Avis juridique important

|

31991K0556

Commission Recommendation No 556/91/ECSC of 7 March 1991 on Community surveillance of imports of certain iron and steel products covered by the ECSC Treaty and originating in non-member countries

Official Journal L 062 , 08/03/1991 P. 0018 - 0022

COMMISSION RECOMMENDATION No 556/91/ECSC  of 7 March 1991  on Community surveillance of imports of certain iron and steel products covered by the ECSC Treaty and originating in non-member countriesTHE COMMISSION OF THE EUROPEAN  COMMUNITIES,  Having regard to the Treaty establishing the European Coal and Steel Community, and in particular Article 74 thereof,  Whereas by recommendation No 3979/89/ECSC (1), the Commission subjected to a Community monitoring system the imports into the Community of certain iron and steel products covered by the ECSC Treaty;  Whereas the reasons which originally led the Commission to introduce this measure continue to apply and the said surveillance system should therefore be continued so as to provide more detailed information on foreseeable imports and the terms and  conditions of such imports;  Whereas an abnormal increase in imports of seconds and products of substandard quality has recently been observed, and these imports should be monitored more closely,  MAKES THE FOLLOWING RECOMMENDATION:  Article 1  1. The release for free circulation in the Community of iron and steel products covered by the ECSC Treaty, listed in Annex II and originating in non-member countries other than EFTA, shall be subject to the issue of an import document.  2. The products referred to in paragraph 1 shall be considered as being of first-choice quality until the importer provides proof to the contrary.  3. The import document shall be issued or endorsed by the Member States, free of charge and for any quantities requested, upon receipt of the application and in any case within not more than 10 working days from the submission of the completed  application and presentation of two duplicates of the relevant purchase contract(s) and the vendor's order confirmation(s). The originals of these documents as well as the pro forma invoice must be produced if required by the licence-issuing authority.   4. Paragraph 1 shall apply without prejudice to the maintenance of existing quantitative restrictions imposed by Member States on certain iron and steel products in respect of certain non-member countries.  5. The period of validity of the import document is hereby fixed at three months, without prejudice to possible changes in the import arrangements in force.  Article 2  1. The importer's application must state:  (a) the name, address, occupation, telephone, telefax and telex numbers of the importer;  (b) the description of the goods and the CN code (2);  (c) the country of origin;  (d) the country of consignment;  (e) the net weight, by individual lots;  (f) the currency and value invoiced (cif or daf);  (g) the proposed date and place of customs clearance;  (h) where the products concerned are seconds or of substandard quality, the precise characteristics establishing that this is the case, in accordance with the instructions given by the Commission in its communication on distinguishing criteria.  2. The following additional information shall also be supplied by the importer:  A. For goods originating in and consigned direct from one of the countries listed in Annex I (direct importation):  (a) the commercial description of the goods, including exact specifications, whether they are for use in shipbuilding, details of the exporter and place of delivery;  (b) the delivered price per tonne, exclusive of VAT, including details of all the items figuring in the calculation of the delivered price, particularly extras, rebates and transport costs to the point of delivery;  (c) particulars of:  (i) the Community producer's price list chosen for calculating the delivered price, including the date of the chosen list; or  (ii) where appropriate, the non-member country offer on which the terms of the delivery have been aligned, in sufficient detail to identify the offer and including the date;  (d) for goods falling within CN code 7201, the name and address of the final purchaser, where known.  B. For goods originating in one of the countries listed in Annex I but consigned from any non-member country other than the country of origin (indirect importation), and for goods originating in a non-member country not listed in Annex I:  (a) a complete description corresponding to that appearing in the list of products subject to the basic prices in force, and details of the exporter and the place of delivery;  (b) the cif or daf price at the Community frontier, per tonne, in the currency of the contract, plus customs duties applicable and unloading costs;  (c) for goods falling within CN code 7201, the name and address of the final purchaser, where known.  3. The importer shall declare that neither he nor the purchaser will be granted any reduction, rebate or other form of refund not mentioned in the contract for the transaction, either at the time of the transaction or subsequently.  4. The importer shall certify that his application for an import document is accurate.  5. The importer shall state whether his application is a repeat of a previous application concerning the same delivery.  Article 3  1. When an import document for goods originating in the countries listed in Annex I is granted, the Member States shall notify the Commission of any differences between:  - the delivered price calculated on the basis of the reference price list, and  - the delivered price calculated on the basis of the contract or the pro forma invoice.  They shall also furnish all necessary documents, in particular the duplicates of import licence applications, purchase contracts and vendor's order confirmations, whenever the price difference noted is considerable or relates to a large quantity.  If abnormally high levels of imports of seconds or substandard goods are observed, the Commission shall in addition request that Member States provide, for a period that it shall determine, proof as to the nature of these products, in accordance with  the criteria referred to in Article 2 (1) (h). This shall apply to imports in which the proportion of seconds or substandard goods exceeds 10 % of the total delivery specified in the contract, and where their quantity exceeds 50 tonnes.  2. When an import document is granted for goods:  - originating in non-member countries other than those listed in Annex I,  - originating in a country listed in Annex I, but consigned from a non-member country other than the country of origin (indirect importation),  Member States shall inform the Commission of any difference, in ecus per tonne, between:  - the basic price as published in the Official Journal of the European Communities, and  - the cif or daf price at the Community frontier, including customs duties applicable and unloading costs.  If abnormally high levels of imports of seconds or substandard goods are observed, the Commission shall in addition request that the Member States provide, for a period that it shall determine, proof as to the nature of these products, in accordance  with the criteria referred to in Article 2 (1) (h). This shall apply to imports in which the proportion of seconds or substandard goods exceeds 10 % of the total delivery specified in the contract, and where their quantity exceeds 50 tonnes.  3. Within the first 10 days of each month, the Member States shall notify the Commission of the tonnage and values (calculated on the basis of the cif or daf prices) for which import documents were issued during the preceding month.  4. The information supplied by the Member States shall include:  (a) a breakdown by country of origin;  (b) a breakdown by product (combined nomenclature) for each country of origin;  (c) for each country of origin, the quantities of products declared as being seconds or of substandard quality;  (d) within the total of any one product originating in any one country, the quantities not imported direct from that country and, in such cases, an indication of the country of consignment;  (e) full details of each case detected by customs of fraud relating to a large quantity (in accordance with the standard set out under paragraphs 1 and 2) of products declared as being seconds or of substandard quality.  5. Within the first 10 days of each month, Member States shall notify to the Commission:  (a) the tonnage and the values (calculated on the basis of the cif or daf price) for which import documents expired during the preceding month without having been fully or partially used;  (b) the tonnage and the values (calculated on the basis of the cif or daf price) for which previously-issued import documents were renewed in whole or in part in the preceding month.  Article 4  The recommendation is addressed to the Member States.  Article 5  This recommendation shall take effect on the day of its publication in the Official Journal of the European Communities.  It shall apply until 31 December 1991.  Done at Brussels, 7 March 1991. For the Commission  Frans ANDRIESSEN  Vice President  (1) OJ No L 380, 29. 12. 1989, p. 17.  (2) OJ No L 247, 10. 9. 1990, p. 1.    ANNEX I    Brazil  Poland  Bulgaria  Romania  Czechoslovakia  Hungary   ANNEX II    7201 10 11  7201 10 19  7201 10 30  7201 10 90  7201 20 00  7201 30 10  7201 30 90  7201 40 00 7202 11 20  7202 11 80  7202 99 11  7203 90 00  7204 50 10  7204 50 90  7206 10 00  7206 90 00  7207 11 11  7207 11 19  7207 12 11  7207 12 19  7207 19 11  7207 19 15  7207 19 31  7207 20 11  7207 20 15  7207 20 17  7207 20 31  7207 20 33  7207 20 51  7207 20 55  7207 20 57  7207 20 71  7208 11 00  7208 12 10  7208 12 91  7208 12 95  7208 12 98  7208 13 10  7208 13 91  7208 13 95  7208 13 98  7208 14 10  7208 14 91  7208 14 99  7208 21 10  7208 21 90  7208 22 10  7208 22 91   7208 22 95  7208 22 98  7208 23 10  7208 23 91  7208 23 95  7208 23 98  7208 24 10  7208 24 91  7208 24 99  7208 31 00 7208 32 10  7208 32 30  7208 32 51  7208 32 59  7208 32 91  7208 32 99  7208 33 10  7208 33 91  7208 33 99  7208 34 10  7208 34 90  7208 35 10  7208 41 00  7208 42 10  7208 42 30  7208 42 51  7208 42 59  7208 42 91  7208 42 99  7208 43 10  7208 43 91  7208 43 99  7208 44 10  7208 44 90  7208 45 10  7208 90 10  7209 11 00  7209 12 10  7209 12 90  7209 13 10  7209 13 90  7209 14 10  7209 14 90  7209 21 00  7209 22 10  7209 22 90  7209 23 10  7209 23 90  7209 24 10  7209 24 91  7209 24 99   7209 31 00  7209 32 10  7209 32 90  7209 33 10  7209 33 90  7209 34 10  7209 34 90  7209 41 00  7209 42 10  7209 42 90  7209 43 10 7209 43 90  7209 44 10  7209 44 90  7209 90 10  7210 11 10  7210 12 11  7210 12 19  7210 20 10  7210 31 10  7210 39 10  7210 41 10  7210 49 10  7210 50 10  7210 60 11  7210 60 19  7210 70 21  7210 70 29  7210 90 31  7210 90 33  7210 90 35  7210 90 39  7211 11 00  7211 12 10  7211 12 90  7211 19 10  7211 19 91  7211 19 99  7211 21 00  7211 22 10  7211 22 90  7211 29 10  7211 29 91  7211 29 99  7211 30 10  7211 41 10  7211 41 91  7211 49 10  7211 90 11  7212 10 10  7212 10 91   7212 21 11  7212 29 11  7212 30 11  7212 40 10  7212 40 91  7212 50 31  7212 50 51  7212 60 11  7212 60 91  7213 10 00  7213 20 00  7213 31 00  7213 39 00  7213 41 00  7213 49 00  7213 50 10  7213 50 90  7214 20 00  7214 30 00  7214 40 10 721440 91  7214 40 99  7214 50 10  7214 50 91  7214 50 99  7214 60 00  7215 90 10  7216 10 00  7216 21 00  7216 22 00  7216 31 11  7216 31 19  7216 31 91  7216 31 99  7216 32 11  7216 32 19  7216 32 91  7216 32 99  7216 33 10  7216 33 90  7216 40 10  7216 40 90  7216 50 10  7216 50 90  7216 90 10  7218 10 00  7218 90 11  7218 90 13  7218 90 15   7218 90 19  7218 90 50  7219 11 10  7219 11 90  7219 12 10  7219 12 90  7219 13 10  7219 13 90  7219 14 10  7219 14 90  7219 21 11  7219 21 19  7219 21 90  7219 22 10  7219 22 90  7219 23 10  7219 23 90  7219 24 10 7219 24 90  7219 31 10  7219 31 90  7219 32 10  7219 32 90  7219 33 10  7219 33 90  7219 34 10  7219 34 90  7219 35 10  7219 35 90  7219 90 11  7219 90 19  7220 11 00  7220 12 00  7220 20 10  7220 90 11  7220 90 31  7221 00 10  7221 00 90  7222 10 11  7222 10 19  7222 10 51  7222 10 59  7222 10 99  7222 30 10  7222 40 11  7222 40 19  7222 40 30  7224 10 00  7224 90 01   7224 90 09  7224 90 15  7224 90 30  7225 10 10  7225 10 91  7225 10 99  7225 20 10  7225 20 30  7225 30 00  7225 40 10  7225 40 30  7225 40 50  7225 40 70  7225 40 90  7225 50 10  7225 50 90  7225 90 10 7226 10 10  7226 10 30  7226 20 10  7226 20 31  7226 20 51  7226 20 71  7226 91 10  7226 91 90  7226 92 10  7226 99 11  7226 99 31  7227 10 00  7227 20 00  7227 90 10  7227 90 30  7227 90 80  7228 10 10  7228 10 30  7228 20 11  7228 20 19  7228 20 30  7228 30 10  7228 30 30  7228 30 80  7228 60 10  7228 70 10  7228 70 31  7228 80 10  7228 80 90  7301 10 00


