# Official Journal C 89/2007

| | ISSN 1725-2423 |
| --- | --- |
| Official Journal
  of the European Union | C 89 |
| | |
| English edition | Information and Notices | Volume 5024 April 2007 |

ISSN 1725-2423

Official Journal

of the European Union

C 89

English edition

Information and Notices

Volume 5024 April 2007

---

| Notice No | Contents | page |
| --- | --- | --- |
| | I   Resolutions, recommendations, guidelines and opinions |
| | RECOMMENDATIONS |
| | Council |
| 2007/C 089/01 | Recommendation No 1/2007 of the EU-Lebanon Association Council of 19 January 2007 on the implementation of the EU-Lebanon Action Plan | 1 |
| | OPINIONS |
| | Council |
| 2007/C 089/02 | Council opinion of 27 March 2007 on the updated stability programme of Belgium, 2006-2010 | 2 |
| 2007/C 089/03 | Council opinion of 27 March 2007 on the updated stability programme of Spain, 2006-2009 | 7 |
| 2007/C 089/04 | Council opinion of 27 March 2007 on the convergence programme of Bulgaria, 2006-2009 | 11 |
| 2007/C 089/05 | Council opinion of 27 March 2007 on the updated convergence programme of Latvia, 2006-2009 | 15 |
| 2007/C 089/06 | Council opinion of 27 March 2007 on the convergence programme of Romania, 2006-2009 | 19 |

Notice No

Contents

page

I   Resolutions, recommendations, guidelines and opinions

RECOMMENDATIONS

Council

2007/C 089/01

Recommendation No 1/2007 of the EU-Lebanon Association Council of 19 January 2007 on the implementation of the EU-Lebanon Action Plan

1

OPINIONS

Council

2007/C 089/02

Council opinion of 27 March 2007 on the updated stability programme of Belgium, 2006-2010

2

2007/C 089/03

Council opinion of 27 March 2007 on the updated stability programme of Spain, 2006-2009

7

2007/C 089/04

Council opinion of 27 March 2007 on the convergence programme of Bulgaria, 2006-2009

11

2007/C 089/05

Council opinion of 27 March 2007 on the updated convergence programme of Latvia, 2006-2009

15

2007/C 089/06

Council opinion of 27 March 2007 on the convergence programme of Romania, 2006-2009

19

| | II   Information |
| --- | --- |
| | INFORMATION FROM EUROPEAN UNION INSTITUTIONS AND BODIES |
| | Commission |
| 2007/C 089/07 | Publication of an application pursuant to Article 6(2) of Council Regulation (EC) No 510/2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs | 23 |
| 2007/C 089/08 | Publication of an amendment application pursuant to Article 6(2) of Council Regulation (EC) No 510/2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs | 26 |
| 2007/C 089/09 | Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty — Cases where the Commission raises no objections | 30 |
| 2007/C 089/10 | Non-opposition to a notified concentration (Case COMP/M.4566 — Carrefour-Marinopoulos/Credicom/CMCC) (
  1
  ) | 37 |

II   Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Commission

2007/C 089/07

Publication of an application pursuant to Article 6(2) of Council Regulation (EC) No 510/2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs

23

2007/C 089/08

Publication of an amendment application pursuant to Article 6(2) of Council Regulation (EC) No 510/2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs

26

2007/C 089/09

Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty — Cases where the Commission raises no objections

30

2007/C 089/10

Non-opposition to a notified concentration (Case COMP/M.4566 — Carrefour-Marinopoulos/Credicom/CMCC) (
  1
  )

1

37

| | IV   Notices |
| --- | --- |
| | NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES |
| | Commission |
| 2007/C 089/11 | Euro exchange rates | 38 |
| | NOTICES FROM MEMBER STATES |
| 2007/C 089/12 | Bodies responsible for the registration of tobacco cultivation contracts | 39 |

IV   Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Commission

2007/C 089/11

Euro exchange rates

38

NOTICES FROM MEMBER STATES

2007/C 089/12

Bodies responsible for the registration of tobacco cultivation contracts

39

| | V   Announcements |
| --- | --- |
| | PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMPETITION POLICY |
| | Commission |
| 2007/C 089/13 | Prior notification of a concentration (Case COMP/M.4564 — Bridgestone/Bandag) (
  1
  ) | 42 |
| 2007/C 089/14 | Prior notification of a concentration (Case COMP/M.4665 — The Apollo Group/Claire's Stores) — Candidate case for simplified procedure (
  1
  ) | 43 |

V   Announcements

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMPETITION POLICY

Commission

2007/C 089/13

Prior notification of a concentration (Case COMP/M.4564 — Bridgestone/Bandag) (
  1
  )

1

42

2007/C 089/14

Prior notification of a concentration (Case COMP/M.4665 — The Apollo Group/Claire's Stores) — Candidate case for simplified procedure (
  1
  )

1

43

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

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(1)   Text with EEA relevance

1

| EN | |
| --- | --- |

EN

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I Resolutions, recommendations, guidelines and opinions

RECOMMENDATIONS

Council

| 24.4.2007 | EN | Official Journal of the European Union | C 89/1 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/1

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RECOMMENDATION No 1/2007 OF THE EU-LEBANON ASSOCIATION COUNCIL

of 19 January 2007

on the implementation of the EU-Lebanon Action Plan

(2007/C 89/01)

THE EU-LEBANON ASSOCIATION COUNCIL,

Having regard to the Euro-Mediterranean Agreement establishing an association between the European Community and its Member States, of the one part, and the Republic of Lebanon, of the other part (hereinafter referred to as ‘the Euro-Mediterranean Agreement’), and in particular Article 76(2), second sentence thereof,

Whereas:

| (1) | Article 76 of the Euro-Mediterranean Agreement gives the Association Council the power to make appropriate recommendations, for the purpose of attaining the objectives of the Agreement. |
| --- | --- |

(1)

Article 76 of the Euro-Mediterranean Agreement gives the Association Council the power to make appropriate recommendations, for the purpose of attaining the objectives of the Agreement.

| (2) | In terms of Article 86 of the Euro-Mediterranean Agreement, the Parties shall take any general or specific measures required to fulfil their obligations under the Agreement and shall see to it that the objectives set out in the Agreement are attained. |
| --- | --- |

(2)

In terms of Article 86 of the Euro-Mediterranean Agreement, the Parties shall take any general or specific measures required to fulfil their obligations under the Agreement and shall see to it that the objectives set out in the Agreement are attained.

| (3) | The Parties to the Euro-Mediterranean Agreement have agreed on the text of the EU-Lebanon Action Plan. |
| --- | --- |

(3)

The Parties to the Euro-Mediterranean Agreement have agreed on the text of the EU-Lebanon Action Plan.

| (4) | The EU-Lebanon Action Plan will support the implementation of the Euro-Mediterranean Agreement through the elaboration and agreement between the Parties of concrete steps which will provide practical guidance for such implementation. |
| --- | --- |

(4)

The EU-Lebanon Action Plan will support the implementation of the Euro-Mediterranean Agreement through the elaboration and agreement between the Parties of concrete steps which will provide practical guidance for such implementation.

| (5) | The Action Plan serves the dual purpose of setting out concrete steps in bringing the fulfilment of the Parties' obligations set out in the Euro-Mediterranean Agreement, and of providing a broader framework for further strengthening EU-Lebanon relations to involve a significant measure of economic integration and a deepening of political cooperation, in accordance with the overall objectives of the Euro-Mediterranean Agreement, |
| --- | --- |

(5)

The Action Plan serves the dual purpose of setting out concrete steps in bringing the fulfilment of the Parties' obligations set out in the Euro-Mediterranean Agreement, and of providing a broader framework for further strengthening EU-Lebanon relations to involve a significant measure of economic integration and a deepening of political cooperation, in accordance with the overall objectives of the Euro-Mediterranean Agreement,

HAS ADOPTED THE FOLLOWING RECOMMENDATION:

Sole Article

The Association Council recommends that the Parties implement the EU-Lebanon Action Plan (1), insofar as such implementation is directed towards attainment of the objectives of the Euro-Mediterranean Agreement.

Done at Brussels, on 19 January 2007.

For the Association Council

The President

F.-W. STEINMEIER

---

(1)  http://register.consilium.europa.eu

1

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OPINIONS

Council

| 24.4.2007 | EN | Official Journal of the European Union | C 89/2 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/2

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COUNCIL OPINION

of 27 March 2007

on the updated stability programme of Belgium, 2006-2010

(2007/C 89/02)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 5(3) thereof,

Having regard to the recommendation of the Commission,

After consulting the Economic and Financial Committee,

HAS DELIVERED THIS OPINION:

| (1) | On 27 March 2007 the Council examined the updated stability programme of Belgium, which covers the period 2006 to 2010 (2). |
| --- | --- |

(1)

On 27 March 2007 the Council examined the updated stability programme of Belgium, which covers the period 2006 to 2010 (2).

| (2) | The macroeconomic scenario underlying the programme envisages that real GDP growth will decrease from 2,7 % in 2006 to 2,2 % on average over the rest of the programme period. Assessed against currently available information, this scenario appears to be based on plausible growth assumptions. The programme's projections for inflation also appear realistic. |
| --- | --- |

(2)

The macroeconomic scenario underlying the programme envisages that real GDP growth will decrease from 2,7 % in 2006 to 2,2 % on average over the rest of the programme period. Assessed against currently available information, this scenario appears to be based on plausible growth assumptions. The programme's projections for inflation also appear realistic.

| (3) | The current update of the stability programme is based on the assumption of a balanced budget in 2006. This assumption seems to be broadly confirmed by most recent data, whereas the Commission services' autumn forecast had projected a deficit of 0,2 % of GDP. While cyclical conditions in 2006 turned out to be significantly better than foreseen in the previous update and expenditure developed broadly as expected, revenues were lower than anticipated (notably because of an underestimation of the impact of the final stage of the 2001 direct tax reform, which was aimed at reducing the tax wedge). This shortfall was partly compensated by the fact that planned one-off measures yielded more than expected and by some additional one-offs of a limited magnitude. Therefore the structural balance (i.e. the cyclically-adjusted balance net of one-off and other temporary measures) significantly deteriorated in 2006, mainly due to revenue reducing measures. |
| --- | --- |

(3)

The current update of the stability programme is based on the assumption of a balanced budget in 2006. This assumption seems to be broadly confirmed by most recent data, whereas the Commission services' autumn forecast had projected a deficit of 0,2 % of GDP. While cyclical conditions in 2006 turned out to be significantly better than foreseen in the previous update and expenditure developed broadly as expected, revenues were lower than anticipated (notably because of an underestimation of the impact of the final stage of the 2001 direct tax reform, which was aimed at reducing the tax wedge). This shortfall was partly compensated by the fact that planned one-off measures yielded more than expected and by some additional one-offs of a limited magnitude. Therefore the structural balance (i.e. the cyclically-adjusted balance net of one-off and other temporary measures) significantly deteriorated in 2006, mainly due to revenue reducing measures.

| (4) | The main goal of the medium-term budgetary strategy in the programme is to ensure a continuous reduction of the still high debt ratio (close to 90 % in 2006) to below 75 % of GDP in 2010, through a gradual build-up of nominal budgetary surpluses (from 0,3 % of GDP in 2007 to 0,9 % in 2010), to prepare for the ageing shock ahead. The primary surplus, which has been decreasing since 2001 (when it was 7 % of GDP), is expected to stabilise at around 4,1 % of GDP. The overall adjustment is nearly entirely due to reduced expenditure (by 1

   percentage point of GDP between 2006 and 2010). The expenditure reduction is attributable to a fall in interest expenditure (

  percentage point) which results from the continuous debt reduction as well as to a reduction of primary expenditures (

  a percentage point). It is partly offset by a decrease in government revenue (

  a percentage point). Beyond 2007 the programme's projections broadly correspond to no-policy change projections, although the programme also (implicitly) seems to rely on further one-offs to achieve the budgetary targets. This strategy is largely similar to the one presented in the previous update of the stability programme against a broadly unchanged macroeconomic scenario. |
| --- | --- |

(4)

Formula

Formula

Formula

Formula

| (5) | As the programme does not provide information on the use of one-off and other temporary measures after 2007, the structural balance from 2008 onwards cannot be calculated based on the information in the programme. Assuming that the relative impact of one-off measures remains unchanged after 2007, the structural balance calculated according to the commonly agreed methodology is planned to improve from around -0,4 % of GDP in 2006 to 0,7 % at the end of the programme period. As in the previous update of the stability programme, the medium-term objective (MTO) for the budgetary position presented in the programme is a structural surplus of 0,5 % of GDP, which according to the programme will be achieved by 2008. This is one year later than in the previous update. As the MTO is more demanding than the minimum benchmark (estimated at a deficit of around 1

  % of GDP), achieving it should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. The MTO lies within the range indicated for euro-area and ERM II Member States in the Stability and Growth Pact and the code of conduct and is more demanding than implied by the debt ratio and average potential output growth in the long term. |
| --- | --- |

(5)

Formula

| (6) | The budgetary outcomes could be slightly worse than projected in the programme. This is especially the case for 2007, mainly because the budget appears to be somewhat on the optimistic side and sometimes provides insufficient details about the envisaged measures (including the one-off measures in the area of real estate sales or the take-over of pension obligations from public corporations, which are not further specified). Belgium overall has a good track record of achieving the nominal budgetary targets, but as in recent years a strict monitoring will be necessary to achieve the target for 2007. The upcoming budget control exercises should specify any required additional measures. A worse-than-targeted outcome in 2007 would also carry over to the following years. From 2008 onwards there is also a risk that expired one-offs will not be replaced by structural measures. |
| --- | --- |

(6)

The budgetary outcomes could be slightly worse than projected in the programme. This is especially the case for 2007, mainly because the budget appears to be somewhat on the optimistic side and sometimes provides insufficient details about the envisaged measures (including the one-off measures in the area of real estate sales or the take-over of pension obligations from public corporations, which are not further specified). Belgium overall has a good track record of achieving the nominal budgetary targets, but as in recent years a strict monitoring will be necessary to achieve the target for 2007. The upcoming budget control exercises should specify any required additional measures. A worse-than-targeted outcome in 2007 would also carry over to the following years. From 2008 onwards there is also a risk that expired one-offs will not be replaced by structural measures.

| (7) | In view of this risk assessment, the budgetary stance in the programme may not be sufficient to ensure that the MTO is achieved by 2008, as envisaged in the programme. However, as stated above, the MTO is more demanding than implied by the debt ratio and average potential output growth in the long term. The budgetary strategy seems sufficient to achieve a budgetary position in structural terms that can be considered appropriate under the Pact from 2008 onwards. In addition, the budgetary stance in the programme seems to provide a sufficient safety margin against breaching the 3 % of GDP deficit threshold with normal macroeconomic fluctuations throughout the programme period. The pace of the adjustment towards the MTO implied by the programme should be strengthened to be in line with the Stability and Growth Pact, which specifies that, for euro-area and ERM II Member States, the annual improvement in the structural balance should be 0,5 % of GDP as a benchmark and that the adjustment should be higher in good economic times and could be lower in bad economic times. In particular, taking into account risks, the adjustment may fall short of the benchmark in 2007 and slow down thereafter. |
| --- | --- |

(7)

In view of this risk assessment, the budgetary stance in the programme may not be sufficient to ensure that the MTO is achieved by 2008, as envisaged in the programme. However, as stated above, the MTO is more demanding than implied by the debt ratio and average potential output growth in the long term. The budgetary strategy seems sufficient to achieve a budgetary position in structural terms that can be considered appropriate under the Pact from 2008 onwards. In addition, the budgetary stance in the programme seems to provide a sufficient safety margin against breaching the 3 % of GDP deficit threshold with normal macroeconomic fluctuations throughout the programme period. The pace of the adjustment towards the MTO implied by the programme should be strengthened to be in line with the Stability and Growth Pact, which specifies that, for euro-area and ERM II Member States, the annual improvement in the structural balance should be 0,5 % of GDP as a benchmark and that the adjustment should be higher in good economic times and could be lower in bad economic times. In particular, taking into account risks, the adjustment may fall short of the benchmark in 2007 and slow down thereafter.

| (8) | The programme reports a debt of 87,7 % of GDP for 2006, but this does not include the debt assumption from the railway corporation SNCB in 2005, which according to Eurostat increases the debt level by 1,7 % of GDP in the same year. Therefore the Commission services' estimate of the government gross debt is 89,4 % of GDP in 2006, which is still far above the 60 % of GDP Treaty reference value, although substantially decreasing over the last several years. The programme projects the debt ratio to rapidly decline by around 15 percentage points over the programme period. In view of the risk assessment and in particular the risks to the budgetary targets mentioned above, the evolution of the debt ratio is likely to be slightly less favourable than projected in the programme. However, the debt ratio still seems to be sufficiently diminishing towards the reference value over the programme period. |
| --- | --- |

(8)

The programme reports a debt of 87,7 % of GDP for 2006, but this does not include the debt assumption from the railway corporation SNCB in 2005, which according to Eurostat increases the debt level by 1,7 % of GDP in the same year. Therefore the Commission services' estimate of the government gross debt is 89,4 % of GDP in 2006, which is still far above the 60 % of GDP Treaty reference value, although substantially decreasing over the last several years. The programme projects the debt ratio to rapidly decline by around 15 percentage points over the programme period. In view of the risk assessment and in particular the risks to the budgetary targets mentioned above, the evolution of the debt ratio is likely to be slightly less favourable than projected in the programme. However, the debt ratio still seems to be sufficiently diminishing towards the reference value over the programme period.

| (9) | The long-term budgetary impact of ageing in Belgium is above the EU average, influenced notably by a large increase in pension expenditure as a share of GDP over the coming decades. The initial budgetary position with a high primary surplus, albeit weaker compared to 2005, contributes to easing the projected long-term budgetary impact of an ageing population, but it is not sufficient to fully cover the substantial increase in expenditure. Moreover, the current level of gross debt, while declining, remains well above the Treaty reference value. The steady reduction of the debt ratio requires sustaining high primary surpluses for a long period of time, which would contribute to reducing risks to the sustainability of public finances. Overall, Belgium appears to be at medium risk with regard to the sustainability of public finances. |
| --- | --- |

(9)

The long-term budgetary impact of ageing in Belgium is above the EU average, influenced notably by a large increase in pension expenditure as a share of GDP over the coming decades. The initial budgetary position with a high primary surplus, albeit weaker compared to 2005, contributes to easing the projected long-term budgetary impact of an ageing population, but it is not sufficient to fully cover the substantial increase in expenditure. Moreover, the current level of gross debt, while declining, remains well above the Treaty reference value. The steady reduction of the debt ratio requires sustaining high primary surpluses for a long period of time, which would contribute to reducing risks to the sustainability of public finances. Overall, Belgium appears to be at medium risk with regard to the sustainability of public finances.

| (10) | The stability programme does not contain a qualitative assessment of the overall impact of the October 2006 implementation report of the national reform programme within the medium-term fiscal strategy. In addition, it provides no systematic information on the direct budgetary costs or savings of the main reforms envisaged in the national reform programme but its budgetary projections seem to take into account the public finance implications of the actions outlined in the national reform programme. The measures in the area of public finances envisaged in the stability programme seem consistent with those foreseen in the national reform programme. In particular, both programmes envisage the gradual implementation of the 'generation pact' (a comprehensive plan to increase employment and strengthen the social security), a further gradual reduction of the tax burden on labour and measures to stimulate research and entrepreneurship. |
| --- | --- |

(10)

The stability programme does not contain a qualitative assessment of the overall impact of the October 2006 implementation report of the national reform programme within the medium-term fiscal strategy. In addition, it provides no systematic information on the direct budgetary costs or savings of the main reforms envisaged in the national reform programme but its budgetary projections seem to take into account the public finance implications of the actions outlined in the national reform programme. The measures in the area of public finances envisaged in the stability programme seem consistent with those foreseen in the national reform programme. In particular, both programmes envisage the gradual implementation of the 'generation pact' (a comprehensive plan to increase employment and strengthen the social security), a further gradual reduction of the tax burden on labour and measures to stimulate research and entrepreneurship.

| (11) | The budgetary strategy in the programme is broadly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008. |
| --- | --- |

(11)

The budgetary strategy in the programme is broadly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008.

| (12) | As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme has some gaps in the required and optional data (3). |
| --- | --- |

(12)

As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme has some gaps in the required and optional data (3).

The Council considers that the strategy of a continued reduction of the still high debt stock provides an example of fiscal policies conducted in compliance with the Pact. However, while the programme foresees a gradual build-up of surpluses (notably through reduced interest expenditure) starting from a balanced position in nominal terms, there are some risks to the achievement of the budgetary targets. Nevertheless, the medium-term objective is expected to be reached within the programme period.

