# Official Journal L 174/2017

| | ISSN 1977-0677 |
| --- | --- |
| Official Journal
  of the European Union | L 174 |
| | |
| English edition | Legislation | Volume 607 July 2017 |

ISSN 1977-0677

Official Journal

of the European Union

L 174

English edition

Legislation

Volume 607 July 2017

---

| Contents | | II   Non-legislative acts | page |
| --- | --- | --- | --- |
| | | REGULATIONS |
| | * | Commission Implementing Regulation (EU) 2017/1220 of 16 June 2017 entering a name in the register of protected designations of origin and protected geographical indications (Malatya Kayısısı (PDO)) | 1 |
| | * | Commission Regulation (EU) 2017/1221 of 22 June 2017 amending Regulation (EC) No 692/2008 as regards the methodology for the determination of evaporative emissions (Type 4 test) (
  1
  ) | 3 |
| | * | Commission Implementing Regulation (EU) 2017/1222 of 26 June 2017 entering a name in the register of protected designations of origin and protected geographical indications [Kiełbasa biała parzona wielkopolska (PGI)] | 13 |
| | * | Commission Implementing Regulation (EU) 2017/1223 of 5 July 2017 approving non-minor amendments to the specification for a name entered in the register of protected designations of origin and protected geographical indications (Tomme de Savoie (PGI)) | 14 |
| | * | Commission Regulation (EU) 2017/1224 of 6 July 2017 amending Annex V to Regulation (EC) No 1223/2009 of the European Parliament and of the Council on cosmetic products (
  1
  ) | 16 |
| | | DECISIONS |
| | * | Council Decision (EU) 2017/1225 of 16 June 2017 abrogating Decision 2010/288/EU on the existence of an excessive deficit in Portugal | 19 |
| | * | Council Implementing Decision (EU) 2017/1226 of 30 June 2017 amending Implementing Decision (EU) 2016/544 approving the macroeconomic adjustment programme of Greece (2015/1411) | 22 |

Contents

II   Non-legislative acts

page

REGULATIONS

*

Commission Implementing Regulation (EU) 2017/1220 of 16 June 2017 entering a name in the register of protected designations of origin and protected geographical indications (Malatya Kayısısı (PDO))

1

*

Commission Regulation (EU) 2017/1221 of 22 June 2017 amending Regulation (EC) No 692/2008 as regards the methodology for the determination of evaporative emissions (Type 4 test) (
  1
  )

1

3

*

Commission Implementing Regulation (EU) 2017/1222 of 26 June 2017 entering a name in the register of protected designations of origin and protected geographical indications [Kiełbasa biała parzona wielkopolska (PGI)]

13

*

Commission Implementing Regulation (EU) 2017/1223 of 5 July 2017 approving non-minor amendments to the specification for a name entered in the register of protected designations of origin and protected geographical indications (Tomme de Savoie (PGI))

14

*

Commission Regulation (EU) 2017/1224 of 6 July 2017 amending Annex V to Regulation (EC) No 1223/2009 of the European Parliament and of the Council on cosmetic products (
  1
  )

1

16

DECISIONS

*

Council Decision (EU) 2017/1225 of 16 June 2017 abrogating Decision 2010/288/EU on the existence of an excessive deficit in Portugal

19

*

Council Implementing Decision (EU) 2017/1226 of 30 June 2017 amending Implementing Decision (EU) 2016/544 approving the macroeconomic adjustment programme of Greece (2015/1411)

22

| | |
| --- | --- |
| | (1)   Text with EEA relevance. |

---

(1)   Text with EEA relevance.

1

| EN | Acts whose titles are printed in light type are those relating to day-to-day management of agricultural matters, and are generally valid for a limited period.
  The titles of all other Acts are printed in bold type and preceded by an asterisk. |
| --- | --- |

EN

Acts whose titles are printed in light type are those relating to day-to-day management of agricultural matters, and are generally valid for a limited period.

The titles of all other Acts are printed in bold type and preceded by an asterisk.

---

II Non-legislative acts

REGULATIONS

| 7.7.2017 | EN | Official Journal of the European Union | L 174/1 |
| --- | --- | --- | --- |

7.7.2017

EN

Official Journal of the European Union

L 174/1

---

COMMISSION IMPLEMENTING REGULATION (EU) 2017/1220

of 16 June 2017

entering a name in the register of protected designations of origin and protected geographical indications (Malatya Kayısısı (PDO))

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) No 1151/2012 of the European Parliament and of the Council of 21 November 2012 on quality schemes for agricultural products and foodstuffs (1), and in particular Article 52(2) thereof,

Whereas:

| (1) | Pursuant to Article 50(2)(a) of Regulation (EU) No 1151/2012, Turkey's application to register the name ‘Malatya Kayısısı’ was published in the Official Journal of the European Union (2). |
| --- | --- |

(1)

Pursuant to Article 50(2)(a) of Regulation (EU) No 1151/2012, Turkey's application to register the name ‘Malatya Kayısısı’ was published in the Official Journal of the European Union (2).

| (2) | As no statement of opposition under Article 51 of Regulation (EU) No 1151/2012 has been received by the Commission, the name ‘Malatya Kayısısı’ should therefore be entered in the register, |
| --- | --- |

(2)

As no statement of opposition under Article 51 of Regulation (EU) No 1151/2012 has been received by the Commission, the name ‘Malatya Kayısısı’ should therefore be entered in the register,

HAS ADOPTED THIS REGULATION:

Article 1

The name ‘Malatya Kayısısı’ (PDO) is hereby entered in the register.

The name specified in the first paragraph denotes a product in Class 1.6. Fruit, vegetables and cereals fresh or processed, as listed in Annex XI to Commission Implementing Regulation (EU) No 668/2014 (3).

Article 2

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 16 June 2017.

For the Commission,

On behalf of the President,

Phil HOGAN

Member of the Commission

---

(1)  
  OJ L 343, 14.12.2012, p. 1.

1

(2)  
  OJ C 10, 13.1.2017, p. 11.

2

(3)  Commission Implementing Regulation (EU) No 668/2014 of 13 June 2014 laying down rules for the application of Regulation (EU) No 1151/2012 of the European Parliament and of the Council on quality schemes for agricultural products and foodstuffs (OJ L 179, 19.6.2014, p. 36).

3

---

| 7.7.2017 | EN | Official Journal of the European Union | L 174/3 |
| --- | --- | --- | --- |

7.7.2017

EN

Official Journal of the European Union

L 174/3

---

COMMISSION REGULATION (EU) 2017/1221

of 22 June 2017

amending Regulation (EC) No 692/2008 as regards the methodology for the determination of evaporative emissions (Type 4 test)

(Text with EEA relevance)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EC) No 715/2007 of the European Parliament and of the Council of 20 June 2007 on type-approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information (1), and in particular Article 14(3) thereof,

Whereas:

| (1) | Regulation (EC) No 715/2007 requires new light-duty vehicles to comply with certain emission limits including evaporative emissions. The specific technical provisions necessary to implement that Regulation were adopted by Commission Regulation (EC) No 692/2008 (2). |
| --- | --- |

(1)

Regulation (EC) No 715/2007 requires new light-duty vehicles to comply with certain emission limits including evaporative emissions. The specific technical provisions necessary to implement that Regulation were adopted by Commission Regulation (EC) No 692/2008 (2).

| (2) | The Commission established a working group in March 2011 involving all interested stakeholders for reviewing the existing methodology for measuring evaporative emissions and developing a new one, addressing mainly the issues of purging strategy, effect of ethanol on canister working capacity, durability, fuel permeation and refuelling emissions. |
| --- | --- |

(2)

The Commission established a working group in March 2011 involving all interested stakeholders for reviewing the existing methodology for measuring evaporative emissions and developing a new one, addressing mainly the issues of purging strategy, effect of ethanol on canister working capacity, durability, fuel permeation and refuelling emissions.

| (3) | The working group based its work on many elements contained in two reports published by the Joint Research Centre of the Commission entitled ‘Estimating the Costs and Benefits of Introducing a new European Evaporative Emissions Test Procedure’ and ‘Review of the European Test Procedure for Evaporative Emissions: Main Issues and Proposed Solutions’. |
| --- | --- |

(3)

The working group based its work on many elements contained in two reports published by the Joint Research Centre of the Commission entitled ‘Estimating the Costs and Benefits of Introducing a new European Evaporative Emissions Test Procedure’ and ‘Review of the European Test Procedure for Evaporative Emissions: Main Issues and Proposed Solutions’.

| (4) | The analysis of the working group has identified a number of shortfalls which undermine the efficacy of the evaporative emissions control and need to be remedied in order to ensure an satisfactory level of environmental protection. It is therefore appropriate to introduce two new procedures for aging of the carbon canister and for the definition of a permeability of the fuel system in the existing type-approval procedure. |
| --- | --- |

(4)

The analysis of the working group has identified a number of shortfalls which undermine the efficacy of the evaporative emissions control and need to be remedied in order to ensure an satisfactory level of environmental protection. It is therefore appropriate to introduce two new procedures for aging of the carbon canister and for the definition of a permeability of the fuel system in the existing type-approval procedure.

| (5) | The addition of ethanol in the European petrol fuels, especially when splash-blended has an effect in the vapour pressure of the fuel. The E10 reference fuel should therefore be used in testing in order to better reflect the currently used fuel in the Union. |
| --- | --- |

(5)

The addition of ethanol in the European petrol fuels, especially when splash-blended has an effect in the vapour pressure of the fuel. The E10 reference fuel should therefore be used in testing in order to better reflect the currently used fuel in the Union.

| (6) | Monolayer plastic tanks are still being sold in the Union and are expected to be a significant part of the European fleet until the year 2030. However, such tanks are permeable to ethanol, which is thus emitted in the environment. Therefore, a dedicated procedure to measure the permeation of ethanol is needed in order to take into account this effect. |
| --- | --- |

(6)

Monolayer plastic tanks are still being sold in the Union and are expected to be a significant part of the European fleet until the year 2030. However, such tanks are permeable to ethanol, which is thus emitted in the environment. Therefore, a dedicated procedure to measure the permeation of ethanol is needed in order to take into account this effect.

| (7) | The addition of ethanol was also proven to affect the durability of carbon canisters in studies performed by the Swedish Road Administration and TUV Nord. For this reason, a new procedure should be added in order to age the canister. The aged canister should then be used in the tested vehicle during the SHED test. |
| --- | --- |

