ddrg/super_eurlex huggingface dataset:
(10)

Based on the assessment of the Stability Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections in the Programme is optimistic. The Commission services 2012 spring forecast projected GDP growth to reach 0,5 % in 2012 and 1,3 % in 2013, against 0,7 % and 1,75 %, respectively, according to the Stability Programme. After the deficit came out better than expected at 5,2 % of GDP in 2011, the Stability Programme plans to bring it down to 3 % of GDP in 2013, which is the deadline set by the Council for correcting the excessive deficit, and to continue consolidation thereafter, with a balanced budget to be achieved by 2016. The medium-term budgetary objective (MTO) of a balanced budget in structural terms is expected to be reached within the Stability Programme period. The MTO adequately reflects the requirements of the Stability and Growth Pact. Based on the (recalculated) structural budget balance (5), the planned average annual fiscal effort in 2010-2013 is in line with the Council recommendation of 2 December 2009. Annual progress in structural terms equivalent to a further 0,7 % of GDP towards achieving the MTO is projected to be made in 2014-16. According to the Stability Programme, the growth rate of government expenditure, taking into account discretionary revenue measures, is in line with the expenditure benchmark of the Stability and Growth Pact. The adjustment path presented in the Stability Programme is subject to risks. The macroeconomic scenario could turn out to be less favourable as indicated by the Commission services 2012 spring forecast. Measures are not sufficiently specified to reach the targets from 2013 onwards and to achieve the recommended average annual fiscal effort. Furthermore, France’s track record when it comes to meeting expenditure targets is mixed. Therefore, it cannot be ensured that the excessive deficit will be corrected by 2013 unless the planned measures are sufficiently specified and additional ones implemented as needed. Starting from 85,8 % of GDP in 2011, the debt ratio is expected to reach 89,2 % in 2013 and to drop to 83,2 % in 2016. According to the Stability Programme, the debt reduction benchmark will be met at the end of the transitional period (2016).
(10)

Based on the assessment of the Stability Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections in the Stability Programme is optimistic. For 2013, the Stability Programme projects economic growth of 1¼ % without taking into account the negative impact of the additional consolidation measures on growth, whilst, on the basis of the same no-policy change scenario, the Commission has forecast a lower growth rate of 0,7 %. The stated objective of the Stability Programme is to meet the Council recommendations on correcting the excessive deficit and to strive to further improve the budgetary position towards the medium-term budgetary objective (MTO) by targeting a structural effort of at least 0,5 % per year. The Stability Programme targets a headline general government deficit of 3 % of GDP in 2013 and confirms the previous MTO of a structural deficit of 0,5 % of GDP, which adequately reflects the requirements of the Stability and Growth Pact. The average annual fiscal effort of 0,75 % of GDP over the period 2010-13, based on the (recalculated) structural budget balance (5), is in line with the structural effort of ¾ % of GDP recommended by the Council. As the Stability Programme does not provide budgetary targets beyond 2013, the sustainability of the budgetary correction in 2013 and progress towards the MTO in the outer years, including compliance with the expenditure benchmark of the Stability and Growth Pact, cannot be assessed. The budgetary projections over the programme period are subject to implementation risks. These are not solely restricted to the newly announced consolidation measures, but also to the implementation of some of the measures agreed upon earlier by the outgoing Government. The additional measures proposed by the Government in April 2012 for 2013 and their budgetary impact have been further specified and quantified on 25 May after the cut-off date for assessment. Budgetary adjustment has so far relied mostly on expenditure cuts, which also affect growth-enhancing expenditure. According to the 2012 Stability Programme, the debt-to-GDP ratio is expected to further rise relatively markedly in 2012, to 70,2 % of GDP and to increase slightly further to 70,7 % of GDP in 2013, taking into account the impact of the additional consolidation measures. The debt ratio is thus projected to remain well above the 60 % Treaty reference value. For 2014 and 2015, the Stability Programme does not specify debt targets and, therefore, an assessment of compliance with the debt reduction benchmark of the Stability and Growth Pact beyond 2013 cannot be given.
(10)