In view of the above assessment, the Council invites Belgium to:

| (i) | ensure that the budgetary target for 2007 is met and strengthen the pace of adjustment towards the MTO thereafter, including through a reduction of the recourse to one-off measures; |
| --- | --- |

(i)

ensure that the budgetary target for 2007 is met and strengthen the pace of adjustment towards the MTO thereafter, including through a reduction of the recourse to one-off measures;

| (ii) | in the light of the high level of debt and the projected increase in age-related expenditure, to better address the long-term sustainability of public finances by at least achieving the MTO as well as by implementing reforms. |
| --- | --- |

(ii)

in the light of the high level of debt and the projected increase in age-related expenditure, to better address the long-term sustainability of public finances by at least achieving the MTO as well as by implementing reforms.

Comparison of key macroeconomic and budgetary projections.

| | | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Real GDP
  (% change) | SP Dec 2006 | 1,2 | 2,7 | 2,2 | 2,1 | 2,2 | 2,2 |
| COM Nov 2006 | 1,1 | 2,7 | 2,3 | 2,2 | n.a. | n.a. |
| SP Dec 2005 | 1,4 | 2,2 | 2,1 | 2,3 | 2,2 | n.a. |
| HICP inflation
  (%) | SP Dec 2006 | 2,5 | 2,4 | 1,9 | 1,8 | 1,8 | 1,9 |
| COM Nov 2006 | 2,5 | 2,4 | 1,8 | 1,7 | n.a. | n.a. |
| SP Dec 2005 | 2,9 | 2,8 | 2,0 | 1,9 | 1,7 | n.a. |
| Output gap
  (% of potential GDP) | SP Dec 2006
   (4) | – 0,8 | – 0,3 | – 0,4 | – 0,4 | – 0,4 | – 0,3 |
| COM Nov 2006 (8) | – 1,0 | – 0,6 | – 0,6 | – 0,7 | n.a. | n.a. |
| SP Dec 2005
   (4) | – 0,8 | – 0,6 | – 0,6 | – 0,5 | – 0,4 | n.a. |
| General government balance
  (% of GDP) | SP Dec 2006 | 0,1


  – 2,3
   (9) | 0,0 | 0,3 | 0,5 | 0,7 | 0,9 |
| COM Nov 2006 | – 2,3 | – 0,2 | – 0,5 | – 0,5 | n.a. | n.a. |
| SP Dec 2005 | 0,0 | 0,0 | 0,3 | 0,5 | 0,7 | n.a. |
| Primary balance
  (% of GDP) | SP Dec 2006 | 4,3


  1,9  (9) | 4,1 | 4,2 | 4,1 | 4,1 | 4,2 |
| COM Nov 2006 | 1,9 | 3,9 | 3,4 | 3,2 | n.a. | n.a. |
| SP Dec 2005 | 4,3 | 4,1 | 4,2 | 4,1 | 4,1 | n.a. |
| Cyclically-adjusted balance
  (% of GDP) | SP Dec 2006
   (4) | 0,8


  – 1,6
   (9) | 0,2 | 0,5 | 0,7 | 0,9 | 1,1 |
| COM Nov 2006 | – 1,7 | 0,1 | – 0,1 | – 0,1 | n.a. | n.a. |
| SP Dec 2005
   (4) | 0,4 | 0,3 | 0,6 | 0,8 | 0,9 | n.a. |
| Structural balance (5)

  (% of GDP) | SP Dec 2006
   (6) | n.a. | – 0,4 | 0,1 | n.d. | n.a. | n.a. |
| COM Nov 2006 (7) | 0,2 | – 0,7 | – 0,2 | – 0,1 | n.a. | n.a. |
| SP Dec 2005 | 0,0 | – 0,3 | 0,4 | 0,7 | 0,9 | n.a. |
| Government gross debt
  (% of GDP) | SP Dec 2006 | 91,5


  93,2  (9) | 87,7


  89,4  (9) | 83,9


  85,6  (9) | 80,4


  82,1  (9) | 76,6


  78,3  (9) | 72,6


  74,3  (9) |
| COM Nov 2006 | 93,2 | 89,4 | 86,3 | 83,2 | n.a. | n.a. |
| SP Dec 2005 | 94,3 | 90,7 | 87,0 | 83,0 | 79,1 | n.a. |
| Stability programme (SP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations |

2005

2006

2007

2008

2009

2010

Real GDP

(% change)

SP Dec 2006

1,2

2,7

2,2

2,1

2,2

2,2

COM Nov 2006

1,1

2,7

2,3

2,2

n.a.

n.a.

SP Dec 2005

1,4

2,2

2,1

2,3

2,2

n.a.

HICP inflation

(%)

SP Dec 2006

2,5

2,4

1,9

1,8

1,8

1,9

COM Nov 2006

2,5

2,4

1,8

1,7

n.a.

n.a.

SP Dec 2005

2,9

2,8

2,0

1,9

1,7

n.a.

Output gap

(% of potential GDP)

SP Dec 2006
   (4)

– 0,8

– 0,3

– 0,4

– 0,4

– 0,4

– 0,3

COM Nov 2006 (8)

– 1,0

– 0,6

– 0,6

– 0,7

n.a.

n.a.

SP Dec 2005
   (4)

– 0,8

– 0,6

– 0,6

– 0,5

– 0,4

n.a.

General government balance

(% of GDP)

SP Dec 2006

0,1

– 2,3
   (9)

0,0

0,3

0,5

0,7

0,9

COM Nov 2006

– 2,3

– 0,2

– 0,5

– 0,5

n.a.

n.a.

SP Dec 2005

0,0

0,0

0,3

0,5

0,7

n.a.

Primary balance

(% of GDP)

SP Dec 2006

4,3

1,9  (9)

4,1

4,2

4,1

4,1

4,2

COM Nov 2006

1,9

3,9

3,4

3,2

n.a.

n.a.

SP Dec 2005

4,3

4,1

4,2

4,1

4,1

n.a.

Cyclically-adjusted balance

(% of GDP)

SP Dec 2006
   (4)

0,8

– 1,6
   (9)

0,2

0,5

0,7

0,9

1,1

COM Nov 2006

– 1,7

0,1

– 0,1

– 0,1

n.a.

n.a.

SP Dec 2005
   (4)

0,4

0,3

0,6

0,8

0,9

n.a.

Structural balance (5)

(% of GDP)

SP Dec 2006
   (6)

n.a.

– 0,4

0,1

n.d.

n.a.

n.a.

COM Nov 2006 (7)

0,2

– 0,7

– 0,2

– 0,1

n.a.

n.a.

SP Dec 2005

0,0

– 0,3

0,4

0,7

0,9

n.a.

Government gross debt

(% of GDP)

SP Dec 2006

91,5

93,2  (9)

87,7

89,4  (9)

83,9

85,6  (9)

80,4

82,1  (9)

76,6

78,3  (9)

72,6

74,3  (9)

COM Nov 2006

93,2

89,4

86,3

83,2

n.a.

n.a.

SP Dec 2005

94,3

90,7

87,0

83,0

79,1

n.a.

Stability programme (SP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations

---

(1)  OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:

http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm

(2)  The update was submitted almost 2 weeks beyond the 1 December deadline set in the code of conduct.

(3)  The general government deficit and debt projections in the programme do not include the impact of a debt assumption from the railway company SNCB/NMBS in 2005 as decided by Eurostat on 23 October 2006. Moreover, the programme also does not provide information on the use of one-off and other temporary measures in 2008-2010.

(4)  Commission services calculations on the basis of the information in the programme.

(5)  Cyclically-adjusted balance (as in the previous rows) excluding one-off and other temporary measures.

(6)  One-off and other temporary measures taken from the programme (0,6 % of GDP in 2006 and 0,4 % in 2007; all deficit reducing). The programme does not provide information on the use of one-off measures in other years.

(7)  One-off and other temporary measures taken from the Commission services' autumn 2006 forecast (2,0 % of GDP in 2005, deficit increasing; 0,8 % in 2006 and 0,1 in 2007, both deficit reducing).

(8)  Based on estimated potential growth of 2,2 %, 2,3 %, 2,3 % and 2,2 % respectively in the period 2005-2008.

(9)  The deficit and debt figures in the programme for 2005 are those notified by the Belgian National Accounts Institute. On 23 October 2006 Eurostat amended the deficit and debt data notified by Belgium as they were found not to be in accordance with ESA95 rules, specifically in relation to the assumption by government (FIF/FSI — Fonds de l'infrastructure ferroviaire/Fonds voor spoorweginfrastructuur) of EUR 7 400 million (2,5 % of GDP) of the debt of the railway company SNCB/NMBS in 2005 (see Eurostat News Release NO 139/2006). According to ESA95 rules, the impact on the 2005 government deficit is of the same amount; the impact on the government debt at the end of 2005 amounts to EUR 5 200 million (1,7 % of GDP, taking into account a partial reimbursement occurred in that year). Data for 2005 marked with an asterisk are as amended by Eurostat. Debt data marked with an asterisk for years 2006 to 2010 have been ‘mechanically ’adjusted by the Commission services to comply with ESA95. This adjustment of debt figures is based on the technical assumption that the stock of FIF/FSI's debts remains unchanged. In December 2006, the Belgian government challenged Eurostat's amendment of the Belgium data before the European Court of First Instance.

Source:

Stability programme (SP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations

---

| 24.4.2007 | EN | Official Journal of the European Union | C 89/7 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/7

---

COUNCIL OPINION

of 27 March 2007

on the updated stability programme of Spain, 2006-2009

(2007/C 89/03)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 5(3) thereof,

Having regard to the recommendation of the Commission,

After consulting the Economic and Financial Committee,

HAS DELIVERED THIS OPINION:

| (1) | On 27 March 2007 the Council examined the updated stability programme of Spain, which covers the period 2006 to 2009 (2). |
| --- | --- |

(1)

On 27 March 2007 the Council examined the updated stability programme of Spain, which covers the period 2006 to 2009 (2).

| (2) | The macroeconomic scenario underlying the programme envisages that real GDP growth will decrease from 3,8 % in 2006 to 3,3 % on average over the rest of the programme period. Assessed against currently available information, this scenario appears to be based on plausible growth assumptions. The programme's projections for inflation also appear realistic. The projected inflation differential with the euro area, although decreasing, is still significant. While there may be some upside risks in the short term, there might also be some downside risks to this scenario in the medium term, associated to the imbalances of the economy, namely the increasing household indebtedness, the widening current account deficit and the possibility of the extended residential construction boom coming to an end more rapidly than foreseen in the programme. |
| --- | --- |

(2)

The macroeconomic scenario underlying the programme envisages that real GDP growth will decrease from 3,8 % in 2006 to 3,3 % on average over the rest of the programme period. Assessed against currently available information, this scenario appears to be based on plausible growth assumptions. The programme's projections for inflation also appear realistic. The projected inflation differential with the euro area, although decreasing, is still significant. While there may be some upside risks in the short term, there might also be some downside risks to this scenario in the medium term, associated to the imbalances of the economy, namely the increasing household indebtedness, the widening current account deficit and the possibility of the extended residential construction boom coming to an end more rapidly than foreseen in the programme.

| (3) | For 2006, the Commission services' autumn 2006 forecast estimated the general government surplus at 1,5 % of GDP, fully in line with the updated stability programme, but against a target of 0,9 % of GDP set in the previous update of the stability programme. This positive outcome is the result of higher-than-expected revenues stemming from strong job creation and buoyant corporate profits, which are estimated to have boosted direct tax revenues well above nominal GDP growth. |
| --- | --- |

(3)

For 2006, the Commission services' autumn 2006 forecast estimated the general government surplus at 1,5 % of GDP, fully in line with the updated stability programme, but against a target of 0,9 % of GDP set in the previous update of the stability programme. This positive outcome is the result of higher-than-expected revenues stemming from strong job creation and buoyant corporate profits, which are estimated to have boosted direct tax revenues well above nominal GDP growth.

| (4) | The update aims at (i) maintaining macroeconomic and budgetary stability and (ii) fostering productivity by increasing infrastructure, human and technological capital. The general government surplus is envisaged to decline from 1,4 % of GDP in 2006 to about 1 % in 2009. The time profile of the primary surplus is similar, falling from 3 % of GDP in 2006 to 2

  % in 2009. While revenues should decline by 0,2 % of GDP over the programme period, primary expenditures should increase by around 0,5 % of GDP, partly offset by a decline in the interest burden. The previous update projected smaller surpluses against a broadly similar macroeconomic outlook. The difference between the two updates is to be found in a much better 2006 surplus outcome than projected one year earlier, which is projected to have favourable carryover effects over the programme period. |
| --- | --- |

(4)

Formula

| (5) | The structural balance (i.e. the cyclically-adjusted balance net of one-off and other temporary measures) calculated according to the commonly agreed methodology is planned to marginally decline from around 1

  % of GDP in 2006 to 1

  % at the end of the programme period. As in the previous update of the stability programme, the medium-term objective (MTO) for the budgetary position presented in the programme is a balanced position in structural terms, which the programme plans to maintain by a large margin throughout the programme period. As the MTO is more demanding than the minimum benchmark (estimated at a deficit of around 1

  % of GDP, achieving it should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit). The MTO lies within the range indicated for euro-area and ERM II Member States in the Stability and Growth Pact and the code of conduct and is more demanding than implied by the debt ratio and average potential output growth in the long term. |
| --- | --- |

(5)

Formula

Formula

Formula

| (6) | The risks to the budgetary projections in the programme appear broadly balanced. The macroeconomic scenario underlying the update is plausible and revenue projections seem to reflect cautious assumptions. On the expenditure side, there is a risk of some expenditure overruns (at the level of regional authorities) if past trends in education and health care are confirmed. |
| --- | --- |

(6)

The risks to the budgetary projections in the programme appear broadly balanced. The macroeconomic scenario underlying the update is plausible and revenue projections seem to reflect cautious assumptions. On the expenditure side, there is a risk of some expenditure overruns (at the level of regional authorities) if past trends in education and health care are confirmed.

| (7) | In view of this risk assessment, the budgetary stance seems sufficient to maintain the MTO throughout the programme period, as envisaged in the programme. In addition it provides a sufficient safety margin against breaching the 3 % of GDP deficit threshold with normal macroeconomic fluctuations in every year. The fiscal policy stance implied by the programme is in line with the Stability and Growth Pact. |
| --- | --- |

(7)

In view of this risk assessment, the budgetary stance seems sufficient to maintain the MTO throughout the programme period, as envisaged in the programme. In addition it provides a sufficient safety margin against breaching the 3 % of GDP deficit threshold with normal macroeconomic fluctuations in every year. The fiscal policy stance implied by the programme is in line with the Stability and Growth Pact.

| (8) | Government gross debt is estimated to have declined below 40 % of GDP in 2006, well below the 60 % of GDP Treaty reference value. The update projects the debt ratio to further decline by 8 percentage points over the programme period. |
| --- | --- |

(8)

Government gross debt is estimated to have declined below 40 % of GDP in 2006, well below the 60 % of GDP Treaty reference value. The update projects the debt ratio to further decline by 8 percentage points over the programme period.

| (9) | The long-term budgetary impact of ageing in Spain is well above the EU average, mainly as a result of a relatively high increase in pension expenditure as a share of GDP over the coming decades. The initial budgetary position, improved compared with 2005, contributes to easing the projected long-term budgetary impact of ageing populations, but is not sufficient to fully cover the substantial increase in expenditure due to the ageing of the population. Maintaining high primary surpluses over the medium term and implementing further measures aimed at curbing the significant increase in age-related expenditures would contribute to reducing risks to the sustainability of public finances. Overall, Spain appears to be at medium risk with regard to the sustainability of public finances. |
| --- | --- |

(9)

The long-term budgetary impact of ageing in Spain is well above the EU average, mainly as a result of a relatively high increase in pension expenditure as a share of GDP over the coming decades. The initial budgetary position, improved compared with 2005, contributes to easing the projected long-term budgetary impact of ageing populations, but is not sufficient to fully cover the substantial increase in expenditure due to the ageing of the population. Maintaining high primary surpluses over the medium term and implementing further measures aimed at curbing the significant increase in age-related expenditures would contribute to reducing risks to the sustainability of public finances. Overall, Spain appears to be at medium risk with regard to the sustainability of public finances.

| (10) | The stability programme contains a qualitative assessment of the overall impact of the October 2006 implementation report of the national reform programme within the medium-term fiscal strategy. It provides some information, although not in a systematic manner, on the direct budgetary costs or savings of the main reforms envisaged in the national reform programme and its budgetary projections seem to take into account the public finance implications of the actions outlined in the national reform programme. The measures in the area of public finances envisaged in the stability programme seem consistent with those foreseen in the national reform programme. In particular, both programmes envisage the gradual increase of public R&D expenditures and of infrastructure investments. |
| --- | --- |

(10)

The stability programme contains a qualitative assessment of the overall impact of the October 2006 implementation report of the national reform programme within the medium-term fiscal strategy. It provides some information, although not in a systematic manner, on the direct budgetary costs or savings of the main reforms envisaged in the national reform programme and its budgetary projections seem to take into account the public finance implications of the actions outlined in the national reform programme. The measures in the area of public finances envisaged in the stability programme seem consistent with those foreseen in the national reform programme. In particular, both programmes envisage the gradual increase of public R&D expenditures and of infrastructure investments.

| (11) | The budgetary strategy in the programme is broadly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008. |
| --- | --- |

(11)

The budgetary strategy in the programme is broadly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008.

| (12) | As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme provides all required and most of the optional data (3). |
| --- | --- |

(12)

As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme provides all required and most of the optional data (3).

The Council considers that the medium term budgetary position is sound and the budgetary strategy provides a good example of fiscal policies conducted in compliance with the Stability and Growth Pact. Maintaining a strong budgetary position, thus avoiding an expansionary fiscal stance, is important in the light of large and rising external imbalances and the existing inflation differential with the euro area.

In view of the above assessment and in particular the projected increase in age-related expenditure, the Council invites Spain to further improve the long term sustainability of public finances with additional measures to contain the future impact of ageing on spending programmes.

Comparison of key macro economic and budgetary projections

| | 2005 | 2006 | 2007 | 2008 | 2009 |
| --- | --- | --- | --- | --- | --- |
| Real GDP
  (% change) | SP Dec 2006 | 3,5 | 3,8 | 3,4 | 3,3 | 3,3 |
| COM Nov 2006 (10) | 3,5 | 3,8 | 3,4 | 3,3 | n.a. |
| SP Dec 2005 | 3,4 | 3,3 | 3,2 | 3,2 | n.a. |
| HICP inflation  (9)(%) | SP Dec 2006
   (9) | 3,4 | 3,5 | 2,7 | 2,6 | 2,5 |
| COM Nov 2006 | 3,4 | 3,6 | 2,8 | 2,7 | n.a. |
| SP Dec 2005
   (9) | 4,2 | 3,5 | 3,3 | 3,2 | n.a. |
| Output gap
  (% of potential GDP) | SP Dec 2006
   (4) | 0,9 | 0,9 | 1,2 | 1,5 | 1,6 |
| COM Nov 2006 (8) | 0,8 | 0,9 | 1,1 | 1,3 | n.a. |
| SP Dec 2005
   (4) | 0,5 | 0,8 | 1,1 | 0,7 | n.a. |
| General government balance
  (% of GDP) | SP Dec 2006 | 1,1 | 1,4 | 1,0 | 0,9 | 0,9 |
| COM Nov 2006 | 1,1 | 1,5 | 1,1 | 0,9 | n.a. |
| SP Dec 2005 | 1,0 | 0,9 | 0,7 | 0,6 | n.a. |
| Primary balance
  (% of GDP) | SP Dec 2006 | 2,9 | 3,0 | 2,5 | 2,3 | 2,2 |
| COM Nov 2006 | 2,9 | 3,1 | 2,7 | 2,3 | n.a. |
| SP Dec 2005 | 2,8 | 2,6 | 2,2 | 2,0 | n.a. |
| Cyclically-adjusted balance
  (% of GDP) | SP Dec 2006
   (4) | 1,5 | 1,8 | 1,5 | 1,6 | 1,6 |
| COM Nov 2006 | 1,5 | 1,9 | 1,6 | 1,4 | n.a. |
| SP Dec 2005
   (4) | 1,2 | 1,2 | 1,2 | 0,9 | n.a. |
| Structural balance (5)

  (% of GDP) | SP Dec 2006
   (6) | 1,5 | 1,8 | 1,5 | 1,6 | 1,6 |
| COM Nov 2006 (7) | 1,5 | 1,9 | 1,6 | 1,4 | n.a. |
| SP Dec 2005 | 1,2 | 1,2 | 1,2 | 0,9 | n.a. |
| Government gross debt
  (% of GDP) | SP Dec 2006 | 43,1 | 39,7 | 36,6 | 34,3 | 32,2 |
| COM Nov 2006 | 43,1 | 39,7 | 37,0 | 34,7 | n.a. |
| SP Dec 2005 | 43,1 | 40,3 | 38,0 | 36,0 | n.a. |
| Stability programme (SP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations |

2005

2006

2007

2008

2009

Real GDP

(% change)

SP Dec 2006

3,5

3,8

3,4

3,3

3,3

COM Nov 2006 (10)

3,5

3,8

3,4

3,3

n.a.

