# Official Journal L 219/2015

| | ISSN 1977-0677 |
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| Official Journal
  of the European Union | L 219 |
| | |
| English edition | Legislation | Volume 5820 August 2015 |

ISSN 1977-0677

Official Journal

of the European Union

L 219

English edition

Legislation

Volume 5820 August 2015

---

| Contents | | II   Non-legislative acts | page |
| --- | --- | --- | --- |
| | | REGULATIONS |
| | * | Commission Implementing Regulation (EU) 2015/1407 of 19 August 2015 amending Implementing Regulation (EU) No 170/2013 laying down transitional measures in the sugar sector by reason of the accession of Croatia | 1 |
| | * | Commission Implementing Regulation (EU) 2015/1408 of 19 August 2015 concerning the authorisation of DL-methionyl-DL-methionine as a feed additive for fish and crustaceans (
  1
  ) | 3 |
| | | Commission Implementing Regulation (EU) 2015/1409 of 19 August 2015 establishing the standard import values for determining the entry price of certain fruit and vegetables | 6 |
| | | DECISIONS |
| | * | Council Decision (EU) 2015/1410 of 19 August 2015 giving notice to Greece to take measures for the deficit reduction judged necessary to remedy the situation of excessive deficit | 8 |
| | * | Council Implementing Decision (EU) 2015/1411 of 19 August 2015 approving the macroeconomic adjustment programme of Greece | 12 |
| | | ACTS ADOPTED BY BODIES CREATED BY INTERNATIONAL AGREEMENTS |
| | * | Decision No 1 of the EU-Korea Committee on Trade in Goods of 28 May 2015 on the adoption of the rules for Tariff Rate Quota administration and implementation [2015/1412] | 17 |

Contents

II   Non-legislative acts

page

REGULATIONS

*

Commission Implementing Regulation (EU) 2015/1407 of 19 August 2015 amending Implementing Regulation (EU) No 170/2013 laying down transitional measures in the sugar sector by reason of the accession of Croatia

1

*

Commission Implementing Regulation (EU) 2015/1408 of 19 August 2015 concerning the authorisation of DL-methionyl-DL-methionine as a feed additive for fish and crustaceans (
  1
  )

1

3

Commission Implementing Regulation (EU) 2015/1409 of 19 August 2015 establishing the standard import values for determining the entry price of certain fruit and vegetables

6

DECISIONS

*

Council Decision (EU) 2015/1410 of 19 August 2015 giving notice to Greece to take measures for the deficit reduction judged necessary to remedy the situation of excessive deficit

8

*

Council Implementing Decision (EU) 2015/1411 of 19 August 2015 approving the macroeconomic adjustment programme of Greece

12

ACTS ADOPTED BY BODIES CREATED BY INTERNATIONAL AGREEMENTS

*

Decision No 1 of the EU-Korea Committee on Trade in Goods of 28 May 2015 on the adoption of the rules for Tariff Rate Quota administration and implementation [2015/1412]

17

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

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(1)   Text with EEA relevance

1

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

EN

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

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

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II Non-legislative acts

REGULATIONS

| 20.8.2015 | EN | Official Journal of the European Union | L 219/1 |
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20.8.2015

EN

Official Journal of the European Union

L 219/1

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COMMISSION IMPLEMENTING REGULATION (EU) 2015/1407

of 19 August 2015

amending Implementing Regulation (EU) No 170/2013 laying down transitional measures in the sugar sector by reason of the accession of Croatia

THE EUROPEAN COMMISSION,

Having regard to the Treaty of Accession of Croatia,

Having regard to the Act of Accession of Croatia (1), and in particular Articles 41 and 16 thereof in conjunction with point 4 of Section 3(a) of Annex IV thereto,

Whereas:

| (1) | Commission Implementing Regulation (EU) No 170/2013 (2) lays down transitional measures in the sugar sector by reason of the accession of Croatia to the Union. Section 2 of Chapter II of that Regulation deals with the determination and elimination of surplus quantities of sugar present in Croatia at the date of its accession. In particular it sets deadlines for the determination of the surplus sugar quantities, for their elimination and for the proofs of elimination to be provided by identified operators in Croatia. It also fixes reference periods to be used in the calculation of charges for Croatia if surplus sugar quantities are not eliminated. |
| --- | --- |

(1)

Commission Implementing Regulation (EU) No 170/2013 (2) lays down transitional measures in the sugar sector by reason of the accession of Croatia to the Union. Section 2 of Chapter II of that Regulation deals with the determination and elimination of surplus quantities of sugar present in Croatia at the date of its accession. In particular it sets deadlines for the determination of the surplus sugar quantities, for their elimination and for the proofs of elimination to be provided by identified operators in Croatia. It also fixes reference periods to be used in the calculation of charges for Croatia if surplus sugar quantities are not eliminated.

| (2) | Commission Implementing Regulation (EU) No 1345/2014 (3) determined the surplus quantities of sugar in Croatia stockpiled prior to its accession and which have to be eliminated from the Union market at the expense of Croatia in accordance with the deadlines set out in Implementing Regulation (EU) No 170/2013, as amended by Commission Implementing Regulation (EU) No 968/2014 (4). |
| --- | --- |

(2)

Commission Implementing Regulation (EU) No 1345/2014 (3) determined the surplus quantities of sugar in Croatia stockpiled prior to its accession and which have to be eliminated from the Union market at the expense of Croatia in accordance with the deadlines set out in Implementing Regulation (EU) No 170/2013, as amended by Commission Implementing Regulation (EU) No 968/2014 (4).

| (3) | By its letter of 19 May 2015, Croatia has informed the Commission that, while it does not question the obligation to ensure the elimination of the surplus sugar quantities, as determined by the Commission, from the market by 30 September 2015, it has experienced unforeseen procedural difficulties in the implementation of the obligation to compel the operators concerned to eliminate those surplus quantities and that additional time is needed to overcome those difficulties. It is therefore appropriate to extend the deadlines provided for by Implementing Regulation (EU) No 170/2013 by six months. |
| --- | --- |

(3)

By its letter of 19 May 2015, Croatia has informed the Commission that, while it does not question the obligation to ensure the elimination of the surplus sugar quantities, as determined by the Commission, from the market by 30 September 2015, it has experienced unforeseen procedural difficulties in the implementation of the obligation to compel the operators concerned to eliminate those surplus quantities and that additional time is needed to overcome those difficulties. It is therefore appropriate to extend the deadlines provided for by Implementing Regulation (EU) No 170/2013 by six months.

| (4) | Implementing Regulation (EU) No 170/2013 should therefore be amended accordingly. |
| --- | --- |

(4)

Implementing Regulation (EU) No 170/2013 should therefore be amended accordingly.

| (5) | The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Common Organisation of Agricultural Markets, |
| --- | --- |

(5)

The measures provided for in this Regulation are in accordance with the opinion of the Committee for the Common Organisation of Agricultural Markets,

HAS ADOPTED THIS REGULATION:

Article 1

Implementing Regulation (EU) No 170/2013 is amended as follows:

| (1) | In Article 9(1), ‘30 September 2015’ is replaced by ‘31 March 2016’; |
| --- | --- |

(1)

In Article 9(1), ‘30 September 2015’ is replaced by ‘31 March 2016’;

| (2) | Article 10 is amended as follows:






  (a) | ‘30 September 2015’ is replaced by ‘31 March 2016’; |
| --- | --- | --- |

(2)

Article 10 is amended as follows:

(a)

‘30 September 2015’ is replaced by ‘31 March 2016’;

| (b) | ‘31 May 2016’ is replaced by ‘30 November 2016’; |
| --- | --- |

(b)

‘31 May 2016’ is replaced by ‘30 November 2016’;

| (3) | Article 11 is amended as follows:






  (a) | In paragraph 1, ‘31 December 2015’ is replaced by ‘30 June 2016’; |
| --- | --- | --- |

(3)

Article 11 is amended as follows:

(a)

In paragraph 1, ‘31 December 2015’ is replaced by ‘30 June 2016’;

| (b) | In the fourth subparagraph of paragraph 2, ‘30 September 2015’ is replaced by ‘31 March 2016’; |
| --- | --- |

(b)

In the fourth subparagraph of paragraph 2, ‘30 September 2015’ is replaced by ‘31 March 2016’;

| (4) | Article 12 is amended as follows:






  (a) | In paragraph 1, ‘31 January 2016’ is replaced by ‘31 July 2016’; |
| --- | --- | --- |

(4)

Article 12 is amended as follows:

(a)

In paragraph 1, ‘31 January 2016’ is replaced by ‘31 July 2016’;

| (b) | Paragraph 2 is amended as follows:






  (i) | in the first subparagraph, ‘30 September 2015’ is replaced by ‘31 March 2016’; |
| --- | --- | --- |

(b)

Paragraph 2 is amended as follows:

(i)

in the first subparagraph, ‘30 September 2015’ is replaced by ‘31 March 2016’;

| (ii) | in the second subparagraph, ‘31 May 2016’ is replaced by ‘30 November 2016’; |
| --- | --- |

(ii)

in the second subparagraph, ‘31 May 2016’ is replaced by ‘30 November 2016’;

| (iii) | in the third subparagraph, ‘31 March 2016’ is replaced by ‘30 September 2016’. |
| --- | --- |

(iii)

in the third subparagraph, ‘31 March 2016’ is replaced by ‘30 September 2016’.

Article 2

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

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

Done at Brussels, 19 August 2015.

For the Commission

The President

Jean-Claude JUNCKER

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(1)  OJ L 112, 24.4.2012, p. 10.

1

(2)  Commission Implementing Regulation (EU) No 170/2013 of 25 February 2013 laying down transitional measures in the sugar sector by reason of the accession of Croatia (OJ L 55, 27.2.2013, p. 1).

