title: Council Recommendation of 8 July 2014 on the National Reform Programme 2014 of Latvia and delivering a Council opinion on the Stability Programme of Latvia, 2014

text:
               29.7.2014

               EN

               Official Journal of the European Union

               C 247/63

         COUNCIL RECOMMENDATION
   of 8 July 2014
   on the National Reform Programme 2014 of Latvia and delivering a Council opinion on the Stability Programme of Latvia, 2014
   2014/C 247/12
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 121(2) and 148(4) thereof,
   Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 5(2) thereof,
   Having regard to the recommendation of the European Commission,
   Having regard to the resolutions of the European Parliament,
   Having regard to the conclusions of the European Council,
   Having regard to the opinion of the Employment Committee,
   Having regard to the opinion of the Economic and Financial Committee,
   Having regard to the opinion of the Social Protection Committee,
   Having regard to the opinion of the Economic Policy Committee,
   Whereas:

               (1)

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

               (2)

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

               (3)

               On 29 June 2012, the Member States' Heads of State or Government decided on a Compact for Growth and Jobs, providing a coherent framework for action at national, EU and euro area levels using all possible levers, instruments and policies. They decided on action to be taken at the level of the Member States, in particular expressing full commitment to achieving the objectives of the Europe 2020 strategy and to implementing the country-specific recommendations.

               (4)

               On 9 July 2013, the Council adopted a Recommendation (3) on Latvia's National Reform Programme for 2013 and delivered its opinion on Latvia's updated Convergence Programme for 2012-2016.

               (5)

               On 13 November 2013, the Commission adopted the Annual Growth Survey, marking the start of the 2014 European Semester for economic policy coordination. Also, on 13 November 2013, the Commission, on the basis of Regulation (EU) No 1176/2011 of the European Parliament and of the Council (4), adopted the Alert Mechanism Report, in which Latvia was not identified as one of the Member States for which an in-depth review would be carried out.

               (6)

               On 20 December 2013, the European Council endorsed the priorities for ensuring financial stability, fiscal consolidation and action to foster growth. It underscored the need to pursue differentiated, growth-friendly fiscal consolidation, to restore normal lending conditions to the economy, to promote growth and competitiveness, to tackle unemployment and the social consequences of the crisis, and to modernise public administration.

               (7)

               On 29 April 2014, Latvia submitted its 2014 National Reform Programme and on 30 April 2014 its 2014 Stability Programme. In order to take account of their interlinkages, the two programmes have been assessed at the same time.

               (8)

               The objective of the budgetary strategy outlined in the 2014 Stability Programme is to gradually reduce the headline deficit and to maintain a structural balance which is consistent with the medium-term objective when taking into account the allowed temporary deviation from the medium-term objective due to the impact of the systemic pension reform. The Stability Programme has changed the medium-term objective from ‐ 0,5 % to - 1,0 %; the new medium-term objective reflects the objectives of the Stability and Growth Pact. The planned path of the headline balance in the Stability Programme implies a gradual deterioration of the (recalculated) structural balance, although still within the margin allowed by the implementation of the pension reform. Taking into account the allowed deviation from the medium-term objective, the planned structural deficit is in line with the requirement of the Stability and Growth Pact until 2016. However, the planned increase in the recalculated structural deficit in 2017 leads to a deviation from the required adjustment path towards the medium-term objective. Overall, the budgetary strategy outlined in the Stability Programme is mostly in line with the requirements of the Stability and Growth Pact. Government debt is set to remain well below 60 % of GDP over the whole programme period, declining to 31 % of GDP by 2017. The macroeconomic scenario underpinning the budgetary projections in the Stability Programme, which has not been formally endorsed by an independent institution, is plausible. Economic growth is expected to remain around 4 % per year over the programme period, and projected price increases are moderate.

               (9)

               The Stability Programme's budgetary scenario envisages a steep decline in the share of government's revenue and expenditure in GDP, reflecting several revenue-reducing measures against targeted expenditure restraint. Increasing spending demands in several policy fields represent a risk to the projected expenditure reductions in the Stability Programme. The Commission services 2014 spring forecast shows that while fiscal policy in 2014 is in line with the requirement of the Stability and Growth Pact, there is a risk of a deviation in 2015. Based on its assessment of the Stability Programme and the Commission forecast, pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that in 2014 the deviation of the structural deficit from the medium-term objective reflects the impact of the systemic pension reform, while as of 2015 there is a risk of a deviation from the required adjustment path.

               (10)

               Latvia has taken steps to lower the tax burden for low-income earners and families with dependants and to strengthen property and environmental taxation, but the level and design of these taxes does not sufficiently affect the behaviour of economic operators, and some environmentally harmful subsidies remain in place. While the authorities have made some progress in improving tax compliance and reducing the proportion of undeclared economic activity, in particular by improving risk assessment and tightening sanctions against fraudulent behaviour, challenges in the fight against tax fraud and evasion remain. In particular, despite representing a significant proportion of total taxation, revenue from consumption taxes has ample potential for further increase if tax compliance is improved.

               (11)

               Despite an originally ambitious plan to reform higher education, Latvia has made no progress in setting up an internationally approved accreditation system, plans to introduce a new financing model are indicatively foreseen for 2016, consolidation of higher education institutes has been weakened and restrictions on the use of foreign languages remain unchanged. This is despite the fact that there is significant room for reforming the higher education system, which is too large in view of the declining population, offers too many distinct study programmes and has a limited attraction for foreign students and teaching staff. The results of the first independent assessment of research institutions show that 21 % of full-time equivalent scientists work for those 10 % of the evaluated that can be considered as high-level international research centres. Moreover, Latvia had an R&D intensity of only 0,66 % of GDP in 2012 and is not on track to achieve its Europe 2020 objective of devoting 1,5 % of GDP to R&D.

               (12)

               Latvia has made progress in tackling unemployment, which has fallen considerably. However, youth unemployment is still relatively high and there is a need for outreach measures for non-registered inactive youth. Although Latvia has taken measures to address skills mismatches and the quality of vocational education, these still require attention, in particular in improving the quality of apprenticeships and in developing comprehensive career guidance. Active labour market policies are still limited in scope and over rely on public works.