Based on the assessment of the Stability Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections is optimistic, especially in the outer years of the programme period when compared with potential growth as estimated by the Commission. The objective of the budgetary strategy outlined in the Stability Programme is to gradually reduce the deficit, to 0,3 % of GDP in 2015, after the planned correction of the excessive deficit in 2011. The Stability Programme confirms the previous medium-term budgetary objective (MTO) of a balanced position in structural terms, which is to be achieved beyond the programme period. The MTO adequately reflects the requirements of the Stability and Growth Pact. There are risks that the deficit outcomes could be worse than targeted, stemming from: (i) lower revenue given the slightly optimistic macroeconomic scenario; (ii) possible overruns in current primary expenditure; and (iii) the ongoing restructuring of the national airline (Air Malta) and financial situation of the energy provider (Enemalta). Based on the (recalculated) structural budget balance (5), annual progress towards the MTO is planned to be in line with the 0,5 % of GDP benchmark in the Stability and Growth Pact. Using the Commission’s identification of the one-offs included in the budgetary targets, average progress towards the MTO is slightly higher (¾ % of GDP) but spread very unevenly, with no progress in 2012 followed by an effort of 1¼ % in 2013. According to the information provided in the Stability Programme, the growth rate of government expenditure, taking into account discretionary revenue measures, would be in line with the expenditure benchmark of the Stability and Growth Pact throughout the programme period. The risks to the budgetary targets imply, however, that the average adjustment towards the MTO could be slower than appropriate. After peaking at 72 % of GDP in 2011, the general government gross debt ratio is planned in the Stability Programme to start decreasing and to reach 65,3 % of GDP in 2015 (still above the 60 % of GDP Treaty reference value). According to the plans in the Stability Programme, Malta is making sufficient progress towards meeting the debt reduction benchmark of the Stability and Growth Pact at the end of the transition period (2015) but this assessment is subject to risks as the debt ratio could turn out higher than planned given the possibility of higher deficits and stock-flow adjustments. Malta’s medium-term budgetary framework remains non-binding, implying a relatively short fiscal planning horizon. The Stability Programme announces that the Government is considering reforms to the annual budgetary procedure, including timelines, and introducing a fiscal rule embedded in the Constitution, including monitoring and corrective mechanisms, in line with recent changes to the euro area governance framework.
EN Official Journal of the European Union C 88/3

COUNCIL RECOMMENDATION

of 21 March 2013

concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (tenth EDF) for the financial year 2011

2013/C 88/03

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000 (1) and amended by the Agreement signed in Luxembourg on 25 June 2005 (2),

Having regard to the Internal Agreement between the Representatives of the Governments of the Member States, meeting within the Council, on the financing of Community aid under the multiannual financial framework for the period 2008 to 2013 in accordance with the ACP-EC Partnership Agreement and on the allocation of financial assistance for the Overseas Countries and Territories to which Part Four of the EC Treaty applies (3) (the ‘Internal Agreement’) setting up, amongst others, the 10th European Development Fund (‘10th EDF’), and in particular Article 11(8) thereof,

Having regard to Council Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable to the 10th European Development Fund (4), and in particular Articles 142 to 144 thereof,

Having examined the revenue and expenditure account and the balance sheet relating to the operations of the 10th EDF as at 31 December 2011 and the Annual Report of the Court of Auditors on the activities funded by the 8th, 9th and 10th European Development Funds (EDFs) (5), concerning the financial year 2011, together with the Commission's replies contained in that Annual Report,

Whereas:

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

(2) The overall implementation by the Commission of the operations of the 10th EDF during the financial year 2011 has been satisfactory,

HEREBY RECOMMENDS that the European Parliament give the Commission a discharge in respect of the implementation of the operations of the 10th EDF for the financial year 2011.

Done at Brussels, 21 March 2013. For the Council The President P. HOGAN

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

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

(3) OJ L 247, 9.9.2006, p. 32.

(4) OJ L 78, 19.3.2008, p. 1.

(5) OJ C 344, 12.11.2012, p. 243.
(10)

Based on the assessment of the Stability Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections in the Programme is plausible. The Council abrogated its decision on the existence of an excessive deficit in Malta on 4 December 2012 (5), on account of its correction in 2011, which based on the Commission services 2012 autumn forecast appeared durable. However, in 2012 Malta recorded a general government deficit of 3,3 % of GDP, again above the reference value of 3 % of GDP. The objective of the budgetary strategy outlined in the Stability Programme is to gradually reduce the deficit from 3,3 % of GDP in 2012 to 0,8 % of GDP in 2016, implying gradual progress towards the medium-term objective (MTO). The Stability Programme confirms the MTO of a balanced position in structural terms, which is more ambitious than required by the Stability and Growth Pact, but its achievement is not planned within the Stability Programme period. The 2013 deficit target in the Stability Programme relies on relatively high growth in tax revenues, which does not appear to be fully explained by the underlying macroeconomic scenario. In addition, it is not sufficiently supported by detailed measures, as is also the case for the subsequent years. As a result, the change in the planned (recalculated) structural balance is significantly higher than in the Commission services forecast. According to the latter, the structural balance improves by just ¼ percentage points of GDP in 2013 and only marginally in 2014, on a no-policy-change basis. General government debt is projected to remain above the 60 % of GDP threshold over the whole Stability Programme horizon. The national authorities project the debt to increase to 74,2 % of GDP in 2014 and subsequently to start decreasing to 70 % by 2016. In the Commission services 2013 spring forecast, the debt-to-GDP ratio is expected to increase slightly faster, to 74,9 % in 2014, as the primary deficit is expected to continue expanding. Given the correction of the excessive deficit in 2011, Malta is in a three-year transitional period as regards the applicability of the debt reduction benchmark, starting in 2012. Malta did not make sufficient progress towards compliance with the debt criterion in 2012 and is not projected to do so in 2013-2014. While Malta’s fiscal framework is quite flexible, its non-binding nature and the short horizon of fiscal planning are not supportive of a sound fiscal position. Directive 2011/85/EU (6) on budgetary frameworks has not yet been transposed and a structural budget balance rule, as provided for in the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union, signed on 2 March 2012 in Brussels, has not yet been introduced into national law. The Stability Programme states the intention of the Government to set up a Fiscal Council, but no concrete plans are laid out.
(11)

