging, and supporting designated bodies for the purpose of exchanging information and coordinating their activities at national and European levels in order for example, to:

                           (a)

                           ensure the coherence of collection and conservation methods and the interoperability of databases,

                           (b)

                           release, for example on DVDs, archival material with subtitles in as many European Union languages as possible, in all cases in compliance with copyright and related rights,

                           (c)

                           compile a European filmography,

                           (d)

                           develop a common standard for electronic information exchange,

                           (e)

                           produce common research and educational projects, while promoting the development of European networks of cinema schools and museums;

         Follow-up to this Recommendation

               23.

               informing the Commission every two years of action taken in response to this Recommendation.

      Done at Strasbourg, 16 November 2005.

            For the European Parliament

            The President

         J. BORRELL FONTELLES

            For the Council

         The President
         Bach of LUTTERWORTH

      (1)  OJ C 123, 30.4.2004, p. 4.

      (2)  OJ C 74, 23.3.2005, p. 18.

      (3)  Opinion of the European Parliament of 10 May 2005 (not yet published in the Official Journal) and Council Decision of 24 October 2005.

      (4)  OJ C 193, 11.7.2000, p. 1.

      (5)  OJ C 43, 16.2.2002, p. 6.

      (6)  OJ C 271 E, 12.11.2003, p. 176.

      (7)  OJ C 295, 5.12.2003, p. 5.

      (8)  OJ L 167, 22.6.2001, p. 10.


Avis juridique important

|

32000H0263

2000/263/EC: Commission Recommendation of 20 March 2000 amending Recommendation 98/511/EC on interconnection in a liberalised telecommunications market (Part 1 - Interconnection pricing) (notified under document number C(2000) 651) (Text with EEA relevance)

Official Journal L 083 , 04/04/2000 P. 0030 - 0034

Commission Recommendationof 20 March 2000amending Recommendation 98/511/EC on interconnection in a liberalised telecommunications market (Part 1 - Interconnection pricing)(notified under document number C(2000) 651)(Text with EEA relevance)(2000/263/EC)THE COMMISSION OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European Community,Having regard to Directive 97/33/EC of the European Parliament and of the Council of 30 June 1997 on interconnection in telecommunications with regard to ensuring universal service and interoperability through application of the principles of Open Network Provision (ONP)(1), as amended by Directive 98/61/EC(2), and in particular Article 7(5) thereof,After consultation of the advisory committee set up by Article 9(1) of Council Directive 90/387/EEC of 28 June 1990 on the establishment of the internal market for telecommunications services through the implementation of open network provision(3), as amended by Directive 97/51/EC of the European Parliament and of the Council(4),(1) Whereas point 9 of Commission Recommendation 98/511/EC(5) that amends Recommendation 98/195/EC(6) on interconnection in a liberalised telecommunications market (Part 1 - Interconnection pricing), states that the Recommendation, and in particular the "best current practice charges" in point 4 and the data in Annex II, will be reviewed by the Commission by 31 July 1999 at the latest and updated where necessary.(2) Whereas, as noted in the fifth report on the implementation of the telecommunications regulatory package(7), suitable cost accounting systems have not yet been implemented in a large number of Member States and therefore it is considered appropriate to update the "best current practice" prices ranges in this Recommendation for year 2000.(3) Whereas in implementing the requirement for interconnection charges to be cost oriented, the "best current practice" charges provide guidance to national regulatory authorities for assessing the interconnection charges for call termination proposed by operators notified as having significant market power, in the absence of adequate cost accounting information.(4) Whereas it is appropriate that the next review of this Recommendation at the end of 2000 should assess in particular the need to continue with publication of "best current practice" charges and the methodology used,HEREBY RECOMMENDS:Article 1Recommendation 98/511/EC is amended as follows:1. Point 4a is replaced by the following: "4a. Based on the data given in Annex II of this Recommendation, the following 'best current practice' charges are recommended maximum interconnection charges for the period starting 1 January 2000:'Best current practice' interconnection charges>PIC FILE= "L_2000083EN.003101.EPS">"2. The wording of point 9 is replaced by the following sentence: "This Recommendation, in particular the need to continue with publication of 'best current practice' charges and the methodology used, will be reviewed at the end of 2000".3. Figure 1a in section 1 of Annex II is replaced by the following: "Figure 1a:Interconnection rates for call termination (1 November 1999)>PIC FILE= "L_2000083EN.003102.EPS">"4. The table in section 3 of Annex II is replaced by the Table in the attached Annex.Article 2This Recommendation is addressed to the Member States.Done at Brussels, 20 March 2000.For the CommissionErkki LiikanenMember of the Commission(1) OJ L 199, 26.7.1997, p. 32.(2) OJ L 268, 3.10.1998, p. 37.(3) OJ L 192, 24.7.1990, p. 1.(4) OJ L 295, 29.10.1997, p. 23.(5) OJ L 228, 15.8.1998, p. 30.(6) OJ L 73, 12.3.1998, p. 42.(7) COM (1999) 537.ANNEXTableInterconnection cost data for Member States (1 November 1999)>TABLE>Source:Commission and national regulatory authorities.Notes