               (13)

               Working age poverty remains very high in Latvia. Latvia has taken some steps to reform social assistance and has completed a large-scale assessment of the social security system providing a solid basis for an evidence-based reform. It has significantly increased various child-related benefits, and raised the non-taxable thresholds in personal income tax for dependants. However, the effectiveness of social protection in terms of poverty reduction remains poor and designing an effective social safety net remains a challenge. Overall, a high proportion of the population is at risk of poverty or social exclusion, and even more so for children. Families with children, the unemployed, people with disabilities and people living in rural areas are at a particularly high risk of poverty and social exclusion. Latvia's spending on social protection as a percentage of GDP is the lowest in the Union. Access to healthcare is hampered by costs, including high out-of-pocket payments and prevalent informal payments, leaving a high proportion of the population with unmet healthcare needs. There is room for improvement to enhance the efficiency of the system, ensure cost-effective financing and promote disease-prevention activities.

               (14)

               Latvia has made some progress in opening its electricity market to competition and this will be extended to the household sector in early 2015. Latvia joined the regional Scandinavian-Baltic Nord Pool Spot market for electricity contracting in June 2013. Further reinforcement of interconnections with the EU energy market is needed, as Latvia is currently import-dependent and the cross-border electricity connection with Estonia is mostly congested. Development of infrastructure is therefore essential and Latvia faces considerable challenges in closing infrastructure gaps. Some progress was also achieved in the natural gas sector as the Parliament approved amendments to the Energy law, setting out gradual opening up of the gas market from April 2014; however, the full market opening has been postponed until 2017. Latvia has put forward a balanced mix of policy measures addressing energy savings for the main sectors of the economy and in coming years more than 70 % of energy savings will be generated in the buildings sector. However, efficiency in transport, buildings and heating systems still needs to be improved.

               (15)

               Latvia has taken significant action to improve capacities in the judiciary to reduce the backlog and length of proceedings. However, the high judicial backlog still poses a threat to business and reforms to improve the efficiency and quality of the judiciary need to be completed, including as regards insolvency, mediation and arbitration. Latvia has proposed ambitious public administration reforms; however their implementation is slow and not applied to local governments and the reform of state-owned enterprises has been significantly delayed. Amendments to the Competition Law are needed to give the Competition Council greater institutional and financial independence to intervene effectively against actions of public and private bodies restricting competition.

               (16)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of Latvia's economic policy. It has assessed the National Reform Programme and the Stability Programme. It has taken into account not only their relevance for sustainable fiscal and socio-economic policy in Latvia but also their compliance with EU rules and guidance, given the need to reinforce the overall economic governance of the Union by providing EU-level input into future national decisions. Its recommendations under the European Semester are reflected in recommendations (1) to (5) below.

               (17)

               In the light of this assessment, the Council has examined the Stability Programme, and its opinion (5) is reflected in particular in recommendation (1) below.

               (18)

               In the context of the European Semester, the Commission has also carried out an analysis of the economic policy of the euro area as a whole. On this basis, the Council has issued specific recommendations addressed to the Member States whose currency is the euro (6). As a country whose currency is the euro, Latvia should also ensure the full and timely implementation of those recommendations,

         HEREBY RECOMMENDS that Latvia take action within the period 2014-2015 to:

               1.

               Preserve a sound fiscal position in 2014 and strengthen the budgetary strategy as of 2015, ensuring that the deviation from the medium-term objective remains limited to the impact of the systemic pension reform. Pursue efforts to further reduce the tax burden on low‐income earners in the context of a shift towards more growth-friendly property and environmental taxes and by improving tax compliance and collection.

               2.

               Step up implementation of the higher education reform, in particular through the establishment of an independent accreditation agency and a financing model that rewards quality. Provide career guidance at all education levels, improve the quality of vocational education and training, including by strengthening apprenticeship, and make progress as regards the employability of young people including by putting in place outreach measures for non-registered youth not in employment, education or training. Take steps for a more integrated and comprehensive research system also by concentrating financing towards internationally competitive research institutions.

               3.

               Reform social assistance and its financing further to ensure better coverage, adequacy of benefits, strengthened activation and targeted social services. Increase coverage of active labour market policies. Improve the cost-effectiveness, quality and accessibility of the healthcare system.

               4.

               Accelerate the development of gas and electricity interconnections to neighbouring Member States to diversify energy sources and promote competition through improved integration of the Baltic energy markets. Pursue efforts to further increase energy efficiency in transport, buildings and heating systems

               5.

               Complete judicial reforms including the pending reforms of insolvency, arbitration and mediation frameworks to ensure a more business- and consumer-friendly legal environment. Step up public administration reforms, including by implementing state‐owned enterprise management reform and increasing institutional and financial independence of the Competition Council.

      Done at Brussels, 8 July 2014.

            For the Council

            The President

         P. C. PADOAN

      (1)  OJ L 209, 2.8.1997, p. 1.

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

      (3)  OJ C 217, 30.7.2013, p. 47.

      (4)  Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (OJ L 306, 23.11.2011, p. 25).

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

      (6)  See page 141 of the current Official Journal.


Avis juridique important

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52003DC0177

Recommendation for a Council recommendation on the implementation of member states' employment policies  /* COM/2003/0177 final */

