# Official Journal C 63/2009

| | ISSN 1725-2423 |
| --- | --- |
| Official Journal
  of the European Union | C 63 |
| | |
| English edition | Information and Notices | Volume 5218 March 2009 |

ISSN 1725-2423

Official Journal

of the European Union

C 63

English edition

Information and Notices

Volume 5218 March 2009

---

| Notice No | Contents | page |
| --- | --- | --- |
| | I   Resolutions, recommendations and opinions |
| | OPINIONS |
| | Council |
| 2009/C 063/01 | Council opinion of 10 March 2009 on the updated convergence programme of Denmark, 2008-2015 | 1 |
| 2009/C 063/02 | Council opinion of 10 March 2009 on the updated convergence programme of Estonia, 2008-2012 | 6 |
| | Commission |
| 2009/C 063/03 | Notice regarding the adaptation in line with inflation of certain amounts laid down in the Reinsurance Directive | 11 |

Notice No

Contents

page

I   Resolutions, recommendations and opinions

OPINIONS

Council

2009/C 063/01

Council opinion of 10 March 2009 on the updated convergence programme of Denmark, 2008-2015

1

2009/C 063/02

Council opinion of 10 March 2009 on the updated convergence programme of Estonia, 2008-2012

6

Commission

2009/C 063/03

Notice regarding the adaptation in line with inflation of certain amounts laid down in the Reinsurance Directive

11

| | II   Information |
| --- | --- |
| | INFORMATION FROM EUROPEAN UNION INSTITUTIONS AND BODIES |
| | Commission |
| 2009/C 063/04 | Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty — Cases where the Commission raises no objections | 12 |
| 2009/C 063/05 | Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty — Cases where the Commission raises no objections (
  1
  ) | 14 |
| 2009/C 063/06 | Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty — Cases where the Commission raises no objections (
  1
  ) | 16 |

II   Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Commission

2009/C 063/04

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

12

2009/C 063/05

Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty — Cases where the Commission raises no objections (
  1
  )

1

14

2009/C 063/06

Authorisation for State aid pursuant to Articles 87 and 88 of the EC Treaty — Cases where the Commission raises no objections (
  1
  )

1

16

| | IV   Notices |
| --- | --- |
| | NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES |
| | Commission |
| 2009/C 063/07 | Euro exchange rates | 18 |

IV   Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Commission

2009/C 063/07

Euro exchange rates

18

| | V   Announcements |
| --- | --- |
| | ADMINISTRATIVE PROCEDURES |
| | Commission |
| 2009/C 063/08 | Calls for proposals under the 2009 work programme People of the 7th EC Framework Programme for Research, Technological Development and Demonstration Activities | 19 |
| | PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON COMMERCIAL POLICY |
| | Commission |
| 2009/C 063/09 | Notice of initiation of an anti-dumping proceeding concerning imports of certain cargo scanning systems originating in the People's Republic of China | 20 |
| | PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMPETITION POLICY |
| | Commission |
| 2009/C 063/10 | Communication from the Minister for Economic Affairs of the Kingdom of the Netherlands pursuant to Article 3(2) of Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons | 23 |

V   Announcements

ADMINISTRATIVE PROCEDURES

Commission

2009/C 063/08

Calls for proposals under the 2009 work programme People of the 7th EC Framework Programme for Research, Technological Development and Demonstration Activities

19

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON COMMERCIAL POLICY

Commission

2009/C 063/09

Notice of initiation of an anti-dumping proceeding concerning imports of certain cargo scanning systems originating in the People's Republic of China

20

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMPETITION POLICY

Commission

2009/C 063/10

Communication from the Minister for Economic Affairs of the Kingdom of the Netherlands pursuant to Article 3(2) of Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

23

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

---

(1)   Text with EEA relevance

1

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

EN

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I Resolutions, recommendations and opinions

OPINIONS

Council

| 18.3.2009 | EN | Official Journal of the European Union | C 63/1 |
| --- | --- | --- | --- |

18.3.2009

EN

Official Journal of the European Union

C 63/1

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COUNCIL OPINION

of 10 March 2009

on the updated convergence programme of Denmark, 2008-2015

(2009/C 63/01)

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 10 March 2009, the Council examined the updated convergence programme of Denmark, which covers the period 2008 to 2015. |
| --- | --- |

(1)

On 10 March 2009, the Council examined the updated convergence programme of Denmark, which covers the period 2008 to 2015.

| (2) | Following a protracted upswing, Denmark's economic slowdown in 2008 has been rapid and pronounced, driven mainly by the cooling housing market and mounting financial turmoil. Going forward, weaker demand, both domestically and internationally, will further exacerbate the downturn. With deteriorating external conditions, ensuring financial stability and an orderly correction in the housing market will be particularly challenging. In the short and medium-term, the downturn and anticipated developments in asset and energy prices will have significant adverse implications for public finances.
  Specifically, downward pressure is expected on revenue from the pension yield tax, corporate taxes and from the estimated declining extraction of oil and gas in the North Sea. Warranted by a fiscally sound point of departure, the budget adopted for 2009 entails a discretionary fiscal expansion of around 1 percentage point of GDP, including permanent income tax cuts amounting to 0,5 % of GDP. Pressure on the Danish krone and drains on foreign exchange reserves forced the Danish central bank to increase interest rates in October 2008. Along with the ECB's cutting of interest rates, this led to a widening of the policy interest rate spread with the euro. The Danish central bank subsequently cut policy interest rates at the end of 2008 and early 2009, following ECB interest rate cuts, and implemented additional cuts, leading to a gradual narrowing of the spread. However, the spread remains high at 1 percentage point against 0,35 percentage point before the crisis. |
| --- | --- |

(2)

Following a protracted upswing, Denmark's economic slowdown in 2008 has been rapid and pronounced, driven mainly by the cooling housing market and mounting financial turmoil. Going forward, weaker demand, both domestically and internationally, will further exacerbate the downturn. With deteriorating external conditions, ensuring financial stability and an orderly correction in the housing market will be particularly challenging. In the short and medium-term, the downturn and anticipated developments in asset and energy prices will have significant adverse implications for public finances.

Specifically, downward pressure is expected on revenue from the pension yield tax, corporate taxes and from the estimated declining extraction of oil and gas in the North Sea. Warranted by a fiscally sound point of departure, the budget adopted for 2009 entails a discretionary fiscal expansion of around 1 percentage point of GDP, including permanent income tax cuts amounting to 0,5 % of GDP. Pressure on the Danish krone and drains on foreign exchange reserves forced the Danish central bank to increase interest rates in October 2008. Along with the ECB's cutting of interest rates, this led to a widening of the policy interest rate spread with the euro. The Danish central bank subsequently cut policy interest rates at the end of 2008 and early 2009, following ECB interest rate cuts, and implemented additional cuts, leading to a gradual narrowing of the spread. However, the spread remains high at 1 percentage point against 0,35 percentage point before the crisis.

| (3) | Based on the underlying macro-economic scenario, real GDP growth is projected to fall from 0,2 % in 2008 to – 0,2 % in 2009, recover subsequently to 0,7 % in 2010, and average 1,7 % over the rest of the programme period. The recovery in 2011-2012 reflects technical assumptions of output and unemployment gaps closing in 2012 as calculated by the Danish authorities using national methodologies. The underlying assumption is that capacity utilisation gradually increases to a normal level, supported by an emerging recovery abroad as well as low interest rates. Assessed against currently available information (2), the scenario appears to be based on favourable growth assumptions. In 2009, the slowdown in domestic demand appears underestimated in light of the most recent developments. From 2011 onward, growth appears on the high side in the light of historical productivity growth and estimated potential growth. Inflation is foreseen to decrease substantially in 2009 to 1,3 %, and fluctuate around a level just below 2 % over the rest of the programme period. The cause of the fluctuations is unclear but the projected development in the GDP deflator appears realistic. |
| --- | --- |

(3)

Based on the underlying macro-economic scenario, real GDP growth is projected to fall from 0,2 % in 2008 to – 0,2 % in 2009, recover subsequently to 0,7 % in 2010, and average 1,7 % over the rest of the programme period. The recovery in 2011-2012 reflects technical assumptions of output and unemployment gaps closing in 2012 as calculated by the Danish authorities using national methodologies. The underlying assumption is that capacity utilisation gradually increases to a normal level, supported by an emerging recovery abroad as well as low interest rates. Assessed against currently available information (2), the scenario appears to be based on favourable growth assumptions. In 2009, the slowdown in domestic demand appears underestimated in light of the most recent developments. From 2011 onward, growth appears on the high side in the light of historical productivity growth and estimated potential growth. Inflation is foreseen to decrease substantially in 2009 to 1,3 %, and fluctuate around a level just below 2 % over the rest of the programme period. The cause of the fluctuations is unclear but the projected development in the GDP deflator appears realistic.

| (4) | For 2008, the general government surplus is estimated at 3,1 % of GDP in the Commission services' January 2009 interim forecast, close to the target of 3,0 % of GDP set in the previous update of the convergence programme. Due to the lagged reaction of the labour market to the downturn, employment and wage growth remained robust for most of the year, resulting in higher income tax revenue and lower social expenditure than foreseen. Meanwhile, the financial crisis led to markedly lower revenue from the pension yield tax and corporate taxes. Moreover, expenditure exceeded the projection due to higher intermediate consumption expenditure and a one-off capital transfer to households as part of the 2007 reform of the pension yield tax. |
| --- | --- |

(4)

For 2008, the general government surplus is estimated at 3,1 % of GDP in the Commission services' January 2009 interim forecast, close to the target of 3,0 % of GDP set in the previous update of the convergence programme. Due to the lagged reaction of the labour market to the downturn, employment and wage growth remained robust for most of the year, resulting in higher income tax revenue and lower social expenditure than foreseen. Meanwhile, the financial crisis led to markedly lower revenue from the pension yield tax and corporate taxes. Moreover, expenditure exceeded the projection due to higher intermediate consumption expenditure and a one-off capital transfer to households as part of the 2007 reform of the pension yield tax.

| (5) | For 2009, the programme foresees a balanced general government budget, against a projection of a deficit of 0,3 % of GDP in the Commission services' interim forecast, implying a negative swing of 3 percentage points of GDP. Automatic stabilisers account for about 1 percentage point of the overall decline. In addition to the discretionary fiscal expansion of about 1 percentage point of GDP, including income tax cuts of 0.5 percentage point of GDP, the decline in energy and asset prices is anticipated to reduce particularly volatile revenues by around 1,5 percentage points of GDP compared with trend levels. While projecting a structural surplus, the change in the structural balance, based on the cyclically-adjusted balance recalculated by the Commission services using the commonly agreed methodology and on the Commission service's definition of one-off and other temporary measures, estimated at around 2,5 percentage points of GDP, confirms a markedly expansionary fiscal stance (3), although substantially affected by a decrease in volatile revenues. |
| --- | --- |

(5)

For 2009, the programme foresees a balanced general government budget, against a projection of a deficit of 0,3 % of GDP in the Commission services' interim forecast, implying a negative swing of 3 percentage points of GDP. Automatic stabilisers account for about 1 percentage point of the overall decline. In addition to the discretionary fiscal expansion of about 1 percentage point of GDP, including income tax cuts of 0.5 percentage point of GDP, the decline in energy and asset prices is anticipated to reduce particularly volatile revenues by around 1,5 percentage points of GDP compared with trend levels. While projecting a structural surplus, the change in the structural balance, based on the cyclically-adjusted balance recalculated by the Commission services using the commonly agreed methodology and on the Commission service's definition of one-off and other temporary measures, estimated at around 2,5 percentage points of GDP, confirms a markedly expansionary fiscal stance (3), although substantially affected by a decrease in volatile revenues.