title: DRAFT AGREEMENT between the European Economic Community, the Republic of Austria and the Swiss Confederation on the extension of the application of the rules on Community transit#RECOMMENDATION FOR A REGULATION of the Council on the conclusion of an Agreement between the European Economic Community, the Republic of Austria and the Swiss Confederation, on the extension of the application of the rules on Community transit (Presented by the Commission to the Council)

text:
ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 23
Vol. 1977/0009
 ---pagebreak--- Disclaimer
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
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
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
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
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
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak---  COMMISSION OF THE EUROPEAN COMMUNITIES
                                     COM(77 ) 23 final .
                                     Brussels , 15 February 1977 *
                        DRAFT AGREEMENT
                  between the European Economic Community ,
                  the Republic of Austria and the Swiss
                  Confederation on the extension of the
                  application of the rules on Community
                  transit
                        RECOMMENDATION FOR A REGULATION
                  of the Council on the conclusion of an
                  Agreement between the European Economic
                  Community , the Republic of Austria and
                  the Swiss Confederation , on the extension
                  of the application of the rules on
                  Community transit
                  ( Presented by the Commission to the
                    Council )
COM(77 ) 23 final
 ---pagebreak---                            REPORT ON THE NEGOTIATIONS                             i
                                                                                I
                                                                                \
 I.  INTRODUCTION
                                                                                !
     The Council authorized the Commission in a Decision adopted on                !
     25 June 1976 " to negotiate an Agreement between the European Economic
     Community, the Republic of Austria and the Swiss Confederation to fcxtend
     the application of the rules on Community transit ."
     This Decision followed the recommendation from the Commission to the
     Council on 12 March 1976^' .
     The Agreement is intended to extend the scope of the bilateral Agreement
     concluded on 23 and 30 November 1972 between the EEC and the Swiss
     Confederation and the EEC and the Republic of Austria respectively on the
     application of Community transit rules^o goods crossing Community territo
     ry as well as the territories of Austria and Switzerland . As each of
     the two Agreements was strictly bilateral , no provision was made for
     that kind of traffic .
     Negotiations on the proposed Agreement were held in Berne on 20-     and 21
     October 1976 . The draft Agreement , Annex A to this report , was initialled
     on 21 October 1976 .
II . BRIEF FOR THE NEGOTIATIONS
     Negotiations were carried out on the basis of the guidelines laid down
     by the Council in the Decision of 25 June 1976 .
     A. Scope of the Agreement
     The application of the EEC-Austria and EEC-Switzerland Agreements are to
     be extended to cover the carriage of goods between two points in the
     Community which also cross both Austria and Switzerland so as to reduce
                               . .     (3)
     formalities to a minimum .
     The proposed Agreement also provides that the regulations on Community
     transit may be applied to any other carriage of goods which cross both
     Austria and Switzerland ( see Article 2 of Annex A ).
     ( 1 ) See S / 498 / 76 ( EFTA ) < CH 2 ) (A 5 ) ( EC 02 ) + corr.1
     ( 2 ) 0J No L 365 of 31.12.1973 and 0J No L 58 of 28.2.1974
     ( 3 ) The Agreement is expected to apply also to the Principality of
           Liechtenstein ( see Article 4 of Anrt?x A )
                                                            /
 ---pagebreak---                           - 2 -
B « Undertakinq qiven foy Austria and Switzerland
The Agreement , as negotiated, stipulates that Austria and Switzerland
in their mutual relations subject to the limits referred to under A
above , shall have the same rights and obligations as any Member State
vis-a-vis either of them ( see Article 3(1 ) and ( 2) of Annex A ). Special
provisions in the EEC-Switzerland Agreement , for which there are no corres
ponding provisions in the EEC-Austria Agreement , shall also apply in
dealings between Austria and Switzerland ( see Article 3(3 ) of Annex A ).
C. Administration of the^ Agreement
In accordance with Directives adopted by the Council , under which
any problem of implementation of the proposed Agreement must be dealt
with by the Joint Committees set up under the two Agreements referred to
under I , a special clause to this effect in the draft Agreement was
not considered necessary - The work of thetwo Joint Committees is prepared
 at Working Party meetings set up for this purpose by the procedural
 rules of those Joint Committees .
 0 . Implementation of the Agreement
 The Agreement will come into force on the first day of the second month
 following the date on which the Contracting Parties notify each other of
 the completion of the necessary procedures ( see Article 5 of Annex A ).
 Any of the Contracting Parties may denounce the Agreement , providing
 six months' notice is given ( see Article 6 of Annex A ).
  III . LEGAL BASIS
 The Commission considers that the Agreement should be concluded under
 Article 113 of the Treaty. The bilateral Agreements on the application
  of the Community transit rules were concluded on the same basis .
  IV . CONCLUSIONS AND RECOMMENDATIONS
  Briefly, the Commission considers that the Agreement as negotiated
  fully meets the aims of the negotiations .
  Accordinly, the Commission is submitting to the Council :
  - the text of the Agreement , as negotiated , ( Annex A )
  - a Recommendation for a regulation on the conclusion of this
     Agreement (Annex B ).
                                                                     *
 ---pagebreak---                                                     ANNEX A
                            PRA FT
                         AGREEMENT
                between the European Economic Community /,
                the Republic of Austria and the Swiss
                Confederation on the extension of the
                application of the rules on Community
                transit
  THE EUROPEAN ECONOMIC COMMUNITY ,
  THE REPUBLIC OF AUSTRIA and
  THE SWISS CONFEDERATION ,
  DESIRING to simplify the customs formalities at the frontiers in
  respect of goods traffic through both Austrian and Swiss territories
  CONSIDERING that simplification can be achieved by the extension of the
  application of the provisions of the Transit Agreements concluded between
^the European Economic Community and the Swiss Confederation and
  the Republic of Austria in respect of the carriage of goods through both
  those Contracting Parties .
HAVE AGREED AS FOLLOWS       :
                             Article 1
           For the purpose of this Agreement :
 ( a ) the " EEC-Switzerland Transit Agreement " means the Agreement signed on
        23 November 1972 , as currently amended or as may be amended , between
        the European Economic Community and the Swiss Confederation on the
        application of the rules on Community transit ;
 ( b ) .the " EEC -Austria Transit Agreement " means the Agreement signed on
       30 November 1972 , as currently amended or as may be amended , between the
       European Economic Community and the Republic of Austria on the applica
       tion of the rules on Community transit ;
< c ) the "Community" means the European Economic Community;
( d ) a "Member State" means a Member State of the Community .
 ---pagebreak---                              Article 2
          The provisions of the EEC-Switzerland Transit Agreement and of the
  EEC-Austria Transit Agreement shall be extended to the movement of goods
  between two points situated in the Community through both the territory of
 Austria and the territory of Switzerland .
          These rules may also apply to any other movement of goods through
 both the territory of Austria and the territory of Switzerland .
                            Article 3
 1-       For the purposes of applying Article 2 and without prejudice to
Article 13 ( 1 ) of the EEC–Switzerland and EEC–Austria transit Agreement *
" the Swiss Confederation shall , in relation to the Republic of Austria ,
    have the same rights and obligations as a Member State ;
- the Republic of Austria shall , in relation to the Swiss Confederation,
    have the same rights and obligations as a Member State .
2.       Guarantees drawn up in accordance with the specimens in the two
Agreements shall be completed accordingly .
3.       The following provisions which do not appear in the EEC-Austria Transit
Agreement shall also apply in dealings between the Swiss Confederation and
the Republic of Austria :
Ca ) where , in application of Article 4 , paragraphs 1 and 2 of the two
       Transit Agreements , criminal proceedings prove necessary these shall
      be carried out in each State in accordance with the provisions of national
       law on prosecutions for customs offences .
( b ) the customs administrations of the Republic of Austria or of the Swiss
      Confederation shall , in the circumstances covered by Article 4 of the
      two Transit Agreements , furnish all information of their disposal ,
      where necessary following investigation carried out at the request of
      the customs administrations of the Swiss Confederation or of the Republic
      of Austria relating to the goods or to persons convicted or suspected
      of having infringed provisions of the Community transit regulations .
      However , the administrative assistance referred to in the said Article 4
      may, in respect of persons neither convicted nor suspected of having
 ---pagebreak---                               - 3 -
          infringed tnese provisions having regard to the provisions of
          national law which guarantee the protection of industrial , commercial
          or professional secrecy , be limited to such information as does not
          imperil this protection .
   ( c)   Internal Community transit documents shall not be issued in respect
          of goods reconsigned from Switzerland after being warehoused in a
          private warehouse within the meaning of the Swiss Federal customs law .
                               Article 4
          This Agreement shall apply to the Principality of Liechtenstein as
 long as that Principality remains bound to the Swiss Confederation by a
 customs union treaty .
                               Article 5
            This Agreement shall enter into force on the first day of the second
 month following the day on which the Contracting Parties notify each other
of the completion of the procedures necessary to that end .
                               Article 6
            This Agreement may be denounced by any of the Contracting Parties ,
subject to six months * notice .
                               Article 7
           This Agreement is drawn up in three copies in the Danish , Dutch ,
English , French , German and Italian languages , all six texts being equally
authenti c .
                                                 /
 ---pagebreak---                                                 ANNEX B
                      RECOMMENDATION
               for a Council Regulation on the
               conclusion of an Agreement between
               the European Economic Community , the
               Republic of Austria and the
               Swiss Confederation , on the extension "
               of the application of the rules on
               Community transit
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 Agreements*^ ^^ between the European Economic Community
and Switzerland and Austria on the application of the rules on Community
transit , signed respectively on 23 and 30 November 1972 , are designed
to simplify frontier formalities in repsect of goods crossing Switzerland
or Austria from and to points in the Community ;
Whereas this objective is not achieved whenever goods during the same
journey cross both Switzerland and Austria , each Agreement being strictly
bilateral ;
Whereas it would be          the 1nt9fests of all the Contracting Parties to the
two aforementioned Agreements to extend their scope to include the
carriage of goods through both Austria and Switzerland ;
HAS ADOPTED THIS REGULATION :
                               Article 1
The Agreement between the European Economic Community , the Republic of
Austria and the Swiss Confederation , on the extension of the application
of the rules on Community transit is concluded on behalf of the Community .
 ( 1 ) 0J No L 365 , 31.12.1973 , p. 226
 ( 2 ) 0J No L   58 , 28.2 . 1974 , p . AO       •••/• •
 ---pagebreak---  The text of the Agreement is annexed to this Regulation .
                           Article 2
 The President of the Council shall , by virtue of Article 5 of the Agree
 ment , notify the completion by the Community^'of the procedures necessary
 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 Communities .
This Regulation shall be binding in its entirety and directly applicable
in all Member States .
Done at Brussels ,                             For the Council
                                                 The President
( 1 ) The date on which the Agreement enters into force will be published
      in the Official Journal of the European Communities


Avis juridique important

|

31978H0358

78/358/EEC: Commission Recommendation of 29 March 1978 to the Member States on the use of saccharin as a food ingredient and for sale as such in tablet form to the final consumer

Official Journal L 103 , 15/04/1978 P. 0032 - 0032 Greek special edition: Chapter 03 Volume 20 P. 0209  Spanish special edition: Chapter 13 Volume 8 P. 0174  Portuguese special edition Chapter 13 Volume 8 P. 0174

COMMISSION RECOMMENDATION of 29 March 1978 to the Member States on the use of saccharin as a food ingredient and for sale as such in tablet form to the final consumer (78/358/EEC) I. 1. The Scientific Committee for Food, in its opinion of 24 June 1977, concluded the following:      1. The temporary ADI (acceptable daily intake) of 0 to 2 75 mg/kg bw proposed by the Joint FAO/WHO Expert Committee on Food Additives is endorsed. (Some members of the Committee felt that saccharin should not be used in food for general consumption.)           2. There is a need for a specification, listing detailed purity criteria, which includes appropriate limits for impurities.           3. Saccharin should not be used in food specially prepared for young children (up to three years old).           4. The intake of saccharin by children and pregnant women should be limited. To facilitate this limitation the Committee is of the opinion that the consumer should be adequately informed of the presence of saccharin in any food.  I. 2. The Commission endorses the conclusions of the Scientific Committee for Food. As far as the second conclusion of the Committee is concerned the Commission is elaborating purity criteria for saccharin in order to implement the advice as soon as possible. The other conclusions of the Scientific Committee for Food have implications in various sectors of the Commission's activities:        - the Commission's proposal on labelling of foodstuffs, which is at an advanced stage in the Council, contains provisions directly relevant to the labelling suggestions made by the Committee;               - rules on the conditions under which additives may be used in foodstuffs are being developed in Directives on specific foods (e.g. soft drinks). The Commission is also examining the possibility of elaborating rules which comprehensively control the food uses of saccharin;               - Council Directive 77/94/EEC on foodstuffs for particular nutritional uses (1) outlines the basic rules under which Directives on specific aspects of the subject may be developed and the use of saccharin in such products may require separate legislation.                 The Commission believes that until such Community provisions are elaborated, Member States ought to take such measures as are necessary to comply with the advice of the Scientific Committee for Food in the matter. The Commission will keep the situation under continuous review.  II. In applying Article 155, second indent, of the Treaty establishing the European Economic Community, and until Community provisions on the matter are adopted the Commission recommends therefore to the Member States that      - national rules on the use of saccharin in foodstuffs should be developed, if necessary, so as to respect the ADI for saccharin, and to keep to a minimum the intake of saccharin by children;           - the use of saccharin in infant foods should be prohibited;           - foodstuffs should be labelled in such a way that the presence of saccharin is specifically and clearly mentioned;           - appropriate labelling provisions for saccharin sold in tablet form should be implemented to inform the purchaser of the possible dangers of excessive consumption of saccharin especially in the case of children and pregnant women.            Done at Brussels, 29 March 1978.  For the Commission  Étienne DAVIGNON  Member of the Commission  (1)OJ No L 26, 31.1.1977, p. 55.


title: 2011/644/EU: Council Recommendation of 15 February 2011 concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (10th EDF) for the financial year 2009

text:
               1.10.2011

               EN

               Official Journal of the European Union

               L 255/12

         COUNCIL RECOMMENDATION
   of 15 February 2011
   concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (10th EDF) for the financial year 2009
   (2011/644/EU)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union,
   Having regard to the Partnership agreement between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000 (1), amended by the Agreement signed in Luxembourg on 25 June 2005 (2),
   Having regard to the Internal Agreement between the Representatives of the Governments of the Member States, meeting within the Council, on the financing of Community aid under the multiannual financial framework for the period 2008 to 2013 in accordance with the ACP-EC Partnership Agreement and on the allocation of financial assistance for the Overseas Countries and Territories to which Part Four of the EC Treaty applies (3) (the ‘Internal Agreement’) setting up, amongst others, the 10th European Development Fund (10th EDF), and in particular Article 11(8) thereof,
   Having regard to Council Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable to the 10th European Development Fund (4), and in particular Articles 142 to 144 thereof,
   Having examined the revenue and expenditure account and the balance sheet relating to the operations of the 10th EDF as at 31 December 2009 and the Annual Report of the Court of Auditors on the activities funded by the eighth, ninth and tenth European Development Funds (EDFs) (5), concerning the financial year 2009, together with the Commission’s replies contained in that Annual Report,
   Whereas:

               (1)

               Pursuant to Article 11(8) of the Internal Agreement, the discharge for the financial management of the 10th EDF is to be given to the Commission by the European Parliament on the recommendation of the Council.

