Avis juridique important

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52004SC0824

Recommendation for a Council opinion in accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 on the convergence programme of Slovenia, 2004-2007  /* SEC/2004/0824 final */

Recommendation for a COUNCIL OPINION in accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 on the convergence programme of Slovenia, 2004-2007(presented by the Commission)EXPLANATORY MEMORANDUMCouncil Regulation (EC) No 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies [1] stipulates that non-participating Member States, that is, those which have not adopted the single currency, have to submit convergence programmes to the Council and the Commission for the purpose of multilateral surveillance at regular intervals under Article 99 of the Treaty.[1]  OJ L 209, 2.8.1997. All the documents referred to in this text can be found at the following websitehttp://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm.In accordance with Article 9 of this Regulation, the Council has to examine each convergence programme based on assessments prepared by the Commission and the Committee set up by Article 114 of the Treaty (the Economic and Financial Committee). On the basis of a recommendation from the Commission and after consulting the Economic and Financial Committee, the Council is required to deliver an opinion, following its examination of the programme. According to the Regulation, Member States need to submit annual updates of their convergence programmes, which may also be examined by the Council in accordance with these same procedures.The ten countries that joined the EU on 1 May 2004 have a derogation and thus do not yet participate in the single currency. They committed themselves to submitting their convergence programmes by 15 May 2004 and a first update thereof towards the end of 2004.Slovenia's convergence programme covering the period 2004-2007 was submitted on 14 May 2004. The Commission services have carried out a technical evaluation of this programme, taking into account the results of the Spring 2004 forecasts and having regard to the Code of Conduct [2] and the principles laid down in the Communication from the Commission to the Council and the European Parliament of 27 November 2002 on strengthening the co-ordination of budgetary policies [3]. This evaluation warrants the following assessment:[2]  Revised Opinion of the Economic and Financial Committee on the content and format of stability and convergence programmes, endorsed by the ECOFIN Council on 10.07.2001[3]  COM(2002) 668 final, 27.11.2002On 14 May 2004, Slovenia submitted its first convergence programme, covering the period 2004-2007. It aspires to an early ERM II entry, by the end of 2004 at the latest, in order to introduce the euro at the beginning of 2007.The programme largely complies with the data requirements of the revised "code of conduct on the content and format of stability and convergence programmes" [4].[4]  The delimitation of general government has not been applied completely and accrual accounting needs to be further improved.The macro-economic scenario underlying the convergence programme has been revised downwards since the 2003 pre-accession economic programme but remains slightly more optimistic than the Commission Spring 2004 forecasts until 2005. In particular, projected growth in 2004 appears on the high side of the current forecasting range. For the rest of the period covered the evolution of growth - drawing closer to and from 2006 slightly exceeding potential growth, estimated at 3.7% by the national authorities - seems plausible and is broadly in line with the Commission projections. Forecast to reach 3.3% in 2004 and settle below 3.0% at the end of 2005, the projection for inflation reveals rather favourable expectations of future price developments, while the Commission services take a more cautious view of the disinflation process.The gradual fall in inflation, which began in 2001, accelerated in the second part of 2003. The annual increase of consumer prices reached 4.6% at year-end, decreasing the annual average to 5.7% from 7.5% a year before. The disinflation continued in 2004; in May, however, the year-on-year consumer price inflation rate was 3.9%, up by 0.3 percentage points compared to a month before. The long-term sustainability of lowering inflation - still relatively high at 4.7% on a 12-month moving average basis - needs to be strengthened. A good coordination of economic policies is regarded as key in bringing down inflation durably. Wage moderation and changes to the wage indexation system, in particular, have been identified as essential in supporting the disinflationary process. The new wage adjustment method for 2004-2005, introducing forward-looking indexation mechanisms - with anticipated rather than actual domestic inflation and also taking into account expectations related to EU inflation and euro/tolar exchange rate - should contain wage increases and ease inflationary pressures thereof. The Bank of Slovenia has price stability as its main objective and conducts monetary policy through a combination of interest rate policy and exchange rate management. Since 2003, the interest rates have been cut by a cumulative 350 basis points - leading to a real short-term interest rate of about 2% at present - while the rate of depreciation of the exchange rate against the euro has now been slowed to some 0.1% per month.Without explicitly referring to the Stability and Growth Pact, the programme strives at achieving a stable budgetary position of close-to-balance. However, with a projected deficit of 0.9% of GDP in 2007, a close-to-balance position is only approached by the end of the programme period through a gradual reduction of general government deficit. Tracking a slightly slower path as compared to the 2003 pre-accession programme, the convergence programme envisages a back-loaded fiscal consolidation as it postpones the deficit reduction to the far end of the programme horizon, whereby the adjustment is channelled mostly through a cut in the expenditure ratio.The consolidation path appears credible but is rather unambitious in setting the budgetary targets. The convergence programme fails to provide the details and, especially, the quantitative impact of the planned budgetary measures is missing. However, compared to the 2003 pre-accession programme, the consolidation strategy seems to have remained largely unchanged. It envisages the restructuring of general government expenditure and revenue so as to enhance budgetary flexibility. In particular, reducing mandatory budget spending is deemed necessary in order to cope with financial commitments of EU and NATO membership, which the authorities seem to regard as the sources of additional pressure on the budget while the share of mandatory expenditure accounts for more than 80% of the budget. The government has committed itself to meet the targets by gradually lowering the cyclically-adjusted deficit and will, in adverse circumstances, allow the working of automatic stabilisers only on a limited scale (in the order of 0.2% of GDP, according to the implementation bill to the 2004 budget). Given that the projected budget deficit is just slightly below 2% of GDP in the period 2004-2005, there may not be a sufficient safety margin against breaching the 3% of GDP deficit threshold should the authorities not succeed in limiting the play of fiscal stabilisers. Assuming potential setbacks related to downside economic developments, similar to the ones in the recent past, the budgetary outcome could be worse than expected.Gross public debt is relatively low and will remain so over the programme period. In 2003, the debt-to-GDP ratio rose to 28.6% of GDP. Running a persistent primary deficit, the government anticipates a further increase in the debt ratio in the first two years, peaking at 29.5% of GDP in 2005. By 2007, the debt is forecast to return to 28.4% of GDP as nominal GDP growth is projected to be higher than the interest rate thereby facilitating the stabilisation of debt. Furthermore, the authorities consider the maturity and currency structure of debt portfolio appropriate since a long-term repayment profile spreads evenly over time with a growing share of tolar-denominated debt and external debt being predominantly euro-denominated.The programme briefly reviews the government's structural reform agenda which focuses on enhancing the competitiveness of the economy by increasing the share of R&D expenditures in the budget. It also announces further measures to sustain economic growth, e.g. promoting job-creation oriented investment and removing structural rigidities in the labour market. However, the programme does not dwell upon the specifics of the restructuring process; policy goals seem fairly general and are only exceptionally accompanied by well elaborated measures. Budgetary implications cannot be unambiguously discerned since no attempt has been made to quantify the planned structural reforms in the projections of the main fiscal aggregates.Slovenia faces risks of budgetary imbalances in meeting the costs of an ageing population. Implementing thoroughly the pension reform and putting in place a stable health-care system together with securing an adequate primary surplus are essential for placing public finances on a sustainable footing.Table: Comparison of key macroeconomic and budgetary projections>TABLE POSITION>Based on this assessment, the Commission has adopted the attached recommendation for a Council Opinion on the convergence programme of Slovenia and is forwarding it to the Council.Recommendation for a COUNCIL OPINION in accordance with the third paragraph of Art. 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 on the convergence programme of Slovenia, 2004-2007THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community,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 [5], and in particular Article 9(3) thereof,[5]  OJ L 209, 2.8.1997, p. 1. The documents referred to in this text can be found at the following websitehttp://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm.Having regard to the recommendation of the Commission,After consulting the Economic and Financial Committee,HAS DELIVERED THIS OPINION:On [5 July 2004] the Council examined the convergence programme of Slovenia, which covers the period 2004 to 2007. The programme largely complies with the data requirements of the revised "code of conduct on the content and format of stability and convergence programmes".The budgetary strategy underlying the programme aims at achieving sound public finances as defined by a budgetary position of close-to-balance. To this end, the programme envisages a gradual reduction of the general government deficit over the period covered, consistent with a cut in both the revenue and the primary expenditure ratio, the latter through restraint on mandatory expenditure. According to the adjustment path, the deficit halves over the next four years, reaching just below 1% in 2007. While gearing the policy towards a gradual decrease of the structural deficit, the authorities will allow automatic fiscal stabilisers to operate - although to a limited extent - under unfavourable economic conditions.The macro-economic scenario underlying the programme beyond 2005 seems to reflect plausible growth assumptions, forecasting real GDP to grow slightly above potential output. Nevertheless, for 2004 growth is assumed rather favourably. The projection for inflation appears on the low side of the current forecasting range in 2004 but is realistic thereafter provided that economic policies continue to be co-ordinated in the aim to lower inflation durably.Increasing marginally to 1.9% of GDP in 2004 and then declining gradually to 0.9% of GDP by 2007, general government deficits are foreseen to stay below the 3% of GDP reference value in each year. The budgetary targets presented in the programme are not sufficient to ensure the Stability and Growth Pact's medium-term objective of a budgetary position of close to balance; the medium-term objective would only be approached by the end of the programme period. Furthermore, the budgetary outcome could be worse than projected, in particular, given that the downside macroeconomic risks - related to an upbeat growth forecast in 2004 highlighted above - could lead to expenditure overruns experienced in the past. Therefore, the budgetary stance in the programme may not provide a sufficient safety margin against breaching the 3% of GDP deficit threshold with normal macroeconomic fluctuations especially in the initial years of the programme period.Gross public debt is relatively low and will remain so in the future. After increasing to 29.5% of GDP by 2005, the debt ratio is expected to fall back to 28.4% of GDP in 2007. Slovenia faces risks of budgetary imbalances in meeting the costs of an ageing population. Implementing thoroughly the pension reform and putting in place a stable health-care system together with securing an adequate primary surplus are essential for placing public finances on a sustainable footing.Key projections from the convergence programme of Slovenia>TABLE POSITION>


