title: Recommendation of the EFTA Surveillance Authority No 65/04/COL of 31 March 2004 concerning a coordinated programme for the official control of feedingstuffs for 2004

text:
               19.5.2005

               EN

               Official Journal of the European Union

               L 126/59

      RECOMMENDATION OF THE EFTA SURVEILLANCE AUTHORITY

   No 65/04/COL
   of 31 March 2004
   concerning a coordinated programme for the official control of feedingstuffs for 2004
   THE EFTA SURVEILLANCE AUTHORITY,
   Having regard to the Agreement on the European Economic Area, and in particular Article 109 and Protocol 1 thereof,
   Having regard to the Agreement between the EFTA States on the establishment of a Surveillance Authority and a Court of Justice, and in particular Article 5(2)(b) and Protocol 1 thereof,
   Having regard to the Act referred to at point 31a of Chapter II of Annex I to the EEA Agreement (Council Directive 95/53/EC of 25 October 1995 fixing the principles governing the organisation of official inspections in the field of animal nutrition (1)), as amended, and as adapted to the EEA Agreement by Protocol 1 thereto, and in particular Article 22(3) thereof,
   Whereas:

               (1)

               It is necessary, with a view to the sound operation of the European Economic Area, to arrange for coordinated feed inspection programmes within the EEA designed to improve the harmonised implementation of the official controls by the EEA States.

               (2)

               Such programmes should place emphasis on complicance with the relevant legislation in force under the EEA Agreement, and the protection of public and animal health.

               (3)

               The results from simultaneous implementation of national programmes and coordinated programmes may provide information and experience on which to base future control activities and legislation.

               (4)

               Although the Act referred to at point 33 of Chapter II of Annex I to the EEA Agreement (Directive 2002/32/EC of the European Parliament and of the Council of 7 May 2002 on undesirable substances in animal feed (2)) establishes maximum contents of aflatoxin B1 in feedingstuffs, there is no legislation in force under the EEA Agreement for other mycotoxins, such as ochratoxin A, zearalenone, deoxynivalenol and fumonisins. Gathering information on the presence of those mycotoxins through random sampling could provide useful data for an assessment of the situation with a view to the development of the legislation. Furthermore, certain feed materials such as cereals and oil seeds are particularly exposed to mycotoxin contamination because of harvesting, storage and transport conditions. As mycotoxin concentration varies from year to year, it is appropriate to collect data from consecutive years for all mycotoxins mentioned.

               (5)

               Previous checks for the presence of antibiotics and coccidiostats in certain feedingstuffs where those substances are not authorised indicate that this type of infringement still occurs. The frequency of such findings and the sensitivity of this matter justify the continuation of checks.

               (6)

               The participation of Norway and Iceland in the programmes within the scope of Annex II of this Recommendation concerning substances not authorised as feed additives will have to be evaluated with respect to their exemptions from Chapter II of Annex I to the EEA Agreement.

               (7)

               It is important to ensure that the restrictions on the use of feed materials of animal origin in feedingstuffs, as laid down in the relevant EEA legislation, are effectively enforced.

               (8)

               The case of contamination of the feed and food chain with medroxyprogesterone acetate (MPA) highlighted the value of the selection of supplies in the safety of feedingstuffs. Some ingredients in feedingstuffs are by-products of agri-food industries, or of other industries, or of mineral extraction. The source of feed materials of industrial origin and the processing methods applied to them may be of particular significance in the safety of the products. Therefore the competent authorities should consider this aspect when carrying out their checks.

               (9)

               The measures provided for in this Recommendation are in accordance with the opinion of the EFTA Plants and Animal Feedingstuffs Committee assisting the EFTA Surveillance Authority,

         HEREBY RECOMMENDS TO THE EFTA STATES:

               1.

               During 2004, to carry out a coordinated inspection programme aimed to check:

                           (a)

                           the concentration of mycotoxins (aflatoxin B1, ochratoxin A, zearalenone, deoxynivalenol and fumonisins) in feedingstuffs, indicating the methods of analysis; the method of sampling should comprise both random and targeted sampling; in the case of targeted sampling, the samples should be feed materials suspected of containing higher concentrations of mycotoxins, such as cereal grains, oil seeds, oil fruits, their products and by-products, and feed materials stored for a long time or transported by sea over a long distance; the results of the checks should be reported using the model set out in Annex I;

                           (b)

                           certain medicinal substances, whether or not authorised as feed additives for certain animal species and categories, in non-medicated pre-mixtures and compound feedingstuffs in which these medicinal substances are not authorised; the checks should target those medicinal substances in pre-mixtures and compound feedingstuffs if the competent authority considers that there is a greater probability of finding irregularities; the results should be reported using the model set out in Annex II;

                           (c)

                           the implementation of restrictions on the production and use of feed materials of animal origin, as set out in Annex III;

                           (d)

                           the procedures applied by manufacturers of compound feedingstuffs in order to select and assess their supplies of feed materials of industrial origin and to ensure the quality and safety of such ingredients, as set out in Annex IV.

               2.

               To include the results of the coordinated inspection programme provided for in paragraph 1 in a separate Chapter in the annual report on inspection activities to be transmitted to the EFTA Surveillance Authority by 1 April 2005 in accordance with Article 22(2) of Directive 95/53/EC and the latest version of the harmonised reporting model.

      Done at Brussels, 31 March 2004.

            For the EFTA Surveillance Authority

         Bernd HAMMERMAN

            College Member

         Niels FENGER

            Director

      (1)  OJ L 265, 8.11.1995, p. 17. Directive as last amended by Directive 2001/46/EC of the European Parlament and of the Council (OJ L 234, 1.9.2001, p. 55).

      (2)  OJ L 140, 30.5.2002, p. 10. Directive as last amended by Commission Directive 2005/8/EC (OJ L 27, 29.1.2005, p. 44).

      ANNEX I
      Concentration of certain mycotoxins (aflatoxin B1, ochratoxin A, zearalenone, deoxynivalenol, fumonisins) in feedingstuffs
      Individual results of all tested samples; model for reports as referred to in paragraph 1(a)

                  Feedingstuffs

                  Sampling (random or targeted)

                  Type and concentration of mycotoxins (μg/kg relative to a feedingstuff with a moisture content of 12 %)

                  Type

                  Country of origin

                  Aflatoxin B1

                  Ochratoxin A

                  Zearalenone

                  Deoxynivalenol

                  Fumonisins (1)

            The competent authority should also indicate:

                  —

                  the action taken when maximum levels for aflatoxin B1 are exceeded,

                  —

                  the methods of analysis used,

                  —

                  the limits of detection.

         (1)  The concentration of fumonisins comprises the total of fumonisins B1, B2 and B3.