Recommendation for a COUNCIL RECOMMENDATION ON THE IMPLEMENTATION OF MEMBER STATES' EMPLOYMENT POLICIES(presented by the Commission)EXPLANATORY MEMORANDUMSince 2000, the Employment Guidelines have been accompanied by recommendations on Member States' employment policies, which are adopted by the Council on the basis of a recommendation from the Commission in line with article 128.4 of the Treaty. The role of the recommendations is to provide Member States with specific guidance for implementation of the Employment Guidelines and focus their policy action on key challenges.Employment recommendations as part of a new policy guidance packageThe Barcelona European Council requested that policy co-ordination processes be streamlined, with synchronised calendars for the adoption of the Broad Economic Policy Guidelines and the Employment Guidelines and Recommendations. In its report on streamlining of 3 December 2002, the Council considered that streamlining should be guided by the objective to increase transparency and efficiency, avoid overlap and repetitions in the formulation of guidelines, and ensure consistency, complementarity and coherence. The Employment Recommendations are therefore presented as part of a package together with the Employment Guidelines and the Broad Economic Policy Guidelines. The package is intended to be adopted by the Council at the end of the first semester 2003.Within a streamlined approach the Broad Economic Policy Guidelines will provide the overarching economic policy co-ordination for the European Union, while the leading role on employment policy co-ordination will lie with the Employment Guidelines and Recommendations to Member States. The 2003 Brussels Spring European Council requested that the Employment Guidelines and the Broad Economic Policy Guidelines operate in a consistent way.The response to previous recommendationsThe Council adopted the last set of recommendations on Member States' employment policies on 18 February 2002 [1] together with the Employment Guidelines for 2002. The Joint Employment Report  [2] contains a detailed assessment of how Member States responded to these recommendations in their latest National Action Plans. Although Member States' responses to the recommendations have generally been constructive, they reflect different stages of implementation and a continuing need for pursuing structural labour market reforms. The present proposal draws on the findings of the 2003 Joint Employment Report.[1]  OJ L 60 1.3.2002, p. 70.[2]  Jointly adopted by the Commission and the Council on 6 March 2003 on the basis of the Commission proposal COM(2002) 621 final of 13.11.2002.Consistency and complementarity with the revised Employment GuidelinesThe proposal for Employment Recommendations is presented in conjunction with a proposal for fundamentally renewed Employment Guidelines, based on Article 128.2 of the Treaty. The proposal for Guidelines re-orientates the Employment Strategy towards delivering the medium-term objectives agreed in Lisbon, builds on the evaluation of the first five years of the Employment Strategy and takes account of the context of an enlarged European Union. In line with the need for a more streamlined approach, the guidelines have been reduced in number and simplified. They pursue the three complementary and mutually supportive objectives of: full employment, quality and productivity at work, and social cohesion and inclusion. The achievement of these objectives requires further structural reforms concentrating on 10 key priorities, and special attention for important aspects of governance such as social partnership and efficient employment services.The proposal for recommendations mirrors the objectives and priorities of the new guidelines.The recommendations have been strictly selected to reflect the key challenges ahead for each Member State. The order of the recommendations reflects the order of the Employment Guidelines and does not constitute a ranking in terms of priority.Recommendation for aCOUNCIL RECOMMENDATIONON THE IMPLEMENTATION OF MEMBER STATES' EMPLOYMENT POLICIESTHE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 128(4) thereof,Having regard to the Commission recommendation of 8 April 2003,Having regard to the opinion of the Employment CommitteeWhereas:(1) The Lisbon European Council on 23 and 24 March 2000 set a new strategic goal for the European Union to become the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion. To this end the Council agreed overall employment targets and employment targets for women for 2010.(2) The Barcelona European Council of 15 and 16 March 2002 called for a strengthening of the European Employment Strategy through a reinforced, simplified and better-governed process fully integrated into the Lisbon strategy. The Barcelona European Council also requested a streamlining of policy co-ordination processes, with synchronised calendars for the adoption of the Broad Economic Policy Guidelines and the Employment Guidelines.(3) The Council agreement on streamlining of 3 December 2002 considered that streamlining should be guided by the objective to increase transparency and efficiency, avoid overlap and repetitions in the formulation of guidelines, and ensure consistency, complementarity and coherence.(4) The Spring European Council held on 20 and 21 March 2003 in Brussels confirmed that the Employment Strategy has the leading role in the implementation of the employment and labour market objectives of the Lisbon strategy, and urged Member States to maintain the momentum of reform of national labour markets.(5) The Council adopted the employment guidelines by the Decision of(6) The Joint Employment Report adopted by the Commission and the Council on 6 March 2003 describes key challenges for employment policy in each Member State and indicates priorities for action which will enhance the contribution of each Member State towards the achievement of the overall objectives of the Employment Guidelines.(7) Sound macro-economic policies and comprehensive economic reforms are crucial for job creation. Member States should therefore implement this Recommendation in a way that is consistent with the Broad Economic Policy Guidelines.HEREBY RECOMMENDS :That the Member States should take the actions set out in the Annex.Done at Brussels, [...]For the CouncilThe PresidentANNEXBELGIUMThe challenges posed by an ageing population suggest a need for measures aimed at mobilising the non-occupied potential labour force, thereby increasing employment and participation rates. Despite the positive evolution in recent years, employment rates in Belgium remain markedly below the EU average and far from the EU targets, especially for older workers, for which the employment rate is the lowest in the EU. It is unlikely that measures taken so far to promote a more active ageing will suffice to reach the EU target for 2010. Although long-term unemployment has decreased in recent years and is now below the EU average, it remains a structural problem. The inflows into long term unemployment remain high and an appropriate preventive approach for all adult job seekers is still not provided. Notwithstanding recent measures to remove unemployment traps, the risk of benefit dependency calls for a further review of the benefit system. Moreover, increases in real unit labour cost risk to jeopardise the beneficial effects of the tax reform and the reductions of social security contributions for disadvantaged people. Furthermore, the persistent regional and sub-regional disparities in labour market performance reflects not only differences in economic performance, but also inadequate geographical labour mobility, and initiatives in this area remain of limited scope.Belgium should therefore:Prevention and activation1. Strengthen measures to reduce inflows into long-term unemployment by improving the coverage of unemployed adults by the preventative approach.Labour supply and active ageing2. Develop and implement a comprehensive strategy to increase the employment rate, in particular for older workers and women, based on appropriate targets; take further preventive measures and remove incentives to early withdrawal of workers from work.Making work pay3. Implement the planned multi-annual reduction of the tax and non-tax burden on labour so as to encourage employees to take up work and employers to create new jobs, in combination with a further review of the benefit system in order to remove unemployment traps.Mobility4. Take concerted action to increase labour mobility between regions and further improve the co-ordination and integration of labour market policies.DENMARKEmployment rates in Denmark are already well beyond the EU targets, including for women and older workers. However, in view of the ageing of the labour force, Denmark needs to ensure an adequate labour supply, in order to safeguard growth potential and the sustainability of the social protection system. Recent reforms have raised the average effective retirement age, but care still needs to be taken in certain sectors, particularly in the health, education and social sector, where there is overrepresentation of employees aged over 50. Other sources of potential labour supply include immigrants already living in Denmark, whose participation should be encouraged. Reforms have been undertaken to reduce the overall tax burden on labour, but further reforms would be needed to ensure