               (2)

               The overall implementation by the Commission of the operations of the 10th EDF during the financial year 2009 has been satisfactory,

         HEREBY RECOMMENDS that the European Parliament give the Commission a discharge in respect of the implementation of the operations of the 10th EDF for the financial year 2009.

      Done at Brussels, 15 February 2011.

            For the Council

            The President

         MATOLCSY Gy.

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

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

      (3)  OJ L 247, 9.9.2006, p. 32.

      (4)  OJ L 78, 19.3.2008, p. 1.

      (5)  OJ C 303, 9.11.2010, p. 243.


title: Council Recommendation of 12 July 2016 on the 2016 National Reform Programme of Malta and delivering a Council opinion on the 2016 Stability Programme of Malta

text:
               18.8.2016

               EN

               Official Journal of the European Union

               C 299/105

         COUNCIL RECOMMENDATION
   of 12 July 2016
   on the 2016 National Reform Programme of Malta and delivering a Council opinion on the 2016 Stability Programme of Malta
   (2016/C 299/25)
   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 November 2015, the Commission adopted the Annual Growth Survey, marking the start of the 2016 European Semester for economic policy coordination. The priorities of the Annual Growth Survey were endorsed by the European Council on 17-18 March 2016. On 26 November 2015, on the basis of Regulation (EU) No 1176/2011 of the European Parliament and of the Council (2), the Commission adopted the Alert Mechanism Report, in which it did not identify Malta as one of the Member States for which an in-depth review would be carried out. On the same day, the Commission also adopted a recommendation for a Council Recommendation on the economic policy of the euro area. This Recommendation was endorsed by the European Council on 18-19 February 2016 and adopted by the Council on 8 March 2016 (3). As a country whose currency is the euro and in view of the close interlinkages between the economies in the economic and monetary union, Malta should ensure the full and timely implementation of the Recommendation.

               (2)

               The 2016 country report for Malta was published on 26 February 2016. It assessed Malta's progress in addressing the country-specific recommendations adopted by the Council on 14 July 2015 and Malta's progress towards its national Europe 2020 targets.

               (3)

               On 15 April 2016, Malta submitted its 2016 National Reform Programme and its 2016 Stability Programme. In order to take account of their interlinkages, the two programmes have been assessed at the same time.

               (4)

               Relevant country-specific recommendations have been addressed in the programming of the European Structural and Investment Funds for the 2014-2020 period. As foreseen in Article 23 of Regulation (EU) No 1303/2013 of the European Parliament and of the Council (4), where it is necessary to support the implementation of relevant Council recommendations, the Commission may request a Member State to review and propose amendments to its Partnership Agreement and relevant programmes. The Commission has provided further details on how it would make use of this provision in guidelines on the application of the measures linking effectiveness of the European Structural and Investment Funds to sound economic governance.

               (5)

               Malta is currently in the preventive arm of the Stability and Growth Pact and subject to the debt rule. In its 2016 Stability Programme, the Government plans the headline balance to improve to a surplus of 0,1 % of GDP by 2019. The structural balance will gradually improve so that Malta's medium-term budgetary objective — a balanced budgetary position in structural terms — is reached by 2019. According to the Stability Programme, the general government debt-to-GDP ratio is expected to fall to 62,6 % in 2016 and decrease further to 55,5 % in 2019. The macroeconomic scenario underpinning these budgetary projections is plausible for 2016 and cautious for 2017-19. However, the measures needed to support the planned deficit targets from 2017 onwards have not been sufficiently specified. Based on the Commission 2016 spring forecast, there is a high risk of a significant deviation from the recommended adjustment towards the medium-term objective in 2015 and 2016 taken together, essentially stemming from the slippage in 2015 which needs to be corrected in 2016, and under unchanged policies in 2017. The slippage in 2015 is partly explained by the surge in investment largely due to the exceptionally high absorption of EU funds in the run up to the conclusion of the 2007-2013 programming period. In order to reduce the deviation over the two-years 2015-2016, the 2016 Stability Programme includes additional measures for 2016 that could not yet be included in the Commission 2016 spring forecast. These measures are targeted at reducing primary expenditure (by 0,16 % of GDP), especially in the areas of compensation of employees, intermediate consumption and capital transfers. In addition, the estimates of some of the revenue measures for 2016-2019 have been revised to reflect more up-to-date information, as well as the actual impact of the measures for 2015. Taken together, these measures have a net deficit-reducing impact of 0,2 % of GDP. Compared to the Commission forecast, factoring in these measures would improve the structural effort, and the structural balance pillar would point to some deviation on average over the two years 2015-2016, whereas a risk of a significant deviation would remain in 2017. Malta is forecast to comply with the debt reduction benchmark both in 2016 and 2017. Based on its assessment of the Stability Programme and taking into account the Commission 2016 spring forecast, the Council is of the opinion that there is a risk that Malta will not comply with the provisions of the Stability and Growth Pact. Therefore, further measures will be needed to ensure compliance in 2016 and 2017.

               (6)

               The long-term sustainability of public finances in Malta remains a challenge. This is mainly due to the budgetary impact of ageing-related costs, such as healthcare and long-term care and pensions. The pension system faces the double challenge of achieving sustainability while ensuring adequate retirement incomes. Pension expenditure was lower than the EU average in 2013, at 9,6 % of GDP, but it is projected to increase to 12,8 % by 2060, one of the highest in the Union. In March 2016, the Government adopted several measures to address the sustainability and the adequacy of the pensions system, but the budgetary impact has not yet been assessed. In order to improve the adequacy of the system, the contributory national minimum pension continues to evolve in 2016, with a view to reaching 60 % of median income by 2027, and to extend its coverage. Effectiveness of the reform will depend on safeguarding the employability of the older cohorts. In addition to pensions, public expenditure on healthcare and long-term care is projected to increase faster than the EU average, at 2,1 % and 1,2 % of GDP. The authorities have adopted a national health systems strategy and are conducting a healthcare spending review with a view to improving the efficiency of expenditure. However, the savings from these efforts have yet to materialise. Sustainability in the long run would benefit from using potential savings to address the projected expenditure growth.

               (7)

               Significant investments have been made, but education and training outcomes are still below target. This affects the quality of labour supply and the labour market participation rate. The educational attainment of Malta's workforce is still among the lowest in the Union. Malta is implementing a comprehensive strategy for lifelong learning, but participation in lifelong learning programmes is still limited, particularly among those with low educational attainment. Challenges in this area include targeted outreach, improved access to training and partnerships between education and training institutions and employers. A legal notice establishing an institute for the continuous professional development of teachers (the Institute for Education) was approved in 2015. The Institute's main objectives are to: (i) provide teachers with skills needed in their daily professional activities; (ii) act as a hub for educators to meet and share their experiences, and (iii) promote educational leadership. The Institute is now becoming operational and is expected to become the main driver in addressing teachers' professional development needs. Progress in this area will need to be monitored.

               (8)

               Apart from one-off large-scale projects in 2014-2015, investment in Malta has been muted, reflecting structural changes in the economy and bottlenecks. This is mainly linked to the increasing importance of less capital-intensive service sectors, which lowers the economy's future investment needs. Nevetherless, some challenges that affect investment activity in the country persist, such as the insufficient capacity to innovate, skills bottlenecks, inefficiencies in the public administration and the justice system, the regulatory burden and significant traffic congestion.

               (9)

               The transport and logistical infrastructure is one of the major barriers to foreign investment. The external costs of transport borne by Malta's economy are substantial. These stem mainly from an inefficient use of the country's transport network and the lack of real alternatives to using private passenger cars. In addition, the high number of private vehicles, pollution and traffic congestion pose challenges to the sustainability of the national transport sector. No comprehensive transport strategy has yet been implemented, despite the fact that the development of a national transport strategy and master plan is a pre-condition for accessing European Structural and Investment Funds (2014-2020), which will be used to co-fund transport investments.