      ANNEX II
      Presence of certain substances not authorised as feed additives
      Certain antibiotics, coccidiostats and other substances may be legally present as additives in pre-mixtures and compound feedingstuffs for certain species and categories of animals, when authorised under the Act referred to at point 1 of Chapter II of Annex I to the EEA Agreement (Council Directive 70/524/EEC of 23 November 1970 concerning additives in feedingstuffs (1)).
      The presence of unauthorised substances in feedingstuffs constitutes an infringement.
      The substances to be controlled should be chosen from the following:

                  1.

                  Substances authorised as feed additives for certain animal species or categories only:

                              avilamycin

                              decoquinate

                              diclazuril

                              flavophospholipol

                              halofuginone hydrobromide

                              lasalocid A sodium

                              maduramicin ammonium alpha

                              monensin sodium

                              narasin

                              narasin — nicarbazin

                              robenidine hydrochloride

                              salinomycin sodium

                              semduramicin sodium

                  2.

                  Substances no longer authorised as feed additives:

                              amprolium

                              amprolium/ethopabate

                              arprinocid

                              avoparcin

                              carbadox

                              dimetridazole

                              dinitolmid

                              ipronidazol

                              meticlorpindol

                              meticlorpindol/methylbenzoquate

                              nicarbazin

                              nifursol

                              olaquindox

                              ronidazol

                              spiramycin

                              tetracyclines

                              tylosin phosphate

                              virginiamycin

                              zinc bacitracin

                              other antimicrobial substances

                  3.

                  Substances never authorised as feed additives:
                  other substances

            Individual results of all non-compliant samples; model for reports as referred to in paragraph 1(b)

                  Type of feedingstuff
                  (animal species and category)

                  Substance detected

                  Level found

                  Reason for the infringement (2)

                  Action taken

            The competent authority should also indicate:

                  —

                  the total number of samples tested,

                  —

                  the names of the substances which have been investigated,

                  —

                  the methods of analysis used,

                  —

                  the limits of detection.

         (1)  OJ L 270, 14.12.1970, p. 1.

         (2)  Reason leading to the presence of the unauthorised substance in the feedingstuff, as concluded after an investigation carried out by the competent authority.

      ANNEX III
      Restrictions on the production and use of feed materials of animal origin
      Without prejudice to Articles 3 to 13 and 15 of Directive 95/53/EC, the EFTA States should during 2004 undertake a coordinated inspection programme to determine whether restrictions on the production and use of feed materials of animal origin have been complied with.
      In particular, in order to ensure that the ban on feeding processed animal protein to certain animals, as laid down in the Annex IV of the Act referred to at point 7, 1, 12 of Chapter I of Annex I to the EEA Agreement (Regulation (EC) No 999/2001 of the European Parliament and of the Council of 22 May 2001 laying down rules for the prevention, control and eradication of certain transmissible spongiform encephalopathies (1)), are effectively applied, EFTA States should implement a specific control programme based on targeted controls. In accordance with Article 4 of Directive 95/53/EC, that control programme should be based on a risk-based strategy where all stages of production and all types of premises where feed is produced, handled and administered are included. EFTA States should pay special attention to the definition of criteria that can be related to a risk. The weighting given to each criterion should be proportional to the risk. The inspection frequency and the number of samples analysed in the premises should be in correlation to the sum of weightings allocated to those premises.
      The following indicative premises and criteria should be considered when drawing up a control programme:

                  Premises

                  Criteria

                  Weighting

                  Feed mills

                              —

                              Double-stream feed mills producing ruminant compound feed and non-ruminant compound feed containing derogated processed animal proteins

                              —

                              Feed mills with previous history, or suspicion, of non-compliance

                              —

                              Feed mills with a large amount of imported feedingstuffs with high protein content such as fishmeal, soybean meal, corn gluten meal and protein concentrates

                              —

                              Feed mills with a high production of compound feed

                              —

                              Risk of cross-contamination resulting from internal operational procedures (dedication of silos, control of the effective separation of lines, control of ingredients, internal laboratory, sampling procedures, etc.)

                  Border Inspection Posts and other points of entry into the EEA

                              —

                              Large/small amount of imports of feedingstuffs

                              —

                              Feedingstuffs with high protein content

                  Farms

                              —

                              Home mixers using derogated processed animal proteins

                              —

                              Farms keeping ruminants and other species (risk of cross feeding)

                              —

                              Farms purchasing feedingstuffs in bulk

                  Dealers

                              —

                              Warehouses and intermediate storage of feedingstuffs with high protein content

                              —

                              High volume of bulk feedingstuffs traded

                              —

                              Dealers in compound feedingstuffs produced abroad

                  Mobile mixers

                              —

                              Mixers producing for both ruminants and non-ruminants

                              —

                              Mixers with previous history, or suspicion, of non-compliance

                              —

                              Mixers incorporating feedingstuffs with high protein content

                              —

                              Mixers with high production of feedingstuffs

                              —

                              Large number of farms served including farms which keep ruminants

                  Means of transportation

                              —

                              Vehicles used for the transportation of processed animal proteins and feedingstuffs

                              —

                              Vehicles with previous history, or suspicion, of non-compliance

            As an alternative to these indicative premises and criteria, EFTA States may forward their own risk assessment to the EFTA Surveillance Authority before 30 April 2004.
      Sampling should be targeted on batches or events where cross-contamination with prohibited processed proteins is most likely (first batch after the transport of feedingstuffs containing animal protein prohibited in this batch, technical problems or changes in production lines, changes in storage bunkers or silos for bulk material).
      The minimum number of inspections per year in an EFTA State should be 10 per 100 000 tonnes of compound feed produced. The minimum number of official samples per year in an EFTA State should be 20 per 100 000 tonnes of compound feed produced. Pending the approval of alternative methods, microscopic identification and estimation as described in Commission Directive 98/88/EC of 13 November 1998 establishing guidelines for the microscopic identification and estimation of constituents of animal origin for the official control of feedingstuffs (2) should be used for analysing samples. Any presence of prohibited constituents of animal origin in feedingstuffs should be considered as a breach of the feed ban.
      The results of the inspection programmes should be communicated to the EFTA Surveillance Authority using the following formats:
      Summary of checks concerning feeding restrictions for feed of animal origin (feeding of prohibited processed animal proteins)
      A.   Documented inspections

                  Stage

                  Number of inspections comprising checks on the presence of processed animal proteins

                  Number of breaches based on documentary checks etc. rather than laboratory testing

                  Import of feed materials

                  Storage of feed materials

                  Feed mills

                  Home mixers/mobile mixers

                  Intermediaries of feedingstuffs

                  Means of transport

                  Farms keeping non-ruminants

                  Farms keeping ruminants

                  Others: …

      B.   Sampling and testing of feed materials and compound feedingstuffs for processed animal proteins

                  Premises

                  Number of official samples tested for processed animal proteins

                  Number of non-compliant samples

                  Presence of processed animal protein from terrestrial animals

                  Presence of processed animal protein from fish

                  Feed materials

                  Compound feedingstuffs

                  Feed materials

                  Compound feedingstuffs

                  Feed materials

                  Compound feedingstuffs

                  for ruminants

                  for non-ruminants

                  for ruminants

                  for non-ruminants

                  for ruminants

                  for non-ruminants

                  At import

                  Feed mills

                  Intermediaries/storage

                  Means of transport

                  Home mixers/mobile mixers

                  On farm

                  Others: …

      C.   Summary of prohibited processed animal proteins found in samples of feedingstuffs intended for ruminants

                  Month of sampling

                  Type, degree and origin of contamination

                  Sanctions (or other measures) applied

                  1

                  2

                  3

                  4

                  5

                  …

            In addition, EFTA States should analyse fats and vegetable oils intended for feedingstuffs for the presence of traces of bones and include the results of such analyses in the report referred to in paragraph 2 of this Recommendation.