labour force participation in the long term, in particular by reducing the still relatively high marginal tax rates and by providing incentives to postpone early retirement.Denmark should therefore:Labour supply and active ageing1. Strengthen efforts to sustain the availability of labour in the long term, in particular by promoting the labour market participation of older workers and by preventing bottlenecks in sectors with an ageing workforce.People at a disadvantage2. Strengthen further the labour market integration of immigrants by ensuring the right balance between increasing economic incentives and avoiding social exclusion.Making work pay3. Continue the on-going reforms to reduce the high marginal tax rates and the overall fiscal pressure on labour, in particular on low and medium income earners and assess their impact.GERMANYThe overall employment rate in Germany is close to the EU-target of 67% for 2005. The employment rate for women already exceeds the intermediate EU-target of 57% for 2005, whereas for older workers it remains below the very low starting level of 1997. However, labour market participation of women is still negatively influenced by the continuing lack of care facilities and gender pay differentials, particularly in the private sector. The expected deterioration of the unemployment situation in 2003 calls for efficient preventive and active labour market policies. The combined effect of taxation, social security contributions and benefit withdrawal continues to create disincentives to work, particularly for low wage earners. Reforms of the education system also constitute an important element for tackling unemployment because the low skilled make up a large share of the unemployed. A large job deficit remains, notably in the Eastern Länder, with a risk of further increasing regional disparities on the labour market. The degree of regulation may inhibit job creation, and requires a comprehensive review, including of labour market institutions which govern wage formation such as the "Flächentarifverträge" and the "Günstigkeitsprinzip".Germany should therefore:Prevention and activation1. Improve the efficiency of job search assistance and active labour market programmes, by targeting them towards those persons most prone to the risk of long-term unemployment; implement labour market policies with special attention for the lack of job creation in the Eastern part of the country.Address change and promote adaptability2. Support job creation by a systematic review and removal of regulatory barriers which may hamper the development of employment in services and industry; promote a more adaptable work organisation and create a regulatory framework favourable to both employment creation and productivity.Lifelong learning3. Further develop and implement an overall lifelong learning strategy, addressing all levels of the educational system, with special attention to increasing participation in continuing training, in particular of older workers, and low qualified and SME workers.Gender Equality4. Strengthen action to address the factors underlying the gender pay gap in the private sector and the impact of the tax and benefit system on women's employment; promote the availability of childcare facilities and the correspondence between working hours and school schedules.Making work pay5. Reform the tax-benefit system with a view to increase incentives to work, notably by assuring positive net income gains from moving into a job or a higher income bracket across all income levels, and by enforcing the conditionality of benefits upon active job search.GREECEGreece's overall employment rate is considerably below the targets set by the European Council, in particular for women. The comparatively low employment rates are partly due to the low incidence of part time employment in Greece. Unemployment fell for a third consecutive year in 2002 but is still above the EU average, with the unemployment rate for women attaining more than double the rates of men. The reform of the public employment service, which is essential to address the high level of long-term unemployment, is still delayed. In order to increase labour productivity, which suffers inter alia from the low levels of skills, the systems for initial and continuous training need to be better integrated. The complexity of the tax system and the high social security contributions remain important obstacles to hiring, despite recent reforms. Moreover, reforms aimed to promote flexible forms of employment have had limited impact. Efforts are also necessary to reduce undeclared work.Greece should therefore:Address change and promote adaptability1. Implement fully and in close co-operation with the social partners the labour market reform package, with a view to improve access to part time work and support the adaptability of workers and enterprises while ensuring the balance between flexibility and security on the labour market.Lifelong learning2. Complete and implement the comprehensive lifelong learning strategy, building on co-ordination initiated between education and vocational training and employment systems. Take measures to increase the levels of educational attainment and the participation of adults in education and training.Gender equality3. Take effective actions to narrow the high gender gaps in terms of employment and unemployment rate, and continue efforts to increase care facilities for children and other dependants.Making work pay4. Simplify the tax system and reduce social security contributions, in particular for the low paid, while offering greater incentives for part time employment.Undeclared work5. Implement an adequate policy mix to reduce substantially undeclared work, including by the reduction of taxation on low paid labour and increased incentives for the transformation of undeclared work into regular work.Delivery services6. Complete the reform of the public employment services and fully implement the preventative and individualised approach, in particular for women and young people; further upgrade statistical monitoring systems.SPAINNotwithstanding the great efforts and progress made in recent years, the unemployment rate remains significantly above the EU average, while the employment rate remains below the EU average. The reduction in unemployment has been greater for women than for men, but the female unemployment rate is still more than double that of men. Other features of the Spanish labour market remain almost unchanged: the slow improvement of productivity, the high share of fixed-term contracts and the low use of part-time contracts, which are still much less widespread than in other Member States. Moreover, employment creation in the different Autonomous Communities has not succeeded in closing the large existing gaps among regions as regards unemployment rates. Geographical labour mobility is limited, partly on account of structural obstacles, notably the poor functioning of the housing market. In this context, it is important the complete the modernisation of the Public Employment Service and to increase co-ordination between regional employment services.Spain should therefore:Address change and promote adaptability1. Improve, in consultation with the social partners, work organisation and the participation in lifelong learning with a view to strengthen productivity and quality at work. Revise the regulatory framework, putting emphasis on reducing the high share of fixed-term contracts and increasing the use of part-time contracts.Gender equality2. Take effective actions to increase the overall employment rate and to close gender gaps in employment and unemployment. Improve the provision of care facilities for children and for other dependants.Mobility3. Improve the conditions conducive to employment creation in regions lagging behind and eliminate obstacles to labour mobility. This should include reinforcing the co-ordination between the different regional employment services with a view to reducing regional disparities in employment and unemployment.Delivery services4. Finalise the modernisation of the public employment services so as to improve its efficiency and to increase its capability to mediate in the labour market. These efforts should include the completion of the statistical monitoring system.FRANCEFrance still has a relatively low overall employment rate and a very low employment rate for older workers (among the lowest in the EU). In the context of an ageing population, the challenge is therefore to encourage labour force participation, in particular for older workers. Despite the implementation of active and preventative policies, the level of structural unemployment remains high in certain parts of the country, and there is a continuing mismatch between labour supply and demand, posing recruitment problems in certain sectors. In this context, the number of young people leaving school without a qualification is particularly problematic. Finally, despite its potential to play a significant role in several fields, social dialogue remains under-developed in France.France is therefore invited to:Prevention and activation1. Pursue and develop measures to prevent unemployment by strengthening a personalised approach for the unemployed and by ensuring effective job search incentives and co-ordination of the various employment services. To this effect, ensure that the new unemployment insurance system is accompanied