Avis juridique important

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31983H0188

83/188/EEC: Council recommendation of 28 March 1983 concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (1979) (Fifth EDF) for the financial year 1981

Official Journal L 109 , 26/04/1983 P. 0007 - 0007

+++++( 1 ) OJ NO L 347 , 22 . 12 . 1980 , P . 2 .  ( 2 ) OJ NO L 361 , 31 . 12 . 1980 , P . 1 .  ( 3 ) OJ NO L 347 , 22 . 12 . 1980 , P . 210 .  ( 4 ) OJ NO L 101 , 11 . 4 . 1981 , P . 12 .  ( 5 ) OJ NO C 344 , 31 . 12 . 1982 , P . 1 .  COUNCIL RECOMMENDATION OF 28 MARCH 1983 CONCERNING THE DISCHARGE TO BE GIVEN TO THE COMMISSION IN RESPECT OF THE IMPLEMENTATION OF THE OPERATIONS OF THE EUROPEAN DEVELOPMENT FUND ( 1979 ) ( FIFTH EDF ) FOR THE FINANCIAL YEAR 1981 ( 83/188/EEC )  THE COUNCIL OF THE EUROPEAN COMMUNITIES ,  HAVING REGARD TO THE TREATY ESTABLISHING THE EUROPEAN ECONOMIC COMMUNITY , AND IN PARTICULAR ARTICLE 206B THEREOF ,  HAVING REGARD TO THE SECOND ACP-EEC CONVENTION , SIGNED AT LOME ON 31 OCTOBER 1979 ( 1 ) ,  HAVING REGARD TO COUNCIL DECISION 80/1186/EEC OF 16 DECEMBER 1980 ON THE ASSOCIATION OF THE OVERSEAS COUNTRIES AND TERRITORIES WITH THE EUROPEAN ECONOMIC COMMUNITY ( 2 ) ,  HAVING REGARD TO THE 1979 INTERNAL AGREEMENT ON THE FINANCING AND ADMINISTRATION OF COMMUNITY AID ( 3 ) , SIGNED ON 20 NOVEMBER 1979 , AND IN PARTICULAR ARTICLE 29 ( 3 ) THEREOF ,  HAVING REGARD TO THE FINANCIAL REGULATION OF 17 MARCH 1981 APPLICABLE TO THE FIFTH EUROPEAN DEVELOPMENT FUND ( 4 ) , AND IN PARTICULAR ARTICLES 66 TO 70 THEREOF ,  HAVING EXAMINED THE REVENUE AND EXPENDITURE ACCOUNT AND THE BALANCE SHEET RELATING TO THE OPERATIONS OF THE EUROPEAN DEVELOPMENT FUND ( 1979 ) ( FIFTH EDF ) AS AT 31 DECEMBER 1981 AND THE COURT OF AUDITORS' REPORT RELATING TO THE FINANCIAL YEAR 1981 TOGETHER WITH THE COMMISSION'S REPLIES ( 5 ) ,  WHEREAS , PURSUANT TO ARTICLE 29 OF THE INTERNAL AGREEMENT , THE DISCHARGE FOR THE MANAGEMENT OF THE EUROPEAN DEVELOPMENT FUND ( 1979 ) ( FIFTH EDF ) MUST BE GIVEN TO THE COMMISSION ACCORDING TO THE PROCEDURE PROVIDED FOR IN ARTICLE 206 OF THE TREATY ;  WHEREAS THE OVERALL IMPLEMENTATION BY THE COMMISSION OF THE OPERATIONS OF THE EUROPEAN DEVELOPMENT FUND ( 1979 ) ( FIFTH EDF ) DURING THE FINANCIAL YEAR 1981 HAS BEEN SATISFACTORY ,  RECOMMENDS :  THAT THE EUROPEAN PARLIAMENT GIVE THE COMMISSION A DISCHARGE IN RESPECT OF THE IMPLEMENTATION OF THE OPERATIONS OF THE EUROPEAN DEVELOPMENT FUND ( 1979 ) ( FIFTH EDF ) OF THE FINANCIAL YEAR 1981 .  DONE AT BRUSSELS , 28 MARCH 1983 .  FOR THE COUNCIL  THE PRESIDENT  J . ERTL


title: Recommendation of the European Central Bank of 9 December 2011 on the statistical reporting requirements of the European Central Bank in the field of external statistics (ECB/2011/24)

text:
               3.3.2012

               EN

               Official Journal of the European Union

               C 64/1

         RECOMMENDATION OF THE EUROPEAN CENTRAL BANK
   of 9 December 2011
   on the statistical reporting requirements of the European Central Bank in the field of external statistics
   (ECB/2011/24)
   2012/C 64/01
   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, and in particular to Article 5.1 and the third indent of Article 34.1 thereof,
   Having regard to Council Regulation (EC) No 2533/98 of 23 November 1998 concerning the collection of statistical information by the European Central Bank (1), and in particular Article 4 thereof,
   Whereas:

               (1)

               To fulfil its tasks, the European System of Central Banks (ESCB) requires comprehensive and reliable external statistics consisting of balance of payments and international investment position statistics, and the international reserves template, showing the main items affecting monetary conditions and exchange markets in the euro area, and statistics on cross-border shipments of euro banknotes. The statistical requirements of the European Central Bank (ECB) in this area are laid down in Guideline ECB/2011/23 of 9 December 2011 on the statistical reporting requirements of the European Central Bank in the field of external statistics (2).

               (2)

               The first sentence of Article 5.1 of the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the ‘Statute of the ESCB’) requires the ECB, assisted by the national central banks (NCBs), to collect either from the competent authorities other than NCBs, or directly from economic agents, the statistical information necessary for it to undertake the tasks of the ESCB. The second sentence of Article 5.1 provides that for these purposes it will cooperate with the Union institutions or bodies and with the competent authorities of the Member States or third countries and with international organisations. Article 5.2 stipulates that the NCBs will carry out, to the extent possible, the tasks described in Article 5.1.

               (3)

               Information necessary to meet the ECB’s requirements in the field of external statistics may be collected and/or compiled by competent authorities other than NCBs. Therefore, some of the tasks to be undertaken to meet these requirements require cooperation between the ECB or the NCBs and such competent authorities, in line with Article 5.1 of the Statute of the ESCB. Article 4 of Council Regulation (EC) No 2533/98 requires the Member States to organise themselves in the field of statistics and to cooperate fully with the ESCB in order to ensure the fulfilment of the obligations arising out of Article 5 of the Statute of the ESCB.

               (4)

               In cases where, in accordance with national rules and established practices, the reporting agents report to competent authorities other than NCBs, such authorities and their respective NCBs have to cooperate with each other to ensure that the statistical requirements of the ECB are met. In Ireland the Central Statistics Office, and in Malta the National Statistics Office, collect and compile necessary information in the field of external statistics. In order to meet the abovementioned statistical requirements, the Central Bank of Ireland and the Central Statistics Office, and the Central Bank of Malta and the National Statistics Office, should cooperate with each other. Such cooperation should include the establishment of a permanent structure for transmission of data, unless the same result is already achieved by national legislation.

               (5)

               The quality assessment for the euro area balance of payments and international investment position statistics and the international reserves template should be performed in accordance with the ECB Statistics Quality Framework. The NCBs, in cooperation with other competent authorities, where appropriate, should assess the quality of the data contributed by the competent authorities.

               (6)

               According to Article 3a of Regulation (EC) No 2533/98 and the Public Commitment on European Statistics by the European System of Central Banks, the development, production and dissemination of European statistics by the ESCB are governed by the principles of impartiality, objectivity, professional independence, cost-effectiveness, statistical confidentiality, minimisation of the reporting burden and high output quality.

               (7)

               In view of Guideline ECB/2011/23 repealing Guideline ECB/2004/15, it is therefore necessary to replace Recommendation ECB/2004/16 of 16 July 2004 on the statistical reporting requirements of the European Central Bank in the field of balance of payments and international investment position statistics, and the international reserves template (3),

         HAS ADOPTED THIS RECOMMENDATION:
   SECTION I

      Definitions

   For the purposes of this Recommendation the terms ‘external statistics’, ‘balance of payments’, ‘international investment position’ and ‘international reserves template’ shall have the same meaning as specified in Article 1 of Guideline ECB/2011/23.
   SECTION II

      Provision of statistical information to the NCBs

               1.