         (1)  OJ L 147, 31.5.2001, p. 1.

         (2)  OJ L 318, 27.11.1998, p. 45.

      ANNEX IV
      Procedures for selection and assessment of supplies of feed materials of industrial origin
      The competent authorities should identify and shortly describe the procedures followed by manufacturers of compound feedingstuffs in order to select and assess supplies of feed materials of industrial origin. Some procedures may be related to the prior establishment of characteristics or requirements for the products to be supplied, or for the suppliers. Other procedures may be related to own-checks for the verification of compliance with certain parameters, carried out by manufacturers of compound feedingstuffs at the reception of supplies.
      For each identified procedure (procedure for selection and assessment of supplies), the competent authorities should indicate the advantages and disadvantages of the application of the procedure in terms of feed safety. Finally they should assess whether, taking into account the potential risks, each procedure is acceptable, insufficient or unacceptable for ensuring the safety of feedingstuffs, stating the reasons leading to that conclusion.
      Evaluation of procedures

                  Procedure (short description, including criteria for acceptance/rejection of feed materials)

                  Advantages

                  Disadvantages

                  Assessment of acceptability of procedures


title: Council Recommendation of 19 March 2007 concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (Ninth EDF) for the financial year 2005

text:
               8.5.2007

               EN

               Official Journal of the European Union

               C 103/4

      COUNCIL RECOMMENDATION

   of 19 March 2007
   concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (Ninth EDF) for the financial year 2005
   (2007/C 103/04)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community,
   Having regard to the ACP-EC Partnership Agreement, signed in Cotonou on 23 June 2000 (1) and amended in Luxembourg (Grand Duchy of Luxembourg) on 25 June 2005 (2),
   Having regard to the Internal Agreement on the financing and administration of Community aid under the Financial Protocol to ACP-EC Partnership Agreement (3) setting up, amongst others, the Ninth European Development Fund (Ninth EDF), and in particular Article 32(3) of that Agreement,
   Having regard to the Financial Regulation of 27 March 2003 applicable to the 9th European Development Fund (4), and in particular Articles 96 to 103 thereof,
   Having examined the revenue and expenditure account and the balance sheet relating to the operations of the Ninth EDF as at 31 December 2005 and the Court of Auditors' report concerning the financial year 2005 together with the Commission's replies (5),
   Whereas

               (1)

               Pursuant to Article 32(3) of the said Internal Agreement, the discharge for the financial management of the Ninth EDF is to be given to the Commission by the European Parliament on the recommendation of the Council.

               (2)

               The overall implementation by the Commission of the operations of the Ninth EDF during the financial year 2005 has been satisfactory,

         HEREBY RECOMMENDS that the European Parliament give the Commission a discharge in respect of the implementation of the operations of the Ninth EDF for the financial year 2005.

      Done at Brussels, on 19 March 2007.

            For the Council

            The President

         H. SEEHOFER

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

      (2)  OJ L 287, 28.10.2005, p. 4.

      (3)  OJ L 317, 15.12.2000, p. 355.

      (4)  OJ L 83, 1.4.2003, p. 1.

      (5)  OJ C 263, 31.10.2006, p. 205.


Avis juridique important

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31996K0004

96/14/EC: Commission Recommendation No 4/96/ECSC of 21 November 1995 amending recommendation No 3118/94/ECSC and repealing recommendation No 73/95/ECSC

Official Journal L 005 , 08/01/1996 P. 0023 - 0023

COMMISSION RECOMMENDATION No 4/96/ECSC of 21 November 1995 amending recommendation No 3118/94/ECSC and repealing recommendation No 73/95/ECSCTHE COMMISSION OF THE EUROPEAN COMMUNITIES,Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 74 thereof,Whereas pending the conclusion and entry into force of the agreements with Russia and Ukraine on trade in certain steel products covered by the European Coal and Steel Treaty, the requirement for an export licence for imports covered by those agreements was established by Commission recommendation No 73/95/ECSC (1);Whereas with the entry into force of those agreements (2), together with the introduction of a requirement for a Community import licence in accordance with the rules set out in Commission Decision No 3/96/ECSC (3), it is necessary to repeal recommendation No 73/95/ECSC and, in order to avoid unnecessary duplication of procedures, to amend recommendation No 3118/94ECSC (4), as last amended by recommendation No 393/95/ECSC (5), so as to remove the requirement for surveillance documents in respect of the products originating in Russia and Ukraine which are covered by the agreements,HEREBY RECOMMENDS:Article 1Recommendation No 73/95/ECSC is repealed.Article 2Article 1 (1) of recommendation No 3118/94/ECSC shall no longer apply in respect of the release for free circulation into the Community of those steel products covered by the ECSC Treaty originating in Russia and Ukraine which are the subject of the agreements between the European Coal and Steel Community and those countries and for which a Community import licence is required in accordance with the provisions of Decision No 3/96/ECSC.Article 3This recommendation shall enter into force on the day following that of its publication in the Official Journal of the European Communities.This recommendation shall apply from 1 January 1996.Done at Brussels, 21 November 1995.For the CommissionThe PresidentJacques SANTER(1) OJ No L 13, 19. 1. 1995, p. 1.(2) See page 24 and 47 of this Official Journal.(3) See page 1 of this Official Journal.(4) OJ No L 330, 21. 12. 1994, p. 6.(5) OJ No L 43, 25. 2. 1995, p. 23.


title: 2011/442/EU: Commission Recommendation of 18 July 2011 on access to a basic payment account  Text with EEA relevance

text:
               21.7.2011

               EN

               Official Journal of the European Union

               L 190/87

         COMMISSION RECOMMENDATION
   of 18 July 2011
   on access to a basic payment account
   (Text with EEA relevance)
   (2011/442/EU)
   THE EUROPEAN COMMISSION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Article 292 thereof,
   Whereas:

               (1)

               Ensuring that consumers have access to payment services in the European Union (hereinafter referred to as ‘the Union’) is essential to enable them to fully benefit from the Single Market and for the Single Market to function properly. At present, the availability of essential payment services is neither ensured by payment service providers nor guaranteed by all Member States in the Union.