by appropriate requirements and effective incentives to search for a job.Lifelong Learning2. Pursue a comprehensive lifelong learning strategy, which accounts for the needs of initial training and encourages access to training for less qualified employees, in particular in SMEs.Labour supply and active ageing3. Implement a coherent policy to appreciably increase the participation in the labour market of older workers, in particular by offering incentives to remain active, strengthened access to training, and a reform of the early retirement systems.Social partnership4. Stimulate and strengthen the social dialogue, in particular to address issues connected with active ageing and lifelong learning.IRELANDIreland is making steady progress towards achieving the Stockholm and Lisbon employment targets. However the sharp slowdown in economic growth and the recent increase in the unemployment rate present a major challenge. Female participation in the labour force has significantly improved, but there is still a significant gap between employment rates for women and men, as well as a high pay gap. This is exacerbated by difficulties in the supply and affordability of childcare. Although progress has been made, disparities continue to exist between the two regions, in terms of equal access to the labour market and economic activity. A strategic framework for lifelong learning has not yet been implemented and the development of in-company training, in particular for older workers is still awaited.Ireland should therefore:Job creation1. Take further comprehensive action to address regional imbalances in employment, unemployment and job creation, including through assistance from the structural funds.Lifelong Learning2. Increase in-company training and expedite the implementation of a coherent lifelong learning strategy, with overall targets. Promote the active involvement of the social partners in pursuing these objectives.Gender equality3. Strengthen efforts to mobilise and integrate into the labour market economically inactive people, in particular women, by continuing to remove tax barriers, increasing the number of affordable childcare places and addressing the factors underlying the gender pay gap.ITALYDespite improvements in recent years, there remains an important gap between the employment rates in Italy and the European average, especially for women and older workers, and national targets have been set in accordance. There continues to be a large regional gap, with the North recording high participation rates and almost full employment on one side and the South characterised by low participation and high unemployment on the other. While past reforms may have contributed to increase employment and to reduce the level of unemployment in both parts of the country, the relative distance has remained virtually unchanged and may hide a large share of undeclared work. A further major weakness is the increasing imbalance between flexibility and security. The growing recourse to more flexible contracts, enjoying a relatively low degree of protection vis-à-vis the still strict protection of permanent jobs in medium and large firms, has intensified the duality in the labour market, with insecurity at one end amplified by a very limited system of unemployment benefits and social assistance. Further initiatives aiming at flexibility, inter alia the introduction of new labour contracts and the liberalisation of employment services were taken by the Government at the beginning of 2003. However, long-standing plans such as the reform of the Public Employment Service and the lifelong learning strategy are lagging behind.Italy should therefore:Job creation1. Take further comprehensive action to address regional imbalances in employment, unemployment and job creation with an effective use of all means of action, including the assistance from the structural funds.Address change and promote adaptability2. Implement, in consultation with the social partners, measures to increase labour market flexibility and modernise work organisation, while promoting the synergy between flexibility and security and avoiding marginalisation of disadvantaged persons.Lifelong learning3. Take action to implement the lifelong learning strategy, in particular by increasing the continuous training offer through agreements with the social partners.Labour supply and active ageing4. Take action to raise the employment rate of older workers in accordance with the national target, in particular by increasing, in close co-operation with the social partners, the effective exit age and by widening the offer of continuous training opportunities. Take action to increase the employment rate of women, in particular by increasing the supply of care facilities for children and other dependants.Undeclared work5. Implement an adequate policy mix to reduce substantially undeclared work, including by the reduction of taxation on low paid labour and increased incentives for the transformation of undeclared work into regular work.Delivery services6. Improve the functioning of the market for employment services by implementing a national computerised labour market data system available for all the operators, while at the same time improving the delivery capacity of the Public Employment Service for providing active and preventive measures to the unemployed.LUXEMBOURGLabour force participation in Luxembourg is below the EU average, in particular for older workers. Employment growth has been possible thanks to cross-border workers and increased participation of national prime-age women, while virtually no progress has been achieved regarding the employment rate of older workers despite some measures undertaken with the aim of increasing incentives to remain in the workforce. Mobilising part of the unutilised national employment potential is of great importance to enhance labour supply and thus provide impetus to growth. Incentives to remain in the labour force could be improved by further reforms of early retirement and pre-retirement schemes. Also the effects of the latest revisions in the disability pension scheme should be closely monitored. There is a risk that the progress achieved in raising the female employment rate could let-up in a less dynamic labour market. The transition of young people without vocational qualifications into the labour market remains a major difficulty as well. In relation to these aspects (young people, women and older workers) and important aspects of quality in work (lifelong learning, pay gaps between men and women), Luxembourg has not yet established an appropriate follow up to verify the impact of the measures and reforms decided on since the first Employment NAP.Luxembourg should therefore:Lifelong learning1. ensure effective implementation of the framework law on continuous training through developing, with strong involvement of the social partners, a coherent lifelong learning strategy. Combat early school leaving and undertake a revision of the overall learning system with a view to achieving better coherence between the education and training sectors.Labour supply and active ageing2. further strengthen action aimed at significantly increasing labour market participation rates amongst older workers by reviewing the early retirement pension scheme and by closely monitoring the effects of the latest revisions in the disability pension scheme.Gender equality3. continue efforts aimed at increasing labour market participation rates amongst women, by improving services to facilitate a better reconciliation of work and family life, by encouraging their return to work after long periods outside the labour market and by adopting measures to promote equality between men and women particularly by addressing factors underlying the gender pay gap.THE NETHERLANDSDespite the recent rise in unemployment, the Netherlands continue to score well above the overall employment target set by the European Council. Although the female employment rate exceeds the EU target, the gender pay gap is still comparatively high. Further improvement of employment rates will depend on continued growth of female employment, and on a stronger activation of older persons and minorities, as well as on mobilising the unutilised labour potential. In this context, the high number of people on disability benefits is a matter of concern and unemployment traps in the social benefit schemes continue to create disincentives for people to take up work. The persistence of unfilled vacancies due to skill gaps points to an insufficient ability of lifelong learning policies to bridge the gap between labour supply and demand. With unemployment on the increase, this may add to the risk of job loss among the low skilled workers.The Netherlands should therefore:Life long learning1. Target, in close co-operation with the social partners, life long learning policies to the demands of the labour market in order to tackle inactivity and to prevent low skilled workers from drifting out of the labour market.Gender equality2. Further develop, together with the Social Partners, a strategy for addressing the factors underlying the gender pay gap.Making work pay3. Improve the transparency of the benefit system by an increased use of tax-based measures instead of subsidies and by a better co-ordination of national and local income support. Ensure that the disability scheme addresses both the need to contain the inflow