               (10)

               The Government has taken several steps to improve access to finance for small and medium-sized enterprises (SMEs). These steps were geared to providing equity and venture capital, which had been identified as a bottleneck in recent years. In addition, future measures include setting up a central credit register and a development bank and the launch by the Malta Stock Exchange of a platform designed specifically to help SMEs raise funds through the capital market. Difficulties in the area of access to non-bank instruments remain, but SMEs in Malta benefit from a better financing environment than many of their EU peers.

               (11)

               In the context of the European Semester, the Commission has carried out a comprehensive analysis of Malta's economic policy and published it in the 2016 country report. It has also assessed the Stability Programme and the National Reform Programme and the follow-up given to the recommendations addressed to Malta in previous years. It has taken into account not only their relevance for sustainable fiscal and socioeconomic policy in Malta but also their compliance with EU rules and guidance, given the need to strengthen the EU's overall economic governance by providing EU-level input into future national decisions. The recommendations under the European Semester are reflected in recommendations (1) and (2) below.

               (12)

               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,

         HEREBY RECOMMENDS that Malta take action in 2016 and 2017 to:

               1.

               In view of the high risk of a significant deviation, achieve an annual fiscal adjustment of 0,6 % of GDP towards the medium-term budgetary objective in 2016 and in 2017, by taking the necessary structural measures. Step up measures to ensure the long-term sustainability of public finances.

               2.

               Take measures to strengthen labour supply, in particular through increased participation of low-skilled persons in lifelong learning.

      Done at Brussels, 12 July 2016.

            For the Council

            The President

         P. KAŽIMÍR

      (1)  OJ L 209, 2.8.1997, p. 1.

      (2)  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).

      (3)  OJ C 96, 11.3.2016, p. 1.

      (4)  Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 20.12.2013, p. 320).

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


Important legal notice

|

52007SC0139

Recommendation for a Council opinion in accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 on the updated convergence programme of Hungary, 2006-2010  /* SEC/2007/0139 final */