               (2)

               Existing restrictive eligibility criteria imposed by payment service providers to open payment accounts, beyond what is required by law, may prevent full access to the right of freedom of movement of persons within the Union. Moreover, lack of access to payment accounts prevents consumers from accessing the mainstream financial services market and thereby weakens financial and social inclusion, often to the detriment of the most vulnerable part of the population. It also makes it more difficult for consumers to access essential goods and services. It is therefore necessary to establish principles on access to basic payment accounts which is a key element for promoting social inclusion and cohesion, in order to allow consumers to benefit as a minimum from a common set of essential payment services.

               (3)

               It is important to ensure that principles on access to basic payment accounts are applied consistently throughout the Union. However, in order to be more effective, those principles would need to be implemented taking into account the variety of banking habits within the Union.

               (4)

               This Recommendation sets out general principles applicable to the provision of basic payment accounts within the Union.

               (5)

               This Recommendation should apply in conjunction with Directive 2007/64/EC of the European Parliament and of the Council of 13 November 2007 on payment services in the internal market (1). Accordingly, rules on the transparency of conditions and on information regarding payment services should apply to basic payment accounts.

               (6)

               The provisions of this Recommendation should not prevent Member States or payment services providers from taking measures justified on legitimate grounds of public security and public order in conformity with Union law.

               (7)

               In any Member State, consumers who are legally resident in the Union and who do not hold a payment account in that Member State should be in a position to open and use a basic payment account in that Member State. In order to ensure the widest possible access to basic payment accounts, Member States should ensure that consumers have access to such an account in spite of their financial circumstances, such as unemployment or personal bankruptcy. However, the right to access a basic payment account in any Member State should be granted in conformity with the requirements set out in Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (2), in particular with regard to customer due diligence procedures.

               (8)

               Furthermore this Recommendation should be without prejudice to the payment service provider’s obligation to terminate the basic payment account contract in exceptional circumstances under relevant Union or national legislation, such as legislation on money laundering and terrorist financing or on the prevention and investigation of crimes.

               (9)

               To ensure the availability of basic payment accounts in light of their specific national circumstances, Member States should be able to designate, based on the principles of transparency, non-discrimination and proportionality, one, several or all payment service providers. The measures to be adopted by Member States in this respect should not create distortions of competition between payment service providers and should be based on the principles of transparency, non-discrimination and proportionality. In this context, Member States should make public the rights enjoyed by and the obligations placed on the providers that are responsible for providing basic payment accounts.

               (10)

               In order to ensure transparency and fairness of treatment and in order to allow the consumer to question the payment service provider’s decision, the payment service provider should inform the consumer of the grounds and justification for his refusal of access to a basic payment account.

               (11)

               Access to a core range of essential payment services should be guaranteed in any Member State. Services inseparably linked to basic payment accounts should include the facility to deposit and withdraw cash into and from the account. They should enable the consumer to make essential payment transactions such as receiving income or benefits, paying bills or taxes and purchasing goods and services, including via direct debit, credit transfer and the use of a payment card. In order to ensure the fullest financial inclusion possible, such services should allow the purchase of goods and services online where technically possible. They should also give the opportunity to the consumer to initiate payment orders via the payment service provider’s online banking facilities where technically possible. However a basic payment account should not allow the execution of payment orders where such payment orders would result in a negative balance on the account. Access to credit should not be considered as an automatic component of or a right attached to a basic payment account.

               (12)

               Where the payment service provider charges the consumer for the opening, operating and closing of the account and for using the services that are inseparably associated to it as defined in this Recommendation, the total amount charged should be reasonable for the consumer and should be such that the consumer, in the light of specific national circumstances, is not prevented from opening the basic payment account and using its associated services. All additional charges to the consumer in the event of non-compliance with any of the terms laid down in the contract should also be reasonable.

               (13)

               In order to ensure consistency and efficiency in the implementation of the principle of a reasonable charge, Member States should establish what constitutes a reasonable charge on the basis of the indicative criteria laid down in this Recommendation, which may be considered together.

               (14)

               Measures to enhance consumers’ awareness of the availability of basic payment accounts are also necessary in order to promote financial inclusion. General, clear and comprehensible information should therefore be provided to consumers by Member States as well as by payment service providers on the main features and conditions of the use of such accounts as well as on the practical steps that the consumer should follow in exercising the right to open a basic payment account. The consumer should also be informed that the purchase of additional services is not compulsory to access a basic payment account.

               (15)

               Compliance with the provisions laid down in this Recommendation requires the processing of consumers’ personal data. Such processing is governed by Directive 95/46/EC of the European Parliament and of the Council of 24 October 1995 on the protection of individuals with regard to the processing of personal data and on the free movement of such data (3), notably its Articles 6, 7, 10, 11, 12 and 17 so as to ensure the fair and lawful processing and the respect of the fundamental right to protection of personal data, in particular with regard to the general requirements of necessity and proportionality, the data subject’s right of access to his own data, the rectification and erasure or blocking of inaccurate data, and its Article 28 regarding the monitoring of compliance with Directive 95/46/EC by independent public data protection authorities.

               (16)

               Consumers should have access to effective out-of-court complaint and redress procedures for the settlement of disputes arising from the principles set out in this Recommendation. Existing bodies and schemes, for instance those existing for the settlement of disputes concerning rights and obligations arising under Directive 2007/64/EC, may be used.

               (17)

               The implementation of the principles laid down in this Recommendation should be reinforced through supervisory review at the national level. Competent authorities should be empowered to fulfil their monitoring duties efficiently.

               (18)

               Member States should have reliable annual statistics at least on the number of basic payment accounts opened, the number of refusals and terminations of basic payment accounts and the charges associated to basic payment accounts. To this end, Member States are invited to use any relevant sources of information. They should communicate this information to the Commission on an annual basis and for the first time by 1 July 2012 at the latest.

               (19)

               Member States should be invited to take the necessary measures to ensure the application of this Recommendation at the latest 6 months after its publication. Based on the reporting provided by Member States, the Commission will monitor and assess the measures taken by 1 July 2012. On the basis of this monitoring, the Commission will propose any necessary action, including legislative measures if needed, in order to ensure that the objectives of this Recommendation are fully met,

         HAS ADOPTED THIS RECOMMENDATION:

      SECTION I

      Definitions

               1.

               For the purposes of this Recommendation, the following definitions apply:

                           (a)

                           ‘Consumer’ means any natural person who is acting for purposes other than his trade, business, craft or profession;

                           (b)

                           ‘Payment service provider’ means the payment service provider(s) as defined in Article 4(9) of Directive 2007/64/EC, which is in charge of offering basic payment accounts pursuant to paragraph 3;

                           (c)

                           ‘Payment account’ means an account held in the name of one consumer which is used for the execution of payment transactions;

                           (d)

                           ‘Payment transaction’ means a payment transaction as defined in Article 4(5) of Directive 2007/64/EC;

                           (e)

                           ‘Funds’ means funds as defined in Article 4(15) of Directive 2007/64/EC;

                           (f)

                           ‘Contract’ means a framework contract as defined in Article 4(12) of Directive 2007/64/EC.