and to activate those who already receive benefits.AUSTRIAThe employment rate targets set by the Lisbon and Stockholm European Councils have already been largely met by Austria with the exception of the employment rate for older workers. This situation is also reflected in the fact that the average exit age on the labour market is very low. The unemployment rates started to increase from mid 2001, notably for young persons, but continue to be of the lowest in the EU. Structural changes on the labour market, the adaptability of the workforce and the removal of skill mismatches remain a constant challenge. Although the female employment rate is already very high, the gender gaps and the lack of childcare facilities constitute important weaknesses.Austria should therefore:Lifelong learning1. Continue to implement a comprehensive strategy for the development of lifelong learning, underpinned by the necessary mobilisation of all actors involved and including relevant targets on financial resources and participation.Labour supply and active ageing2. Develop, together with the Social Partners, an action plan, based on adequate targets, for increasing the employment of older workers, notably older women, and the effective exit age.Gender Equality3. Develop, together with the Social Partners, a strategy, based on relevant targets, for addressing the factors underlying the gender pay gap, and enhance action to offer more childcare facilities; assess the impact of the present childcare allowance scheme on the quality and quantity of female employment.PORTUGALGeneral economic indicators have deteriorated since 2001, and unemployment has increased significantly in 2002. However, progress towards the EU-wide targets has been positive since 1997 and the employment rate is already above the 67% target for 2005. However, labour productivity in Portugal is the lowest in the EU and is growing slowly. The average level of educational attainment of both the adult population and the younger age groups continues to be low. Although Portugal has substantially increased spending on education in recent years, the share of early school-leavers without upper-secondary education and not in training is by far the highest in the EU. In spite of recent progress, the levels of vocational training are significantly below the EU average. It has been particularly difficult to involve the large number of small and micro companies in the national programmes designed to upgrade the skills of their staff and increase worker qualification levels. Although the employment rate for women is above the Community average, important gender imbalances persist in terms of sectoral distribution and pay-gaps in the private sector. Important agreements have been signed recently between the social partners and the government, but their implementation will require a strong involvement of the signatories.Portugal should therefore:Lifelong learning1. Pursue the implementation of the national lifelong learning strategy; improve the education system to reduce the high level of school drop-outs and ensure the supply of skilled labour, and implement targets for education and training of workers in enterprises.Gender equality2. Pursue efforts to reconcile family and working life, in particular by extending care services and facilities for children and other dependants. Take action to reduce gender segregation at sectoral level, and address the factors underlying the gender pay gap in the private sector.Social partnership3. Building on existing agreements between the Government and the social partners, strengthen social partnership in the areas of wage policy and productivity, adaptability, work organisation and quality in work.FINLANDFinland exceeds the EU-wide overall and female employment targets for 2005 set by the European Council, as well as the Lisbon target for the female employment rate to be reached by 2010. Finland is one of the Member States most exposed to the effects of ageing population. Thus an increase in the employment rate and in the labour supply will require that older workers remain longer in the labour market. The overall unemployment rate remains above the EU average, with high structural unemployment. The coexistence of high unemployment in some regions with difficulties in recruiting indicates that there is still room for further improving the effectiveness of active labour market programmes in addressing the mismatch between supply and demand of labour. Although measures have been taken to reduce the high tax burden on labour, the reform of tax and benefit schemes still deserves attention, especially with regard to low paid labour. National sources indicate also a high gender pay gap, which can only be partially explained by gender segregation across sectors.Finland should therefore:Prevention and activation1. Improve further the effectiveness of active labour market programmes with a view to combating structural unemployment and reducing regional disparities and labour market bottlenecks, focusing on the needs of the most vulnerable persons.Labour supply and active ageing2. Strengthen efforts to sustain the availability of labour in the long term. In particular, continue action to increase the effective exit age in line with the national strategy for active ageing, and encourage participation in the labour market by further reforming tax and benefit schemes, notably by reducing the high marginal effective tax rates for low-wage earners.Gender equality3. Strengthen efforts, in the context of gender mainstreaming approach, to address the factors underlying the gender pay gap and gender segregation.SWEDENThe Swedish labour market is characterised by very high employment rates, including among older workers and women, and all the EU-wide targets have already been exceeded. However, in view of the ageing population, there will be a need to sustain labour supply by exploiting potential sources of labour among immigrants, the young and the long-term sick. Early retirements and the rapid increase in long-term sickness deserves particular attention in order to sustain an adequate labour supply. Despite the ongoing tax reform, the tax burden on labour is still the highest in the EU. Benefit schemes are relatively generous in an international perspective and further efforts appear necessary to improve incentives to work.Sweden should therefore:Address change and promote adaptability1. Reduce the numbers of people on long-term sick leave by improving conditions of work, and adapting the regulatory framework to promote an effective reintegration into the labour market.Labour supply and active ageing2. Strengthen efforts to sustain the availability of labour in the long term by fully exploiting all potential sources of labour, in particular through an increased participation of immigrants.Making work pay3. Pursue further the reforms of tax and benefit systems to improve work incentives, in particular for those groups with high marginal effective tax rates, and complete the tax reform on labour income.UNITED KINGDOMThe UK exceeds the EU-wide overall employment rate target set by the European Council, including the targets for women and for older workers. However, high employment rates are associated with relatively low levels of productivity in part due to insufficient levels of basic skills, and specific job quality-related problems like the gender pay gap and lack of access to training for some categories of workers. These challenges constitute a concrete agenda for further developing social partnership at the national level. In addition, the continuous rise in the number of working-age people claiming sickness and disability benefits may constitute a constraint for a further increase in labour supply. Although the overall unemployment rate remains well below the EU average, there are significant disparities in terms of access to the labour market, with a concentration of economic inactivity and long term unemployment in certain regions and amongst particularly disadvantaged persons (lone parents, households with no-one in work, certain ethnic minorities, male older workers, disabled people and the low skilled). This calls for strengthened and well targeted active labour market policies.The UK should therefore:Prevention and activation1. Implement active labour market policies leading to sustainable integration in the labour market, to alleviate the high concentration of unemployment and inactivity in certain communities. Special attention should be paid to people facing particular problems in the labour market and at risk of becoming long-term unemployed, working poor or inactive.Labour supply and active ageing2. Ensure that all those who are able to work have the opportunities and incentives to do so, in particular by reforming sickness and disability benefit schemes.Gender Equality3. Strengthen efforts to address the underlying factors of the gender pay gap, in particular by improving the balance in representation between women and men across occupations and sectors, and increasing access to training for low paid women part-time workers. Further improve the provision of affordable care services for children and other dependants.Social partnership4. Further develop social partnership at the national and workplace levels to help improve productivity and quality in work, in particular by addressing low levels of basic skills and skills gaps amongst the workforce.