SP Dec 2005

3,4

3,3

3,2

3,2

n.a.

HICP inflation  (9)(%)

SP Dec 2006
   (9)

3,4

3,5

2,7

2,6

2,5

COM Nov 2006

3,4

3,6

2,8

2,7

n.a.

SP Dec 2005
   (9)

4,2

3,5

3,3

3,2

n.a.

Output gap

(% of potential GDP)

SP Dec 2006
   (4)

0,9

0,9

1,2

1,5

1,6

COM Nov 2006 (8)

0,8

0,9

1,1

1,3

n.a.

SP Dec 2005
   (4)

0,5

0,8

1,1

0,7

n.a.

General government balance

(% of GDP)

SP Dec 2006

1,1

1,4

1,0

0,9

0,9

COM Nov 2006

1,1

1,5

1,1

0,9

n.a.

SP Dec 2005

1,0

0,9

0,7

0,6

n.a.

Primary balance

(% of GDP)

SP Dec 2006

2,9

3,0

2,5

2,3

2,2

COM Nov 2006

2,9

3,1

2,7

2,3

n.a.

SP Dec 2005

2,8

2,6

2,2

2,0

n.a.

Cyclically-adjusted balance

(% of GDP)

SP Dec 2006
   (4)

1,5

1,8

1,5

1,6

1,6

COM Nov 2006

1,5

1,9

1,6

1,4

n.a.

SP Dec 2005
   (4)

1,2

1,2

1,2

0,9

n.a.

Structural balance (5)

(% of GDP)

SP Dec 2006
   (6)

1,5

1,8

1,5

1,6

1,6

COM Nov 2006 (7)

1,5

1,9

1,6

1,4

n.a.

SP Dec 2005

1,2

1,2

1,2

0,9

n.a.

Government gross debt

(% of GDP)

SP Dec 2006

43,1

39,7

36,6

34,3

32,2

COM Nov 2006

43,1

39,7

37,0

34,7

n.a.

SP Dec 2005

43,1

40,3

38,0

36,0

n.a.

Stability programme (SP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations

---

(1)  OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:

http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm

(2)  The update was submitted 3 weeks beyond the 1 December deadline set in the code of conduct.

(3)  In particular, the data on HICP as well as on general government expenditure by function are not provided.

(4)  Commission services calculations on the basis of the information in the programme.

(5)  Cyclically-adjusted balance (as in the previous rows) excluding one-off and other temporary measures.

(6)  One-off and other temporary measures taken from the programme.

(7)  One-off and other temporary measures taken from the Commission services' autumn 2006 forecast.

(8)  Based on estimated potential growth of 3,9 %, 3,8 %, 3,6 % and 3,6 % respectively in the period 2005-2008.

(9)  Private consumption deflator instead of HICP.

(10)  According to first estimates, growth was 3,9 % in 2006. The Commission services' interim forecast of 16 February 2007 projects growth of 3,7 % in 2007.

Source:

Stability programme (SP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations

---

| 24.4.2007 | EN | Official Journal of the European Union | C 89/11 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/11

---

COUNCIL OPINION

of 27 March 2007

on the convergence programme of Bulgaria, 2006-2009

(2007/C 89/04)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 9(1) thereof,

Having regard to the recommendation of the Commission,

After consulting the Economic and Financial Committee,

HAS DELIVERED THIS OPINION:

| (1) | On 27 March 2007 the Council examined the convergence programme of Bulgaria, which covers the period 2006 to 2009. |
| --- | --- |

(1)

On 27 March 2007 the Council examined the convergence programme of Bulgaria, which covers the period 2006 to 2009.

| (2) | Bulgaria has achieved a high degree of macroeconomic stability supported by sound public finances. Economic growth has been strong and stable, increasing to around 5

  % in recent years, but the GDP per capita (in PPS) remains low at 32,9 % of the EU-25 average in 2005. Therefore, the scope for catching up remains ample and represents Bulgaria's overriding challenge for the medium and long term. After the introduction of the currency board in 1997, inflation was reduced to single-digit figures by 1999, but the disinflation process has stalled in recent years, and CPI inflation reached 7,3 % in 2006. |
| --- | --- |

(2)

Formula

| (3) | The macroeconomic scenario underlying the programme envisages that real GDP growth will remain at a high level, slightly increasing from 5,9 % in 2006 to 6,1 % on average over the rest of the programme period. Assessed against currently available information, this scenario appears to be based on plausible growth assumptions. However, high external imbalances continue to be a risk factor in the medium term, in particular as the external deficit in 2006 turned out at 16 % of GDP, although the financing of the deficit has been fully ensured through FDI inflows. The programme's projections for inflation appear realistic. |
| --- | --- |

(3)

The macroeconomic scenario underlying the programme envisages that real GDP growth will remain at a high level, slightly increasing from 5,9 % in 2006 to 6,1 % on average over the rest of the programme period. Assessed against currently available information, this scenario appears to be based on plausible growth assumptions. However, high external imbalances continue to be a risk factor in the medium term, in particular as the external deficit in 2006 turned out at 16 % of GDP, although the financing of the deficit has been fully ensured through FDI inflows. The programme's projections for inflation appear realistic.

| (4) | For 2006, the general government surplus is estimated at 3,3 % of GDP in the Commission services' autumn 2006 forecast, against a target of a balanced budget set in the December 2005 pre-accession economic programme (PEP) and a projected surplus of 3,2 % of GDP in the Convergence Programme. The substantially better budgetary outcome is mainly the result of higher than projected revenues due to conservative revenue forecasts in the PEP, higher output growth, and improved revenue collection. Compared to the PEP projections, expenditures are also lower by 1 % of GDP, reflecting mainly lower current expenditures. |
| --- | --- |

(4)

For 2006, the general government surplus is estimated at 3,3 % of GDP in the Commission services' autumn 2006 forecast, against a target of a balanced budget set in the December 2005 pre-accession economic programme (PEP) and a projected surplus of 3,2 % of GDP in the Convergence Programme. The substantially better budgetary outcome is mainly the result of higher than projected revenues due to conservative revenue forecasts in the PEP, higher output growth, and improved revenue collection. Compared to the PEP projections, expenditures are also lower by 1 % of GDP, reflecting mainly lower current expenditures.

| (5) | The medium-term budgetary strategy laid down in the convergence programme aims at maintaining a general government surplus in the range of 0,8-1,5 % of GDP in order to safeguard macroeconomic stability and sustainability of public finances. A strong fiscal loosening is projected in 2007, with the budgetary surplus attaining 0,8 % of GDP, down from 3,2 % of GDP in 2006. In 2008 and 2009, the general government surplus would rise again and stabilise at 1,5 % of GDP. With interest expenditures declining by around

  % of GDP over the programme period, the primary surplus is projected to decline from 4

  % of GDP in 2006 to 2

  % of GDP in 2007 before reverting to around 2

  % of GDP in 2008 and 2009. The fiscal loosening in 2007 would be almost exclusively expenditure-driven. Expenditures are projected to increase by 2

  % of GDP, with only part of this increase, about

  % of GDP, being reversed in 2008. The projected increase in expenditures in 2007 would come mainly from ‘other expenditures ’(+2

  % of GDP) and subsidies (+

  % of GDP). The increase in ‘other expenditures ’reflects Bulgaria's contribution to the EU (1

  % of GDP), an increase in expenditures on EU Structural Fund projects (

  % of GDP), which would be fully covered by higher revenues from EU grants, and an increase in ‘other current expenditure ’(1 % of GDP). Planned reductions in corporate and personal income taxes in 2007 are projected to be almost fully compensated by improved compliance and tax collection rates. Consequently, total revenues would remain almost constant (as a percent of GDP) over the programme period. The programme also indicates that although the budget for 2007 envisages a general government surplus of 0,8 % of GDP, a higher surplus of 2 % of GDP would actually be targeted during budget execution. This would be done on the basis of provisions in the Budget Law, which allow the spending of 10 % of the budgeted current primary expenditures only in case that the external deficit does not widen further. Budgetary targets have been revised considerably upwards compared to the 2005 pre-accession economic programme, reflecting substantial revenue over-performance in 2006 with carry-over effects in subsequent years and a slightly more favourable outlook for output growth. |
| --- | --- |

(5)

Formula

Formula

Formula

Formula

Formula

Formula

Formula

Formula

Formula

Formula

| (6) | The structural balance (i.e. the cyclically-adjusted balance net of one-off and other temporary measures) calculated according to the commonly agreed methodology is planned to decrease from around 3

  % of GDP in 2006 to 1 % in 2007 and then to increase again to around 2 % of GDP in 2008 and 2009. If a higher nominal surplus of 2 % of GDP is achieved in 2007 during the budget execution, as outlined as a target in the programme, the adjustment path would be smoother. The medium-term objective (MTO) for the budgetary position presented in the programme is a balanced budget in structural terms, which it plans to maintain by a large margin throughout the programme period. As the MTO is more demanding than the minimum benchmark (estimated at a deficit of around 1

  % of GDP), achieving it should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. The MTO is more demanding than implied by the debt ratio and average potential output growth in the long term. |
| --- | --- |

(6)

Formula

Formula

| (7) | The budgetary outcome in 2007 could be better than projected in the programme, while in 2008 and 2009 the risks to the budgetary projections appear broadly balanced. In view of the good track record with respect to the achievement of budgetary targets and provisions in the 2007 Budget Law for limiting expenditures during budget execution, a higher surplus for 2007 appears to be realistic even though revenue projections for 2007 could entail certain downside risks as revenue shortfalls from tax reductions may not be fully compensated by improved compliance and collection rates. Although no details are given on the adjustment strategy from 2008 onwards, the budgetary targets until the end of the programme period appear to be broadly plausible, provided that a better than currently projected budgetary outcome in 2007 is realised. |
| --- | --- |

(7)

The budgetary outcome in 2007 could be better than projected in the programme, while in 2008 and 2009 the risks to the budgetary projections appear broadly balanced. In view of the good track record with respect to the achievement of budgetary targets and provisions in the 2007 Budget Law for limiting expenditures during budget execution, a higher surplus for 2007 appears to be realistic even though revenue projections for 2007 could entail certain downside risks as revenue shortfalls from tax reductions may not be fully compensated by improved compliance and collection rates. Although no details are given on the adjustment strategy from 2008 onwards, the budgetary targets until the end of the programme period appear to be broadly plausible, provided that a better than currently projected budgetary outcome in 2007 is realised.

| (8) | In view of this risk assessment, the budgetary stance in the programme implies that the MTO is maintained by a large margin throughout the programme period. In addition, it provides a sufficient safety margin against breaching the 3 % of GDP deficit threshold with normal macroeconomic fluctuations throughout the programme period. The fiscal policy stance implied by the programme is expansionary in 2007 which could turn out to be pro-cyclical in good times. This would not be fully in line with the Stability and Growth Pact. In particular, good times are expected to occur in 2007, when the structural balance is planned to decline by around 2

  % of GDP according to the programme and by 1

  % according to the Commission services' autumn 2006 forecast. |
| --- | --- |

(8)

Formula

Formula

| (9) | Government gross debt is estimated to have reached 25

  % of GDP in 2006, well below the 60 % of GDP Treaty reference value. The programme projects the debt ratio to decline by 4 percentage points over the programme period. |
| --- | --- |

(9)

Formula

| (10) | In the absence of the long-term projections of age-related expenditures, based on the common macroeconomic assumptions as carried out by the EPC/Commission, it is not possible to assess the impact of population ageing in Bulgaria on a comparable and robust basis as it is currently done for the other Member States, for which the projections on this basis are available. However, a significant impact of ageing on expenditures cannot be excluded given the current demographic structure. The initial budgetary position, with a large structural surplus, contributes significantly to stabilise debt before considering the long-term budgetary impact of ageing. Maintaining high primary surpluses over the medium term would contribute to containing risks to the sustainability of public finances. |
| --- | --- |

(10)

In the absence of the long-term projections of age-related expenditures, based on the common macroeconomic assumptions as carried out by the EPC/Commission, it is not possible to assess the impact of population ageing in Bulgaria on a comparable and robust basis as it is currently done for the other Member States, for which the projections on this basis are available. However, a significant impact of ageing on expenditures cannot be excluded given the current demographic structure. The initial budgetary position, with a large structural surplus, contributes significantly to stabilise debt before considering the long-term budgetary impact of ageing. Maintaining high primary surpluses over the medium term would contribute to containing risks to the sustainability of public finances.

| (11) | The budgetary strategy in the programme is partly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008. According to the programme, the fiscal policy stance is expansionary in 2007 which could turn out to be pro-cyclical in good times and risks aggravating the already high external deficit. In addition, while steps to improve the long-term sustainability of the pension system have been taken, very few concrete measures to improve the efficiency of public spending, in particular as regards healthcare expenditures, where there are recurrent problems with the monitoring and control of expenditures and the quality of the services provided, are presented. |
| --- | --- |

(11)

The budgetary strategy in the programme is partly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008. According to the programme, the fiscal policy stance is expansionary in 2007 which could turn out to be pro-cyclical in good times and risks aggravating the already high external deficit. In addition, while steps to improve the long-term sustainability of the pension system have been taken, very few concrete measures to improve the efficiency of public spending, in particular as regards healthcare expenditures, where there are recurrent problems with the monitoring and control of expenditures and the quality of the services provided, are presented.

| (12) | As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme has some gaps in the required and optional data (2). |
| --- | --- |

(12)

As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme has some gaps in the required and optional data (2).

The Council considers that the medium-term budgetary position is sound and the budgetary strategy provides an example of fiscal policies conducted in compliance with the Stability and Growth Pact. However, the planned reduction in the budget surplus during economic good times in 2007 could turn out to imply a pro-cyclical fiscal stance and could add to existing external imbalances. Achieving a higher surplus of 2 % of GDP through the budget execution would significantly reduce that risk.

In view of the above assessment, the Council invites Bulgaria to:

| (i) | achieve a higher budgetary surplus in 2007 than planned in the programme and to maintain a strong position thereafter in order to foster macroeconomic stability and to contain the high external deficit; |
| --- | --- |

(i)

achieve a higher budgetary surplus in 2007 than planned in the programme and to maintain a strong position thereafter in order to foster macroeconomic stability and to contain the high external deficit;

| (ii) | to further strengthen the efficiency of public spending, in particular through a reform of the healthcare system. |
| --- | --- |

(ii)

to further strengthen the efficiency of public spending, in particular through a reform of the healthcare system.

Comparison of key macroeconomic and budgetary projections (3)

| | | 2005 | 2006 | 2007 | 2008 | 2009 |
| --- | --- | --- | --- | --- | --- | --- |
| Real GDP
  (% change) | CP Jan 2007 | 5,5 | 5,9 | 5,9 | 6,2 | 6,1 |
| COM Nov 2006 | 5,5 | 6,0 | 6,0 | 6,2 | n.a. |
| PEP Dec 2005 | 5,7 | 5,7 | 5,9 | 5,9 | n.a. |
| HICP inflation
  (%) | CP Jan 2007 | 5,0 | 7,4 | 4,0 | 3,0 | 3,0 |
| COM Nov 2006 | 5,0 | 7,0 | 3,5 | 3,8 | n.a. |
| PEP Dec 2005 | 4,9 | 6,7 | 3,1 | 2,8 | n.a. |
| Output gap
  (% of potential GDP) | CP Jan 2007 (4) | 0,5 | 0,1 | – 0,4 | – 0,8 | – 1,0 |
| COM Nov 2006 (8) | 0,5 | 0,3 | – 0,1 | – 0,5 | n.a. |
| PEP Dec 2005 | n.a. | n.a. | n.a. | n.a. | n.a. |
| General government balance
  (% of GDP) | CP Jan 2007 | 2,4 | 3,2 | 0,8 | 1,5 | 1,5 |
| COM Nov 2006 | 2,4 | 3,3 | 1,8 | 1,7 | n.a. |
| PEP Dec 2005 | 1,8 | 0,0 | – 0,2 | – 0,7 | n.a. |
| Primary balance
  (% of GDP) | CP Jan 2007 | 3,9 | 4,6 | 2,2 | 2,8 | 2,7 |
| COM Nov 2006 | 3,9 | 4,7 | 2,9 | 2,7 | n.a. |
| PEP Dec 2005 | 3,4 | 1,5 | 1,2 | 0,5 | n.a. |
| Cyclically-adjusted balance
  (% of GDP) | CP Jan 2007 (4) | 2,1 | 3,2 | 1,0 | 1,9 | 2,0 |
| COM Nov 2006 | 2,1 | 3,2 | 1,8 | 1,9 | n.a. |
| PEP Dec 2005 | n.a. | n.a. | n.a. | n.a. | n.a. |
| Structural balance (5)

  (% of GDP) | CP Jan 2007 (6) | 2,1 | 3,2 | 1,0 | 1,9 | 2,0 |
| COM Nov 2006 (7) | 2,1 | 3,2 | 1,8 | 1,9 | n.a. |
| PEP Dec 2005 | n.a. | n.a. | n.a. | n.a. | n.a. |
| Government gross debt
  (% of GDP) | CP Jan 2007 | 29,8 | 25,3 | 22,7 | 22,3 | 21,1 |
| COM Nov 2006 | 29,8 | 25,8 | 21,8 | 17,9 | n.a. |
| PEP Dec 2005 | 31,3 | 26,3 | 23,9 | 22,7 | n.a. |
| Source:


  Convergence programme (CP); Pre-accession economic programme (PEP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations |

2005

2006

2007

2008

2009

Real GDP

(% change)

CP Jan 2007

5,5

5,9

5,9

6,2

6,1

COM Nov 2006

5,5

6,0

6,0

6,2

n.a.

PEP Dec 2005

5,7

5,7

5,9

5,9

n.a.

HICP inflation

(%)

CP Jan 2007

5,0

7,4

4,0

3,0

3,0

COM Nov 2006

5,0

7,0

3,5

3,8

n.a.

PEP Dec 2005

4,9

6,7

3,1

2,8

n.a.

Output gap

(% of potential GDP)

CP Jan 2007 (4)

0,5

0,1

– 0,4

– 0,8

– 1,0

COM Nov 2006 (8)

0,5

0,3

– 0,1

– 0,5

n.a.

PEP Dec 2005

n.a.

n.a.

n.a.

n.a.

n.a.

General government balance

(% of GDP)

CP Jan 2007

2,4

3,2

0,8

1,5

1,5

COM Nov 2006

2,4

3,3

1,8

1,7

n.a.

PEP Dec 2005

1,8

0,0

– 0,2

– 0,7

n.a.

Primary balance

(% of GDP)

CP Jan 2007

3,9

4,6

2,2

2,8

2,7

COM Nov 2006

3,9

4,7

2,9

2,7

n.a.

PEP Dec 2005

3,4

1,5

1,2

0,5

n.a.

Cyclically-adjusted balance

(% of GDP)

CP Jan 2007 (4)

2,1

3,2

1,0

1,9

2,0

COM Nov 2006

2,1

3,2

1,8

1,9

n.a.

PEP Dec 2005

n.a.

n.a.

n.a.

n.a.

n.a.

Structural balance (5)

(% of GDP)

CP Jan 2007 (6)

2,1

3,2

1,0

1,9

2,0

COM Nov 2006 (7)

2,1

3,2

1,8

1,9

n.a.

PEP Dec 2005

n.a.

n.a.

n.a.

n.a.

n.a.

Government gross debt

(% of GDP)

CP Jan 2007

29,8

25,3

22,7

22,3

21,1

COM Nov 2006

29,8

25,8

21,8

17,9

n.a.

PEP Dec 2005

31,3

26,3

23,9

22,7

n.a.

Source:

Convergence programme (CP); Pre-accession economic programme (PEP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations

---

(1)  OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:

http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm

(2)  In particular, the labour market data on hours worked and some information on long-term sustainability are not provided.

(3)  The government accounts of Bulgaria have not yet been officially subject to a complete quality assessment by Eurostat. Eurostat will publish and validate government balance and debt figures shortly after the data notification of 1 April 2007.

(4)  Commission services calculations on the basis of the information in the programme.