      SECTION II

      Right of access

               2.

               Member States should ensure that any consumer legally resident in the Union has the right to open and use a basic payment account with a payment service provider operating in their territory provided that the consumer does not already hold a payment account allowing him to make use of the payment services listed in paragraph 6 in their territory. Such a right should apply irrespective of the consumer’s financial circumstances.

               3.

               Member States should ensure that at least one payment service provider is in charge of offering basic payment accounts in their jurisdiction. For this purpose, they should take into consideration the geographical location or market share of payment service providers in their jurisdictions. Member States should ensure that this does not create distortions of competition between payment service providers.

               4.

               Member States should take measures to guarantee that payment services providers use transparent, fair and reliable systems when verifying whether the consumer already holds or does not hold a payment account.

               5.

               Member States should ensure that where an application for access to a basic payment account is refused, the payment service provider immediately informs the consumer of the grounds and the justification for such a refusal, in writing and free of charge. Limitations to this right to information may be made by legislative measures where such a limitation constitutes a necessary and proportionate measure to safeguard the objectives of national security or public policy.

      SECTION III

      Characteristics of a basic payment account

               6.

               A basic payment account should include the following payment services:

                           (a)

                           services enabling all the operations required for the opening, operating and closing of a payment account;

                           (b)

                           services enabling money to be placed on a payment account;

                           (c)

                           services enabling cash withdrawals from a payment account;

                           (d)

                           execution of payment transactions, including transfers of funds in and out of a payment account with the consumer’s payment service provider or with another service provider following:

                                       (i)

                                       the execution of direct debit;

                                       (ii)

                                       the execution of payment transactions through a payment card that does not allow the execution of payment transactions that would exceed the current balance of the payment account;

                                       (iii)

                                       the execution of credit transfers.

               7.

               Access to a basic payment account should not be made conditional on the purchase of additional services.

               8.

               The payment service provider should not offer, explicitly or tacitly, any overdraft facilities in conjunction with a basic payment account. A payment order to the consumer’s payment service provider should not be executed where such an execution would result in a negative balance of the consumer’s basic payment account.

      SECTION IV

      Associated charges

               9.

               Member States should ensure that a basic payment account is provided either free of charge or at a reasonable charge.

               10.

               Where a payment service provider charges the consumer for the opening, operating and closing of a basic payment account or for the use of one, some or all services listed in paragraph 6, the total amount of charges to the consumer should be reasonable.

               11.

               Any additional fees that the payment service provider may charge in relation to the basic payment account contract, including those resulting from non-compliance with the consumer’s commitments laid down in the contract, should be reasonable.

               12.

               Member States should establish what constitutes a reasonable charge according to one or several of the following criteria:

                           (a)

                           national income levels;

                           (b)

                           average charges associated with payment accounts in that Member State;

                           (c)

                           total costs relating to the provision of the basic payment account;

                           (d)

                           national consumer prices.

      SECTION V

      General information

               13.

               Member States should launch campaigns raising awareness among the public about the availability of basic payment accounts, their pricing conditions, the procedures to be followed in order to exercise the right to access basic payment accounts and the methods for having access to an out-of-court complaint and redress mechanism.

               14.

               Member States should ensure that payment service providers make information available to consumers about the specific features of the basic payment accounts on offer, their associated charges and their conditions of use. The consumer should also be informed that the purchase of additional services is not compulsory to access a basic payment account.

      SECTION VI

      Supervision and out-of-court dispute resolution mechanisms

               15.

               Member States should designate competent authorities to ensure and monitor effective compliance with the principles set out in this Recommendation. Those designated competent authorities should be independent from payment service providers.

               16.

               Member States should ensure that appropriate and effective complaints and redress procedures are established for the out-of-court settlement of disputes concerning the rights and obligations established under the principles set out in this Recommendation between payment service providers and consumers, using existing bodies where appropriate. Member States should further ensure that all payment service providers responsible for providing basic payment accounts adhere to one or more such bodies implementing such complaint and redress procedures.

               17.

               Member States should ensure that the bodies referred to in paragraph 16 actively cooperate in the resolution of cross-border disputes.

      SECTION VII

      Statistical information

               18.

               Member States should ensure that payment services providers provide national authorities with reliable information at least on the number of basic payment accounts opened, the number of applications for basic payment accounts refused and the grounds of such refusals, the number of terminations of such accounts as well as the charges associated to basic payment accounts on an annual basis. Such information should be provided in an aggregated form.

               19.

               On an annual basis and for the first time by 1 July 2012 at the latest, Member States are invited to provide the Commission with information on the number of basic payment accounts opened, the number of applications for basic payment accounts refused and the grounds of such refusals, the number of terminations of such accounts as well as the charges associated to basic payment accounts.

      SECTION VIII

      Final provisions

               20.

               Member States are invited to take the necessary measures to ensure the application of this Recommendation at the latest 6 months after its publication and to notify the Commission of any measures taken in accordance with this Recommendation.

               21.

               This Recommendation is addressed to the Member States.

      Done at Brussels, 18 July 2011.

            For the Commission

         Michel BARNIER

            Member of the Commission

      (1)  OJ L 319, 5.12.2007, p. 1.

      (2)  OJ L 309, 25.11.2005, p. 15.

      (3)  OJ L 281, 23.11.1995, p. 31.


Avis juridique important

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31997H0479

97/479/EC: Council Recommendation of 7 July 1997 on the broad guidelines of the economic policies of the Member States and of the Community