               16.1.2009

               EN

               Official Journal of the European Union

               C 11/1

         Recommendations for elements of a Community End-Use Certificate — Agreed by the Council Working Party on Dual Use Goods on 31 October 2008 and noted by the Permanent Representatives' Committee on 23 December 2008 to be provided, when appropriate, duly signed and stamped, by exporters applying to their national authorities for authorisations to export dual use items (cf. Article 6(2) of Council Regulation (EC) No 1334/2000)
   (2009/C 11/01)


No C 15/6                               Official Journal of the European Communities                                21.1.87
                                                               II
                                                       (Preparatory Acts)
                                                 COMMISSION
             Recommendation for a Council Regulation on the conclusion of the Agreement in the form of
             an exchange of letters between the European Economic Community and the People's
             Democratic Republic of Algeria fixing the additional amount to be deducted from the levy on
             imports into the Community of untreated olive oil, originating in Algeria, for the period
                                            1 November 1986 to 31 October 1987
                                                     COM(86) 633 final/ 2
                              (Submitted by the Commission to the Council on 11 December 1986)
                                                         (87/C 15/08)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                           HAS ADOPTED THIS REGULATION:
                                                                                Article 1
Having regard to the Treaty establishing the European
Economic Community, and in particular Article 43                   The Agreement in the form of an exchange of letters
thereof,                                                           between the European Economic Community and the
                                                                   People's Democratic Republic of Algeria fixing the
Having regard to the Cooperation Agreement between                 additional amount to be deducted from the levy on
the European Economic Community and the People's                   imports into the Community of untreated olive oil falling
Democratic Republic of Algeria ('), which entered into             within subheading 15.07 A I of the Common Customs
force on 1 November 1978, and in particular to Annex B             Tariff and originating in Algeria, for the period
thereof,                                                            1 November 1986 to 31 October 1987 is hereby
                                                                   approved on behalf on the Community.
Having regard      to    the   recommendation     from    the
Commission,                                                        The text of the Agreement is attached to this Regulation.
Having regard to the opinion of the European Par-                                             Article 2
liament,                                                           The President of the Council is hereby authorized to
                                                                   designate the person empowered to sign the Agreement
Whereas it is necessary to approve the Agreement in the            for the purpose of binding the Community.
form of an exchange of letters between the European
Economic Community and the People's Democratic                                                Article 3
Republic of Algeria fixing the additional amount to be
deducted from the levy on imports into the Community               This Regulation shall enter into force on the day
of untreated olive oil, falling within subheading 15.07            following its publication in the Official Journal of the
A I of the Common Customs Tariff and originating in                European Communities.
Algeria, for the period 1 November 1986 to 31 October              This Regultion shall be binding in its entirety and
 1987,                                                             directly applicable in all Member States.
(') OJ No L 263, 27. 9. 1978, p. 2.