(7)

The addition of ethanol was also proven to affect the durability of carbon canisters in studies performed by the Swedish Road Administration and TUV Nord. For this reason, a new procedure should be added in order to age the canister. The aged canister should then be used in the tested vehicle during the SHED test.

| (8) | The current purging strategies employed in vehicles in the Union are not adequate especially for urban driving and thus may lead to increased bleed emissions. Therefore, the test drive before the SHED test was reviewed and the duration of the diurnal test should be increased to 48 hours. |
| --- | --- |

(8)

The current purging strategies employed in vehicles in the Union are not adequate especially for urban driving and thus may lead to increased bleed emissions. Therefore, the test drive before the SHED test was reviewed and the duration of the diurnal test should be increased to 48 hours.

| (9) | Regulation (EC) No 692/2008 should therefore be amended accordingly. |
| --- | --- |

(9)

Regulation (EC) No 692/2008 should therefore be amended accordingly.

| (10) | The measures provided for in this Regulation are in accordance with the opinion of the Technical Committee — Motor Vehicles, |
| --- | --- |

(10)

The measures provided for in this Regulation are in accordance with the opinion of the Technical Committee — Motor Vehicles,

HAS ADOPTED THIS REGULATION:

Article 1

Amendments to Regulation (EC) No 692/2008

Regulation (EC) No 692/2008 is amended as follows:

| (1) | In Article 2, the following points 45 to 48 are added:






  ‘45. | “Fuel Storage System” means devices which allow storing the fuel, comprising of the fuel tank, the fuel filler, the filler cap and the fuel pump; |
| --- | --- | --- |

(1)

In Article 2, the following points 45 to 48 are added:

‘45.

“Fuel Storage System” means devices which allow storing the fuel, comprising of the fuel tank, the fuel filler, the filler cap and the fuel pump;

| 46. | “Permeability Factor (PF)” means the hydrocarbon emissions as reflected in the permeability of the fuel storage system; |
| --- | --- |

46.

“Permeability Factor (PF)” means the hydrocarbon emissions as reflected in the permeability of the fuel storage system;

| 47. | “Monolayer tank” means a fuel tank constructed with a single layer of material; |
| --- | --- |

47.

“Monolayer tank” means a fuel tank constructed with a single layer of material;

| 48. | “Multilayer tank” means a fuel tank constructed with at least two different layered materials, one of which is impermeable to hydrocarbons, including ethanol.’ |
| --- | --- |

48.

“Multilayer tank” means a fuel tank constructed with at least two different layered materials, one of which is impermeable to hydrocarbons, including ethanol.’

| (2) | In Article 17, the following paragraph is inserted after the second subparagraph:
  ‘Annex VI as amended by Commission Regulation (EU) 2017/1221 (*1) shall apply from 1 September 2019 to all new vehicles registered on and after that date.

  (*1)  
  OJ L 174, 7.7.2017, p. 3
  ’." |
| --- | --- |

(2)

In Article 17, the following paragraph is inserted after the second subparagraph:

‘Annex VI as amended by Commission Regulation (EU) 2017/1221 (*1) shall apply from 1 September 2019 to all new vehicles registered on and after that date.

*1

(*1)  
  OJ L 174, 7.7.2017, p. 3
  ’."

*1

| (3) | Annex VI is replaced by the text set out in the Annex to this Regulation. |
| --- | --- |

(3)

Annex VI is replaced by the text set out in the Annex to this Regulation.

Article 2

Entry into force and application

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Official Journal of the European Union

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 22 June 2017.

For the Commission

The President

Jean-Claude JUNCKER

---

(1)  
  OJ L 171, 29.6.2007, p. 1.

1

(2)  Commission Regulation (EC) No 692/2008 of 18 July 2008 implementing and amending Regulation (EC) No 715/2007 of the European Parliament and of the Council on type-approval of motor vehicles with respect to emissions from light passenger and commercial vehicles (Euro 5 and Euro 6) and on access to vehicle repair and maintenance information (OJ L 199, 28.7.2008, p. 1).

2

---

ANNEX

‘ANNEX VI

1.   Introduction

1.1.   This Annex describes the procedure for the Type 4 test, which determines the emission of hydrocarbons by evaporation from the fuel systems of vehicles with positive ignition engines.

2.   Technical requirements

2.1.   Introduction

The procedure includes the evaporative emissions test and two additional tests, one for the aging of the carbon canister, as described in point 5.1, and one for the permeability of the fuel storage system, as described in point 5.2.

The evaporative emissions test (Figure 1) is designed to determine hydrocarbon evaporative emissions as a consequence of diurnal temperatures fluctuation, hot soaks during parking, and urban driving.

2.2   The evaporative emissions test consists of:

| (a) | Test drive including an urban (Part One) and an extra-urban (Part Two) driving cycle, followed by two urban (Part One) driving cycles, |
| --- | --- |

(a)

Test drive including an urban (Part One) and an extra-urban (Part Two) driving cycle, followed by two urban (Part One) driving cycles,

| (b) | Hot soak loss determination, |
| --- | --- |

(b)

Hot soak loss determination,

| (c) | Diurnal loss determination. |
| --- | --- |

(c)

Diurnal loss determination.

The mass emissions of hydrocarbons from the hot soak and the diurnal loss phases are added up together with the permeability factor to provide an overall result for the test.

3.   Vehicle and fuel

3.1.   Vehicle

3.1.1.   The vehicle shall be in good mechanical condition and have been run in and driven at least 3 000 km before the test. For the purpose of the determination of evaporative emissions, the mileage and the age of the vehicle used for certification shall be recorded. The evaporative emission control system shall be connected and have been functioning correctly over the run in period and the carbon canister(s) shall have been subject to normal use, neither undergoing abnormal purging nor abnormal loading. The carbon canister(s) aged according to the Procedure set out in point 5.1 shall be connected as described in Figure 1.

3.2.   Fuel

3.2.1.   The Type I E10 reference fuel specified in Annex IX to Regulation (EC) No 692/2008 shall be used. For the purposes of this Regulation, E10 reference shall mean the Type I reference fuel, except for the canister aging, as set out in point 5.1.

4.   Test equipment for evaporative test

4.1.   Chassis dynamometer

The chassis dynamometer shall meet the requirements of Appendix 1 of Annex 4a to UN/ECE Regulation No 83.

4.2.   Evaporative emission measurement enclosure

The evaporative emission measurement enclosure shall meet the requirements of paragraph 4.2 of Annex 7 to UN/ECE Regulation No 83.

Figure 1

Determination of evaporative emissions

3 000 km run-in period (no excessive purge/load)

Use of aged of canister(s)

Steam-clean of vehicle (if necessary)

Reducing or removing non-fuel background emission sources (if agreed)

Soak between 20 °C and 30 °C between 12 to 36 h

Soak between 20 °C and 30 °C between 12 to 36 h

Fuel system Aging

Duration 5 months approx.

End

Hot start in < 2 min, the two Part 1

MHS + MD1 + MD2 +2PF < 2,0 g/test

2nd day diurnal MD2

1st day diurnal: MD1

Soak at 293 K for the last 6 h

Permeability Factor: PF

Hoat soak test: MHS

293 K ± 2 K (20 °C ± 2 °C)

Tstart = 293 K (20 °C)

Tmin = 308 K; ΔT = 15 K

24 hours, No of diurnals = 2

Tmin = 296 K (23 °C)

Tmax = 304 K (31 °C)

60 min ± 0,5 min

Test drive NEDC

and max 2 min before engine shut-off

Type 1: one Part 1 + one Part 2

Tstart = 293 K to 303 K (20 °C - 30 °C)

And then two Part 1

Type 1: one Part 1 + two Part 2

Tstart = 293 K to 303 K (20 °C - 30 °C)

Fuel temperature 291 K ± 8 K (18 °C ± 8 °C)

40 % ± 2 % of nominal tank capacity

Ambient temperature: 293 K to 303 K (20 °C - 30 °C)

6 h to 36 h

Max 7 min

Max 1 h

Aged canister load to breakthrough

Fuel drain and refill

Pre-conditioning drive

Max 5 min

Canister Bench Aging

Duration 2 months approx.

Max 1 h

Start

| Notes: | 1. | Evaporative emission control families — as in point 3.2 of Annex I |
| --- | --- | --- |

Notes:

1.

Evaporative emission control families — as in point 3.2 of Annex I

| 2. | Exhaust emissions may be measured during Type I test drive but these are not used for legislative purposes. Exhaust emission legislative test remains separate. |
| --- | --- |

2.

Exhaust emissions may be measured during Type I test drive but these are not used for legislative purposes. Exhaust emission legislative test remains separate.

4.3.   Analytical systems

The analytical systems shall meet the requirements of paragraph 4.3 of Annex 7 to UN/ECE Regulation No 83.

4.4.   Temperature recording

The temperature recording shall meet the requirements of paragraph 4.5 of Annex 7 to UN/ECE Regulation No 83.

4.5.   Pressure recording

The pressure recording shall meet the requirements of paragraph 4.6 of Annex 7 to UN/ECE Regulation No 83.

4.6.   Fans

The fans shall meet the requirements of paragraph 4.7 of Annex 7 to UN/ECE Regulation No 83.

4.7.   Gases

The gases shall meet the requirements of paragraph 4.8 of Annex 7 to UN/ECE Regulation No 83.

4.8.   Additional Equipment

The additional equipment shall meet the requirements of paragraph 4.9 of Annex 7 to UN/ECE Regulation No 83.

5.   Test procedure

5.1.   Canister(s) bench aging

Before performing the hot soak and diurnal losses sequences, the canister(s) must be aged according the following procedure described in Figure 2.

Figure 2

Canister bench aging procedure

× 50

3. Fuel aging for 300 cycles (BWC)

2. Canister vibration conditioning test: Canister is shaken along the vertical axis for 12 h. Overall Grms > 1,5 with frequency of 30 ± 10 Hz

1. Temperature conditioning test: Canister brought from – 15 °C to 60 °C, 210 min; temp gradient 1 °C/min

Select new canister sample

Test start

5.1.1.   Temperature conditioning test

In a dedicated temperature chamber, the canister(s) is (are) cycled between temperatures from – 15 °C to 60 °C, with 30 min of stabilisation at – 15 °C and 60 °C. Each cycle shall last 210 min as in Figure 3. The temperature gradient shall be as close as possible to 1 °C/min. No forced air flow should pass through the canister(s).