(5)  Cyclically-adjusted balance (as in the previous rows) excluding one-off and other temporary measures.

(6)  There are no one-off and other temporary measures in the programme.

(7)  There are no one-off and other temporary measures in the Commission services' autumn 2006 forecast.

(8)  Based on estimated potential growth of 5,8 %, 6,3 %, 6,4 % and 6,7 % respectively in the period 2005-2008.

Source:

Convergence programme (CP); Pre-accession economic programme (PEP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations

---

| 24.4.2007 | EN | Official Journal of the European Union | C 89/15 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/15

---

COUNCIL OPINION

of 27 March 2007

on the updated convergence programme of Latvia, 2006-2009

(2007/C 89/05)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 9(3) thereof,

Having regard to the recommendation of the Commission,

After consulting the Economic and Financial Committee,

HAS DELIVERED THIS OPINION:

| (1) | On 27 March 2007 the Council examined the updated convergence programme of Latvia, which covers the period 2006 to 2009 (2). On 6 March 2007, the Latvian government announced a plan aiming at combating inflation. This includes a revision of the budgetary targets, with a balanced budget in 2007 and 2008 and a surplus from 2009 onwards. However, this Council opinion is based on the convergence programme. |
| --- | --- |

(1)

On 27 March 2007 the Council examined the updated convergence programme of Latvia, which covers the period 2006 to 2009 (2). On 6 March 2007, the Latvian government announced a plan aiming at combating inflation. This includes a revision of the budgetary targets, with a balanced budget in 2007 and 2008 and a surplus from 2009 onwards. However, this Council opinion is based on the convergence programme.

| (2) | The macroeconomic scenario underlying the programme envisages a soft-landing of the economy, with real GDP growth slowing from 11,5 % in 2006 to 8,0 % on average over the rest of the programme period. Assessed against currently available information, this scenario appears to be based on plausible growth assumptions. Nevertheless, there are significant risks of less favourable macroeconomic developments in view of large external imbalances, high inflation and increasing signs of overheating of the Latvian economy. The programme's projections for inflation appear to be slightly optimistic. |
| --- | --- |

(2)

The macroeconomic scenario underlying the programme envisages a soft-landing of the economy, with real GDP growth slowing from 11,5 % in 2006 to 8,0 % on average over the rest of the programme period. Assessed against currently available information, this scenario appears to be based on plausible growth assumptions. Nevertheless, there are significant risks of less favourable macroeconomic developments in view of large external imbalances, high inflation and increasing signs of overheating of the Latvian economy. The programme's projections for inflation appear to be slightly optimistic.

| (3) | For 2006, the Commission services' autumn 2006 forecast estimated the general government deficit at 1,0 % of GDP, against a target of 1,5 % of GDP set in the previous update of the convergence programme. The updated programme presents a deficit estimate of 0,4 % of GDP, which is plausible in view of the higher than expected revenues and despite the impact of budgetary amendments adopted in October 2006, which increased expenditures by an estimated 1,5 % of GDP. |
| --- | --- |

(3)

For 2006, the Commission services' autumn 2006 forecast estimated the general government deficit at 1,0 % of GDP, against a target of 1,5 % of GDP set in the previous update of the convergence programme. The updated programme presents a deficit estimate of 0,4 % of GDP, which is plausible in view of the higher than expected revenues and despite the impact of budgetary amendments adopted in October 2006, which increased expenditures by an estimated 1,5 % of GDP.

| (4) | The main goal of the medium-term budgetary strategy is to gradually improve the fiscal outlook and achieve a balanced budget by 2010. This goal will require a considerable consolidation effort after the deterioration in 2006 and 2007 by almost 1

  percentage point of GDP. The envisaged adjustment in 2008 and 2009 is identical in the headline and in the primary balance, respectively 0,4 and 0,5 percentage points of GDP. Compared to the previous update, the planned budgetary targets are more stringent, but the adjustment remains back-loaded against a more favourable macroeconomic scenario. After the significant loosening of the expenditure-to-GDP ratio in 2007, the programme envisages consolidating the budget during 2008-2009 by increasing the revenue-to-GDP ratio by 0,4 percentage points each year, while keeping broadly constant the expenditure-to-GDP ratio. The revenue-to-GDP ratio is planned to increase mainly due to higher ‘other ’revenues, which represents an increased inflow of EU funds. Accordingly, the expenditure ratio for the gross fixed capital formation component is increasing, broadly offset after 2007 by a decline in ‘other ’expenditures (which in the programme includes part of consumption expenditure) by 

   percentage points in 2008 and in social transfers by

  percentage points in 2009. |
| --- | --- |

(4)

Formula

Formula

Formula

| (5) | The structural balance (i.e. the cyclically-adjusted balance net of one-off and other temporary measures) calculated according to the commonly agreed methodology is planned to deteriorate from a deficit of 1 % of GDP in 2006 to a deficit of 1

  % of GDP in 2007 and to improve to a surplus of

  % by 2009. The medium-term objective (MTO) for the budgetary position presented in the programme is a structural deficit of 1 % of GDP, which the programme aims to achieve around 2008, as in the previous update. As the MTO is more demanding than the minimum benchmark (estimated at a deficit of around 2 % of GDP), achieving it should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. The MTO lies within the range indicated for euro-area and ERM II Member States in the Stability and Growth Pact and the code of conduct and adequately reflects the debt ratio and average potential output growth in the long term. |
| --- | --- |

(5)

Formula

Formula

| (6) | The risks to the budgetary projections in the programme appear broadly balanced for 2007, but the budgetary outcomes could be worse than projected in the programme from 2008, due to risks to the macroeconomic scenario. The budgetary strategy relies on an increase in the revenue-to-GDP ratio and on declines in the ratios to GDP of social transfers and ‘other expenditure ’(which in the programme includes part of consumption expenditure), which could have been better substantiated, taking into account that according to the update a formal medium-term framework for the planning and control of public finances is planned to be introduced from 2008 onwards. |
| --- | --- |

(6)

The risks to the budgetary projections in the programme appear broadly balanced for 2007, but the budgetary outcomes could be worse than projected in the programme from 2008, due to risks to the macroeconomic scenario. The budgetary strategy relies on an increase in the revenue-to-GDP ratio and on declines in the ratios to GDP of social transfers and ‘other expenditure ’(which in the programme includes part of consumption expenditure), which could have been better substantiated, taking into account that according to the update a formal medium-term framework for the planning and control of public finances is planned to be introduced from 2008 onwards.

| (7) | In view of this risk assessment, the budgetary stance in the programme may not be sufficient to ensure that the MTO is achieved by 2008, as envisaged in the programme. However, it seems to provide a sufficient safety margin against breaching the 3 % of GDP deficit threshold with normal macroeconomic fluctuations throughout the programme period. Except for 2007, the pace of the adjustment towards the MTO implied by the programme is broadly in line with the Stability and Growth Pact, which specifies that the adjustment should be higher in good economic times and could be lower in bad economic times. Nevertheless, 2007 is clearly a year of moving away from the MTO in economic good times, which is not in line with the Stability and Growth Pact. A stronger structural adjustment path frontloaded during the programme period would be appropriate to support a stable macroeconomic convergence process and the mitigation of risks of imbalanced economic growth. |
| --- | --- |

(7)

In view of this risk assessment, the budgetary stance in the programme may not be sufficient to ensure that the MTO is achieved by 2008, as envisaged in the programme. However, it seems to provide a sufficient safety margin against breaching the 3 % of GDP deficit threshold with normal macroeconomic fluctuations throughout the programme period. Except for 2007, the pace of the adjustment towards the MTO implied by the programme is broadly in line with the Stability and Growth Pact, which specifies that the adjustment should be higher in good economic times and could be lower in bad economic times. Nevertheless, 2007 is clearly a year of moving away from the MTO in economic good times, which is not in line with the Stability and Growth Pact. A stronger structural adjustment path frontloaded during the programme period would be appropriate to support a stable macroeconomic convergence process and the mitigation of risks of imbalanced economic growth.

| (8) | According to the Stability and Growth Pact, ‘major structural reforms ’with a verifiable impact on the long-term sustainability of the public finances should be taken into account when defining the adjustment path to the MTO. The medium-term budgetary strategy outlined in the programme embodies a temporary deviation from the adjustment path towards the MTO in 2007. The programme notes that the ongoing pension reform will gradually reduce social security contributions in the general government balance and that the contribution to the second-pillar pension scheme will increase from 0,4 % of GDP in 2006 to 1,7 % of GDP by 2009. The deterioration of the structural balance foreseen in the programme, adjusting for the impact of the phased implementation of the pension reform, would be of

  % of GDP in 2007 followed by improvements of 1

  % in 2008 and 1

  % in 2009. While the net costs of the pension reform can be taken into account when assessing the adjustment path towards the MTO, the adjustment in 2007, even taking into account such costs, is not in line with the Pact. On the other hand, the healthcare reform and public investment projects mentioned in the programme do not qualify as structural reforms on which a temporary deviation can be based, as these measures are insufficiently detailed and the significant beneficial impact on the long-term sustainability of the public finances is not demonstrated in the programme. |
| --- | --- |

(8)

Formula

Formula

Formula

| (9) | Government gross debt is estimated to have reached 10,7 % of GDP in 2006, well below the 60 % of GDP Treaty reference value. The programme projects the debt ratio to decline by 1,3 percentage points over the programme period to reach 9,4 % of GDP by 2009. |
| --- | --- |

(9)

Government gross debt is estimated to have reached 10,7 % of GDP in 2006, well below the 60 % of GDP Treaty reference value. The programme projects the debt ratio to decline by 1,3 percentage points over the programme period to reach 9,4 % of GDP by 2009.

| (10) | The long-term budgetary impact of ageing in Latvia is lower than the EU average, with age-related expenditure projected to fall as a share of GDP over the coming decades, influenced by the expenditure-reducing impact of the reform of the pension system. The current level of gross debt is very low in Latvia and improving the structural budgetary position as planned in the convergence programme update would contribute to contain the risks to the long-term sustainability of public finances. Overall, Latvia appears to be at low risk with regard to the sustainability of public finances. |
| --- | --- |

(10)

The long-term budgetary impact of ageing in Latvia is lower than the EU average, with age-related expenditure projected to fall as a share of GDP over the coming decades, influenced by the expenditure-reducing impact of the reform of the pension system. The current level of gross debt is very low in Latvia and improving the structural budgetary position as planned in the convergence programme update would contribute to contain the risks to the long-term sustainability of public finances. Overall, Latvia appears to be at low risk with regard to the sustainability of public finances.

| (11) | The convergence programme contains a qualitative assessment of the overall impact of the October 2006 implementation report of the national reform programme within the medium-term fiscal strategy. In addition, it provides some information on the direct budgetary costs or savings of the main reforms envisaged in the national reform programme and its budgetary projections explicitly take into account the public finance implications of the actions outlined in the national reform programme. The measures in the area of public finances envisaged in the convergence programme seem consistent with those foreseen in the national reform programme. In particular, both programmes envisage significant increase in public investment and the convergence programme further expands on measures to be implemented in order to improve the institutional features of the public finances, including the introduction of the multi-annual budgetary framework. |
| --- | --- |

(11)

The convergence programme contains a qualitative assessment of the overall impact of the October 2006 implementation report of the national reform programme within the medium-term fiscal strategy. In addition, it provides some information on the direct budgetary costs or savings of the main reforms envisaged in the national reform programme and its budgetary projections explicitly take into account the public finance implications of the actions outlined in the national reform programme. The measures in the area of public finances envisaged in the convergence programme seem consistent with those foreseen in the national reform programme. In particular, both programmes envisage significant increase in public investment and the convergence programme further expands on measures to be implemented in order to improve the institutional features of the public finances, including the introduction of the multi-annual budgetary framework.

| (12) | The budgetary strategy in the programme is only partly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008. In particular, the projected fiscal stance does not contribute adequately to promoting greater sustainability of the external account. |
| --- | --- |

(12)

The budgetary strategy in the programme is only partly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008. In particular, the projected fiscal stance does not contribute adequately to promoting greater sustainability of the external account.

| (13) | As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme provides all required and most of the optional data (3). However, some inconsistencies exist with regards to standard Table 2. |
| --- | --- |

(13)

As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme provides all required and most of the optional data (3). However, some inconsistencies exist with regards to standard Table 2.

The Council considers that the worsening of the budgetary position in 2007 is not in line with a prudent fiscal policy aimed at ensuring sustainable convergence, including by reducing the external imbalance and containing inflation. In the subsequent years, the programme envisages progress towards the MTO in a context of strong growth prospects, but the budgetary targets are not ambitious and there are risks to their achievement from 2008 onwards.

In view of the above assessment, the Council invites Latvia to:

| (i) | reduce the risks of macroeconomic instability by implementing vigorously measures to achieve a significantly better budgetary target for 2007 than foreseen in the programme, as part of a broader reform strategy. Building further on this, measures to enhance consolidation beyond the MTO in subsequent years should also be implemented as soon as possible; |
| --- | --- |

(i)

reduce the risks of macroeconomic instability by implementing vigorously measures to achieve a significantly better budgetary target for 2007 than foreseen in the programme, as part of a broader reform strategy. Building further on this, measures to enhance consolidation beyond the MTO in subsequent years should also be implemented as soon as possible;

| (ii) | establish a clearer and more binding medium-term framework for the planning and control of public finances. |
| --- | --- |

(ii)

establish a clearer and more binding medium-term framework for the planning and control of public finances.

The plan announced on 6 March 2007 would, if fully implemented, represent an important step in the right direction.

Comparison of key macroeconomic and budgetary projections

| | 2005 | 2006 | 2007 | 2008 | 2009 |
| --- | --- | --- | --- | --- | --- |
| Real GDP
  (% change) | CP Jan 2007 | 10,2 | 11,5 | 9,0 | 7,5 | 7,5 |
| COM Nov 2006 | 10,2 | 11,0 | 8,9 | 8,0 | n.a. |
| CP Nov 2005 | 8,4 | 7,5 | 7,0 | 7,0 | n.a. |
| HICP inflation
  (%) | CP Jan 2007 | 6,9 | 6,6 | 6,4 | 5,2 | 4,2 |
| COM Nov 2006 | 6,9 | 6,7 | 5,8 | 5,4 | n.a. |
| CP Nov 2005 | 6,9 | 5,6 | 4,3 | 3,5 | n.a. |
| Output gap
  (% of potential GDP) | CP Jan 2007
   (4) | 0,0 | 1,8 | 1,3 | – 0,5 | – 2,0 |
| COM Nov 2006 (8) | – 0,2 | 1,1 | 0,4 | – 1,0 | n.a. |
| CP Nov 2005
   (4) | 0,8 | 0,4 | – 0,5 | – 1,1 | n.a. |
| General government balance (9)

  (% of GDP) | CP Jan 2007 | 0,1 | – 0,4 | – 1,3 | – 0,9 | – 0,4 |
| COM Nov 2006 | 0,1 | – 1,0 | – 1,2 | – 1,2 | n.a. |
| CP Nov 2005 | – 1,5 | – 1,5 | – 1,4 | – 1,3 | n.a. |
| Primary balance (9)

  (% of GDP) | CP Jan 2007 | 0,7 | 0,2 | – 0,8 | – 0,4 | 0,1 |
| COM Nov 2006 | 0,7 | – 0,4 | – 0,7 | – 0,7 | n.a. |
| CP Nov 2005 | – 0,7 | – 0,8 | – 0,6 | – 0,6 | n.a. |
| Cyclically-adjusted balance (9)

  (% of GDP) | CP Jan 2007
   (5) | 0,1 | – 0,9 | – 1,7 | – 0,8 | 0,2 |
| COM Nov 2006 | 0,2 | – 1,3 | – 1,3 | – 0,9 | n.a. |
| CP Nov 2005
   (4) | – 1,7 | – 1,6 | – 1,3 | – 1,0 | n.a. |
| Structural balance (5)
   (9)

  (% of GDP) | CP Jan 2007
   (6) | 0,1 | – 0,9 | – 1,7 | – 0,8 | 0,2 |
| COM Nov 2006 (7) | 0,2 | – 1,3 | – 1,3 | – 0,9 | n.a. |
| CP Nov 2005 | – 1,7 | – 1,6 | – 1,3 | – 1,0 | n.a. |
| Government gross debt
  (% of GDP) | CP Jan 2007 | 12,1 | 10,7 | 10,5 | 10,6 | 9,4 |
| COM Nov 2006 | 12,1 | 11,1 | 10,6 | 10,3 | n.a. |
| CP Nov 2005 | 13,1 | 14,9 | 13,6 | 14,7 | n.a. |
| Convergence programme (CP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations |

2005

2006

2007

2008

2009

Real GDP

(% change)

CP Jan 2007

10,2

11,5

9,0

7,5

7,5

COM Nov 2006

10,2

11,0

8,9

8,0

n.a.

CP Nov 2005

8,4

7,5

7,0

7,0

n.a.

HICP inflation

(%)

CP Jan 2007

6,9

6,6

6,4

5,2

4,2

COM Nov 2006

6,9

6,7

5,8

5,4

n.a.

CP Nov 2005

6,9

5,6

4,3

3,5

n.a.

Output gap

(% of potential GDP)

CP Jan 2007
   (4)

0,0

1,8

1,3

– 0,5

– 2,0

COM Nov 2006 (8)

– 0,2

1,1

0,4

– 1,0

n.a.

CP Nov 2005
   (4)

0,8

0,4

– 0,5

– 1,1

n.a.

General government balance (9)

(% of GDP)

CP Jan 2007

0,1

– 0,4

– 1,3

– 0,9

– 0,4

COM Nov 2006

0,1

– 1,0

– 1,2

– 1,2

n.a.

CP Nov 2005

– 1,5

– 1,5

– 1,4

– 1,3

n.a.

Primary balance (9)

(% of GDP)

CP Jan 2007

0,7

0,2

– 0,8

– 0,4

0,1

COM Nov 2006

0,7

– 0,4

– 0,7

– 0,7

n.a.

CP Nov 2005

– 0,7

– 0,8

– 0,6

– 0,6

n.a.

Cyclically-adjusted balance (9)

(% of GDP)

CP Jan 2007
   (5)

0,1

– 0,9

– 1,7

– 0,8

0,2

COM Nov 2006

0,2

– 1,3

– 1,3

– 0,9

n.a.

CP Nov 2005
   (4)

– 1,7

– 1,6

– 1,3

– 1,0

n.a.

Structural balance (5)
   (9)

(% of GDP)

CP Jan 2007
   (6)

0,1

– 0,9

– 1,7

– 0,8

0,2

COM Nov 2006 (7)

0,2

– 1,3

– 1,3

– 0,9

n.a.

CP Nov 2005

– 1,7

– 1,6

– 1,3

– 1,0

n.a.

Government gross debt

(% of GDP)

CP Jan 2007

12,1

10,7

10,5

10,6

9,4

COM Nov 2006

12,1

11,1

10,6

10,3

n.a.

CP Nov 2005

13,1

14,9

13,6

14,7

n.a.

Convergence programme (CP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations

---

(1)  OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:

http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm

(2)  Following the formation of a new government in November 2006, after a general election in October, the update was submitted six weeks beyond the 1 December deadline set in the code of conduct.

(3)  In particular the data on the subcomponents of the stock-flow adjustment and some elements of the long-term sustainability of public finances table are missing.

(4)  Commission services calculations on the basis of the information in the programme.

(5)  Cyclically-adjusted balance (as in the previous rows) excluding one-off and other temporary measures.

(6)  There are no one-off and other temporary measures in the programme

(7)  There are no one-off and other temporary measures in the Commission services' autumn 2006 forecast.

(8)  Based on estimated potential growth of 9,3 %, 9,6 %, 9,6 % and 9,5 % respectively in the period 2005-2008.

(9)  The net costs of the ongoing pension reform (introduction of a second pillar) are included in the deficit. The costs are estimated at 0,3 % of GDP in 2005, 0,4 % of GDP in 2006, 0,6 % of GDP in 2007, 1,3 % of GDP in 2008 and 1,5 % of GDP in 2009. The year-on-year change in the structural balance foreseen in the programme, adjusting for the impact of the phased implementation of the pension reform, would be a worsening of 0,6 % of GDP in 2007, an improvement of 1,6 % in 2008 and 1,2 % in 2009.