Official Journal L 209 , 02/08/1997 P. 0012 - 0018

COUNCIL RECOMMENDATION of 7 July 1997 on the broad guidelines of the economic policies of the Member States and of the Community (97/479/EC)THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 103 (2) thereof,Having regard to the recommendation from the Commission,Having regard to the conclusions of the European Council in Amsterdam of 16 and 17 June 1997,HEREBY RECOMMENDS:1. Main objectives: growth, employment and convergence Since the summer of 1996, when the previous Guidelines were adopted, a moderate recovery in economic activity has taken hold in the Community. Supply-side fundamentals continue to improve whereas demand prospects are brightening. These developments in combination with an increasingly well-balanced macroeconomic policy mix and the emerging improvement in confidence should allow for a gradual strengthening in output growth to about its trend rate this year and to well above trend next year.In the present environment, two fundamental policy concerns should be given prominence, with success on both fronts being mutually reinforcing. Firstly, although employment is expected to increase moderately in the short run, there is a need to raise the Community's low employment rate and to reduce unemployment significantly as emphasized in the Dublin Declaration on employment: 'The Jobs Challenge`. Secondly, despite appreciable strides in recent years towards the goals of price stability and sustainable public finances, further progress is required. This also contributes to achieving and maintaining a high degree of convergence so that a significant number of Member States will be in a position to participate in Economic and Monetary Union (EMU) as from 1 January 1999. In the coming quarters, it is of crucial importance to avoid any doubt about the strict application of the Maastricht criteria and the 1999 launch date for the single currency so as to reassure European citizens and businesses that the opportunities brought by EMU will indeed be seized, thus fostering growth and employment. Since the pursuit of sounder budgetary positions will bring important growth and employment benefits over the medium term, continuing budgetary consolidation efforts are in the interest of all Member States.With the single Market and EMU, the Community is becoming one of the most important economic entities in the world. Its medium to longer term potential in terms of technological progress, labour and wealth creation is considerable. In order to exploit fully this potential for raising the standard of living, the Community must progressively achieve a high employment rate. Such a performance would also help to safeguard the sustainability of pension schemes, in a reformed manner, which form an integral part of the social protection systems in the Member States.Restoring a sustained, high rate of non-inflationary growth, based on sound public finances, will create a favourable environment, both from a political and social point of view, for dealing with the Community's unemployment problem.However, since structural deficiencies continue to restrain both growth and the degree to which growth can be translated into additional employment, most Member States need to implement structural reforms.A high employment rate can be achieved only if productive capacity is large enough. The current investment ratio does not seem to provide for this. It is essential therefore that the currently favourable investment conditions, in terms of high profitability and low interest rates, are maintained. In addition, the realization of the transeuropean transport, energy and communication networks should be actively pursued, with the existing Community financial instruments and the European Investment Bank (EIB) playing a key role and with a greater involvement of the private sector. Investment in human resources, knowledge and skills can also help in developing stronger employment growth as also emphasized in the Commission's report 'Europe as a economic entity`.Against this background, the Member States and the Community are urged, in accordance with Article 102a of the Treaty, to conduct their economic policies with a view to making significant progress towards sustainable, non-inflationary growth respecting the environment and a high level of employment, which are among the objectives stipulated in Article 2 of the Treaty. To this end, they are also called upon to coordinate their policies (Articles 3a and 103) within the context of increased integration of their economies.2. Growth and stability-oriented macroeconomic policy mix The present Guidelines reaffirm that the achievement of sustained, investment-supported output growth and job creation over the medium term without inflationary tensions continues to require a common macroeconomic policy strategy which builds further on the following three elements, as formulated in the 1996 Guidelines:- 'A stability-oriented monetary policy whose task is not undermined by inappropriate budgetary and wage developments,- sustained effort to consolidate the public finances in most Member States consistent with the objectives of their convergence programmes,- nominal wage trends consistent with the price stability objective; at the same time, real wage developments should be below the increase in productivity in order to strengthen the profitability of employment-creating investment.The more the stability task of monetary policy is facilitated by appropriate budgetary measures and wage developments, the more monetary conditions, including exchange rates and long-term interest rates, will be favourable to growth and employment.`The recommendation on nominal wage trends can be considered, where appropriate, according to the past trends in the share of wages in the total added value.With regard to medium-term prospects, EMU will lock in the fundamental change in the macroeconomic policy mix which has been progressively achieved in the Community and which has to be taken fully into account by the social partners and economic agents.(i) A single monetary policy under the responsibility of an independent European Central Bank will have price stability as its primary objective while, without prejudice to this objective, supporting the general economic policies in the Community so as to contribute to the achievement of the objectives laid down in Article 2 of the Treaty.(ii) The Treaty provisions in the field of budgetary policy (Articles 104 to 104c) and the Stability and Growth Pact will ensure sound and disciplined budgetary policies. Subject to these legal provisions, responsibility for budgetary policies will reside with the sovereign national governments which will have to coordinate their policies in the framework of the Broad Economic Policy Guidelines.(iii) As regards wages, which are determined by autonomous social partners according to individual countries' practices, stability-oriented monetary and budgetary policies and the impossibility of exchange rate movements within the euro area will reinforce both the conditions and the incentives for an adequate evolution. These incentives should also be strengthened by an intensified social dialogue with all relevant parties, where possible and according to prevailing traditions, at the national level. A well-functioning wage formation process is a necessary requirement for high economic growth and reduces unemployment. At the Community level, the Commission, in accordance with Article 188b, will continue to develop the social dialogue, notably on macroeconomic policy issues, with a view to building on the common understanding of the economic policy strategy laid down in the Guidelines. The European social partners' contribution on the macroeconomic framework transmitted to the Dublin European Council constitutes an important step in the right direction which should be encouraged.A cooperative application by everyone involved in economic decision making of this new framework will help to establish the conditions for sustained, high and employment-creating growth in the Community.3. Price and exchange rate stability Price stability The Community has made considerable headway towards price stability and inflation convergence which is an essential requirement both for achieving sustained medium-term growth and for adopting a single currency. Inflation in the Community on average is expected to fall to 2 ¼ % in 1997, the lowest rate since the Community's inception. In the EMU perspective, Member States should aim at price stability and to target such a level over the medium term.In nearly all Member States, the rate of inflation was low or came down significantly in the early part of 1997. In April 1997, fourteen Member States had an inflation rate (1) of 2 % or less.Inflation fell rapidly in recent months in some Member States (in particular Spain, Italy and Portugal), but it is not yet reflected fully in their average rate of inflation observed over the last year (2). In April 1997, the average rate of inflation observed over the last year was at or below 2 % in nine Member States (Belgium, Denmark, Germany, France, Luxembourg, the Netherlands, Austria, Finland and Sweden); it was between 2 and 2,5 % in Ireland and the United Kingdom (3); and it was around 3 % in Spain, Italy and Portugal. Provided the good recent inflation performance in the latter countries is maintained, the average rate of inflation observed over one year will decline in the months ahead.In Greece, where substantial progress in reducing inflation has been made over recent years, reinforced efforts are needed in order to bring inflation down to the official inflation targets of 4,5 per cent by the end of 1997 and to below 3 per cent by the end of 1998.Exchange rate stability In accordance with Article 109m, all Member States must continue to treat their exchange-rate policies as a matter of common interest. Finland and Italy entered the exchange-rate