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Commission Regulation (EC) No 691/96 of 16 April 1996 concerning the classification of certain goods in the combined nomenclature

http://publications.europa.eu/resource/cellar/a10467f9-d7ec-4176-be98-03dff3333ecf

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L_1996097EN. 01001301. xml 18. 4. 1996    EN Official Journal of the European Communities L 97/13 COMMISSION REGULATION (EC) No 691/96 of 16 April 1996 concerning the classification of certain goods in the combined nomenclature THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the Common Customs Tariff (1), as last amended by Commission Regulation (EC) No 586/96 (2), and in particular Article 9 thereof, Whereas in order to ensure uniform application of the combined nomenclature annexed to the abovementioned Regulation, it is necessary to adopt measures concerning the classification of the goods referred to in the Annex to this Regulation; Whereas Regulation (EEC) No 2658/87 has set down the general rules for the interpretation of the combined nomenclature and those rules also apply to any other nomenclature which is wholly or partly based on it or which adds any additional subdivision to it and which is established by specific Community provisions, with a view to the application of tariff and other measures relating to trade in goods; Whereas, pursuant to the said general rules, the goods described in column 1 of the table annexed to the present Regulation must be classified under the appropriate CN codes indicated in column 2, by virtue of the reasons set out in column 3; Whereas it is accepted that binding tariff information issued by the customs authorities of Member States in respect of the classification of goods in the combined nomenclature and which do not conform to the rights established by this Regulation, can continue to be invoked, under the provisions in Article 12(6) of Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (3), for a period of three months by the holder, Whereas the measures provided for in this Regulation are in accordance with the opinion of the Tariff and Statistical Nomenclature Section of the Customs Code Committee, HAS ADOPTED THIS REGULATION: Article 1 The goods described in column 1 of the annexed table are now classified within the combined nomenclature under the appropriate CN codes indicated in column 2 of the abovementioned table. Article 2 Binding tariff information issued by the customs authorities of Member States which does not conform to the rights established by this Regulation can continue to be invoked under the provisions of Article 12 (6) of Regulation (EEC) No 2913/92 for a period of three months. Article 3 This Regulation shall enter into force on the 21st day following its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 16 April 1996. For the Commission Mario MONTI Member of the Commission (1)  OJ No L 256, 7. 9. 1987, p. 1. (2)  OJ No L 84, 3. 4. 1996, p. 18. (3)  OJ No L 302, 19. 10. 1992, p. 1. ANNEX Description of goods Classification CN code Reasons (1) (2) (3) 1. Preparation, with a basis of amylaceous substances, obtained by etherification of a wheat flour and with a starch content of aproximately 61 % by weight as determined by the method given in Annex II to Commission Regulation (EEC) No 4154/87 (OJ No L 392 of 31. 12. 1987, p. 19). This is a preparation of the kind generally used in the paper industry. 3809 10 30 Classification is determined by the provisions of General Rules 1 and 6 for the interpretation of the combined nomenclature, and by the wording of CN codes 3809, 3809 10 and 3809 10 30. See, also, the HS Explanatory Notes to heading 38. 09, Par (A) (1), first sub-paragraph. 2. Mixture of carboxylic acids containing by weight about 79 % of azelaic acid, 20 % of other dibasic acids and 1 % of monobasic acids. 3824 90 90 Classification is determined by the provisions of General Rules 1 and 6 for the interpretation of the combined nomenclature, and by the wording of CN codes 3824, 3824 90 and 3824 90 90. The product is considered to be insufficiently pure to be classified in Chapter 29. 3. Mixture of methyl esters of the fatty acids from rape-seed oil, with the following approximate distribution of fatty acids: % by weight C 16:0 4,8 C 18:0 1,6 C 18:1 60,6 C 18:2 20,9 C 18:3 8,7 This mixture is used, in particular, as a bio-fuel. 3824 90 90 Classification is determined by the provisions of General Rules 1 and 6 for the interpretation of the combined nomenclature, and by the wording of CN codes 3824, 3824 90 and 3824 90 90

Proposal for a COUNCIL DECISION authorizing certain Member States in accordance with Article 8(4) of Council Directive 92/81/EEC to introduce or continue to apply exemptions from, or reductions in, excise duties on certain mineral oils used for specific purposes

http://publications.europa.eu/resource/cellar/d6e90375-7220-4db2-bcff-dd21452c678d

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 15. 04. 1996 COM(96) 156 final Proposal for a COUNCIL DECISION authorizing certain Member States in accordance with Article 8(4) of Council Directive 92/81/EEC to introduce or continue to apply exemptions from, or reductions in, excise duties on certain mineral oils used for specific purposes (presented by the Commission) - 2- EXPLANATORY MEMORANDUM Under Article 8(4) of Council Directive 92/81/EEC1 of 19 October 1992 on the harmonization of the structures of excise duties on mineral oils, the Council, acting unanimously on a proposal from the Commission, may authorize any Member State to introduce exemptions from, or reductions in, excise duties on the grounds of specific policy considerations. The Irish authorities have informed the Commission that they wish to apply differentiated rates of excise duty on unleaded petrol to reflect different environmental categories. The Member States have been informed of this request in accordance with the Directive. The Directive provides for the Commission to review such exemptions and reductions periodically. If the Commission considers that they may no longer be applied on the grounds that they distort competition or the operation of the internal market or are incompatible with Community policy on protection of the environment, it is to submit appropriate proposals to the Council. In any event, the Commission is to submit a report to the Council on such exemptions and reductions no later than 31 December 1996. OJ No L 316, 31. 10. 1992, p. 12. - 3- Proposal for a COUNCIL DECISION authorizing certain Member States in accordance with Article 8(4) of Council Directive 92/81 /EEC to introduce or continue to apply exemptions from, or reductions in, excise duties on certain mineral oils used for specific purposes THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to Council Directive 92/81/EEC of 19 October 1992 on the harmonization of the structures of excise duties on mineral oils, and in particular Article 8(4) thereof, Having regard to the proposal from the Commission, Whereas, under Article 8(4) of Council Directive 92/81/EEC, the Council, acting unanimously on a proposal from the Commission, may authorize any Member State to introduce exemptions from, or reductions in, excise duties on the grounds of specific policy considerations; Whereas the Irish authorities have informed the Commission that they wish to apply differentiated rates of excise duty on unleaded petrol to reflect different environmental categories; Whereas the other Member States have been informed of this notification; Whereas the Commission and all the Member States accept that such exemption is justified on the grounds of specific policy considerations and that it does not give rise to distortions of competition or hinder the operation of the internal market; Whereas the Commission regularly reviews reductions and exemptions to monitor their continued compatibility with the proper operation of the internal market or with Community policy on protection of the environment; Whereas, under Article 8(6) of Council Directive 92/81/EEC, the Council is to review the situation no later than 31 December 1996 on the basis of a report by the Commission, HAS ADOPTED THIS DECISION: Article 1 In accordance with Article 8(4) of Council Directive 92/81/EEC and without prejudice to the obligations imposed by Council Directive 92/82/EEC of 19 October 1992 on the the Republic of Ireland is hereby approximation of excise duties on mineral oils, authorized to apply until 31 December 1996 differentiated rates of excise duty on unleaded petrol to reflect different environmental categories, provided that such rates at all times respect the minimum rates of duty on mineral oils laid down in Community law. Article 2 This Decision is addressed to the Republic of Ireland. Done at Brussels, For the Council The President OJ No L 316, 31. 10. 1992. p. 19. ISSN 0254-1475 COM(96) 156 final DOCUMENTS EN 09 Catalogue number : CB-CO-96-168-EN-C ISBN 92-78-02613^1 Office for Official Publications of the European Communities L-2985 Luxembourg

Proposal for a Council Regulation (EC) fixing a supplementary premium payable to sheep producers in non-less favoured areas of Ireland and the United Kingdom in respect of Northern Ireland

http://publications.europa.eu/resource/cellar/60b83ec5-13ca-4f06-a9a4-506b173ae4ab

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COMMISSION OF THE EUROPEAN COMMUNITIES -it <t Brussels, 15. 04. 1996 COM(96) 152 final 96/0102 (CNS) Proposal for a COUNCIL REGULATION (EC) fixing a supplementary premium payable to sheep producers in non-less favoured areas of Ireland and the United Kingdom in respect of Northern Ireland (presented by the Commission) Explanatory Mémorandum The Council, in December 1995, made the following declaration in relation to sheepmeat prices in Ireland. "The Council recalls in the context of the 1995 prices package, it registered its concern about sheepmeat price developments in Ireland and Northern Ireland. Despite the welcome effort which the Commission made to rectify the situation by means of private storage operations, il notes that a certain group of producers, essentially producers outside the Icss-lavourcd- arca,suffered from exceptionally low prices during the late Spring period, a period which is crucial to their profitability. As the annual premium is calculated on the basis of average price throughout the season, the Council regulation provides no power for the Commission which would enable it to resolve this problem. The Council declares, however, its readiness to decide on a Commission proposal, in the knowledge of its financial implications, which could be presented when budgetary resources premit, providing for the granting of a supplementary premium strictly limited to the marketing year 1995/96, and to those producers concerned in Ireland and Northern Ireland. " The background to this declaration lies in the fact that, while prices in Ireland and Northern Ireland fell broadly in line with the decrease in the Community average market price of (>% in 1995, the fall in prices was severe during the Spring period which is of critical importance to certain producers. In comparison to the last two years, prices were lower in spring 1995 in Ireland and Northern Ireland by about 15 %. Production costs and lamb prices are generally very high at this time of year so that the fall in prices, brought about, in particular, by increased and unusual supply patterns and reduced demand, sharply reduced producers' returns. The vast majority of the producers concerned in Ireland and Northern Ireland are located in non less favoured areas where soil and climatic conditions permit the production of early lamb. i In response to this difficult situation, the Commission operated two private storage schemes attracting, in all, about I 000 t sheepmeat in Ireland and Northern Ireland. While these schemes certainly had positive effects in limiting further price falls, they did not restore prices to normal levels. The sheepmeat regime provides that the level of the Community ewe premium is calculated on the basis of the difference between the Community average market price and the basic price. In 1995, the level of this premium at 24. 821 Ecu per ewe (heavy lamb producer) was up by approximately 3. 34 Ecu on 1994 reflecting the fall in market prices in the Community. The Commission, therefore, stresses that the premium is playing its normal role of compensating producers when market prices fall. However, Council Regulation (EEC) N° 3013/89 provides no means for taking account of severe price falls over a critical limited period as was the case in spring 1995 in Ireland and Northern Ireland. Therefore the Council's preparedness to find a solution to the problem must be addressed in another manner. It is for this reason that the Commission proposal takes the form of a separate regulation fixing a supplementary premium limited to the producers concerned and to the 1995 marketing year. The proposed level of the supplementary premium is 6. 5 Ecu per ewe. This level reflects the Commission's indication to the Council that, as it would be difficult to quantify exactly the extent of the overall drop in income, it would be more reasonable to adopt a forfaitaire approach which would Cnsure that the measure was not too costly. 3 When the Council has adopted this proposal, the Commission, in the detailed rules, will ensure that payment is limited to producers in the areas concerned who applied for and were granted the 1995 ewe premium and is made subject to the same conditions as those applying to that premium. The financial consequences for the 1996 budget are further expenditure of 9. 5 MECU. •+ Council Régulai ion (IX ) No fixing a supplementary premium payable to sheep producers in non-less favoured areas of Ireland and the United Kingdom in respect of Northern Ireland THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament (l). Whereas Article 5 of Regulation (EEC) No 3013/89 on the common organisation of the market in sheepmeat and goatmeat (2) as last amended by Regulation (EC) No 1265/95 (i) provides for the grant of a premium to the extent necessary to offset any income loss to sheepmeat producers in the Community; whereas the loss of income is calculated on the basis of the difference between the Community average market price and the basic price; Whereas in Ireland and Northern Ireland prices and production costs in late Spring are normally relatively high; whereas in late Spring 1995, due in particular to abnormal supply patterns, prices there were exceptionally low thus reducing sharply producers' returns from the market; whereas the producers concerned are located principally outside the I ess-favoured areas; Whereas the level of the ewe premium is insufficient to compensate these producers; ( i) (2) OJN° L 289 7. 10. 1989 p. 1 (3) OJN° L 123 3. 6. 1995 p. 1. Whereas Regulation (EEC) No 3013/89 does not provide any means to rectify this very difficult and exceptional situation; whereas, it is therefore necessary to provide for a supplementary premium limited to the producers affected in the regions indicated and to the 1995 marketing year, HAS ADOPTED THIS REGULATION Article 1 In Ireland and the United Kingdom in respect of Northern Ireland in areas other than those defined in Article 3 (3) (4) and (5) of Directive 75/268/EEC a supplementary premium of 6. 5 ECU per ewe is payable to producers in respect of the 1995 marketing year, This supplementary premium is granted subject to the same conditions as those laid down for the granting of the 1995 premium to sheepmeat and goatmeat producers. Article 2 Detailed rules for the application of this regulation shall be adopted by the Commission, if necessary, in accordance with the procedure laid down in Article 30 of Regulation (EEC) No 3013/89. Article 3 This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council L> FINANCIAL STATEMENT BUDGET HEADING: 2220 APPROPRIATIONS: ECU I ?52m TITLE: Council Regulation fixing an additional premium payable to sheepmeat producers in non-lcss-favoim <1 areas in Ireland and Northern Ireland LEGAL BASIS: Article 43 of the Treaty AIMS OF PROJECT: To grant an additional premium to sheepmeat producers in non-less-favoured areas in Ireland and Northern Ireland to offset a substantial loss of income incurred by these producers in spring 1995 on account of market prices which were extremely low for the time of year. The premium is confined to the 1995 marketing year. FINANCIAL IMPLICATIONS 5. 0. EXPENDITURE - CHARGED TO THE EC BUDGET PERIOD OF 12 MONTHS million ecu 9. 5 CURRENT FINANCIAL YEAR (%) million ecu 9. 5 FOLLOWING FINANCIAL YEAR million ecu - NATIONAL ADMINISTRATION - OTHER REVENUE • OWN RESOURCES OF THE EC (LEVIES/CUSTOMS DUTIES) NATIONAL ESTIMATED EXPENDITURE ESTIMATED REVENUE 1998 1999 2000 2001 METHOD OF CALCULATION: The cost of the measure is estimated as follows: Ireland: 1 120 000 head x ECU 6. 5/head = ECU 7. 3 million (A) x 1. 013= Northern Ireland: 320 000 head x ECU 6. 5/head = ECU 2. 1 million (A) x 1. 016 ECU 7. 4 million ECU 2. 1 million ECU 9. 5 million CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT- BUDGET? IS A SUPPLEMENTARY BUDGET NECESSARY? WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? VEfc/NO YES/NO YES/NO YES/NO 5. 1. 5. 0. 1. 5. 1. 1. 5. 2. 6. 0. (». l. 6. 2. 6. 3. OBSERVATIONS: ISSN 0254-1475 COM(96) 152 final DOCUMENTS EN 03 Catalogue number : CB-CO-96-162-EN-C ISBN 92-78-02557-7 Office for Official Publications of the European Communities L-2985 Luxembourg tf

Opinion of the European Monetary Institute on a consultation from the Swedish Ministry of Finance under Article 109f (6) of the Treaty establishing the European Community (the “Treaty”) and Article 5.3 of the Statute of the EMI as elaborated in the Council Decision of 22nd November 1993 (93/717/EC) on a draft proposal for legislation (Law 1995/96:172) repealing the Law on State support for banks and other credit institutions (Law 1993:765) (CON/96/03)

http://publications.europa.eu/resource/cellar/75452cb7-6aaf-11ea-b735-01aa75ed71a1

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OPINION OF THE EUROPEAN MONETARY INSTITUTE on a consultation from the Swedish Ministry of Finance under Article 109f (6) of the Treaty establishing the European Community (the “Treaty”) and Article 5. 3 of the Statute of the EMI as elaborated in the Council Decision of 22nd November 1993 (93/717/EC) on a draft proposal for legislation (Law 1995/96:172) repealing the Law on State support for banks and other credit institutions (Law 1993:765). CON/96/03 1. The above consultation was initiated on 14th March 1996 by the Swedish Ministry of Finance which requested an opinion by mid April 1996. For this purpose, it submitted the text of the above draft legislation together with an explanatory memorandum (DS 1995:67) to the EMI. 2. The EMI’s competence to deliver an opinion is based on Article 1, section 1, fifth indent, of the Council Decision of 22nd November 1993 (93/717/EC), as the draft legislation concerns the termination of State support facilities for the Swedish banking industry and may, thus, affect the stability of financial institutions and markets. 3. In 1992 Sweden adopted emergency measures to, inter alia, ensure that banks and certain other credit institutions could meet their commitments on a timely basis. This was introduced as a result of a banking crisis which developed after a downturn in the real estate market, the consequences of which became so grave that they threatened the stability of the financial markets as a whole. These measures, laid down in Riksdag Decision 1993:765, entailed the possibility of State guarantees, loans, capital contributions and other instruments to safeguard the interests of creditors of financial institutions as well as to protect the functioning and integrity of the financial markets. They were intended to be of a temporary nature and to last as long as the banking crisis would warrant their continued existence. After monitoring developments in the financial markets in general and the situation with regard to individual institutions in particular, Swedish financial authorities have come to the conclusion that the above emergency measures have fulfilled their function and may now be terminated. The Swedish financial authorities concluded that the banking system has undergone a radical financial and economic rehabilitation over the past two to three years. In particular, bad loans have diminished, the capital adequacy of financial institutions has strengthened and there is an increased potential in profit growth as well as improved financing conditions. In addition to these macro-economic considerations which plead for an abolition of the above emergency - 2 - measures, review of the financial situation with regard to individual institutions also shows that continued existence of the above emergency measures is not warranted. It is therefore proposed, through the above draft legislation, to repeal Riksdag Decision 1993:765 containing the emergency measures, per 1st July 1996. 4. The EMI is not in a position to assess in detail whether the effects of the banking crisis in Sweden at the beginning of this decade have now diminished to such an extent that the measures established through Riksdag Decision 1993:765 are no longer justified. This applies a fortiori to the financial soundness of individual credit institutions. The EMI does, at the same time, not have any reason to question the considerations of Sweden’s financial authorities with regard to the abolition of the emergency measures. In addition, an undue continuation of such measures may give rise to competition distortions. Moral hazard problems may in this case also arise as financial institutions whose positions are covered by State guarantees may be inclined to take more risks than those whose business is not. Hence, the abolition of the above emergency measures marks the financial system’s return to the undistorted working of an open market economy with free competition favouring an efficient allocation of resources. The EMI, therefore, welcomes the fact that the Swedish financial authorities have, over the past few years, closely monitored whether developments warranted continued existence of the emergency measures and now, on the basis of their observations, proposed termination thereof. Finally, the EMI notes with interest the undertaking by Sweden’s financial authorities to continue work on reshaping the organisation and functioning of prudential supervision and, in particular, to focus on internal risk management and control practices. 5. The EMI agrees that this opinion may be made public by the competent Swedish authorities at their discretion. 12th April 1996

Report on the Operation of Directive 90/88

http://publications.europa.eu/resource/cellar/862e6e76-dc7e-4f38-b616-a2809e62ba51

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, l2. U4. iyyo COM(96) 79 final 96/0055 (COD) Report on the Operation of Directive 90/88 Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE amending Directives 87/102 (as amended by Directive 90/88) for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit (presented by the Commission) I. II Introduction and Summary » The mathematical formula in Directive 90/88/EEC 1. 2. 3. 4. Simple interest rate calculation Yearly Compounded Interest The 1 year compounding period: The EC formula a) b) Present Value Summing up different calculations: the E symbol 1 5 6 7 8 10 11 11 III The calculation of the Annual Percentage Rate of Charge in the EC 13 and the other members of the EEA 1. 2. 3. General Observations a) b) Interest and the Annual Percentage Rate of Charge Verbal Definitions of the Annual Percentage Rate of Charge The Application of the EC formula The calculation of the Annual Percentage Rate of Charge in Germany and France a) b) c) The German method The French method Comparison of the EC formula and the German and French methods 4. Arguments in favour of the EC formula IV. Elements of Cost to be included in the calculation a) b) Elements of Cost Situation in the Member States V. Other issues 1. 2. 3. The Denomination of the Annual Percentage Rate of Charge Accuracy Time definitions VI. Conclusions and Recommendations Annexes: 13 13 14 15 17 17 19 21 23 25 25 25 32 32 35 36 38 I II III Articles 1 and 1a of Directive 87/102 (as amended by Directive 90/88)40 42 National legislation transposing Directive 90/88 47 The different formulae in use (German, French, Finnish) /fn I. Introduction and Summary On 22 February 1990, the Council adopted Directive 90/88 amending regulations and 1. Directive 87/102 administrative provisions of the Member States concerning consumer credit". This Directive entered into force on 31 December 1992. the approximation of laws, "for the 2. Pursuant to Article 1a5b of the amended Directive, the Commission must: "submit to the Council a report, accompanied by a proposal, which will make it possible in the light of experience, to apply a single Community mathematical rate of charge". the annual percentage for calculating formula Pursuant to Article 1a(5)(c), the Council shall "acting by a qualified majority on the basis of the proposal from the Commission, take a decision before 1 January 1996". Background1 for The first Consumer Credit Directive, Directive 87/102/EEC the 3. approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit2, introduced the principle that a the calculation of the "annual uniform method should be established percentage rate of charge". Although the principle was established, the method was left open. Following discussions with government experts, the Commission presented a proposal for a Directive3, later amended4, to regulate not only the mathematical aspect but also the elements to be included in the calculation. Directive 90/88 was adopted by the Council on 22 February 1990. The Directive introduced a Community method of calculating the "annual percentage rate of charge" for consumer credit and defined the credit cost items to be used in the calculation by indicating those costs which were not to be taken into account5. for All Member States were to ensure, at least, that only one mathematical 4. formula for the calculation of the "annual percentage rate of charge" was in use in their territory. For a transitional period until 1 January 1996, those Member States which used a different mathematical formula for the calculation of the "annual percentage rate of charge" (prior to 1 March 1990) were permitted to continue to do so. For further detail on the background to Directives 87/102 and 90/88, see Chapter 2 of the Report on the application of Directive 87/102: COM(95)117 of 11. 05. 95 OJ L 42 of 12. 2. 87, p. 48 OJ C 155 14. 6. 88 p. 10 4 OJ C 155 23. 06. 89 p. 4 Recital 3, Directive 90/88 5. Directive 90/83 was incorporated into the Agreement on the European Economic Area (EEA) and this Report therefore covers Iceland, Liechtenstein and Norway as well as the 15 members of the European Union. 6. Pursuant to the obligation in Article 1a(5)(b) on the Commission to present to the Council "a Report, accompanied by a proposal" which will make it possible to definitely apply a single Community mathematical formula for calculating the "annual percentage rate of charge", the Commision hired a consultant expert in financial mathematics to carry out a study of the application of Directive 90/88 in the Member States of the European Community and other members of the EEA6. Meetings and contacts with government experts also took place between April 1995 and January 1996. On the basis of the results of the above study, other studies of the transposition of the Directive into domestic law7, and particularly the results of contacts with governmental experts, the Commission presents the present Report which is accompanied by a proposal for a Directive8 which will "make it possible, in the light of experience, to apply a single Community mathematical the annual percentage rate of charge". for calculating formula 7. While the Directive requires an evaluation and a report which ". will make it possible, in the light of experience, to apply a single Community mathematical formula. ", this requires an examination of other issues than the mathematical formula alone, in order to define a uniform application of the formula. Conclusions of the Report9 8. Transposition of the Directive has been completed in the majority of Member States of the European Community and other members of the EEA. The formula contained in Annex II of the Directive is presently in use in all Member States of the European Community and other members of the EEA, with the exception of Germany, France10 and Finland. Study of the method of calculation of APR in EEA States, Contract A0 2600/94/000101. Available at DG XXIV. See footnote 3 of COM(95)117, Report on the operation of Directive 87/102/EEC on the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit While the term 'Decision' is used in Article 1a5c, this is not a 'Decision' as defined by Article 189 of the Treaty but rather, since its objective would be to require Member States to change their in the Explanatory Memorandum which accompanies the proposal for a Directive. This is further explained laws, a Directive. 9 10 Chapter VI infra See Annex II of this document 9. Concerning the verbal definition of the "annual percentage rate of charge" (APR), some linguistic amendments are required to the English and Greek language versions of Article 1a(1)(a). Although following the transposition of the Directive by the Member States, 10. the elements included in the term are not totally identical, such identity would in fact be desirable for reasons of transparency. However, bearing in mind that much effort has been expended in communicating to consumers the meaning of the terms presently used in each Member State, it does not seem appropriate to propose a change in the wording used in the different languages. Nevertheless, it is desirable that a common feature be included in order to enable consumers, terms as being particularly equivalent to those in use in their own Member States. Following discussions with government experts, and in accordance with the principles of proportionality and subsidiarity, it is proposed that the use of a symbol in addition to the existing term will be required. This symbol will be identical in each Member State. This will not constitute a change in the language of the term and will only involve a small additional cost for transposition. in crossborder situations, to recognise these 11. As far as the mathematical formula is concerned, it has been confirmed that the formula in Directive 90/88 is the only correct formula and it is therefore recommended that it should be retained and made definitely general throughout the Member States of the European Community and the other members of the EEA. As regards the the elements of cost which should be 12. calculation of the annual percentage rate of charge, the transposition of the Directive has led to a situation where there is a harmonised minimum level of protection for all consumers throughout the European Community and the other their members of the EEA. As Member States report few problems with operation, and as any differences that do result are minimal in nature, it is not proposed to amend the list of exemptions in Article 1a(2) at this time. included in 13. Accordingly, a draft Directive is proposed at the same time as this Report, dealing with the following amendments to Directive 90/88: the requirement to use, in addition to the term "annual percentage rate of charge", a common logo (symbol) which will be identical in each Member State the deletion of Article 1a(5) in order to remove the transitional measure and this Report and associated to the legislative proposal the deletion of Article 1a(3) as this measure has not been availed of by any Member State11 references 11 No objections were received from Member States to this proposal at the meeting in April 1995 (paragraph 6 supra) or since. the insertion in Annex II of the Directive of a requirement to use accuracy to two decimal places - and any associated amendment to Annex III the insertion in Annex II of the Directive of a requirement to use a 365 or 366 day year - and any associated amendment to Annex III linguistic changes to the English and Greek language versions of the Directive at Article 1a(1)(a) 14. As regards other substantive elements of Directive 90/88/EEC, any proposals for amendments in this regard would be considered together with possible proposals following the outcome of the consultation on the Report on the operation of Directive 87/10212. 12 Footnote 1 supra II The mathematical formula in Directive 90/88/EEC 15. Directive 90/88 introduced a common method for the calculation of the "annual percentage rate of charge" into the requirement of price disclosure in consumer credit already contained in Directive 87/102/EEC. The intention was that the annual percentage rate of charge should add a commonly defined and acknowledged element of price disclosure to consumer credit, making its price comparable throughout the EC as well as between different forms of consumer credit. The Directive defined the mathematical procedure for calculating the 16. annual percentage rate of charge as well as the elements of cost to be included in the calculation13. In addition, several assumptions were made for certain forms of consumer credit e. g. open-ended credit that does not provide all the information necessary to calculate the annual percentage rate of charge at the time of conclusion of the contract. The verbal definition of the "annual percentage rate of charge" is as 17. follows: "the total cost of the credit to the consumer, expressed as an annual in percentage, of accordance with Article 1a"u the amount of the credit granted and calculated and "which shall be that equivalent, on an annual basis, to the present value of all commitments (loans, repayments and charges), future or existing, agreed by in accordance with the mathematical formula set out in Annex //"15 the borrower, shall be calculated the creditor and 18. This verbal definition is expressed in a mathematical definition found at Annex II of the Directive. The Annex clarifies, in mathematical terms, those obligations which shall be made equal in their present values through the annual percentage rate of charge. 19. All the mathematical formulae currently in use in the European Community and the other members of the EEA for the calculation of the annual percentage rate of charge are basically derived from the same principles of interest calculation16. National deviations which lead to different forms of and results from the formulae applied do not derive from mathematical origins 13 14 15 16 Chapter IV infra Article 1. 2(e) of Directive 87/102 (as amended by Directive 90/88) Article 1a(1)(a) of Directive 87/102 (as modified by Directive 90/88) Annex III of this Report but rather from differences in the assumptions applied to the calculations in certain Member States. Were these assumptions identical, so too would be the results. 20. At this point an explanation is necessary, in simple mathematical terms, of the operation of the mathematical rules, both in order to understand the rules themselves and, more importantly, the other forms of calculation (the German, French and Finnish17 methods) which lead to different results as a result of differences in basic assumptions. 1. Simple interest rate calculation 21. The price of a credit is defined by the combination of three factors: the capital borrowed the charges or costs applied the time in which a capital can be used by the borrower (AK) (CK) (tK) 22. The interest rate (i) is therefore expressed by the equation: Charges (CK) i = Capital (AK) * Time (tK) 23. Using the convention that interest rates are expressed in relation to 100 currency units (%) and for a time period of one year (p. a. ), the equation reads as follows: i %p. a. = Charges (CK) * 100 * 1 year Capital (AK)* Time (tKjnyears) 24. If time is calculated in months, then "1 year" in the upper part of the formula must be replaced by "12 months". Therefore 130. 66 ECU for a loan of 1,000 ECU for one year amounts to an interest rate of 1 3 0 , 6 6 * 1 0 0 / 1 , 0 0 0 *1 = 13. 066 % p. a. 17 Finland has availed of Article 1a5a to retain a formula different to that in the Directive. Once a single formula is confirmed for use throughout the EC, it is prepared - according to declarations from Government representatives - to adopt this formula - the derogation is not for reasons of principle but to avoid having to enact two possibly different laws in a short space of time. Finnish legislation does require the disclosure of APR. 2. Yearly Compounded Interest 25. In the simple formula (cost divided by capital and time) no compounding is foreseen. While banks always receive their interest by the end of the credit contract period, a bank which receives interest payments before the end of this period can reinvest this money and thus earn additional interest. In this way, the real charges in the example given would be not only the 200 ECU after 18 months but also the additional 13. 333% on 130. 66 ECU (reduced by the amount that early payment would cost the borrower). Thus the simple interest rate does not match the real cost but produces a 26. higher amount of charges than the consumer has consented to. In other words, the annual percentage rate of charge of different consumer credit contracts are not comparable if the period during which interest is compounded is not also equal. 27. Taking the first example from Annex III of the Directive, where the lifetime of such a loan is not exactly 1 year but rather 18 months, with charges of 200 ECU, the traditional simple formula would produce the following result: 200* 100* 12 1. 000* 18 = 13. 333 % p. a. The example given in the Annex, however, states that the result should be 28. 13. 066 % p. a. The reason for this difference lies in the fact that credit contracts for different time periods are incomparable without a uniform decision about what to do with the interest earned after a certain time period. To use financial interest should be mathematics "compounded". the question is at which terms, time The definition of an interest rate with reference to 1 year therefore means 29. not only that all interest rates are expressed as "p. a. " (which means that the lifetime interest rate of a credit is divided by the number of months and multiplied by 12) but that the compounding period for the credit should be uniformly 1 year. The formula given in Directive 90/88 and in use in the majority of Member States (henceforth referred to as the EC formula) fulfils this condition. The French method of calculation does not recognize this condition at all, thus giving rise to The arbitrary compounding periods which in practice amount to 1 month. German "Rule of 360" accepts a compounding period of 1 year, in principle, but deviates from it in every case where interest has to be calculated for less than a year, especially if the lifetime of the credit does not amount to exactly 1 or more The reason is that calculating interest rates with a compounding full years. period of 1 year is not possible with the simple formula given above. 30. Criticisms have been voiced about the complexity of the EC formula and In this context, it should be noted that the the need for technical expertise. simple formula can only be used for a period during which the capital borrowed In the case of credit with monthly repayments, the accurate remains constant. require an calculation of approximation of many different calculations which, although simple in themselves, would need to be reiterated so many times that technical assistance would also be required. the annual percentage rate of charge would As will be shown below, the EC formula which is at present successfully 31. used in the large majority of Member States, is merely the more developed form of earlier formulae (in order to take more variables into account) and is more convenient and accurate to use than the other methods presently in use. 3. The 1 year compounding period: 32. As the compounding of interest is an integral part of the calculation of interest, one must already "know" the interest rate in order to use the simple formula (to calculate that interest rate) since the first year's interest must be added to the capital which will bear interest in the subsequent period (e. g. in our example, in the remaining six months in a credit of 18 months duration). The interest rate can no longer be directly calculated but is calculated as a growth rate (i) of the original capital. 33. An interest rate of 13. 066% thus increases by (1 + i ) of the original capital (1 +0. 13066) = 1. 13066 1,000 ECU amounts to 1,000 * (1 + 0. 13066) = 1,130. 66 ECU after one year. 34. This is also referred to as the "future value" of a capital as it describes the growth rate after a certain time period has passed. The amount can also be considered in terms of "growth" rather than "interest", as the growth can easily be Interest is the difference between the original capital and its future calculated. value after this growth. In the case of a credit which is repaid in total after two years, the same 35. result is achieved with the EC formula or the French or German formulae. The German and the French methods apply the simple formula in two steps: Year 1 Year 2 Capital, Capital2 = = Capital + (Capital * i) Capital + (Capital * i) + [Capital + (Capital * i)] * i Using the above example, another 0. 13066 * 1,130. 66 ECU = 147. 73 ECU for the interest of the second year should be added to the 1,130. 66 ECU, producing a result of 1,278. 39 ECU. The EC formula, on the other hand, merely simplifies the equations in a 36. still familiar way using simple algebra: Capital, Capital2 = (1 + i) * Capital = (1 + i) * (1 + i) * Capital = (1 + i)2 * Capital This simple form is directly calculable with calculators or computers using the In our example, (1 + 0. 13066)2 * 1. 000 exponential form of the same formula. ECU = 1,278. 39 ECU. In the same way, after three years, the formula would be (1 + i)3 * capital and after t years, capital, = capital * (1 + i)'. Thus the same result is achieved by the different formulae, though in a 37. simpler way using the EC formula. However, this simplicity is not the main advantage - the formula can also be applied to fractions of a year because "t" expressed in years should properly be expressed as "t/1" which means that t supposes a compounding period of 1 year. If we express "t" in terms of months then "t" would be written as "tmonth/12". 38. A capital of 1. 000 ECU for 6 months lent out at a rate of 12% p. a. would grow to capital6 = 1-000 * (1 + 0,12)6/12 = 1,000 * 1,121/2 = 1,058. 30052 ECU In the same way, instead of 6/12, this could be expressed as 182/365 days capital182 = 1,000 * (1 + fj,12)182/365 = 1,000 * 1,12182/365 = 1,058. 13624 18 39. An interest rate of 12% p. a. earns 58 ECU interest in a six month period if interest is compounded annually. While 58 ECU is less than half the interest the bank would have earned after 1 year, because this interest is being paid out earlier than foreseen in the compounding period, the bank can invest these 58 ECU for 12% for the remaining six months, with a future value of 2 ECU, thus matching if compounding occured at the end of the compounding period (1 year). This result cannot be achieved with the older methods of calculation still in use in France and Germany. that would have been reached the 60 ECU for six months 40. Using the German method, an interest rate of 12% p. a. on a capital of If fractions of a year are 1. 000 ECU would yield exactly 60 ECU for six months. involved, the simple form either fails to produce a result or does so by deviating from the underlying compounding period of 1 year e. g. by reducing it to 6 months, in this case. Instead of p. a. , it would be more accurate to describe it as 6% per half year. 18 The resu't is slightly different because a 365 day year does not divide evenly 9 41. In fact, the French method states that a rate of 6% for a half year may be multiplied by 2 to reach the annual percentage rate of charge. The compounding period in France is therefore regarded as unimportant and can be arbitrarily convened through the repayment periods (which in the case of consumer credit are normally monthly). The French method therefore usually uses a monthly compounding period. In Germany, on the other hand, the annual compounding period 42. is prescribed as a rule. However, in order to avoid exponential calculation, it deviates from this rule for the last year of the life of a credit if this year does not amount to exactly 12 months. Consumer credit contracts with a lifespan of less than a year are therefore equally misrepresented in the German and the French calculations of the annual percentage rate of charge. The results differ from each other significantly if the life-span is more than a year19. 43. Given the express intention in Directive 90/88/EEC that a single formula for the calculation of the annual percentage rate of charge should be used in order to facilitate the comparison between credit offers from different countries, the conditions of calculation must be uniform. One of the most basic conditions is that each annual percentage rate of charge should be calculated on the basis of the same compounding period of 1 year. 44. Only the mathematical formula in Directive 90/88, in use in the majority of Member States, this condition and produces comparable annual percentage rates of charge. follows 4. The EC formula 45. The simplest form20 of this mathematical formula is V =AK *(1+i)' where AK AK i t is the initial loan augmented with all charges and interest at the end of the credit's lifespan is the initial loan is the interest rate expressed p. a. (but not in percent) is the lifespan of this loan 46. It might have been closer to traditional legal understanding if the Directive had put emphasis on the total cost (C) of a credit instead of its 'present value', 19 Table at paragraph 86 infra 20 This form does not, in practice, fully take into account all elements of a transaction 10 although the mathematical meaning would have been the same, using total cost C would then have been: The formula Extended Capital + Total Cost Extended Capital multiplied by growth rate in the time period the AK + C AK *(1+i)t 47. The annual percentage rate of charge is the factor which represents the growth of an initial capital, taking into account all charges for a given time period with annual interest compounding expressed as a percent per annum. The calculation is based on real time, with daily precision where loans, repayments and charges are debited or credited to the debtor. For the sake of accuracy, therefore, the results should be expressed to an accuracy of 2 decimal places and the year shall be expressed as having 365 days21. a) Present Value The present value of all repayments and charges in consumer credit is 48. normally the initial loan. This means that if all charges expressed by the growth- rate are subtracted, the principal (the original capital) will remain. For most normal calculations, as expressed in the examples of Annex III of Directive 90/88, the above formula would be sufficient. But where there are deviations in practice e. g. with a loan being paid out later than the date of the contract (or more precisely the date on which interest is calculated), the amount of the loan would already include interest. The amount of the loan would therefore have to be used in the calculation with its present value. The EC formula therefore takes into account the present value of a loan in the following form: AK ( l + i )c A K ( l + i ) *- If the loan is paid out at the beginning of the calculation, t is 0 b) Summing up different calculations: the E symbol 49. Most consumer credit contracts do not take the simple form of a once off repayment at the end of their lifespans but are paid back in instalments. 50. As the above mentioned formula (and the simple formulae in use in France and Germany) presupposes a constant interest bearing capital for "t", 21 Table at Paragraph 125 infra 11 each credit must be divided into as many credit transactions as changes occur in the interest bearing capital. Therefore the annual percentage rate of charge is only correct if it is used 51. equally in all individual calculations and if the sum of all present values ( £ ) is equal to the sum of the present values of the loans or if the growth of the loan expressed as one single growth rate is equal to all the charges and costs incurred, whether in the present or in the future. This is the formula used in the Directive, employing the z symbol to 52. is also the indicate that a sum is to be made out of multiple calculations. It formula used in all Member States of the European Community and other members of the EEA with the exception of Germany, France and Finland. 12 Ill 1. a) The calculation of the annual percentage rate of charge in the EC and other members of the EEA General Observations Interest and the annual percentage rate of charge 53. Creditors calculate the price of credit in numerous ways and under many different names22. Although there are some general guidelines concerning the way in which charges for consumer credit are calculated, the definitions are far from uniform. Usually, creditors distinguish between "once-off costs" (one time only costs) such as fees and charges, and "interest" (variable or time costs that comprise all those charges which increase over the duration of the credit). Some banks put more emphasis on the (nominal) interest rate, others on fees. The method of distinguishing between fees and interest, and the methods of interest calculation differ not only between countries but also from one creditor to another. Sometimes this is due to the internal cost benefit calculation of a bank, institutions or the fact that the creditor must share the profits with other (brokerage fees, insurance premiums), or to facilitate the individual calculation of the cost of the credit by third parties (intermediaries or brokers). 54. National law usually assumes that creditors are free to choose any appropriate and non-arbitrary method to define the cost of a particular credit. The only requirements are transparency and completeness in the list of charges. In some countries, there is an exception to the arbitrariness of the definition of the nominal interest rate, in connection with the requirements of Article 8 of Directive 87/102 (early repayment). This article requires national rules for the calculation of an equitable reduction in the cost of the credit. Some countries fix percentages of the total cost to be refunded23 while others state that the rebate should concern only "time costs" which are expressed by the nominal interest The situation varies from State to State25, as does the definition of rate24. 22 23 24 25 A 1984 survey revealed that the term "interest" was used in 13 different ways in Germany internal It should be noted that this arbitrary use of terms only concerns alone. calculations, not the legally prescribed disclosure of the APR. In France, this is three times the contracted amount for the next payment, and then reverts. Décret 90-979 of 31. 10. 90 (Article L311-29) The notion of "interest" in the rules on price disclosure must be distinguished from "interest" as used in restrictive rules on the refund of time-connected charges (e. g. anatocism or "interest on interest"), where courts do not interfere directly with the definition of nominal interest in the contract but rather recalculate the part of the cost for rebate by using their own definition of interest. In Germany the Supreme Court has held that a "disagio" was to be considered not as a once-off fee but as hidden interest and therefore to be partially refunded in the event of early repayment. Bundesgerichtshof, 16. 11. 93, XI ZR 30/93 13 "equitable". The rule usually used for such calculations is the "Rule of 78"26 which in small credit transactions. is inaccurate, but acceptable is generally agreed it 55. The Directive did not interfere with the methods of calculation of early repayment already in use or with the definitions of interest used internally in contracts. As far as interest was concerned, the Directive aimed to harmonise the notion of interest as it is used in the "interest rate" for price disclosure, i. e. to state a uniform requirement to disclose the result of this cost calculation in a Community-wide comparable credit price - the annual percentage rate of charge. 56. In this respect all Member States are in agreement - no State leaves it to the discretion of the contractors to define the method of calculation of the annual percentage rate of charge or the elements to be included although, as we have seen, France and Germany have left some arbitrary elements insofar as creditors may influence the annual percentage rate of charge by choosing special life spans for their credit contracts. 57. The form of the regulation varies. Most countries do not simply transcribe the verbal form of the calculation into their law but leave its mathematical definition to administrative bodies. b) Verbal Definitions of the annual percentage rate of charge 58. Directive 90/88 defines the annual percentage rate of charge directly by the method of its calculation, while Directive 87/10227 presupposed a definition. National legislation distinguishes between the definition of the annual percentage rate of charge and the method of its calculation, using the traditional relationship between time, cost and capital expressed on an annual basis in percent as the most important element of definition followed by the method of its calculation28. 26 27 28 Accurately defined in Section 2. 510 of the US Consumer Credit Code Regulation Z In §226. 8(b)(7), the "Rule of 78" takes its name from the sum of the digits 1 through 12. the first month, the creditor earns 12/78ths of the agreed interest. After 2 months, the creditor has earned 23/78ths i. e. the first 12/78th plus 11/78ths. The formula wherein the time periods are expressed as months defines those parts of the total interest earned which must be refunded as follows: frest of lifetime in months + 1)*rest of lifetime] * total interest (lifetime in months + 1 )*lifetime in months For commentary, see German Bundesgerichtshof Neue Juristische Wochenschrift 1979 p. 542. Article 1. 2e of Directive 87/102, amended by Directive 90/88 Annex II of this Report contains a list of and brief analysis of national transposing legislation 14 ° Denmark29 requires the statement of the "annual costs in percent" 0 Germany30 defines the "initial effective interest rate" as "the total amount of charges expressed as an annual percent rate of the net capital or cash price" ° Spain31 defines the "annual equivalent rate" as the total cost of credit expressed as an annual percentage of the capital lent" 0 France defines the rate as the "global effective rate" ° Ireland32 defines the rate as the total cost of credit expressed in an annual percentage of the amount of credit given. " ° The Italian33 and Portuguese34 laws use a similar definition 0 The Netherlands35 defines an "effective credit remuneration percentage on a year-basis as the reward for the credit according to the agreement, expressed as a percentage for a year of the open balance" 0 Sweden36 defines the "effective interest" as "the credit cost to the consumer, expressed as an annual rate in percent of the amount of the credit granted, where the instalment payments made during the life span of the loan have been appropriately taken into account. " Similar definitions can be found in the other Member States. The UK37 is 59. the only State to refer to the compounding period: "The annual percentage rate of charge is a rate per annum compounding annually expressed as a percentage such that a) the sum of present values as at the relevant date of all repayments of credit and the total charge for credit; and b) the sum of present values as at the relevant date of all credit under the agreement would, when calculated at that rate be equal. " Austria combines both definitions in one article38 and defines the annual percentage rate of charge as the "decursive percentage rate for a full year which establishes numerical equality between the sum of the credit paid out and the sum of all payments. " and provides the explanation that "It expresses the total cost of credit in relation to the credit granted. " 29 Art. 9. 1. 4, 1990/398 Lov om kreditaftaler of 13. 6. 90 Art. 4 alinéa 2 of the Verbraucherkreditgesetz of 17. 12. 90 31 Art. 18 b of the Ley de crédito al consumo of 23. 03. 95 32 Consumer Credit Act 1995, s. 9 33 Art. 19 Legge Communitaria 142 of 19. 2. 92 34 Art 2, al (a) Decreto-Lei of 21. 09. 91 35 Art 1. 2 k Wet op het consumentenkrediet of 04. 07. 90 36 Art 2 Konsumentkreditlag 830 of 1992 37 Statutory Instrument on Consumer Credit Regulation 1980/51 Art. 9 al. 1 38 Title VIII, Art. 33 al. 4 of Bankwesengesetz 1993/532 15 2. The Application of the EC formula 60. With the exception of Germany, France and Finland, all the Member States of the European Community and the other members of the EEA have incorporated the EC formula into their national legislation. The majority of them (except the United Kingdom), did so in reaction to the Directive. 61. In some cases, the wording of Article 1a was used and the mathematical equation, in Annex II was copied, though sometimes the symbols were replaced by others (because it was felt that different symbols for repayments and loans would make literally to read). incorporated the mathematical formula of the Directive. This is the case for Denmark, Greece, Italy, Luxembourg, Portugal, Sweden and Iceland. Some countries have the formula easier 62. The remaining Member States either used other symbols, elaborated different examples or gave more verbal explanations in the construction of the formula but kept to the basic equation, using the "internal rate of return" or exponential growth: In Belgium39, the "balanced cash value equation" given in the Directive is restated using different symbols. An iteration procedure that can be used to solve the balanced cash value equation is described and this procedure is applied step by step to several examples In Spain40, the formula is developed in two steps and examples different to those in the Directive are given in the Annex In Ireland41, the conditions and applications of the formula are explained in words and, particularly, growth and cash value as well as the iteration procedure are explained. The Netherlands has developed "Rules on Effective Credit Yield"42 which elaborate on the mathematical procedures in some detail. The "effective credit remuneration percentage on a year-basis" is developed on the open The calculation of an open-ended credit is also balance of a credit. explained Similarly, Austria43 uses the EC formula with different symbols and also developed the "fictitious annual interest rate" for open end credit The UK has a vast body of rules regulating the general requirements of the Consumer Credit Act. The mathematical formula in the Directive 90/88 In addition, accuracy is also covered 39 40 41 42 43 Arrêté Royal 2311 of 04. 08. 92 (amended on 29. 04. 93 by 1381/1993) Article 18a Ley de crédito al consumo, 23. 03. 95 Consumer Credit Act 1995 Regeling effectief kredietvergoedingspercentage of 06. 11. 91 Title VIII Art. 33 al. 4 of the Bankwesengesetz 16 is restated44 and three examples are developed, demonstrating different degrees of sophistication in the mathematical procedure. In Norway45, "effective interest" is calculated with the same formula as in the Directive 3. The calculation of the annual percentage rate of charge in Germany and France As mentioned above, the difference between the mathematical formulae in 63. use the in Germany and France, and unwillingness of those countries to use exponential calculation. Mathematically, this in a situation whereby neither country can apply a 1 year compounding period for all circumstances. the EC formula lies basically results in a) The German Method 64. The German method calculates interest for 12 months and compounds it at the end of this time before restarting interest calculations for the next 12 months. If the last year does not have 12 months, interest is compounded earlier. Legally, this result is achieved through a complicated reference scheme. Article 4 of the Consumer Credit Act refers to Article 4 of the Price Disclosure Regulation which, for the purpose of interest calculation, refers to Art. 608 of the Civil Code. 65. However, Art. 608 makes no reference to "interest calculation" but deals only with the question of the time at which debtors must pay interest in the event that nothing has been agreed (in which case it establishes a rule that interest must be paid annually or, if a credit is repaid in less than 1 year, at the time of repayment). Art. 4 of the Price Disclosure Regulation applies this rule to interest calculation by citing this article as well as by using the description "cascade method" (Staffelmethode). 66. As we have seen above, the question of the time at which interest is paid and the time at which it is compounded are not linked to each other if the exponential form of the calculation is used. 44 Statutory Instrument 15 of 1980 The Consumer Credit (Total Charge for Credit) Regulations 1980 of 29. 01. 80, Art. 6 to 11 45 Forskrift til kredittkjopsloven of 15. 07. 86, N° 1616 17 67. In practice, the real source of the German method is a paper by the Bund- Lander-Kommission "Preisauszeichnung"46. Here the method is explained and a formula is given that uses exponential forms, though these are by definition more formula because simple calculations becomes complicated extremely complicated if expressed in correct mathematical terms. This method is known as the "360 day method" due to its additional assumption that a year has 360 days. the EC than The German formula poses a problem not only for comparisons with 68. products in other Member States but also within Germany. In particular, credit for periods of less than a year deviates significantly if the annual percentage rate of charge is stated in the German form. 69. If a consumer has the choice between: 4 consecutive credit contracts, each of 3 months duration, with an annual percentage rate of charge of 12% p. a. each, or one credit contract of 1 year duration with an annual percentage rate of charge of 12. 5 % calculated according to the German "360 day method", producing 1,000 ECU net capital without additional costs, the consumer would have to pay 125 ECU in interest in the second case at the end of the year and 30 ECU every quarter in the first case. But if they had paid the interest in the first case at the end of the year (as in the second case), this would cost them an extra interest charge of: [(12% on 30 ECU for 9 month) + (12% on 30 ECU for 6 month) + (12% on 30 ECU for 3 month)] = 0. 12 * 30 * (9 + 6 + 3)/12 = 5. 40 ECU. 70. Aithough the German price disclosure regulation was correctly applied, the consumer would have made the wrong choice if they had chosen the "cheaper" credit. 12% p. a. in fact involves a surcharge of 5. 40 ECU or an "effective interest rate" of 12. 54%. 71. Thus in Germany, a consumer contracting for 42 months and another contracting for 48 months cannot properly compare their annual percentage rate of charge because the 48 months involves compounding periods of 1 year while the other uses 1 year for the first three years and 6 months for the rest of the life of the credit. The German method is not "correct" in a mathematical sense the rule of a 1 year compounding period is obviously not observed in because 46 An administrative body which lays down the surveillance principles for disclosure in price regulations. The reference for the formula is: Bund-Lander AuG. chull. es "Preisangaben" Bemeinsamen Amtsblatt des Landes Baden-Wurttemberg, seite 27, 05/02/93 all cases, and calculations that are based on different general assumptions and conditions are not equal47. The German system requires two different formulae for interest calculation: 72. the "Rule of 78" for rebates and the rule of 360 for price disclosure. In cases where it is necessary to calculate the present value, it also uses the EC method. The EC method would enable the calculation of rebates with the same formula48. 73. The main differences between the German and the EC methods are related to the time period. The most significant differences occur in short term credit covered by the annual percentage rate of charge disclosure requirements of the Directive. As the Directive partially excludes current account credit as well as credit which must be repaid in less than 3 months or with no more than four instalments and a life span of 12 months, the most striking cases are legally outside the scope of the Directive. However, the Directive does require the indication of an "annual rate of interest49" for such credit as well. 74. Although this rate is not covered by the requirements of the mathematical formula in Directive 90/88, many countries approach both annual interest rates in the same manner. The problem concerning short term credit of less than one year is therefore increasing. For instance, credit card credit in particular is the first form of crossborder consumer credit. But credit card credit, although expressly subject to the annual percentage rate of charge requirements, tends to be short term credit and may thus escape these prescriptions. The differences between the German and EC methods as regards 75. consumer credit for a period of more than one year are less significant. b) The French Method 76. The French method of calculation of the annual percentage rate of charge does not recognize the importance of a generally fixed compounding period. The 47 48 49 There have been some developments in recent years. The German Bundesgerichtshof has stated, in its decision of March 12, 1991 (XI ZR 190/90), that in case of early repayment of a mortgage loan a bank can only ask the. present value" of future interest as recompensation of lost profit. This present value is calculated according to the same rule as implied in the EC-formula and generally accepted by German banks. In addition, some banks now use the EC-formula for the rebate in consumer credit because the old "Rule of 78" is inapplicable in cases where instalments are not equal. At present, the use of the "Rule of 78" is necessary because the Rule of 360 cannot be applied to calculate a rebate rationally - no bank applies this rule. Article 6 of Directive 87/102 19 relevant Order50 permits the use of different periods and period rates e. g. of 1 month, 3 months, half a year etc, with interest compounded within each period. The only precision is that if irregular payments are made, only one period should be used for interest compounding. The period rate for one month is then transformed into an annual interest rate simply by multiplying it by 12. thus appear artificially more 77. This conversion is misleading because an annual rate is disclosed which is in fact not based on annual compounding periods but on invisible, mostly monthly, compounding periods. As shown below51, this leads, especially in consumer credit with monthly instalments, to very significant differences. French the consumer credit contracts consumer than in all the other Member States of the European Community and the other members of the EEA. While the German deviation is mathematically inconsistent and creates artificial difficulties in calculation but has modest effects on ordinary instalment credit (though these may be greater if once-off fees are important), the French method deviates so significantly that the French interest rates are misleading not only to other Europeans but also to French consumers who do not get a correct idea of the differences between credit prices e. g. between credits with monthly or quarterly instalments. favourable to 78. The reasoning behind the French method seems to be that in their view, the function of the annual percentage rate of charge should indicate the burden on the consumer, (although it seems to be accepted that the current EC formula is normally used among businessmen)52. is erroneous, a misunderstanding of the function of the annual percentage rate of charge. The annual percentage rate of charge does not indicate "the burden on the consumer" - consumers can evaluate the burden on their budget only if it is expressed in currency units because all their monthly income and expenditure is expressed in such currency units. In order to answer the consumer's question as to whether they should take a particular credit, the obligations set out in the Directive regarding the disclosure of instalments and the total cost, as well as the total amount of the debt, are crucial. Only commercial clients may use the annual percentage rate of charge as an indicator for the burden because they this is reasoning However, 50 Art. 1 of Décret relatif au calcul du taux effectif global, N° 1985/944 of 04. 09. 85 51 52 para 85 below. See also §381-1 of Gavalda and Stoufflet: Droit Bancaire (2nd ed) and §28 of Biardeaud: Guide Pratique pour le contrôle des crédits immobiliers. An example of this is the comment made by the Economic and Social Committee on the EC formula when initially proposed: OJ n° 337 of 31. 12. 88 p. 1-4 §3. 3. 1: "This formula allows for the continuous reinvestment of income as is normal among businessmen, in this case the crediting of yield from the reinvestment of repayments made by the borrower. In practice, this is how the lender, but not the consumer, assesses the value of the loan. For the consumer, the reinvestment of income in terms obtainable by the lender is deceptive. it is important to know the burden of the borrower. " 20 can compare it to their own profit rate or the interest rate which they earn with other capital. The annual percentage rate of charge thus answers the consumer's It is a means of comparison. In in Directive 90/88, which presupposes annual is the only way of 79. question as to which credit they should take. this the respect, compounding also comparing equally calculated products. formula in the case of monthly payments, 80. It should also be noted that financial developments mean that, for the consumer, the date of payment is also worth money because some credit card accounts even allow overpayment and pay interest on a positive balance. 81. The older argument, that the annual percentage rate of charge in France is identical with the usury rate and that this rate can not be changed because it would make credit usurious which had not been usurious before, no longer applies due to a change in the French method of regulating usury. c) Comparison of the EC formula and the German and French methods In the following table, a fixed instalment loan of 1,000 ECU with 120 ECU 82. interest for one year is calculated. In this table, the top rows show clearly that in all three cases the basic items needed to calculate an annual percentage rate of charge (cost, time and principal) are the same. 83. In the German method, interest is calculated every month but only compounded to the principal at the end of the year. Three different calculations are necessary: Each month 1. Capitaln = Capital,. , - Instalment; 2. Interest = Capital,* i/12 At the end of the Year 3. Capital12 = Capital12 + z [lnterestn ] In the French method, interest is calculated as in the German method, 84. but compounded monthly. Only one calculation is necessary each month: Each month Capitaln = Capital,. , - Instalment + Capital,. , * i/12) The EC formula only requires one calculation each month because it 85. calculates the capital growth: Each month Capital, = Capital^ *(1+i)1/12 21 The interest can be derived from the capital column by simply subtracting the different balances after instalments have been deducted: Each month Interest, = Capital,. , Capital, - Instalment 86. It can be seen that, in all three cases, different interest rates lead to the same amount of interest under the same conditions. While the German method comes quite close to the EC method, the French method deviates significantly. Loan (ECU) Instalment (ECU) Credit Cost (ECU) Life Span (months) APR GERMANY 1000. 00 93. 33 120. 00 12 24. 66% Month 1 2 3 4 5 6 7 8 9 10 11 12 Sum Capital 1000. 00 906. 67 813. 33 720. 00 626. 67 533. 33 440. 00 346. 67 253. 33 160. 00 66. 67 26. 67 0. 00 1120. 00 Interest 20. 55 18. 63 16. 71 14. 79 12. 88 10. 96 9. 04 7. 12 5. 21 3. 29 1. 37 0. 55 120. 00 - FRANCE 1000. 00 93. 33 120. 00 12 21. 46% Capital 1. 000,00 924. 55 847. 75 769. 57 690. 00 609. 00 526. 56 442. 64 357. 22 270. 28 181. 78 91. 69 0. 00 1120. 00 *Ë C-DIRECTIV 1000. 00 93. 33 120. 00 12 23. 70% Interest 17. 88 16. 53 15. 16 13. 76 12. 34 10. 89 9. 42 7. 91 6. 39 4. 83 3. 25 1. 64 120. 00 Capital 1000. 00 924. 55 847. 75 769. 57 690. 00 609. 00 526. 56 442. 64 357. 22 270. 28 181. 78 91. 69 0. 00 1120. 00 Interest 17. 88 16. 53 15. 16 13. 76 12. 34 10. 89 9. 42 7. 91 6. 39 4. 83 3. 25 1. 64 120. 00 87. In the following table, we have used different life spans for a credit of 1,000 ECU, assuming that the creditor would take 10 ECU interest for every month of the lifespan of the credit. (This would be a rate of 1% using the traditional method of nominal interest calculation, which is not an interest rate but a parameter for easier interest calculation). LifeSpan (months) Cost (ECU) 6 12 18 24 48 60 120 180 240 480 EC method French method 22. 29 23. 70 24. 00 23. 84 22. 86 20. 29 21. 46 21. 65 21. 58 20. 75 German 360 day method 21. 49 24. 66 24. 27 24. 34 23. 09 22 88. It shows that the German deviation is quite significant for periods of less than a year. For longer periods, the difference between the German method and the EC method is quite small. However, the difference between the EC method and the French method is between 2 and 3%. The crossborder implications of this are already being felt in certain areas53. 89. In any event, there is no direct relationship between the interest rates which would enable a consumer to simply add 2 or 3% to the French (or subtract 0. 2% from the German method) because the size of the difference depends on the life span as well as the up-front fees and the interest rate. 4. Arguments in favour of the EC formula 90. If the annual percentage rate of charge is seen as a main factor in choosing between different products, the EC formula is mathematically the only way to guarantee that the price represents equal conditions. All the regulations concerning the costs to be considered in the annual percentage rate of charge calculation are meaningless if the mathematical procedure of their inclusion is not homogeneously defined. 91. The annual percentage rate of charge is the only form of a credit price that can help consumers to shop across the borders in the Single European Market. It will simplify the legal framework for consumer credit and make national transposition measures more consistent, as well as providing a proper framework for possible future legislative action at Community level as well. As the some countries also apply differences between mortgage loans and consumer credit are vanishing (second mortgages are used for consumption purposes while the last 20% of an uncovered loan for a home is often given in the form of consumer instalment credit), it would be important, in case of harmonisation in this area, that there would be a unified system of annual percentage rate of charge calculation from the outset. As credit card credit will be the first form of consumer credit to be offered across borders, and the use of credit cards linked to special instalment open-ended credit offers increasingly exponentially, a uniform price disclosure system might also be needed in this context. to mortgage loans, and legislation this is 92. The potential cost of adapting banks' computer programs and price structures to handle the EC formula in those countries that do not presently use the formula is not a striking argument. The banking sector in the other Member States have already made this investment in order to adapt to their national legislation as it was transposed. In addition, banks in France and Germany frequently adjust their programmes to take account of case law and 53 German banks already offer consumer credit in Alsace, while Credit Lyonnais, having purchased a German bank (BfG), are beginning operations in Germany. Complaints have already been received from French consumers who have been misled by a mortgage loan linked to a capital life insurance, the true APR of which, as well as the dangers, had not been made clear by the German bank 23 administrative rulings on the subject e. g. for the calculation of rebates in the event of early repayment of consumer credit and mortgage loans; for the calculation of damages in the event of early repayment. In addition, some of the calculations are already done using the mathematically correct form. 93. Programming will also be easier using the simpler EC method. Only the EC formula offers consumers the possibility of directly calculating the increase of a capital over a period of years. Its simplicity (1000 ECU for 98 years at an interest rate of 9. 6% will yield to (1 + 0. 096)98 * 1000 = 7,969,559. 30 ECU) is striking and merely requires the use of a home computer or even a pocket calculator. 24 IV. Elements of cost to be included in the calculation a) Elements of Cost The Directive requires that all credit costs must be included in the annual. The "total cost of credit to the 94. percentage rate of charge calculation. consumer" means: all the costs, including interest and other charges, which the consumer has to pay for the credit. The mathematical formula requires that the difference between the 95. present and future value of the capital borrowed should include all the elements of cost to be included in the calculation i. e. not only the nominal interest but all other charges which can be attributed to the credit as such and not to other separate services of special value to the consumer. 96. With the exception of insurance fees, the Directive uses the indirect method, allowing the omission of five types of costs which are supposed to be "credit costs". Art 1a(2) allows the following charges to be excluded from the calculation of the "total cost of credit to the consumer: i) ii) iii) iv) than the purchase price) payable charges payable by the borrower for default charges (other whether the transaction is by cash or credit charges for accounts, transfers. (except where the consumer does not have reasonable choice or such charges are abnormally high) membership subscriptions regardless b) Situation in the Member States 97. As the number of items which could be considered as elements of cost to be included in the calculation is, theoretically speaking, unlimited, most countries simply repeat the exemptions in Article 1a(2), definitely excluding those items from the annual percentage rate of charge calculation, regardless Thus the regulations in of how closely they are related to the credit. Denmark, Greece, Ireland, Italy, Luxembourg, Portugal and Norway follow closely the wording of Article 1a(2) of the Directive, with practical application generally left to case law. 25 Art 1a2 B DK D EL ES F IR IT L NL 0 PT SF SV UK IS LI N i ii iii iv V Comments / / / / / • / / / / / / / / / / / / — / — — S / / / / / / / / / / / / / / * / / / / / / / / / / / * / / * — / — / / / / * * / / * / / / * * / * * * * / / Open list of charges to be included. For insurance, the criteria is whether a reasonable choice is given Insurance which does not secure repayment is exempt, whether mandatory or not All charges are included in the rate, including mandatory insurance charges (but non-mandatory ones are not listed as exempted) All charges are included in the rate. Jurisprudence has resulted in some changes. If the range of services provided is wider than credit, membership fees are not included. If credit is the main activity, the fee is included If account fees. , or insurance fees are obligatory, they must be included. There are no membership fees. All charges except those for non-mandatory insurance are included The Act exempts no costs (including insurance). All mandatory costs are included. All costs, including non-mandatory insurance, are included / * = = = Corresponds to Directive 90/88 i. e. these charges are specifically excluded from the calculation of the Global Annual Effective Rate Goes further than the Directive - there is no specific exemption for these items - but they may in practice be excluded See individual comments and relevant paragraphs below 98. the Directive54. In Denmark, the costs to be included are more comprehensive than in In Belgium there is a positive list of those elements of cost to 54 Article 13 of the 1990 Credit Agreement Act defines the total price of credit as the sum of all charges with the exception of certain charges (corresponding to those in the Directive, but more restricted). Charges are divided into three types: those to be included in the 26 be included in the calculation which must be included55 as well as a list similar to the exemptions in the Directive (although provided the consumer has a reasonable choice, neither the costs of a credit card which are not connected Italy and Luxembourg also have with credit nor insurance costs are included). an open list of charges to be included in the calculation, though the list of exemptions is closed. Member States, in practice, arrive at lists similar to that of Belgium through their reference to the term "credit cost" which includes items like brokerage fees, up-front fees, disagios. which must be included in the annual percentage rate of charge calculation. The situation in other Member States differs slightly - Spain, France, 99. Finland, Sweden and the UK are tacit on the subject of the list in Article 1a(2). This does not necessarily mean that they deviate from the practical method of annual percentage rate of charge calculation, because they assume that the general definition of the elements of cost to be included in the calculation already leads, in principle, to the exclusion of certain of the items concerned (fees for late payments, fees for bank accounts, membership fees and special cash price fees). These States do, however, make an important distinction in that they generally exclude only those elements of cost to be included in the calculation which are not mandatory - while the majority of States exclude the items listed in Article 1a2, these States apply a test of how the fees have entered into the contract. They therefore apply the distinction in Article 1a2(v) concerning insurance fees to all other charges. 100. The Spanish legislation requires all charges to be included in the calculation, including mandatory insurance charges. Non-mandatory insurance is not mentioned as specifically exempt from inclusion. The elements of cost to be included in or excluded from the calculation are not listed, except as regards insurance premiums and default fees56. 101. In France, Article L. 313. 1 of the Consumer Code states that the calculation must reflect all interest and other charges, commissions and remunerations of any kind, direct or indirect. e. g. including payments to intermediaries. The Comité Consultatif of the Comité Usagers of the Conseil annual percentage rate of charge but not necessarily mentioned individually (e. g. charges by the creditor or third parties); those to be listed but not included in the annual percentage rate of charge (membership fees. ) and those to be neither listed nor included (cheque fees, transaction fees unless the method is compulsory. ) 55 Article 2. 1 of the Arrête Royal 1381 of 4. 8. 1992 contains an open list of charges which should be included in the "taux annuel effectif global". These include charges for: inquiries, advertising, the creation of a file, inquiries at a credit register, administration of the file, accounting and collection, intermediaries, credit insurance, guarantees and other personal securities, and anything else the creditor requires for the credit. 56 Article 6. 2c of the 1995 Consumer Credit Act states that debt insurance, if required by the It also exempts from the calculation charges lender, must be indicated in the total cost. in the event of default 27 N a t i o n a l - du Crédit, in a Report, produced a detailed t h o u gh the list d o es not appear to be binding in nature: list of such charges5 7, Charge included establishment and administrative costs costs for securities and warranties guaranteeing a bill of exchange notary costs stamp duty compulsory death insurance premiums overdraft charges fee for keeping money available fee for confirmation account statement fees59 fees for endorsements Charge not included book-keeping fees fees for not using a credit granted58 service charges postage non-compulsory death insurance premiums Case law and administrative precedent have included certain elements in the calculation e. g. account fees and insurance premiums. Companies in France are prohibited from selling both credit and insurance, and mandatory insurance is not required for consumer credit but rather for mortgages. 102. Credit costs in Finland are defined as "the total amount of interest, costs and other payments that the consumer shall pay on the basis of the consumer credit relationship. No list of items to be included or excluded is provided. Since 1993, insurance premiums are excluded and must be listed separately. 103. Credit costs in Sweden are defined as the total sum of all cost elements (interest, additional costs and other charges). In theory, there are no exemptions - all elements of cost to be included in the calculation must be included in the In practice, the exemptions in the Directive are annual percentage rate of charge. used. If credit Insurance charges, however, are not mentioned in the regulations. is combined with insurance, or if a separate insurance is mandatory, these costs Charges to third parties, which arise in connection with must be included. mortgages (which are within the scope of the Act) are not mentioned. 104. The UK also defines the total charge as the interest and other charges at The exemptions60 are much more any time payable under the transaction. 57 58 59 60 Report on the Reform of Usury Legislation, December 1992. The list is described as 'being given "under the reservation of the sovereign appreciation by the courts" Listed under different names as a cost to be included (commission d'immobilisation, commission d'engagement sur autorisation, commission de confirmation) and under two names as a cost to be excluded (commission de nonutilisation, commission d'attente). Though there also appears to be an obligation to provide these free of charge Defined in Article 5 of the Statutory Instrument The Consumer Credit (Total Charge for Credit) Regulations 1985 28 than in the Directive - there is differentiation between different forms and detailed All premiums for life insurance are exempted61. purposes of credit. Initial fees (e. g. for administration costs) are common in UK consumer credit, and may be Rest debt insurance (against either added to the balance or paid up front. accident, sickness or unemployment) the instalments during that period of illness or unemployment and may be of limited duration. Life insurance cover is often required for larger loans. is common but usually only covers 105. As regards the remaining Member States, an initial administration fee is usually required for consumer credit in Germany, but some banks claim to use no other ancillary charges (periodic fees, statement fees. ). Germany uses the same exemptions as in the Directive. Rest debt insurance is offered, but is usually not mandatory for consumer credit. Where it does apply, it is usually paid as a lumpsum in advance, and the costs must be listed separately. Insurance which does not secure repayment is excluded from the calculation, whether mandatory or not. 106. The Austrian regulation defines the cost elements to be excluded from the calculation; These exceptions differ from those in the Directive in that Austria does not mention charges other than the purchase price which must be paid regardless whether the transaction is by cash or credit, or membership fees. These does not necessarily mean that these are to be considered as interest, as they could be considered as part of the purchase price. Nor do charges required by the State have to be included. Customers must also pay for their annual bank statements. 107. In the Netherlands, only direct credit charges (including mandatory rest debt insurance), fees in case of default and compensation in the event of premature repayment are permitted to be included in the calculation62. No other charges are permitted If for consumer credit, either as initial charges or periodic services connected with the credit (e. g. death, unemployment, invalidity and other insurance) are offered, the charges must be included in the annual percentage rate of charge, may not be counted as separate payments, and must not surpass in the order on Credit Remuneration63. Rest debt the maximum rates insurance is not allowed. insurance with consumer credit is common, but compulsory listed fees. 108. In Iceland, the total cost of credit includes all interest and other charges to be paid by the consumer, with the exemptions listed in the Directive. Charges for the transfer of funds and for keeping an account (except collection charges) are 61 Statutory Instrument: The Consumer Credit (Total Charge for Credit) (Amendment) Regulations 1985 62 Article 34 of the Consumer Credit Act prohibits all "rewards for the lender" other than these charges. 63 Besluit Kredietvergoeding, Stb. 1991/549 of 16. 10. 91 29 exempted only when the consumer has reasonable freedom of choice in the way funds are transferred or collected and the charges are not abnormally high. The inclusion of insurance costs is not restricted to compulsory insurance. 109. Unlike the exemptions listed in Article 1a(2)(i)-(iv), Article 1a(2)(v) of the Directive indicates the only positive item to be included in the calculation of annual percentage rate of charge. It exempts charges for insurance or guarantees from inclusion in the calculation, except death, invalidity, illness or unemployment insurance which are to be included in the calculation, as are other charges which have to be imposed by the creditor "as a condition for credit being granted". All countries have, in one way or another, referred to this in their legislation. Interpretations differ, however. Some countries assume that such insurance premiums are always mandatory and therefore regularly included, while others e. g. Germany repeat the text of the Directive literally but in practice assume that credit life insurance is never mandatory. This is because of their legal definition of the concept of "condition" whereby insurance is interpreted as being "imposed by the creditor as a condition for the credit being granted" only if the credit contract is legally linked to the insurance contract whereas in practice creditors offer two separate contracts which are only linked by the fact that the bank will only grant the credit if the insurance is also taken. In this respect, Belgian legislation takes the other view, asking whether a rational choice between a credit contract, with or In practice, this usually without such an insurance coverage, has been offered. lead to the inclusion of such premiums64. The UK appears to be the only country which expressly excludes life insurance premiums from the annual percentage rate of charge calculation even though such insurance is obligatory for credit contracts. 110. These differing interpretations of Art 1a(2)(v) can lead to differences in annual percentage rate of charge calculations for identical products in different Unlike the charges excluded by Article 1a(2)(i) to (iv), insurance countries. premiums are an important element of the burden of charges on a consumer (up to a quarter of the credit costs in some cases). It may be necessary to exclude distinctions which are easy to circumvent through simple formulations and the use of different formulae by creditors - while this would not eliminate situations where creditors refuse to grant credit without also selling insurance coverage, it would open the door to more competition for insurance premiums. This is necessary because the same life insurance purchased separately from a consumer credit Separate life insurance would also have the contract is usually lower in price. advantage that it could be used for subsequent credit contracts and other purposes without fees for age progression. Creditors should be persuaded to insurance coverage instead of disclose to consumers the possibility of separate overcharging for linked credit life insurance contracts. 64 Empirical surveys in Germany have finance revealed companies offering credit for low income consumers insure up to 98% of the credit contracts while savings banks showed a rate of less than 5%. Credit life insurance is therefore mostly an additional security income consumers and offers the bank additional "interest" because insurance companies pay up to 3. 5% as a brokerage fee to the bank instalment banks and required by the creditor from that low 30 111. At the meeting with governmental experts in April 1995 to discuss this subject65, the experts reported on the situation in their Member States with regard to the elements of cost to be included in the calculation included in their national legislation. Some experts explained the reasons why their Member States had gone further than the Directive, or that the intent of their legislation was the same even if the wording used differed, and some clarifications of certain aspects were given. Following the study by Professor Seckelmann, it was felt that Member States include almost the same elements in their calculations and that any differences that do exist are minimal in nature. The Commission does not therefore propose, at this stage, to amend the list of elements of cost to be included in or excluded from the calculation of annual percentage rate of charge. this meeting and the results of 65 Paragraph 6 supra 31 V. Other issues 112. While the Directive requires an evaluation and a report which ". will make it possible, in the light of experience, to apply a single Community mathematical formula. "66, this requires an examination of other issues than the mathematical formula alone, in order to define a uniform application of the formula67. 1. The Denomination of the annual percentage rate of charge 113. The Directive does not regulate the multitude of interest rates or parameters with which, according to the principle of freedom of contract, lenders define how they calculate the credit costs internally. The only legally defined parameter for credit cost is the annual percentage rate of charge, presupposing either a special form of disclosure68 or a homogeneous denomination. 114. The table below indicates that there are almost as many denominations as there are Member States. 66 67 Article 1a(5)(b) of Directive 87/102 While Article 14 of the Directive specifically mentions the "distribution of the amount of credit over several agreements", other circumventions occur. On several occasions, the German Bundesgerichtshof has ruled that the combination of capital life insurance and consumer credit can be transformed into one single credit with one single APR in order to find out whether it is usurious. Another circumvention is the combination of savings and credit where the consumer is required to save an amount equal to the sum of the credit in a special account (e. g. a whole life insurance account or even an instalment savings account). The credit is not reduced and only at the end are the savings used to repay the credit in one single instalment. Interest is due on the total amount of credit from the beginning to the end of the life span. The savings have earned much less interest than is to be paid on the credit, but the consumer has had to use the money for low-interest savings instead of repaying the high-interest credit. Such combinations can also be easily transformed into one credit relationship, with the EC formula applied to the total of In such cases, the true APR is normally all payments either on the credit or the savings. at least 1% higher than the disclosed APR. The problem posed by such combinations should be studied. 68 US legislation prescribes a special form sheet wherein the APR has to be disclosed in a defined area 32 Short form Denomination B DK D EL Taux d'intérêt effective/ Effektieve Rentevoet E. Rentefod E. Zinssatz and, less often, E. Zinsfuss 7T. €7rt TOK L O, P. Epitokio ES Tipo de interés E. IR IT Taux d'intérêt E. E. Interest Rate Tasso D'intéressé E. Taux D'intérêt E. NL E. Rentevoet O E. Zinssatz Taxa de Juro E. SF SV UK Todellinen vuosikorko / effectiv rànta Eff. ranta E. Interest Rate ISL none LI N E. Rente taux annuel effectif global/ jaarlijkse kostenpercentage arlige omkostninger i procent effektiver Jahreszins or anfânglicher effektiver Jahreszins r i KO TT pay[lot errjoLo CTTLTOKLO (EnE), etisio pragmatiko epitokio, (EPE) tasa anual équivalente + porcentaje anual de cargas financieras taux effectif global annual percentage rate of charge, (APR) tasso annuo effettivo globale, (TAEG) taux annuel effectif global effektief kredietvergoedingsperce ntage (op jaarbasis) (dekursiver) effektiver and fiktiver Jahres- zinssatz taxa anual de encargos efectiva global, (TAEG) todellinen vuosikorko / effectiv rànta effektiv rânta annual percentage rate, (APR) ârleg hlutfallstala kostnaôar Effektive Jahreszins effektiv rente English Translation global effective annual rate/ annual cost percentage annual costs in percent effective annual interest or initial effective annual interest annual effective interest rate annual equivalent rate + annual percentage of financial burden (tipo de interés E. ) global effective rate also annual percentage rate global effective annual rate global effective annual rate effective credit remuneration per centage (on the basis „year") (decursive) effective and fictitious annual interest rate global effective annual rate of burden effective annual interest effective interest also annual percentage rate of charges, (APRC) annual percentage rate of costs effective annual interest effective interest 33 115. The common elements are "Rate" The majority of Member States of the European Community and the other members of the EEA use the term "rate"69 "Annual" Except for France, Sweden and Norway70, other Member States use the term "annual". This is particularly important as France, for instance, still uses monthly or quarterly rates. "Effective" With the exception of Denmark, Spain, Ireland, the United Kingdom and This this Iceland, distinguishes between other interest rates used by lenders. the majority of the Member States use term. 116. As regards other terms found in some Member States, not all Member States include the concept of "interest" or "charge" in their term. Of those that do, Member States are fairly equally divided between those which refer to the result of the calculation (the interest rate)71 and those who prefer to refer to what it represents (the rate of charge)72. The inclusion of either term does not add significantly to the transparency of the term. 117. While some Member States do use the term "Percentage"73, it is so common as to be understood and the inclusion of the word does not add It should be noted, in any event, that the use of the significantly to transparency. term "percentage rate" is no substitute to providing accurate information to consumers. 118. Those elements which are most important for the transparency of the term are therefore those found in the Belgian, Greek, Italian, Luxembourg, Austrian and Portuguese terms i. e. "Rate", "Annual" and "Effective"74. 69 70 71 72 73 74 With the exception of Denmark, Germany, Netherlands, Finland, Sweden and Norway. However, it should be noted that Germany uses both the term "interest" and "interest rate" and the exclusion of the word "rate" seems to be language-specific. The Directive itself uses both terms and therefore those States which transcribed the Directive exactly should be considered as using the term "rate". In Norway, the term is, by its legal definition, an annual interest Denmark, Greece, Austria, Finland, Sweden, Norway Belgium, Spain, Ireland, Portugal, United Kingdom, Iceland Belgium, Denmark, Spain, Ireland, Netherlands, United Kingdom, Iceland The original 1979 Commission proposal used the terms "Effective Annual Rate of Interest", "Taux Annuel Effectif Global" and "Effektiver Jahreszins". While different terms, proposed by the European Parliament, were accepted in the 1983 Amended Proposal: "Annual Percentage Rate of Charge", "Taux annuel des frais" and "Jâhrlicher Belastungssatz", these later reverted to the original terms. By the time discussions reached the Council Working Group, the original French and German terms were again used, as also in the final version of the Directive. The term in the English language 34 "global". 119. An additional feature, found in the French language version of the Directive, and presently used by Belgium, France, Italy, Luxembourg, and Portugal is the word transparency and comprehension of the term for the average consumer as it indicates that the totality of the costs to be paid are contained in the annual percentage rate of charge This word adds considerably the to literal meaning, has led to problems 120. The fact that the wording used to translate the original term (taux annuel effectif global) differs from one Member State to another and is often different in its in practice because some of the denominations used in one country to denominate a certain "rate" are sometimes It would therefore used in other countries to denominate other, different "rates". be useful if some homogeneity and transparency could be achieved in order to assist in consumer comprehension. However, bearing in mind that much effort has been expended in communicating to consumers the meaning of the terms presently used in each Member State, it does not seem appropriate to propose a change in the wording used in the different languages. Nevertheless, it is desirable that a common feature be included in order to enable consumers, particularly in crossborder situations, to recognise these terms as being equivalent to those Following discussions with governmental experts it was felt that, rather than proposing that the different terms used in the different national legislation for "annual percentage rate of charge" be harmonised, and the principles of proportionality and subsidiarity, a common feature should be included in order to enable consumers to recognise these terms as being equivalent to the one in use in their own in Member State. accordance with the principles of proportionality and subsidiarity, it is proposed that the use of a symbol in addition to the existing term will be required. This symbol will be identical in each Member State. This will not constitute a change in the language of the term and will only involve a small additional cost for transposition. Following discussions with government experts, and in their own Member States. in accordance with in use 2. Accuracy 121. The Directive does not define the degree of accuracy required in the calculation of annual percentage rate of charge. The examples given in Annex III presuppose that Member States may prescribe an accuracy of one or two decimal places. It thus seems clear that the Directive demands at least accuracy to one decimal place. 122. Most countries in fact demand accuracy to one decimal place. This, however, can make consumer credit contracts for ECU 20,000 over 60 months look equivalent although they may actually differ in cost by about ECU 50 (5 * 0,0999 * 20,000/2 = 49. 99). As the scope of consumer credit legislation in many Member States covers much higher amounts and longer terms, the difference may In those Member States which include mortgage credit in the be up to ECU 500. version alternated between "effective annual rate of interest" and "annual percentage rate of charge" up until the final draft of the Directive. 35 scope of the Directive, the difference may amount to several thousand ECU. Such a discrepancy is not tolerable. 123. More accuracy should therefore be required for higher amounts of credit. At least two decimal places should be prescribed (though with the possibility of allowing one decimal place if one decimal represents costs of less than ECU 50). 3. Time definitions 124. Different definitions of time are in use in the Member States. The Directive that all calculations should be made with daily correctness implicitly states ((Remark b) of Annex II). It also states that intervals "shall be expressed in years or in fractions of a year"75. This assumes that a day, week or month can be expressed in a constant fraction of a year. APR rules Comments Practice of n o m i n al Interest 3 6 5 / 5 2 / 12 365 / 360 B DK — 365. 25 D 3 6 0/ 12 360 EL 3 6 5 / 5 2/ 12 *~ ES 3 6 5/ 12 365 F 365/ 12 •<~~ IR IT L NL O P SF SV UK ISL LI N 3 6 5 / 5 2/ 12 366 / 365 3 6 5/ 12 365/360/12 «- «- 366/365 <- 360 360/12 360/ 12 3 6 5 / 5 2/ 12 360 360/ 12 «- — <- «- «- — 12 months of different lengths Valuation is calculated for one day and converted to 365. 25 days (4 year average) 12 months of 30 days. 365 day year for certain transactions 12 months of equal lengths. 360 day years for loans, 365 for savings Valuation converted to 365 days Valuation is calculated for a period and converted to 365 days. 12 months of equal days. 12 months of equal lengths for one month and is calculated Each year equals the calendar year Actual months (28, 30, 31 days) 12 months of 30 days. 360 days for savings and consumer loans, 365 for commercial loans Each year equals the calendar year 12 months of 30 days 12 months of equal length 12 months of 30 days same as for nominal interest calculation 75 Remark c of Annex II 36 125. As can be seen from the above table, which indicates practice in different Member States, most countries for Germany, Austria, Sweden, (except Liechtenstein and Norway) have already introduced the correct calendar into their calculations. For default interest, German banks also use the 365 day year. For annual percentage rate of charge calculation, Denmark, Luxembourg and Spain prescribe 365 day years while Germany, Austria and Liechtenstein prescribe 360 day years. All other countries assume that the same year will be used as is used in nominal interest calculation. in the results achieved 126. The differences these variations are significant. For instance, a nominal interest rate of 18% p. a. for an open-ended credit used for one day gives an annual percentage rate of charge of 19. 422% p. a. if calculated at 360 days a year, and gives 19. 716% p. a. if calculated at 365 days a year76. through 127. There is no reason why calendar days should not be prescribed as the basis of a calculation while a year could generally be assumed to have 365 or 366 days (or 365. 25 days to take account of leap years, though the difference caused by the loss of one day every 4 years would not be significant enough to be noticed even with accuracy to two decimal places). Nor is there any need to compensate for a credit taken out in a shorter month. 128. Annex II should therefore be amended to state that a year is presumed to have 365 or 366 days. 76 The easiest way to do such calculations using computers is by using the calendar day because each computer has an inbuilt calendar. Calendar dates can be easily subtracted and the number of days defined. However, computers have extreme problems of definition when using the 360 day formula - a test of the relevant function in a popular spreadsheet program showed that their offer of a 360-day function is not correct because the sum of the days of 10 years differs by more than 10 days if calculated in one or in several intervals. A correct 360-day calculation is therefore impossible 37 VI. Conclusions and Recommendations 129. There is a list in Annex 2 of the national legislation which transposed the Directive in the Member States of the European Community and the other members of the EEA. 130. As regards the verbal definition of the annual percentage rate of charge, some amendments are required to the English and Greek language versions of the Directive. The proposed wording for the English version of Article 1a(1)(a) is as follows: The annual percentage rate of charge, which shall be that rate, on an annual basis, which equalises the present value of all commitments '(loans, repayments and charges), future or existing, agreed by the creditor and the borrower, shall be calculated in accordance with the mathematical formula set out in Annex II. and the proposed wording for the Greek version of Article 1a(1)(a) is as follows: irporyiioiTLKO TTOOOUTO eiufiôtpvvorjç -notpovoeç oi£îeç TOV avvôXov TTOV ettoûveL TWV Tp£xov&ûv viïoxpeûoeuv 0ivaXr]4>6e i airô TO ôave (àaveîwv, eÇocpXficeuv IOTT) non TO (ÔŒVe KOLTOLVOIXUITT), L nô TVTTO TTOV -notpoLTiB eTOii OTO KOLL eirifiotpvvoeuv) iÇô^ievo) ÇeTùtL oviiQuvot u. e TO uadrj^oiT oe T) TIOV erijoLO T IÇ (Sacq "To OVVOXLKO ETfjoLOi LieWovTLKÛV éxovv viroXoyt TTOipÔipTTJIKX I I ". 131. It is proposed to require the use of a symbol in addition to the term currently in use in each Member State for the "annual percentage rate of charge". This symbol will be identical in each Member State. 132. As far as the mathematical formula is concerned77, it is proposed, based on the arguments contained in this Report, that the formula in Directive 90/88 should be retained and made general throughout the European Community and the other members of the EEA. Article 1a(5) should therefore be removed from the Directive as it will no longer be necessary. 133. For the calculation, there should be a requirement of accuracy to two decimal places and a requirement to use a 365 or 366 day year. This will require amendment of the Annexes to the Directive. A correction would also have been necessary to the fourth example given in Annex III of the Directive to correct a 77 For the mathematical aspects, see Professor Seckelmann's Study of the method of calculation of APR in EEA states - Footnote 6 supra 38 miscalculation78 but this has been overtaken by the recalculation of the examples on the basis of accuracy to 2 decimal places and the use of a 365 or 366 day year. 134. Regarding the elements of cost to be included in the calculation, the transposition of the Directive by the Member States has led to a position where there is a harmonised minimum level of protection for all consumers throughout the European Community and the other members of the EEA in this respect. As Member States presently include almost the same elements in their calculation, and as any differences that do exist are minimal in nature, it is not proposed that the list of exemptions in Article 1a(2) should be amended at this time. In accordance with Article 1a(5)(b) of Directive 87/102, as amended by This will implement the 135. Directive 90/88, a draft Directive is being proposed. changes recommended above79. 136. As regards any other substantive elements of Directive 90/88/EEC, any proposals together with proposals for the amendment of the original Consumer Credit Directive 87/10280. in this regard would be considered for amendments 78 79 80 A mistake was made in this calculation. The result should be 13. 1855% according to spreadsheet calculation. This mistake in no way affects the correctness of the general formula, and the other examples are calculated correctly. It will also propose the deletion of Article 1a(3) of the Directive as this measure has not been availed of by any Member State. A Report on the operation of Directive 87/102 was published in May 1995 and the Commission is currently considering reactions to this Report. Any subsequent legislative proposal in this respect could include amendments to Directive 90/88. 39 (a) (b) (c) (d) (e) Annex I - Articles 1 and 1a of Directive 87/102 (as amended by Directive 90/88) Article 1 1. This Directive agreements. applies to credit 2. For the purposes of this Directive: accordance with the mathematical formula set out in Annex II. (b) Four examples of the method of calculation are given in Annex III, by way of illustration. 'consumer' means a natural person who, in transactions covered by this Directive, for purposes which can be is acting trade or as outside regarded profession ; his 2. For the purpose of calculating the annua! percentage rate of charge, the "total cost of the credit to the consumer" as defined in Article 1(2)(d) shall be determined, with the exception of the following charges: 'creditor' means a natural or legal person who grants credit in the course of his trade, business or profession, or a group of such persons ; 'credit agreement' means an agreement whereby a creditor grants or promises to grant to a consumer a credit in the form of a deferred payment, a loan or other similar financial accommodation. for Agreements the provision on a continuing basis of a service or a utility, where the consumer has the right to pay their for provision, by means of instalments, are not deemed to be credit agreements for the purpose of this Directive. the duration of them, for to 'total cost of credit the consumer' means all the costs, including interest and other charges, which the consumer has to pay for the credit. the credit total cost of 'annual percentage rate of charge' means the the consumer, expressed as an annual percentage of the amount of the credit granted and calculated in accordance with Article 1a. to Article 1a (a) be shall p r e s e nt rate of The annual percentage charge, which that equivalent, on an annual basis, to the commitments and charges), agreed by the creditor and borrower, shall be calculated all repayments (loans, future or existing, the in v a l ue of (i) charges payable by the borrower for non compliance with any of his commitments laid down in the credit agreement; (ii) charges other than the purchase price which, in purchases of goods or services, the consumer is obliged to pay whether the transaction is paid in cash or by credit; (iii) charges for receive towards payments funds and the transfer of charges for keeping an account intended to the reimbursement of the credit the payment interest and other charges except of the consumer does not have where reasonable the matter and where such charges are abnormally high; this provision shall not, however, apply to charges for collection of such payments, whether made in cash or otherwise; freedom of choice reimbursements or in (iv) membership subscriptions to associations or groups and arising from agreements separate from the credit agreement, even though such subscriptions have an effect on the credit terms; (v) charges for insurance or guarantees; included are, however, those designed to in the ensure payment to the creditor, event of the death, invalidity, illness or unemployment of the consumer, of a sum equal to or less than the total amount of the credit together with relevant interest to be and other charges which have imposed by the creditor as a condition for credit being granted. 3. (a) Where credit transactions referred to in this Directive are subject to the provisions of national laws in force 40 (b) only one mathematical formula for the annual percentage calculating rate of charge is used within their territory. to Six months before the expiry of the time limit laid down in point (a) the Commission shall submit the Council a report, accompanied by a proposal, which will make it possible in the light of experience, to apply a single Community mathematical formula for calculating the annual percentage rate of charge. (c) The Council shall, acting by a qualified majority on the basis of the proposal from the Commission, take a decision before 1 January 1996. in the the amount or In the case of credit contracts containing 6. rate of clauses allowing variations level of other interest and charges contained in the annual percentage rate of charge but unquantifiable at the time when it is calculated, the annual percentage the rate of charge shall be calculated on assumption interest and other charges remain fixed and will apply until the end of the credit contract. that necessary, 7. Where following assumptions may be made in calculating the annual percentage rate of charge: the there is no timetable if the contract does not specify a credit limit, the amount of credit granted shall be equal to the amount fixed by the relevant Member State, without exceeding a figure equivalent to ECU 2 000. for fixed if repayment, and one cannot be deduced from the terms of the agreement and the means for repaying the credit granted, the duration of the credit shall be deemed to be one year. the unless otherwise specified, where contract provides than one repayment date, the credit will be made available and the repayments made at the earliest the provided agreement. for more time for in than and, where those described to (v) not impose on 1 March 1990 which the annual limits on maximum percentage rate of charge for such transactions such provisions permit standard costs in other paragraph 2(i) to be included in those maximum limits, Member States may, solely in respect of such transactions, not the aforementioned costs include when annual calculating the percentage rate of charge, as stipulated in this Directive, provided that there is a requirement, in the cases mentioned in Article 3 and in the the credit agreement, consumer be the amount and inclusion thereof in the payments to be made. that informed of (b) Member States may no longer apply point (a) from the date of entry into force of the single mathematical formula for calculating the annual percentage rate of charge in the the to Community, provisions of paragraph 5(c). N pursuant 4. (a) (b) 5. (a) the The annual percentage rate of charge shall be calculated at the time is concluded, without prejudice to the provisions of Article 3 concerning advertisements and special offers. contract credit is valid that for The calculation shall be made on the credit the assumption contract the period agreed and that the creditor and the consumer their obligations under the terms and by the dates agreed. fulfil a transitional measure, As notwithstanding the provisions of paragraph 1(a), Member States to 1 March 1990, which, prior applied legal provisions whereby a mathematical formula different from that given in Annex II could be used annual for rate, of charge, may percentage continue formula that within their territory for a period of three years starting from 1 January 1993. c a l c u l a t i ng applying the Member States shall the appropriate measures to ensure that take 41 Annex II National Legislation transposing Directive 90/88/EEC Further details on the national legislation can be found in the Report prepared by Professor Seckelmann on the Method of calculation of APR in the EEA States, available from DG XXIV. Belgium Transposing Legislation: Scope: Term used: Formula used: Elements of cost: Other: Denmark Transposing Legislation: Scope: Term used: Formula used: Elements of cost la consommation relative au crédit à Loi / Wet op het consumentenkrediet 1991/1723 of 12. 6. 91, supplemented by Arrêté Royal relatif aux coûts. du crédit à la consommation / Koninklijk besluit betreffende kosten. van het consumentenkrediet 1992/2311 of 4. 8. 92, both of which have been amended since. Most kinds of credit (including mortgages and current accounts), Wider than the marketing of credit, activities of intermediaries. Directive, with limits on interest rates and lifespans of loans and specifies inadmissible terms Taux Annuel Effectif Global / Jaarlijkse Kostenpercentage Equivalent to EC formula Open list of elements to be included. Same exemptions as in Article 1a2 reasonable choice is given. Other legislation on the subject: Loi 1992/1833 of 6. 7. 92, Arrêté Royal / Koninklijk besluit 1992/2905 (Errata) of 4. 8. 92, Arrêté Royal / Koninklijk besluit 1992/2312 of 4. 8. 92, Arrêté Royal / Koninklijk besluit 1993/1226 of 27. 4. 93, Arrêté Royal / Koninklijk besluit 1993/1381 of 29. 4. 93 Insurance not excluded, is whether but criterion lov n* 284 of 29/04/92 and Lov om kreditaftaler 1990/398 of 13. 6. 90 amended by Lov n* 322 of 31. 05. 91, lov n° 226 of 06. 04. 94, supplemented by Bekendtgorelse n° 896 of 21. 12. 90 and Bekentsgorelse 970 of 07. 12. 92and Bekendtgorelse n° 497 of 13. 06. 94; Lov om maerkning og skiltning med pris n° 395 of 13. 6. 90; and Bekendetgorelse n° 902 of 12. 11. 92 Wider than the Directive - deals with real estate loans secured by mortgage (traded as bonds) ârlige omkostninger i procent EC formula Same exemptions as in Article 1a2 though more comprehensive (account and transfer costs are only exempted if consumer has reasonable choice and costs are not excessive) Other: Germany Transposing Legislation: Other legislation on the subject: Lov 1991/456 of 17. 6. 91 amended by Lov 1994/429 of 1. 6. 94; n° 322 of 31. 05. 91, n° 284 of 29. 04. 92, n° 226 of Bekendtgorelse 06. 04. 94, n° 1098 of 21. 12. 94, n° 970 of 07. 12. 92 and n" 1228 of 21. 12. 92 Erste VO (von 03. 04. 92) zur Anderung der Preisangabenverordnung (von 14. 3. 85) 42 Scope: In some respects wider than the Directive, with regulations on default and intermediaries. effektiver Jahreszins or anfanglicher effektiver Jahreszins Term used: Formula used: Derogation in Article 1a5a - Staffelrechnung (cascade calculation) Elements of cost: Literal transposition, using the exemptions in article 1a2. Insurance which does not secure repayment is exempt, whether mandatory or not. Other: Other legislation on the subject: 14. 3. 85, Article Ausfuhrungshinweise zu §4 PAV of 18. 12. 92; Verbraucherkreditgesetz of 17. 12. 90, amended 27. 4. 93 609a BGB; Preisangabenverordnung of Greece Transposing Legislation: Scope: Term used: Formula used: EC formula Elements of cost: Other: Ministerial Decision 01-983 of 7. 3. 91 As in Directive etisio pragmatiko epitokio As in Article 1 a2 Other legislation on the subject: Decision 1993/524 of the Committee of Money and Credit of the Bank of Greece, of 8. 4. 93; Acts of the Governor of the Bank of Greece n° 1993/2213 of 15. 6. 93; n° 1993/2258 of 2. 11. 93; n° 1994/2286 of 28. 1. 94 Spain Transposing Legislation: Scope: Term used: Formula used: Elements of cost Ley de crédito al consumo 1995/7 of 23. 3. 95 and correction 12. 5. 87 As in Directive, but interest rate and total cost must also be stated for mortgages. tasa anual équivalente and porcentage anual de cargas financieras Equivalent to EC formula All charges are included in the rate, including mandatory insurance charges (and non-mandatory insurance charges are not listed as exempted). Other: Other legislation on the subject: Ley 1965/50 of 21. 7. 65; Orden Banco de Espana of 16. 6. 88, Ley 1988/26 of 29. 7. 88; Orden 1989/303 of Min. Economia y Haciendas of 12. 12. 89; Circular Banco de Espana 1990/8 of 7. 9. 90, n° 1993/13 of 21. 12. 93 and 1994/5 of 22. 7. 94; Ley 1994/2 of 30. 3. 94, Orden Banco de Espana of 5. 5. 94; Directive 90/88 has not been transposed in France. France Transposing Legislation: Scope: taux effectif global Term used: Formula used: -- Elements of cost: Other: By existing legislation, all charges are included in the rate Other legislation on the subject: Loi 1966/1010 of 28. 12. 66, Loi 1978/22 of 10. 1. 78 amended by 1979/596 of 13. 7. 79; Ordonnance 1986/71243 of 1. 12. 86; Loi 1988/15 of 5. 1. 88; Décret 1988/293 of 31. 3. 88; Loi 1989/1010 of 31. 12. 89; Loi 1992/60 of 18. 1. 92; Décret 1985/944 of 8. 9. 85; Loi 1993/949 of 26. 7. 93; Décret n* 1978/372 of 17. 3. 78, n* 1987/509 of 24. 3. 78; n" 1988/293 of 25. 3. 88; Loi 1995/125 of 8. 2. 95 43 Ireland Transposing Legislation- Scope: Term used: Formula used: Elements of cost: Other: 1995 Consumer Credit Act, 28. 7. 95 Wider than the Directive annual percentage rate of charge EC formula Generally the same as Art. 1a2 Other legislation on the subject: Consumer Information (Consumer Credit) Order SI 1987/319 of 10. 12. 87 Italy Transposing Legislation: Scope: Term used: Formula used. Elements of cost: Other: Legge communitaria 1991/142 of 19. 2. 92; Decreto vista 1992/142 of 8. 7. 92 Wider than the Directive - neither loans before notaries nor loans to be repaid by 4 instalments in 12 months are not exempted, and credit purchases are included. tasso annuo effettivo globale EC formula legge la As in Article 1a2. Open list of charges to be included Other legislation on the subject: Legge 1992/154 of 17. 2. 92; Decreto on Legge 1992/154, 24. 4. 92; Instruzioni della Banca d'ltalia legge 1992/154, 24. 4. 92; Legge in materia bancaria e creditizia 1993/385 in attuazione della Luxembourg Transposing Legislation: Scope: Term used: Formula used: Elements of cost: Other: Règlement Grand-Ducal 26. 8. 93 As in Directive but credit card accounts are treated the same as other accounts taux annuel effectif global EC formula Same as in Article 1 a2 Other legislation on the subject: Loi 9. 8. 93; Avant-projet de règlement grand-ducal déterminant les modalités de calcul du montant de la réduction équitable du coût total de crédit Netherlands Transposing Legislation: Scope: Term used: Formula used: Elements of cost Wet op het consumentenkrediet 4. 7. 90 Stb 1990/395 Wider than the Directive and very detailed. Regulation of intermediaries and obligation on lenders to advise debtors. Maximum rates. effektief kredietvergoedingspercentage (op jaarbasis) Equivalent to EC formula Only 1a2(i) & (ii) are used. obligatory, they are not exempted. If account fees or insurance fees are Other: Other legislation on the subject: Besluit n' 1991/515 and 1991/516 of 9. 10. 91; n° 548 of 17. 10. 91, n* 549 of 16. 10. 91, n* 550 of 18. 10. 91; Regeling 1991/220 of 6. 11. 91; Regeling register vergunninghouders Stcr 1991/220 of 6. 11. 91 44 Austria Transposing Legislation: Scope: Term used: Formula used: Elements of cost Other: 13. 07. 93 Bankwesengesetz BGBL n° 532 of Verbraucherkreditverordnung n° 110 of 13. 05. 93 Wider than the Directive in some respects. No form of credit exempt - applies to real estate loans, mortgages and loans of any amount or duration. Certain leasing transactions also seen as being equivalent to hire-purchase. (dekursiver) effektiver and fiktiver Jahreszinssatz Equivalent to EC formula (Section VIII); Only 1a2(i) & (iii) are used. 360 day year used Other legislation on the subject: Insurance is included if mandatory. Konsumentenschutzgesetz 1979/140 of 8. 3. 79, amended by 1993/247 of 16. 4. 93; Konkursordnungsnovelle 1993/974; Gewerbeordnung 1994/194 Portugal Transposing Legislation: Scope: Term used: Formula used: Elements of cost: Other: Decreto-Lei 1991/359 of 21. 9. 91 Wider than the Directive in the range of credit covered. Mortgages not covered. taxa anual de encargos efectiva global EC formula Same as in Article 1a2. Intermediaries' costs included. Finland Transposing Legislation: Scope: Term used: Formula used Kuluttajansuojalaki / Konsumentskyddslag 1978/38 of 20. 1. 78, as amended by 1986/385 of 23. 5. 86, 1993/85 of 8. 1. 93 and 1994/16 of 5. 1. 94: Asetus / Fôrordning 1993/1602 of 30. 12. 93 as amended by 1994/16 of 1. 7. 94 Wder than the Directive - includes loans to buy homes and mortgages. todellinen vuosikorko / effektiv rànta Derogation in Article 1a5a. Formula: Decision of Ministry of Trade and in Chapter 7 of the Industry on the application of certain provisions Consumer Protection Act (1986/874 of 30. 06. 86 as amended by 1994/661) Elements of cost: Other: All charges, except for non-mandatory insurance, are included Other legislation on the subject: Luottolaitoslaki / Kreditinstitutslag 1993/1607 of 30. 12. 93 Sweden Transposing Legislation: Scope: Term used: Formula used: Elements of cost. Konsumentkreditlag 1992/830 Wder than the Directive - covers all forms of loans, including mortgages and those connected with credit-purchases and current accounts effectiv rànta EC formula All charges are included (no exemptions are listed though in practice Insurance is not mentioned but if those in the Directive are used). it is mandatory, must be included. Other: Other legislation on the subject: Guidelines 1992/4 for the application of Konsumentendreditlag 1992/830; Executive Order 1992/1010 of 22. 10. 92 45 United Kingdom Transposing Legislation: Scope: Term used: Formula used Elements of cost: Other: 1 9 7 4; T he C o n s u m er C o n s u m er C r e d it Act (Agreements)(Amendments) Regulation Statutory Instrument 1984/1600 of 22. 10. 94 More comprehensive than the Directive annual percentage rate of charge Equivalent to EC formula C r e d it As in Article 1a2. All mandatory costs included. Other legislation on the subject: Consumer Credit Act 1974; The Consumer Credit Regulations - Statutory Instruments 1980/51 of 29. 1. 80, 1983/1553 of 3. 11. 83, 1983/1562 of 3. 11. 83, 1983/1564 of 3. 11. 83, 1985/1192, 1989/596 of 14. 4. 89; 1989/869 of 24. 5. 89; 1989/1125 of 6. 7. 89; 1989/1126 of 6. 7. 89 Iceland Transposing Legislation: Scope: Term used: Formula used: Elements of cost Log urn neytendalan 1993/30, amended by 101/1993 - consolidated in Log urn neytendalan 1994/121 of 21. 9. 94 Hirepurchase and leasing agreements are included ârleg hlutfallstala kostnaôar EC formula As in Article 1a2. All costs, including non-mandatory insurance, are included. Other: Other legislation on the subject: Regulgerô 1993/377 of 3. 9. 93 and Regulgerô 1993/491 of 3. 12. 92 Liechtenstein Transposing Legislation: vom 22 Oktober Gesetz (Liechtensteinisches Landesgesetzblatt 1993 n°50 von 9/3/93) Effektiver Jahreszins EC formula 1992 ùber den Konsumkredit Term used: Formula used: Elements of cost: As in Article 1a2 Other: 360 day year used Norway Transposing Legislation: Scope: Term used: Formula used: Elements of cost Other: Lov om kredittkjop 1985/82 of 21. 6. 85 as amended; Forskrift kredittkjopsloven 1986/1616 of 15. 7. 86; Forskrift 1990/437 of 1. 6. 90 Narrower than the Directive in that it only covers purchase credit, but wider in that only immovable property is exempt - covers more than consumer purchases, covers wider range of current accounts, effectiv rente EC formula (to be implemented in 1996) til As in Article 1a2 Other legislation on the subject: Lov om amendment 4. 12. 92 finansieringsvirksomnet og finansinstitusjoner 1988/40 and 46 Annex III For the references to the German and French formulae, see footnotes 46 and 50 respectively. Formula used for calculating APR in Finland: Single Credits: P= 1 2 x 2 0 0 xR K x (T + L) in which P= R = K = T = L = APR the amount of total costs the amount of initial loan repayment period expressed in months the interval between repayments expressed in months Current Accounts: 100 x yearly credit costs P = typical amount of credit [Provided by the Consumer Ombudsman's Office, Finland] 47 EXPLANATORY MEMORANDUM Background - Directives 87/102/EEC and 90/88/EEC 1. 2. 3. In 1975, the Council adopted the Preliminary Programme of the European Economic Community for a consumer protection policy\ in which they emphasised the fundamental nature of the consumer's right to protection of their economic interests, and urged that priority be given, inter alia, to the adoption of measures at Community level to harmonise the general conditions of consumer credit. The Commission's original proposal on consumer credit2 was amended3, following Parliament's suggestions, to provide the establishment of a uniform method for the calculation of the annual percentage rate of charge for credit. for The Council adopted Directive 87/102/EEC4 for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit, on 22 December 1986. The ninth recital and Article 5 of this Directive provided for the introduction of a Community method or methods of calculating the 'annual percentage rate of charge' for credit. However, as the elaboration of a common formula for the calculation of the 'annual percentage rate of charge', and the elements to be includea in this calculation, had proved contentious, Directive 87/102 stated that, "pending a decision on a Community method or methods of calculating the 'annual percentage rate of charge', Member States should be able to retain existing methods or practices" and that the "total cost of credit to the consumer" (Article 1. 2d) and the 'annual percentage rate of charge' (Article 1. 2e) should be determined and calculated in accordance with the provisions, practices and methods existing in the Member States. Following discussions with government experts, the Commission presented a proposal for a Directive5. The European Parliament6 and the Economic and Social Committee7 recommended the regulation not only of the mathematical aspects but also of the elements of cost to be included in the calculation. As most Member States were willing to adopt the actuarial method of calculation and were also willing to deal with the elements of cost to be included, an 1 OJ C 92 25. 04. 75 2 OJ C 80 27. 03. 79 p. 4 3 OJ C 183 10. 07. 84 4 O JL 42 12. 2. 87 5 OJ C 155 14. 6. 88 p. 10 6 EP Report A2-418/88 of 06. 03. 89; EP Resolution of 15. 03. 89 7 ECOSOC Opinion, OJ C 337 31. 12. 88 p. 1 <h 4. 5. 6. 7. 8. amended proposal dealing with both aspects was presented in 19898. Directive 90/88/EEC was adopted on 22 February 1990 and introduced a Community method of calculating the 'annual percentage rate of charge' for consumer credit and defined the credit cost items to be used in the calculation by indicating those costs which were not to be taken into account. All Member States9 were to ensure, at least, that only one mathematical formula for the calculation was in use in their territory for that purpose. For a transitional period until 1 January 1996, those Member States which, on a legislative basis, used a different mathematical formula for the calculation of the 'annual percentage rate of charge' (prior to 1 March 1990) were permitted to continue to do so10. Article 1a(5)(b) of Directive 87/102 (as added by Directive 90/88) requires the Commission to present to the Council "a Report, accompanied by a proposal" which will make it possible to apply a single Community mathematical formula for calculating the 'annual percentage rate of charge'. The Commission has prepared a Report on the operation of Directive 90/8811 which explains in more detail the reasons for the proposals for amendment presented below. This Report is based on a study prepared by a consultant expert in financial mathematics12, on studies of the transposition of the Directive into domestic law13 and, particularly, contacts with government experts14. While Article 1a(5)(c) states143 that the Council shall, acting on the basis of the Commission's proposal, "take a decision", this is not a 'Decision' as defined by Article 189 of the Treaty but rather, since its objective would be to require This interpretation is in Member States to change their laws, a Directive. OJC 155 23. 06. 89 p. 4 Directive 90/88 was incorporated into the Agreement on the European Economic Area (EEA) and the Report (see footnote 11 infra) therefore covers Iceland, Liechtenstein and Norway as well as the 15 members of the European Union Article 1a(5)(a) of Directive 87/102 (as added by Directive 90/88) COM(96)79 Professor Seckelmann has prepared a study on the Methods of calculation in the European Economic Area of the Annual Percentage Rate of Charge (available from DG XXIV) Footnote 3 of COM(95)117, Report on the operation of Directive 87/102/EEC on the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit Meetings were held in Brussels in April 1995 and January 1996, with continued direct contacts in the intervening months. The French and Italian versions of the Directive do not refer to a "decision" 9 10 11 12 13 14 14a Eto accord with that previously given to Article 5 of Directive 87/102 which referred to a 'decision' on the introduction of a Community method - the method was in fact introduced by a Directive (Directive 90/88/EEC). Proposals for the amendment of Directive 87/102 (as amended by Directive 90/88): 9. 10. As has been explained in more detail in the Report on the operation of Directive 90/8815, there are almost as many denominations for the Annual Percentage Rate of Charge in use as there are Member States. this reason, in the interests of transparency and of For the same reasons that it is desirable, in order to ensure the proper functioning of the Internal Market and to ensure a high level of protection of consumers, that one single method be used for the calculation of the annual percentage rate of charge be used throughout the European Community and the other members of the EEA, it is also desirable that consumers should be able to recognise the terms used in other Member States to indicate this rate. increased For comprehension by consumers, it is desirable that a common feature be included in order to enable consumers to recognise these terms as being equivalent to the one in use in their own Member States. Following discussions with government experts, and the principles of proportionality and subsidiarity, it is not proposed to suggest the harmonisation of the different terms in the different languages, but rather to require the use in all consumer credit of a symbol advertisements and written agreements with consumers. This symbol will be identical in each Member State. This will entail the amendment of Article 3 and 4(2) of Directive 87/102 (as amended by Directive 90/88) in order to require the use of a sumbol in addition to the existing term "annual percentage rate of charge" in all consumer credit advertisements and written agreements with consumers. in addition to the existing in accordance with term 11. In order to harmonise the different existing language versions of the Directive, the amendment of Article 1a(1)(a) in the English and Greek language versions of the Directive is required16. The article will now read as follows (identical to the French language version): The annual percentage rate of charge, which shall be that rate, on an annual basis, which equalises the present value of all commitments (loans, repayments and charges), future or existing, agreed by the creditor and the borrower, shall be calculated in accordance with the mathematical formula set out in Annex II. 15 16 Paragraphs 113 - 120 of the Report This amendment has been discussed with and agreed by Ireland and the United Kingdom (as far as the words "that rate. which equalises" are concerned). 5Ï and the proposed wording for the Greek version of Article 1 a(1)(a) is as follows: "TO OVVOXl KÔ €TT)0~ LO 1TpOty\JaT L KO 1TOOOOTÔ 6 7T L (Sap V V 07] Ç ITOU 6 £ LOù3V€ L oe eTf\o'ioL (3aorj TLÇ ^eXXovTLKù)vviToxpeù)oeix)v(ôoiveiG)v, TTOV éxovv KOLTOLVOlXbiTT), VÏÏOX OJ L f 6 TOL L O V P0W V 01 Ue TO \lŒÔ T]\l0LT L K. O TV1TO TTOV •ïïOtpOLT L de TOtl OTO 7TOL p Ôt p T7][\a. I I ". f) eCocfrXijoeuv KŒL eir L(3ocpv voeuv) i f ope vo) irocpovoeç a £ i eç TOV ovvôXov otvotXr)<fid et airô TWV rpexouoûv TO ôaveLUTf) (ôave non TO 12. 13. Article 1a(3) of the Directive permitted Member States who had national laws in force on 1 March 1990 which imposed maximum limits on the annual percentage rate of charge and which excluded costs other than those referred to in Article 1a(2), to continue to rely on these provisions (provided that the consumer is informed of these charges). As no Member State has made use In any event, it of this possibility, it is appropriate to delete Article 1a(3). would be necessary to delete this Article once the formula was confirmed as proposed by the present proposal for a Directive. in the Report on the Operation of Directive As has been demonstrated 90/88/EEC, the formula contained in Annex II of the Directive is completely correct and should be confirmed throughout the European Economic Area. This will entail the replacement, in Germany, France and Finland, of the formulae presently in use. Neither the German nor the French formulae use exponential calculation, resulting in a situation where neither can apply a one year compounding period for all circumstances. The main differences in relation to the German formula17 relate to short term credit, a form increasingly used e. g. credit cards. Indeed, some German banks already use the EC formula for calculating rebates because the older system is inapplicable in cases of unequal instalments. With the French18 formula, the monthly rate is converted to an annual rate by multiplying by twelve. This is misleading as it is not based on an annual compounding period and thus leads to very significant differences with the EC formula. French consumer credit contracts thus appear artificially more favourable to consumers than those of other Member States. While the German system is mathematically inconsistent and creates artificial differences in calculations, it has only modest effects on most ordinary instalment credit. The French system deviates so significantly as to mislead not only non-French consumers but also French consumers. 14 As an example, in a loan of 1000 ECU, with 10 ECU interest each month, the following results are achieved using the different formulae: 17 See paragraphs 64-75 of the Report on Directive 90/88 18 See paragraphs 76-81 of the Report on Directive 90/88 5X Term (months) 6 12 18 24 48 Cost German method EC method French method 60 120 180 240 480 21. 49 24. 66 24. 27 24. 34 23. 09 22. 29 23. 70 24. 00 23. 84 22. 86 20. 29 21. 46 21. 65 21. 58 20. 75 15 16. The German deviation is signficant for periods of less than one year while the French deviation is more general and serious. The advantages of the EC formula19 are that mathematically, the use of a single formula is the only way to guarantee that the price represents equal conditions; that it enables consumers to shop across borders in the Single Market; that it simplifies the legal framework for consumer credit in different Member States and promotes consistency in the national transposition measures. Production costs for software companies and financial institutions will be reduced due to the economies of scale provided by the use of a single formula throughout the Single Market. The potential cost of adapting computer programmes and price structures to handle the EC formula is not a striking argument as banks in those Member States which already use the formula have already made this investment. Those banks that will now be obliged to change frequently adapt their programmes to take account of case law and administrative rules on the subject and, in addition, already use the EC formula for some (internal) calculations. It is therefore necessary to delete Article 1a(5), the Article which provided a derogation until 31 December 1995 (used by Germany and Finland) to those Member States who wished to retain a different method for the calculation of the annual percentage rate of charge. As has been demonstrated in the Report on the Operation of Directive 90/88/EEC, the formula contained in Annex II of the Directive should be confirmed throughout the European Community and other members of the EEA. As a result, Article 1a(5)(a) (the derogation), Article 1a(5)(b) (the reference to the Report and this legislative proposal) and Article 1a(5)(c) (the reference to the decision to be taken by the The Council), are no longer necessary and should be deleted. confirmation of the formula contained in Annex II will entail changes in the legislation presently in force in Germany, France and Finland. 17. Linguistic changes have also been proposed to the wording of the definitions in Annex II in certain language versions - namely Spanish, French and Dutch. 18. While the Directive does not at present define the degree of accuracy required 19 See paragraphs 82 - 93 of the Report on Directive 90/88 55 in the calculation of the annual percentage rate of charge, the examples in Annex III presuppose accuracy to at least one decimal place. Most Member States require accuracy to at least one decimal place. As the scope of many Member States'consumer credit legislation covers higher amounts and longer terms than in the Directive, the differences as a result of the level of accuracy become important, especially in those Member States which include mortgage credit in the scope of their legislation. It is therefore necessary that accuracy to two decimal places should be required (though accuracy to one decimal place could be allowed where the difference is less than ECU 50). This would also entail amendment of Annex II and of the examples in Annex 19. 20. 21. The Directive states in Annex II that intervals shall be expressed in "years or in fractions of a year". This dates from the pre-computer era when, for ease of calculation, a year was defined as having 12 equal months, 52 weeks and 360 days. Compounding periods were likewise set at full months or years in order to make end-of-year calculations possible. This leads to situations where the 31st day of some months is ignored and 2 days are added to February in order to arrive at 12 equal 30 day months. In practice, most Member States (with the exception of Germany, Austria, Sweden, Liechtenstein and Norway) have introduced the correct calendar into their calculations. Even in those Member States, the correct calendar year of 365 days is used for certain calculations. Use of a 365 day year is, moreover, in conformity with computer programmes all over the world - computers automatically calculate on the basis of a 365 day year and the number of days in a given time period. As the differences in the rates for credit calculated on a 360 day year and a 365 day year can be significant, it is necessary that Annex II should be amended to state that a year is presumed to have 365 or 366 days20. This would also entail amendment of Annex II and of the examples in Annex III. This proposal would, in practice, only affect Germany, Austria, Sweden, Liechtenstein and Norway, who presently use a 360 day year in their calculations. A miscalculation in the fourth example in Annex III also needed correction - instead of 13. 21% the answer should have been 13. 1855 or 13. 19%. This correction has, however, been overtaken by the recalculation of the examples on the basis of accuracy to 2 decimal places and the use of a 365 or 366 day year. 22. No proposals are put forward at this time concerning the list in Article 1a(2) of the Directive (the elements of cost to be excluded from the calculation of the annual percentage rate of charge) as most Member States include the same elements and such differences as do exist are minimal in nature. As regards amendment of any other substantive elements of Directive 90/88/EEC, any 20 While Denmark uses a year of 365. 25 days, averaged over 4 years, in order to take account of leap years, this is not proposed for the Directive as the difference would not be significant enough to be noticed in a calculation which uses accuracy to 2 decimal places. 9i proposals in this regard would be considered together with proposals for the amendment of the original Consumer Credit Directive, Directive 87/102/EEC21. Legal situation pending the adoption of the proposed Directive 23. 24. As a result of changed circumstances following the enlargement of the European Union to include Austria, Finland and Sweden, and the delayed transposition of Directives 87/102 and 90/88 by certain Member States, the Commission was unable to present the Report and proposal mentioned in Article 1 a(5)(b) by 1 July 1995, and the Council and Parliament were unable to adopt the proposed draft Directive by 1 January 1996. Article 1a(5)(a) of Directive 87/102 permitted Member States, as a transitional measure, to continue to apply legal provisions for the calculation of the global annual effective rate different to those in the Directive for a period of three years starting from 1 January 1993 (i. e. until January 1 1996). The Commission interprets Article 1a(5)(b) as an implicit prolongation of this period until the adoption of the Directive referred to in Article 1a(5)(c). Germany, France and Finland may therefore continue to apply existing legal provisions different to those in Annex II of Directive 87/102 until the adoption of the proposed Directive. 21 A Report on the operation of which was published in May 1995 [COM(95)117 of 11. 05. 95], reactions to which are currently under consideration by the Commission. Any subsequent legislative proposal in this respect could include amendments to Directive 90/88. 55 DIRECTIVE 96/ OF THE EUROPEAN PARLIAMENT AND THE COUNCIL of 1996 amending Directives 87/102 (as amended by Directive 90/88) for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit T HE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 100a thereof, Having regard to the proposal of the Commission1, Having regard to the opinion of the Economic and Social Committee2, Acting in accordance with the procedure laid down in Article 189b of the Treaty3, Whereas it is desirable, in order to promote the establishment and functioning of the internal market and to ensure that consumers benefit from a high level of protection, that one method of calculating the annual percentage rate of charge should be used throughout the European Community, Whereas Article 5 of Council Directive 87/102/EEC4 provides for the introduction of a Community method or methods of calculating the annual percentage rate of charge for consumer credit; Whereas, in order to introduce this single method, it is desirable to draw up a single mathematical formula for calculating the annual percentage rate of charge and for determining the credit cost items to be used in the calculation by indicating those costs which must not be taken into account, Whereas Annex II of Directive 90/88/EEC (5) introduced a mathematical formula for the calculation of the annual percentage rate of charge and Article 1. 2 of Directive 90/88 provided the charges to be excluded from the calculation of the 'total cost of credit to the consumer', Whereas during a transitional period of three years from 1 January 1993, Member States which prior to 1 March 1990 applied laws which permitted the use of another mathematical formula for calculating the annual percentage rate of charge, were permitted to continue to apply such laws, 4 5 OJ n° L42 12. 2. 87 p. 48 OJ L61 10. 3. 90 p. 14 5f Whereas the Commission has submitted a Report to the Council (6) which makes it possible, in the light of experience, to apply a single Community mathematical formula for calculating the annual percentage rate of charge, Whereas no Member State has made use of Article 1a(3) of the Directive by which certain costs were excluded from the calculation of the annual percentage rate of charge in certain Member States, it has become obsolete, Whereas accuracy to two decimal places and the use of a 365 or 366 day year is necessary, Whereas it is desirable that consumers should be able to recognise the terms used in different Member States to indicate the 'annual percentage rate of charge', and that the use of a common symbol, in addition to the existing term, should be mandatory in all consumer credit advertisements and written agreements with consumers throughout the European Community, HAVE ADOPTED THIS DIRECTIVE: COM(96)79 3 Article 1 Whenever the term "annual percentage rate of charge", or the equivalent term in another Community language, is used as required by Directive 87/102, it shall be accompanied by the following symbol: it it w it it % it it it it it it^it Article 2 Article 1a(1)(a) shall be replaced by the following: in the Greek language version of the Directive: eTijoLO TLÇ "To OVVOXIKO eTf)oia. Pâorj [ieXXovT L KQV VTroxpcûoeuv ixovv vnoXoyi Trapâprr/Uck; I I ". f e ra i avU^wva ' irapoûoeç a£ïeç irpocy\JaT L KO TTOOOCTO eir ifiâpu vorjç TTOV e^toûvei ce f) (ôav e ïuv, e^o4>Xf)oeuiv KÙ L eir tfiotpv voeojv) TTOV non TO (ôave L f ôUe v o) KaTcuvaXuTfj, [iaôr}[iaT L KO TOTTO TTOU uapaTÏ 6 e Ta L OTO TÙJV Tpexovoœv ovvôXov \ie TO rov avaXri(f)d et otirô TO botveiOTf] in the English language version of the Directive: The annual percentage rate of charge which she!! be that rate, on an annual basis which equalises the present value of all commitments (loans, repayments and charges), future or existing, agreed by the creditor and the borrower, shall be calculated in accordance with the mathematical formula set out in Annex (II). ' Article 1a(3) shall be deleted. Article 1a(5) shall be deleted. Article 3 Article 4 Article 5 Article 3 shall be amended as follows: Without prejudice to Council Directive 84/450/EEC of 10 September 1984 relating to the approximation of the laws, regulations and administrative provisions of the Member States concerning misleading advertising, as amended by Council Directive /96 of. 1996 concerning comparative advertising, and to the rules and principles applicable to unfair advertising, any advertisement, or any offer which is displayed at business premises, in which a person offers credit or offers to arrange a credit agreement and in which a rate of interest or any figures relating to the cost of the credit are indicated, shall also include a statement of the annual percentage rate of charge, accompanied 5f by the symbol as mentioned in Article 1 of this Directive, by means of a representative example if no other means is practicable. Article 6 Article 4(2)(a) shall be amended as follows: (a) a statement of the annual percentage rate of charge, accompanied by the symbol as mentioned in Article 1 of this Directive Annex I attached hereto shall become Annex II, replacing Annex II of Directive 87/102 (as amended by Directive 90/88). Article 7 Annex II attached hereto shall become Annex III, replacing Annex III of Directive 87/102 (as amended by Directive 90/88). Article 8 Article 9 1. Member States shall bring into force the laws, regulations and administrative provisions necessary for them to comply with this Directive no later than 31 December 1996 and shall inform the Commission thereof. When Member States adopt those measures, they shall include references to this Directive or shall accompany them with such references on their official publication. The Member States shall lay down the manner in which such references shall be made. 2. The Member States shall communicate to the Commission the texts of the provisions of national law which they adopt in the field governed by this Directive. This Directive is addressed to the Member States Article 10 Done at Brussels, 1996 L Annex I Annex II THE BASIC EQUATION EXPRESSING THE EQUIVALENCE OF LOANS ON THE ONE HAND AND REPAYMENTS AND CHARGES ON THE OTHER K = m E A f -1 A -^-7 (1 + / ) '* K' = m' - E fC =1 A* * (1 + /)'*• Meaning of letters and symbols: K K' AK A\- J2 is the number of a loan is the number of a repayment or a payment of charges is the amount of loan number K is the amount of repayment number K' represents a sum m is the number of the last loan m ' is the number of the last repayment or payment of charges tK tK- i is the interval, expressed in years and fractions of a year, between the date of loan No. 1 and those of subsequent loans Nos. 2 to m is the interval, expressed in years and fractions of a year, between the date of loan No. 1 and those of repayments or payments of charges Nos. 1 to m' is the percentage rate that can be calculated (either by algebra, by successive approximations, or by a computer programme) where the other terms in the equation are known from the contract or otherwise. Remarks (a) (b) (c) (d) The amounts paid by both parties at different times shall not necessarily be equal and shall not necessarily be paid at equal intervals The starting date shall be that of the first loan Intervals between dates used in the calculations shall be expressed in years or in fractions of a year. A year is presumed to have 365 or 366 days The result of the calculation shall be expressed with an accuracy of 2 decimal places. If the figure at the third decimal place is greater than or equal to 5, the figure at the second decimal place shall be increased by one. 61 Annex II "Annex III: EXAMPLES OF CALCULATION First example Sum loaned: S = 1000 ECU on January 1 1994 It is repaid in a single payment of 1200 ECU made on June 30 1995 (547 days after the date of the loan) 1 2^ 647 (1+4 365 The equation becomes: 1000 = or 547 (1+4 365 ~ 1. 2 1 + i= i = 1. 129444207. 0. 129444207. This amount will be rounded to 12. 94% Second example The sum loaned is S = 1000 ECU but the creditor retains 50 ECU for administrative expenses, so that the loan is in fact 950 ECU; the repayment of 1200 ECU, as in the first example, is again made on June 30 1995. The equation becomes: 547 365 = 1 ,2 1200 547 365 (1+J) 950 = or (u& I1 +0 =1200 950 =1 I 2 631 57 1 + i = i = 1. 1688996. 0. 1688996. rounded to 16. 89% a Third example The SLm loaned is 1000 ECU, repayable in two amounts, each of 600 ECU, paid after one and two years respectively. The equation becomes: 1000=- 600 1 +/ 600 (1 +/)730/365 600 600 1 +/ (1 + /)2 It is solved by algebra and produces i = 0. 1306623, rounded to 13. 07% Fourth example The sum loaned is 1000 ECU, on January 1 1994, and the amounts to be paid by the borrower are: After 3 months After 6 months After 12 months (0. 25 years ) (0. 5 years ) (1 year ) 272 ECU 272 ECU 544 ECU Total 1088 ECU The equation becomes: 1 0 0 0 = ^ ^+. 89 (1+/)365 2 72 5 44 180 (1+/)365 365 (1+/)365 This equation allows i to be calculated by successive approximations, which can be programmed on a pocket calculator The result is: i = 0. 13226, rounded to 13. 23% C2. ISSN 0254-1475 COM(96) 79 final DOCUMENTS EN 10 06 Catalogue number : CB-CO-96-090-EN-C ISBN 92-78-00976-8 Office for Official Publications of the European Communities L-2985 Luxembourg £s

Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE amending Directives 87/102 (as amended by Directive 90/88) for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, l2. U4. iyyo COM(96) 79 final 96/0055 (COD) Report on the Operation of Directive 90/88 Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE amending Directives 87/102 (as amended by Directive 90/88) for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit (presented by the Commission) I. II Introduction and Summary » The mathematical formula in Directive 90/88/EEC 1. 2. 3. 4. Simple interest rate calculation Yearly Compounded Interest The 1 year compounding period: The EC formula a) b) Present Value Summing up different calculations: the E symbol 1 5 6 7 8 10 11 11 III The calculation of the Annual Percentage Rate of Charge in the EC 13 and the other members of the EEA 1. 2. 3. General Observations a) b) Interest and the Annual Percentage Rate of Charge Verbal Definitions of the Annual Percentage Rate of Charge The Application of the EC formula The calculation of the Annual Percentage Rate of Charge in Germany and France a) b) c) The German method The French method Comparison of the EC formula and the German and French methods 4. Arguments in favour of the EC formula IV. Elements of Cost to be included in the calculation a) b) Elements of Cost Situation in the Member States V. Other issues 1. 2. 3. The Denomination of the Annual Percentage Rate of Charge Accuracy Time definitions VI. Conclusions and Recommendations Annexes: 13 13 14 15 17 17 19 21 23 25 25 25 32 32 35 36 38 I II III Articles 1 and 1a of Directive 87/102 (as amended by Directive 90/88)40 42 National legislation transposing Directive 90/88 47 The different formulae in use (German, French, Finnish) /fn I. Introduction and Summary On 22 February 1990, the Council adopted Directive 90/88 amending regulations and 1. Directive 87/102 administrative provisions of the Member States concerning consumer credit". This Directive entered into force on 31 December 1992. the approximation of laws, "for the 2. Pursuant to Article 1a5b of the amended Directive, the Commission must: "submit to the Council a report, accompanied by a proposal, which will make it possible in the light of experience, to apply a single Community mathematical rate of charge". the annual percentage for calculating formula Pursuant to Article 1a(5)(c), the Council shall "acting by a qualified majority on the basis of the proposal from the Commission, take a decision before 1 January 1996". Background1 for The first Consumer Credit Directive, Directive 87/102/EEC the 3. approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit2, introduced the principle that a the calculation of the "annual uniform method should be established percentage rate of charge". Although the principle was established, the method was left open. Following discussions with government experts, the Commission presented a proposal for a Directive3, later amended4, to regulate not only the mathematical aspect but also the elements to be included in the calculation. Directive 90/88 was adopted by the Council on 22 February 1990. The Directive introduced a Community method of calculating the "annual percentage rate of charge" for consumer credit and defined the credit cost items to be used in the calculation by indicating those costs which were not to be taken into account5. for All Member States were to ensure, at least, that only one mathematical 4. formula for the calculation of the "annual percentage rate of charge" was in use in their territory. For a transitional period until 1 January 1996, those Member States which used a different mathematical formula for the calculation of the "annual percentage rate of charge" (prior to 1 March 1990) were permitted to continue to do so. For further detail on the background to Directives 87/102 and 90/88, see Chapter 2 of the Report on the application of Directive 87/102: COM(95)117 of 11. 05. 95 OJ L 42 of 12. 2. 87, p. 48 OJ C 155 14. 6. 88 p. 10 4 OJ C 155 23. 06. 89 p. 4 Recital 3, Directive 90/88 5. Directive 90/83 was incorporated into the Agreement on the European Economic Area (EEA) and this Report therefore covers Iceland, Liechtenstein and Norway as well as the 15 members of the European Union. 6. Pursuant to the obligation in Article 1a(5)(b) on the Commission to present to the Council "a Report, accompanied by a proposal" which will make it possible to definitely apply a single Community mathematical formula for calculating the "annual percentage rate of charge", the Commision hired a consultant expert in financial mathematics to carry out a study of the application of Directive 90/88 in the Member States of the European Community and other members of the EEA6. Meetings and contacts with government experts also took place between April 1995 and January 1996. On the basis of the results of the above study, other studies of the transposition of the Directive into domestic law7, and particularly the results of contacts with governmental experts, the Commission presents the present Report which is accompanied by a proposal for a Directive8 which will "make it possible, in the light of experience, to apply a single Community mathematical the annual percentage rate of charge". for calculating formula 7. While the Directive requires an evaluation and a report which ". will make it possible, in the light of experience, to apply a single Community mathematical formula. ", this requires an examination of other issues than the mathematical formula alone, in order to define a uniform application of the formula. Conclusions of the Report9 8. Transposition of the Directive has been completed in the majority of Member States of the European Community and other members of the EEA. The formula contained in Annex II of the Directive is presently in use in all Member States of the European Community and other members of the EEA, with the exception of Germany, France10 and Finland. Study of the method of calculation of APR in EEA States, Contract A0 2600/94/000101. Available at DG XXIV. See footnote 3 of COM(95)117, Report on the operation of Directive 87/102/EEC on the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit While the term 'Decision' is used in Article 1a5c, this is not a 'Decision' as defined by Article 189 of the Treaty but rather, since its objective would be to require Member States to change their in the Explanatory Memorandum which accompanies the proposal for a Directive. This is further explained laws, a Directive. 9 10 Chapter VI infra See Annex II of this document 9. Concerning the verbal definition of the "annual percentage rate of charge" (APR), some linguistic amendments are required to the English and Greek language versions of Article 1a(1)(a). Although following the transposition of the Directive by the Member States, 10. the elements included in the term are not totally identical, such identity would in fact be desirable for reasons of transparency. However, bearing in mind that much effort has been expended in communicating to consumers the meaning of the terms presently used in each Member State, it does not seem appropriate to propose a change in the wording used in the different languages. Nevertheless, it is desirable that a common feature be included in order to enable consumers, terms as being particularly equivalent to those in use in their own Member States. Following discussions with government experts, and in accordance with the principles of proportionality and subsidiarity, it is proposed that the use of a symbol in addition to the existing term will be required. This symbol will be identical in each Member State. This will not constitute a change in the language of the term and will only involve a small additional cost for transposition. in crossborder situations, to recognise these 11. As far as the mathematical formula is concerned, it has been confirmed that the formula in Directive 90/88 is the only correct formula and it is therefore recommended that it should be retained and made definitely general throughout the Member States of the European Community and the other members of the EEA. As regards the the elements of cost which should be 12. calculation of the annual percentage rate of charge, the transposition of the Directive has led to a situation where there is a harmonised minimum level of protection for all consumers throughout the European Community and the other their members of the EEA. As Member States report few problems with operation, and as any differences that do result are minimal in nature, it is not proposed to amend the list of exemptions in Article 1a(2) at this time. included in 13. Accordingly, a draft Directive is proposed at the same time as this Report, dealing with the following amendments to Directive 90/88: the requirement to use, in addition to the term "annual percentage rate of charge", a common logo (symbol) which will be identical in each Member State the deletion of Article 1a(5) in order to remove the transitional measure and this Report and associated to the legislative proposal the deletion of Article 1a(3) as this measure has not been availed of by any Member State11 references 11 No objections were received from Member States to this proposal at the meeting in April 1995 (paragraph 6 supra) or since. the insertion in Annex II of the Directive of a requirement to use accuracy to two decimal places - and any associated amendment to Annex III the insertion in Annex II of the Directive of a requirement to use a 365 or 366 day year - and any associated amendment to Annex III linguistic changes to the English and Greek language versions of the Directive at Article 1a(1)(a) 14. As regards other substantive elements of Directive 90/88/EEC, any proposals for amendments in this regard would be considered together with possible proposals following the outcome of the consultation on the Report on the operation of Directive 87/10212. 12 Footnote 1 supra II The mathematical formula in Directive 90/88/EEC 15. Directive 90/88 introduced a common method for the calculation of the "annual percentage rate of charge" into the requirement of price disclosure in consumer credit already contained in Directive 87/102/EEC. The intention was that the annual percentage rate of charge should add a commonly defined and acknowledged element of price disclosure to consumer credit, making its price comparable throughout the EC as well as between different forms of consumer credit. The Directive defined the mathematical procedure for calculating the 16. annual percentage rate of charge as well as the elements of cost to be included in the calculation13. In addition, several assumptions were made for certain forms of consumer credit e. g. open-ended credit that does not provide all the information necessary to calculate the annual percentage rate of charge at the time of conclusion of the contract. The verbal definition of the "annual percentage rate of charge" is as 17. follows: "the total cost of the credit to the consumer, expressed as an annual in percentage, of accordance with Article 1a"u the amount of the credit granted and calculated and "which shall be that equivalent, on an annual basis, to the present value of all commitments (loans, repayments and charges), future or existing, agreed by in accordance with the mathematical formula set out in Annex //"15 the borrower, shall be calculated the creditor and 18. This verbal definition is expressed in a mathematical definition found at Annex II of the Directive. The Annex clarifies, in mathematical terms, those obligations which shall be made equal in their present values through the annual percentage rate of charge. 19. All the mathematical formulae currently in use in the European Community and the other members of the EEA for the calculation of the annual percentage rate of charge are basically derived from the same principles of interest calculation16. National deviations which lead to different forms of and results from the formulae applied do not derive from mathematical origins 13 14 15 16 Chapter IV infra Article 1. 2(e) of Directive 87/102 (as amended by Directive 90/88) Article 1a(1)(a) of Directive 87/102 (as modified by Directive 90/88) Annex III of this Report but rather from differences in the assumptions applied to the calculations in certain Member States. Were these assumptions identical, so too would be the results. 20. At this point an explanation is necessary, in simple mathematical terms, of the operation of the mathematical rules, both in order to understand the rules themselves and, more importantly, the other forms of calculation (the German, French and Finnish17 methods) which lead to different results as a result of differences in basic assumptions. 1. Simple interest rate calculation 21. The price of a credit is defined by the combination of three factors: the capital borrowed the charges or costs applied the time in which a capital can be used by the borrower (AK) (CK) (tK) 22. The interest rate (i) is therefore expressed by the equation: Charges (CK) i = Capital (AK) * Time (tK) 23. Using the convention that interest rates are expressed in relation to 100 currency units (%) and for a time period of one year (p. a. ), the equation reads as follows: i %p. a. = Charges (CK) * 100 * 1 year Capital (AK)* Time (tKjnyears) 24. If time is calculated in months, then "1 year" in the upper part of the formula must be replaced by "12 months". Therefore 130. 66 ECU for a loan of 1,000 ECU for one year amounts to an interest rate of 1 3 0 , 6 6 * 1 0 0 / 1 , 0 0 0 *1 = 13. 066 % p. a. 17 Finland has availed of Article 1a5a to retain a formula different to that in the Directive. Once a single formula is confirmed for use throughout the EC, it is prepared - according to declarations from Government representatives - to adopt this formula - the derogation is not for reasons of principle but to avoid having to enact two possibly different laws in a short space of time. Finnish legislation does require the disclosure of APR. 2. Yearly Compounded Interest 25. In the simple formula (cost divided by capital and time) no compounding is foreseen. While banks always receive their interest by the end of the credit contract period, a bank which receives interest payments before the end of this period can reinvest this money and thus earn additional interest. In this way, the real charges in the example given would be not only the 200 ECU after 18 months but also the additional 13. 333% on 130. 66 ECU (reduced by the amount that early payment would cost the borrower). Thus the simple interest rate does not match the real cost but produces a 26. higher amount of charges than the consumer has consented to. In other words, the annual percentage rate of charge of different consumer credit contracts are not comparable if the period during which interest is compounded is not also equal. 27. Taking the first example from Annex III of the Directive, where the lifetime of such a loan is not exactly 1 year but rather 18 months, with charges of 200 ECU, the traditional simple formula would produce the following result: 200* 100* 12 1. 000* 18 = 13. 333 % p. a. The example given in the Annex, however, states that the result should be 28. 13. 066 % p. a. The reason for this difference lies in the fact that credit contracts for different time periods are incomparable without a uniform decision about what to do with the interest earned after a certain time period. To use financial interest should be mathematics "compounded". the question is at which terms, time The definition of an interest rate with reference to 1 year therefore means 29. not only that all interest rates are expressed as "p. a. " (which means that the lifetime interest rate of a credit is divided by the number of months and multiplied by 12) but that the compounding period for the credit should be uniformly 1 year. The formula given in Directive 90/88 and in use in the majority of Member States (henceforth referred to as the EC formula) fulfils this condition. The French method of calculation does not recognize this condition at all, thus giving rise to The arbitrary compounding periods which in practice amount to 1 month. German "Rule of 360" accepts a compounding period of 1 year, in principle, but deviates from it in every case where interest has to be calculated for less than a year, especially if the lifetime of the credit does not amount to exactly 1 or more The reason is that calculating interest rates with a compounding full years. period of 1 year is not possible with the simple formula given above. 30. Criticisms have been voiced about the complexity of the EC formula and In this context, it should be noted that the the need for technical expertise. simple formula can only be used for a period during which the capital borrowed In the case of credit with monthly repayments, the accurate remains constant. require an calculation of approximation of many different calculations which, although simple in themselves, would need to be reiterated so many times that technical assistance would also be required. the annual percentage rate of charge would As will be shown below, the EC formula which is at present successfully 31. used in the large majority of Member States, is merely the more developed form of earlier formulae (in order to take more variables into account) and is more convenient and accurate to use than the other methods presently in use. 3. The 1 year compounding period: 32. As the compounding of interest is an integral part of the calculation of interest, one must already "know" the interest rate in order to use the simple formula (to calculate that interest rate) since the first year's interest must be added to the capital which will bear interest in the subsequent period (e. g. in our example, in the remaining six months in a credit of 18 months duration). The interest rate can no longer be directly calculated but is calculated as a growth rate (i) of the original capital. 33. An interest rate of 13. 066% thus increases by (1 + i ) of the original capital (1 +0. 13066) = 1. 13066 1,000 ECU amounts to 1,000 * (1 + 0. 13066) = 1,130. 66 ECU after one year. 34. This is also referred to as the "future value" of a capital as it describes the growth rate after a certain time period has passed. The amount can also be considered in terms of "growth" rather than "interest", as the growth can easily be Interest is the difference between the original capital and its future calculated. value after this growth. In the case of a credit which is repaid in total after two years, the same 35. result is achieved with the EC formula or the French or German formulae. The German and the French methods apply the simple formula in two steps: Year 1 Year 2 Capital, Capital2 = = Capital + (Capital * i) Capital + (Capital * i) + [Capital + (Capital * i)] * i Using the above example, another 0. 13066 * 1,130. 66 ECU = 147. 73 ECU for the interest of the second year should be added to the 1,130. 66 ECU, producing a result of 1,278. 39 ECU. The EC formula, on the other hand, merely simplifies the equations in a 36. still familiar way using simple algebra: Capital, Capital2 = (1 + i) * Capital = (1 + i) * (1 + i) * Capital = (1 + i)2 * Capital This simple form is directly calculable with calculators or computers using the In our example, (1 + 0. 13066)2 * 1. 000 exponential form of the same formula. ECU = 1,278. 39 ECU. In the same way, after three years, the formula would be (1 + i)3 * capital and after t years, capital, = capital * (1 + i)'. Thus the same result is achieved by the different formulae, though in a 37. simpler way using the EC formula. However, this simplicity is not the main advantage - the formula can also be applied to fractions of a year because "t" expressed in years should properly be expressed as "t/1" which means that t supposes a compounding period of 1 year. If we express "t" in terms of months then "t" would be written as "tmonth/12". 38. A capital of 1. 000 ECU for 6 months lent out at a rate of 12% p. a. would grow to capital6 = 1-000 * (1 + 0,12)6/12 = 1,000 * 1,121/2 = 1,058. 30052 ECU In the same way, instead of 6/12, this could be expressed as 182/365 days capital182 = 1,000 * (1 + fj,12)182/365 = 1,000 * 1,12182/365 = 1,058. 13624 18 39. An interest rate of 12% p. a. earns 58 ECU interest in a six month period if interest is compounded annually. While 58 ECU is less than half the interest the bank would have earned after 1 year, because this interest is being paid out earlier than foreseen in the compounding period, the bank can invest these 58 ECU for 12% for the remaining six months, with a future value of 2 ECU, thus matching if compounding occured at the end of the compounding period (1 year). This result cannot be achieved with the older methods of calculation still in use in France and Germany. that would have been reached the 60 ECU for six months 40. Using the German method, an interest rate of 12% p. a. on a capital of If fractions of a year are 1. 000 ECU would yield exactly 60 ECU for six months. involved, the simple form either fails to produce a result or does so by deviating from the underlying compounding period of 1 year e. g. by reducing it to 6 months, in this case. Instead of p. a. , it would be more accurate to describe it as 6% per half year. 18 The resu't is slightly different because a 365 day year does not divide evenly 9 41. In fact, the French method states that a rate of 6% for a half year may be multiplied by 2 to reach the annual percentage rate of charge. The compounding period in France is therefore regarded as unimportant and can be arbitrarily convened through the repayment periods (which in the case of consumer credit are normally monthly). The French method therefore usually uses a monthly compounding period. In Germany, on the other hand, the annual compounding period 42. is prescribed as a rule. However, in order to avoid exponential calculation, it deviates from this rule for the last year of the life of a credit if this year does not amount to exactly 12 months. Consumer credit contracts with a lifespan of less than a year are therefore equally misrepresented in the German and the French calculations of the annual percentage rate of charge. The results differ from each other significantly if the life-span is more than a year19. 43. Given the express intention in Directive 90/88/EEC that a single formula for the calculation of the annual percentage rate of charge should be used in order to facilitate the comparison between credit offers from different countries, the conditions of calculation must be uniform. One of the most basic conditions is that each annual percentage rate of charge should be calculated on the basis of the same compounding period of 1 year. 44. Only the mathematical formula in Directive 90/88, in use in the majority of Member States, this condition and produces comparable annual percentage rates of charge. follows 4. The EC formula 45. The simplest form20 of this mathematical formula is V =AK *(1+i)' where AK AK i t is the initial loan augmented with all charges and interest at the end of the credit's lifespan is the initial loan is the interest rate expressed p. a. (but not in percent) is the lifespan of this loan 46. It might have been closer to traditional legal understanding if the Directive had put emphasis on the total cost (C) of a credit instead of its 'present value', 19 Table at paragraph 86 infra 20 This form does not, in practice, fully take into account all elements of a transaction 10 although the mathematical meaning would have been the same, using total cost C would then have been: The formula Extended Capital + Total Cost Extended Capital multiplied by growth rate in the time period the AK + C AK *(1+i)t 47. The annual percentage rate of charge is the factor which represents the growth of an initial capital, taking into account all charges for a given time period with annual interest compounding expressed as a percent per annum. The calculation is based on real time, with daily precision where loans, repayments and charges are debited or credited to the debtor. For the sake of accuracy, therefore, the results should be expressed to an accuracy of 2 decimal places and the year shall be expressed as having 365 days21. a) Present Value The present value of all repayments and charges in consumer credit is 48. normally the initial loan. This means that if all charges expressed by the growth- rate are subtracted, the principal (the original capital) will remain. For most normal calculations, as expressed in the examples of Annex III of Directive 90/88, the above formula would be sufficient. But where there are deviations in practice e. g. with a loan being paid out later than the date of the contract (or more precisely the date on which interest is calculated), the amount of the loan would already include interest. The amount of the loan would therefore have to be used in the calculation with its present value. The EC formula therefore takes into account the present value of a loan in the following form: AK ( l + i )c A K ( l + i ) *- If the loan is paid out at the beginning of the calculation, t is 0 b) Summing up different calculations: the E symbol 49. Most consumer credit contracts do not take the simple form of a once off repayment at the end of their lifespans but are paid back in instalments. 50. As the above mentioned formula (and the simple formulae in use in France and Germany) presupposes a constant interest bearing capital for "t", 21 Table at Paragraph 125 infra 11 each credit must be divided into as many credit transactions as changes occur in the interest bearing capital. Therefore the annual percentage rate of charge is only correct if it is used 51. equally in all individual calculations and if the sum of all present values ( £ ) is equal to the sum of the present values of the loans or if the growth of the loan expressed as one single growth rate is equal to all the charges and costs incurred, whether in the present or in the future. This is the formula used in the Directive, employing the z symbol to 52. is also the indicate that a sum is to be made out of multiple calculations. It formula used in all Member States of the European Community and other members of the EEA with the exception of Germany, France and Finland. 12 Ill 1. a) The calculation of the annual percentage rate of charge in the EC and other members of the EEA General Observations Interest and the annual percentage rate of charge 53. Creditors calculate the price of credit in numerous ways and under many different names22. Although there are some general guidelines concerning the way in which charges for consumer credit are calculated, the definitions are far from uniform. Usually, creditors distinguish between "once-off costs" (one time only costs) such as fees and charges, and "interest" (variable or time costs that comprise all those charges which increase over the duration of the credit). Some banks put more emphasis on the (nominal) interest rate, others on fees. The method of distinguishing between fees and interest, and the methods of interest calculation differ not only between countries but also from one creditor to another. Sometimes this is due to the internal cost benefit calculation of a bank, institutions or the fact that the creditor must share the profits with other (brokerage fees, insurance premiums), or to facilitate the individual calculation of the cost of the credit by third parties (intermediaries or brokers). 54. National law usually assumes that creditors are free to choose any appropriate and non-arbitrary method to define the cost of a particular credit. The only requirements are transparency and completeness in the list of charges. In some countries, there is an exception to the arbitrariness of the definition of the nominal interest rate, in connection with the requirements of Article 8 of Directive 87/102 (early repayment). This article requires national rules for the calculation of an equitable reduction in the cost of the credit. Some countries fix percentages of the total cost to be refunded23 while others state that the rebate should concern only "time costs" which are expressed by the nominal interest The situation varies from State to State25, as does the definition of rate24. 22 23 24 25 A 1984 survey revealed that the term "interest" was used in 13 different ways in Germany internal It should be noted that this arbitrary use of terms only concerns alone. calculations, not the legally prescribed disclosure of the APR. In France, this is three times the contracted amount for the next payment, and then reverts. Décret 90-979 of 31. 10. 90 (Article L311-29) The notion of "interest" in the rules on price disclosure must be distinguished from "interest" as used in restrictive rules on the refund of time-connected charges (e. g. anatocism or "interest on interest"), where courts do not interfere directly with the definition of nominal interest in the contract but rather recalculate the part of the cost for rebate by using their own definition of interest. In Germany the Supreme Court has held that a "disagio" was to be considered not as a once-off fee but as hidden interest and therefore to be partially refunded in the event of early repayment. Bundesgerichtshof, 16. 11. 93, XI ZR 30/93 13 "equitable". The rule usually used for such calculations is the "Rule of 78"26 which in small credit transactions. is inaccurate, but acceptable is generally agreed it 55. The Directive did not interfere with the methods of calculation of early repayment already in use or with the definitions of interest used internally in contracts. As far as interest was concerned, the Directive aimed to harmonise the notion of interest as it is used in the "interest rate" for price disclosure, i. e. to state a uniform requirement to disclose the result of this cost calculation in a Community-wide comparable credit price - the annual percentage rate of charge. 56. In this respect all Member States are in agreement - no State leaves it to the discretion of the contractors to define the method of calculation of the annual percentage rate of charge or the elements to be included although, as we have seen, France and Germany have left some arbitrary elements insofar as creditors may influence the annual percentage rate of charge by choosing special life spans for their credit contracts. 57. The form of the regulation varies. Most countries do not simply transcribe the verbal form of the calculation into their law but leave its mathematical definition to administrative bodies. b) Verbal Definitions of the annual percentage rate of charge 58. Directive 90/88 defines the annual percentage rate of charge directly by the method of its calculation, while Directive 87/10227 presupposed a definition. National legislation distinguishes between the definition of the annual percentage rate of charge and the method of its calculation, using the traditional relationship between time, cost and capital expressed on an annual basis in percent as the most important element of definition followed by the method of its calculation28. 26 27 28 Accurately defined in Section 2. 510 of the US Consumer Credit Code Regulation Z In §226. 8(b)(7), the "Rule of 78" takes its name from the sum of the digits 1 through 12. the first month, the creditor earns 12/78ths of the agreed interest. After 2 months, the creditor has earned 23/78ths i. e. the first 12/78th plus 11/78ths. The formula wherein the time periods are expressed as months defines those parts of the total interest earned which must be refunded as follows: frest of lifetime in months + 1)*rest of lifetime] * total interest (lifetime in months + 1 )*lifetime in months For commentary, see German Bundesgerichtshof Neue Juristische Wochenschrift 1979 p. 542. Article 1. 2e of Directive 87/102, amended by Directive 90/88 Annex II of this Report contains a list of and brief analysis of national transposing legislation 14 ° Denmark29 requires the statement of the "annual costs in percent" 0 Germany30 defines the "initial effective interest rate" as "the total amount of charges expressed as an annual percent rate of the net capital or cash price" ° Spain31 defines the "annual equivalent rate" as the total cost of credit expressed as an annual percentage of the capital lent" 0 France defines the rate as the "global effective rate" ° Ireland32 defines the rate as the total cost of credit expressed in an annual percentage of the amount of credit given. " ° The Italian33 and Portuguese34 laws use a similar definition 0 The Netherlands35 defines an "effective credit remuneration percentage on a year-basis as the reward for the credit according to the agreement, expressed as a percentage for a year of the open balance" 0 Sweden36 defines the "effective interest" as "the credit cost to the consumer, expressed as an annual rate in percent of the amount of the credit granted, where the instalment payments made during the life span of the loan have been appropriately taken into account. " Similar definitions can be found in the other Member States. The UK37 is 59. the only State to refer to the compounding period: "The annual percentage rate of charge is a rate per annum compounding annually expressed as a percentage such that a) the sum of present values as at the relevant date of all repayments of credit and the total charge for credit; and b) the sum of present values as at the relevant date of all credit under the agreement would, when calculated at that rate be equal. " Austria combines both definitions in one article38 and defines the annual percentage rate of charge as the "decursive percentage rate for a full year which establishes numerical equality between the sum of the credit paid out and the sum of all payments. " and provides the explanation that "It expresses the total cost of credit in relation to the credit granted. " 29 Art. 9. 1. 4, 1990/398 Lov om kreditaftaler of 13. 6. 90 Art. 4 alinéa 2 of the Verbraucherkreditgesetz of 17. 12. 90 31 Art. 18 b of the Ley de crédito al consumo of 23. 03. 95 32 Consumer Credit Act 1995, s. 9 33 Art. 19 Legge Communitaria 142 of 19. 2. 92 34 Art 2, al (a) Decreto-Lei of 21. 09. 91 35 Art 1. 2 k Wet op het consumentenkrediet of 04. 07. 90 36 Art 2 Konsumentkreditlag 830 of 1992 37 Statutory Instrument on Consumer Credit Regulation 1980/51 Art. 9 al. 1 38 Title VIII, Art. 33 al. 4 of Bankwesengesetz 1993/532 15 2. The Application of the EC formula 60. With the exception of Germany, France and Finland, all the Member States of the European Community and the other members of the EEA have incorporated the EC formula into their national legislation. The majority of them (except the United Kingdom), did so in reaction to the Directive. 61. In some cases, the wording of Article 1a was used and the mathematical equation, in Annex II was copied, though sometimes the symbols were replaced by others (because it was felt that different symbols for repayments and loans would make literally to read). incorporated the mathematical formula of the Directive. This is the case for Denmark, Greece, Italy, Luxembourg, Portugal, Sweden and Iceland. Some countries have the formula easier 62. The remaining Member States either used other symbols, elaborated different examples or gave more verbal explanations in the construction of the formula but kept to the basic equation, using the "internal rate of return" or exponential growth: In Belgium39, the "balanced cash value equation" given in the Directive is restated using different symbols. An iteration procedure that can be used to solve the balanced cash value equation is described and this procedure is applied step by step to several examples In Spain40, the formula is developed in two steps and examples different to those in the Directive are given in the Annex In Ireland41, the conditions and applications of the formula are explained in words and, particularly, growth and cash value as well as the iteration procedure are explained. The Netherlands has developed "Rules on Effective Credit Yield"42 which elaborate on the mathematical procedures in some detail. The "effective credit remuneration percentage on a year-basis" is developed on the open The calculation of an open-ended credit is also balance of a credit. explained Similarly, Austria43 uses the EC formula with different symbols and also developed the "fictitious annual interest rate" for open end credit The UK has a vast body of rules regulating the general requirements of the Consumer Credit Act. The mathematical formula in the Directive 90/88 In addition, accuracy is also covered 39 40 41 42 43 Arrêté Royal 2311 of 04. 08. 92 (amended on 29. 04. 93 by 1381/1993) Article 18a Ley de crédito al consumo, 23. 03. 95 Consumer Credit Act 1995 Regeling effectief kredietvergoedingspercentage of 06. 11. 91 Title VIII Art. 33 al. 4 of the Bankwesengesetz 16 is restated44 and three examples are developed, demonstrating different degrees of sophistication in the mathematical procedure. In Norway45, "effective interest" is calculated with the same formula as in the Directive 3. The calculation of the annual percentage rate of charge in Germany and France As mentioned above, the difference between the mathematical formulae in 63. use the in Germany and France, and unwillingness of those countries to use exponential calculation. Mathematically, this in a situation whereby neither country can apply a 1 year compounding period for all circumstances. the EC formula lies basically results in a) The German Method 64. The German method calculates interest for 12 months and compounds it at the end of this time before restarting interest calculations for the next 12 months. If the last year does not have 12 months, interest is compounded earlier. Legally, this result is achieved through a complicated reference scheme. Article 4 of the Consumer Credit Act refers to Article 4 of the Price Disclosure Regulation which, for the purpose of interest calculation, refers to Art. 608 of the Civil Code. 65. However, Art. 608 makes no reference to "interest calculation" but deals only with the question of the time at which debtors must pay interest in the event that nothing has been agreed (in which case it establishes a rule that interest must be paid annually or, if a credit is repaid in less than 1 year, at the time of repayment). Art. 4 of the Price Disclosure Regulation applies this rule to interest calculation by citing this article as well as by using the description "cascade method" (Staffelmethode). 66. As we have seen above, the question of the time at which interest is paid and the time at which it is compounded are not linked to each other if the exponential form of the calculation is used. 44 Statutory Instrument 15 of 1980 The Consumer Credit (Total Charge for Credit) Regulations 1980 of 29. 01. 80, Art. 6 to 11 45 Forskrift til kredittkjopsloven of 15. 07. 86, N° 1616 17 67. In practice, the real source of the German method is a paper by the Bund- Lander-Kommission "Preisauszeichnung"46. Here the method is explained and a formula is given that uses exponential forms, though these are by definition more formula because simple calculations becomes complicated extremely complicated if expressed in correct mathematical terms. This method is known as the "360 day method" due to its additional assumption that a year has 360 days. the EC than The German formula poses a problem not only for comparisons with 68. products in other Member States but also within Germany. In particular, credit for periods of less than a year deviates significantly if the annual percentage rate of charge is stated in the German form. 69. If a consumer has the choice between: 4 consecutive credit contracts, each of 3 months duration, with an annual percentage rate of charge of 12% p. a. each, or one credit contract of 1 year duration with an annual percentage rate of charge of 12. 5 % calculated according to the German "360 day method", producing 1,000 ECU net capital without additional costs, the consumer would have to pay 125 ECU in interest in the second case at the end of the year and 30 ECU every quarter in the first case. But if they had paid the interest in the first case at the end of the year (as in the second case), this would cost them an extra interest charge of: [(12% on 30 ECU for 9 month) + (12% on 30 ECU for 6 month) + (12% on 30 ECU for 3 month)] = 0. 12 * 30 * (9 + 6 + 3)/12 = 5. 40 ECU. 70. Aithough the German price disclosure regulation was correctly applied, the consumer would have made the wrong choice if they had chosen the "cheaper" credit. 12% p. a. in fact involves a surcharge of 5. 40 ECU or an "effective interest rate" of 12. 54%. 71. Thus in Germany, a consumer contracting for 42 months and another contracting for 48 months cannot properly compare their annual percentage rate of charge because the 48 months involves compounding periods of 1 year while the other uses 1 year for the first three years and 6 months for the rest of the life of the credit. The German method is not "correct" in a mathematical sense the rule of a 1 year compounding period is obviously not observed in because 46 An administrative body which lays down the surveillance principles for disclosure in price regulations. The reference for the formula is: Bund-Lander AuG. chull. es "Preisangaben" Bemeinsamen Amtsblatt des Landes Baden-Wurttemberg, seite 27, 05/02/93 all cases, and calculations that are based on different general assumptions and conditions are not equal47. The German system requires two different formulae for interest calculation: 72. the "Rule of 78" for rebates and the rule of 360 for price disclosure. In cases where it is necessary to calculate the present value, it also uses the EC method. The EC method would enable the calculation of rebates with the same formula48. 73. The main differences between the German and the EC methods are related to the time period. The most significant differences occur in short term credit covered by the annual percentage rate of charge disclosure requirements of the Directive. As the Directive partially excludes current account credit as well as credit which must be repaid in less than 3 months or with no more than four instalments and a life span of 12 months, the most striking cases are legally outside the scope of the Directive. However, the Directive does require the indication of an "annual rate of interest49" for such credit as well. 74. Although this rate is not covered by the requirements of the mathematical formula in Directive 90/88, many countries approach both annual interest rates in the same manner. The problem concerning short term credit of less than one year is therefore increasing. For instance, credit card credit in particular is the first form of crossborder consumer credit. But credit card credit, although expressly subject to the annual percentage rate of charge requirements, tends to be short term credit and may thus escape these prescriptions. The differences between the German and EC methods as regards 75. consumer credit for a period of more than one year are less significant. b) The French Method 76. The French method of calculation of the annual percentage rate of charge does not recognize the importance of a generally fixed compounding period. The 47 48 49 There have been some developments in recent years. The German Bundesgerichtshof has stated, in its decision of March 12, 1991 (XI ZR 190/90), that in case of early repayment of a mortgage loan a bank can only ask the. present value" of future interest as recompensation of lost profit. This present value is calculated according to the same rule as implied in the EC-formula and generally accepted by German banks. In addition, some banks now use the EC-formula for the rebate in consumer credit because the old "Rule of 78" is inapplicable in cases where instalments are not equal. At present, the use of the "Rule of 78" is necessary because the Rule of 360 cannot be applied to calculate a rebate rationally - no bank applies this rule. Article 6 of Directive 87/102 19 relevant Order50 permits the use of different periods and period rates e. g. of 1 month, 3 months, half a year etc, with interest compounded within each period. The only precision is that if irregular payments are made, only one period should be used for interest compounding. The period rate for one month is then transformed into an annual interest rate simply by multiplying it by 12. thus appear artificially more 77. This conversion is misleading because an annual rate is disclosed which is in fact not based on annual compounding periods but on invisible, mostly monthly, compounding periods. As shown below51, this leads, especially in consumer credit with monthly instalments, to very significant differences. French the consumer credit contracts consumer than in all the other Member States of the European Community and the other members of the EEA. While the German deviation is mathematically inconsistent and creates artificial difficulties in calculation but has modest effects on ordinary instalment credit (though these may be greater if once-off fees are important), the French method deviates so significantly that the French interest rates are misleading not only to other Europeans but also to French consumers who do not get a correct idea of the differences between credit prices e. g. between credits with monthly or quarterly instalments. favourable to 78. The reasoning behind the French method seems to be that in their view, the function of the annual percentage rate of charge should indicate the burden on the consumer, (although it seems to be accepted that the current EC formula is normally used among businessmen)52. is erroneous, a misunderstanding of the function of the annual percentage rate of charge. The annual percentage rate of charge does not indicate "the burden on the consumer" - consumers can evaluate the burden on their budget only if it is expressed in currency units because all their monthly income and expenditure is expressed in such currency units. In order to answer the consumer's question as to whether they should take a particular credit, the obligations set out in the Directive regarding the disclosure of instalments and the total cost, as well as the total amount of the debt, are crucial. Only commercial clients may use the annual percentage rate of charge as an indicator for the burden because they this is reasoning However, 50 Art. 1 of Décret relatif au calcul du taux effectif global, N° 1985/944 of 04. 09. 85 51 52 para 85 below. See also §381-1 of Gavalda and Stoufflet: Droit Bancaire (2nd ed) and §28 of Biardeaud: Guide Pratique pour le contrôle des crédits immobiliers. An example of this is the comment made by the Economic and Social Committee on the EC formula when initially proposed: OJ n° 337 of 31. 12. 88 p. 1-4 §3. 3. 1: "This formula allows for the continuous reinvestment of income as is normal among businessmen, in this case the crediting of yield from the reinvestment of repayments made by the borrower. In practice, this is how the lender, but not the consumer, assesses the value of the loan. For the consumer, the reinvestment of income in terms obtainable by the lender is deceptive. it is important to know the burden of the borrower. " 20 can compare it to their own profit rate or the interest rate which they earn with other capital. The annual percentage rate of charge thus answers the consumer's It is a means of comparison. In in Directive 90/88, which presupposes annual is the only way of 79. question as to which credit they should take. this the respect, compounding also comparing equally calculated products. formula in the case of monthly payments, 80. It should also be noted that financial developments mean that, for the consumer, the date of payment is also worth money because some credit card accounts even allow overpayment and pay interest on a positive balance. 81. The older argument, that the annual percentage rate of charge in France is identical with the usury rate and that this rate can not be changed because it would make credit usurious which had not been usurious before, no longer applies due to a change in the French method of regulating usury. c) Comparison of the EC formula and the German and French methods In the following table, a fixed instalment loan of 1,000 ECU with 120 ECU 82. interest for one year is calculated. In this table, the top rows show clearly that in all three cases the basic items needed to calculate an annual percentage rate of charge (cost, time and principal) are the same. 83. In the German method, interest is calculated every month but only compounded to the principal at the end of the year. Three different calculations are necessary: Each month 1. Capitaln = Capital,. , - Instalment; 2. Interest = Capital,* i/12 At the end of the Year 3. Capital12 = Capital12 + z [lnterestn ] In the French method, interest is calculated as in the German method, 84. but compounded monthly. Only one calculation is necessary each month: Each month Capitaln = Capital,. , - Instalment + Capital,. , * i/12) The EC formula only requires one calculation each month because it 85. calculates the capital growth: Each month Capital, = Capital^ *(1+i)1/12 21 The interest can be derived from the capital column by simply subtracting the different balances after instalments have been deducted: Each month Interest, = Capital,. , Capital, - Instalment 86. It can be seen that, in all three cases, different interest rates lead to the same amount of interest under the same conditions. While the German method comes quite close to the EC method, the French method deviates significantly. Loan (ECU) Instalment (ECU) Credit Cost (ECU) Life Span (months) APR GERMANY 1000. 00 93. 33 120. 00 12 24. 66% Month 1 2 3 4 5 6 7 8 9 10 11 12 Sum Capital 1000. 00 906. 67 813. 33 720. 00 626. 67 533. 33 440. 00 346. 67 253. 33 160. 00 66. 67 26. 67 0. 00 1120. 00 Interest 20. 55 18. 63 16. 71 14. 79 12. 88 10. 96 9. 04 7. 12 5. 21 3. 29 1. 37 0. 55 120. 00 - FRANCE 1000. 00 93. 33 120. 00 12 21. 46% Capital 1. 000,00 924. 55 847. 75 769. 57 690. 00 609. 00 526. 56 442. 64 357. 22 270. 28 181. 78 91. 69 0. 00 1120. 00 *Ë C-DIRECTIV 1000. 00 93. 33 120. 00 12 23. 70% Interest 17. 88 16. 53 15. 16 13. 76 12. 34 10. 89 9. 42 7. 91 6. 39 4. 83 3. 25 1. 64 120. 00 Capital 1000. 00 924. 55 847. 75 769. 57 690. 00 609. 00 526. 56 442. 64 357. 22 270. 28 181. 78 91. 69 0. 00 1120. 00 Interest 17. 88 16. 53 15. 16 13. 76 12. 34 10. 89 9. 42 7. 91 6. 39 4. 83 3. 25 1. 64 120. 00 87. In the following table, we have used different life spans for a credit of 1,000 ECU, assuming that the creditor would take 10 ECU interest for every month of the lifespan of the credit. (This would be a rate of 1% using the traditional method of nominal interest calculation, which is not an interest rate but a parameter for easier interest calculation). LifeSpan (months) Cost (ECU) 6 12 18 24 48 60 120 180 240 480 EC method French method 22. 29 23. 70 24. 00 23. 84 22. 86 20. 29 21. 46 21. 65 21. 58 20. 75 German 360 day method 21. 49 24. 66 24. 27 24. 34 23. 09 22 88. It shows that the German deviation is quite significant for periods of less than a year. For longer periods, the difference between the German method and the EC method is quite small. However, the difference between the EC method and the French method is between 2 and 3%. The crossborder implications of this are already being felt in certain areas53. 89. In any event, there is no direct relationship between the interest rates which would enable a consumer to simply add 2 or 3% to the French (or subtract 0. 2% from the German method) because the size of the difference depends on the life span as well as the up-front fees and the interest rate. 4. Arguments in favour of the EC formula 90. If the annual percentage rate of charge is seen as a main factor in choosing between different products, the EC formula is mathematically the only way to guarantee that the price represents equal conditions. All the regulations concerning the costs to be considered in the annual percentage rate of charge calculation are meaningless if the mathematical procedure of their inclusion is not homogeneously defined. 91. The annual percentage rate of charge is the only form of a credit price that can help consumers to shop across the borders in the Single European Market. It will simplify the legal framework for consumer credit and make national transposition measures more consistent, as well as providing a proper framework for possible future legislative action at Community level as well. As the some countries also apply differences between mortgage loans and consumer credit are vanishing (second mortgages are used for consumption purposes while the last 20% of an uncovered loan for a home is often given in the form of consumer instalment credit), it would be important, in case of harmonisation in this area, that there would be a unified system of annual percentage rate of charge calculation from the outset. As credit card credit will be the first form of consumer credit to be offered across borders, and the use of credit cards linked to special instalment open-ended credit offers increasingly exponentially, a uniform price disclosure system might also be needed in this context. to mortgage loans, and legislation this is 92. The potential cost of adapting banks' computer programs and price structures to handle the EC formula in those countries that do not presently use the formula is not a striking argument. The banking sector in the other Member States have already made this investment in order to adapt to their national legislation as it was transposed. In addition, banks in France and Germany frequently adjust their programmes to take account of case law and 53 German banks already offer consumer credit in Alsace, while Credit Lyonnais, having purchased a German bank (BfG), are beginning operations in Germany. Complaints have already been received from French consumers who have been misled by a mortgage loan linked to a capital life insurance, the true APR of which, as well as the dangers, had not been made clear by the German bank 23 administrative rulings on the subject e. g. for the calculation of rebates in the event of early repayment of consumer credit and mortgage loans; for the calculation of damages in the event of early repayment. In addition, some of the calculations are already done using the mathematically correct form. 93. Programming will also be easier using the simpler EC method. Only the EC formula offers consumers the possibility of directly calculating the increase of a capital over a period of years. Its simplicity (1000 ECU for 98 years at an interest rate of 9. 6% will yield to (1 + 0. 096)98 * 1000 = 7,969,559. 30 ECU) is striking and merely requires the use of a home computer or even a pocket calculator. 24 IV. Elements of cost to be included in the calculation a) Elements of Cost The Directive requires that all credit costs must be included in the annual. The "total cost of credit to the 94. percentage rate of charge calculation. consumer" means: all the costs, including interest and other charges, which the consumer has to pay for the credit. The mathematical formula requires that the difference between the 95. present and future value of the capital borrowed should include all the elements of cost to be included in the calculation i. e. not only the nominal interest but all other charges which can be attributed to the credit as such and not to other separate services of special value to the consumer. 96. With the exception of insurance fees, the Directive uses the indirect method, allowing the omission of five types of costs which are supposed to be "credit costs". Art 1a(2) allows the following charges to be excluded from the calculation of the "total cost of credit to the consumer: i) ii) iii) iv) than the purchase price) payable charges payable by the borrower for default charges (other whether the transaction is by cash or credit charges for accounts, transfers. (except where the consumer does not have reasonable choice or such charges are abnormally high) membership subscriptions regardless b) Situation in the Member States 97. As the number of items which could be considered as elements of cost to be included in the calculation is, theoretically speaking, unlimited, most countries simply repeat the exemptions in Article 1a(2), definitely excluding those items from the annual percentage rate of charge calculation, regardless Thus the regulations in of how closely they are related to the credit. Denmark, Greece, Ireland, Italy, Luxembourg, Portugal and Norway follow closely the wording of Article 1a(2) of the Directive, with practical application generally left to case law. 25 Art 1a2 B DK D EL ES F IR IT L NL 0 PT SF SV UK IS LI N i ii iii iv V Comments / / / / / • / / / / / / / / / / / / — / — — S / / / / / / / / / / / / / / * / / / / / / / / / / / * / / * — / — / / / / * * / / * / / / * * / * * * * / / Open list of charges to be included. For insurance, the criteria is whether a reasonable choice is given Insurance which does not secure repayment is exempt, whether mandatory or not All charges are included in the rate, including mandatory insurance charges (but non-mandatory ones are not listed as exempted) All charges are included in the rate. Jurisprudence has resulted in some changes. If the range of services provided is wider than credit, membership fees are not included. If credit is the main activity, the fee is included If account fees. , or insurance fees are obligatory, they must be included. There are no membership fees. All charges except those for non-mandatory insurance are included The Act exempts no costs (including insurance). All mandatory costs are included. All costs, including non-mandatory insurance, are included / * = = = Corresponds to Directive 90/88 i. e. these charges are specifically excluded from the calculation of the Global Annual Effective Rate Goes further than the Directive - there is no specific exemption for these items - but they may in practice be excluded See individual comments and relevant paragraphs below 98. the Directive54. In Denmark, the costs to be included are more comprehensive than in In Belgium there is a positive list of those elements of cost to 54 Article 13 of the 1990 Credit Agreement Act defines the total price of credit as the sum of all charges with the exception of certain charges (corresponding to those in the Directive, but more restricted). Charges are divided into three types: those to be included in the 26 be included in the calculation which must be included55 as well as a list similar to the exemptions in the Directive (although provided the consumer has a reasonable choice, neither the costs of a credit card which are not connected Italy and Luxembourg also have with credit nor insurance costs are included). an open list of charges to be included in the calculation, though the list of exemptions is closed. Member States, in practice, arrive at lists similar to that of Belgium through their reference to the term "credit cost" which includes items like brokerage fees, up-front fees, disagios. which must be included in the annual percentage rate of charge calculation. The situation in other Member States differs slightly - Spain, France, 99. Finland, Sweden and the UK are tacit on the subject of the list in Article 1a(2). This does not necessarily mean that they deviate from the practical method of annual percentage rate of charge calculation, because they assume that the general definition of the elements of cost to be included in the calculation already leads, in principle, to the exclusion of certain of the items concerned (fees for late payments, fees for bank accounts, membership fees and special cash price fees). These States do, however, make an important distinction in that they generally exclude only those elements of cost to be included in the calculation which are not mandatory - while the majority of States exclude the items listed in Article 1a2, these States apply a test of how the fees have entered into the contract. They therefore apply the distinction in Article 1a2(v) concerning insurance fees to all other charges. 100. The Spanish legislation requires all charges to be included in the calculation, including mandatory insurance charges. Non-mandatory insurance is not mentioned as specifically exempt from inclusion. The elements of cost to be included in or excluded from the calculation are not listed, except as regards insurance premiums and default fees56. 101. In France, Article L. 313. 1 of the Consumer Code states that the calculation must reflect all interest and other charges, commissions and remunerations of any kind, direct or indirect. e. g. including payments to intermediaries. The Comité Consultatif of the Comité Usagers of the Conseil annual percentage rate of charge but not necessarily mentioned individually (e. g. charges by the creditor or third parties); those to be listed but not included in the annual percentage rate of charge (membership fees. ) and those to be neither listed nor included (cheque fees, transaction fees unless the method is compulsory. ) 55 Article 2. 1 of the Arrête Royal 1381 of 4. 8. 1992 contains an open list of charges which should be included in the "taux annuel effectif global". These include charges for: inquiries, advertising, the creation of a file, inquiries at a credit register, administration of the file, accounting and collection, intermediaries, credit insurance, guarantees and other personal securities, and anything else the creditor requires for the credit. 56 Article 6. 2c of the 1995 Consumer Credit Act states that debt insurance, if required by the It also exempts from the calculation charges lender, must be indicated in the total cost. in the event of default 27 N a t i o n a l - du Crédit, in a Report, produced a detailed t h o u gh the list d o es not appear to be binding in nature: list of such charges5 7, Charge included establishment and administrative costs costs for securities and warranties guaranteeing a bill of exchange notary costs stamp duty compulsory death insurance premiums overdraft charges fee for keeping money available fee for confirmation account statement fees59 fees for endorsements Charge not included book-keeping fees fees for not using a credit granted58 service charges postage non-compulsory death insurance premiums Case law and administrative precedent have included certain elements in the calculation e. g. account fees and insurance premiums. Companies in France are prohibited from selling both credit and insurance, and mandatory insurance is not required for consumer credit but rather for mortgages. 102. Credit costs in Finland are defined as "the total amount of interest, costs and other payments that the consumer shall pay on the basis of the consumer credit relationship. No list of items to be included or excluded is provided. Since 1993, insurance premiums are excluded and must be listed separately. 103. Credit costs in Sweden are defined as the total sum of all cost elements (interest, additional costs and other charges). In theory, there are no exemptions - all elements of cost to be included in the calculation must be included in the In practice, the exemptions in the Directive are annual percentage rate of charge. used. If credit Insurance charges, however, are not mentioned in the regulations. is combined with insurance, or if a separate insurance is mandatory, these costs Charges to third parties, which arise in connection with must be included. mortgages (which are within the scope of the Act) are not mentioned. 104. The UK also defines the total charge as the interest and other charges at The exemptions60 are much more any time payable under the transaction. 57 58 59 60 Report on the Reform of Usury Legislation, December 1992. The list is described as 'being given "under the reservation of the sovereign appreciation by the courts" Listed under different names as a cost to be included (commission d'immobilisation, commission d'engagement sur autorisation, commission de confirmation) and under two names as a cost to be excluded (commission de nonutilisation, commission d'attente). Though there also appears to be an obligation to provide these free of charge Defined in Article 5 of the Statutory Instrument The Consumer Credit (Total Charge for Credit) Regulations 1985 28 than in the Directive - there is differentiation between different forms and detailed All premiums for life insurance are exempted61. purposes of credit. Initial fees (e. g. for administration costs) are common in UK consumer credit, and may be Rest debt insurance (against either added to the balance or paid up front. accident, sickness or unemployment) the instalments during that period of illness or unemployment and may be of limited duration. Life insurance cover is often required for larger loans. is common but usually only covers 105. As regards the remaining Member States, an initial administration fee is usually required for consumer credit in Germany, but some banks claim to use no other ancillary charges (periodic fees, statement fees. ). Germany uses the same exemptions as in the Directive. Rest debt insurance is offered, but is usually not mandatory for consumer credit. Where it does apply, it is usually paid as a lumpsum in advance, and the costs must be listed separately. Insurance which does not secure repayment is excluded from the calculation, whether mandatory or not. 106. The Austrian regulation defines the cost elements to be excluded from the calculation; These exceptions differ from those in the Directive in that Austria does not mention charges other than the purchase price which must be paid regardless whether the transaction is by cash or credit, or membership fees. These does not necessarily mean that these are to be considered as interest, as they could be considered as part of the purchase price. Nor do charges required by the State have to be included. Customers must also pay for their annual bank statements. 107. In the Netherlands, only direct credit charges (including mandatory rest debt insurance), fees in case of default and compensation in the event of premature repayment are permitted to be included in the calculation62. No other charges are permitted If for consumer credit, either as initial charges or periodic services connected with the credit (e. g. death, unemployment, invalidity and other insurance) are offered, the charges must be included in the annual percentage rate of charge, may not be counted as separate payments, and must not surpass in the order on Credit Remuneration63. Rest debt the maximum rates insurance is not allowed. insurance with consumer credit is common, but compulsory listed fees. 108. In Iceland, the total cost of credit includes all interest and other charges to be paid by the consumer, with the exemptions listed in the Directive. Charges for the transfer of funds and for keeping an account (except collection charges) are 61 Statutory Instrument: The Consumer Credit (Total Charge for Credit) (Amendment) Regulations 1985 62 Article 34 of the Consumer Credit Act prohibits all "rewards for the lender" other than these charges. 63 Besluit Kredietvergoeding, Stb. 1991/549 of 16. 10. 91 29 exempted only when the consumer has reasonable freedom of choice in the way funds are transferred or collected and the charges are not abnormally high. The inclusion of insurance costs is not restricted to compulsory insurance. 109. Unlike the exemptions listed in Article 1a(2)(i)-(iv), Article 1a(2)(v) of the Directive indicates the only positive item to be included in the calculation of annual percentage rate of charge. It exempts charges for insurance or guarantees from inclusion in the calculation, except death, invalidity, illness or unemployment insurance which are to be included in the calculation, as are other charges which have to be imposed by the creditor "as a condition for credit being granted". All countries have, in one way or another, referred to this in their legislation. Interpretations differ, however. Some countries assume that such insurance premiums are always mandatory and therefore regularly included, while others e. g. Germany repeat the text of the Directive literally but in practice assume that credit life insurance is never mandatory. This is because of their legal definition of the concept of "condition" whereby insurance is interpreted as being "imposed by the creditor as a condition for the credit being granted" only if the credit contract is legally linked to the insurance contract whereas in practice creditors offer two separate contracts which are only linked by the fact that the bank will only grant the credit if the insurance is also taken. In this respect, Belgian legislation takes the other view, asking whether a rational choice between a credit contract, with or In practice, this usually without such an insurance coverage, has been offered. lead to the inclusion of such premiums64. The UK appears to be the only country which expressly excludes life insurance premiums from the annual percentage rate of charge calculation even though such insurance is obligatory for credit contracts. 110. These differing interpretations of Art 1a(2)(v) can lead to differences in annual percentage rate of charge calculations for identical products in different Unlike the charges excluded by Article 1a(2)(i) to (iv), insurance countries. premiums are an important element of the burden of charges on a consumer (up to a quarter of the credit costs in some cases). It may be necessary to exclude distinctions which are easy to circumvent through simple formulations and the use of different formulae by creditors - while this would not eliminate situations where creditors refuse to grant credit without also selling insurance coverage, it would open the door to more competition for insurance premiums. This is necessary because the same life insurance purchased separately from a consumer credit Separate life insurance would also have the contract is usually lower in price. advantage that it could be used for subsequent credit contracts and other purposes without fees for age progression. Creditors should be persuaded to insurance coverage instead of disclose to consumers the possibility of separate overcharging for linked credit life insurance contracts. 64 Empirical surveys in Germany have finance revealed companies offering credit for low income consumers insure up to 98% of the credit contracts while savings banks showed a rate of less than 5%. Credit life insurance is therefore mostly an additional security income consumers and offers the bank additional "interest" because insurance companies pay up to 3. 5% as a brokerage fee to the bank instalment banks and required by the creditor from that low 30 111. At the meeting with governmental experts in April 1995 to discuss this subject65, the experts reported on the situation in their Member States with regard to the elements of cost to be included in the calculation included in their national legislation. Some experts explained the reasons why their Member States had gone further than the Directive, or that the intent of their legislation was the same even if the wording used differed, and some clarifications of certain aspects were given. Following the study by Professor Seckelmann, it was felt that Member States include almost the same elements in their calculations and that any differences that do exist are minimal in nature. The Commission does not therefore propose, at this stage, to amend the list of elements of cost to be included in or excluded from the calculation of annual percentage rate of charge. this meeting and the results of 65 Paragraph 6 supra 31 V. Other issues 112. While the Directive requires an evaluation and a report which ". will make it possible, in the light of experience, to apply a single Community mathematical formula. "66, this requires an examination of other issues than the mathematical formula alone, in order to define a uniform application of the formula67. 1. The Denomination of the annual percentage rate of charge 113. The Directive does not regulate the multitude of interest rates or parameters with which, according to the principle of freedom of contract, lenders define how they calculate the credit costs internally. The only legally defined parameter for credit cost is the annual percentage rate of charge, presupposing either a special form of disclosure68 or a homogeneous denomination. 114. The table below indicates that there are almost as many denominations as there are Member States. 66 67 Article 1a(5)(b) of Directive 87/102 While Article 14 of the Directive specifically mentions the "distribution of the amount of credit over several agreements", other circumventions occur. On several occasions, the German Bundesgerichtshof has ruled that the combination of capital life insurance and consumer credit can be transformed into one single credit with one single APR in order to find out whether it is usurious. Another circumvention is the combination of savings and credit where the consumer is required to save an amount equal to the sum of the credit in a special account (e. g. a whole life insurance account or even an instalment savings account). The credit is not reduced and only at the end are the savings used to repay the credit in one single instalment. Interest is due on the total amount of credit from the beginning to the end of the life span. The savings have earned much less interest than is to be paid on the credit, but the consumer has had to use the money for low-interest savings instead of repaying the high-interest credit. Such combinations can also be easily transformed into one credit relationship, with the EC formula applied to the total of In such cases, the true APR is normally all payments either on the credit or the savings. at least 1% higher than the disclosed APR. The problem posed by such combinations should be studied. 68 US legislation prescribes a special form sheet wherein the APR has to be disclosed in a defined area 32 Short form Denomination B DK D EL Taux d'intérêt effective/ Effektieve Rentevoet E. Rentefod E. Zinssatz and, less often, E. Zinsfuss 7T. €7rt TOK L O, P. Epitokio ES Tipo de interés E. IR IT Taux d'intérêt E. E. Interest Rate Tasso D'intéressé E. Taux D'intérêt E. NL E. Rentevoet O E. Zinssatz Taxa de Juro E. SF SV UK Todellinen vuosikorko / effectiv rànta Eff. ranta E. Interest Rate ISL none LI N E. Rente taux annuel effectif global/ jaarlijkse kostenpercentage arlige omkostninger i procent effektiver Jahreszins or anfânglicher effektiver Jahreszins r i KO TT pay[lot errjoLo CTTLTOKLO (EnE), etisio pragmatiko epitokio, (EPE) tasa anual équivalente + porcentaje anual de cargas financieras taux effectif global annual percentage rate of charge, (APR) tasso annuo effettivo globale, (TAEG) taux annuel effectif global effektief kredietvergoedingsperce ntage (op jaarbasis) (dekursiver) effektiver and fiktiver Jahres- zinssatz taxa anual de encargos efectiva global, (TAEG) todellinen vuosikorko / effectiv rànta effektiv rânta annual percentage rate, (APR) ârleg hlutfallstala kostnaôar Effektive Jahreszins effektiv rente English Translation global effective annual rate/ annual cost percentage annual costs in percent effective annual interest or initial effective annual interest annual effective interest rate annual equivalent rate + annual percentage of financial burden (tipo de interés E. ) global effective rate also annual percentage rate global effective annual rate global effective annual rate effective credit remuneration per centage (on the basis „year") (decursive) effective and fictitious annual interest rate global effective annual rate of burden effective annual interest effective interest also annual percentage rate of charges, (APRC) annual percentage rate of costs effective annual interest effective interest 33 115. The common elements are "Rate" The majority of Member States of the European Community and the other members of the EEA use the term "rate"69 "Annual" Except for France, Sweden and Norway70, other Member States use the term "annual". This is particularly important as France, for instance, still uses monthly or quarterly rates. "Effective" With the exception of Denmark, Spain, Ireland, the United Kingdom and This this Iceland, distinguishes between other interest rates used by lenders. the majority of the Member States use term. 116. As regards other terms found in some Member States, not all Member States include the concept of "interest" or "charge" in their term. Of those that do, Member States are fairly equally divided between those which refer to the result of the calculation (the interest rate)71 and those who prefer to refer to what it represents (the rate of charge)72. The inclusion of either term does not add significantly to the transparency of the term. 117. While some Member States do use the term "Percentage"73, it is so common as to be understood and the inclusion of the word does not add It should be noted, in any event, that the use of the significantly to transparency. term "percentage rate" is no substitute to providing accurate information to consumers. 118. Those elements which are most important for the transparency of the term are therefore those found in the Belgian, Greek, Italian, Luxembourg, Austrian and Portuguese terms i. e. "Rate", "Annual" and "Effective"74. 69 70 71 72 73 74 With the exception of Denmark, Germany, Netherlands, Finland, Sweden and Norway. However, it should be noted that Germany uses both the term "interest" and "interest rate" and the exclusion of the word "rate" seems to be language-specific. The Directive itself uses both terms and therefore those States which transcribed the Directive exactly should be considered as using the term "rate". In Norway, the term is, by its legal definition, an annual interest Denmark, Greece, Austria, Finland, Sweden, Norway Belgium, Spain, Ireland, Portugal, United Kingdom, Iceland Belgium, Denmark, Spain, Ireland, Netherlands, United Kingdom, Iceland The original 1979 Commission proposal used the terms "Effective Annual Rate of Interest", "Taux Annuel Effectif Global" and "Effektiver Jahreszins". While different terms, proposed by the European Parliament, were accepted in the 1983 Amended Proposal: "Annual Percentage Rate of Charge", "Taux annuel des frais" and "Jâhrlicher Belastungssatz", these later reverted to the original terms. By the time discussions reached the Council Working Group, the original French and German terms were again used, as also in the final version of the Directive. The term in the English language 34 "global". 119. An additional feature, found in the French language version of the Directive, and presently used by Belgium, France, Italy, Luxembourg, and Portugal is the word transparency and comprehension of the term for the average consumer as it indicates that the totality of the costs to be paid are contained in the annual percentage rate of charge This word adds considerably the to literal meaning, has led to problems 120. The fact that the wording used to translate the original term (taux annuel effectif global) differs from one Member State to another and is often different in its in practice because some of the denominations used in one country to denominate a certain "rate" are sometimes It would therefore used in other countries to denominate other, different "rates". be useful if some homogeneity and transparency could be achieved in order to assist in consumer comprehension. However, bearing in mind that much effort has been expended in communicating to consumers the meaning of the terms presently used in each Member State, it does not seem appropriate to propose a change in the wording used in the different languages. Nevertheless, it is desirable that a common feature be included in order to enable consumers, particularly in crossborder situations, to recognise these terms as being equivalent to those Following discussions with governmental experts it was felt that, rather than proposing that the different terms used in the different national legislation for "annual percentage rate of charge" be harmonised, and the principles of proportionality and subsidiarity, a common feature should be included in order to enable consumers to recognise these terms as being equivalent to the one in use in their own in Member State. accordance with the principles of proportionality and subsidiarity, it is proposed that the use of a symbol in addition to the existing term will be required. This symbol will be identical in each Member State. This will not constitute a change in the language of the term and will only involve a small additional cost for transposition. Following discussions with government experts, and in their own Member States. in accordance with in use 2. Accuracy 121. The Directive does not define the degree of accuracy required in the calculation of annual percentage rate of charge. The examples given in Annex III presuppose that Member States may prescribe an accuracy of one or two decimal places. It thus seems clear that the Directive demands at least accuracy to one decimal place. 122. Most countries in fact demand accuracy to one decimal place. This, however, can make consumer credit contracts for ECU 20,000 over 60 months look equivalent although they may actually differ in cost by about ECU 50 (5 * 0,0999 * 20,000/2 = 49. 99). As the scope of consumer credit legislation in many Member States covers much higher amounts and longer terms, the difference may In those Member States which include mortgage credit in the be up to ECU 500. version alternated between "effective annual rate of interest" and "annual percentage rate of charge" up until the final draft of the Directive. 35 scope of the Directive, the difference may amount to several thousand ECU. Such a discrepancy is not tolerable. 123. More accuracy should therefore be required for higher amounts of credit. At least two decimal places should be prescribed (though with the possibility of allowing one decimal place if one decimal represents costs of less than ECU 50). 3. Time definitions 124. Different definitions of time are in use in the Member States. The Directive that all calculations should be made with daily correctness implicitly states ((Remark b) of Annex II). It also states that intervals "shall be expressed in years or in fractions of a year"75. This assumes that a day, week or month can be expressed in a constant fraction of a year. APR rules Comments Practice of n o m i n al Interest 3 6 5 / 5 2 / 12 365 / 360 B DK — 365. 25 D 3 6 0/ 12 360 EL 3 6 5 / 5 2/ 12 *~ ES 3 6 5/ 12 365 F 365/ 12 •<~~ IR IT L NL O P SF SV UK ISL LI N 3 6 5 / 5 2/ 12 366 / 365 3 6 5/ 12 365/360/12 «- «- 366/365 <- 360 360/12 360/ 12 3 6 5 / 5 2/ 12 360 360/ 12 «- — <- «- «- — 12 months of different lengths Valuation is calculated for one day and converted to 365. 25 days (4 year average) 12 months of 30 days. 365 day year for certain transactions 12 months of equal lengths. 360 day years for loans, 365 for savings Valuation converted to 365 days Valuation is calculated for a period and converted to 365 days. 12 months of equal days. 12 months of equal lengths for one month and is calculated Each year equals the calendar year Actual months (28, 30, 31 days) 12 months of 30 days. 360 days for savings and consumer loans, 365 for commercial loans Each year equals the calendar year 12 months of 30 days 12 months of equal length 12 months of 30 days same as for nominal interest calculation 75 Remark c of Annex II 36 125. As can be seen from the above table, which indicates practice in different Member States, most countries for Germany, Austria, Sweden, (except Liechtenstein and Norway) have already introduced the correct calendar into their calculations. For default interest, German banks also use the 365 day year. For annual percentage rate of charge calculation, Denmark, Luxembourg and Spain prescribe 365 day years while Germany, Austria and Liechtenstein prescribe 360 day years. All other countries assume that the same year will be used as is used in nominal interest calculation. in the results achieved 126. The differences these variations are significant. For instance, a nominal interest rate of 18% p. a. for an open-ended credit used for one day gives an annual percentage rate of charge of 19. 422% p. a. if calculated at 360 days a year, and gives 19. 716% p. a. if calculated at 365 days a year76. through 127. There is no reason why calendar days should not be prescribed as the basis of a calculation while a year could generally be assumed to have 365 or 366 days (or 365. 25 days to take account of leap years, though the difference caused by the loss of one day every 4 years would not be significant enough to be noticed even with accuracy to two decimal places). Nor is there any need to compensate for a credit taken out in a shorter month. 128. Annex II should therefore be amended to state that a year is presumed to have 365 or 366 days. 76 The easiest way to do such calculations using computers is by using the calendar day because each computer has an inbuilt calendar. Calendar dates can be easily subtracted and the number of days defined. However, computers have extreme problems of definition when using the 360 day formula - a test of the relevant function in a popular spreadsheet program showed that their offer of a 360-day function is not correct because the sum of the days of 10 years differs by more than 10 days if calculated in one or in several intervals. A correct 360-day calculation is therefore impossible 37 VI. Conclusions and Recommendations 129. There is a list in Annex 2 of the national legislation which transposed the Directive in the Member States of the European Community and the other members of the EEA. 130. As regards the verbal definition of the annual percentage rate of charge, some amendments are required to the English and Greek language versions of the Directive. The proposed wording for the English version of Article 1a(1)(a) is as follows: The annual percentage rate of charge, which shall be that rate, on an annual basis, which equalises the present value of all commitments '(loans, repayments and charges), future or existing, agreed by the creditor and the borrower, shall be calculated in accordance with the mathematical formula set out in Annex II. and the proposed wording for the Greek version of Article 1a(1)(a) is as follows: irporyiioiTLKO TTOOOUTO eiufiôtpvvorjç -notpovoeç oi£îeç TOV avvôXov TTOV ettoûveL TWV Tp£xov&ûv viïoxpeûoeuv 0ivaXr]4>6e i airô TO ôave (àaveîwv, eÇocpXficeuv IOTT) non TO (ÔŒVe KOLTOLVOIXUITT), L nô TVTTO TTOV -notpoLTiB eTOii OTO KOLL eirifiotpvvoeuv) iÇô^ievo) ÇeTùtL oviiQuvot u. e TO uadrj^oiT oe T) TIOV erijoLO T IÇ (Sacq "To OVVOXLKO ETfjoLOi LieWovTLKÛV éxovv viroXoyt TTOipÔipTTJIKX I I ". 131. It is proposed to require the use of a symbol in addition to the term currently in use in each Member State for the "annual percentage rate of charge". This symbol will be identical in each Member State. 132. As far as the mathematical formula is concerned77, it is proposed, based on the arguments contained in this Report, that the formula in Directive 90/88 should be retained and made general throughout the European Community and the other members of the EEA. Article 1a(5) should therefore be removed from the Directive as it will no longer be necessary. 133. For the calculation, there should be a requirement of accuracy to two decimal places and a requirement to use a 365 or 366 day year. This will require amendment of the Annexes to the Directive. A correction would also have been necessary to the fourth example given in Annex III of the Directive to correct a 77 For the mathematical aspects, see Professor Seckelmann's Study of the method of calculation of APR in EEA states - Footnote 6 supra 38 miscalculation78 but this has been overtaken by the recalculation of the examples on the basis of accuracy to 2 decimal places and the use of a 365 or 366 day year. 134. Regarding the elements of cost to be included in the calculation, the transposition of the Directive by the Member States has led to a position where there is a harmonised minimum level of protection for all consumers throughout the European Community and the other members of the EEA in this respect. As Member States presently include almost the same elements in their calculation, and as any differences that do exist are minimal in nature, it is not proposed that the list of exemptions in Article 1a(2) should be amended at this time. In accordance with Article 1a(5)(b) of Directive 87/102, as amended by This will implement the 135. Directive 90/88, a draft Directive is being proposed. changes recommended above79. 136. As regards any other substantive elements of Directive 90/88/EEC, any proposals together with proposals for the amendment of the original Consumer Credit Directive 87/10280. in this regard would be considered for amendments 78 79 80 A mistake was made in this calculation. The result should be 13. 1855% according to spreadsheet calculation. This mistake in no way affects the correctness of the general formula, and the other examples are calculated correctly. It will also propose the deletion of Article 1a(3) of the Directive as this measure has not been availed of by any Member State. A Report on the operation of Directive 87/102 was published in May 1995 and the Commission is currently considering reactions to this Report. Any subsequent legislative proposal in this respect could include amendments to Directive 90/88. 39 (a) (b) (c) (d) (e) Annex I - Articles 1 and 1a of Directive 87/102 (as amended by Directive 90/88) Article 1 1. This Directive agreements. applies to credit 2. For the purposes of this Directive: accordance with the mathematical formula set out in Annex II. (b) Four examples of the method of calculation are given in Annex III, by way of illustration. 'consumer' means a natural person who, in transactions covered by this Directive, for purposes which can be is acting trade or as outside regarded profession ; his 2. For the purpose of calculating the annua! percentage rate of charge, the "total cost of the credit to the consumer" as defined in Article 1(2)(d) shall be determined, with the exception of the following charges: 'creditor' means a natural or legal person who grants credit in the course of his trade, business or profession, or a group of such persons ; 'credit agreement' means an agreement whereby a creditor grants or promises to grant to a consumer a credit in the form of a deferred payment, a loan or other similar financial accommodation. for Agreements the provision on a continuing basis of a service or a utility, where the consumer has the right to pay their for provision, by means of instalments, are not deemed to be credit agreements for the purpose of this Directive. the duration of them, for to 'total cost of credit the consumer' means all the costs, including interest and other charges, which the consumer has to pay for the credit. the credit total cost of 'annual percentage rate of charge' means the the consumer, expressed as an annual percentage of the amount of the credit granted and calculated in accordance with Article 1a. to Article 1a (a) be shall p r e s e nt rate of The annual percentage charge, which that equivalent, on an annual basis, to the commitments and charges), agreed by the creditor and borrower, shall be calculated all repayments (loans, future or existing, the in v a l ue of (i) charges payable by the borrower for non compliance with any of his commitments laid down in the credit agreement; (ii) charges other than the purchase price which, in purchases of goods or services, the consumer is obliged to pay whether the transaction is paid in cash or by credit; (iii) charges for receive towards payments funds and the transfer of charges for keeping an account intended to the reimbursement of the credit the payment interest and other charges except of the consumer does not have where reasonable the matter and where such charges are abnormally high; this provision shall not, however, apply to charges for collection of such payments, whether made in cash or otherwise; freedom of choice reimbursements or in (iv) membership subscriptions to associations or groups and arising from agreements separate from the credit agreement, even though such subscriptions have an effect on the credit terms; (v) charges for insurance or guarantees; included are, however, those designed to in the ensure payment to the creditor, event of the death, invalidity, illness or unemployment of the consumer, of a sum equal to or less than the total amount of the credit together with relevant interest to be and other charges which have imposed by the creditor as a condition for credit being granted. 3. (a) Where credit transactions referred to in this Directive are subject to the provisions of national laws in force 40 (b) only one mathematical formula for the annual percentage calculating rate of charge is used within their territory. to Six months before the expiry of the time limit laid down in point (a) the Commission shall submit the Council a report, accompanied by a proposal, which will make it possible in the light of experience, to apply a single Community mathematical formula for calculating the annual percentage rate of charge. (c) The Council shall, acting by a qualified majority on the basis of the proposal from the Commission, take a decision before 1 January 1996. in the the amount or In the case of credit contracts containing 6. rate of clauses allowing variations level of other interest and charges contained in the annual percentage rate of charge but unquantifiable at the time when it is calculated, the annual percentage the rate of charge shall be calculated on assumption interest and other charges remain fixed and will apply until the end of the credit contract. that necessary, 7. Where following assumptions may be made in calculating the annual percentage rate of charge: the there is no timetable if the contract does not specify a credit limit, the amount of credit granted shall be equal to the amount fixed by the relevant Member State, without exceeding a figure equivalent to ECU 2 000. for fixed if repayment, and one cannot be deduced from the terms of the agreement and the means for repaying the credit granted, the duration of the credit shall be deemed to be one year. the unless otherwise specified, where contract provides than one repayment date, the credit will be made available and the repayments made at the earliest the provided agreement. for more time for in than and, where those described to (v) not impose on 1 March 1990 which the annual limits on maximum percentage rate of charge for such transactions such provisions permit standard costs in other paragraph 2(i) to be included in those maximum limits, Member States may, solely in respect of such transactions, not the aforementioned costs include when annual calculating the percentage rate of charge, as stipulated in this Directive, provided that there is a requirement, in the cases mentioned in Article 3 and in the the credit agreement, consumer be the amount and inclusion thereof in the payments to be made. that informed of (b) Member States may no longer apply point (a) from the date of entry into force of the single mathematical formula for calculating the annual percentage rate of charge in the the to Community, provisions of paragraph 5(c). N pursuant 4. (a) (b) 5. (a) the The annual percentage rate of charge shall be calculated at the time is concluded, without prejudice to the provisions of Article 3 concerning advertisements and special offers. contract credit is valid that for The calculation shall be made on the credit the assumption contract the period agreed and that the creditor and the consumer their obligations under the terms and by the dates agreed. fulfil a transitional measure, As notwithstanding the provisions of paragraph 1(a), Member States to 1 March 1990, which, prior applied legal provisions whereby a mathematical formula different from that given in Annex II could be used annual for rate, of charge, may percentage continue formula that within their territory for a period of three years starting from 1 January 1993. c a l c u l a t i ng applying the Member States shall the appropriate measures to ensure that take 41 Annex II National Legislation transposing Directive 90/88/EEC Further details on the national legislation can be found in the Report prepared by Professor Seckelmann on the Method of calculation of APR in the EEA States, available from DG XXIV. Belgium Transposing Legislation: Scope: Term used: Formula used: Elements of cost: Other: Denmark Transposing Legislation: Scope: Term used: Formula used: Elements of cost la consommation relative au crédit à Loi / Wet op het consumentenkrediet 1991/1723 of 12. 6. 91, supplemented by Arrêté Royal relatif aux coûts. du crédit à la consommation / Koninklijk besluit betreffende kosten. van het consumentenkrediet 1992/2311 of 4. 8. 92, both of which have been amended since. Most kinds of credit (including mortgages and current accounts), Wider than the marketing of credit, activities of intermediaries. Directive, with limits on interest rates and lifespans of loans and specifies inadmissible terms Taux Annuel Effectif Global / Jaarlijkse Kostenpercentage Equivalent to EC formula Open list of elements to be included. Same exemptions as in Article 1a2 reasonable choice is given. Other legislation on the subject: Loi 1992/1833 of 6. 7. 92, Arrêté Royal / Koninklijk besluit 1992/2905 (Errata) of 4. 8. 92, Arrêté Royal / Koninklijk besluit 1992/2312 of 4. 8. 92, Arrêté Royal / Koninklijk besluit 1993/1226 of 27. 4. 93, Arrêté Royal / Koninklijk besluit 1993/1381 of 29. 4. 93 Insurance not excluded, is whether but criterion lov n* 284 of 29/04/92 and Lov om kreditaftaler 1990/398 of 13. 6. 90 amended by Lov n* 322 of 31. 05. 91, lov n° 226 of 06. 04. 94, supplemented by Bekendtgorelse n° 896 of 21. 12. 90 and Bekentsgorelse 970 of 07. 12. 92and Bekendtgorelse n° 497 of 13. 06. 94; Lov om maerkning og skiltning med pris n° 395 of 13. 6. 90; and Bekendetgorelse n° 902 of 12. 11. 92 Wider than the Directive - deals with real estate loans secured by mortgage (traded as bonds) ârlige omkostninger i procent EC formula Same exemptions as in Article 1a2 though more comprehensive (account and transfer costs are only exempted if consumer has reasonable choice and costs are not excessive) Other: Germany Transposing Legislation: Other legislation on the subject: Lov 1991/456 of 17. 6. 91 amended by Lov 1994/429 of 1. 6. 94; n° 322 of 31. 05. 91, n° 284 of 29. 04. 92, n° 226 of Bekendtgorelse 06. 04. 94, n° 1098 of 21. 12. 94, n° 970 of 07. 12. 92 and n" 1228 of 21. 12. 92 Erste VO (von 03. 04. 92) zur Anderung der Preisangabenverordnung (von 14. 3. 85) 42 Scope: In some respects wider than the Directive, with regulations on default and intermediaries. effektiver Jahreszins or anfanglicher effektiver Jahreszins Term used: Formula used: Derogation in Article 1a5a - Staffelrechnung (cascade calculation) Elements of cost: Literal transposition, using the exemptions in article 1a2. Insurance which does not secure repayment is exempt, whether mandatory or not. Other: Other legislation on the subject: 14. 3. 85, Article Ausfuhrungshinweise zu §4 PAV of 18. 12. 92; Verbraucherkreditgesetz of 17. 12. 90, amended 27. 4. 93 609a BGB; Preisangabenverordnung of Greece Transposing Legislation: Scope: Term used: Formula used: EC formula Elements of cost: Other: Ministerial Decision 01-983 of 7. 3. 91 As in Directive etisio pragmatiko epitokio As in Article 1 a2 Other legislation on the subject: Decision 1993/524 of the Committee of Money and Credit of the Bank of Greece, of 8. 4. 93; Acts of the Governor of the Bank of Greece n° 1993/2213 of 15. 6. 93; n° 1993/2258 of 2. 11. 93; n° 1994/2286 of 28. 1. 94 Spain Transposing Legislation: Scope: Term used: Formula used: Elements of cost Ley de crédito al consumo 1995/7 of 23. 3. 95 and correction 12. 5. 87 As in Directive, but interest rate and total cost must also be stated for mortgages. tasa anual équivalente and porcentage anual de cargas financieras Equivalent to EC formula All charges are included in the rate, including mandatory insurance charges (and non-mandatory insurance charges are not listed as exempted). Other: Other legislation on the subject: Ley 1965/50 of 21. 7. 65; Orden Banco de Espana of 16. 6. 88, Ley 1988/26 of 29. 7. 88; Orden 1989/303 of Min. Economia y Haciendas of 12. 12. 89; Circular Banco de Espana 1990/8 of 7. 9. 90, n° 1993/13 of 21. 12. 93 and 1994/5 of 22. 7. 94; Ley 1994/2 of 30. 3. 94, Orden Banco de Espana of 5. 5. 94; Directive 90/88 has not been transposed in France. France Transposing Legislation: Scope: taux effectif global Term used: Formula used: -- Elements of cost: Other: By existing legislation, all charges are included in the rate Other legislation on the subject: Loi 1966/1010 of 28. 12. 66, Loi 1978/22 of 10. 1. 78 amended by 1979/596 of 13. 7. 79; Ordonnance 1986/71243 of 1. 12. 86; Loi 1988/15 of 5. 1. 88; Décret 1988/293 of 31. 3. 88; Loi 1989/1010 of 31. 12. 89; Loi 1992/60 of 18. 1. 92; Décret 1985/944 of 8. 9. 85; Loi 1993/949 of 26. 7. 93; Décret n* 1978/372 of 17. 3. 78, n* 1987/509 of 24. 3. 78; n" 1988/293 of 25. 3. 88; Loi 1995/125 of 8. 2. 95 43 Ireland Transposing Legislation- Scope: Term used: Formula used: Elements of cost: Other: 1995 Consumer Credit Act, 28. 7. 95 Wider than the Directive annual percentage rate of charge EC formula Generally the same as Art. 1a2 Other legislation on the subject: Consumer Information (Consumer Credit) Order SI 1987/319 of 10. 12. 87 Italy Transposing Legislation: Scope: Term used: Formula used. Elements of cost: Other: Legge communitaria 1991/142 of 19. 2. 92; Decreto vista 1992/142 of 8. 7. 92 Wider than the Directive - neither loans before notaries nor loans to be repaid by 4 instalments in 12 months are not exempted, and credit purchases are included. tasso annuo effettivo globale EC formula legge la As in Article 1a2. Open list of charges to be included Other legislation on the subject: Legge 1992/154 of 17. 2. 92; Decreto on Legge 1992/154, 24. 4. 92; Instruzioni della Banca d'ltalia legge 1992/154, 24. 4. 92; Legge in materia bancaria e creditizia 1993/385 in attuazione della Luxembourg Transposing Legislation: Scope: Term used: Formula used: Elements of cost: Other: Règlement Grand-Ducal 26. 8. 93 As in Directive but credit card accounts are treated the same as other accounts taux annuel effectif global EC formula Same as in Article 1 a2 Other legislation on the subject: Loi 9. 8. 93; Avant-projet de règlement grand-ducal déterminant les modalités de calcul du montant de la réduction équitable du coût total de crédit Netherlands Transposing Legislation: Scope: Term used: Formula used: Elements of cost Wet op het consumentenkrediet 4. 7. 90 Stb 1990/395 Wider than the Directive and very detailed. Regulation of intermediaries and obligation on lenders to advise debtors. Maximum rates. effektief kredietvergoedingspercentage (op jaarbasis) Equivalent to EC formula Only 1a2(i) & (ii) are used. obligatory, they are not exempted. If account fees or insurance fees are Other: Other legislation on the subject: Besluit n' 1991/515 and 1991/516 of 9. 10. 91; n° 548 of 17. 10. 91, n* 549 of 16. 10. 91, n* 550 of 18. 10. 91; Regeling 1991/220 of 6. 11. 91; Regeling register vergunninghouders Stcr 1991/220 of 6. 11. 91 44 Austria Transposing Legislation: Scope: Term used: Formula used: Elements of cost Other: 13. 07. 93 Bankwesengesetz BGBL n° 532 of Verbraucherkreditverordnung n° 110 of 13. 05. 93 Wider than the Directive in some respects. No form of credit exempt - applies to real estate loans, mortgages and loans of any amount or duration. Certain leasing transactions also seen as being equivalent to hire-purchase. (dekursiver) effektiver and fiktiver Jahreszinssatz Equivalent to EC formula (Section VIII); Only 1a2(i) & (iii) are used. 360 day year used Other legislation on the subject: Insurance is included if mandatory. Konsumentenschutzgesetz 1979/140 of 8. 3. 79, amended by 1993/247 of 16. 4. 93; Konkursordnungsnovelle 1993/974; Gewerbeordnung 1994/194 Portugal Transposing Legislation: Scope: Term used: Formula used: Elements of cost: Other: Decreto-Lei 1991/359 of 21. 9. 91 Wider than the Directive in the range of credit covered. Mortgages not covered. taxa anual de encargos efectiva global EC formula Same as in Article 1a2. Intermediaries' costs included. Finland Transposing Legislation: Scope: Term used: Formula used Kuluttajansuojalaki / Konsumentskyddslag 1978/38 of 20. 1. 78, as amended by 1986/385 of 23. 5. 86, 1993/85 of 8. 1. 93 and 1994/16 of 5. 1. 94: Asetus / Fôrordning 1993/1602 of 30. 12. 93 as amended by 1994/16 of 1. 7. 94 Wder than the Directive - includes loans to buy homes and mortgages. todellinen vuosikorko / effektiv rànta Derogation in Article 1a5a. Formula: Decision of Ministry of Trade and in Chapter 7 of the Industry on the application of certain provisions Consumer Protection Act (1986/874 of 30. 06. 86 as amended by 1994/661) Elements of cost: Other: All charges, except for non-mandatory insurance, are included Other legislation on the subject: Luottolaitoslaki / Kreditinstitutslag 1993/1607 of 30. 12. 93 Sweden Transposing Legislation: Scope: Term used: Formula used: Elements of cost. Konsumentkreditlag 1992/830 Wder than the Directive - covers all forms of loans, including mortgages and those connected with credit-purchases and current accounts effectiv rànta EC formula All charges are included (no exemptions are listed though in practice Insurance is not mentioned but if those in the Directive are used). it is mandatory, must be included. Other: Other legislation on the subject: Guidelines 1992/4 for the application of Konsumentendreditlag 1992/830; Executive Order 1992/1010 of 22. 10. 92 45 United Kingdom Transposing Legislation: Scope: Term used: Formula used Elements of cost: Other: 1 9 7 4; T he C o n s u m er C o n s u m er C r e d it Act (Agreements)(Amendments) Regulation Statutory Instrument 1984/1600 of 22. 10. 94 More comprehensive than the Directive annual percentage rate of charge Equivalent to EC formula C r e d it As in Article 1a2. All mandatory costs included. Other legislation on the subject: Consumer Credit Act 1974; The Consumer Credit Regulations - Statutory Instruments 1980/51 of 29. 1. 80, 1983/1553 of 3. 11. 83, 1983/1562 of 3. 11. 83, 1983/1564 of 3. 11. 83, 1985/1192, 1989/596 of 14. 4. 89; 1989/869 of 24. 5. 89; 1989/1125 of 6. 7. 89; 1989/1126 of 6. 7. 89 Iceland Transposing Legislation: Scope: Term used: Formula used: Elements of cost Log urn neytendalan 1993/30, amended by 101/1993 - consolidated in Log urn neytendalan 1994/121 of 21. 9. 94 Hirepurchase and leasing agreements are included ârleg hlutfallstala kostnaôar EC formula As in Article 1a2. All costs, including non-mandatory insurance, are included. Other: Other legislation on the subject: Regulgerô 1993/377 of 3. 9. 93 and Regulgerô 1993/491 of 3. 12. 92 Liechtenstein Transposing Legislation: vom 22 Oktober Gesetz (Liechtensteinisches Landesgesetzblatt 1993 n°50 von 9/3/93) Effektiver Jahreszins EC formula 1992 ùber den Konsumkredit Term used: Formula used: Elements of cost: As in Article 1a2 Other: 360 day year used Norway Transposing Legislation: Scope: Term used: Formula used: Elements of cost Other: Lov om kredittkjop 1985/82 of 21. 6. 85 as amended; Forskrift kredittkjopsloven 1986/1616 of 15. 7. 86; Forskrift 1990/437 of 1. 6. 90 Narrower than the Directive in that it only covers purchase credit, but wider in that only immovable property is exempt - covers more than consumer purchases, covers wider range of current accounts, effectiv rente EC formula (to be implemented in 1996) til As in Article 1a2 Other legislation on the subject: Lov om amendment 4. 12. 92 finansieringsvirksomnet og finansinstitusjoner 1988/40 and 46 Annex III For the references to the German and French formulae, see footnotes 46 and 50 respectively. Formula used for calculating APR in Finland: Single Credits: P= 1 2 x 2 0 0 xR K x (T + L) in which P= R = K = T = L = APR the amount of total costs the amount of initial loan repayment period expressed in months the interval between repayments expressed in months Current Accounts: 100 x yearly credit costs P = typical amount of credit [Provided by the Consumer Ombudsman's Office, Finland] 47 EXPLANATORY MEMORANDUM Background - Directives 87/102/EEC and 90/88/EEC 1. 2. 3. In 1975, the Council adopted the Preliminary Programme of the European Economic Community for a consumer protection policy\ in which they emphasised the fundamental nature of the consumer's right to protection of their economic interests, and urged that priority be given, inter alia, to the adoption of measures at Community level to harmonise the general conditions of consumer credit. The Commission's original proposal on consumer credit2 was amended3, following Parliament's suggestions, to provide the establishment of a uniform method for the calculation of the annual percentage rate of charge for credit. for The Council adopted Directive 87/102/EEC4 for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit, on 22 December 1986. The ninth recital and Article 5 of this Directive provided for the introduction of a Community method or methods of calculating the 'annual percentage rate of charge' for credit. However, as the elaboration of a common formula for the calculation of the 'annual percentage rate of charge', and the elements to be includea in this calculation, had proved contentious, Directive 87/102 stated that, "pending a decision on a Community method or methods of calculating the 'annual percentage rate of charge', Member States should be able to retain existing methods or practices" and that the "total cost of credit to the consumer" (Article 1. 2d) and the 'annual percentage rate of charge' (Article 1. 2e) should be determined and calculated in accordance with the provisions, practices and methods existing in the Member States. Following discussions with government experts, the Commission presented a proposal for a Directive5. The European Parliament6 and the Economic and Social Committee7 recommended the regulation not only of the mathematical aspects but also of the elements of cost to be included in the calculation. As most Member States were willing to adopt the actuarial method of calculation and were also willing to deal with the elements of cost to be included, an 1 OJ C 92 25. 04. 75 2 OJ C 80 27. 03. 79 p. 4 3 OJ C 183 10. 07. 84 4 O JL 42 12. 2. 87 5 OJ C 155 14. 6. 88 p. 10 6 EP Report A2-418/88 of 06. 03. 89; EP Resolution of 15. 03. 89 7 ECOSOC Opinion, OJ C 337 31. 12. 88 p. 1 <h 4. 5. 6. 7. 8. amended proposal dealing with both aspects was presented in 19898. Directive 90/88/EEC was adopted on 22 February 1990 and introduced a Community method of calculating the 'annual percentage rate of charge' for consumer credit and defined the credit cost items to be used in the calculation by indicating those costs which were not to be taken into account. All Member States9 were to ensure, at least, that only one mathematical formula for the calculation was in use in their territory for that purpose. For a transitional period until 1 January 1996, those Member States which, on a legislative basis, used a different mathematical formula for the calculation of the 'annual percentage rate of charge' (prior to 1 March 1990) were permitted to continue to do so10. Article 1a(5)(b) of Directive 87/102 (as added by Directive 90/88) requires the Commission to present to the Council "a Report, accompanied by a proposal" which will make it possible to apply a single Community mathematical formula for calculating the 'annual percentage rate of charge'. The Commission has prepared a Report on the operation of Directive 90/8811 which explains in more detail the reasons for the proposals for amendment presented below. This Report is based on a study prepared by a consultant expert in financial mathematics12, on studies of the transposition of the Directive into domestic law13 and, particularly, contacts with government experts14. While Article 1a(5)(c) states143 that the Council shall, acting on the basis of the Commission's proposal, "take a decision", this is not a 'Decision' as defined by Article 189 of the Treaty but rather, since its objective would be to require This interpretation is in Member States to change their laws, a Directive. OJC 155 23. 06. 89 p. 4 Directive 90/88 was incorporated into the Agreement on the European Economic Area (EEA) and the Report (see footnote 11 infra) therefore covers Iceland, Liechtenstein and Norway as well as the 15 members of the European Union Article 1a(5)(a) of Directive 87/102 (as added by Directive 90/88) COM(96)79 Professor Seckelmann has prepared a study on the Methods of calculation in the European Economic Area of the Annual Percentage Rate of Charge (available from DG XXIV) Footnote 3 of COM(95)117, Report on the operation of Directive 87/102/EEC on the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit Meetings were held in Brussels in April 1995 and January 1996, with continued direct contacts in the intervening months. The French and Italian versions of the Directive do not refer to a "decision" 9 10 11 12 13 14 14a Eto accord with that previously given to Article 5 of Directive 87/102 which referred to a 'decision' on the introduction of a Community method - the method was in fact introduced by a Directive (Directive 90/88/EEC). Proposals for the amendment of Directive 87/102 (as amended by Directive 90/88): 9. 10. As has been explained in more detail in the Report on the operation of Directive 90/8815, there are almost as many denominations for the Annual Percentage Rate of Charge in use as there are Member States. this reason, in the interests of transparency and of For the same reasons that it is desirable, in order to ensure the proper functioning of the Internal Market and to ensure a high level of protection of consumers, that one single method be used for the calculation of the annual percentage rate of charge be used throughout the European Community and the other members of the EEA, it is also desirable that consumers should be able to recognise the terms used in other Member States to indicate this rate. increased For comprehension by consumers, it is desirable that a common feature be included in order to enable consumers to recognise these terms as being equivalent to the one in use in their own Member States. Following discussions with government experts, and the principles of proportionality and subsidiarity, it is not proposed to suggest the harmonisation of the different terms in the different languages, but rather to require the use in all consumer credit of a symbol advertisements and written agreements with consumers. This symbol will be identical in each Member State. This will entail the amendment of Article 3 and 4(2) of Directive 87/102 (as amended by Directive 90/88) in order to require the use of a sumbol in addition to the existing term "annual percentage rate of charge" in all consumer credit advertisements and written agreements with consumers. in addition to the existing in accordance with term 11. In order to harmonise the different existing language versions of the Directive, the amendment of Article 1a(1)(a) in the English and Greek language versions of the Directive is required16. The article will now read as follows (identical to the French language version): The annual percentage rate of charge, which shall be that rate, on an annual basis, which equalises the present value of all commitments (loans, repayments and charges), future or existing, agreed by the creditor and the borrower, shall be calculated in accordance with the mathematical formula set out in Annex II. 15 16 Paragraphs 113 - 120 of the Report This amendment has been discussed with and agreed by Ireland and the United Kingdom (as far as the words "that rate. which equalises" are concerned). 5Ï and the proposed wording for the Greek version of Article 1 a(1)(a) is as follows: "TO OVVOXl KÔ €TT)0~ LO 1TpOty\JaT L KO 1TOOOOTÔ 6 7T L (Sap V V 07] Ç ITOU 6 £ LOù3V€ L oe eTf\o'ioL (3aorj TLÇ ^eXXovTLKù)vviToxpeù)oeix)v(ôoiveiG)v, TTOV éxovv KOLTOLVOlXbiTT), VÏÏOX OJ L f 6 TOL L O V P0W V 01 Ue TO \lŒÔ T]\l0LT L K. O TV1TO TTOV •ïïOtpOLT L de TOtl OTO 7TOL p Ôt p T7][\a. I I ". f) eCocfrXijoeuv KŒL eir L(3ocpv voeuv) i f ope vo) irocpovoeç a £ i eç TOV ovvôXov otvotXr)<fid et airô TWV rpexouoûv TO ôaveLUTf) (ôave non TO 12. 13. Article 1a(3) of the Directive permitted Member States who had national laws in force on 1 March 1990 which imposed maximum limits on the annual percentage rate of charge and which excluded costs other than those referred to in Article 1a(2), to continue to rely on these provisions (provided that the consumer is informed of these charges). As no Member State has made use In any event, it of this possibility, it is appropriate to delete Article 1a(3). would be necessary to delete this Article once the formula was confirmed as proposed by the present proposal for a Directive. in the Report on the Operation of Directive As has been demonstrated 90/88/EEC, the formula contained in Annex II of the Directive is completely correct and should be confirmed throughout the European Economic Area. This will entail the replacement, in Germany, France and Finland, of the formulae presently in use. Neither the German nor the French formulae use exponential calculation, resulting in a situation where neither can apply a one year compounding period for all circumstances. The main differences in relation to the German formula17 relate to short term credit, a form increasingly used e. g. credit cards. Indeed, some German banks already use the EC formula for calculating rebates because the older system is inapplicable in cases of unequal instalments. With the French18 formula, the monthly rate is converted to an annual rate by multiplying by twelve. This is misleading as it is not based on an annual compounding period and thus leads to very significant differences with the EC formula. French consumer credit contracts thus appear artificially more favourable to consumers than those of other Member States. While the German system is mathematically inconsistent and creates artificial differences in calculations, it has only modest effects on most ordinary instalment credit. The French system deviates so significantly as to mislead not only non-French consumers but also French consumers. 14 As an example, in a loan of 1000 ECU, with 10 ECU interest each month, the following results are achieved using the different formulae: 17 See paragraphs 64-75 of the Report on Directive 90/88 18 See paragraphs 76-81 of the Report on Directive 90/88 5X Term (months) 6 12 18 24 48 Cost German method EC method French method 60 120 180 240 480 21. 49 24. 66 24. 27 24. 34 23. 09 22. 29 23. 70 24. 00 23. 84 22. 86 20. 29 21. 46 21. 65 21. 58 20. 75 15 16. The German deviation is signficant for periods of less than one year while the French deviation is more general and serious. The advantages of the EC formula19 are that mathematically, the use of a single formula is the only way to guarantee that the price represents equal conditions; that it enables consumers to shop across borders in the Single Market; that it simplifies the legal framework for consumer credit in different Member States and promotes consistency in the national transposition measures. Production costs for software companies and financial institutions will be reduced due to the economies of scale provided by the use of a single formula throughout the Single Market. The potential cost of adapting computer programmes and price structures to handle the EC formula is not a striking argument as banks in those Member States which already use the formula have already made this investment. Those banks that will now be obliged to change frequently adapt their programmes to take account of case law and administrative rules on the subject and, in addition, already use the EC formula for some (internal) calculations. It is therefore necessary to delete Article 1a(5), the Article which provided a derogation until 31 December 1995 (used by Germany and Finland) to those Member States who wished to retain a different method for the calculation of the annual percentage rate of charge. As has been demonstrated in the Report on the Operation of Directive 90/88/EEC, the formula contained in Annex II of the Directive should be confirmed throughout the European Community and other members of the EEA. As a result, Article 1a(5)(a) (the derogation), Article 1a(5)(b) (the reference to the Report and this legislative proposal) and Article 1a(5)(c) (the reference to the decision to be taken by the The Council), are no longer necessary and should be deleted. confirmation of the formula contained in Annex II will entail changes in the legislation presently in force in Germany, France and Finland. 17. Linguistic changes have also been proposed to the wording of the definitions in Annex II in certain language versions - namely Spanish, French and Dutch. 18. While the Directive does not at present define the degree of accuracy required 19 See paragraphs 82 - 93 of the Report on Directive 90/88 55 in the calculation of the annual percentage rate of charge, the examples in Annex III presuppose accuracy to at least one decimal place. Most Member States require accuracy to at least one decimal place. As the scope of many Member States'consumer credit legislation covers higher amounts and longer terms than in the Directive, the differences as a result of the level of accuracy become important, especially in those Member States which include mortgage credit in the scope of their legislation. It is therefore necessary that accuracy to two decimal places should be required (though accuracy to one decimal place could be allowed where the difference is less than ECU 50). This would also entail amendment of Annex II and of the examples in Annex 19. 20. 21. The Directive states in Annex II that intervals shall be expressed in "years or in fractions of a year". This dates from the pre-computer era when, for ease of calculation, a year was defined as having 12 equal months, 52 weeks and 360 days. Compounding periods were likewise set at full months or years in order to make end-of-year calculations possible. This leads to situations where the 31st day of some months is ignored and 2 days are added to February in order to arrive at 12 equal 30 day months. In practice, most Member States (with the exception of Germany, Austria, Sweden, Liechtenstein and Norway) have introduced the correct calendar into their calculations. Even in those Member States, the correct calendar year of 365 days is used for certain calculations. Use of a 365 day year is, moreover, in conformity with computer programmes all over the world - computers automatically calculate on the basis of a 365 day year and the number of days in a given time period. As the differences in the rates for credit calculated on a 360 day year and a 365 day year can be significant, it is necessary that Annex II should be amended to state that a year is presumed to have 365 or 366 days20. This would also entail amendment of Annex II and of the examples in Annex III. This proposal would, in practice, only affect Germany, Austria, Sweden, Liechtenstein and Norway, who presently use a 360 day year in their calculations. A miscalculation in the fourth example in Annex III also needed correction - instead of 13. 21% the answer should have been 13. 1855 or 13. 19%. This correction has, however, been overtaken by the recalculation of the examples on the basis of accuracy to 2 decimal places and the use of a 365 or 366 day year. 22. No proposals are put forward at this time concerning the list in Article 1a(2) of the Directive (the elements of cost to be excluded from the calculation of the annual percentage rate of charge) as most Member States include the same elements and such differences as do exist are minimal in nature. As regards amendment of any other substantive elements of Directive 90/88/EEC, any 20 While Denmark uses a year of 365. 25 days, averaged over 4 years, in order to take account of leap years, this is not proposed for the Directive as the difference would not be significant enough to be noticed in a calculation which uses accuracy to 2 decimal places. 9i proposals in this regard would be considered together with proposals for the amendment of the original Consumer Credit Directive, Directive 87/102/EEC21. Legal situation pending the adoption of the proposed Directive 23. 24. As a result of changed circumstances following the enlargement of the European Union to include Austria, Finland and Sweden, and the delayed transposition of Directives 87/102 and 90/88 by certain Member States, the Commission was unable to present the Report and proposal mentioned in Article 1 a(5)(b) by 1 July 1995, and the Council and Parliament were unable to adopt the proposed draft Directive by 1 January 1996. Article 1a(5)(a) of Directive 87/102 permitted Member States, as a transitional measure, to continue to apply legal provisions for the calculation of the global annual effective rate different to those in the Directive for a period of three years starting from 1 January 1993 (i. e. until January 1 1996). The Commission interprets Article 1a(5)(b) as an implicit prolongation of this period until the adoption of the Directive referred to in Article 1a(5)(c). Germany, France and Finland may therefore continue to apply existing legal provisions different to those in Annex II of Directive 87/102 until the adoption of the proposed Directive. 21 A Report on the operation of which was published in May 1995 [COM(95)117 of 11. 05. 95], reactions to which are currently under consideration by the Commission. Any subsequent legislative proposal in this respect could include amendments to Directive 90/88. 55 DIRECTIVE 96/ OF THE EUROPEAN PARLIAMENT AND THE COUNCIL of 1996 amending Directives 87/102 (as amended by Directive 90/88) for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit T HE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 100a thereof, Having regard to the proposal of the Commission1, Having regard to the opinion of the Economic and Social Committee2, Acting in accordance with the procedure laid down in Article 189b of the Treaty3, Whereas it is desirable, in order to promote the establishment and functioning of the internal market and to ensure that consumers benefit from a high level of protection, that one method of calculating the annual percentage rate of charge should be used throughout the European Community, Whereas Article 5 of Council Directive 87/102/EEC4 provides for the introduction of a Community method or methods of calculating the annual percentage rate of charge for consumer credit; Whereas, in order to introduce this single method, it is desirable to draw up a single mathematical formula for calculating the annual percentage rate of charge and for determining the credit cost items to be used in the calculation by indicating those costs which must not be taken into account, Whereas Annex II of Directive 90/88/EEC (5) introduced a mathematical formula for the calculation of the annual percentage rate of charge and Article 1. 2 of Directive 90/88 provided the charges to be excluded from the calculation of the 'total cost of credit to the consumer', Whereas during a transitional period of three years from 1 January 1993, Member States which prior to 1 March 1990 applied laws which permitted the use of another mathematical formula for calculating the annual percentage rate of charge, were permitted to continue to apply such laws, 4 5 OJ n° L42 12. 2. 87 p. 48 OJ L61 10. 3. 90 p. 14 5f Whereas the Commission has submitted a Report to the Council (6) which makes it possible, in the light of experience, to apply a single Community mathematical formula for calculating the annual percentage rate of charge, Whereas no Member State has made use of Article 1a(3) of the Directive by which certain costs were excluded from the calculation of the annual percentage rate of charge in certain Member States, it has become obsolete, Whereas accuracy to two decimal places and the use of a 365 or 366 day year is necessary, Whereas it is desirable that consumers should be able to recognise the terms used in different Member States to indicate the 'annual percentage rate of charge', and that the use of a common symbol, in addition to the existing term, should be mandatory in all consumer credit advertisements and written agreements with consumers throughout the European Community, HAVE ADOPTED THIS DIRECTIVE: COM(96)79 3 Article 1 Whenever the term "annual percentage rate of charge", or the equivalent term in another Community language, is used as required by Directive 87/102, it shall be accompanied by the following symbol: it it w it it % it it it it it it^it Article 2 Article 1a(1)(a) shall be replaced by the following: in the Greek language version of the Directive: eTijoLO TLÇ "To OVVOXIKO eTf)oia. Pâorj [ieXXovT L KQV VTroxpcûoeuv ixovv vnoXoyi Trapâprr/Uck; I I ". f e ra i avU^wva ' irapoûoeç a£ïeç irpocy\JaT L KO TTOOOCTO eir ifiâpu vorjç TTOV e^toûvei ce f) (ôav e ïuv, e^o4>Xf)oeuiv KÙ L eir tfiotpv voeojv) TTOV non TO (ôave L f ôUe v o) KaTcuvaXuTfj, [iaôr}[iaT L KO TOTTO TTOU uapaTÏ 6 e Ta L OTO TÙJV Tpexovoœv ovvôXov \ie TO rov avaXri(f)d et otirô TO botveiOTf] in the English language version of the Directive: The annual percentage rate of charge which she!! be that rate, on an annual basis which equalises the present value of all commitments (loans, repayments and charges), future or existing, agreed by the creditor and the borrower, shall be calculated in accordance with the mathematical formula set out in Annex (II). ' Article 1a(3) shall be deleted. Article 1a(5) shall be deleted. Article 3 Article 4 Article 5 Article 3 shall be amended as follows: Without prejudice to Council Directive 84/450/EEC of 10 September 1984 relating to the approximation of the laws, regulations and administrative provisions of the Member States concerning misleading advertising, as amended by Council Directive /96 of. 1996 concerning comparative advertising, and to the rules and principles applicable to unfair advertising, any advertisement, or any offer which is displayed at business premises, in which a person offers credit or offers to arrange a credit agreement and in which a rate of interest or any figures relating to the cost of the credit are indicated, shall also include a statement of the annual percentage rate of charge, accompanied 5f by the symbol as mentioned in Article 1 of this Directive, by means of a representative example if no other means is practicable. Article 6 Article 4(2)(a) shall be amended as follows: (a) a statement of the annual percentage rate of charge, accompanied by the symbol as mentioned in Article 1 of this Directive Annex I attached hereto shall become Annex II, replacing Annex II of Directive 87/102 (as amended by Directive 90/88). Article 7 Annex II attached hereto shall become Annex III, replacing Annex III of Directive 87/102 (as amended by Directive 90/88). Article 8 Article 9 1. Member States shall bring into force the laws, regulations and administrative provisions necessary for them to comply with this Directive no later than 31 December 1996 and shall inform the Commission thereof. When Member States adopt those measures, they shall include references to this Directive or shall accompany them with such references on their official publication. The Member States shall lay down the manner in which such references shall be made. 2. The Member States shall communicate to the Commission the texts of the provisions of national law which they adopt in the field governed by this Directive. This Directive is addressed to the Member States Article 10 Done at Brussels, 1996 L Annex I Annex II THE BASIC EQUATION EXPRESSING THE EQUIVALENCE OF LOANS ON THE ONE HAND AND REPAYMENTS AND CHARGES ON THE OTHER K = m E A f -1 A -^-7 (1 + / ) '* K' = m' - E fC =1 A* * (1 + /)'*• Meaning of letters and symbols: K K' AK A\- J2 is the number of a loan is the number of a repayment or a payment of charges is the amount of loan number K is the amount of repayment number K' represents a sum m is the number of the last loan m ' is the number of the last repayment or payment of charges tK tK- i is the interval, expressed in years and fractions of a year, between the date of loan No. 1 and those of subsequent loans Nos. 2 to m is the interval, expressed in years and fractions of a year, between the date of loan No. 1 and those of repayments or payments of charges Nos. 1 to m' is the percentage rate that can be calculated (either by algebra, by successive approximations, or by a computer programme) where the other terms in the equation are known from the contract or otherwise. Remarks (a) (b) (c) (d) The amounts paid by both parties at different times shall not necessarily be equal and shall not necessarily be paid at equal intervals The starting date shall be that of the first loan Intervals between dates used in the calculations shall be expressed in years or in fractions of a year. A year is presumed to have 365 or 366 days The result of the calculation shall be expressed with an accuracy of 2 decimal places. If the figure at the third decimal place is greater than or equal to 5, the figure at the second decimal place shall be increased by one. 61 Annex II "Annex III: EXAMPLES OF CALCULATION First example Sum loaned: S = 1000 ECU on January 1 1994 It is repaid in a single payment of 1200 ECU made on June 30 1995 (547 days after the date of the loan) 1 2^ 647 (1+4 365 The equation becomes: 1000 = or 547 (1+4 365 ~ 1. 2 1 + i= i = 1. 129444207. 0. 129444207. This amount will be rounded to 12. 94% Second example The sum loaned is S = 1000 ECU but the creditor retains 50 ECU for administrative expenses, so that the loan is in fact 950 ECU; the repayment of 1200 ECU, as in the first example, is again made on June 30 1995. The equation becomes: 547 365 = 1 ,2 1200 547 365 (1+J) 950 = or (u& I1 +0 =1200 950 =1 I 2 631 57 1 + i = i = 1. 1688996. 0. 1688996. rounded to 16. 89% a Third example The SLm loaned is 1000 ECU, repayable in two amounts, each of 600 ECU, paid after one and two years respectively. The equation becomes: 1000=- 600 1 +/ 600 (1 +/)730/365 600 600 1 +/ (1 + /)2 It is solved by algebra and produces i = 0. 1306623, rounded to 13. 07% Fourth example The sum loaned is 1000 ECU, on January 1 1994, and the amounts to be paid by the borrower are: After 3 months After 6 months After 12 months (0. 25 years ) (0. 5 years ) (1 year ) 272 ECU 272 ECU 544 ECU Total 1088 ECU The equation becomes: 1 0 0 0 = ^ ^+. 89 (1+/)365 2 72 5 44 180 (1+/)365 365 (1+/)365 This equation allows i to be calculated by successive approximations, which can be programmed on a pocket calculator The result is: i = 0. 13226, rounded to 13. 23% C2. ISSN 0254-1475 COM(96) 79 final DOCUMENTS EN 10 06 Catalogue number : CB-CO-96-090-EN-C ISBN 92-78-00976-8 Office for Official Publications of the European Communities L-2985 Luxembourg £s