| (6) | A further deterioration in the headline balance is foreseen for 2010, partly due to automatic stabilisers, but mainly due to another planned one-off capital transfer to households as part of the 2007 reform of the pension yield tax. The programme aims to continue to achieve its medium-term objective (MTO) of structural surpluses, i.e. cyclically adjusted net of one-off and other temporary measures, in the range of 0,75-1,75 % of GDP until 2010. After 2010, Denmark is revising its MTO downwards to a structural balance as a minimum, which it plans to continue to achieve until 2015. The MTO respects the minimum benchmark of a deficit around 0,5 % of GDP and adequately reflects the debt ratio and the average potential growth in the long run. Consequently, the new objective is assessed to be appropriate and in line with the Stability and Growth Pact. The programme projects the general government balance to return to a small surplus in 2011. This largely hinges on the technical assumptions of output and unemployment gaps closing in 2012, resulting in a cyclically determined revenue increase. The targets are based on a scenario requiring unspecified structural reform measures to improve the general government balance permanently by 0,7 % of GDP toward 2015 to ensure fiscal sustainability according to the national methodology. Over the programme period, the structural surplus calculated according to the commonly agreed methodology is foreseen to decrease by around 3,5 percentage points of GDP, but stay in positive territory. In addition to the financial stability measures taken in autumn 2008 and outlined in the update, the Credit Package of 18 January 2009 implies temporary hybrid capital injections of up to DKK 100 billion (5,5 % of GDP) from mid-2009, which will have an immediate impact on the debt developments of the update and a potential impact on the general government balance over the programme period. |
| --- | --- |

(6)

A further deterioration in the headline balance is foreseen for 2010, partly due to automatic stabilisers, but mainly due to another planned one-off capital transfer to households as part of the 2007 reform of the pension yield tax. The programme aims to continue to achieve its medium-term objective (MTO) of structural surpluses, i.e. cyclically adjusted net of one-off and other temporary measures, in the range of 0,75-1,75 % of GDP until 2010. After 2010, Denmark is revising its MTO downwards to a structural balance as a minimum, which it plans to continue to achieve until 2015. The MTO respects the minimum benchmark of a deficit around 0,5 % of GDP and adequately reflects the debt ratio and the average potential growth in the long run. Consequently, the new objective is assessed to be appropriate and in line with the Stability and Growth Pact. The programme projects the general government balance to return to a small surplus in 2011. This largely hinges on the technical assumptions of output and unemployment gaps closing in 2012, resulting in a cyclically determined revenue increase. The targets are based on a scenario requiring unspecified structural reform measures to improve the general government balance permanently by 0,7 % of GDP toward 2015 to ensure fiscal sustainability according to the national methodology. Over the programme period, the structural surplus calculated according to the commonly agreed methodology is foreseen to decrease by around 3,5 percentage points of GDP, but stay in positive territory. In addition to the financial stability measures taken in autumn 2008 and outlined in the update, the Credit Package of 18 January 2009 implies temporary hybrid capital injections of up to DKK 100 billion (5,5 % of GDP) from mid-2009, which will have an immediate impact on the debt developments of the update and a potential impact on the general government balance over the programme period.

| (7) | The budgetary outcomes projected in the programme are subject to several risks. The downside risks due to favourable growth assumptions and uncertainty about measures to deliver the structural reforms required are not outweighed, despite the positive budgetary track record, by upside risks linked to potentially higher revenues in the event of higher energy prices and lower interest rates. Moreover, measures launched to address financial stability entail a significant increase in risk exposure. |
| --- | --- |

(7)

The budgetary outcomes projected in the programme are subject to several risks. The downside risks due to favourable growth assumptions and uncertainty about measures to deliver the structural reforms required are not outweighed, despite the positive budgetary track record, by upside risks linked to potentially higher revenues in the event of higher energy prices and lower interest rates. Moreover, measures launched to address financial stability entail a significant increase in risk exposure.

| (8) | The long-term budgetary impact of ageing is lower than on average in the EU, notably thanks to the recent pension reform. Moreover, the budgetary position in 2008 as projected in the programme, with a large structural surplus, contributes to the reduction of gross debt. Maintaining high primary surpluses over the medium term would contribute to limiting the risks to the sustainability of public finances, which are currently at a low level. |
| --- | --- |

(8)

The long-term budgetary impact of ageing is lower than on average in the EU, notably thanks to the recent pension reform. Moreover, the budgetary position in 2008 as projected in the programme, with a large structural surplus, contributes to the reduction of gross debt. Maintaining high primary surpluses over the medium term would contribute to limiting the risks to the sustainability of public finances, which are currently at a low level.

| (9) | As reflected in its budgetary track record, Denmark has benefited from a relatively strong fiscal framework, notable for its wide coverage and the transparency and visibility of its fiscal rules. General government consumption expenditure has, however, been prone to exceeding targets. Recent initiatives involving economic sanctions could enhance incentives for local governments to adhere to agreed targets. Furthermore, some actions have been initiated to strengthen the focus on the cost-effectiveness of public spending. Nevertheless, further measures will be needed to curb expenditure growth in line with the Government's targets. |
| --- | --- |

(9)

As reflected in its budgetary track record, Denmark has benefited from a relatively strong fiscal framework, notable for its wide coverage and the transparency and visibility of its fiscal rules. General government consumption expenditure has, however, been prone to exceeding targets. Recent initiatives involving economic sanctions could enhance incentives for local governments to adhere to agreed targets. Furthermore, some actions have been initiated to strengthen the focus on the cost-effectiveness of public spending. Nevertheless, further measures will be needed to curb expenditure growth in line with the Government's targets.

| (10) | With a view to supporting financial stability, the Danish authorities have adopted a range of measures including amending the regulatory framework of the pension and life-insurance sector, the Financial Stability Act of October 2008 and the Credit Package mentioned above. The Financial Stability Act effectively provides an unlimited government-backed guarantee for unsecured creditors until 30 September 2010, where participating banks cover claims up to DKK 35 billion (2 % of GDP), and the state covers any exceeding claims. From 1 October 2010 a deposit insurance threshold of DKK 750 000 is foreseen. The Credit Package addresses the mounting pressure on the solvency of banks and mortgage institutions in order to contribute to a normalisation of lending policy. |
| --- | --- |

(10)

With a view to supporting financial stability, the Danish authorities have adopted a range of measures including amending the regulatory framework of the pension and life-insurance sector, the Financial Stability Act of October 2008 and the Credit Package mentioned above. The Financial Stability Act effectively provides an unlimited government-backed guarantee for unsecured creditors until 30 September 2010, where participating banks cover claims up to DKK 35 billion (2 % of GDP), and the state covers any exceeding claims. From 1 October 2010 a deposit insurance threshold of DKK 750 000 is foreseen. The Credit Package addresses the mounting pressure on the solvency of banks and mortgage institutions in order to contribute to a normalisation of lending policy.

| (11) | In line with the EERP agreed in December by the European Council, Denmark proceeded to implement a discretionary fiscal expansion of around 1 percentage point of GDP with the adoption of the 2009 budget, including permanent measures that enhance work incentives (income tax cuts) and improve the growth potential (investment in R&D). Part of the expansion is due to large public sector wage increases. A green transport infrastructure plan agreed on 29 January 2009 is foreseen to provide a further fiscal stimulus of DKK 5 billion (0,25 % of GDP) spread over 2009 and 2010. These measures are related to the Lisbon medium-term reform agenda as reviewed by the Commission on 28 January 2009. |
| --- | --- |

(11)

In line with the EERP agreed in December by the European Council, Denmark proceeded to implement a discretionary fiscal expansion of around 1 percentage point of GDP with the adoption of the 2009 budget, including permanent measures that enhance work incentives (income tax cuts) and improve the growth potential (investment in R&D). Part of the expansion is due to large public sector wage increases. A green transport infrastructure plan agreed on 29 January 2009 is foreseen to provide a further fiscal stimulus of DKK 5 billion (0,25 % of GDP) spread over 2009 and 2010. These measures are related to the Lisbon medium-term reform agenda as reviewed by the Commission on 28 January 2009.

| (12) | Based on the information in the programme update, the structural balance is foreseen to deteriorate by 2,5 percentage points in 2009 and a further 1 percentage point over the remaining programme period. In part, the decline reflects lower revenue from particularly volatile and transitory sources. In view of the fiscally sound point of departure and the strong automatic stabilisers at play, the planned expansionary fiscal stance appears to be an adequate response to the economic downturn. Throughout the programme period, the budgetary projections indicate that Denmark's fiscal position is fully in line with the criteria of the Stability and Growth Pact. |
| --- | --- |

(12)

Based on the information in the programme update, the structural balance is foreseen to deteriorate by 2,5 percentage points in 2009 and a further 1 percentage point over the remaining programme period. In part, the decline reflects lower revenue from particularly volatile and transitory sources. In view of the fiscally sound point of departure and the strong automatic stabilisers at play, the planned expansionary fiscal stance appears to be an adequate response to the economic downturn. Throughout the programme period, the budgetary projections indicate that Denmark's fiscal position is fully in line with the criteria of the Stability and Growth Pact.

| (13) | The programme update provides all required and most of the optional data (4). |
| --- | --- |

(13)

The programme update provides all required and most of the optional data (4).

The overall conclusion is that, at the current juncture and given the comfortable fiscal position, the overall fiscal stance is considered adequate in view of the discretionary fiscal expansion of around 1 percentage point of GDP in 2009 and in view of the relatively strong automatic stabilisers. The programme foresees a reduction in the general government surplus by around 3 percentage points of GDP in 2009 and about 1,25 percentage point further in 2010. The programme's growth assumptions are favourable. The fiscal policy aims to continue to achieve the MTO, being consistent with the objective of long-term sustainability throughout the programme period, thus maintaining a sufficient safety margin to the reference value. Following a period of high budgetary surpluses, benefiting from a relatively strong fiscal framework, general government gross debt has declined to a low level.

In view of the above assessment, Denmark is invited to:

| (i) | implement the fiscal plans for 2009, including the stimulus measures; in line with the EERP and within the framework of the Stability and Growth Pact; |
| --- | --- |

(i)

implement the fiscal plans for 2009, including the stimulus measures; in line with the EERP and within the framework of the Stability and Growth Pact;

| (ii) | identify the required structural reform measures; notably aiming at strengthening labour supply, in order to achieve budgetary targets in the outer years. |
| --- | --- |

(ii)

identify the required structural reform measures; notably aiming at strengthening labour supply, in order to achieve budgetary targets in the outer years.