Important legal notice

|

52007PC0215

Recommendation for a Council Decision concerning the accession of Bulgaria and Romania to the Convention of 26 July 1995, based on Article K.3 of the Treaty on European Union, on the establishment of a European Police Office (Europol Convention)  /* COM/2007/0215 final - CNS 2007/0076 */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 25.4.2007COM(2007) 215 final2007/0076 (CNS)Recommendation for aCOUNCIL DECISIONconcerning the accession of Bulgaria and Romania to the Convention of 26 July 1995, based on Article K.3 of the Treaty on European Union, on the establishment of a European Police Office (Europol Convention)(presented by the Commission)EXPLANATORY MEMORANDUMThe 2005 Act of accession of Bulgaria and Romania[1] has introduced a simplified system for the accession of Bulgaria and Romania to the conventions (and protocols) concluded by the Member States on the basis of Art. 34 TEU (previously Art. K.3 TEU) or Art. 293 EC. It is indeed not anymore necessary, as in the past, to negotiate and conclude specific accession protocols to these conventions (which would have implied ratification by 27 States): Article 3(3) of the Act provides simply that Bulgaria and Romania accede to these conventions and protocols by virtue of the Act of Accession.Article 3(3) and 3(4) of the Act of Accession provide that, to that effect, the Council shall adopt a decision in order to determine the date on which these conventions shall enter into force for Bulgaria and Romania and to make all the necessary adjustments to these conventions required by reason of the accession of the two new Member States (which would include, in any event, the adoption of the conventions in the Bulgarian and Romanian languages, so that these versions can be "equally authentic"). The Council shall act on a recommendation of the Commission, after consulting the European Parliament.Annex I to the Act of Accession gives the list of the seven conventions and protocols concerned in the Justice and Home Affairs area.The list includes the Convention of 26 July 1995, based on Article K.3 of the Treaty on European Union, on the establishment of a European Police Office (Europol Convention), the Protocol of 24 July 1996, drawn up on the basis of Article K.3 of the Treaty on European Union, on the interpretation, by way of preliminary rulings, by the Court of Justice of the European Communities of the Convention on the establishment of a European Police Office, the Protocol of 19 June 1997, drawn up on the basis of Article K.3 of the Treaty on European Union and Article 41 (3) of the Europol Convention, on the privileges and immunities of Europol, the members of its organs, the deputy directors and employees of Europol, the Protocol of 30 November 2000, drawn up on the basis of Article 43(1) of the Convention on the establishment of a European Police Office (Europol Convention) amending Article 2 and the Annex to that Convention, the Protocol of 28 November 2002 amending the Convention on the establishment of a European Police Office (Europol Convention) and the Protocol on the privileges and immunities of Europol, the members of its organs, the deputy directors and the employees of Europol, and the Protocol of 27 November 2003, drawn up on the basis of Article 43(1) of the Convention on the Establishment of a European Police Office (Europol Convention), amending that Convention.This Commission Recommendation for a Council Decision is intended to make the adjustments required by reason of the accession of Bulgaria and Romania to the aforementioned Convention and Protocols, in accordance with Article 3(4) of the Act of Accession.2007/0076 (CNS)Recommendation for aCOUNCIL DECISIONconcerning the accession of Bulgaria and Romania to the Convention of 26 July 1995, based on Article K.3 of the Treaty on European Union, on the establishment of a European Police Office (Europol Convention)THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty on European Union,Having regard to the Treaty of Accession of Bulgaria and Romania,Having regard to the Act of Accession of Bulgaria and Romania (hereinafter referred to as the "Act of Accession"), and in particular Article 3 (4) thereof,Having regard to the recommendation from the Commission[2],Having regard to the opinion of the European Parliament[3],Whereas:1.  The Convention on the establishment of a European Police Office (Europol Convention) (hereinafter referred to as the “Europol Convention”) was signed at Brussels on 26 July 1995 and entered into force on 1 October 1998.2.  The Europol Convention was complemented by two Protocols signed on 24 July 1996 and 19 June 1997 which entered into force respectively on 29 December 1998 and 1 July 1999[4].3.  The Europol Convention was amended by three other Protocols signed on 30 November 2000[5], 28 November 2002[6] and 27 November 2003[7], which shall enter into force 90 days after the notification by the Member State which, being a member of the European Union on the date of adoption by the Council of the Act drawing up this Protocol, is the last to fulfil that formality.4.  The Europol Convention entered into force in the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia following their accession to the European Union.5.  Article 3 (3) of the Act of Accession provides that Bulgaria and Romania accede to the conventions and protocols concluded between the Member States, listed in Annex I to the Act of Accession, which comprises, inter alia , the Europol Convention and the Protocols of 24 July 1996, 19 June 1997, 30 November 2000, 28 November 2002 and 27 November 2003. They are to enter into force in relation to Bulgaria and Romania on the date determined by the Council.6.  In accordance with Article 3 (4) of the Act of Accession the Council is to make all adjustments required by reason of accession to those conventions and protocols,HAS DECIDED AS FOLLOWS:Article1The Europol Convention and the Protocols of 24 July 1996 and of 19 June 1997, shall enter into force for Bulgaria and Romania on the first day of the first month following the date of adoption of this decision.Article 2The Protocols of 30 November 2000, 28 November 2002 and 27 November 2003 shall enter into force for Bulgaria and Romania on the date of entry into force of these Protocols.Article 3The texts of the Europol Convention and the Protocols of 24 July 1996, 19 June 1997, 30 November 2000, 28 November 2002 and 27 November 2003, drawn up in the Bulgarian and Romanian languages and annexed to this Decision, shall be authentic under the same conditions as the other texts of the Europol Convention and the Protocols of 24 July 1996, 19 June 1997, 30 November 2000, 28 November 2002 and 27 November 2003.Article 4This Decision shall take effect on the day following that of its publication in the Official Journal of the European Union .Done at Brussels,For the CouncilThe PresidentANNEX Text of the Europol Convention and of the Protocols of 24 July 1996, 19 June 1997, 30 November 2000, 28 November 2002 and 27 November 2003 in the Bulgarian and Romanian languages..[1] OJ 2005, L 157, p. 203.[2] OJ C […], […], p. […].[3] OJ C […], […], p. […].[4] The Protocol of 24 July 1996 on the basis of Article K.3 of the Treaty on the European Union on the interpretation, by way of preliminary rulings, by the Court of Justice of the European Communities of the Convention on the establishment of a European police office (Europol) (OJ C 299, 9.10.1996, p. 2); the Protocol of 19 June 1997 drawn up on the basis of Article K.3 of the Treaty on the European Union and Article 41 (3) of the Europol Convention, on the privileges and immunities of Europol, the members of its organs, the Deputy Directors and employees of Europol (OJ C 221, 19.7.1997, p. 2).[5] OJ C 358, 13.12.2000, p. 2.[6] OJ C 312, 16.12.2002, p. 2.[7] OJ C 2, 6.1.2004, p. 3.


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

text:
               18.8.2015

               EN

               Official Journal of the European Union

               C 272/61

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

               (1)

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

               (2)

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

               (3)

               On 8 July 2014, the Council adopted a Recommendation (4) on Italy's National Reform Programme for 2014 and delivered its opinion on Italy's updated Stability Programme for 2014. On 28 November 2014, in line with Regulation (EU) No 473/2013 of the European Parliament and of the Council (5), the Commission presented its opinion on Italy's draft budgetary plan for 2015.

               (4)

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

               (5)

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

               (6)

               On 26 February 2015, the Commission published its 2015 country report for Italy. This assessed Italy's progress in addressing the country-specific recommendations adopted on 8 July 2014. The country report also includes the results of the in-depth review under Article 5 of Regulation (EU) No 1176/2011. The Commission's analysis leads it to conclude that Italy is experiencing excessive macroeconomic imbalances which require decisive policy action and specific monitoring. In particular, it is essential to tackle the root cause of persistently low labour productivity and weak competitiveness and to put the national debt on a downward trajectory. The need for action to reduce the risk of adverse effects on the Italian economy and, given its size, on the economic and monetary union more widely, is particularly great.

               (7)

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

               (8)

               Italy is currently in the preventive arm of the Stability and Growth Pact and subject to the transitional debt rule over 2013-15. On 27 February 2015, the Commission issued a Report under Article 126(3) TFEU, as Italy was not expected to make sufficient progress towards compliance with the debt rule in 2014-15. The analysis concluded that the debt criterion should be considered as complied with at that time.

               (9)

               On 30 April 2015, after the cut-off date of the Spring Economic Forecast, the Italian Constitutional Court ruled as unconstitutional a temporary non-indexation of higher pensions in 2012-13. On 18 May 2015 the Government adopted a decree law to address the ruling and confirmed the fiscal targets of the Stability Programme. In view of this information the conclusions from the February's Report under Article 126(3) TFEU can be considered as still broadly valid at this stage. The exact budgetary impact of this ruling will depend on the Government's operationalisation thereof, which has still to be clarified. In view of the new information, the issuance of a Report under Article 126(3) TFEU may be deemed warranted at a later stage. In the absence of this new element and pending its further clarification, the conclusions from the February Report can be considered as still broadly valid at this stage.

               (10)

               In its 2015 Stability Programme, Italy has requested a temporary deviation of 0,4 percentage points of GDP from the required adjustment path towards the medium-term objective in 2016 to take account of major structural reforms with a positive impact on the long-term sustainability of public finances. The details underpinning these reforms have been set out in Italy's 2015 National Reform Programme. The areas of reform put forward in the programme as having an impact on public finance sustainability include: (i) public administration and simplification; (ii) product and service markets; (iii) the labour market; (iv) civil justice; (v) education; (vi) a tax shift; and (vii) spending review as financing measure. The impact of the reforms on real GDP is estimated by the authorities at 1,8 percentage points by 2020, which seems to be plausible. If fully and timely implemented and on time, these reforms will have a positive impact on the sustainability of public finances. Conditional on the Government's taking the necessary measures in 2015 to appropriately compensate for the permanent impact of the abovementioned ruling of the Constitutional Court so as to ensure that: (i) Italy remains under the preventive arm of the Stability and Growth Pact; (ii) an appropriate safety margin with respect to the Treaty reference value is preserved; and (iii) the medium-term objective is reached within the four-year horizon of the Stability Programme. Italy can currently be assessed as qualifying for the requested temporary deviation in 2016, provided that it adequately implements the agreed reforms, which will be monitored under the European Semester.

               (11)

               The 2015 Stability Programme plans gradual improvement of the headline deficit to 2,6 % of GDP in 2015 and further to 1,8 % of GDP in 2016. In its 2015 Stability Programme, the government plans to reach the medium-term objective — a balanced budgetary position in structural terms — by 2017. However, the recalculated structural balance (6) reaches the medium-term objective in 2018. The achievement of the medium-term objective by 2017 seems appropriate, taking into account the application for the structural reform clause as well as the commitments enshrined in the 2015 Stability Programme.