2

(3)  Commission Implementing Regulation (EU) No 1345/2014 of 17 December 2014 on the determination of surplus quantities of sugar, isoglucose and fructose in Croatia (OJ L 363, 18.12.2014, p. 80).

3

(4)  Commission Implementing Regulation (EU) No 968/2014 of 12 September 2014 amending Implementing Regulation (EU) No 170/2013 laying down transitional measures in the sugar sector by reason of the accession of Croatia (OJ L 272, 13.9.2014, p. 6).

4

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| 20.8.2015 | EN | Official Journal of the European Union | L 219/3 |
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20.8.2015

EN

Official Journal of the European Union

L 219/3

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COMMISSION IMPLEMENTING REGULATION (EU) 2015/1408

of 19 August 2015

concerning the authorisation of DL-methionyl-DL-methionine as a feed additive for fish and crustaceans

(Text with EEA relevance)

THE EUROPEAN COMMISSION,

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

Having regard to Regulation (EC) No 1831/2003 of the European Parliament and of the Council of 22 September 2003 on additives for use in animal nutrition (1), and in particular Article 9(2) thereof,

Whereas:

| (1) | Regulation (EC) No 1831/2003 provides for the authorisation of additives for use in animal nutrition and for the grounds and procedures for granting such authorisation. |
| --- | --- |

(1)

Regulation (EC) No 1831/2003 provides for the authorisation of additives for use in animal nutrition and for the grounds and procedures for granting such authorisation.

| (2) | In accordance with Article 7 of Regulation (EC) No 1831/2003 an application was submitted for the authorisation of DL-methionyl-DL-methionine as a feed additive. That application was accompanied by the particulars and documents required under Article 7(3) of Regulation (EC) No 1831/2003. |
| --- | --- |

(2)

In accordance with Article 7 of Regulation (EC) No 1831/2003 an application was submitted for the authorisation of DL-methionyl-DL-methionine as a feed additive. That application was accompanied by the particulars and documents required under Article 7(3) of Regulation (EC) No 1831/2003.

| (3) | That application concerns the authorisation of DL-methionyl-DL-methionine as a feed additive for all aquatic animal species, to be classified in the additive category ‘nutritional additives’. |
| --- | --- |

(3)

That application concerns the authorisation of DL-methionyl-DL-methionine as a feed additive for all aquatic animal species, to be classified in the additive category ‘nutritional additives’.

| (4) | The European Food Safety Authority (‘the Authority’) concluded in its opinion of 27 January 2015 (2) that, under the proposed conditions of use, DL-methionyl-DL-methionine does not have an adverse effect on animal health, human health or the environment and that it may be considered an efficacious source of the amino acid L-methionine for fish and crustacean species. The Authority does not consider that there is a need for specific requirements of post-market monitoring. It also verified the report on the method of analysis of the feed additive in feed submitted by the Reference Laboratory set up by Regulation (EC) No 1831/2003. |
| --- | --- |

(4)

The European Food Safety Authority (‘the Authority’) concluded in its opinion of 27 January 2015 (2) that, under the proposed conditions of use, DL-methionyl-DL-methionine does not have an adverse effect on animal health, human health or the environment and that it may be considered an efficacious source of the amino acid L-methionine for fish and crustacean species. The Authority does not consider that there is a need for specific requirements of post-market monitoring. It also verified the report on the method of analysis of the feed additive in feed submitted by the Reference Laboratory set up by Regulation (EC) No 1831/2003.

| (5) | The assessment of DL-methionyl-DL-methionine shows that the conditions for authorisation, provided for in Article 5 of Regulation (EC) No 1831/2003, are satisfied. Accordingly, the use of that substance should be authorised as specified in the Annex to this Regulation. |
| --- | --- |

(5)

The assessment of DL-methionyl-DL-methionine shows that the conditions for authorisation, provided for in Article 5 of Regulation (EC) No 1831/2003, are satisfied. Accordingly, the use of that substance should be authorised as specified in the Annex to this Regulation.

| (6) | The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on Plants, Animals, Food and Feed, |
| --- | --- |

(6)

The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on Plants, Animals, Food and Feed,

HAS ADOPTED THIS REGULATION:

Article 1

The substance specified in the Annex, belonging to the additive category ‘nutritional additives’ and to the functional group ‘amino acids, their salts and analogues’, is authorised as an additive in animal nutrition, subject to the conditions laid down in that Annex.

Article 2

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

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

Done at Brussels, 19 August 2015.

For the Commission

The President

Jean-Claude JUNCKER

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(1)  OJ L 268, 18.10.2003, p. 29.

1

(2)  EFSA Journal 2015;13(2):4012.

2

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ANNEX

| Identification number of the additive | Name of the holder of authorisation | Additive | Composition, chemical formula, description, analytical method. | Species or category of animal | Maximum age | Minimum content | Maximum content | Other provisions | End of period of authorisation |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| mg/kg of complete feed with a moisture content of 12 % |
| Category of nutritional additives. Functional group: amino acids, their salts and analogues |
| 3c306 | — | DL-methionyl-DL-methionine | Additive composition

  Crystalline powder from chemical synthesis with a minimum of 93 % DL-methionyl-DL-methionine, a maximum of 3 % DL-methionine and a maximum of 3 % sodium sulphate (on a dry matter basis)

  Characterisation of the active substance

  DL-methionyl-DL-methionine (2-[(2-amino-4-methylsulfanylbutanoyl)amino]-4-methylsulfanylbutanoic acid)
  Chemical formula: C10H20N2O3S2

  CAS number: 52715-93-2

  Analytical method
   (1)

  For the quantification of DL-methionyl-DL-methionine in the feed additive: reversed-phase high performance liquid chromatography coupled to photometric detection at 205 nm (RP-HPLC-UV).
  For the quantification of DL-methionyl-DL-methionine in premixtures, compound feed and feed materials: ion exchange chromatography coupled with post-column derivatisation and photometric detection at 570 nm (IEC-UV). | Fish and crustaceans | — | | | The moisture content shall be indicated on the labelling. | 9 September 2025 |

Identification number of the additive

Name of the holder of authorisation

Additive

Composition, chemical formula, description, analytical method.

Species or category of animal

Maximum age

Minimum content

Maximum content

Other provisions

End of period of authorisation

mg/kg of complete feed with a moisture content of 12 %

Category of nutritional additives. Functional group: amino acids, their salts and analogues

3c306

—

DL-methionyl-DL-methionine

Additive composition

Crystalline powder from chemical synthesis with a minimum of 93 % DL-methionyl-DL-methionine, a maximum of 3 % DL-methionine and a maximum of 3 % sodium sulphate (on a dry matter basis)

Characterisation of the active substance

DL-methionyl-DL-methionine (2-[(2-amino-4-methylsulfanylbutanoyl)amino]-4-methylsulfanylbutanoic acid)

Chemical formula: C10H20N2O3S2

CAS number: 52715-93-2

Analytical method
   (1)

For the quantification of DL-methionyl-DL-methionine in the feed additive: reversed-phase high performance liquid chromatography coupled to photometric detection at 205 nm (RP-HPLC-UV).

For the quantification of DL-methionyl-DL-methionine in premixtures, compound feed and feed materials: ion exchange chromatography coupled with post-column derivatisation and photometric detection at 570 nm (IEC-UV).

Fish and crustaceans

—

The moisture content shall be indicated on the labelling.

9 September 2025

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(1)  Details of the analytical methods are available at the following address of the Reference Laboratory: https://ec.europa.eu/jrc/en/eurl/feed-additives/evaluation-reports

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| 20.8.2015 | EN | Official Journal of the European Union | L 219/6 |
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20.8.2015

EN

Official Journal of the European Union

L 219/6

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COMMISSION IMPLEMENTING REGULATION (EU) 2015/1409

of 19 August 2015

establishing the standard import values for determining the entry price of certain fruit and vegetables

THE EUROPEAN COMMISSION,

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

Having regard to Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013 establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (1),

Having regard to Commission Implementing Regulation (EU) No 543/2011 of 7 June 2011 laying down detailed rules for the application of Council Regulation (EC) No 1234/2007 in respect of the fruit and vegetables and processed fruit and vegetables sectors (2), and in particular Article 136(1) thereof,

Whereas:

| (1) | Implementing Regulation (EU) No 543/2011 lays down, pursuant to the outcome of the Uruguay Round multilateral trade negotiations, the criteria whereby the Commission fixes the standard values for imports from third countries, in respect of the products and periods stipulated in Annex XVI, Part A thereto. |
| --- | --- |

(1)

Implementing Regulation (EU) No 543/2011 lays down, pursuant to the outcome of the Uruguay Round multilateral trade negotiations, the criteria whereby the Commission fixes the standard values for imports from third countries, in respect of the products and periods stipulated in Annex XVI, Part A thereto.

| (2) | The standard import value is calculated each working day, in accordance with Article 136(1) of Implementing Regulation (EU) No 543/2011, taking into account variable daily data. Therefore this Regulation should enter into force on the day of its publication in the Official Journal of the European Union, |
| --- | --- |

(2)

The standard import value is calculated each working day, in accordance with Article 136(1) of Implementing Regulation (EU) No 543/2011, taking into account variable daily data. Therefore this Regulation should enter into force on the day of its publication in the Official Journal of the European Union,

HAS ADOPTED THIS REGULATION:

Article 1

The standard import values referred to in Article 136 of Implementing Regulation (EU) No 543/2011 are fixed in the Annex to this Regulation.

Article 2

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

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

Done at Brussels, 19 August 2015.

For the Commission,

On behalf of the President,

Jerzy PLEWA

Director-General for Agriculture and Rural Development

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(1)  OJ L 347, 20.12.2013, p. 671.