According to the Commission services' 2013 spring forecast, the general government deficit reached 10,6 % of GDP in 2012, compared with a government and EDP target of 6,3 % of GDP and a 9,4 % of GDP outcome in 2011. Adjusting for capital transfers to banks (which are considered as one-off operations), the corresponding deficits were 7,0 % and 9,0 % of GDP in 2012 and 2011, respectively. The decrease in the headline balance corresponds to an improvement in the primary balance of 2,4 percantage points (net of capital transfers into banks), against the background of a shrinking economy and a tax-weak growth composition. The Commission services' 2013 spring forecast points to an improvement in the structural deficit of 1,8 percantage points in 2012, compared with a recommended improvement of 2,7 percentage points. Correcting for the slight downward revision of potential output since the last Council Recommendation, the estimated fiscal effort remains unchanged. However, the estimated change in the structural balance was severely affected by unexpected revenue shortfalls, which amounted to around 1,0 percentage point Overall, taking these effects into account, the adjusted fiscal effort would increase to 2,9 percentage points, above the recommended effort under the Council Recommendation of 10 July 2012. Apart from recapitalisation measures, the budgetary deviation in 2012 is linked to a combination of weaker-than-expected revenues (taking into account the impact of discretionary measures and the base effect) and higher intermediate consumption and social transfers. The less tax-rich growth composition and a stronger deterioration in the labour market implied major revenue shortfalls, in particular of direct and indirect taxes, as well as higher social expenditure. Spain adopted sizeable consolidation measures during 2012, amounting to around 4 % of GDP, including around 1,5 % of GDP on the revenue side and 2,5 % of GDP on the expenditure side. Those measures partly compensated also for an underlying deterioration in the structural balance due to rising interest payments and higher social transfers.
(9)

Based on the assessment of the Stability Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections in the Programme is plausible. In particular, the Stability Programme scenario for 2013 is very close to the 2013 Commission services 2013 spring forecast, while for 2014 it is slightly more optimistic. Medium-term deficit projections are made under a slightly optimistic growth scenario, above potential growth. The objective of the budgetary strategy outlined in the Stability Programme is to bring the deficit from 0,8 % of GDP in 2012 to 0,6 % of GDP in 2014. However in the outer years of the programme period, the deficit is forecast to deteriorate to 1,3 % of GDP both in 2015 and 2016. This is the result of the introduction of the new VAT rules regarding electronic services, entering into force on 1 January 2015. According to these rules, the VAT revenues generated from e-commerce activities will be transferred from the country where the supplier is located to that of the residence of the customer. The impact of the new rules is estimated by the authorities to lower tax revenues from VAT by 1,4 % of GDP. The Government has already announced that the standard VAT rate will be increased, with a view to make up a part of the revenue loss. The Stability Programme confirms the previous medium-term budgetary objective (MTO) of a structural surplus of 0,5 % of GDP. The MTO is in line with the requirements of the Stability and Growth Pact. Based on both the Commission services 2013 spring forecast as well as on the (recalculated) structural budget balance in the Stability Programme, Luxembourg is expected to be at a structural surplus of 0,1 % of GDP, which is below the MTO, in 2012, and is projected to achieve its MTO in 2013. However, Luxembourg is projected to depart again from its MTO starting from 2014 by 0,3 % of GDP and even further in 2015 and 2016. The national authorities have reiterated their objective to return to the MTO at the latest in 2017 so as to provide greater room for manoeuvre. At 20,8 % of GDP in 2012, gross government debt is well below the Treaty reference value.
(9)