               (12)

               The government debt-to-GDP ratio is projected to peak in 2015 at 132,5 % and to gradually decline to 120,0 % in 2019. The macroeconomic scenario underpinning the budgetary projections is plausible. The Government has yet to specify the additional expenditure cuts that will allow it to avoid implementing the legislated VAT increase in 2016.

               (13)

               Italy should improve its structural balance by 0,25 % of GDP in 2015. Based on the Commission's 2015 spring forecast, the projected structural adjustment towards the medium-term objective of 0,3 % of GDP in 2015 is in line with Italy's obligations under the preventive arm of the Stability and Growth Pact. In 2016, Italy should improve its structural balance by at least 0,1 % of GDP, taking into account the allowed deviation based on the structural reform clause. However, under the no-policy-change assumption the Commission's forecast shows a deterioration of 0,2 % of GDP as a result of which there is a risk of some deviation. Therefore, further measures will be needed. Based on its assessment of the Stability Programme and taking into account the Commission's 2015 spring forecast, the Council is of the opinion that there is a risk that Italy will not comply with the provisions of the Stability and Growth Pact.

               (14)

               Despite its expected contribution to the debt-reduction effort, which is a key challenge for Italy, the implementation of the ambitious privatisation programme presented by the Italian authorities has incurred some delays in 2014; as a result, privatisation proceeds in 2014 amounted to 0,2 % of GDP, short of the target of 0,7 % per year.

               (15)

               Over the last year, Italy has taken significant steps to alleviate the tax burden on labour, which nevertheless remains high. The number and scope of tax expenditures, in particular reduced VAT rates, are still excessively high. On property taxation, only slow progress has been made on cadastral reform, under which it is particularly necessary to revise outdated cadastral values. In addition, the revision of environmental taxation and the removal of environmentally harmful subsidies have remained unaddressed. Italy has set up a Committee on environmental taxation. These various dimensions are covered by the enabling law for tax reform, whose implementation has, however, been delayed by a lack of legislative decrees. Despite some action in this area, the efficiency of the tax system in Italy is also undermined by persistently low and costly levels of tax compliance and high tax evasion (estimated by the Government at EUR 91 billion annually or 5,6 % of GDP). The Government has put forward measures to ensure the accuracy of tax returns that now need to be made fully operational.

               (16)

               Only limited steps have been achieved toward a lasting improvement in the efficiency and quality of public spending in all layers of the government. The budget savings legislated for, including at the regional and local levels, fall short of what was envisaged in the 2014 National Reform Programme. That the spending review is not yet an integral part of the budgetary process weighs on the overall, long-term efficiency of the exercise. Serious weaknesses continue to affect the management of EU funds, in particular in southern regions. A national strategic plan for ports and logistics is being prepared but only partial steps have been taken to upgrade the management of ports and their connections with the hinterland.

               (17)

               Italy's public administration is still characterised by significant inefficiencies which weigh on the business environment and on the country's capacity to implement reform effectively. Efforts to improve the institutional framework and the overall quality of the public administration have been made and are continuing. An ambitious reform of the Constitution, aimed particularly at clarifying the division of responsibilities between the various layers of government, is expected by the end of 2015. A comprehensive reform of the public administration addressing among others staff turnover, mobility and compensation, is pending. Although a number of steps have been taken to foster transparency and empower the national anti-corruption authority, the revision of the statute of limitations — also considered by other international organisations as a pillar in the fight against corruption in Italy — has still not taken place. Important steps have been taken in recent years both to improve the supply of justice, by revising the geography of courts and creating specialised courts, and to reduce the demand for it, by promoting out-of-court dispute settlements. The length of proceedings remains a major problem and the reforms undertaken still need to bear fruit.

               (18)

               Since the end of 2008, the non-performing loan ratio of the Italian banking sector has sharply increased, mainly in relation to banks' corporate exposures. So far the work-out rate of impaired assets has been too low, and their disposal has remained limited. This is partly due to the underdevelopment of Italy's private distressed debt market. Recent legislation has addressed weaknesses in the corporate governance of the largest cooperative banks (banche popolari), while an agreement between the foundations and the Italian authorities was reached in April 2015, aiming, among other things, at reducing the influence of foundations in the governance of banks. A non-binding governance reform is currently being prepared by small cooperative banks (banche di credito cooperative), to be subsequently implemented by law. Further restructuring and consolidation of the Italian banking sector is warranted to improve the effectiveness of financial mediation and support the economic recovery.

               (19)

               A broad-ranging enabling law for reforming the labour market, the ‘Jobs Act’, was adopted in December 2014 and maintains the direction of previous reforms. It provides in particular for changes in employment protection legislation, the unemployment benefit system, the governance and functioning of active and passive labour market policies and the balance between family and working life. The effective implementation of this law will depend crucially on the necessary legislative implementing decrees being adopted. These address the use of wage supplementation schemes, the revision of contractual arrangements, work-life balance and the strengthening of active labour market policies. Second-level bargaining, which could help to better align wages with productivity and encourage the adoption of innovative solutions within firms, still concerns only a minority of companies. The January 2014 agreement laying down the procedures for measuring trade union representativeness in the manufacturing sector could help to promote second-level bargaining but is not yet operational. The labour market participation of women, although growing, remains among the lowest in the Union. In addition, youth unemployment reached almost 43 % in the third quarter of 2014, and the proportion of young people aged between 15 and 24 not in employment, education or training is the highest in the Union. Some of the causes are to be found in the education system, which is still characterised by below-EU average school outcomes, and relatively high early school leaving rates. Only 54,6 % of those aged 15-34 who graduated from the first and second stages of tertiary education within the previous three years were employed, compared to the EU average of 78,6 %. Italy has witnessed one of the highest increases in poverty and social exclusion rates in the Union, with a particular impact on children. Social assistance schemes remain fragmented and ineffective in tackling this challenge with resulting substantive cost inefficiencies.

               (20)

               A range of restrictions on competition still hamper the proper functioning of product and services markets. A law addressing certain barriers in a number of sectors is pending in Parliament. Significant barriers remain in some sectors covered by the law (legal services and pharmacies) as well as in other sectors including local public services, airports and ports, banking, and healthcare. Significant weaknesses remain in public procurement despite wider use of centralised procurement. Local public services, which show clear signs of inefficiency, remain sheltered from competition, and this has adverse effects on public finances as well. Open tendering is used for a small proportion of contract awards, while the vast majority of contracts are done through in-house awards or similar procedures.

               (21)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of Italy's economic policy and published it in the 2015 country report. It has also assessed the Stability Programme and the National Reform Programme and the follow-up given to the recommendations addressed to Italy in previous years. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Italy but also their compliance with EU rules and guidance, given the need to strengthen the overall economic governance of the Union by providing EU-level input into future national decisions. The recommendations under the European Semester are reflected in recommendations (1) to (6) below.

               (22)

               In the light of this assessment, the Council has examined the Stability Programme, and its opinion (7) is reflected in particular in recommendation (1) below.

               (23)

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

               (24)

               In the context of the European Semester, the Commission has also carried out an analysis of the economic policy of the euro area as a whole. On the basis of this analysis, the Council has issued specific recommendations addressed to the Member States whose currency is the euro (8). As a country whose currency is the euro, Italy should also ensure the full and timely implementation of those recommendations,

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

               1.

               Achieve a fiscal adjustment of at least 0,25 % of GDP towards the medium-term budgetary objective in 2015 and of 0,1 % of GDP in 2016 by taking the necessary structural measures in both 2015 and 2016, taking into account the allowed deviation for the implementation of major structural reforms. Ensure that the spending review is an integral part of the budgetary process. Swiftly and thoroughly implement the privatisation programme and use windfall gains to make further progress towards putting the general government debt ratio on an appropriate downward path. Implement the enabling law for tax reform by September 2015, in particular the revision of tax expenditures and cadastral values and the measures to enhance tax compliance.