1

(2)  OJ L 157, 15.6.2011, p. 1.

2

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ANNEX

Standard import values for determining the entry price of certain fruit and vegetables

| (EUR/100 kg) |
| --- |
| CN code | Third country code (1) | Standard import value |
| 0702 00 00 | MA | 164,5 |
| MK | 51,2 |
| ZZ | 107,9 |
| 0709 93 10 | TR | 131,0 |
| ZZ | 131,0 |
| 0805 50 10 | AR | 143,0 |
| BO | 154,5 |
| CL | 163,3 |
| UY | 153,9 |
| ZA | 153,7 |
| ZZ | 153,7 |
| 0806 10 10 | EG | 253,2 |
| IL | 390,7 |
| TR | 166,5 |
| US | 339,9 |
| ZZ | 283,1 |
| 0808 10 80 | AR | 122,9 |
| BR | 92,7 |
| CL | 124,5 |
| NZ | 146,7 |
| US | 109,0 |
| UY | 141,9 |
| ZA | 120,2 |
| ZZ | 122,6 |
| 0808 30 90 | AR | 136,4 |
| CL | 152,7 |
| CN | 85,3 |
| NZ | 108,4 |
| TR | 136,3 |
| ZA | 111,8 |
| ZZ | 121,8 |
| 0809 30 10, 0809 30 90 | MK | 69,5 |
| TR | 131,7 |
| ZZ | 100,6 |
| 0809 40 05 | BA | 44,3 |
| IL | 99,6 |
| MK | 36,8 |
| XS | 57,7 |
| ZZ | 59,6 |

(EUR/100 kg)

CN code

Third country code (1)

Standard import value

0702 00 00

MA

164,5

MK

51,2

ZZ

107,9

0709 93 10

TR

131,0

ZZ

131,0

0805 50 10

AR

143,0

BO

154,5

CL

163,3

UY

153,9

ZA

153,7

ZZ

153,7

0806 10 10

EG

253,2

IL

390,7

TR

166,5

US

339,9

ZZ

283,1

0808 10 80

AR

122,9

BR

92,7

CL

124,5

NZ

146,7

US

109,0

UY

141,9

ZA

120,2

ZZ

122,6

0808 30 90

AR

136,4

CL

152,7

CN

85,3

NZ

108,4

TR

136,3

ZA

111,8

ZZ

121,8

0809 30 10, 0809 30 90

MK

69,5

TR

131,7

ZZ

100,6

0809 40 05

BA

44,3

IL

99,6

MK

36,8

XS

57,7

ZZ

59,6

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(1)  Nomenclature of countries laid down by Commission Regulation (EU) No 1106/2012 of 27 November 2012 implementing Regulation (EC) No 471/2009 of the European Parliament and of the Council on Community statistics relating to external trade with non-member countries, as regards the update of the nomenclature of countries and territories (OJ L 328, 28.11.2012, p. 7). Code ‘ZZ’ stands for ‘of other origin’.

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DECISIONS

| 20.8.2015 | EN | Official Journal of the European Union | L 219/8 |
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20.8.2015

EN

Official Journal of the European Union

L 219/8

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COUNCIL DECISION (EU) 2015/1410

of 19 August 2015

giving notice to Greece to take measures for the deficit reduction judged necessary to remedy the situation of excessive deficit

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 126(9) thereof,

Having regard to the recommendation from the European Commission,

Whereas:

| (1) | Article 126 of the Treaty on the Functioning of the European Union (‘TFEU’) establishes that Member States are to avoid excessive government deficits and sets out the excessive deficit procedure to that effect. The Stability and Growth Pact, which in its corrective arm implements the excessive deficit procedure, provides the framework supporting government policies for a prompt return to sound budgetary positions taking account of the economic situation. |
| --- | --- |

(1)

Article 126 of the Treaty on the Functioning of the European Union (‘TFEU’) establishes that Member States are to avoid excessive government deficits and sets out the excessive deficit procedure to that effect. The Stability and Growth Pact, which in its corrective arm implements the excessive deficit procedure, provides the framework supporting government policies for a prompt return to sound budgetary positions taking account of the economic situation.

| (2) | On 27 April 2009, the Council decided, in accordance with Article 104(6) of the Treaty establishing the European Community that an excessive deficit existed in Greece. |
| --- | --- |

(2)

On 27 April 2009, the Council decided, in accordance with Article 104(6) of the Treaty establishing the European Community that an excessive deficit existed in Greece.

| (3) | On 10 May 2010, the Council adopted Decision 2010/320/EU (1) addressed to Greece under Article 126(9) and Article 136 TFEU with a view to reinforcing and deepening the fiscal surveillance and giving notice to take measures for the deficit reduction judged necessary to remedy the situation of excessive deficit at the latest by the deadline of 2014. The Council established 2014 as the deadline for correcting the situation of excessive deficit, and annual targets for the government deficit. |
| --- | --- |

(3)

On 10 May 2010, the Council adopted Decision 2010/320/EU (1) addressed to Greece under Article 126(9) and Article 136 TFEU with a view to reinforcing and deepening the fiscal surveillance and giving notice to take measures for the deficit reduction judged necessary to remedy the situation of excessive deficit at the latest by the deadline of 2014. The Council established 2014 as the deadline for correcting the situation of excessive deficit, and annual targets for the government deficit.

| (4) | Council Decision No 2010/320/EU was substantially amended several times. Since further amendments were to be made, it was recast, on 12 July 2011, by Council Decision 2011/734/EU of 12 July 2011 addressed to Greece with a view to reinforcing and deepening fiscal surveillance and giving notice to Greece to take measures for the deficit reduction judged necessary to remedy the situation of excessive deficit (2) in the interest of clarity. Subsequently, that Decision was significantly amended several times between 8 July 2011 and December 2012 (3). |
| --- | --- |

(4)

Council Decision No 2010/320/EU was substantially amended several times. Since further amendments were to be made, it was recast, on 12 July 2011, by Council Decision 2011/734/EU of 12 July 2011 addressed to Greece with a view to reinforcing and deepening fiscal surveillance and giving notice to Greece to take measures for the deficit reduction judged necessary to remedy the situation of excessive deficit (2) in the interest of clarity. Subsequently, that Decision was significantly amended several times between 8 July 2011 and December 2012 (3).

| (5) | The very severe deterioration of the financial situation of Greece has led euro area Member States to decide to provide it stability support, with a view to safeguarding the financial stability of the euro area as a whole, in conjunction with multilateral assistance provided by the International Monetary Fund. From May 2010 to June 2015, support provided by the euro area Member States took the form of both a bilateral Greek Loan Facility and a loan from the European Financial Stability Facility (‘EFSF’). The lenders' support was accompanied by extensive policy conditionality, including the respect by Greece of Council Decision 2011/734/EU and subsequent amendments thereto. |
| --- | --- |

(5)

The very severe deterioration of the financial situation of Greece has led euro area Member States to decide to provide it stability support, with a view to safeguarding the financial stability of the euro area as a whole, in conjunction with multilateral assistance provided by the International Monetary Fund. From May 2010 to June 2015, support provided by the euro area Member States took the form of both a bilateral Greek Loan Facility and a loan from the European Financial Stability Facility (‘EFSF’). The lenders' support was accompanied by extensive policy conditionality, including the respect by Greece of Council Decision 2011/734/EU and subsequent amendments thereto.

| (6) | On 8 July 2015, Greece requested financial assistance from the European Stability Mechanism (‘ESM’) in the form of a three-year loan, and on 12 July 2015 an agreement in principle was reached on the provision of a loan of the amount of up to EUR 86 000 million to Greece. On 17 July, the ESM Board of Governors entrusted the European Commission, in liaison with the European Central Bank, and with the International Monetary Fund, with the task of negotiating a Memorandum of Understanding (‘MoU’) detailing the policy conditionality for a financial assistance facility covering the period 2015-2018 in accordance with Article 13(3) of the ESM Treaty. |
| --- | --- |

(6)

On 8 July 2015, Greece requested financial assistance from the European Stability Mechanism (‘ESM’) in the form of a three-year loan, and on 12 July 2015 an agreement in principle was reached on the provision of a loan of the amount of up to EUR 86 000 million to Greece. On 17 July, the ESM Board of Governors entrusted the European Commission, in liaison with the European Central Bank, and with the International Monetary Fund, with the task of negotiating a Memorandum of Understanding (‘MoU’) detailing the policy conditionality for a financial assistance facility covering the period 2015-2018 in accordance with Article 13(3) of the ESM Treaty.

| (7) | In accordance with Regulation (EU) No 472/2013 of the European Parliament and of the Council of 21 May 2013 on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability (4), and in particular Article 7 thereof, a Member State requesting financial assistance from the ESM must prepare a macroeconomic adjustment programme (‘the Programme’) for approval by the Council. Such a programme should ensure the adoption of a set of reforms needed to improve the sustainability of public finances and the regulatory environment. |
| --- | --- |

(7)

In accordance with Regulation (EU) No 472/2013 of the European Parliament and of the Council of 21 May 2013 on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability (4), and in particular Article 7 thereof, a Member State requesting financial assistance from the ESM must prepare a macroeconomic adjustment programme (‘the Programme’) for approval by the Council. Such a programme should ensure the adoption of a set of reforms needed to improve the sustainability of public finances and the regulatory environment.

| (8) | The Programme prepared by Greece was approved by Council Implementing Decision (EU) 2015/1411 (5). |
| --- | --- |

(8)

The Programme prepared by Greece was approved by Council Implementing Decision (EU) 2015/1411 (5).