               In so far as the collection of external statistics is entrusted to the addressees of this Recommendation, the addressees should ensure that the relevant external statistics are made available to the respective NCB in a timely manner in order to enable the latter to comply with their reporting obligations under Articles 2, 3, 5 and 6 of Guideline ECB/2011/23.

               2.

               The information should be made available in accordance with the statistical standards and requirements of the ECB concerning external statistics as laid down in Annexes I, II, III, IV and VI to Guideline ECB/2011/23. Without prejudice to the ECB’s monitoring task as laid down in Annex V to Guideline ECB/2011/23, the addressees of this Recommendation should monitor the quality and reliability of statistical information made available to the respective NCB.

         SECTION III

      Permanent cooperation with respective NCBs

   The addressees of this Recommendation should establish with their respective NCB, in writing, the appropriate modalities of cooperation to ensure a permanent structure for transmission of data that fulfils the statistical standards and requirements of the ECB, unless the same result is already achieved by national legislation.
   SECTION IV

      Final provisions

               1.

               This Recommendation replaces Recommendation ECB/2004/16 from 1 June 2014.

               2.

               References to Recommendation ECB/2004/16 should be construed as references to this Recommendation.

               3.

               This Recommendation is addressed to the Central Statistics Office in Ireland and the National Statistics Office in Malta.

               4.

               This Recommendation shall apply from 1 June 2014.

      Done at Frankfurt am Main, 9 December 2011.

            The President of the ECB

         Mario DRAGHI

      (1)  OJ L 318, 27.11.1998, p. 8.

      (2)  OJ L 65, 3.3.2012, p. 1.

      (3)  OJ C 292, 30.11.2004, p. 21.


title: Commission Recommendation of 23 November 2011 on the revision of targets contained in performance plans under Commission Regulation (EU) No 691/2010  Text with EEA relevance

text:
               29.11.2011

               EN

               Official Journal of the European Union

               C 348/1

         COMMISSION RECOMMENDATION
   of 23 November 2011
   on the revision of targets contained in performance plans under Commission Regulation (EU) No 691/2010
   (Text with EEA relevance)
   2011/C 348/01
   THE EUROPEAN COMMISSION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Article 100(2) thereof,
   Having regard to Commission Regulation (EU) No 691/2010 of 29 July 2010 laying down a performance scheme for air navigation services and network functions and amending Regulation (EC) No 2096/2005 laying down common requirements for the provision of air navigation services (1), and in particular Article 13(3) thereof;
   Whereas:

               (1)

               Commission Regulation (EU) No 691/2010 laying down a performance scheme for air navigation services and network functions and amending Commission Regulation (EC) No 2096/2005 laying down common requirements for the provision of air navigation services, provides for the adoption by the Member State(s) of national or functional airspace block performance plans, including binding national targets or targets at the level of functional airspace blocks ensuring consistency with the European Union-wide performance targets. It also provides that the Commission should assess the consistency of national and functional airspace blocks targets with the European Union-wide performance targets.

               (2)

               Pursuant to Article 13(3) of Commission Regulation (EU) No 691/2010, the Commission may decide to issue a recommendation to the Member State(s) concerned to adopt revised performance targets.

               (3)

               A Performance Review Body was designated by the Commission on 29 July 2010, pursuant to Article 3 of Commission Regulation (EU) No 691/2010, to assist it in the implementation of the performance scheme.

               (4)

               For the setting of national or functional airspace block targets, European Union-wide performance targets for the years 2012 to 2014 were adopted by Commission Decision 2011/121/EU (2). These targets relate to the key performance areas of environment, capacity and cost-efficiency. However, Member States were not required to set binding targets in the areas of safety and environment during the first reference period.

               (5)

               Member States communicated their national plans to the Commission by 5 July 2011, including a plan presented jointly by Belgium and Luxembourg. Denmark and Sweden communicated a plan to the Commission on behalf of their functional airspace block (Danish-Swedish FAB). Belgium, France, Germany, Luxembourg, the Netherlands and Switzerland communicated to the Commission a plan on behalf of their functional airspace block (FABEC).

               (6)

               In July and August 2011, the Performance Review Body assisted the Commission in the assessment of national and functional airspace block performance plans and delivered an assessment report to the Commission on 20 September 2011.

               (7)

               The assessment report of the Performance Review Body took into account the assumptions set out in Article 3 of Decision 2011/121/EU, information publicly available or available in Eurocontrol and also information made available by Member States in national and functional airspace block performance plans.

               (8)

               Having regard to the overriding safety objectives, the assessment made by the Commission of the national and functional airspace block performance plans and targets was based on the criteria laid down in Annex III to Regulation (EU) No 691/2010, in particular the overall situation of each individual Member State, pursuant to paragraph 1(b) of that Annex. It takes account not only of the performance targets required by Regulation (EU) No 691/2010, but also the other performance indicators or targets that may be contained in plans as a result of a national or functional airspace block initiatives.

               (9)

               Member States should adopt revised national or functional airspace block performance targets and appropriate measures for reaching those targets in accordance with the procedure referred to in Article 13(4) of Regulation (EU) No 691/2010.

               (10)

               The revision of capacity targets should take account of the interaction with, and support from, the Network Manager.

               (11)

               Pursuant to Article 13(4) of Commission Regulation (EC) No 1794/2006 (3), Member States should calculate unit rates for the reference period on the basis of the national or functional airspace block performance plans, including the cost-efficiency targets set out in such plans, by 1 November 2011. If revised cost-efficiency targets are adopted after 1 November 2011, unit rates for the reference period should be recalculated on the basis of the final adopted cost-efficiency targets.

               (12)

               Following the publication of the assessment report of the Performance Review Body, a number of Member States had already indicated their intention to take the necessary measures to adopt revised performance targets in line with the Commission's views as expressed in this Recommendation.

               (13)

               When assessing the revised performance targets in accordance with the procedure referred to in Article 14 of Regulation (EU) No 691/2010, this Recommendation will be taken into account as appropriate.

               (14)

               The Commission consulted the Member States concerned by the present Recommendation, in accordance with Article 13(3) of Regulation (EU) No 691/2010.

               (15)

               The measures provided for in this Recommendation are in accordance with the opinion of the Single Sky Committee,

         HAS ADOPTED THIS RECOMMENDATION:

               1.

               The aim of this Recommendation is to request Member States, having regard to the assessments undertaken by the Performance Review Body and the results of contacts under paragraph 5, to adopt, as necessary and/or appropriate, revised performance targets at national or functional airspace block plan level in order to be consistent with, and adequately contribute to, the European Union-wide performance targets adopted by Decision 2011/121/EU for the years 2012 to 2014 (hereinafter the reference period).

               2.

               Based on the recommendations contained in the assessement report of the Performance Review Body, the Commission considers that:

                           (a)

                           capacity targets set by Greece, Spain, Austria, Poland and the United Kingdom in their national plans are not consistent with, and do not adequately contribute to, the European Union-wide targets;

                           (b)

                           the capacity target set by Belgium, Germany, France, Luxembourg and the Netherlands in the plan for the Functional Airspace Block Europe Central (FABEC) is not consistent with, and does not adequately contribute to, the European Union-wide targets;

                           (c)

                           cost-efficiency targets set by Bulgaria, Czech Republic, Germany, Estonia, Ireland, Spain (for its continental en route charging zone), France, Italy, Cyprus, Latvia, Hungary, Malta, Austria, Portugal, Finland, Romania, Slovenia, Slovakia, Sweden and the United Kingdom in their national plans are not consistent with, and do not adequately contribute to, the European Union-wide targets.

               3.

               When adopting revised performance targets, Member States concerned are requested to ensure that the recommendations set out in the assessment report of the Performance Review Body are taken into account.
               In particular, having taken note of the circumstances of each Member State:

                           (a)

                           Greece, Spain, Poland, Austria and the United Kingdom should improve their capacity targets to reach or fall below, by 2014, the following reference values (values as computed by Eurocontrol and used in the assessment report of the Performance Review Body):

                                       —

                                       Greece: 0,26 minute of average delay per flight,

                                       —

                                       Spain: 0,31 minute of average delay per flight,

                                       —

                                       Poland: 0,26 minute of average delay per flight,

                                       —

                                       Austria: 0,23 minute of average delay per flight,

                                       —

                                       United Kingdom: 0,27 minute of average delay per flight;

                           (b)

                           Belgium, Germany, France, Luxembourg and the Netherlands should improve the capacity target for FABEC to reach or fall below, by 2014, the reference value of 0,4 minute of average delay per flight;

                           (c)

                           Member States referred to in paragraph 2 c) should take every opportunity for further improving cost-efficiency targets in national or functional airspace block performance plans during the reference period, in particular with regard to the evolution of the general context, the reduction of the cost of capital and support costs (costs other than those for air traffic controllers in operation), the increase in productivity and the rationalisation of investments in the context of the establishment of functional airspace blocks;

                           (d)

                           Czech Republic, Germany, Estonia, Ireland, Spain, France, Malta, Austria, Slovakia, Finland and the United Kingdom should review the assumptions underlying the risk premium and, consequently, the return on equity, and should provide justifications for the significant increases in the cost of capital;

                           (e)

                           Bulgaria, Czech Republic, Estonia, France, Italy, Latvia, Hungary, Malta, Portugal, Romania, Slovenia, Slovakia, Finland and United Kingdom should re-assess the size of and need for investments necessary to achieve the performance targets over the reference period, taking account of the opportunity for their rationalisation in the context of functional airspace blocks or regional projects.