The cycle is repeated 50 times consecutively. In total, this operation will last 175 hours.

Figure 3

Temperature conditioning cycle

Temperature (°C) vs time (min)

5.1.2.   Canister vibration conditioning test

After the temperature aging procedure, the canister(s) is (are) shaken along the vertical axis with the canister(s) mounted as per its orientation in the vehicle with overall Grms (1) > 1,5 m/sec2 with frequency of 30 ± 10 Hz. The test shall last 12 hours.

5.1.3.   Canister Fuel aging test

5.1.3.1.   Fuel Aging for 300 cycles

5.1.3.1.1.   After the temperature conditioning test and vibration test, the canister(s) is aged with a mixture of Type I E10 market fuel as specified in point 5.1.3.1.1.1 below and nitrogen or air with a 50 ± 15 percent fuel vapour volume. The fuel vapour fill rate must be kept between 60 ± 20 g/h.

The canister(s) is (are) loaded to the corresponding breakthrough. Breakthrough shall be considered as the point at which the cumulative quantity of hydrocarbons emitted is equal to 2 grams. As an alternative, the loading is deemed completed when the equivalent concentration level at the vent hole reaches 3 000 ppm.

5.1.3.1.1.1   The E10 market fuel used for this test shall fulfil the same requirements as an E10 reference fuel for the following points:

| — | Density at 15 °C |
| --- | --- |

—

Density at 15 °C

| — | Vapour Pressure (DVPE) |
| --- | --- |

—

Vapour Pressure (DVPE)

| — | Distillation (evaporates only) |
| --- | --- |

—

Distillation (evaporates only)

| — | Hydrocarbon analysis (olefins, aromatics, benzene only) |
| --- | --- |

—

Hydrocarbon analysis (olefins, aromatics, benzene only)

| — | Oxygen content |
| --- | --- |

—

Oxygen content

| — | Ethanol content |
| --- | --- |

—

Ethanol content

5.1.3.1.2.   The canister(s) shall be purged according the procedure of paragraph 5.1.3.8 of Annex 7 to UN/ECE Regulation No 83. The standard conditions are 273,2 K and 101,33 kPa.

The canister must be purged between 5 minutes to 1 hour maximum after loading.

5.1.3.1.3.   The steps of the procedure set out in points 5.1.3.1.1 and.5.1.3.1.2 shall be repeated 50 times, followed by a measurement of the Butane Working Capacity (BWC), meant as the ability of an activated carbon canister to absorb and desorb butane from dry air under specified conditions, in 5 butane cycles, as described in point 5.1.3.1.4 below. The fuel vapour ageing will continue until 300 cycles are reached. A measurement of the BWC in 5 butane cycles, as set out in point 5.1.3.1.4, will be made after the 300 cycles.

5.1.3.1.4.   After 50 and 300 Fuel aging cycles, a measurement of BWC is performed. This measurement consists of loading the canister according to paragraph 5.1.6.3, of Annex 7 to UN/ECE Regulation No 83 until breakthrough. The BWC is recorded.

Then, the canister(s) shall be purged according the procedure of paragraph 5.1.3.8 of Annex 7 to UN/ECE Regulation No 83.

The canister must be purged between 5 minutes to 1 hour maximum after loading.

The operation of butane loading is repeated 5 times. The BWC is recorded after each butane loading step. The BWC50 is calculated as the average of the 5 BWC and recorded.

In total, the canister(s) will be aged with 300 fuel aging cycles + 10 butane cycles and considered to be stabilised.

5.1.3.2.   If the canister(s) is (are) provided by the Suppliers, the Manufacturers shall inform in advance the Type-Approval Authorities to allow them to witness any part of the aging in the Supplier's facilities.

5.1.3.3.   The manufacturer shall provide to the Type-Approval Authorities a test report including at least the following elements:

| — | Type of activated carbon, |
| --- | --- |

—

Type of activated carbon,

| — | Loading rate, |
| --- | --- |

—

Loading rate,

| — | Fuel specifications, |
| --- | --- |

—

Fuel specifications,

| — | BWC measurements |
| --- | --- |

—

BWC measurements

5.2.   Determination of the Permeability Factor of the Fuel System (Figure 4)

Figure 4

Determination of the Permeability Factor

Drain and fill the tank with reference fuel at 40 %

Permeability Factor = HC20W – HC3W

Measurement of HC in the same conditions as in Diurnal Emission test: HC3W

Measurement of HC in the same conditions as in Diurnal Emission test: HC20W

Drain and fill the tank with reference fuel at 40 %

Fill the tank with fresh reference fuel at 40 %

Soak for the remaining 17 weeks at 40 °C +/– 2 °C

Soak for 3 weeks at 40 °C +/– 2 °C

Test start

The fuel storage system representative of a family is selected and fixed to a rig, then soaked with E10 reference fuel for 20 weeks at 40 °C +/– 2 °C. The orientation of the fuel storage system on the rig has to be similar to the original orientation on the vehicle.

5.2.1.   The tank is filled with fresh E10 reference fuel at a temperature of 18 °C ± 8 °C. The tank is filled at 40 % +/– 2 % of the nominal tank capacity. Then, the rig with the fuel system is placed in a specific and secure room with a controlled temperature of 40 °C +/– 2 °C for 3 weeks.

5.2.2.   At the end of the third week, the tank is drained and refilled with fresh E10 reference fuel at a temperature of 18 °C ± 8 °C at 40 % +/– 2 % of the nominal tank capacity.

Within 6 to 36 hours, the last 6 hours at 20 °C ± 2 °C the rig with the fuel system is placed in a VT-SHED a diurnal procedure is performed over a period of 24 hours, according to the procedure described according to paragraph 5.7 of Annex 7 of UN/ECE Regulation No 83. The fuel system is vented to the outside of the VT-SHED to eliminate the possibility of the tank venting emissions being counted as permeation. The HC emissions are measured and the value is recorded as HC3W.

5.2.3.   The rig with the fuel system is placed again in a specific and secure room with a controlled temperature of 40 °C +/– 2 °C for the remaining 17 weeks.

5.2.4.   At the end of the remaining 17th week, the tank is drained and refilled with fresh reference fuel at a temperature of 18 °C ± 8 °C at 40 % +/– 2 % of the nominal tank capacity.

Within 6 to 36 hours, the last 6 hours at 20 °C ± 2 °C, the rig with the fuel system is placed in a VT-SHED a diurnal procedure is performed over a period of 24 hours, according to the procedure described according to paragraph 5.7 of Annex 7 of UN/ECE Regulation No 83. The fuel system is vented to the outside of the VT-SHED to eliminate the possibility of the tank venting emissions being counted as permeation. The HC emissions are measured and the value is recorded as HC20W.

5.2.5.   The Permeability Factor is the difference between HC20W and HC3W in g/24 h with 3 digits.

5.2.6.   If the Permeability Factor is determined by the Suppliers, the Manufacturers shall inform in advance the Type-Approval Authorities to allow witness check in Supplier's facilities.

5.2.7.   The manufacturer shall provide to the Type-Approval Authorities a test report containing at least the following elements:

| (a) | A full description of the fuel storage system tested, including information on the type of tank tested, whether the tank is monolayer or multilayer and which types of materials are used for the tank and other parts of the fuel storage system, |
| --- | --- |

(a)

A full description of the fuel storage system tested, including information on the type of tank tested, whether the tank is monolayer or multilayer and which types of materials are used for the tank and other parts of the fuel storage system,

| (b) | the weekly mean temperatures at which the ageing was performed, |
| --- | --- |

(b)

the weekly mean temperatures at which the ageing was performed,

| (c) | the HC measured at week 3 (HC3W), |
| --- | --- |

(c)

the HC measured at week 3 (HC3W),

| (d) | the HC measured at week 20 (HC20W) |
| --- | --- |

(d)

the HC measured at week 20 (HC20W)

| (e) | the resulting Permeability Factor (PF) |
| --- | --- |

(e)

the resulting Permeability Factor (PF)

5.2.8.   As an exception to points 5.2.1 to 5.2.7 above, the Manufacturers using multilayer tanks may choose to use the following assigned permeability factor (APF) instead of the complete measurement procedure mentioned above:

APF multilayer tank = 120 mg/24 h

5.2.8.1   Where the manufacturer chooses to use Assigned Permeability Factors, the manufacturer shall provide to the Type-Approval Authority, a declaration in which the type of tank is clearly specified, as well as a declaration of the type of materials used.

5.3.   Sequence of measurement of hot soak and diurnal losses

The vehicle is prepared in accordance to paragraph 5.1.1 and 5.1.2 of Annex 7 of UN/ECE Regulation No 83. At the request of the manufacturer and with the approval of the responsible authority, non-fuel background emission sources may be removed or reduced before testing (e.g. baking tire or vehicle, removing washer fluid).

5.3.1.   Soak

The vehicle is parked for a minimum of 12 hours and a maximum of 36 hours in the soak area. The engine oil and coolant temperatures shall have reached the temperature of the area or within ± 3 °C of it at the end of the period.

5.3.2.   Fuel drain and refill

The fuel drain and refill is performed in accordance to the procedure of paragraph 5.1.7 of Annex 7 of UN/ECE Regulation No 83.

5.3.3.   Preconditioning drive

Within one hour from the completing of fuel drain and refill, the vehicle is placed on the chassis dynamometer and driven through one Part One and two Part Two driving cycles of Type I according to Annex 4a to UN/ECE Regulation No 83.

Exhaust emissions are not sampled during this operation.

5.3.4.   Soak

Within five minutes of completing the preconditioning operation the vehicle is parked for a minimum of 12 hours and a maximum of 36 hours in the soak area. The engine oil and coolant temperatures shall have reached the temperature of the area or within ± 3 °C of it at the end of the period.

5.3.5.   Canister breakthrough

The canister(s) aged according to the sequence described in point 5.1 is loaded to breakthrough according to the procedure paragraph 5.1.4 of Annex 7 to UN/ECE Regulation No 83.

5.3.6.   Dynamometer test

5.3.6.1.   Within one hour from completing of canister loading, the vehicle is placed on the chassis dynamometer and driven through one Part One and one Part Two driving cycles of Type I according to Annex 4a to UN/ECE Regulation No 83. Then the engine is shut off. Exhaust emissions may be sampled during this operation but the results shall not be used for the purpose of exhaust emission type-approval.