| (9) | Article 10(2)(b) of Regulation (EU) No 472/2013 also establishes that, in case a Member State subject to a macroeconomic adjustment programme under Article 7 of that Regulation is also subject to a decision under 126(9) TFEU for the correction of its excessive deficit, the annual budgetary targets in its macroeconomic adjustment programme shall be integrated into the decision to give notice under Article 5(1) of Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (6); in addition, the measures conducive to those targets in the macroeconomic adjustment programme shall also be integrated into the decision to give notice in accordance with Article 5(1) of Regulation (EC) No 1467/97. Article 10(2)(a) of Regulation (EU) No 472/2013 further establishes that the Member State shall be exempt from submitting reports under Article 5(1) of Regulation (EC) No 1467/97. Finally, Article 10(2)(c) of Regulation (EU) No 472/2013 establishes that the monitoring shall be undertaken as provided for by Article 7(4) of that Regulation and the Member State shall be exempt from monitoring under Article 10(1) and Article 10a of Regulation (EC) No 1467/97 and from monitoring underlying any decision under Article 6(2) of that Regulation. |
| --- | --- |

(9)

Article 10(2)(b) of Regulation (EU) No 472/2013 also establishes that, in case a Member State subject to a macroeconomic adjustment programme under Article 7 of that Regulation is also subject to a decision under 126(9) TFEU for the correction of its excessive deficit, the annual budgetary targets in its macroeconomic adjustment programme shall be integrated into the decision to give notice under Article 5(1) of Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (6); in addition, the measures conducive to those targets in the macroeconomic adjustment programme shall also be integrated into the decision to give notice in accordance with Article 5(1) of Regulation (EC) No 1467/97. Article 10(2)(a) of Regulation (EU) No 472/2013 further establishes that the Member State shall be exempt from submitting reports under Article 5(1) of Regulation (EC) No 1467/97. Finally, Article 10(2)(c) of Regulation (EU) No 472/2013 establishes that the monitoring shall be undertaken as provided for by Article 7(4) of that Regulation and the Member State shall be exempt from monitoring under Article 10(1) and Article 10a of Regulation (EC) No 1467/97 and from monitoring underlying any decision under Article 6(2) of that Regulation.

| (10) | Economic activity in Greece is currently projected to be much weaker than was expected when the latest amendment to Council Decision 2011/734/EU was adopted in December 2012. Both real and nominal GDP are expected to be at much lower levels in 2015 and 2016 than was expected in the 2015 Spring Forecast of the Commission, due to policy uncertainty, lack of implementation of reforms, a shortfall in government revenues, bank holidays, and the imposition of capital controls. The Commission updated its forecast for GDP growth in August 2015, as needed to underpin the negotiations for the MoU required for an ESM programme. According to this forecast, real GDP in 2015-2016 is projected to contract by 2,3 % and 1,3 % respectively, (against a positive growth of 0,5 % and 2,9 % in the 2015 Spring Forecast for the corresponding years), before growing by 2,7 % in 2017 and 3,1 % in 2018. This marked worsening of the economic scenario in 2015-2016 implies a corresponding deterioration of the outlook for public finances given unchanged policies. |
| --- | --- |

(10)

Economic activity in Greece is currently projected to be much weaker than was expected when the latest amendment to Council Decision 2011/734/EU was adopted in December 2012. Both real and nominal GDP are expected to be at much lower levels in 2015 and 2016 than was expected in the 2015 Spring Forecast of the Commission, due to policy uncertainty, lack of implementation of reforms, a shortfall in government revenues, bank holidays, and the imposition of capital controls. The Commission updated its forecast for GDP growth in August 2015, as needed to underpin the negotiations for the MoU required for an ESM programme. According to this forecast, real GDP in 2015-2016 is projected to contract by 2,3 % and 1,3 % respectively, (against a positive growth of 0,5 % and 2,9 % in the 2015 Spring Forecast for the corresponding years), before growing by 2,7 % in 2017 and 3,1 % in 2018. This marked worsening of the economic scenario in 2015-2016 implies a corresponding deterioration of the outlook for public finances given unchanged policies.

| (11) | Greece is estimated to have improved its structural deficit by 16 percentage points of GDP from a 15,2 % deficit in 2009 to an estimated 1 % surplus in 2014, thus ensuring an improvement in the structural balance in 2009-2014, which is significantly larger than the requirement of at least 10 percentage points of GDP over the period recommended by the Council. In 2014, the general government deficit reached 3,5 % of GDP, clearly within the 4,5 % of GDP government deficit (ESA2010 basis) ceiling for 2014 established by the Council Decision. However, the primary balance outturn of 0,4 % of GDP was substantially weaker than expected and undershot the target set at 1,5 % of GDP due to a combination of factors including the reversal in the economic cycle and the related negative impact on budget revenues, the relaxation of fiscal policy and increased economic uncertainty. The weakening macroeconomic environment accompanied with expiring temporary fiscal measures in 2015 have, however, made it impossible to achieve the primary balance target of 3 % of GDP in 2015 envisaged in the latest amendment to Decision 2011/734/EU adopted in December 2012. The fiscal targets have, therefore, been revised down substantially, taking into account the macroeconomic circumstances and the current fiscal situation, to avoid overtightening fiscal policy in the short term. |
| --- | --- |

(11)

Greece is estimated to have improved its structural deficit by 16 percentage points of GDP from a 15,2 % deficit in 2009 to an estimated 1 % surplus in 2014, thus ensuring an improvement in the structural balance in 2009-2014, which is significantly larger than the requirement of at least 10 percentage points of GDP over the period recommended by the Council. In 2014, the general government deficit reached 3,5 % of GDP, clearly within the 4,5 % of GDP government deficit (ESA2010 basis) ceiling for 2014 established by the Council Decision. However, the primary balance outturn of 0,4 % of GDP was substantially weaker than expected and undershot the target set at 1,5 % of GDP due to a combination of factors including the reversal in the economic cycle and the related negative impact on budget revenues, the relaxation of fiscal policy and increased economic uncertainty. The weakening macroeconomic environment accompanied with expiring temporary fiscal measures in 2015 have, however, made it impossible to achieve the primary balance target of 3 % of GDP in 2015 envisaged in the latest amendment to Decision 2011/734/EU adopted in December 2012. The fiscal targets have, therefore, been revised down substantially, taking into account the macroeconomic circumstances and the current fiscal situation, to avoid overtightening fiscal policy in the short term.

| (12) | Greece will accordingly pursue a new fiscal path, premised on primary surplus targets of – 0,25, 0,5, 1,75, and 3,5 % of GDP in 2015, 2016, 2017 and 2018 and beyond, respectively. The trajectory of the fiscal targets is consistent with the expected growth rates of the Greek economy as it recovers from its deepest recorded recession. The revised path means that the general government budget deficit will fall below 3 % of GDP in 2017. |
| --- | --- |

(12)

Greece will accordingly pursue a new fiscal path, premised on primary surplus targets of – 0,25, 0,5, 1,75, and 3,5 % of GDP in 2015, 2016, 2017 and 2018 and beyond, respectively. The trajectory of the fiscal targets is consistent with the expected growth rates of the Greek economy as it recovers from its deepest recorded recession. The revised path means that the general government budget deficit will fall below 3 % of GDP in 2017.

| (13) | Under the Commission services' update of the forecast for nominal GDP growth, the primary general government balance is projected to attain a deficit of EUR 7 631 million (4,4 % of GDP) in 2015, a deficit of EUR 6 166 million (3,6 % of GDP) in 2016, a deficit of EUR 4 089 million (2,3 % of GDP) in 2017 and a deficit of EUR 753 million (0,4 % of GDP) in 2018. |
| --- | --- |

(13)

Under the Commission services' update of the forecast for nominal GDP growth, the primary general government balance is projected to attain a deficit of EUR 7 631 million (4,4 % of GDP) in 2015, a deficit of EUR 6 166 million (3,6 % of GDP) in 2016, a deficit of EUR 4 089 million (2,3 % of GDP) in 2017 and a deficit of EUR 753 million (0,4 % of GDP) in 2018.

| (14) | The budget for 2016 to be adopted by the Greek parliament forms part of the Medium-Term Fiscal Strategy (MTFS) 2016-2019, with the aim to deliver a sizeable and front-loaded fiscal consolidation bringing savings of more than EUR 6 900 million, close to 4 % of GDP. |
| --- | --- |

(14)

The budget for 2016 to be adopted by the Greek parliament forms part of the Medium-Term Fiscal Strategy (MTFS) 2016-2019, with the aim to deliver a sizeable and front-loaded fiscal consolidation bringing savings of more than EUR 6 900 million, close to 4 % of GDP.

| (15) | The failure to complete the final EFSF programme review, the missed debt service payments, the expiration of the EFSF programme and the introduction of capital controls have created new circumstances that have led to a further strong deterioration in debt sustainability. This is due to lower growth estimates, a downward revision of the primary surplus targets, a downward revision of privatisation receipts, a strong deterioration in the financing needs of the banking sector following the imposition of capital controls, the need for a higher clearance of arrears following the liquidity shortage experienced by the sovereign and valuation effects due to the depreciation of the euro with respect to the SDR. As a result of these developments debt-to-GDP is expected to reach 198,3 % in 2016, before decreasing to 169,3 % in 2020, 154,5 % in 2022 and 115,9 % in 2030 in the baseline scenario. |
| --- | --- |

(15)

The failure to complete the final EFSF programme review, the missed debt service payments, the expiration of the EFSF programme and the introduction of capital controls have created new circumstances that have led to a further strong deterioration in debt sustainability. This is due to lower growth estimates, a downward revision of the primary surplus targets, a downward revision of privatisation receipts, a strong deterioration in the financing needs of the banking sector following the imposition of capital controls, the need for a higher clearance of arrears following the liquidity shortage experienced by the sovereign and valuation effects due to the depreciation of the euro with respect to the SDR. As a result of these developments debt-to-GDP is expected to reach 198,3 % in 2016, before decreasing to 169,3 % in 2020, 154,5 % in 2022 and 115,9 % in 2030 in the baseline scenario.