	[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |Brussels, 7.2.2007SEC(2007) 139 finalRecommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Hungary, 2006-2010(presented by the Commission)EXPLANATORY MEMORANDUM1. GENERAL BACKGROUNDThe Stability and Growth Pact, which entered into force on 1 July 1998, is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth conducive to employment creation. The 2005 reform of the Pact acknowledged its usefulness in anchoring fiscal discipline but sought to strengthen its effectiveness and economic underpinnings as well as to safeguard the sustainability of the public finances in the long run.Council Regulation (EC) No 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies[1], which is part of the Stability and Growth Pact, stipulates that Member States have to submit, to the Council and the Commission, stability or convergence programmes and annual updates thereof (Member States that have already adopted the single currency submit (updated) stability programmes and Member States that have not yet adopted it submit (updated) convergence programmes). The first convergence programme of Hungary was submitted in May 2004. In accordance with the Regulation, the Council delivered an opinion on it on 5 July 2004 on the basis of a recommendation from the Commission and after having consulted the Economic and Financial Committee. In accordance with the same procedure, updated stability and convergence programmes are assessed by the Commission and examined by the Committee mentioned above, while the Council may examine them.2. BACKGROUND FOR THE ASSESSMENT OF THE UPDATED PROGRAMMEThe Commission has examined the most recent update of the convergence programme of Hungary, submitted on 1 December 2006, and has adopted a recommendation for a Council opinion on it (see box for the main points covered by the assessment).In order to set the scene against which the budgetary strategy in the updated convergence programme is assessed, the following paragraphs summarise:1.  the economic and budgetary performance over the last ten years2.  the country’s position under the corrective arm of the Stability and Growth Pact (excessive deficit procedure)3.  the most recent assessment of the country’s position under the preventive arm of the Stability and Growth Pact (summary of the Council opinion on the previous update of the convergence programme), and4.  the Commission’s assessment of the October 2006 national reform programme.2.1. Recent economic and budgetary performanceOver the past 10 years, the growth performance of the Hungarian economy has been fairly strong with an increasingly balanced composition since 2003. However, employment and labour market participation rates remain among the lowest in the EU and several imbalances started to build up in recent years related to the expansionary fiscal policy stance. The very high and increasing budget deficit resulted in a significant increase of the public debt; against this background and also in view of the expected long-term rise in age-related expenditures, the sustainability of Hungarian public finances is at high risk. Increasing wage costs, especially since 2001, contributed to the stagnation of employment. Moreover, incentive schemes have not been sufficiently encouraging workers to remain in the labour market and the skills provided by the education and the training systems do not adequately match the requirements of new production structures. The expansionary fiscal policy also appears to have crowded out private investment. At the same time, it contributed to maintaining high external deficits and led to a significant increase of the net foreign debt stock. This was recently accompanied by a build-up of households' un-hedged foreign exchange liabilities increasing their exposure to exchange rate fluctuations.2.2. The excessive deficit procedure for HungaryOn 5 July 2004, the Council adopted a decision stating that Hungary had an excessive deficit in accordance with Article 104(6). At the same time, the Council addressed a recommendation to Hungary under Article 104(7) specifying that the excessive deficit had to be corrected by 2008 at the latest in line with the adjustment path outlined in the country’s May 2004 convergence programme. However, the Council decided on 18 January 2005 based on Article 104(8) that, despite the adoption of some measures reducing the deficit in 2004 and 2005, Hungary did not comply with the recommendations of July 2004, since both the 2004 and the 2005 targets were expected to be missed by a sizeable margin.On 8 March 2005, the Council issued another recommendation based on Article 104(7), since Hungary is not yet a member of the euro area and therefore the next two steps of the excessive deficit procedure under Article 104(9) and 104(11) do not apply. The Council recommended the Hungarian authorities to "take effective action by 8 July 2005 regarding additional measures, as far as possible of a structural nature, in order to achieve the deficit target for 2005 as set in the updated convergence programme". Furthermore, the timing and implementation of any tax cuts should be made conditional upon the achievement of the deficit targets of the convergence programme update submitted in December 2004.On 8 November 2005, the Council decided for the second time based on Article 104(8) that Hungary did not comply with the new recommendations under Article 104(7). Thereby it notably took into account that the deficit targets for 2005 and 2006 would be missed by a sizable margin and that the implementation of the tax cuts starting from 2006 was contrary to the Council recommendation of March 2005.On 10 October 2006, the Council adopted for the third time a recommendation to Hungary under Article 104(7), extending the deadline for the correction of excessive deficit by one year to 2009 which seems appropriate, as it implies a substantial correction of the structural deficit by more than 6½% of GDP over three years. The Council asked Hungary to reduce the deficit in a credible and sustainable manner and to ensure that the government gross debt ratio is brought onto a firm downward trajectory, in accordance with the multi-annual path for deficit reduction as specified in the adjusted convergence programme update of September 2006. In addition, Hungary was invited to adopt and implement swiftly the planned structural reforms also with a view to ensuring a lasting improvement of public finances. Finally, Hungary was asked to improve budgetary control by enhancing fiscal rules as well as by strengthening the institutional framework. The deadline for Hungary to take effective action in response to these recommendations is 10 April 2007. After the expiry of this deadline, the Commission will make an assessment of action taken by the Hungarian authorities.2.3. The assessment in the Council opinion on the previous programmeOn 10 October 2006, the Council adopted its opinion on the adjusted update of the convergence programme of September 2006, covering the period 2005-2009, that was produced in response to the Council assessment of the December 2005 update. The Council was of the opinion that "the planned deficit reduction is contingent on the rigorous implementation of the envisaged structural reforms, on the enforcement of expenditure controls from the early years of the programme, as well as on a reinforcement of the institutional set-up of public finances in Hungary, all aspects on which the Council urges the Hungarian government to ensure the highest effort". The Council opinion did not contain specific policy invitations since at the same time a recommendation under Article 104(7) was issued by the Council to Hungary (see Section 2.2 above).2.4. The Commission assessment of the national reform programmeThe implementation report of the national reform programme of Hungary, provided in the form of a revised national reform programme in the context of the renewed Lisbon strategy for growth and jobs, was submitted on 13 October 2006. Hungary's revised national reform programme maintains the key challenges identified in the 2005 national reform programme, complements them by a new priority for energy and the environment and a new emphasis on active labour market policies and outlines plans to establish a sustainable budgetary position in the short term, which is conducive to growth and job creation over the medium term.The Commission’s assessment of this programme (adopted as part of its December 2006 Annual Progress Report[2]) showed that Hungary has made limited progress in the implementation of its 2005 national reform programme. After major budgetary slippages, the government has had to significantly review its fiscal adjustment path and subsequently adopted and implemented fiscal consolidation measures. Some reforms have been implemented in both the employment and micro-economic policy areas. Still, much more remains to be done in those fields as well as in improving macroeconomic stability.Against the background of strengths and weaknesses identified, Hungary was recommended to take action in the areas of: credible reduction of the government deficit and of gross debt ratios; reform of public administration, health care, pension and education systems; active labour market policies and further incentives to work; equal access to high quality education and responsiveness of education and training systems.Box: Main points covered by the assessment As required by Article 5(1) (for stability programmes) and Article 9(1) (for convergence programmes) of Council Regulation (EC) No 1466/97, the assessment covers the following points: whether the economic assumptions on which the programme is based are plausible; the medium-term budgetary objective (MTO) presented by the Member State and whether the adjustment path towards it is appropriate; whether measures being taken and/or proposed to respect that adjustment path are sufficient to achieve the MTO over the cycle; when assessing the adjustment path towards the MTO, whether a higher adjustment effort is made in economic good times, whereas the effort may be more limited in economic bad times, and, for euro-area and ERM II Member States, whether the Member State pursues an annual improvement of the cyclically-adjusted balance, net of one-off and other temporary measures, of 0.5% of GDP as a benchmark to meet its MTO; when defining the adjustment path to the MTO (for Member States that have not yet reached it) or allowing a temporary deviation from the MTO (for Member States that have), the implementation of major structural reforms which have direct long-term cost-saving effects (including by raising potential growth) and therefore a verifiable impact on the long-term sustainability of public finances (subject to the condition that an appropriate safety margin with respect to the 3% of GDP reference value is preserved and that the budgetary position is expected to return to the MTO within the programme period), with special attention for pension reforms introducing a multi-pillar system that includes a mandatory, fully-funded pillar; whether the economic policies of the Member State are consistent with the broad economic policy guidelines. The plausibility of the programme’s macroeconomic assumptions is assessed by reference to the Commission services’ autumn 2006 forecast, using also the commonly agreed methodology for the estimation of potential output and cyclically-adjusted balances. The assessment of consistency with the broad economic policy guidelines is made against the broad economic policy guidelines in the area of public finances as included in the integrated guidelines for the period 2005-2008. The assessment also examines: the evolution of the debt ratio and the outlook for the long-term sustainability of the public finances, which should be given “sufficient attention in the surveillance of budgetary positions” according to the Council report of 20 March 2005 on “Improving the implementation of the Stability and Growth Pact”. A Commission Communication of 12 October 2006 sets out the approach to the assessment of long-term sustainability[3]; the degree of integration with the national reform programme, submitted by Member States in the context of the Lisbon strategy for growth and jobs. In its cover note of 7 June 2005 to the European Council on the broad economic policy guidelines for the period 2005-2008, the ECOFIN Council stated that the national reform programmes should be consistent with the stability and convergence programmes; compliance with the code of conduct[4], which inter alia prescribes a common structure and set of data tables for the stability and convergence programmes. |-  Recommendation for aCOUNCIL OPINIONin accordance with the third paragraph of Article 9 of Council Regulation (EC) No 1466/97 of 7 July 1997 On the updated convergence programme of Hungary, 2006-2010THE 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,Having regard to the recommendation of the Commission,After consulting the Economic and Financial Committee,HAS DELIVERED THIS OPINION:5.  On [27 February 2007] the Council examined the updated convergence programme of Hungary, which covers the period 2006 to 2010.6.  