5.3.6.2.   Within two minutes of completing the Type I Test drive specified in point 5.3.6.1 the vehicle is driven a further conditioning drive consisting of two Part One test cycles (hot start) of Type I. Then the engine is shut off again. Exhaust emissions need not be sampled during this operation.

5.3.7.   Hot Soak

After the Dynamometer test, hot soak evaporative emissions test is performed in accordance to paragraph 5.5 of Annex 7 to UN/ECE Regulation No 83. The hot soak losses result is calculated according to paragraph 6 of Annex 7 to UN/ECE Regulation No 83 and recorded as MHS.

5.3.8.   Soak

After hot soak evaporative emissions test, a soak is performed according to paragraph 5.6 of Annex 7 to UN/ECE Regulation No 83.

5.3.9.   Diurnal test

5.3.9.1.   After the soak, a first measurement of Diurnal Losses over 24 hours is performed according to paragraph 5.7 of Annex 7 to UN/ECE Regulation No 83. Emissions are calculated according to paragraph 6 of Annex 7 to UN/ECE Regulation No 83. The obtained value is recorded as MD1.

5.3.9.2.   After the first 24 hours diurnal test, a second measurement of Diurnal Losses over 24 hours is performed according to paragraph 5.7 of Annex 7 to UN/ECE Regulation No 83. Emissions are calculated according to paragraph 6 of Annex 7 to UN/ECE Regulation No 83. The obtained value is recorded as MD2.

5.3.10.   Calculation

The result of MHS + MD1 + MD2 + 2PF shall be below the limit defined in Table 3 of Annex 1 to Regulation (EC) No 715/2007.

5.3.11   The manufacturer shall provide to the Type-Approval Authorities a test report containing at least the following elements:

| (a) | description of the soak periods, including time and mean temperatures |
| --- | --- |

(a)

description of the soak periods, including time and mean temperatures

| (b) | description to aged canister used and reference to exact ageing report |
| --- | --- |

(b)

description to aged canister used and reference to exact ageing report

| (c) | mean temperature during the hot soak test |
| --- | --- |

(c)

mean temperature during the hot soak test

| (d) | measurement during hot soak test, HSL |
| --- | --- |

(d)

measurement during hot soak test, HSL

| (e) | measurement of first diurnal, DL1st day |
| --- | --- |

(e)

measurement of first diurnal, DL1st day

| (f) | measurement of second diurnal, DL2nd day |
| --- | --- |

(f)

measurement of second diurnal, DL2nd day

| (g) | final evaporative test result, calculated as “MHS + MD1 + MD2 + 2PF” |
| --- | --- |

(g)

final evaporative test result, calculated as “MHS + MD1 + MD2 + 2PF”

---

(1)

1

Grms: The root mean square (rms) value of the vibration signal is calculated by squaring the magnitude of the signal at every point, finding the average (mean) value of the squared magnitude, then taking the square root of the average value. The resulting number is the Grms metric.

Grms

---

| 7.7.2017 | EN | Official Journal of the European Union | L 174/13 |
| --- | --- | --- | --- |

7.7.2017

EN

Official Journal of the European Union

L 174/13

---

COMMISSION IMPLEMENTING REGULATION (EU) 2017/1222

of 26 June 2017

entering a name in the register of protected designations of origin and protected geographical indications [Kiełbasa biała parzona wielkopolska (PGI)]

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) No 1151/2012 of the European Parliament and of the Council of 21 November 2012 on quality schemes for agricultural products and foodstuffs (1), and in particular Article 52(2) thereof,

Whereas:

| (1) | Pursuant to Article 50(2)(a) of Regulation (EU) No 1151/2012, Poland's application to register the name ‘Kiełbasa biała parzona wielkopolska’ was published in the Official Journal of the European Union (2). |
| --- | --- |

(1)

Pursuant to Article 50(2)(a) of Regulation (EU) No 1151/2012, Poland's application to register the name ‘Kiełbasa biała parzona wielkopolska’ was published in the Official Journal of the European Union (2).

| (2) | As no statement of opposition under Article 51 of Regulation (EU) No 1151/2012 has been received by the Commission, the name ‘Kiełbasa biała parzona wielkopolska’ should therefore be entered in the register, |
| --- | --- |

(2)

As no statement of opposition under Article 51 of Regulation (EU) No 1151/2012 has been received by the Commission, the name ‘Kiełbasa biała parzona wielkopolska’ should therefore be entered in the register,

HAS ADOPTED THIS REGULATION:

Article 1

The name ‘Kiełbasa biała parzona wielkopolska’ (PGI) is hereby entered in the register.

The name specified in the first paragraph denotes a product in Class 1.2. — Meat products (cooked, salted, smoked, etc.), as listed in Annex XI to Commission Implementing Regulation (EU) No 668/2014 (3).

Article 2

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 26 June 2017.

For the Commission,

On behalf of the President,

Phil HOGAN

Member of the Commission

---

(1)  
  OJ L 343, 14.12.2012, p. 1.

1

(2)  
  OJ C 73, 9.3.2017, p. 25.

2

(3)  Commission Implementing Regulation (EU) No 668/2014 of 13 June 2014 laying down rules for the application of Regulation (EU) No 1151/2012 of the European Parliament and of the Council on quality schemes for agricultural products and foodstuffs (OJ L 179, 19.6.2014, p. 36).

3

---

| 7.7.2017 | EN | Official Journal of the European Union | L 174/14 |
| --- | --- | --- | --- |

7.7.2017

EN

Official Journal of the European Union

L 174/14

---

COMMISSION IMPLEMENTING REGULATION (EU) 2017/1223

of 5 July 2017

approving non-minor amendments to the specification for a name entered in the register of protected designations of origin and protected geographical indications (Tomme de Savoie (PGI))

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) No 1151/2012 of the European Parliament and of the Council of 21 November 2012 on quality schemes for agricultural products and foodstuffs (1), and in particular Article 52(2) thereof,

Whereas:

| (1) | Pursuant to the first subparagraph of Article 53(1) of Regulation (EU) No 1151/2012, the Commission has examined France's application for the approval of amendments to the specification for the protected geographical indication ‘Tomme de Savoie’ registered under Commission Regulation (EC) No 1107/96 (2). |
| --- | --- |

(1)

Pursuant to the first subparagraph of Article 53(1) of Regulation (EU) No 1151/2012, the Commission has examined France's application for the approval of amendments to the specification for the protected geographical indication ‘Tomme de Savoie’ registered under Commission Regulation (EC) No 1107/96 (2).

| (2) | By letter of 23 November 2015, the French authorities notified the Commission that transitional periods under Article 15(4) of Regulation (EU) No 1151/2012, ending on 31 December 2017 and 31 October 2025, had been granted to operators that are established on their territory and meet the conditions of that Article in accordance with the Order of 29 October 2015 on the protected geographical indication ‘Tomme de Savoie’ published on 7 November 2015 in the Official Journal of the French Republic. During the national objection procedure, one operator lodged an objection concerning the 50 % minimum share of coarse green fodder in the dairy cows' basic ration for at least 150 days per year. Furthermore, four operators lodged an objection concerning the farmers' 75 % minimum share of dairy cows from the Abondance, Montbéliarde or Tarentaise breeds on their farms. The reason given was that time was needed for their holdings to be adapted. Those operators have legally marketed ‘Tomme de Savoie’ continuously for at least the 5 years prior to lodging the application. The transitional period ending 31 December 2017 applies to Le Seysselan GAEC, Vallod, 74910 SEYSSEL and the transitional period ending 31 October 2025 applies to La Ferme de Combette EARL, Les Airelles GAEC, La Ferme des 3 Quartiers EARL and La Ferme de la Ville GAEC. |
| --- | --- |

(2)

By letter of 23 November 2015, the French authorities notified the Commission that transitional periods under Article 15(4) of Regulation (EU) No 1151/2012, ending on 31 December 2017 and 31 October 2025, had been granted to operators that are established on their territory and meet the conditions of that Article in accordance with the Order of 29 October 2015 on the protected geographical indication ‘Tomme de Savoie’ published on 7 November 2015 in the Official Journal of the French Republic. During the national objection procedure, one operator lodged an objection concerning the 50 % minimum share of coarse green fodder in the dairy cows' basic ration for at least 150 days per year. Furthermore, four operators lodged an objection concerning the farmers' 75 % minimum share of dairy cows from the Abondance, Montbéliarde or Tarentaise breeds on their farms. The reason given was that time was needed for their holdings to be adapted. Those operators have legally marketed ‘Tomme de Savoie’ continuously for at least the 5 years prior to lodging the application. The transitional period ending 31 December 2017 applies to Le Seysselan GAEC, Vallod, 74910 SEYSSEL and the transitional period ending 31 October 2025 applies to La Ferme de Combette EARL, Les Airelles GAEC, La Ferme des 3 Quartiers EARL and La Ferme de la Ville GAEC.

| (3) | Since the amendments in question are not minor within the meaning of Article 53(2) of Regulation (EU) No 1151/2012, the Commission published the amendment application in the Official Journal of the European Union as required by Article 50(2)(a) of that Regulation (3). |
| --- | --- |

(3)

Since the amendments in question are not minor within the meaning of Article 53(2) of Regulation (EU) No 1151/2012, the Commission published the amendment application in the Official Journal of the European Union as required by Article 50(2)(a) of that Regulation (3).

| (4) | As no statement of opposition under Article 51 of Regulation (EU) No 1151/2012 has been received by the Commission, the amendments to the specification should be approved, |
| --- | --- |

(4)

As no statement of opposition under Article 51 of Regulation (EU) No 1151/2012 has been received by the Commission, the amendments to the specification should be approved,

HAS ADOPTED THIS REGULATION:

Article 1

The amendments to the specification published in the Official Journal of the European Union regarding the name ‘Tomme de Savoie’ (PGI) are hereby approved.

Article 2

The protection provided under Article 1 is subject to the transitional period granted by France pursuant to the Order of 29 October 2015 on the protected geographical indication ‘Tomme de Savoie’, published on 7 November 2015 in the Official Journal of the French Republic under Article 15(4) of Regulation (EU) No 1151/2012, to operators meeting the conditions of that Article.

Article 3

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 5 July 2017.

For the Commission,

On behalf of the President,

Phil HOGAN

Member of the Commission

---

(1)  
  OJ L 343, 14.12.2012, p. 1.