Source:

Convergence programme (CP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations

---

| 24.4.2007 | EN | Official Journal of the European Union | C 89/19 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/19

---

COUNCIL OPINION

of 27 March 2007

on the convergence programme of Romania, 2006-2009

(2007/C 89/06)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 9(1) thereof,

Having regard to the recommendation of the Commission,

After consulting the Economic and Financial Committee,

HAS DELIVERED THIS OPINION:

| (1) | On 27 March 2007 the Council examined the convergence programme of Romania, which covers the period 2006 to 2009. |
| --- | --- |

(1)

On 27 March 2007 the Council examined the convergence programme of Romania, which covers the period 2006 to 2009.

| (2) | Romania enjoyed strong economic growth over the past five years, but its GDP per capita (expressed in PPS) is still low at 34 % of the EU-25 average in 2005. Therefore, the scope for catching up remains ample and represents Romania's overriding challenge for the medium and long term. In 2001-2005 macroeconomic stability improved, as reflected by the sharp and sustained decline in inflation and the consolidation of public finances. The average inflation rate stood at 6,6 % in 2006. |
| --- | --- |

(2)

Romania enjoyed strong economic growth over the past five years, but its GDP per capita (expressed in PPS) is still low at 34 % of the EU-25 average in 2005. Therefore, the scope for catching up remains ample and represents Romania's overriding challenge for the medium and long term. In 2001-2005 macroeconomic stability improved, as reflected by the sharp and sustained decline in inflation and the consolidation of public finances. The average inflation rate stood at 6,6 % in 2006.

| (3) | The macroeconomic scenario underlying the programme envisages that real GDP growth will decelerate progressively from a well-above potential rate of 8 % in 2006 to a still sustained 5,9 % in 2009. Assessed against currently available information, this scenario appears to be based on plausible growth assumptions. The programme's projections for inflation appear to be on the low side since they assume a sustained deceleration of credit and private consumption growth which may not materialise. Unlike the programme, the Commission's services 2006 autumn forecast projects a further widening of the external deficit in 2007 and 2008 on the basis of imports that continue to outpace exports as a result of strong private consumption and investment. |
| --- | --- |

(3)

The macroeconomic scenario underlying the programme envisages that real GDP growth will decelerate progressively from a well-above potential rate of 8 % in 2006 to a still sustained 5,9 % in 2009. Assessed against currently available information, this scenario appears to be based on plausible growth assumptions. The programme's projections for inflation appear to be on the low side since they assume a sustained deceleration of credit and private consumption growth which may not materialise. Unlike the programme, the Commission's services 2006 autumn forecast projects a further widening of the external deficit in 2007 and 2008 on the basis of imports that continue to outpace exports as a result of strong private consumption and investment.

| (4) | For 2006, in the Commission services' autumn 2006 forecast estimated the general government deficit at 1,4 % of GDP against a target of 0,7 % of GDP set in the December 2005 pre-accession economic programme. The convergence programme estimates the deficit at 2,3 % of GDP. The slippage compared to the original target reflects significant additional expenditure, notably current spending partly due to a reallocation of unspent investment expenditures, which more than offset stronger revenue growth than expected. |
| --- | --- |

(4)

For 2006, in the Commission services' autumn 2006 forecast estimated the general government deficit at 1,4 % of GDP against a target of 0,7 % of GDP set in the December 2005 pre-accession economic programme. The convergence programme estimates the deficit at 2,3 % of GDP. The slippage compared to the original target reflects significant additional expenditure, notably current spending partly due to a reallocation of unspent investment expenditures, which more than offset stronger revenue growth than expected.

| (5) | The main goal of the programme is to pursue fiscal consolidation so as to reach the medium-term objective of a structural deficit (in cyclically-adjusted terms net of one-off and other temporary measures) of 0,9 % of GDP in 2011, i.e. beyond the programme period. The programme targets a small reduction of the general government deficit from 2,3 % of GDP in 2006 to 2 % of GDP in 2009, after a rise to 2,7 % of GDP in 2007. The primary deficit is expected to follow a similar path and to stand at 1 % of GDP at the end of the programme period. |
| --- | --- |

(5)

The main goal of the programme is to pursue fiscal consolidation so as to reach the medium-term objective of a structural deficit (in cyclically-adjusted terms net of one-off and other temporary measures) of 0,9 % of GDP in 2011, i.e. beyond the programme period. The programme targets a small reduction of the general government deficit from 2,3 % of GDP in 2006 to 2 % of GDP in 2009, after a rise to 2,7 % of GDP in 2007. The primary deficit is expected to follow a similar path and to stand at 1 % of GDP at the end of the programme period.

| (6) | The adjustment, which is marginal and back-loaded is done through an increase in the revenue-to-GDP ratio that is somewhat higher than the increase in the expenditure-to-GDP ratio (almost 4 percentage points compared to 3

  percentage points). On the revenue side, most of the increase comes from taxes (especially in 2007) and from ‘other revenues ’(presumably associated with EU funds inflows). The rise in the expenditure ratio stems to a large extent from a very significant increase in public investment, which is planned to more than double as a percentage of GDP due to an assumed substantial increase in the absorption of EU funds. Compared with the December 2005 pre-accession economic programme, budgetary targets are far less ambitious although the underlying growth assumptions are similar. |
| --- | --- |

(6)

Formula

| (7) | The structural deficit (i.e. the cyclically-adjusted deficit net of one-off and other temporary measures) calculated according to the commonly agreed methodology is planned to deteriorate further from 3 % of GDP in 2006 to around 3

  % of GDP in 2007 before improving to 2

  % of GDP in 2009. As mentioned above, the medium-term objective (MTO) for the budgetary position presented in the programme is a structural deficit of 0,9 % of GDP, which the programme aims to achieve by 2011, i.e. beyond the programme period. As the MTO is more demanding than the minimum benchmark (estimated at a deficit of 1

  % of GDP), achieving it should fulfil the aim of providing a safety margin against the occurrence of an excessive deficit. The MTO adequately reflects the debt ratio and average potential output growth in the long term. |
| --- | --- |

(7)

Formula

Formula

Formula

| (8) | The risks to the budgetary projections in the programme appear broadly balanced in 2007, but budgetary outcomes could be worse than projected in the programme thereafter. In 2007, both expenditure and revenues might be lower than planned: the former because public investment plans are unlikely to be achieved and the latter because the assumed tax intensity of economic activity appears to be favourable, explained to a certain extent by the recently implemented measures in the area of tax administration reform. From 2008 onwards, the budgetary strategy is insufficiently specified, with a volatile path for several expenditure items and an unsubstantiated tightening in 2009. Expenditure slippage in recent years through frequent budgetary amendments, the uncertainty regarding the total amount of compensation to be paid by general government to citizens for the non-return of properties nationalised during the communist regime and potential cancellations of public enterprises' unpaid liabilities towards general government point to a risk of expenditure overruns, even though the level of planned spending on investment will likely be undershot. In addition, over-budgeted resources allocated to investments might be shifted to consumption as seen in the past, with a negative impact on the quality of public spending. |
| --- | --- |

(8)

The risks to the budgetary projections in the programme appear broadly balanced in 2007, but budgetary outcomes could be worse than projected in the programme thereafter. In 2007, both expenditure and revenues might be lower than planned: the former because public investment plans are unlikely to be achieved and the latter because the assumed tax intensity of economic activity appears to be favourable, explained to a certain extent by the recently implemented measures in the area of tax administration reform. From 2008 onwards, the budgetary strategy is insufficiently specified, with a volatile path for several expenditure items and an unsubstantiated tightening in 2009. Expenditure slippage in recent years through frequent budgetary amendments, the uncertainty regarding the total amount of compensation to be paid by general government to citizens for the non-return of properties nationalised during the communist regime and potential cancellations of public enterprises' unpaid liabilities towards general government point to a risk of expenditure overruns, even though the level of planned spending on investment will likely be undershot. In addition, over-budgeted resources allocated to investments might be shifted to consumption as seen in the past, with a negative impact on the quality of public spending.

| (9) | In view of this risk assessment, the budgetary stance in the programme seems insufficient to ensure that the MTO is achieved within the programme period, as also envisaged in the programme. In addition, it does not seem to provide a sufficient safety margin against breaching the 3 % of GDP deficit threshold with normal macroeconomic fluctuations throughout the programme period. The pace of the adjustment towards the MTO implied by the programme is insufficient and should be strengthened significantly to be in line with the Stability and Growth Pact, which specifies that the adjustment should be higher in good economic times and could be lower in bad economic times. In particular, in a context of good times, the structural improvement is marginal and fully back-loaded, with a deterioration in 2007, while the planned adjustment, notably in 2009 is not supported by measures. |
| --- | --- |

(9)

In view of this risk assessment, the budgetary stance in the programme seems insufficient to ensure that the MTO is achieved within the programme period, as also envisaged in the programme. In addition, it does not seem to provide a sufficient safety margin against breaching the 3 % of GDP deficit threshold with normal macroeconomic fluctuations throughout the programme period. The pace of the adjustment towards the MTO implied by the programme is insufficient and should be strengthened significantly to be in line with the Stability and Growth Pact, which specifies that the adjustment should be higher in good economic times and could be lower in bad economic times. In particular, in a context of good times, the structural improvement is marginal and fully back-loaded, with a deterioration in 2007, while the planned adjustment, notably in 2009 is not supported by measures.

| (10) | Government gross debt is estimated to have reached around 13 % of GDP in 2006, well below the 60 % of GDP Treaty reference value. The programme projects the debt ratio to decline by around 1 percentage point of GDP over the programme period. |
| --- | --- |

(10)

Government gross debt is estimated to have reached around 13 % of GDP in 2006, well below the 60 % of GDP Treaty reference value. The programme projects the debt ratio to decline by around 1 percentage point of GDP over the programme period.

| (11) | In the absence of the long-term projections of age-related expenditures, based on the common macroeconomic assumptions as carried out by the EPC/Commission, it is not possible to assess the impact of population ageing in Romania on a comparable and robust basis as it is currently done for the other Member States, for which the projections on this basis are available. However, a significant impact of ageing on expenditure cannot be excluded given the current demographic structure. The initial budgetary position, with a large structural deficit, is not sufficient to stabilise debt even before considering the long-term budgetary impact of ageing. Improving the structural budgetary position over the medium term would contribute to containing risks to the sustainability of public finances. |
| --- | --- |

(11)

In the absence of the long-term projections of age-related expenditures, based on the common macroeconomic assumptions as carried out by the EPC/Commission, it is not possible to assess the impact of population ageing in Romania on a comparable and robust basis as it is currently done for the other Member States, for which the projections on this basis are available. However, a significant impact of ageing on expenditure cannot be excluded given the current demographic structure. The initial budgetary position, with a large structural deficit, is not sufficient to stabilise debt even before considering the long-term budgetary impact of ageing. Improving the structural budgetary position over the medium term would contribute to containing risks to the sustainability of public finances.

| (12) | The budgetary strategy in the programme is partly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008. In particular, the budgetary adjustment towards the MTO is insufficient and should be strengthened significantly over the programme period. Moreover, the fiscal strategy put forward in the programme, notably the loosening of the fiscal stance until 2007, and the limited consolidation thereafter add to aggregate demand management concerns, including those regarding the need to maintain sustained high growth, to continue to support the disinflation process and to contain the increase in the external deficit, which is estimated to have reached 10,3 % of GDP in 2006. |
| --- | --- |

(12)

The budgetary strategy in the programme is partly consistent with the broad economic policy guidelines included in the integrated guidelines for the period 2005-2008. In particular, the budgetary adjustment towards the MTO is insufficient and should be strengthened significantly over the programme period. Moreover, the fiscal strategy put forward in the programme, notably the loosening of the fiscal stance until 2007, and the limited consolidation thereafter add to aggregate demand management concerns, including those regarding the need to maintain sustained high growth, to continue to support the disinflation process and to contain the increase in the external deficit, which is estimated to have reached 10,3 % of GDP in 2006.

| (13) | As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme has some gaps in the required and optional data (2). |
| --- | --- |

(13)

As regards the data requirements specified in the code of conduct for stability and convergence programmes, the programme has some gaps in the required and optional data (2).

The Council considers that, in a context of strong growth prospects and a widening external deficit, the programme envisages a pro-cyclical loosening in 2007. Progress towards the MTO is insufficient and back-loaded, starting only in 2009, and is targeted to be reached only beyond the programme period. Moreover, there are risks to the achievement of the budgetary targets from 2008 onwards. In view of the above assessment, the Council invites Romania to:

| (i) | exploit the good times to significantly strengthen the pace of adjustment towards the MTO by aiming for more demanding budgetary targets in 2007 and subsequent years. Improving the structural budgetary position over the medium-term would contribute to containing risks to the sustainability of public finances; |
| --- | --- |

(i)

exploit the good times to significantly strengthen the pace of adjustment towards the MTO by aiming for more demanding budgetary targets in 2007 and subsequent years. Improving the structural budgetary position over the medium-term would contribute to containing risks to the sustainability of public finances;

| (ii) | control the envisaged high increase in public spending and review its composition so as to enhance the growth potential, as well as improve the planning and execution of public expenditures within a binding medium-term framework. |
| --- | --- |

(ii)

control the envisaged high increase in public spending and review its composition so as to enhance the growth potential, as well as improve the planning and execution of public expenditures within a binding medium-term framework.

Comparison of key macroeconomic and budgetary projections (3)

| | 2005 | 2006 | 2007 | 2008 | 2009 |
| --- | --- | --- | --- | --- | --- |
| Real GDP
  (% change) | CP Jan 2007 | 4,1 | 8,0 | 6,5 | 6,3 | 5,9 |
| COM Nov 2006 | 4,1 | 7,2 | 5,8 | 5,6 | n.a. |
| PEP Dec 2005 | 5,7 | 6,0 | 6,3 | 6,5 | n.a. |
| HICP inflation
  (%) | CP Jan 2007 | 9,1 | 6,6 | 4,5 | 4,3 | 3,2 |
| COM Nov 2006 | 9,1 | 6,8 | 5,1 | 4,6 | n.a. |
| PEP Dec 2005 | 9,0 | 7,0 | 5,0 | 3,6 | n.a. |
| Output gap
  (% of potential GDP) | CP Jan 2007 (4) | 0,2 | 2,1 | 2,2 | 1,9 | 1,1 |
| COM Nov 2006 (8) | 0,4 | 1,9 | 1,5 | 1,0 | n.a. |
| PEP Dec 2005 | n.a. | n.a. | n.a. | n.a. | n.a. |
| General government balance
  (% of GDP) | CP Jan 2007 | – 1,5 | – 2,3 | – 2,7 | – 2,6 | – 2,0 |
| COM Nov 2006 | – 1,5 | – 1,4 | – 2,6 | – 2,6 | n.a. |
| PEP Dec 2005 | – 0,4 | – 0,7 | – 1,0 | – 1,6 | n.a. |
| Primary balance
  (% of GDP) | CP Jan 2007 | – 0,4 | – 1,2 | – 1,6 | – 1,5 | – 1,0 |
| COM Nov 2006 | – 0,3 | – 0,4 | – 1,7 | – 1,7 | n.a. |
| PEP Dec 2005 | 0,8 | 0,4 | 0,0 | – 0,6 | n.a. |
| Cyclically-adjusted balance
  (% of GDP) | CP Jan 2007 (4) | – 1,5 | – 3,0 | – 3,4 | – 3,2 | – 2,3 |
| COM Nov 2006 | – 1,6 | – 2,0 | – 3,1 | – 2,9 | n.a. |
| PEP Dec 2005 | n.a. | n.a. | n.a. | n.a. | n.a. |
| Structural balance (5)

  (% of GDP) | CP Jan 2007 (6) | – 1,5 | – 3,0 | – 3,4 | – 3,2 | – 2,3 |
| COM Nov 2006 (7) | – 1,6 | – 2,0 | – 3,1 | – 2,9 | n.a. |
| PEP Dec 2005 | n.a. | n.a. | n.a. | n.a. | n.a. |
| Government gross debt
  (% of GDP) | CP Jan 2007 | 15,9 | 12,8 | 13,5 | 12,6 | 11,7 |
| COM Nov 2006 | 15,9 | 13,7 | 13,9 | 14,4 | n.a. |
| PEP Dec 2005 | 17,1 | 15,1 | 14,6 | 14,6 | n.a. |
| Source:

  Convergence programme(CP); Pre-accession economic programme (PEP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations |

2005

2006

2007

2008

2009

Real GDP

(% change)

CP Jan 2007

4,1

8,0

6,5

6,3

5,9

COM Nov 2006

4,1

7,2

5,8

5,6

n.a.

PEP Dec 2005

5,7

6,0

6,3

6,5

n.a.

HICP inflation

(%)

CP Jan 2007

9,1

6,6

4,5

4,3

3,2

COM Nov 2006

9,1

6,8

5,1

4,6

n.a.

PEP Dec 2005

9,0

7,0

5,0

3,6

n.a.

Output gap

(% of potential GDP)

CP Jan 2007 (4)

0,2

2,1

2,2

1,9

1,1

COM Nov 2006 (8)

0,4

1,9

1,5

1,0

n.a.

PEP Dec 2005

n.a.

n.a.

n.a.

n.a.

n.a.

General government balance

(% of GDP)

CP Jan 2007

– 1,5

– 2,3

– 2,7

– 2,6

– 2,0

COM Nov 2006

– 1,5

– 1,4

– 2,6

– 2,6

n.a.

PEP Dec 2005

– 0,4

– 0,7

– 1,0

– 1,6

n.a.

Primary balance

(% of GDP)

CP Jan 2007

– 0,4

– 1,2

– 1,6

– 1,5

– 1,0

COM Nov 2006

– 0,3

– 0,4

– 1,7

– 1,7

n.a.

PEP Dec 2005

0,8

0,4

0,0

– 0,6

n.a.

Cyclically-adjusted balance

(% of GDP)

CP Jan 2007 (4)

– 1,5

– 3,0

– 3,4

– 3,2

– 2,3

COM Nov 2006

– 1,6

– 2,0

– 3,1

– 2,9

n.a.

PEP Dec 2005

n.a.

n.a.

n.a.

n.a.

n.a.

Structural balance (5)

(% of GDP)

CP Jan 2007 (6)

– 1,5

– 3,0

– 3,4

– 3,2

– 2,3

COM Nov 2006 (7)

– 1,6

– 2,0

– 3,1

– 2,9

n.a.

PEP Dec 2005

n.a.

n.a.

n.a.

n.a.

n.a.

Government gross debt

(% of GDP)

CP Jan 2007

15,9

12,8

13,5

12,6

11,7

COM Nov 2006

15,9

13,7

13,9

14,4

n.a.

PEP Dec 2005

17,1

15,1

14,6

14,6

n.a.

Source:

Convergence programme(CP); Pre-accession economic programme (PEP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations

---

(1)  OJ L 209, 2.8.1997, p. 1. Regulation as amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1). The documents referred to in this text can be found at the following website:

http://europa.eu.int/comm/economy_finance/about/activities/sgp/main_en.htm

(2)  In particular the data on the subcomponents of the stock-flow adjustment and the contributions to potential GDP growth by labour, capital and TFP are missing.

(3)  The government accounts of Romania have not yet been officially subject to a complete quality assessment by Eurostat. Eurostat will publish and validate government balance and debt figures shortly after the data notification of 1 April 2007.

(4)  Commission services calculations on the basis of the information in the programme.

(5)  Cyclically-adjusted balance (as in the previous rows) excluding one-off and other temporary measures.

(6)  There are no one-off and other temporary measures in the programme.

(7)  There are no one-off and other temporary measures in the Commission services' autumn 2006 forecast.

(8)  Based on estimated potential growth of 5,6 %, 5,7 %, 6,1 % and 6,2 % respectively in the period 2005-2008.

Source:

Convergence programme(CP); Pre-accession economic programme (PEP); Commission services' autumn 2006 economic forecasts (COM); Commission services' calculations

---

II Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Commission

| 24.4.2007 | EN | Official Journal of the European Union | C 89/23 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/23

---

Publication of an application pursuant to Article 6(2) of Council Regulation (EC) No 510/2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs

(2007/C 89/07)

This publication confers the right to object to the application pursuant to Article 7 of Council Regulation (EC) No 510/2006 (1). Statements of objection must reach the Commission within six months from the date of this publication.

SUMMARY

COUNCIL REGULATION (EC) No 510/2006

‘CARNE DE BÍSARO TRANSMONTANO ’OR ‘CARNE DE PORCO TRANSMONTANO’

No: EC PT/PDO/005/0457/20.04.2005

PDO ( X ) PGI ( )

This summary sets out the main elements of the product specification for information purposes.