               4.

               In addition to the recommendations set out in paragraph 3:

                           (a)

                           Member States are requested to specify in national or functional airspace block performance plans the contribution of investments over the reference period to, and impact on, the performance targets by providing references to business cases and/or cost-benefit analyses and describing their relevance in relation to the European ATM Master Plan, in particular as far as the deployment of the first implementation package (IP1) is concerned. This information should be consistent with the information contained in the business plans of air navigation service providers as specified in paragraph (b) of Section 2.2 of Annex I to Commission Regulation (EC) No 2096/2005 (4);

                           (b)

                           Member States are requested to provide the assumptions and rationale for establishing costs which may be deemed out of control in accordance with Article 11a(8) of Regulation (EC) No 1794/2006, with a view to facilitating the necessary adjustments at the end of the reference period;

                           (c)

                           Member States of a functional airspace block, in conjunction with the Performance Review Body, which have not adopted a performance plan with targets at functional airspace block level, are requested to communicate for information to the Commission aggregated performance targets highlighting the consistency at functional airspace block level with the European Union-wide performance targets as specified in Article 5(3) of Regulation (EU) No 691/2010.

               5.

               The Commission, in conjunction with the Performance Review Body, intends to follow up this Recommendation through bilateral and/or mulitlateral contacts with the Member States.

               6.

               This Recommendation is addressed to the Member States.

      Done at Brussels, 23 November 2011.

            For the Commission

         Siim KALLAS

            Vice-President

      (1)  OJ L 201, 3.8.2010, p. 1.

      (2)  OJ L 48, 23.2.2011, p. 16.

      (3)  OJ L 341, 7.12.2006, p. 3.

      (4)  OJ L 335, 21.12.2005, p. 13.


Avis juridique important

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31998H0316

98/316/EC: Council Recommendation of 1 May 1998 in accordance with Article 109j(2) of the Treaty