1

(2)  Commission Regulation (EC) No 1107/96 of 12 June 1996 on the registration of geographical indications and designations of origin under the procedure laid down in Article 17 of Council Regulation (EEC) No 2081/92 (OJ L 148, 21.6.1996, p. 1).

2

(3)  
  OJ C 58, 23.2.2017, p. 30.

3

---

| 7.7.2017 | EN | Official Journal of the European Union | L 174/16 |
| --- | --- | --- | --- |

7.7.2017

EN

Official Journal of the European Union

L 174/16

---

COMMISSION REGULATION (EU) 2017/1224

of 6 July 2017

amending Annex V to Regulation (EC) No 1223/2009 of the European Parliament and of the Council on cosmetic products

(Text with EEA relevance)

THE EUROPEAN COMMISSION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EC) No 1223/2009 of the European Parliament and of the Council of 30 November 2009 on cosmetic products (1), and in particular Article 31(1) thereof,

Whereas:

| (1) | The substance 2-Methyl-2H-isothiazol-3-one, which has been assigned the name Methylisothiazolinone under the International Nomenclature of Cosmetic Ingredients (INCI), CAS number 2682-20-4, is currently authorised as a preservative in rinse-off cosmetic products at a concentration up to 0,01 % weight/weight (100 ppm) through entry 57 of Annex V to Regulation (EC) No 1223/2009. |
| --- | --- |

(1)

The substance 2-Methyl-2H-isothiazol-3-one, which has been assigned the name Methylisothiazolinone under the International Nomenclature of Cosmetic Ingredients (INCI), CAS number 2682-20-4, is currently authorised as a preservative in rinse-off cosmetic products at a concentration up to 0,01 % weight/weight (100 ppm) through entry 57 of Annex V to Regulation (EC) No 1223/2009.

| (2) | The Scientific Committee on Consumer Safety (SCCS) adopted an opinion on the safety of Methylisothiazolinone on 15 December 2015 (2). The SCCS concluded that for rinse-off cosmetic products, a concentration up to 0,0015 % (15 ppm) Methylisothiazolinone is considered safe for the consumer from the point of view of induction of contact allergy. |
| --- | --- |

(2)

The Scientific Committee on Consumer Safety (SCCS) adopted an opinion on the safety of Methylisothiazolinone on 15 December 2015 (2). The SCCS concluded that for rinse-off cosmetic products, a concentration up to 0,0015 % (15 ppm) Methylisothiazolinone is considered safe for the consumer from the point of view of induction of contact allergy.

| (3) | In light of that SCCS opinion, it is important to address the increased incidence of allergies induced by Methylisothiazolinone and that substance should therefore be further restricted in rinse-off products. |
| --- | --- |

(3)

In light of that SCCS opinion, it is important to address the increased incidence of allergies induced by Methylisothiazolinone and that substance should therefore be further restricted in rinse-off products.

| (4) | Regulation (EC) No 1223/2009 should therefore be amended accordingly. |
| --- | --- |

(4)

Regulation (EC) No 1223/2009 should therefore be amended accordingly.

| (5) | The industry should be allowed a reasonable period of time to make the necessary adjustments to product formulations in view of their placing on the market and for the withdrawal of non-compliant products from the market. |
| --- | --- |

(5)

The industry should be allowed a reasonable period of time to make the necessary adjustments to product formulations in view of their placing on the market and for the withdrawal of non-compliant products from the market.

| (6) | The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on Cosmetic Products, |
| --- | --- |

(6)

The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on Cosmetic Products,

HAS ADOPTED THIS REGULATION:

Article 1

Annex V to Regulation (EC) No 1223/2009 is amended in accordance with the Annex to this Regulation.

Article 2

From 27 January 2018 only cosmetic products which comply with this Regulation shall be placed on the Union market.

From 27 April 2018 only cosmetic products which comply with this Regulation shall be made available on the Union market.

Article 3

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 6 July 2017.

For the Commission

The President

Jean-Claude JUNCKER

---

(1)  
  OJ L 342, 22.12.2009, p. 59.

1

(2)  SCCS/1557/15 (submission III)

2

---

ANNEX

In Annex V to Regulation (EC) No 1223/2009, entry 57 is replaced by the following:

| Reference number | Substance Identification | Conditions | Wording of conditions of use and warnings |
| --- | --- | --- | --- |
| Chemical name/INN | Name of Common Ingredients Glossary | CAS number | EC number | Product type, Body parts | Maximum concentration in ready for use preparation | Other | |
| a | b | c | d | e | f | g | h | i |
| ‘57 | 2-Methyl-2H-isothiazol-3-one | Methylisothiazolinone (*1) | 2682-20-4 | 220-239-6 | Rinse-off products | 0,0015 % | | |

Reference number

Substance Identification

Conditions

Wording of conditions of use and warnings

Chemical name/INN

Name of Common Ingredients Glossary

CAS number

EC number

Product type, Body parts

Maximum concentration in ready for use preparation

Other

a

b

c

d

e

f

g

h

i

‘57

2-Methyl-2H-isothiazol-3-one

Methylisothiazolinone (*1)

2682-20-4

220-239-6

Rinse-off products

0,0015 %

---

(*1)  Methylisothiazolinone is also regulated in entry 39 of Annex V in a mixture with methylchloroisothiazolinone. The two entries are mutually exclusive: the use of the mixture of Methylchloroisothiazolinone (and) Methylisothiazolinone is incompatible with the use of Methylisothiazolinone alone in the same product.’

*1

---

DECISIONS

| 7.7.2017 | EN | Official Journal of the European Union | L 174/19 |
| --- | --- | --- | --- |

7.7.2017

EN

Official Journal of the European Union

L 174/19

---

COUNCIL DECISION (EU) 2017/1225

of 16 June 2017

abrogating Decision 2010/288/EU on the existence of an excessive deficit in Portugal

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 126(12) thereof,

Having regard to the recommendation from the European Commission,

Whereas:

| (1) | On 2 December 2009, following a recommendation from the Commission, the Council decided, by Decision 2010/288/EU (1), in accordance with Article 126(6) of the Treaty, that an excessive deficit existed in Portugal. The Council noted that the general government deficit planned for 2009 was 5,9 % of GDP, thus above the 3 %-of-GDP Treaty reference value. The general government gross debt (which had been above the 60 %-of-GDP Treaty reference value since 2005) was foreseen to reach 74,5 % of GDP in 2009. |
| --- | --- |

(1)

On 2 December 2009, following a recommendation from the Commission, the Council decided, by Decision 2010/288/EU (1), in accordance with Article 126(6) of the Treaty, that an excessive deficit existed in Portugal. The Council noted that the general government deficit planned for 2009 was 5,9 % of GDP, thus above the 3 %-of-GDP Treaty reference value. The general government gross debt (which had been above the 60 %-of-GDP Treaty reference value since 2005) was foreseen to reach 74,5 % of GDP in 2009.

| (2) | On 2 December 2009, in accordance with Article 126(7) of the Treaty and Article 3(4) of Council Regulation (EC) No 1467/97 (2), the Council, based on a recommendation from the Commission, addressed a Recommendation to Portugal with a view to bringing the excessive deficit situation to an end by 2013 at the latest. The Council also set a deadline of 2 June 2010 for effective action to be taken. |
| --- | --- |

(2)

On 2 December 2009, in accordance with Article 126(7) of the Treaty and Article 3(4) of Council Regulation (EC) No 1467/97 (2), the Council, based on a recommendation from the Commission, addressed a Recommendation to Portugal with a view to bringing the excessive deficit situation to an end by 2013 at the latest. The Council also set a deadline of 2 June 2010 for effective action to be taken.

| (3) | Following the request by the Portuguese authorities for financial assistance from the Union, the Member States whose currency is the euro and the International Monetary Fund (IMF), the Council granted financial assistance to Portugal (3). The Memorandum of Understanding on Specific Economic Policy Conditionality between the Commission and the Portuguese authorities was signed on 17 May 2011. Thereafter the Council addressed two new Recommendations to Portugal on 9 October 2012 and 21 June 2013 on the basis of Article 126(7) of the Treaty, which extended the deadline for correcting the excessive deficit to 2014 and 2015, respectively. In both cases, the Council considered that Portugal had taken effective action, but unexpected adverse economic events with major unfavourable consequences for government finances had occurred. In line with Article 10(2)(a) of Regulation (EU) No 472/2013 of the European Parliament and of the Council (4), Portugal was exempted from a separate reporting requirement under the excessive deficit procedure and reported in the framework of its macroeconomic adjustment programme (5). |
| --- | --- |

(3)

Following the request by the Portuguese authorities for financial assistance from the Union, the Member States whose currency is the euro and the International Monetary Fund (IMF), the Council granted financial assistance to Portugal (3). The Memorandum of Understanding on Specific Economic Policy Conditionality between the Commission and the Portuguese authorities was signed on 17 May 2011. Thereafter the Council addressed two new Recommendations to Portugal on 9 October 2012 and 21 June 2013 on the basis of Article 126(7) of the Treaty, which extended the deadline for correcting the excessive deficit to 2014 and 2015, respectively. In both cases, the Council considered that Portugal had taken effective action, but unexpected adverse economic events with major unfavourable consequences for government finances had occurred. In line with Article 10(2)(a) of Regulation (EU) No 472/2013 of the European Parliament and of the Council (4), Portugal was exempted from a separate reporting requirement under the excessive deficit procedure and reported in the framework of its macroeconomic adjustment programme (5).

| (4) | In accordance with Article 126(8) of the Treaty, the Council decided, on 12 July 2016, that Portugal had not taken effective action in response to the Council Recommendation of 21 June 2013. On 8 August 2016, the Council adopted a decision in accordance with Article 126(9) of the Treaty giving notice to Portugal to take measures for the deficit reduction judged necessary in order to remedy the situation of excessive deficit, thereby setting a new deadline for correction by 2016. The Council also set a deadline of 15 October 2016 for effective action to be taken. |
| --- | --- |

(4)

In accordance with Article 126(8) of the Treaty, the Council decided, on 12 July 2016, that Portugal had not taken effective action in response to the Council Recommendation of 21 June 2013. On 8 August 2016, the Council adopted a decision in accordance with Article 126(9) of the Treaty giving notice to Portugal to take measures for the deficit reduction judged necessary in order to remedy the situation of excessive deficit, thereby setting a new deadline for correction by 2016. The Council also set a deadline of 15 October 2016 for effective action to be taken.