The programme's macroeconomic scenario expects a slow-down of economic activity for the years 2007 and 2008, as a result of the fiscal consolidation measures, with a recovery to pre-consolidation growth rates by 2009. Assessed against currently available information, this scenario appears to be broadly plausible for the years up to 2008 and might even be slightly cautious, while for the outer years it seems rather favourable. The programme projects inflation to surge in 2007 and rapidly decline thereafter; however, the projected inflation path over the entire programme horizon is somewhat favourable.7.  For 2006, the general government deficit is estimated at 10.1% of GDP in the Commission services’ autumn 2006 forecast, in line with the revised target of the September 2006 update[6], and against a target of 6.1% of GDP set in the December 2005 update of the convergence programme. The overshoot compared to the original deficit target took place almost entirely on the expenditure side (around 5% of GDP), mainly operational costs of central budgetary institutions, pension and health-care expenditure and local government investment. It also reflects the inclusion of motorway investment inside the general government (1.1% of GDP). The budgetary corrective package of 1½% of GDP adopted in summer 2006 consists of revenue-increasing measures, together with some immediate expenditure cuts in the areas of health-care, gas price subsidies and public administration. These measures (except the withdrawal of the 0.3% of GDP general reserve of the budget) are expected to produce important effects also in 2007 and thereafter.8.  The main goal of the update is to correct the excessive deficit by 2009 (reducing the deficit from 10.1% of GDP in 2006 to 3.2% of GDP in 2009[7]), in line with the September 2006 update against a background of a broadly similar macroeconomic scenario, with a further reduction in 2010. The improvement in the primary balance is of the same magnitude. The planned adjustment is front-loaded, with nearly half of the reduction in the deficit ratio to take place in 2007. The planned nominal adjustment over the programme period is to be achieved by increasing the revenue-to-GDP ratio by nearly 1 percentage point and by reducing the expenditure-to-GDP ratio by 6.5 percentage points. An initial increase in the tax burden by 1.6 percentage points of GDP in 2007 is progressively replaced by measures on the expenditure side. On top of the expenditure cuts and budgetary freezes adopted since summer 2006, the authorities have started to strengthen expenditure controls and enhance the institutional framework of public finances. Moreover, the programme spells out a broad structural reform agenda aimed to ensure the achievement of the deficit targets, especially in the outer years of the programme.9.  The structural balance (i.e. the cyclically-adjusted balance net of one-off and other temporary measures) calculated according to the commonly agreed methodology is planned to improve from 9¾% of GDP in 2006 to around 3% at the end of the programme period. The medium-term objective (MTO) for the budgetary position presented in the programme is a structural deficit of 0.5% of GDP, which the programme does not aim to achieve within the programme period. This is somewhat more ambitious compared to the previous update of the programme, which put forward an MTO-range of a structural deficit between 0.5% and 1% of GDP. The MTO adequately reflects the debt ratio and average potential output growth in the long term. As the MTO is more demanding than the minimum benchmark (estimated at a structural deficit of around 1½% of GDP), achieving it should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit.10.  The budgetary outcomes could be worse than targeted in the programme, especially from 2008. The risks to the deficit path stemming from the macroeconomic outlook are broadly balanced until 2008, but lower-than-projected GDP growth in the outer years could lead to a higher deficit. Although the short-term expenditure cuts and temporary budgetary freezes were incorporated into the 2007 budget as planned, there is still some uncertainty about the effective enforcement of the expenditure freezes (also because of the poor track-record of similar controls in 2004-2006). The effectiveness of the new fiscal rules and the initial steps taken towards a multi-annual budgetary framework in reversing the pattern of regular expenditure overruns will have to be tested. The Government has taken decisions on a number of steps to reform the public administration, health, pension, price subsidies and education systems. Based on these measures the budgetary outcomes could be closer to the deficit targets for 2007 and 2008 than expected in the Commission services' autumn 2006 forecast. However, the remaining structural reform steps, necessary to replace the expenditure-curbing measures that expire at the end of 2008, still need to be fully specified and implemented. In addition, in the outer years of the programme, there is a risk of a budgetary loosening, due to the electoral cycle, as evidenced by past experience. Finally, should the restructuring plans of the public transport companies fail to yield the expected results, the accummulating losses of these companies might temporarily increase the deficit.11.  In view of this risk assessment, the budgetary stance in the programme seems broadly consistent with a correction of the excessive deficit by 2009 as recommended by the Council provided that the budgetary strategy is fully implemented. This concerns in particular the full implementation of the consolidation measures announced in the 2007 budget and in the new programme as well as the further specification and timely adoption of the announced additional structural reform measures. In 2010, after the planned correction of the excessive deficit, the pace of the adjustment towards the MTO implied by the programme should be strengthened. This would also be a first step towards providing a sufficient safety margin against breaching the 3% of GDP deficit threshold with normal macroeconomic fluctuations, which is not in place.12.  The government gross debt is estimated to have reached 67½% of GDP in 2006, which is above the 60% of GDP Treaty reference value. The programme projects the debt ratio to increase to 71¼% in 2008. After 2008, it is expected to decrease again and return to 67½% in 2010. The evolution of the debt ratio is likely to be less favourable than projected in the programme given the risks to the budgetary targets mentioned above. In view of this risk assessment, the debt ratio would not be sufficiently diminishing towards the reference value until the end of the programme period.13.  The long-term budgetary impact of ageing in Hungary is well above the EU average, notably as a result of the high increase in pension expenditure as a share of GDP over the long term. While first important steps have been taken, full implementation of further reform measures aimed at containing the significant increase in age-related expenditures as planned in the programme would contribute to reducing risks to the sustainability of public finances. Moreover, and importantly, the weak initial budgetary position, having deteriorated substantially compared with 2005, constitutes a risk to sustainable public finances even before the long-term budgetary impact of an ageing population is considered. In addition, the current level of gross debt is above the Treaty reference value. Further budgetary consolidation as planned would contribute to reducing risks to the sustainability of public finances. Overall, Hungary appears to be at high risk with regard to the sustainability of public finances.14.  The convergence programme contains a qualitative assessment of the overall impact of the Hungarian October 2006 revised national reform programme within the overall medium-term strategy. In addition, it provides some information on the direct budgetary costs or savings of the main reforms envisaged in the national reform programme, but its budgetary projections do not explicitly take into account all the public finance implications of the actions outlined in the national reform programme. The measures in the area of public finances envisaged in the convergence programme seem consistent with those foreseen in the national reform programme. In particular, the structural reform plans and recently adopted measures outlined in the convergence programme entirely correspond to the reform agenda presented in the national reform programme, notably the reform steps adopted in the fields of public administration, health-care, pension and education and various subsidy systems.15.  The budgetary strategy in the programme is broadly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008.16.  As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme provides all required and most of the optional data[8].The overall conclusion is that the programme plans to reduce the high deficits of the past years through a frontloaded adjustment effort and is broadly consistent with correcting the excessive deficit by 2009, the deadline set by the Council. A number of revenue-increasing and expenditure-containing measures have been taken since the summer of 2006, as well as initial reform steps in the fields of public administration, health care, pension and education reform. However, there are risks to the achievement of the deficit and debt targets, especially from 2008.In view of the above assessment, and also in the light of the recommendation under Article 104(7) of 10 October 2006, Hungary is invited to:(i) rigorously implement the 2007 budget and take adequate action to ensure the correction of the excessive deficit by 2009, if necessary through additional measures; and ensure that the gross debt-to-GDP ratio is brought onto a firm downward trajectory, preferably before 2009;(ii) improve budgetary control by enhancing fiscal rules and by strengthening the institutional framework of public finances, building on the first steps undertaken in the budget for 2007;(iii) curb expenditure in a permanent manner through the adoption and swift implementation of the announced streamlining of the public administration and healthcare systems and the envisaged reform of the education system;(iv) in view of the level of debt and the increase in age-related expenditure, improve the long-term sustainability of public finances by making adequate progress towards the MTO and taking additional pension reform measures as announced.Comparison of key macroeconomic and budgetary projectionsSource: |Convergence programme (CP); Commission services’ autumn 2006 economic forecasts (COM); Commission services’ calculations |[1] OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). All the documents referred to in this text can be found at the following website:http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm[2] Communication from the Commission to the Spring European Council, “Implementing the renewed Lisbon strategy for growth and jobs - A year of delivery” - COM(2006) 816, 12.12.2006.[3] Communication from the Commission to the Council and the European Parliament, “The long-term sustainability of public finances in the EU” - COM(2006) 574, 12.10.2006 - and European Commission, Directorate-General for Economic and Financial Affairs (2006), “The long-term sustainability of public finances in the European Union”, European Economy No 4/2006.[4] “Specifications on the implementation of the Stability and Growth Pact and guidelines on the format and content of stability and convergence programmes”, endorsed by the ECOFIN Council of 11 October 2005.[5] OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm[6] In its opinion on the December 2005 update of the convergence programme, the Council had considered that the planned cut in expenditures of 7.5% of GDP was not backed by concrete measures. Therefore, it had invited Hungary to present by 1 September 2006 at the latest an adjusted convergence programme update identifying concrete and structural measures fully consistent with its medium-term adjustment path. In accordance with this request, Hungary submitted its adjusted programme on 1 September 2006 to the Council and the Commission.[7] The deficit target of 3.2% of GDP in 2009 would still exceed the 3% of GDP threshold specified in the Treaty. It is assumed in the programme that the Council and the Commission take into account 20% of the yearly burden on the budget arising from the pension reform (which is expected to amount to 0.3% of GDP in that year) when taking a decision on abrogating the excessive deficit procedure for Hungary (in line with Council Regulation (EC) No 1467/97 as amended, Article 2(7), which stipulates that if the general government deficit " …has declined substantially and continuously and has reached a level that comes close to the reference value ", the Council and the Commission should consider the net cost of a pension reform that includes a fully-funded pillar on a linear degressive basis for a transitory period of five years, and taking into account the implementing provisions in the code of conduct).[8] In particular, data are missing on government expenditure by function as well as on hours worked, the government's financial assets and financial debt; some data on the long-term sustainability of public finances are also not provided.