1.   Responsible department in the Member State:

| Name: | Instituto de Desenvolvimento Rural e Hidráulica |
| --- | --- |
| Address: | Av. Afonso Costa, n.o3 |
| P-1949-002 Lisboa |

Name:

Instituto de Desenvolvimento Rural e Hidráulica

Address:

Av. Afonso Costa, n.o3

P-1949-002 Lisboa

Tel.:

(351) 21 844 22 00

Fax:

(351) 21 844 22 02

e-mail:

idrha@idrha.min-agricultura.pt

2.   group:

| Name: | ANCSUB — Associação Nacional de Criadores de Suínos de Raça Bísara |
| --- | --- |
| Address: | Edifício da Casa do Povo |
| Largo do Toural |
| P-5320-311 Vinhais |

Name:

ANCSUB — Associação Nacional de Criadores de Suínos de Raça Bísara

Address:

Edifício da Casa do Povo

Largo do Toural

P-5320-311 Vinhais

Tel.:

(351) 273 771 340

Fax:

(351) 273 770 048

e-mail:

ancsub@bisaro.info

Composition:

Producer/processor ( X ) Other ( )

3.   Type of product:

Class 1.1 — Fresh meat (and offal)

4.   Specification:

(summary of requirements under Article 4(2) of Regulation (EC) No 510/2006)

4.1.   Name: ‘Carne de Bísaro Transmontano ’or ‘Carne de Porco Transmontano’

4.2.   Description: Meat obtained from the slaughter of piglets or from the cutting up of the carcasses of pigs of the Bísaro breed, reared in a traditional, semi-extensive farming system and fed with local agricultural produce and by-products. The carcasses of animals slaughtered before they are 45 days old (piglets) weigh up to 12 kg. The meat has little marbling, quite succulent and smooth muscle, white, even, consistent, non-exudative fat and a smooth texture. The carcasses of animals (castrated males or females) slaughtered from the age of eight months weigh upwards of 60 kg and are graded R, O or P. The muscle is bright red and the fat is pink. The meat is not very fatty, quite streaky, very succulent and smooth with a firm texture. When grilled, the meat has a characteristic taste resulting from the production method and type of animal feed.

4.3.   Geographical area: Due to the traditional production method, the knowledge of how to look after and feed the animals, the composition of the soil and the necessary pedoclimatic conditions, the production area (where the pigs are born, reared, fattened, slaughtered and the meat is cut up finely and packed) of ‘carne de porco transmontano ’is confined to the municipalities of Alfândega da Fé, Bragança, Carrazeda de Anciães, Freixo de Espada à Cinta, Macedo de Cavaleiros, Miranda do Douro, Mirandela, Mogadouro, Torre de Moncorvo, Vila Flor, Vimioso and Vinhais in the Bragança district and to the municipalities of Alijó, Boticas, Chaves, Mesão Frio, Mondim de Basto, Montalegre, Murça, Régua, Ribeira de Pena, Sabrosa, Santa Marta de Penaguião, Valpaços, Vila Pouca de Aguiar and Vila Real in the Vila Real district. The food is obtained in the geographical area, except for some complete compound feed, used exclusively for the feeding of breeding sows which as a general rule represents no more than 5 % of their food intake.

4.4.   Proof of origin: The farms, abattoirs, processing, cutting and packing plants must be licensed, authorised by the group through the control body's prior approval and located in the aforementioned designated area. The entire production process, from the farm producing the raw ingredients to the premises selling the product, is subject to a rigorous control system ensuring the product's full traceability. The certification mark applied to every carcass or piece of meat is numbered, ensuring full traceability to the farm where the product originated. It is possible to prove the origin of the product at any point in the production chain by means of the serial number, which must be indicated on the certification mark.

4.5.   Method of production: Livestock management is based on ancestral and traditional production methods practised in the area and passed down from generation to generation. The farms must have enough space either to produce food for the animals or to provide an area for pasture and roaming. Stock-raising moves indoors only in winter. In October and November, the farmers take their animals to chestnut groves to take advantage of the chestnuts that have fallen to the ground. The feed is varied and depends on the annual harvests. It is based on a mixture of cereals (normally wheat, maize, rye, oats) provided throughout the year but supplemented with pumpkin, turnip, potato, beetroot, different fruits, sweet corn, cabbage, dried fodder, forage and chestnuts. After slaughter, the carcasses must remain at 7 °C (+/- 1 °C) for at least 24 hours before they are gradually cooled to 2 °C. The carcasses are not allowed to be frozen until they are sold to the consumer. The pH of the meat is 5,95 until 45 minutes after slaughter and 5,56 after 24 hours. The meat can be presented commercially and independently of the age of slaughter in two different ways:

as marked and identified carcasses or half-carcasses, displaying a tamper-proof and indelible designation of origin mark and certification mark;

as whole or cut pieces, packed in material used especially for contact with the product in a normal or controlled environment or in a vacuum, properly labelled and with a tamper-proof and indelible certification mark.

Slaughter, quartering, cutting and packing may only be carried out in duly licensed installations located in the geographical area of production, since these pigs are bigger and are of a different build to other pigs, entailing the need to make various pieces of slaughterhouse equipment bigger and provide the means of singeing of carcasses, rather than merely scalding them. The special nature of the carcasses means that quartering and fine cutting must be carried out by specialist professionals who are able to make the best commercial use of it and produce cuts showing the characteristic marbling of the fat interspersed within the meat while at the same time indicating little superficial fat. In view of the amounts produced, butchers specialising in such carcasses are only found in the region of origin.

Following the quartering and fine-cutting stages, the meat must be packed immediately in order to avoid it becoming rancid or undergoing any other chemical alteration — in particular as a result of the fatty content — or microbiological changes, if it is not immediately protected and properly chilled, or changes to its pH, which is higher than the norm.

However, in order to guarantee its physical and sensory characteristics, the ‘carne de porco transmontano ’is systematically checked by specialists before packing in packaging for the final consumer, in particular with regard to its freshness and the marbling in the product; any product which does not conform to requirements is withdrawn from circulation.

4.6.   Link: Various zoomorphic sculptures and references made to taxes on pigs and their by-products in different municipal registers in the region prove that pig-breeding has been important in this area for a very long time. The breeding of Bísaro pigs is of vital importance, whether to maintain traditional production systems or to maintain the family business on small farms. The animals, extensively reared, are particularly well-adapted to the area's rural environment, harsh climate and local foodstuffs. The conformation of the carcass, the quantity and dispersal of the fat and the taste and aroma of the meat are directly linked to how the animals are reared and fed, and in particular to their ingestion of chestnuts. In summary: the relationship between the product and the region stems from the indigenous breed, the existing pedoclimatic conditions, the method of livestock management and the local produce fed to the animals, the combination of which gives the meat from these animals its own recognisable organoleptic characteristics.

4.7.   Inspection body:

| Name: | Tradição e Qualidade — Associação Interprofissional para Produtos Agro-Alimentares de Trás-os-Montes |
| --- | --- |
| Address: | Av. 25 de Abril, 273 S/L |
| P-5370-202 Mirandela |

Name:

Tradição e Qualidade — Associação Interprofissional para Produtos Agro-Alimentares de Trás-os-Montes

Address:

Av. 25 de Abril, 273 S/L

P-5370-202 Mirandela

Tel.:

(351) 278 261 410

Fax:

(351) 278 261 410

e-mail:

tradição-qualidade@clix.pt

Tradição e Qualidade has been recognised as complying with the requirements of Standard 45011:2001.

4.8.   Labelling: No matter how the meat is presented or packed, each piece of meat or carcass must display the following wording in addition to the wording that is compulsory under general legislation: ‘Carne de Bísaro Transmontano — Denominação de Origem Protegida ’(Protected Designation of Origin) or ‘Carne de Porco Transmontano — Denominação de Origem Protegida ’(Protected Designation of Origin). When packed, the meat also displays the Community's own logo and the specific logo for products from Vinhais reproduced below. The labelling must also include the certification mark, which must indicate the name of the product and the relevant wording, the inspection body and the serial number.

---

(1)  OJ L 93, 31.3.2006, p. 12.

---

| 24.4.2007 | EN | Official Journal of the European Union | C 89/26 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/26

---

Publication of an amendment application pursuant to Article 6(2) of Council Regulation (EC) No 510/2006 on the protection of geographical indications and designations of origin for agricultural products and foodstuffs

(2007/C 89/08)

This publication confers the right to object to the amendment application pursuant to Article 7 of Council Regulation (EC) No 510/2006 (1). Statements of objections must reach the Commission within six months from the date of this publication.

AMENDMENT APPLICATION

COUNCIL REGULATION (EC) No 510/2006

Amendment application according to Article 9 and Article 17(2)

‘OLIVES NOIRES DE NYONS’

EC No: FR/PDO/117/0374/04.11.2003

PDO ( X ) PGI ( )

Amendment(s) requested

Heading(s) in the specification:

| | Name of product |
| --- | --- |
| | Description of product |
| X | Geographical area |
| | Proof of origin |
| | Method of production |
| | Link |
| | Labelling |
| X | National requirements |

Image

Name of product

Image

Description of product

X

Geographical area

Image

Proof of origin

Image

Method of production

Image

Link

Image

Labelling

X

National requirements

Amendment(s):

Geographical area:

The words ‘The area of production covers part of the departments of Drôme and Vaucluse ’are replaced by ‘The olives must be grown and processed in the area of production comprising the territory of the following communes:

| — | Department of Drôme:






  — | Canton de Nyons: Arpavon, Aubres, Châteauneuf-de-Bordette, Condorcet, Curnier, Eyroles, Mirabel-aux-Baronnies, Montaulieu, Nyons, Le Pègue, Piégon, Les Pilles, Rousset-les-Vignes, Saint-Ferréol-Trente-Pas, Saint-Maurice-sur-Eygues, Saint-Pantaléon-les-Vignes, Venterol, Vinsobres. |
| --- | --- | --- |

—

Department of Drôme:

—

Canton de Nyons: Arpavon, Aubres, Châteauneuf-de-Bordette, Condorcet, Curnier, Eyroles, Mirabel-aux-Baronnies, Montaulieu, Nyons, Le Pègue, Piégon, Les Pilles, Rousset-les-Vignes, Saint-Ferréol-Trente-Pas, Saint-Maurice-sur-Eygues, Saint-Pantaléon-les-Vignes, Venterol, Vinsobres.

| — | Canton de Buis-les-Baronnies: Beauvoisin, Benivay-Ollon, Buis-les-Baronnies, Eygaliers, Mérindol-les-Oliviers, Mollans-sur-Ouvèze, La Penne-sur-l'Ouvèze, Pierrelongue, Plaisians, Propiac, La Roche-sur-le-Buis, Vercoiran. |
| --- | --- |

—

Canton de Buis-les-Baronnies: Beauvoisin, Benivay-Ollon, Buis-les-Baronnies, Eygaliers, Mérindol-les-Oliviers, Mollans-sur-Ouvèze, La Penne-sur-l'Ouvèze, Pierrelongue, Plaisians, Propiac, La Roche-sur-le-Buis, Vercoiran.

| — | Canton de Remuzat: Montréal-les-Sources, Saint-May, Sahune, Villeperdrix |
| --- | --- |

—

Canton de Remuzat: Montréal-les-Sources, Saint-May, Sahune, Villeperdrix

| — | Canton de Saint-Paul-Trois-Châteaux: Tulette |
| --- | --- |

—

Canton de Saint-Paul-Trois-Châteaux: Tulette

| — | Department of Vaucluse:






  — | Canton de Malaucène: Brantes, Entrechaux, Malaucène (section AI) |
| --- | --- | --- |

—

Department of Vaucluse:

—

Canton de Malaucène: Brantes, Entrechaux, Malaucène (section AI)

| — | Canton de Vaison-la-Romaine: Buisson, Cairanne, Crestet, Faucon, Puymeras, Rasteau, Roaix, Séguret, Saint-Marcellin-lès-Vaison, Saint-Romain-en-Viennois, Saint-Roman-de-Malegarde, Vaison-la-Romaine, Villedieu. |
| --- | --- |

—

Canton de Vaison-la-Romaine: Buisson, Cairanne, Crestet, Faucon, Puymeras, Rasteau, Roaix, Séguret, Saint-Marcellin-lès-Vaison, Saint-Romain-en-Viennois, Saint-Roman-de-Malegarde, Vaison-la-Romaine, Villedieu.

| — | Canton de Valréas: Valréas, Visan |
| --- | --- |

—

Canton de Valréas: Valréas, Visan

The purpose of the amendment is to withdraw 6 communes from the department of Drôme (the communes of Bouchet, Montbrison-sur-Lez, Montbrun-les-bains, Reilhanette, Rochebrune and Sainte-Jalle) and 2 communes from the department of Vaucluse (Saint-Léger-du-Ventoux et Savoillan) from the geographical area defined for the designation. The reason for this proposal is that the land in these communes is not regularly used for agricultural purposes and geological, pedological and climatic factors make it unsuitable for cultivation of the type of olive concerned.

National requirement:

To replace the expression “Décret du 10 janvier 1994”by “Décret relatif à l'appellation d'origine contrôlée Olives Noires de Nyons”’.

SUMMARY

COUNCIL REGULATION (EC) No 510/2006

‘OLIVES NOIRES DE NYONS’

EC No: FR/PDO/117/0374/04.11.2003

PDO ( X ) PGI ( )

This summary sets out the main elements of the product specification for information purposes.

1.   Responsible department in the Member State:

| Name: | Institut National des Appellations d'Origine |
| --- | --- |
| Address: | 51, rue d'Anjou |
| F-75008 Paris |

Name:

Institut National des Appellations d'Origine

Address:

51, rue d'Anjou

F-75008 Paris

Tel.:

(33) 1 53 89 80 00

Fax:

(33) 01 42 25 57 97

e-mail:

info@inao.gouv.fr

2.   Group:

| Name: | Syndicat Interprofessionnel de l'Olive de Nyons et des Baronnies |
| --- | --- |
| Address: | B.P. no 9 |
| F-26110 Nyons |

Name:

Syndicat Interprofessionnel de l'Olive de Nyons et des Baronnies

Address:

B.P. no 9

F-26110 Nyons

Tel.:

(33) 04 75 26 95 00

Fax:

(33) 04 75 26 23 16

e-mail:

syndicat.tanche@wanadoo.fr

Composition:

Producers/processors ( X ) Other ( )

3.   Type of product:

Class 1.6 — Fruit

4.   Specification

(summary of requirements under Article 4(2) of Regulation (EC) No 510/2006)

4.1   Name: ‘Olives Noires de Nyons’

4.2   Description: The olives, measuring at least 14 mm, are a typical shade of brown and finely wrinkled.

5 % of the olives may measure a minimum of 13 mm.

4.3   Geographical area: The olives are grown and processed in the following communes of the departments of Drôme and Vaucluse.

Department of Drôme:

| — | Canton de Nyons: Arpavon, Aubres, Châteauneuf-de-Bordette, Condorcet, Curnier, Eyroles, Mirabel-aux-Baronnies, Montaulieu, Nyons, Le Pègue, Piégon, Les Pilles, Rousset-les-Vignes, Saint-Ferréol-Trente-Pas, Saint-Maurice-sur-Eygues, Saint-Pantaléon-les-Vignes, Venterol, Vinsobres. |
| --- | --- |

—

Canton de Nyons: Arpavon, Aubres, Châteauneuf-de-Bordette, Condorcet, Curnier, Eyroles, Mirabel-aux-Baronnies, Montaulieu, Nyons, Le Pègue, Piégon, Les Pilles, Rousset-les-Vignes, Saint-Ferréol-Trente-Pas, Saint-Maurice-sur-Eygues, Saint-Pantaléon-les-Vignes, Venterol, Vinsobres.

| — | Canton de Buis-les-Baronnies: Beauvoisin, Benivay-Ollon, Buis-les-Baronnies, Eygaliers, Mérindol-les-Oliviers, Mollans-sur-Ouvèze, La Penne-sur-l'Ouvèze, Pierrelongue, Plaisians, Propiac, La Roche-sur-le-Buis, Vercoiran. |
| --- | --- |

—

Canton de Buis-les-Baronnies: Beauvoisin, Benivay-Ollon, Buis-les-Baronnies, Eygaliers, Mérindol-les-Oliviers, Mollans-sur-Ouvèze, La Penne-sur-l'Ouvèze, Pierrelongue, Plaisians, Propiac, La Roche-sur-le-Buis, Vercoiran.

| — | Canton de Remuzat: Montréal-les-Sources, Saint-May, Sahune, Villeperdrix |
| --- | --- |

—

Canton de Remuzat: Montréal-les-Sources, Saint-May, Sahune, Villeperdrix

| — | Canton de Saint-Paul-Trois-Châteaux: Tulette |
| --- | --- |

—

Canton de Saint-Paul-Trois-Châteaux: Tulette

Department of Vaucluse:

| — | Canton de Malaucène: Brantes, Entrechaux, Malaucène (section AI) |
| --- | --- |

—

Canton de Malaucène: Brantes, Entrechaux, Malaucène (section AI)

| — | Canton de Vaison-la-Romaine: Buisson, Cairanne, Crestet, Faucon, Puymeras, Rasteau, Roaix, Séguret, Saint-Marcellin-lès-Vaison, Saint-Romain-en-Viennois, Saint-Roman-de-Malegarde, Vaison-la-Romaine, Villedieu. |
| --- | --- |

—

Canton de Vaison-la-Romaine: Buisson, Cairanne, Crestet, Faucon, Puymeras, Rasteau, Roaix, Séguret, Saint-Marcellin-lès-Vaison, Saint-Romain-en-Viennois, Saint-Roman-de-Malegarde, Vaison-la-Romaine, Villedieu.

| — | Canton de Valréas: Valréas, Visan |
| --- | --- |

—

Canton de Valréas: Valréas, Visan

4.4   Proof of origin: Olives may not be marketed under the registered designation of origin ‘Olives Noires de Nyons ’unless an approval certificate has been issued by the Institut national des appellations d'origine in accordance with the requirements of national legislation regarding the approval of olive products which have a registered designation of origin.

Every part of the production process of the raw material and the preparation of the olives must take place within the geographical area defined in point 4.3.

For the production of the raw material, the procedure requires:

the land parcel to be identified among the list of land parcels that are suitable for the production of ‘Olives Noires de Nyons’, that comply with the criteria for planting olive trees and the production requirements,

a harvest declaration to be made annually by the olive grower, declaring the area under production, the quantity of olives produced in compliance with the specified yield and the destination of the olives (oil-mill, processing place).

In terms of processing, the procedure requires:

an annual manufacturing declaration made by the operator declaring the total quantity of product processed,

a request for an approval certificate which allows the storage area of the products and all product containers to be identified.

The procedure is completed by a scientific analysis and taste test, carried out on each batch of olives, to ensure that the products are typical and of high quality.

In addition, each operator, once an approval certificate has been obtained, is obliged to make a stock declaration.

4.5   Method of production: The olives are of the ‘Tanche ’variety and grown on parcels suitable for olive tree cultivation. They are harvested from the tree in November and December and then sorted. The smallest olives are used to produce oil. The bitterness is removed using traditional methods in processing facilities located in the geographical region.

4.6   Link:

| — | Olives have been grown in this region for thousands of years and until the beginning of the 20th century they were a very important crop. Production then declined — mainly due to competition from seed oils — and became a supplementary activity. To stop it disappearing altogether, after the severe frosts of winter 1956, producers took steps to preserve the heritage it embodied. A ruling from the Court of Valence in 1968 recognised l'Olive Noire de Nyons as a designation of origin. |
| --- | --- |

—

Olives have been grown in this region for thousands of years and until the beginning of the 20th century they were a very important crop. Production then declined — mainly due to competition from seed oils — and became a supplementary activity. To stop it disappearing altogether, after the severe frosts of winter 1956, producers took steps to preserve the heritage it embodied. A ruling from the Court of Valence in 1968 recognised l'Olive Noire de Nyons as a designation of origin.

| — | The ‘tanche ’is a variety typical of the region, particularly well adapted to its mixed climate. The expertise and perseverance of producers has enabled this traditional product to be maintained. |
| --- | --- |

—

The ‘tanche ’is a variety typical of the region, particularly well adapted to its mixed climate. The expertise and perseverance of producers has enabled this traditional product to be maintained.

4.7   Inspection body:

| Name: | Institut National des Appellations d'Origine |
| --- | --- |
| Address: | 51, rue d'Anjou |
| F-75008 Paris |

Name:

Institut National des Appellations d'Origine

Address:

51, rue d'Anjou

F-75008 Paris

Tel.:

(33) 01 53 89 80 00

Fax:

(33) 01 42 25 57 97

e-mail:

info@inao.gouv.fr

| Nom: | D.G.C.C.R.F. |
| --- | --- |
| Adresse: | 59, Bd V. Auriol |
| F-75703 Paris Cedex 13 |

Nom:

D.G.C.C.R.F.