               2.

               Adopt the planned national strategic plan for ports and logistics, particularly to help promote intermodal transport through better connections. Ensure that the Agency for Territorial Cohesion is made fully operational so that the management of EU funds markedly improves.

               3.

               Adopt and implement the pending laws aimed at improving the institutional framework and modernising the public administration. Revise the statute of limitations by mid-2015. Ensure that the reforms adopted to improve the efficiency of civil justice help reduce the length of proceedings.

               4.

               By end-2015, introduce binding measures to tackle remaining weaknesses in the corporate governance of banks, implement the agreed reform of foundations, and take measures to accelerate the broad-based reduction of non-performing loans.

               5.

               Adopt the legislative decrees on the design and use of wage supplementation schemes, the revision of contractual arrangements, work-life balance and the strengthening of active labour market policies. Promote, in consultation with the social partners and in accordance with national practices, an effective framework for second-level contractual bargaining. As part of efforts to tackle youth unemployment, adopt and implement the planned school reform and expand vocationally-oriented tertiary education.

               6.

               Implement the simplification agenda for 2015-17 to ease the administrative and regulatory burden. Adopt competition-enhancing measures in all the sectors covered by the competition law, and take decisive action to remove remaining barriers. Ensure that local public services contracts not complying with the requirements on in-house awards are rectified by no later than end-2015.

      Done at Brussels, 14 July 2015.

            For the Council

            The President

         P. GRAMEGNA

      (1)  OJ L 209, 2.8.1997, p. 1.

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

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

      (4)  Council Recommendation of 8 July 2014 on the National Reform Programme 2014 of Italy and delivering a Council opinion on the Stability Programme of Italy, 2014 (OJ C 247, 29.7.2014, p. 57).

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

      (6)  The structural balance as recalculated by the Commission based on the information in the Stability Programme, following a commonly agreed methodology.

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

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


title: Recommendation for a Council opinion in accordance with the third paragraph of Article 5 of Council Regulation (EC) No 1466/97 of 7 July 1997 on the updated stability programme of Spain, 2001-2005

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


Avis juridique important

|

31978K0790

Commission Recommendation No 790/78/ECSC of 19 April 1978 imposing a definitive anti-dumping duty on iron or steel coils for re-rolling originating in South Korea