Convention on the International Commission for the Protection of the Oder

http://publications.europa.eu/resource/cellar/4478b5ee-c65a-4c46-98e2-e5ff719b389b

eng

15. 4. 1999 EN Official Journal of the European Communities L 100/21 TRANSLATION CONVENTION on the International Commission for the Protection of the Oder THE GOVERNMENT OF THE FEDERAL REPUBLIC OF GERMANY, THE GOVERNMENT OF THE REPUBLIC OF POLAND, THE GOVERNMENT OF THE CZECH REPUBLIC, AND THE EUROPEAN COMMUNITY, Hereinafter referred to as ‘the contacting parties', CONVINCED of the need to improve the ecological state of the Oder and the Stettiner Haff, including their drainage areas, DESIROUS of preventing further pollution of these waters, RESOLVED to contribute to a sustained reduction of pollution of the Baltic Sea, CONVINCED of the urgency of these tasks, DESIROUS of increasing the cooperation that already exists between the contracting parties in this area, HAVE AGREED THE FOLLOWING: Article 1 modern technologies to prevent and reduce pollution resulting from agreements concluded under civil law. 1. The Contracting Parties shall cooperate within the International Commission for the Protection of the Oder against Pollution, hereinafter referred to as ‘the Commis- the Oder and the the pollution of sion', Stettiner Haff, including their drainage areas, hereinafter referred to as ‘the Oder'. to prevent The objectives of this cooperation shall be in partic- 2. ular: (a) to prevent the pollution of the Oder and the Baltic Sea by contaminants and to achieve a sustained reduc- tion in the pollution thereof; (b) to achieve the most natural aquatic and littoral ecosys- tems possible with the corresponding species diver- sity; (c) to permit utilisation of the Oder, in particular the production of drinking water from bank filtrate and the use of its water and sediments in agriculture. To achieve objectives, the Contracting Parties shall 3. draw up joint action programmes within the Commission with timetables for their implementation. These action programmes may be gradually supplemented as necessary. Article 2 1. The Commission shall in particular: (a) prepare surveys of point sources of pollution, estimate water pollution from non-point sources and extrapo- late both by sector and the main types of pollution; (b) propose limit values for the discharge of waste waters; (c) propose water quality objectives which take account of the intended use of the waters and the particular conditions for protection of the Baltic Sea and the aquatic and littoral ecosystems; (d) establish joint measurement and analysis programmes to demonstrate the quality and quantity of the waters and the quality of the sediments, to assess the state of the aquatic and littoral ecosystems and, where neces- sary, to evaluate the consequences of the water pollu- tion, and to evaluate the results; (e) develop standardised methods for the classification of the waters; For 4. Contracting Parties the attainment of the shall promote the exchange of objectives, these (f) analyse data and information necessary for the protec- in particular with regard to tion of hydrology and water resource management; the Oder, L 100/22 EN Official Journal of the European Communities 15. 4. 1999 for (g) propose action programmes the reduction of pollution, especially by contaminants from both municipal and industrial point sources and from non- including the point and possible proposed timescale, funding arrangements; sources and other measures estimate cost (h) propose safeguards to prevent and deal with unfore- seen pollution incidents, and establish a uniform warning and alert system in the light of experience; (i) document the ecological importance of the various biotope elements, including the eco-morphology, and draft proposals for the maintenance, restoration and protection of aquatic and littoral ecosystems; (j) discuss planned and existing types of utilisation of the transboundary waters which may have important repercussions; (k) promote cooperation on scientific research projects and the exchange of information, in particular on the state of the art and modern technologies to prevent and reduce water pollution. The Commission shall also cover matters relating to 2. the protection of the waters against pollution where such pollution is caused by fisheries, shipping or other uses of the waters. The Commission may be given other tasks by joint 3. agreement between the Contracting Parties. Article 3 This Convention shall apply in the territories of the Republic of Poland and the Czech Republic and in the territories in which the Treaty establishing the European Community is applicable. Article 4 The Commission’s activities shall be conducted in 1. accordance with the laws of the Contracting Parties. 2. The Commission shall make proposals and recom- mendations to the Contracting Parties to achieve the objectives of this Convention. 3. The Contracting Parties shall inform the Commis- sion, within specific periods of time, of the conditions and resources needed to achieve the objectives and of the measures taken and the results thereof. Article 5 1. The Commission shall consist of delegations of the Contracting Parties. Each Contracting Party shall appoint a maximum of five delegates, including the head of the delegation and his deputy and up to five alternate dele- gates. Each delegation may call in experts designated by it 2. for the consideration of specific issues. 3. The Commission shall adopt rules of procedure. Article 6 1. The chairmanship of the Commission shall be held by the delegations of the Contracting Parties in turn. Details of the chairmanship and the related tasks shall be laid down in the rules of procedure. The delegation its holding the chairmanship shall designate one of members as chairman. The delegation may appoint a further delegate for the duration of its chairmanship. The chairman shall not normally speak on behalf of 2. his delegation in the Commission meetings. Article 7 The Commission shall meet at least once a year at 1. the chairman’s invitation for an ordinary meeting at a place specified by him/her. Extraordinary meetings shall be convened by the 2. chairman at the request of at least one delegation. The heads of the delegations may confer between 3. meetings of the Commission. 4. The chairman shall propose the agenda. Each dele- gation shall be entitled to include those items in the agenda which it wishes to have discussed. Article 8 1. Each delegation shall have one vote. 2. Negotiations and decisions within the framework of this Convention and in the course of its implementation shall be carried out by the European Community and the Federal Republic of Germany within their respective fields of competence. The European Community shall not exercise its right to vote in cases in which the Federal Republic of Germany is competent and vice-versa. 3. The Commission’s decisions and proposals shall be unanimously adopted. A written procedure may be applied in accordance with conditions to be specified in the rules of procedure. 4. Decisions nem. con. shall be deemed to be unan- imous, provided all the delegations are present. Article 9 The Commission shall set up working parties to 1. carry out certain tasks. The working parties shall consist of the delegates or 2. experts designated by each delegation. 3. The Commission shall determine the tasks and the number of members of each working party and shall appoint the chairman. 15. 4. 1999 EN Official Journal of the European Communities L 100/23 Article 10 The Commission shall have legal personality. Its legal capacity shall be governed by the law of the State in which its secretariat is located. The Commission shall be represented by its chairman. The chairman may deter- mine his/her representatives in accordance with the rules of procedure. The Commission shall decide on its budget and 3. confirm its performance. Further details shall be laid down in the rules of procedure. The Commission’s budget shall be made up, apart 4. from the contributions from the Contracting Parties, of donations, grants, interest receipts and resources from other sources. Article 11 The Commission shall establish a secretariat for the prep- aration and implementation of its work. The Commission shall lay down rules for the work of the secretariat in the rules of procedure. The secretariat shall be located in Breslau. Article 12 The Commission may call on the services of specially qualified persons or bodies to examine specific issues within the limits of its budget. Article 16 1. Rights and obligations of the Contracting Parties resulting from bi- and multilateral agreements shall not be affected by this Convention. 2. The Commission shall examine, in agreement with the Contracting Parties, the extent to which it is possible and expedient to harmonise the rights and obligations from existing agreements in order, among other things, to avoid duplication of effort and shall present cor- responding proposals if appropriate. Article 13 Article 17 The Commission shall, in accordance with the 1. objectives of this Convention, decide on cooperation with other international and national organisations concerned with protection of waters against pollution. The working languages of German, Polish and Czech. the Commission shall be The Commission shall 2. results of its work and its programmes and measures. inform the public of the Article 14 The Commission shall provide the contracting parties with an activity report at least every two years and, if necessary, with further reports, in particular on measures taken and the results of analyses and their evaluation. Article 15 Each Contracting Party shall bear the costs of its 1. representation in the Commission and in the working parties. 2. Other costs incurred by the Commission and the costs of the secretariat shall be covered by the Commis- sion’s budget. The contributions to the Commission’s budget shall be divided among the Contracting Parties as follows: Federal Republic of Germany Republic of Poland Czech Republic European Community 38,75 % 38,75 % 20,00 % 2,50 % Total 100,00 % Article 18 1. This Convention must be ratified or confirmed in accordance with the respective laws of the Contracting Parties. 2. The ratification or confirmation deeds shall be deposited with the General Secretariat of the Council of the European Union as depositary. The depositary shall inform the other Contracting Parties of every ratification or confirmation deed deposited. 3. This Convention shall enter into force 30 days after the day on which the last ratification or confirmation deed has been deposited with the depositary. The depos- itary shall inform the other Contracting Parties of the date of entry into force. Article 19 The Convention shall be concluded for an indefinite 1. period. 2. Five years after its entry into force, this Convention may be denounced at any time by any of the Contracting through notification to the depositary. The Parties Convention shall thereby cease to have effect for the denouncing party one year after the deposit of the note in question with the depositary. L 100/24 EN Official Journal of the European Communities 15. 4. 1999 Article 20 This Convention which is drawn up in original copies in German, Polish and Czech, each text being equally binding, shall be deposited in the archives of the Secretariat-General of the Council of the European Union. The latter shall send a certified copy to each of the Contracting Parties. Done at Breslau on the eleventh day of April nineteen hundred and ninety-six. For the Government of the Federal Republic of Germany: For the Government of the Republic of Poland: For the Government of the Czech Republic: For the European Community:

Proposal for a COUNCIL DECISION concerning the conclusion on behalf of the European Community, as regards matters within its competence, of the results of the WTO negotiations on financial services and on movement of natural persons

http://publications.europa.eu/resource/cellar/a41110f7-8e32-4639-be32-f8d74e4e6c66

eng

I I I j t_ ^ -v vr +, -tr "* I COMMISSION OF THE EUROPEAN COMMUNITIES "À M * ** Brussels, 11. 04. 1996 COM(96)154 final 96/0105 (CNS) Proposal tor a COUNCIL DECISION concerning the conclusion on behalf of the European Community, as regards matters within its competence, of the results of the WTO negotiations on financial services and on movement of natural persons (presented by the Commission) Explanatory Mei o andum By its decision of 22 December 19941, the Council of the European Union approved the linal Act embodying the results of the Uruguay Round of multilateral trade negotiations concluded at the end of December 1993. It thereby approved the Marrakesh Agreement estabUshing the World Trade Organization and its related agreements, among which the General Agreement on Trade in Services, as well as the Ministerial Declarations and Decisions and the Understanding on Commitments in Financial Services featured in the linal Act. The Ministerial Decision on Financial Services stated that at the conclusion of a period ending no later than six months after the date of entry into force of the WTO Agreement, which took place on 1 January 1995, WTO Members were free to improve, modify or withdraw all or part of their commitments in the financial services sector without offering compensation. By the same deadline of 30 June 1995, WTO members were to finalize their position relating to MFN exemptions in this sector. The Ministerial Decision on Negotiations on Movement of Natural Persons stated that negotiations on further liberalisation of movement of natural persons for the purpose of supplying services continued with a view to allowing the achievement a higher level of commitments by participants These negotiations were to be finalised no later than six months after the date of entry into force of the WTO Agreement. On 29 June, at the end of the negotiating process, while major WTO Members, including the European Community and its Member States, had submitted revised schedules of commitments on financial services to become unconditional MFN-based commitments, the United States unexpectedly decided to withdraw most of its offer on financial services by taking a blanket MFN exemption. In these circumstances, it was proposed to prolong the negotiations for one month to allow countries, including the United States, to confirm whether or not they were wishing to maintain their best offers. In parallel, the negotiations on movement of persons were prolonged for one month. The Second Protocol and related Decisions on financial services as well as the Third Protocol and related Decision on movement of natural persons were adopted by the WTO Services Council of 21 July 1995 The Council in its conclusions of 26 July 1995 authorised the Commission to confirm, on behalf of the European Community and its Member States, the offer submitted to the WTO on financial services on 21 July 1995 and the negotiated improvements to their existing commitments on movement of natural persons. 1 JO n°336 of 23rd December 1994. p. 1. The Council also authorized the Commission on the same date to approve the Decision of the Committee on Trade in Financial Services adopting the Second Protocol to the GATS, the Decision of the Council for Trade in Services on Financial Services, the Second Decision of the Council for Trade in Services on Financial Services and the Decision of the Council for Trade in Services on movement of natural persons On 28 July 1995, the following WTO Members confirmed that they would maintain their best offers on new commitments: besides the European Community and its Member States, these countries are Australia, Brazil, Canada, Chile, the Czech Republic, the Dominican Republic, Egypt, Hong Kong, Hungary, India, Indonesia, Japan, Korea, Kuwait, Malaysia, Mexico, Morocco, Norway, Pakistan, Philippines, Poland, Singapore, the Slovak Republic, South Africa, Switzerland, Thailand, Turkey, Venezuela These countries will be signatories to the Second Protocol to the GATS, the legal instrument to which they will attach their new schedules and MFN exemption lists The US did not level of change the position stated on 30 June 1995 and thus applies a reduced commitments and a broad MFN exemption. Other WTO member countries, such as Argentina and New Zealand, will continue to apply their April 1994 schedules. On 28 July 1995, the following WTO Members confirmed submission of their improved commitments on movement of natural persons: Australia, Canada, the European Community and its Member States, India, Norway and Switzerland Negotiations were therefore concluded on 28 July 1995. The individual schedules of commitments to be annexed respectively to the Second and Third Protocol to the General Agreement on Trade in Services were technically verified and approved by the WTO Council for Trade in Services in Geneva on 4 October 1995. Both Protocols are open for acceptance, by signature or otherwise, by Members concerned until 30th June 1996. Negotiations were conducted in the light of the guidelines adopted by the Council of 6 March 1995, as interpreted by the Council on 17 July 1995. The overall level of commitments both on market access and national treatment reached upon adoption by WTO of the interim agreement on 28 July 1995 is globally better than that obtained at the end of December 1993. It allows EU financial services and insurance industries to benefit from greater legal certainty and predictability than previously available, and constitutes a basis on which to build further market-opening measures in the future. An important objective of the Community and its Member States was to achieve the multilateralisation of Japan/US measures on insurance and financial services so that the dispute settlement procedures could be invoked if EU financial services providers were discriminated against, compared with US suppliers. In response, Japan confirmed in an open letter to the Director General of the WTO that all the benefits of the Measures on insurance and financial services are multilaterally applied on an MFN basis consistently with WTO rules. The contribution of the European Community and its Member States to a satisfactory conclusion of the negotiations on the movement of persons supplying services was also important. It shows that the interests of all Members of the WTO are taken into account by the EU. Moreover, the outcome of these negotiations constitutes a more balanced level of commitments in that area. The Commission therefore recommends that the Council of the European Union adopt the attached decision concerning the conclusion of the results of the extended WTO negotiations on financial services and on movement of natural persons. Council Decision of. concerning the conclusion on behalf of the European Community, as regards matters within its competence, of the results of the WTO negotiations on financial services and on movement of natural persons THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 54, 57, 63, 66, 73C (2), 100, 100A and 113, in conjunction with the second sentence of Article 228 (2) and the first sub-paragraph of Article 228 (3) thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, Having regard to the opinion of the European Parliament, Whereas the Marrakesh Agreement establishing the World Trade Organisation and its related agreements as well as the Ministerial Decisions and Declarations and the Understanding on Commitments in Financial Services were approved by a Council decision of 22 December 19940); Whereas the overall commitments on financial services negotiated by the Commission, on behalf of the European Community and its Member States, constitutes a satisfactory and balanced outcome for the interim period concerned; Whereas some commitments were negotiated by the Commission on behalf of the European Community and its Member States on movement of natural persons for the purpose of supplying services; Whereas on 26 July 1995 the Council authorized the Commission to agree, on behalf of the European Community and its Member States, to the Decision of the Committee on Trade in Financial Services adopting the Second Protocol to the General Agreement on Trade in Services, the Decision of the Council for Trade in Services on Commitments on Financial Services and the Second Decision of the Council for Trade in Services on Financial services as well as the Decision of the Council for Trade in Services on movement of natural persons commitments ; 1 JO n°336 23 December 1994. p. 1 Whereas the competence of the Community to conclude international agreements does not derive only from explicit conferral by the Treaty but may also derive from other provisions of the Treaty and from acts adopted pursuant to those provisions by Community institutions; Whereas where Community rules have been adopted in order to achieve the aims of the Treaty, Member States may not, outside the framework of the common institutions, enter into commitments liable to affect those rules or alter their scope; Whereas some commitments on financial services fall within the competence of the Community under Article 113 of the Treaty; whereas, furthermore, other commitments on financial services as well as the commitments on movement of natural persons affect Community rules adopted on the basis of Articles 54, 57, 63, 66, 100 and 100A, and may therefore only be entered into by the Community alone; Whereas, the use of Article 73C (2) of the Treaty as a legal basis for this Decision is required since the results of the WTO negotiations on financial services and on movement of natural persons impose certain obligations on the Community regarding the movement of capital and payments between the Community and third countries Members of the WTO, Whereas, by its nature, the Agreement establishing the World Trade Organisation and the Protocols to the General Agreement on Trade in Services, are not susceptible to being directly invoked in Community or Member States courts, HAS DECIDED AS FOLLOWS: Article 1 The Second Protocol to the General Agreement on Trade in Services concerning 1. financial services is hereby approved on behalf of the European Community with regard to that portion of it which falls within the competence of the European Community: The text of the Second Protocol as well as the following decisions are attached to 2. this Decision : - the Decision of the Committee on Trade in Financial Services adopting the Second Protocol to the General Agreement on Trade in Services, - the Decision of the Council for Trade in Services on Commitments on Financial Services, - the Second Decision of the Council for Trade in Services on financial services 3. The President of the Council is hereby authorized to designate the person empowered to sign the Second Protocol to the General Agreement on Trade in Services in order to bind the European Community with regard to that portion of the Protocol falling within its competence. Article 2 The Third Protocol to the General Agreement on Trade in Services concerning 1. movement of natural persons is hereby approved on behalf of the European Community with regard to that portion of it which falls within the competence of the European Community: The text of the Third Protocol as well as the Decision of the Council for Trade in 2. Services on movement of natural persons commitments are attached to this Decision. 3. The President of the Council is hereby authorized to designate the person empowered to sign the Third Protocol to the General Agreement on Trade in Services in order to bind the European Community with regard to that portion of the Protocol falling within its competence. Done at Brussels,. For the Council The President WORLD TRADE ORGANIZATION Trade in Services S/L/U 24 July 1995 (95-2166) THIRD PROTOCOL TO THE GENERAL AGREEMENT ON TRADE IN SERVICES Members of the World Trade Organization whose Schedules of Specific Commitments to the General Agreement on Trade in Services relating to movement of natural persons are annexed to this Protocol, Having carried out negotiations under the terms of the Ministerial Decision on Negotiations on Movement of Natural Persons adopted at Marrakesh on 15 April 1994, Having regard to the results of such negotiations. Having regard to the Decision on the Movement of Natural Persons adopted by the Council for Trade in Services on 30 June 1995, Agree as follows: 1. The commitments on Movement of Natural Persons annexed to this Protocol relating to a Member shall, upon the entry into force of this Protocol for that Member, replace or supplement the relevant entries on movement of natural persons in the Schedule of Specific Commitments of that Member. This Protocol shall be open for acceptance, by signature or otherwise, by Members concerned 2. until 30th June 1996. 3. This Protocol shall enter into force on the 30th day after 1st January 1996 for those Members which have accepted it by that date, and for those accepting it after that date, which date shall not be beyond 30th June 1996. it shall enter into force on the 30th day following the date of each acceptance. If a Member whose schedule is annexed to this Protocol does not accept it by that date, the matter shall be referred to the Council for Trade in Services for consideration and appropriate action. This Protocol shall be deposited with the Director-General of the World Trade Organization. 4. The Director-General shall promptly furnish to each Member a certified copy of this Protocol and notifications of acceptances thereof pursuant to paragraph 3. This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter 5. of the United Nations. Done at Geneva this - day of [month] one thousand nine hundred and ninety-five, in a single copy in English, Trench and Spanish languages, each text being authentic, except as otherwise provided for in respect of the Schedules annexed hereto. % W O R LD TRADE ORGANIZATION Trade in Services S/UIO 24 July 1995 (95-2164) DECISION ON MOVEMENT OF NATURAL PERSONS COMMITMENTS Adopted by the Council for Trade in Services on 21 July 1995 The Council for Trade in Services, Having regard to the results of the negotiations conducted under the terms of the Decision on Movement of Natural Persons adopted at Marrakesh on 15th April 1994, Having regard to the Decision on the Movement of Natural Persons adopted by the Council for Trade in Services on 30 June 1995, Decides as follows: 1. To adopt the text of the "Third Protocol to the General Agreement on Trade in Services". 2. Commencing immediately and continuing until the date of entry into force of the Third Protocol to the General Agreement on Trade in Services, Members concerned shall, to the fullest extent consistent with their existing legislation, not take measures which would be incoasistent with their undertakings resulting from these negotiations. 3. The Council for Trade in Services shall monitor the acceptance of the Protocol by Members concerned and shall, at the request of a Member/examine any concerns raised regarding the application of paragraph 2 above. 3 WORLD TRADE ORGANIZATION Trade in Services S,L/H 24 July 1995 (95-2165) SECOND PROTOCOL TO THE GENERAL AGREEMENT ON TRADE IN SERVICES Members of the World Trade Organization (hereinafter referred to as the "WTO") whose Schedules of Specific Commitments and Lists of Exemptions from Article II of the General Agreement on Trade in Services concerning financial services are annexed to this Protocol (hereinafter referred to as " Members concerned"), Having carried out negotiations under the terms of the Ministerial Decision on Financial Services adopted at Marrakesh on 15 April 1994, Having regard to the Second Annex on Financial Services, and to the Decision on the application of that Annex adopted by the Council for Trade in Services on 30 June 1995, Agree as follows: A Schedule of Specific Commitments and a List of Exemptions from Article II concerning 1. financial services annexed to this Protocol relating to a Member shall, upon the entry into force of this Protocol for that Member, replace the financial services sections of the Schedule of Specific Commitments and the List of Article II Exemptions of that Member. This Protocol shall be open for acceptance, by signature or otherwise, by the Members concerned 2. until 30 June 1996. This Protocol shall enter into force on the 30th day following the date of its acceptance by 3. all Members concerned. If by 1 July 1996 it has not been accepted by all Members concerned, those Members which have accepted it before that date may, within a period of 30 days thereafter, decide on its entry into force. 4 This Protocol shall be deposited with the Director-General of the WTO. The Director-General ol the WTO shall promptly furnish to each Member of the WTO a certified copy of this Protocol and notifications of acceptances thereof pursuant to paragraph 3. This Protocol shall be registered in accordance with the provisions of Article 102 of the Charter 5. of the United Nations. Done at Geneva this — day of [month] one thousand nine hundred and ninety-five, in a single copy in English, French and Spanish languages, each text being authentic, except as otherwise provided for in respect of the Schedules annexed hereto. yk> W O R LD TRADE ORGANIZATION Trade in Services MVU 24 July 1995 (95-2167) DECISION ADOPTING THE SECOND PROTOCOL TO THE GENERAL AGREEMENT ON TRADE IN SERVICES Adopted bv the Committee on Trade in Financial Services on 21 July 1995 The Committee on Trade in Financial Services, Having regard to the results of the negotiations conducted under the terms of the Decision on Financial Services adopted at Marrakesh on 15 April 1994, Having regard to the Second Annex on Financial Services, and to the Decision on the application of that Annex adopted by the Council for Trade in Services on 30 June 1995, Decides as follows: 1. To adopt the text of the "Second Protocol to the General Agreement on Trade in Services". 2. Commencing immediately and continuing until the date of entry into force of the Second Protocol to the General Agreement on Trade in Services, Members concerned shall, to the fullest extent consistent with their existing legislation, not take measures which would be inconsistent with their undertakings resulting from these negotiations. 3. The Committee on Trade in Financial Services shall monitor the acceptance of the Protocol by Members concerned and shall, at the request of a Member, examine any concerns raised regarding the application of paragraph 2 above. S W O R LD TRADE ORGANIZATION Trade in Services S/L/S 24 July 1995 (95-2162) DECISION ON COMMITMENTS IN FINANCIAL SERVICES Adopted by the Council for Trade in Services on 21 July 1995 The Council for Trade in Services, Having regard to the Second Annex on Financial Services, and the Second Protocol to the General Agreement on Trade in Services, Having regard to the Decision on the Application of the Second Annex on Financial Services adopted by the Council for Trade in Services on 30 June 1995, Noting the results of the negotiations carried out under the terms of the Decision on Financial Services adopted at Marrakesh on 15 April 1994, Decides as follows: If the Second Protocol to the General Agreement on Trade in Services (GATS) does not enter 1. into force in accordance with paragraph 3 therein: (a) (b) Notwithstanding Article XXI of the GATS, a Member may during a period of sixty days beginning on 1 August 1996, modify or withdraw all or part of the Specific Commitments on Financial services inscribed in its Schedule. Notwithstanding Article II of the GATS and paragraphs 1 and 2 of the Annex on Article II Exemptions, a Member may, during the same period referred to in paragraph 1, list in that Annex measures relating to financial services which are inconsistent with paragraph 1 of Article II of the GATS. The Committee on Trade in Financial Services shall establish any procedures necessary for 2. the implementation of paragraph 1. ^ 2- WORLD TRADE ORGANIZATION Trade in Services »L» 24 July 1995 (95-2163) SECOND DECISION ON FINANCIAL SERVICES Adopted by the Council for Trade in Services on 21 July 1995 The Council for Trade in Services, Having regard to the Second Annex on Financial Services, Noting the results of the negotiations carried out under the terms of the Decision on Financial Services adopted at Marrakesh on 15 April 1994, Having regard to the Decision on the Application of the Second Annex on Financial Services adopted by the Council for Trade in Services on 30 June 1995, Decides as follows: 1. Notwithstanding Article XXI of the General Agreement on Trade in Services (GATS), a Member may during a period of sixty days beginning on 1 November 1997, modify or withdraw all or part of the Specific Commitments on Financial Services inscribed in its Schedule. 2. Notwithstanding Article II of the GATS and paragraphs 1 and 2 of the Annex on Article II Exemptions, a Member may, during the same period referred to in paragraph 1, list in that Annex measures relating to financial services which are inconsistent with paragraph 1 of Article II of the GATS. 3. The Committee on Trade in Financial Services shall oversee any negotiations that may lake place prior to the date specified in paragraph 1. It shall also establish any procedures necessary for the application of paragraphs I and 2. The application of this Decision shall be contingent upon the entry into force of the Second 4. Protocol to the General Agreement on Trade in Services. 1} ISSN 0254-1475 COM(96) 154 final DOCUMENTS EN 11 02 09 Catalogue number : CB-CO-96-164-EN-C ISBN 92-78-02579-8 Office for Official Publications of the European Communities !. 2985 Luxembourg H

Proposal for a COUNCIL DECISION regarding the definition and implementation of Community policy in the field of Telecommunications and Postal services

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"40/Ht,'$*à * ^A COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 11. 04. 1996 COM(96) 45 final 96/0042 (CNS) Proposai for a COUNCIL DECISION REGARDING THE DEFINITION AND IMPLEMENTATION OF COMMUNITY POLICY IN THE FIELD OF TELECOMMUNICATIONS AND POSTAL SERVICES (presented by the Commission) EXPLANATORY MKMORANDUM The Commission has decided that a legal basis must be proposed for the budget for the definition and implementation of Community policy in the field of Telecommunications and Postal services (B5-401). This is set out in a Communication of the Commission to the Budgetary Authority (Communication from the Commission on Global Amounts and Basic Act, SEC(94)1106 final, 6. 07. 1994). Areas of the Commission's work on Telecommunications and Posts are defined by Treaty provisions and specified by the Council and the Parliament in Resolutions and Directives. Together these provide a programme of work, generally according to a specific time table. These Treaty provisions, Resolutions and Directives require (or, in the case of certain Resolutions, encourage) the Commission to act in various ways in order to study and lay down objectives and actions which further define and implement the Community Telecommunications and Postal policy, including: - initiating analysis; - drawing up analysis and progress reports; - eliciting comment from industry and the public; - drawing up proposals for legislation; - monitoring the application of legislation; - ensuring the timely availability of European standards and the necessary frequency resources on a pan-European basis; - promoting the implementation and use of new telecommunications services and applications. These actions require a range of support activities, including the commissioning of studies in order to analyse markets, and the organisation of seminars and consultations, technologies, objectives and policies; as well as the submission of mandates to standardisation and frequency bodies. £ The majority of the present work programme is set out in a number of Resolutions and Directives, the most important and recent of which are set out below: defb5401-19 October 1995 1. Council Directive (1990) 1 on access to and use of networks and services. This provides that conditions for access to networks by competing service providers are progressively defined. It sets out a work programme, which requires the Commission to carry out analysis, consult an advisory committee, draw up the European Telecommunications Standards Institute (ETSI) to draw up standards, and make proposals for access conditions. invite public comment, reports, request 2. 3. 4. Council Resolution (1991) on satellite services and equipment2. The Council gave its support to the general goals of the Commission's Green paper on satellite and noted with interest the Commission's intention to propose, where required, the measures necessary to achieve a number of major goals and to analyse the effects on the industry. in the Council Resolution (1993) on the review of the situation telecommunications sector3. The Council, in line with a number of major goals it has identified, supported the Commission's intention to publish green papers on mobile/personal communications and on the future policy for the telecommunications regulatory framework before 1996 in order to achieve liberalisation of all public voice telephony services by 1998. It also outlined as major goals a number of measures to take into account the situation in peripheral regions. to prepare amendments to infrastructure; and The Council approved a Resolution4 in 1994 on the first part of the Commission's Green Paper on Infra struct ure the liberalisation of all infrastructure and the establishment of the regulatory framework necessary for effective liberalisation by 1998; and the presentation by the Commission to the European Parliament and the Council before 1996 of regulatory modifications needed for infrastructure competition. This called for introduction of the 1 Council Directive of 28 June 1990. on for telecommunications services through the implementation, of open network provision, (90/387/EEC; OJL192/1, 24. 07. 90) the establishment of internal market the 2 Council Resolution of 19 December 1991 on the development of the common market for satellite communications services and equipment (92/C 8/01; OJ C8/1, 14. 01. 92) 3 Council Resolution of 22 July 1993 on the review of the situation in the telecommunications sector and the need for further development in that market (93/C 213/01; OJ 93 C213/1, 06. 08. 93) 4 Council Resolution of 22 December 1994 on the principles and timetable for the liberalisation of telecommunications infrastructures (94/C 379/03; OJ C 379/4, 31. 12. 94) 3 5 6. 7 8. defb5401-19 October 1995 Council Resolution (1994) on postal services5 Commission to propose the measures necessary for implementing a Community policy on postal services, and to contribute to the definition of a clear framework for a new terminal dues system. the Commission's Council Resolution (1994) on advanced broadcasting6 The Council the process of welcomed standardisation of digital TV and encourage the development of digital video broadcasting. It invited the Commission to monitor relevant developments in relation to the sector and to propose action which may be appropriate. to encourage intention Council Resolution (1995) on infrastructure liberalisation7 The Council endorsed the results of the public consultation carried out by the Commission on the Green Paper on Infrastructure. It provided a political framework for a common approach on the key regulatory issues of interconnection, universal service and licensing, and requested the Commission to present, by 1 January 1996, the legislative measures necessary in these areas to establish the regulatory framework for the full liberalisation of services and infrastructure. Article 155 (1st indent) of the Treaty provides that the Commission shall ensure the application of Community Law. In this framework a number of directives8 require the Commission to prepare periodical reports to the European Parliament and to the Council regarding the current state of implementation of the directives. Further resolutions are expected from Parliament and from Council during 1995. The Commission proposes that the Council adopt the attached decision, after consulting the European Parliament and the Economic and Social Commitee. 5 Council Resolution of 7 February 1994 on the development of Community postal services (94/C48/02, OJC 48/3, 16. 02. 94) 6 Council Resolution of 27 June 1994 on a framework for Community policy on digital video broadcasting (94/C 181/02, OJ C 181/3, 02. 07. 94) 7 Council Resolution of 18 September 1995 on (lie establishment of the future regulatory framework for telecommunications (not yet published) * In particular. Article 15 of the Terminals directive (Council Directive of 29 April 1991 on the approximation of the laws of the Member States concerning telecommunications terminal equipment, including the mutual recognition of their conformity, 91/263/EEC; OJ L128/1, 23. 05. 91) and Article 14 of the Leased lines directive (Council Directive of 5 June 1992 on the application of open network provision to leased lines. 92/44/EEC; OJ L165/27, 19. 06. 9?). SUMMARY This proposal is being presented in line with the Commission's decision to seek a legal base for a number of budgetary lines, as set out in the Communication of the Commission to the Budgetary Authority (Communication from the Commission on Global Amounts and Basic Act, SEC(94)1106 final, 6. 07. 1994). The areas of the Commission's work on Telecommunications and Posts are defined by Treaty provisions and specified by the Council and the Parliament in Resolutions and Directives. Together these provide a programme of work, generally according to a specific time-table. These Treaty provisions, Resolutions and Directives require (or, in the case of certain Resolutions, encourage) the Commission to act in various ways in order to study and lay down objectives and actions which further define and implement the Community Telecommunications and Postal policy, including the initiation of analysis, eliciting public comments and monitoring the application of legislation. These actions require a range of support activities, including the commissioning of studies and the organisation of seminars and consultations, in order to analyse markets, technologies, objectives and policies; as well as the submission of mandates to standardisation and frequency bodies. These activities are funded from the Budget line B5-401. 6" Proposal for a COUNCIL DECISION REGARDING THE DEFINITION AND IMPLEMENTATION OF COMMUNITY POLICY IN THE FIELD OF TELECOMMUNICATIONS AND POSTAL SERVICES THE COUNCIL OF THE EUROPEAN UNION Having regard to the Treaty establishing the European Community, and in particular Article 235 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament; Having regard to the opinion of the Economic And Social Committee, the development of a regulatory framework; Whereas the objectives of the Community Telecommunications and Postal policy include, in particular, the progressive creation of an open single market in Telecommunications and Postal services through the harmonisation of general principles for access to and use of network infrastructure; the definition of universal service and its means of financing; contribution to Community coherence and cohesion; participating in the promotion of new audiovisual services; the assurance of Community-wide network interconnection and interoperability, in particular through Trans-European Networks for Telecommunications; and the development of external aspects of the Community's policy; Whereas Treaty provisions and Council and Parliament Resolutions and Directives require the Commission to act in various ways, in order to study and lay down objectives and actions which further define and implement the Community Telecommunications and Postal policy; whereas this includes initiating analysis, drawing up analysis and progress reports, eliciting comment from industry and the public, drawing up proposals for legislation, monitoring the application of legislation and ensuring the timely availability of European standards and the necessary frequency resources on a pan-European basis; Whereas these actions require a range of support activities, including the commissioning of studies and the organisation of seminars and consultations, in order to analyse markets, technologies, objectives and policies; the commissioning of work contributing to actions in the area of cohesion and international co-operation; as well as the submission of mandates to standardisation and frequency bodies; Whereas the Treaty does not provide, for the adoption of this Decision, powers of action other than those of Article 235, HAS ADOPTED THIS DECISION: 6 Article 1 This Decision concerns the definition and implementation of Community policy in the field of Telecommunications and Postal Services, and the monitoring of the application of the legislative provisions adopted within the framework of that policy, which are listed in the Annex of this Decision. Article 2 1. The Commission shall be responsible for carrying out the tasks defined in Article 1. 2. In carrying out these tasks, the Commission shall have regard to the objectives of the Community policy in the field of Telecommunications and Postal Services, which include: - creating, on a progressive basis, an open single market in telecommunications services, fixed and mobile infrastructure, and satellite communications, through the development of a regulatory framework, in order to facilitate the transition to the European information society, acknowledging public service obligations; - creating, on a progressive basis, an open single market in postal services, through the development of a regulatory framework and the promotion of efficient and high quality interoperable postal services at affordable prices, acknowledging public service obligations; - ensuring harmonisation of general principles for access telecommunications network standards, where necessary; infrastructure, and the - defining universal service and its means of financing; to and use of timely availability of - fully integrating all regions of the Union, in particular the less favoured, into the emerging European information society, through measures contributing to Community coherence and cohesion; - ensuring the timely availability of frequency resources and numbering systems in a harmonised manner; - developing an open, Community-wide market for telecommunications equipment and terminals; - continuing Community measures regarding common standards in the telecommunications sector; _ - participating in the promotion of the Community-wide introduction of new audiovisual services; - developing the appropriate regulatory framework concerning telecommunications infrastructures and services for the future multimedia environment, where necessary; - contributing to the development of co-operation between the Community and third countries', developing external aspects of the Community's policy; and ¥ - creating or ensuring Community-wide interconnection through Trans-European Networks network and for interoperability, telecommunications, in particular Article 3 For the fulfilment of the tasks defined in article 2, the Commission may undertake any suitable action, in particular: - awarding contracts for the execution of the tasks of analysis, forward studies, specific studies, co-ordination and evaluation, as well as for the co-financing of certain actions; - organising, participating consultations with interested parties, seminars; and supporting dissemination and publication; in and supporting expert meetings, conferences, information - contributing to the development of co-operation between the Community and third countries; and - submitting mandates to standardisation and frequency bodies; - purchasing and operating necessary equipment. Article 4 The control of payments for any services, or preparatory, feasability or evaluation studies requested, shall be carried out by the Commission's services prior to payment, taking into account any contractual obligations, economic principles and good financial or management practice. Anti-fraud provisions (supervision, reporting requirements, etc) shall be included in all agreements and contracts made beween the Commission and the recipient of any payments. Article 5 The Commission shall present to the European Parliament and the Council a report on the execution of these activities, including an evaluation of progress made towards achieving Community objectives, every three years. Done at Brussels, For the Council The President <f> Annex L I ST OF LEGISLATIVE PROVISIONS ADOPTED TO DATE IN THE F I E LD OF TELECOMMUNICATIONS AND POSTS COUNCIL RECOMMENDATION of 12 November 1984 concerning implementation - of harmonisation (S4/549/EEC;OJ L298/49, 16. 11. 84) the telecommunications field of the in COUNCIL RECOMMENDATION of 12 November 1984 concerning the first phase of opening up access contracts (84/550/EEC; OJL298/51, 16. 11. 84) telecommunications to public COUNCIL DECISION of 25 July 1985 on a definition phase for a Community action in the field of telecommunications technologies - R+D programme in advanced communication technologies for Europe (RACE) (85/372/EEC; OJ L210/24, 07. 08. 85) COUNCIL RESOLUTION of 9 June 1986 on the use of vidéoconférence and videophone techniques for intergovernmental applications (86/C 160/01. OJ C160/01, 27. 06. 86) COUNCIL DIRECTIVE of 24 July 1986 on the initial stage of the mutual recognition of terminal equipment type approval for (86/361/EEC; OJ L217/21, 05. 08. 86) telecommunications COUNCIL REGULATION of 27 October 1986 instituting a Community programme for regions of the Community by improving access to advanced telecommunications services (STAR programme) (3300/86/EEC; OJL305/1, 31. 10. 86) the development of certain less-favoured COUNCIL DIRECTIVE of 3 November 1986 on the adoption of common technical specifications of the MAC/packet family of standards for direct satellite television broadcasting (86/529/EEC; OJ L311/28, 06. 11. 86) COUNCIL DECISION of 22 December 1986 on standardisation in the field of telecommunications (87/95/EEC; OJ L36/31, information 07. 02. 87) technology and COUNCIL RECOMMENDATION of 22 December 1986 on the co-ordinated introduction of the Integrated Services Digital Network (ISDN) in the European Community (86/659/EEC; OJ L382/36, 31 12. 86) ^ COUNCIL RECOMMENDATION of 25 June 1987 on the co-ordinated introduction of public pan-European cellular digital land-based mobile communications in the Community (87/371/EEC; OJ LI96/81, 17. 07. 87) COUNCIL DIRECTIVE OF 25 June 1987 on the frequency bands to be reserved for the co-ordinated introduction of public pan-European cellular digital land-based mobile communications in the European Community (87/372/EEC; OJL196/85, 17. 07. 87) COUNCIL DECISION of 5 October 1987 introducing a communications network Community programme on trade electronic data interchange systems (TEDIS) (87/499/EEC; OJ L285/35, 08. 10. 87) COUNCIL DECISION of 14 December 1987 on a Community programme in the field of telecommunications technologies - research and development (R&D) in advanced communications technologies in Europe (RACE programme) (88/28/EEC; OJL16/35, 21. 01. 88) COMMISSION DIRECTIVE of 16 May 1988 on competition in the markets in telecommunications terminal equipment (88/301/EEC; OJ L131/73, 27. 05. 88) COUNCIL RESOLUTION of 30 June 1988 on the development of the common market for telecommunications services and equipment up to 1992 (88/C 257/01; OJC257/1, 04. 10. 88) COUNCIL DECISION of 5 April 1989 amending Decision 87/499/EEC introducing a communications network Community programme on trade interchange systems (TEDIS) (89/241/EEC; OJ L 97/46, electronic data 11. 04. 89) COUNCIL RESOLUTION of 27 April 1989 concerning standardisation in the fields of information technology and telecommunications (89/C 117/01; OJ CI 17/1, 11. 05. 89 COUNCIL DECISION of 27 April 1989 on high-definition (89/337/EEC; OJL142/1, 25. 05. 89) television COUNCIL DIRECTIVE of 3 May 1989 on the approximation of the laws of the Member States relating to electromagnetic compatibility (89/336/EEC; OJ L139/19, 23. 05. 89) COUNCIL RESOLUTION of 18 July 1989 on the strengthening of the co ordination for the introduction of the Integrated Service Digital* Network (ISDN) in the European Community up to 1992 (89/C 196/04; OJ CI96/4, 01. 08. 89) COUNCIL DECISION of 7 December 1989 on the common action to be taken by the Member States with respect to the adoption of a single world-wide high- definition television production standard by the Plenary Assembly of the International Radio Consultative Committee (CCER. ) in 1990 (89/630/EEC; OJ L363/30, 13. 12. 89) ÀO COUNCIL RESOLUTION of 22 January 1990 concerning trans-European networks (90/C 27/05; OJ C27/8, 06. 02. 90) COUNCIL RESOLUTION. of 28 June 1990 on the strengthening of the European-wide co-operation on radio frequencies, in particular with regard to services with a pan-European dimension (90/C 166/02; OJ C 166/4, 07. 07. 90) COUNCIL DIRECTIVE of 28 June 1990 on the establishment of the internal market for telecommunications services through the implementation of open network provision (90/387/EEC; OJ L192/1, 24. 07. 90) COMMISSION DIRECTIVE of 28 June 1990 on competition in the markets for telecommunications services (90/388/EEC; OJ L192/10, 24. 07. 90) COMMISSION DECISION of 30 July 1990 setting up a Joint Committee on Telecommunications Services (90/450/EEC; OJ L230/25, 24. 08. 90) COUNCIL DIRECTIVE of 17 September 1990 on procurement procedures of entities operating in the water, energy, transport and telecommunications sectors (90/531/EEC; OJ L297/1, 29. 10. 90) COUNCIL RECOMMENDATION of 9 October 1990 on the co-ordinated introduction of pan-European land-based public radio paging in the Community (90/543/EEC; OJL310/23, 09. 11. 90) COUNCIL DIRECTIVE of 9 October 1990 on the frequency bands designated for the co-ordinated introduction of pan-European land-based public radio paging in the Community (90/544/EEC; OJ L310/28, 09. 11. 90) COUNCIL RESOLUTION of 14 December 1990 on the final stage of the co ordinated introduction of pan-European land based public digital mobile cellular communications in the Community (GSM) (90/C/ 329/09; OJ C329/25, 31. 12. 90) COUNCIL DIRECTIVE of 29 April 1991 on the approximation of the laws of the Member States concerning terminal equipment, including the mutual recognition of their conformity (91/263/EEC; OJ L128/1, 23. 05. 91) telecommunications the COUNCIL DIRECTIVE of 3 June 1991 on the frequency band to be designated cordless for telecommunications (DECT) into the Community (91/287/EEC; OJ L 144/45, 08. 06. 91) digital European co-ordinated introduction of COUNCIL RECOMMENDATION of 3 June 1991 on the co-ordinated introduction of digital European cordless telecommunications (DECT) into the Community (91/288/EEC; OJL144/47, 08. 06. 91) COUNCIL DECISION of 7 June 1991 adopting a specific research and technological development programme the field of communication technologies (1990 to 1994) (91/352/EEC; OJ L192/8, 16. 07. 91) in M COUNCIL DECISION of 7 June 1991 adopting a specific programme of icsearch and technological development in the field of lelematic systems in areas of general interest (1990 to 1994) (91/353/EEC; OJ L192/18, 16. 07. 91) COUNCIL DECISION OF 22 July 1991 establishing the second phase of the TEDIS programme (Trade electronic data interchange systems) (91/385/EEC; OJL208/66, 30. 07. 91) COUNCIL DECISION of 29 July 1991 on the introduction of a single European emergency call number (91/396/EEC; OJ L217/31, 06. 08. 91) GUIDELINES ON THE APPLICATION OF EEC COMPETITION RULES IN THE TELECOMMUNICATIONS SECTOR (91/C 233/02; OJ C233/2, 06. 09. 91) COUNCIL RESOLUTION of 18 November 1991 concerning electronics, information and communication technologies (91/C 325/02; OJ C325/2, 14. 12. 91) COUNCIL RESOLUTION of 19 December 1991 on the development of the common market for satellite communications services and equipment (92/C 8/01;OJC8/l, 14. 01. 92) laws, COUNCIL DIRECTIVE of 25 February 1992 co-ordinating regulations and administrative provisions relating the application of community rules on the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors (92/13/EEC; OJ L76/14, 23. 03. 92) the to A*L COUNCIL DECISION of 31 March 1992 in the field of security of information systems (92/242/EEC; OJ L123/19, 08. 05. 92) COUNCIL DIRECTIVE of 28 April 1992 amending Directive 89/336/EEC on the approximation of the laws of the member states relating to electromagnetic compatibility (92/31/EEC; OJ L126/11, 12. 05. 92) COUNCIL DIRECTIVE of 11 May 1992 on the adoption of standards for satellite broadcasting of television signals (92/38/EEC; OJ L137/17, 20. 05. 92) COUNCIL DECISION of 11 May 1992 on the introduction of a standard international in the Community (92/264/EEC; OJ L137/21, 20. 05. 92) telephone access code COUNCIL DIRECTIVE of 5 June 1992 on the application of open network provision to leased lines (92/44/EEC; OJ L165/27, 19. 06. 92) COUNCIL RESOLUTION of 5 June 1992 on the development of the integrated services digital network (ISDN) in the Community as a European-wide telecommunications infrastructure for 1993 and beyond (92/C; OJ CI58/1, 25. 06. 92) COUNCIL RECOMMENDATION of 5 June 1992 on the application of open network provision to public packet switched data services (92/382/EEC; OJ L200/1, 18. 07. 92) COUNCIL RECOMMENDATION of 5 June 1992 on the application of open network provision to ISDN (92/383/EEC; OJ L200/10, 18. 07. 92) COMMISSION DECISION of 15 July 1992 amending the lists of standards institutions- annexed to Council Directive 83/189/EEC (92/400/EEC; OJ L221/55, 06. 08. 92) COUNCIL RESOLUTION of 19 November 1992 on the implementation in the Community of the European Radiocommunications Committee Decisions (92/C 318/01; OJC318/1, 04. 12. 92) COUNCIL RESOLUTION of 19 November 1992 on the promotion of Europe- wide co-operation on numbering of telecommunications services (92/C 318/02; OJC318/2, 04. 12. 92) ^b the EUROPEAN PARLIAMENT RESOLUTION of 20 April 1993 on Commission communication "Towards cost orientation and the adjustment of pricing structures - Telecommunications tariffs in the Community" - (A3- 0117/93; OJC150/37, 31. 05. 93) EUROPEAN PARLIAMENT RESOLUTION of 20 April 1993 on the Commission's 1992 review of the situation in the telecommunications services sector (A3-0113/93; OJC150/39, 31. 05. 93) COUNCIL DIRECTIVE 93/38/EEC of 14 June 1993 co-ordinating the procurement procedures of entities of entities operating in the water, energy, transport and telecommunications COUNCIL RESOLUTION of 22 July 1993 on the technology and standards in the field of advanced television services (93/C 209/01; OJ C 209/1, 03. 08. 93) COUNCIL DECISION of 22 July 1993 on an action plan for the introduction of advanced television services in Europe (93/424/EEC; OJ L196/48, 05. 08. 93) COUNCIL RESOLUTION of 22 July 1993 on the review of the situation in the telecommunications sector and the need for further development. in that market (93/C 213/01; OJ C213/1, 06. 08. 93) Telecommunications: open network provision ONP list of standards (third issue) (93/C 219/02; OJ 93/C 219/02, 13. 08. 93) Telecommunications: open network provision for leased lines (93/C 277/04; OJ C 277/9, 15. 10. 93) COUNCIL DIRECTIVE 93/97/EEC of 29 October 1993 supplementing Directive 91/263/EEC equipment (93/C97/EEC: OJL290/1, 24. 11. 93) respect of satellite earth station in COUNCIL RESOLUTION OF 7 December 1993 on the introduction of satellite personal communication services in the Community (93/C 339/01; OJ C339/1, 16. 12. 93) COMMISSION DECISION of 21 December 1993 on a common technical regulation for the general attachment requirements for public pan-European cellular digital land-based mobile communications (94/11/EC; OJ L 8/20, 12. 01. 94) COMMISSION DECISION of 21 December 1993 on a common technical regulation for the telephony application requirements for public pan-European cellular digital land-based mobile communications (94/12/EC; OJ L 8/23, 12. 01. 94) AU COUNCIL RESOLUTION of 7 February 1994 on universal service principles in the telecommunications sector (94/C 48/01; OJ C48/1, 16. 02. 94) Commission Statement concerning Council resolution on universal service in the telecommunications sector (94/C 48/06; OJ C48/8, 16. 02. 94) COUNCIL RESOLUTION of 7 February 1994 on the development of Community postal services (94/C 48/02; OJ C48/3, 16. 02. 94) EUROPEAN PARLIAMENT RESOLUTION of 6 May 1994 on the communication from the Commission accompanied by the proposal for a Council resolution on universal service principles in the telecommunications sector (A3- 0317/94; OJ C 205/551, 25. 07. 94) COMMISSION DECISION of 15 June 1994 on amendment of Annex II of Council Directive 92/44/EEC (94/439/EC: OJ LI81/40, 15. 07. 94) COUNCIL RESOLUTION of 27 June 1994 on' a framework for Community policy on digital video broadcasting (94/C 181/02; OJ C181/3, 02. 07. 94) COMMISSION DECISION of 18 July 1994 on a common technical regulation for attachment requirements for terminal equipment interface for ONP 2 048 kbit/s digital unstructured leased line (94/470/EC OJ L194/87, 29. 07. 94) COMMISSION DECISION of 18 July 1994 on a common technical regulation for general terminal attachment requirements for Digital European Cordless Telecommunications (DECT) (94/471/EC; OJ L194/89, 29. 07. 94) COMMISSION DECISION of 18 July 1994 on a common technical regulation for for Digital European Cordless Telecommunications (DECT) (94/472/EC; OJ LI 94/91, 29. 07. 94) telephony application requirements Telecommunications : Open network provision (ONP) for leased lines - Conciliation procedure (94/C 214/04; OJ C214/4, 04. 08. 94) COMMISSION DIRECTIVE 94/46/EC of 13 October 1994 amending Directive 88/3 01/EEC and Directive 90/388/EEC in particular with regard to satellite communications (OJL268/15, 19. 10. 94) COMMISSION DECISION of 18 November 1994 on a common technical regulation for the pan-European integrated services digital network (ISDN) primary rate access (94/796/EC; OJ L329/1, 20. 12. 94) COMMISSION DECISION of 18 November 1994 on a common technical regulation for the pan-European integrated services digital network (ISDN) basic access (94/797/EC; OJ L329/14, 20. 12. 94) Vf<T COUNCIL RESOLUTION of 22 December 1994 on timetable for 379/03; O JC 379/4, 31. 12. 94) the liberalisation of telecommunications the principles and infrastructures (94/C COUNCIL RESOLUTION of 22 December 1994 on further development of the Community's satellite communications policy, especially with regard to the provision of, and access to, space segment capacity (94/C 379/04; OJ C379/5, 31. 12. 94) Basic policy documents published by the Commission: Green Paper on the development of the Common Market for Telecommunications services and equipment (COM(87)290, 30. 06. 87) Green Paper on a common approach in the field of satellite communications in the European Community (COM(90)490, 28. 11. 90) 1992 Review of the Situation in the telecommunications services sector (SEC(92) 1048) and Communication the consultation on the review of the situation in the telecommunications sector (COM(93) 159 final) the Council and European Parliament on to Green Paper on a common approach communications in the European Union (COM(94)145, 27. 04. 94) in the field of mobile and personal Green Paper on the liberalisation of Telecommunications Infrastructure and cable television networks: Part One (COM(94)440, 25. 10. 94) Green Paper on the development of the single market for postal services (COM(91)476, 11. 06. 92) Guidelines for the development of Community postal services; Communication from the Commission to the Council and the European Parliament (COM(93)247, 02. 06. 93) Green Paper on the liberalisation of Telecommunications Infrastructure and Cable TV networks, Part Two (COM(94)682, 25. 1. 95). Communication on Digital Video Broadcasting, A Framework for Community Policy, COM (93) 557 final, 17. 11. 93. Ai F I N A N C I AL S T A T E M E NT 1. Title of Action "Proposal for a Council Decision regarding the definition and implementation of Community policy in the field of Telecommunications and Postal services" 2. Budget Line B5-401 (see title above) 3. Legal Basis Article 235 4. Description 4. 1 Specific Objectives of the Action The actions covered by this budget line are aimed at supporting the definition and implementation of Community policy in the field of Telecommunications and Postal Services, and the monitoring of the application of the legislative provisions adopted within the framework of that policy, as required by Treaty provisions and by the Council and the European Parliament. The specific objectives of the Community Telecommunications and Postal policy include, in particular: - creating, on a progressive basis, an open single market in telecommunications services, fixed and mobile infrastructure, and satellite communications, through the development of a regulatory framework, in order to facilitate the transition to the European information society, acknowledging public service obligations; - creating, on a progressive basis, an open single market in postal services, through the development of a regulatory framework and the promotion of efficient and high quality interoperable postal services at affordable prices, acknowledging public service obligations; - ensuring harmonisation of general principles for access to and use of timely availability of telecommunications network standards, where necessary; infrastructure, and the - defining universal service and its means of financing; Ai- - fully integrating all regions of the Union, in particular the less favoured, into the to through measures contributing information society, emerging European Community coherence and cohesion; - ensuring the timely availability of frequency resources and numbering systems in a harmonised manner; - developing an open, Community-wide market for telecommunications equipment and terminals; - continuing Community measures regarding common standards in the telecommunications sector; - participating in the promotion of the Community-wide introduction of new audiovisual services; - developing the appropriate regulatory framework concerning telecommunications the future multimedia environment, where infrastructures and services for necessary; - contributing to the development of co-operation between the Community and third countries; developing external aspects of the Community's policy; and - creating or ensuring Community-wide interconnection through Trans-European Networks network and for interoperability, in telecommunications. particular The support actions include the commissioning of studies and the organisation of seminars and consultations, in order to analyse markets, technologies, objectives and policies; the commissioning of work contributing to actions in the area of cohesion and international co-operation; as well as the submission of mandates to standardisation and frequency bodies. 4. 2 Duration Legal basis with an indeterminate duration, evaluated every three years 5. Classifications - Non-obligatory expenditure - Dissociated credits Al 6. Nature of Spending - 100% funding: - Award of contracts for the execution of the tasks of analysis, forward studies, specific studies, co-ordination and evaluation. - Submission of mandates to standardisation and frequency bodies as well as expenditure related to the dissemination of standards in the different Community languages. - Purchase and operation of necessary equipment. - Organisation, participation in and support of expert meetings, conferences, consultations with interested parties, seminars and information dissemination and publication. - Funding for co-financing with other sources of the public or private sector: - Award of contracts for the co-financing of actions. "*- Multiclient studies. Any revenue will be available for re-use, in accordance with Article 27 of the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities (OJ No L356, 31. 12. 1977, p. l ), as last amended by Regulation (ECSC, EC, Euratom) No 2730/94 (OJ No L293, 12. 11. 1994, p. 7). 7. Financial implication for commitment credits 7. 1 Method of calculation of the cost of the action for the 1996 exercise The financial implications of pursuing these objectives are continuously evaluated on the basis of experience of developing Community policy on telecommunications and posts since 1984, taking into account foreseeable elements of the policy in the coming years. The effort up until 1998 will continue to focus on strategic aspects, owing to the very rapid development of technology, markets and trade in these sectors (particularly the telecom sector), as well as on the continuing action of monitoring the application of Community legislation. The regulatory area will continue to be the subject of a substantial effort, since it is necessary to complete the législation in the areas already identified, and to adapt it to new developments. Lastly, a more intensive level of preparatory work should be ensured on the question of Community cohesion (whose operational aspects are /9 financed by the structural funds or financial instruments aimed at economic re-launching), particularly in view of the Treaty on European Union. The whole range of activities will have to take on a new dimension following the proposals introduced in the White Paper on Growth, Competitivity and Employment, particularly as regards the implementation of information highways. Moreover, the presentation to the Council and European Parliament, as required by them, of specific measures in the areas of posts as well as telecommunications infrastructure liberalisation, will involve an increase of activity. Finally, the addition of three new Member States brings an increase in the total amount of work, particularly in the area of monitoring and implementation of Community measures. 7. 2 Breakdown by elements of action Breakdown 95 Budget 96 APB 97 APB Strategic development Development of markets Community cohesion Regulatory area TOTAL 2. 2 2. 8 0. 6 2. 9 8. 5 2. 4 3. 0 0. 6 2. 5 8. 5 2. 6 3. 0 0. 8 2. 6 9. 0 Commitment credits in MECUs 7. 3 Schedule for pluriannual actions Year 1995 1996 1997 1998 and following years 8. 5 8. 5 9 pm Commit ment Credits (Commitment credits in MECUs) £b 8. Anti-fraud measures foreseen (and the result of their implementation) The control of payments for any services, or preparatory, feasibility or evaluation studies requested, is carried out by the Commission's services prior to payment, taking into account any contractual obligations, economic principles and good financial or management practice. Anti-fraud provisions (supervision, reporting requirements, etc) will be included in all agreements and contracts made between the Commission and the recipients of any payments. 9. Elements of cost-effectiveness analysis 9. J Objectives and target audience Between 1993 and 1995 approximately ten legislative measures were prepared each year in the area of the regulation of the sector and the technical co-ordination of the development of services. For 1996 to 1998 it is difficult to make an estimation in the legislative area, owing to political uncertainties which may arise. However, it is clear that in addition to adaptations of measures already taken, further legislation will be necessary to meet the requests set out by the Council, in particular in its resolutions on the liberalisation of public voice telephony services and telecommunications infrastructure. Target audience: governments, Telecommunications network operators, service providers, users, social partners. 9. 2 Justification of the Action The Commission is obliged both by Treaty provisions and by the Council and the European Parliament to define and implement Community policy in the field of telecommunications and postal services, and these objectives can only be properly carried out with the backing of support activities, given the complex and fast-changing nature of the sector. 9. 3 Follow-up and evaluation of the action implementation of Community policy Monitoring and ensuring in the field of telecommunications and postal services is an integral part of the action itself, and is required by a number of Directives. Records of implementation progress by country are infringement procedures are launched where necessary, and kept up to date, implementation reports on particular Directives are presented to the European Parliament and the Council on a regular basis. In addition, the Commission will present to the European Parliament and the Council a global report on the execution of the activities, including an evaluation of progress made towards achieving Community objectives, every three years. i * * * * * £i ISSN 0254-1475 COM(96) 45 final DOCUMENTS EN 06 16 Catalogue number : CB-CO-96-056-EN-C ISBN 92-78-00247-X Office for Official Publications of the European Communities L-2985 Luxembourg

96/282/Euratom: Commission Decision of 10 April 1996 on the reorganization of the Joint Research Centre

http://publications.europa.eu/resource/cellar/dc7a401c-7947-47e9-a195-e3b5b02c9598

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L_1996107EN. 01001201. xml 30. 4. 1996    EN Official Journal of the European Communities L 107/12 COMMISSION DECISION of 10 April 1996 on the reorganization of the Joint Research Centre (96/282/Euratom) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Atomic Energy Community and in particular Articles 8 and 131 (2) thereof, Having regard to the opinion of the Board of Governors of the JRC, Whereas the Joint Research Centre (JRC) pursuant to Commission Decision 85/593/Euratom of 20 November 1985 on the reorganization of the Joint Research Centre (JRC) (1), as last amended by Decision 93/95/Euratom (2), and by Decision 94/809/Euratom (3), is given a structure which is appropriate for the tasks assigned to it; Whereas this structure shall be modified whenever the Commission considers it to be necessary to ensure the optimum efficiency of the JRC activities and the full conformity of the latter with the priorities of the Commission; Whereas the Commission has decided, on 16 January 1996 that the JRC becomes an independent Directorate-General of the Commission in order to entrust to it the management autonomy necessary for the proper implementation of its tasks; Whereas Decision 85/593/Euratom and its amendments should be replaced accordingly by the present Decision, HAS DECIDED AS FOLLOWS: Article 1 The Joint Research Centre, hereinafter referred to as the ‘JRC’, shall consist of the establishments set up by the Commission to carry out the Community's research programmes and other tasks entrusted to it by the Commission. Article 2 The organs of the JRC shall be: — the Director-General, — the Board of Governors, — the Scientific Committee, Article 3 The JRC shall be under the authority of a Director-General appointed by the Commission. The Director-General and a part of the services directly under him shall be located in Brussels. The Director-General shall take all measures necessary for the efficient functioning of the JRC consistent with the regulations in force and the authority delegated to him. In accordance with the procedures hereinafter described, the Director-General: — shall prepare draft programmes for the JRC's various fields of activity for submission to the Commission, indicating the financial aspects thereof, — shall establish a strategy for the JRC, particularly with regard to competitive activities, and take the appropriate measures to ensure their execution, — shall negotiate and conclude research contracts with third parties, — shall be responsible for the implementation of programmes and for financial administration, — shall determine the internal organization of the JRC, particularly taking into account the requirements of the budget, — shall, within the limits of the powers delegated to him, exercise the powers conferred upon the appointing authority by the Staff Regulations of officials and upon the authority empowered to conclude contracts by the conditions of employment of other servants. Article 4 1. A Board of Governors of the JRC is hereby set up. It shall consist of the following members: (a) a high-level representative from each Member State, appointed by the Commission on the basis of nominations by the authorities of the State in question; (b) a chairman elected by the representatives of the Member States referred to in point (a). All members shall be appointed for a renewable three-year term. 2. The Board of Governors shall assist the Director-General and deliver opinions for submission to the Commission on questions relating to: — the role of the JRC within the Community research and technological development strategy, — the scientific/technical and financial management of the JRC and the performance of the tasks entrusted to it. As regards matters delegated to the Director-General by the Commission and in line with all matters which concern the Board of Governors in particular, the Director-General shall call for the opinion of the Board of Governors on his proposals before they are applied. The prior opinion of the Board of Governors is necessary for any question submitted for a Commission decision. The Board of Governors shall deal in particular with: (i) the proposals for specific programmes to be implemented by the JRC as well as proposals for other new tasks to be assigned to the JRC; (ii) the preparation of the multiannual strategic planning covering all JRC activities, and each year, not later than 31 December, the corresponding annual work plan indicating the objectives of each work programme for the following year and including a summary description of the programme with key dates, scientific references and estimated expenditure; (iii) the follow-up of the specific research and technology development programmes of the JRC: — their implementation, paying particular attention to their consistency with the needs of the Community, — the coherence of their development with the specific indirect action programmes under the framework programmes; to this end, the Board of Governors will organize once a year exchanges of views with the relevant programme committees, — any possible adjustments thereto; (iv) the follow up of relations with other Commission services and third parties on the customer/contractor principle; (v) the strategy for the JRC's competitive activities and their follow up; (vi) the formulation of proposals for the JRC annual budget and the monitoring of its implementation; (vii) — organization of the JRC, — its financial management, — major investments, — implementation of its research acitivities, — evaluation of the latter by ‘visiting groups’ composed of independent experts and the follow up of their recommendations; (viii) staff policy, with special emphasis on: — the formulation of proposals concerning JRC staff policy, — the aspects linked to staff mobility and exchanges of scientific and technical staff with public and private bodies in the Member States; (ix) the appointment and the prolongation or termination of the functions of high-level JRC staff. 3. The Board of Governors shall issue opinions on the basis of the majority required by Article 118 (2) of the EAEC Treaty, the votes being weighted in accordance therewith. The Chairman shall not vote. The Commission shall take the utmost account of the opinions issued by the Board of Governors. In the absence of the assent of the Board of Governors to a proposal by the Director-General, it shall be referred to the Commission, which shall decide the matter. The Board of Governors shall be informed of the Commission's decision. The Council shall be informed without delay if the decision is not in keeping with the opinion of the Board of Governors. It shall also be informed of the reasons for the decision. If the Commission does not accept an opinion issued by the Board of Governors on matters requiring a decision by the Commission, the implementation of measures relating to such matters shall be postponed for one month; during this month the matters in question shall be referred back to the Board of Governors and a new opinion shall be requested. On receipt of this opinion or at the end of the month in question, the Commission shall take a final decision and shall inform the Board of Governors thereof. If it is unable to accept the opinion of the Board of Governors, the Commission shall inform the Council of its decision and of the reasons for the decision without delay. The Commission shall keep the Board of Governors informed of its decisions relating to the JRC in respect of any matter on which the Board of Governors has issued an opinion. The Board of Governors may, through the Commission, submit opinions to the Council and European Parliament on all matters relating to the JRC. 4. The Board of Governors shall submit its observations on the annual management report drawn up by the Director-General. These observations, together with the annual management report as approved by the Commission, shall be sent to the Council and to the European Parliament. The Board of Governors shall advise the Director-General with regard to the organization of the evaluation of the tasks performed by the JRC, in connection both with the scientific and technical results and with the administrative and financial management of the Centre; it shall also provide advice about the selection of independent experts called upon to participate in this evaluation. The Board of Governors shall submit its own comments on the results of these evaluations. 5. The Board of Governors shall meet at least four times a year. The Board of Governors shall draw up its rules of procedure, including rules concerning the organization of its work. The JRC shall provide the secretariat for the Board of Governors and shall make available to it any information it may require. Article 5 A scientific committee of the JRC is hereby set up to assist the Director-General. One half of the Scientific Committee shall be composed of members designated by the Director-General from among the main heads of unit or project managers and the high-level scientific staff, and the other half shall be composed of representatives of the scientific and technical staff elected by that staff. The Scientific Committee shall be regularly consulted by the Director-General on all questions of a scientific or technical nature relating to the activities of the JRC. In this connection, it shall, in particular, take part in the preparation of draft programmes. Article 6 1. Having due regard to the general policy adopted by the Council and the European Parliament and to the general guidelines issued by the Commission, the Director-General shall prepare the draft programmes for he JRC's fields of activity. 2. The Board of Governors shall be consulted on the draft programmes. 3. The Commission shall examine the draft programmes in the light of the general policies of the Community and taking account of the budgetary situation of the latter. It shall adopt the proposals in accordance with the provisions of the Treaty and lay them before the Council. Article 7 1. The Director-General shall be responsible for the proper execution of the programmes assigned to the JRC. He shall direct, by his decisions, the activities of the Institutes and services, and in particular decide between the alternative methods of implementing the programmes' objectives. 2. He shall provide the Commission with all the information it needs to draw up the reports required by Article 11 of the Euratom Treaty. 3. The Director-General shall ensure, as necessary, that successive programmes are properly coordinated and inter-related, during implementation and preparation, taking into account particularly the scientific and industrial infrastructure of the JRC. The Director-General shall arrange a review of the programmes which shall take place every two years. Article 8 1. Each year the Director-General shall make an estimate of the funds required for the implementation of the programmes, to allow for the drawing up of the corresponding part of the preliminary draft budget of the Communities. This estimate shall include a forecast of revenue and expenditure in respect of work executed by the JRC for competitive activities. Article 6 shall apply, mutatis mutandis, to the preparation of preliminary draft budgets for research activities. 2. Expenditures of the JRC shall be authorized by the Director-General; he shall sign payment orders and receipts; he shall conclude contracts and authorize transfers of funds. 3. The Director-General shall submit to the Commission at the end of the financial year a statement of revenue and expenditure for that financial year. 4. The Commission shall appoint the officer responsible for the control of commitments and the authorization of expenditures as well as the control of receipt of revenues. 5. The Commission shall appoint an accounting officer responsible for the payment of expenditure and receipt of revenue and for the handling of funds and securities, for the safe custody of which he shall be responsible. Article 9 1. Within the limits of powers delegated to him, the Director-General shall have such powers over the staff as are conferred upon him by the appointing authority. 2. However, in respect of officials and other servants of grades A1 and A2, the powers laid down in Articles 29, 49, 50 and 51 and Title VI of the Staff Regulations shall be exercised by the Commission on a proposal from the Director-General. 3. The Director-General shall, on behalf of the Commission, take all measures necessary to ensure the safety of persons and installations for which he is responsible. Article 10 The Director-General may delegate to the Deputy Director-General and to the Directors the powers conferred on him. Done at Brussels, 10 April 1996. For the Commission Édith CRESSON Member of the Commission (1)  OJ No L 373, 31. 12. 1985, p. 6. (2)  OJ No L 37, 13. 2. 1993, p. 44. (3)  OJ No L 330, 21. 12. 1994, p. 64

Proposal for a COUNCIL REGULATION (EC) amending Regulation (EC) No 384/96 on protection against dumped imports from countries not members of the European Community

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 10. 04. 1996 COM(96) 145 final 96/0103 (ACC) Proposal for a COUNCIL REGULATION (EC) amending Regulation (EC) No 384/96 on protection against dumped imports from countries not members of the European Community (presented by the Commission) Explanatory Memorandum On 28 April Î995, a GATT panel released a report of its examination of a dispute between the Community and Japan concerning anti-dumping duties imposed by the Community against imports of audio cassettes from Japan. The panel found in favour of the Community on several points but on one issue it considered that Community legislation was not wholly in line with its international obligations. r This issue concerned the comparison between the prices on the domestic market of the exporting country ("normal value") and the prices from that country to the Community ("export price") which is the basis for establishing dumping margins. More specifically, the point at issue was which adjustments should be made to either price for differences in the selling expenses incurred in making such sales in order to make them comparable. In this respect, the panel considered that Community legislation was too restrictive in confining allowances to a specific and exhaustive list. On the grounds that it is conceivable that differences, other than those listed in Community legislation, may (depending on the precise terms of sale agreed between buyer and seller at the time of sale) affect price levels and hence price comparability, it is considered important, in order to ensure legal certainty, to amend the Community's anti dumping legislation so that allowances could be made for such other costs. Clearly, any such allowance should be dependent on the exporter demonstrating an effect on price comparability as required by Article 2. 4 of the new WTO Anti-Dumping Agreement. Moreover, it is also appropriate to clarify the requirements for an adjustment for differences in levels of trade when information on price effects for two levels of trade does not exist for the market concerned or when, despite prices being at the same level, an adjustment may be appropriate for expenses, such as advertising, which in certain circumstances may be more suitably allocated to other levels of trade; The full contents of the panel report is still being examined by the relevant services of the Commission and an analysis of the report will be submitted to the Council in the near future. In the meantime, in order to avoid conflict with our trading partners, it is desirable to proceed with this amendment. Therefore, the Commission submits to the Council: • a proposal to amend paragraph 10 of Article 2 of Council Regulation (EC) No 384 of 22. 12. 951. 1 OJ No L 56 of 6. 3. 96 1 Council Regulation (EC) amending Regulation (EC) No 384/96 on protection against dumped imports from countries not members of the European Community THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof, Having regard to the proposal from the Commission1, Having regard to the opinion of the European Parliament2 Whereas by Regulation (EC) No 384 of 22 December 19953 the Council has adopted common rules for protection against dumped imports from countries which are not members of the European Community; Whereas paragraph 10 of Article 2 of Regulation (EC) No 384/96 provides for a limited number of allowances which can be made to the normal value and export prices before these are compared to establish whether dumping is taking place; whereas since it is conceivable that differences in selling expenses, other than those listed in the said Regulation, may in certain circumstances affect price comparability, it is prudent to eliminate the exclusive nature of this provision in relation to allowances. Whereas it is also appropriate to clarify the requirements for an adjustment for differences in levels of trade when information on price effects for two levels of trade does not exist for the market concerned or when, despite prices being at the same level, an adjustment may be appropriate for expenses, such as advertising, which in certain circumstances may be more suitably allocated to other levels of trade. HAS ADOPTED THIS REGULATION: 3 OJ No L 56 of 6. 3. 96 2> Regulation (EC) No 384/96 shall be amended as follows: Article 1 1. Sub-paragraph (d) of Article 2. 10 shall be replaced by the following: (d) Level of trade An adjustment for differences in levels of trade, including any differences which may arise in OEM (Original Equpment Manufacturer) sales, shall be granted where, in relation to the distribution chain in both markets, it is shown that the export price, including a constructed export price, is at a different level of trade to the normal value. An effect on price comparability must be demonstrated by evidence which confirms a clear distinction between the prices for the different levels of trade on the domestic market of the exporting country. However, where information relating to such price effects does not exist for that market, or where certain functions are shown to relate to levels of trade other than those which are to be compared, a special adjustment may be granted. 2. The following sub-paragraph (k) shall be added after Article 2. 10 (j): (k) Other factors An adjustment may also be made for differences in other factors provided it is demonstrated that they affect price comparability as required under this paragraph, in particular that customers take account of such differences on their own market by agreeing to prices which are distinct from those agreed on the same market when there are no such differences. " This Regulation shall apply to proceedings initiated after 1 January 1996. Article 2 This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, ^ ISSN 0254-1475 COM(96) 145 final DOCUMENTS EN 02 Catalogue number : CB-CO-96-149-EN-C ISBN 92-78-02425-2 Office for Official Publications of the European Communities L-2985 Luxembourg

Proposal for a Council Decision concerning the conclusion of two Agreements between the European Community and the State of Israel on procurement by government and telecommunications operators

http://publications.europa.eu/resource/cellar/3e787447-370e-4971-9a18-104c5fda9fc8

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+ *^ *'* "* -k •k I COMMISSION OF THE EUROPEAN COMMUNITIES | 1 Brussels, 10. 04. 1996 COM(96)148 final %)t 01Q4 (CNS) Proposal for a COUNCIL DECISION concerning the conclusion of two Agreements between the European Community and the State of Israel on procurement by government and telecommunications operators (presented by the Commission) EXPLANATORY MEMORANDUM The EC and Israel were key participants in the negotiations which led to the WTO's new Government Procurement Agreement (GPA). These negotiations were successfully completed in parallel with the Uruguay Round. For its part, the EC concluded the GPA on 22 December 19941. Israel, however, delayed ratification pending an expansion of coverage to include the procurement of telecommunications equipment in the EC. As part of the negotiations toward an EU-Israel Association agreement, both parties reaffirmed their commitment to mutually open their respective procurement markets and in a joint declaration annexed to the draft Association agreement, they agreed to carry out negotiations with a view to reaching an agreement before the end of 1995. Those negotiations, carried out in consultation with the Committee set up under Article 113 of the Treaty, were completed on 22 December 1995 and resulted in the two draft agreements attached. As a result of reaching these agreements, Israel subsequently ratified the GPA prior to its entry into force on 1 January 1996. As the two draft agreements were negotiated in parallel with each other in accordance with the joint declaration cited above and the advice of the Committee set up under Article 113 of the Treaty, they form one package. The Commission therefore proposes that the two are concluded together. Nevertheless, a possible termination of one agreement in the future does not necessarily affect the operation of the other agreement. The European Court of Justice, by its judgement of 7 March 1996 in the case C-3 60/93 concerning the 1993 EU-US procurement agreement, stated that, as Community law stands at present, only transfrontier services fall within the scope of article 113 of the treaty. Since the Agreements to be concluded with Israel also concern services whose nature cannot be considered as merely transfrontier, it is proposed that Articles 113, 66, 57(2) and 228(3) form the legal base for the two draft agreements. This would imply a consultation of the European Parliament. Government Procurement The first draft agreement covers government procurement. For the most part, it complements and broadens the scope of commitments under the GPA. The parties agree to notify such additional commitments to the WTO and incorporate them into the GPA coverage. As such, these commitments would be backed up by the WTO's dispute settlement mechanism. Some limited commitments are made outside the scope of the GPA. This draft agreement represents real progress in the EU's goal to continue to open up public procurement markets beyond what has already been achieved in the GPA. In spite of the fact that at the time of completing negotiations the new GPA had not entered into force, as a result of the draft agreement, Israel will be committed to further market opening in urban transport, services, medical equipment and sub-central government ]OJ No L 336, 23. 12. 1994, p. 1 t procurement. For its part, the EC would open those same sectors to Israel on a reciprocal basis. The draft agreement also safeguards EC interests should the Israel market open further. Negotiations did not lead to any change in offset provisions permitted under the GPA. The latter permits Israel to require the limited incorporation of domestic content or offset procurement of up to 35 per cent of the contract. Over a period of nine years this limit is reduced to 20 per cent while thereafter Israel will review its offset policy in consultation with other GPA members. (i) The addition of urban transport (except buses), a sector where the EC is particularly competitive and successful in international markets, virtually completes the coverage of utilities sectors by Israel in the GPA (total spending in this sector accounts for roughly ECU 1. 2 billion annually). This addition guarantees that EC suppliers will be able to compete on an equal footing as Israel and/or its municipalities develop urban metro systems. In the EC, the provisions of Article 36 of the Utilities Directive (93/38/EEC)2 would be disapplied against tenders comprising products of Israeli origin as a result of this draft agreement. (ii) As service coverage under the GPA operates only on the basis of strict reciprocity, the addition by Israel of three services which are already contained in the EC's GPA Annex, increases mutual coverage. (iii) The removal of one product coverage exception by Israel (a certain type of bandage) is welcome. Given that at the point of finishing negotiations the new GPA had not even entered into force, Israel was unwilling, at this stage, to consider removing all product coverage exceptions which it had successfully negotiated in the GPA. Nevertheless, of the product exceptions in the field of medical equipment, the one removed as a result of the draft bilateral agreement is one which the EC successfully exports to Israel (about 14 tonnes a year) and therefore is potentially of most economic value. The European textile industry specifically requested the coverage of this exception under our bilateral agreement. (iv) On sub-central procurement not yet covered by the GPA, Israel was not in a position to guarantee GPA procurement and challenge procedures. However, by agreeing to grant EC suppliers national treatment above a specified threshold, Israel disapplies domestic price preferences for EC suppliers, thus opening up the market for procurement opportunities beyond what was originally covered in the GPA. (v) Finally, to safeguard EC suppliers against potential discrimination resulting from agreements between Israel and other GPA parties, the draft agreement commits Israel to grant the same benefits to the EC. Telecommunications procurement The second draft agreement, on telecommunications procurement, is purely bilateral. It is, therefore, a stand-alone agreement with no impact on coverage under the GPA. It provides for a mutual opening of procurement by telecommunications operators by granting an exchange of national treatment. In the main segment of telecommunications procurement, provision is made to enhance transparency and guarantee suppliers' rights by setting out minimum procurement and national challenge procedures. While this does not imply any procedural change for European operators, the main Israeli operator, 2OJ No L 199, 9. 8. 93, p. 84 1 Bezeq, is obliged to follow procedures based on those set out in the GPA. The agreement is enforced through the bilateral dispute settlement procedure provided for in the interim Association Agreement (and subsequently the Association Agreement when it enters into force). It is a liberal and broad agreement with no product exceptions. This means that there would be a mutual dismantling of domestic price preference provisions. In Israel, a price preference of 15% in favour of Israeli products would not apply against EC bidders. In the EC, the provisions of Article 36 of the Utilities Directive (93/38/EEC)2 would be disapplied for tenders comprising products of Israeli origin. With regard to the offset provision, the agreement ensures that the EC would benefit from better terms than Israel provides under the GPA and the offset is to be eliminated after a transition period of five years. While the Israeli market is small (procurement opportunities will be around ECU 170 million in 1996 for switching and cable equipment), it is a growing market. Moreover, as the Middle-East peace process may help to bring about regional economic integration, successful penetration into the Israeli market could lead to further opportunities in neighbouring countries. * * * The two draft agreements build on the closer political and economic relationship established between Israel and the EC under the draft Association Agreement, making a concrete contribution to the region's economic development and political stabilisation. They offer the EC more favourable treatment than Israel has been prepared to offer any other third country, bringing further economic opportunities to EC suppliers. Moreover, the draft agreements protect such suppliers from further discrimination should access to the Israeli market improve as a result of negotiations with other third countries. They provide for joint review of progress made and for areas where further improvement can be achieved in the future. Their conclusion would send a positive message to the ongoing GATS negotiations, in particular those in the field of telecommunications services and government procurement. As a further result of the telecommunications procurement agreement, Israel has decided to participate in the GATS basic telecommunications services negotiations. * * * The main elements of the agreements reached on 22 December 1995 are as follows: 1. Public procurement Israeli commitments. GPA: • Ratification of the 1996 GPA • Coverage of urban transport sector under the 1996 GPA (with the exception of buses) V • Extension of list of services covered under the GPA, thus increasing mutual coverage • With regard to the EC, removal of a product coverage exception (specific medical bandage) under Annex 1 of its GPA offer, Further bilateral concessions • as regards municipalities not covered under the GPA, national treatment for EC above a threshold of 550,000 SDR • MFN treatment for the EC with regard to any changes on coverage exceptions, thresholds and offset requirements in the GPA. EC Commitments: GPA • extend the benefits of its GPA offer to Israel with regard to the urban transport sector (except buses). 2. Telecommunications procurement The main elements of this agreement are: Exchange of national treatment above and below thresholds, including mobile and cable operators. Israel to remove a 15% price preference provision. EC to disapply the application of Article 36 of the Utilities directive with regard to tenders containing goods of Israeli origin. In the case of Israel's main operator, Beseq, Israel applies GPA procurement and challenge procedures. EC applies Utilities Directive procedures and Remedies Directive. Thresholds - Israel has a lower threshold than the EC for telecommunications equipment but a higher threshold for construction. No product exceptions. Israel maintains an offset provision of up to 30% of the contract value which will expire after 5 years. This is below the offset granted to Israel in the GPA (35%). Dispute settlement is provided for, using the provisions of the draft Association Agreement. Linked to the conclusion of the telecom procurement agreement, Israel has joined the ongoing GATS negotiations on the liberalisation of basic telecom services. j The Council is invited to approve the agreements and adopt the proposal for a Decision concerning the conclusion of two Agreements on government procurement and telecommunications procurement between the EC and Israel. c Proposal for a Council Decision concerning the conclusion of two Agreements between the European Community and the State of Israel on procurement by government and telecommunications operators THE COUNCIL OF THE EUROPEAN UNION; Having regard to the Treaty establishing the European Community, and in particular Articles 113, 66, 57, second paragraph, in connection with article 228, third paragraph, first sentence, and fourth paragraph thereof; Having regard to the proposal of the Commission, Having Parliament, regard to the opinion of the European Whereas the Agreements between the European Community and the State of Israel on procurement by government and telecommunications operators should be approved, Whereas these agreements concern public procurements to award contracts for goods, works and other services; whereas the latter cannot be reduced to the sole hypothesis of transfrontier services; whereas in its recent judgement of 7 March 1996 the Court of Justice has indicated that, in the present state of Community law, article 113 of the Treaty is not sufficient to base a Council decision to conclude an agreement which concerns, on an independent basis, the provision of services whose nature cannot be considered as merely transfrontier; whereas it is therefore appropriate to base the present decision also on article 66 of the treaty, in conjunction with article 57, second paragraph, which provides the procedural requirements necessary for its application; Whereas it is appropriate that the Council authorises the Commission, in consultation with a special committee to be appointed by the Council, to approve modifications on behalf of the Community of the Annexes I and II of the telecommunications agreement; however, such authorisation will be limited, as far as the Annex I is concerned, to the modifications resulting from the application of the procedure of article 8 of the Council Directive 93/38/EEC of 14 June 1993, and as far as Annex II is concerned, to the results of future negotiations within the framework of the GPA. HAS DECIDED AS FOLLOWS: 1- Article 1 The Agreements between the European Community and the State of Israel on procurement by government and telecommunications operators are hereby approved on behalf of the Community. The texts of the Agreements are attached to this Decision, Article 2 The President of the Council is hereby authorised to designate the person empowered to sign the Agreements in order to bind the Community. Article 3 The Commission is authorised to approve, on behalf of the Community, modifications to Annexes I and II of the telecommunications agreement. The Commission is assisted in this task by a special committee appointed by the Council. The authorisation referred to in paragraph 1 of this Article shall be limited, as far as Annex I is concerned, to the modifications that will be necessary if the procedures laid down in article 8 of Council Directive 93/38/EEC were to be applied and, as far as Annex II is concerned, to the results of future negotiations to be conducted in the framework of the 1996 Government Procurement Agreement (GPA). Done at Brussels, For the Council The President 2 AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE STATE OF ISRAEL ON PROCUREMENT BY TELECOMMUNICATIONS OPERATORS The EUROPEAN COMMUNITY (hereinafter "the EC"), of the one part, and THE GOVERNMENT OF THE STATE OF ISRAEL, acting on behalf of the State of Israel (hereinafter "Israel"), of the other part, hereinafter referred to as the "Parties", CONSIDERING the Parties' efforts and commitments to liberalize their respective public procurement markets notably through the draft EC-Israel Association Agreement of 20 November 1995, and the Government Procurement Agreement (1996 GPA), DESIROUS to pursue liberalization efforts among themselves by granting reciprocal access to procurement by their respective telecommunications operators, subject to the conditions provided for in this agreement, Have agreed as follows: Article I Objective, Definitions and Scope The aim of this Agreement is to secure a reciprocal, transparent and non discriminatory access of the Parties' suppliers and services providers to purchases of products and services, including construction services, by telecommunications operators of both Parties. For the purpose of this Agreement: (a) (b) "telecommunications operators" (hereinafter referred to as "TOs") shall mean entities that provide or operate public telecommunications networks or provide one or more public telecommunications services and which either are public authorities or undertakings or operate on the basis of special or exclusive rights granted by a state authority, "public telecommunications network" shall mean the telecommunications infrastructure available to the public which enables signals to be conveyed between defined network termination points by wire, microwave, optical means or other electromagnetic means, (c) "public telecommunications services" shall mean services the provision of which consists wholly or partly in the transmission and routing of signals on the public telecommunications network by means of telecommunications processes, with the exception of radio-broadcasting and television. This Agreement applies to any law, regulation or practice affecting procurement by the Parties' TOs as defined in paragraph 1 and to the award of all procurement contracts by such TOs. Annex I contains a list of the TOs covered by this Agreement. The Parties shall update this list as appropriate. Article 3 on procurement procedures and Article 4 on challenge procedures shall apply only to contracts, or series of contracts, awarded by TOs listed under A in Annex I the estimated value of which, excluding VAT or comparable turnover tax, is not less than: in the case of the EC (a) 600,000 ECU as regards supplies and services; (b) 5,000,000 ECU as regards construction services, in the case of The State of Israel (a) 355,000 SDR as regards supplies and services, (b) 8,500,000 SDR as regards construction services. The value of SDR in NIS shall be fixed in accordance with the procedures applied in the Government Procurement Agreement (1996 GPA). With regard to services, including construction services, this Agreement applies to those listed in Annex II of this Agreement. This Agreement shall not apply to contracts, awarded by TOs, that are operating under full and effective competition in accordance with relevant legislation. This legislation shall be applied following the notification to and review by the other Party. Each Party shall promptly inform the other Party about those services in regard to which such contracts are excluded by this paragraph from the provisions of the Agreement. " This Agreement shall not be applicable to the award of contracts entered into before 1 January 1997 by TOs established in Spain or to the award of contracts entered into before 1 January 1998 by TOs established in Portugal or Greece. Israel will not extend the benefits of this Agreement to suppliers and service providers established in these countries for the respective periods. " 3. 4. 5. 6. 7. AJO Article 2 Non-Discrimination 1. The Parties shall ensure that, in all their procurement procedures and practices and in the award of procurement contracts, regardless of the threshold referred to in Article 1(5), TOs duly established in their respective territories shall not: (a) treat products, services, suppliers and service providers of the other Party less favourably than (i) domestic products, services, suppliers and service providers; and (ii) third country products, services, suppliers and service providers. treat a locally-established supplier or service provider less favourably than another locally-established supplier or service provider on the basis of the degree of affiliation to, ownership of or control by natural or legal persons from the other Party, discriminate against a locally-established supplier or service provider on the basis of the fact that the product or service being supplied originates from the other Party. (b) (c) 2. As a result of the principles set out in paragraph 1, any offsets prescribed in the qualification and selection of products, services, suppliers or service providers, or in the evaluation of tenders and award of contracts shall be prohibited. Likewise, any law, procedure or practice, such as price preference, local content requirements, local investment or production requirements, terms of licence, authorisation, funding or bidding rights which discriminate, or require a Party's TO to discriminate, against the other Party's products, services, suppliers or service providers in the award of procurement contracts shall be prohibited. By way of derogation from the first two sentences of this paragraph and until 1 January 2001, Israel may, with regard to procurement contracts by TOs listed under A of Annex I, apply provisions which require the limited incorporation of domestic content, offset procurement or transfer of technology in the form of objective, clearly defined and non-discriminatory conditions. Such requirements shall be used only for qualification to participate in the procurement process and not as criteria for awarding contracts. They shall be notified to the EC and applied under the following terms: lD (a) Israel shall ensure that TOs listed under A in Annex I indicate the existence of such conditions in its tender notices and specify them clearly in the contract documents. (b) Suppliers will not be required to purchase goods that are not offered on competitive terms, including price and quality, or to take any action which is not justified from a commercial standpoint. M (c) Offsets in any form may be required up to 30 per cent of the contract. At the end of two years, Parties will examine the implementation of this provision on the basis of a report submitted by Israel. 3. 4. The principles set out in paragraph 1 shall also apply with regard to the treatment granted by the Parties and their TOs listed under A in Annex I in the context of challenge procedures. * The Parties shall apply the provisions of the Agreement on Technical Barriers to Trade of the WTO with regard to procurement by their respective TOs. S Article 3 Procurement Procedures The Parties shall ensure that the procurement procedures and practices followed by their TOs listed under A in Annex I comply with the principles of non discrimination, transparency and fairness. Such procedures shall at least contain the following elements: (a) (b) (c) (d) (e) the call for competition shall be made by means of a tender notice inviting submission of tenders, an indicative notice or a notice on the existence of a qualification system. These notices, of a summary of the important elements thereof, shall be published at least in one of the 1996 GPA official languages on a national level or, as regards the EC, on a Community level. They shall contain all necessary information about the intended procurement, including where applicable the type of award procedure being followed; time-limits shall be adequate to allow suppliers or service providers to prepare and submit tenders; tender documentation shall contain all information necessary, notably technical specifications and selection and award criteria, to enable tenderers to submit eligible tenders. Tender documentation shall be forwarded to suppliers or service providers upon request; selection criteria shall be objective. Where a TO runs a qualification system, such a system shall operate on the basis of pre-defined and objective criteria and the procedure and conditions for participation shall be made available upon request, award criteria may be either the most economically advantageous, involving specific evaluation criteria such as delivery or completion date, cost-effectiveness, quality, technical merit, after-sales service, commitments with regard to spare parts, price, etc. , or the lowest price only. The Parties shall also ensure that their TOs listed under A in Annex I define the technical specifications set out in the tender documentation in terms of performance rather than design or descriptive characteristics. Such specifications shall be based on international standards, where such exist, otherwise on national technical regulations, recognized national standards or building codes. Any technical specifications adopted or applied with a view to, or with the effect of, creating obstacles to procurement by a Party's TO of products or services from the other Party and to related trade between the Parties shall be prohibited. J2 Article 4 Challenge Procedures 1. 2. 3. With respect to procurements by TOs under A in Annex I, the Parties shall provide non-discriminatory, timely, transparent and effective procedures enabling suppliers or service providers to challenge alleged breaches of this Agreement arising in the context of procurements in which they have, or have had, an interest. The challenge procedures laid down in Annex III shall apply. The Parties shall ensure that their respective TOs listed under A in Annex I retain relevant documentation relating to procurement procedures covered by this Agreement for at least three years. The Parties shall ensure that decisions taken by bodies responsible for challenge procedures are enforced effectively. Article 5 Information Exchange To the extent necessary to ensure effective implementation of this Agreement, the Parties shall, upon the request of either Party, exchange information on legislation, other measures or imminent changes affecting or likely to affect TOs' procurement policies or practice. Article 6 Dispute Settlement 1. 2. The Parties shall seek to resolve any dispute concerning the interpretation or application of this Agreement by means of prompt consultations. If a dispute has not been settled by means of consultations within three months from the date of the initial request for consultations, either Party may refer the dispute to the EC-Israel Cooperation Council in accordance with Article 32 of the Interim Association Agreement, and, as from its entry into force, to the EC-Israel Association Council in accordance with Article 75 of the Association Agreement. ^V Article 7 Safeguard 1 If either Party considers that the other Party has failed to fulfil an obligation under this Agreement or if one Party fails to take measures specified in the decision by the arbitration panel or if a law, regulation or practice of either Party substantially reduces or threatens to reduce substantially the benefits accruing to the other Party under this Agreement, and the Parties are unable to agree promptly on appropriate compensation or other remedial action, the adversely affected Party may, without prejudice to its other rights and obligations under international law, suspend partly or completely, as appropriate, the application of this Agreement and immediately notify the other Party thereof. 2. The scope and duration of such measures shall be limited to what is necessary in order to remedy the situation and to secure, if necessary, a fair balance of rights and obligations under the Agreement. Article 8 Consultations The Parties shall, upon the request of either Party, and at least once a year, hold consultations on the functioning of this Agreement. Article 9 Information Technology The Parties shall cooperate with a view to ensuring that the type of procurement information, notably in tender notices and documentation, held on their respective databases is comparable in terms of quality and accessibility. Likewise, they shall cooperate with a view to ensuring that the type of information exchanged through their respective electronic means between interested parties for the purposes of public procurement is comparable in terms of quality and accessibility. Paying due attention to issues of interoperability and interconnectivity, and after having agreed that the type of procurement information referred to in paragraph 1 is comparable, the Parties shall secure reciprocal access of suppliers and service providers of the other Party to relevant procurement information, such as tender notices, held on their respective databases They shall also ensure reciprocal access of suppliers and service providers of the other Party to their respective electronic procurement systems, such as electronic tendering. The Parties shall also take due account of Article XXIV(8) of the 1996 GPA. Article 10 Final Provisions 1. This Agreement is drawn up in duplicate in the Danish, Dutch,, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Hebrew languages, each of these texts being equally authentic. It shall apply to the same territories as mentioned in Article 38 of the Interim Agreement on trade and trade related matters and, as from its entry into force, in Article 83 of the Association Agreement. 2. 3. 4. 5. This Agreement shall enter into force on the first day of the month following the date on which the Parties have notified each other that their ratification or conclusion or adoption process, according to the rules applicable to each Party, has been completed. This Agreement does not affect the rights and obligations of the Parties under the WTO or other multilateral instruments concluded under the auspices of the WTO. The Parties shall complete a review of the functioning of this Agreement not later than three years from the date of its entry into force with the aim of improving its operation, if necessary. This Agreement is concluded for an unlimited period. If a Party wishes to withdraw from this Agreement, it shall notify the other Party in writing of its intention. The withdrawal shall take effect six months from the date on which the notification was received. 6. The annexes to this Agreement shall form an integral part thereof. v// Annex I (referred to in Article 1(3) on TOs covered) List of TOs* European Community A - Belgacom (Belgium) - Tele Danmark A/S and subsidiaries (Denmark) - Deutsche Bundespost Telekom (Germany) - OTE/Hellenic Telecom Organisation (Greece) - Telefonica de Espana S. A. (Spain) - France Telecom (France) - Telecom Eireann (Ireland) - Telecom Italia (Italy) - Administration des postes et télécommunications (Luxembourg) - Koninklijke PTT Nederland NV and subsidiaries (Netherlands) - Portugal Telecom S. A. and subsidiaries (Portugal) - British Telecommunications (BT) (United Kingdom) City of Kingston upon Hull (United Kingdom) - Ôsterreichischc Post und Tclekommimikation (PTT) (Austria) - Telecom Finland (Finland) - Telia (Sweden) B mobile telecommunication operators cable operators when they provide telecommunication services Israel Bezeq B mobile telecommunication operators cable operators when they provide telecommunication services international operators (licence pending) and successor entities thereto. Air Annex lï CPC Description 6112,6122,633,886 Maintenance and repair services 874, 82201 - 82206 Building-cleaning services and property management services 88442 8672-3 8671 8674 841-3 871 864 865-6 94501-5 Publishing and printing services on a fee or contract basis Architectural services Engineering services Urban planning Computer and related services Avertising services Market research and public opinion Management consulting Environmental services IS Annex III (referred to in Article 4 on challenge procedures) Challenges shall be heard by a court or by an impartial and independent review 1. body having no interest in the outcome of the procurement, the members of which are secure from external influence and the decisions of which are legally binding. A review body which is not a court shall either be subject to judicial review or shall have procedures which provide that: (a) the time-limit, if any, within which a challenge procedure may be initiated, shall in no case be less than 10 days and shall run from the time when the basis of the complaint is known or reasonably should have been known; (b) participants shall be heard before a decision is reached, they may be represented and accompanied during the proceedings and shall have access to all proceedings; (c) witnesses may be presented and documentation relating to procurement under challenge and necessary to the proceedings shall be disclosed to the review body; (d) proceedings shall take place in public and decisions shall be given in writing and shall state the reasons on which they are based, 2. The Parties shall ensure that measures concerning challenge procedures include at least either provisions for. the powers: (a). (b) to take, at the earliest opportunity and by way of interlocutory procedure, interim measures with the aim of correcting the alleged infringement or preventing further injury to the interests concerned, including measures to suspend or to ensure the suspension of the procedure for the award of a contract or the implementation of any decision taken by the TO; and to set aside or ensure the setting aside of decisions taken unlawfully, including the removal of discriminatory technical, economic or financial specifications in the tender notices, in the tender documentation or in any other document relating to the contract award procedure in question. ; ' or provisions for powers enabling to exert effective indirect pressure on the TOs in order to make them correct any infringements or prevent them from committing infringements, and to prevent injury from occurring. 3. Challenge procedures shall also provide for the award of damages to persons injured by the infringement. Where damages are claimed on the grounds that a decision has been taken unlawfully, either Party may provide that the contested decision must first be set aside or declared illegal. M Article 1(6) side letters Dear of Israel, In accordance with Article 1(6) of the draft agreement between the European Community and Israel on procurement by telecommunications operators, I hereby notify that the relevant legislation referred to is Council Directive 93/38/EEC, and in particular, its Article 8. I have transmitted a copy of this legislation through diplomatic channels. from the EC Dear of the EC, Further to your letter of todays date and recent discussions between our services, I can inform you that Israel has completed its review of the legislation (Council Directive 93/38/EEC and in particular , its Art 8) that you notified under Article 1(6) the draft agreement between Israel on procurement by telecommunications operators. the European Community and from Israel. 2o Agreed minutes As regards the Agreement on the procurement by telecommunications operators, the two Parties agree that with respect to Israel Article 3 of the Agreement requires the application of procurement procedures as specified in the 1996 GPA. As regards the EC, the procurement procedures set out in Council Directive 93/38/EEC of 14 June 1993 co ordinating the procurement procedures of entities operating in the water, energy, transport and telecommunications sectors (OJ No L 199, 09. 08. 1993, p. 84) fulfil the requirements of Article 3 of this Agreement. 2A AGREEMENT BETWEEN THE EUROPEAN COMMUNITY AND THE STATE OF ISRAEL ON GOVERNMENT PROCUREMENT THE EUROPEAN COMMUNITY (hereinafter "the EC"), of the one part, and THE GOVERNMENT OF THE STATE OF ISRAEL, acting on behalf of the State of Israel (hereinafter "Israel"), of the other part, hereinafter referred to as the "Parties", CONSIDERING the Parties' efforts and commitments to liberalize their respective public procurement markets through the Government Procurement Agreement (1996 GPA); DESIROUS to improve access to their respective procurement markets and to broaden the scope of their respective Appendices I to the GPA; Have agreed as follows: Article 1 Obligation of the EC In order to complement and broaden the scope of its commitments under the GPA 1. vis-à-vis Israel, the EC undertakes to amend its General Notes to Appendix I of the GPA as follows: alter General Note 1, second indent, letter (e) to read: "(urban transport) to the suppliers and service providers of Canada, Japan, Korea and the USA; to the suppliers and service providers of Israel, as regards bus services"; The EC shall notify the WTO Secretariat of such amendment within one month 2. from the entry into force of this Agreement. 2Z- Article 2 Obligations of Israel In order to complement and broaden the scope of its commitments under the GPA 1. vis-à-vis the EC, Israel undertakes to amend its Annexes and Notes to Appendix I of the GPA as follows: (a) add to the List of Entities in Annex 3: ". All entities operating in the field of urban transport, except those operating in the field of bus services. "; (b) add to Note 2 in Annex 3 the following paragraph: "With regard to procurement by entities operating in the field of urban transport, except those operating in the field of bus services, this Agreement shall apply only to goods and services, including construction services, of the European Community. " Israel is willing to negotiate the opening of procurement by entities operating in the field of urban transport, except those operating in the field of bus services, to other code members under the condition of reciprocity (c) add the following services to the list of Annex 4: 6112, 6122, 633, 886 Maintenance and repair services 874, 82201 - 82206 88442 building -cleaning services and property management services Publishing and printing services on a fee or contract basis " The Parties agree that Israel shall use its best endeavours to extend its list of services under the GPA with regard to the EC, in accordance with the terms provided for in Article 4(4) of this Agreement. (d) Amend Note 1 to Annex 1, the following: Medical dressings (bandages, adhesive tapes excluding gauze bandage and gauze pads) Israel shall notify the WTO Secretariat of such amendments within one month 2. from the entry into force of this Agreement. £3 3. Notwithstanding Article 2(d) above, if Israel, with respect to another GPA Party, reduces or disapplies its exceptions as set out in Notes to Annex 3 in the 1996 GPA, it shall offer the same benefit to the EC on a reciprocal basis. Israel will not, by law, procedure or practice, require hospitals not covered under the 1996 GPA to discriminate against EC's products, services or suppliers. Without prejudice to any separate agreement between the Parties to this agreement, with regard to its offset requirements and procedures and its thresholds' levels, Israel shall treat EC suppliers, service providers, products and services no less favourably than other GPA Parties' suppliers, service providers, products and services. With respect to the procurements above a threshold of 550,000 SDR by the 4. municipalities not covered by the List of Entities in Annex 2 of the 1996 GPA Israel shall treat product, services and suppliers of the EC no less favourably than domestic products, services and suppliers. Israel shall use its best endeavours to apply to these procurements the procedures set out in the GPA. To this end Israel will submit in due time to the GPA Secretariat a list of entities to be added to the present Annex 2 to the GPA under the condition of reciprocity. Article 3 Consultations The Parties shall, upon the request of either Party, and at least once a year, hold consultations on the functioning and implementation of this Agreement. This provision shall be without prejudice to the consultation procedures provided for by the GPA. Article 4 Final Provisions 1. This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Hebrew languages, each of these texts being equally authentic. It shall apply to the same territories respectively of the EC and of Israel as the GPA applies. This Agreement shall enter into force on the first day of the month following the 2. date on which the Parties have notified each other that their ratification or conclusion or adoption process, according to the rules applicable to each Party, has been completed. This Agreement does not affect the rights and obligations of the Parties under the 3. WTO or other multilateral instruments concluded under the auspices of the WTO. The Parties shall complete a review of the functioning of this Agreement not later 4. than three years from the date of its entry into force with the aim of improving its operation and coverage, if necessary. zi ISSN 0254-1475 COM(96) 148 final DOCUMENTS EN 11 Catalogue number : CB-CO-96-160-EN-C ISBN 92-78-02546-1 Office for Official Publications of the European Communities L-2985 Luxembourg 2i