Official Journal L 139 , 11/05/1998 P. 0021 - 0027

COUNCIL RECOMMENDATION of 1 May 1998 in accordance with Article 109j(2) of the Treaty (98/316/EC)THE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 109j(2) thereof,Having regard to the recommendation from the Commission,Having regard to the report from the Commission,Having regard to the report from the European Monetary Institute,Having regard to the opinion of the European Parliament (1),(1) Whereas the procedure and timetable for taking decisions on the passage to the third stage of economic and monetary union (EMU) are laid down in Article 109j of the Treaty; whereas the Council, meeting in Dublin on 13 December 1996 in the composition of Heads of State or Government, decided that there was not a majority of Member States fulfilling the necessary conditions for the adoption of the single currency, that the Community would not enter the third stage of EMU in 1997 and that the procedure laid down in Article 109j(4) should be applied as early as possible in 1998; whereas, according to Article 109j(4), as by the end of 1997 the date for the beginning of the third stage of EMU has not been set, the third stage shall start on 1 January 1999;(2) Whereas, in accordance with Article 109j(4), the procedure provided for in paragraphs 1 and 2 of that Article, with the exception of the second indent of paragraph 2, has to be repeated;(3) Whereas Article 109j(1) lays down that the reports prepared by the Commission and the European Monetary Institute (EMI) shall include an examination of the compatibility between each Member State's national legislation, including the statutes of its national central bank, and Articles 107 and 108 of the Treaty and the Statute of the European System of Central Banks (ESCB) and shall also examine the achievement of a high degree of sustainable convergence by reference to the fulfilment by each Member State of the following criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the achievement of a high degree of price stability; this will be apparent from a rate of inflation which is close to that of, at most, the three best performing Member States in terms of price stability,- the sustainability of the government financial position; this will be apparent from having achieved a government budgetary position without a deficit that is excessive as determined in accordance with Article 104c(6),- the observance of the normal fluctuation margins provided for by the exchange-rate mechanism of the European Monetary System, for at least two years, without devaluing against the currency of any other Member State,- the durability of convergence achieved by the Member State and of its participation in the exchange-rate mechanism of the European Monetary System being reflected in the long-term interest-rate levels;Whereas these four criteria and the relevant periods over which they are to be respected are developed further in Protocol 6 of the Treaty; whereas the reports of the Commission and the EMI shall also take account of the development of the ecu, the results of the integration of markets, the situation and development of the balances of payments on current account and an examination of the development of unit labour costs and other price indices;(4) Whereas, according to the first indent of Article 109j(2), on the basis of these reports, the Council shall assess, for each Member State, whether it fulfils the necessary conditions for the adoption of a single currency and shall recommend its findings to the Council meeting in the composition of the Heads of State or Government which, after having consulted the European Parliament, in accordance with Article 109j(4), shall confirm which Member States fulfil the necessary conditions for the adoption of the single currency;(5) Whereas Member States' national legislation including the statutes of national central banks shall as necessary be adapted with a view to ensuring compatibility with Articles 107 and 108 of the Treaty and the Statute of the ESCB; whereas such adaptations need to ensure compatibility with the Treaty at the latest at the date of the establishment of the ESCB; whereas the reports of the Commission and the EMI provide a detailed assessment of the compatibility of the legislation of each Member State with Articles 107 and 108 of the Treaty and the Statute of the ESCB; whereas the process of adaptation of national legislation had not been completed in Spain, France, Luxembourg and Austria at the time of presentation of the reports by the Commission and the EMI; whereas since then in Spain and in Austria the necessary legislation has been enacted; whereas Luxembourg and France have taken all the necessary steps to make their national legislation, including the statute of the national central bank, compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB;(6) Whereas, according to Article 1 of Protocol 6 of the Treaty, the criterion on price stability referred to in the first indent of Article 109j(1) of the Treaty shall mean that a Member State has a price performance that is sustainable and an average rate of inflation, observed over a period of one year before the examination, that does not exceed by more than 1,5 percentage points that of, at most, the three best performing Member States in terms of price stability; whereas, for the purpose of the criterion on price stability, inflation will be measured by harmonised indices of consumer price defined in Regulation (EC) No 2494/95 (2); whereas, in order to assess the price stability criterion, a Member State's inflation has been measured by the percentage change in the arithmetic average of 12 monthly indices relative to the arithmetic average of 12 monthly indices of the previous period; whereas in the one-year period ending in January 1998, the three best performing Member States in terms of price stability were France, Ireland and Austria, with inflation rates of, respectively 1,2 %, 1,2 % and 1,1 %; whereas a reference value calculated as the simple arithmetic average of the inflation rates of the three best performing Member States in terms of price stability plus 1,5 percentage points was considered in the reports of the Commission and the EMI; whereas the reference value in the one-year period ending in January 1998 was 2,7 %;(7) Whereas, according to Article 2 of Protocol 6 of the Treaty, the criterion on the government budgetary position referred to in the second indent of Article 109j(1) of the Treaty shall mean that at the time of the current assessment by the Council the Member State is not the subject of a Council decision under Article 104c(6) of the Treaty that an excessive deficit exists;(8) Whereas, in accordance with Article 5 of Protocol 6 of the Treaty, the data used in the current assessment of the fulfilment of the convergence criteria will be provided by the Commission; whereas, for the preparation of this recommendation, the Commission provided data; whereas budgetary data were provided by the Commission after reporting by the Member States by 1 March 1998 in accordance with Regulation (EC) No 3605/93 (3);(9) Whereas during the second stage of EMU no Council decision on the existence of an excessive deficit existed for Ireland and Luxembourg; whereas, according to its Decision of 27 June 1996 under Article 104c(12), the Council abrogated its previous Decision on the existence of an excessive deficit in Denmark; whereas, according to its Decisions of 30 June 1997 under Article 104c(12), the Council abrogated its previous Decisions on the existence of an excessive deficit in the Netherlands and Finland; whereas, according to its Decisions of 1 May 1998 under Article 104c(12), the Council abrogated its previous Decisions on the existence of an excessive deficit in Belgium, Germany, Spain, France, Italy, Austria, Portugal, Sweden and the United Kingdom;(10) Whereas, according to Article 3 of Protocol 6 of the Treaty, the criterion on participation in the exchange-rate mechanism of the European Monetary System referred to in the third indent of Article 109j(1) of the Treaty shall mean that a Member State has respected the normal fluctuation margins provided for by the exchange-rate mechanism (ERM) of the European Monetary System without severe tensions for at least the last two years before the examination. In particular, the Member State shall not have devalued its currency's bilateral central rate against any other Member State's currency on its own initiative for the same period; whereas in assessing the fulfilment of this criterion in their reports, the Commission and the EMI have examined the two-year period ending in February 1998 and have taken into account the decision taken in August 1993 by the ministers and central bank governors of the Member States to widen temporarily the fluctuation margins of the ERM from ± 2,25 % to ± 15 % around the bilateral central rates;(11) Whereas, according to Article 4 of Protocol 6 of the Treaty, the criterion on the convergence of interest rates referred to in the fourth indent of Article 109j(1) of the Treaty shall mean that, observed over a period of one year before the examination, a Member State has had an average nominal long-term interest rate that does not exceed by more than two percentage points that of, at most, the three best performing Member States in terms of price stability; whereas, for the purpose of the criteria on the convergence of interest rates, comparable interest rates on 10-year benchmark government bonds were used; whereas, in order to assess the fulfilment of the interest rate criterion, a reference value calculated as the simple arithmetic average of the nominal long-term interest rates of the three best performing Member States in terms of price stability plus two percentage points was considered in the reports of the Commission and the EMI; whereas the reference value in the one-year period ending in January 1998 was 7,8%;(12) Whereas, in accordance with paragraph 1 of Protocol 11 of the Treaty, the United Kingdom has notified the Council that it does not intend to move to the third stage of EMU on 1 January 1999; whereas by virtue of this notification, paragraphs 4 to 9 of Protocol 11 lay down the provisions applicable to the United Kingdom if and so long as the United Kingdom has not moved to the third stage;(13) Whereas, in accordance with paragraph 1 of Protocol 12 of the Treaty and the Decision taken by the Heads of State or Government in Edinburgh in December 1992, Denmark has notified the Council that it will not participate in the third stage of EMU; whereas by virtue of this notification, all Articles and provisions of the Treaty and the Statute of the ESCB referring to a derogation shall be applicable to Denmark;(14) Whereas by virtue of the above notifications it is not necessary for the Council to make an assessment under Article 109j(2) of the Treaty concerning the United Kingdom and Denmark;(15) Whereas, on the basis of the present recommendations, the Council meeting in the composition of Heads of State or Government, shall confirm which Member States fulfil the necessary conditions for the adoption of the single currency,HEREBY RECOMMENDS THE FOLLOWING:SECTION 1 ASSESSMENTS Article 1 Belgium In Belgium, national legislation, including the statute of the national central bank, is compatible with Articles 107 and 108 of the Treaty and the Statute of the European System of Central Banks (ESCB).Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in Belgium in the year ending in January 1998 stood at 1,4 %, which is below the reference value,- Belgium is not the subject of a Council decision on the existence of an excessive government deficit,- Belgium has been a member of the exchange-rate mechanism (ERM) for the last two years; in that period, the Belgian franc (BEF) has not been subject to severe tensions and Belgium has not devalued, on its own initiative, the BEF bilateral central rate against any other Member State's currency,- in the year ending in January 1998, the long-term interest rate in Belgium was, on average, 5,7 %, which is below the reference value.Belgium has achieved a high degree of sustainable convergence by reference to all four criteria.Consequently, Belgium fulfils the necessary conditions for the adoption of the single currency.Article 2 Germany In Germany, national legislation, including the statute of the national central bank, is compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB.Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in Germany in the year ending in January 1998 stood at 1,4 %, which is below the reference value,- Germany is not the subject of a Council decision on the existence of an excessive government deficit,- Germany has been a member of the ERM for the last two years; in that period, the German mark (DEM) has not been subject to severe tensions and Germany has not devalued, on its own initiative, the DEM bilateral central rate against any other Member State's currency,- in the year ending in January 1998, the long-term interest rate in Germany was, on average, 5,6 %, which is below the reference value.Germany has achieved a high degree of sustainable convergence by reference to all four criteria.Consequently, Germany fulfils the necessary conditions for the adoption of the single currency.Article 3 Greece In Greece, national legislation, including the statute of the national central bank, is compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB.Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in Greece in the year ending in January 1998 stood at 5,2 %, which is above the reference value,- the Council decided on 26 September 1994 that an excessive government deficit exists in Greece and this Decision has not been abrogated,- the currency of Greece did not participate in the ERM in the two years ending in February 1998; during this period, the Greek drachma (GRD) has been relatively stable against the ERM currencies but it has experienced, at times, tensions which have been counteracted by temporary increases in domestic interest rates and by foreign exchange intervention. The GRD joined the ERM in March 1998,- in the year ending in January 1998, the long-term interest rate in Greece was, on average, 9,8 %, which is above the reference value.Greece does not fulfil any of the convergence criteria mentioned in the four indents of Article 109j(1).Consequently, Greece does not fulfil the necessary conditions for the adoption of the single currency.Article 4 Spain In Spain, national legislation, including the statute of the national central bank, is compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB.Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in Spain in the year ending in January 1998 stood at 1,8 %, which is below the reference value,- Spain is not the subject of a Council decision on the existence of an excessive government deficit,- Spain has been a member of the ERM for the last two years; in that period, the Spanish peseta (ESP) has not been subject to severe tensions and Spain has not devalued, on its own initiative, the ESP bilateral central rate against any other Member State's currency,- in the year ending in January 1998 the long-term interest rate in Spain was, on average, 6,3 %, which is below the reference value.Spain has achieved a high degree of sustainable convergence by reference to all four criteria.Consequently, Spain fulfils the necessary conditions for the adoption of the single currency.Article 5 France France has taken all the necessary steps to make its national legislation, including the statute of the national central bank, compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB.Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in France in the year ending in January 1998 stood at 1,2 %, which is below the reference value,- France is not the subject of a Council decision on the existence of an excessive government deficit,- France has been a member of the ERM for the last two years; in that period, the French franc (FRF) has not been subject to severe tensions and France has not devalued, on its own initiative, the FRF bilateral central rate against any other Member State's currency,- in the year ending in January 1998, the long-term interest rate in France was, on average, 5,5 %, which is below the reference value.France has achieved a high degree of sustainable convergence by reference to all four criteria.Consequently, France fulfils the necessary conditions for the adoption of the single currency.Article 6 Ireland In Ireland, national legislation, including the statute of the national central bank, is compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB.Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in Ireland in the year ending in January 1998 stood at 1,2 %, which is below the reference value,- during the second stage of EMU, Ireland was not the subject of a Council decision on the existence of an excessive government deficit,- Ireland has been a member of the ERM for the last two years; in that period, the Irish pound (IEP) has not been subject to severe tensions and the IEP bilateral central rate has not been devalued against any other Member State's currency; on 16 March 1998, at a request of the Irish authorities, the bilateral central rates of the IEP against all other ERM currencies were revalued by 3 %,- in the year ending in January 1998, the long-term interest rate in Ireland was, on average, 6,2 %, which is below the reference value.Ireland has achieved a high degree of sustainable convergence by reference to all four criteria.Consequently, Ireland fulfils the necessary conditions for the adoption of the single currency.Article 7 Italy In Italy, national legislation, including the statute of the national central bank, is compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB.Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in Italy in the year ending in January 1998 stood at 1,8 %, which is below the reference value,- Italy is not the subject of a Council decision on the existence of an excessive government deficit,- Italy rejoined the ERM in November 1996; in the period from March 1996 to November 1996, the Italian lira (ITL) appreciated vis-à-vis the ERM currencies; since it re-entered the ERM, the ITL has not been subject to severe tensions and Italy has not devalued, on its own initiative, the ITL bilateral central rate against any other Member State's currency,- in the year ending in January 1998, the long-term interest rate in Italy was, on average, 6,7 %, which is below the reference value.Italy fulfils the convergence criteria mentioned in the first, second and fourth indents of Article 109j(1); as regards the criterion mentioned in the third indent of Article 109j(1), the ITL, although having rejoined the ERM only in November 1996, has displayed sufficient stability in the last two years. For these reasons, Italy has achieved a high degree of sustainable convergence.Consequently, Italy fulfils the necessary conditions for the adoption of the single currency.Article 8 Luxembourg Luxembourg has taken all the necessary steps to make its national legislation, including the statute of the national central bank, compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB.Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in Luxembourg in the year ending in January 1998 stood at 1,4 %, which is below the reference value,- during the second stage of EMU, Luxembourg was not the subject of a Council decision on the existence of an excessive government deficit,- Luxembourg has been a member of the ERM for the last two years; in that period, the Luxembourg franc (LUF) has not been subject to severe tensions and Luxembourg has not devalued, on its own initiative, the LUF bilateral central rate against any other Member State's currency,- in the year ending in January 1998, the long-term interest rate in Luxembourg was, on average, 5,6 %, which is below the reference value.Luxembourg has achieved a high degree of sustainable convergence by reference to all four criteria.Consequently, Luxembourg fulfils the necessary conditions for the adoption of the single currency.Article 9 The Netherlands In the Netherlands, national legislation, including the statute of the national central bank, is compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB.Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in the Netherlands in the year ending in January 1998 stood at 1,8 %, which is below the reference value,- the Netherlands is not the subject of a Council decision on the existence of an excessive government deficit,- the Netherlands has been a member of the ERM for the last two years; in that period, the Dutch guilder (NLG) has not been subject to severe tensions and the Netherlands has not devalued, on its own initiative, the NLG bilateral central rate against any other Member State's currency,- in the year ending in January 1998, the long-term interest rate in the Netherlands was, on average, 5,5 %, which is below the reference value.The Netherlands has achieved a high degree of sustainable convergence by reference to all four criteria.Consequently, the Netherlands fulfils the necessary conditions for the adoption of the single currency.Article 10 Austria In Austria, national legislation, including the statute of the national central bank, is compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB.Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in Austria in the year ending in January 1998 stood at 1,1 %, which is below the reference value,- Austria is not the subject of a Council decision on the existence of an excessive government deficit,- Austria has been a member of the ERM for the last two years; in that period, the Austrian schilling (ATS) has not been subject to severe tensions and Austria has not devalued, on its own initiative, the ATS bilateral central rate against any other Member State's currency,- in the year ending in January 1998, the long-term interest rate in Austria was, on average, 5,6 %, which is below the reference value.Austria has achieved a high degree of sustainable convergence by reference to all four criteria.Consequently, Austria fulfils the necessary conditions for the adoption of the single currency.Article 11 Portugal In Portugal, national legislation, including the statute of the national central bank, is compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB.Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in Portugal in the year ending in January 1998 stood at 1,8 %, which is below the reference value,- Portugal is not the subject of a Council decision on the existence of an excessive government deficit,- Portugal has been a member of the ERM for the last two years; in that period, the Portuguese escudo (PTE) has not been subject to severe tensions and Portugal has not devalued, on its own initiative, the PTE bilateral central rate against any other Member State's currency,- in the year ending in January 1998, the long-term interest rate in Portugal was, on average, 6,2 %, which is below the reference value.Portugal has achieved a high degree of sustainable convergence by reference to all four criteria.Consequently, Portugal fulfils the necessary conditions for the adoption of the single currency.Article 12 Finland In Finland, national legislation, including the statute of the national central bank, is compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB.Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in Finland in the year ending in January 1998 stood at 1,3 %, which is below the reference value,- Finland is not the subject of a Council decision on the existence of an excessive government deficit,- Finland has been a member of the ERM since October 1996; in the period from March 1996 to October 1996, the Finnish markka (FIM) appreciated vis-à-vis the ERM currencies; since it entered the ERM, the FIM has not been subject to severe tensions and Finland has not devalued, on its own initiative, the FIM bilateral central rate against any other Member State's currency,- in the year ending in January 1998, the long-term interest rate in Finland was, on average, 5,9 %, which is below the reference value.Finland fulfils the convergence criteria mentioned in the first, second and fourth indents of Article 109j(1); as regards the convergence criterion mentioned in the third indent of Article 109j(1), the FIM, although having entered the ERM only in October 1996, has displayed sufficient stability in the last two years. For these reasons, Finland has achieved a high degree of sustainable convergence.Consequently, Finland fulfils the necessary conditions for the adoption of the single currency.Article 13 Sweden In Sweden, national legislation, including the statute of the national central bank, is not compatible with Articles 107 and 108 of the Treaty and the Statute of the ESCB.Regarding the fulfilment of the convergence criteria mentioned in the four indents of Article 109j(1) of the Treaty:- the average inflation rate in Sweden in the year ending in January 1998 stood at 1,9 %, which is below the reference value,- Sweden is not the subject of a Council decision on the existence of an excessive government deficit,- the currency of Sweden has never participated in the ERM; in the two years under review, the Swedish crown (SEK) fluctuated against the ERM currencies reflecting among others the absence of an exchange rate target,- in the year ending in January 1998, the long-term interest rate in Sweden was, on average, 6,5 %, which is below the reference value.Sweden fulfils the convergence criteria mentioned in the first, second and fourth indents of Article 109j(1) but does not fulfil the convergence criterion mentioned in the third indent thereof.Consequently, Sweden does not fulfil the necessary conditions for the adoption of the single currency.SECTION 2 FINDINGS Article 14 In the light of the above, the findings of the Council are that Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, the Netherlands, Austria, Portugal and Finland fulfil the necessary conditions for the adoption of the single currency. The Council recommends that the Council, meeting in the composition of Heads of State or Government, confirm that the said Member States fulfil the necessary conditions for the adoption of the single currency on 1 January 1999.SECTION 3 PUBLICATION Article 15 This recommendation shall be published in the Official Journal of the European Communities.Done at Brussels, 1 May 1998.For the CouncilThe PresidentG. BROWN(1) Opinion delivered on 30 April 1998 (not yet published in the Official Journal).(2) OJ L 257, 27. 10. 1995, p. 1.(3) OJ L 332, 31. 12. 1993, p. 7.