Adresse:

59, Bd V. Auriol

F-75703 Paris Cedex 13

Tél.:

(33) 01 44 97 29 60

Fax:

(33) 01 44 97 30 37

Courriel:

C3@dgccrf.finances.gouv.fr

4.8   Labelling: In addition to the compulsory information provided for by legislation on labelling and the presentation of foodstuffs, registered designation of origin ‘Olives Noires de Nyons ’labels must include the following

the name ‘Olives Noires de Nyons’;

the words ‘Appellation d'origine contrôlée ’or the letters ‘AOC’. If the name of a holding or a brand appears on the label independently of the address, the designation name is repeated between the words: ‘appellation ’and ‘contrôlée’.

These details must all be in the same visual field and on the same label.

They must be in visible, indelible, sufficiently large print that stands out clearly from the rest of the information and illustrations on the label.

---

(1)  OJ L 93, 31.3.2006, p. 12.

---

| 24.4.2007 | EN | Official Journal of the European Union | C 89/30 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/30

---

Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty

Cases where the Commission raises no objections

(2007/C 89/09)

| Date of adoption of the decision | 22.3.2007 |
| --- | --- |
| Reference number of the aid | N 379/05 and N 211/06 |
| Member State | Spain |
| Region | All (N 379/05) and Andalucía (N 211/06) |
| Title (and/or name of the beneficiary) | Urgent measures to compensate damage caused to the farm sector by drought and other adverse weather conditions |
| Legal basis | ‘Real Decreto Ley 10/2005, de 20 de junio, por el que se adoptan medidas urgentes para paliar los daños producidos en el sector agrario por la sequía y otras adversidades climáticas’, y ‘Orden de 9 de septiembre de 2005, de la Consejería de Agricultura y Pesca por la que se establecen normas para la aplicación de las medidas para paliar los daños producidos en el sector agrario por la sequía, en el desarrollo de las normas que citan’ |
| Type of measure | Aid scheme |
| Objective | To compensate for production losses due to the drought in 2005 |
| Form of aid | Tax relief and reductions of social security contributions, preferential credit lines, exemption from water charge for 2005 |
| Budget | Aid N 379/05: EUR 750 million (EUR 68,8 million grant-equivalent). Aid N 211/06: EUR 15 million |
| Intensity | Maximum 100 % of losses incurred |
| Duration (period) | Linked to the loan periods |
| Economic sectors | Agriculture |
| Name and address of the granting authority | Ministerio de Agricultura, Pesca y Alimentación |
| Paseo Infanta Isabel 1 |
| E-28014 Madrid |

Date of adoption of the decision

22.3.2007

Reference number of the aid

N 379/05 and N 211/06

Member State

Spain

Region

All (N 379/05) and Andalucía (N 211/06)

Title (and/or name of the beneficiary)

Urgent measures to compensate damage caused to the farm sector by drought and other adverse weather conditions

Legal basis

‘Real Decreto Ley 10/2005, de 20 de junio, por el que se adoptan medidas urgentes para paliar los daños producidos en el sector agrario por la sequía y otras adversidades climáticas’, y ‘Orden de 9 de septiembre de 2005, de la Consejería de Agricultura y Pesca por la que se establecen normas para la aplicación de las medidas para paliar los daños producidos en el sector agrario por la sequía, en el desarrollo de las normas que citan’

Type of measure

Aid scheme

Objective

To compensate for production losses due to the drought in 2005

Form of aid

Tax relief and reductions of social security contributions, preferential credit lines, exemption from water charge for 2005

Budget

Aid N 379/05: EUR 750 million (EUR 68,8 million grant-equivalent). Aid N 211/06: EUR 15 million

Intensity

Maximum 100 % of losses incurred

Duration (period)

Linked to the loan periods

Economic sectors

Agriculture

Name and address of the granting authority

Ministerio de Agricultura, Pesca y Alimentación

Paseo Infanta Isabel 1

E-28014 Madrid

| Consejería de Agricultura y Pesca |
| --- |
| Junta de Andalucía |
| C/ Tabladilla, s/n |
| E-41071 Sevilla |

Consejería de Agricultura y Pesca

Junta de Andalucía

C/ Tabladilla, s/n

E-41071 Sevilla

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 22.3.2007 |
| --- | --- |
| Reference number of the aid | N 71/06 |
| Member State | Italy |
| Region | Emilia-Romagna |
| Title (and/or name of the beneficiary) | Piano operativo regionale per l'attuazione di interventi finalizzati alla prevenzione ed al sostegno del settore ovino colpito da encefalopatie spongiformi trasmissibili — TSE (scrapie ovina). |
| Legal basis | Legge 27 dicembre 2002, n. 289 (Disposizioni per la formazione del bilancio annuale e pluriannuale dello Stato — Legge finanziaria 2003), art. 68, comma 4.
  Deliberazione n. 1786 della Giunta regionale del 7 novembre 2005 |
| Type of measure | Aid scheme |
| Objective | Investments in agricultural holdings; animal diseases |
| Form of aid | Grants |
| Budget | EUR 580 036,87 |
| Intensity | Variable amounts or a rate from 40 % to 60 % |
| Duration | Until the end of 2011 |
| Economic sectors | Agriculture |
| Name and address of the granting authority | Regione Emilia-Romagna |
| Direzione generale Agricoltura |
| Servizio Produzioni animali |

Date of adoption of the decision

22.3.2007

Reference number of the aid

N 71/06

Member State

Italy

Region

Emilia-Romagna

Title (and/or name of the beneficiary)

Piano operativo regionale per l'attuazione di interventi finalizzati alla prevenzione ed al sostegno del settore ovino colpito da encefalopatie spongiformi trasmissibili — TSE (scrapie ovina).

Legal basis

Legge 27 dicembre 2002, n. 289 (Disposizioni per la formazione del bilancio annuale e pluriannuale dello Stato — Legge finanziaria 2003), art. 68, comma 4.

Deliberazione n. 1786 della Giunta regionale del 7 novembre 2005

Type of measure

Aid scheme

Objective

Investments in agricultural holdings; animal diseases

Form of aid

Grants

Budget

EUR 580 036,87

Intensity

Variable amounts or a rate from 40 % to 60 %

Duration

Until the end of 2011

Economic sectors

Agriculture

Name and address of the granting authority

Regione Emilia-Romagna

Direzione generale Agricoltura

Servizio Produzioni animali

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 5.3.2007 |
| --- | --- |
| Reference number of the aid | N 161/06 |
| Member State | Latvia |
| Region | — |
| Title (and/or name of the beneficiary) | ‘Atbalsts kartupeļu gaišās gredzenpuves ierobežošanai un apakarošanai’ |
| Legal basis | — | Ministru kabineta 2006. gada 3. janvāra noteikumi Nr. 21 ‘Noteikumi par valsts atbalstu lauksaimniecībai 2006. gadā un tā piešķiršanas kārtība’(Publicēts: Latvijas Vēstnesis Nr. 14; 24.01.2005.) |

Date of adoption of the decision

5.3.2007

Reference number of the aid

N 161/06

Member State

Latvia

Region

—

Title (and/or name of the beneficiary)

‘Atbalsts kartupeļu gaišās gredzenpuves ierobežošanai un apakarošanai’

Legal basis

—

Ministru kabineta 2006. gada 3. janvāra noteikumi Nr. 21 ‘Noteikumi par valsts atbalstu lauksaimniecībai 2006. gadā un tā piešķiršanas kārtība’(Publicēts: Latvijas Vēstnesis Nr. 14; 24.01.2005.)

| — | Lauksaimniecības un lauku attīstības likums (24.04.2004.) (Publicēts: Latvijas Vēstnesis Nr. 64; 23.04.2004.) |
| --- | --- |

—

Lauksaimniecības un lauku attīstības likums (24.04.2004.) (Publicēts: Latvijas Vēstnesis Nr. 64; 23.04.2004.)

| — | Ministru kabineta 2005. gada 26. jūlija noteikumi Nr. 569 ‘Kartupeļu gaišās gredzenpuves apakarošanas un izplatības ierobežošanas kārtība’ |
| --- | --- |

—

Ministru kabineta 2005. gada 26. jūlija noteikumi Nr. 569 ‘Kartupeļu gaišās gredzenpuves apakarošanas un izplatības ierobežošanas kārtība’

| — | Ministru kabineta 2003. gada 12. augusta noteikumi Nr. 446 ‘Kartupeļu sēklaudzēšanas un sēklas kartupeļu tirdzniecības noteikumi’ |
| --- | --- |

—

Ministru kabineta 2003. gada 12. augusta noteikumi Nr. 446 ‘Kartupeļu sēklaudzēšanas un sēklas kartupeļu tirdzniecības noteikumi’

Type of measure

Aid scheme

Objective

To combat and to eradicate the potato ring rot

Form of aid

Aid for combating plant diseases

Budget

Overall budget: LVL 2 529 000

Intensity

50 %-100 %

Duration

till the end of 2008

Economic sectors

Agricultural sector

Name and address of the granting authority

| Lauku atbalsta dienests |
| --- |
| Republikas laukums 2 |
| LV-1981, Rīga |

Lauku atbalsta dienests

Republikas laukums 2

LV-1981, Rīga

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 14.3.2007 |
| --- | --- |
| Reference number of the aid | N 164/06 |
| Member State | Spain |
| Region | — |
| Title (and/or name of the beneficiary) | Ayudas a las organizaciones interprofesionales del sector alimentario |
| Legal basis | Real Decreto 1225/2005, de 13 de octubre, por el que se establecen las bases reguladoras par la concesión de las subvenciones a las organizaciones interprofesionales agroalimentarias.
  Proyecto de Orden de 2007 por la que hace pública, para el ejercicio 2007, la convocatoria de ayudas destinadas a las organizaciones interprofesionales agroalimentarias. |
| Type of measure | Aid scheme |
| Objective | Development of technical assistance activities and promotion by interbranch organisations. |
| Form of aid | Direct grant |
| Budget | EUR 2 500 000 in 2007 |
| Intensity | Variable |
| Duration | 2007-2013 |
| Economic sectors | Agriculture |
| Name and address of the granting authority | Secretario General de Agricultura y Alimentación |
| Ministerio de Agricultura, Pesca y Alimentación |
| Paseo Infanta Isabel, 1 |
| E-28071 Madrid |

Date of adoption of the decision

14.3.2007

Reference number of the aid

N 164/06

Member State

Spain

Region

—

Title (and/or name of the beneficiary)

Ayudas a las organizaciones interprofesionales del sector alimentario

Legal basis

Real Decreto 1225/2005, de 13 de octubre, por el que se establecen las bases reguladoras par la concesión de las subvenciones a las organizaciones interprofesionales agroalimentarias.

Proyecto de Orden de 2007 por la que hace pública, para el ejercicio 2007, la convocatoria de ayudas destinadas a las organizaciones interprofesionales agroalimentarias.

Type of measure

Aid scheme

Objective

Development of technical assistance activities and promotion by interbranch organisations.

Form of aid

Direct grant

Budget

EUR 2 500 000 in 2007

Intensity

Variable

Duration

2007-2013

Economic sectors

Agriculture

Name and address of the granting authority

Secretario General de Agricultura y Alimentación

Ministerio de Agricultura, Pesca y Alimentación

Paseo Infanta Isabel, 1

E-28071 Madrid

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 22.3.2007 |
| --- | --- |
| Reference number of the aid | N 260/06 |
| Member State | Spain |
| Region | Cantabria |
| Title (and/or name of company receiving aid) | Compensatory aid for damaged caused by drought in the farming sector in Cantabria in 2005 |
| Legal basis | Proyecto de Orden de la Consejería de Ganadería, Agricultura y Pesca por la que se establecen las base reguladoras y la convocatoria para 2006, de las ayudas por pérdidas en la agricultura ocasionadas por la sequía en Cantabria en 2005 |
| Type of measure | Aid scheme |
| Objective | Aid to compensate farmers for losses caused by adverse weather conditions |
| Form of aid | Direct grant |
| Budget | EUR 9 507 872 |
| Intensity | Variable |
| Duration | 1 year |
| Economic sectors | Agriculture |
| Name and address of the granting authority | Consejería de Ganadería, Agricultura y Pesca del Gobierno de Cantabria |
| C/ Gutiérrez Solana, s/n. |
| E-39011 Santander (Cantabria) |

Date of adoption of the decision

22.3.2007

Reference number of the aid

N 260/06

Member State

Spain

Region

Cantabria

Title (and/or name of company receiving aid)

Compensatory aid for damaged caused by drought in the farming sector in Cantabria in 2005

Legal basis

Proyecto de Orden de la Consejería de Ganadería, Agricultura y Pesca por la que se establecen las base reguladoras y la convocatoria para 2006, de las ayudas por pérdidas en la agricultura ocasionadas por la sequía en Cantabria en 2005

Type of measure

Aid scheme

Objective

Aid to compensate farmers for losses caused by adverse weather conditions

Form of aid

Direct grant

Budget

EUR 9 507 872

Intensity

Variable

Duration

1 year

Economic sectors

Agriculture

Name and address of the granting authority

Consejería de Ganadería, Agricultura y Pesca del Gobierno de Cantabria

C/ Gutiérrez Solana, s/n.

E-39011 Santander (Cantabria)

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 5.3.2007 |
| --- | --- |
| Reference number of the aid | N 313/06 |
| Member State | Czech Republic |
| Region | Královéhradecký Region |
| Title (and/or name of the beneficiary) | Závazná pravidla Královéhradeckého kraje pro poskytování finančních příspěvků na hospodaření v lesích a způsobu kontroly jejich využití |
| Legal basis | Zákon č. 289/1995 Sb., o lesích a o změně a doplnění některých zákonů § 46, odst. 1–5 a § 47 odst. 5
  Závazná pravidla Královehradeckého kraje pro poskytování finančních příspěvků na hospodaření v lesích a způsobu kontroly jejich využití |
| Type of measure | Aid scheme |
| Objective | Aid in the forestry sector |
| Form of aid | Direct grant |
| Budget | Total: CZK 155 000 000 (approximately EUR 5 721 390) |
| Intensity | Up to 100 % |
| Duration | 1.1.2007-31.12.2013 |
| Economic sectors | Agriculture (Forestry) |
| Name and address of the granting authority | Královéhradecký kraj |
| Česká republika |

Date of adoption of the decision

5.3.2007

Reference number of the aid

N 313/06

Member State

Czech Republic

Region

Královéhradecký Region

Title (and/or name of the beneficiary)

Závazná pravidla Královéhradeckého kraje pro poskytování finančních příspěvků na hospodaření v lesích a způsobu kontroly jejich využití

Legal basis

Zákon č. 289/1995 Sb., o lesích a o změně a doplnění některých zákonů § 46, odst. 1–5 a § 47 odst. 5

Závazná pravidla Královehradeckého kraje pro poskytování finančních příspěvků na hospodaření v lesích a způsobu kontroly jejich využití

Type of measure

Aid scheme

Objective

Aid in the forestry sector

Form of aid

Direct grant

Budget

Total: CZK 155 000 000 (approximately EUR 5 721 390)

Intensity

Up to 100 %

Duration

1.1.2007-31.12.2013

Economic sectors

Agriculture (Forestry)

Name and address of the granting authority

Královéhradecký kraj

Česká republika

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 14.3.2007 |
| --- | --- |
| Reference number of the aid | N 436/06 |
| Member State | Lithuania |
| Region | — |
| Title (and/or name of the beneficiary) | Pagalba biodyzelino gamybos plėtojimui |
| Legal basis | Lietuvos Respublikos biokuro ir bioalyvų įstatymas (Žin., 2000, Nr. 64-1940; 2004, Nr. 28-870)
  Biokuro gamybos ir naudojimo skatinimo 2004-2010 metais programa, patvirtinta Lietuvos Respublikos Vyriausybės 2004 m. rugpjūčio 26 d. nutarimu Nr. 1056 (Žin., 2004 Nr. 133-4786) |
| Type of measure | Aid scheme |
| Objective | To promote the use of environmentally friendly fuels |
| Form of aid | Direct grant |
| Budget | Overall budget: LTL 118 290 000 |
| Intensity | up to 100 % |
| Duration | six years after Commission approval |
| Economic sectors | Agricultural sector |
| Name and address of the granting authority | Lietuvos Respublikos žemės ūkio ministerija, |
| Gedimino pr. 19, |
| LT-01103 Vilnius |

Date of adoption of the decision

14.3.2007

Reference number of the aid

N 436/06

Member State

Lithuania

Region

—

Title (and/or name of the beneficiary)

Pagalba biodyzelino gamybos plėtojimui

Legal basis

Lietuvos Respublikos biokuro ir bioalyvų įstatymas (Žin., 2000, Nr. 64-1940; 2004, Nr. 28-870)

Biokuro gamybos ir naudojimo skatinimo 2004-2010 metais programa, patvirtinta Lietuvos Respublikos Vyriausybės 2004 m. rugpjūčio 26 d. nutarimu Nr. 1056 (Žin., 2004 Nr. 133-4786)

Type of measure

Aid scheme

Objective

To promote the use of environmentally friendly fuels

Form of aid

Direct grant

Budget

Overall budget: LTL 118 290 000

Intensity

up to 100 %

Duration

six years after Commission approval

Economic sectors

Agricultural sector

Name and address of the granting authority

Lietuvos Respublikos žemės ūkio ministerija,

Gedimino pr. 19,

LT-01103 Vilnius

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 22.3.2007 |
| --- | --- |
| Reference number of the aid | N 36/07 |
| Member State | Spain |
| Region | — |
| Title (and/or name of the beneficiary) | Ayudas para la renovación del parque nacional de tractores |
| Legal basis | Proyecto de Real Decreto |
| Type of measure | Aid scheme |
| Objective | Improve technical farming resources |
| Form of aid | Direct grant |
| Budget | EUR 8 000 000 per year |
| Intensity | Variable |
| Duration | Until the end of 2009 |
| Economic sectors | Agriculture |
| Name and address of the granting authority | Ministerio de Agricultura, Pesca y Alimentación |
| Paseo Infanta Isabel, 1 |
| E-28071 Madrid |

Date of adoption of the decision

22.3.2007

Reference number of the aid

N 36/07

Member State

Spain

Region

—

Title (and/or name of the beneficiary)

Ayudas para la renovación del parque nacional de tractores

Legal basis

Proyecto de Real Decreto

Type of measure

Aid scheme

Objective

Improve technical farming resources

Form of aid

Direct grant

Budget

EUR 8 000 000 per year

Intensity

Variable

Duration

Until the end of 2009

Economic sectors

Agriculture

Name and address of the granting authority

Ministerio de Agricultura, Pesca y Alimentación

Paseo Infanta Isabel, 1

E-28071 Madrid

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 14.3.2007 |
| --- | --- |
| Reference number of the aid | N 53/07 |
| Member State | Italy |
| Region | Friuli Venezia Giulia |
| Title (and/or name of the beneficiary) | Interventi nelle zone agricole colpite da calamità naturali (venti impetuosi del 29 giugno 2006 nella provincia di Pordenone) |
| Legal basis | Decreto legislativo n. 102/2004 |
| Type of measure | Aid scheme |
| Objective | Adverse weather conditions |
| Form of aid | Grants |
| Budget | See Aid No NN 54/A/04 |
| Intensity | Up to 100 % |
| Duration | Until the final payment is made. |
| Economic sectors | Agriculture |
| Name and address of the granting authority | — |
| Other information | — |

Date of adoption of the decision

14.3.2007

Reference number of the aid

N 53/07

Member State

Italy

Region

Friuli Venezia Giulia

Title (and/or name of the beneficiary)

Interventi nelle zone agricole colpite da calamità naturali (venti impetuosi del 29 giugno 2006 nella provincia di Pordenone)

Legal basis

Decreto legislativo n. 102/2004

Type of measure

Aid scheme

Objective

Adverse weather conditions

Form of aid

Grants

Budget

See Aid No NN 54/A/04

Intensity

Up to 100 %

Duration

Until the final payment is made.