				|

		52012PC0146

			Recommendation for a COUNCIL DECISION designating the European Capital of Culture for the year 2016 in Spain and Poland /* COM/2012/0146 final  */

			   	EXPLANATORY MEMORANDUM
Decision No1622/2006/EC of the European
Parliament and the Council of 24 October 2006 establishing a Community action
for the European Capital of Culture event for the years 2007 to 2019,[1] lays down the procedure of
designation of the European Capitals of Culture. According to Article 2 of this
Decision, from 2009 onwards, two cities of two Member States will be designated
as European Capitals of Culture, in turn, according to the chronological order
set out in the Annex to the Decision. Spain and Poland are entitled to host the
event in 2016.
The nomination for European Capitals of
Culture concerning the year 2016 onwards is submitted to the following process.
A call for submissions of applications is
published by each of the Member States concerned no later than six years before
the event. A selection panel composed of 13 independent experts in the cultural
sector is convened for a pre selection meeting no later than five years before
the event. It assesses the applications received against the criteria laid down
in article 4 of Decision No1622/2006/EC and agrees on a short list of candidate
cities which have to be considered further after completing their application.
Each of the Member States concerned
convenes the panel for final selection, 9 months after the pre-selection
meeting. After an extensive evaluation of the pre selected cities based on the
criteria laid down for the action, the panel recommends one city for the title
in each Member State concerned.
On the basis of these recommendations, both
Member States nominate one city each to be European Capital of Culture and
notify the European Parliament, the Council, the Commission and the Committee
of the Regions no later than four years before the event in question is due to
begin.
The European Parliament may forward an
opinion to the Commission no later than 3 months after receipt of the
nominations.
The Council, acting on a recommendation
from the Commission, officially designates the cities in question for the year
for which they have been nominated.
After completion of the two rounds
competition described above, the panel recommended that Donostia-San Sebastián
(Spain) and Wrocław (Poland) host the event in 2016 in its reports dated
June 2011. Both Member States notified these nominations to the European
Parliament, the Council, the Commission and the Committee of the Regions by
Autumn 2011.
The European Parliament forwarded its
positive opinion to the Commission in late December 2011.
Consequently, the Commission, in accordance
with Article 9.3 of Decision No1622/2006/EC submits to the Council the appended
recommendation for the official designation of Donostia- San Sebastián and Wrocław
respectively for the 2016 European Capital of Culture event.
Recommendation for a
COUNCIL DECISION
designating the European Capital of
Culture for the year 2016 in Spain and Poland
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the functioning
of the European Union,
Having regard to Decision No1622/2006/EC of
the European Parliament and of the Council of 24 October 2006 establishing a
Community action for the European Capital of Culture event for the years 2007
to 2019[2],
and in particular Article 9(3) thereof,
Having regard
to the recommendation from the European Commission of the -----------------
2012,
Having regard
to the Selection Panel reports of June 2011 regarding the selection process of
the European Capitals of Culture in Spain and Poland respectively,
Whereas :
Considering
that the criteria referred to in Article 4 of Decision No1622/2006/EC are
entirely fulfilled,
HAS ADOPTED THIS DECISION:
Article 1
Donostia-San Sebastián and Wrocław are
designated as “European Capital of Culture 2016” in Spain and Poland.
Article 2
This
Decision shall enter into force on the day following that of its publication in
the Official Journal of the European Union.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 304 of 3.11.2006, p1
[2]               OJ L 304 of 3.11.2006, p1.


				|

		52012DC0322

			Recommendation for a COUNCIL RECOMMENDATION on the Netherlands’ 2012 national reform programme and delivering a Council opinion on the Netherlands’ stability programme for 2012-2015 /* COM/2012/0322 final */