XXVth REPORT ON COMPETITION POLICY (1995)

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 10. 04. 1996 COM(96) 126 final XXVth REPORT ON COMPETITION POLICY (1995) (presented by the Commission) •r'M •ê'€C Mu I 'M £38? Mm f. f-*; "( • •teas'"*?",' ?:Kîb - i n f. 1 K TABLE OF CONTENTS Page Introduction I. Anti-trust : Articles 85 and 86 A. Ensuring the benefits of the internal market 1. 2. 3. 4. 5. 6. 7. Car distribution Restrictions on parallel trade Restrictions on access to the market by new entrants Green Paper on vertical restraints Cross-border credit transfers Leniency programme Access to the file B. Cooperation and competition in a rapidly changing and increasingly global economic environment 1. The application of articles 85 and 86 in the telecommunications sector 1. 1 Strategic alliances 1. 2 Access and interconnection agreements 2. Globalization of markets 3. Transfer of technology C. Transport 1. Maritime transport 1. 1 Liner shipping consortia 1. 2 Inland rate fixing by ship liner conferences 2. Air transport 2. 1 IATA tariff consultations 2. 2 Cooperation between airlines Trans-European networks and competition rules Competition and environment Secondary product markets Liberal professions Subsidiarity and decentralization De minimis agreements 1. 2. Decentralization Statistical overview D. E. F. G. H. I. 12 12 12 13 15 17 17 19 19 20 20 20 22 23 23 24 24 24 25 26 26 26 27 28 29 30 31 31 31. 33 II. State monopolies and monopoly rights : Articles 37 and 90 A. Introduction 1. 2. 3. Services of general economic interest at the heart of the Commission's liberalization policy Article 90(3) Directives Other instruments available to the Commission B. Telecommunications 1. 2. 3. 4. 5. General measures Cable TV liberalization directive. Mobile telephony liberalization directive Full competition directive Infringement proceedings under Article 90(3) C. D. E. Energy Postal services Transport 1. 2. Airports 1. 1 Landing fees 1. 2 Ground handling Ports F. Other state monopolies of a commercial character 1. 2. 3. 4. Swedish and Finnish alcohol monopolies Austrian alcohol monopoly Austrian salt monopoly Austrian manufactured tobacco monopoly III. Merger control A. B. Introduction In-depth investigations 1. 2. Media cases Other in-depth investigations C. D. E. F. G. Other major cases Legitimate interests of Member States Mergers in the coal and steel industries Perrier Statistical overview IV. State aid A. General policy 35 36 36 36 37 38 38 38 39 40 41 42 43 43 43 44 44 45 45 45 46 46 46 48 48 48 48 50 52 53 54 54 55 57 57 New measures to enforce compliance with the notification requirement 58 58 59 Recovery of illegal aid Cooperation between the Commission and national courts 1. 2. B. Concept of aid C. Assessment of compatibility of aid with the common market 1. Sectoral aid 1. 1 Sectors subject to specific rules 1. 1. 1 Aid to shipbuilding 59 62 62 62 62 1. 1. 2 Steel 1. 1. 3 Coal 1. 1. 4 Motor vehicle industry 1. 1. 5 Synthetic fibres industry 1. 1. 6 Transport 1. 1. 7 Agriculture 1. 1. 8 Fisheries 1. 2 Specific sectors not subject to special rules 1. 2. 1 Banking 1. 2. 2 Postal sector 1. 2. 3 The audiovisual sector 2. Horizontal aid 62 63 63 65 65 68 69 70 70 71 71 72 72 2. 1 Research and development 73 2. 2 Employment aid and general social measures 75 2. 3 Aid for environmental protection 2. 4 Aid to small and medium-sized enterprises (SMEs) 75 76 2. 5 Export aid 76 2. 6 Rescue and restructuring aid 78 2. 7 Treuhandanstalt 3. Regional aid D. Procedures (rights of complainants) E. Statistics V. International activities A. B. European Economic Area Central and Eastern Europe, Baltic States, New Independent States and Mediterranean countries 1. 2. 3. Central and Eastern Europe Baltic States, Slovenia and New Independent States Mediterranean countries and Mercosur C. D. E. F. North America Japan Australia and New Zealand Multinational organizations and other international issues 1. 2. 3. 4. OECD World Trade Organization UNCTAD International cooperation VI. Information policy Annex : cases discussed in the report 78 78 79 82 82 82 82 83 83 84 85 85 85 85 86 86 86 88 89 Introduction 1. A competitive environment as a prerequisite for competitiveness 1. to play in ensuring that EU industry remains competitive. It is widely recognized that competition policy has a key role Competition policy serves as an instrument to achieve the optimal allocation of resources, technical progress and the flexibility to adjust to a changing environment. In that respect, competition and competitiveness belong together. Experience shows that only those companies which are used to strong competition and perform well in open and dynamic markets will be able to function effectively on a wider scale - be it in other geographic areas or in a more global economy in general. Competition policy and competitiveness policy are thus not contradictory but rather serve the same goals of creating the essential conditions for the development and maintenance of an efficient and competitive Community industry, bringing better products and services to European citizens, and providing a stable economic environment. 2. Internal market and competition policy 2. The complementarity between those two policies is also clearly shown by the Community's objective of creating an internal market. On the one hand, the internal market is an essential condition for the development of an efficient and competitive industry. On the other hand, competition policy is an important tool for achieving the goal of, and maintaining, an internal market, in particular via the enforcement of rules ensuring that the regulatory barriers to trade which have been removed are not replaced by private or other public restrictions having the same effect. 2. 1 Factors affecting competition in the internal market 3. While the legislative steps spelt out in the 1985 Commission White Paper on the internal market have almost all been adopted and transposed at national level, preliminary evidence suggests that some product and service markets remain fragmented. 1 Internal market integration, in tandem with the progressive globalization of markets, is expected to widen geographic markets (not necessarily to Community level - relevant geographic markets may contain a distinct set of regional or national areas). It may therefore redefine the structural parameters of the market within which the implications of actions of public- or private-sector operators for competition must be judged. No definitive judgement can be made at this early stage as to whether the pro-competitive impact of the internal market has manifested itself. In some markets, there is tentative evidence that competition is increasingly defined at a supranational level, while in others there is reason to believe that markets remain segmented along national lines. The latter can be explained by reference to a range of factors which must be taken into account when assessing the consequences of internal market integration in terms of the geographical expansion of "relevant markets". 4. A first factor relates to the effectiveness of legislative action (and ancillary measures such as European standardization) in During 1996 the Commission intends to present the findings of an overall analysis of the impact and effectiveness of the internal market programme pursuant to Council Resolution 92/1218 of 7 December 1992. dismantling legal and administrative barriers to cross-border transactions. Where the legislative framework is incomplete or inadequate, the Commission intends to press for its reinforcement. There may also be situations where there are no entry barriers but where discrepancies in national arrangements result in differences in economic conditions that are capable of distorting trade and competition (e. g. pharmaceutical pricing, taxation, monetary fluctuations). Where these factors result in differences in economic conditions between national markets, leading operators to distinguish between them, this may need to be taken into account in defining the relevant market for competition. "Natural barriers" such as language, taste and habits, or structural characteristics which reduce the tradability of products or services, may also require that national markets be regarded as separate entities. These issues have arisen in the context of the Commission's investigation of mergers in TV broadcasting and the media sector, where linguistic and cultural factors require that the EU market be regarded as consisting of a series of distinct national markets. This cultural diversity contributes to the richness of our shared European heritage and must be taken into account in the analysis of cases by the Commission, even if cases of dominance are more frequently encountered as a result (Nordic 'Satellite; RTL/Veronica/Endemol). 2. 2 Role of competition policy 5. While internal market integration shapes the economic context within which Community competition policy must be applied, it is also the case that the application of Community competition policy will help to reinforce the functioning of a single market. Three main areas of activity can be identified: anti-competitive agreements and practices, the regulated or monopolized sectors, and state aid. It is an essential consideration here that the Commission has at its disposal a set of interdependent competition policy instruments. The anti-trust rules, merger control, the policing of state aid and the rules on liberalization, all serve the same objective of ensuring that competition in the internal market is not distorted. 6. The Commission is vigilant in applying Community competition rules where firms attempt to stifle the pro-competitive effects emanating from internal market integration through anti-competitive behaviour designed to sustain market segmentation. Examples of behaviour which give rise to such concern are restrictions on parallel trade, certain types of vertical agreements and/or distribution systems, and unjustified refusal to provide (non-discriminatory) access to facilities which third parties require in order to compete. 7. The liberalization of traditionally monopolized markets, such as utilities, is an essential step in the establishment of an internal market. It is strongly believed that, without a stronger and more competitive base in the fields of energy, public transport and telecommunications, the European economy, including consumers and medium-sized enterprises, will be at a disadvantage. 2 The Madrid European Council in December 1995 concluded that it is essential to introduce increased competition in different sectors in order to enhance competitiveness and so create new jobs. The Commission has therefore pursued its efforts to open up these markets to competition and intra-Community trade while ensuring that the measures proposed or adopted are compatible with the performance by public services of tasks Competitiveness Advisory Group, Enhancing European Competitiveness, Second Report to the President of the European Commission, the Prime Ministers and Heads of State, December 1995 ("Ciampi Report"). In the same context, it is argued that "what matters most is not so much that the ownership - and management - of public utilities moves from the State to the private sector, as that competition is introduced and extended wherever possible". of general economic interest, such as the provision of a universal service to all citizens at affordable prices. 8. Telecommunications is a strategic area of considerable interest for the European Union3. Ongoing liberalization of this sector has forced telecom operators to launch new services and to reduce prices. Both industry and consumers benefit from the opening-up of telecom markets. The introduction of competition in this sector is also vital to facilitate the transition to the information society, and thus for our ability to survive in an increasingly competitive and global market. In this context, cultural diversity and equal access to the new services are essential objectives that need to be addressed. Much of the legislation at Community level has either been adopted or is well under way for complete liberalisation by 1998. This must of course be transposed into national legislation and effectively applied in order to ensure the introduction of real competition. The role of the Commission will not be reduced once the legislative acts are in place. On the contrary, the Commission must ensure that, once removed, the legal barriers will not be replaced by agreements or practices of a similar nature, such as anti-competitive mergers, market-sharing agreements, abusive behaviour of the incumbents against newcomers -for example, by denying non-discriminatory access to essential facilities- or by illegal state aid. Where exclusive rights are maintained in reserved areas, cross-subsidization of the operator's non-reserved areas should be avoided. In the meantime, industry moves on to anticipate new emerging markets. New alliances having global implications have been submitted to the Commission for scrutiny. The Commission's assessment of these cases demonstrates how the existing competition rules, when applied realistically, are capable of grasping the dynamics of innovation and globalization. But newly emerging markets is not a password for approval. While alliances should be allowed, or even encouraged when pro-competitive, they cannot be accepted where they thwart or threaten the demonopolization process. Where big players join forces, the Commission should aim to prevent market foreclosure. 9. To an even greater degree than the télécoms sector, the air transport sector, where full liberalization will be completed by the end of 1997, demonstrates that legislation is necessary but not sufficient to achieve a fully competitive environment. In this sector, where airlines fight to secure or retain a sufficient share of a modestly growing and competitive market, there is an ever-present danger that the incumbents might use unfair methods to protect their interests. Strict application of competition rules, mainly in the field of state aid and control of abusive behaviour, is absolutely necessary. In particular, state aid is seen as a counterproductive measure which tends to protect the inefficient against the efficient, simply delaying the necessary restructuring. State aid might even be used to fight new competitors by means of predatory pricing and other measures. While restructuring is necessary to achieve efficiency gains and competitiveness in a growing market, the Commission has to make sure that a high degree of concentration does not foreclose routes and slots, thereby re-erecting legally removed barriers. 10. Energy is another key factor for industry and was mentioned as such in the Ciampi Report. However, this year has not produced any real progress in the liberalization of this sector. Green Paper on the liberalization of telecommunications infrastructure and cable television networks : Part One (COM(94) 440, 25. 10. 1994) and Part Two (C0M(94) 682, 25. 01. 1995). 11. According to the fourth survey on state aid in the European Union, published in 1995, the total amount of national aid in the period 1990-1992 has decreased, but - at around ECU 94 billion on average per year for the Community as a whole - is still too high for the Commission's objectives to be attained, notably with respect to the richer Member States. Vast amounts of state aid are not the way to achieve competitiveness. They delay necessary restructuring, distort competition between the companies and regions, and are a burden on public budgets. However, it would be unrealistic to suggest that all state aid be simply eliminated, and this has never been envisaged by the authors of the Treaty or by the Commission. Market forces alone, in a market which is not perfect, do not allow the attainment of certain fundamental objectives of the Member States and the European Union, such as economic and social cohesion, a sufficient degree of R&D and environmental protection, the development of SMEs, and the necessity of allowing time for structural adjustment, in particular for social reasons. For the Commission, it is essential to ensure that, where state aid is allowed by derogation, the negative effects on competition and trade between Member States are limited to what is strictly necessary and that they are offset by the realization of objectives of general Community interest. 3. International cooperation 12. The increasing globalization of the world economy and the changing pattern of modern trade makes international cooperation between competition authorities inevitable. First, companies operating worldwide must be aware of, and must comply with, differing competition laws and practices in different jurisdictions. This necessarily entails a cost for the companies concerned. Moreover, when transactions fall within the jurisdiction of multiple competition authorities, there is an increased risk of conflicting measures being imposed. Competition authorities for their part may have difficulties in gaining access to information evidencing an anti-trust violation located outside their jurisdiction. Alternatively, competition rules aimed at preserving effective competition on the home market may be less effective in dealing with anti-competitive conduct at the global level. Finally, it is widely recognized that greater application of competition rules must accompany trade liberalization if it is to be effective - private barriers must not replace dismantled public barriers. For all these reasons greater cooperation at international level is clearly in the interests of industry and consumers. 13. On a bilateral level, the Agreement with the United States (confirmed in April 1995 by the Council) already offers scope for cooperation and its provisions on coordination of enforcement activities to some extent allow the parties to work together to tackle anti-competitive situations affecting the EU and US markets. In a report on competition policy in the new trade order drafted by it at the request of Mr Van Miert, an independent group of experts recommends as a "priority" the deepening of the current EC/US Agreement. It also formulates recommendations in relation to plurilateral cooperation as it believes that bilateral agreements cannot of themselves adequately address all the problems which could arise at international level. 4. Role of the Commission in applying the competition rules 14. It is fair to say that the development phase of Community competition policy is completed. Policy and law are now well established through the Commission's administrative practice and the principles developed by the European Courts. On the other hand, the Commission has at its disposal limited resources to deal with an ever- increasing number of cases. In 1995 in particular, the number of new cases, especially state aid and Articles 85/86 cases, increased significantly as a result of the accession of three new Member States. 15. Accordingly, the Commission has been considering how to focus on those arrangements which have a significant effect on competition and are likely to affect trade between Member States appreciably. For this purpose, several instruments and concepts have already been developed. Preparatory work is under way to broaden and refine them further. Particularly relevant in this respect are the application of the de minimis principle (in the fields of both anti-trust and state aid) , group exemptions (which allow firms to make agreements without notifying them to the Commission so as to obtain legal certainty) , and the notion of Community interest in the case of complaints. 16. Where the Commission must deal as a priority with cases having an appreciable effect on intra-Community competition, the role of national authorities and courts in competition cases becomes more important. The decentralized application of the competition rules is often a quicker and more efficient way to bring infringements to an end. More frequent application by national courts and authorities reminds the Community citizen that these rules are part of the "living law" of each Member State and are aimed at protecting their rights. 17. The Commission therefore continued to encourage the decentralized application of Community competition rules, in particular as far as cases falling within the scope of Articles 85 and 86 are concerned. It's aim is to establish effective cooperation between the national courts, competition authorities and itself. In this respect, the preparatory work for a new notice on cooperation between the Commission and national competition authorities is well advanced and will complement the existing notice on cooperation with the national courts. This policy of decentralization should however be implemented gradually and with care. The actual decentralization process goes hand in hand with a continuing effort on the part of the Commission to clarify and simplify the rules of substance in order to enable the Member States to use the same concepts when applying the Community competition rules. 18. The principle of subsidiarity dictates that the most appropriate authority should take action. Therefore, certain cases which fall within the jurisdiction of several national authorities should be handled by the Commission. Thus, in the case of mergers, it is preferable for firms to have their proposed mergers examined by the Commission alone rather than having to submit them to a number of national authorities. In 1995 the Commission embarked on a new review of the Merger Regulation, inter alia to consider whether the turnover- based criterion for determining those cases which must be submitted to the Commission and those which fall within the exclusive jurisdiction of the Member States is still appropriate. 19. In the field of state aid, the subsidiarity principle dictates that the Community must have exclusive competence because Member States cannot be asked to control their own state aid expenditures in a fair way vis-à-vis their neighbours. However, one aspect can be handled at national level : national courts may act upon complaints by the competitors of the firm receiving state aid, and in particular it may control whether the necessary notification and approval procedures have been followed by the Member State. The Commission has published a new notice in this area which has a threefold purpose : to strengthen and decentralize enforcement of state aid rules, to clarify the legal position for the benefit of all interested parties and to offer assistance to judges. 5. Transparency 20. Competition rules are often complex because the economic, legal and political context in which they operate is complicated and constantly evolving. This does not mean that there is no room left for more transparency and simplification. The Commission has indeed found several ways to increase information about its policy and to simplify the legal framework. They include : the newly adopted group exemption for technology transfer agreements, which will replace the two regulations concerning know-how and patent licensing; the use of notices and communications to provide guidelines on the application of the competition rules in certain sectors (cross-border credit transfers; postal services); the use of green papers for the purpose of public consultation (i. e. the planned green papers on vertical restraints and merger review to be published in 1996) ; and the publication of explanatory brochures (new car distribution regulation). In the field of state aid, the obligation to notify, which is laid down in the Treaty, is central to ensuring transparency. The Commission has indicated in a communication that it intends to utilize all the powers which the Treaty confers on it to ensure that Member States respect this obligation. It has also started working on a revised and consolidated regional aid framework and has adopted a new framework for aid for research and development. Lastly, it pursued its active campaign to inform the public of competition policy matters : press releases and conferences, DG IV s Information Service, publications, the Competition Policy Newsletter and, last but not least, the Annual Report on Competition Policy, all of which serve the same purpose, namely to enhance transparency, legal certainty and predictability. 6. Democratic accountability 21. Competition policy cannot simply be a technocratic or administrative exercise, but has everything to gain by bringing about a wide democratic consensus. The Commission accordingly attaches great importance to a fruitful dialogue with the other Institutions of the European Union on all aspects of its competition policy. 22. The Annual Report on Competition Policy serves as a basic instrument of communication and information to the other Institutions of the European Union, in particular the European Parliament, the Council and the Economic and Social Committee. The fruitful exchanges of view and discussions concerning the previous report were clearly of help to the Commission in implementing its tasks and contributed to better information on, and comprehension of, European competition policy. Moreover, where appropriate, the Commission takes the initiative of consulting the other Institutions on newly proposed provisions or on other policy documents. In particular, in the context of the adoption of Article 90 liberalization directives, it has carefully considered the observations made by the European Parliament, the Council, the Economic and Social Committee, and the Committee of the Regions. 23. The Commission has also collaborated closely with the Council on various aspects of its policy, in particular as regards the 10 relationship between competition policy and competitiveness. 24. Member States are closely involved in the Commission's decision making process through the Advisory Committee on Restrictive Practices and Dominant Positions, the Advisory Committee on Concentrations and the Conference of national government experts. Moreover, Commission officials have regular and constructive informal contacts with their colleagues at national level. 25. On 3 and 4 April the Commission organized the First European Competition Forum in Brussels on the issue of vertical restraints. 4 More than 260 participants including competition authorities and judges from 3 5 European countries attended. The purpose of such a forum is to promote exchanges of experience and discussions among Community and Member State officials whose responsability is to enforce competition law, and to encourage decentralized application of competition law. A second Forum is planned in 1996. 26. The Commission's XXVth Annual Report on Competition Policy (1995) differs in presentation from the previous annual reports. 27. In recent years the Commission's competition report has increased steadily in size, to reach more than 600 pages in 1994. Since the Commission's separate brochure "European Community competition policy - 1994", which summarizes the Commission's policy and decisions in a "user-friendly" format, has been well received, the Commission has been asked, in particular by the Economic and Social Committee, to present a shorter and more readable document. The Commission therefore decided to produce a shorter report than in the past, focusing on the main policy developments in the field of competition, which are illustrated, where applicable, by the Commission's major decisions and new legislative measures. In addition to the present Annual Report, the Directorate-General for Competition (DG IV) of the European Commission prepared a "Report on the application of the competition rules in the European Union - 1995", which describes the important individual cases decided by the Commission. It also contains lists of references to the new legislative provisions and notices, the Commission decisions and press releases, and decisions by the Court of Justice and the Court of First Instance. It furthermore gives a description of the application of competition rules in the Member States. 7. Statistics 28. There has been a large increase in the overall number of new cases registered. The total number of new cases (anti-trust, mergers, state aid) rose from 1 081 in 1994 to 1 472 in 1995 - an increase of 36%. New Articles 85 and 86 cases increased by more than 42%, merger notifications rose by nearly 16% and the number of new state aid cases grew by 35%. A significant part of this increase, in particular in the field of anti-trust-and state aid, is due to the accession of three new Member States to the European Union on 1 January 1995. 29. The total number of cases closed in 1995 remained almost at the same level as in 1994 : 1 210 cases compared with 1 200. Competition Policy Newsletter, No 5, Volume 1, summer 1995, p. 7. 11 I - Anti-trust : Articles 85 and 86 A - Ensuring the benefits of the internal market 30. An essential aim of European competition policy is to ensure that the completion of the internal market brings consumers and the European economy as a whole all the benefits of a Community-wide market. Competition policy must create the appropriate framework allowing companies to adjust to the new possibilities opened up by the elimination of national barriers. However, where companies try to slow down the process of market integration or even obstruct cross-border trade by anti-competitive practices, it is necessary to pursue a vigilant policy, including the imposition of severe sanctions in case of hard-core infringements of the competition rules. Vertical arrangements between suppliers and distributors are a core element of European competition policy in this field. Some of these arrangements may be necessary to penetrate new markets, launch new products or promote efficient distribution networks and might thereby benefit consumers. Problems may, however, arise where there is not enough competition between producers or between distributors in the same markets or where the arrangements are used for anti-competitive purposes, i. e. for market-partitioning or for restricting access to the market by new entrants. 1. Car distribution 31. Because motor vehicles are consumer durables which require expert maintenance and repair, manufacturers cooperate with selected dealers and repairers in order to provide specialized distribution and servicing for the product. Such arrangements are likely to enhance efficient distribution of the products concerned, and the exclusive and/or selective nature of the distribution system can be regarded as indispensable for attaining rationalization and efficiency in the motor vehicle industry. This was and still is the basic motivation for allowing restrictive distribution and servicing agreements in the car sector. However, the new group exemption relating to the distribution and servicing of motor vehicles,5 which the Commission adopted on 28 June 1995 to replace the existing Regulation No 123/85,6 contains several adjustments aimed at intensifying competition in the markets for cars and spare parts and improving the position of consumers by guaranteeing them the full benefits of the internal market. 32. In particular, the new regulation secures greater independence for dealers vis-à-vis car manufacturers. Most importantly, dealers are allowed to sell cars of other manufacturers provided that this is done on separate sales premises, under separate management, in the form of a distinct legal entity and in a manner which avoids confusion between brands. To ensure effective competition on the maintenance and repair markets, car manufacturers or suppliers are not allowed to impede access by independent spare part producers and distributors to the markets or to restrict the dealer's right to procure spare parts of equivalent quality from firms of his choice outside the network Furthermore, car manufacturers must provide repairers outside the Commission Regulation (EC) No 1475/95 of 28 June 1995 on the application of Article 85 (3) of the Treaty to certain categories of motor vehicle distribution and servicing agreements (OJ L 145, 29. 6. 1995, p. 25). Commission Regulation (EEC) No 123/85 of 12 December 1984 (OJ L 15, 18. 1. 1985). 12 network with the technical information they need to enable them to repair and maintain cars produced by them, provided that the information is not covered by an intellectual property right. 33. Multidealerships, opening-up of the market in spare parts, greater competition in the field of repairs, all serve the aim of increasing consumers' choice in accordance with the principles of the single market. The same objective requires that consumers are able to buy a car and to have it maintained or repaired wherever in the European Union prices or terms are most favourable. This is all the more important in the car sector, where price differences between Member States are significant. In its latest six- monthly survey of car prices, published in July, the Commission noticed that price differentials had risen dramatically since November 1994. 7 Since the beginning of 1995 it has received an increasing number of complaints from individuals in the European Union, mostly from Austria, Germany and France, who have been prevented from purchasing a car in Italy and Spain, where, following currency devaluations, prices were relatively low. 8 The new regulation expressly bans any practices designed to prevent parallel trade. 9 Dealers must be allowed to meet demand from outside their allotted sales area and may in future undertake certain means of advertising outside their territory. 34. The Commission departments published on 26 September 1995 in all Community languages a brochure which explains the new regulatory framework for manufacturers, dealers, spare part producers and independent repairers. It also provides consumers with information on their freedom to buy a car anywhere in the Community. 10 2. Restrictions on parallel trade 35. It is one of the most well-established principles of Community competition law that producers are forbidden to divide the internal market by private agreements and to maintain price differences by arranging anti-competitive absolute territorial protection. However, such behaviour continues to occur on the market and, where it comes to light, one can expect severe action by the Commission. BASF/Accinauto 36. In a decision of 12 July 1995,X1 the Commission imposed a fine of ECU 2. 7 million on the German car refinish paint producer BASF Lacke + Farben, a subsidiary of the BASF group, and a fine of ECU 10,000 on BASF' s exclusive distributor in Belgium and Luxembourg, Accinauto S. A. The case originated with a complaint by two English parallel importers of Glasurit car refinish paint products. They alleged that Accinauto, from whom they bought the Glasurit products, had ceased deliveries to them in the summer of 1990 on the instructions of BASF. The Commission carried out investigations on the premises of BASF and Accinauto and found out that Accinauto was bound by a contractual obligation to Commission press releases IP/95/50 of 19. 1. 1995 and IP/95/768 of 24. 7. 1995. "The impact of currency fluctuations on the internal market", Communication from the Commission to the European Council, 31. 10. 1995, point 25. See also judgments of the Court of Justice of 24 October 1995 in Cases C-70/93 Motorenwerke AG, VAG Leasing GmbH (not yet published). "Distribution of motor vehicles", Explanatory brochure, European Commission, DG IV, IV/9509/95. More than 7 000 copies of this brochure have already been distributed. D GmbH and C-266/93 Bundes/cartellamt and AG and ALD Auto-Leasing Bayerische Volkswagen OJ L 272, 15. 11. 1995, p. 16. 13 transfer to BASF all orders from customers from outside its exclusive distribution territory. The Commission concluded that this obligation constitutes an unacceptable restriction of competition as it hinders the export by Accinauto of the relevant products from Belgium to the United Kingdom. In fact, as a result of this obligation, BASF itself, and not the exclusive distributor, decides on and controls supplies to parallel importers from other Member States. Pharmaceutical products :• Organon 37. Prices for pharmaceutical products differ significantly between Member States. This is usually explained by the differences in national price control and health care systems. On several occasions, the Court of Justice has ruled that parallel imports should not be blocked, irrespective of the factors that determine price differences. Hence, in the pharmaceutical sector, the Commission has consistently applied the competition rules to agreements or conduct which restrict parallel trade in drugs. It is believed that the unrestricted operation of market forces in this way is likely to act as a catalyst for the gradual convergence not only of prices but also of price control mechanisms. Prices in the high-cost countries should fall, while those in the low-price countries should, if they fail to offer pharmaceutical companies a reasonable return on investment, ultimately increase in reaction to the real threat of product withdrawal. Some Member States with high drug prices even stimulate parallel imports in order to bring about a reduction in their country's overall drug bill. 38. Organon is a British subsidiary of Akzo (Netherlands) which specializes in the manufacture and marketing of contraceptive pills. On 4 May 1994 Organon changed the price regime applicable to its contraceptive pills Mercilon and Marvelon, the latter holding substantial market shares throughout the Community. Before that date, ORGANON applied a discount of 12. 5% on all products supplied to its customers, irrespective of their final destination. The new price regime differentiated between those pills to be sold in the UK and those intended for export. Only the former qualified for the 12. 5% discount rate. Following several complaints and Organon's notification of the new pricing system, the Commission initiated proceedings against Organon and issued a statement of objections aimed at withdrawing the immunity from fines brought about by notification. For the Commission, the new price regime, which forms part of continuous business relations between Organon and its wholesalers and therefore constitutes an agreement within the meaning of Article 85(l),12 constituted a serious infringement of the competition rules in that it gave rise to discrimination in the prices of the products according to their geographical destination. As a result, consumers could no longer enjoy the benefits of parallel trade. In the Netherlands in particular, where the Marvelon pill of Dutch origin is not fully reimbursed by the social security scheme, whereas the price of the British pill allows it to be offered at a price equal to the Dutch social security reimbursement level, consumers were no longer able to opt for the UK produced Marvelon and thus to benefit from not having to pay an amount over and above the reimbursement price. Organon, however, decided to abandon the new pricing regime, which the In its judgment of 24 October 1995 in Cases C-70/93 and C-266/93 (see footnote 9), the Court confirmed its prior jurisprudence that a call by a company to its dealers does not constitute an unilateral act which falls outside the scope of Article 85(l) but is an agreement within the meaning of that provision if it formed part of a set of continuous business relations governed by a general agreement drawn up in advance. 14 Commission had opposed, and reintroduced the previous price conditions. The status quo having being restored, the Commission suspended its proceedings and reserved the right to examine the forthcoming pricing system which Organon intends to bring in. 3. Restrictions on access to the market by new entrants 39. A truly competitive internal'market also implies that companies are free to enter the market to compete with existing market players. The Commission is therefore particularly keen to keep open markets and has in fact intervened where companies, be it through restrictive agreements or by unilateral action, have impeded access to the market by new entrants. 40. New competitors can be prevented from entering the market by vertical arrangements between existing suppliers and distributors. This is in particular the case where a large number of retailers on the market are tied by an obligation to sell only the products of the manufacturer with which they have a contract or arrangements having a similar exclusionary effect on third parties. The cases concerning the impulse ice cream market (Unilever/Mars) are examples of such arrangements. In other cases, access by third parties to the market is impeded through a horizontal agreement or concerted practice between actual or potential competitors. This is what happened on the Dutch crane-hire market (Van Marwijk/FNK-SCK). Access to the market can also be blocked through abuse by a monopoly or dominant provider of essential facilities or services. This is a problem of increasing importance in various sectors. Where a dominant company owns or controls a facility access to which is essential to enable its competitors to carry on business, it may not deny them access, and it must grant access on a non-discriminatory basis. Be it dn the transport sector, in particular air transport, in banking or in the telecommunications sector, the Commission applies this general principle of EU competition law13 in order to foster new competition. The case concerning access to the port of Roscoff in France (ICG/CCI Morlaix) raises the same issue. Unilever/Mars 41. Unilever is market leader in most EU Member States in "impulse" ice cream products (i. e. single wrapped items of industrially manufactured ice cream sold for immediate consumption in places like newsagents, petrol stations, etc. ). In the Republic of Ireland, it is by far the largest ice cream producer. Unilever's distribution system consisted in providing freezer cabinets to retailers subject to a condition of exclusivity whereby only Unilever products could be stored in the cabinets ("freezer exclusivity"). Moreover, the cost of cabinet provision was included in the price of the ice cream charged to all retailers, irrespective of whether they had a Unilever freezer cabinet. On a complaint from Mars, the Commission examined the distribution arrangements operated by Unilever in Ireland. It found that, where a retailer has only one or more Unilever freezer cabinets in his outlet, that outlet is in practice tied exclusively to the sale of Unilever ice This general principle has found support in the Judgment of the Court of Justice of 6 April 1995 in Cases C-241/91 P and C-242/91 P Radio Telefis Television (Magill) [1995] ECR 1-743. Ltd v Commission Publications Indépendant (RTE) and Eireann 15 cream as a result; the majority of all outlets offering impulse ice cream in Ireland fall into this category. Such outlet exclusivity has already been condemned by the Commission in 1992 with regard to the German impulse ice cream market. 14 The Unilever agreements had the cumulative effect of appreciably restricting competition by preventing third competitors' access to the market. The arrangements were also found to be an abuse of Unilever's dominant position on the market. Unilever, however, agreed to alter its practices with the aim of freeing up the market, in particular by giving wider choice to retailers. The Commission has accordingly announced that the new arrangements appear to meet the conditions for the granting of an exemption. 15 Van Marwijk/FNK-SCK 42. In its decision of 29 November 199516, the Commission imposed fines17 on FNK and SCK for infringements of Article 85 (1) on the Dutch crane-hire market. FNK (Federatie van Nederlandse Kraanverhuurbedrijven) is an association of Dutch firms which hire out mobile cranes. SCK (Stichting Certificatie Kraanverhuurbedrijf) was set up on the initiative of FNK in order to guarantee, through a certification system, the quality of cranes and equipment used in the crane-hire business. Most of the firms which participate in SCK are also members of FNK. They account for between 50% and 80% of the Dutch market. Crane-h'irers themselves hire cranes from other crane-hirers on a. large scale. Apart from FNK's recommended prices for the hiring-out of cranes and the concerted prices applied between members of FNK, the Commission attacked the ban on SCK certificate-holders hiring cranes from firms not affiliated to SCK. It considered that the SCK hiring ban was caught by the prohibition of Article 85 (1) as the SCK certification system did not fulfil the conditions of openness and acceptance of other equivalent quality guarantee systems. It concluded that the ban not only restricted the freedom of action of the affiliated firms but also considerably impeded access by third parties to the Dutch market. In its decision, the Commission indicated that, while its policy on certification allows scope for private-law certification systems designed to provide supplementary monitoring of compliance with statutory provisions, such systems should be in accordance with the competition rules. ICG/CCI Morlaix 43. Irish Continental Group (ICG) applied to the Chambre de Commerce et d'Industrie de Morlaix (CCI Morlaix) for access to the port of In 1992 the Commission took a negative decision against Langnese (Unilever) and Schôller, who are in a duopolistic position on the German impulse ice cream market. In that case the Commission acted against "sales outlet exclusivity" arrangements under which a retailer undertakes to sell only the products of the manufacturer with whom he has a contract. The Commission decided that the cumulative effect of the agreements in question amounted to an appreciable restriction of competition by Langnese and Schôller. This finding was appealed against by the parties but was upheld by the Court of First Instance [1995] in its judgments of 8 June 1995 in Case T-7/93 Langnese-Iglo ECR 11-1533 and in Case T-9/93 Schôller [1995] ECR 11-1611. GmbH v Commission GmbH & Co. KG v Commission Lebensmittel OJ C 211, 15. 08. 1995, p. 4. OJ L 312, 23. 12. 1995, p. 79. The immunity from fines resulting from the notifications by FNK and SCK in early 1992 was withdrawn under Article 15(6) of Regulation No. 17 by Commission Decision of 13 April 1994 (OJ L 117, 7. 5. 1994). 16 Roscoff (Brittany) for the purpose of commencing a ferry service between Ireland and Brittany in the summer of 1995. Brittany Ferries was at that time the only ferry company operating between Ireland and Brittany. Initially, an agreement in principle was reached between the parties following which ICG started to market and take bookings for its new ferry service. Negotiations were however suspended in January 1995 and no final agreement could be reached between CCI Morlaix and ICG after ICG had complained to the Commission and further negotiations had taken place. The Commission found that CCI Morlaix, being the operator of the port of Roscoff, which was the only port capable of providing adequate port facilities in France for ferry services-between Brittany and Ireland, was prima facie in a dominant position. It also found that, by its unjustified refusal to give ICG access to the port facilities of Roscoff, CCI Morlaix had prima facie abused its dominant position. The Commission could therefore order interim measures on 16 May 1995 obliging CCI Morlaix to take the necessary steps to allow ICG access to the port of Roscoff until the end of the summer season. After the Commission's intervention, the parties concluded a five-year contract for the use of the Roscoff port facilities by ICG; this was not only to their mutual benefit but, more importantly, to the benefit of travellers, who now have a wider choice of transport services and activities in the Roscoff area. 4. Green Paper on vertical restraints 44. Vertical arrangements between suppliers and distributors in the various Member States have always received particular attention under Community law in view of the goal of market integration. It has been a core element of Community policy to keep channels for parallel trade open and free from restrictions by private business. Even though competition policy towards vertical restraints has served the Community well to date, it is felt necessary to undertake a review in order to ascertain whether Community policy in this field is still adapted to the distribution and consumer needs of the future. For example, the application of information technology and just-in-time methods is changing not only production methods but also the form and systems of distribution. The implications of this must be fully reflected in policy so as not to stifle the highly innovative and rapidly changing distribution techniques. Moreover, the main block exemptions in the field of vertical restraints come up for renewal soon : exclusive selling and buying in 1997 and franchising in 1999. These renewals need to be prepared. The review will take the form of a Green Paper which will set out different alternatives for future policy. The intention is to submit this option paper next year to a wide and in-depth public consultation of all interested political and socio-economic partners (the European Parliament, Member States, producers, distributors and consumers). 5. Cross-border credit transfers 45. The banking sector is still not characterized by a properly functioning internal market. Payments for financial transactions are an important cost factor for companies and may act as ,a significant impediment to the smooth operation of the internal market. 46. In September the Commission adopted a notice on the application 17 of the EC competition rules to cross-border credit transfers. 18 The notice is part of a package of measures adopted by the Commission, including a proposal for a directive, with a view to improving the cross-border credit transfer services offered by banks. 19 These systems are used by banks to transfer money on behalf of customers between different countries in the Union. 47. The notice updates and replaces competition principles published in 1992. It states that the Commission's general approach will be to view positively cooperation agreements between banks that in particular enable them to meet the requirements of the directive. This cooperation should not, however, go so far as to eliminate competition between banks. The notice therefore provides guidelines for banks as to how they can set up cooperation arrangements to handle cross-border credit transfers more efficiently without falling foul of the competition rules. It may therefore contribute to the development of payment systems which are more favorable to European citizens. 48. The notice addresses two issues of particular importance: market entry, and price competition. As to market entry, the Commission wishes to ensure that smaller banks are not unfairly excluded from systems to which they must belong if they are, in practice, to be able to offer cross-border credit transfers to their customers. The conditions for access to such systems should be objectively justified and applied in a non-discriminatory manner. Conversely, the exclusion of newcomers from a system which is not an essential facility, e. g. a smaller system developed by groups of banks, will not normally give rise to competition concerns. As far as price competition is concerned, the notice distinguishes between bank-customer pricing agreements and inter-bank pricing agreements. Banks must not conclude agreements among themselves that determine the level of customer fees or the way in which they are to charge such fees. The key issue concerning inter-bank pricing agreements is the assessment of multilaterally agreed interchange fees, i. e. collectively agreed transaction fees paid by one bank (typically the sender's bank or its correspondent bank) to another bank (the beneficiary's bank). The Commission takes the view that a multilaterally agreed interchange fee is a restriction of competition falling within the prohibition of price agreements contained in Article 85(1). Such a fee can, however, be exempted under Article 85(3) where the conditions for exemption are met. In the case of OUR cross-border credit transfers (i. e. where the sender has asked to bear the costs) , a beneficiary's bank cannot charge the beneficiary an additional fee for handling a cross-border credit transfer. In such a case, banks may agree that the beneficiary's bank receive a multilaterally agreed interchange fee if that fee covers the costs actually and necessarily incurred by the bank when it handles cross-border credit transfers. The agreed fee should not exceed the average real costs incurred by the beneficiary's bank when it handles cross-border credit transfers. Furthermore, it should be expressed as a default fee, allowing bilateral agreements on amounts above or below the default. OJ C 251, 27. 09. 1995, p. 3. Commission Communication "EU Funds Transfers: Transparency, Performance and. Stability", COM(94)436, 19 October 1994; Bull. EU 9-1995, point 1. 3. 12. 18 6. Leniency programme 49. The Commission continued its active pursuit of secret cartels, involving price fixing or market sharing, which still appear to exist in major industries. Fact-finding is accounting for an increasing share of the Commission's administrative resources for competition law enforcement. In 1995 the Commission undertook some 91 on-the-spot investigations, including 87 surprise inspections. 50. Cartels are typically operated in secrecy and considerable efforts are devoted by participants to avoid detection by the authorities, including the use of information technology. In certain cases, the benefit which may accrue to consumers from the detection and prohibition of secret cartels outweighs the interest the Community may have in fining companies which cooperate with the Commission, thereby enabling or helping it to detect and prohibit a cartel. For this reason, the Commission is considering granting lenient treatment to companies which cooperate in the preliminary investigation or proceedings in respect of an infringement. 20 It published a draft notice which specifies the conditions under which firms cooperating with the Commission can receive immunity from fines or significant reductions in the fine which would otherwise have been imposed upon them. Before it adopts the notice, the Commission has invited all interested persons to submit their observations on its draft notice. 21 7. Access to the file 51. The European Community's anti-trust enforcement procedures must not be arbitrary or unfair. The Commission is required to observe procedural safeguards aimed at protecting the interests of firms affected by its decisions. Take, for instance, preservation of the rights of defence, in particular the right to a fair hearing. Addressees of formal decisions and interested parties also have the ultimate safeguard of the right of appeal to the European Courts. 52. The Court of First Instance annulled a series of Commission decisions of 19 December 199022 sanctioning infringements of the competition rules on the market in soda ash. One of the decisions related to a concerted practice by which Solvay and ICI divided the European market between them. In addition, the Commission found that both Solvay and ICI abused their dominant positions in western Europe, in the United Kingdom and Ireland respectively. 23 The decision, which was based on Article 85, has been annulled on the ground that the Commission did not respect the parties' rights of defence. The Court found that the Commission should have given Solvay access, in the context of the Article 85 procedure, to certain documents contained in the Commission's file for the Article 86 case against ICI. 24 Conversely, the Court, acting on the same basis, decided On 10 August 1993 the US Department of Justice Antitrust Division issued its corporate leniency policy. This was followed by a leniency policy for individuals that was issued on 10 August 1994. OJ C 341, 19. 12. 1995, p. 13. OJ L 152, 15. 6. 1991. XXth Report on Competition Policy (1990), points 92 and 113. Judgment of the Court of First Instance of 29 June 1995 in Case T-30/31 Solvay Commission [1995] ECR 11-1775. v 19 in favour of ICI. 25 The Commission is examining the exact impact of these decisions on its current practice, also in view of the new mandate of the Hearing Officer, which provides that, if a company believes that the Commission has not provided it with all the documents necessary for its defence, the Hearing Officer should examine any such claim and decide on the merits. 2S B - Cooperation and competition in a rapidly changing and increasingly global economic environment 53. Today's economic environment is characterized by a sharp increase in competitive pressures. Several factors have contributed to this : the continuing shortening of product life-cycles; the growing globalization of industries and markets; and the completion of the legislative programme for the achievement of the internal market. These economic realities must be taken into account in applying the competition rules. As a result, economic market analysis is becoming increasingly important in competition cases. The Commission has to take account of the specific economic features of a particular market in placing the relevant case in its proper context. In an economic environment characterized by dynamic markets, innovation and globalization, cooperation between firms is often vital to enable them to remain competitive on the market by improving their R&D efforts, reducing costs and developing new products. None the less, such cooperation must not lead to anti-competitive situations which are incompatible with the competition rules of the Treaty. 1. The application of Articles 85 and 86 in the telecommunications sector 1. 1. Strategic alliances 54. The ongoing liberalization of the telecommunications sector, together with the increasing convergence of telecommunications, information technologies and media, are spurring substantial commercial activity in the core sectors of the information market. Market players are now positioning themselves to take advantage of the new opportunities. This has resulted in a wave of new alliances and partnerships being announced or implemented. 27 Strategic alliances between incumbent telecommunications operators (TOs) moving into global markets are one type of such alliances (BT/MCI; Atlas-Phoenix). Other alliances (conglomerate alliances) are set up either between companies with no prior presence in the telecommunications market but which benefit from synergies through market entry -such as electricity utilities or banks that have substantial internal networks as well as financial means and know-how - or between the latter and TOs (Cable & Wireless and Veba; BT-Viag; BT- BNL, Albacom). Large consortia are also being formed to offer mobile satellite telecommunications services on a worldwide basis (Inmarsat-P, Iridium, Globalstar and Odyssey). 55. The application of the basic competition rules to these alliances Judgment of the Court of First Instance of 29 June 1995 in Case T-36/91 Imperial Industries Commission Decision of 12 December 1994 on the terms of reference of hearing officers in competition procedures before the Commission (OJ L 330, 21. 12. 1994, p. 67). pic v Commission [1995] ECR 11-1847. Chemical A comprehensive overview of case decisions and publications in this field is given in Community Competition Policy in the Telecommunications Sector, European. Commission, Official Documents, Update July 1995 (IV/18571/95). 20 has become one of the major challenges for EU competition policy in recent years. The Commission must ensure that the current restructuring process will lead to competitive and growth-oriented market structures. The Community's policy aimed at liberalizing telecommunications is generating new services and products at competitive prices for consumers, reducing costs for the industry and creating new jobs. However, these efforts would serve little purpose if new restrictive agreements, practices or market structures were allowed to develop which prevented competition from emerging on liberalized markets or if TOs could engage in abusive behaviour aimed at preserving their position. This shows that there is a close inter-relationship between different Community policy areas and that all competition instruments must be applied together in a coherent way. 56. The Concert joint venture between British Telecommunications and the US MCI Corporation was the first major télécoms strategic alliance which the Commission dealt with, and it was granted an exemption under Article 85 (3) ,28 Alliances intending to offer new global services, with features sought in particular by large corporations (e. g. seamlessness, end-to-end, one stop shopping and billing, etc. ), will in general improve the quality and the availability of advanced telecommunications services and will also contribute to the creation of trans-European networks, which is one of the objectives of the EC Treaty (Article 12 9b). Consumers, including large multinational companies, but also innovative small and medium-sized enterprises, can benefit from more advanced global services and efficiency gains, thereby improving their competitive position both globally and within the European Union. However, to the extent that alliances offer domestic as well as international services, the indispensability required under Article 85(3) and the possible elimination of competition at the national level are important elements in the Commission's analysis. Important elements in the Commission's favourable attitude to the creation of Concert were the genuinely global nature of the services concerned and the fact that the markets of both parent companies are open to competition. Atlas/Phoenix 57. The Atlas agreement, which the Commission investigated during 1995, differs from the BT-MCI alliance in two important respects: firstly, the domestic component of the services offered is much stronger than the global elements planned and, secondly, the home markets of the parties (France and Germany) are less liberalized than the home markets of BT and MCI (UK and US). The Atlas transaction brings about a joint venture between the French and German public telecommunications operators, France Telecom (FT) and Deutsche Telekom (DT). Atlas is also the instrument of DT's and FT's participation in the second transaction, named Phoenix, with the US company Sprint Corporation. Atlas targets two separate product markets for value-added telecommunications services, namely the market for advanced corporate telecommunications services and the market for standardized low-level packet-switched data communications services. The broader Phoenix alliance will address the same markets for value-added telecommunications network services and also the market for traveller Decision of 27 July 1994 (OJ L 223, 27. 08. 1994, p. 36); XXIVth Report on. Competition Policy (1994), points 156-160. 21 services and the market for so-called carrier's carrier services. The Atlas and Phoenix arrangements raised a number of concerns from a competition point of view, in particular with respect to the home markets of the EU partners to the transactions, where FT and DT hold legal and de facto dominant positions with respect to a number of telecommunications services and the provision of infrastructure. It was argued therefore that competition could be eliminated and the positive effects of future full liberalization endangered. In response to this, the parties to the alliances as well as the French and German Governments have undertaken certain amendments and commitments to address these concerns. They relate to the non-intégrâtion into Atlas of the domestic French and German public switched data networks, the non-discriminatory access to these networks, and the avoidance of cross-subsidization. However, the main commitment made by the governments was that the use of alternative telecommunications infrastructure for the provision of liberalized telecommunications services (i. e. not basic voice telephony) will be liberalized as of 1 July 1996. Without such liberalization, competition in the area of data communications would also be endangered or eliminated in other Member States by the alliance between the Union's largest telecommunications organizations. Full liberalization, i. e. including basic voice telephony and infrastructure, will be achieved by 1 January 1998. On this basis, the Commission has indicated that it is ready, subject to observations from third parties, to take a favourable view of the Atlas-Phoenix agreements. 29 58. Other strategic alliances of the same type which the Commission has begun to investigate are Unisource and its Uniworld alliance with AT&T. Global Mobile Satellite Systems 59. The Commission has launched an in-depth and comprehensive examination of the newly emerging strategic alliances which are being formed to offer mobile satellite telecommunications services on a worldwide basis. In this sector, which has only a few global market players, it is essential, that competition is safeguarded in the downstream markets involved, namely local service provision, distribution and equipment supply. One of the systems examined, Inmarsat-P, has already been favourably viewed by the Commission. 30 1. 2. Access and interconnection agreements 60. 'An important problem for the application of EU competition law to the sector, and in general for the regulatory environment of the future telecommunications market, is the issue of access and interconnection agreements. 31 In fact, the post-monopoly and future multimedia environment is likely to be characterized by situations where firms singly or jointly control facilities - such as networks, conditional access systems or critical software interfaces - which may provide an essential route to customers. Notices pursuant to Article 19(3) of Regulation No 17 (OJ C 337, 15. 12. 1995, pp. 2 and 13). Notice pursuant to Article 19 (3) of Regulation No 17 (OJ C 304, 15. 11. 1995, p. 6). G7 conclusions and Telecommunications Infrastructure Green Paper. 22 Access and interconnection agreements may, in principle, be seen as pro-competitive because they are aimed at extending the range of services available to customers. However, they may also generate substantial collusive behaviour and market foreclosure, as well as abuse of dominant positions. 32 The non-discriminatory access to essential facilities on reasonable terms is of central importance in this context. The Commission therefore intends to present in 1996 a draft communication on the implementation of the competition rules in this area. 2. Globalization of markets ATR/BAe 61. The market for regional aircraft is an example of a sector with a worldwide dimension. The main manufacturers operate in all continents. 62. On 18 August the Commission authorized, by means of a comfort letter, the regional aircraft joint venture between Aérospatiale and Alenia, already integrated in ATR, and British Aerospace. The ultimate objective of the project is to merge the parties' regional aircraft activities. The first stage of cooperation mainly concerns services direct to customers and the joint carrying-out of feasibility studies for new aircraft in this sector. The Commission's authorization is valid for only a limited period ending on 6 June 2000; this leaves it the option of reviewing the situation if, following the feasibility studies, the parties decide not to develop, produce or launch the programmes for new aircraft but to nonetheless maintain their cooperation in the areas of sales and after- sales service. 3. Transfer of technology 63. One of the priority tasks of the Commission with a view to developing the large internal market is to encourage innovation and the dissemination of new technology in European industry. The prime role played by technology transfer in the development of technological innovation in the economy of the European Union and in strengthening the competitiveness of enterprises operating in this area was highlighted in the Commission White Paper on growth, competitiveness and employment. 64. The Regulation on the block exemption of categories of technology transfer agreements,33 proposed in 1994 and substantially amended in 1995 following third party hearings and the second meeting of the Advisory Committee on Restrictive Practices and Dominant Positions, is intended to promote economic growth and enhance competitiveness by simplifying the content of the two existing regulations on licensing agreements34 and combining them in a single regulation. 65. The Regulation thus reduces the disparities between the Regulation on patent licensing and the Regulation on know-how licensing and removes several clauses preventing block exemption or transfers them to the so-called "opposition" procedure. It also provides for new, lawful clauses which give greater contractual freedom to the parties. Coudert Bros, Competition aspects of interconnection agreements in the telecommunications sector, Report to the European Commission, June 1995. The Regulation was adopted by the Commission on 31 January 1996. Regulations (EEC) Nos 2349/84 of 23 July 1994 and 556/89. of 30 November 1988. 23 This relaxation of the rules, which will benefit most operators in the Community is, however, accompanied by a clear warning to enterprises with strong market positions: the benefit of the block exemption can be withdrawn if enterprises use their exclusive licences to monopolize the market for a product and prevent third parties from gaining access to new technologies. When assessing such cases, the Commission will pay particular attention to situations in which the market share of the licensee exceeds a threshold of 40%. C - Transport 1. Maritime transport 66. The European Union is the largest trading bloc in the world. The bulk of its trade with the rest of the world (and a significant part of intra-Union trade) is carried out by means of maritime transport. Liner shipping, i. e. scheduled maritime transport services, is of major importance in this respect. It is therefore essential for the European Union to have the best possible maritime transport service at the lowest possible cost. Competition policy is a tool well-adapted to help achieve this objective. 67. It should also be noted that in the United States, a proposal to deregulate liner shipping and make it subject to a more competitive statutory regime was recently adopted by the House of Representatives and is currently before the Senate. If the proposal, the Ocean Shipping Reform Act, is passed, the US regime will more closely match the European rules. 1. 1. Liner shipping consortia 68. The new regulation granting block exemption to liner shipping consortia35 is an important instrument for this purpose, as it will encourage shipowners to improve and rationalize their operations, thereby reducing costs and freight rates whilst at the same time allowing them to offer a better-quality service along with greater frequency. This is the second block exemption that has been adopted in the liner shipping sector. Regulation (CEE) No 4056/86, which lays down rules for the application of Articles 85 and 86 to maritime transport, already contains a block exemption for liner conferences. 36 69. The new block exemption entered into force on 22 April 1995 and applies for a period of five years. Liner shipping consortia are agreements between two or more shipping companies relating to the joint operation of liner transport services through cooperation in the technical, operational and/or commercial field, with the exception of price. fixing. It applies only to international liner shipping services to or from one or more Community ports intended exclusively for the carriage of cargo, chiefly by container. It also covers both consortia operating within a liner conference and consortia operating outside such conferences, except that it does not cover the joint fixing of freight rates. Consortium members that wish to fix rates jointly and do not satisfy the conditions of Regulation (CEE) No 4056/86 must apply for individual exemption. Commission Regulation (EC) No 870/95 of 20 April 1995 on the application of Article 85 (3) of the Treaty to certain categories of agreements, decisions and concerted practices between liner shipping companies (consortia) pursuant to Council regulation (EEC) No 479/92 (OJ L 89, 21. 04. 1995, p. 7 ). Regulation (CEE) No 4056/86 of 22 December 1986 (OJ L 378, 31. 12. 1986, p. 4). 24 The block exemption covers the following activities : the coordination and/or joint fixing of sailing timetables and the determination of ports of call; the exchange, sale or cross-chartering of space or slots on vessels; the pooling of vessels and/or port installations; the use of one or more joint operations offices; the provision of containers, chassis and other equipment and/or rental, leasing or purchase contracts for such equipment; the use of a computerized data exchange system and/or joint documentation system; temporary capacity adjustments;37 the joint operation or use of port terminals and related services; the participation in tonnage, revenue or net revenue pools; the joint exercise of voting rights in liner conferences; a joint marketing structure and/or joint bill of lading; and any other activity ancillary to any of these and necessary for its implementation. 70. The Commission considers that consortia generally help to improve the productivity and quality of available liner shipping services by reason of the rationalization they bring to the activities of member companies and through the economies of scale they allow in the operation of vessels and utilization of port facilities. Transport users generally obtain a fair share of the benefits resulting from consortia if there is sufficient competition in the trades in which the consortia operate. In order to benefit from the block exemption, a consortium must possess, in respect of the ranges of ports it serves, a share of direct trade of under 3 0% when it operates within a conference and of under 35% when it operates outside a conference. A simplified opposition procedure applies to consortia whose share of the trade exceeds the above limit but does not exceed 50% of the direct trade. 1. 2. Inland rate fixing by ship liner conferences 71. On 8 June 1994 the Commission adopted a report38 on how it intends to apply the competition rules to liner shipping which it presented to the Transport Council. The report focuses on an analysis of the legal position with regard to price-fixing agreements concluded by shipowner members of liner conferences concerning the land section of multimodal transport services provided by them in the Community. It concluded that this practice was contrary to the Community competition rules and could not qualify for exemption as it stood. It suggested, however, that a new approach be established that was compatible with the competition rules and allowed inland container transport to be organized more efficiently and more to the advantage of shippers. 72. At the Council meeting in November 1994, Mr Van Miert, Competition Commissioner, agreed to report to the Council on the implementation of the guidelines, on the basis of the work of a wise men's committee. This committee, known as the Multimodal Group, was set up in July 1995, and would be submitting an interim report to him at the beginning of 1996 which would be presented to the Council in the first half of 1996. 73. In 1994 the Commission took two decisions prohibiting inland price fixing agreements : the TAA (Transatlantic Agreement) decision39 This does not include arrangements concerning the non-utilization of existing capacity, whereby shipping line members of the consortium refrain from using a certain percentage of the capacity of vessels operated within the framework of the consortium; See Article 4 of Regulation (CEE) No 870/95 and Commission Decision of 19 October 1994 concerning the Trans-Atlantic Agreement, in which the Commission prohibited an agreement for the non- utilization of capacity (OJ L 376, 31. 12. 1994, p. 1 ). SEC(94)933. Decision of 19 October 1994 (OJ L 376, 31. 12. 1994, p. 1 ). 25 and the FEFC (Far Eastern Freight Conference) decision. 40 On 10 March 1995 the Court of First Instance ordered the suspension of the TAA decision in so far as it prohibited joint price fixing in respect of the inland portions within the Community of through- intermodal transport services. 41 That order was confirmed on appeal by the Court of Justice on 19 July 1995. 42 In the meantime, a modified version of the TAA, the Trans-Atlantic Conference Agreement (TACA), was notified to the Commission. The Commission sent the parties to the TACA a statement of objections setting out the reasons why it had formed the preliminary view that it was appropriate to withdraw any immunity from fines in respect of inland price fixing which may have been brought about by the new TACA notification. 43 An application for interim measures preventing the Commission's anticipated decision to withdraw immunity from fines was dismissed by the Court of First Instance. 44 2. Air transport 2. 1. IATA tariff consultations 74. Regulation (EEC) No 1617/93 of 25 June 199345 states that Article 85(3) is applicable in particular to the holding of consultations on tariffs for the carriage of passengers and freight on scheduled air services between Community airports. The exemption is, however, subject to the conditions set out in Article 4 of the Regulation, notably that the exemption is applicable only if the consultations give rise to interlining. 75. According to the preliminary information obtained by the Commission in 1995, it would seem that, as a general rule, there are not many, if indeed any, interlining agreements on the carriage of goods. It is also clear that tariffs established through consultation by airlines are appreciably higher than normal market prices and therefore encourage airlines to increase their tariffs beyond the level normally set by competition. The Commission therefore considers it desirable to amend the above- mentioned Regulation in order to exclude from its scope tariff consultations relating to the carriage of freight. The Commission has published a notice46 giving the airlines and other interested parties the opportunity to make known their views in advance. It will decide on further action in 1996. 2. 2. Cooperation between airlines 76. Cooperation between airlines can facilitate the healthy restructuring of air transport in Europe and lead to an improvement in the quality of consumer services and better cost control. While the Commission does not intend to impede the restructuring of European air transport, it is monitoring operations to ensure they do not lead to restrictions of competition that are not indispensable and do not rule out opportunities for real competition from new operators on the main Decision of 21 December 1994 (OJ L 378, 31. 12. 1994, p. 17). Case T-395/94 R Atlantic Container Line and Others v Commission [1995] ECR 11-595. Case C-149/95 P (R) Commission v Atlantic Container Line and Others [1995] ECR 1-2165. Commission press release IP/95/646, 21. 06. 1995. Order of the President of the Court of First Instance of 22 November 1995, Case T-395/94 R II Atlantic (not yet published) Line and others v Commission Container OJ L 155, 26. 6. 1993, p. 18. OJ C 322, 2. 12. 1995, p. 15. 26 routes. The conditions proposed by Swissair/Sabena which the Commission agreed when it. approved the merger of the two airlines, and the conditions imposed by the Commission when it exempted the cooperation between Lufthansa and SAS, satisfy that objective. * Lufthansa/SAS 77. The general cooperation agreement between Lufthansa and SAS provides for the setting-up of an integrated air transport system between the two airlines, based on long-term relationships in the commercial and operational fields. Commercial cooperation will be particularly close on the routes between Scandinavia and Germany where the parties are considering setting up a joint venture. 78. The Commission stated47 that, although the agreement appreciably restricted competition on the markets in question, especially on the routes between Scandinavia and Germany, it could qualify for exemption provided that certain conditions were met, allowing existing and potential competition to be maintained. These conditions related chiefly to: a frequency freeze on certain routes operated by the two companies; the opening of frequent flyer programmes to airlines not operating such schemes; the obligation on Lufthansa and SAS to conclude, subject to certain conditions, interlining agreements with new entrants; termination of certain cooperation agreements with other airlines; transfer to new market entrants of slots in certain crowded airports. The Commission adopted a decision granting exemption on 16 January 1996. D - Trans-European networks and competition rules 79. In 1995, the Commission examined the question of the relationship between the private financing of trans-European networks and the Its conclusions were application of the competition rules. incorporated in the general report on trans-European networks, given a warm reception by the Madrid European Council on 15 and 16 December. In the report, the Commission set out the following guidelines on the handling of competition questions and announced that it would set up a "one-stop help-desk" (fax: 32. 2. 295 65 04) to provide project managers with additional information on the guidelines. 80. The Commission proposes to apply the following principal criteria when processing cases submitted to it : (i) where the infrastructure operator wishes to give enterprises the opportunity to reserve capacity as soon as a project is launched, the opportunity should be offered to all Community enterprises likely to be interested; (ii) capacity reserved by an enterprise must be proportional to the direct or indirect financial commitments entered into by the enterprise and correspond to planned operational requirements covering a reasonable period; (iii) new infrastructure is generally not congested when it first enters into service. Therefore, an undertaking or group of undertakings within the meaning of Article 3 of Directive 91/440/EEC should not reserve all available capacity. Some of the capacity should remain available to enable other firms to operate competing services; (iv) enterprises holding operating rights may not object to the loss of such rights if they are not used; (v) the duration of agreements reserving capacity must be reasonable and adapted to each case. OJ C 201, 5. 8. 1995, p. 2. 27 This list of criteria is not exhaustive and does not prejudge the Commission's final position, which will be defined in the light of the specific characteristics of each project. 81. The Commission will endeavour to deal rapidly with the notifications of agreements relating to the financing of trans-European networks. In particular, it is considering adopting a final decision in not more than six months' time, provided the parties have contacted the Commission before finalizing the agreements. Gas Interconnector 82. In its White Paper on growth, competitiveness and employment, the Commission highlighted the importance of new European infrastructure networks that could help overcome the fragmentation of certain markets in Europe. On 17 May 1995 the Commission issued a comfort letter clearing a joint venture arrangement between nine leading European gas companies for the construction and operation of a UK-Belgium underwater gas interconnection, in particular a high pressure gas pipeline which will be the first connection between the United Kingdom and continental gas markets. Given the possibility for third parties to acquire, on freely negotiated terms, access to transport capacity through the interconnector, and in view of the fact that this project will create opportunities for competition between markets which so far are quite isolated, the Commission found that the pro-competitive effects of the joint venture clearly outweigh the restrictions of competition. In its comfort letter, the Commission also ensured that the agreements will operate in practice in such a way as to effectively meet demand for any reverse flow capacity which may arise. E - Competition and environment 83. In 1995 the Commission once again made clear how it intended to apply competition policy to environmental matters, especially voluntary agreements. 48 84. Community environmental policy favours the "polluter pays" principle. The effectiveness of this principle depends, in particular, on the functioning of the pricing mechanism; this must reflect, in terms of costs, the negative effects of an economic activity on the environment. For the mechanism to act correctly as an indicator, enterprises must internalize the costs of environmental protection. The "polluter pays" principle does not preclude state aid for environmental protection, under certain conditions (see below). Distributing resources in ways which respect the environment can take the form of direct public regulation, taxation, "voluntary" agreements and self-regulation. Voluntary agreements are contracts between industry and public administrations which include a number of environmental objectives to be achieved by the industry in question according to a timetable. Voluntary agreements may relate both to objectives and to the means of achieving them. The use of voluntary agreements is growing in most OECD countries in parallel with a trend towards deregulation and less intervention by the See the document "Competition and the environment" presented by DG IV to the Round Table on the Environment and Competition held by the OECD Committee on Law and- Competition policy, Paris, May 1995. 28 state. Voluntary agreements and self-regulation are often regarded as a less bureaucratic and more flexible solution than more traditional approaches. Voluntary agreements or self-regulation, however, may contain restrictions of competition under Article 85(1) of the Treaty. The Commission is in fact currently examining several complaints on this matter. 85. When the Commission examines individual cases, it weighs up the restrictions of competition arising out of an agreement against the environmental objectives of the agreement, and applies the principle of proportionality in accordance with Article 85(3). In particular, improving the environment is regarded as a factor which contributes to improving production or distribution or to promoting economic or technical progress. The Commission intends, however, to remain very firm with regard to the principle of non-closure of national markets to foreign operators. It will also be very vigilant about problems of access by third parties to a system and about agreements which could result in a product being squeezed out of the market. The Commission also takes a negative view of multilateral tariff or price fixing resulting from an agreement on the environment; its assessment will, however, be on a case-by-case basis and will look at whether any such agreement is indispensable. The aim of environmental protection is not necessarily sufficient in itself to warrant an agreement on prices being regarded as indispensable. F - Secondary product markets 86. Several complaints which the Commission received concern the alleged abuse of a dominant position in secondary product markets such as spare parts, consumables or maintenance services. These products are used in conjunction with a primary product and have to be technically compatible with it (e. g. software or hardware peripheral equipment for a computer). Thus, for these secondary products there may be no or few substitutes other than parts or services supplied by the primary product supplier. This prompts the question whether a non-dominant manufacturer of primary products can be dominant with respect to a rather small secondary product market, i. e. secondary products compatible with a certain type of that manufacturer's primary products. The question raises many complex issues. Producers of primary equipment argue that there cannot be dominance in secondary products if there is lack of dominance in the primary product market because potential buyers would simply stop buying the primary products if the prices for parts or services were raised. This theory implies a timely reaction on the primary product market due to consumers' ability to calculate the overall life-time costs of the primary product including all spare parts, consumables, upgrades, services, etc. It furthermore implies that price dicrimination is not possible between potentially new customers and "old" captive customers or that switching costs for the latter are low. On the other hand, complainants who produce consumables or maintenance services assume dominance in the secondary product market if market shares are high in this market, i. e. this approach focuses only on the secondary products without analysing possible effects emanating from the primary product market. In the Commission's view, neither of these approaches reflects reality sufficiently. Dominance has always been defined by the Commission as the ability to act to an appreciable extent independently of competitors and consumers. Therefore, an in-depth fact-finding1 exercise 29 and analysis on a case-by-case basis are required. In order to assess dominance in this context the Commission will take into account all important factors such as the price and life-time of the primary product, transparency of prices of secondary products, prices of secondary products as a proportion of the primary product value, information costs and other issues partly mentioned above. A similar approach was taken by the US Supreme Court in its 1992 Kodak decision. Pelikan/Kyocera 87. The Commission took this approach when it rejected in 1995 the complaint of Pelikan, a German manufacturer of toner cartridges for printers, against Kyocera, a Japanese manufacturer of computer printers including toner cartridges for those printers. Pelikan's complaint alleged a number of practices by Kyocera to drive Pelikan out of the toner market and accused Kyocera, among others, of abusing its dominant position in the secondary market although Kyocera was clearly not dominant in the primary market. Apart from the fact that there was no evidence of behaviour that could be considered abusive, neither did the Commission find that Kyocera enjoyed a dominant position in the market for consumables. This was due to the particular features of the primary and secondary markets. Thus, purchasers were well informed about the price charged for consumables and appeared to take this into account in their decision to buy a printer. "Total cost per page" was one of the criteria most commonly used by customers when choosing a printer. This was due to the fact that life-cycle costs of consumables (mainly toner cartridges) represented a very high proportion of the value of a printer. Therefore, if the prices of consumables of a particular brand were raised, consumers would have a strong incentive to buy another printer brand. In addition, there was no evidence of possibilities for price discrimination between "old"/captive and new customers. G - Liberal professions 88. The free movement of liberal professions in the Community means that certain restrictive practices in this field are increasingly likely to affect trade between Member States. One can expect a growing number of cases in this area. On several occasions the European Parliament has called on the Commission to apply the competition rules to the liberal professions. 49 Coapi 89. On 30 January the Commission took a decision under Article 85 applying the competition rules in this field. The Colegio Oficial de Agentes de la Propiedad Industrial (Coapi) is the professional association of industrial property agents in Spain. All agents practising in Spain are members. Industrial property agents give advice to the general public, and assist or represent clients in proceedings involving industry property rights. The Commission found that the fixing by the general meeting of Coapi of compulsary minimum scales of charges for the cross-border services provided by its members constitutes an infringement of Article 85(1). In conformity with existing Community law, the Commission confirmed that the national legal framework within which such agreements or Resolution on the XlXth Report on Competition Policy, point 9 (iii), and Resolution on the XXth Report on Competition Policy, point 38 and the Commission's response hereto in the XXIst Report on Competition Policy, pp. 233 and 234. 30 decisions by liberal professions are made, is not relevant to the application of Article 85. Even if public authorities encourage such behaviour or delegate to an association of undertakings the power to fix the prices to be applied by its members, the association's exercise of that power does not fall outside the scope of Article 85 of the Treaty. H - Subsidiarity and decentralization 90. In his address to the European Parliament on the occasion of the investiture debate of the new Commission, the President of the European Commission insisted on the necessity to make a constant effort to concentrate on essentials : "Less action, but better action". As far as cases falling within the scope of Articles 85 and 86 are concerned, this principle is applied by the Commission in limiting its action to those arrangements which have a significant effect on competition and which are likely to affect trade between Member States appreciably. Moreover, in view of the responsibilities incumbent on the Commission, which has the sole power to authorize certain agreements, the Commission is encouraging decentralization, in particular in cases which may lead to a prohibition decision. 1. De minimis agreements 91. Agreements whose effects on trade between Member States or on competition are negligible are not caught by the ban on restrictive agreements contained in Article 85(1). Only those agreements are prohibited which have an appreciable impact on market conditions. For this reason, it is essential for the Commission to make a proper analysis of the market in which those agreements operate. The Commission's notice on agreements of minor importance sets quantitative criteria to give guidance as to the concrete meaning of the concept of "appreciability". Despite the recent increases in thresholds,50 it is believed that a further review of the de minimis concept may be justified. The Commission has therefore started internal deliberations on this issue with a view to presenting new proposals for consultation during the course of 1996. ' 2. Decentralization 92. In its attempt to deal as a matter of priority with cases having a significant Community dimension, the Commission is also encouraging national enforcement of Community competition law. It considers that there is not normally a sufficient Community interest in examining a complaint when the plaintiff is able to secure adequate protection of his rights before national courts. 51 In its SACEM judgments of 24 January 1995, the Court of First Instance further specified the conditions under which the Commission has the right to reject a complaint on the ground that it lacks a significant Community interest. 52 In 1995 several cases were closed on this basis. Commission notice concerning the updating of the 1986 communication on agreements of minor importance (OJ C 368, 23. 12. 1994). The Court of First Instance endorsed this practice for the first time in its judgment of 17 September 1992 in Case T-24/90 Automec v Commission [1992] ECR 11-2223, paragraphs 91 to 94. Case T-114/92 BENIM v Commission [1995] ECR 11-147 and Case T-5/93 Tremblay v Commission [1995] ECR 11-185. The Court of First Instance, referring to the Automec II judment, indicated that, in order to assess the Community interest, the Commission must balance the significance of the alleged infringement as regards the functioning of the common market, the probability of its being able to establish the existence of the infringement and the extent of the investigative measures required to enforce the competition rules. 31 93. An important step forward in the decentralization effort is the Commission's notice on cooperation between national courts and the Commission in applying Articles 85 and 86. 53 In 1995 several national courts in Spain, France, Germany and Belgium have relied upon the cooperation mechanism laid down in this notice to obtain information from the Commission on competition issues. In its preliminary ruling of 12 December 1995,54 the Court of Justice found that the same principles of cooperation between the Commission and national courts apply in the field of agriculture, where Regulation No 26 determines the extent to which the Community competition rules apply. It is worthwhile noting that, according to the Court's judgment, the national court can, in its assessment, take into consideration the criteria established by the case-law of the Court, as well as the practice of the Commission, which practice is evidenced not only by the decisions, adopted by the Commission but also from other sources, including in particular its reports on competition policy and its communications. 94. It is not only national courts, but also national competition authorities, that have an important role to play in raising the level of enforcement of Community competition law and, generally speaking, in ensuring unrestricted and fair competition in the Union. In cases where an appreciable economic effect is felt mainly in one Member State, national authorities are closer to the market and may thus be better placed to handle the case. The Commission has pressed ahead with its preparation of a notice on cooperation between the Commission and national competition authorities55, pursuant to which the Commission will inform and consult the national authorities when the latter apply Article 85(1) or 86 or national competition law in cases with a Community dimension. A draft has already been submitted to the Member States for consultation. Further consultation of interested third parties will follow on the basis of a draft notice which the Commission intends to publish in 1996. 95. Decentralized enforcement should not, however, lead to differing application of competition law in the European Union. The Commission is therefore also pursuing uniformity in the substance and application of national competition laws. This is done not through any formal act of harmonization but through a continuation of, and improvement in, communication and cooperation between Community and national enforcement officials. At present, nine Member States have competition laws with respect to restrictive agreements and abuses of a dominant position which substantially resemble those of the Community. Most of the others are considering amendments to national law aimed at bringing them into line with Community law. This process of "soft harmonization" is a natural consequence of the integration process, which creates pressure for a level-playing field throughout the Community. The fact that a national court or national competition authority is already dealing with a case concerning the the compatibility of an agreement or practice with Article 85 or 86 is a factor which the Commission may take into account, OJ C 39, 13. 2. 1993, p. 6. Joined cases C-319/93, C-40/94 and C-224/94 Dijkstra/Frico (not yet published). Melkunie Melkunie, de Bie/Campina Domo, van Roes sel/Campina The conclusions of an ad hoc group of representatives of national authorities and the Commission which were approved by the Directors-General for Competition in. 1994 served as the basis for the Commission's draft. See XXIVth Report on Competition PoJ. icy (1994), points 40-42. 32 I - Statistical overview Graph 1 : New cases 600 500 4 400 300 200 100 • Cases opened on Commission's ow n initiative B Complaints • Notifications 1991 1992 1993 1994 1995 96. During the year the Commission registered 559 new cases, including 368 notifications, 145 complaints and 46 cases opened on the Commission's own initiative. This represents an increase of more than 42% compared with 1994 and exceeds the average number of incoming cases over the last eight years by more than 32%. Almost half of the increase in new cases (78 cases) is attributable to the transfer of cases pending by the EFTA Surveillance Authority following the accession of Sweden, Finland and Austria to the Union. 33 Graph 2 : Cases dealt with 1200 1000 + 800 600 400 4 200 I Formal decisions I Informal procedure 1991 1992 1993 1994 1995 97. During the year the Commission closed 433 cases in total, of which 419 through an informal procedure (including comfort letter, discomfort letter, rejection of complaint and administrative closure of the file56) and 14 by formal decision. In 1995, the number of cases closed fel by 23. 4% compared with 1994. Cases closed because agreements are no longer in force, because the impact was too slight to warrant further investigation, because complaints had become moot or had been withdrawn or because investigations had not revealed any anti-competitive practice. 34 Graph 3 : Stock of cases over time 2500 2000 1500 4 1000 500 4 1991 1992 1993 1994 1995 I Input of cases r":—\ Output of cases -•— Stock of cases 98. The overall net result of input and output in 1995 leads to an increase of the stock of cases remaining open at the end of the year for the first time since 1988. This increase is however rather modest; more specifically it is less than 12% and, if the number of additional files of the new Member States are not taken into consideration, less than 5%. The actual stock of cases is still considerably lower than the more than 3000 cases pending at the end of the 1980s and corresponds roughly to the number of cases being actively dealt with. The Commission is nonetheless aiming at a further reduction in the existing stock of cases, to be achieved in particular by further improving the efficiency of its proceedings and by encouraging the decentralized application of the competition rules where appropriate. 35 II - State monopolies and monopoly rights : Articles 37 and 90 A - Introduction 1. Services of general economic interest at the heart of the Commission's liberalization policy 99. The Commission has pursued its policy of liberalizing and opening up to competition certain sectors traditionally subject to monopoly such as telecommunications, energy, postal services or transport. As these sectors are essential to individual consumers, competitiveness, growth and job creation in the European economy as a whole, the gains in efficiency resulting from the introduction of some competition will have generally positive results for the citizens of Europe. Otherwise, we will not have a true internal market while these essential sectors continue to be organized on a purely national and monopolistic basis. Because of the importance of these sectors to our society and because of their specific characteristics, e. g. their network structure, Member States have in the past granted exclusive or special rights to public or private operators or allowed other restrictions of competition in exchange for the operation of services of general economic interest such as the supply of a universal service to all citizens on specific terms and at affordable prices. The Commission has always acknowledged that these general economic interest objectives are legitimate but considers that the means traditionally used ,to provide them are no longer always justified, particularly in view of technological developments and the new needs of consumers, and also in view of European integration itself. This is particularly true for the information society, a source of growth, new services and new jobs in the years ahead. A thorough review is therefore needed, in the light of these new realities, of the instruments most likely to provide the public with the quality services it requires. The Commission considers that the introduction of competition can, in many cases, improve service quality, allow innovation and the creation of employment and help to cut consumer prices. The removal of obstacles to free competition is, however, only one aspect of the Commission's liberalization policy. On the one hand, the adoption of a new regulatory framework will frequently be necessary to ensure that universal service is provided in a competitive environment. On the other hand, where certain restrictions of competition prove essential in maintaining a universal service, the Commission recognizes the legitimacy of these restrictions under Community law (as in the case of state aid). The Commission therefore considers that the development of competition policy is fully compatible with public service. It should also be noted that the liberalization of a sector is different from the privatization of public enterprises operating in the sector. Whilst the introduction of competition can in certain cases stem from Community rules, the latter are neutral as regards the public or private nature of enterprises. 2. Article 90(3) Directives 100. In order to achieve the objective of introducing competition, Article 90(3) gives the Commission the power to adopt decisions or directives that are binding on the Member States. This latter possibility is occasionally objected to by certain parties. 36 In practice, even if Article 90(3) allows the Commission to adopt directives, the Court of Justice has stipulated that the provision empowers it only to establish general rules defining the obligations already imposed on Member States by the Treaty with regard to public undertakings or undertakings granted special or exclusive rights, or to take the necessary preventive measures to allow it to carry out its monitoring function. The limited power conferred on the Commission by Article 90(3) is thus different from and more specific than the power of the European Parliament or the Council to adopt directives. The Commission may not impose new obligations on Member States; it may only determine, with regard to all the Member States, the specific obligations imposed on them by the Treaty. The extent of the Commission's duties and powers consequently depends on the scope of the rules that are to be complied with. The Commission has always used this instrument with caution. Directives under Article 90(3) have been used only in situations where the existence of many infringements of the fundamental rules of the EC Treaty made them necessary to avoid a multiplicity of infringement proceedings and to give operators a minimum amount of legal certainty. 57 These initiatives have generally been taken in response to concerns expressed by the Council or Parliament. The Commission has always attached the greatest importance to the need for this instrument to be used as part of a transparent procedure involving the broadest possible dialogue with the other Union institutions, Member States and interested parties. This is the approach normally adopted in the initial assessment -stages, through the publication by the Commission of Green Papers or discussion papers intended to stimulate debate at the public consultation stage. On the basis of the results of the consultations, studies by experts and information obtained by it, the Commission adopts a draft directive which is presented for comments to Parliament, the Economic and Social Committee, the Committee of the Regions and the Member States. The draft text is also published in the Official Journal of the European Communities to enable other interested parties to submit their comments. The adoption by the Commission of the final Article 90(3) directive is in any event preceded by careful scrutiny of comments received, especially any comments from the European Parliament, the Economic and Social Committee and the Committee of the Regions. The discussions held during the year on the directives on cable television networks, mobile communications and the full liberalization of telecommunications are good illustrations of this approach. 3. Other instruments available to the Commission 101. Article 90(3) also enables the Commission to adopt individual decisions, where Community law is applied to specific cases; the Commission Directive 80/723/EEC of 25 June 1980 on the transparency of financial relations between Member States and public undertakings (OJ L 195, 29. 7. 1980, p. 35), as amended by Commission Directive 85/413/EEC of 24 July 1985 (OJ L 229, 28. 8. 198(,p. 20) and Commission Directive 93/84/EEC of 30 September 1993 (OJ L 254, 12. 10. 1993, p. 16); Commission Directive 88/301/EEC of 16 May 1988 on competition in the markets in telecommunications terminal equipment (OJ L 131, 27. 5. 1988, p. 73); Commission Directive 90/388/EEC of 28 June 1990 on competition in the markets for telecommunications services (OJ L 192, 24. 7. 1990, p. 10), as amended by Commission Directives 94/46/EC of 13 October 1994 on satellite communications (OJ L 268, 19. 10. 1994, p. 15) and 95/51/EC of 18 October 1995 on the abolition of the restrictions on the use of cable television networks for the provision of already liberalized telecommunications services (OJ L 256, 26. 10. 1995, p. 49). 37 decisions are very similar in substance to Commission decisions in other fields (aid) , and their legality is also monitored by the Court of Justice. In certain cases, the Commission may find it necessary, in order to enhance legal certainty and transparency, to explain the criteria it intends to follow in monitoring compliance of Community law by Member States and operators in a specific sector. The draft communication on the application of the Treaty rules to the postal service published in 1995 is an example of this sort of initiative. B - Telecommunications 1. General measures 102. The Commission continued, with the support of the Council and the European Parliament, to promote liberalization in the field of telecommunications. On 25 January it adopted the second part of the Green Paper on the liberalization of telecommunications infrastructures. The Green Paper examined the regulatory conditions required to ensure full competition in the telecommunications sector within the time-frame agreed by the Council. 58 After wide-ranging consultations on the Green Paper, the Commission adopted on 3 May a Communication on the consultations59 summing up the results and listing the measures necessary to complete the moves towards full liberalization and establishment of a clear regulatory framework. This includes: setting the date of 1 January 1998 for the discontinuation of all remaining exclusive and special rights for both public voice telephony and network competition by way of Article 90 directives under EU competition law; ensuring the financing of a universal service and clarifying the interconnection of access conditions, via further development of the legislative framework ensuring Open Network Provision; further development of the regulatory framework at national and European level, including discussion of future interaction of national and EU regulation in this sector. Three Commission proposals for directives drafted in this connection under Article 90(3) were discussed and/or adopted during the year. 2. Cable TV liberalization directive 103. On 18 October the Commission adopted a directive allowing cable TV infrastructure to be used to provide already liberalized telecommunications services. 60 The draft had been issued for public consultation on 21 December 199461. Although not bound by specific Treaty requirements, the Commission has sought to establish a transparent and open procedure for the adoption of Article 90(3) directives. The more than forty written comments received expressed their broad support for the Commission draft. Council Resolution of 22 December 1994 on the principles and timetable for the liberalization of telecommunications infrastructures (OJ C 379, 31. 12. 1994, p. 4 ). COM{95)158. Commission Directive 95/51/EC of 18 October 1995 amending Directive 90/388/EEC with regard to the abolition of the restrictions on the use of cable television networks for the provision of already liberalized telecommunications services (OJ L 256, 26. 10. 1995, p. 49). XXIVth Report on Competition Policy (1994), point 220. The directive provides for the abolition of restrictions on the use of transmission capacity on cable TV networks for all télécoms services, apart from public voice telephony from 1 January 1996, and ensures that cable TV networks are allowed (i) to interconnect with the national public télécoms network, and (ii) to interconnect with each other directly. It also calls on the Member States to impose accounting transparency and the separation of financial accounts between the two business activities as soon as a turnover of ECU 50 million is reached in the market for telecommunications. This directive is only a first step towards the objective of liberalizing the infrastructures, which will be achieved in the full competition directive. It will also facilitate from 1 January 1996, the effective provision of already liberalized services. 3. Mobile telephony liberalization directive 104. The second directive concerns the liberalization of mobile and personal communications. A draft was published for public consultation by the Commission on 1 August 1995,62 with a period of two months being allowed for comments. It was transmitted to the Council, the European Parliament, the Economic and Social Committee, and the Committee of the Regions. Comments were broadly in favour of the wording of the draft. At its meeting on 20 December 1995, the Commission agreed the Article 90(3) directive in principle. The directive was formally adopted by the Commission on 16 January 1996. 63 The Commission's aim is to ensure fair competition as regards both the granting of licences to operators and the management of mobile telephony networks in the European Union. This should help new entrants to gain access to the market and facilitate the interconnection of national networks. The directive seeks to achieve this by requiring Member States to abolish all exclusive or reserved rights in the field of mobile communications and to put in place, if the Member States have not already done so, authorization procedures for the granting of licences. It also calls on the Member States to allow new entrants on the market in mobile telecommunications services to offer their services via their own infrastructures or via so-called alternative infrastructures. This is indispensable if competition is to be fostered since, as the Commission noted in its Communication on the 1992 review of the telecommunications sector,64 high tariffs for and lack of availability of the basic infrastructure over which liberalized services are operated or provided to third parties have delayed the widespread development of such services. However, the Member States who have less well-developed networks (Spain, Greece, Ireland and Portugal) may benefit, if they wish, from a five-year derogation period. Luxembourg, because of the small size of its network, may extend the deadline by two years. The legal reasoning for the removal of the special or exclusive rights under this directive is that they constitute a restriction on the freedom to provide services under Article 59. In addition, however, the directive is based on Article 86, with recital 10 reading as follows : Draft Commission Directive amending Directive 90/388 EEC with regard to mobile and personal communications (OJ C 197, 1. 8. 1995, p. 5 ). Commission Directive 96/2/EC of 16 January 1996 amending Directive 90/388/EEC with regard to mobile and personal communications, OJ L 20, 26. 1. 1996, p. 59. Communication of 21 October 1992 on the 1992 review of the situation in the telecommunications service sector (SEC (92) 1048). 39 "The exclusive rights that currently exist in the mobile communications field were generally granted to organizations which already enjoyed a dominant position in creating the terrestrial networks, or to one of their subsidiaries. In such a situation, these rights have the effect of extending the dominant position enjoyed by those organizations and therefore strengthening that position, which, according to the case-law of the Court of Justice, constitutes an abuse of a dominant position contrary to Article 90. " 4. Full competition directive 105. In its resolution of 22 December 1994, the Council of Ministers reaffirmed that 1 January 1998 should be the date for the liberalization of telecommunications infrastructures and public voice telephony, services, subject to transitional arrangements for certain Member States ( i. e. Greece, Spain, Portugal, Ireland : up to five years; Luxembourg : up to two years). The Commission responded to this by proposing a package of two measures: an Article 90(3) Commission directive concerning the introduction of full competition into the telecommunications markets, and a proposal for a Council and Parliament directive based on Article 100a of the EC Treaty with a view to The package thus harmonizing the rules for interconnection. demonstrates the need for competition policy to develop in close cooperation with the more general aspects of Community telecommunications policy. 106. As regards the Article 90(3) directive, this was published for comments on 10 October 1995 and envisages the liberalization of all telecommunications services including voice telephony by 1 January 1998, with transitional periods for certain Member States. Restrictions on the use of alternative infrastructures must be lifted by 1996 (except for public voice telephony, which is to be liberalized in 1998) , and the conditions and rules for the authorization of interconnection must be established by 1997. The directive also lays down the fundamental principles governing authorization of new entrants on the markets for voice telephony and telecommunications infrastructures. These principles guarantee the introduction of competition into these sectors and list the measures necessary to safeguard universal service in the Member States. The directive also provides that Member States must publish the authorization conditions and procedures, as well as the terms and conditions for interconnection. In addition, Member States with underdeveloped or small networks can benefit from derogations of five and two years respectively. 107. In parallel with its action to establish the above-mentioned regulatory framework, the Commission pursued its efforts to ensure in the full • implementation of the existing directives telecommunications sector and in particular the Services Directive. 65 On 4 April, the Commission issued a Communication66 on the status and implementation of this directive,which affirmed the Commission's intention to ensure that the problems and gaps in implementation identified in the Communication are resolved. Commission Directive 90/388/EEC on competition in the markets for telecommunications services (OJ L 192, 24. 7. 1990, p. 10). The Services Directive provided for the removal of special and exclusive rights granted by Member States for the supply of all telecommunications services other than voice telephony; it came to be recognized as a cornerstone of the EU framework for liberalizing the European telecommunications market. Commission Communication of 4 April 1995 to the European Parliament and the Council on the status and implementation of Directive 90/388/EEC on competition in the markets for telecommunications services (OJ C 275 of 20. 10. 1995, p. 2 ). 40 5. Infringement proceedings under Article 90(3) 108. As well as directives of general application the Commission is also authorized under Article 90(3) to take decisions against Member States in individual cases. It signalled its intentions to do this as regards possible discrimination against second mobile phone operators in several Member States. State operators already enjoy significant advantages over new entrants - such as the universal phone network, a dominant position on the market and an established mobile user base (often with permission to offer mobile services having been granted without any requirement of a selection process). The Commission has therefore taken care to ensure that second operators receive fair treatment from Member States. In particular, it was concerned about the auction procedure which a number of Member States included in the selection criteria for the second operator. Such an auction, critically analyzed in the 1994 Green paper on mobile and personal communications,67 results in the award of second licences not only on the basis of a comparison of intrinsic qualitative elements but also on the basis of a financial bid above a certain set threshold. Omnitel Pronto Italia 109. On 4 October, the Commission took a formal decision under Article 90 (3)68 in the case of Italy for discriminating against Omnitel Pronto Italia and in favour of Telecom Italia Mobile (the state operator). The discrimination which strengthened the dominant position of Telecom Italia Mobile, took the form of a requirement that Omnitel Pronto Italia pay an entry fee for a GSM licence, without a similar payment being required from Telecom Italia and without compensation for Omnitel in the form of an easing of the regulatory environment. The decision provided that the Italian Government must either require that Telecom Italia Mobile make an identical payment or adopt, after receiving the agreement of the Commission, corrective measures equivalent in economic terms. In addition, the measures definitively adopted must not undermine the competition introduced by the authorization of the second GSM operator. GSM Radiotelephony services in other Member States 110. The Commission has also been taking action against a number of other countries (including Belgium, Spain and Ireland) with a view to establishing a level playing-field for the second GSM operator. For example, only after discussions with the Commission did Belgium give an undertaking to charge Belgacom (the state operator) a similar fee for its existing GSM licence as was to be paid by the second GSM provider, Mobistar. The Commission is continuing to monitor the operating conditions for second operators in the Member States. Vebacom 111. The Commission has also taken action under Article 90 in other areas of telecommunications. In April, it received a complaint under Article 90 from Vebacom, the telecommunications subsidiary of VEBA AG, a German utilities holding company. Vebacom had made several unsuccessful attempts to obtain a licence for a broadband telecommunications network based on SDH (Synchronous hierarchy) technology which would allow the transfer of data between 36 different sites of the German public television broadcaster ARD. The Commission Towards the personal communications environment - Green paper on a common approach in the field of mobile and personal communications in the European Community (COM(94)145). OJ L 280, 23. 11. 1995, p. 49-57. 41 formed the preliminary view that the complaint was justified, in particular since Vebacom intends to offer a service based on a new technology (SDH) which was not offered by Deutsche Telekom AG, the holder of the infrastructure monopoly in Germany. After informal discussions with the Commission, the German Ministry of Posts and Telecommunications agreed to grant a licence for the establishment and operation of an alternative telecommunications network. C - Energy 112. The Council continued its in-depth examination of the amended proposals for directives concerning common rules for the internal market in electricity and gas presented by the Commission on 7 December 1993. 113. However, it has been impossible in 1995 to make any substantial progress with the liberalization of the Community's electricity and natural gas markets, which, with a few exceptions, are still dominated by exclusive rights or monopolies. The Council of Ministers, at its meeting on 2 0 December, was not in a position to agree on a common position with regard to the draft Directive concerning common rules for the internal market in electricity, although the Spanish Presidency could conclude that negotiations had reached the final stage and that it should be possible to take a decision early in 1996. 114. Early in the year and at the request of the Council, the Commission examined the possibilities for coexistence between the Commission's negotiated access approach (consumers and producers negotiate access to the grid with its operator) and the so-called single buyer concept (one single entity within a system responsible for all buying and selling and for public services). In its working paper on the organization of the internal electricity market,69 the Commission concluded that the original single buyer model was incompatible with the Treaty and would not provide equivalent economic results or reciprocity between the two systems. It also suggested a number of modalities for the single buyer model which would permit coexistence of the two systems. These modalities covered the degree of consumer choice for all eligible consumers, the possibility of imports and exports under objective conditions, measures to ensure transparency and to avoid any distortions of competition, guarantees for fair competition in generation and also its opening up to independent producers, and the possibility of establishing direct lines. The Council at its meeting in June accepted the Commission's position in principle by concluding that coexistence of the two systems could take place only on the basis of modifications to the single buyer model. However, little agreement was forthcoming on the list of modalities proposed by the Commission. 115. The Spanish Presidency presented a compromise text in July which incorporated all the political agreements already reached in previous Council conclusions, including the conclusions of the Commission's March working paper, and attempted to come up with solutions to problems not yet solved. It accepted the coexistence of the negotiated access and single buyer systems, but modified the latter to take into account a number of the required changes. This compromise text was intensively discussed throughout the second half of the year. 116. The two central issues outstanding concern the degree of market opening via the definition of eligible customers and especially the question whether distributors should be among the eligible customers that would be free to contract with the most efficient producers. SEC(95)464 of 22. 3. 1995. 42 Furthermore, some Member States fear that the proposed solution for public-service obligations may be abused in a manner that unduly restricts competition. 117. The Commission deplores the fact that it has not been possible to reach agreement on the proposed directive, especially in view of the importance of the subject. As stated in the Ciampi report,70 the failure to liberalize the energy sector is having a very detrimental effect on the competitiveness of the European economy. D - Postal services 118. On 26 July the Commission adopted a package of measures consisting of a proposal for a European Parliament and Council Directive establishing common rules for the development of postal services and a draft Commission communication on the application of the competition rules to the postal sector. The aim of the measures is to guarantee the provision of universal service and at the same time to open up the postal market to greater competition. The proposal,71 based on Article 100a of the EC Treaty, provides for mandatory universal services to be provided throughout the Community to all citizens at affordable prices, with a high degree of quality, including in remote areas and peripheral regions of the Community. In order to ensure the financial viability of the universal service, the proposal defines harmonized criteria for the services which may be reserved for the universal service providers. Thus, domestic mail in the Member States weighing not more than 350 g where the tariff is less than five times the rate for a standard letter (up to 20 g), direct mail and incoming cross-border mail may continue to be reserved until 31 December 2000 (subject to review of the direct mail sector by 30 June 1999). The proposal also requires the Member States to set, in particular, universal service tariffs at affordable prices fixed in relation to the costs and to define quality standards applicable to national services which are consistent with the Community measures. The draft communication,72 which will be the subject of a public consultation procedure, complements the proposal for a Directive. The Commission sets out the principles governing how it intends to apply the competition rules in the Treaty to the postal sector, in order to facilitate gradual, controlled liberalization of the postal market. It describes the approach it intends to adopt to analysing State measures restricting the freedom to provide services or to compete on the postal markets, in relation to the Treaty provisions. The Commission particularly raises questions of non-discrimination in access to the postal network, identifying cross-subsidies and defining the mandatory safeguards necessary to ensure fair competition. E - Transport 1. Airports 119. The Commission is pursuing its efforts to ensure that the liberalization of ' air transport in the European Union is not jeopardized by anti-competitive practices at airports. It continued See footnote 2 above. Proposal for European Parliament and Council Directive on common rules for the development of Community postal services and improved quality of service (OJ C 3 22, 2. 12. 1995 p. 22). Draft Commission communication on the application of the rules of competition to the postal sector and in particular on the assessment of certain State measures relating to postal services (OJ C 322, 2. 12. 1995, p. 3 ). 43 its investigation of several complaints and took decisions aimed at improving competition at certain major airports of the European Union. 1. 1 Landing fees Brussels-National Airport 120. The Commission adopted a decision under Article 90 (3 )73 concerning the system of discounts on landing fees charged at Brussels-National Airport under the Royal Decree of 22 December 1989. British Midland, the airline which lodged the complaint, considered that the system enabled the airline Sabena, its main competitor on the Brussels-London route, to benefit from a discount of 18% on its landing fees, although no other airlines qualified for a reduction. After examining the complaint, the Commission concluded that the system constituted a state measure within the meaning of Article 90(1), read in conjunction with Article 86, as it had the effect of applying to the airlines dissimilar conditions for equivalent transactions connected with landing and take-off and hence introducing distortions of competition. The Commission considered that such a system could be justified solely by economies of scale achieved by the airport operator. This did not apply in the case in question. The Commission therefore requested the Belgian authorities to put an end to the system. 1. 