| (5) | On 16 November 2016, the Commission concluded that Portugal had taken effective action in compliance with the Council Decision of 8 August 2016 under Article 126(9) of the Treaty. |
| --- | --- |

(5)

On 16 November 2016, the Commission concluded that Portugal had taken effective action in compliance with the Council Decision of 8 August 2016 under Article 126(9) of the Treaty.

| (6) | In accordance with Article 4 of the Protocol on the excessive deficit procedure annexed to the Treaties, the Commission provides the statistical data for the implementation of the procedure. As part of the application of that Protocol, Member States are to notify statistical data on government deficits and debt and other associated variables twice a year, namely before 1 April and before 1 October, in accordance with Article 3 of Council Regulation (EC) No 479/2009 (6). |
| --- | --- |

(6)

In accordance with Article 4 of the Protocol on the excessive deficit procedure annexed to the Treaties, the Commission provides the statistical data for the implementation of the procedure. As part of the application of that Protocol, Member States are to notify statistical data on government deficits and debt and other associated variables twice a year, namely before 1 April and before 1 October, in accordance with Article 3 of Council Regulation (EC) No 479/2009 (6).

| (7) | The Council has to take a decision to abrogate a decision on the existence of an excessive deficit on the basis of notified statistical data. Moreover, a decision on the existence of an excessive deficit should be abrogated only if the Commission forecasts indicate that the deficit will not exceed the 3 %-of-GDP Treaty reference value over the forecast horizon (7). |
| --- | --- |

(7)

The Council has to take a decision to abrogate a decision on the existence of an excessive deficit on the basis of notified statistical data. Moreover, a decision on the existence of an excessive deficit should be abrogated only if the Commission forecasts indicate that the deficit will not exceed the 3 %-of-GDP Treaty reference value over the forecast horizon (7).

| (8) | Based on data provided by the Commission (Eurostat) in accordance with Article 14 of Regulation (EC) No 479/2009, following the April 2017 notification by Portugal, the Stability Programme for 2017-2021 and the Commission 2017 spring forecast, the following conclusions are justified:






  — | After reaching 4,4 % of GDP in 2015 (3,1 % of GDP net of one-offs), the general government deficit was reduced to 2,0 % of GDP in 2016 (2,3 % of GDP net of one-offs). As compared to the targets set out in the 2016 budget, the deficit reduction in 2016 was mainly driven by the containment of current expenditure (– 0,9 % of GDP), particularly in intermediate consumption, and under-execution of capital expenditure (– 0,5 % of GDP), which more than compensated the revenue shortfall (1,1 % of GDP) for both tax and non-tax revenue. |
| --- | --- | --- |

(8)

Based on data provided by the Commission (Eurostat) in accordance with Article 14 of Regulation (EC) No 479/2009, following the April 2017 notification by Portugal, the Stability Programme for 2017-2021 and the Commission 2017 spring forecast, the following conclusions are justified:

—

After reaching 4,4 % of GDP in 2015 (3,1 % of GDP net of one-offs), the general government deficit was reduced to 2,0 % of GDP in 2016 (2,3 % of GDP net of one-offs). As compared to the targets set out in the 2016 budget, the deficit reduction in 2016 was mainly driven by the containment of current expenditure (– 0,9 % of GDP), particularly in intermediate consumption, and under-execution of capital expenditure (– 0,5 % of GDP), which more than compensated the revenue shortfall (1,1 % of GDP) for both tax and non-tax revenue.

| — | The Stability Programme for 2017-2021, submitted by the Portuguese Government on 28 April 2017, is planning for the general government deficit to decline to 1,5 % of GDP in 2017 and 1,0 % of GDP in 2018. The Commission 2017 spring forecast projects a deficit of 1,8 % of GDP in 2017 and 1,9 % of GDP in 2018, thus remaining below the 3 %-of-GDP Treaty reference value over the forecast horizon. Those projections do not include the potential deficit-increasing impact of bank support measures, which are not to put at risk the durable reduction of the deficit. |
| --- | --- |

—

The Stability Programme for 2017-2021, submitted by the Portuguese Government on 28 April 2017, is planning for the general government deficit to decline to 1,5 % of GDP in 2017 and 1,0 % of GDP in 2018. The Commission 2017 spring forecast projects a deficit of 1,8 % of GDP in 2017 and 1,9 % of GDP in 2018, thus remaining below the 3 %-of-GDP Treaty reference value over the forecast horizon. Those projections do not include the potential deficit-increasing impact of bank support measures, which are not to put at risk the durable reduction of the deficit.

| — | The structural balance, which is the general government balance adjusted for the economic cycle and net of one-off and other temporary measures, improved by 0,3 % of GDP in 2016. |
| --- | --- |

—

The structural balance, which is the general government balance adjusted for the economic cycle and net of one-off and other temporary measures, improved by 0,3 % of GDP in 2016.

| — | The gross government debt-to-GDP increased to 130,4 % in 2016, from 129 % in 2015, due to debt-increasing stock-flow adjustments. The Commission 2017 spring forecast projects the debt ratio to decrease to 128,5 % in 2017 and 126,2 % in 2018 due to primary surpluses. |
| --- | --- |

—

The gross government debt-to-GDP increased to 130,4 % in 2016, from 129 % in 2015, due to debt-increasing stock-flow adjustments. The Commission 2017 spring forecast projects the debt ratio to decrease to 128,5 % in 2017 and 126,2 % in 2018 due to primary surpluses.

| (9) | In accordance with Article 126(12) of the Treaty, a Council decision on the existence of an excessive deficit is to be abrogated when the excessive deficit in the Member State concerned has, in the view of the Council, been corrected. |
| --- | --- |

(9)

In accordance with Article 126(12) of the Treaty, a Council decision on the existence of an excessive deficit is to be abrogated when the excessive deficit in the Member State concerned has, in the view of the Council, been corrected.

| (10) | In the view of the Council, the excessive deficit in Portugal has been corrected, and Decision 2010/288/EU should therefore be abrogated. |
| --- | --- |

(10)

In the view of the Council, the excessive deficit in Portugal has been corrected, and Decision 2010/288/EU should therefore be abrogated.

| (11) | As from 2017, which is the year following the correction of the excessive deficit, Portugal is subject to the preventive arm of the Stability and Growth Pact and should progress towards its medium-term budgetary objective at an appropriate pace, including respecting the expenditure benchmark, and comply with the debt criterion in accordance with Article 2(1a) of Regulation (EC) No 1467/97, |
| --- | --- |

(11)

As from 2017, which is the year following the correction of the excessive deficit, Portugal is subject to the preventive arm of the Stability and Growth Pact and should progress towards its medium-term budgetary objective at an appropriate pace, including respecting the expenditure benchmark, and comply with the debt criterion in accordance with Article 2(1a) of Regulation (EC) No 1467/97,

HAS ADOPTED THIS DECISION:

Article 1

From an overall assessment it follows that the excessive deficit situation in Portugal has been corrected.

Article 2

Decision 2010/288/EU is hereby abrogated.

Article 3

This Decision is addressed to the Portuguese Republic.

Done at Luxembourg, 16 June 2017.

For the Council

The President

E. SCICLUNA

---

(1)  Council Decision 2010/288/EU of 2 December 2009 on the existence of an excessive deficit in Portugal (OJ L 125, 21.5.2010, p. 44).

1

(2)  Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (OJ L 209, 2.8.1997, p. 6).

2

(3)  Council Implementing Decision 2011/344/EU of 17 May 2011 on granting Union financial assistance to Portugal (OJ L 159, 17.6.2011, p. 88).

3

(4)  Regulation (EU) No 472/2013 of the European Parliament and of the Council of 21 May 2013 on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability (OJ L 140, 27.5.2013, p. 1).

4

(5)  All documents related to excessive deficit procedures can be found at: https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/eu-economic-governance-monitoring-prevention-correction/stability-and-growth-pact/corrective-arm-excessive-deficit-procedure/excessive-deficit-procedures-overview_en

5

(6)  Council Regulation (EC) No 479/2009 of 25 May 2009 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community (OJ L 145, 10.6.2009, p. 1).

6

(7)  In line with the ‘Specifications on the implementation of the Stability and Growth Pact and guidelines on the format and content of stability and convergence programmes’, adopted by the Economic and Financial Committee on 5 July 2016, available at: http://ec.europa.eu/economy_finance/economic_governance/sgp/legal_texts/index_en.htm.

7

---

| 7.7.2017 | EN | Official Journal of the European Union | L 174/22 |
| --- | --- | --- | --- |

7.7.2017

EN

Official Journal of the European Union

L 174/22

---

COUNCIL IMPLEMENTING DECISION (EU) 2017/1226

of 30 June 2017

amending Implementing Decision (EU) 2016/544 approving the macroeconomic adjustment programme of Greece (2015/1411)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) No 472/2013 of the European Parliament and of the Council of 21 May 2013 on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability (1), and in particular Article 7(5) thereof,

Having regard to the proposal from the European Commission,

Whereas:

| (1) | On 16 July 2015, the European Stability Mechanism (‘ESM’) Board of Governors invited the Commission, in liaison with the European Central Bank (‘ECB’), the ESM, the Greek authorities, and, where appropriate, the International Monetary Fund (‘IMF’), to agree on a macroeconomic adjustment programme for Greece in the form of a loan. The programme was prepared in accordance with the procedure provided for under Article 7(1) of Regulation (EU) No 472/2013. On 11 August 2015, those institutions reached an agreement at technical level on a macroeconomic adjustment programme (the ‘Programme’) with the Greek government. On the basis of a proposal by the Commission, the Programme was adopted by the Council in the form of a Council Implementing decision (2). |
| --- | --- |

(1)

On 16 July 2015, the European Stability Mechanism (‘ESM’) Board of Governors invited the Commission, in liaison with the European Central Bank (‘ECB’), the ESM, the Greek authorities, and, where appropriate, the International Monetary Fund (‘IMF’), to agree on a macroeconomic adjustment programme for Greece in the form of a loan. The programme was prepared in accordance with the procedure provided for under Article 7(1) of Regulation (EU) No 472/2013. On 11 August 2015, those institutions reached an agreement at technical level on a macroeconomic adjustment programme (the ‘Programme’) with the Greek government. On the basis of a proposal by the Commission, the Programme was adopted by the Council in the form of a Council Implementing decision (2).