Comparison of key macro-economic and budgetary projections

| | | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2015 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Real GDP
  (% change) | CP Dec 2008 | 1,6 | 0,2 | – 0,2 | 0,7 | 1,9 | 1,7 | 1,6 |
| COM Jan 2009 | 1,6 | – 0,6 | – 1,0 | 0,6 | n.a. | n.a. | n.a. |
| CP Dec 2007 | 2,0 | 1,3 | 1,1 | 0,5 | n.a. | n.a. | n.a. |
| HICP inflation
  (%) | CP Dec 2008 | 1,7 | 3,6 | 1,3 | 2,1 | 1,4 | 1,8 | 1,8 |
| COM Jan 2009 | 1,7 | 3,6 | 1,6 | 1,9 | n.a. | n.a. | n.a. |
| CP Dec 2007 | 1,7 | 2,4 | 1,6 | 1,9 | n.a. | n.a. | n.a. |
| Output gap (5)

  (% of potential GDP) | CP Dec 2008 | 1,4 | 0,0 | – 1,4 | – 1,8 | – 1,2 | – 0,8 | – 0,5 |
| COM Jan 2009 (6) | 1,8 | – 0,1 | – 2,1 | – 2,4 | n.a. | n.a. | n.a. |
| CP Dec 2007 | 1,0 | 0,3 | – 0,4 | – 1,5 | n.a. | n.a. | n.a. |
| Net lending/borrowing vis-à-vis the rest of the world
  (% of GDP) | CP Dec 2008 | 0,7 | 1,7 | 1,8 | 2,3 | 2,6 | 2,6 | 1,8 |
| COM Jan 2009 | 0,7 | 1,7 | 1,5 | 1,5 | n.a. | n.a. | n.a. |
| CP Dec 2007 | 1,7 | 1,3 | 1,9 | 2,2 | n.a. | n.a. | n.a. |
| General government revenue (8)
   (10)

  (% of GDP) | CP Dec 2008 | 54,5 | 53,2 | 51,2 | 51,5 | 52,1 | 51,8 | 51,5 |
| COM Jan 2009 | 55,4 | 54,8 | 52,8 | 53,4 | n.a. | n.a. | n.a. |
| CP Dec 2007 | 53,4 | 52,9 | 52,0 | 51,7 | n.a. | n.a. | n.a. |
| General government expenditure (8)
   (10)

  (% of GDP) | CP Dec 2008 | 49,9 | 50,2 | 51,2 | 52,8 | 51,8 | 51,7 | 51,6 |
| COM Jan 2009 | 50,9 | 51,6 | 53,1 | 54,9 | n.a. | n.a. | n.a. |
| CP Dec 2007 | 49,6 | 49,8 | 50,0 | 50,5 | n.a. | n.a. | n.a. |
| General government balance (10)

  (% of GDP) | CP Dec 2008 | 4,5 | 3,0 | 0,0 | – 1,2 | 0,3 | 0,1 | – 0,1 |
| COM Jan 2009 | 4,5 | 3,1 | – 0,3 | – 1,5 | n.a. | n.a. | n.a. |
| CP Dec 2007 | 3,8 | 3,0 | 2,0 | 1,2 | n.a. | n.a. | n.a. |
| Primary balance
  (% of GDP) | CP Dec 2008 | 6,1 | 4,2 | 1,5 | 0,2 | 1,6 | 1,3 | 0,7 |
| COM Jan 2009 | 6,1 | 4,5 | 1,2 | 0,0 | n.a. | n.a. | n.a. |
| CP Dec 2007 | 5,2 | 4,2 | 3,0 | 2,1 | n.a. | n.a. | n.a. |
| Cyclically-adjusted balance (5)

  (% of GDP) | CP Dec 2008 | 3,6 | 3,0 | 0,9 | 0,0 | 1,1 | 0,6 | 0,2 |
| COM Jan 2009 | 3,3 | 3,2 | 1,0 | 0,1 | n.a. | n.a. | n.a. |
| CP Dec 2007 | 3,1 | 2,8 | 2,3 | 2,2 | n.a. | n.a. | n.a. |
| Structural balance (7)
   (9)

  (% of GDP) | CP Dec 2008 | 3,7 | 4,0 | 2,6 | 1,7 | 1,3 | 0,6 | 0,2 |
| COM Jan 2009 | 3,3 | 3,8 | 1,1 | 0,9 | n.a. | n.a. | n.a. |
| CP Dec 2007 | 3,5 | 3,4 | 2,5 | 2,5 | n.a. | n.a. | n.a. |
| Government gross debt
  (% of GDP) | CP Dec 2008 | 26,3 | 30,3 | 27,9 | 26,3 | 25,4 | 24,6 | 22,6 |
| COM Jan 2009 | 26,3 | 30,3 | 28,4 | 27,0 | n.a. | n.a. | n.a. |
| CP Dec 2007 | 25,6 | 21,6 | 19,2 | 18,6 | n.a. | n.a. | n.a. |
| Convergence programme (CP); Commission services' January 2009 interim forecasts (COM); Commission services' calculations. |

2007

2008

2009

2010

2011

2012

2015

Real GDP

(% change)

CP Dec 2008

1,6

0,2

– 0,2

0,7

1,9

1,7

1,6

COM Jan 2009

1,6

– 0,6

– 1,0

0,6

n.a.

n.a.

n.a.

CP Dec 2007

2,0

1,3

1,1

0,5

n.a.

n.a.

n.a.

HICP inflation

(%)

CP Dec 2008

1,7

3,6

1,3

2,1

1,4

1,8

1,8

COM Jan 2009

1,7

3,6

1,6

1,9

n.a.

n.a.

n.a.

CP Dec 2007

1,7

2,4

1,6

1,9

n.a.

n.a.

n.a.

Output gap (5)

(% of potential GDP)

CP Dec 2008

1,4

0,0

– 1,4

– 1,8

– 1,2

– 0,8

– 0,5

COM Jan 2009 (6)

1,8

– 0,1

– 2,1

– 2,4

n.a.

n.a.

n.a.

CP Dec 2007

1,0

0,3

– 0,4

– 1,5

n.a.

n.a.

n.a.

Net lending/borrowing vis-à-vis the rest of the world

(% of GDP)

CP Dec 2008

0,7

1,7

1,8

2,3

2,6

2,6

1,8

COM Jan 2009

0,7

1,7

1,5

1,5

n.a.

n.a.

n.a.

CP Dec 2007

1,7

1,3

1,9

2,2

n.a.

n.a.

n.a.

General government revenue (8)
   (10)

(% of GDP)

CP Dec 2008

54,5

53,2

51,2

51,5

52,1

51,8

51,5

COM Jan 2009

55,4

54,8

52,8

53,4

n.a.

n.a.

n.a.

CP Dec 2007

53,4

52,9

52,0

51,7

n.a.

n.a.

n.a.

General government expenditure (8)
   (10)

(% of GDP)

CP Dec 2008

49,9

50,2

51,2

52,8

51,8

51,7

51,6

COM Jan 2009

50,9

51,6

53,1

54,9

n.a.

n.a.

n.a.

CP Dec 2007

49,6

49,8

50,0

50,5

n.a.

n.a.

n.a.

General government balance (10)

(% of GDP)

CP Dec 2008

4,5

3,0

0,0

– 1,2

0,3

0,1

– 0,1

COM Jan 2009

4,5

3,1

– 0,3

– 1,5

n.a.

n.a.

n.a.

CP Dec 2007

3,8

3,0

2,0

1,2

n.a.

n.a.

n.a.

Primary balance

(% of GDP)

CP Dec 2008

6,1

4,2

1,5

0,2

1,6

1,3

0,7

COM Jan 2009

6,1

4,5

1,2

0,0

n.a.

n.a.

n.a.

CP Dec 2007

5,2

4,2

3,0

2,1

n.a.

n.a.

n.a.

Cyclically-adjusted balance (5)

(% of GDP)

CP Dec 2008

3,6

3,0

0,9

0,0

1,1

0,6

0,2

COM Jan 2009

3,3

3,2

1,0

0,1

n.a.

n.a.

n.a.

CP Dec 2007

3,1

2,8

2,3

2,2

n.a.

n.a.

n.a.

Structural balance (7)
   (9)

(% of GDP)

CP Dec 2008

3,7

4,0

2,6

1,7

1,3

0,6

0,2

COM Jan 2009

3,3

3,8

1,1

0,9

n.a.

n.a.

n.a.

CP Dec 2007

3,5

3,4

2,5

2,5

n.a.

n.a.

n.a.

Government gross debt

(% of GDP)

CP Dec 2008

26,3

30,3

27,9

26,3

25,4

24,6

22,6

COM Jan 2009

26,3

30,3

28,4

27,0

n.a.

n.a.

n.a.

CP Dec 2007

25,6

21,6

19,2

18,6

n.a.

n.a.

n.a.

Convergence programme (CP); Commission services' January 2009 interim forecasts (COM); Commission services' calculations.

---

(1)  OJ L 209, 2.8.1997, p. 1. The documents referred to in this text can be found at the following website:

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

(2)  The assessment notably takes into account the Commission services' January 2009 forecast, but also other information that has become available since then.

(3)  Differences in the definition of one-offs and temporary measures imply that estimates for the structural balance are not readily comparable with the Commission services' January 2009 forecast.

(4)  In particular, the total revenue and total expenditure figures and some subcomponents do not correspond to the harmonised definitions, complicating the assessment. Moreover, a specification of the stock-flow adjustment is missing among the optional data.

(5)  Output gaps and cyclically-adjusted balances from the programmes as recalculated by Commission services on the basis of the information in the programmes.

(6)  Based on estimated potential growth of 1,8 %, 1,4 %, 1,0 % and 0,9 % respectively in the period 2007-2010.

(7)  Cyclically-adjusted balance excluding one-off and other temporary measures. One-off and other temporary measures are – 1,0 % of GDP in 2008, – 1,7 % in 2009 and 2010, and – 0,2 % in 2011, all deficit-reducing/surplus-increasing, according to the most recent programme, and – 0,5 % of GDP in 2008, – 0,2 % in 2009 and – 0,8 % in 2010, all deficit-reducing/surplus-increasing, according to the Commission services' January 2009 interim forecast.

(8)  The programme data for revenue and expenditure differ from the data reported to Eurostat, following the harmonised approach (cf. Commission Regulation (EC) No 1500/2000), on which the Commission services' forecast is based. The difference relates primarily to the treatment of public sales of goods and services and of the consumption of fixed capital. The balance is, however, unaffected.

(9)  Using the recalculated cyclically-adjusted balance, based on the information in the programme, and the definition of one-offs and other temporary measures applied by the Commission services, the structural balance would be 3,6 % of GDP in 2008 and 1,1 in 2009, and 0,9 in 2010.

(10)  For 2007, the figures differ from those reported to Eurostat in the October 2008 EDP notification. The figures used reflect more recent, revised data published by Statistics Denmark, which has not yet been validated by Eurostat.

Source:

Convergence programme (CP); Commission services' January 2009 interim forecasts (COM); Commission services' calculations.