2. Ground handling its also continued Commission 121. The of anti-competitive practices in ground handling (ramp, terminal and/or cargo handling). Positive results were achieved during the year, the Commission's approaches to the authorities of Member States having resulted either in a gradual opening-up of the market (e. g. in Ireland, where the ground handling market has been open to a second operator since 1 January 1995), or specific commitments to this end (e. g. in Greece and Spain, whose authorities notified the Commission of their plans to improve efficiency in this sector, as well as a liberalization timetable). investigation The Commission also continued its examination of the complaints lodged under Article 86 of the Treaty against two private airport companies responsible for operating two of the largest airports in the Union: Frankfurt and Milan. 122. A fresh development in this area was the agreement in principle, reached on 8 December, by the Transport Council, on the Directive relating to the liberalization of ground handling services in Community airports. The proposal, based on Article 84 of the Treaty, had been presented by the Commission in December 1994 and followed the Council Resolution of 24 October 199474 on the situation in European civil aviation and the Commission communication on 'The way forward for civil aviation in Europe'. Ground handling is an activity related to air transport without which carriers would be unable to carry on their business. Its liberalization forms part of the completion of the single market in air transport and follows the adoption of the Community rules on slot allocation and the operation of computerized reservation systems. It is also intended to help European airlines to improve control of their OJ L 216, 12. 9. 1995, p. 8. OJ C 309, 5. 11. 1994, p. 2. 44 operating costs and better match their services to customer requirements. The proposal also provides for a transitional market adjustment period, fixing different deadlines for entry into force based on certain reference thresholds. Full liberalization should take place, depending on the sector and the case at issue, between 1998 and 2003. 2. Ports 123. Following the judgment of the Court of Justice in Port of Genoa,7S Italy initiated a reform of its port system which led to the adoption in 1994 of Law No 84. In principle, the law provides for the opening-up to competition of the market for port handling operations (loading and unloading). In practice, however, this has not proved the case as in some Italian ports the local authorities have systematically refused to grant the necessary operating licences to potential competitors of the long- established dockers companies. As this situation was contrary to its policy of competition in ports, the Commission decided that action was necessary. The port of Genoa was selected in view of its importance to the Union as a whole and its position as the leading Italian port. On 21 June, the Commission warned the Italian Government to issue an operating licence within ten days to the firm that had been unlawfully denied that right by the local port authority. On 11 July the Italian authorities informed the Commission that the licence had been issued within the period stipulated. The licencie opened up the port operations sector in the Port of Genoa to other service providers. The measure will benefit port users, a number of local enterprises, chiefly small and medium-sized firms, and generally increase the dynamism of the port with regard to international competition. 124. The Commission is also pursuing its different infringement proceedings instituted against Italy concerning aspects of port work which continue to pose problems with regard to Community law. F - Other state monopolies of a commercial character 125. The adjustment of national monopolies of a commercial character in the new Member States was the subject of extensive discussions between the Commission and the governments concerned. The aim was to adjust the laws governing the monopolies to Community legislation and to Article 37 of the Treaty in particular. 1. Swedish and Finnish alcohol monopolies 126. The adjustment of the alcohol monopolies in Sweden and Finland was discussed by the Commission and the two new Member States with a view to adjusting the monopolies to Community law. In the light of these objectives, the two Member States agreed to abolish the exclusive rights to import, export, produce and sell wholesale, including wholesale sales to cafés and restaurants. The Commission was able to ensure that these exclusive rights, which should already have been abolished when the EEA Agreement entered into force, were finally abolished by the new laws on alcohol adopted by Sweden and Finland at Judgment of 10 December 1991, in Case C-179/90 Porto di Genova v. Siderurgicn [1991] ECR 1-5889. Gabrielli, 45 the end of 1995. 76 The Commission considers that the exclusive rights to retail alcohol may, without prejudice to future developments in the caselaw of the Court of Justice, be justified under existing Community legislation, in particular in view of legitimate national concerns about alcoholism, provided that there is no discrimination between national products and products imported from other Member States. To ensure that retail monopolies conformed to these requirements, the Commission considered it necessary to be closely involved in detailed and regular monitoring of their operation. 2. Austrian alcohol monopoly 127. Austria holds a national monopoly of a commercial character in pure alcohol and certain alcoholic beverages which involves exclusive import and wholesale rights but which, unlike the exclusive retailing rights, are considered to be clearly incompatible with Article 37 of the EC Treaty, without any of the above-mentioned requirements being applicable. The exclusive rights should therefore have been abolished by 1 January 1995. As this had not been carried out, the Commission was compelled to initiate the infringement procedure provided for in Article 169 of the EC Treaty against Austria. 3. Austrian salt monopoly 128. With regard to the national monopoly of a commercial character in the salt. sector, Austria, following action taken by the Commission, finally agreed to abolish the exclusive rights to import and sell products from other Member States wholesale; the rights should have been abolished by the start of 1995. 77 4. Austrian manufactured tobacco monopoly 129. The Austrian monopoly of manufactured tobacco, characterized by exclusive import and marketing rights, is subject to the requirements of Article 71(1) to (3) of the Act of Accession of Austria. 78 Under that Article, Austria is required gradually to adjust its monopoly of manufactured tobacco by the progressive opening, as from the date of accession, of quotas for the import of products from Member States so that, by 31 December 1997 at the latest, no discrimination regarding the conditions under which goods are procured and marketed exists between nationals of Member States. Compliance with this obligation entails the abolition of exclusive import rights and exclusive wholesale rights. As regards retail sale of products imported under quotas, distribution of such products to consumers must be carried out in a non-discriminatory manner. Finding that Austria had not taken the necessary measures to comply with these provisions, in particular as regards the opening of quotas as required, the Commission was obliged to initiate the infringement procedure provided for in Article 169 of the EC Treaty. The Commission also checks that the retail sale of products imported under quotas is carried out in a non-discriminatory manner. Thus, for instance, the Commission must ascertain that licensing and distribution Regarding Sweden, see the Alcohol Act (1994:1738) promulgated 16. 12. 1994 and entered into force 1. 1. 1995. For Soumi-Finland, see new Alcohol Act (1143/94) adopted on 8. 12. 1994 and entered into force on 1. 1. 1995. Bundesgesetzblatt (Austrian Official Journal) No 518/1995, 4. 8. 1995. OJ C 241, 29. 8. 1994, p. 35. 46 agreements between Austria Tabakwerke and other European operators are not liable to jeopardize the effectiveness of adjusting the Austrian manufactured tobacco monopoly and are compatible with the Treaty competition rules. 47 Ill - Merger control A - Introduction 130. Concentrations falling under the Merger Regulation were even more numerous than in 1994. The Commission received 114 notifications (1994: 100) and took 109 final decisions (1994: 90). Activity in 1995 was over 24% higher than the previous year, which itself had been about 50% higher than in the three years 1991 to 1993. A total of 7 second-phase investigations were begun compared with 6 a year earlier and 2 operations were prohibited compared with 1 in 1994. This year marked the fifth anniversary of the entry into force of the Merger Regulation. 79 In those five years the Commission took 382 final decisions, an average of about one decision every three and a half working days or over 70 decisions per year. The sectoral breakdown of cases indicated a continuing significant number of notifications in telecommunications, financial services, the media and pharmaceuticals. The revised Implementing Regulation80 came into force on 1 March 1995. In addition, four interpretative notices which were published at the end of 1994 were applied for the first time in 1995. 81 They concern the distinction between concentrative and cooperative joint ventures, the notion of a concentration, the notion of undertakings concerned and the calculation of turnover. These changes in the operation of the Merger Regulation were adopted by the Commission as a result of its 1993 review exercise. A new review exercise was launched during the year. The Commission carried out a wide-ranging consultation exercise on the issue of lowering the thresholds contained in the Merger Regulation as well as on other aspects of the Regulation which might need to be revised. Among those consulted were the Member States, other Community institutions, individual businesses, trade associations and legal advisers. A Green Paper on the operation of the Merger Regulation was published early in 199682 with a view to full public consultations on the issues involved. Legislative proposals are likely to be made later in the year. B - In-depth investigations 131. A total of 7 in-depth (phase-two) investigations were completed under the Merger Regulation. As a result, 2 operations were prohibited which were both in the media sector - the Nordic Satellite Distribution (NSD) joint venture in the Nordic area and the RTL/Veronica/Endemol (Holland Media Groep - HMG) transaction in the Netherlands. The remaining 5 operations were all cleared, 2 unconditionally and 3 with conditions which removed the competition problems identified by the Commission during its investigation. 1. Media cases 132. The Commission has received an increasing number of notifications in the media sector which reflect the changing patterns of ownership Council Regulation (EEC) No 4064/89 of 21 December 1989 on the control of concentrations between undertakings (OJ L 395, 30. 12. 1989, p. 1 ). Commission Regulation (EC) No 3384/94 of 21 December 1994 on the notifications,- time limits and hearings provided for in Council Regulation (EEC) No 4064/89 on the control of concentrations between undertakings (OJ L 377, 31. 12. 1994); XXIVth Report on Competition Policy (1994), points 234-235). XXIVth Report on Competition Policy (1994), points 237-260. COM(96)19. 48 and the convergence of previously separate technologies, e. g. telecommunications and media. The majority of these cases have presented no competition problems and have been approved after a first- phase enquiry. The decisions in the NSD and HMG cases indicate the importance which the Commission attaches to cases in this sector. These transactions involved significant horizontal and vertical effects, with new companies being created which would restrict access to TV networks - terrestrial, satellite or cable - in the future. In 1994 the Commission had prohibited the MSG Media Service joint venture, which had been proposed by Bertelsmann, Kirch and Deutsche Telekom with a view to providing services for pay-TV in Germany. In its prohibition of the NSD operation, the Commission invited the parties' to present new proposals which could be considered compatible with the common market. This emphasizes the Commission's willingness to see new companies being set up in this sector, provided that they do not create or strengthen a dominant position. Nordic Satellite Distribution 133. NSD was designed to transmit satellite TV programmes to cable TV operators and households receiving satellite TV via their own dish. However, the Commission concluded that the establishment of NSD in its proposed form would have led to a concentration of the activities of its parents, creating a vertically integrated operation extending from production of TV programmes to retail distribution services for pay-TV channels. NSD's parents are strong media players in the Nordic area. Norsk Telekom A/S is the largest cable operator in Norway, has pay-TV distribution activities in Norway and also controls satellite capacity suitable for Nordic viewers. TeleDanmark A/S (TD) is the dominant cable TV operator in Denmark. In addition, TD, with Kinnevik, controls most of the remaining satellite capacity suitable for Nordic viewers. Kinnevik, a Swedish conglomerate, is the most important provider of Nordic satellite TV programmes and a major pay-TV distributor in the Nordic countries and has an important stake in cable and advertising- financed TV in Sweden. The Commission found that NSD would have resulted in the creation or strengthening of a dominant position on three markets: the provision of satellite TV transponder capacity to the Nordic region (Denmark, Norway, Sweden, and Finland); the Danish market for operation of cable TV networks; the market for distribution of satellite pay-TV and other encrypted TV channels to direct-to-home households. The vertically integrated nature of the operation would have meant that the parties would have been able to foreclose the Nordic satellite TV market to competitors and obtain a "gatekeeper" function for the Nordic market for satellite TV broadcasting. As the affected markets are currently in a transitional phase the Commission acted to ensure that these future markets would not be foreclosed. RTUVeronica/Endemol 134. The Commission began an examination of the case following a request from the Dutch Government under Article 22 of the Merger Regulation. This Article allows a Member State to refer a case to the Commission even if it does not have a Community dimension, provided there is an effect on trade between Member States. Although RTL/Veronica/Endemol 49 the Commission took the view that the relevant geographic market was the Netherlands, it concluded that the concentration affected trade between Member States because it would influence conditions for new entrants on the Dutch TV broadcasting market and would have an impact on the acquisition of foreign-language programmes and because the joint venture itself is based in Luxembourg, where two of its channels are "licensed" by the Grand Duchy of Luxembourg. The examination followed the normal procedure except that the usual suspension provisions did not apply. Therefore, in this case, the parties were able to complete the operation despite the Commission's decision that the joint venture would result in a dominant position for the parties. The case concerned a joint venture, Holland Media Groep (HMG) , between RTL, Veronica and Endemol. RTL transferred its broadcasting activities in the Netherlands to HMG, in particular the two commercial TV channels RTL4 and RTL5. A third commercial channel was introduced through Veronica, which left the public broadcasting system in the Netherlands to participate in the joint venture. The other main parent, Endemol, is the largest independent producer of TV programmes in the Netherlands. Following its investigation, the Commission concluded that the new company would have at least 4 0% of the market for free access TV broadcasting in the Netherlands and over 6 0% of the TV advertising. In addition, Endemol's position as the largest independent TV producer in the Netherlands would be strengthened by its participation in HMG. The Commission adopted a prohibition decision and invited the parties to propose measures to restore effective competition on the Dutch TV advertising and production markets within three months. The Commission's decision has been challenged before the Court of First Instance. 2. Other in-depth investigations 135. The remaining operations in which in depth investigations were opened were all ultimately declared compatible with the common market. a joint venture in the telecommunications equipment Siemens/Italtel, industry in Italy, and Mercedes Benz/Kàssbohrer, the acquisition by Mercedes of one of the other German bus and coach manufacturers, were both cleared unconditionally. In each case, however, the parties made certain statements which were included in the decision concerning their future business conduct. However, these statements were not an integral part of the Commission's competition analysis but were offered by the parties. For example, STET, the parent company of Italtel, undertook not to influence the purchasing policy of Telecom Italia in favour of the joint venture; and Mercedes announced that it would supply engines at competitive prices to third-party manufacturers who lacked their own engine production capability. Siemens and STET, the holding company for 136. In Siemens/Italtel, the Italian telecommunications operators, including Italtel, intended to contribute their respective telecommunications equipment manufacturing subsidiaries to a joint venture. The operation raised both horizontal and vertical issues. Horizontally, the joint venture's highest market share occurred in switching equipment where the parties' combined share was 50-60% of the Italian market, and around 30% of overall EU sales (combined shares in transmission equipment were lower). Vertically, the joint venture would be partially owned by its largest customer. In concluding that the proposed joint venture was compatible with the common market, the Commission took into account : the potential effects of new technologies which are likely to alter 50 the telecommunications markets significantly; the effects of standardization and public procurement directives in opening up national markets; the further liberalization of telecommunications services and, in particular, of telecommunications infrastructure, which will lead to world markets for telecommunications equipment. 13 7. In the Mercedes Benz/Kâssbohrer case, although the bus market throughout Europe would be affected, the Commission considered that the German bus market in particular required in-depth investigation. Three markets were identified with the parties combined share reaching 44% in city buses, 54% in tourist coaches and 74% in intercity buses. With a share of 57% of the entire bus market in Germany, however, the Commission- concluded that there would be adequate constraints on Mercedes' freedom of action on the German market because there were two German competitors, as well as potential entrants from elsewhere in Europe. According to customers these potential entrants could be expected to provide additional leverage to German bus operators. Lastly the Commission found that public procurement directives, which make Community-wide tendering compulsory for the main part of the market for city and intercity buses, were also leading to the development of a wider European market. 138. In the other cases, the Commission's clearance of the respective operations was conditional on undertakings given by the parties in the course of the proceedings. 139. In ABB/Daimler Benz, the Commission considered that the market for local trains had remained national in Germany although, in other Member States, the lack of major national rail transportation industries had already led to wider geographic markets. The proposed operation would have led to the creation of a dominant duopoly in the German market for local trains. The concentration would also have impeded market entry by foreign suppliers by eliminating independent German suppliers of electrical components. No competitive issues were identified in relation to other relevant product markets. In order to alleviate the Commission's concerns, the parties agreed to the sale of Kiepe Elektrik GmbH, a Daimler-Benz subsidiary specializing in electrical supplies for local trains. As a result of this divestiture, a competent producer of electrical components that was independent of the parties would remain on the German market and would be able to supply or cooperate with suppliers of the mechanical components of local trains. Kiepe is an established and successful supplier and played an important role in opening up the German market through its cooperation with the Canadian firm Bombardier. The transaction was the subject of a request for referral by the German authorities under Article 9 of the Merger Regulation. Although the competition problems were concentrated on two product markets in Germany, the proposed operation - which created the largest supplier of railway equipment in the world - had significant effects throughout Europe. The request for referral was thus refused. the acquisition was approved subject to the 140. In Orkla/Volvo, divestiture of Orkla's brewing company Hansa. The parties would otherwise have had a 75% share of the Norwegian beer market and neither the retail nor the hotel and catering industries were considered capable of deploying any countervailing purchasing power. 141. In Crown Cork and Seal/Carnaud following a detailed second-phase analysis of both the horizontal and vertical issues raised, the Commission determined that the only market in which the proposed concentration threatened to create a dominant position was the MetalBox, 51 market for tinplate aerosol cans. In the European Economic Area (EEA), both parties produce and sell tinplate aerosol cans and food cans, as well as certain closures for beverage cans and bottles, including beverage can ends, metal crowns, and plastic and aluminium caps. Consequently, the Commission concluded that Crown's commitment to divest a specified group of tinplate aerosol can operations would be sufficient to overcome its competition concerns. The parties agreed to divest substantial manufacturing activities for tinplate aerosol cans in five different Member States; these activities accounted for almost 22% of the EEA tinplate aerosol can market. Without the divestiture, the combined European market shares of the two parties would have been more than 6 0%, with the next largest competitor having a 15%-20% market share and with the major share of the excess capacity in this market being held by the parties. C - Other major cases and Upjohn/Pharmacia. 142. A number of major operations were cleared without in-depth investigations within one month of their notification. They included several in the pharmaceutical sector, among which were Glaxo/Wellcome, Behringwerke/Armour Hoechst/Marion Merrell Dow, Rhone Pharmaceutical, In order to remove any Poulenc Rohrer/Fisons possible doubts as to compatibility, Glaxo agreed to grant to a third party an exclusive licence for one of the anti-migraine compounds currently under development by either Glaxo or Wellcome. It appears that recent mergers in the pharmaceutical industry are intended to increase the range of products offered by companies, thereby making them more competitive as suppliers to the wholesalers, hospitals and pharmacy chains. As a result, the operations to date have been largely complementary in nature and have not in general led to any competition problems. 143. In Swissair/Sabena, the Commission secured remedies for resolving the competition problems raised by the operation which consisted of Swissair acquiring a 49. 5% stake in Sabena. The transaction would have led to a monopoly in air transport between Switzerland and Belgium. Moreover, Swissair was a participant in the European Quality Alliance with SAS and Austrian Airlines, while SAS had proposed a cooperation agreement with Lufthansa. The operation, taken together with these arrangements, would have enabled the participating airlines to create an extensive route network carrying about 3 5% of passenger traffic within Europe, twice as much as the next largest carrier. In order to clear the operation, the Commission secured undertakings from the two airlines and from the Belgian and Swiss Governments that they would make available the necessary traffic rights and airport slots to enable competitors to operate flights between Belgium and Switzerland. Swissair and Sabena were also required to provide competitors with interlining arrangements and with the opportunity to participate in frequent flyer programmes. Lastly, Swissair was required to sever its previous links with SAS through the European Quality Alliance. This transaction was notified twice, on the second occasion following modifications to the operation. At that time, it was fully evaluated (including consultations with the Member States) without it being necessary to initiate a second-phase procedure. 144. The Commission approved an operation by which the Finnish companies Repola entered into a full merger. Repola and Kymmene are large international companies active in the fields of printing paper and packaging materials. The operation involved, among other products, the markets for newsprint, magazine paper and paper sacks. and Kymmene Corporation Corporation As regards paper sacks, the Commission's investigation led to the 52 conclusion that there is a separate Finnish market for this product and that the concentration would lead to the creation of a dominant position on that market. The new company would be virtually the sole supplier of paper sacks to Finnish customers. The parties have given commitments involving the divestiture of some of their paper sack capacity on the Finnish market. The markets for newsprint and magazine paper are at least Western European in scope and Repola/Kymmene, like all the other major European paper producers, transport and market their products in almost all Member States. As a result of the operation, the new company will be the major European player in newsprint and magazine paper. However, the combined market shares will not exceed some 20% in either of the two product markets; what is more, several competitors have strong market positions. Along with five other Finnish paper producers, Repola is a member of Finnpap Marketing Association, a joint sales organization which markets the paper products of the members on a worldwide basis. Kymmene has its own sales network and is not a member of Finnpap. The parties have undertaken not to sell paper products through the Finnpap joint sales agency. D - Legitimate interests of Member States des Water by Lyonnaise 145. On 6 March the United Kingdom authorities made, in the context of the proposed acquisition of Northumbrian Eaux, the first application under Article 21(3) of the Merger Regulation for the recognition of a legitimate interest. The application concerned legislation which regulates the water supply industry in the United Kingdom. This legislation has specific merger provisions which are designed to enable the regulatory system to achieve its objective of safeguarding the provision of a vital service and protecting the consumer. Accordingly, whenever a merger takes place or is expected to take place, the case is referred to the Monopolies and Mergers Commission (MMC) for it to decide whether it would be expected to operate against the public interest. The criteria for the public interest test for water industry mergers include the number of independently controlled water companies among which the water regulator could make comparisons for the purpose of calculating the price regulatory formula. The United Kingdom's application covered these provisions as the reference to the MMC is automatic and not discretionary. The Commission, in acknowledging the United Kingdom's legitimate interest, set specific limits to the MMC investigations in these circumstances. Its decision of 29 March 1995 acknowledged that the MMC could assess potential mergers on the basis of the public interest test but that the public interest in those cases was limited to those issues which were directly related to the operation of the water regulatory legislation. The United Kingdom authorities were required to inform the Commission of any measure taken under the decision so that the Commission could check that the measure was appropriate. Soon after the Commission's decision, the United Kingdom authorities referred the proposed takeover bid to the MMC. Following the MMC report, which found the merger to be against the public interest unless substantial price reductions for consumers were achieved, OFWAT consulted Lyonnaise and Northumbrian and proposed a measure which included a price reduction formula with which Lyonnaise subsequently formally agreed. As required by the decision, the Commission was informed of the proposed measure by the United Kingdom government and had no observations to make on it. 53 E - Mergers in the coal and steel industries 146. During the year the Commission took seven decisions on concentrations under Article 66 of the ECSC Treaty. Three of these cases involved the sale to the private sector of steel companies that had previously been State-owned : the acquisition by the RIVA group of Ilva's flat products operation; a joint venture between Usinor and Hoogovens to take over the Portuguese flat products company Sacilor SN-Planos; and another joint venture between RIVA and FREIRE involving the takeover of SN-Longos. F - Perrier 147. On 27 April the Court of First Instance (CFI) ruled on two cases, one brought by the employees of Perrier and the other by the employees of Vittel and Pierval against the Commission's decision of 22 July 1992 in the case Nestlé/Perrier. The Commission had approved the concentration with conditions and obligations. The principal points of the judgments were as follows: while recognizing that the Merger Regulation is concerned primarily with questions of competition, the CFI concluded that this does not preclude the Commission from taking into account the social effects of a concentration if these affect the level or conditions of employment at the level of the European Community or a substantial part of it; the fact that a third party has not directly intervened in the course of the administrative procedure does not in all cases exclude that third party from being entitled to challenge the decision; the representatives of the workers of a company are not, in principle, directly concerned by a merger procedure and so are not entitled to request the annulment of a decision, except to protect their procedural rights; third parties do not have the right to be treated in the same way as the parties to the concentration in the administrative procedure. 54 G - Statistical overview Graph 1 : Number of final decisions adopted each year since 1990 Final decisions taken under the Merger Control Regulation 120 100 1990 1991 1992 1993 1994 1995 Graph 2 : Breakdown for 1995 by type of operation Type of concentration (total 1990-95) Others Agreed bid 7% Joint venture / control 49% Acquisition of majority 39% 55 Graph 3 : Country of origin of the enterprises involved in the operations in 1995 49 Breakdown of enterprises by country of origin (for 1995; in cases where a final decision was taken) 56 IV - State aid A - General policy 148. In July, the Commission published its Fourth survey on state aid in the Community83 covering 1991 and 1992. The survey is an essential quantitative instrument in defining aid policy. The trend recorded in the period 1981-1990 showing a slow but steady fall in total aid has continued, despite the high costs of German unification, recession and stronger international competition. However, total aid granted remains high, with an average of ECU 94 billion a year for the Community as a whole, or 1. 9% of its GDP and ECU 704 per person employed. In November, the Industry Council met and approved the Commission's analysis indicating that, whilst taking account of other Community objectives, it was necessary to continue to reduce aid levels by strengthening control mechanisms and improving their transparency. 149. The obligation to notify aid imposed by the Treaty is central to aid transparency. In a communication adopted in May, the Commission stated that it intended to use all the powers it had under the Treaty to compel Member States to comply with that obligation. By publishing a communication on cooperation between the Commission and national courts, it demonstrated its will to assist national courts in their role of protecting the rights of firms affected by illegal aid that has been granted to competitors. 150. The publication of guidelines and communications defining the criteria applied by the Commission in assessing the compatibility of state aid with the common market is another important feature of the Commission's policy of transparency and simplification. All instruments in force at 31 December 1994, including the manual of procedures and a list of Court of Justice judgments, have been collected in a single volume entitled "Competition law in the European Communities. Volume II: Rules applicable to state aid". However, as the rules have accumulated over the years, it would be desirable to consolidate certain instruments and revise others. Those on regional aid are therefore being consolidated, and the Commission has adopted a new framework on research and development aid, which was discussed at a multilateral meeting between the Commission and Member States' experts in April. At that meeting, there was also a discussion on the criteria for distinguishing between state aid and the "general" measures not covered by Article 92(1), and the problems of aid granted in connection with the sale of publicly-owned land and in the form of loan guarantees. A detailed questionnaire on state guarantees was sent to all Member States. 151. Two other multilateral meetings were held in 1995. In July Member States' experts reviewed the de minimis rule and the Guidelines on State aid for small and medium-sized enterprises, as well as draft guidelines on state aid to the arts and cultural activities, especially the audiovisual sector. In December, they examined the future control of aid to the synthetic fibres industry and a first draft for a horizontal framework on regional aid for major investment plans and the problems of defining and collecting the reference and discount rates that are crucial to calculating aid. 152. Over the year the Commission took a record number of state aid decisions, partly because of the accession of three new Member States. Much of the aid examined was intended to offset the social consequences Fourth Commission Survey on state aid in the European Union in the manufacturing. and certain other sectors, COM(95)365 final. 57 The Commission is also of restructuring in certain sectors. endeavouring to increase control of aid in sectors that have traditionally been protected from international competition and less obvious forms of aid that have often escaped checks in the past. Because firms are increasingly sensitive to aid granted to their competitors and are better informed about the opportunities for fair competition afforded them by the Community competition rules has resulted in their submitting more and more complaints to the Commission and more appeals to the Court of First Instance against Commission decisions to approve aid to their competitors. N ew measures to enforce compliance with the notification requirement 153. The Commission continued its efforts to enforce compliance with the requirement that Member States notify all plans to grant state aid. Experience has shown that this obligation, provided for in Article 93(3), must, if it is to be effective, be accompanied by a package of incentives or, if necessary, penalties. 1. Recovery of illegal aid 154. Again the Commission emphasised the importance it attaches to the system of prior control of aid plans and the concrete expression of the system, i. e. the rule that prior notification must be given. Thus, in May, it adopted a communication84 that details the principles it intends to apply in ensuring compliance with its policy on the recovery of aid granted in breach of that obligation. The communication forms part of a wider movement aimed firstly at ensuring that Member States comply more strictly with Article 93 (3) of the EC Treaty and, secondly, at encouraging economic operators to be more vigilant about the lawfulness of the aid granted to them. The Commission had already tackled the matter before when it sought the recovery of incompatible and unlawful aid,85 a position upheld and indeed strengthened by the Court of Justice. 86 More recently, the Court of First Instance again upheld Commission policy in this area. In its judgment of 13 September in joined cases T-244/93 and T-486/93, Textilwerke Commission's decision to make its authorization of a new aid package subject to a suspension of the payment of that aid, until a prior aid to the same company which had been declared incompatible had been recovered, because it was clear from the Commission's decision that the cumulation of the incompatible aid and the new aid package would render the totality of the aid incompatible. the CFI upheld the Commission, Deggendorf GmbH v. However, in terms of its effectiveness, such temporary suspension was of limited usefulness inasmuch as it would not have any immediate effect on the part (or all) of the aid already paid. These means were therefore not sufficient to tackle and settle the problem of potential distortion of competition, the effects of which could continue until the final Commission decision. Even if they repay the aid eventually, firms benefitting from illegal aid nevertheless continue to have an edge over their competitors, either in financial terms or by having a longer period of solvency in the case of firms in crisis. This is the problem the Commission communication seeks to tackle. It stipulates that, in certain cases, the Commission reserves the right, OJ C 156, 27. 6. 1995, p. 5. Commission Communication on aids granted illegally (OJ C 318, 24. 11. 1983). Judgment of 21 March 1990, in Case C 142/87 Royaume de Belgique v Commission [1990] ECR 1-959. Judgment of 14 February 1990, in Case C 301/87 République Commission [1990] ECR 1-307. (Boussac). 58 (Tubemeuse) française v after having given the Member State concerned notice to submit its views and to consider rescue aid instead, to require the Member State by means of a temporary order to recover all or part of the aid granted in breach of the Treaty. Recovery must comply with the provisions of domestic law and interest must be charged from the time the aid was paid. Another new point is that interest is calculated not on the basis of the legal rate but according to the commercial rate, i. e. the reference rate used by the Commission in connection with regional aid. 87 If a Member State failed to comply with such an order, the Commission might apply to the Court of Justice for interim measures by a procedure similar to that provided for in the second subparagraph of Article 93(2) of the EC Treaty. 2. Cooperation between the Commission and national courts 155. In October, with the same aim of increasing observance of legality in the Community, the Commission adopted a notice on cooperation between national courts and the Commission in the state aid field. 88 It is not binding or limiting but seeks to give fresh impetus to relations between the Community executive and national courts and to draw courts' attention to the important role that they can play in the prompt safeguarding of the rights of third parties and securing compliance by Member States with certain procedural obligations. The notice thus clearly forms part of the general trend described in the preceding point. The notice points out that, while the Commission is the Community body responsible for implementing and developing competition policy in the Community's public interest, national courts do no more than preserve, until the final decision of the Commission, the rights of individuals faced with a possible breach by State authorities of the prohibition laid down by the last sentence of Article 93(3) of the EC Treaty. 89 To that end, national courts are invited to use all appropriate devices and remedies and apply all relevant provisions of national law and, in particular, to grant interim relief, by ordering the freezing or returning of monies illegally paid, or awarding damages to parties whose interests are harmed. In order to attain these objectives more efficiently, the Commission intends to assist national courts by instituting closer cooperation, notably by: pursuing and improving its policy of transparency by publishing information on state aid; supplying information of a procedural nature on pending cases; supplying factual, statistical and analytical information. B - Concept of aid 156. Interpreting the concept of aid as set out in the Treaties is often the most difficult part of the Commission's assessment of aid measures. The criteria for determining the presence of aid in measures taken by the Member States with regard to their enterprises are of particular importance not only to the administrative authorities of the Member States responsible for notifying them but also to the national 87 See Commission Communication to the Member States, letter SG(95)D/1971 of 22. 2. 1995. The Court of First Instance very recently confirmed that the Commission could seek the payment of interest on sums recovered: Judgment of 8 June 1995, in Case T 459/93 Siemens [1995]ECR 1 1 - 1 6 7 5. SA, OJ C 3 1 2, 2 3. 1 1. 1 9 9 5, p. 8. 88 89 Judgment of 21 November 1991, Case C 354/90 Fédération produits Etat alimentaires et Syndicat national des négociants et transformateurs français, [1991] ECR 1-5527, paragraph 14. nationale du commerce extérieur de saumon des contre 59 courts which may have to determine whether a contested measure should have been notified. Several Commission decisions taken in 1995 help to define the concept of aid provided for in the competition rules. 157. (a) For Article 92(1) to apply, the measure must have provided a firm with an economic advantage which it would not have received in the normal course of business. The Commission considers that this condition would be met if a company were to acquire publicly owned land or publicly owned industrial site at a price lower than the market price. It therefore decided to initiate the Article 93(2) procedure in respect of the acquisition by the company Siemens Nixdorf AG/Mainz of a publicly owned site at a price estimated to be between DM 5. 5 million and DM 21. 5 million lower than the market price. The same reasoning would apply if the State were to acquire land from a company at a price higher than the market price. As the Commission had doubts whether the price for the land sold by the Spanish steel company Tubacex to the public authorities corresponded to the market value, it decided to initiate the Article 93(2) procedure. 158. Public financing of costs inherent in the preparation of a building/industrial site and in providing connections to various (public) utility services does not fall under Article 92(1) if the company pays for the use of the infrastructure through direct or indirect charges. Since preparation of the site in Villey, Meurthe-et- Moselle, for setting-up a new production plant by the paper company Kimberly-Clark benefited this company alone, in particular because it is the owner and sole user of the installations put in place, the partial public financing provided constituted an aid to that company. In this context, the Commission also took into consideration that a private market investor would not have carried out this preparation since the selling price for the site did not even cover partial financing of it. 159. Public funds provided to a (public) undertaking on terms more favourable than those on which a private investor operating under normal market conditions would provide them to a private firm in a comparable financial and competitive position constitute state aid. In cases where the State's acquisition of a holding in a company may be combined with other types of public intervention which need to be notified to the Commission pursuant to Article 93(3), there is a presumption that state aid may be involved. In accordance with its Communication on the application of Article 92 and 93 of the EC Treaty to public authorities' holdings,90 the Commission asked the Spanish Government to inform it in advance of any acquisition made by the Institute the Development Andalusia. for of GmbH and Lech-Stahlwerke Because the intended capital injection by the Land of Bavaria to cover the accumulated losses of the steel undertakings Neue Maxhutte GmbH would coincide with the sale Stahlwerke of its shares in these companies, thereby removing any prospect of profitability from the provision of these funds even in the long term, the Commission decided that these capital injections constituted state aid. For similar reasons, it decided that the capital injections made by the Italian State through its industrial holding company ENI into the fertilizer company Enichem Agricultura S. p. A. in the period 1991-94 constituted state aid, as the capital injections were made before a restructuring plan had been set up solely to prevent the company from going bankrupt and thus without any prospect of a reasonable return. Moreover, the Commission considered that, under the circumstances, the period during which the company had suffered heavy losses, i. e. five years, was too long to have been acceptable to a private market 90 See Commission Communication of 1983, Bulletin EC 9-1984, points 3. 4 and 4. 4 60 investor who would have liquidated or thoroughly restructured the company much earlier. The capital injections to be made in the context of a restructuring plan set up at a later stage therefore also constituted state aid and the Commission considered the positive results expected from implementation of the plan to be too low compared with the total injection of new capital. However, if a capital injection by the State into a company is accompagnied by an injection of capital by a private investor on equal terms and if the private investor's holding in the company has real economic significance, the Commission considers that no aid is involved in the public intervention. It therefore decided that the capital injection and loans provided by the authorities of Wallonia (Belgium) to the textile company EM-Filature were based on normal commercial considerations and did not constitute state aid since this intervention went hand-in-hand with an injection of capital by private shareholders making them majority shareholders in the company and since private shareholders offered loans on similar terms. For similar reasons, the Commission considered that the injection of capital by the Portuguese in connection with a State into the ship repair company Lisnave restructuring of the company did not involve state aid under Article 92(1). 160. (b) Under Article 92(1) aid must be granted to certain undertakings (or the production of certain goods) to constitute state aid. General measures of economic, tax or social policy do not fall within Article 92 (1) and competitive advantages for firms in one Member State arising from differences in such general policy measures must be addressed, if necessary, under the appropriate procedure laid down in Articles 101 and 102. Therefore, Article 92(1) does not apply to general measures applicable to all undertakings in a Member State and satisfying objective and non discriminatory requirements. In the light of these considerations, the Commission considered that aid granted by the German Government to employees of the firm Maschinenfabrik Sangerhausen GmbH to cover social security obligations in connection with the liquidation of the firm did not constitute state aid, since the aid is automatically available to any firm in liquidation in Germany. Similarly, it took the view that the suspension of debt repayments in favour of the Spanish steel company Tubacex did not, in itself, constitute state aid, but a general measure taken within the framework of Spanish insolvency legislation generally applicable to all companies. However, it also follows from the above criteria that, if the effect of the objective requirements under a scheme open to all firms is that only certain undertakings may benefit from the measure, the Commission considers state aid to be involved. If a measure is applicable to all undertakings but confers discretionary power on the authorities administering the measure, state aid may also be involved. Therefore, the Commission considered that a Finnish employment aid scheme available to all firms in every sector of the industry and every region of the country nevertheless involved state aid since the labour market authorities had discretion as to the level of aid and the length of the subsidized period for each unemployed person taken on by a firm. 161. (c) The financial benefit to certain undertakings must be granted by a Member State or through state resources in order to constitute state aid under Article 92(1) , which applies to aid granted by any central, regional or local authority and any public or private 61 body established or appointed by the State to administer the aid. 91 Even if an aid is not granted through a body established or appointed by the State, state aid may be involved if the financial contribution to the recipient firm(s') is made by the State. 162. (d) The aid must be capable of affecting trade perceptibly between Member States. The Commission considered this condition to be met in respect of aid to the German company Leuna-Werke GmbH even though the company does not export goods to other Member States, since the aid may enable it to increase its production for the domestic market and thus reduce the potential market there for goods imported from other Member States. C - Assessment of compatibility of aid with the common market 1. Sectoral aid 1. 1. Sectors subject to specific rules 1. 1. 1. Aid to Shipbuilding 163. On 21 December the Council adopted Regulation (CE) No 3094/9592 implementing an OECD agreement with respect to normal competitive conditions in commercial shipbuilding and shiprepair, including the elimination of production subsidies. The new regulation will apply as from the entry into force of the OECD agreement. This was scheduled for 1 January 1996 but, although the European Union ratified the agreement in December, entry into force was unfortunately delayed because of delays in ratification by other parties to the agreement. The Council therefore decided that the rules of the Seventh Directive on aid to shipbuilding93 should continue to apply ad interim but not beyond 1 October 1996. If the OECD agreement has still not entered into force by 1 June 1996, the Commission will put forward appropriate proposals to the Council so that it can decide future policy before 1 October 1996. Against this background, the Commission decided to maintain from 1 January 19 96 the common production aid ceiling at 9% for large vessels and 4. 5% for vessels costing less than ECU 10 million and for conversions. 1. 1. 2 Steel 164. During 1995 the Commission continued to be vigilant in applying the steel aid code. 94 This strict enforcement of the aid rules resulted in a number of negative decisions being taken, including ordering of the recovery of aid illegally granted. In November and December respectively the Council gave its unanimous assent to special derogations • under Article 95 ECSC relating to production and closure aid for iron-ore mining in Austria and the privatization of the public steel company in Ireland. Close monitoring of six previous Article 95 ECSC cases (Ilva in Italy, CSI and Sidenor in Spain, EKO Stahl and SEW FreitaT in Germany, and Siderurgia Nacional in Portugal) was maintained with half-yearly reports being submitted to the Council. Judgment of the Court of Justice in Case 78/76 Steinike und Forstwirtschaft [1977] ECR 575. und Weinlig v Bundesamt fur Ernâhrung OJ L 332, 30. 12. 1995. Council Directive 90/684/EEC, as last amended by Directive 94/73/EC. Commission Decision 3855/91/ECSC. : 62 In March the Commission proposed that the provisions of the steel aid code relating to aid for environmental protection should be brought into line with the revised Community guidelines on state aid for environmental protection under the EC Treaty to ensure that the steel industry enjoyed equal treatment with other industrial sectors. The Council's assent is still awaited. 1. 1. 3 Coal 165. Decision No 3632/93/ECSC95 of 28 December 1993 establishes the Community rules for state aid to the coal industry covering the period from 1994 until 2002. On 4 April the Commission authorized96 financial assistance totalling ECU 3 3 84. 2 million that had been planned by Germany for 1995 in the form of compensation to the electricity generators under the Third Law on electricity produced from Community coal, aid for maintaining the underground workforce in mines ( "Bergmannspramie"), and aid to cover the exceptional costs of a number of coal undertakings resulting from inherited liabilities. On 19 July the Commission delivered a positive opinion on a restructuring plan submitted by the French authorities and authorized aid97 totalling ECU 912. 8 million to cover operating losses for 1994, aid to cover inherited liabilities resulting from the modernization, rationalization and restructuring of the coal industry, and aid for research and development. On the same occasion, the Commission approved additional German aid totalling ECU 196. 9 million for the supply of coking coal and coke for the Community steel industry. 98 On 26 July the Commission authorized99 France to grant aid totalling ECU 668. 1 million to cover operating losses for 1995, aid to cover inherited liabilities resulting from the modernization, rationalization and restructuring of the coal industry, and aid for research and development. The Commission authorization for the United Kingdom to grant aid totalling ECU 2 594. 4 million for inherited liabilities in 1995 was contained in the Commission Decision of 3 November 1994. 10° Notifications of aid for 1995 have been received from the Portuguese and Spanish authorities,, and an additional notification has been received from the German authorities. These are all being examined by the Commission departments to determine their compatibility or otherwise with Decision 3632/93/ECSC. 1. 1. 4. Motor vehicle industry 166. By its judgment of 29 June 1995,101 the Court of Justice ruled in respect of the last Commission's decision extending the EC framework on state aid to the motor vehicle industry for an unlimited period that it had ceased to apply on 1 January 1995. To avoid any legal vacuum that the judgment might create, the Commission had to take extraordinary action and, on 5 July decided to extend the framework OJ L 329, 30. 12. 1993, p. 12. Decision 95/464/ECSC (OJ I, 267, 9. 11. 1995. p. 42). Decision 95/465/ECSC (OJ L 267, 9. 11. 1995, p. 46). Decision 95/499/ECSC (OJ L 287, 30. 11. 1995, p. 53), Decision 95/519/ECSC (OJ L 299, 12. 12. 1995, p. 18), Decision 95/995/ECSC (OJ L 379, 31. 12. 1995, p. 6 ). Case C-135/93 Spain v Commission [1995] ECR 1-1651, 63 retroactively from 1 January 1995 and, at the same time, proposing to the Member States that the framework be reintroduced for a two-year period starting no later than 1 January 1996. Subsequently, the Spanish Government appealed to the Court against the Commission's decision to extend the framework retroactively and, unlike all other Member States, also refused to accept the proposal to reintroduce it for a two-year period. Following the refusal, the Commission was obliged to initiate the Article 93 (2) procedure in order to examine the compatibility of all aid schemes which might benefit the motor vehicle industries in Spain. On 20 December it adopted a final decision compelling Spain to comply - in the same way as the other Member States - with the requirements of the newly reintroduced framework. On the basis of its decision of 5 July, the Commission continued to apply the framework during 1995. It received 9 notifications on the basis of approved schemes and 2 notifications on the basis of ad hoc schemes. It adopted a decision approving notified aid in 6 cases. It also took an interim decision enjoining the German Government to provide within a fixed deadline all the information necessary to allow an assessment of aid to the new projects of VW Sachsen, which were not covered by a previous 1994 decision. 102 167. In assessing individual awards based on regional aid schemes (e. g. FORD Genk), the Commission continued to apply its criterion whereby regional aid in this sector should be in proportion to the actual regional handicaps arising for an investor. However, it should be noted that, on average, it has allowed higher aid intensities for motor vehicle manufacturers carrying out investment projects in the least-developed regions of the EU. 168. As regards rescue and restructuring aid, the Commission adopted final decisions on the cases concerning DAF Belgium, DAF Netherlands and SEAT-Volkswagen. These decisions implied, pursuant to the existing regulations, a recovery of part of the aid in the case of bankrupt DAF and a significant reduction of production capacity in the case of SEAT. Furthermore, the Commission decided to initiate proceedings under Article 93 (2) against aid granted by the Spanish authorities to Santana Motor S. A. 169. In assessing aid for research and development the Commission, while recognizing the potential beneficial effects of R&D activity on economic development, takes into consideration the risk of distortions of competition and ensures that such aid is granted only to projects that are genuinely innovative at a European level. It also verifies that the maximum intensities laid down in the Community framework on aid for R&D are adhered to. As these conditions were fulfilled in the Opel Austria and Ford Valencia cases, the Commission approved the aid proposed for these projects. 170. Both cases also involved aid for investment projects to reduce environmental pollution. In line with the motor vehicle framework and the guidelines on state aid for environmental protection, such aid can be approved only if it is to cover extra investment costs necessary to reduce or eliminate pollution or to adapt production methods in order to protect the environment and only if the limits of aid intensity specified, i. e. 15% for projects complying with new standards and 30% for projects significantly exceeding standards or for voluntary measures, are not exceeded. In both the Opel Austria •and the Ford Valencia cases, as well as in the Ford Genk case mentioned earlier, 102 XXIVth Competition Report, point 367 and Annex II. E. , point 2. 6. 64 these conditions were fulfilled with the result that the Commission approved the proposed aid. 171. In several past cases, the Commission has required the national authorities to monitor the realization of eligible investment and asked the Member States to send annual reports on the investments carried out and the aid payments made. Practice has shown the importance of such a follow-up procedure, bearing in mind that the execution of large multi annual investment projects leads to many changes which might require modification of the aid payments. In the course of 1995 this ex post control was exercised in the Ford/VW Se tubal and Fiat Mezzogiorno cases as well as in the Chrysler and SNF cases in Austria, where the European Union had reached agreement on aid reductions with the Austrian authorities. In its NedCar decision, the Commission required the Dutch authorities to notify the rules on the allocation of costs between the old and new models, so that it could ensure that no aid was granted to Volvo and Mitsubishi on the basis of inadequate rules. 103 The analysis of the cost allocation rules for 1994 and 1995 showed that they did not contain elements of state aid. Finally, in the case of restructuring aid for Rover, which dates from a period prior to the establishment of the framework, and in the case of regional aid for Opel Eisenach the ex post monitoring was terminated after all the conditions of the decisions had been fulfilled. 1. 1. 5. Synthetic fibres industry 172. Since 1977 aid to this industry has been subject to supplementary control through the code on aid to the synthetic fibres industry. In April the Commission asked an independent consultant to assess the code's effects and, if supplementary control were still considered necessary, advise what form it should take. The consultant reported in October and the Commission will decide what action to take early in 1996. Also in April the Commission extended the period of validity of the current code104 for a further nine months to 31 March 1996105. 1. 1. 6. Transport 173. The year has seen a substantial increase in the number of aid cases in the transport sector (from 29 to 52). At the same time, cases have become increasingly complex and the scope for enforcement of Articles 92 and 93 has expanded. As the liberalization of transport markets progresses, commercial pressure increases on operators across the board. The forthcoming completion of civil aviation liberalization will include cabotage rights for European carriers from March 1997. The recently approved Directives on infrastructure charges and track access in the railway sector follow on from Directive 91/440, which is also being extended to intra-state lines in the shipping industry. These are but a few examples of the progress being made towards a single market for transport services. 174. As commercial operations move into new areas, control of financial support from the state must be stepped up to preserve a level playing-field for all enterprises, both public and private. In transport cases, no advantage that reduces the costs normally included in the cost structure of an undertaking and stems from a State measure should be authorized unless it responds to the need for coordination of transport or represents reimbursement for the discharge of public service obligations. In addition, the development of transport as an 103 XXIVth Competition Report, points 367 and Annex II. E, point 2. 6 104 OJ C 346, 30. 12. 1992. 105 OJ C 142, 8. 6. 1995. 65 economic activity or a concrete project of common European interest might qualify for exemption. 175. In the course of the year the Commission departments were consulted on several cases (Ferrovie dello Stato, fixed Ôresund link) by Member States in order to clarify whether public investment in infrastructure could be considered state aid. Governments have always used financial intervention as an essential tool in their policy of infrastructure development. In principle, as long as access and usage remain public and general, such intervention will not constitute aid within the meaning of Article 92(1) but will be normally regarded as being in the public interest. For there to be a distortion that might qualify as aid, the infrastructure-related advantages, should be conferred selectively, with the aim of helping specific firms: for example, a purpose-built facility for the sole use of one undertaking or discriminatory access restrictions. In economic terms, public authorities normally provide these goods and services because of the inability of the price system to do so effectively. Goods such as infrastructures tend to be indivisible and collectively consumable by all citizens whether they pay for them or not. Such a public good provided by government benefits society in a collective manner and is not conferred upon any specific enterprise or industry (principle of non excludability). Consequently, public support for infrastructure will not normally constitute aid, but rather a general measure derived from the State's sovereignty in respect of economic policy, land planning and development. 176. Various complaints submitted during the year claimed the existence of state support for ports. The question arises whether financial backing for port activities can be examined in the context of Article 92. 177. In relation to civil aviation, the Commission based its decisions concerning state aid on the principles developed in the new guidelines adopted in November 1994. 10G These take account of the increasingly competitive nature of the market for air transport services after the entry into force of the third liberalization package in 1993. In 1994 the Commission authorized the granting of restructuring aid to be paid in instalments in favour of TAP and Air France. In both cases, the Commission's approval was made subject to the correct fulfilment of a list of commitments and restructuring plans. Then in 1995, with the assistance of independent experts, the Commission monitored compliance. In view of the satisfactory fulfilment of both elements by TAP107 and Air France108 no objections were raised to payment of the second tranches of the aid. 178. Also in 1994, the Commission decided that the subscription by the French public. entity CDC-P to bonds issued by Air France constituted illegal aid, incompatible with the common market, and requested its reimbursement. In October 1994, France and Air France challenged the Commission decision before the Court of First Instance. The Commission then decided on 4 April 1995109 to amend its original decision, and to request France to ensure that the aid and interest on arrears are deposited in a blocked bank account until the Court delivers a final ruling. The economic rationale of this mechanism is to deprive Air France of the use of the money corresponding to the aid, pending Court proceedings. 106 XXIVth Report on Competition Policy, point 375. 101 OJ C 154, 21. 6. 1995. 109 OJ C 295, 10. 11. 1995. 109 OJ L 219, 15. 9. 1994. 66 179. On 4 May 1995110, the Commission analysed the financial transactions involved in an agreement between Swissair and Sabena, aimed at the acquisition by the former, of a strategic stake (49. 5%) of Sabena. The operation implied the issue by Sabena of new shares for BEF 9. 5 billion, BEF 6 billion being subscribed by Swissair and the remaining part by Belgium and a group of Belgian investors. The Commission recalled that when the public holding in a company is to be increased, the capital injection will not involve state aid provided that the public investment goes together with the injection of a significant amount of capital by a private shareholder. Swissair's subscription of new shares at the same price and under the same conditions as Belgium and the Belgian investors was accepted as evidence that the operation was a normal financial transaction and not state aid. 180. On 10 May 1995, the European Commission decided not to raise objections to plans by the German government to contribute to pension funds in favour of Lufthansa employees as part of the company's privatisation programme initiated in 1992. The measures were linked to the charges imposed on Lufthansa following its compulsory withdrawal from a supplementary pension fund managed by the public entity VBL to which, as a public company, it had been obliged to belong. The Commission considered that a private investor in the same position as the German State, obliged to relinquish the control of Lufthansa, would have acted in the same way in order to maximise the final value of its stake. 181. On 19 July 1995, the Commission analysed a capital injection of FF 300 million into the company AOM by its parent State owned company Credit Lyonnais. The Commission, having analysed the restructuring plan of the airline, reached the conclusion that AOM was likely to return to profitability in the near future and that the net present value of future cash-flows was higher than that of the investment. The operation was considered to amount to a normal financial transaction and not state aid, since a market economy private investor in the same circumstances would have made the investment in AOM. 182. On 2 9 November 1995, the Commission adopted a final negative decision concerning the exceptional mechanism of depreciation of aircraft registered in Germany and used for international commercial activities. In certain circumstances, the scheme allowed for an exceptional depreciation of up to 30% of the total acquisition cost. The Commission considered that the scheme amounted to an aid and that it could not fall within the second and third paragraph of Article 92. 183. Likewise, the Commission took a number of decisions in cases involving aid to the maritime sector. The Commission's 1989 guidelines on the examination of state aid to Community shipping companies is currently under review in the context of an overall reappraisal of Community maritime transport policy. The results of this exercise will be presented by the Commission in a strategy discussion document on which the European institutions, the Member States and other interested parties will be invited to comment. 184. In particular the Commission decided that an agreement between Spanish regional and local authorities in the Basque Country and "Ferries Golfo de Viscaya", concerning a ferry service between Bilbao and Portsmouth did not contain state aid elements. The final decision, following the opening of the procedure under article 93. 2 of the Treaty, was taken on 6 June 1995. °OJ L 239, 7. 10. 1995 page 19. 67 185. Serious doubts were raised about the compatibility of aid granted to the French State-owned shipping company Compagnie Générale Maritime ('CGM') with the Treaty. The Commission decided on 31 October 1995, and later on 20 December 1995, to initiate and extend respectively, the Article 93. 2 procedure. The aid amounts to approximately ECU 33 0 million. 186. The Commission also examined several cases of state aid in the road transport sector, taking particular account of the gradual liberalization of cabotage since 1 January 1995111 which entails the opening-up of local markets to Community competition. 187. On 18 August the Commission brought an action before the Court of Justice against Italy for not having taken the necessary measures to comply with the Commission Decision of 9 June 1993, which declared a tax credit for professional road hauliers in Italy incompatible with the common market and ordered the Italian authorities to recover the sums paid. In addition, the scheme, which had been deemed to be operating aid and had initially been scheduled for the 1992 tax year, was extended by the Italian authorities to 1993 and 1994, with a budget of ECU 558 million. On 4 October the Commission decided to initiate Article 93(2) proceedings in respect of the extensions and called for the immediate suspension of the aid. 188. In the area of inland waterways, the structural reorganization aimed at reducing existing overcapacity by scrapping vessels that was begun in 1990 on the basis of Council Regulation (EEC) No 1101/89 of 27 April 1989 is still underway. In view of the amount of excess capacity, the Commission presented a proposed amendment of the above- mentioned Regulation to the Council on 23 May, recommending extensive scrapping in the period 1996-98, part-financed by the Community, the Member States concerned and the trade. This action is an important measure the waterway-transport market which was also advocated by the Commission in a proposal of 23 May 1995. liberalization the gradual accompanying of 189. In the course of 1995 some operations undertaken by railway companies were examined by the Commission in the light of Articles 92 and 93. In relation to the UK sale of the railway rolling stock companies (ROSCOs) the Commission decided on November 2 9 that the guarantees provided to the purchasers maximised the sale profit and therefore do not constitute State aid. Similarly, on October 18 1995, the Commission decided that, a state guarantee in favour of Ferrovie dello Stato S. p. A. , issued by the Italian government for a loan of 372 MECU to railway infrastructure investments in the high speed train link Brenner -Verona, did not constitute state aid. 1. 1. 7. Agriculture 190. The accession of three new Member States (Austria, Sweden, Finland) brought about some change in the situation regarding state aid in agriculture. The Act of Accession established a specific procedure for each new Member State for aid existing at the time of accession and for a given transitional period. In accordance with the Act of Accession, the new Member States informed the Commission by 3 0 April of all existing agricultural aid schemes within the meaning of Article 93 (1) of the Treaty. On 13 February the Commission adopted two 111 Council Regulation No 3118/93 (OJ L 279, 12. 11. 1993). 68 decisions approving the Austrian and Finnish programmes for the implementation of Articles 138 to 140 of the Act of Accession, which provide for the granting of transitional, degressive national aid for agricultural products. The decisions were subsequently modified to take account of new factors. 191. Generally speaking, the Commission opposes any state aid relating to support measures that would be liable to upset the Community market machinery and which, as operating aid, would not have any lasting effect on the development of the sector in question. 192. As regards investment aid in the primary production sector and, in particular, pursuant to Article 12(1) of Council Regulation (EEC) No 2328/91 on improving the efficiency of agricultural structures,112 the assessment of Community and state aid should, as far as possible, be carried out in conjunction with a parallel assessment of the cases within the periods stipulated for state aid; this procedure would make it possible to send only one letter to the Member State concerned, under both Articles 92 and 93 of the Treaty and Regulation No 2328/91. 193. As regards aid to investments in improving the processing and marketing of agricultural products, Community policy is laid down by Council Regulation (EEC) No 866/90. 113 This Regulation also authorizes Member States to establish aid measures, under various conditions, in accordance with Articles 92 and 93 of the Treaty. However, this facility is limited by the selection criteria provided for in the Regulation, applied by the Commission by analogy to the assessment of state aid. Until 1994, the selection criteria applicable to such investments, known as "sectoral limits", were specified in Commission Decision 90/342/EEC of 7 June 1990. 114 This was amended by Commission Decision 94/183/EEC of 22 March 1994. 115 In 1994, the Commission informed Member States that it would continue to apply the sectoral state aid limits provided for in point 2 of the Annex to the 1990 Decision. 116 In 1995, the Commission altered its position in order to apply the more favourable limits provided for in the 1994 Decision. 117 Following preparatory work with the Member States, the Commission adopted118 the principle of the application to state aid, from 1 January 1996, of the criteria contained in its Decision of 22 March 1994 and no longer those in its Decision of 7 June 1990. 194. The Commission also adopted the principle of a review of its policy concerning subsidized operating loans in the agricultural sector. 119 1. 1. 8. Fisheries 195. In 1995 the Commission registered 37 new aid schemes and 20 aid schemes that were either not notified or were only notified after their adoption, as well as three new cases of existing aid. It decided not to object to the aid in 22 cases, one of which was started in 1994. OJ L 218, 6. 8. 1991, p. 1. OJ L 91, 26. 4. 1990, p. 1. OJ L 163, 29. 6. 1990, p. 71, OJ L 79, 23. 3. 1994, p. 29. OJ C 189, 12. 7. 1994, p". 5. OJ C 71, 23. 3. 1995, p. 6. OJ C 29, 2. 2. 1996, p. 4. OJ C 44, 16. 2. 1996, p. 2. 69 It also decided to initiate the Article 93(2) procedure in respect of two aid measures, one Italian and the other German. In the same period, the Commission decided to terminate the Article 93 (2) procedure initiated in respect of an aid measure implemented in Italy and notified in 1993. 1. 2. Specific sectors not subject to special rules 196. For some years Europe has been experiencing a major shift towards liberalization, privatization and the adjustment of national monopolies. This trend, together with continued harmonization of rules at Community level, prompted the Commission to study methods of applying state aid rules to certain sectors such as banking or postal services. Although they are in principle subject to the same treatment as any other sector (especially the principle of a "private investor in a market economy"), they are nevertheless sufficiently different to warrant being taken into account by the Commission when assessing state aid. 1. 2. 1. Banking 197. This sector has particular characteristics that are chiefly social and statutory (protection of savers), macroeconomic and financial (necessary stability of the sector, smooth operation of the payments system), political and international (possible repercussions in the form of "panic" in other establishments in the same country or other countries due to the considerable interdependence existing in this sector, especially in the event of a major institution failing). That is why specific authorities are in charge of monitoring the sector in the various Member States. After the Banesto case in 1994, the Credit Lyonnais case is an important example of the way in which state aid rules should be applied with a view to the particular sensitivity of a sector. In terms of the amounts involved, this case is the largest yet dealt with by the Commission: the total volume of aid was FF 45 billion (ECU 7. 5 billion). In addition, at the end of 1993, Crédit Lyonnais was the largest European bank in terms of total balance, thus providing an example of what happens when a major bank fails, with all the downstream consequences for the entire financial and banking system in France and, indeed, Europe. The principle adopted by the Commission, after consulting a high-level group of experts, was to apply to the banking sector substantive and procedural rules on state aid, taking account of the specificities of Compliance with the rules also ensures that credit banking. " establishments enjoying the implicit or explicit support of the state, being either public establishments or too important to be allowed to go bankrupt, do not act in an imprudent manner. Such an attitude would require state assistance and hence lead to distortions of competition Even if state intervention were which could have been avoided. considered necessary to prevent undesirable effects on other financial establishments and markets, the Commission would wish to ensure that the solution chosen would produce the least possible distortion of competition. Lastly, major counter-concessions will have to be offered by a defaulting establishment in order to offset the negative effects of state assistance on other market operators. That is why the Commission eventually decided to approve the aid to Crédit Lyonnais conditional on the sale of a large part of its international network, on a contribution to the costs of the hiving-off mechanism in the form of a better-fortunes clause, on a clear separation between Crédit Lyonnais and the hived-off structures and on the probable privatization of the bank within five years. 70 1. 2. 2. Postal sector 198. The Commission regards this as an essential sector owing to its vital function as a vehicle for the social and economic activities of a country. However, it must also take account of the fact that the Court of Justice specified that the competition rules applied to postal services,120 without prejudice to the principle of Article 90(2) of the EC Treaty. Postal services, especially public or semi-public services or those granted special and exclusive rights, continue to enjoy a special relationship with the state. This is reflected in the benefit of direct financial support (grants) or indirect support (tax relief) usually lacking in transparency. On the one hand, the Commission Directive on the transparency of financial relations between Member States and public undertakings is applicable in this area,121 which entails special accounting and financial obligations. On the other hand, such direct or indirect financial assistance constitutes state aid which the Commission has a duty to monitor, both because of the obligation on Member States to notify aid plans in advance and because of its obligation to keep under constant review all existing systems of aid in order to take account of the progressive development or functioning of the common market. The case "Activités concurrentielles de la Poste française" is doubly interesting in this respect inasmuch as it deals both with the application of the state aid rules (Articles 92 and 93) and with the provisions on enterprises entrusted with the operation of services of general economic interest '(Article 90 (-2)). This case constitutes the first combined application of these two provisions by the Commission. The latter considered that the tax advantages enjoyed by the postal services did not outweigh the extra costs resulting from the constraints imposed on the French post office in carrying out its public service task and did not benefit the competitive aspects of its activities (i. e. the activities not reserved to the post office under French law). The Commission therefore decided that the tax advantages did not constitute aid under Article 92(1) of the EC Treaty. 1. 2. 3 The audiovisual sector The Commission recognizes that the European film and television 199. industry makes an important contribution to the diversified European culture. Thus, the promotion of cultural diversity is accepted by the Commission as a justification for state aid to the film industry and the production of television programmes. However, in its assessment of state aid to the audiovisual sector, the Commission will ensure that the aid does not cause any undue distortions of competition and that there is no discrimination on grounds of nationality or any other impediment to the free flow of goods, services, people and ideas across the European Union. The Commission aims to strike a balance between the requirements of cultural and heritage promotion and the openness of trade and competition in the single market. To clarify state aid policy in this field, the Commission is currently preparing guidelines on state aid for culture, the arts and the audiovisual sector. The guidelines were discussed with Member States at a multilateral meeting in June and met with general support. Judgment of 12 February 1992, Joined Cases C-48 and C-66/9Ô Nederland PTT Post ECR 1-2563. [ 1992] ECR 1-565; Judgment in Case C-320 Paul Corbeau v Commission en PTT Nederland and [ 1993] Commission Directive 80/723/EEC of 25 June' 1980, as amended by Directive. 84/413/EEC (OJ L 229, 28. 8. 1985, p. 20). 71 200. In light of complaints from private TV stations alleging that public broadcasters receive state aid which distorts competition on the TV market within the EC, the Commission in 1993 appointed a firm of consultants to undertake a study on the situation, paying particular attention to the public service obligations imposed on public broadcasters, how much they cost and how much subsidy the public broadcasters receive. In October, the Commission received the final report and sent it to Member States for comments. In respect of the new Member States and the EFTA States, signatories to the EEA Agreement, it has issued an invitation to tender for a similar study. When it receives the comments' of Member States on the first study and when the second study is completed, the Commission will consider the cases pending and encourage a debate on the way forward. 2. Horizontal aid 2. 1. Research and development 201. On 20 December the Commission adopted a new Community framework for state aid for research and development. The framework in force since 1986 was amended in the light of the new competition environment both in the Community and internationally. The revised version takes account of the recommendations of the White Paper on growth, competitiveness and employment and of the consequences of the agreements resulting from the multilateral negotiations of the Uruguay Round. ,. In addition, the text clarifies certain unwritten practices developed by the Commission since the 1986 framework entered into force. Although as a general rule the admissible aid level is still 25% for pre-competitive development projects that are closer to the market, and 50% for basic industrial research, "bonuses" are possible for projects involving SMEs (+10 points), assisted regions (+5 or 10 points) and. projects tagged as priority in the Community R&D framework (+15 points). Furthermore, the admissible aid intensity will also be increased by 10 points for projects meeting at least one of the following criteria: cross-frontier cooperation between independent firms, broad dissemination of research results, cooperation between universities and industry. An increase of 25 points will be allowed for priority projects under the R&D framework which also provide for cross-frontier cooperation between enterprises or between enterprises and public research bodies, and broad dissemination of results. This system of bonuses will make it possible to adjust the amount of aid that is acceptable on the basis of the general interest and which must in any event comply with the maximum rates of the WTO Subsidies Code. To take account of competition outside the Community and the new possibilities offered by the WTO Agreement on Subsidies and Countervailing Measures, the new framework provides that European firms are eligible for the maximum aid levels approved by the WTO (50% for precompetitive research and 75% for basic industrial research) in the following cases: overlapping state aid and Community support, important project of common European interest (exemption under Article 92(3)(b)), projects and programmes for which similar activities are carried out by enterprises outside the European Union having benefited (in the last three years) or about to benefit from aid having an equivalent intensity at a level accepted by the WTO for the same two types of research. 72 In the new framework, to lessen the bureaucratic burden on Member States and itself, the Commission believes, on the basis of experience, that it is no longer necessary to notify annual budget increases of less than 100% of the original amount and/or extensions of authorized schemes, provided that certain conditions are met. Aid to an individual project under a research and development scheme authorized by the Commission need not in principle be notified. However, the new framework requires notification of large aid grants under existing schemes, setting the aid threshold. at ECU 5 million and project costs at ECU 25 million. The revised framework also provides for different situations in which public financing of R&D conducted by establishments of higher education or non-profit-making public research bodies, either individually or on behalf of enterprises or in collaboration with them, does or does not cope within the scope of Article 92(1) of the EC Treaty. The framework also specifies the factors taken into account by the Commission to determine whether R&D aid proposed by a Member State encourages enterprises to carry out' supplementary research and development in addition to that which they carry out in the course of their normal work (incentive effect of R&D aid). For SMEs, it will be assumed that the aid is necessary and acts as an incentive, whilst in the case of large undertakings the Commission will pay particular attention in aid cases where the research is close to the marketplace. 2. 2 Employment aid and general social measures 202. In 1995, the persistently high unemployment rate within the Community was the fundamental economic and social problem facing the Community. In an attempt to remedy this grave situation Member States introduced an increasing number of measures to promote employment and, in its White Paper on growth, competitiveness and employment, the Commission set out various ways of promoting employment in harmony with Community competition policy. Most measures taken by Member States under their labour market policies are general in nature and do not involve aid, either because they do not favour certain undertakings or do not affect trade between Member States within the meaning of Article 92(1) of the EC Treaty. For example, under the new Danish Energy Package, which imposes on Danish industry new or increased energy taxes (C02 and S02 emissions) , some of the proceeds of these taxes will flow back to the industry in the form of a general reduction in labour market contributions paid by the industry. As all companies automatically benefit from this reduction on the basis of objective criteria, the Commission did not consider this reduction to constitute state aid under Article 92(1). Only measures that selectively reduce labour costs of certain firms or in certain sectors with a view to encouraging them to increase their labour force, to maintain the level of employment or to recruit certain categories of unemployed persons distort or threaten to distort competition because they favour the beneficiaries vis-à-vis their competitors. Accordingly, the Commission considered that a Swedish scheme available only to firms with less than 500 employment employees constituted state aid in favour of those firms to the detriment of competitors with more than 500 employees. aid 203. Given the considerable number of aid measures to promote employment, the Commission considered it appropriate to clarify state 73 aid policy in this field by way of the employment aid guidelines. 122 As regards support measures for training, the issue will be indirectly addressed in the more general guidelines on the distinction between state aid and general measures since measures that support training can in many cases be defined as general measures. The prime objective of the Employment Aid Guidelines is to inform Member States and interested parties of the principles the Commission will apply in determining the existence and compatibility of employment aid measures with the common market and in ensuring coherence between the competition rules and the employment policy measures advocated in the Commission's White Paper on growth, competitiveness and employment. The guidelines confirm the traditionally positive approach the Commission has taken towards state aid for job creation, in particular aid granted to SMEs or firms located in regions eligible for regional aid, provided that the aid leads to a net increase in the number of jobs in the firm concerned. Similarly, the Commission normally takes a favourable view of aid granted to firms that take on unemployed persons who have particular difficulties in finding a permanent job, such as the long-term unemployed or young people. In its assessment the Commission will also take account of possible counterparts offered by the firm for aid going beyond the employment of the unemployed, such as training. Moreover, in line with the general principles underlying state aid policy, the Commission will always examine whether or not the aid is necessary to take on an unemployed person and whether or not it is temporary. However, not all employment aid is viewed favourably by the Commission, which considers that certain employment aid measures, given their actual or potential harmful effect on competition within the common market, are contrary to the common interest and may be approved only in a limited number of cases. Thus, the guidelines confirm the Commission's unfavourable view on aid to maintain jobs in a firm. In fact, such aid constitutes operating aid which generally has the effect of frustrating or delaying structural changes necessary to render a firm/sector economically viable, thereby keeping unprofitable businesses artificially alive. The Commission considers that, in most cases, the negative effects of such aid outweigh the possible short- term benefits in terms of maintaining a certain level of employment. Moreover, it will normally look unfavourably on aid for job creation available to only one or more sectors that are sensitive, suffer from overcapacity or are in a crisis. The negative effects such aid might have on competing firms in the same sector in other Member States and the risk that aid would merely export unemployment to other Member States outweigh the positive effects in terms of reduction of the unemployment rate in the Member State granting the aid. The Commission thus decided to initiate the procedure provided for in Article 93(2) in Italy under in respect of employment aid offered to the shoe sector a general employment aid scheme to sectors suffering from an employment crisis. However, aid to maintain jobs may be approved if it is granted to firms located in regions which, owing to the serious socio-economic problems they are experiencing, are eligible for regional aid under Article 92(3)(a) or if it is granted in the context of a rescue or restructuring plan. 123 Moreover, sectoral employment aid may be approved in regions with serious unemployment or if it is granted in subsectors which are experiencing economic growth and generating jobs. 204. In response to the urgent need to deal with the current unemployment crisis in the European Union and to support the promotion of structural employment policies, in particular by means of active 122 OJ C 334, 12. 12. 1995, p. 4. 123 Guidelines on rescuing and restructuring firms in economic difficulty (OJ C 368, 23. 12. 1994). 74 labour market measures, the Commission is considering adopting an accelerated procedure for the notification of employment and training aid schemes. Under the accelerated procedure, the Commission will decide within twenty working days on notified aid measures. 2. 3. Aid for environmental protection 205. The Community's environmental policy is based on the principle that the polluting firm should pay for the environmental damage it causes. Aid to firms for environmental protection is, in principle, not compatible with the "polluter pays" principle. However, it must be recognized that, in certain cases, such aid may be necessary either as an incentive for companies to implement measures for the protection of the environment going beyond existing mandatory requirements or in order to preserve the competitiveness of the industry when imposing new environmental requirements. Thus, under certain circumstances, aid for environmental protection may be justified. However, it is clear that such aid is capable of distorting competition between companies within the common market and is justified only if the beneficial effects of the aid on the environment outweigh the distortive effects on competition. 206. The Community guidelines on state aid for environmental protection124 aim to strike a balance between the above-mentioned competition policy and environmental policy considerations. Thus, they confirm the "polluter pays" principle but at the same time provide that environmental aid may be authorized under certain conditions. firms tax on groundwater In line with these principles, the guidelines stipulate that, although operating aid is normally considered to be incompatible with the common market, in exceptional cases the Commission may authorize operating aid in the form of relief from environmental taxes as well as other compensatory measures, provided that the aid is necessary to achieve the environmental objectives set. Thus, the Commission considered that the relief from new energy taxes on C02 and S02 emissions energy-intensive from Netherlands could be approved since they had to be regarded as the inevitable price to be paid for being among the first countries to introduce a tax beneficial for the environment. Without some relief these taxes would so seriously damage the competitiveness of energy- intensive firms in the countries going ahead with the tax, in this case Denmark and the Netherlands, as to be impracticable. However, in order to ensure that these tax reliefs do not distort competition unduly and to encourage aid recipients to implement measures to reduce pollution, the Commission will always stipulate that the tax relief must be temporary and, in principle, degressive. in Denmark and the Netherlands in and the firms of relief the of certain and waste favour favour in in 2. 4. Aid to small and medium-sized enterprises (SMEs) 207. The Commission continued in 1995 to apply the criteria of the Community guidelines on state aid for SMEs adopted by the Commission on 20 May 1992. 125 The framework provides for a review of its application by the Commission no later than three years after publication. The Commission therefore presented experts from the Member States, at a multilateral meeting held in July, with the conclusions of the review and noted the changes it believed to be necessary. The Commission's objective continues to be to authorize aid which provides impetus and overcomes specific handicaps affecting SMEs The whilst limiting distortions of competition to a minimum. 124 OJ C 72, 10. 3. 1994. 125 OJ C 213, 19. 8. 1992, p. 2. 75 discussion chiefly centered on clarification and simplification of the rules, updating the de minimis rule and the possibility of taking account of investment expenditure relating to technology transfers. 2. 5. Export aid 208. Export aid, i. e. aid linked to the quantity126 of goods sold in other Member States/EEA States or aid closely linked to the marketing and sale of goods in those countries (such as aid for the setting-up or operation of distribution networks or sales agencies for goods and services within the Community and the EEA) , is clearly at odds with the objective of an internal market. Such aid does not promote any Community objective which can justify its direct distortive effects on competition. Thus, the Commission will not authorize export aid. However, in line with the favourable view it takes of financial assistance to SMEs, in particular in view of their limited know-how and difficulties in raising external financing, the Commission may authorize soft aid in favour of SMEs related to the development of export markets, such as aid for consultancy and marketing research, provided that the aid is a one-off operation and limited to the penetration of new markets. It may, under the same circumstances, approve aid to SMEs for participation in trade fairs. 209. European companies are not only in competition within the EC/EEA but also compete for investment on foreign markets, such as Eastern Europe, Russia and South-East Asia. The Commission believes, that aid to firms for investments on foreign markets may distort competition and affect trade within the Community and therefore falls under the state aid rules of the EC Treaty. It is concerned that such aid measures may lead to business relocation and be available predominantly in the central and most-developed regions of the Community, thereby negating the efforts made under the Community's cohesion policy to reduce the gap between the more prosperous and the less prosperous regions of the Community. On the other hand, these aid measures may assist countries in Eastern Europe, the Baltic States and Russia in their efforts to convert to a market economy and may, therefore, be justified in certain cases. To establish a clear policy in this field the Commission decided to open the Article 93(2) procedure in respect of a number of internationalization schemes and invited Member States and third parties to submit their comments. 210. The Commission has continued its efforts to reach an agreement, with Member States on a Communication on short-term export credit insurance, which will require Member States to withdraw public support from export credit insurance companies in respect of short-term commercial risks. The Commission expects that the outstanding problems will be resolved in the course of 1996 so that the Communication can then be adopted. 2. 6. Rescue and restructuring aid 211. The Commission continued to apply the new guidelines on rescuing and restructuring firms in economic difficulty. 127 Without strict control, rescue and restructuring aid may be used by Member States to sustain ailing companies artificially, with the risk that necessary structural adjustments in the internal market will be frustrated or unduly delayed and the burdens of such adjustments shifted onto viable companies. However, rescue and restructuring aid may be warranted, for instance, on the basis of social or regional policy considerations, and The Commission is considering whether to include an explicit exemption to this end in the "de minimis" rule under revision. OJ C 368, 23. 12. 1994, p. 12. 76 the main objective of the guidelines is to strike a reasonable balance between such considerations and the creation of a common market with free and undistorted competition. 212. The purpose of rescue aid is to maintain a firm in operation temporarily while an appropriate restructuring plan is drawn up. A rescue aid may therefore be granted for only a limited period of time, normally no more than six months. The Commission considered that the guarantee with a duration of eighteen months granted by the Spanish (Guascor) for commercial Government to Gutierrez loans did not meet the conditions of rescue aid. Asunce Corporacion 213. Under the guidelines, the Commission makes the approval of restructuring aid subject to strict conditions. In particular, the aid should normally be a one-off operation. It must be linked to a restructuring plan capable of restoring the long-term viability of the firm within a reasonable period of time and on the basis of realistic assumptions as to its future operating conditions, so that further aid will not be necessary. The Commission considers this to be a sine qua non for the approval of restructuring aid. 128 In view of the fact that certain German guarantee did not, in principle, exclude the restructuring repetitive provision of aid for such operations in favour of the same firm, the Commission reserved its right to examine such repetitive aid individually. Similarly, as the restructuring plan for SANTANA Motor S. A. , a subsidiary of SUZUKI Motor Corporation Group, was vague and unconvincing and did not aim to restore the long-term viability of the firm, the Commission could not approve the aid which the Spanish Government intended to grant under that plan and decided to institute the investigative procedure of Article 93(2) EC. and soft-loan in difficulty of firms schemes rescue and the for Agricultura 214. In order to offset as far as possible adverse effects on competitors, it is a condition for authorizing restructuring aid to firms operating in sectors suffering from structural overcapacity that the recipient firm reduce capacity in a genuine and irreversible way. In its approval of restructuring aid to the Italian fertilizer company the Commission emphasised the Enichem implementation of an irreversible reduction in the company' s production capacity and decided, moreover, that this condition for approval had to be respected until such time as the effects of the aid on the competitive situation in the Community were insignificant. However, it was unable to approve a state guarantee in favour of the Spanish company Guascor since the restructuring plan for the company did not seem to provide for reductions in capacity in at least one of its product sectors in which there is overcapacity in the EC. S. p. A. , The Commission cannot itself impose a condition of privatisation on an undertaking that receives aid for restructuring purposes. However, a commitment from a Member State to privatize the recipient of aid may be a decisive element for the Commission in assessing the future viability of the company without the need for further aid. Thus, in its decision on the compatibility of the restructuring aid to the Italian fertilizer company Enichem Agricultura the Commission took account of the commitment made by the Italian Government to privatize the company. S. p. A. , 128 See also the Community guidelines on state aid to the aviation sector (OJ C 350, 10. 12. 1994, p. 5). 77 2. 7. Treuhandanstalt 215. In January the Commission decided on the terms applicable for 1995 for privatization aid in the new Lander. Such terms had previously been defined in 1991129 and 1992130. Following the dissolution of the the Commission decided that the procedures and Treuhandanstalt, assessment criteria applying to privatizations in 1995 should be more in line with those applicable for other Member States. After the transition year 1995 no special rules would exist. The Commission investigated several individual cases of aid for the privatization of companies in the new Lander. By far the most important was the privatization of the petrochemical plants of BSL (Buna, Sâchsische Olefinwerke, Leuna) to Dow Chemical. In November, the Commission took a final decision allowing aid of ECU 5 billion (DM 9. 5 billion) for the restructuring of BSL as an integrated complex. 3. Regional aid 216. The Commission continued its review of the schemes in force, their arrangements and the maps of the regions to be regarded as eligible for regional aid (in accordance with the principles of a reduction in population coverage and consistency with the Structural Fund maps). Decisions were taken for the Netherlands, Belgium (excluding Hainaut), Spain and Italy. The whole review exercise is thus almost over with only one country's still having to revise its map. As regards the three new Member States (Austria, Sweden, Finland) , the Commission approved and adopted the maps drawn up by the EFTA Surveillance Authority in 1994 in the context of the European Economic Area. The Commission also continued to examine, under Articles 92 and 93 of the Treaty, the compatibility of Structural Fund assistance for various Community objectives and initiatives. D - Procedures (rights of complainants) 217. In its judgment of 28 September 1995 in Case T-95/94 SYTRAVAL v. Commission, the Court of First Instance annulled the Commission's decision of 31 December 1993 rejecting a complaint in respect of alleged state aid in favour of Sécuripost, a subsidiary of the state- owned French postal administration, which operates in competitive markets. The CFI considered that the Commission had not provided sufficient reasoning for the rejection of a series of statements by complainants alleging preferential treatment of Sécuripost. The significance of this judgment lies in the statements made by the CFI in respect of the rights of complainants in such procedures. The CFI stated that the Commission must examine impartially and exhaustively all allegations made* by complainants and cannot impose on the complainant the burden of proof concerning the existence and (in)compatibility of state aid. Otherwise, complainants would be required to obtain information in support of their allegations which in most cases they would not be able to collect without the Commission's acting as an intermediary. Therefore, the Commission cannot justify the lack of sufficient reasoning or the failure to examine certain allegations on the grounds that the complainant has not provided sufficient information. The conclusions in SYTRAVAL confirm the CFI's judgment of 18 September 1995 in Case T-49/93 SIDE v. Commission. 129 XXIst Competition Report, point 249. 130 XXIInd Competition Report, point 349. 78 218. There are two stages in the Commission's procedure for the examination of state aid measures: the preliminary examination of the measure, and the opening of the procedure provided for in Article 93 (2) EC in cases where the Commission, following the preliminary examination, still has doubts as to the compatibility of the measure with the common market. Whereas the Treaty provides for a procedure whereby third parties are invited to submit their comments in the procedure opened under Article 93(2), this is not the case in respect of the preliminary examination. When the compatibility of an aid with the common market can be established without further examination, it does not appear necessary to alert third parties before tja. e decision of the Commission. Therefore, it has been the consistent practice of the Commission not to grant third parties, including complainants, a right to be heard during the preliminary examination. The European Court of Justice has supported this position in a number of judgments. 131 However, further to the requirement to examine impartially and exhaustively all the allegations made by the complainant and to state the reasons for its decision in SYTRAVAL, the CFI imposes an obligation on the Commission, under certain circumstances, to initiate a contradictory procedure with complainants in cases involving difficult questions as to the determination of whether or not measures are state aid before the Article 93(2) procedure has been opened. The judgment seems to impose additional obligations on the Commission in its examination of complaints in cases giving rise to doubts about the existence of aid, and to go against the established case-law of the European Court of Justice. Therefore, the Commission has appealed against this judgment to the ECJ. E - Statistics 219. Over the year, the Commission registered 680 notifications of new aid measures or changes to existing aid measures, and 113 cases of unnotified aid. 132 In the same period, it decided in 504 cases not to raise objections in 504 cases. In 57 cases it decided to initiate the procedure provided for in Article 93(2) of the EC Treaty or in Article 6(4) of Decision 3855/91/ECSC. This detailed analysis procedure resulted in 22 positive final decisions, 9 negative final decisions and 5 conditional final decisions. Lastly, the Commission decided to propose appropriate measures under Article 93 (1) of the EC Treaty in respect of 6 existing aid systems. 131 See in particular Case 84/82 Germany v Commission [ 1984] ECR 1451. 132 These figures dp not include aid cases in agriculture, fisheries, transport and-coal 79 Graph 1: New cases in 1995 I 10 113 680 • Reexamined aid * Unnotified aid D Notified aid 16 68 510 1 1994 1995 Decisions taken by the Commission 619 900 800 700 600 500 -- 400 300 200 100 0 Graph 2 700 600 500 1 400 300 200 4 100 1991 1992 1993 1994 1995 80 Table 1: Decisions by Member State Austria Belgium Denmark Finland France Germany Greece Ireland Italy Luxembourg Netherlands Portugal Spain Sweden United Kingdom EUROPEAN UNION 22 15 17 2 51 209 9 3 93 1 34 12 110 6 35 619 81 V - International activities A - European Economie Area 220. After Austria, Finland and Sweden joined the European Union on 1 January 1995, Norway and Iceland were the only remaining EFTA signatories of the Agreement on the European Economic Area (EEA Agreement). On 1 May 1995 they were joined by Liechtenstein. Cooperation in matters of competition resulting from the EEA Agreement, supplemented by informal but systematic consultation measures established by common accord between the Commission and the EFTA Surveillance Authority,133 was maintained with the three countries. In addition, in accordance with Article 172 of the Treaty of Accession of Austria, Finland and Sweden to the European Union,134 the aid cases relating to the new Member States that were being processed by the EFTA Surveillance Authority were forwarded to the Commission (some 80 cases under Articles 53 and 54 of the EEA Agreement and about 400 aid cases). B - Central and Eastern Europe, Baltic States, New Independent States and Mediterranean countries 1. Central and Eastern Europe 221. As part of the pre-accession strategy for the six associated countries of Central and Eastern Europe (CEECs),135 the Essen European Council of December 1994 stressed the importance not only of competition policy but also of facilitating its' enforcement. Among other things, it charged the Commission, together with the Member States, with setting up a competition policy training programme. The Commission and the Member States' authorities have met several times and managed to improve coordination of their actions and to launch a significant joint action. Officials from the CEECs and from the Baltic States attended a two-week collective training period at DGIV in September (financed by the PHARE programme) and then individually visited a national competition authority in the EU. The action was widely acclaimed by the participants. Technical assistance under the PHARE programme has so far centred mainly on anti-trust law aspects. In 1996, it will focus in particular on monopolies, exclusive rights and state aid, and will pay particular attention to effective enforcement of legislation. The Commission's White Paper providing guidelines on the integration of the CEECs136 underlines the importance of a viable competition policy for economies in transition and lays down four pillars (anti-trust, mergers, state aid and state monopolies/exclusive rights) for the approximation of legislation which the associated countries should undertake. Substantial progress has been made in this area as regards anti-trust; all but one associated country have a competition law authority. Upon accession, these countries will accept all of the 133 22nd Competition Report, points 85 to 89 and 24th Competition Report, point 399. 134 OJ C 241, 29. 8. 1994. 135 The Europe Agreements with Romania, the Czech Republic, Bulgaria and the Slovak Republic entered into force on 1 February 1995; those with Poland and Hungary entered into force on 1 February 1994, The Agreements' substantive competition rules are basically those of the Treaty of Rome; see XXIVth Report on Competition Policy, point 401. 136 Commission White Paper on the preparation of the associated countries of Central and Eastern Europe for integration into the internal market of the Union (May 1995), endorsed by the Cannes European Council in June 1995. 82 Community legislation in force ("acquis communautaire") and, in the meantime, technical assistance is being provided. As regards the rules for implementing the Europe Agreements, those for applying the competition rules to undertakings are in the process of being adopted by the Association Councils while a proposed set of rules is being discussed for state aid. One country has agreed to the set of rules and the formal approval process is being launched. Another country has announced its agreement. The Commission has made several efforts to publicize competition policy for all economic agents in these countries. At the Brno conference in April, the Director-General for Competition spoke to a wide audience, including competition officials and business representatives, about the international dimension of competition policy and the importance of cooperation between competition authorities. At the Visegrad Conference on 19-21 June, heads of the competition authorities in the CEECs and DGIV officials discussed specific competition problems of economies in transition and also the interaction of anti-trust and state aid policies; a joint action programme was agreed upon. It was agreed inter alia to establish a network for electronic data exchange. In the autumn the Director-General for Competition visited Bulgaria and discussed issues relating to state aid and monopolies. 2. Baltic States, Slovenia, and New Independent States 222. As part of the pre-accession strategy for the Baltic States (Estonia, Latvia and Lithuania), the Free Trade Agreements (FTAs), which contain the same competition rules as those in the Europe Agreements with the CEECs, came into force on 1 January 1995. They will soon be replaced by the Europe Agreements signed in June; these three countries now must fulfil the same conditions for inclusion in the pre- accession strategy which the EU has set for the CEECs. The same implementing rules as those for the CEECs are proposed for the Baltic States. One country has notified its basic agreement both with the rules on undertakings and with those on state aid. Negotiations with Slovenia for a Europe Agreement are under way. Partnership and cooperation agreements have been sighed with Russia, Ukraine, Belarus, Kazakhstan, Kyrgyzstan and Moldova; although the competition rules agreed upon are less stringent than those in the CEEC agreements, the agreements also include a clause on the approximation of legislation. Cooperation has begun, in particular by means of the provision of technical assistance under the TACIS programme. In this context, financing was provided for an international conference organized by the Russian competition authority in the autumn in Moscow and attended by the Deputy Director-General for Competition. A working group with Russia met in May and again in December. It reviewed ways of embarking on the practical implementation of the partnership and cooperation agreement (PCA). 3. Mediterranean countries and Mercosur 223. Association agreements have been signed with Tunisia, Morocco and Israel and similar agreements are currently being negotiated with Jordan, Egypt and Lebanon. These contain or are expected to contain competition rules as provided in the Europe Agreements. The agreement for establishing a customs union with Turkey, which has been signed and is in the process of ratification, contains extremely stringent obligations relating to the approximation of legislation, particularly competition law, which must be fulfilled within specified periods. It is to be noted that all these bilateral agreements have triggered important moves in the direction of policy harmonization. This is 83 compatible with the recommendations of the group of experts on competition policy in the new trade order (see below). Negotiations with Mercosur are under way and will extend to some aspects of competition. C - North America 224. The Agreement between the European Community and the United States on the application of their competition laws was approved by the European Council on 10 April. At the same time, the Council approved the text of a letter addressed to the United States clarifying the European Community's interpretation of certain provisions of the Agreement. 137 This letter, reflecting the text of Commission statements made to the Council, clarified two issues. Firstly, information covered by Article 20 of Regulation No 17 or by equivalent provisions of other regulations in the field of competition may not be communicated by the Commission to the US anti-trust authorities save with the express agreement of the source concerned. Secondly, each Party ensures the confidentiality of all information provided in confidence by the other Party and will use all the legal means at its disposal to oppose the disclosure of such information. The Commission, after notifying the US competition authorities, will inform the Member State(s) whose interests are affected of notifications sent to the Commission by the US anti-trust authorities and, after consulting them will also inform the Member State(s) concerned of any cooperation or coordination of enforcement activities. In the latter regard, however, the Commission will respect a request by the US authorities not to disclose the information which they provide in cases where this is necessary to ensure confidentiality. The approval of the Agreement by the Member States has imparted the political impetus and created the legal certainty necessary for a redoubling of cooperation efforts between the EC and the US. Notifications from the US to the EC under the Agreement have continued regularly through the year with a total of 35 altogether (21 from the Department of Justice and 14 from the Federal Trade Commission) , 21 of which were in merger cases. The notifications from the EC to the US resumed after 10 April, following the short interruption due to uncertainty about the legal position of the Agreement under Community law138. The EC notified the US on 43 occasions in 1995, of which 30 involved merger cases. The biannual high-level meetings between the Commission and the US anti-trust authorities resumed on 13 November after a break of two years. The discussions concentrated on the effectiveness of current bilateral cooperation and a number of areas were identified for further study. Future bilateral and multilateral cooperation was also discussed in the context of the report of the group of experts on competition policy in the new trade order and of the adoption by the United States of the International Antitrust Enforcement Assistance Act of 1994. A significant part of the meeting was also given over to innovation markets and their relationship with competition policy. 137 OJ L 95, 27. 4. 1995, as corrected by OJ L 131, 15. 6. 1995, 138 XXIVth Competition Report, point 413. 84 On 23 January the Council authorized the Commission to open negotiations with Canada on a bilateral cooperation agreement in the area of competition. 139 A first round of negotiations under this authorization was held on 27 January, when good progress was made in defining the shape of a draft agreement. The draft agreement was discussed by the Council Group on Economic Questions on 6 March. It is expected that the negotiations will be concluded in the first part of 1996. An informal meeting between the Commission and the Canadian Bureau of Competition Policy was held on 14 November to exchange views on recent developments in competition policy in the EU and Canada. D- Japan 225. Relations between DG IV and the Japanese Fair Trade Commission (JFTC) remained close during the year under review. On 22 November the third seminar held jointly by the two competition authorities took place in Tokyo. The seminar topics concerned the role of competition policy in a globalized economy and the scope of competition policy. The annual bilateral meeting between DG IV and the JFTC was held on 24 November. The two competition authorities discussed bilateral relations and subjects of common interest such as the liberalization and internationalization of the competition rules. They also reported on the main legislative developments in their respective areas and on the implementation of the competition rules. Both formal and informal contacts with the Japanese authorities were intensified in 1995. DG IV was thus able, under the deregulation plan adopted in May by the Japanese Government, to put forward its requests to that Government for a broader and more rigorous application of the competition rules, the abolition of virtually all the exceptions to those rules and the strengthening of the competition authority (JFTC). E - Australia and New Zealand 226. Bilateral contacts with Australia were pursued on a number of occasions during 1995. Topics discussed during these informal meetings included recent policy developments in the EU and Australia, in particular in the area of deregulation, and the reform of the Australian Competition Act. F - Multilateral organizations and other international issues 1. OECD 227. DG IV played an active part in the work of the OECD on competition matters. The main areas of discussion were the convergence of laws, international cooperation and the relationship between competition policy and international commercial policy, in the context of the liberalization of trade. Other topics included the application of the competition rules to the liberalized sectors (telecommunications and maritime transport); lastly, particular attention was paid to certain individual or sectoral aspects of competition policy (failing firm and efficiency claims, vertical integration in the cinema industry, competition policy and environmental policy). XXIVth Competition Report, point 414. 85 DG IV represents the- Commission in the OECD Industry Committee's Working Party on Public Support Measures. By way of its expertise, it continued to contribute to the ongoing OECD survey on public support in the manufacturing sector. 2. World Trade Organization 228. Negotiations in the sectors where agreement could not be reached by the end of the Uruguay Round were actively pursued, especially as regards basic telecommunications services. The European Union, within the framework of the negotiations, put forward a proposal which places emphasis in particular on a timetable for external liberalization that is compatible with liberalization within the European Union, as well as guarantees in terms of the independence of regulators. In the state aids field, all Member States agreed to the Commission's proposal for a joint notification and reporting procedure to the Commission and the World Trade Organisation, thereby modifying the existing standardized system of notification and annual reporting of state aid140. As a result of this modification, the notification of subsidies as required by the WTO Agreement on Subsidies and Countervailing Measures and the above annual reporting is carried out in one step. The Commission is confident that this new procedure will alleviate the administrative burden on Member States and ensure a high level of transparency. 3. UNCTAD 229. DG IV continued to play an active part in the work of UNCTAD on restrictive trade practices. In particular, it took part in the third United Nations Conference which reviewed all the principles and rules agreed by UNCTAD in this area. 4. International cooperation 230. The group of experts convened by Mr Van Miert in 1994 to discuss the prospects for closer cooperation between competition authorities presented its report in July 1995. 141 It made a number of recommendations. Having, briefly examined the possibility of establishing an international competition authority and a worldwide competition code, it put this to one side as not being realistic in the short or medium term. Instead it felt that one should commence with the introduction of an adequate set of competition rules by those countries not yet having one. In this regard the group recommended that assistance should be provided by those countries which have already acquired experience in this area. The group proposed a dual approach. First, it recommended a strengthening of bilateral cooperation between competition authorities with, as a priority, a deepening of existing cooperation with the United States and an extension of bilateral cooperation to other partner countries. The second but principal recommendation of the group was the elaboration of a plurilateral cooperation framework as the group believes that, even if it is strengthened, bilateral cooperation cannot resolve all the problems facing competition authorities or create effective momentum for enforcing competition rules in third-country markets. A plurilateral agreement would include all the elements 140 Commission letter D/20500 dated 2 August 1995 replacing letter SG(94) D/2484 dated 22 February 1994. m Competition policy in the new trade order: strengthening international cooperation and rules (COM(95) 359 final). 86 already incorporated in bilateral agreements, to which would be added a set of minimum competition rules, a binding positive comity instrument and an effective and progressive dispute-settlement mechanism. On 17 July the Commission authorized the presentation of the report to the Council and to Parliament with a view to launching discussions with the Union's main partners and within the international organizations concerned. At a meeting of the Directors-General of the Member States' competition authorities on 17 October, it was agreed that a working group should be established to consider the technical aspects of some of the group's recommendations. This report has also been presented to the European Parliament, to the Council's Article 113 Committee and to the Community's OECD partners. The initial reaction has been positive. 87 VI - Information policy 231. During 1995, the Commission continued its active public information campaign on competition policy. As in the past, press releases on competition-related issues accounted for almost one third of the total number of Commission press releases. With its limited resources, DG IV s Information Service replied during the past year to more than 1000 questions from the public, forwarding relevant documentation or providing useful advice. Owing to a lack of resources, most information enquiries have in recent months been answered by way of standard letters containing an updated list of Community (including publications studies and speeches by DG IV officials). DG IV, in collaboration with the Office for Official Publications, published during 1995 several reference books on competition law, while the EC Competition Policy Newsletter, issued three times per year and with a print-run of 17 000 copies, has established itself as a leading source of information in the field. For 1996, several new publications are under preparation and DG IV plans to introduce data on EUROPA, the European Institutions' host on the World Wide Web. 143 the public1*2 on competition available to For more information and to obtain the latest list of Community Publications available rue de la Loi, Bruxelles B-1049 Brussel, tel. (+32-2) 295 76 20, fax. (+32-2) 295 54 37, Electronic mail: X400: c=BE;a=RTT; p=CEC;o=DG4;s=INF04, Internet: Info4@dg4. cec. be Competition the public, contact DG IV s Cellule Information, C150 00/158, Wetstraat, 200 on to http://www. cec. lu. Annex : Cases discussed in the report 1. Articles 85 and 86 and Article 90 Case ' Brussels National Airport Atlas - Phoenix ATR/BAe BASF/Accinauto Coapi Gas Interconnector ICG/CCI Morlaix Inmarsat-P Lufthansa/SAS Omnitel Pronto Italia Organon Pelikan/Kyocera TACA Uni lever/Mars Van Marwijk/FNK-SCK Vebacom 2. Merger control Case ABB/Daimler Benz Crown Cork and Seal/Carnaud MetalBox Glaxo/We 11 come [ - Lyonnaise des Eaux/Northumbrian Water Paragraph numbers 120 57 61-62 36 89 82 40,43 59 77-78 109 37-38 87 73 40, 41 40,42 111 Paragraph numbers 139 141 142 145 Mercedes Benz/Kâssbohrer. 135,137 Nordic Satellite Distribution Orkla/Volvo Perrier Repola Corporation/Kymmene RTL/Veronica/Endemol Siemens/Italtel Swissair/Sabena 133 140 147 144 134 135-136 76,143 89 3. State aid Case Air France Andalusian Development Agency AOM BSL (Buna, Sâchsiche Olefinwerke,Leuna) CGM Chrysler Crédit Lyonnais DAF Belgium DAF Netherlands Danish energy package EM-Filature Employment aid scheme in Sweden Energy taxes in the Netherlands Enichem Agricultura S. p. A. Ferries Golfo De Viscaya Ferrovie dello Stato S. p. A. • Fiat Mezzogiorno Footwear industry in Italy Ford Genk Ford Valencia Ford/VW Setubal French postal administration Guascor (Gutierrez Asunce Corporacion). Kimberley-Clark Lech-Stahlwerke GmbH Leuna-Werke GmbH Lisnave Lufthansa Maschinenfabrik Sangerhausen GmbH NedCar-Volvo/Mitsubishi ; Opel Austria Opel Eisenach ROSCOs Rover Santana Motor SA SEAT-Volkswagen Paragraph numbers 177, 178 • 159 181 215 185 171 197 168 168 202, 206 159 202 206 159, 214 184 189 171 203 167 169 171 198 212 158 159 162 159 180 160 171 169 171 189 ; 171 ] ' 213 | 168 ; |. 90 Siemens Nixdorf AG/Mainz SNF Swissair-Sabena Sytraval ' TAP ; Textilwerke Deggendorf GmbH Tubacex ; 157 171 179 217 - 177 154 157, 160 91 ISSN 0254-1475 COM(96) 126 final DOCUMENTS EN 08 Catalogue number : CB-CO-96-135-EN-C ISBN 92-78-01875-9 Office for Official Publications of the European Communities L-2985 Luxembourg -3L