Economic sectors

Agriculture

Name and address of the granting authority

—

Other information

—

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

| Date of adoption of the decision | 14.3.2007 |
| --- | --- |
| Reference number of the aid | N 54/07 |
| Member State | Italy |
| Region | Friuli Venezia Giulia |
| Title (and/or name of the beneficiary) | Interventi nelle zone agricole danneggiate (siccità dal 7 giugno 2006 al 3 agosto 2006) |
| Legal basis | Decreto legislativo n. 102/2004 |
| Type of measure | Aid scheme |
| Objective | To compensate for damage to farm structures as a result of bad weather |
| Form of aid | Direct grant |
| Budget | See the approved scheme (NN 54/A/04) |
| Intensity | Up to 80 % |
| Duration | Until the final payment is made |
| Economic sectors | Agriculture |
| Name and address of the granting authority | Ministero delle Politiche agricole, alimentari e forestali |
| Via XX settembre, 20 |
| I-00187 Roma |

Date of adoption of the decision

14.3.2007

Reference number of the aid

N 54/07

Member State

Italy

Region

Friuli Venezia Giulia

Title (and/or name of the beneficiary)

Interventi nelle zone agricole danneggiate (siccità dal 7 giugno 2006 al 3 agosto 2006)

Legal basis

Decreto legislativo n. 102/2004

Type of measure

Aid scheme

Objective

To compensate for damage to farm structures as a result of bad weather

Form of aid

Direct grant

Budget

See the approved scheme (NN 54/A/04)

Intensity

Up to 80 %

Duration

Until the final payment is made

Economic sectors

Agriculture

Name and address of the granting authority

Ministero delle Politiche agricole, alimentari e forestali

Via XX settembre, 20

I-00187 Roma

Other information

Measure applying the scheme approved by the Commission under State aid NN 54/A/04 (Commission letter C(2005) 1622 final, dated 7 June 2005)

The authentic text(s) of the decision, from which all confidential information has been removed, can be found at:

http://ec.europa.eu/community_law/state_aids/

---

| 24.4.2007 | EN | Official Journal of the European Union | C 89/37 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/37

---

Non-opposition to a notified concentration

(Case COMP/M.4566 — Carrefour-Marinopoulos/Credicom/CMCC)

(Text with EEA relevance)

(2007/C 89/10)

On 22 February 2007, the Commission decided not to oppose the above notified concentration and to declare it compatible with the common market. This decision is based on Article 6(1)(b) of Council Regulation (EC) No 139/2004. The full text of the decision is available only in English and will be made public after it is cleared of any business secrets it may contain. It will be available:

| — | from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes, |
| --- | --- |

—

from the Europa competition website (http://ec.europa.eu/comm/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

| — | in electronic form on the EUR-Lex website under document number 32007M4566. EUR-Lex is the on-line access to European law. (http://eur-lex.europa.eu) |
| --- | --- |

—

in electronic form on the EUR-Lex website under document number 32007M4566. EUR-Lex is the on-line access to European law. (http://eur-lex.europa.eu)

---

IV Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Commission

| 24.4.2007 | EN | Official Journal of the European Union | C 89/38 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/38

---

Euro exchange rates (1)

23 April 2007

(2007/C 89/11)

1 euro=

| | Currency | Exchange rate |
| --- | --- | --- |
| USD | US dollar | 1,3557 |
| JPY | Japanese yen | 160,91 |
| DKK | Danish krone | 7,4521 |
| GBP | Pound sterling | 0,67800 |
| SEK | Swedish krona | 9,1979 |
| CHF | Swiss franc | 1,6423 |
| ISK | Iceland króna | 87,58 |
| NOK | Norwegian krone | 8,1070 |
| BGN | Bulgarian lev | 1,9558 |
| CYP | Cyprus pound | 0,5817 |
| CZK | Czech koruna | 28,026 |
| EEK | Estonian kroon | 15,6466 |
| HUF | Hungarian forint | 245,13 |
| LTL | Lithuanian litas | 3,4528 |
| LVL | Latvian lats | 0,7016 |
| MTL | Maltese lira | 0,4293 |
| PLN | Polish zloty | 3,7798 |
| RON | Romanian leu | 3,3382 |
| SKK | Slovak koruna | 33,533 |
| TRY | Turkish lira | 1,8205 |
| AUD | Australian dollar | 1,6277 |
| CAD | Canadian dollar | 1,5225 |
| HKD | Hong Kong dollar | 10,5946 |
| NZD | New Zealand dollar | 1,8210 |
| SGD | Singapore dollar | 2,0514 |
| KRW | South Korean won | 1 255,58 |
| ZAR | South African rand | 9,5538 |
| CNY | Chinese yuan renminbi | 10,4722 |
| HRK | Croatian kuna | 7,4000 |
| IDR | Indonesian rupiah | 12 322,64 |
| MYR | Malaysian ringgit | 4,6392 |
| PHP | Philippine peso | 64,464 |
| RUB | Russian rouble | 34,9550 |
| THB | Thai baht | 43,983 |

Currency

Exchange rate

USD

US dollar

1,3557

JPY

Japanese yen

160,91

DKK

Danish krone

7,4521

GBP

Pound sterling

0,67800

SEK

Swedish krona

9,1979

CHF

Swiss franc

1,6423

ISK

Iceland króna

87,58

NOK

Norwegian krone

8,1070

BGN

Bulgarian lev

1,9558

CYP

Cyprus pound

0,5817

CZK

Czech koruna

28,026

EEK

Estonian kroon

15,6466

HUF

Hungarian forint

245,13

LTL

Lithuanian litas

3,4528

LVL

Latvian lats

0,7016

MTL

Maltese lira

0,4293

PLN

Polish zloty

3,7798

RON

Romanian leu

3,3382

SKK

Slovak koruna

33,533

TRY

Turkish lira

1,8205

AUD

Australian dollar

1,6277

CAD

Canadian dollar

1,5225

HKD

Hong Kong dollar

10,5946

NZD

New Zealand dollar

1,8210

SGD

Singapore dollar

2,0514

KRW

South Korean won

1 255,58

ZAR

South African rand

9,5538

CNY

Chinese yuan renminbi

10,4722

HRK

Croatian kuna

7,4000

IDR

Indonesian rupiah

12 322,64

MYR

Malaysian ringgit

4,6392

PHP

Philippine peso

64,464

RUB

Russian rouble

34,9550

THB

Thai baht

43,983

---

(1)

Source: reference exchange rate published by the ECB.

---

NOTICES FROM MEMBER STATES

| 24.4.2007 | EN | Official Journal of the European Union | C 89/39 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/39

---

BODIES RESPONSIBLE FOR THE REGISTRATION OF TOBACCO CULTIVATION CONTRACTS

(2007/C 89/12)

This list is published under Article 171co of Commission Regulation (EC) No 1973/2004 of 29 October 2004 laying down detailed rules for the application of Council Regulation (EC) No 1782/2003 as regards the tobacco aid scheme.

BULGARIA

| 1. | Tobacco Fund Regional Unit |
| --- | --- |
| ul. Balgariya 14, ofis 504 |
| Smolyan District |
| BG-4700 Smolyan |

1.

Tobacco Fund Regional Unit

ul. Balgariya 14, ofis 504

Smolyan District

BG-4700 Smolyan

| 2. | Tobacco Fund Regional Unit |
| --- | --- |
| ul. Vasil Levski 67, et. 1, st. 9 |
| Razgrad District |
| BG-7400 Isperih |

2.

Tobacco Fund Regional Unit

ul. Vasil Levski 67, et. 1, st. 9

Razgrad District

BG-7400 Isperih

| 3. | Tobacco Fund Regional Unit |
| --- | --- |
| ul. Petar Beron 2 |
| Burgas District |
| BG-8500 Aytos |

3.

Tobacco Fund Regional Unit

ul. Petar Beron 2

Burgas District

BG-8500 Aytos

| 4. | Tobacco Fund Regional Unit |
| --- | --- |
| ul. Tsar Osvoboditel 4, ofis 2 |
| Haskovo District |
| BG-6300 Haskovo |

4.

Tobacco Fund Regional Unit

ul. Tsar Osvoboditel 4, ofis 2

Haskovo District

BG-6300 Haskovo

| 5. | Tobacco Fund Regional Unit |
| --- | --- |
| ul. Hristo Botev 15 |
| Blagoevgrad District |
| BG-2900 Gotse Delchev |

5.

Tobacco Fund Regional Unit

ul. Hristo Botev 15

Blagoevgrad District

BG-2900 Gotse Delchev

| 6. | Tobacco Fund Regional Unit |
| --- | --- |
| ul. Dr G. M. Dimitrov 28 |
| Plovdiv District |
| BG-4000 Plovdiv |

6.

Tobacco Fund Regional Unit

ul. Dr G. M. Dimitrov 28

Plovdiv District

BG-4000 Plovdiv

| 7. | Tobacco Fund Regional Unit |
| --- | --- |
| ul. Tsar Boris III 24 |
| Blagoevgrad District |
| BG-2850 Petrich |

7.

Tobacco Fund Regional Unit

ul. Tsar Boris III 24

Blagoevgrad District

BG-2850 Petrich

| 8. | Tobacco Fund Regional Unit |
| --- | --- |
| ul. Minyorska 1 |
| Kardzhali District |
| BG-6600 Kardzhali |

8.

Tobacco Fund Regional Unit

ul. Minyorska 1

Kardzhali District

BG-6600 Kardzhali

GERMANY

| Hauptzollamt Hamburg-Jonas |
| --- |
| Süderstraße 63 |
| D-20097 Hamburg |

Hauptzollamt Hamburg-Jonas

Süderstraße 63

D-20097 Hamburg

AUSTRIA

| Hauptzollamt Hamburg-Jonas |
| --- |
| Süderstraße 63 |
| D-20097 Hamburg |

Hauptzollamt Hamburg-Jonas

Süderstraße 63

D-20097 Hamburg

BELGIUM

| 1. | Ministerie van de Vlaamse Gemeenschap |
| --- | --- |
| Administratie Landbouwproductiebeheer |
| Dienst Akkerbouw |
| WTC III — 14de verdieping |
| Simon Bolivarlaan 30 |
| B-1000 Brussel |

1.

Ministerie van de Vlaamse Gemeenschap

Administratie Landbouwproductiebeheer

Dienst Akkerbouw

WTC III — 14de verdieping

Simon Bolivarlaan 30

B-1000 Brussel

| 2. | Ministère de la Région Wallonne |
| --- | --- |
| Direction Générale de l'Agriculture |
| Division des aides à l'agriculture |
| Direction du secteur végétal |
| Chaussée de Louvain, 14 |
| B-5000 Namur |

2.

Ministère de la Région Wallonne

Direction Générale de l'Agriculture

Division des aides à l'agriculture

Direction du secteur végétal

Chaussée de Louvain, 14

B-5000 Namur

SPAIN

| 1. | Junta de Andalucía |
| --- | --- |
| Consejería de Agricultura y Pesca |
| Fondo Andaluz de Garantía Agraria (FAGA) |
| C/ Tabladilla, s/n |
| E-41071 Sevilla |

1.

Junta de Andalucía

Consejería de Agricultura y Pesca

Fondo Andaluz de Garantía Agraria (FAGA)

C/ Tabladilla, s/n

E-41071 Sevilla

| 2. | Junta de Castilla — La Mancha |
| --- | --- |
| Consejería de Agricultura y Medio Ambiente |
| Dirección General de Producción Agropecuaria |
| C/ Pintor Matías Moreno, 4 |
| E-45002 Toledo |

2.

Junta de Castilla — La Mancha

Consejería de Agricultura y Medio Ambiente

Dirección General de Producción Agropecuaria

C/ Pintor Matías Moreno, 4

E-45002 Toledo

| 3. | Junta de Castilla y León |
| --- | --- |
| Consejería de Agricultura y Ganadería |
| Dirección General de Política Agraria Comunitaria |
| C/ Rigoberto Cortejoso, 14 |
| E-47014 Valladolid |

3.

Junta de Castilla y León

Consejería de Agricultura y Ganadería

Dirección General de Política Agraria Comunitaria

C/ Rigoberto Cortejoso, 14

E-47014 Valladolid

| 4. | Junta de Extremadura |
| --- | --- |
| Consejería de Agricultura y Medio Ambiente |
| Dirección General de Politíca Agraria Comunitaria |
| Avenida de Portugal, s/n |
| E-68800 Mérida (Badajoz) |

4.

Junta de Extremadura

Consejería de Agricultura y Medio Ambiente

Dirección General de Politíca Agraria Comunitaria

Avenida de Portugal, s/n

E-68800 Mérida (Badajoz)

| 5. | Diputación Foral de Navarra |
| --- | --- |
| Departamento de Agricultura, Ganadería y Alimentación |
| Dirección General de Agricultura y Ganadería |
| C/ Tudela, 20 |
| E-31002 Pamplona |

5.

Diputación Foral de Navarra

Departamento de Agricultura, Ganadería y Alimentación

Dirección General de Agricultura y Ganadería

C/ Tudela, 20

E-31002 Pamplona

FRANCE

| ONIFLHOR |
| --- |
| 164, rue de Javel |
| F-75739 Paris Cedex 15 |
| Tél. (33-1) 44 25 36 77 |
| Fax (33-1) 44 54 31 69 |

ONIFLHOR

164, rue de Javel

F-75739 Paris Cedex 15

Tél. (33-1) 44 25 36 77

Fax (33-1) 44 54 31 69

ITALY

| AGEA |
| --- |
| Via Torino, 45 |
| I-00184 Roma |

AGEA

Via Torino, 45

I-00184 Roma

| AVEPA |
| --- |
| Centro Tommaseo |
| Via N. Tommaseo, 67 C |
| I-35131 Padova |

AVEPA

Centro Tommaseo

Via N. Tommaseo, 67 C

I-35131 Padova

| ARTEA |
| --- |
| Via San Donato, 42/1 |
| I-50127 Firenze |

ARTEA

Via San Donato, 42/1

I-50127 Firenze

POLAND

| Agencja Rynku Rolnego |
| --- |
| ul. Nowy Świat 6/12 |
| PL-00-400 Warszawa |
| Tel. (48-22) 661-72-72 |
| Fax (48-22) 628-93-53 |

Agencja Rynku Rolnego

ul. Nowy Świat 6/12

PL-00-400 Warszawa

Tel. (48-22) 661-72-72

Fax (48-22) 628-93-53

PORTUGAL

| IFADAP/INGA |
| --- |
| Instituto de Financiamento e Apoio ao Desenvolvimento da Agricoltura e Pescas/ |
| Instituto Nacional de Intervenção e Garantia Agrícola |
| Rua Fernando Curado Ribeiro, n.o 4 G |
| P-1600 Lisboa |
| Tel. (351-21) 751 85 00 |
| Fax (351-21) 751 86 11/2 |

IFADAP/INGA

Instituto de Financiamento e Apoio ao Desenvolvimento da Agricoltura e Pescas/

Instituto Nacional de Intervenção e Garantia Agrícola

Rua Fernando Curado Ribeiro, n.o 4 G

P-1600 Lisboa

Tel. (351-21) 751 85 00

Fax (351-21) 751 86 11/2

SLOVAKIA

| Pôdohospodárska platobná agentúra |
| --- |
| Dobrovičova 12 |
| SK-815 26 Bratislava |

Pôdohospodárska platobná agentúra

Dobrovičova 12

SK-815 26 Bratislava

---

V Announcements

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMPETITION POLICY

Commission

| 24.4.2007 | EN | Official Journal of the European Union | C 89/42 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/42

---

Prior notification of a concentration

(Case COMP/M.4564 — Bridgestone/Bandag)

(Text with EEA relevance)

(2007/C 89/13)

| 1. | On 17 April 2007 the Commission received a notification of a proposed concentration pursuant to Article 4 and following a referral pursuant to Article 4(5) of Council Regulation (EC) No 139/2004 (1) by which Bridgestone Americas Holding Inc (‘Bridgestone’, USA) acquires within the meaning of Article 3(1)(b) of the Council Regulation control of Bandag Incorporated (‘Bandag’, USA) by way of purchase of shares. |
| --- | --- |

1.

On 17 April 2007 the Commission received a notification of a proposed concentration pursuant to Article 4 and following a referral pursuant to Article 4(5) of Council Regulation (EC) No 139/2004 (1) by which Bridgestone Americas Holding Inc (‘Bridgestone’, USA) acquires within the meaning of Article 3(1)(b) of the Council Regulation control of Bandag Incorporated (‘Bandag’, USA) by way of purchase of shares.

| 2. | The business activities of the undertakings concerned are:






  — | Bridgestone: manufacture of tyres for motor vehicles, distribution of tyres and tyres service centres; |
| --- | --- | --- |

2.

The business activities of the undertakings concerned are:

—

Bridgestone: manufacture of tyres for motor vehicles, distribution of tyres and tyres service centres;

| — | Bandag: manufacture of retreading materials and equipment for motor vehicle tyres, tyre retreading and servicing. |
| --- | --- |

—

Bandag: manufacture of retreading materials and equipment for motor vehicle tyres, tyre retreading and servicing.

| 3. | On preliminary examination, the Commission finds that the notified transaction could fall within the scope of Regulation (EC) No 139/2004. However, the final decision on this point is reserved. |
| --- | --- |

3.

On preliminary examination, the Commission finds that the notified transaction could fall within the scope of Regulation (EC) No 139/2004. However, the final decision on this point is reserved.

| 4. | The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission.
  Observations must reach the Commission not later than 10 days following the date of this publication. Observations can be sent to the Commission by fax ((32-2) 296 43 01 or 296 72 44) or by post, under reference number COMP/M.4564 — Bridgestone/Bandag to the following address:





  European Commission |
| --- | --- |
| Directorate-General for Competition |
| Merger Registry |
| J-70 |
| B-1049 Bruxelles/Brussel |

4.

The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission.

Observations must reach the Commission not later than 10 days following the date of this publication. Observations can be sent to the Commission by fax ((32-2) 296 43 01 or 296 72 44) or by post, under reference number COMP/M.4564 — Bridgestone/Bandag to the following address:

European Commission

Directorate-General for Competition

Merger Registry

J-70

B-1049 Bruxelles/Brussel

---

(1)  OJ L 24, 29.1.2004, p. 1.

---

| 24.4.2007 | EN | Official Journal of the European Union | C 89/43 |
| --- | --- | --- | --- |

24.4.2007

EN

Official Journal of the European Union

C 89/43

---

Prior notification of a concentration

(Case COMP/M.4665 — The Apollo Group/Claire's Stores)

Candidate case for simplified procedure

(Text with EEA relevance)

(2007/C 89/14)

| 1. | On 17 April 2007, the Commission received a notification of a proposed concentration pursuant to Article 4 of Council Regulation (EC) No 139/2004 (1) by which the undertaking The Apollo Group (‘Apollo’, USA) acquires within the meaning of Article 3(1)(b) of the Council Regulation control of the whole of the undertaking Claire's Stores, Inc (‘Claire's’, USA), by way of purchase of shares. |
| --- | --- |

1.

On 17 April 2007, the Commission received a notification of a proposed concentration pursuant to Article 4 of Council Regulation (EC) No 139/2004 (1) by which the undertaking The Apollo Group (‘Apollo’, USA) acquires within the meaning of Article 3(1)(b) of the Council Regulation control of the whole of the undertaking Claire's Stores, Inc (‘Claire's’, USA), by way of purchase of shares.

| 2. | The business activities of the undertakings concerned are:






  — | for Apollo: portfolio investments; |
| --- | --- | --- |

2.

The business activities of the undertakings concerned are:

—

for Apollo: portfolio investments;

| — | for Claire's: retail sale of costume jewellery; fashion accessories and colour cosmetics, mainly in the USA. |
| --- | --- |

—

for Claire's: retail sale of costume jewellery; fashion accessories and colour cosmetics, mainly in the USA.

| 3. | On preliminary examination, the Commission finds that the notified transaction could fall within the scope of Regulation (EC) No 139/2004. However, the final decision on this point is reserved. Pursuant to the Commission Notice on a simplified procedure for treatment of certain concentrations under Council Regulation (EC) No 139/2004 (2) it should be noted that this case is a candidate for treatment under the procedure set out in the Notice. |
| --- | --- |

3.

On preliminary examination, the Commission finds that the notified transaction could fall within the scope of Regulation (EC) No 139/2004. However, the final decision on this point is reserved. Pursuant to the Commission Notice on a simplified procedure for treatment of certain concentrations under Council Regulation (EC) No 139/2004 (2) it should be noted that this case is a candidate for treatment under the procedure set out in the Notice.

| 4. | The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission.
  Observations must reach the Commission not later than 10 days following the date of this publication. Observations can be sent to the Commission by fax ((32-2) 296 43 01 or 296 72 44) or by post, under reference number COMP/M.4665 — The Apollo Group/Claire's Stores, to the following address:





  European Commission |
| --- | --- |
| Directorate-General for Competition |
| Merger Registry |
| J-70 |
| B-1049 Bruxelles/Brussel |

4.

The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission.

Observations must reach the Commission not later than 10 days following the date of this publication. Observations can be sent to the Commission by fax ((32-2) 296 43 01 or 296 72 44) or by post, under reference number COMP/M.4665 — The Apollo Group/Claire's Stores, to the following address:

European Commission

Directorate-General for Competition

Merger Registry

J-70

B-1049 Bruxelles/Brussel

---

(1)  OJ L 24, 29.1.2004, p. 1.

(2)  OJ C 56, 5.3.2005, p. 32.

---