Official Journal L 106 , 20/04/1978 P. 0021 - 0023

****( 1 ) OJ NO L 114 , 5 . 5 . 1977 , P . 6 .  ( 2 ) OJ NO L 352 , 31 . 12 . 1977 , P . 13 .  ( 3 ) OJ NO C 19 , 24 . 1 . 1978 , P . 10 .  ( 4 ) OJ NO L 17 , 21 . 1 . 1978 , P . 27 .  ( 5 ) COMMUNICATION FROM THE COMMISSION OF 31 DECEMBER 1977 CONCERNING THE BASIC PRICES OF CERTAIN STEEL PRODUCTS ( OJ NO L 353 , 31 . 12 . 1977 , P . 1 ).  ( 1 ) OJ NO L 114 , 5 . 5 . 1977 , P . 1 AND OJ NO L 352 , 31 . 12 . 1977 , P . 17 .    COMMISSION RECOMMENDATION NO 790/78/ECSC   OF 19 APRIL 1978   IMPOSING A DEFINITIVE ANTI-DUMPING DUTY ON IRON OR STEEL COILS FOR RE-ROLLING ORIGINATING IN SOUTH KOREA   THE COMMISSION OF THE EUROPEAN   COMMUNITIES ,   HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN COAL AND STEEL COMMUNITY , AND IN PARTICULAR ARTICLES 74 AND 86 THEREOF ,   HAVING REGARD TO COMMISSION RECOMMENDATION 77/329/ECSC OF 15 APRIL 1977 ON PROTECTION AGAINST DUMPING OR THE GRANTING OF BOUNTIES OR SUBSIDIES BY COUNTRIES WHICH ARE NOT MEMBERS OF THE EUROPEAN COAL AND STEEL COMMUNITY ( 1 ), AS AMENDED BY RECOMMENDATION NO 3004/77/ECSC ( 2 ), AND IN PARTICULAR ARTICLES 17 AND 19 THEREOF ,   HAVING HEARD THE OPINIONS EXPRESSED WITHIN THE ADVISORY COMMITTEE PROVIDED FOR BY RECOMMENDATION 77/329/ECSC ,   WHEREAS THE COMMISSION HAS RECEIVED A COMPLAINT , SUBMITTED IN THE NAME OF THE RELEVANT COMMUNITY INDUSTRY , SETTING OUT EVIDENCE AS TO THE EXISTENCE OF DUMPING OF COILS , ORIGINATING IN SOUTH KOREA AND CERTAIN OTHER COUNTRIES , AND OF MATERIAL INJURY RESULTING THEREFROM ;   WHEREAS , SINCE THE INFORMATION RECEIVED INDICATED THAT THE COMPLAINT WAS ADMISSIBLE AND THAT DEFENSIVE MEASURES MIGHT BE NECESSARY , THE COMMISSION OFFICIALLY NOTIFIED THE REPRESENTATIVES OF THE EXPORTING COUNTRY AND THE IMPORTERS AND EXPORTERS KNOWN TO BE CONCERNED , PUBLISHED IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES A NOTICE OF THE INITIATION OF AN INQUIRY CONCERNING THE IMPORTS IN QUESTION  ( 3 ) AND COMMENCED AN EXAMINATION OF THE MATTER IN COOPERATION WITH THE MEMBER STATES ;   WHEREAS , SINCE PRELIMINARY EXAMINATION OF THE MATTER SHOWED THAT THERE WAS DUMPING AND SUFFICIENT EVIDENCE OF INJURY AND THE INTERESTS OF THE COMMUNITY CALLED FOR IMMEDIATE INTERVENTION , THE COMMISSION , BY RECOMMENDATION NO 112/78/ECSC ( 4 ), IMPOSED A PROVISIONAL ANTI-DUMPING DUTY ON THE IMPORTS IN QUESTION ;   WHEREAS , IN THE COURSE OF THE EXAMINATION OF THE MATTER , COMPLETED AFTER THE IMPOSITION OF THE PROVISIONAL ANTI-DUMPING DUTY , THE COMMISSION GAVE INTERESTED PARTIES THE OPPORTUNITY TO MAKE KNOWN THEIR VIEWS ;   WHEREAS , HOWEVER , SINCE THE KOREAN EXPORTER DID NOT AVAIL HIMSELF OF THE OPPORTUNITY TO MAKE KNOWN HIS VIEWS OR PRESENT HIS ARGUMENTS , THE COMMISSION HAD TO BASE ITS FINDINGS ON THE FACTS AVAILABLE ;   WHEREAS , THEREFORE , THE COMMISSION HAS DECIDED TO BASE ITS DUMPING CALCULATIONS ON THE COST OF PRODUCTION IN A COUNTRY CONSIDERED TO BE ONE OF THE MOST EFFICIENT PRODUCERS OF THE PRODUCT IN QUESTION , AS ESTABLISHED BY MEANS OF THE LATEST PUBLICLY AVAILABLE DATA ;   WHEREAS SUCH COST OF PRODUCTION HAS BEEN CALCULATED TAKING INTO CONSIDERATION INTER ALIA THE FOLLOWING ELEMENTS : RAW MATERIALS ( COVERING IRON ORE , SINTER , PELLETS , SCRAP , FERRO ALLOYS AND OTHER IRON BEARING MATERIALS AND FLUXES ), ENERGY COSTS ( COKE , FUEL OIL , ELECTRICITY ), LABOUR COSTS INCLUDING SOCIAL COSTS , OTHER OPERATING COSTS ( INCLUDING MAINTENANCE COSTS AND TRANSPORT COSTS ) AND CAPITAL COSTS , TO WHICH WAS ADDED A REASONABLE AMOUNT FOR ADMINISTRATION , SELLING AND ANY OTHER COSTS AND FOR PROFITS ;   WHEREAS THE AFOREMENTIONED CALCULATION HAS CONFIRMED THE REASONABLENESS OF THE BASIC PRICES AS PUBLISHED BY THE COMMISSION ( 5 );   WHEREAS THE PRICES OF IMPORTS INTO THE COMMUNITY OF THE PRODUCTS WHICH ARE THE SUBJECT OF THE COMPLAINT HAVE BEEN COMPARED WITH THESE BASIC PRICES ;   WHEREAS THIS PRICE COMPARISON WAS MADE ON A FREE COMMUNITY FRONTIER DUTY-PAID BASIS ;   WHEREAS THIS EXAMINATION OF THE MATTER HAS SHOWN THAT THE PRODUCTS IN QUESTION WERE OFFERED FOR IMPORT WITHIN THE COMMUNITY AT PRICES LOWER THAN THE BASIC PRICES AND THAT DUMPING HAS TAKEN PLACE , THE MARGIN OF WHICH IS CONSTITUTED BY THIS UNDERCUTTING ;   WHEREAS , WITH REGARD TO INJURY TO THE INDUSTRY CONCERNED , THE EVIDENCE AVAILABLE TO THE COMMISSION SHOWS THAT IMPORTS INTO THE COMMUNITY OF THE PRODUCTS INCREASED GLOBALLY FROM 1 170 000 TONNES IN 1974 TO 1 551 000 TONNES IN THE FIRST SIX MONTHS OF 1977 ALONE , IMPORTS ORIGINATING IN SOUTH KOREA HAVING RISEN FROM 16 000 TO 51 000 TONNES IN THE SAME PERIOD , AND THAT , AS A RESULT , THEY HAVE BEEN ABLE TO ACQUIRE A MARKET SHARE IN THE COMMUNITY OF 20 % IN TOTAL AND 14.6 % FOR IMPORTS ORIGINATING IN SOUTH KOREA , TOGETHER WITH THOSE FROM AUSTRALIA , AUSTRIA , BULGARIA , CZECHOSLOVAKIA , FINLAND , JAPAN , SOUTH AFRICA AND SPAIN , WHICH ARE ALSO SUBJECT TO DEFENSIVE MEASURES IN THE COMMUNITY OR COVERED BY STEEL ARRANGEMENTS CONCLUDED WITH THE ECSC ;   WHEREAS , ON THE OTHER HAND , THE COMMUNITY STEEL INDUSTRY IS IN A CRISIS SITUATION CHARACTERIZED BY A REDUCTION OF ABOUT 4 % IN THE PRODUCTION OF THE PRODUCTS CONCERNED BETWEEN 1974 AND 1977 IN THE COMMUNITY , BY A REDUCTION IN THE NUMBER EMPLOYED FROM 780 000 TO 720 000 BETWEEN 1974 AND 1977 AND BY SHORT-TIME WORKING AND THAT , AS A RESULT , THE COMMUNITY STEEL INDUSTRY RECORDED A REDUCTION IN PROFITS OR THE APPEARANCE OF SERIOUS LOSSES IN MOST OF THE FIRMS CONCERNED ;   WHEREAS , IN ORDER TO REMEDY THIS SITUATION , THE COMMISSION HAS INTRODUCED A SYSTEM OF MINIMUM PRICES ( 1 ) FOR SALES WITHIN THE COMMUNITY OF CERTAIN STEEL PRODUCTS PRODUCED BY THE EUROPEAN STEEL INDUSTRY ;   WHEREAS THE IMPORT PRICES INTO THE COMMUNITY OF PRODUCTS ORIGINATING IN SOUTH KOREA ARE CONSIDERABLY LOWER THAN THESE MINIMUM PRICES AND THAT SUCH UNDERCUTTING JEOPARDIZES THE EQUILIBRIUM OF THE ENTIRE PRICING SYSTEM AND CAUSES OR THREATENS TO CAUSE MATERIAL INJURY TO THE COMMUNITY INDUSTRY OR TO A MAJOR PART OF IT ;   WHEREAS THE IMPORT PRICES OF DELIVERIES ORIGINATING IN SOUTH KOREA ARE CONSIDERABLY LOWER THAN THE ALREADY LOW PRICES OF THE COMMUNITY PRODUCERS AND THUS ACCENTUATE THE DEPRESSION OF COMMUNITY PRICES ;   WHEREAS , THEREFORE , THE FACTS AS FINALLY ESTABLISHED SHOW THAT MATERIAL INJURY HAS BEEN CAUSED TO THE COMMUNITY INDUSTRY OR THAT SUCH INJURY WOULD HAVE BEEN CAUSED IF PROVISIONAL ACTION HAD NOT BEEN TAKEN , BY IMPORTS ORIGINATING IN SOUTH KOREA TOGETHER WITH THOSE FROM AUSTRALIA , AUSTRIA , BULGARIA , CZECHOSLOVAKIA , FINLAND , JAPAN , SOUTH AFRICA AND SPAIN WHICH ARE ALSO SUBJECT TO DEFENSIVE MEASURES OR WHICH ORIGINATE IN COUNTRIES WHICH HAVE CONCLUDED STEEL ARRANGEMENTS WITH THE COMMUNITY , NAMELY JAPAN , AUSTRIA , CZECHOSLOVAKIA , FINLAND , SOUTH AFRICA AND SPAIN ;   WHEREAS , IN THE SERIOUS CONDITIONS BEING EXPERIENCED BY THE COMMUNITY STEEL INDUSTRY , THE INTERESTS OF THE COMMUNITY REQUIRE THE IMPOSITION OF A DEFINITIVE ANTI-DUMPING DUTY AND THE DEFINITIVE COLLECTION OF THE AMOUNT SECURED BY WAY OF PROVISIONAL DUTY ;   WHEREAS THE AMOUNT OF SUCH DEFINITIVE DUTY SHOULD CORRESPOND TO THE DIFFERENCE BETWEEN THE BASIC PRICE PUBLISHED BY THE COMMISSION FOR THE PRODUCTS IN QUESTION AND ITS PRICE ON IMPORTATION INTO THE COMMUNITY , DUE CONSIDERATION BEING GIVEN TO ANY DIMINUTION IN VALUE CLAIMED BY THE IMPORTERS AND ESTABLISHED TO THE SATISFACTION OF THE COMPETENT NATIONAL AUTHORITIES ,   HAS ADOPTED THIS RECOMMENDATION :   ARTICLE 1   1 .  A DEFINITIVE ANTI-DUMPING DUTY IS HEREBY IMPOSED ON THE FOLLOWING PRODUCTS ORIGINATING IN SOUTH KOREA :   -  IRON OR STEEL COILS FOR RE-ROLLING ,   -  COMMON CUSTOMS TARIFF HEADING NO 73.08 ,   -  NIMEXE CODE 73.08-01 TO 49 .   2 .  THE AMOUNT OF THIS DUTY SHALL BE EQUAL TO THE AMOUNT BY WHICH THE EFFECTIVE PRICE ( BASIC PRICE PLUS EXTRAS ) ESTABLISHED BY CONTRACT , FREE FRONTIER DUTY-PAID , IS LOWER THAN THE EFFECTIVE PRICE ( BASIC PRICE PLUS EXTRAS ) LAST PUBLISHED BY THE COMMISSION FOR THIS PRODUCT AT THE TIME OF ITS ENTRY FOR COMMUNITY CONSUMPTION .   3 .  THE AMOUNT OF THE DUTY SHALL HOWEVER BE REDUCED TO THE EXTENT THAT THE IMPORTER ESTABLISHES , TO THE SATISFACTION OF THE COMPETENT NATIONAL AUTHORITIES , THAT THE PRICE DIFFERENTIAL REFERRED TO IN PARAGRAPH 2 ABOVE IS DUE TO A DIMINUTION IN VALUE RESULTING FROM THE QUALITY OF THE GOODS BEING INFERIOR TO THE LOWEST QUALITY DESCRIBED IN THE LAST PUBLICATION OF BASIC PRICES BY THE COMMISSION .   4 .  THIS DUTY SHALL BE COLLECTED ON THE SAME BASIS AS CUSTOMS DUTIES .   ARTICLE 2   THE AMOUNTS SECURED BY WAY OF PROVISIONAL DUTY UNDER THE PROVISIONS OF RECOMMENDATION NO 112/78/ECSC , IN RESPECT OF PRODUCTS ORIGINATING IN SOUTH KOREA , SHALL BE DEFINITIVELY COLLECTED TO THE EXTENT THAT THEY DO NOT EXCEED THE AMOUNT OF DUTY FIXED IN THIS RECOMMENDATION .   ARTICLE 3   THIS RECOMMENDATION SHALL BE NOTIFIED TO THE MEMBER STATES .   IT SHALL ENTER INTO FORCE FOR EACH MEMBER STATE ON THE DATE OF ITS PUBLICATION IN THE OFFICIAL JOURNAL OF THE EUROPEAN COMMUNITIES .   DONE AT BRUSSELS , 19 APRIL 1978 .   FOR THE COMMISSION   ETIENNE DAVIGNON   MEMBER OF THE COMMISSION