The objective of the budgetary strategy outlined in the 2014 Stability Programme is to correct the excessive deficit by 2016 and reach the medium‐term objective in 2017. The Stability Programme confirms the medium‐term objective of a balanced budgetary position in structural terms, which is more stringent than what the Stability and Growth Pact requires. The Stability Programme plans to bring the deficit below 3 % of GDP in 2016, in line with the deadline set in the Council Recommendation of 21 June 2013 (6), and targets a deficit for 2014 below the one recommended (5,5 % of GDP versus 5,8 % of GDP). However, the annual improvement of the (recalculated) structural balance planned in the Stability Programme falls below the recommended effort as of 2014. For 2017, the plan envisages sufficient progress towards the medium‐term objective, although this may not be enough to reach it in the same year as declared in the Stability Programme. The Stability Programme projects the government debt ratio to peak in 2015 at 101,7 % of GDP and to start declining thereafter. Overall, the budgetary strategy outlined in the Stability Programme is only partly in line with the requirements of the Stability and Growth Pact. The macroeconomic scenario underpinning the budgetary projections in the Stability Programme, which has not been produced or endorsed by an independent body, is broadly plausible for 2014 and subject to downside risks in 2015 when compared with the Commission services 2014 spring forecast. For 2016‐2017, the GDP growth rates in the Stability Programme seem somewhat optimistic when seen against current estimates of the potential growth rate of the economy and the remaining post‐crisis economic adjustment needs. Therefore, the deficit and debt adjustment paths are also subject to downside risks. Moreover, concrete measures to support the headline deficit targets from 2015 onwards are not yet sufficiently specified, especially regarding the changes to tax legislation within the framework of the planned tax reform. Other risks relate to contingent liabilities and the yields of planned savings at local and regional levels. Based on the Commission forecast, the fiscal effort over 2013‐2014 falls short by 1,1 percentage points in terms of (corrected) change in the structural balance (although this figure is inflated by recent changes in the methodology for the estimation of potential output) and by 0,4 percentage points compared to the amount of measures estimated as necessary at the time of the recommendation under the Excessive Deficit Procedure. Based on its assessment of the Stability Programme and the Commission forecast, pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the measures underpinning the budgetary strategy need to be specified further and that additional efforts are needed to fully comply with the Council Recommendation under the Excessive Deficit Procedure.
(3)

The key principles of the EU internal market legislation for gas and electricity are laid down in Directive 2009/72/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for internal market in electricity (2), Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas (3), Regulation (EC) No 714/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the network for cross-border exchanges in electricity (4) and Regulation (EC) No 715/2009 of the European Parliament and of the Council of 13 July 2009 on conditions for access to the natural gas transmission networks (5), which are applicable in the Member States as of 3 March 2011. Important rules of the EU internal market legislation for gas and electricity are also set out in legally binding network codes and guidelines, adopted on the basis of the above legislation and partially under development.
EN Official Journal of the European Union C 66/1

COUNCIL RECOMMENDATION

of 17 February 2015

concerning the discharge to be given to the Commission in respect of the implementation of the operations of the European Development Fund (eighth EDF) for the financial year 2013

(2015/C 66/01)

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the fourth ACP-EEC Convention, signed at Lomé on 15 December 1989 (1) and amended by the Agreement signed in Mauritius on 4 November 1995 (2),

Having regard to the Internal Agreement between the Representatives of the Governments of the Member States, meeting within the Council, on the financing and administration of the Community aid under the Second Financial Protocol to the fourth ACP-EC Convention (3) (the ‘Internal Agreement’) setting up, amongst others, the eighth European Development Fund (eighth EDF), and in particular Article 33(3) thereof,

Having regard to the Financial Regulation 98/430/EC of 16 June 1998 applicable to development finance cooperation under the fourth ACP-EC Convention (4), and in particular Articles 66 to 74 thereof,

Having examined the revenue and expenditure account and the balance sheet relating to the operations of the eighth EDF as at 31 December 2013 and the Annual Report of the Court of Auditors on the activities funded by the 8th, 9th and 10th European Development Funds (EDFs) concerning the financial year 2013, together with the Commission’s replies contained in that Annual Report (5),

Whereas:

(1) Pursuant to Article 33(3) of the Internal Agreement, the discharge for the financial management of the eighth EDF is to be given to the Commission by the European Parliament on the recommendation of the Council.

(2) The overall implementation by the Commission of the operations of the eighth EDF during the financial year 2013 has been satisfactory,

HEREBY RECOMMENDS that the European Parliament give the Commission a discharge in respect of the implementation of the operations of the eighth EDF for the financial year 2013.

Done at Brussels, 17 February 2015. For the Council The President J. REIRS

(1) OJ L 229, 17.8.1991, p. 3.

(2) OJ L 156, 29.5.1998, p. 3.

(3) OJ L 156, 29.5.1998, p. 108.

(4) OJ L 191, 7.7.1998, p. 53.

(5) OJ C 398, 12.11.2014, p. 289.