| (16) | Taking into account those developments, the adjustment path towards the correction of the excessive deficit needs to be updated. The commitment undertaken by Greece concerns not only the fiscal consolidation measures, but also those measures needed to enhance the growth-friendly nature and to minimise any negative social impact. |
| --- | --- |

(16)

Taking into account those developments, the adjustment path towards the correction of the excessive deficit needs to be updated. The commitment undertaken by Greece concerns not only the fiscal consolidation measures, but also those measures needed to enhance the growth-friendly nature and to minimise any negative social impact.

| (17) | Each measure required by Council Implementing Decision (EU) 2015/1411 is instrumental in achieving the required budgetary adjustment. Some measures have a direct impact on the budgetary situation of Greece while the others are structural measures that will result in improved fiscal governance and a sounder budgetary situation in the medium term. |
| --- | --- |

(17)

Each measure required by Council Implementing Decision (EU) 2015/1411 is instrumental in achieving the required budgetary adjustment. Some measures have a direct impact on the budgetary situation of Greece while the others are structural measures that will result in improved fiscal governance and a sounder budgetary situation in the medium term.

| (18) | In light of the above considerations, it appears necessary to revise the previous annual budgetary targets and the measures conducive to those targets. The new annual budgetary targets and measures conducive to those targets are those contained in Council Implementing Decision (EU) 2015/1411, |
| --- | --- |

(18)

In light of the above considerations, it appears necessary to revise the previous annual budgetary targets and the measures conducive to those targets. The new annual budgetary targets and measures conducive to those targets are those contained in Council Implementing Decision (EU) 2015/1411,

HAS ADOPTED THIS DECISION:

Article 1

1.   Greece shall put an end to the present excessive deficit situation as rapidly as possible, and at the latest, by 2017.

2.   The adjustment path towards the correction of the excessive deficit shall aim to meet the annual general-government-deficit targets, as laid down in Council Implementing Decision (EU) 2015/1411 and will be based on primary surplus targets of – 0,25, 0,5, 1,75, and 3,5 % of GDP in 2015, 2016, 2017 and 2018 and beyond, respectively. The trajectory of the fiscal targets is consistent with expected growth rates of the Greek economy as it recovers from its deepest recorded recession. The revised path means that the general government budget deficit will fall below 3 % of GDP in 2017.

3.   Greece shall adopt and fully implement all fiscal, economic and structural adjustment measures incorporated in the economic and financial adjustment programme as approved by Council Implementing Decision (EU) 2015/1411.

4.   Greece shall stand ready to adopt further measures if risks to the budgetary plans materialise. Budgetary consolidation measures shall secure a lasting improvement in the general government structural balance in a growth-friendly manner.

Article 2

This Decision shall take effect on the day of its notification.

Article 3

This Decision is addressed to the Hellenic Republic.

Done at Brussels, 19 August 2015.

For the Council

The President

J. ASSELBORN

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(1)  OJ L 145, 11.6.2010, p. 6.

1

(2)  OJ L 296, 15.11.2011, p. 38.

2

(3)  Council Decision 2011/791/EU of 8 November 2011 (OJ L 320, 3.12.2011, p. 28), Council Decision 2012/211/EU of 13 March 2012 (OJ L 113, 25.4.2012, p. 8), Council Decision 2013/6/EU of 4 December 2012 (OJ L 4, 9.1.2013, p. 40).

3

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

4

(5)  See page 12 of this Official Journal.

5

(6)  OJ L 209, 2.8.1997, p. 6.

6

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| 20.8.2015 | EN | Official Journal of the European Union | L 219/12 |
| --- | --- | --- | --- |

20.8.2015

EN

Official Journal of the European Union

L 219/12

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COUNCIL IMPLEMENTING DECISION (EU) 2015/1411

of 19 August 2015

approving the macroeconomic adjustment programme of Greece

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to Regulation (EU) No 472/2013 of the European Parliament and of the Council of 21 May 2013 on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability (1), and in particular Article 7(2) thereof,

Having regard to the proposal from the European Commission,

Whereas:

| (1) | Article 136(1) of the Treaty on the Functioning of the European Union (‘TFEU’) foresees the possibility of adopting measures specific to Member States whose currency is the euro in order to ensure the proper functioning of economic and monetary union. |
| --- | --- |

(1)

Article 136(1) of the Treaty on the Functioning of the European Union (‘TFEU’) foresees the possibility of adopting measures specific to Member States whose currency is the euro in order to ensure the proper functioning of economic and monetary union.

| (2) | Since 2010, Greece has been granted financial assistance by the Member States and the International Monetary Fund (‘IMF’). A first Economic Adjustment Programme for Greece was been agreed on 2 May 2010: the euro area Member States agreed to provide bilateral loans, pooled by the European Commission, for a total amount of EUR 80 000 million to be disbursed over the period May 2010 through June 2013 and the IMF committing additional EUR 30 000 million under a stand-by arrangement. The Second Economic Adjustment Programme for Greece was approved on 14 March 2012. The euro area Member States and the IMF committed the undisbursed amounts of the first programme plus an additional EUR 130 000 million for the years 2012-2014. Whereas the financing of the first programme was based on bilateral loans, it was agreed that — on the side of euro area Member States — the second programme would be financed by the European Financial Stability Facility (‘EFSF’), which had been fully operational since August 2010. In total, the second programme foresaw financial assistance of EUR 164 500 million until the end of 2014 (the period was later extended until the end of June 2015). Of that sum, the euro area commitment amounts to EUR 144 700 million to be provided via the EFSF, while the IMF contributed EUR 19 800 million, as part of a four-year EUR 28 000 million arrangement under the Extended Fund Facility for Greece that the IMF approved in March 2012. |
| --- | --- |

(2)

Since 2010, Greece has been granted financial assistance by the Member States and the International Monetary Fund (‘IMF’). A first Economic Adjustment Programme for Greece was been agreed on 2 May 2010: the euro area Member States agreed to provide bilateral loans, pooled by the European Commission, for a total amount of EUR 80 000 million to be disbursed over the period May 2010 through June 2013 and the IMF committing additional EUR 30 000 million under a stand-by arrangement. The Second Economic Adjustment Programme for Greece was approved on 14 March 2012. The euro area Member States and the IMF committed the undisbursed amounts of the first programme plus an additional EUR 130 000 million for the years 2012-2014. Whereas the financing of the first programme was based on bilateral loans, it was agreed that — on the side of euro area Member States — the second programme would be financed by the European Financial Stability Facility (‘EFSF’), which had been fully operational since August 2010. In total, the second programme foresaw financial assistance of EUR 164 500 million until the end of 2014 (the period was later extended until the end of June 2015). Of that sum, the euro area commitment amounts to EUR 144 700 million to be provided via the EFSF, while the IMF contributed EUR 19 800 million, as part of a four-year EUR 28 000 million arrangement under the Extended Fund Facility for Greece that the IMF approved in March 2012.

| (3) | On 8 July 2015, in view of the ongoing severe economic and financial disturbance, the Greek authorities requested financial assistance from the European Stability Mechanism (‘ESM’) in order to ensure a properly-functioning Greek banking system, to meet Greece's debt obligations, to support the return of Greece's economy to sustainable growth and safeguard financial stability of the euro area and of its Member States. |
| --- | --- |

(3)

On 8 July 2015, in view of the ongoing severe economic and financial disturbance, the Greek authorities requested financial assistance from the European Stability Mechanism (‘ESM’) in order to ensure a properly-functioning Greek banking system, to meet Greece's debt obligations, to support the return of Greece's economy to sustainable growth and safeguard financial stability of the euro area and of its Member States.

| (4) | Pursuant to Article 13(1) of the ESM Treaty, and to form the basis for a decision of the ESM Board of Governors, in line with Article 13(2) thereof, whether to grant, in principle, stability support to Greece in the form of a loan, on 8 July 2015 the Chairperson of the ESM Board of Governors entrusted the European Commission, in liaison with the European Central Bank (‘ECB’), with assessing the existence of a risk to the financial stability of the euro area as a whole or its Member States; assessing, together with the IMF, whether public debt is sustainable; and estimating the actual or potential financing needs of Greece. |
| --- | --- |

(4)

Pursuant to Article 13(1) of the ESM Treaty, and to form the basis for a decision of the ESM Board of Governors, in line with Article 13(2) thereof, whether to grant, in principle, stability support to Greece in the form of a loan, on 8 July 2015 the Chairperson of the ESM Board of Governors entrusted the European Commission, in liaison with the European Central Bank (‘ECB’), with assessing the existence of a risk to the financial stability of the euro area as a whole or its Member States; assessing, together with the IMF, whether public debt is sustainable; and estimating the actual or potential financing needs of Greece.

| (5) | In compliance with Article 13 of the ESM Treaty, the European Commission, in liaison with the ECB, and with input from IMF staff, completed those assessments on 10 July 2015, concluding that conditions for the financial support for Greece, to be provided in the form of an ESM loan, are in place. The financing needs were estimated to be up to EUR 86 000 million. |
| --- | --- |

(5)

In compliance with Article 13 of the ESM Treaty, the European Commission, in liaison with the ECB, and with input from IMF staff, completed those assessments on 10 July 2015, concluding that conditions for the financial support for Greece, to be provided in the form of an ESM loan, are in place. The financing needs were estimated to be up to EUR 86 000 million.

| (6) | On 17 July 2015, Greece was granted EUR 7 160 million short-term financial assistance under the European Financial Stabilisation Mechanism (‘EFSM’), by Council Implementing Decision (EU) 2015/1181 (2), for facing July 2015 repayment obligations and settling its arrears to the IMF. The assistance was disbursed in one instalment on 20 July 2015, and was linked to economic policy conditionality. The ESM assistance will be used, inter alia, to repay that short-term EFSM bridge loan. |
| --- | --- |