title: RECOMMENDATION FOR A COUNCIL REGULATION (EEC) concluding the Agreement between the EUROPEAN ECONOMIC COMMUNITY and the REPUBLIC OF COLOMBIA on Trade in Textile products (submitted to the Council by the Commission)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (76) 430
Vol. 1976/0129
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Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
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In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
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27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
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erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                              COM(76)430 final.
                                              Brussels , 29 July 1976 .
                         RECOMMENDATION FOR A
                       COUNCIL REGULATION ( EEC )
                concluding the Agreement between the
                    EUROPEAN ECONOMIC COMMUNITY
                                                   i
                                and the
                        REPUBLIC OF COLOMBIA
                                                       I
                   on Trade in Textile products
             ( submitted to the Council "by the Commission)
C0M(76 ) 430 final
 ---pagebreak---                        EXPLANATORY STATEMENT
 1.      By a decision of 1b March 1975 » the Council authorised the Com
mission to open negotiations with the Republic of Colombia for the
 conclusion of an Agreement on trade in textile products .
 2.      In accordance with the above Council decision and in consul
 tation with the Article 113 Committee , the Commission conducted nego
 tiations with Colombia in the months of January , February and April 1976 .
 As a result of these negotiations , a draft Agreement was drawn up and
 initialled on 29 April 1976 .
 3.      The draft Agreement applies to a limited number of textile pro
ducts described in its Annex I. The Community has undertaken , for these
products , not to introduce new quantitative restrictions and to refrain
from invoking the provisions of Article 3 of the MFA , provided that ex
ports to the Community of the products in question do not exceed the
quantitative limits established under the Agreement *
*+.     The central feature of the Agreement consists of a consultation
procedure . Apart from a general provision for consultations to resolve
any problems arising from the application of the Agreement , the Agreement
also contains a special        consultation clause . Under this clause , the
Community may seek consultations with Colombia whenever , for a product
covered by the Agreement , a real risk of market disruption is caused
by Colombian exports of the product in question . Until a mutually satis
factory conclusion has been reached in such consultations , Colombia will
limit its issue of export licences for the product concerned to a level
indicated by the Community , but in any case not lower than 107 % of the
importe recorded in the twelve months ending three months before consul
tation were requested .
5»      The Community invoked the provisions of this clause , as it were
by anticipation , regarding imports r of several products in certain Commu
nity markets . As a result of these consultations Colombia accepted cer
tain export restraints , set out in Annex I to the Agreement .
6.      The Agreement further provides that imports into the Community
of textiles products covered by the Agreement which are for immediate
re-export or for re-export after processing are not to be subject to
quantitative limits under the Agreement . Similarly , certain Colombian
handloom textile products , defined in Article of the Agrement , are
to be admitted into the Community without quantitative limit , subject
to the satisfactory operation of agreed arrangements for certification .
7«      In conformity with the requirements of the Geneva Arrangement ,
provision is. made in the Agreement for carry– over , carry– forward and
inter-category flexibility .
 ---pagebreak--- 3,      The Agreement is to enter into force with effect from
V Janus i' / l 376 . It will remain in force until 31 December 1977 .
9.      In the opinion of the Commission the Agreement negotiated
constitutes a result that is acceptable to the Community ,        Prf-_ _
poses therefore that the Council concludes the Agreement by adopting
the draft Regulation annexed hereto .
 ---pagebreak---                          recommendation for a
                      COUNCIL REGULATION ( EEC ) No
                               of
      concluding the Agreement between the European Economic Community
          and the Republic of Colombia on trade in textile products
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 113 thereof ,
Having regard to the recommendation from the Commission ,
Whereas the Agreement on trade in textile products negotiated bet', 'pen
the European Economic Community and the Republic of Colombia should be
concluded ,
HAS ADOPTED THIS REGULATION :
                                 Article 1
       The Agreement between the European Economic Community and the
Republic of Colombia on trade in textile products is hereby concluded
on behalf of the Community .
       The text of the Agreement is annexed to this Regulation .
                                 Article 2
       The President of the Council shall notify the other Contracting
Party of the completion by the Community of the procedures squired for
the entry into force of the Agreement.
                                 Article 3
       This Regulation shall enter into force on the third day following
its publication in the Official Journal of the European Cormunities .
         This Regulation shall be binding in its entirety and directly
         applicable in all Member States .
         Done at Brussels ,          1976            For the Council
                                                     The President
 ---pagebreak--- AGREEMENT BETWEEN THE REPUBLIC OF
          COLOMBIA
              AND THE
   EUROPEAN ECONOMIC COMMUNITY
       ON TRADE IN TEXTILES <
   ( Text as initialled 29«^»197o )
 ---pagebreak---   The Council of the European Communities
                              of the one part .
  The Government of the Republic of Colombia of the other part ,
 -Desiring to ensure the orderly and equitable developmer * of trade
  in textiles between the European Economic Community, hereinafter
  called "the "Community" and Colombia,
  Having regard to the provisions of the Arrangement regarding
" International Trade in Textiles (hereinafter referred to as the
  Geneva Arrangement ) and especially its Article 4 ,
  Have decided, in a spirit of mutual co-operation and in conformity
 with the said Geneva Arrangement , to conclude this Agreement and
  to this end have designated as their Plenipotentiaries :
 THE COUNCIL OF THE EUROPEAN COMMUNITIES :
 THE GOVERNMENT OP THE REPUBLIC OF COLOMBIA :
 Who have agreed as follows :
                                                        C'?
                                                        •VvLO-
                                                        ■U
 ---pagebreak---                           Article 1
 1„      Tae Parties recognise and confirm vthat , subject to the
 pr^vi.ii'na cf this Agreement and without prejudice to their rights
 and obligations under the General Agreement on Tariffs and Trade ,
 the conduct of their mutual trade in textiles shall be governed
 by the provisions of the Geneva Arrangement .
 2*      This Agreement shall apply to trade in those categories of
 textiles products , originating in and despatched from Colombia ,
 set out in Annex I hereto •
3*      Quantitative limits for the said products have been agreed
between the Parties . Details of the quantities and regions of the
Community to which such limits presently apply are likewise set out
in Annex I hereto . Both Parties recognise that the quantitative
limits agreed in the present negotiations are without prejudice
to the possible future application of Article 5 of this Agreement *
 ---pagebreak---                      Article 2
1.     The Community undertakes , in respect of the oeterorieB of
textiles products to which this Agreement applies , and subject to
the satisfactory operation of this Agreement ,      +<•> 'introduce
new quantitative restrictions and to refrain fron? invoKix..^ the
provisions of Article 3 of the Geneva Arrangement provided that
exports to the Community of such textiles products ori.;.;j.na»../fg in
ahd despatched from Colombia do not exceed t.'>e quant it " : . ve
limitB established under the provisions of this Agre^m " it -,
2.     The Government of Colombia undertakes to take the
appropriate measures to ensure that the quantitative limits
established under this Agreement are not exccsded .
3.     The Community shall not object to the aforementioned
quantitative limits being exceeded in this event of additional
demand developing on the market of the Community , on the under
 standing that any additional quantities       shall be fixed by
 common agreement between both Parties .
 k.    Both Parties undertake to cooperate in imnletnenting the
measures necessary for the purpose of this Article .
                                        \
                                                                 M
 ---pagebreak---                         Article 3
 1.      Imports into the Community of those textile products
 to which this Agreement applies which are for immediate re-export
or for inward processing and subsequent re-export outside the
 Community shall not be subject to quantitative limits established
under this Agreement , provided they are entered as such under an
administrative system of control in force for this purpose within
the Community .
2.      In any case where Community authorities ascertain that imports
described in paragraph 1 above have been retained for consumption
within the Community, the latter will notify the Government of
Colombia on a quarterly basis of the amounts involved . Colombia
shall in such cases and at the request of the Community, charge
such amounts against the quantitative . limit or limits in question
for the current Agreement year or for the next following Agreement
year .
                                                ι
3.      In any case where the competent authorities within the
Community ascertain under an administrative system of control in
force that imports of textiles products to which this Agreement
applies have been charged against quantitative limits established
under this Agreement but subsequently re-exported outside the
Community, the competent authority concerned will inform the Colombian
authorities of the quantities involved and authorise imports of
the same quantities which shall not be charged to the quantitative-^
 limits under the Agreement .                                    \^./f •'
 ---pagebreak---                      Article 4
 1.     The following Colombian textiles products shall , subject to
the conditions indicated hereafter , be admitted into the Community
without quantitative limit :
     (i )    cotton handloom fabrics of cottage industry, containing
             not more than 5% by weight of man-made fibres , being
             fe.brics which are both traditionally of the ki>->d woven
             on a loom and actually woven on a loorn for which the motive
             power is provided entirely by the operators ( that is where
             the three primary movements of weaving, namely sh ?dding,
             picking and beating , are induced by hand or foot and no
             other source of power is used ):
                                                 <
     ( ii )  goods made up by the cottage industry from such cotton handloom
             fabrics ;
     ( iii ) traditional Colombian folklore handicraft textiles products
             cut , sewn or otherwise fabricated by hand in cottages which
             are units of the cottage industry .
2.      Admission into the Community of these products without quantitative
limit shall be eubject to the satisfactory operation of agreed arrange
ments for certification .                                              ^
                                                                M
 ---pagebreak---                              Article 5
1.       Both Parties agree to enter promptly into " consultations with
each other , at the request of either and in conformity with the pro
visions' of the Geneva Arrangement , on any matter concerning their
trade in textiles and in particular on any problems arising from the
application of this Agreement . Consultations held under the provision
of this Article shall be approached by both Parties in a spirit of
compromise and with a view to the conciliation of differences existin
betweefi them *
2.       In view of the desire of the Community and Colombia to avoid ,
on one hand , real risks of market disruption and , on the other hand ,
disruption to the textile trade of Colombia , and having full regard
to the need for equitable treatment of participating countries in the
Geneva Arrangement , the following specific consultation procedure
shall apply to .the products set out in Annex I of this Agreement *
3.       The Community may request consultations with a view to reachii
agreement on an appropriate level of restraint , . where such does not
already exist , for any product set out in Annex I whenever in the vit
of the Community , conditions in any of its markets are 6uch that a
limitation on further trade in any such product may be necessary to e
minate real risks of market disruption ( as defined in Annex A of the
Geneva Arrangement ), The consultation procedure referred to in this
paragraph will only be resorted to sparingly and will be implemented
in a manner consistent with the principles and objectives of the
Geneva Arrangement .                         4
   .   ■ The request for such a consultation shall be accompanied with
a reasonable period of time , by a statement of * he market conditions
in the Community which , in the opinion of the CcumuTiity , make necess
the request for consultations *
5«       Until such time as a mutually satisfac' ; ry solution has been
reached , Colombia undertakes if so requested by the Community , toil
                                                                   ,i'Ù
 ---pagebreak---                               Article 6
      If , having regard to the provisions of the Geneva Arrangement ,
Colombia considers that as a result of the q-v ,.+■•; + «at-i -r e limi *--
established under this Agreement , it is being placed in               inequitable
position as compared with a third country , Colombia may request consul
tations with the Community with a view to taking appropriate action
consistent with both Parties' international rights and obligations .
 ---pagebreak---                             Artide   7
1.     Portions of any quantitative limit established urder this
Agreement which are not used during any Agreement rear <a-*y be carried
over and added to the corresponding quantitative limit in th8 .following
Agreement year , within a limit of 10 % of the li- iite:- '-
2.     Within a limit of 10 % of each of the quantitative Units es
tablished under this Agreement , advance deliveries shall be authorised
from the corresponding quantitative limit established for the following
Agreement year .
3.     Within any one Agreement year , unused portions of quantitative
limits established under this Agreement in reepect of any region of'
the Community market may be transferred to another quantitative limit
established f6r that same' region of the Community market within a
ceiling of 7 % of the recipient quantitative limit .