Proposal for a COUNCIL DECISION authorizing the Netherlands to apply a measure derogating from Article 11 of the Sixth Council Directive (77/388/EEC) on the harmonization of the laws of the Member States relating to turnover taxes

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 03. 04. 1996 COM(96) 144 final Proposal for a COUNCIL DECISION authorizing the Netherlands to apply a measure derogating from Article 11 of the Sixth Council Directive (77/388/EEC) on the harmonization of the laws of the Member States relating to turnover taxes (presented by the Commission) EXPLANATORY MEMORANDUM to sent letter registered the Secretariat-General of By the Commission on 13 August 1993, the Dutch Government, acting on the basis of Article 27 of the Sixth Council Directive (77/388/EEC) of 17 May 1977 on the harmonization of the laws of the Member States relating to turnover taxes - Common system of value added tax: uniform basis of assessment1 , requested authorization to apply, in respect of the letting of immovable property, a measure derogating from Articles 11 and 20 of that Directive. In accordance with Article 27(3) of the Directive, the other Member States were informed of the Netherlands' request by letter dated 13 September 1993. As part of its efforts to combat tax avoidance, the Dutch Government requested authorization to introduce the following arrangements into its legislation. the extension to 20 years of the adjustment period for the deduction of VAT in the case of immovable property, which is set at 10 years by Article 20(2) of the Sixth Directive; the introduction of a minimum taxable amount for the taxable letting of immovable property; the introduction of a minimum taxable amount for the establishment of limited rights in respect of immovable property. The Commission took the view that these measures would constitute too absolute a derogation from what is a key provision of the common system of value added tax, namely Article 11 of the Sixth Directive, and would be disproportionate to the aim pursued. Since it had serious objections the measures, the Commission, acting under Article 27(4) of the Sixth Directive, requested on 11 November 1993 that the matter be raised by the Council. to The Council Working Party on Financial Questions began discussing Government's request at its meeting of 13 October 1994. the Dutch The Dutch authorities subsequently indicated that they wished to amend their request for a derogation, retaining only the request relating to the introduction of a minimum taxable amount for the establishment of rights in rem in respect of buildings or parts thereof and the land on which they stand. In addition, the measure would apply only to cases where the party acquiring the rights in rem is a non-taxable legal person or a taxable person carrying on exempted activities that do not entitle him to deduct VAT. Private individuals and taxable persons carrying on activities which entitle them to deduct VAT would thus be excluded from the scope of the derogation. OJ No L 145, 13. 6. 1977, p. l. Directive as last amended by Directive 95/7/HC (OJ No L 102. 5. 5. 1995, p. 18). It has been found in practice that tax devices for evading payment of some of the VAT normally due in respect of immovable property are being set up, chiefly for the benefit of non-taxable legal persons or taxable persons carrying on activities which do not entitle them to deduct VAT. The practices that the Dutch authorities wish to combat by means of the special measure usually follow the pattern set out below. A non-taxable legal person (e. g. a municipality) or a taxable person engaged exclusively in activities which do not entitle him to deduct VAT (e. g. a school) intends to buy or build new premises. Where this person (referred to below as person "A") carries out the operation himself, he has to bear the full amount of the VAT due either on the purchase transaction or on the building works. To avoid this tax burden, the building in question is acquired by another legal person (referred to below as person "B"). The only economic activity of B is to establish rights in rem in respect of the immovable property on behalf of A; B's activity entitles him to deduct all the VAT due on the purchase transaction or the building works. Once the adjustment period for VAT deducted in respect of investments in immovable property has expired, B sells the building freehold to A. The sale then qualifies for exemption from VAT under Article 13(B)(g) of the Sixth Directive. The tax avoidance therefore takes place when the contracting parties agree on an abnormally low price for the establishment of rights in rem, which attracts VAT, and compensation for this abnormally low price in the form of a high price for the freehold sale of the property, which is exempt from VAT. This enables A, the final purchaser, to have the use of a building and become the owner after a certain length of time while reducing the tax burden on the property considerably. For the establishment of rights in rem in respect of buildings or parts thereof and the land on which they stand, such rights being regarded as tangible property in accordance with Article 5(3) of the Sixth Directive, the planned measure is therefore aimed at introducing a minimum taxable amount equal to the open market value of the rights. However, the VAT would be calculated on the basis of the minimum taxable amount only in cases where the administration could prove that the taxable amount determined in accordance with the normal rules laid down in the Directive (i. e. on the basis of the price agreed between the contracting parties) is abnormally low in comparison with the price that could be obtained for the property in a transaction between independent parties operating at arm's length. But application of this measure cannot be restricted to cases in which rights in rem are established in respect of new buildings or parts thereof as referred to in Article 4(3 )(a) of the Sixth Directive. This is because, availing itself of the possibility open to it under Article 13(C)(b) of the Directive, the Netherlands allows taxable persons to opt for taxation of the establishment of rights in rem in respect of buildings or parts thereof and the land on which they stand other than those referred to in Article 4(3)(a). The Commission takes the view that the measure planned by the Netherlands is indeed a measure aimed at preventing tax avoidance within the meaning of Article 27 of the Directive. It also takes the view that, since the derogation should apply only in limited cases (where it is proven that the price agreed is abnormally lov ), it is proportionate to the aim pursued. 3 The Commission considers it appropriate for the Netherlands to be authorized to apply the planned special measure given its exceptional nature. Nevertheless, in order to enable the measure to be assessed once it has been applied for a certain period of time, the authorization should be granted only until 31 December 1998. 1 Proposal for a COUNCIL DECISION authorizing the Netherlands to apply a measure derogating from Article 11 of the Sixth Council Directive (77/388/EEC) on the harmonization of the laws of the Member States relating to turnover taxes (presented by the Commission) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to the Sixth Council Directive (77/388/EEC) of 17 May 1977 on the harmonization of the laws of the Member States relating to turnover taxes - Common system of value added tax: uniform basis of assessment1 , and in particular Article 27 thereof, Having regard to the proposal from the Commission, Whereas, pursuant to Article 27(1) of the Sixth Directive, the Council, acting unanimously on a proposal from the Commission, may authorize any Member State to introduce special measures for derogation from that Directive, in order to simplify the procedure for charging the tax or to prevent certain types of tax evasion or avoidance, Whereas, by registered letter to the Commission dated 13 August 1993, the Netherlands requested authorization to introduce a measure derogating from Articles 11 and 20 of the Sixth Directive; Whereas, in accordance with Article 27(3) of the Sixth Directive, the other Member States were informed on 13 September 1993 of the request made by the Netherlands; Whereas, since it had serious objections to the Dutch Government's request, the Commission, acting under Article 27(4) of the Sixth Directive, requested by letter dated 11 November 1993 that the matter be raised by the Council; OJ No L 145, 13. 6. 1977, p. l. Directive as last amended by DirectX 95/7/EC (OJ No L 102. 5. 5. 1995, p. 18). Whereas the Dutch Government subsequently amended its request, reducing considerably the scope of the special measures derogating from the common system of value added tax, Whereas the request is confined to a measure introducing a minimum taxable amount for the establishment of rights in rem in respect of buildings or parts thereof and the land on which they stand where the party acquiring the rights is a non-taxable legal person or a taxable person carrying on exempted activities that do not entitle him to deduct VAT; Whereas under Article 5(3) of the Sixth Directive the Netherlands considers the establishment of rights in rem to be a supply of goods; Whereas, availing itself of the possibility open to it under Article 13(C)(b) of the Sixth Directive, the Netherlands allows taxable persons to opt for taxation of the establishment of rights in rem in respect of buildings or parts thereof and the land on which they stand other than those referred to in Article 4(3)(a) of the Directive; whereas the derogation therefore also relates to such transactions; Whereas, by taking the open market value as the taxable amount for certain supplies, the proposed measure derogates from Article 11(A)(1)(a) of the Sixth Directive, which provides that the taxable amount for supplies of goods is to be everything which constitutes the consideration which has been or is to be obtained by the supplier from the purchaser or a third party for such supplies, including subsidies directly linked to the price of such supplies; Whereas the derogation is aimed at preventing the tax avoidance which takes place when the contracting parties agree on an abnormally low price for the establishment of rights in rem, which attracts VAT, and compensation for this price in the form of a high price for the freehold sale of the property, which is exempt from VAT; Whereas the special measure is to apply only in cases where the administration is able to prove that the taxable amount determined in accordance with Article 11(A)(1)(a) of the Directive is abnormally low; whereas the administration may not act on mere presumptions, and the parties concerned must be allowed to adduce evidence to the contrary where they dispute the level of the open market value established by the administration; Whereas, given the limited scope of the derogation, the special measure is proportionate to the aim pursued; G Whereas the authorization is granted temporarily, thereby enabling the effects of the measure to be assessed once it has been applied for a certain period of time, Whereas the derogation in question has no adverse impact on the European Community's own resources accruing from value added tax, HAS ADOPTED THIS DECISION: } Article 1 By way of derogation from Article 11(A)(1)(a) of Directive 77/388/EEC, the Netherlands is hereby authorized to take the open market value, as defined in Article 11(A)(1)(d) of the Directive, as the taxable amount for the establishment of rights in rem in respect of buildings or parts thereof and the land on which they stand, considered to be tangible property in pursuance of Article 5(3) of the Directive, where the following two conditions are met: the taxable amount determined in accordance with Article 11(A)(1)(a) of the Directive is abnormally low in comparison with the price that could be obtained for the property in a transaction between independent parties operating at arm's length; the party acquiring the rights in rem is a non-taxable legal person or a taxable person carrying on exempted activities that do not entitle him to deduct VAT. Article 2 This authorization is granted until 31 December 1998. This Decision is addressed to the Netherlands. Article 3 Done at Brussels, For the Council The President ? ISSN 0254-1475 COM<96) 144 final DOCUMENTS EN » Catalogue number : CB-CO-96-148-EN-C ISBN 92-78-02238-1 Office for Official Publications of the European Communities L-2985 Luxembourg 3

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL CONCERNING THE EURO- MEDITERRANEAN PARTNERSHIP IN THE ENERGY SECTOR

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COMMISSION OF THE EUROPEAN COMMUNITIES *** it •6 •rV Brussels, 03. 04. 1996 COM(96) 149 final COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL CONCERNING THE EURO-MEDITERRANEAN PARTNERSHIP IN THE ENERGY SECTOR COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL CONCERNING THE EURO-MEDITERRANEAN PARTNERSHIP IN THE ENERGY SECTOR 1. GENERAL BACKGROUND 1. The Euro-Mediterranean Conference in Barcelona on 27 and 28 November 1995 marked the start of a new partnership to establish a haven of peace and stability and an economic area based on free trade and closer economic and financial cooperation. The political, economic and social principles which will guide relations between the European Union and its Mediterranean partners are set out in the Barcelona Declaration adopted at the Conference. (1) In this general context, the objectives set for this economic and financial partnership were: to accelerate the pace of sustainable socio-economic development; to improve the living conditions of the populations, increase the employment level and reduce the development gap in the Mediterranean region; to encourage regional cooperation and integration. 2. The pivotal role played by the energy sector was acknowledged. It was therefore decided to strengthen cooperation and intensify the dialogue in the field of energy policies and to help to create the appropriate framework conditions for investments and the activities of energy companies. This general framework must meet the mutual interests of all the parties The cooperation in the energy field must, therefore, fit into this framework although, in itself, it meets these mutual interests in that, by contributing to the Community's security of supply and to meeting the Mediterranean partners' socio economic development needs, it is in the interest of the entire region; in particular, it encourages investment in measures to manage energy consumption and production and contributes to sustainable development since energy has a decisive influence on the fundamental parameters for economic and social cohesion, namely economic activity, the environment and the standard of living. But these mutual interests in the energy field extend beyond the strictly Mediterranean region. In particular, this region is an important transit route for energy products and, as such, also contributes to the Community's security of in Algeria, Cypms, Egypt, Israel, Jordan, Lebanon, Malta, Morocco, Palestinian Authority, Syria, Tunisia and Turkey. 4 4L mÊÊiÊÊmmmÈÉiÈm supply. Consequently, the political, economic and social stability of this region is also essential to safeguard this transit route. One consequence of this strategic function is that cooperation with the Mediterranean countries in the energy field will not be possible without also taking account of the interests of the regions beyond and of the cooperation with these regions which could be affected or, in any event, concerned by the cooperation with the Mediterranean countries. These include the Gulf countries and the Black Sea and Caspian Sea countries. As the Community is heavily committed to a policy of cooperation with the countries and organizations in these regions, it will have to ensure balanced development of this cooperation and keep each of the parties satisfactorily informed. Parallel to the Barcelona Conference, a Euro-Mediterranean Civil Forum was also held. This event demonstrated, once again, the close link between energy issues and their impact on economic and social development in the countries concerned. This same commitment on the part of the civil sector to the Euro-Mediterranean partnership was expressed at the Conference on the importance of energy for social development, held in Madrid on 22-23 February 1996 by the International Federation of Trade Unions of Workers in the Chemical, Energy, Mining and Miscellaneous Industries, i. e. the Euro-Mediterranean trade unions. The efforts to develop a consistent policy on energy cooperation with the Mediterranean countries must also fit in with the energy policy established for the Community, as outlined in the Commission White Paper,(2) based on common objectives and mobilizing all the Community instruments: The Community's energy policy, based on integration of the energy markets and of the infrastructure for transporting energy products, must provide consumers with greater security of supply in the Community, by stepping up the cooperation with the supplier countries, and at the same time support energy companies in the Union in their strategy on investment and transfer of technologies in the countries in the region. The measures taken to implement the energy policy must mobilize all the Community instruments, particularly those for economic cooperation, research and development policy and the financial instruments for general or regional purposes. (2) Communication of 14 December 1995 from the Commission on an energy policy for the European Union (COM(95) 682). 2. 6. 7. 8. THE ENERGY CONTEXT The distinctive features of the energy context in the region are its substantial energy resources, in the form of the oil and gas fields closest to the Community market apart from the North Sea resources, plus the potential increase in energy consumption, which poses both economic and environmental challenges. (3) (i) Energy potential in the region The region's reserves are amongst the largest in the world, but it has not been possible to harness them fully, principally due to the economic and political context in the producing countries in the region. Euro-Mediterranean cooperation in the energy sector is designed to create the conditions to remedy this. Crude oil reserves in the region were estimated at 6 030 million tonnes in 1993; Algeria, Egypt, Syria and Tunisia are the Euro-Mediterranean partners concerned; Libya alone holds 50% of the reserves. The proven natural gas reserves are of the same order of magnitude at 5 650 billion m3 (5 085 million toe). They are located in the same regions as the oil reserves. Algeria is the leading natural gas producer with 64% of the reserves, followed by Libya, Egypt, Syria and Tunisia. According to some experts, the undiscovered reserves could total over 3. 300 million tonnes of oil and condensates and 3 400 billion m3 of natural gas. A big effort could therefore be made on oil and gas prospecting. The existing infrastructure has the capacity for annual exports of 162 million tonnes of oil and 37 billion m3 of natural gas. A substantial proportion of Algeria's natural gas exports to the European Community take the form of LNG. The principal destination takes 92 million tonnes of oil and oil products and 35 billion m3 of natural gas. the European Union market, which is The Mediterranean oil producers supply approximately a quarter of the European Union's requirements. As the oil pipelines are developed, they will also become an important transit route. As for natural gas, the European Community imports 10% of its requirements from the Mediterranean partners, principally Algeria, which also supplies almost all the LNG imported into the Community. Despite the gas transmission infrastructure developed within the Community, the Community will become more dependent on outside gas supplies as consumption grows. Consequently, with the development of link-ups (3) Taken partly from the Commission staff working papes entitled "European Energy to 2020: A Scenario Approach", December 1995 (SEC(95)2283), within the Community, production from the Mediterranean countries must improve security of supply within the Community. The wide disparities in energy resources between the Mediterranean partners should lead to link-ups for gas, oil and electricity transmission. 9. The Cairo Conference in September 1995 estimated the investment needed in energy production, transmission and distribution infrastructure over the next 25 years at ECU 192 300 million. This would be equivalent to 12% of the Mediterranean partners' GDP over the same period. The availability of fossil fuel resources in this region must not overshadow the potential offered by renewable energy sources. In the Southern and Eastern Mediterranean countries renewable energy sources account for 9. 5% of the primary energy balance. Solar energy and wind power offer the greatest potential. Biomass also shows considerable potential, but it is difficult to estimate. (ii) Demand growth prospects 10. Population growth prospects are high in the Mediterranean partners' societies, although they differ from one country to another: by 2020 the population is expected to grow from 200 million today to 340 million. This population will be concentrated principally in urban areas, leading to serious environmental problems: waste, air pollution, lack of drinking water, etc. In response, the countries primarily concerned should create 2. 4 million jobs every year for the next 15 years, whereas at the moment they are creating just 1. 7 million, without taking account of the increasing number of female workers entering the labour market. This demographic situation alone will affect consumption growth and, consequently, the environmental risks. 11. (a) In most of the Mediterranean partners, per capita energy consumption is extremely low (0. 9 toe compared with 3. 0 in the Northern Mediterranean Community Member States). Levels such as this are incompatible with the economic development which the Euro-Mediterranean partnership wishes to promote. On current trends, demand for energy, particularly for transport and electricity generation, could rise from 155 million toe in 1992 to around 458 million toe by 2020. This could imply strong growth in oil production in order to finance economic development. Demand for electricity could rise by 5% per year over the same period (compared with just 1% in the Community) to 920 TWh by 2020 compared with 194 TWh today. However, allowing for the population growth, per capita consumption is likely to remain relatively low (2650 kWh) compared with the current level in the Community (6000 kWh). 12. (b) This growing energy consumption immediately gives cause for concern about the environmental risks which, in the Mediterranean region, include the added risk of pollution of a virtually landlocked sea which, above all, is shared by all the countries in this partnership. Ë2jàb» In a "business as usual" scenario C02 emissions in the Community are expected to rise from 3150 million tonnes in 1990 to 3721 million tonnes in 2020, i. e. by around 18%. (4) In the Mediterranean partners, they could triple from 287 million tonnes in 1990 to 929 million tonnes in 2020. As a transit route for energy products, particularly for tankers, with big cities and industrial complexes developing along its coasts, the Mediterranean region is particularly exposed to the risk of pollution caused by the transport and use of energy products. Every year oil tankers spill 650 000 tonnes of oil into the Mediterranean Sea. The rivers too are highly contaminated and the principal deltas are fragile. The Mediterranean partners suffer the biggest water shortages in the world: 60% of their renewable aquifers are overexploited and on course to run dry in the medium term. Besides drastic environmental measures to protect fresh water, energy is the only answer to the need for desalination of sea water. The growing consumption cannot be satisfied by fossil fuels alone. In the Mediterranean countries renewable energy sources will also contribute to solving this problem and, more generally, the environmental protection problems created by energy production and consumption. 3. ACTION PROGRAMME 13. Given the strategic importance of the energy sector and the pivotal function of cooperation in this field, the Barcelona Conference was preceded by a series of preparatory events to mobilize the Community institutions, industry and Mediterranean partners: At the Council meeting on energy on 1 June 1995, the Presidency asked the Commission to "assign appropriate financial resources to the objectives identified, within the framework of the financial resources to be allocated W C02 emissions are covered by the Convention on Climate Change, which was ratified in December 1993. An international protocol is being prepared with a view to further reductions beyond the year 2000. The Community in turn has adopted a strategy to stabilize emissions at 1990 levels by 2000 by the European Community to its framework programme for partnership with the countries of the Southern and Eastern Mediterranean. " At a meeting in Athens on 6 and 7 July 1995, the European Commission and the Mediterranean partners concluded that it was necessary to define a Euro-Mediterranean action plan in the energy sector and to establish a forum to monitor it. At their meeting with the Economic and Social Committee of the European Communities on 19 October 1995, the representatives of the Southern and Eastern Mediterranean states recommended that the energy sector should be one of the specific fields for Euro-Mediterranean cooperation. At a meeting in Madrid on 20 November 1995, the energy ministers from Spain, France and Italy and representatives of the Mediterranean partners, of certain European Union Member States and of the European Commission declared that in order to promote energy projects, appropriate instruments should be introduced. The introduction of a specific chapter on energy in the MEDA Programme would demonstrate the importance which Europe attaches to the energy sector in the Mediterranean region. 14. In this context, the SYNERGY programme has allowed a start to be made on pilot cooperation projects over the last three years. Some of these lay the foundation for the general action to be taken on energy in the Euro-Mediterranean partnership: The action plan on energy and the urban environment in the Mediterranean region which emerged from the Athens Conference in November 1993 established cooperation with Southern Mediterranean cities on energy management and environmental protection. The Palestinian Energy Centre set up on 28 December 1993 by decision of President Arafat has been receiving financial support and technical assistance since then under the SYNERGY programme. The Palestinian Energy Centre assists the Palestinian Authority on energy and environmental issues, particularly on drafting a legal framework, planning, coordination and monitoring of projects. The Tunis Conference in March 1995 brought together representatives of the non-European Union Mediterranean countries to evaluate the energy situation in the region and suggest subjects and priorities for regional cooperation. The Cairo Conference held in September 1995, in conjunction with the World Bank and the Mediterranean Energy Observatory, raised the jFIÊt problem of funding energy projects in the region and proposed greater mobilization of savings to this end. 15. The JOULE-THERMIE programme has also allowed closer industrial cooperation with the Mediterranean partners, in most cases with local support: the Madrid (1995) and Athens (1996) Conferences on renewable energy sources in this region, funded by the THERMIE programme, made recommendations on faster dissemination of renewable energy sources. 3. 1 Fields of cooperation 16. The economic partnership objectives set by the Barcelona Declaration adopted at the Conference provide for participation in: assisting with the economic transition (establishment of a free trade area, encouragement of the private sector and of private investment by Europe and upgrading of economic infrastructure); helping to achieve a better socio-economic balance (by improving social services, promoting harmonious, integrated rural development and environmental protection); supporting regional and transfrontier cooperation. 17. These three objectives call for closer cooperation in the following fields: (i) On energy policy, with a view in particular: to establish a regional forum for developing consistent energy policies. To this end, more regular meetings must be organized between institutions and experts from the European Union and the Mediterranean partners, within a more structured framework; to develop energy planning the highly complementary nature of the Northern and Southern Mediterranean markets and supply networks; tools based on to increase trade in energy products. An appropriate legal framework should be devised to encourage and promote regional and transregional trade; to provide greater security for private investment in energy resources and networks to create a climate conducive to removing the obstacles to investment, in order to stimulate private investment and to modernize and restructure the industry and the existing infrastructure and to promote renewable energy sources under satisfactory economic conditions; jointly to combat the greenhouse effect and climate change by stabilizing emissions at regional level. 18. (ii) On infrastructure and networks, with a view, in particular, to developing and linking up the energy networks in the various regions around the Mediterranean. 19. The action being taken by the Community on major gas and electricity transmission infrastructure, after identifying projects of common interest, must in turn make investments in the Mediterranean partners more secure, from the economic point of view. Not only do gas supplies depend on the availability of transmission networks in these countries, but also the efficiency of the electricity grids in the Mediterranean region depends on good interconnection and, in the long term, the establishment of a network around the Mediterranean allowing good use of generating capacity. Once such link-ups have been recognized as in the Community's common interest, they can be eligible for the Community funding provided for by the Regulation on financial aid in the field of trans-European networks, particularly in the form of joint funding for feasibility studies on energy projects. (5) Based on the decision expected from Parliament and the Council on the Community guidelines on trans-European energy networks, the Commission will propose to the Council that the 12 partners participating in the Barcelona Conference recognize these projects as in their mutual interest, within the framework of the partnership agreements. In general, it is important to coordinate the Euro-Mediterranean activities and the assistance instruments already established by the TACIS programme for the Central Asian countries. The Community has identified a series of trans-European energy network projects which it considers to be of common interest/6* 20. Several of the projects of common interest identified concern the Mediterranean region and are designed to establish or upgrade the electricity and gas interconnections between the European Union and the Mediterranean partners, namely: electricity networks: Spain-Morocco; Greece-Turkey; (5) (6) Council Regulation (EC) No 2236/95 of 18 September 1995 (OJ No L 228, 23. 9. 1995). Council common position of 29 June 1995 and European Parliament opinion of 26 October 1995 at second reading on the proposal for a European Parliament and Council Decision laying down a series of guidelines on trans-European energy networks (COM(93)685). 8 gas networks: A l g e r i a - S p a i n - P o r t u g a l - F r a n c c; Algeria-Tunisia-Italy. Depending on energy demand trends in the Union and its Mediterranean partners and on the pace of development and location of natural gas and electricity production, other projects concerning the Mediterranean region could be ready within the next few years(7): electricity networks: Italy-Tunisia; Morocco-Algeria-Tunisia; Turkey-Syria; gas networks: upgrading of existing gas pipelines; gas pipeline from the Libyan gasfields; gas transmission pipeline from Central Asia/Iran via Turkey. 21. The Mediterranean countries have also started a number of projects which will improve gas and electricity supplies: electricity networks: Morocco-Algeria-Tunisia-Libya; Libya- Egypt; Egypt-Jordan; Jordan-Syria-Turkey; Egypt-Israel -Palesti ni an Authority-Jordan. gas networks: Morocco, Algeria, Egypt-neighbouring countries. The networks connecting the Member States and the partner countries will have to satisfy the existing Community standards on environmental impact assessments. A similar approach is also recommended for projects confined to the partner countries alone. 22. (iii) On industrial cooperation and RTD with a view, in particular, to promoting RTD and investment with the aid of partnerships on renewable energy sources and energy efficiency, water treatment and management, oil prospecting, production, refining and distribution, and electricity generation, transmission and distribution: the funding required to develop electricity capacity is one of the most important aspects of cooperation between the two regions, particularly in view of the need for technology transfers, notably (7) Iran and Libya do not benefit from any Community financing neither can be eligible under the MEDA programme. for environmentally sustainable use of coal and to reinforce production and transmission infrastructure; closer cooperation on energy RTD is one of the key areas for scientific and technical cooperation with the Mediterranean countries and, hence, is being examined carefully by the Monitoring Committee set up to reinforce the Mediterranean partnership policy in the research field. At its meeting on research on 25 March 1996 the Council stressed the importance of this policy and, in this context, of the role of the Monitoring Committee. Energy RTD can be undertaken under existing programmes such as JOULE-THERMIE (non-nuclear energy) and INCO (cooperation with non-member countries). The THERMIE programme, in particular, provides a means of disseminating technologies, on the initiative of bodies or industries in the Member States or associated States; in the field of standardization should facilitate cooperation investment in link-ups and, as in the Community, in renewable energy sources. In 1990, with the support of the European Community, the European Committee for Standardization (CEN) established a unit with the dual role of supplying third countries with the information which they need on European standardization and providing support on standardization to the countries which wish it. Tunisia, Malta and Israel have already availed themselves of the services of this unit. At the same time as encouraging standardization work on energy efficiency and renewable sources to implement the White Paper on energy policy, the Commission will examine ways of extending the unit's activities to these two fields as well. 3. 2 Security of investment 23. 24. Given the microeconomic and macroeconomic constraints on undertakings and on the Southern and Eastern Mediterranean States, increasingly the funding requirements will have to be covered by calling on private investment. This presupposes projects profitable enough to attract local or international private investors on the one hand and a general framework providing sufficient protection against the risks on the other. Energy-related investments are often strategic and determine economic and social development, particularly if they are intended to meet local requirements. It is therefore necessary to create a favourable environment in order to promote such investment by starting or continuing reforms of the Mediterranean partners' energy industries. This should improve operation of the markets and provide the possibility to generate investment capacity in the long term. However, most of these countries find it difficult to satisfy this trend and numerous disparities 10 mmmmmmmmmm remain between them. This calls for a specific approach, drawing on various instruments and different from those followed in other parts of the world. 25. The major obstacles militating against funding energy projects in this region are generally considered to be: the absence of a sufficiently detailed institutional framework; the political risks; the exchange rate risks; the difficulty of drawing on local savings; the complexity of organizing projects. 26. Today's arrangements on technical cooperation, exchanges of know-how and supply agreements between the leading undertakings from the Mediterranean partners raise numerous difficulties for operating in a climate of true cooperation and joint investment. Uniform regulatory and contractual conditions must therefore be defined firms. The Mediterranean partners must not only open up their markets but also adopt rules which are as uniform as possible so that undertakings do not have to adapt to different regulatory frameworks in each country. to encourage investments by foreign (i) European Energy Charter 27. Association of Mediterranean countries with the Treaty on the European Energy Charter is mentioned in the work programme adopted at the Barcelona Conference as one of the means of creating appropriate conditions for investment in and activities by energy companies. The objective of the Charter Treaty is to promote access to resources, trade and investment in the energy sector. It contributes to security of production and supply and pays particular attention to environmental protection, notably in the form of the Protocol on energy efficiency. For private investors, the Treaty offers a stable, non-discriminatory legal framework removing the obstacles to investment, facilitating negotiations and opening up new prospects. Certainty that the signatory countries will honour their commitments to foreign investors is provided in the form of acceptance of international arbitration in the event of any dispute. This will make the energy industries more competitive in attracting investment. 28. Consequently, the Charter would provide a satisfactory response to any investment risks. However, the Commission considers that certain precautions must be taken before proposing that the Mediterranean partners which have not yet signed the Treaty do so:(8) (K) Cyprus, Malta and Turkey are the Mediterranean partners which have signed the Charter Treaty the Charter Treaty was designed for a specifically pan-European situation, tailored to the eastern European countries' economies in transition and to the role played by most Central and Eastern European countries as transit routes for gas and oil on its way to the consumer countries. However, most of the Mediterranean partners are not yet in the situation of energy interdependence found in Europe; transit of energy products was one of the key issues dealt with carefully during the negotiations on the Charter Treaty and is one of the fundamental components of the Treaty. But in the Mediterranean region this transit role is limited by the underdevelopment of the networks; the Treaty was negotiated in response to the lack of a framework for the Association cooperation and of rules on trade and establishment; Agreements which the in Euro-Mediterranean region will answer this concern; moreover, some of the Mediterranean partners are participating in the World Trade Organization/9* Under these circumstances, their accession to the Charter Treaty would make little difference to the existing legal environment. the Community concluding is 29. Despite this, it nevertheless seems less efficient to add more frameworks for cooperation, all the more so bearing in mind that some of the Mediterranean partners have signed the Charter Treaty. However, enlargement of the Charter Conference would be sure to affect the efficiency of this body, which started operation this year. For this reason, the Community should opt instead for a gradual approach using the flexibility allowed by the Treaty to start with observer status and then progress to associated membership and, finally, full membership. Observer status makes it possible, for example, to keep oil and natural gas exporting countries fully informed of the content of the agreements negotiated between the signatories on the subjects of importance to them. Non-signatories can also participate actively in the meetings of the Conference and its subsidiary bodies as non-voting observers, on payment of a contribution. the countries and international Associated member status allows organizations concerned to participate and implement certain provisions of the Treaty, after negotiating with the Charter Conference the extent and degree to which they wish to participate. As with observer status, the Treaty contains no provisions which explicitly place an obligation on the associated countries to sign the Charter. The content of the Association Algeria, Morocco and Tunisia have been invited to sit in as observers on all the work of the Conference. Cyprus, Israel, Malta, Morocco, Tunisia and Turkey. (9) 12 Agreement should be defined during the negotiations and approved unanimously by the Conference. By contrast, signature of the Charter is a prerequisite before accession to the Treaty. The conditions for accession must be approved unanimously. 30 The Commission should therefore support consultations with the Mediterranean partners on their eventual participation in the work of the Charter Conference if they are not yet members thereof This move should be prepared with all concerned, primarily with the members of the Charter Conference. In due course, the experience built up with implementation of the Charter and of the associated Treaty and the analyses by the Mediterranean countries of the characteristics of the Charter and of the means used in it to attain the objectives could prompt these countries to join as associated members or full members, depending on their individual interests. The Mediterranean partners' attitude on accession to the Treaty depends, primarily, on their choice. They will not be able to make this until they know the benefits which the Charter can bring them. Together with the Charter Secretariat, the Commission will organize a briefing session for the Mediterranean partners and industrial circles concerned. (ii) Analysis of potential options to facilitate investment 31. Clearly, establishment of a stable legal environment encouraging market forces must be a priority in order to encourage investment growth. However, certain partners' economic and political situation offers no prospect of rapid, substantial progress on this point in the short term. The Commission will study the options already available or which should be developed to facilitate investment in the Mediterranean partners. This study will include an assessment of the risks and uncertainties which limit investment at the moment, the financing methods available and ways of providing better cover for investment risks. It should identify the best means of safeguarding this type of investment specifically in the energy sector while meeting the objectives of the Euro-Mediterranean cooperation. 3. 3 Organization of the cooperation 32. The Euro-Mediterranean cooperation must be organized securely and efficiently so that common interests can be taken into account. The foundation must be laid for transfers of experience and know-how and dialogue between the Community and the Mediterranean partners on issues concerning energy policy and strategy, energy prices, training, project binding, the institutional framework and management of the action plans, and environmental protection. i3 Two instruments will be set up to organize and monitor the cooperation: Euro-Mediterranean Energy Forum and financial resources. the (i) Euro-Mediterranean Energy Forum 33. At their meeting in Athens on 6 and 7 July 1995 the participants accepted the principle of setting up a Forum for Euro-Mediterranean energy cooperation. This would have two principal objectives: to structure the cooperation between the European Community and the Mediterranean partners by promoting inter-administration networks on the one hand and data interchange and dialogue with the industry on the other, taking due account of the interrelation between energy and the environment with a view to sustainable development; to develop the transparent mechanisms necessary for the projects envisaged. 34. Establishment of such a Forum is warranted by the fact that the framework created by the Barcelona Conference does not provide with a structure specifically for energy-related issues (transfer of know-how, exchanges of information, better use of oil, gas and coal, development of energy networks, improvements in energy efficiency, promotion of renewable energy sources and environmental protection). Without calling into question the general cooperation arrangements made by the Barcelona Conference or the bilateral agreements, the administrations concerned must be given a means of meeting and developing joint strategies or cooperation projects under the responsibility of the Ministerial Conference. (a) Composition and operation of the Forum 35. The Forum is a body for political dialogue with the energy authorities at ministerial and/or administration level from the various partners in the Euro- Its efficiency will depend on its membership, Mediterranean cooperation. consisting of representatives of the participating States who will then be responsible, in turn, for implementing the cooperation measures in their own countries and promoting projects of common interest between them. The Forum must operate in accordance with the guidelines issued by the Euro-Mediterranean Ministerial Conference. The Ministerial Conference provided for by the Barcelona Conference for monitoring Euro-Mediterranean cooperation must coordinate the activities of the Forum with the other bodies set up for cooperation at Euro-Mediterranean level and its powers must fit in with those conferred on the Euro-Mediterranean Monitoring Committee for RTD. 36. The Commission is willing to provide every possible assistance for effective operation of this Forum. However, it considers that in any partnership all the partners must take their share of the responsibility and, accordingly, will make 14 €£MJÊ& arrangements with its partners for them to participate in the Forum on acceptable terms. 37. Since the energy cooperation must involve circles outside the Forum, whether financial institutions, undertakings or trade unions, the Forum's rules of procedure will have to allow these outside partners to voice their views. The Commission in turn will support all appropriate initiatives to facilitate collaboration by industry and the trade unions from the north and south of the Mediterranean in the Forum's work. (b) Tasks of the Forum 38. The Forum's first task will be to provide all parties concerned with a permanent framework for dialogue and exchanges of information. In this respect, it will have an important role to play in ensuring better mutual understanding. But the Forum must also add a regional cooperation dimension to project development by introducing a "Euro-Mediterranean interest" label for projects contributing to this cooperation. The Forum could award this label on the basis of criteria yet to be decided. These would give priority to projects submitted jointly by at least two countries. Such a label would allow easier access to Community funding for these projects, while complying with the financial and the selection regulations. Finally, the Forum will have to draw up and publish a five-year action plan. This action plan will be approved by every member of the Forum. Every two years the Forum will draw up and publish an appraisal of implementation of the action plan over the two previous years. (ii) Financial resources 39. Euro-Mediterranean cooperation in the energy sector must fit in with the existing financing arrangements. However, in order to make better use of the limited resources available, the Community needs to develop a flexible political and economic cooperation strategy in an attempt to make the Community's interests compatible with the interests of its Mediterranean partners. It is therefore essential to find appropriate financial mechanisms to attain the energy objectives of the partnership and to contribute towards attaining its general objectives. (a) Financial and technical support measures (MEDÂ) 40. On several occasions during the preparatory process for the Euro-Mediterranean partnership, it was proposed that financial resources should be made available: 15 at the Council meeting on energy on 1 June 1995 the Presidency asked the Commission to "assign appropriate financial resources to the objectives identified, within the framework of the financial resources to be allocated by the European Community to its framework programme for partnership with the countries of the Southern and Eastern Mediterranean"; at a meeting in Madrid on 20 November 1995, the Energy Ministers from Spain, France and Italy and representatives of the Mediterranean partners, of the European Union Member States and of the European Commission declared that in order to promote energy projects, appropriate instruments should be introduced. The introduction of a specific chapter on energy in MEDA would demonstrate the importance which Europe attaches to the energy sector in the Mediterranean region. MEDA is designed to support the Mediterranean partners' efforts to improve their social and economic structures and to soften the potential social and environmental impact of economic development. 41. In accordance with the objectives and procedures for MEDA, the Commission will facilitate measures to coordinate and deal with energy projects. In consultation with the Mediterranean partners, it will lay down the specific objectives of cooperation in this field and define the project selection criteria. It will take account of the Forum's role in defining the broad lines of action, while maintaining the specific procedures laid down in the MEDA Regulation. Consequently, the justification for such an approach in MEDA will depend on demonstrating the importance of these countries for the European Union from the energy point of view and the energy challenges created by the population problems. 42. Without calling into question the bilateral nature of a large part of MEDA, such an integrated approach would create the synergies needed between the various bilateral types of cooperation. In this way, MEDA will develop energy measures going beyond simply attaining the energy policy objectives described in point 3. 1 and also contributing to other more general objectives such as environmental protection, political stability, social integration, peace and prosperity. (b) Fourth framework RTD programme 43. The participants at the Barcelona Conference wished to promote research and development and tackle the problem of the widening gap in scientific performance, taking account of the principle of mutual benefit. To this end, the cooperation will focus particularly on: stepping up the Mediterranean countries' own research capacity and helping to train scientific and technical staff by increasing participation in joint research projects; 16 participation by qualified research institutes and higher education establishments in the European and Mediterranean countries in joint research projects based on the creation of scientific networks on clearly defined subjects. 44. Against this background, it must be added that a large number of the specific programmes under the Community's fourth framework research and technological development programme, particularly the programmes on the environment and technology, health and society, renewable resources, urban development, information technologies and communications technologies, allow scientific and technological research institutions from the Mediterranean partners to participate on a case by case basis, without any financial contribution from the specific programmes concerned. 45. The twelve Mediterranean partners can participate in the specific programme on non-nuclear energy and in the INCO programme, within the limits laid down by the programmes. research bodies from these countries can be associated with the projects submitted by European undertakings in the JOULE programme, without any financial contribution from the programme. This programme is thus an instrument for implementing projects of Euro-Mediterranean interest, such as the INTERSUMED project bringing together energy companies from throughout the Mediterranean region to integrate renewable energy sources in the electricity system (joint JOULE-INCO project); under the THERMIE programme, dissemination schemes, measures to promote small firms and concerted action can accompany projects on new energy technologies to demonstrate their industrial viability at the technological feasibility stage (excluding all commercial considerations). These activities could be carried out in these countries without them being entitled to participate; joint scientific and technical research projects and support measures on the use of renewable energy sources, particularly sustainable management of natural resources, can be funded by the INCO-DC program m e. (10) This has earmarked ECU 3 million of which ECU 1. 34 million will be for funding non-Union countries under the JOULE programme; non-nuclear energy, to research on the energy and technology prospects in the Mediterranean region, particularly analyses of the economic, financial and environmental impact of energy choices, can also be undertaken in these programmes (10) Part of the INCO programme intended for the developing countries. 17 (c) SYNERGY programme 46. The SYNERGY programme must provide a means of putting the various cooperation activities in a consistent framework, by helping the countries concerned to define a comprehensive energy policy. In the process, the programme must support the preparatory stages for defining projects for submission for MEDA funding and encourage the partners to start activities. The SYNERGY programme could also provide support for operation of the Forum in addition to the support from MEDA. The division of labour between the two programmes must yet be decided. 47. SYNERGY has already funded training, planning and assistance activities with the Mediterranean partners and has been allocated ECU 9 million for 1996, of which one third should go towards funding activities with the Mediterranean partners If the Council were to adopt the SYNERGY programme, cooperation with these countries will be able to continue on a multi-annual basis, involving all the Member States in the activities. 4. CONCLUSIONS 48. On the basis of the areas of cooperation in the energy field emerging from the Barcelona Conference, the lines along which the Commission intends to work are: establishment of a Euro-Mediterranean Energy Forum allowing joint management of the energy cooperation, by establishing a framework for meetings and exchanges of information between the partners; initiation of consultations with the Mediterranean partners on their eventual participation in the work of the European Energy Charter Conference, if they are not already members; study on the options available or which should be developed to facilitate investment. The Commission will submit a report containing the appropriate proposals to the European Parliament and the Council in one year; cooperation with the partnership the countries concerned, under agreements, on the implementation of projects of common interest in the field of trans-European networks, taking account of the measures to combat climate change; facilitation of measures to coordinate and deal with energy projects, in accordance with the objectives and procedures for MEDA. 18 ISSN 0254-1475 COM(96) 149 final DOCUMENTS EN 12 11 Catalogue number : CB-CO-96-165-EN-C ISBN 92-78-02590-9 Office for Official Publications of the European Communities L-2985 Luxembourg