title: Recommendation of the European Central Bank of 29 November 2007 to the Council of the European Union on the external auditors of the Central Bank of Malta (ECB/2007/17)

text:
               15.12.2007

               EN

               Official Journal of the European Union

               C 304/1

      RECOMMENDATION OF THE EUROPEAN CENTRAL BANK

   of 29 November 2007
   to the Council of the European Union on the external auditors of the Central Bank of Malta
   (ECB/2007/17)
   (2007/C 304/01)
   THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK,
   Having regard to the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the ‘ESCB Statute’), and in particular Article 27.1 thereof,
   Whereas:

               (1)

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

               (2)

               Pursuant to Article 1 of Council Decision 2007/504/EC of 10 July 2007 in accordance with Article 122(2) of the Treaty on the adoption by Malta of the single currency on 1 January 2008 (1), Malta now fulfils the necessary conditions for the adoption of the euro and the derogation in favour of Malta referred to in Article 4 of the 2003 Act of Accession is abrogated with effect from 1 January 2008.

               (3)

               Pursuant to Article 20 of the amended Central Bank of Malta Act, which enters into force on 1 January 2008, the annual financial statements of the Central Bank of Malta are audited in accordance with Article 27 of the ESCB Statute.

               (4)

               The Central Bank of Malta has selected PricewaterhouseCoopers and Ernst & Young as its joint independent external auditors for the financial year 2008,

         HAS ADOPTED THIS RECOMMENDATION:
   It is recommended that PricewaterhouseCoopers and Ernst & Young should be appointed as the joint external auditors of the Central Bank of Malta for the financial year 2008.

      Done at Frankfurt am Main, 29 November 2007.

            The President of the ECB

         Jean-Claude TRICHET

      (1)  OJ L 186, 18.7.2007, p. 32.


				|

		52013PC0709

			Recommendation for a COUNCIL DECISION granting mutual assistance for Romania /* COM/2013/0709 final */