			   	Recommendation for a
COUNCIL RECOMMENDATION
on the Netherlands’ 2012 national reform
programme
and delivering a Council opinion on the Netherlands’ stability programme for
2012-2015
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[2],
Having regard to the resolutions of the
European Parliament[3],
Having regard to the conclusions of the
European Council,
Having regard to the opinion of the
Employment Committee,
After consulting the Economic and Financial
Committee,
Whereas:
(1)       On 26 March 2010, the
European Council agreed to the European Commission’s proposal to launch a new
strategy for jobs and growth, Europe 2020, based on enhanced coordination of
economic policies, which will focus on the key areas where action is needed to
boost Europe’s potential for sustainable growth and competitiveness.
(2)       On 13 July 2010, the
Council adopted a recommendation on the broad guidelines for the economic
policies of the Member States and the Union (2010 to 2014) and, on 21 October
2010, adopted a decision on guidelines for the employment policies of the
Member States[4],
which together form the ‘integrated guidelines’. Member States were invited to
take the integrated guidelines into account in their national economic and
employment policies.
(3)       On 12 July 2011, the
Council adopted a recommendation on the Netherlands’ national reform programme for
2011 and delivered its opinion on the Netherlands’ updated stability programme for
2011-2014.
(4)       On 23 November 2011, the
Commission adopted the second Annual Growth Survey, marking the start of the
second European Semester of ex-ante and integrated policy coordination, which
is anchored in the Europe 2020 strategy. On 14 February 2012, the Commission,
on the basis of Regulation (EU) 1176/2011, adopted the Alert Mechanism Report[5], in which it did not identify
the Netherlands as one of the Member States for which an in-depth review would
be carried out.
(5)       On 2 March 2012, 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.
(6)       On
2 March 2012, the European Council also invited the Member States participating
in the Euro Plus Pact to present their commitments in time for inclusion in
their stability or convergence programmes and their national reform programmes.
(7)       On 27 April 2012, the
Netherlands submitted its stability programme covering the period 2012-2015 and
its 2012 national reform programme. In order to take account of their
interlinkages, the two programmes have been assessed at the same time.
(8)       Based on the assessment of
the 2012 stability programme pursuant to Council Regulation (EC) No 1466/97,
the Council is of the opinion that the macroeconomic scenario underpinning the
budgetary projections in the programme is optimistic. For 2013, the stability programme
projects economic growth of 1¼% without taking into account the negative impact
of the additional consolidation measures on growth, whilst, on the basis of the
same no-policy change scenario, the Commission's forecast a lower growth rate
of 0.7%. The stated objective of the programme is to meet the Council recommendations
on correcting the excessive deficit and to strive to further improve the
budgetary position towards the medium-term budgetary objective (MTO) by
targeting a structural effort of at least 0.5% per year. The programme targets
a headline general government deficit of 3% of GDP in 2013 and confirms the
previous MTO of a structural deficit of 0.5% of GDP, which adequately reflects
the requirements of the Stability and Growth Pact. The average annual fiscal
effort of 0.75% of GDP over the period 2010-2013, based on the (recalculated)
structural budget balance[6],
is in line with the structural effort of ¾% of GDP recommended by the Council.
As the programme does not provide budgetary targets beyond 2013, the
sustainability of the budgetary correction in 2013 and progress towards the MTO
in the outer years, including compliance with the expenditure benchmark of the
Stability and Growth Pact, cannot be assessed. The budgetary projections over
the programme period are subject to implementation risks. These are not solely
restricted to the newly announced consolidation measures, but also to the
implementation of some of the measures agreed upon earlier by the outgoing
government. Moreover, the additional measures proposed by the government in
April 2012 and their budgetary impact are not sufficiently specified and
quantified. Budgetary adjustment has so far relied mostly on expenditure cuts,
which also affect growth-enhancing expenditure. According to the 2012 stability
programme, the debt-to-GDP ratio is expected to further rise relatively
markedly in 2012, to 70.2% of GDP and to increase slightly further to 70.7% of
GDP in 2013, taking into account the impact of the additional consolidation
measures. The debt ratio is thus projected to remain well above the 60% reference
value. For 2014 and 2015, the programme does not specify debt targets and
therefore an assessment of compliance with the debt reduction benchmark of the
Stability and Growth Pact beyond 2013 cannot be given.
(9)       Social partners and the
Dutch government reached a comprehensive agreement on pension reform in September
2011 and the government presented plans to increase the statutory retirement
age to 66 in 2019 and 67 in 2024. After that the statutory retirement age will
be coupled to life expectancy. Labour market measures would support a
corresponding increase in the effective retirement age. In line with the
government agreement, the pension reform aims at securing an appropriate and
sustainable intra- and intergenerational sharing of costs and risks in the
second pillar. With regard to long-term care, the Dutch government has provided
a blueprint for reform. Further concrete measures will be necessary to contribute
to reducing the financial burden of the ageing society in the Netherlands.
(10)     Fiscal disincentives for
second-income earners have been reduced but not yet sufficiently. Removing
remaining disincentives would further contribute to raising labour supply and
make human capital allocation more efficient. The labour market integration of vulnerable
groups should be improved.
(11)     In the field of enterprise
policy, the top sector agendas have been endorsed and sectoral ‘innovation
contracts’ have been signed between the government and industry representatives.
Support to private research is being increased through the introduction of the
RDA+ tax deduction scheme as part of the incentives to further promote
innovation, private R&D and closer science-business links. However, the
focus on ‘top sectors’ should not come at the cost of fundamental research nor
exclude innovative firms that do not belong to one of the ‘top sectors’.
(12)     Over the last four decades,
structural distortions have built up in the Dutch housing market. In the
property market, fundamental supply restrictions and tax incentives for home
ownership (notably mortgage interest deductibility favouring higher-income
households) have led to an inefficient allocation of capital. In the rental
market, with its very large social housing segment, social policies and caps on
rent levels and on rent increases have led to a very inelastic supply of rental
housing. Modifying the favourable tax treatment of home ownership would
contribute to reducing the structural distortions on the Dutch housing market.
(13)     The Netherlands has made a
number of commitments under the Euro Plus Pact. These commitments, and the
implementation of the commitments presented in 2011, relate to fostering
employment, improving competitiveness, reinforcing financial stability, and
enhancing sustainability of public finances. The Commission has assessed the
implementation of the Euro Plus Pact commitments. The results of this
assessment have been taken into account in the recommendations.
(14)     In the context of the
European Semester, the Commission has carried out a comprehensive analysis of
the Netherlands’ economic policy. It has assessed the stability programme and national
reform programme. It has taken into account not only their relevance for
sustainable fiscal and socio-economic policy in the Netherlands but also their compliance
with EU rules and guidance, given the need to reinforce the overall economic
governance of the European Union by providing EU-level input into future
national decisions. Its recommendations under the European Semester are
reflected in recommendations (1) to (5) below.
(15)     In the light of this
assessment, the Council has examined the Netherlands’ stability programme, and
its opinion[7]
is reflected in particular in recommendation (1) below,
HEREBY RECOMMENDS that the
Netherlands should take action within the period 2012-2013 to:
1.           Ensure progress towards
the timely and durable correction of the excessive deficit. To this end, fully
implement the budgetary strategy for 2012 as envisaged. Specify the measures
necessary to ensure implementation of the 2013 budget with a view to ensuring
the structural adjustment effort specified in the Council recommendations under
the Excessive Deficit Procedure. Thereafter, ensure an adequate structural
adjustment effort to make sufficient progress towards the medium-term budgetary
objective (MTO), including meeting the expenditure benchmark, and ensure
sufficient progress towards compliance with the debt reduction benchmark whilst
protecting expenditure in areas directly relevant for growth such as research
and innovation, education and training. To this end, after the formation of a
new government, submit an update of the 2012 stability programme with substantiated
targets and measures for the period beyond 2013.
2.           Take measures to increase
the statutory retirement age, including linking it to life expectancy, and
underpin these with labour market measures, whilst improving the long-term
sustainability of public finances. Adjust the second pension pillar to mirror
the increase in the statutory retirement age, while ensuring an appropriate
intra- and inter-generational division of costs and risks. Implement the
planned reform in long-term care and complement it with further measures, in
view of an ageing population.
3.           Enhance participation in
the labour market, particularly of older people, women, and people with
disabilities and migrants, including by further reducing tax disincentives for
second-income earners, fostering labour market transitions, and addressing
rigidities.
4.           Promote innovation,
private R&D investment and closer science-business links, as well as foster
industrial renewal by providing suitable incentives in the context of the
enterprise policy, while safeguarding accessibility beyond the strict
definition of top sectors and preserving fundamental research.
5.           Take steps to gradually
reform the housing market, including by: (i) modifying the favourable tax
treatment of home ownership, including by phasing out mortgage interest
deductibility and/or through the system of imputed rents, (ii) providing for a
more market-oriented pricing mechanism in the rental market, and (iii) for
social housing, aligning rents with household income.
Done at Brussels,
                                                                       For
the Council
                                                                       The
President
[1]               OJ L 209, 02.08.1997, p. 1
[2]               COM(2012)322 final
[3]               P7_TA(2012)0048 and P7_TA(2012)0047
[4]               Council Decision 2012/238/EU of 26 April 2012
[5]               COM(2012) 68 final.
[6]               Cyclically adjusted balance net of one-off and
temporary measures, recalculated by the Commission services on the basis of the information provided in the programme, using
the commonly agreed methodology.
[7]               Under Article 5(2) of Council Regulation (EC) No
1466/97.