---

| 18.3.2009 | EN | Official Journal of the European Union | C 63/6 |
| --- | --- | --- | --- |

18.3.2009

EN

Official Journal of the European Union

C 63/6

---

COUNCIL OPINION

of 10 March 2009

on the updated convergence programme of Estonia, 2008-2012

(2009/C 63/02)

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 9(3) thereof,

Having regard to the recommendation of the Commission,

After consulting the Economic and Financial Committee,

HAS DELIVERED THIS OPINION:

| (1) | On 10 March 2009, the Council examined the updated convergence programme of Estonia, which covers the period 2008 to 2012. |
| --- | --- |

(1)

On 10 March 2009, the Council examined the updated convergence programme of Estonia, which covers the period 2008 to 2012.

| (2) | The Estonian economy is currently experiencing a severe downturn. During 2008 several external factors, notably the deepening global financial crisis and weakening external demand, while supporting a moderation of external and internal imbalances, added to the ongoing adjustment in domestic demand and contributed to speeding up the contraction of the economy. Wage growth far in excess of productivity growth, including in the public sector, contributed to the loss of cost competitiveness during the previous years of high growth, and the adjustment of the labour market to the downturn was lagged. However, wage moderation appears to have taken hold since the end of 2008. In the context of the currency board framework, monetary and credit conditions tightened in 2008 amid higher country risk perceptions and a continued appreciation of the real effective exchange rate. Public finances have deteriorated markedly after six years of nominal surpluses, with an expected deficit of around 2 % of GDP in 2008 and an expected further deterioration in 2009 and 2010. Given the adjustment needs stemming from the country's imbalances, the authorities envisage fiscal consolidation in order to limit fiscal deterioration, facilitate the adjustment process and help maintain market confidence. |
| --- | --- |

(2)

The Estonian economy is currently experiencing a severe downturn. During 2008 several external factors, notably the deepening global financial crisis and weakening external demand, while supporting a moderation of external and internal imbalances, added to the ongoing adjustment in domestic demand and contributed to speeding up the contraction of the economy. Wage growth far in excess of productivity growth, including in the public sector, contributed to the loss of cost competitiveness during the previous years of high growth, and the adjustment of the labour market to the downturn was lagged. However, wage moderation appears to have taken hold since the end of 2008. In the context of the currency board framework, monetary and credit conditions tightened in 2008 amid higher country risk perceptions and a continued appreciation of the real effective exchange rate. Public finances have deteriorated markedly after six years of nominal surpluses, with an expected deficit of around 2 % of GDP in 2008 and an expected further deterioration in 2009 and 2010. Given the adjustment needs stemming from the country's imbalances, the authorities envisage fiscal consolidation in order to limit fiscal deterioration, facilitate the adjustment process and help maintain market confidence.

| (3) | The macro-economic scenario underlying the programme estimates real GDP to have declined by 2,2 % in 2008 and projects a further contraction by 3,5 % in 2009. Thereafter GDP is projected to recover to 2,6 % growth in 2010 and average annual growth of 4,9 % in 2011 and 2012. Assessed against currently available information (2), this scenario is based on favourable growth assumptions for 2009 and 2010, reflecting an optimistic assessment of export market growth and not fully taking into account more recent information pointing to a further deterioration in economic and confidence indicators. The programme's projections for inflation appear realistic and the fall in domestic demand and global market developments may exert further downward pressure on prices. The external balance is set to improve in the programme's scenario at a somewhat lower rate than in the Commission services' January 2009 interim forecast, due to more favourable expectations regarding domestic demand and different external price assumptions. |
| --- | --- |

(3)

The macro-economic scenario underlying the programme estimates real GDP to have declined by 2,2 % in 2008 and projects a further contraction by 3,5 % in 2009. Thereafter GDP is projected to recover to 2,6 % growth in 2010 and average annual growth of 4,9 % in 2011 and 2012. Assessed against currently available information (2), this scenario is based on favourable growth assumptions for 2009 and 2010, reflecting an optimistic assessment of export market growth and not fully taking into account more recent information pointing to a further deterioration in economic and confidence indicators. The programme's projections for inflation appear realistic and the fall in domestic demand and global market developments may exert further downward pressure on prices. The external balance is set to improve in the programme's scenario at a somewhat lower rate than in the Commission services' January 2009 interim forecast, due to more favourable expectations regarding domestic demand and different external price assumptions.

| (4) | For 2008, the general government deficit is estimated at 2,0 % of GDP in the Commission services' January 2009 interim forecast, against a target of a surplus of 1,3 % of GDP set in the previous update of the convergence programme. The deterioration reflects most notably a marked fall in revenue compared with the initial estimates due to a considerable worsening of the macro-economic situation compared with projections in the previous update of the convergence programme. The deterioration in revenue was to some extent offset by lower expenditure compared with the previous target following the adoption in mid-2008 of a restrictive supplementary budget with broad-based expenditure cuts. |
| --- | --- |

(4)

For 2008, the general government deficit is estimated at 2,0 % of GDP in the Commission services' January 2009 interim forecast, against a target of a surplus of 1,3 % of GDP set in the previous update of the convergence programme. The deterioration reflects most notably a marked fall in revenue compared with the initial estimates due to a considerable worsening of the macro-economic situation compared with projections in the previous update of the convergence programme. The deterioration in revenue was to some extent offset by lower expenditure compared with the previous target following the adoption in mid-2008 of a restrictive supplementary budget with broad-based expenditure cuts.

| (5) | The target for the general government balance in 2009 is a deficit of 1,7 % of GDP, which compares with a deficit projection of 3,2 % of GDP in the Commission services' January interim forecast. Fiscal policy in the short term is geared towards restoring market confidence and limiting the divergence from the Treaty reference value, given the authorities' euro adoption objective. Expenditure growth in the original 2009 budget was expected to exceed nominal GDP growth, in particular due to an increase in pensions as a result of the indexation formula in force. The adoption of a supplementary restrictive budget in February 2009 targets to bring expenditure growth broadly in line with the projected nominal economic growth. The budgetary strategy for 2009 also comprises some revenue-increasing measures and postponement until 2010 of previously planned tax cuts. Overall, the 2009 fiscal stance as measured by the change in the structural (cyclically-adjusted net of one-off and other temporary measures) balance is expected to be restrictive, including the supplementary budget adopted in February 2009 providing for fiscal tightening above 3 % of GDP in 2009 according to the estimates of the national authorities. |
| --- | --- |

(5)

The target for the general government balance in 2009 is a deficit of 1,7 % of GDP, which compares with a deficit projection of 3,2 % of GDP in the Commission services' January interim forecast. Fiscal policy in the short term is geared towards restoring market confidence and limiting the divergence from the Treaty reference value, given the authorities' euro adoption objective. Expenditure growth in the original 2009 budget was expected to exceed nominal GDP growth, in particular due to an increase in pensions as a result of the indexation formula in force. The adoption of a supplementary restrictive budget in February 2009 targets to bring expenditure growth broadly in line with the projected nominal economic growth. The budgetary strategy for 2009 also comprises some revenue-increasing measures and postponement until 2010 of previously planned tax cuts. Overall, the 2009 fiscal stance as measured by the change in the structural (cyclically-adjusted net of one-off and other temporary measures) balance is expected to be restrictive, including the supplementary budget adopted in February 2009 providing for fiscal tightening above 3 % of GDP in 2009 according to the estimates of the national authorities.

| (6) | The medium-term budgetary strategy of the programme is to achieve a structural surplus, thus overachieving the current medium-term objective (MTO), defined as a balanced budget in structural terms (3). The general government headline deficit is expected to narrow to 1,0 % of GDP in 2010 and to turn to surpluses of 0,1 % of GDP in 2011 and 0,2 % of GDP in 2012. The adjustment is foreseen to be expenditure-based with expenditure growth (underpinned by unspecified measures) below that of nominal GDP in all years starting from 2010. Revenue growth is set to recover partially following the turnaround of the economy, taking into account tax cuts foreseen by existing legislation for 2010-2012. |
| --- | --- |

(6)

The medium-term budgetary strategy of the programme is to achieve a structural surplus, thus overachieving the current medium-term objective (MTO), defined as a balanced budget in structural terms (3). The general government headline deficit is expected to narrow to 1,0 % of GDP in 2010 and to turn to surpluses of 0,1 % of GDP in 2011 and 0,2 % of GDP in 2012. The adjustment is foreseen to be expenditure-based with expenditure growth (underpinned by unspecified measures) below that of nominal GDP in all years starting from 2010. Revenue growth is set to recover partially following the turnaround of the economy, taking into account tax cuts foreseen by existing legislation for 2010-2012.

| (7) | The budgetary outcomes are subject to downside risks, in particular for 2009 and 2010, as the macro-economic scenario is based on favourable growth assumptions. However, the risks are mitigated by the recent adoption of a supplementary restrictive budget. The projected return of the general government deficit to a surplus from 2011 onwards may also prove challenging, taking into account the programme's lack of information as regards the measures underpinning the expenditure-based fiscal consolidation. |
| --- | --- |

(7)

The budgetary outcomes are subject to downside risks, in particular for 2009 and 2010, as the macro-economic scenario is based on favourable growth assumptions. However, the risks are mitigated by the recent adoption of a supplementary restrictive budget. The projected return of the general government deficit to a surplus from 2011 onwards may also prove challenging, taking into account the programme's lack of information as regards the measures underpinning the expenditure-based fiscal consolidation.

| (8) | The long-term budgetary impact of ageing is among the lowest in the EU and should remain so according to the programme, even taking into account the effect of the recent change in the pension indexation rule. The current level of gross debt is very low in Estonia and maintaining sound government finances, in line with the budgetary plans over the programme period, would contribute to limiting the risks to the long-term sustainability of public finances, which are currently at low level. |
| --- | --- |

(8)

The long-term budgetary impact of ageing is among the lowest in the EU and should remain so according to the programme, even taking into account the effect of the recent change in the pension indexation rule. The current level of gross debt is very low in Estonia and maintaining sound government finances, in line with the budgetary plans over the programme period, would contribute to limiting the risks to the long-term sustainability of public finances, which are currently at low level.

| (9) | The budgetary framework is based on a rule of ex ante nominal balance or surplus of the general government. Although the rule does not have any legal underpinning, it has normally been respected in the years prior to the current downturn. In recent years, the government has adapted the implementation of the rule by better taking into account cyclical conditions of the economy, as some budgets at the peak of the cycle have been adopted with ex ante surpluses. However, the expenditure planning framework remains weak, as initial expenditure targets have systematically been raised in supplementary budgets, facilitated by higher-than-expected revenue in previous good economic times. Strengthening the medium-term expenditure framework and increasing expenditure efficiency therefore becomes particularly important in the current economic downturn and would help in mitigating the impact of less buoyant revenue on public finances. According to the convergence programme, the government intends to move towards performance and accrual-based budgeting, initially in the form of pilot projects, with a view to strengthening the medium-term budgeting process. |
| --- | --- |

(9)

The budgetary framework is based on a rule of ex ante nominal balance or surplus of the general government. Although the rule does not have any legal underpinning, it has normally been respected in the years prior to the current downturn. In recent years, the government has adapted the implementation of the rule by better taking into account cyclical conditions of the economy, as some budgets at the peak of the cycle have been adopted with ex ante surpluses. However, the expenditure planning framework remains weak, as initial expenditure targets have systematically been raised in supplementary budgets, facilitated by higher-than-expected revenue in previous good economic times. Strengthening the medium-term expenditure framework and increasing expenditure efficiency therefore becomes particularly important in the current economic downturn and would help in mitigating the impact of less buoyant revenue on public finances. According to the convergence programme, the government intends to move towards performance and accrual-based budgeting, initially in the form of pilot projects, with a view to strengthening the medium-term budgeting process.

| (10) | With a view to stabilising the financial sector, the Estonian authorities have increased the deposit guarantee coverage from the kroon equivalent of EUR 20 000 to EUR 50 000 and extended the deposit guarantee ratio to 100 %, both with effect from 9 October 2008. In addition, a package of legislative proposals to make crisis management more flexible, including by establishing fast-track procedure for State intervention, was submitted to Parliament in December 2008. |
| --- | --- |

(10)

With a view to stabilising the financial sector, the Estonian authorities have increased the deposit guarantee coverage from the kroon equivalent of EUR 20 000 to EUR 50 000 and extended the deposit guarantee ratio to 100 %, both with effect from 9 October 2008. In addition, a package of legislative proposals to make crisis management more flexible, including by establishing fast-track procedure for State intervention, was submitted to Parliament in December 2008.