			   	EXPLANATORY MEMORANDUM
1. Introduction
After a joint EU-IMF medium-term financial
assistance programme for Romania from spring 2009 to spring 2011, during which
EUR 5 billion were disbursed on the European side and EUR 12.9 bn by the
IMF, the Council of the European Union adopted on 12 May 2011 a decision on a
follow-up precautionary programme, making available EU medium-term financial
assistance of up to EUR 1.4 billion for Romania[1].
In the second programme, which was also a joint EU-IMF programme, no funds were
disbursed either by the EU or by the IMF in line with its precautionary
character.
On 4 July 2013, in the light of remaining risks
to its balance of payments, the Romanian authorities requested a third EU
medium-term financial assistance programme, again jointly with an IMF Stand-By
Arrangement. The EU and IMF assistance is expected to be treated as precautionary,
with no actual disbursements foreseen. On 9 July, the EFC responded
favourably to this request and mandated the Commission to negotiate a new joint
EU-IMF precautionary programme.
From 17 to 31 July 2013, the Commission services
conducted with the IMF staff a joint negotiation mission to Bucharest.
Staff-level agreement on the modalities and contents of a new programme was
reached. A new programme would continue to provide support to the economic
programme of the government aiming, among other things, at consolidating
macroeconomic, fiscal and financial stability, increasing the resilience and
the growth potential of the economy, enhancing administrative capacity,
reforming the tax administration and improving public financial management and
control. A new programme would run for 24 months and would be composed of
precautionary assistance by the European Union of up to EUR 2 billion and by the
IMF of up to SDR 1.75 billion (around EUR 2 billion) supported by a stand-by
arrangement. In addition, the World Bank will continue providing earlier
committed support of EUR 891 million, of which EUR 514 million is still to be
disbursed.
2. Macroeconomic development and outlook
Romania has
registered positive economic growth since 2011. Recent developments suggest
that growth in 2013 will be at about 2%, somewhat stronger than the 1.6% projected
in the Commission's spring forecast. A stellar export performance (mainly on
account of the automotive industry and services) and a good harvest are the
main drivers of growth. These positive trends, however, mask weak domestic demand,
with consumption being flat and investment contracting in the first half of 2013.
Going forward, growth is expected to
gradually strengthen as structural reforms start paying off, EU funds
absorption improves, and exports remain strong as the European economy
recovers. Assuming an average harvest, growth is projected to be slightly above
2% in 2014. Domestic demand is expected to be the main driver of growth, driven
by investment and private consumption, while net exports is projected to have a
small negative contribution, as imports are expected to pick up in 2014 on the
back of strengthening domestic demand.
Inflation, as measured by the HICP, remained
high, at around 6%, in Romania in 2009-2011, but came down in 2012 to an
average of 3.4%. Upward price pressures, however, became stronger again towards
the end of 2012 and in the first half of 2013. Inflation is expected to subside
during the second half of 2013 thanks to a sharp drop in food prices and a
reversal of base effects, and to fall below 3.5% by end-2013, thus within the
central bank's target range (2.5% ±1pp). A further deceleration is expected in 2014.
3. Public
finances
Romania has
successfully consolidated its public finances over recent years, reducing its
budget deficit from 9% of GDP in 2009 to just below 3% in 2012. This
achievement allowed the Council, on 21 June 2013, to abrogate the excessive
deficit procedure for Romania. A new programme would support the government's
further fiscal consolidation efforts which aim to reaching Romania’s medium-term objective (MTO) of a structural budget deficit of 1% of GDP by 2015.
The authorities remain committed to the previous programme's deficit target of
2.4% in ESA terms for 2013. In 2014, further consolidation in line with the
Stability and Growth Pact (SGP) requirements is planned. Based on current
indications, Romania would target a 2% deficit in ESA terms in line with its 2013
update of its convergence programme.
The July negotiation mission agreed on the mid-year
budget rectification allowing for some shifts in revenue and expenditure while
maintaining the overall deficit target for 2013 of 2.3% in cash and 2.4% in ESA
terms. The revised budget caters for lower revenues and lowers domestic capital
investments, reduces provisions for corrections related with EU Funds, and lowers
transfers to other public administration units. Regarding the 2014 budget, the
authorities are looking into ways to increase revenues, mainly via base
broadening. On the expenditure side, one important challenge is the phasing in of
the Unified Wage Law agreed under the first programme.
With the main part of the required fiscal
consolidation having been achieved, the focus of a new programme will be on
improving fiscal governance. It will aim to upgrade the fiscal framework to
bring it in line with Fiscal Compact requirements, along with a number of other
improvements to the content of the Fiscal Strategy and to the transparency of
the budgeting process. It will require improvements in annual and medium-term
capital budgeting, the finalisation of the commitment control system (to
prevent new arrears), as well as improvements in tax administration aimed at
more efficient tax collection.
4. Financial markets and banking sector
developments
Financial market conditions have
significantly improved since the summer of 2012 amid an improvement in global
market sentiment and following the stabilisation of the domestic political
situation towards year-end. It has moved broadly in tandem with the regional
peers, and remained relatively favourable in the first half of 2013. The 5-year
CDS sovereign spreads for Romania dropped from nearly 500 basis points in May
2012 to below 200 bps in early January 2013, and it has hovered slightly above
200 bps since end-June 2013. After substantial losses in May 2012 the BET stock
market index recovered until end-2012; it has been volatile since then but
gained around 10% until early-September 2013.
Notwithstanding the upward trend in
impaired assets (the non-performing loans (NPL) ratio reached 20.3% in June
2013), the banking sector’s capitalisation remained at reassuring levels (the
capital adequacy ratio stood at 14.7% in June). Risks associated with
increasing NPLs have been mitigated by a prudent loan-loss provisioning policy,
although provisions continue to put a strain on profitability (return on equity
reached 6% in H1 2013 after 3 years of losses). The central bank continues to
closely oversee banks with parents from peripheral euro-area countries which
have maintained sufficient capital buffers. The spill-overs from the crisis in
Cyprus were mitigated through the agreement to transfer the local deposit base
of the Romanian branch of Bank of Cyprus to Marfin Bank, the subsidiary of the Laiki
Group, the deleveraging process of foreign banks and the reduction in parent
bank funding (-14.6% since December 2012., albeit in line with regional
developments and overall conducted in an orderly fashion, continue to require
close attention by the supervisor.
5.
Balance of payment and external financing requirements
Romania is expected
to maintain full access to sovereign debt markets over the envisaged programme
period (24 months) barring adverse external developments. CDS spreads have
reached their lowest levels since 2010. The current-account deficit is expected
to decrease from around 4% of GDP in 2012 to around 2% in 2013, mainly thanks
to a decline in trade deficit.
Under the baseline scenario no sovereign or
external financing gap should materialise in the next two years. However, Romania remains vulnerable to exchange-rate volatility and volatile international capital
movements. In an adverse scenario, the financing of the current account could
become difficult and sovereign market access could be impeded. In the latter
case, a first line of defence would be the Treasury’s cash buffer (about
6-month of financing needs) and to a lesser extent the NBR's international
reserves. Should Romania experience protracted and acute financing
difficulties, the precautionary programme could be activated and the funds
available (EUR 2 bn from the EU disbursable in two EUR 1 bn instalments and up
to EUR 2 bn from the IMF Stand-By Arrangement) would allow to cover sovereign
financial and budgetary commitments. A new programme would also provide
reassurance to the financial markets that Romania is committed to an ambitious
economic reform agenda.
6. EU support under the balance-of-payments
facility comes as part of an international effort
In the light of remaining vulnerabilities
and risks to its balance of payments and conditional on the Romanian
authorities' commitment to implement a programme of fiscal, financial and
structural adjustment, the Commission, after having consulted the Economic and
Financial Committee (EFC) on 3 October 2013, recommends the Council to adopt a
Decision granting further mutual assistance to Romania as foreseen by Article
143 of the Treaty (TFEU). The Romanian government shall implement its economic
programme in order to deal with the remaining vulnerabilities, to mitigate
remaining threats to the sustainability of its balance of payments and shall
develop the necessary capacity to design and implement economic policies
without international support.
Furthermore, the Commission, after consulting
the EFC, proposes the Council to adopt a Decision providing precautionary EU
medium-term financial assistance of up to EUR 2 billion to Romania so as to underpin the sustainability of Romania's balance of payments. Activation of the precautionary Union financial assistance
and disbursements may be requested until 30 September 2015.
7. Main contents of a new programme
The new precautionary financial assistance
provides support to the economic programme of the government aiming, inter alia,
at consolidating macroeconomic, fiscal and financial stability, increasing the
resilience and the growth potential of the economy, enhancing administrative
capacity, reforming the tax administration, and improving public financial
management and control. The specific economic policy conditionality will be set
out in a Memorandum of Understanding (MoU) to be concluded by the Commission
with the Romanian authorities. It will preserve the achievements of the
previous two programmes and will carry over the yet unfulfilled conditions from
the second programme.
A: Fiscal consolidation
Following the correction of its excessive
deficit, Romania is expected to reduce its structural budget balance in line
with SGP requirements until it reaches its medium-term objective of a
structural general government deficit of 1% of GDP by 2015, and maintain it
thereafter. Furthermore, the programme will continue efforts to prevent the
build-up of government arrears, both at central and local government level. The
public sector wage bill will need to stay on a sustainable footing, limiting
wage growth as well as public sector employment levels.
B: Fiscal governance and structural
fiscal reform
To firmly anchor fiscal consolidation, the
programme will involve a further strengthening of the fiscal governance
framework. The implementation of the Fiscal Compact is crucial in this respect,
as well as improvements in multi-annual budgetary planning will ensure a more
sustainable fiscal policy.
The government will be supported by
extensive technical assistance provided by the IMF and the World Bank in the
area of public financial management and control. The implementation of a commitment
control system, which will be rolled out in several steps, will help ensure the
reduction and control of arrears. In the health sector, budget control
mechanisms will be strengthened through improved reporting and monitoring
frameworks, in particular with regard to hospitals and pharmaceutical spending
in order to avoid a re-accumulation of payment arrears. Prioritisation of
public investments will be strengthened, to enhance the country's growth
potential.
C: Public debt management
The authorities will take the necessary