| (2) | Following that agreement, Greece adopted a comprehensive policy package that was to be implemented in a three-year ESM macroeconomic adjustment programme, which would span from the third quarter of 2015 to the third quarter of 2018. |
| --- | --- |

(2)

Following that agreement, Greece adopted a comprehensive policy package that was to be implemented in a three-year ESM macroeconomic adjustment programme, which would span from the third quarter of 2015 to the third quarter of 2018.

| (3) | The comprehensive policy package, laid down in the ESM Memorandum of Understanding on Specific Economic Policy Conditionality (the ‘Memorandum of Understanding’) of 19 August 2015, aims to restore financial market confidence, to re-establish sound macroeconomic balances and to enable the economy to return to sustainable growth. It is based on four pillars: restoring fiscal sustainability, safeguarding financial stability, enhancing competitiveness and growth, and modernising the State and the public administration. |
| --- | --- |

(3)

The comprehensive policy package, laid down in the ESM Memorandum of Understanding on Specific Economic Policy Conditionality (the ‘Memorandum of Understanding’) of 19 August 2015, aims to restore financial market confidence, to re-establish sound macroeconomic balances and to enable the economy to return to sustainable growth. It is based on four pillars: restoring fiscal sustainability, safeguarding financial stability, enhancing competitiveness and growth, and modernising the State and the public administration.

| (4) | After the first review of the Programme was completed, and following the Eurogroup statement of 25 May 2016, the positive assessment by the Commission and ECB of the implementation of the Programme and the approval of the ESM, Greece and the Commission (on behalf of the ESM) signed a Supplementary Memorandum of Understanding on 16 June 2016. The Supplementary Memorandum of Understanding updates the policy conditions set out in the Memorandum of Understanding to reflect the progress achieved in the implementation of the Programme. |
| --- | --- |

(4)

After the first review of the Programme was completed, and following the Eurogroup statement of 25 May 2016, the positive assessment by the Commission and ECB of the implementation of the Programme and the approval of the ESM, Greece and the Commission (on behalf of the ESM) signed a Supplementary Memorandum of Understanding on 16 June 2016. The Supplementary Memorandum of Understanding updates the policy conditions set out in the Memorandum of Understanding to reflect the progress achieved in the implementation of the Programme.

| (5) | On 25 May 2016, the Eurogroup also considered the sustainability of Greek debt. It agreed on a package of debt measures to be phased in progressively and as necessary to meet the agreed benchmark on gross financing needs. The Eurogroup agreed that the first set of measures would be implemented in the short term, that is, from after the closure of the first review until the end of the Programme. On 23 January 2017, the Boards of Directors of the ESM and European Financial Stability Facility adopted the rules relating to the set of short-term debt relief measures for Greece, the implementation of which has begun. The Eurogroup of 25 May 2016 also agreed that after the successful implementation of the Programme by mid-2018, the Eurogroup would expect the implementation of a possible second set of measures, if needed to meet the agreed debt sustainability benchmarks. |
| --- | --- |

(5)

On 25 May 2016, the Eurogroup also considered the sustainability of Greek debt. It agreed on a package of debt measures to be phased in progressively and as necessary to meet the agreed benchmark on gross financing needs. The Eurogroup agreed that the first set of measures would be implemented in the short term, that is, from after the closure of the first review until the end of the Programme. On 23 January 2017, the Boards of Directors of the ESM and European Financial Stability Facility adopted the rules relating to the set of short-term debt relief measures for Greece, the implementation of which has begun. The Eurogroup of 25 May 2016 also agreed that after the successful implementation of the Programme by mid-2018, the Eurogroup would expect the implementation of a possible second set of measures, if needed to meet the agreed debt sustainability benchmarks.

| (6) | On 25 May 2016, the Eurogroup welcomed the intention of the IMF management to recommend to the IMF's Executive Board that it approve a financial arrangement for Greece. The Eurogroup confirmed that position on 5 December 2016, and also stressed the need for shared conditionality, which should be agreed between all the institutions and Greece. On 5 December 2016, the Eurogroup also called upon the institutions and Greece to swiftly resume negotiations in order to reach a staff level agreement (as soon as possible, based on such shared conditionality), and authorised the Eurogroup Working Group to assess that staff level agreement. That conditionality includes the adoption of a pre-legislated fiscal package to help ensure a primary surplus of 3,5 % of GDP over the medium term. |
| --- | --- |

(6)

On 25 May 2016, the Eurogroup welcomed the intention of the IMF management to recommend to the IMF's Executive Board that it approve a financial arrangement for Greece. The Eurogroup confirmed that position on 5 December 2016, and also stressed the need for shared conditionality, which should be agreed between all the institutions and Greece. On 5 December 2016, the Eurogroup also called upon the institutions and Greece to swiftly resume negotiations in order to reach a staff level agreement (as soon as possible, based on such shared conditionality), and authorised the Eurogroup Working Group to assess that staff level agreement. That conditionality includes the adoption of a pre-legislated fiscal package to help ensure a primary surplus of 3,5 % of GDP over the medium term.

| (7) | The Greek economy has shown a high degree of resilience to the environment of elevated uncertainty and the imposition of capital controls, with GDP contracting by only 0,2 % in 2015. In 2016, the Greek economy stagnated, as nascent growth in private consumption was offset by a decline in both public consumption and net exports. The Commission Spring 2017 forecast projects the Greek economy to grow by 2,1 % and 2,5 % in 2017 and 2018 respectively, on the back of improving economic sentiment supporting investment and consumption. |
| --- | --- |

(7)

The Greek economy has shown a high degree of resilience to the environment of elevated uncertainty and the imposition of capital controls, with GDP contracting by only 0,2 % in 2015. In 2016, the Greek economy stagnated, as nascent growth in private consumption was offset by a decline in both public consumption and net exports. The Commission Spring 2017 forecast projects the Greek economy to grow by 2,1 % and 2,5 % in 2017 and 2018 respectively, on the back of improving economic sentiment supporting investment and consumption.

| (8) | Under that forecast, the debt-to-GDP ratio would amount to 179,0 % in 2016, 178,8 % in 2017, 174,6 % in 2018 and 165,2 % in 2019. The debt-to-GDP ratio would therefore move to a declining path as from 2017. Greece achieved primary surpluses of 0,5 % of GDP in 2015 and 4,2 % of GDP in 2016, outperforming its Programme targets of – 0,25 % and 0,5 % of GDP, respectively. The Greek authorities are to pursue a fiscal path premised on primary surplus targets of 1,75 % of GDP in 2017 and 3,5 % of GDP in 2018 and over the medium term. The trajectory of the fiscal targets is consistent with the expected growth rates of the Greek economy as it recovers from its deepest recorded recession. |
| --- | --- |

(8)

Under that forecast, the debt-to-GDP ratio would amount to 179,0 % in 2016, 178,8 % in 2017, 174,6 % in 2018 and 165,2 % in 2019. The debt-to-GDP ratio would therefore move to a declining path as from 2017. Greece achieved primary surpluses of 0,5 % of GDP in 2015 and 4,2 % of GDP in 2016, outperforming its Programme targets of – 0,25 % and 0,5 % of GDP, respectively. The Greek authorities are to pursue a fiscal path premised on primary surplus targets of 1,75 % of GDP in 2017 and 3,5 % of GDP in 2018 and over the medium term. The trajectory of the fiscal targets is consistent with the expected growth rates of the Greek economy as it recovers from its deepest recorded recession.

| (9) | In light of the updated forecasts by the Commission services, and in light of the results of the second review that was conducted by the Commission in liaison with the ECB and, where appropriate, with the IMF, an update should be made to the existing Programme to reflect the reforms carried out by the Greek authorities by the end of the first quarter of 2017. On that basis, the updated conditionality should outline the range of policies needed for the successful implementation of the Programme in the future, with the aim of returning the Greek economy to sustainable growth. It is therefore appropriate to amend Council Implementing Decision (EU) 2016/544. |
| --- | --- |

(9)

In light of the updated forecasts by the Commission services, and in light of the results of the second review that was conducted by the Commission in liaison with the ECB and, where appropriate, with the IMF, an update should be made to the existing Programme to reflect the reforms carried out by the Greek authorities by the end of the first quarter of 2017. On that basis, the updated conditionality should outline the range of policies needed for the successful implementation of the Programme in the future, with the aim of returning the Greek economy to sustainable growth. It is therefore appropriate to amend Council Implementing Decision (EU) 2016/544.

| (10) | Any form of financial assistance received by Greece to help it implement the policies under its Programme should be in line with the legal requirements and policies of the Union, in particular the Union's economic governance framework and the Charter of Fundamental Rights of the European Union (‘the Charter’). To the extent that any of the measures envisaged in the macroeconomic adjustment programme limit the exercise of the rights and freedoms recognised by the Charter, those limitations are in conformity with Article 52(1) thereof. Any intervention in support of financial institutions should be carried out in accordance with the Union's rules on competition. The Commission should ensure that any measures laid down in a Memorandum of Understanding in the context of requested ESM financial assistance is fully consistent with this Decision, |
| --- | --- |

(10)

Any form of financial assistance received by Greece to help it implement the policies under its Programme should be in line with the legal requirements and policies of the Union, in particular the Union's economic governance framework and the Charter of Fundamental Rights of the European Union (‘the Charter’). To the extent that any of the measures envisaged in the macroeconomic adjustment programme limit the exercise of the rights and freedoms recognised by the Charter, those limitations are in conformity with Article 52(1) thereof. Any intervention in support of financial institutions should be carried out in accordance with the Union's rules on competition. The Commission should ensure that any measures laid down in a Memorandum of Understanding in the context of requested ESM financial assistance is fully consistent with this Decision,

HAS ADOPTED THIS DECISION:

Article 1

Article 2 of Council Implementing Decision (EU) 2016/544 is replaced by the following:

‘Article 2

1.   Greece shall pursue fiscal consolidation by means of high-quality permanent measures while minimising the impact of those measures on disadvantaged people. The Greek authorities commit to ensuring sustainable public finances and achieving sizeable and sustainable primary surpluses over the medium-term that will reduce the debt-to-GDP ratio steadily. Greece shall accordingly pursue a fiscal path premised on primary surplus targets of 1,75 % of GDP in 2017 and 3,5 % of GDP as of 2018 and over the medium-term. The Greek authorities commit to take further structural measures yielding 0,3 % of GDP by 2018 in order to secure the targeted primary surplus path. The measures to achieve those primary surplus targets, and as agreed as part of the second review, shall include: the streamlining of welfare benefits and abolition of tax expenditures based on the recommendations of the World Bank's Social Welfare Review; the rationalisation of healthcare spending through widening the scope of the closed budget framework and reducing claw-back ceilings; the introduction of a tax on short-term tourist accommodation rentals; and the rationalisation of certain performance incentives and allowances in the public sector.