(6)

On 17 July 2015, Greece was granted EUR 7 160 million short-term financial assistance under the European Financial Stabilisation Mechanism (‘EFSM’), by Council Implementing Decision (EU) 2015/1181 (2), for facing July 2015 repayment obligations and settling its arrears to the IMF. The assistance was disbursed in one instalment on 20 July 2015, and was linked to economic policy conditionality. The ESM assistance will be used, inter alia, to repay that short-term EFSM bridge loan.

| (7) | On 16 July 2015, the ESM Board of Governors invited the Commission, in liaison with the ECB, the ESM, the Greek authorities, and, where appropriate, the IMF, to agree on a macroeconomic adjustment programme for Greece. The programme was prepared in accordance with the procedure provided for under Article 7(1) of Regulation (EU) No 472/2013. On 11 August 2015, those institutions reached an agreement at technical level on a macroeconomic adjustment programme (the ‘Programme’) with the Greek Government. The Programme submitted by Greece to the Commission and the Council aims at ensuring the adoption of a set of reforms needed to improve the sustainability of public finances, as well as to ensure financial stability and to promote growth, employment, and social fairness. |
| --- | --- |

(7)

On 16 July 2015, the ESM Board of Governors invited the Commission, in liaison with the ECB, the ESM, the Greek authorities, and, where appropriate, the IMF, to agree on a macroeconomic adjustment programme for Greece. The programme was prepared in accordance with the procedure provided for under Article 7(1) of Regulation (EU) No 472/2013. On 11 August 2015, those institutions reached an agreement at technical level on a macroeconomic adjustment programme (the ‘Programme’) with the Greek Government. The Programme submitted by Greece to the Commission and the Council aims at ensuring the adoption of a set of reforms needed to improve the sustainability of public finances, as well as to ensure financial stability and to promote growth, employment, and social fairness.

| (8) | Following that agreement, Greece should adopt a comprehensive policy package, to be implemented in a three-year macroeconomic adjustment programme which would span from the third quarter of 2015 to the third quarter of 2018. |
| --- | --- |

(8)

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

| (9) | The comprehensive policy package, to be laid down in an ESM Memorandum of Understanding on Specific Economic Policy Conditionality (the ‘Memorandum of Understanding’), should aim at restoring financial market confidence, re-establishing sound macroeconomic balances and enabling the economy to return to sustainable growth. It should be structured on four pillars: restoring fiscal sustainability, safeguarding financial stability, enhancing competitiveness and growth, and modernising the state and the public administration. |
| --- | --- |

(9)

The comprehensive policy package, to be laid down in an ESM Memorandum of Understanding on Specific Economic Policy Conditionality (the ‘Memorandum of Understanding’), should aim at restoring financial market confidence, re-establishing sound macroeconomic balances and enabling the economy to return to sustainable growth. It should be structured on four pillars: restoring fiscal sustainability, safeguarding financial stability, enhancing competitiveness and growth, and modernising the state and the public administration.

| (10) | The Commission services updated their forecast for nominal GDP growth in August 2015, as needed to underpin the negotiations for the ESM programme. Under this forecast, which centres around a nominal GDP growth rate of – 3,2 % in 2015, – 0,7 % in 2016, 3,4 % in 2017, 4,1 % in 2018 and 4,2 % in 2019, the debt-to-GDP ratio would amount to 196,3 % in 2015, 200,9 % in 2016, 198,6 % in 2017, 190,7 % in 2018 and 182,3 % in 2019. The debt-to-GDP ratio would therefore increase until 2016 and move to a declining path thereafter, reaching an estimated 174,5 % in 2020, with debt dynamics affected by several below-the-line operations. Under the Commission services' update of the forecast for nominal GDP growth, the primary general government balance is projected to attain a deficit of EUR 7 631 million (4,4 % of GDP) in 2015, a deficit of EUR 6 166 million (3,6 % of GDP) in 2016, a deficit of EUR 4 089 million (2,3 % of GDP) in 2017 and a deficit of EUR 753 million (0,4 % of GDP) in 2018. |
| --- | --- |

(10)

The Commission services updated their forecast for nominal GDP growth in August 2015, as needed to underpin the negotiations for the ESM programme. Under this forecast, which centres around a nominal GDP growth rate of – 3,2 % in 2015, – 0,7 % in 2016, 3,4 % in 2017, 4,1 % in 2018 and 4,2 % in 2019, the debt-to-GDP ratio would amount to 196,3 % in 2015, 200,9 % in 2016, 198,6 % in 2017, 190,7 % in 2018 and 182,3 % in 2019. The debt-to-GDP ratio would therefore increase until 2016 and move to a declining path thereafter, reaching an estimated 174,5 % in 2020, with debt dynamics affected by several below-the-line operations. Under the Commission services' update of the forecast for nominal GDP growth, the primary general government balance is projected to attain a deficit of EUR 7 631 million (4,4 % of GDP) in 2015, a deficit of EUR 6 166 million (3,6 % of GDP) in 2016, a deficit of EUR 4 089 million (2,3 % of GDP) in 2017 and a deficit of EUR 753 million (0,4 % of GDP) in 2018.

| (11) | The authorities will pursue a new fiscal path premised on primary surplus targets of – 0,25, 0,5, 1,75, and 3,5 % of GDP in 2015, 2016, 2017 and 2018 and beyond, respectively. The trajectory of the fiscal targets is consistent with expected growth rates of the Greek economy as it recovers from its deepest recorded recession. |
| --- | --- |

(11)

The authorities will pursue a new fiscal path premised on primary surplus targets of – 0,25, 0,5, 1,75, and 3,5 % of GDP in 2015, 2016, 2017 and 2018 and beyond, respectively. The trajectory of the fiscal targets is consistent with expected growth rates of the Greek economy as it recovers from its deepest recorded recession.

| (12) | Enhancing the long-term resilience of the Greek banking sector is critical to restoring financial stability in Greece and to preserving financial stability in the euro area as a whole. To preserve the liquidity of the Greek banking sector, temporary administrative measures were imposed, including capital controls. |
| --- | --- |

(12)

Enhancing the long-term resilience of the Greek banking sector is critical to restoring financial stability in Greece and to preserving financial stability in the euro area as a whole. To preserve the liquidity of the Greek banking sector, temporary administrative measures were imposed, including capital controls.

| (13) | The implementation of comprehensive and ambitious reforms in financial, fiscal and structural areas should safeguard the medium-term sustainability of the Greek public debt. |
| --- | --- |

(13)

The implementation of comprehensive and ambitious reforms in financial, fiscal and structural areas should safeguard the medium-term sustainability of the Greek public debt.

| (14) | The Commission, in liaison with the ECB and, where appropriate, the IMF, should verify at regular intervals the rigorous implementation of Greece's Programme through missions and regular reporting, on a quarterly basis, by the Greek authorities. |
| --- | --- |

(14)

The Commission, in liaison with the ECB and, where appropriate, the IMF, should verify at regular intervals the rigorous implementation of Greece's Programme through missions and regular reporting, on a quarterly basis, by the Greek authorities.

| (15) | Throughout the implementation of Greece's comprehensive policy package, the Commission should provide additional policy advice and technical assistance in specific areas. |
| --- | --- |

(15)

Throughout the implementation of Greece's comprehensive policy package, the Commission should provide additional policy advice and technical assistance in specific areas.

| (16) | The Greek authorities should involve, in accordance with current national rules and practices, the social partners and civil society organisations in the preparation, implementation, monitoring and evaluation of the Programme. |
| --- | --- |

(16)

The Greek authorities should involve, in accordance with current national rules and practices, the social partners and civil society organisations in the preparation, implementation, monitoring and evaluation of the Programme.

| (17) | Any form of financial assistance received by Greece to help it implement the policies under its Programme should be in line with the legal requirements and policies of the Union, in particular the Union's economic governance framework. Any intervention in support of financial institutions should be carried out in accordance with the Union's rules on competition. The Commission should ensure that any measures laid down in a Memorandum of Understanding in the context of requested ESM financial assistance are fully consistent with this Decision, |
| --- | --- |

(17)

Any form of financial assistance received by Greece to help it implement the policies under its Programme should be in line with the legal requirements and policies of the Union, in particular the Union's economic governance framework. Any intervention in support of financial institutions should be carried out in accordance with the Union's rules on competition. The Commission should ensure that any measures laid down in a Memorandum of Understanding in the context of requested ESM financial assistance are fully consistent with this Decision,

HAS ADOPTED THIS DECISION:

Article 1

1.   In order to facilitate the return of the Greek economy to a path of sustainable growth and to fiscal and financial stability, Greece shall rigorously implement the Programme, the main elements of which are laid down in Article 2 of this Decision. The Programme shall address the specific risks emanating from Greece for the financial stability of the euro area and shall aim to rapidly re-establish a sound and sustainable economic and financial situation in Greece and restore its capacity to finance itself fully on the international financial markets. The Programme shall take due account of the Council recommendations addressed to Greece under Articles 121, 126, 136 and 148 TFEU as well as Greece's actions to comply with them, while aiming to broaden, strengthen and deepen the policy measures required.

2.   The Commission, in liaison with the ECB and, where appropriate, the IMF, shall monitor Greece's progress in implementing its Programme. Greece shall give the Commission and the ECB its full cooperation. It shall, in particular, provide them with all the information that they deem necessary for the monitoring of the Programme.

3.   The Commission, in liaison with the ECB and, where appropriate, the IMF, shall examine with the Greek authorities any changes and updates to the Programme that may be needed in order to take proper account of, inter alia, any significant gap between macroeconomic and fiscal forecasts and realised figures, negative spillover effects, as well as macroeconomic and financial shocks.