| (11) | In line with the European Economic Recovery Plan (EERP) agreed in December 2008 by the European Council, Estonia, as a country facing significant external and internal imbalances, has aimed its budgetary policy at correcting such imbalances. Taking also into account risks to the budgetary outcome and the difficulty in securing new financing at acceptable conditions due to market risk aversion, the overall restrictive fiscal stance planned in 2009 and 2010 is thus an adequate response. In the context of the National Reform Programme, the Estonian authorities have enacted a number of structural reforms with neutral or limited short-term budgetary impact, in particular measures to support labour market and investment, while there has been less emphasis on measures that support industrial sectors and household purchasing power. Two measures to support the labour market are the adoption of the modernised Labour Law and an ongoing reform of the Public Service Law to raise the flexibility in the market, while increasing unemployment benefit rates and broadening the range of beneficiaries to enhance security. These measures are related to the medium-term reform agenda and the country-specific recommendation proposed by the Commission on 28 January 2009 under the Lisbon Strategy for Growth and Jobs. |
| --- | --- |

(11)

In line with the European Economic Recovery Plan (EERP) agreed in December 2008 by the European Council, Estonia, as a country facing significant external and internal imbalances, has aimed its budgetary policy at correcting such imbalances. Taking also into account risks to the budgetary outcome and the difficulty in securing new financing at acceptable conditions due to market risk aversion, the overall restrictive fiscal stance planned in 2009 and 2010 is thus an adequate response. In the context of the National Reform Programme, the Estonian authorities have enacted a number of structural reforms with neutral or limited short-term budgetary impact, in particular measures to support labour market and investment, while there has been less emphasis on measures that support industrial sectors and household purchasing power. Two measures to support the labour market are the adoption of the modernised Labour Law and an ongoing reform of the Public Service Law to raise the flexibility in the market, while increasing unemployment benefit rates and broadening the range of beneficiaries to enhance security. These measures are related to the medium-term reform agenda and the country-specific recommendation proposed by the Commission on 28 January 2009 under the Lisbon Strategy for Growth and Jobs.

| (12) | The fiscal stance is expected to be restrictive in 2009-2011 and to turn mildly expansionary in 2012. Although the safety margin against normal cyclical fluctuations is respected in all years starting from 2009, this may become insufficient, due to the severe downturn, to prevent breaching the 3 % threshold in 2009 and 2010. However, the risks to the budgetary outcome are mitigated by the adoption of the supplementary restrictive budget in February 2009. Taking into account risks, the planned return to surplus may also not be achieved in 2011, as projected in the programme. Moreover, the adjustment should be backed by measures. In the context of Estonia's ERM II membership and the need to improve the economy's cost competitiveness, correction of previously high wage growth would be warranted. |
| --- | --- |

(12)

The fiscal stance is expected to be restrictive in 2009-2011 and to turn mildly expansionary in 2012. Although the safety margin against normal cyclical fluctuations is respected in all years starting from 2009, this may become insufficient, due to the severe downturn, to prevent breaching the 3 % threshold in 2009 and 2010. However, the risks to the budgetary outcome are mitigated by the adoption of the supplementary restrictive budget in February 2009. Taking into account risks, the planned return to surplus may also not be achieved in 2011, as projected in the programme. Moreover, the adjustment should be backed by measures. In the context of Estonia's ERM II membership and the need to improve the economy's cost competitiveness, correction of previously high wage growth would be warranted.

| (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 (4). |
| --- | --- |

(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 (4).

The overall conclusion is that Estonia, while facing a severe economic downturn following years of above-potential economic growth, is planning a restrictive fiscal stance from 2009 until 2011 which is an appropriate response in light of the existing imbalances. The economic downturn is being aggravated by the global financial crisis and subdued external demand. Weakened cost competitiveness, in particular due to the prolonged period of wage growth above that of productivity, also hinders the return to a sustainable growth path. The general government balance deteriorated considerably in 2008 and turned to deficit, following six years of surpluses. According to the programme the general government is expected to be in deficit also in 2009 and 2010, with the deficit gradually declining. Taking into account macro-economic risks and the lack of information on expenditure-based consolidation in 2010, the budgetary outcomes are subject to downside risks, with the headline deficit possibly exceeding the 3 % threshold in 2009 and 2010. However, the risks to the budgetary outcome are mitigated by the adoption of the supplementary restrictive budget in February 2009.

In view of the above assessment and also given the need to ensure sustainable convergence and a smooth participation in ERM II, Estonia is invited to:

| (i) | implement the consolidation of public finances in the short term, ensure keeping the general government deficit below 3 % of GDP and take necessary measures to underpin the consolidation in the medium term; |
| --- | --- |

(i)

implement the consolidation of public finances in the short term, ensure keeping the general government deficit below 3 % of GDP and take necessary measures to underpin the consolidation in the medium term;

| (ii) | implement prudent public sector wage policies to support the adjustment of the economy and to strengthen competitiveness; |
| --- | --- |

(ii)

implement prudent public sector wage policies to support the adjustment of the economy and to strengthen competitiveness;

| (iii) | reinforce the medium-term budgetary framework, particularly by improving expenditure planning and efficiency. |
| --- | --- |

(iii)

reinforce the medium-term budgetary framework, particularly by improving expenditure planning and efficiency.

Comparison of key macro-economic and budgetary projections

| | | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Real GDP
  (% change) | CP Nov 2008 | 6,3 | – 2,2 | – 3,5 | 2,6 | 4,8 | 5,0 |
| COM Jan 2009 | 6,3 | – 2,4 | – 4,7 | 1,2 | n.a. | n.a. |
| CP Nov 2007 | 7,4 | 5,2 | 6,1 | 6,7 | 7,0 | n.a. |
| HICP inflation
  (%) | CP Nov 2008 | 6,7 | 10,6 | 4,2 | 2,8 | 3,0 | 3,2 |
| COM Jan 2009 | 6,7 | 10,6 | 3,2 | 2,7 | n.a. | n.a. |
| CP Nov 2007 | 6,6 | 8,6 | 5,6 | 3,6 | 3,5 | n.a. |
| Output gap (5)

  (% of potential GDP) | CP Nov 2008 | 8,0 | 0,9 | – 5,7 | – 5,9 | – 3,9 | – 1,7 |
| COM Jan 2009 (6) | 9,0 | 2,1 | – 5,4 | – 6,4 | n.a. | n.a. |
| CP Nov 2007 | 2,7 | 0,1 | – 1,2 | – 1,5 | – 1,3 | n.a. |
| Net lending/borrowing vis-à-vis the rest of the world
  (% of GDP) | CP Nov 2008 | – 16,9 | – 10,5 | – 5,1 | – 5,0 | – 4,7 | – 4,7 |
| COM Jan 2009 | – 17,1 | – 8,8 | – 4,2 | – 2,6 | n.a. | n.a. |
| CP Nov 2007 | – 14,0 | – 9,9 | – 8,2 | – 7,8 | – 7,4 | n.a. |
| General government revenue
  (% of GDP) | CP Nov 2008 | 38,2 | 36,2 | 38,9 | 37,8 | 36,5 | 35,2 |
| COM Jan 2009 | 38,2 | 36,5 | 38,2 | 38,4 | n.a. | n.a. |
| CP Nov 2007 | 37,2 | 38,2 | 38,2 | 37,4 | 36,3 | n.a. |
| General government expenditure
  (% of GDP) | CP Nov 2008 | 35,5 | 38,2 | 40,6 | 38,8 | 36,4 | 35,0 |
| COM Jan 2009 | 35,5 | 38,5 | 41,4 | 41,6 | n.a. | n.a. |
| CP Nov 2007 | 34,6 | 36,9 | 37,2 | 36,5 | 35,5 | n.a. |
| General government balance
  (% of GDP) | CP Nov 2008 | 2,7 | – 1,9 | – 1,7 | – 1,0 | 0,1 | 0,2 |
| COM Jan 2009 | 2,7 | – 2,0 | – 3,2 | – 3,2 | n.a. | n.a. |
| CP Nov 2007 | 2,6 | 1,3 | 1,0 | 0,9 | 0,8 | n.a. |
| Primary balance
  (% of GDP) | CP Nov 2008 | 2,9 | – 1,8 | – 1,5 | – 0,8 | 0,3 | 0,4 |
| COM Jan 2009 | 2,9 | – 1,8 | – 3,0 | – 2,9 | n.a. | n.a. |
| CP Nov 2007 | 2,7 | 1,4 | 1,1 | 1,0 | 0,8 | n.a. |
| Cyclically-adjusted balance (5)

  (% of GDP) | CP Nov 2008 | 0,3 | – 2,2 | 0,0 | 0,8 | 1,3 | 0,7 |
| COM Jan 2009 | – 0,1 | – 2,6 | – 1,6 | – 1,3 | n.a. | n.a. |
| CP Nov 2007 | 1,8 | 1,3 | 1,4 | 1,3 | 1,2 | n.a. |
| Structural balance (7)

  (% of GDP) | CP Nov 2008 | – 0,1 | – 2,4 | – 0,1 | 0,4 | 1,2 | 0,7 |
| COM Jan 2009 | – 0,4 | – 2,8 | – 1,6 | – 1,3 | n.a. | n.a. |
| CP Nov 2007 | 1,2 | 0,8 | 1,4 | 1,3 | 1,2 | n.a. |
| Government gross debt
  (% of GDP) | CP Nov 2008 | 3,5 | 3,7 | 3,7 | 3,5 | 3,0 | 2,8 |
| COM Jan 2009 | 3,5 | 4,3 | 6,1 | 7,6 | n.a. | n.a. |
| CP Nov 2007 | 2,7 | 2,3 | 2,0 | 1,8 | 1,6 | n.a. |
| Convergence programme (CP); Commission services' January 2009 interim forecasts (COM); Commission services' calculations. |

2007

2008

2009

2010

2011

2012

Real GDP

(% change)

CP Nov 2008

6,3

– 2,2

– 3,5

2,6

4,8

5,0

COM Jan 2009

6,3

– 2,4

– 4,7

1,2

n.a.

n.a.

CP Nov 2007

7,4

5,2

6,1

6,7

7,0

n.a.

HICP inflation

(%)

CP Nov 2008

6,7

10,6

4,2

2,8

3,0

3,2

COM Jan 2009

6,7

10,6

3,2

2,7

n.a.

n.a.

CP Nov 2007

6,6

8,6

5,6

3,6

3,5

n.a.

Output gap (5)

(% of potential GDP)

CP Nov 2008

8,0

0,9

– 5,7

– 5,9

– 3,9

– 1,7

COM Jan 2009 (6)

9,0

2,1

– 5,4

– 6,4

n.a.

n.a.

CP Nov 2007

2,7

0,1

– 1,2

– 1,5

– 1,3

n.a.

Net lending/borrowing vis-à-vis the rest of the world

(% of GDP)

CP Nov 2008

– 16,9

– 10,5

– 5,1

– 5,0

– 4,7

– 4,7

COM Jan 2009

– 17,1

– 8,8

– 4,2

– 2,6

n.a.

n.a.

CP Nov 2007

– 14,0

– 9,9

– 8,2

– 7,8

– 7,4

n.a.

General government revenue

(% of GDP)

CP Nov 2008

38,2

36,2

38,9

37,8

36,5

35,2

COM Jan 2009

38,2

36,5

38,2

38,4

n.a.

n.a.

CP Nov 2007

37,2

38,2

38,2

37,4

36,3

n.a.