Important legal notice

|

52009PC0572

Recommendation for a Council Decision on the position to be taken by the European Community regarding the renegotiation of the Monetary Agreement with the Republic of San Marino  /* COM/2009/0572 final - CNB 2009/0159 */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 16.10.2009COM(2009) 572 final2009/0159 (CNB)Recommendation for aCOUNCIL DECISIONon the position to be taken by the European Community regarding the renegotiation of the Monetary Agreement with the Republic of San MarinoEXPLANATORY MEMORANDUMThe Monetary Agreements were concluded between the European Community and Monaco, San Marino and Vatican in order to give legal continuity to the arrangements which existed between these countries on the one hand and France and Italy on the other before the introduction of the euro.Ten years after the euro replaced the legacy currencies of Italy and France used by Monaco, San Marino and Vatican, the Council invited the Commission to review the functioning of the Monetary Agreements[1]. The results of the assessment were adopted in the 'Commission Communication on the functioning of the Monetary Agreements with Monaco, San Marino and Vatican'[2]. The Commission concluded that the Monetary Agreements in their present form need to be amended with a view to ensuring a more consistent approach in the relations between the Community and the countries having signed the Agreements. The present draft Recommendation for a Council Decision defines the position to be taken by the Community in the renegotiation of the Agreement with the Republic of San Marino.The Commission proposes to renegotiate and amend the following provisions:-  Transposition of relevant EC legislationThe obligations of Monaco, San Marino and Vatican stemming from their respective Monetary Agreements with the Community are very unequal.The Monetary Agreement with the Principality of Monaco comprises the biggest number of obligations. Contrary to the Agreement with Monaco, the Agreements with San Marino and Vatican do not entail any specific obligation to transpose EU legislation in the domain of protection of euro cash against counterfeiting and the ways of cooperation with the Community in this area. In order to create a level playing field and ensure appropriate protection of euro banknotes and coins against counterfeiting San Marino, together with Vatican, shall apply the relevant Community legislation.The financial institutions carrying out their activities in the countries having signed the Monetary Agreements may have access to interbank settlement and payments and securities settlement system in the European Union. The Principality of Monaco is effectively using this possibility and for this purpose it has to apply the relevant Community financial and banking legislation. Given the size of the banking sector in San Marino and its close interaction with the banks active in the euro area (i.e. the financial institutions of San Marino are accessing the payment systems via Italy's banks), the Republic of San Marino should also align its banking and financial sector legislation with that applicable in the Community . Due to the volume of the Community legislation and limited administrative capacities of San Marino, the transitional period of 5 years should be granted to San Marino.-  Follow-up mechanismsIn contrast with the procedure envisaged for the Agreement with Monaco, no provision was made for a follow-up procedure in the Agreements signed with San Marino and Vatican. In the absence of regular formal follow-up, San Marino and Vatican do not regularly report on the implementation of the Agreements and they are not properly informed of legislative developments in the fields covered by the Agreements. The Commission therefore proposes creating two new joint committees - similar to the one existing with the Principality of Monaco - with the Republic of San Marino and the Vatican City State.The Joint Committee with the Republic of San Marino would be composed of representatives of San Marino, Italy, the European Commission and the European Central Bank. The Committee would be in charge of facilitating the implementation of the Agreement and discussing possible amendments to the list of the Community legislation to be applied by San Marino. It would also have a decision making power with regard to a limited number of issues conferred to it by the Monetary Agreement (e.g. approving the change of a Mint producing San Marino euro coins).-  Ceiling for the issuance of euro coinsFor historical reasons, the ceilings for maximum yearly issuance of Monaco, San Marino and Vatican were fixed in two different ways (Monaco is currently authorised to issue a maximum of 1/500th of the quantity of coins minted in France while San Marino and Vatican have fixed quotas) leading to very different results.With a view to ensuring fair treatment to all countries with the Monetary Agreements, the Commission proposes to introduce a new uniform method for calculating the ceilings of euro coins issuance (i.e. to be also used in all future Agreements).The new ceilings would be composed of a fixed and a variable part:1.  The fixed part should aim at covering the demand of coin collectors. According to common estimates, a total value of around €2 100 000 should be sufficient to cover the demand of the collectors' market.[3]2.  The variable part would be based, in the case of San Marino, on the average per capita issuance of Italy. The average number of coins per capita issued in Italy in (n-1) would be multiplied by the number of inhabitants of San Marino.3.  Rules for minting euro coinsThe current Monetary Agreements reserve the right to produce the euro coins of San Marino and Vatican to the national Mint of Italy. This rule was introduced for historical reasons, at a time when euro cash was not yet in circulation and nearly all the euro-area countries were minting euro coins only for their own needs. The situation has now evolved, with a number of euro-area countries today having their coins minted in another euro-area country.The Commission therefore proposes to open the possibility for San Marino and Vatican to order their euro coins in another EU Mint experienced in producing euro coins . The change of Mint would however have to be approved by the Joint Committee.-  Election of jurisdictionThe present Monetary Agreements have not given the Community any leverage in the event that the countries having signed the Monetary Agreements do not fulfil their obligations (e.g. do not transpose the relevant Community legislation in due time), apart from the ultimate – and therefore unlikely - possibility to withdraw unilaterally from the Agreement. The Commission therefore proposes to elect the European Court of Justice as the jurisdiction responsible for settling disputes which may arise from the application of the Monetary Agreements.2009/0159 (CNB)Recommendation for aCOUNCIL DECISIONon the position to be taken by the European Community regarding the renegotiation of the Monetary Agreement with the Republic of San MarinoTHE COUNCIL OF THE EUROPEAN UNION,Having regard to the Treaty establishing the European Community, and in particular Article 111.3 thereof,Having regard to the recommendation from the Commission[4],Having regard to the opinion of the European Central Bank[5],Whereas:4.  The Community has the competence for monetary and exchange rate matters as of the date of the introduction of the euro;5.  The Council is to determine the arrangements for the negotiation and conclusion of agreements concerning monetary or foreign exchange regime matter;6.  The Italian Republic, on behalf of the Community, concluded on 29 November 2000 a Monetary Agreement with the Republic of San Marino7.  The Council concluded on 10 February 2009 that the Commission should review the functioning of the existing agreements and consider possible increases in the ceilings for coin issuance;8.  The Commission concluded in the 'Communication on the functioning of the Monetary Agreements with Monaco, San Marino and Vatican'[6] that the Monetary Agreement with the Republic of san Marino in its present form needs to be amended with a view to ensuring a more consistent approach in the relations between the Community and the Countries having signed a monetary agreement;9.  The Monetary Agreement with San Marino should therefore be renegotiated as soon as possible so that the new regime enters into force on 1st January 2010, together with the new rules on the modalities of introduction of euro coins set by the Commission Recommendation of 19 December 2008 on common guidelines for the national side and the issuance of euro coins intended for circulation, endorsed by the Council in its conclusions of 10 February 2009.HAS ADOPTED THIS DECISION:Article 1The Italian Republic shall notify the Republic of San Marino of the need to amend the existing Monetary Agreement between the Italian Republic, on behalf of the European Community, and the Republic of San Marino at the earliest possible date and offer renegotiation on the relevant provisions of the Agreement.Article 2The Community shall seek the following changes in the renegotiation of the Agreement with the Republic of San Marino:10.  The Agreement shall be concluded between the Community and the Republic of San Marino. The text of the agreement shall be a codified text of the current agreement with the amendments.11.  The Republic of San Marino shall undertake to adopt all appropriate measures, through direct transpositions or possibly equivalent actions :12.  for the application of all relevant Community banking and financial legislation, in particular legislation relating to the activity and supervision of the institutions concerned;13.  for the application of all relevant Community legislation on the prevention of money laundering, on the prevention of fraud and counterfeiting of cash and non-cash means of payment, on medals and tokens and on statistical reporting requirements.The Republic of San Marino shall ensure that all relevant Community banking and financial legislation is implemented in its territory before 1st January 2015. The Agreement shall contain an annex detailing the deadlines for the adoption of the measures above mentioned.14.  The method for determining the ceiling of issuance of San Marino euro coins shall be revised. The new ceiling shall be calculated using a method which will combine a fixed part aimed at avoiding excessive numismatic speculation on San Marino coins by satisfying the demand of the collector coin market and a variable part, calculated as the average per capita coin issuance of Italy in the year n-1 multiplied by the number of inhabitants of San Marino.15.  A Joint Committee shall be established in order to monitor the progress in the implementation of the Agreement. It shall be composed of representatives of the Republic of San Marino, the Republic of Italy, the Commission and the ECB. It shall have the possibility to revise each year the fixed part with a view to taking into account inflation and the evolution of the collector market. It shall adopt decisions unanimously. The Joint Committee shall adopt its own rules of procedure.16.  The euro coins of the Republic of San Marino shall be minted by the Instituto Poligrafico e Zecca dello Stato. The Republic of San Marino shall however have the possibility to take another contractor among the EU Mints striking euro coins, with the agreement of the Joint Committee. The volume of coins issued by the Republic of San Marino shall be added to the volume of coins issued by the home country of the producing mint for the purpose of the ECB approval of the total volume of the issuance.17.  The Court of Justice of the European Communities shall be elected as the body in charge of settling disputes which may arise from the application of the Agreement.If the Community or San Marino consider that the other Party has not fulfilled an obligation under the Monetary Agreement, it may bring the matter before the Court of Justice. The judgment of the Court shall be binding on the Parties, which will take the necessary measures to comply with the judgment within a period to be decided by the Court in its judgment. In case the Community or San Marino fail to take the necessary measures to comply with the judgment within the period, the other Party can terminate immediately the Agreement.Article 3The negotiations with the Republic of San Marino shall be conducted by the Italian Republic and the Commission on behalf of the Community. The European Central Bank shall be fully associated with the negotiations in its field of competence. The Italian Republic and the Commission shall submit the draft agreement to the Economic and Financial Committee for opinion.Article 4The Council shall conclude the agreement.This Decision is addressed to the Italian Republic and the Commission.Done at Brussels,For the CouncilThe President [1] Council Conclusions on 'Common guidelines for the national sides and the issuance of euro coins intended for circulation', 2922nd ECOFIN Council meeting of 10 February 2009.[2] COM (2009)359 of 14 July 2009[3] San Marino has for instance concentrated on striking selected euro denomination coins with some success: these coins are now used at face value for transactions.[4] OJ C , , p. .[5] OJ C , , p. .[6] COM(2009)359