In order to ensure the smooth implementation of the Programme and to help the correction of imbalances in a sustainable way, the Commission shall provide continued advice and guidance on fiscal, financial market and structural reforms.

The Commission shall at regular intervals assess the economic impact of the Programme and shall recommend necessary corrections with a view to enhancing growth and job creation, securing the necessary fiscal consolidation, and minimising harmful social impacts.

Article 2

1.   The key objectives of the Programme shall be: restoring fiscal sustainability, safeguarding financial stability, enhancing competitiveness and growth, and modernising the state and the public administration.

2.   Greece shall pursue fiscal consolidation by means of high-quality permanent measures while minimising the impact on disadvantaged people. The Greek authorities commit to ensuring sustainable public finances and achieve sizeable and sustainable primary surpluses over the medium-term that will reduce the debt-to-GDP ratio steadily. The authorities shall accordingly pursue a new fiscal path premised on primary surplus targets of – 0,25, 0,5, 1,75, and 3,5 per cent of GDP in 2015, 2016, 2017 and 2018 and beyond, respectively. Greece shall target a medium-term primary surplus of 3,5 % of GDP to be achieved through a combination of upfront parametric fiscal reforms, including to its VAT and pension system, supported by an ambitious programme to strengthen tax compliance and public financial management, and fight tax evasion, while ensuring adequate protection of vulnerable groups. In addition to the measures above, the authorities commit to legislate in October 2015 credible structural measures yielding at least 0,75 % of GDP coming into effect in 2017 and 0,25 % of GDP coming into effect in 2018 to support the achievement of the medium-term primary balance target of 3,5 % of GDP. The authorities commit to take further structural measures in October 2016, if needed to secure the 2017 and 2018 targets. Those would include containing defence expenditure, the planned personal income tax reform and freezing statutory spending. Parametric fiscal measures shall be bolstered by a wide range of administrative actions to address shortfalls in tax collection and enforcement. The Greek Government shall monitor fiscal risks, including court rulings, and shall take offsetting measures as needed to meet the fiscal targets. The authorities intend to transfer at least 30 % of any over-performance to the segregated account earmarked for debt reduction. In addition, another 30 % of the over-performance would be used for clearing unpaid government obligations linked to the past.

3.   Greece shall adopt the measures specified below:

| (i) | take measures in the short term to raise revenues and to target and contain expenditure. Among the measures to raise revenue, Greece shall gradually abolish the refund of excise tax on diesel oil for farmers and increase the tonnage tax. The authorities shall take actions to launch the 2015 property tax (ENFIA) exercise in order to issue bills in October 2015 with the final instalment due in February 2016. They shall also correct identified issues with the revenue measures recently implemented. The authorities also committed to target and contain expenditure by reducing the cost of healthcare and launching the comprehensive social welfare review. The package includes further measures with budgetary impact, such as public administration reforms, reforms addressing shortfalls in tax collection enforcement, and other parametric measures; |
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(i)

take measures in the short term to raise revenues and to target and contain expenditure. Among the measures to raise revenue, Greece shall gradually abolish the refund of excise tax on diesel oil for farmers and increase the tonnage tax. The authorities shall take actions to launch the 2015 property tax (ENFIA) exercise in order to issue bills in October 2015 with the final instalment due in February 2016. They shall also correct identified issues with the revenue measures recently implemented. The authorities also committed to target and contain expenditure by reducing the cost of healthcare and launching the comprehensive social welfare review. The package includes further measures with budgetary impact, such as public administration reforms, reforms addressing shortfalls in tax collection enforcement, and other parametric measures;

| (ii) | to demonstrate its commitment to credible fiscal policies, adopt in October 2015, a supplementary 2015 budget as needed, the draft 2016 budget and a 2016-2019 Medium-Term Fiscal Strategy, supported by a sizable and credible package of parametric measures and structural fiscal reforms; |
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(ii)

to demonstrate its commitment to credible fiscal policies, adopt in October 2015, a supplementary 2015 budget as needed, the draft 2016 budget and a 2016-2019 Medium-Term Fiscal Strategy, supported by a sizable and credible package of parametric measures and structural fiscal reforms;

| (iii) | enact reforms of both direct and indirect taxation to improve efficiency, collectability and boost labour supply. To break from past practice and improve the tax and social security payment culture, the Government shall take strong action to improve collection, and neither introduce new instalment or other amnesty or settlement schemes nor extend existing schemes; |
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(iii)

enact reforms of both direct and indirect taxation to improve efficiency, collectability and boost labour supply. To break from past practice and improve the tax and social security payment culture, the Government shall take strong action to improve collection, and neither introduce new instalment or other amnesty or settlement schemes nor extend existing schemes;

| (iv) | continue reforms that aim at improving the budget process and expenditure controls, clearing arrears, and strengthening budget reporting and cash management. The Government is committed to making the Fiscal Council operational; |
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(iv)

continue reforms that aim at improving the budget process and expenditure controls, clearing arrears, and strengthening budget reporting and cash management. The Government is committed to making the Fiscal Council operational;

| (v) | take further action in the area of public procurement to increase efficiency and transparency of the Greek public procurement system, prevent misconduct, and ensure more accountability and control. Policies will be agreed with the European Commission, which shall assist with the implementation of an action plan; |
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(v)

take further action in the area of public procurement to increase efficiency and transparency of the Greek public procurement system, prevent misconduct, and ensure more accountability and control. Policies will be agreed with the European Commission, which shall assist with the implementation of an action plan;

| (vi) | implement fully the existing reforms and also proceed with further reforms to strengthen long-term sustainability, targeting savings of around 0,25 % of GDP in 2015 and around 1 % of GDP by 2016. The package inter alia aims to create strong disincentives for early retirement through increasing early retirement penalties and by the gradual elimination of the grandfathering of rights to retire before the statutory retirement age; |
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(vi)

implement fully the existing reforms and also proceed with further reforms to strengthen long-term sustainability, targeting savings of around 0,25 % of GDP in 2015 and around 1 % of GDP by 2016. The package inter alia aims to create strong disincentives for early retirement through increasing early retirement penalties and by the gradual elimination of the grandfathering of rights to retire before the statutory retirement age;

| (vii) | continue reforming the healthcare sector, controlling public expenditure, managing prices of pharmaceuticals, improve hospital management, increase centralised procurement of hospital supplies, manage demand for pharmaceuticals and health care through evidence-based e-prescription protocols, commission private sector healthcare providers in a cost-effective manner, modernise IT systems, developing a new electronic referral system for primary and secondary care that allows the formulation of care pathways for patients; |
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(vii)

continue reforming the healthcare sector, controlling public expenditure, managing prices of pharmaceuticals, improve hospital management, increase centralised procurement of hospital supplies, manage demand for pharmaceuticals and health care through evidence-based e-prescription protocols, commission private sector healthcare providers in a cost-effective manner, modernise IT systems, developing a new electronic referral system for primary and secondary care that allows the formulation of care pathways for patients;

| (viii) | adopt by March 2016 a further series of guaranteed employment support schemes with individualised active labour market measures for participants, using local partnerships, involving the private and social economy sectors and ensuring the efficient and effective use of the resources available.
  Achieving a fairer society will require that Greece improve the design of its welfare system, so that there is a genuine social safety net which targets scarce resources at those in most need. The authorities plan to benefit from available technical assistance from international organisations for the social welfare review and for the guaranteed minimum income implementation. |
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(viii)

adopt by March 2016 a further series of guaranteed employment support schemes with individualised active labour market measures for participants, using local partnerships, involving the private and social economy sectors and ensuring the efficient and effective use of the resources available.

Achieving a fairer society will require that Greece improve the design of its welfare system, so that there is a genuine social safety net which targets scarce resources at those in most need. The authorities plan to benefit from available technical assistance from international organisations for the social welfare review and for the guaranteed minimum income implementation.

4.   To safeguard financial stability, Greece shall immediately take steps to tackle Non-Performing Loans (NPLs) and restore liquidity and capital in the banking system. A recapitalisation process of banks should be completed before the end of 2015, which shall be accompanied by concomitant measures to strengthen the governance of the Hellenic Financial Stability Fund (‘HFSF’) and of banks. Further measures involve the resolution of Non-Performing Loans (‘NPLs’) and the governance of the HFSF and of banks.

5.   To promote growth, competitiveness and investment, Greece shall design and implement a wide range of reforms in labour markets and product markets (including energy) that not only ensure full compliance with European Union requirements, but also aim at achieving European best practices. More open markets are essential to create economic opportunities and improve social fairness, by curtailing rent-seeking and monopolistic behaviour, which has translated into higher prices and lower living standards. In line with their growth strategy, the authorities shall intensify their efforts to bring key initiatives and reform proposals to fruition as well as enrich the agenda with further ambitious reforms that shall support the country's return to sustainable growth, attract investments and create jobs.

6.   The Greek energy markets need wide-ranging reforms to bring them in line with Union legislation and policies, make them more modern and competitive, reduce monopolistic rents and inefficiencies, promote innovation, favour the wider adoption of renewables and gas, and ensure the transfer of benefits of all these changes to consumers. The authorities shall adopt the reform of the gas market and its specific roadmap, leading inter alia to full eligibility to switch supplier for all customers by 2018, and notify the reformed capacity payments system (including a temporary and a permanent mechanism) and New Organisation of Markets in Electricity products to the Commission. In any case, by 2020 no undertaking shall be permitted to produce or import, directly or indirectly, more than 50 % of total electricity produced and imported in Greece.