steps to improve public debt management with a view to reducing funding cost
and risks and increase average maturity of public debt.
D: Financial sector regulation and
supervision
In the financial sector, authorities will
continue improving the bank resolution framework and the legislation on the
Deposit Guarantee Fund by amending GO 39/1996 and GEO 99/2006. To speed up the
process of balance sheet cleaning, the National Bank of Romania (NBR) has
clarified the provisions applicable to the write-off of loans with the Romanian
Banking Association and will produce a comprehensive analysis of the asset
quality in the banking sector. In order to further develop the capital market
and diversify the sources of funding for banks, authorities will amend the
covered bonds legislation. Preserving credit discipline and avoiding moral
hazard among debtors contributes significantly to enhancing financial
stability. Therefore, the government will continue refraining from adopting
legislative initiatives (such as the personal insolvency law) and promoting
provisions in the debt collection law, which would undermine credit discipline.
Authorities will consult extensively with all relevant stakeholders, taking
into account also the impact assessment finalised by the NBR, on the new
provisions on abusive clauses in the law for the application of the civil
procedure code, will ensure that court cases involving abusive clauses are
dealt with by higher ranking courts or by a unique specialised court, and will
take all other necessary measures to ensure a consistent application of these
provisions. To strengthen the supervision of non-bank financial market and
foster consumer protection, authorities will ensure that the legislation on the
integrated non-bank financial regulator, the Financial Supervisory Authority (FSA),
will be amended to comply with international good practices.
E: Structural reforms
The structural reforms aim at improving
market functioning, at increasing resilience to external shocks and at strengthening
  Romania's long-run growth potential. The structural reform agenda of this
programme is a part of the broader agenda set in Romania's National Reform
Programme and covered by the country-specific recommendations addressed to Romania in the context of the European Semester.
The restructuring of state-owned
enterprises (SOEs), including privatisation, will be stepped up in order to
reduce risks to the general government budget from accumulated arrears and
operational losses, while increasing the financial viability of most of these
companies' operations. Authorities will take measures to strengthen corporate
governance of SOEs, including in the financial sector.
In the energy sector outstanding measures
agreed under the two previous programmes will be implemented, among which the
implementation of the roadmaps for the gas and electricity market
liberalisation.
Improvement of the business environment and
facilitating access to finance for the small and medium-size enterprises (SMEs)
is another important pillar of the structural reform agenda of the programme.
The programme aims at reducing administrative burden for the SMEs, facilitating
their access to bank and equity capital, reducing the legal uncertainty by
improving the land and property registration and supporting SMEs when going
abroad. Furthermore, the programme supports the reform of the intellectual
property rights framework, in particular in relation to patents, with the view
to attract foreign direct investment in research and innovation activities.
In the field of labour markets, the
programme supports the completion of the 2010 pension reform by equalising the
pensionable age for men and women.
In addition to the above described broad
areas of measures to improve the efficiency of public administration in areas
critical to program implementation, the Romanian authorities will be invited to
report every six months to the Economic and Financial Committee (EFC)/Economic
Policy Committee (EPC) on the progress made in this area.
F: Monetary Policy
Monetary policy will remain geared towards
price stability with a view to keeping inflation within the National Bank of Romania’s inflation target band (2.5% ± 1 percentage point).
Recommendation for a
COUNCIL DECISION
granting mutual assistance for Romania
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 143 thereof,
Having regard to the recommendation from
the European Commission made after consulting the Economic and Financial
Committee,
Whereas:
(1)       Romania has implemented a substantial reform programme
since 2009. Under two balance-of-payments (BOP) programmes, Romania has largely corrected its external macroeconomic imbalances and the excessive
deficit procedure was abrogated by the Council on 21 June 2013. Fiscal
consolidation should be continued in line with the Stability and Growth Pact
requirements with a view to meeting the medium-term objective (MTO) in 2015. The
government has regained full access to market-based financing and the exchange
rate has been broadly stable since mid-2009.
(2)       Macroeconomic and
financial stability should be consolidated through the pursuit of prudent
policies. Structural reforms that were initiated under the previous programmes
should be pursued and, where appropriate, reinforced to reduce vulnerabilities
and strengthen the basis for future growth and catching up.
(3)       The Council will review on
a regular basis the economic policies implemented by Romania, in particular in
the context of the annual reviews of Romania's update of the convergence programme
and implementation of the national reform programme and the regular review of
progress made by Romania in the context of the convergence report.
(4)       While in the baseline
scenario of the economic programme, total gross financing needs until the end
of 2015 are fully covered, and the government continues to have access to
market-based financing, the risks surrounding the baseline scenario support
Romania's request for a financial assistance of a precautionary nature as a
follow on to the assistance granted under Council Decisions 2009/458/EC[2] and 2011/289/EU[3].
(5)       The Romanian authorities
have requested financial assistance from the Union and other international
financial institutions to support balance of payments sustainability and to
ensure that international currency reserves can be kept at a prudent level even
in the case of adverse economic developments.
(6)       Despite improvements in
its current account, Romania remains vulnerable to exchange-rate volatility and
volatile international capital movements. In an adverse scenario marked by a
retrenchment of the current abundant liquidity, situations could arise wherein
the financing costs for Romania would increase and possibly do so in an abrupt
way. Furthermore, adverse developments in the euro-area could cause renewed
pressures on the banking sector. The remaining vulnerabilities justify the
granting of mutual assistance by the Union,
HAS ADOPTED THIS DECISION:
Sole Article
The Union shall grant mutual assistance to Romania
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
BUDGETARY IMPACT STATEMENT
(cf.
Article 16 of the Internal Rules)
POLICY AREA: TITLE 01 – ECONOMIC AND
FINANCIAL AFFAIRS
ACTIVITY: FINANCIAL OPERATIONS AND
INSTRUMENTS
1.           NAME OF THE PROPOSAL,
BUDGET LINE CONCERNED AND TITLE
Proposal for a Council Decision providing
precautionary EU medium-term financial assistance for Romania in conjunction
with the Recommendation for a Council Decision granting mutual assistance for
Romania.
01 04 01 01 European Union guarantee for EU
loans raised for balance-of-payments support.
2.           LEGAL BASIS:
Art. 143 TFEU, Council Regulation N° 332/2002.
3.           OVERALL FIGURES FOR THE
FINANCIAL YEAR (IN EUROS)
This item constitutes the structure for the
guarantee provided by the European Union. It will enable the Commission to
service the debt (principal, interest and other costs) should the debtor (Romania) default.
The budget entry ("p.m.") reflecting
the budget guarantee will be activated only in the case of an effective call on
the guarantee. It is expected that normally the budget guarantee will not be
called.
3a – Current year
Not applicable
   ||   || CA
 Initial appropriation for the financial year (budget) ||   ||
 Transfers ||   ||
 Additional appropriation ||   ||
 Total appropriation ||   ||
 Appropriations already set aside by another work programme ||   ||
 Balance available ||   ||
 Amount for the action proposed ||   ||
3b – Carry overs
Not applicable
   ||   || CA
 Carry-overs ||   ||
 Appropriations already set aside by another work programme ||   ||
 Balance available ||   ||
 Amount for the action proposed ||   ||
3c – Next financial year
Not applicable
   ||   || CA
 Initial appropriation for the financial year (budget) ||   || p.m.
 Transfers ||   ||
 Additional appropriation ||   ||
 Total appropriation ||   ||
 Appropriations already set aside by another work programme ||   ||
 Balance available ||   ||
 Amount for the action proposed ||   || p.m.
4.           DESCRIPTION OF THE ACTION
The proposed precautionary EU medium-term
financial assistance to Romania, if activated, consists of an EU loan (to be
financed by EU borrowings in the international capital markets or with
financial institutions) in the amount of up to EUR 2 billion. It will be
provided in the context of an international financing package, and in
particular by an IMF loan of SDR 1.75 billion (around EUR 2 billion) supported
by a stand-by arrangement. The World Bank has made EUR 1 billion available
under a Development Policy Loan (DPL) with a deferred drawdown option (DDO). In
addition, the WB will continue providing earlier committed support of EUR 891
million, of which EUR 514 million is still to be disbursed. The precautionary
EU medium-term financial support to Romania is intended to address the remaining
risks surrounding the sustainability of the balance of payments of Romania; even
if the current account deficit has clearly come down, volatile capital flows
imply risks for its financing. The precautionary assistance also continues to
provide support to the economic programme of the government aiming, among other
things, at consolidating macroeconomic, fiscal and financial stability, enhancing
administrative capacity, reforming the tax administration, improving public
financial management and control, and increasing the resilience and the growth
potential of the Romanian economy. Finally, the assistance managed by the
Commission, in consultation with the Economic and Financial Committee, is a way
to encourage economic policies in Romania to be consistent with the country's
undertakings in the EU context and recommendations by the Council, in
particular as concerns the implementation of the National Reform Programme as
well as of the Convergence Programme.
The EU funds raised on the capital markets or
from financial institutions for the purpose of extending the loan to Romania, in case of a request by Romania and a positive evaluation of such a request by the
Commission after consulting the EFC, are covered by the EU guarantee. The loan
is raised on the capital markets or from financial institutions. The amount in
principal of loans which could be granted to Romania would amount to up to EUR
2 billion.
The structure for the guarantee provided by the
EU will enable the Commission to service the debt should Romania default.
In order to honour its obligations, the
Commission may draw on its cash resources to service the debt provisionally. In
this case, Article 12 of Council Regulation (EC, Euratom) No 1150/2000 of 22
May 2000 implementing Decision 2007/436/EC, Euratom on the system of the
European Communities' own resources (OJ L 130, 31.5.2000, p. 1) will apply.
5.           METHOD OF CALCULATION
ADOPTED
Not applicable.
6.           PAYMENT SCHEDULE (IN
EURO)
Not applicable.
 Heading || Appropriations || Payments
   ||   ||   || Year n || Year n+1 || Year n+2 || Year n+3 || Subsequent financial years
   || Year n ||   ||   ||   ||   ||   ||
   || Year n+1 ||   ||   ||   ||   ||   ||
   ||   ||   ||   ||   ||   ||   ||
   || Year n ||   ||   ||   ||   ||   ||
   || Year n+1 ||   ||   ||   ||   ||   ||
   ||   ||   ||   ||   ||   ||   ||
   || Total ||   ||   ||   ||   ||   ||
[1]               The first programme was covered by Council Decision
2009/459/EC and the second programme by Council Decision 2011/288/EU.
[2]               OJ L 150, 13.6.2009, p. 6.
[3]               OJ L 132, 12.5.2011, p. 28.