General government expenditure

(% of GDP)

CP Nov 2008

35,5

38,2

40,6

38,8

36,4

35,0

COM Jan 2009

35,5

38,5

41,4

41,6

n.a.

n.a.

CP Nov 2007

34,6

36,9

37,2

36,5

35,5

n.a.

General government balance

(% of GDP)

CP Nov 2008

2,7

– 1,9

– 1,7

– 1,0

0,1

0,2

COM Jan 2009

2,7

– 2,0

– 3,2

– 3,2

n.a.

n.a.

CP Nov 2007

2,6

1,3

1,0

0,9

0,8

n.a.

Primary balance

(% of GDP)

CP Nov 2008

2,9

– 1,8

– 1,5

– 0,8

0,3

0,4

COM Jan 2009

2,9

– 1,8

– 3,0

– 2,9

n.a.

n.a.

CP Nov 2007

2,7

1,4

1,1

1,0

0,8

n.a.

Cyclically-adjusted balance (5)

(% of GDP)

CP Nov 2008

0,3

– 2,2

0,0

0,8

1,3

0,7

COM Jan 2009

– 0,1

– 2,6

– 1,6

– 1,3

n.a.

n.a.

CP Nov 2007

1,8

1,3

1,4

1,3

1,2

n.a.

Structural balance (7)

(% of GDP)

CP Nov 2008

– 0,1

– 2,4

– 0,1

0,4

1,2

0,7

COM Jan 2009

– 0,4

– 2,8

– 1,6

– 1,3

n.a.

n.a.

CP Nov 2007

1,2

0,8

1,4

1,3

1,2

n.a.

Government gross debt

(% of GDP)

CP Nov 2008

3,5

3,7

3,7

3,5

3,0

2,8

COM Jan 2009

3,5

4,3

6,1

7,6

n.a.

n.a.

CP Nov 2007

2,7

2,3

2,0

1,8

1,6

n.a.

Convergence programme (CP); Commission services' January 2009 interim forecasts (COM); Commission services' calculations.

---

(1)  OJ L 209, 2.8.1997, p. 1. The documents referred to in this text can be found at the following website:

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

(2)  The assessment notably takes into account the Commission services' January 2009 interim forecast, but also other information that has become available since then.

(3)  The government has announced that it will revise and specify the MTO implying a surplus in structural terms.

(4)  In particular, nominal effective exchange rate assumptions are missing. In addition, assumptions for euro area interest rates are used, although this can be justified by the absence of sufficiently representative EEK interest rate indicators.

(5)  Output gaps and cyclically-adjusted balances from the programmes as recalculated by Commission services on the basis of the information in the programmes.

(6)  Based on estimated potential growth of 4,6 %, 4,1 %, 3,7 % and 3,5 % respectively in the period 2007-2010.

(7)  Cyclically-adjusted balance excluding one-offs and other temporary measures. One-offs and other temporary measures are 0,4 % of GDP in 2007, 0,2 % in 2008, 0,1 % in 2009, 0,4 % in 2010 and 0,1 % in 2011; all deficit-reducing according to the most recent programme. One-offs for the period 2009-2011 are not considered to be of a one-off nature according to the Commission services' January interim forecast.

Source:

Convergence programme (CP); Commission services' January 2009 interim forecasts (COM); Commission services' calculations.

---

Commission

| 18.3.2009 | EN | Official Journal of the European Union | C 63/11 |
| --- | --- | --- | --- |

18.3.2009

EN

Official Journal of the European Union

C 63/11

---

Notice regarding the adaptation in line with inflation of certain amounts laid down in the Reinsurance Directive

(2009/C 63/03)

In accordance with Article 41 of Directive 2005/68/EC (1) on reinsurance and amending Council Directives 73/239/EEC, 92/49/EEC as well as Directives 98/78/EC and 2002/83/EC, the amounts laid down in euro in Article 40(2) were reviewed in 2008 in order to take account of changes in the European index of consumer prices comprising all Member States as published by Eurostat. As a result of the review, the amounts laid down in euro are increased from EUR 3 000 000 to EUR 3 200 000 and from EUR 1 000 000 to EUR 1 100 000. The Commission Services have informed the European Parliament and the Council of the review and the adapted amounts.

---

(1)  OJ L 323, 9.12.2005, p. 1.

---

II Information

INFORMATION FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Commission

| 18.3.2009 | EN | Official Journal of the European Union | C 63/12 |
| --- | --- | --- | --- |

18.3.2009

EN

Official Journal of the European Union

C 63/12

---

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

Cases where the Commission raises no objections

(2009/C 63/04)

| Date of adoption of the decision | 28.1.2009 |
| --- | --- |
| Reference number of the aid | NN 72/07 (ex N 871/06) |
| Member State | France |
| Region | — |
| Title (and/or name of the beneficiary) | Aide à la restructuration de l'entreprise SA Tilly-Sabco |
| Legal basis | Circulaire du ministre de l'agriculture et de la pêche DPEI/SDEPA/C2006-4019 SG/DAFL/SDFA/C2006-1503 du 15 mars 2006 (point 4) |
| Type of measure | Individual aid |
| Objective | Restructuring aid |
| Form of aid | Direct grant resulting from transformation of the repayable advance disbursed under rescue aid N 273/06 |
| Budget | EUR 3,6 million |
| Intensity | — |
| Duration | One-off grant |
| Economic sectors | Agriculture |
| Name and address of the granting authority | Office national interprofessionnel de l'élevage et de ses productions |
| 80, avenue des Terroirs de France |
| 75607 Paris Cedex 12 |
| FRANCE |

Date of adoption of the decision

28.1.2009

Reference number of the aid

NN 72/07 (ex N 871/06)

Member State

France

Region

—

Title (and/or name of the beneficiary)

Aide à la restructuration de l'entreprise SA Tilly-Sabco

Legal basis

Circulaire du ministre de l'agriculture et de la pêche DPEI/SDEPA/C2006-4019 SG/DAFL/SDFA/C2006-1503 du 15 mars 2006 (point 4)

Type of measure

Individual aid

Objective

Restructuring aid

Form of aid

Direct grant resulting from transformation of the repayable advance disbursed under rescue aid N 273/06

Budget

EUR 3,6 million

Intensity

—

Duration

One-off grant

Economic sectors

Agriculture

Name and address of the granting authority

Office national interprofessionnel de l'élevage et de ses productions

80, avenue des Terroirs de France

75607 Paris Cedex 12

FRANCE

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 | 11.12.2008 |
| --- | --- |
| Reference number of the aid | NN 10/08 |
| Member State | Federal Republic of Germany |
| Region | Mecklenburg-Vorpommern |
| Title (and/or name of the beneficiary) | Tierseuchenkasse |
| Legal basis | Satzung der Tierseuchenkasse Mecklenburg-Vorpommern v. 12.1.2007 |
| Type of aid | Aid scheme |
| Objective | Prevention, avoidance and detection of animal diseases |
| Form of aid | Grant |
| Budget | Approximately EUR 3 256 900 per year |
| Intensity | Maximum 100 % |
| Duration | 1.1.2007-31.12.2013 |
| Economic sectors | Agriculture |
| Name and address of the granting authority | Tierseuchenkasse Mecklenburg-Vorpommern |
| 17033 Neubrandenburg |
| DEUTSCHLAND |

Date of adoption of the decision

11.12.2008

Reference number of the aid

NN 10/08

Member State

Federal Republic of Germany

Region

Mecklenburg-Vorpommern

Title (and/or name of the beneficiary)

Tierseuchenkasse

Legal basis

Satzung der Tierseuchenkasse Mecklenburg-Vorpommern v. 12.1.2007

Type of aid

Aid scheme

Objective

Prevention, avoidance and detection of animal diseases

Form of aid

Grant

Budget

Approximately EUR 3 256 900 per year

Intensity

Maximum 100 %

Duration

1.1.2007-31.12.2013

Economic sectors

Agriculture

Name and address of the granting authority

Tierseuchenkasse Mecklenburg-Vorpommern

17033 Neubrandenburg

DEUTSCHLAND

Other observations

—

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/

---

| 18.3.2009 | EN | Official Journal of the European Union | C 63/14 |
| --- | --- | --- | --- |

18.3.2009

EN

Official Journal of the European Union

C 63/14

---

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

Cases where the Commission raises no objections

(Text with EEA relevance)

(2009/C 63/05)

| Date of adoption of the decision | 22.12.2008 |
| --- | --- |
| Reference number of the aid | N 639/08 |
| Member State | Germany |
| Region | — |
| Title (and/or name of the beneficiary) | Garantiemaßnahme für IKB |
| Legal basis | Finanzmarktstabilisierungsfondsgesetz |
| Type of measure | Aid scheme |
| Objective | Aid to remedy serious disturbances in the economy |
| Form of aid | Guarantee |
| Budget | Overall budget: EUR 5 000 million |
| Intensity | — |
| Duration | 22.12.2008-22.6.2009 |
| Economic sectors | Financial intermediation |
| Name and address of the granting authority | Sonderfonds Finanzmarktstabilisierung (SoFFin) |
| Finanzmarkstabilisierungsanstalt |
| Taunusanlage 6 |
| 60329 Frankfurt am Main |
| DEUTSCHLAND |

Date of adoption of the decision

22.12.2008

Reference number of the aid

N 639/08

Member State

Germany

Region

—

Title (and/or name of the beneficiary)

Garantiemaßnahme für IKB

Legal basis

Finanzmarktstabilisierungsfondsgesetz

Type of measure

Aid scheme

Objective

Aid to remedy serious disturbances in the economy

Form of aid

Guarantee

Budget

Overall budget: EUR 5 000 million

Intensity

—

Duration

22.12.2008-22.6.2009

Economic sectors

Financial intermediation

Name and address of the granting authority

Sonderfonds Finanzmarktstabilisierung (SoFFin)

Finanzmarkstabilisierungsanstalt

Taunusanlage 6

60329 Frankfurt am Main

DEUTSCHLAND

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 | 27.2.2009 |
| --- | --- |
| Reference number of the aid | N 71/09 |
| Member State | United Kingdom |
| Region | — |
| Title (and/or name of the beneficiary) | Temporary aid in the form of loan guarantees |
| Legal basis | The Industrial Development Act 1982
  Regional Development Agencies Act 1998
  Science and Technology Act 1965
  Energy Act 2004
  Environmental Protection Act 1990
  Employment and Training Act 1973
  Civil Aviation Act 1982
  Local Government Act 2000
  Government of Wales Act 2006, Section 60
  Welsh Development Agency Act 1975, Section 1
  The Industrial Development (Northern Ireland) Order 1982
  The Industrial Development (Northern Ireland) Act 2002
  Article 3 of the Energy Efficiency (Northern Ireland) Order 1999
  Enterprise and New Towns (Scotland) Act 1990, as amended on 1 April 2001, by Scottish Statutory Instrument 2001 No 126
  Local Government in Scotland Act 2003, section 20 |
| Type of measure | Individual aid |
| Objective | Aid to remedy serious disturbances in the economy |
| Form of aid | Guarantee |
| Budget | Overall budget: GBP 8 000 million |
| Intensity | — |
| Duration | 1.3.2009-31.12.2010 |
| Economic sectors | All sectors |
| Name and address of the granting authority | All eligible guarantee granting authorities in UK |
| Other information | — |

Date of adoption of the decision

27.2.2009

Reference number of the aid

N 71/09

Member State

United Kingdom

Region

—

Title (and/or name of the beneficiary)