mechanism (ERM) in the autumn of last year and a significant majority of ERM currencies have registered a remarkable stability. Sounder and more credible economic policies, including budgetary policies, have contributed to a more appropriate alignment of exchange rates within the Community. In this context, as well as with a view to participation in EMU, it is imperative that Member States maintain - and where appropriate intensify - their commitments to stability-oriented macroeconomic policies. For countries which are not currently participating in the ERM, these policies would also contribute to creating the conditions for making such participation possible. Sound macroeconomic policy management creates the conditions for stable exchange rates and low long-term interest rates within the Community and contributes to a stable international monetary system.4. Sound public finances In the Community as a whole, the actual budget deficit declined from 5 % of GDP in 1995 to 4,3 % of GDP in 1996. Slow economic growth in 1996 made efforts at budgetary consolidation more difficult and masked the underlying improvement which was achieved. On the basis of the budget measures decided upon until mid-April 1997, the net borrowing of general government in the Community as a whole is likely to fall to just below 3 % of GDP in 1997, declining further to 2,5 % of GDP in 1998.In their budgets for 1997, a large majority of Member States have taken significant measures to reduce their budget deficits to 3 % of GDP or less. It is of paramount importance that Member States rigorously implement these budgets and take immediate corrective action in the event of slippage from budgetary targets. As regards the budgets for 1998, an enactment of additional deficit-reducing measures is required in most Member States in order to achieve their convergence programme targets. This would serve to provide the needed confidence about the sustainability of the budgetary adjustment, especially in those countries where the budget deficit is not expected to be clearly below 3 % of GDP in 1997 or where the 1997 budget contained temporary measures or where the ratio of debt to GDP is not diminishing sufficiently and approaching the reference value at a satisfactory pace. This resolve is needed not only to comply with the Maastricht budgetary criteria but also to make further progress towards the attainment, over the medium-term, of the objective of a budgetary position close to balance or in surplus as referred to in the Stability and Growth Pact, thereby safeguarding a growth and stability-oriented macroeconomic policy mix.It is necessary that budgetary adjustment programmes are credible and sustainable. The burden of adjustment should be allocated in a fair and just way. To be credible, it is important that programmes are transparent. Transparency requires that commonly agreed accounting rules and economic principles are strictly applied. Furthermore, annual budgets and medium-term budgetary projections should clearly indicate the underlying economic assumptions. To be sustainable, it is essential that deficit-reducing measures form part of a clearly stated medium-term strategy, including necessary structural reforms as stated in convergence programmes and from the beginning of Stage 3 in the stability or convergence programmes. These programmes should be closely monitored at the Community level.Realizing the economic rewards of budgetary consolidation crucially hinges upon the quality of the measures taken. In this respect, the present Guidelines reaffirm the general principles which have been identified in previous Guidelines. Firstly, in most Member States, it is desirable to give more prominence to expenditure restraint than to an increase in the overall tax burden, taking account, where necessary, of the relationships between systems for social transfers and the tax system. In these Member States action should focus on structural measures to control better spending on public consumption, public pension provisions, health care, passive labour market measures and subsidies. If tax increases are unavoidable, care should be taken to minimize the adverse effects on growth and employment and to avoid a revival of inflationary pressures. Secondly, to the extent possible and without threatening the necessary reduction in budget deficits, government spending priorities may favour productive activities such as investment in infrastructure, human capital and active labour market initiatives. Thirdly, the desired reduction in the tax or social contribution burden in most Member States should be carried out consistently with the achievement and maintenance of sound budget balances. Demographic changes in Member States will put strain on public expenditure over the next years. In this respect, Member States should review the financial sustainability of their social protection and public pension schemes and timely implement reforms.Given the interrelationship between taxation policy on the one hand and the Single Market, EMU and the fight against unemployment on the other, Member States stand to gain from increased cooperation in tax measures. Harmful competition between the tax regimes of the different Member States should be avoided. In this respect, Member States are called upon to examine, among other possibilities, the establishment of a code of conduct, setting out politically binding principles of fair tax competition.As regards individual Member States, five - Denmark, Ireland, Luxembourg, the Netherlands and Finland - already respected the 3 % reference value in 1996. In Denmark where the budget balance is expected to turn positive this year, it is important to consolidate this performance over the business cycle and to keep the public debt-to-GDP ratio on a steady downward trajectory. Ireland should take advantage of the current strong growth phase to intensify efforts to restrain public expenditure, thereby making further progress towards a balanced budgetary position. A continuation of the restrained expenditure policy is also essential in the Netherlands and Finland, with a particular focus needed on social security transfers, offering the opportunity to lower further non-wage labour costs, income taxes or other employment-impeding taxes.In Belgium, the budget deficit is expected to reach 3 % of GDP or less in 1997. On the basis of current policies, the deficit is likely to fall further in 1998. To pursue further budgetary consolidation, the Belgian government should strictly adhere to its new convergence programme. Particular attention should be given to ensuring sound social security accounts, with key elements being the introduction of effective mechanisms to control better health care spending and the continued pursuit of pension reforms.In Germany, the budget deficit is expected to reach 3 % of GDP or less in 1997. On the basis of current policies, the deficit is likely to fall slightly further in 1998. The German government has made a firm commitment to take all the necessary measures to respect the 3 % reference value in 1997 and should take the necessary action to arrest the upward trend of the public debt-to-GDP ratio. The pace of budgetary consolidation should be maintained in 1998 in line with the new convergence programme. Continued budgetary consolidation should focus on a further reduction in the share of government spending in the economy - including reforms in the tax and social security systems. This could lead to a relief in the tax and contribution burden without threatening a strict adherence to the budgetary objectives of the new convergence programme.In Spain, the budget deficit is expected to reach 3 % of GDP or less in 1997. On the basis of current policies, the deficit is likely to fall slightly further in 1998. In their 1998 budget, the Spanish authorities, which are fully committed to reaching the deficit target of 3 % of GDP in 1997, should pursue further budgetary consolidation as envisaged in the new convergence programme. It is important to continue the implementation of structural deficit-reducing measures, particularly to curb current expenditure and improve the efficiency in budgetary management.In France, the budget deficit is expected to reach 3 % of GDP or less in 1997. On the basis of current policies, the deficit might not fall significantly further in 1998. It is essential that budgetary consolidation should be put on a sustainable basis over the medium term by implementing its recently agreed convergence programme without fail. In particular, it is necessary to contain health spending and to balance the social security accounts and to ensure that any further tax reductions, in themselves supportive to growth and employment, will not slow down the pace of deficit reduction.In Italy, with the new measures taken in March, the budget deficit is expected to reach 3 % of GDP in 1997. The Italian authorities are urged to take all necessary measures to ensure that this target is reached. In order to achieve a reduction of the public deficit below 3 % in 1998 and in the following years, it is essential to fully implement the recently approved convergence programme. The objectives set out by the programme should be considered by the Italian government as ceilings, with a view to preventing shortfalls and to fostering faster decline in the government debt ration. In the 1998 budget, prominence should be given to measures with a permanent effect on deficit reduction, including structural measures, as the latter will also have a favourable impact on the efficiency of the entire economic system. Of crucial importance is the reform of the welfare state and the Italian tax system.In Austria, the budget deficit is expected to reach 3 % of GDP or less in 1997. On the basis of current policies, the deficit is likely to fall slightly further in 1998. The Austrian government is urged to take all the necessary measures to meet its budget deficit target of 3 % of GDP in 1997 and to secure the sustainability of its budgetary consolidation efforts in subsequent years through a programme of ongoing and, where necessary, reinforced structural adjustments.In Portugal, the budget deficit is expected to reach 3 % of GDP or less in 1997. In their 1998 budget, the Portuguese authorities, which are fully committed to reaching the deficit target of 2,9 % of GDP in 1997, should pursue further budgetary consolidation as envisaged in the new convergence programme. On the basis of current policies, the deficit is likely to fall slightly further in 1998. The new strategic agreement between the government and the social partners should be strictly complied with in order to achieve significant progress in reforming public administration and the social security and taxation systems.In Sweden, the budget deficit is expected to be less than 3 % of GDP in 1997. On the basis of current policies, the deficit is likely to fall considerably further in 1998. Sweden should continue to implement the convergence programme implying improved public finances as well as carry on the regular follow-up of the programme.In the United Kingdom, the budget deficit is expected to reach 3 % of GDP or less in 1997. On the basis of the previous Government's projections, the deficit is projected to fall further in 1998. It is recommended that the new Government establish an effective framework establishing sustainable fiscal consolidation.As regards Greece, where announced measures are expected to lead to a further reduction in the government budget deficit in 1997, sustained efforts on a wide range of fronts are required in order to meet the targets of the convergence programme, including reinforced efforts to widen the tax base, to increase the efficiency of the tax administration and of the tax collection system, to curb government spending and to pursue and extend privatization plans. The deficit is expected to fall further in 1998.Just in the same way as the Member States, the Community also is called upon to continue to maintain strict budgetary discipline. Strict budgetary discipline must be applied to all categories of the financial perspectives, while respecting the Interinstitutional Agreement on budget discipline and improvement of the budget procedure.5. Better functioning product and services markets In order to safeguard and promote the EC's competitiveness, employment and living standards in a world of free trade and constant technological change, it is essential that Member States and the Community, in line with the Brad Guidelines for Economic Policies, intensify their efforts to modernize their markets for goods, services and labour. In order to increase the ability of the Member States' economies to adapt to changing conditions and to enhance the growth potential, there is also a need to promote innovation, research and development and to improve education and training systems. To increase the efficiency of environmental policies contributing to economically and environmentally sustainable developments, they should rely on more market-based instruments both at the national level and - if EU-wide action appears necessary - at Community level.As part of the strategy to foster growth and employment, while achieving price stability, it is essential to improve the operation of product and service markets, to stimulate competition, to foster invention and innovation and to ensure efficient price setting. This was the rationale for the Single Market Programme (SMP), the importance of which has clearly been highlighted in the Commission's recent evaluation (4). The conclusion of that evaluation was that on the one hand Member States' product markets are now generally highly integrated; on the other hand, the markets for services are less integrated, although the situation has improved significantly since the start of the SMP. Particular problems clearly remain. Services, especially insurance and banking as well as construction, should become the subject of more attention, particularly on the need to fully implement Single Market legislation. In addition Member States should take steps necessary to increase the efficiency of their public services.Furthermore, product markets associated with public procurement continue to escape the full force of competition; other product markets continue to be excessively regulated by the Member States. Consumer face higher prices as a result. State aids continue to distort markets and blunt competition without any sign of improvement. Product standards, especially the concept of 'mutual recognition` is another area where progress has been too slow. The business environment for SMEs should be improved. In this respect their access to information should be quickened and made more user-friendly and measures should be taken to streamline regulations (the SLIM initiative).Competition in, and the efficiency of, product and service markets will be improved by making the Single Market work better, with additional Member State commitment to: (i) implement fully and ensure proper enforcement of the existing legislative framework, particularly in the telecom sector; (ii) to make further progress on the legal framework in areas such as taxation and company law; (iii) complete the liberalization of the energy markets in the framework of existing directives and directives under negotiation; (iv) reduce the burden of over-regulation and to revise or remove national, market fragmenting measures; and (v) avoid using state aids to postpone essential restructuring. The Commission's Action Plan on the Single Market proposes a number of concrete actions that should be in place before 1 January 1999 to redynamize the Single Market.The Community should further reform its own policies in accordance with the requirement in Article 102a of the Treaty that the Member States and the Community shall act in accordance with the principle of an open market economy with free competition, favouring an efficient allocation of resources, and in compliance with the principles set out in Article 3a.6. Fostering labour market reforms and investment in knowledge The positive experience of a number of Member States permits some important policy conclusions to be drawn both on the content and on the implementation of reforms. Firstly, structural reforms need to be comprehensive in scope, as opposed to limited or occasional measures, so as to address in a coherent manner the complex issue of incentives in creating and taking up a job. This approach allows policy complementarities to be exploited, thereby increasing the overall effectiveness of reforms and, by enhancing their social and political acceptability, reducing the likelihood of policy reversal. Secondly, mechanisms to monitor the impact of reforms on the labour market and on employment help asses the effectiveness of the reform and indicate the need for possible changes in priorities or implementation. As a result, the multi-annual employment programmes need to focus more on the interplay between the Guidelines and specific labour market measures whereas, the joint Employment Reports, which monitor their application, need to pay particular attention to the identification of good practices arising from the Member States policies.A wide array of measures aimed at reinforcing labour market efficiency have been adopted in recent years at the national level and important reforms are currently under discussion in a number of Member States. This process should continue and, where necessary, be intensified. In this context, the challenge is to reconcile the maintenance of cohesive societies and the need to enhance job creation. Priority should be given to:(i) higher employment growth fostered by the maintenance of appropriate wage trends and by wages that better take into account differences qualifications and regions. This is an important task for the social partners;(ii) reductions in non-wage labour costs and lower income taxes which maximize job opportunities;(iii) reform of the taxation and social protection systems, which should be linked to improving the functioning of labour markets;(iv) new patterns of work organization, including more flexible working-time arrangements, tailored to the specific needs of firms and workers; greater use of voluntary part-time work and the promotion of local employment initiatives;(v) adaptation of the whole educational system - including vocational training - both to the needs of markets and to the improvement of human capital, thereby fostering the growth potential of the economy. In this respect, priority should be given to improving the employability of the unemployed, in particular low skilled, inexperienced labour, and to reducing skill mismatches on the labour market by providing training better fitted to the changing needs of the labour market.In addition, these reforms need to be supported by a stronger employment orientation in other policies. In particular, measures undertaken with the assistance of the Community's structural funds should also fit into the global employment strategy and the multi-annual employment programmes of the Member States.Done at Brussels, 7 July 1997.For the CouncilThe PresidentJ.-C. JUNCKER(1) As measured by the latest monthly harmonized index of consumer prices (HICP) relative to the same month one year earlier.(2) As measured by the arithmetic average of the latest twelve monthly harmonized indices (HICP) relative to the arithmetic average of the twelve monthly harmonized indices of the previous period.(3) For Ireland and the United Kingdom, the assessment is based on the Commission's own estimates since both countries have not yet published HICP data in a manner which allows the calculation.(4) See Commission Communication on 'The impact and effectiveness of the Single Market` (COM(95)520, October 1996) and 'Economic Evaluation of the Internal Market` (European Economy, Reports and Studies, No 4, 1996).