7.   There shall be an ambitious privatisation programme and policies which support investment. The Government commits to facilitate the privatisation process and complete all needed Government actions to allow tenders to be executed successfully. In this respect the Government shall complete all actions needed as agreed on a quarterly basis between the Hellenic Republic Asset Development Fund (‘HRADF’), the institutions and the Government. The List of Government Pending Actions has been approved by the Board of Directors of the HRADF. In line with the statement of the Euro Summit of 12 July 2015, a new independent fund (the ‘Fund’) shall be established and have in its possession valuable Greek assets. The overarching objective of the Fund is to manage valuable Greek assets; and to protect, create and ultimately maximise their value which it shall monetise through privatisations and other means.

8.   A modern state and public administration shall be a key priority of the Programme. Particular attention shall be paid to increasing the efficiency of the public sector in the delivery of essential public goods and services. Measures shall be taken to enhance the efficiency of the judicial system and to upgrade the fight against corruption. Reforms shall strengthen the institutional and operational independence of key institutions such as the revenue administration and the statistics institute (Elstat).

Article 3

This Decision is addressed to the Hellenic Republic.

Done at Brussels, 19 August 2015.

For the Council

The President

J. ASSELBORN

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

1

(2)  OJ L 192, 18.7.2015, p. 15.

2

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ACTS ADOPTED BY BODIES CREATED BY INTERNATIONAL AGREEMENTS

| 20.8.2015 | EN | Official Journal of the European Union | L 219/17 |
| --- | --- | --- | --- |

20.8.2015

EN

Official Journal of the European Union

L 219/17

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DECISION No 1 OF THE EU-KOREA COMMITTEE ON TRADE IN GOODS

of 28 May 2015

on the adoption of the rules for Tariff Rate Quota administration and implementation [2015/1412]

THE COMMITTEE ON TRADE IN GOODS,

Having regard to the Free Trade Agreement between the Republic of Korea (‘Korea’), of the one part, and the European Union and its Member States, of the other part (‘the Parties’ and ‘the Agreement’), and in particular Articles 2.16, 15.2.1 and points 2 and 3 of Appendix 2-A-1 thereof,

Whereas:

| (1) | Article 15.1 of the Agreement establishes a Trade Committee, which shall, inter alia, ensure that the Agreement operates properly and supervise the work of all specialised committees. |
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(1)

Article 15.1 of the Agreement establishes a Trade Committee, which shall, inter alia, ensure that the Agreement operates properly and supervise the work of all specialised committees.

| (2) | In accordance with Article 15.2 of the Agreement, specialised committees were established under the auspices of the Trade Committee. The Committee on Trade in Goods, in accordance with Article 2.16 of the Agreement, is one of these specialised committees. |
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(2)

In accordance with Article 15.2 of the Agreement, specialised committees were established under the auspices of the Trade Committee. The Committee on Trade in Goods, in accordance with Article 2.16 of the Agreement, is one of these specialised committees.

| (3) | Pursuant to point 2 of Appendix 2-A-1 of the Agreement, Korea may use an auction system to administer and implement the tariff-rate quotas (‘TRQs’) applied by Korea to certain originating goods of the European Union on the basis of the Agreement. The terms of the auction system have to be established by mutual agreement of the Parties by decision of the Committee on Trade in Goods. |
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(3)

Pursuant to point 2 of Appendix 2-A-1 of the Agreement, Korea may use an auction system to administer and implement the tariff-rate quotas (‘TRQs’) applied by Korea to certain originating goods of the European Union on the basis of the Agreement. The terms of the auction system have to be established by mutual agreement of the Parties by decision of the Committee on Trade in Goods.

| (4) | Pursuant to point 3 of Appendix 2-A-1 of the Agreement, Korea may use a licensing system to administer and implement certain TRQs. The Parties shall agree in the Committee on Trade in Goods on the policies and procedures for the licensing system, including eligibility to receive TRQ quantities, and any changes or amendments to them, |
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(4)

Pursuant to point 3 of Appendix 2-A-1 of the Agreement, Korea may use a licensing system to administer and implement certain TRQs. The Parties shall agree in the Committee on Trade in Goods on the policies and procedures for the licensing system, including eligibility to receive TRQ quantities, and any changes or amendments to them,

HAS DECIDED AS FOLLOWS:

| 1. | Korea will administer and implement the tariff-rate quotas applied by Korea to certain originating goods of the European Union on the basis of the Free Trade Agreement between the Republic of Korea, of the one part, and the European Union and its Member States, of the other part, in accordance with the rules set out in the Annex to this Decision. |
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1.

Korea will administer and implement the tariff-rate quotas applied by Korea to certain originating goods of the European Union on the basis of the Free Trade Agreement between the Republic of Korea, of the one part, and the European Union and its Member States, of the other part, in accordance with the rules set out in the Annex to this Decision.

| 2. | This Decision shall enter into force on the day of its adoption. |
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2.

This Decision shall enter into force on the day of its adoption.

Done on 28 May 2015.

For the Committee on Trade in Goods

Helena KÖNIG

Acting Director

Directorate-General for Trade of the European Commission

Chang K. KIM

Director-General for Bureau of Trade Policy

Ministry for Trade, Industry and Energy of the Republic of Korea

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ANNEX

RULES FOR THE ADMINISTRATION AND IMPLEMENTATION OF THE TARIFF RATE QUOTAS

Article 1

Timing of auctions and license application

(1)   Auctions for skim milk powder, whole milk powder, condensed milk and natural honey shall precede the import period, i.e. in June for quotas opening in July.

(2)   The specific guidelines by the Korea Agro-Fisheries & Food Trade Corporation will provide that the public notices for the auctions will be made eight calendar days prior to the deadline of the application for participating in the auctions.

(3)   For product items whose timeline of quota license application is not fixed in the Korea-EU Free Trade Agreement, the specific guidelines of the agencies designated to manage Tariff Rate Quotas (TRQs) (hereinafter referred to as ‘Recommending Agencies’) will provide for a license application period of at least seven calendar days from the first working day of the execution year referred to in Annex 2-A, point 5 of the Korea-EU Free Trade Agreement.

Article 2

Deposit and fees

(1)   There will be no administrative cost or fees charged other than the deposit — the amount paid by bidders applying for auction — for services related to an application for a TRQ allocation through auction.

(2)   The general instructions to bidders for each auction will prescribe that the deposit is to be returned to bidders as soon as allowed by normal administration procedures after the auction is completed.

(3)   No guarantee or deposit will be required for license applicants.

Article 3

Issuance and validity of a recommendation

(1)   Recommending Agencies will issue a Korea-EU FTA TRQs Import Recommendation (hereinafter referred to as ‘Recommendation’) following an auction or a licence application.

(2)   Recommendations to the applicants shall be issued within two calendar days provided the submitted TRQs Recommendation application meets the Recommendation requirements.

(3)   A Recommendation for TRQs import will be valid for 90 days. The validity period may be extended for another 30 days, but cannot exceed the last day of the execution year referred to in Annex 2-A, point 5 of the Korea-EU Free Trade Agreement.

Article 4

Publishing information on TRQ administration

(1)   The guidelines of the Ministry of Agriculture, Food and Rural Affairs of Korea (hereinafter referred to as ‘MAFRA’) and specific guidelines of Recommending Agencies will be published on their respective websites.

(2)   The Recommending Agencies will publish on a regular basis on their websites information that includes public notice for licence applications and auctions, license allocation and auction periods, allocated quantities, remaining quantities available for each TRQ and the planned date of the next auction/licensing period.

(3)   The basic criteria for auctions including eligibility, payment and return of deposit, auction dates, auction code and information will be contained in the specific guidelines by the Korea Agro-Fisheries & Food Trade Corporation or in the general instructions to bidders for each auction.

Article 5

TRQ allocation rules

The MAFRA guidelines allow the distribution of the annual TRQ volume throughout the year by dividing the annual TRQ volume into several sub-volumes, the sum of which equals the annual TRQ volume. The total TRQ volume for each execution year as set forth in the Korea-EU Free Trade Agreement shall not be reduced.

Tariff-rate quotas (TRQs) administration: Glossary

| Recommending agencies | Korean agencies designated to manage TRQs: Korea Dairy Industries Association, Korea Agro-Fisheries & Food Trade Corporation, Korea Feed Ingredients Association and the Korea Feed Milk Replacer Association
  Websites: | Korea Dairy Industries Association (only the Korean language version available):
  http://www.koreadia.or.kr/ |
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Recommending agencies

Korean agencies designated to manage TRQs: Korea Dairy Industries Association, Korea Agro-Fisheries & Food Trade Corporation, Korea Feed Ingredients Association and the Korea Feed Milk Replacer Association

Websites:

Korea Dairy Industries Association (only the Korean language version available):

http://www.koreadia.or.kr/

| | Korea Agro-Fisheries & Food Trade Corporation:
  http://www.at.or.kr/home/apen000000/index.action |
| --- | --- |

Korea Agro-Fisheries & Food Trade Corporation:

http://www.at.or.kr/home/apen000000/index.action

| | Korea Feed Ingredients Association (only the Korean language version available):
  http://www.kfeedia.org/main.html |
| --- | --- |

Korea Feed Ingredients Association (only the Korean language version available):

http://www.kfeedia.org/main.html

| | Korea Feed Milk Replacer Association (only the Korean language version available):
  http://milkreplacer.or.kr/ |
| --- | --- |

Korea Feed Milk Replacer Association (only the Korean language version available):

http://milkreplacer.or.kr/

Deposit

Amount paid by tenderers applying for an auction. The deposit is returned to every tenderer immediately after the quota recommendation.

Recommendation

Issue of an import TRQ following an auction or licence application.

Validity period

Period during which a recommendation for an import TRQ is valid.

Execution year

Period of 12 months between consecutive FTA anniversaries (July 1st) for which an annual TRQ volume is laid down in the Korea-EU FTA.

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