Temporary aid in the form of loan guarantees

Legal basis

The Industrial Development Act 1982

Regional Development Agencies Act 1998

Science and Technology Act 1965

Energy Act 2004

Environmental Protection Act 1990

Employment and Training Act 1973

Civil Aviation Act 1982

Local Government Act 2000

Government of Wales Act 2006, Section 60

Welsh Development Agency Act 1975, Section 1

The Industrial Development (Northern Ireland) Order 1982

The Industrial Development (Northern Ireland) Act 2002

Article 3 of the Energy Efficiency (Northern Ireland) Order 1999

Enterprise and New Towns (Scotland) Act 1990, as amended on 1 April 2001, by Scottish Statutory Instrument 2001 No 126

Local Government in Scotland Act 2003, section 20

Type of measure

Individual aid

Objective

Aid to remedy serious disturbances in the economy

Form of aid

Guarantee

Budget

Overall budget: GBP 8 000 million

Intensity

—

Duration

1.3.2009-31.12.2010

Economic sectors

All sectors

Name and address of the granting authority

All eligible guarantee granting authorities in UK

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/

---

| 18.3.2009 | EN | Official Journal of the European Union | C 63/16 |
| --- | --- | --- | --- |

18.3.2009

EN

Official Journal of the European Union

C 63/16

---

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

Cases where the Commission raises no objections

(Text with EEA relevance)

(2009/C 63/06)

| Date of adoption of the decision | 11.2.2009 |
| --- | --- |
| Reference number of the aid | N 538/08 |
| Member State | Germany |
| Region | Thüringen |
| Title (and/or name of the beneficiary) | ersol Thin Film GmbH |
| Legal basis | Investitionszulagengesetz 2007 in der Fassung der Bekanntmachung vom 23. Februar 2007 (Bundesgesetzblatt I S. 282); Investitionszulagengesetz 2010 in der Fassung der Bekanntmachung vom 7. Dezember 2008 (Bundesgesetzblatt I Nr. 56 vom 10. Dezember 2008, S. 2350) |
| Type of measure | Individual aid |
| Objective | Regional development |
| Form of aid | — |
| Budget | Overall budget: EUR 39,72 million |
| Intensity | 10,32 % |
| Duration | 2008-2011 |
| Economic sectors | Manufacturing industry |
| Name and address of the granting authority | Finanzamt Gotha |
| Reuterstraße 2A |
| 99867 Gotha |
| DEUTSCHLAND |

Date of adoption of the decision

11.2.2009

Reference number of the aid

N 538/08

Member State

Germany

Region

Thüringen

Title (and/or name of the beneficiary)

ersol Thin Film GmbH

Legal basis

Investitionszulagengesetz 2007 in der Fassung der Bekanntmachung vom 23. Februar 2007 (Bundesgesetzblatt I S. 282); Investitionszulagengesetz 2010 in der Fassung der Bekanntmachung vom 7. Dezember 2008 (Bundesgesetzblatt I Nr. 56 vom 10. Dezember 2008, S. 2350)

Type of measure

Individual aid

Objective

Regional development

Form of aid

—

Budget

Overall budget: EUR 39,72 million

Intensity

10,32 %

Duration

2008-2011

Economic sectors

Manufacturing industry

Name and address of the granting authority

Finanzamt Gotha

Reuterstraße 2A

99867 Gotha

DEUTSCHLAND

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 | 22.12.2008 |
| --- | --- |
| Reference number of the aid | N 655/08 |
| Member State | Germany |
| Region | — |
| Title (and/or name of the beneficiary) | Nord LB |
| Legal basis | — |
| Type of measure | Aid scheme |
| Objective | Aid to remedy serious disturbances in the economy |
| Form of aid | Guarantee |
| Budget | Overall budget: EUR 10 000 million |
| Intensity | — |
| Duration | 22.12.2008-22.6.2009 |
| Economic sectors | Financial intermediation |
| Name and address of the granting authority | Länder Niedersachsen und Sachsen-Anhalt |
| Other information | — |

Date of adoption of the decision

22.12.2008

Reference number of the aid

N 655/08

Member State

Germany

Region

—

Title (and/or name of the beneficiary)

Nord LB

Legal basis

—

Type of measure

Aid scheme

Objective

Aid to remedy serious disturbances in the economy

Form of aid

Guarantee

Budget

Overall budget: EUR 10 000 million

Intensity

—

Duration

22.12.2008-22.6.2009

Economic sectors

Financial intermediation

Name and address of the granting authority

Länder Niedersachsen und Sachsen-Anhalt

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/

---

IV Notices

NOTICES FROM EUROPEAN UNION INSTITUTIONS AND BODIES

Commission

| 18.3.2009 | EN | Official Journal of the European Union | C 63/18 |
| --- | --- | --- | --- |

18.3.2009

EN

Official Journal of the European Union

C 63/18

---

Euro exchange rates (1)

17 March 2009

(2009/C 63/07)

1 euro=

| | Currency | Exchange rate |
| --- | --- | --- |
| USD | US dollar | 1,2942 |
| JPY | Japanese yen | 128,10 |
| DKK | Danish krone | 7,4544 |
| GBP | Pound sterling | 0,92650 |
| SEK | Swedish krona | 11,0265 |
| CHF | Swiss franc | 1,5327 |
| ISK | Iceland króna | |
| NOK | Norwegian krone | 8,8315 |
| BGN | Bulgarian lev | 1,9558 |
| CZK | Czech koruna | 26,513 |
| EEK | Estonian kroon | 15,6466 |
| HUF | Hungarian forint | 299,68 |
| LTL | Lithuanian litas | 3,4528 |
| LVL | Latvian lats | 0,7075 |
| PLN | Polish zloty | 4,4900 |
| RON | Romanian leu | 4,2968 |
| TRY | Turkish lira | 2,2111 |
| AUD | Australian dollar | 1,9624 |
| CAD | Canadian dollar | 1,6495 |
| HKD | Hong Kong dollar | 10,0327 |
| NZD | New Zealand dollar | 2,4410 |
| SGD | Singapore dollar | 1,9839 |
| KRW | South Korean won | 1 835,14 |
| ZAR | South African rand | 12,9218 |
| CNY | Chinese yuan renminbi | 8,8487 |
| HRK | Croatian kuna | 7,4543 |
| IDR | Indonesian rupiah | 15 530,40 |
| MYR | Malaysian ringgit | 4,7562 |
| PHP | Philippine peso | 62,410 |
| RUB | Russian rouble | 44,7465 |
| THB | Thai baht | 46,365 |
| BRL | Brazilian real | 2,9523 |
| MXN | Mexican peso | 18,3950 |
| INR | Indian rupee | 66,5350 |

Currency

Exchange rate

USD

US dollar

1,2942

JPY

Japanese yen

128,10

DKK

Danish krone

7,4544

GBP

Pound sterling

0,92650

SEK

Swedish krona

11,0265

CHF

Swiss franc

1,5327

ISK

Iceland króna

NOK

Norwegian krone

8,8315

BGN

Bulgarian lev

1,9558

CZK

Czech koruna

26,513

EEK

Estonian kroon

15,6466

HUF

Hungarian forint

299,68

LTL

Lithuanian litas

3,4528

LVL

Latvian lats

0,7075

PLN

Polish zloty

4,4900

RON

Romanian leu

4,2968

TRY

Turkish lira

2,2111

AUD

Australian dollar

1,9624

CAD

Canadian dollar

1,6495

HKD

Hong Kong dollar

10,0327

NZD

New Zealand dollar

2,4410

SGD

Singapore dollar

1,9839

KRW

South Korean won

1 835,14

ZAR

South African rand

12,9218

CNY

Chinese yuan renminbi

8,8487

HRK

Croatian kuna

7,4543

IDR

Indonesian rupiah

15 530,40

MYR

Malaysian ringgit

4,7562

PHP

Philippine peso

62,410

RUB

Russian rouble

44,7465

THB

Thai baht

46,365

BRL

Brazilian real

2,9523

MXN

Mexican peso

18,3950

INR

Indian rupee

66,5350

---

(1)

Source: reference exchange rate published by the ECB.

---

V Announcements

ADMINISTRATIVE PROCEDURES

Commission

| 18.3.2009 | EN | Official Journal of the European Union | C 63/19 |
| --- | --- | --- | --- |

18.3.2009

EN

Official Journal of the European Union

C 63/19

---

Calls for proposals under the 2009 work programme ‘People’ of the 7th EC Framework Programme for Research, Technological Development and Demonstration Activities

(2009/C 63/08)

Notice is hereby given of the launch of calls for proposals under the 2009 work programme ‘People’ of the 7th Framework Programme of the European Community for Research, Technological Development and Demonstration Activities (2007 to 2013).

Proposals are invited for the following calls. Calls deadline and budget are given in the call text, which is published on the CORDIS website.

‘People’ Specific Programme:

| Call Title | Call Identifier |
| --- | --- |
| Intra-European Fellowships | FP7-PEOPLE-2009-IEF |
| International Incoming Fellowships | FP7-PEOPLE-2009-IIF |
| International Outgoing Fellowships | FP7-PEOPLE-2009-IOF |

Call Title

Call Identifier

Intra-European Fellowships

FP7-PEOPLE-2009-IEF

International Incoming Fellowships

FP7-PEOPLE-2009-IIF

International Outgoing Fellowships

FP7-PEOPLE-2009-IOF

These calls for proposals relate to the 2009 work programme adopted by Commission Decision C(2008) 4483 of 22 August 2008.

Information on the modalities of the calls, the work programme, and the guide for applicants on how to submit proposals is available through the CORDIS website: http://cordis.europa.eu/fp7/calls/

---

PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMMON COMMERCIAL POLICY

Commission

| 18.3.2009 | EN | Official Journal of the European Union | C 63/20 |
| --- | --- | --- | --- |

18.3.2009

EN

Official Journal of the European Union

C 63/20

---

Notice of initiation of an anti-dumping proceeding concerning imports of certain cargo scanning systems originating in the People's Republic of China

(2009/C 63/09)

The Commission has received a complaint pursuant to Article 5 of Council Regulation (EC) No 384/96 on protection against dumped imports from countries not members of the European Community (‘the basic Regulation’) (1), alleging that imports of certain cargo scanning systems, originating in the People's Republic of China (‘the country concerned’), are being dumped and are thereby causing material injury to the Community industry.

1.   Complaint

The complaint was lodged on 2 February 2009 by Smiths Detection Group Limited (‘the complainant’) representing a major proportion, in this case more than 80 %, of the total Community production of certain cargo scanning systems.

2.   Product

The product allegedly being dumped is systems for scanning of cargo, based on the use of neutron technology or based on the use of X-rays with an X-ray source of 250 KeV or more or based on the use of alpha, beta or gamma radiations falling within CN codes ex 9022 19 00, ex 9022 29 00, ex 9027 80 17 and ex 9030 10 00 and motor vehicles equipped with such systems falling within CN code ex 8705 90 90 originating in the People's Republic of China (‘the product concerned’). These CN codes are only given for information.

3.   Allegation of dumping

In view of the provisions of Article 2(7) of the basic Regulation, the complainant established normal value for the People's Republic of China on the basis of the price and constructed normal value in a market economy country, which is mentioned in point 5.1(c). The allegation of dumping is based on a comparison of normal value, thus calculated, with the export prices of the product concerned when sold for export to the Community.

On this basis, the dumping margin calculated is significant.

4.   Allegation of injury

The complainant has provided evidence that imports of the product concerned from the People's Republic of China have increased overall in terms of market share.