k,     The preceding flexibility provisions shall not , in any given
Agreement year , result in a quantitative limit for any category being
exceeded by more that 20 $ of the quantitative limit for that category
for that Agreement year .
5»     The flexibility provisions contained in this Article may only ,
be applied by Colombia following written notification to the Community
by the Colombian authorities .
                                                             ./y
 ---pagebreak---                            Article 8
       Colombia shall endeavour to ensure that exports of all tex
tiles products for which quantitative limits may be established
under this Agreement are spaced out as evenly as possible over each
of the Agreement years , due account being taken , in particular , of
seasonal factors *                                             "/
                                                         βχ
 ---pagebreak---                                1
                         Article 9
       The two Parties agree to exchange all useful information
concerning their mutual trade in textiles in order Co ensure ^
the successful implementation of this Agreement .
 ---pagebreak---                           Article   10
1*      The Parties agree that the quantitative liiri fcs estate i nh e d
under this Agreement shall be managed under a system of double con
trol , the details of which are set out in Annex IX to this Agreement ,
2. '    Colombia therefore agrees to furnish the Community vith pre
cise statistical information , on a quarterly basis , of all export
licences issued by the authorities of Colombia for all cate
gories of textile exports to the Community to vhich this Agreement
applies .
3.      The Community will likewise forward to the authorities of
Colombia , on a quarterly basis , precise statistical information^-–^
of imports of such products into the Community .
                                                ;             /K
 ---pagebreak---                           Article 11
1.     Both parties shall take all possible measures tc ensure that
traditional channels and methods of trade between the Community and
Colombia are maintained *
2.     Should the Community inform Colombia thnt the application of
thi6 Agreement " has given rise to difficulties regarding the main
tenance of existing commercial relations between importers in the
Community and their suppliers in Colombia , the Parties agree to
consult together in accordance with the procedures set out in
Article 5 » paragraph 1 .
 ---pagebreak---                        Article 12
      This Agreement shall apply to the territories vhere the
reaty establishing the European Economic Community applies , on the
onditions established in the said Treaty ^ and to the territories
f the Republic of Colombia .                  •           . 4V
                                                      / I
 ---pagebreak---                         Article 13
1.     This Agreement shall enter xnto force on tru            da ; of
the month following the date on which the Contracting "Partite have
notified each other of the completion of the procedure          essary
for the purpose . It shall remain in force until       Dec , bsr 1977 .
                                                                •  /
2®     This Agreement shall have effect from 1 January 19 "7".
3.     Either Party may at any time propose ^■•■• difica^i-ms to this
Agreement or denounce it provided that notice is given at least
120 days before the expiry of any twelve-month period ; in the latter
event the Agreement will come to an end at the expiry of the said
twelve-month period .
If .   The Annexes to this Agreement shall form an integral paj^t-^
thereof .                                                            /
                                       \
 ---pagebreak---                              Article 14
     This Agreement shall be drawn up in two copies in the Danish ,
Dutch , Eaglish , French , German , Italian and Spanish languages , each
of these texts being equally authentic .                               )
 ---pagebreak---     1.       Colombia shall limit exports of the products listed below to the
    regions of the Community market and to the quantitative limits , indicated .
                         Products covered             Community region        Annual Qurntity
. T. Headzng                                                                  ( ia metric tormos
                                                      to which restric
  No .                                                                        unless ctherv:eise
                                                      tion is applied
                                                                              6hovn )
                                                                               1 9?J         1977.
                    Cotton yarns not put up                 BNL             1,000          1,070
 > Ç-05
                    for retail sale                           I             2 , 600        2,782
55.09               Woven fabrics of cotton :
                     - unbleached or bleached                                 1,9b0         2,119
55.09                Woven fabrics of cotton :
                     - other than unbleached or              BNL            .    500           535
                        bleached                               X              1,050
 55.09                       *■ v
                                   fabrics of cotton         UK ( 1 )   2,050,000      2,193,500
                                                                           squaro metres
 51.04 A              Woven fabrics of u..-,. ^ad e fi
                      bres ( continuous ) incj.>
                      woven fabrics of monofil o *
                      strip of heading No . 51.01 01
                      5t.02 :
                      Woven fabrics ; of synthetic            UiC                 3C0         ■ 321
                      textile fibres
  56.07 A             Woven fabrics of man-made fi
                      bres ( discontinuous or waste ):
                      «- of synthetic textile fibres
     2.       Should the quantitative limits referred to above remain in force for
     a further period , or periods , of 12 months , the level for that period shall
     not be lower than the level specified for the preceding 12 months period ,
     increased by not less than 7
     ( 1 ) For the purpose of the application of Article 7 of this Agr <v erne-it in res
           pect of the quantitative limits provided in this Annex for the United
           Kingdom , an equivalence of 2,500 square metres per metric torme hss been
           agreed between the Parties .
                                                                                /f ^>
 ---pagebreak--- As agreed between the Parties in Article 10 of the Agreement , the administr -
tion of textiles exports from Colombia and imports into the Coamunity will
be based on a system of double checking . The details of this system have
been agreed between the Parties and c*re se >* out oelow »
The competent authorities within the Community will , automatically and
without delay , accept imports of textile products on submission of the
importer 's application together with a certified copy of the export licence .
The competent authorities within the Community shall be entitled to require
the presentation of an export licence in respect of goods originating in
Colombia of the categories where the provisions of Article 5 have been
invoked .                                                                              . „
                                                                                (1)
These export licences will be issued by the Colombian authorities                          up
to the total amount of the agreed ceilings .                       ..
The export licences issued by the Colombian authorities shall be appli
cable to the products subject to restraint under the Agreement .
The export licence must specify :
       1«    destination ( relevant Member State )
       2.    sériai number
       3 . importer 's name and address
             exporter 's name and address
        5. the
             net Agreement
                  weight ( in kilograms or metric tons ) or other units design
        6 . category and description of product
        7. ' certification by the Colombian authorities that t e ^ + ^                        Comrrti
             has been debited against the agreed ceiling for *xp " ~ imir,e diatfc
              nity ( relevant Member State ) or , were                    ' re _ exp0 rt outside
              re-export or for inward-processing and subseq
              the Community
                    omnrntt ï t "V ••
 The competent authorities vithxn the Community Wa ^ t                             the exp0rt
 in the event of a discrepancy between the weight in icaue                                  nabl,r
 licence and the shipment    „
                                      or import weight     provided it is
                                                 t-i OS . for their part , will              ^
                                                                                ^
  limits , while the Colombian authorities ,                                                      /
  to keep any discrepancies to a minimum .
                                                de Comercio Exterior)
   ( 1 ) INCOMEX ( Instituto Colomoiano
 ---pagebreak---                                                           ANNEX II       Cont 'd
In the event of total or partial withdrawal of an export licence , the
Colombian authorities will notify the competent author - ties within the
Community of such total or partial withdrawal . The authoiities of the
Member States of the Community will take the appropriate •..-• a© '-.res in
accordance with their existing administrative provision,:; *
The Colombian authorities will forward to the competent authorifci s within
the Community , via the Representations of the Member States     ■' the Commu
nity and directly to the Commission quarterly returns showily the total
quantity covered by the export licences issued against                     -
the quantitative limits for exports to the Member States of the Comu. unity ,
for all categories of textiles exports to the Community to which this
Agreement applies .
The Community will forward to the authorities of Colombia , on a quarterly
basis , precise statistical information of imports of such products into
the Community .
 ---pagebreak---                                                                       Annex III
                              ooBi and textile handicraft artic ] era
  1 . la accordance with Article 12 ( 3 ) of the Geneva Arrangement , the Community
       and Colombia have agreed , in Article k of the Agreement that , subject to
       certain conditions Colombian exports of certain handloom and textile handi
       craft products would be admitted into the Community without quantitative
       limit . The conditions eet out in Article k ( 2 ) of the Agreement specifies
       that admission of such products into the Community without quantitative
       liio.it ehall be subject to the satisfactory operation of agreed arrangements
       for certification .
 2 . The Community and Colombia hereby agree that in carrying out the provisions
      of Article 4 of the Agreement the following form of certificate shall be
      used .
      "Certificate in regard to cotton handloom fabrics and products thereof
              Naine and address of manufacturer ,
              Name and address of exporter ,
              Name and address of importer within the Community ,
              Description of goods ,
              Quantity ( metric tons ),
             Name of ship or flight number ,
             Port or airport of destination .
     This is to certify that the above shipment consists of :
     (i)     cotton handloom fabrics of the cottage industry , containing not more
             than 5 % by weight of man-made fibres , being fabrics which are both
             traditionally of the kind woven on handlooms and actually woven on a looi
             for which the motive power is provided entirely by the operators ( that
             is where the three movements of weaving , namely sheddingn picking and
             beating , are induced by hand or foot and no other source of power is
             used ) ;
     ( ii ) goods made up by the cottage industry from such cotton handloom fabrics ;
     ( iii)traditional Colombian folklore handicraft textiles products cut , sewn ,
             or otherwise fabricated by hand in cottages which are units of the
             cottage industry .
                                                                                it
                                         Signed                                     C ©
3 . The body which shall be authorized to issue the above certificates is
     XNCOMEX. ( Instituto Colombiano de Comercio Exterior )
                                                                                \ «    ••
                                                                                -■ ■<L'
 ---pagebreak---                                                                   ANNEX IV
                           Exchange of letters
Sir
In concluding the negotiations held between the Government of Coloraoxa
and the European Economic Community which have led this day to the signing
of an Agreement regarding trade in textile products , I have the honour
to confirm the following record of understanding :
     In the view of the Colombian delegation the quantitative limit for
     Italy for woven cotton fabrics other than unbleached. and bleached ( ex 55*09)
     for tho year 1976 as shown . in Annex I , did not take fully into account the
     potential of Colombian exports to this Community market *
     A review may be heldj at the request of Colombia , in order to assess
     the position and to determine , on a mutually agreed basis , whether
     and to what extent an upward revision of the quantitative limit in
     question should be made .
I should be grateful for your confirmation that the above correctly repre
sents our understanding in the matter .
Please accept , Sir , the assurances of my highest consideration .
                                                         ! '
                                  For the Government of Republic of Colombia
 ---pagebreak--- Sxr
I have the honour to refer to your letter of today 's date in the
following terms :
  " In concluding the negotiations held between the Government of Colombia
  and t^e European Economic Community which have led this' day to the
  signing of an Agreement regarding trade in textile products , I have
  the honour to confirm the following record of understanding :
       In the view of the Colombian delegation the quantitative limit for
       Italy for woven cotton fabrics other "than unbleached and bleached ( ex' 53.09)
       for -the year 1976 as shown in Annex I t did not take fully into account the
       potential of Colombian exports to this Community market *
       A review may be held , at the request of Colombia , in order to assess
       the position and to determine , on a mutually agreed basis , whether and
       to what extent an upward revision of the quantitative limit in ques
       tion should be made .
  I should be grateful for your confirmation that the above correctly re
  presents our understanding in the matter ".
I confirm that this correctly sets out our understanding in the matter .
Please accept , Sir , the assurances of my highest consideration .
                                                                            M