2.   To support the rebalancing of the budget toward more growth-friendly and distributionally fair policies, while ensuring that medium-term fiscal targets are met, the Greek authorities shall take the following legislative actions:

| i. | adopt a medium-term fiscal strategy for 2018-2021 in line with agreed medium-term targets, which are to be reached without growth-detrimental measures; |
| --- | --- |

i.

adopt a medium-term fiscal strategy for 2018-2021 in line with agreed medium-term targets, which are to be reached without growth-detrimental measures;

| ii. | implement pension reform to deliver net savings of 1 % of GDP in 2019-2022 and personal income tax reform that is to deliver net savings of 1 % of GDP in 2020, 2021 and 2022; |
| --- | --- |

ii.

implement pension reform to deliver net savings of 1 % of GDP in 2019-2022 and personal income tax reform that is to deliver net savings of 1 % of GDP in 2020, 2021 and 2022;

| iii. | adopt a growth-enhancing tax package matching, in net terms, the yield from the personal income tax reform; the package is to encompass: (i) a reduction in personal income tax rates and the solidarity surcharge, with a medium-term fiscal impact of 0,8 % of GDP; (ii) a reduction in corporate income tax rates with a medium-term fiscal impact of 0,1 % of GDP; and (iii) a reduction in property tax (ENFIA) with an impact of 0,1 % of GDP; |
| --- | --- |

iii.

adopt a growth-enhancing tax package matching, in net terms, the yield from the personal income tax reform; the package is to encompass: (i) a reduction in personal income tax rates and the solidarity surcharge, with a medium-term fiscal impact of 0,8 % of GDP; (ii) a reduction in corporate income tax rates with a medium-term fiscal impact of 0,1 % of GDP; and (iii) a reduction in property tax (ENFIA) with an impact of 0,1 % of GDP;

| iv. | adopt a targeted spending package that matches, in net terms, the yield from the pension reform composed of: (i) an increase in spending on targeted welfare benefits (housing allowance, child benefits, school meals, early childhood education and care/pre-school education, means-tested reduction in health co-payments) of 0,7 % of GDP; (ii) high-quality public infrastructure investment of 0,15 % of GDP; and (iii) active labour market policies of 0,15 % of GDP; |
| --- | --- |

iv.

adopt a targeted spending package that matches, in net terms, the yield from the pension reform composed of: (i) an increase in spending on targeted welfare benefits (housing allowance, child benefits, school meals, early childhood education and care/pre-school education, means-tested reduction in health co-payments) of 0,7 % of GDP; (ii) high-quality public infrastructure investment of 0,15 % of GDP; and (iii) active labour market policies of 0,15 % of GDP;

| v. | to implement the personal income tax measures in 2019 if, based on a forward-looking assessment in the context of the final programme review, a frontloaded implementation is needed in order to reach the agreed 3,5 % of GDP primary surplus fiscal target in 2019, which is to be reached without growth-detrimental measures; |
| --- | --- |

v.

to implement the personal income tax measures in 2019 if, based on a forward-looking assessment in the context of the final programme review, a frontloaded implementation is needed in order to reach the agreed 3,5 % of GDP primary surplus fiscal target in 2019, which is to be reached without growth-detrimental measures;

| vi. | the expansionary package is to be implemented starting in 2019, contingent on an assessment and an agreement in the final programme review, following a transparent process, with the amount to be implemented in line with the amount by which the institutions project that Greece will exceed the agreed medium-term targets, in order to ensure that these targets are achieved. |
| --- | --- |

vi.

the expansionary package is to be implemented starting in 2019, contingent on an assessment and an agreement in the final programme review, following a transparent process, with the amount to be implemented in line with the amount by which the institutions project that Greece will exceed the agreed medium-term targets, in order to ensure that these targets are achieved.

3.   The Greek authorities shall complete the framework needed for the full implementation of the Independent Authority of Public Revenue and for its effective operation. They shall take further measures to improve tax compliance, including legislation for the promotion and facilitation of the use of electronic payments. Measures to strengthen the fight against tax evasion shall, inter alia, aim to improve the model of cooperation between the justice and tax administrations.

4.   The Greek authorities shall take measures to further strengthen the budget process and public financial management. They shall ensure that national legislation is fully in line with the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (Fiscal Compact). The Greek authorities shall also present a medium-term action plan to ensure that payments are made in compliance with Directive 2011/7/EU of the European Parliament and of the Council (*1). They shall strengthen the public procurement framework, including by fostering central procurement.

5.   The Greek authorities shall fully implement the new legislative provisions of the comprehensive pension reform of 2016. To rationalise public health expenditure, the Greek authorities shall take structural measures focusing on improving efficiency, including a closed budget (clawback ceiling) to cover items previously not under clawback. They shall publish an updated price bulletin to reduce pharmaceutical prices, update and publish on a regular basis the positive and the negative lists, and adopt further measures to improve generics penetration.

6.   The Greek authorities shall ensure the smooth roll-out and implementation of the new Social Solidarity Income scheme. They shall undertake a major reform of the welfare system, based on the relevant recommendations of the Social Welfare Review provided by the World Bank. That reform shall aim to streamlining the system and better targeting the needs of the most vulnerable, including the re-direction of resources to the financing of the national roll-out of the new Social Solidarity Income scheme.

7.   To safeguard financial stability, the Greek authorities shall publish a roadmap for the relaxation of capital controls, avoiding undue delays without compromising financial stability. They shall assess and address impediments to the secondary market for non-performing loans identified in the report on the review of implementation of Law 4354/2015, in order to streamline the licencing process for servicers of non-performing loans. The Greek authorities shall establish an out-of-court workout scheme for non-performing loans and shall ensure the smooth implementation thereof. The scheme shall allow for both large and smaller debtors with a debt above a minimum threshold to have recourse to the debt-restructuring mechanism, and shall subject all elements of debt to that mechanism, including private and public debt but excluding social security contributions and withheld taxes. The Greek authorities shall also modernise the corporate insolvency framework and ensure the effective implementation thereof, with a key focus on the role of insolvency administrators. The Greek authorities shall review the Code of Civil Procedure, with a view to bringing it in line with Union best practices.

8.   To promote growth, competitiveness and investment, the Greek authorities shall continue to design and implement a wide range of reforms in product markets. These reforms shall aim at achieving Union best practices. The reforms shall include: further implementation of OECD Toolkit recommendations to remove impediments to competition across a wide range of sectors; reforms to liberalise investment licensing and to reduce the administrative burden of starting a business; further steps to liberalise regulated professions; reforms to modernise the framework for land use, including spatial planning and cadastre; and measures to enhance the functioning of the water and transport sectors.

9.   Regarding labour markets, Greece shall adopt legislation to clarify that the 2011 collective bargaining reforms will be extended until the end of the Programme. The Greek authorities shall replace the current administrative framework for collective dismissals with a notification procedure of no more than three months, which shall not involve ex ante approval, and shall amend legislation on industrial action. The Greek authorities shall also take further steps to combat undeclared work, strengthen vocational education and training, and shall implement the three-year action plan on education.

10.   The Greek authorities shall continue the implementation of wide-ranging reforms in the energy markets, to bring them in line with Union legislation and policies, to make them more modern and competitive, to reduce monopolistic rents and inefficiencies, to promote innovation, to favour the wider adoption of renewables and gas, and to ensure the transfer of benefits of all those changes to consumers. In the electricity market, in order to bring the market share of the incumbent to the agreed targets, the Greek authorities shall continue the implementation of electricity auctions, and shall propose unconditional structural measures to divest a share of the generation capacity of the incumbent, in line with the relevant Commission Decisions that were upheld by the General Court (*2). The Greek authorities shall also continue the process leading to the full ownership unbundling of the transmission system operator from the incumbent, shall continue the implementation of the reform of incentives for renewable energies, and shall ensure the timely implementation of other market reforms. In the gas market, continued implementation of the existing reforms shall, inter alia, lead to full eligibility to switch supplier for all customers by 2018, as scheduled. The Greek authorities shall take further action to remove remaining obstacles to effective competition in the wholesale and retail gas markets, and to promote interconnections, as well as the diversification of the sources of supply.

11.   The Greek authorities shall continue to implement an ambitious privatisation programme and to implement policies that support investment. The Greek authorities commit to facilitating the privatisation process and to completing all necessary government actions to allow tenders to be executed successfully. In that respect, the Greek authorities shall complete all necessary actions as agreed on a quarterly basis between the Hellenic Republic Asset Development Fund (‘HRADF’), the institutions and the Greek government. The List of Government Pending Actions has been approved by the Board of Directors of the HRADF. Following the establishment of the Hellenic Corporation of Assets and Participations (HCAP), which shall have in its possession valuable Greek assets, the Greek authorities shall ensure that the management and the internal rules of HCAP comply with international standards and best practices, including the OECD Guidelines on Governance of State-Owned Enterprises. The overarching objective of HCAP shall be to manage valuable Greek assets; and to protect, create and ultimately maximise their value, which it shall monetise through privatisations and other means.

12.   A modern State and public administration shall continue to be a key priority of the Programme. The Greek authorities shall pay particular attention to the implementation of the measures already taken under the Programme to increase the efficiency of the public sector in the delivery of essential public goods and services, with special attention to the recruitment and de-politicisation of managers, performance evaluations, and mobility. Measures shall be taken to enhance the effectiveness of the judicial system, including by allowing for the implementation of electronic auctions, and to upgrade the fight against corruption. The institutional and operational independence of key institutions, such as the revenue administration and the statistics institute (Elstat), shall be strengthened through the further implementation of reforms that have already been adopted.

Article 2

This Decision is addressed to the Hellenic Republic.

Done at Brussels, 30 June 2017.

For the Council

The President

H. DALLI

---

(1)  
  OJ L 140, 27.5.2013, p. 1.

1

(2)  Council Implementing Decision (EU) 2016/544 of 19 August 2015 approving the macroeconomic adjustment programme of Greece (2015/1411) (OJ L 91, 7.4.2016, p. 27).

2

---