It is alleged that the volumes and the prices of the imported product concerned have, among other consequences, had a negative impact on the market share held, the quantities sold and the level of the prices charged by the Community industry, resulting in substantial adverse effects on the overall performance, and in particular on the profitability of the Community industry.

5.   Procedure

Having determined, after consulting the Advisory Committee, that the complaint has been lodged by or on behalf of the Community industry and that there is sufficient evidence to justify the initiation of a proceeding, the Commission hereby initiates an investigation pursuant to Article 5 of the basic Regulation.

5.1.   Procedure for the determination of dumping and injury

The investigation will determine whether the product concerned originating in the People's Republic of China is being dumped and whether this dumping has caused injury.

(a)   Questionnaires

In order to obtain the information it deems necessary for its investigation, the Commission will send questionnaires to the Community industry and to any other known producers in the Community, to the exporters/producers in the People's Republic of China, to any known importers/users and to the authorities of the exporting country concerned.

(b)   Collection of information and holding of hearings

All interested parties are hereby invited to make their views known, submit information other than questionnaire replies and to provide supporting evidence. This information and supporting evidence has to reach the Commission within the time limit set in point 6(a)(ii).

Furthermore, the Commission may hear interested parties, provided that they make a request showing that there are particular reasons why they should be heard. This request must be made within the time limit set in point 6(a)(iii).

(c)   Selection of the market economy country

In accordance with Article 2(7)(a) of the basic Regulation, it is envisaged to choose the United States of America as an appropriate market economy country for the purpose of establishing normal value in respect of the People's Republic of China. Interested parties are hereby invited to comment on the appropriateness of this choice within the specific time limit set in point 6(b).

(d)   Market economy treatment or individual treatment claims

For those exporters/producers in the People's Republic of China who claim and provide sufficient evidence that they operate under market economy conditions, i.e. that they meet the criteria laid down in Article 2(7)(c) of the basic Regulation, normal value will be determined in accordance with Article 2(7)(b) of the basic Regulation. Exporters/producers intending to submit duly substantiated claims must do so within the specific time limit set in point 6(c). The Commission will send claim forms to all exporters/producers in the People's Republic of China who have been named in the complaint as well as to the authorities of the People's Republic of China. This claim form may also be used by the applicant to claim individual treatment, i.e. that it meets the criteria laid down in Article 9(5) of the basic Regulation.

5.2.   Procedure for assessment of Community interest

In accordance with Article 21 of the basic Regulation and in the event that the allegations of dumping and injury caused thereby are substantiated, a decision will be reached as to whether the adoption of anti-dumping measures would not be against the Community interest. For this reason the Commission may send questionnaires to the known Community industry, importers, their representative associations, representative users and representative consumer organisations. Such parties, including those not known to the Commission, provided that they prove that there is an objective link between their activity and the product concerned, may, within the general time limits set in point 6(a)(ii), make themselves known and provide the Commission with information. The parties which have acted in conformity with the preceding sentence may request a hearing setting the particular reasons why they should be heard within the time limit set in point 6(a)(iii). It should be noted that any information submitted pursuant to Article 21 of the basic Regulation will only be taken into account if supported by factual evidence at the time of submission.

6.   Time limits

(a)   General time limits

(i)   For parties to request a questionnaire or other claim forms

All interested parties should request a questionnaire or other claim forms as soon as possible, but not later than 10 days after the publication of this notice in the Official Journal of the European Union.

(ii)   For parties to make themselves known, to submit questionnaire replies and any other information

All interested parties, if their representations are to be taken into account during the investigation, must make themselves known by contacting the Commission, present their views and submit questionnaire replies or any other information within 40 days of the date of publication of this notice in the Official Journal of the European Union, unless otherwise specified. Attention is drawn to the fact that the exercise of most procedural rights set out in the basic Regulation depends on the party's making itself known within the aforementioned period.

(iii)   Hearings

All interested parties may also apply to be heard by the Commission within the same 40 day time limit.

(b)   Specific time limit for the selection of the market economy country

Parties to the investigation may wish to comment on the appropriateness of the United States of America which, as mentioned in point 5.1(c), is envisaged as a market-economy country for the purpose of establishing normal value in respect of the People's Republic of China. These comments must reach the Commission within 10 days of the date of publication of this notice in the Official Journal of the European Union.

(c)   Specific time limit for submission of claims for market economy status and/or for individual treatment

Duly substantiated claims for market economy status (as mentioned in point 5.1(d)) and/or for individual treatment pursuant to Article 9(5) of the basic Regulation, must reach the Commission within 15 days of the date of publication of this notice in the Official Journal of the European Union.

7.   Written submissions, questionnaire replies and correspondence

All submissions and requests made by interested parties must be made in writing (not in electronic format, unless otherwise specified and must indicate the name, address, e-mail address, telephone and fax numbers of the interested party). All written submissions, including the information requested in this notice, questionnaire replies and correspondence provided by interested parties on a confidential basis shall be labelled as ‘Limited’ (2) and, in accordance with Article 19(2) of the basic Regulation, shall be accompanied by a non-confidential version, which will be labelled ‘For inspection by interested parties’.

Commission address for correspondence:

| European Commission |
| --- |
| Directorate General for Trade |
| Directorate H |
| Office: N-105 04/092 |
| 1049 Bruxelles/Brussel |
| BELGIQUE/BELGIË |
| Fax +32 22956505 |

European Commission

Directorate General for Trade

Directorate H

Office: N-105 04/092

1049 Bruxelles/Brussel

BELGIQUE/BELGIË

Fax +32 22956505

8.   Non-cooperation

In cases in which any interested party refuses access to or does not provide the necessary information within the time limits, or significantly impedes the investigation, provisional or final findings, affirmative or negative, may be made in accordance with Article 18 of the basic Regulation, on the basis of the facts available.

Where it is found that any interested party has supplied false or misleading information, the information shall be disregarded and use may be made of the facts available. If an interested party does not cooperate or cooperates only partially and findings are therefore based on facts available in accordance with Article 18 of the basic Regulation, the result may be less favourable to that party than if it had cooperated.

9.   Schedule of the investigation

The investigation will be concluded, according to Article 6(9) of the basic Regulation within 15 months of the date of the publication of this notice in the Official Journal of the European Union. According to Article 7(1) of the basic Regulation, provisional measures may be imposed no later than 9 months from the publication of this notice in the Official Journal of the European Union.

10.   Processing of personal data

It is noted that any personal data collected in this investigation will be treated in accordance with Regulation (EC) No 45/2001 of the European Parliament and of the Council on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (3).

11.   Hearing Officer

It is also noted that if interested parties consider that they are encountering difficulties in the exercise of their rights of defence, they may request the intervention of the Hearing Officer of DG Trade. He acts as an interface between the interested parties and the Commission services, offering, where necessary mediation on procedural matters affecting the protection of their interests in this proceeding, in particular, with regard to issues concerning access to file, confidentiality, extension of time limits and the treatment of written and/or oral submission of views. For further information and contact details interested parties may consult the Hearing Officer's web pages of the website of DG Trade (http://ec.europa.eu/trade).

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(1)  OJ L 56, 6.3.1996, p. 1.

(2)  This means that the document is for internal use only. It is protected pursuant to Article 4 of Regulation (EC) No 1049/2001 of the European Parliament and of the Council regarding public access to European Parliament, Council and Commission documents (OJ L 145, 31.5.2001, p. 43). It is a confidential document pursuant to Article 19 of the basic Regulation and Article 6 of the WTO Agreement on Implementation of Article VI of the GATT 1994 (Anti-dumping Agreement).

(3)  OJ L 8, 12.1.2001, p. 1.

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PROCEDURES RELATING TO THE IMPLEMENTATION OF THE COMPETITION POLICY

Commission

| 18.3.2009 | EN | Official Journal of the European Union | C 63/23 |
| --- | --- | --- | --- |

18.3.2009

EN

Official Journal of the European Union

C 63/23

---

Communication from the Minister for Economic Affairs of the Kingdom of the Netherlands pursuant to Article 3(2) of Directive 94/22/EC of the European Parliament and of the Council on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons

(2009/C 63/10)

The Minister for Economic Affairs hereby gives notice that an application has been received for authorisation to prospect for hydrocarbons in an area in the provinces of Flevoland, Friesland and Overijssel, where B-C coincides with the boundary of the Gorredijk extraction authorisation, C-D-E-F-G coincides with the boundary of the Steenwijk extraction authorisation and G-H-I coincides with the boundary of the Schoonebeek extraction authorisation.

The coordinates of the area in question are as follows:

| X | Y | |
| --- | --- | --- |
| 169310,00 | 540380,00 | A |
| 172746,50 | 545447,70 | B |
| 191011,06 | 542944,63 | C |
| 191014,60 | 536077,60 | D |
| 194993,70 | 536115,50 | E |
| 195000,90 | 535125,60 | F |
| 197154,31 | 535082,00 | G |
| 196904,99 | 521474,81 | H |
| 204982,97 | 512000,00 | I |
| 185485,00 | 512000,00 | J |
| 185485,00 | 513404,00 | K |
| 173675,00 | 513404,00 | L |
| 168787,74 | 519217,28 | M |
| 168859,85 | 530854,87 | N |
| 173400,00 | 538260,00 | O |
| 177000,00 | 538700,00 | P |
| 176816,91 | 539788,00 | Q |
| 173200,00 | 539600,00 | R |
| 172400,00 | 541400,00 | S |
| 170500,00 | 540400,00 | T |

X

Y

169310,00

540380,00

A

172746,50

545447,70

B

191011,06

542944,63

C

191014,60

536077,60

D

194993,70

536115,50

E

195000,90

535125,60

F

197154,31

535082,00

G

196904,99

521474,81

H

204982,97

512000,00

I

185485,00

512000,00

J

185485,00

513404,00

K

173675,00

513404,00

L

168787,74

519217,28

M

168859,85

530854,87

N

173400,00

538260,00

O

177000,00

538700,00

P

176816,91

539788,00

Q

173200,00

539600,00

R

172400,00

541400,00

S

170500,00

540400,00

T

The coordinates are expressed in accordance with the national triangulation system.

The area in respect of which the application is made has a surface area of 818,6 km2.

With reference to the Directive mentioned in the introduction and Article 15 of the Mining Act (Mijnbouwwet) (Bulletin of Acts and Decrees (Staatsblad) 2002, No 542), the Minister for Economic Affairs hereby invites interested parties to submit a competing application for authorisation to prospect for hydrocarbons in the area in question.

The Minister for Economic Affairs is the competent authority for the granting of authorisations. The criteria, conditions and requirements referred to in Articles 5(1), 5(2) and 6(2) of the abovementioned Directive are set out in the Mining Act (Bulletin of Acts and Decrees 2002, No 542).

Applications may be submitted during the 13 weeks following the publication of this notice in the Official Journal of the European Union and should be sent to:

| De Minister van Economische Zaken |
| --- |
| ter attentie van J.C. De Groot, directeur Energiemarkt |
| ALP/562 |
| Postbus 20101 |
| 2500 EC Den Haag |
| NEDERLAND |

De Minister van Economische Zaken

ter attentie van J.C. De Groot, directeur Energiemarkt

ALP/562

Postbus 20101

2500 EC Den Haag

NEDERLAND

Applications received after this period will not be considered.

A decision on the applications will be taken not later than 12 months after this period has expired.

Further information can be obtained from the following telephone number: +31 703797382 (contact person: P.C. de Regt).

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