WORKING DOCUMENT OF THE COMMISSION on Report on the Situation of Oil Supply, Refining and Markets in the European Community

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 03. 04. 1996 COM(96) 143 final WORKING DOCUMENT OF THE COMMISSION on Report on the Situation of Oil Supply, Refining and Markets in the European Community - 1 Report on the Situation of OU Supply. Refining and Markets in the European Community (Working Document of the Commission) CONTENTS REPORT ANNEXES: B B. l B. 2 B. 3 C C. l C. 2 C. 3 D D. l D. 2 D. 3 D. 4 E E. l E. 2 E. 3 F F. l F. 2 F. 3 F. 4 General Economic Context Crude Oil Supply Global Energy Reserves Global Oil Supply European Union Crude Oil Supply Oil Product Demand and Supply Global Context European Union Oil Product Demand European Union Oil Product Supply Environment Political and Economic Context Current and Proposed Measures Implications for Downstream Economics and Decision-Making Environmental Outlook Oil Refining Refinery Numbers, Capacity and Utilisation Refining Margins and Profitability Refining Outlook Oil Product Marketing Marketing Sub-Sector Definition Retail Statistics Retail Market Shares and Profitability Harmonisation Questions Glossary of Terms Charts and Tables - 2 Report on the Situation of Oil Supply, Refining and Markets in the European Community (Working Document of the Commission) CONTENTS REPORT Background to the Report The Oil Industry Refining Profitability Marketing Environmental Issues Security of Supply Internal Market Conclusions REPORT Background to the Report The European Commission has been preparing regularly Reports for the Council on the situation of oil supply, refining and markets in the European Union since the late 1970's as a result of the oil price shocks. These have covered such developments as the problems of overcapacity, changes in demand structure and stricter environmental requirements. The last such Report was prepared in 1992 following the Gulf Crisis, in the form of a Communication to the Council [COM (92) 152]. The Council adopted a number of conclusions in response to the paper on 30 November 1992 which have influenced the work of the Commission. The strategic importance of a competitive refining industry to the stability of the product markets and Community supply security was acknowledged. The importance of the environment was stressed and close consultation with industry was recommended on possible environmental measures and the costs to producers and consumers thereof Since then the Auto Oil Programme, which represents a new form of in depth cooperation between the Commission and industry has been started. The first proposals concerning both fuel specifications (gasoline and diesel) and motor vehicle emission standards resulting from this initiative are now being discussed. The review of the current restrictions on the use of fuel oil in power generation (Directive 75/405/CE), which has resulted in the proposal in the White Paper - An Energy Policy for the European Union [COM (95) 682] to withdraw the Directive, was another of the Council recommendations. Support for the Producer Consumer Dialogue was stressed, and the Commission has remained active in this, and indeed co sponsored the International Energy Conference in Puerto La Cruz, Venezuela in September 1995 which brought together Ministers from producer and consumer countries to discuss energy issues in which they share a common interest. The Council reaffirmed the need for the Commission to continue to undertake these regular reviews and noted the importance of them to the Community when discussing energy policy. The present Report is based on the mandate in the Council Conclusions 10369/92 of 30 November 1992 in which the Commission, 'is encouraged to regularly analyse the situation in the oil markets and in the refining sector in the Community and in which the Commission is asked to, 'carry out in depth consultations with the oil industry prior to the introduction of environmental protection measures, particularly with a view to the influence of these on the cost for producers and consumers of such measures'. The Report has been prepared taking into account developments which have taken place in the sector since 1992, and the recent White Paper on Energy Policy which develops an approach based on three main pillars of energy policy for the Community, namely competitiveness, the environment and security of supply, which are all relevant for this sector. 5 6 7 8 9 The objective of the Report, is therefore to identify and explore the key issues concerning the sector (oil supply, refining, and marketing) notably refining industry performance, the environment, security of supply and the Internal Market and where appropriate comment on the implications for the Community. The Report is the product of extensive analysis of the sector which has been undertaken following lengthy consultations with individual oil companies, industry associations and input from national administrations. The principal points and conclusions to emerge from that analysis are presented here covering the major issues and conclusions and in a series of annexes which deal with the issues in more depth within the overall general economic context. The Oil Industry Oil is by fer the largest component of gross energy consumption in the Community. Consumption in quantitative terms is expected to increase over the next 25 years despite a marginal decline in its percentage share from 42% to between 36% and 38%. These figures are taken from the 2020 Study prepared as part of the White Paper on Energy Policy; discussions on how these can be reconciled with the Community's international obligations with regard to greenhouse gas emissions will take place in more specific fora dedicated to this issue. The Community is the largest world net importer of crude oil Its total product imports and exports are approximately equal and it is characterised by its open trade policy. The Oil sector represents a major partner in the Community economy. Accordingly, the successful performance of its different segments (notably Refining and Marketing) has been and will continue to be of strategic importance for the Community in the field of energy, and both economically and socially. The sector is currently going through a period of change with the possibility of new alliances and joint ventures as enterprises adapt to changing trading conditions in the Community and new market opportunities, particularly in Asia. The Report concentrates mainly on downstream Refining and Marketing in the Community. These two activities have been considered as broadly separate although the proximity of individual refineries to particular markets, which reflects the importance of distribution costs, is also a factor. Oil companies are often vertically integrated, from Exploration and Production (Upstream) to Refining and Marketing (Downstream), and in some cases have large Chemicals activities as well ITie financial performance of the integrated whole is often considered to be a measurement of the health or profitability of the industry and some recent consolidated profit announcements have been good. However, it is important to consider each activity separately as there are opportunities to participate in only one part of the chain, for instance exploration companies, refining companies and marketing companies. These compete within particular sectors hence each individual activity has to be considered on a stand alone basis. 10 The refining sector has consistently provided the Community with secure supplies of oil products, such as transport and heating fuels, at competitive prices whilst at the same time improving its environmental performance. However, the Report reveals some trends in refining profitability which might impact negatively on industry's capacity to continue this role which requires ongoing investment, given that increasingly there are opportunities outside the Community which may prove to be more attractive as investments than those within the Community. Refining Profitability 11 The refining sector has suffered from poor profitability for some time. Margins on the most basic of the refining processes, the initial processing by distillation, are currently virtually nil whilst the margins achieved on upgrading processes which improve the intermediate products, such as catalytic reforming and cracking, remain too low. Individual refineries may be able to cover operating costs, but to sustain industrial development in the sector it is not sufficient to merely cover cash costs. 12 The three principal elements of the problem are outlined below. On the refining and demand side there are two factors, that of excess refining capacity and that of the product mix, notably the relative demand for gasoline and diesel On the supply side there has been a change in the crude supply structure to Community refineries towards lighter crudes. These create their own particular problems, and when combined have also affected price differentials between products as explained below. The regulatory framework within which the industry operates has also had a crucial effect (environmental legislation, fiscal regimes on oil products). 13 Excess refining capacity takes two forms, firstly there is an excess of crude oil distillation capacity relative to the amount of crude oil processed. Secondly, there is an excess of conversion capacity which converts the low-value fuel oil produced in the crude oil distillation process to lighter higher-value products such as gasoline. 14 In this respect it is worth mentioning that the apparent contradiction of high reported utilisation rates and excess capacity can be explained by poor quality utilisation data. Percentage rates for utilisation are computed based on the initial nominal quoted capacity of a refinery, and over time the operator is often able to improve on this by making technical improvements to processing equipment as technology advances. However, these 'capacity creep' increases are not necessarily publicly available for competitive reasons and there is actually more surplus capacity than as demonstrated by the data. 15 The excess of crude oil distillation capacity as already stated is long-standing, and while the industry has made strenuous efforts over the last fifteen years to reduce it, an excess, albeit diminishing^ persists. The situation is not helped by the above 'capacity creep' increases which are also achieved in conversion plant. 16 The excess of conversion capacity has arisen because of over-investment in recent years. This has happened mainly for two reasons. First of all the change in product mix demand. A different fuel mix between diesel and gasoline from that which was actually experienced was forecast - underestimating the growth in demand for diesel and overestimating the growth in demand for gasoline (demand for the latter actually fell). 17 Secondly, on the supply side it was forecast that the crude oils available over the period would on average become heavier whereas they in fact became lighter. This in turn was the result of a lightening in the 'basket' of crude oils placed for sale by Saudi Arabia in order to maximise their oil revenues, and far better than expected production levels of North Sea crude which is generally light. This was made possible by cost reductions and technological advances in the upstream sector. Overall less rather than more conversion processing capacity has therefore been required as refining lighter crudes produces more lighter products. 18 Finally, there has also been the major impact which regulatory factors have had. There has been an increase in the cost of environmental protective measures, which is not immediately recoverable in product prices in the present market conditions. High clean up costs and the unpredictability of rates of fiscal duties have also had an impact on refining investment decisions. 19 The combination of these three elements has several consequences. In the short term there has been a 'mismatch' between refining capacity and product demand which has led to reduced differentials between light and heavy products which have led in turn to poor returns on investment. Refiners are reluctant to close refineries given the high clean-up and social costs. Instead, they are tempted to adopt a "wait and see' approach as long as operations are cash positive or to try to sell refineries, even at very low prices, rather than close them. 20 The tendency for producer involvement downstream, which is welcomed as a demonstration of commitment to the Community market provides a pool of potential purchasers who may be governed by different strategic principles, and willing to enter the sector, particularity when refineries are available on attractive terms. There are likely to be further closures but even when refineries are closed there is no guarantee that margins will improve as the capacity may effectively be replaced by imports. Marketing 21 The situation of the marketing sector varies across the Community but overall is in substantially better condition than is refining. Structural differences of historic origin play a major role as do the different levels of upstream and downstream integration of the participants in the respective market areas. There is a general trend across the Community for the number of retail sites to decrease with a corresponding increase in average volumes sold per site. However the pace of this restructuring across individual Member States differs depending on a number of factors. 22 The advance of the hypermarkets at the expense of traditional operators in a number of Member States has also been significant. For the moment, this appears to be to the advantage of the consumer in terms of the significantly lower prices that are on offer but it is causing the traditional operators and notably the refiners to suffer a material drop in profits in those markets most effected. This in turn damages the ability of the operators to maintain capital expenditure on improving retail outlets in those markets and may lead to more retail site closures. Secondly, some operators are swapping retail outlets in order to reinforce their presence in particular areas. This often leads to a reduction in unit costs which may be shared with consumers provided there remains sufficient competition. These developments affect the overall structure of the market and accordingly the role of the traditional operator is changing. Given the scale of change and the importance of monitoring. the sector these trends both require Environmental Issues 23 There is a great deal of concern across the Community about the environment and in particular air quality. Citizens are demanding improvements and indeed specific committments in this respect were made in the Framework Convention on Climate Change. Environmental legislation, particularity with regard to the downstream sector, is complex. Environmental measures cover the operating arrangements in the refining process itself^ product specifications and emission limiting equipment in the distribution chain. However improving for instance fuel specifications is not an isolated activity and requires close cooperation with other industrial sectors. This has been the case with the Auto-Oil Programme and its search for the right balance between the most cost effective measures. 24 The Auto-Oil Programme is a tripartite initiative on air quality, emissions, fuels and engine technologies by the Commission, the Refining industry (EUROPIA) and the Motor industry (ACEA). The objective was defined as being to provide policy-makers with an objective assessment of the most cost-effective package of measures including vehicle technology, fuel quality, as well as local measures, necessary to reduce emissions from the road transport sector to a level consistent with the attainment of the new air quality standards being developed for adoption across the Community. 25 Specific measures are often introduced on a step by step basis and at any given time industry is commissioning new equipment in response to earlier legislation, planning how to meet the future targets specified in existing legislation and involved in discussions on how further improvements may be made. These measures demand heavy expenditure by the industry in refineries and in storage and distribution plant, and each new protective measure, such as a further lowering of emission levels is generally proportionally more expensive than the last as the technical challenges of even greater improvements increase correspondingly. Some estimates of the potential costs are included in Table D5 in the Annex. 26 The whole Community benefits from improved air quality and in view of the magnitude of the investments required and the long term nature of the refining industry there is an obvious need for consistent and predictable regulatory measures based on a cost effectiveness approach to ensure that these benefits can be realised. 27 Security of Supply Security of Supply remains a major issue, as outlined in the White Paper on Energy Policy, although the risk of any serious threat to the Community's security of oil supply in the short term is considered to be low. Conditions have changed substantially from the crisis/sub-crisis situations which existed some twenty years ago when crude and product supply sources and markets were much less diversified, transparent and efficient than they are today. 28 Nevertheless because the Community will continue to depend heavily on imported crude oil there is an ongoing need for vigilance in both the short and long term More than three quarters - 8 - of proven world oil reserves are located in potentially unstable areas from a political and/or economic point of view and this highlights the continuing requirement for measures, adapted where necessary to changing market circumstances, to meet the possibility of sudden supply disruptions which would be highly damaging for the world and Communiiy economies. Considering the fact that secure refined oil product supplies represent an indispensable element of the socio-economic wellbeing of our population the existence of a strong and competitive refining sector in the Community is of strategic importance. 29 Good producer-consumer relations need to continue to be developed in order to protect the current stability, and the dialogue and alignment of interests via mutual investment and operational arrangements should continue. Improvements in technology which make exploitation of new provinces possible will contribute to this and further improve the diversification of supply. Upstream investment possibilities in both OPEC and non OPEC producer countries are now beginning to open up for Community companies and producer investment in the Community downstream sector is continuing. Such moves consolidate the mutual interest that both parties have in the successful performance of the oil sector as a whole and are to be welcomed as long as they are based on market principles. Internal Market 30 The Internai Market in the Oil Sector is relatively well developed and transparent compared to other energy sectors. Many of the developments in the refining sector stem from the feet that the Internal European Market is part of the wider world market with global competition. It is clear that very little rate approximation between Member States has taken place since 1 January 1993. As outlined in the White Paper on Energy Policy this is an area where progress is difficult, given the wide range of interests and views but efforts continue in order to remove distortions. 31 Similarly in the field of product technical normalisation there still remain across the Community many instances of differing norms in essentially similar products which may not allow the full benefits of the Internal Market to be realised. Conclusions 32 A healthy oil sector underpins social and economic progress in the Community, provides the necessary security of supply at competitive prices and can support improvements in environmental protection. The security of oil supplies at reasonable prices to the Community is largely dependent on the smooth functioning and stability of the international oil market. Hence there is the need to continue to foster and develop a policy of dialogue and cooperation with the Community's main oil suppliers and competitors on the international market and to enforce and promote the Energy Charter Treaty. 33 It is of prime importance that a good climate for investment be developed. While the industry as a whole shows today a generally good financial performance mainly due to its vertical integration and diversification of activities the fact is that the Community refining sector has over the last few years experienced a period of very poor refining profitability, the reasons for which result from market circumstances as well as from regulatory factors. 34 This situation is likely to lead in the short term to a restructuring process resulting in the closure or sale of refining capacity which to a certain extent has already started. However, it is not possible to predict exactly where or when, or even how much capacity will be involved because of the wide range of factors involved across the Community. To the extent that rationalisation will occur in the sector the Commission emphasises that, as in the 1980's, individual refiners must remain responsible for taking decisions about capacity closures. These decisions should take place in the most cost effective way and satisfy the competition rules of the Treaty. The Commission will continue to monitor the situation and discuss with industry and Member States. 35 It is in the Community's long term interest to have a strong technologically advanced refining industry. It contributes to security of supply, competitiveness in general, and that of the sector itself and the petro-chemical sector phis the associated service and equipment supply industries in particular, and of course to employment in the Community. It must also be recognised that there is growing competition for investment from regions outside the Community where new markets are growing and strengthening. 36 Environmental policy and the necessary legislation required to bring about the desired improvements in air quality_will continue to impact on the sector, particularly because of the magnitude of the investments required. Its importance will continue to influence activities both in the refining and marketing areas. Measures should be coherent within a consistent and predictable framework based on a rigorous cost-effectiveness approach. 37 The Commission recognises that, although Member States have generally increased their rates of excise duty, very little rate approximation has occured. The Commission has launched a wide ranging consultation process, before considering what, if any, proposals are necessary in order to improve the functioning of the Internal Market. In addition the Commission recommends further study of possible improvements in the field of product technical normalisation. 38 The Commission will undertake regular analyses of the oil and refining and marketing industry in the Community including an improvement of the accuracy of our understanding of the refining capacity situation and utilisation rates, recognising the importance of these for the formulation of energy policy and the succesful implementation of the White Paper on Energy Policy. 10 ANNEXA General Economie Context The strong recovery in the Community economy in 1994 gave way to a marked slowing of the rate of expansion during 1995. Output growth which had reached 4% during parts of 1994 is for 1995 as a whole likely to be of the order of 2. 5%. The outlook for 1996 is now less favourable than previously anticipated and it now seems likely that growth will be below 2%. However, the main forces determining the growth outlook for the European economy are favourable to a renewed pick-up in the rate of expansion in economic activity during the year and although the average for the year is likely to be below that of 1995, the underlying trend would, in contrast, be positive. The main positive growth forces include: - the world economy outside the Community is set to expand at a healthy pace; - the fundamentals of the Community economy in terms of low inflation, moderate wage pressures and sound investment profitability are favourable; and - monetary policies have eased. Outside the Community economic activity has been expanding at a strong pace since 1992. There has been a renewed dynamism of world trade as the emerging markets in Asia and Central and Eastern Europe rapidly integrate into the world economy and the benefits of the trade liberalising measures agreed in the GATT Uruguay round begin to be felt. The rapid pace of export market growth appears to have slowed down but the outlook for the external environment remains relatively favourable. - 11 ANNEXE Crude Oil Supply B. 1 Global Energy Reserves Following the oil shocks of 1973 and 1980, long run adjustments have now been made and energy supply and demand have achieved a new balance. As a result, global energy reserves are considered adequate and are unlikely to pose a physical constraint in the medium term. Proven oil reserves are some 43 years (Chart B. l). This is certainly the lowest resources/production ratio (proven reserves to current rate of production) among the fossil fuels, although these oil reserves are equivalent in energy terms to the gas reserves (ca. 135 billion tonnes oil equivalent (btoe)). However, new discoveries and higher recovery rates from existing fields -have matched or exceeded consumption for many years - proven reserves have trebled since the mid-1960s. In geopolitical terms, it is of the utmost importance to note that 65 % of the reserves are held in the Middle East, a further 11% in Venezuela and Mexico and 6 % in the CIS (Chart B. 2). World proven reserves of solid fuels (at present rates of production) extend to over 200 years. Proven gas reserves extend to some 65 years. These have been growing recently in parallel with the big increase in demand for this fuel. 70 % of world gas reserves winch are located in the CIS or the Middle East, much of which are within range to economically supply western or central Europe. There is uncertainty about the impact of the changing shift in world demand for oil. Oil demand will grow strongly, particularly in China, India and other fast-developing Far East countries. So although there is unlikely to be a shortage of oil in the medium term, there could be growing competition from the emerging economies, particularly as both the US and Europe face increasing dependency on imported energy. B. 2 Global OU Supply From the mid-1980s, OPEC had regained some of the share lost to new non-OPEC production following the oil price shocks of the 1970s. However, in recent years, technology and cost reduction advances in oil exploration and production, notably in the North Sea region, have resulted in OPEC taking a lower than expected share of the growing demand for oil (Charts B. 3 and B. 4). Demand for oil is forecast to continue to rise, very gradually tightening the global supply/demand balance. As well as increasing the requirement for non-OPEC crudes, 12 supplies from OPEC countries are bound to increase, particularly from the high-reserve countries of the Middle East and from Venezuela. There is already available some 2-3 mb/d of spare production capacity, mainly in the Gulfj without taking into account potential Iraqi production of ca. 2 mb/d. Between 1985 and 1994, world crude prices (as represented by Brent crude in current money terms) averaged about $20/bbl compared to nearer $40/bbl between 1975 and 1985. Over the past three years, the average has been nearer $ 17/bbl (Chart B. 5). Conventional wisdom has it that oil prices can be expected to increase in real terms, albeit only very moderately, over the next ten to fifteen years. Even against this background of a tightening supply/demand balance, crude oil prices are expected to rise only moderately for a number of reasons: (i) Technology-Driven Reduction in Exploration and Production Costs Many of the larger non-OPEC producing regions are mature developments, with reserves well on their way to depletion. Oil in the lower 48 states of the USA (Le. excluding Alaska) has been exploited more thoroughly and for longer than almost anywhere else in the world. Even Alaskan oil, although discovered more recently, feces a future of declining production. The fall in oil prices in the mid-1980s had contributed to this trend by making some of this non-OPEC oil production uneconomic. However, many mature non-OPEC areas have been undergoing a revival, or at least have not declined by as much as expected. The technical response of the oil industry to the challenge of extracting oil economically at lower oil prices has exceeded expectations. There has been a significant reduction in cost of finding and extracting oiL Although there have been man-power reductions to improve productivity, technology has played the greater part. Exploration techniques have become more efficient and drilling technology improvements have considerably enhanced the productive capacity of oil fields. Small, formerly uneconomic, oil fields in the North Sea can now be exploited using specialist production vessels; horizontal drilling has become a widespread technique in only a few short years as a method of significantly enhancing oil field production capability. At the same time, many governments have improved their fiscal regimes in order to encourage oil exploration and production. Estimates for the cost- reductions vary, but it is possible that finding costs could have halved over the past decade. Once developed, technology developments cannot be undone. Nor will technology stand still: even if future progress does not match that of the recent past, further developments will serve to dampen future oil price rises. (ii) Increasing Global Reserves Reserve additions have been replacing oil at least as fast as it is being used. Yet large areas of the world have still to be exploited or even remain unexplored. Potential new oil provinces include the west of the Shetland Islands, the Barents Sea, the Alaskan 13 National Wildlife Reserve, the South Atlantic and South-East Asia. Although obviously not an inexhaustible resource, the reserve base of oil does not seem to be a problem for some considerable time to come. However, it should again be noted that the traditional OPEC oil producers are expected to remain the predominant owners of global reserves. (iii) The Changing Influence of OPEC OPEC recognises that not only should prices preferably be moderate, but that stable prices would be in their long-term interest. As history has demonstrated, oil price shocks only choke off demand. Based on this experience, OPEC is in future likely to adopt a more market-orientated approach to pricing and supply, allowing prices to be driven by supply/demand factors. (iv) Re-integration of the World Oil Industry The growing participation of producer countries in EC downstream activities has over the last few years been followed by the opening-up by most of these countries of their upstream sector to consuming countries' companies. This process of re-integration is likely to continue and expand worldwide and will assist the stabilisation of world oil markets. (v) Increased Sophistication of Oil Markets Oil markets have become increasingly sophisticated in their operations. They have become much more transparent thanks to the information technology revolution and the underlying trends driving markets are now far better understood. That is not to say that there will not be volatility - after all, volatility is the basis upon which markets make their money. But the prospect of sustained oil price crises, induced by non- transparency of the driving forces, have become less. (vi) Government Action to Facilitate Emergency Supply Effective measures now exist at global level, notably the IEA, and at regional levels, such as the EU, to face potential supply disruptions. The Gulf War was a good reminder to the world that these measures exist and can work. At both the IEA and EC levels, efforts are being made to keep these measures in line with changing market circumstances. (vi) Alternatives to Oil It is worth considering the alternatives to oiL hi twenty years, oil has been effectively ousted from much of the steam generation sector (in particular for electricity production) in the developed world, first by coal, then by nuclear. Now it is the turn of natural gas. Over the next ten to fifteen years Europe's demand for gas could increase 14 by 40 %, with half of the increase being for the power generation sector. Although oil will retain its near monopoly of the transport sector, it will have to fight for a dwindling share of static markets - not an environment for price increases. In the long term renewable sources of energy such as solar, wind, biomass, biofuel and geothermal which produce little or no pollution will constitute the main sustainable energy source and the Commission, as mentioned in the White Paper on Energy Policy, will come forward with a strategy for further development in the form of a Communication. B. 3 European Union Crude Oil Supply B. 3. 1 Reserves Europe has significant coal resources although these will be decreasingly exploited. Oil and gas reserves, although modest by world standards, are expected to remain a significant indigenous energy resource. Total Western European proven oil reserves are less than half of the gas reserves (2. 2 billion tonnes (bt) versus 4. 9 btoe of gas). Most of those reserves are under the North Sea. EC oil reserves are 0. 9 bt with almost all of the rest of European reserves being held by Norway. The European reserves to production (R/P) ratio is just 8 years, although reserves are being replaced almost as fast as they are being used so, taking probable reserves into account, the actual life will be considerably longer. B. 3. 2 Production Energy production in the EC can be expected to peak around 2000 after which all of the primary fuels, except renewable energies, are forecast to decline modestly. By 2005, EC energy production is unlikely to have fallen below that of 1992. EC North Sea oil production peaked in the mid-1980s and fell back quite rapidly over the following few years. However, production has actually been increasing since 1991 as technological advances in exploration and production as well as more favourable tax regimes have allowed new smaller fields to be brought on-stream economically while enhancing recovery from existing fields. As a result, decline is not expected to set in again until the late-1990s. B. 3. 3 Import Dependency Europe has been deficit in energy for many years, in spite of a long established and substantial domestic coal industry, and, in more recent years, the development of major oil and gas reserves in North-West Europe and a major nuclear power industry. Rising EC 15 - energy demand and declining domestic primary energy production will result in an increasing reliance on imports from third countries, notably the Middle East and the CIS. The dependency of the EC on imported energy (Le. energy imports as a percentage of gross inland energy consumption) currently stands at around 48 %. Although only slightly higher by 2000, dependency could reach 55 % by 2005, accelerating thereafter. The main change in import dependency is in coal - as domestic production declines, EC imports have risen from 29 % of consumption in 1990 to around 44 % at present and are expected to be 50 % by 2005. Gas dependency is around 40 % and the strong demand growth forecast for the next ten years increases that figure to over 55 % by the middle of the next decade. The dependency of the EC on imported oil is already high (Chart B. 6). Imports accounted for nearly 80 % of consumption in 1990, although the recent strong performance of EC North Sea production has actually reduced the figure slightly. Including Norway, this figure drops to 60 %. With the projected long-term downturn in EC crude oil production expected to have only just started by 2005, and the expected continued modest growth in oil product demand in prospect, EC import dependency may be expected to rise to 83 % by around 2005. B. 3. 4 Crude Quality Until relatively recently, circa 1993, the quality of the crude oil barrel (that is, the overall mixture of crude oils) processed in European refineries had been getting progressively heavier. Production of domestically produced crudes, which tend to be relatively high quality, had fallen while imports of heavier crudes had increased. This exacerbated the impact on refining of the rising demand for high quality products for transport and resulted in significant refinery investment in new plant to convert heavy oil fractions into lighter ones. However, from 1993 onwards the average gravity of the EC crude slate has changed significantly due to the factors mentioned below. (Chart B. 7 illustrates the trends in the average gravity of crude oil supply pre- and post-late 1993. ) Over the past two years, North Sea oil production has enjoyed a revival. Consequently, the total level of oil imports into Europe has fallen slightly. Net crude oil imports into the EC-12 in 1994 were 27 mt, or 6V2 %, lower than in 1992. The quality of imported crudes has changed too. OPEC crudes tend to be heavier, but not only has their share of global oil supply fallen somewhat over the past couple of years, but the overall quality has improved too. This is the result of a specific strategy by Saudi Arabia to maximise exports of higher value light grades in place of medium and heavy grades as far as possible in order to compensate for the substantial fall in oil revenues experienced since 16 - the 1986 price fàlL This has included the development by Saudi Arabia of recently discovered oilfields containing very light crudes. Finally, global supplies of condensates and natural gas liquids (NGLs) have been rising for some years. Blended with crude oil or directly imported as refinery feedstock, they have had the effect of Hghtening the global supply barrel. The unexpected hghtening of the EC crude supply barrel mentioned above is one of the main causes of the present poor profitability of EC refineries. The future direction of the quality of crude oils processed by EC refineries is difficult to forecast. In the very long-term, the vast reserves of medium and high gravity crudes held by the countries of the Middle East will eventually supply an increasing share of EC requirements as domestic reserves are depleted. In the near term, the supply barrel may well remain of a higher quality than had previously been expected. B. 3. 5 Supply Security For the moment, there is generally little cause for concern as to both the current and future outlook for security of oil supply. Conditions have changed substantially from the crisis/sub- crisis situations which existed some twenty years ago when both crude and product supply were much less diversified than they are today (Tables B. 1/2/3/4/5/6). Moreover, there is the potential for an excess of oil supply over demand for some years to come. Nevertheless, the underlying assumptions as to the stability of crude oil supply sources should be subject to continual review. Indeed, as has already been indicated, more than three-quarters of world oil reserves are located in potentially unstable areas from a political and/or economic point of view. These will remain the dominant source of EC supply in the future. There is therefore an ongoing need for the EC to see to it that good producer-consumer relations are fostered by a process of dialogue and alignment of interests via investment and operational arrangements. Upstream investment possibilities for EC companies in producer countries are now opening up, and the developments that producer country companies have been pursuing in the EC downstream sector in recent years are continuing. Such moves consolidate the mutual interest that both parties have in the successful performance of the oil sector as a whole. Instances of this process are: • The development of co-operation in the energy field between the Gulf Co-operation Council (GCC) countries and the EU, as found in the progressive vertical integration of respective GCC and EC industries where EC downstream investment is undertaken by GCC companies while upstream investment is undertaken in GCC countries by EC companies - 17 • The Commission's co-sponsorship of the Fourth International Conference on Energy in Puerto la Cruz, Venezuela on 25/27th September 1995 • The Commission's participation in the Barcelona Conference of 27/28th November 1995 on Euro-Mediterranean Co-operation • The establishment of the European Energy Charter which will provide a context within which investment by EC companies in the exploitation of the hydrocarbon resources of the CIS and CEEC may be undertaken with confidence Further attention needs to be given as to how best to facilitate this process of dialogue, hence the need for the EC as the world's largest oil importer to support and promote the political dialogue between producers and consumers following the new impetus given by France and Venezuela at the Paris conference in July 1991. Having sought to promote supply security via appropriate political arrangements as described above, there remains an ongoing need to ensure that there are in place adequate arrangements for the management of crisis situations via the maintenance of stock obligations and other co-ordinating activity. In this connection, there is broad satisfaction as to the complementarity of IEA and EC systems and the continuing efforts of both institutions to keep the necessary arrangements in line with the changed situtation of the oil markets and, particularly as far as the EC is concerned, to adapt the existing crisis legislation to the functioning of the internal market. A further issue to emerge in the context of supply security is the general question of crude oil supply logistics. The EC must have regard to the continuity of its long-term crude oil supply and be vigilant as to new opportunities to ensure its access to the supply arrangements that are evolving as a result of new crude oil production sources and changing political circumstances. Examples in this connection would include the new pipeline networks that are being developed or mooted in respect of new CIS production, notably from the Caspian Sea, and the re-opening of the ADRIA pipeline in Croatia, as well as the possibilities that are being considered in respect of Russian oil exports in the context of Trans-European Network support, as provided for in the Treaty. 18 - ANNEXC Oil Product Demand and Supply C. l Global Context World energy consumption more than doubled over the last three decades, reaching 8. 4 btoe in 1990. Between 1974, the year following the first major oil price shock, and 1992, the annual rate of growth was almost 2 %. Growth has recently ceased because of declining consumption in the former communist countries, but, as these economies recover, the underlying trend will be restored and demand for energy can be expected to grow again. The IEA estimate that energy could grow at 2 % or more each year over the next 10 to 15 years. As regards the split by type of EC-15 1995 gross primary energy consumption of 1369 mtoe, oil predominates with 574 mta, representing a share of 43 %, with gas coming some way behind in second place with 277 mtoe (20 %). While by 2005 oil consumption rises to 606 mta, its share drops to 39 %, principally in favour of gas and renewables. (Charts C. l and C. 2 respectively show the position for each year. ) Overall OECD oil growth is forecast at around 1 % pa. between 1992 and 2010 by the BEA Outside the OECD, while energy growth in the countries of the CIS and Central and Eastern Europe takes some years to recover (but is still forecast to increase at an average of 0. 6 % p. a. between 1992 and 2010), the developing world will achieve growth rates of as high as ca. 4 % p. a. , hi quantitative terms the forecast OECD growth of 1% is considerably larger than that of the developing world's 4%. In particular, the developing countries of the Pacific Rim, led by China and the "tiger" economies of South Korea, Taiwan, and the ASEAN countries, as well as Latin America, will be foremost in this growth. In the OECD, oil will continue to be increasingly concentrated in the growing transport sector, offsetting declining demand in other sectors. In the developing world demand will grow in all sectors because of the burgeoning need for energy in general and the lack of suitable alternatives to oil in many parts of the world. Transport sector growth will be the strongest. Although world oil demand will continue to increase, it will be outstripped by the other main primary energy sources, particularly gas. While losing share, oil will remain the most important source of world energy. C. 2 EC Oil Product Demand C. 2. 1 EC Oil Product Demand Statistics 19 There has been a flattening-off in overall demand in recent years, while relatively modest growth (ca. 0. 5 % p. a. ) is expected over the next ten. (Chart C. 3) illustrates the expected evolution of EC-15 oil demand, including the barrel split, over the period 1990-2005, the projections from 1995 on being based on the Commission's latest base case. ) The Western European demand barrel has become steadily lighter over the last twenty years, with the most pronounced growth being observed in middle distillates, followed in turn by gasolines and other products. (Chart C. 4 demonstrates this evolution in percentage terms. Chart C. 5 provides a further demonstration of how the barrel hghtening has been predominantly in the direction of middle distillates since 1990 and also shows how this is expected to continue for a further ten years, albeit at a decreasing rate after 2000. ) EC-12 oil demand was 494 mt in 1994, excluding some 35 mt of fuels for marine bunkers. At these levels oil accounts for some 43 % of total EC energy consumption. Gasoline (Le. aviation and motor gasolines phis light chemicals feedstock) accounted for 27 % of total EC oil demand, middle distillate (jet and heating kerosines, and gas and diesel oils, including marine bunker fuel) for 44 %, fuel oil (industrial and power station fuel plus marine bunker fuel) for 18 %, and other products (refinery gas, liquefied petroleum gas, solvents, petroleum coke, lubricants, bitumen and waxes) for 11 %. It is to be noted that the share of light products has been increasing steadily since the oil price shocks of the 1970s caused demand for heavy fuel oil to decline in the face of competition from other energy sources while the demand for gasoline, kerosene and diesel for transport has risen. More recently, and unexpectedly, the demand for diesel has continued to grow steadily at the expense of gasoline. C. 2. 2 EC Demand Outlook Commission forecasts predict that the overall level of demand for energy in the European Union will increase slowly but steadily over the next ten years, rising at around 1 % per annum As a result of the "dash for gas", mainly in the power generation sector, natural gas is expected to be the fastest growing fuel - demand could rise at over 3 % p. a. Nuclear and renewables will grow too while coal declines. Oil is forecast to rise only modestly - around 0. 5% p. a. While there is a possibility that the Directive 75/405/EEC banning the use of oil in power generation will be repealed, it is expected that oil demand for this use will fall. There is, however, some growth expected in the sectors of final demand - mostly transport fuels. Oil will retain the greatest share of total EC primary energy. By 2005 it is still expected to account for around 40 % of total energy consumed. 20 Oil demand growth will be concentrated in the non-substitutable transport and non-energy uses. Regionally, most of the growth is in Southern Europe, where there is more scope for increases in oil use as a result of stronger economic growth. Competition with gas will be an important factor, particularly where Heavy Fuel Oil (HFO) is being displaced for power generation (notably Italy) and where gas is being introduced as a new fuel (Greece, Portugal, Spain and parts of Scandinavia). Overall, the demand barrel is expected to continue to lighten. In common with the worldwide trend, although not as strong as the trend in the developing world, growth is expected in the middle of the barreL The products involved are kerosene for aviation uses and particularly diesel for transport, more than offsetting continuing decline in space heating uses of these fuels. Gasoline demand may grow slightly, mainly in Southern Europe, but the continuing trend towards diesel-fuelled passenger cars is expected to limit growth, unless there are taxation changes to equalise excise taxes on the two fuels on an energy basis. This would still not reverse the trend completely though as there are still operating efficiency advantages in using dieseL Current concerns about particulate emissions by diesel vehicles should be technically resolvable. The residual end of the barrel is expected to decline since fuel oil faces both environmental regulation and competition from natural gas. Nonetheless, a not insignificant proportion of residuals are used for purposes where substitution is not straightforward, HFO for marine bunkers, bitumen, lubricants and petroleum coke. These uses account for around 40 % of residuals in Europe are likely to grow in line with the economy. EC Oil Product Supply The 1994 mass balance of EC-12 oil product supply was as follows: total EC-12 product demand of 494 mt and non-EC-12 exports (including bunkers) of 110 mt were met by 517 mt of net refinery production, non-EC-12 imports of 76 mt and EC-12 stocks and other changes of 11 mt. The ELPs own refining industry provides the overwhelmingly greater proportion (86 %) of overall product supply. While overall net imports of oil products are approximately zero (Chart C. 6), this is made up of significant net exports of gasoline (15 mta), which have been increasing strongly over recent years, balanced mainly by net imports of fuel oil and naphtha (Charts C. 7/8/9). Sources of product imports are widely diversified (Table B. 2). 21 ANNEXD Environment D. 1 Political and Economic Context Protection of the environment is an EC objective of major political and economic significance. In Chapter XVI of the EC Treaty is set out the policy on the environment which the Commission has to promote. There is a great deal of concern across the Community about the environment and in particular air quality. Citizens are demanding improvements and indeed specific committments in this respect were made in the Framework Convention on Climate Change. The whole Community in general will benefit from improved air quality. For the energy sector in particular, environmental measures will have far-reaching effects, and is to be regarded as one of the key issues for the oil industry, having impacts on both the refining and the marketing sectors. D. 2 Current and Proposed Measures The impacts of both current and proposed measures relate to operating arrangements in the refining process itself^ to new tighter product specifications, and to emissions-limiting equipment in the distribution system. The current EC directives in regard to pollutants in various oil products have given rise to tighter specifications in respect of sulphur, benzene and lead levels as set out in Tables (D. 1/2/3). In addition, there now exists a directive adopted by the Council in 1994 on the control of volatile organic compound (VOC) emissions resulting from the storage of petrol and its distribution from terminals to service stations (the so-called 'Stage T Directive - 94/63/EC). This Directive is a first step in the implementation of a strategy to achieve an overall reduction in VOC emissions throughout the EC. It applies to the operations, installations, vehicles and vessels involved in the storage, loading and transport of petrol from one terminal to another or from a terminal to a service station. The Auto Oil Programme and possible future measures arising are outlined in section D. 4. 2. below. 22 D. 3 Implications for Downstream Economics and Decision-Making Current measures and proposals are already involving the industry in heavy expenditure which they are concerned will not be recovered in oil product prices. The implied investment, including expenditure incurred to date, for the downstream oil sector in respect of existing and potential EC environmental measures is substantial Table D. 5 quotes estimates made by the industry and other sources as to the ranges of expenditure to be expected. The amount of middle distillate desulphurisation capacity already installed as a result of the measures is considerable, namely 155 mta of capacity by 1994 (Table D. 6 gives the breakdown by country) compared with total middle distillate demand of 225 mt. A further potential economic implication is that the obligatory clean-up costs which are imposed on refiners who close plant are impacting on refinery closure decisions in that they raise substantially the cost of so doing. In accordance with the 'polluter pays' principle, operators who shut down refineries, depots, retail sites or other installations are required to clean up the site to specified acceptable standards. The costs to be incurred are potentially substantial - for a medium-sized refinery these could typically lie in the range ECU 60m - ECU 80m, and for a retail site be in the order of ECU 200,000. D. 4 Environmental Outlook D. 4. 1 Possible Future Measures It is clearly a complex matter to assess all of the technical and non technical environmental options that are available in respect of measures that could be applied in the refining sector, having regard to their economic aspects in terms of cost effectiveness and implications for competiveness, as well as geographical considerations. There has, however, evolved over the last few years a new approach to the formulation and selection of oil sector-related environmental measures. These are now aimed at achieving the new air quality targets for 1999/2005 in regard to emissions of pollutants Nox, S02, CO, particulate matter, lead, ozone, benzene,hydrocarbons, cadmium, arsenic, nickel and mercury. With regard to a second round of reductions in permitted VOC emissions, the Commission services are reflecting on the most cost-effective ways and means to achieve these, either via technical adaptations at service stations (the so-called Stage II measures which some Member States have already decided upon) or via the installation of large carbon canister in cars. 23 D. 4. 2 The European Auto Oil Programme Further environmental measures are in prospect. A major initiative on the part of the Commission in conjunction with the EC oil (EUROPIA) and motor manufacturing (ACEA) industries was launched in July 1993 with the objective of improving air quality. This initiative forms part of the Commission's new strategy in regard to vehicle emissions which is based on a multifaceted, coherent approach to pollution-reduction measures to be implemented by the year 2000. The initiative is called the European Auto Oil Programme (EAOP), and the strategy is fully in line with the Commission's Fifth Environmental Action Programme, which places particular emphasis on cost-effectiveness analyses. The intent of the EAOP is to identify which new measures may be required to meet air quality targets the development of which are based on a rational approach via the reduction of emissions in the most cost-effective way. These measures identified by the EAOP will form the basis for the next step in the new European legislation on both emissions and fuel qualities. The European auto oil programme has also identified improved inspection/maintenance schemes and a number of non-technical measures (eg road pricing, restriction of traffic in certain areas and scrappage schemes) as important elements of national policies to comply with future air quality objectives. However, the nature of most non-technical measures does not lend itself to regulation on an EU but rather on a national/local level. To date, four parts of the EAOP have been finished, namely: (i) the European Programme on Emissions, Fuel and Engine Technologies (EPEFE), (ii) the Air Quality Study of conditions in seven European cities, (iii) the monitoring of the quality of fuel available on the market, and (iv) the cost-benefit analysis of the technical and non-technical measures proposed for the achievement of the required air quality standards. The main aim of the EPEFE research test programme was to establish the relationship between engine technology, fiiel quality and emissions. The results of the programme have seived in assessing the emission reductions which can be achieved through changes in th equality of fuel. This excellent example of co-operative effort on the part of the Commission and the oil and motor manufacturing industries is expected to lead shortly to the establishment of sets of specifications to come into force in 2000 in respect of the properties of motor fuels which will bring about significant reductions in the emission levels of pollutants produced in their use and manufacture. As well as meeting environmental requirements, the new sets of 24 specifications will be consistent with the need to retrict the cost of resulting measures to manageable levels, and with other social and economic needs of EC countries. D. 4. 3 Industry Proposals on a Cost-Benefit Approach to Commission Measures The oil industry are proposing that the cost-benefit approach adopted in the EAOP be used as the basis for a much more thorough and comprehensivety global approach (called Energy Impact Assessment - EnergXA) in respect of Commission proposals which potentially will have direct or indirect repercussions on the energy sector. The approach proposed would take into account all impacts on energy and related activities in the cost-benefit assessments of proposed EC measures, amongst which they make mention of those relating to the environment. The assessments should involve a comprehensive and objective cost-benefit analysis, quantitative and qualitative, in relation to the impacts that proposed Commission measures would have on the realisation of EC energy policy objectives. This approach merits further examination by the Commission services. 25 ANNEXE Oil Refining E. 1 Refinery Numbers, Capacity and Utilisation E. l. l Definitions of Capacity Types Two of the principal elements of the refining process need to be defined in order to be able to discuss and understand adequately the economics of the refining sub-sector. The first is the crude oil distillation process, which is that part of the refining process relating to the initial processing of the crude oil, that is the primary distillation process, with the plant itself known as the crude distillation unit (CDU). Generally, when people refer to 'refining capacity1, 'CDU capacity1, or 'straight-run' capacity, it is this capacity that they mean. The second covers upgrading processes, which improve the quality and value of intermediate products of the refining process. Such processes include those which improve distillates (like catalytic reforming), and conversion processes (like catalytic cracking). Conversion processes convert fuel oil manufactured in the initial cmde oil distillation process, or other intermediate products of the refining process which have a fuel oil value, to middle and light distillate products, thereby enabling refiners to match product output more closely with demand. Conversion is often quoted in terms of the equivalent catalytic cracking (CCU) capacity needed to produce the same amount of distillate, catalytic cracking being one of the commonest examples of conversion plant. Others include hydrocracking, residue cracking, combination cracking, visbreaking, coking and alkylation. The terminology presented in these definitions is used throughout this document. E. 1. 2 Refinery Numbers There were 93 refineries in the EC-12 at end-1994 following a long period of closures since 1980 when there were 141. The total numbers of refineries plus primary distillation capacity and details on refinery complexity at the beginning and end of the period plus 1988 are given in Table E. 1. While the overall number of refineries has declined over the period, it may be seen that the number of complex refineries has actually increased (from 55 to 66), with decreases in semi- 26 complex refineries (from 24 to 13) and in simple refineries (from 62 to 14), thus representing a significant increase in the complexity of total EC refining capacity. Following the closures, only three refineries with a capacity of less than 1 mta remain. In addition, some refineries are poorly located and, together with the low-capacity refineries, are in the current margins climate consequently suffering from particularly poor profitability. E. 1. 3 Trends Total EC-15 crude oil distillation capacity as reported by Member States for 1994 was 637 million tonnes per annum (mta), of which 560 mta was utilised. This represented a utilisation rate of 87 % and followed the more or less steady rise in utlisation observed since 1985 when utilisation was only 63 %. This increase reflects the programme of crude distillation capacity reductions undertaken by many refiners over the period, in part accounted for by the closures of complete refineries mentioned earlier. Table E. 2 sets out the situation at 1. 1. 1995 for each Member State in respect of capacities of both crude distillation and conversion plant, while crude distillation capacities, throughputs and utilisation are plotted on Chart E. 1 for the period 1985-95. The crude oil distillation capacity figures, on which the utilisation rates are calculated, do not however include an adequate allowance for both the so-called 'capacity creep' which has been taking place over recent years and which describes small but ongoing expansions of existing nominal nameplate capacity as reported, and capacity which has been taken out of service but is available at relatively short notice. Hence the utilisation rates are over-stated, falling even further short of total utilisation than the figures indicate. Conversion plant capacity for the EC-15 area amounted to 199 mta (in terms of catalytic cracking equivalent) in 1995, up 50 mta or 35 % compared with 1985 (Table E. 3/Chart E. 2). This figure represents 31 % of total CDU capacity. This strong growth in conversion capacity reflects the industry's expectations at the time as to future gasoline demand growth and an increasingly heavy crude supply slate. These expectations were vindicated up until the early nineties when gasoline growth flattened off and the crude slate started to lighten (see Charts B. 7, C. 3 , C. 4 and C. 5, presented in earlier Annexes). The general consensus in industry is that the conversion capacity in place was nevertheless utilised as although margins were low they were still sufficient to cover cash variable costs. E. 2 Refining Margins and Profitability E. 2. 1 Margins Definitions 27 Refinery profit margins are defined as 'gross margins' for the purposes of this document. That is, they are the difference between the proceeds derived from oil product sales and the cost of crude oil feedstock, divided by the amount of crude oil processed. E. 2. 2 Observed Margins Chart E. 3 sets out refining profit margins expressed in US dollars per barrel of crude oil processed which have been earned over the period 1988-94 in North-West Europe (NWE) and in the Mediterranean (Med). For NWE, they are plotted for both 'Straight-Run Refiners1 (that is, the 'straight-run margin', defined broadly as that earned by refiners running only ciude distillation phis catalytic reforming plant) and for 'Upgrading Refiners' (that is the 'upgrading margin' defined as that earned by those refiners running crude distillation phis catalytic cracking, gas-oil desulphurisation and catalytic reforming plant). For the Med, they are plotted for 'Upgrading Refiners' only. As an initial observation, it may be seen that while there has recently been little difference between typical upgrading margins in NWE and the Med, over the period 1992-94 Med margins were higher by up to circa $0. 6/bbL Secondly, it may also be seen that both straight-run and upgrading margins have fallen since peaking in 1991, reaching levels of circa $0/bbl and $1. 8/bbl in 1995. It is estimated that upgrading margins would have to reach significantly higher levels on a sustained basis before refiners would earn adequate returns on the upgrading investments they have made in recent years. Chart E. 3 demonstrates that upgrading margins have only once - in early 1991 during the Gulf crisis - reached such levels, and then only for a few months. E. 2. 3 Explanation of Trends The refining sub-sector of the EC downstream oil industry has been experiencing for some time what must now be regarded as chronically weak margins. At the same time, there has developed a surplus of motor gasoline manufacturing capacity and a tightness in diesel fuel supply. This situation has come about as a result of: (i) the evolution of the economic recession as reflected in a flattening off in overall EC oil product demand, in particular in gasoline, (ii) an ongoing EC excess crude oil distillation capacity to refine crude oil relative to oil product demand. (iii) an unforeseen increase in the availability of light crude oils from the North Sea and Saudi Arabia which has made it possible to manufacture additional light product 28 - without having to utilise all of the available refinery conversion plant (originally installed by the industry in the expectation of a growth in heavier crude supply which would have given rise to a light product deficit) (Chart E. 4 demonstrates the effect of this development on both crude and product price differentials), (iv) the switch in road transport fuel demand from motor gasoline to diesel, driven in part by fiscal disparities in many Member States between diesel and gasoline which have boosted diesel demand at the expense of gasoline, and (v) an increasing number of environmental constraints, in particular the introduction of unleaded gasoline, necessitating investment in additional refinery plant to improve quality, which has given rise to a non-intended addition to light product rnanufacturing capacity. Despite the large reductions in crude distillation capacity which were facilitated over the eighties, the over-capacity situation remains and seems unlikely to disappear for some time without further plant closures. The further reduction of both crude distillation and conversion capacity appears therefore to offer one contribution to the resolution of this problem Some refiners have responded by closing further crude oil distillation capacity or in some cases by selling out complete refineries to purchasers whose economics are dictated by the strategic objective of entering new markets. Overall, however, there have been insufficient reductions in crude oil distillation to tighten oil product supply and thus boost straight-run margins to acceptable levels. In addition, no conversion capacity has been closed, and consequently there has not been the tightening in the availability of light distillates that would be necessary to boost upgrading margins. There has been only one outright refinery closure recently, (capacity approximately 5m toe) largely because refiners have been reluctant to take such strategically significant decisions, given their one-way character and the heavy environmental and social charges that would be incurred. The necessary reductions in crude distillation capacity have not yet happened because of the uncertainty as to if/when demand will pick up again, the ongoing trend to reduce costs which has allowed refiners to remain cash-positive, and the reluctance of individual refiners to face the strategic and operational implications as well as the substantial costs of refinery closures. As a result of the situation in both crude distillation and conversion, refiners, most of whom have at least a partial conversion capability, are trapped between having cash margins which, although low, are positive on the one hand but which do not offer adequate returns on conversion plant investment on the other. - 29 - Given all the above actors, the industry is faced with an unusual degree of uncertainty as to the prospects for the sector and is therefore adopting a "wait-and-see" position vis-à-vis decisions on capacity. Table E5 gives details of net expansion and reduction in capacity which, at the beginning of 1995, had already been advised. Table E6 gives details of OPEC foreign refining capacity at the end of 1995. E. 2. 4 Effects on Refining Profitability of International Trade The overall oil product trade balance of the EC has improved considerably over the last few years (Charts C. 6/7/8/9, presented in earlier Annexes). Some concern remains, however, that any reductions that are achieved in EC refining capacity could be off-set by increased imports, thus preventing any improvement in margins. It should be noted in this connection that the Generalised System of Preferences (GSP) provisions which have in recent times favoured oil product imports from some countries are shortly to become more severe, in line with the original intention of the GSP system which was to favour investment in the Less Developed Countries (LDCs). Imports could become an important factor with either the rising oil product self-sufficiency of Far Eastern countries which may have the effect of deflecting exports from Middle Eastern refineries to the EU, or with increasing oil product exports from the CIS. In regard to the latter, the likely evolution of the downstream interactions between the EC on the one hand and the CIS and CEEC on the other continues to be unclear, given the uncertain pace and direction of developments there. In the short to medium term, there is a consensus that changes are unlikely to have any ongoing major impact on downstream oil supply economics. In the longer term, it is felt likely that the CIS and CEEC will invest in refinery plant so as to match their product output more closely with domestic demand, thereby allowing their crude oil production to be exported as crude rather than product, a more profitable option than their current practice of exporting product surpluses on to international markets. In the USA, the moves to introduce Reformulated Gasoline in an attempt to reduce noxious emissions have had implications for EC refiners in that some have had at least temporarily as a result of supply logistical changes enforced on US importers to reduce exports of motor •gasoline to the USA. Some countries and companies argue that the new regulations, introduced in 1995, have favoured US refiners. The situation is, however, evolving and it remains to be seen whether the effects on EC refining profitability will prove to be material in the longer run. E. 3 Refining Outlook 30 There is a consensus that the outlook for the sector is characterised by an unusually high degree of uncertainty, the consequence of which is to hobble the commitment of the industry to the sector as a whole. This is being manifested in a "wait-and-see' approach on the part of most industry players in regard to strategic decisions. More specifically, it is widely accepted by operators that there is a need for further refinery closures before margins can be expected to be restored to acceptable levels in the short to medium term, although it remains a possibility that the capacity surplus currently observed is merely temporary in character. It is also accepted, however, that further closures may prove difficult to achieve. This is so because of the heavy costs of closure. A further factor thought to be inhibiting refinery closure decisions is the question of the clean-up costs that would generally be incurred, as referred to earlier. Rather than close refineries which are unprofitable, it is believed that owners are instead being tempted to maintain them on a 'tick-over' basis, minimising investment while manufacturing such quantities and qualities of product as will leave them cash-positive. This course of action merely contributes to the general over-supply situation. In these circumstances, as an alternative to bearing the costs of closure, some refiners may well, for strategic or other reasons, be tempted to sell to purchasers whose strategic intentions and/or economic circumstances make such deals attractive to them Moreover, the new owners would have a low level of invested capital to remunerate and thus be in a position to operate profitably at margins which only covered operating costs, thereby directly weakening further refining margins throughout the sector as a whole. Accordingly, refiners are keeping their investments - other than obligatory care-and- rnaintenance or that required for statutory reasons - on hold, given the absence of any prospect of improvement in the near or even the medium term With obligatory investment, refiners are fearful that they will not earn adequate returns, all of which is producing a "wait- and-see' mood in the industry. Against this background, there is also the competition that other parts of the world present in regard to attracting industry investment. Better returns may be available elsewhere. International oil companies may concentrate their scarce capital resources in non-EC areas whose refining industries may well become more competitive and efficient than the EUs, as they argue, with corresponding consequences for the EC economy as a whole. 31 - ANNEX F Oil Product Marketing F. 1 Marketing Sub-Sector Definition The marketing sub-sector comprises the transportation from the refineries by ship, road, rail or pipeline to customers. Delivery to customers is sometimes direct, but more usually it is undertaken via intermediate storage depots used as a base for more local distribution. In the case of motor gasoline and diesel fuel, most customers obtain their product supplies via retail networks of service (that is, filling) stations, which in many cases are owned or franchised by the companies which own the refineries. Competitive pressures are such that operators seek to offer a higher quality of service vis-à-vis their competitors. F. 2 Retail Statistics Since 1985 the number of service stations throughout the EC has been steadily declining. Total station numbers in the EC-15 now stand at 122,900, being a 23 % reduction on the 158,700 in operation in 1985. (Table F. 1 gives details of the evolution of site numbers over the period in each Member State, while Chart F. 1 plots the evolution across the EC as a whole. ) These reductions in site numbers have happened as operators have sought to increase fuel volumes sold per station and thus reduce unit costs. (Chart F. 2 plots the evolution of volumes sold per site for the EC-12. ) A factor in the evolution of the retail sector has in recent years been the rapid expansion in some countries of sales through hypermarkets, which have largely been at the expense of those of the traditional oil companies. F. 3 Retail Market Shares and Profitability There has been a marked trend in retail market shares over the last ten years, with the traditional integrated oil majors and independents alike losing ground to the hypermarkets as well as to the so-called national oil companies and operators owned by producer country interests. The hypermarkets have been seen to make most progress in France and the UK which they are continuing to achieve via a policy of severe price competition. In this way the competitive structure of the motor fuels market is undergoing significant change. 32 As a response to this development, there has in recent times been an increasing trend to market rationalisation by integrated companies in motor fuel sales, where via a policy of selective swaps and disposals of retail filling stations, companies have focused their sales in particular geographical areas. While marketing is generally in better shape than refining, there is no doubt that in some areas the serious inroads hypermarkets are making into the business activity previously regarded as the province of the traditional oil companies are affecting the economics of the marketing sub-sector. F. 4 Harmonisation Questions Fiscal disparities within many Member States between diesel and gasoline duties have boosted diesel demand at the expense of gasoline, and have thus exacerbated the mis-match between EC refinery output and demand (Table E. 4). Moreover, fiscal disparities between Member States in respect of the same products have not permitted the abolition of tax frontiers, are producing cost, market and competitive distortions, and have given rise to problems of fraud. Given that it has been requested by the representatives of both industry and national administrations in discussions on fiscal issues in Lisbon on 13th/15th November 1995, the harmonisation of fiscal duties is now established as a necessary element in meeting the objectives of the Treaty in respect of the internal market. On product standards, there is currently across the EC as a whole a proliferation of oil product specifications in respect of automotive fuels arising from the often relatively slight differences to be found in different Member States in the specifications for essentially similar products. Some operators argue that standardisation of such product specifications throughout the EC would allow considerable simplification of their logistical arrangements, thus facilitating cost reductions which could at least in part be passed on to consumers. On the other hand, others view such variations in specifications as providing the context for normal competition on quality. 33 ANNEX G Glossary Of Terms The following definitions of terms used may be helpful, particularly for those who do not have specialist knowledge of the oil industry. It is presented alphabetically for ease of reference. 'ACEA': Association des Constructeurs Européens d'Automobiles. 'ASEAN1: Association of South-East Asian Nations 'BAT: Best Available Technology. W: Barrel, being a measure of volume used in the oil industry. 1 cubic metre equals 6. 29 barrels. A metric tonne of crude oil contains about 7. 33 barrels. •bn': Billion. Irt': Billion metric tonnes. 'btoe': Billion metric tonnes of oil equivalent. 'Capacity creep': An industry term used to describe the slow but steady expansion in actual capacity compared with the nominal capacity of plant that normally comes about as a result of ongoing improvements made by operators to plant, for example by way of the removal of bottlenecks in the flow of process liquids, etc. 'CEEC: The Central and Eastern European Countries - that is the former Soviet satellite countries of Central and Eastern Europe, plus the Baltic states. 'CIS': The Commonwealth of Independent States - that is the countries of the former Soviet Union. 'Conversion capacity/plant' is a sub-category of upgrading capacity/plant (see below). Conversion plant converts fuel oil, or other intermediate products of the refining process which have a fuel oil value, to middle and light distillate products, thereby enabling refiners to match product output more closely with demand. 'Crude oil': Mineral oil as found in its naturally-occurring state underground or under the sea-bed. 34 'Crude oil quality1: Crude oils have a number of different qualities of significance for refiners, among the more important and best known being sulphur content and gravity. In layman's terms, the gravity describes the Ughtness/heaviness of the crude, the fighter the crude the greater the proportion of fighter, and therefore generally more valuable, products which may be distilled from it without recourse to expensive conversion processes (see 'Conversion capacity/plant' above). Accordingly, fighter crudes tend to command higher prices. Another point to note is that fighter crudes tend to, but do not always, have a lower sulphur content and therefore do not require to the same extent desulphurisation treatment which adds to refining costs, a point of increasing significance given tightening sulphur specifications. Where this is the case the market value of the crude is increased further. 'Downstream oil sector1: The downstream sector of the oil industry comprises: (i) the transportation and storage arrangements involved in the supply of crude oils and partially refined oils to refineries, (ii) the refining process itseh; and (iii) the transportation, storage, distribution and sales arrangements involved in moving finished oil products from refineries to customers. The activities involved in (i) are often referred to simply as 'supply1, those in (ii) as 'refining', and those in (iii) as 'marketing'. We have adopted this simplified terminology throughout the Report except where otherwise indicated. The 'supply1 activities undertaken in (i) include the movement of crude oils via ship and/or pipeline and/or storage tankage to refineries. 'Refining' activities listed in (ii) include the refining of both crude and partially refined oils (taken from one refinery to another for further processing) in a complex sequence of chemical processes and blending operations. These ultimately produce a wide range of finished oil products for use by customers in a variety of applications, such as in fuel for transport or heating, feedstock for the chemicals industry, road-making materials, lubrication and others. 'Marketing' activities described in (iii) involve the transportation from the refineries by ship, road, rail or pipeline to customers. Delivery to customers is sometimes direct, but more usually it is undertaken via intermediate storage depots used as a base for more local distribution. In the case of motor gasoline and diesel fuel, most customers obtain their product supplies via retail networks of service (that is, filling) stations, which in many cases are owned or franchised by the companies which own the refineries. 'EC: European Community, taken throughout this Report to include all fifteen Member States unless indicated to the contrary. 35 'ECU: European Currency Unit. 'EUROPIA': European Petroleum Industry Association. 'Fuel oil': The heavier products which are manufactured from crude oil in the initial distillation process. These are used in the production of heavy finished products for burning in power stations, ships' boilers, etc. 'FSU: Former Soviet Union. 'GSF: Generalised System of Preferences 'HFO': Heavy fuel oiL 'kPa': Thousands of Pascals. 'LDCs': Less Developed Countries 'Light distillate': The fighter products which are manufactured from crude oil in the initial distillation process. These are used in the production of light finished products such as motor gasoline, feedstock for the chemicals industry, etc. 'Med': Mediterranean. 'Middle distillate': The products of medium weight which are manufactured from crude oil in the initial distillation process. These are used in the production of finished products such as automotive gas oil (that is, diesel fuel) and heating gas oil (that is, domestic heating fuel). 'mt': Million metric tonnes. 'mta': Million metric tonnes per annum. 'm3': Cubic metre. 'NGLs': Natural gas liquids. 'NWE': North-West Europe. 'p. a. ': Per annum. 'ppm1: Parts per million. 'Refining': The chemical and physical processes involved in separating the hydrocarbon compounds found in crude oil together with the conversion of some of them into other 36 hydrocarbon compounds so that they may be blended together into a range of usable finished products. 'Residue': Fuel oil and other heavy intermediate products manufactured in the initial distillation phase of the refining process. 'R/P: Reserves to production (ratio - used in regard to oil and gas reserves). 'Straight-Run Products' are those manufactured in the primary distillation process. 'TPA': Third Part Access. "tpa1: Tonnes per annum. 'Upgrading capacity/plant' is a term used to describe processes which improve the quality and value of intermediate products of the refining process. 'VOC: Volatile organic compound. 37 Index to Tables and Charts Tables B. 1 Evolution of Crude Oil Trade B. 2 Evolution of Product Trade B. 3 Evolution of Gasoline Trade B. 4 Evolution of Naptha Trade B. 5 Evolution of Gas/Diesel Oil Trade B. 6 Evolution of Residual Fuel Oil Trade Charts B. 1 World Proven Oil Reserves B. 2 Distibution of World Reserves B. 3 World Oil Supply B. 4 OPEC Share of World Production B. 5 Crude Oil Prices B. 6 Oil Import Dependency B. 7 Average API Values C. 1 Gross Energy Consumption EU 15 1995 C. 2 Gross Energy Consumption EU15 2005 C. 3 Oil Product Demand EU15 C. 4 Oil Demand Barrel Shape C. 5 Incremental Oil Product Demand EU 15 C. 6 Total Product Trade EU12 C. 7 Gasoline Net Exports EU 12 C. 8 Gas Oil Net Exports EU12 C. 9 Fuel Oil Net Exports EU12 Tables D. 1 Maximum Sulphur Contents - Gas Oil D. 2 Maximum Lead Contents - Petrol D. 3 Maximum Lead Contents - Unleaded Petrol D. 4 Not used D. 5 Environmental Investment Costs D. 6 Desulphurisation Capacity E. 1 Refinery structure Evolution E. 2 Refining Capacity EU 15 E. 3 Conversion Capacity EU 15 E. 4 Taxes and Duties EU 15 E. 5 Further net expansion or net reduction in capacity EU 15 E. 6 OPEC Foreign Refining Charts E. 1 Distillation Capacity Utilisation EU 15 E. 2 Refining Upgrading Capacity EU 15 E. 3 Refining Margins E. 4 Brent/Dubai & Leaded Gasoline/Fuel Oil Price Differentials Table F. l Number of Petrol Retail Outlets EU 15 Charts F. 1 Marketing of Oil Products EU15 F. 2 Average throughput per Service Station EU 12 EU - 12 - Evolution of crude oil * trade 1985 - 1990 - 1994 1 9 8 5 ** Mta 1990 Mta 1994 Mta TOTAL IMPORTS 377. 0 467. 5 502. 0 312. 6 100. 0 428. 4 100. 0 455. 2 100 EXTRA - EU imports (1 +2 + 3 + 4) 1. OECD countries of which :. Norway OPEC countries of which : Algeria Iran Iraq Kuwait Libya Nigeria Saudi Arabia Venezuela Ex - USSR 4. Other countries of which : • Egypt. Mexico 25. 4 23. 2 206. 0 18. 3 25. 6 • 24. 8 9. 9 37. 7 38. 8 28. 4 10. 3 27. 5 53. 7 11. 7 18. 3 46. 6 43. 8 253. 5 19. 0 54. 0 21. 3 10. 9 51. 1 26. 1 51. 9 8. 0 61. 2 67. 1 11. 1 17. 0 66 6 8 8 3 12 12 9 3 17 4 6 TOTAL EXPORTS 87. 4 67. 8 18 18 56 4 10 3 11 7 18 2 15 11 2 2 11 10 59 4 13 5 3 12 6 12 2 14 16 3 4 82. 5 80. 1 253. 9 18. 2 45. 8 13. 6 49. 6 32. 5 82. 8 7. 5 66. 7 52. 1 8. 2 10. 2 96. 1 NET IMPORTS/(EXPORTS) 289. 6 399. 7 405. 9 * Refinery Feedstocks and NGL included. ** For 1985, EU - 12 does not include ex-GDR. Sources : IEA Statistics and Eurostat TABLE B. l •7 E U - 1 2 -' Evolution of all petroleum products trade 1 9 85 - 1 9 90 - 1 9 94 TOTAL IMPORTS EXTRA - EU imports (1 +2 + 3 + 4 + 5 + 6) 1. OECD countries of which : Norway Sweden. United States OPEC countries of which : Algeria Kuwait Libya Saudi Arabia Venezuela Ex - USSR Romania 5. 6. Other Eastern Europe countries Other countries of which : • Egypt 1985 * Mta 1990 Mta 1994 Mta 166. 4 91. 7 179. 5 165. 4 100 89. 2 100 76. 0 100 17. 3 19 24. 6 27 20. 4 27 2. 7 4. 5 6. 9 3 5 8 6. 3 5. 5 8. 1 7 6 9 6. 6 5. 4 6. 5 28. 6 31 28. 4 32 22. 2 8. 6 6. 7 2. 7 3. 0 4. 5 9 7 3 3 5 7. 7 5. 3 5. 2 6. 6 2. 6 ) 9 6 6 7 3 8. 4 0. 7 4. 0 4. 4 3. 2 22. 5 25 17. 8 20, 10. 4 4. 0 6. 0 4 7 2. 4 5. 2 13. 3 14 10. 8 0. 5 1 0. 5 3 6 12 1 9 7 9 29 11 1 5 6 4 14 1 2 27 3 TOTAL EXPORTS of which : , United States 123. 4 9. 8 157. 5 12. 6 NET IMPORTS/(EXPORTS) 43. 0 22. 0 (0. 2) For 1985, EU - 12 does not include ex-GDR. S oi i r c pc • I PA Ç t o t i c t i rc i nH F i i r o < ; t at TART. R R? Z 0. 9 1. 2 20. 9 2. 1 165. 6 12. 1 EU - 1? - Evolution of total gasoline trade 1985 - 1990 - 1994 1985 * Mta 1990 Mta 1994 Mta TOTAL IMPORTS 17. 2 28. 4 22. 5> EXTRA - EU imports (1 +2 + 3 + 4 + 5 + 6) 1. OECD countries of which : Norway. Sweden. United States OPEC countries of which : Algeria Kuwait Libya Saudi Arabia Venezuela Ex - USSR Romania 5. 6. Other Eastern Europe countries Other countries of which : • Egypt 4. 4 100 7. 9 100 5. 1 100 1. 5 0. 1 0. 5 0. 1 0. 4 0. 1 0. 1 0. 2 0. 0 34 2 11 2 9 2 2 5 0 1. 0 23 0. 7 16 2. 7 1. 2 0. 5 0. 4 1. 7 0. 6 0. 2 0. 2 0. 6 0. 0 0. 8 0. 4 0. 5 34 15 6 5 22 8 3 3 8 0 2. 3| 0. 9! 0. 9| 0. 0' 0. 3! O. 2! 0. 01 0. 1 10 0. 1 0. 0' 5 6 45 18 18 0 6 4 0 2 2 0 0. 8 18 1. 8 23 2. 4 O. Oi 47 0 TOTAL EXPORTS of which :. United States 23. 9 5. 9 NET IMPORTS/(EXPORTS) (6. 7) 35. 3 5. 1 (6. 9) 37. 5i 1 1 6. 81 (15. 0) For 1985, EU - 1 2 does not include ex-GDR. Sources : IEA Statistics and Eurostat TABLE B. 3 3 FM - 12 - Evolution of naphtha trade 1985 - 1990 - 1994 TOTAL IMPORTS EXTRA - EU imports (1 +2 + 3 + 4 + 5 + 6) 1. OECD countries of which : Norway Sweden. United States OPEC countries of which : Algeria Kuwait Libya Saudi Arabia Venezuela 3. Ex - USSR 4. 5. 6. Romania Other Eastern Europe countries Other countries of which : • Egypt 1985 Mta 21. 9 1990 Mta 1994 Mta 24. 3 22. 8" 16. 5 100 16. 5 100 13. 9| 100 2. 7 0. 5 0. 2 0. 2 6. 5 2. 9 1. 4 1. 1 0. 5 0. 0 4. 8 0. 8 1. 7 0. 3 16 3 1 1 40 18 8 7 3 0 29 10 2 3. 1 0. 5 0. 2 0. 6 7. 2 2. 2 2. 1 1. 3 1. 3 0. 2 2. 9 0. 3 0. 0 3. 0 0. 3 14. 7 0. 7 19 3 1 4 43 13 13 8 8 1 18 2 0 18 2 1. 6] 12 3 2 1 54 29 4 7 13 0 2 0 0 32 6 0. 4! 0. 3! 0. 1 7. 5! 4. 1 0. 5; 1. 0] 1. 8Î 0. 0| 0. 3! O. O; O. o! 4. 5J O. 9! 13. 4-1 0. 51 TOTAL EXPORTS of which :. United States 12. 0 1. 0 NET IMPORTS/(EXPORTS) 9. 9 9. 6 9. 4i * For 1985. EU - 12 does not include ex-GDR. Sources : IEA Statistics and Eurostat TABLE B. 4 4 F il - 12 - Evolution of q a s / d i e s el oil t r a de 1 9 85 - 1 9 90 - 1 9 94 1985 Mta 59. 4 1990 Mta 1994 Mta 55. 6 47. 7 34. 1 100 30. 7 100 20. 2 100 TOTAL IMPORTS EXTRA - EU imports (1 +2 + 3 + 4 + 5 + 6) 1. OECD countries of which : Norway. Sweden. United States OPEC countries of which : Algeria Kuwait Libya Saudi Arabia Venezuela 5. 1 1. 3 2. 1 0. 9 9. 6 3. 4 2. 8 0. 7 0. 6 1. 2 15 4 6 3 28 10 8 2 2 4 33 3. Ex - USSR 11. 3 4. Romania Other Eastern Europe countries Other countries of which : • Egypt TOTAL EXPORTS of which :. United States 5. 5 16 0 2. 6 0. 0 33. 7 0. 3 NET IMPORTS/(EXPORTS) 25. 7 6. 5 2. 4 2. 4 0. 8 21 8 8 3 7. 8 26 8 7 5 4 2 31 5 8 2. 6 2. 1 1. 6 1. 1 0. 4 9. 5 1. 5 2. 6 2. 8 40. 5 1. 8 15. 1 6. 5 2. 5 2. 4 0. 8 2. 8 1. 1 0. 2 0. 7 0. 7 0. 0 6. 0 0. 4 0. 4 32 12 12 4 14 5 1 3 3 0 30 2 2 4. 1 20 48. 7 1. 5 (1. 0) * For 1985. EU - 12 does not include ex-GDR. Sources : IEA Statistics and Eurostat TART F R S S Fil - 12 - Evolution of residual fuel oil trade 1 9 85 - 1 9 90 - 1 9 94 1985 * Mta 1990 Mta 1994 Mta TOTAL IMPORTS EXTRA - EU imports (1 +2 + 3 + 4 + 5 + 6) 1. 2. OECD countries of which : Norway Sweden. United States OPEC countries of which : Algeria Kuwait Libya Saudi Arabia Venezuela 3. Ex - USSR 4. Romania 5. 6. Other Eastern Europe countries Other countries of which : • Egypt 45. 3 25. 4 3. 2 0. 2 1. 4 1. 4 9. 1 0. 6 2. 3 0. 5 1. 1 3. 3 5. 1 2. 4 5. 6 0. 1 TOTAL EXPORTS of which :. United States 33. 3 1. 6 NET IMPORTS/(EXPORTS) 12. 0 40. 2 42. 1 100 21. 2 100 21. 5] 100 13 1 6 6 36 2 9 2 4 13 20 22 0 4. 5 0. 9 2. 1 0. 3 7. 6 0. 6 0. 9 1. 8 1. 8 1. 9 4. 1 0. 1 1. 7 3. 2 0. 2 38. 5 3. 6 1. 7 4. 0| 19 21 4 10 1 36 3 4 8 8 9 1. 3! 1. 5] 0. 7I 7. 5| l. o! 1. 5] 0. 8! 3. 0] 19 3. 7! 1 8 0. 3| 0. 5] 6 7 3 35 5 7 4 14 17 1 2 15 5. 5! 26 1. 1 37. 81 i i 2. 8' 4. 3i For 1985. EU - 12 does not include ex-GDR. Sources : IEA Statistics and Eurostat TABLE B. 6 0 WORLD PROVEN CONVENTIONAL OIL RESERVES AT CURRENT MARKET PRICES 1100 1000 i 900 1 800 H u u a CO s 700 H 600 H 500 H 400 H 300 H 200 H 100 i Source: BP Statistical Review MM Proven Reserves R/P Ratio CHART B. l ^P DISTRIBUTION OF WORLD OIL RESERVES END 1994 Asia & Australasia 4% Africa 6% North America 3% Latin America 13% OECD Europe 2% Former Soviet Union 6% CHART B. 2 Middle East 66% Total Reserves = 137 Bn. tonnes Source: BP Statistical Review ^ WORLD OIL SUPPLY OPEC Supply 31. 5 Mb/d 17 Mb/d Non-OPEC Supply 70 60 -f 50 4 40 4- 5 30 4- 20 4 10 + 0 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 CHART B. 3 -$ OPEC SHARE OF WORLD OIL PRODUCTION CRUDE OIL PRICES 1970 to 1994 OIL IMPORT DEPENDENCY EUROPEAN UNION 15 1990 1992 1995 2000 2005 Source: European Commission Estimates ® EU HEU plus Norway] CHART B. 6 90% 30% 20% 0% ^ AVERAGE API VALUES OF CRUDE OIL SUPPLIES IN THE EU 1985 - 1995 38 37 36 35 34 33 32 JLU. ll. LLL l l | l l l l l l l l l l l l l ll L | I I I ' ! l | l i m i l l l l l | l l l l l l l l l l l |l I ll III I I II JAN JAN JAN JAN JAN I 85 I 86 I 87 1 88 I 89 JAN JAN I 90. I 91 JAN ! 92 JAN I. 93 JAN I 94 JAN I 95 S o u r ce : C r u de Oil R e g i s t er w CHART B. 7 GROSS ENERGY CONSUMPTION 1995 EUROPEAN UNION 15 RENEWABLES 50/0 74 M t 0e NUCLEAR 15% 205 Mtoe 574 Mtoe 277 Mtoe TOTAL = 1369 Mtoe < SOLIDS 17% 239 Mtoe CHART C. l GROSS ENERGY CONSUMPTION 2005 EUROPEAN UNION 15 RENEWABLES 7o/o 102 Mtoe NUCLEAR 14% 212 Mtoe 606 Mtoe TOTAL 1521 Mtoe SOLIDS 16% 237 Mtoe CHART C. 2 Oil Product Demand European Union 15 • rm wM HI mszzi. 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Commission Estimates d Others • Fuel oil S Middle distillates H Gasolines CHART C. 3 700000 600000 + 500000 400000 + 300000 200000 + 100000 + Ç* Demand Barrel Shape - W. Europe INCREMENTAL OIL PRODUCT DEMAND European Union 15 Excludes LPG and Refinery Gases 95/92 2000/95 2005/00 Source: Commission Estimates ^Gasolines S Middle distillates • Fuel oil DOthers CHART C. 5 12000 loooo 4 8000 H 6000 4000 •] 2000 •2000 «•o Total Products Trade European Union 12 1980 1982 1984 1986 1987 1988 1989 1990 1991 1992 1993 1994 Source: IEA Imports • Exports CHART C. 6 IV Net Exports Mt Gasoline Net Exports European Union 12 Consumption Mt 1980 1982 1984 1986 1987 1988 1989 1990 1991 1992 1993 1994 Source: IEA [ M i N et Exports -*-Consumption] CHART C. 7 o Net Exports Mt Gas Oil Net Exports European Union 12 Consumption Mt * r 200 1980 1982 1984 1986 1987 1988 1989 1990 1991 1992 1993 1994 Source: IEA R> mmi Net Exports —X—Consumption CHART C. 8 Net Exports Mt Fuel Oil Net Exports European Union 12 Consumption Mt 210 1980 1982 1984 1986 1987 1988 1989 1990 1991 1992 1993 1994 Source: IEA Ë212Î Net Exports —*— Consumption! CHART C. 9 So 5o Maximum Sulphur Contents for Gas Oil TABLE D. l Directive Product 93/12/EEC of 23. 03. 1993 93/12/EEC of 23. 03. 1993 Automotive Gas Oil Non- Automotive Gas Oil 1 % Sulphur Content fby weight] </= 0. 2% by 01. 10. 1994 </= 0. 05% by 01. 10. 1994 </= 0. 2% by 01. 10. 1994 1 Maximum Lead Contents for Petrol TABLE D. 2 Directive 85/210/EEC of 20. 03. 1985 85/210/EEC of 20. 03. 1985 Product Unleaded Petrol Leaded Petrol 1 [ Lead Content fgms/litrel </= 0. 013 g/1 by 01. 04. 1990 </= 0. 15 g/1 by 01. 01. 1986 Maximum Benzene Content of Petrol TABLE D. 3 Directive Product Benzene Content fby volume]. 85/210/EEC of 20. 03. 1985 1 Petrol </= 5% from 01. 10. 1989 1 ^ ENVIRONMENTAL INVESTMENT COSTS Measure Some Recent Measures: TABLE D. 5 Investment Cost (ECUbn) Reduction of sulphur level in gasoline to 0. 05 % Reduction of sulphur level in diesel to 0. 05 % Reduction of hydrocarbons (VOC) emissions by Stage-I (Costs for changing from top to bottom loading excluded) 2. 5 3 - 5. 0. 8 Total Some Recent Measures: 6. 3 - 8. 3 Potential Measures: Reduction of benzene level in gasoline to 1 % Reduction of gasoline volatility (RVP) by 10 kPa Reduction of sulphur level in gasoline to 200 ppm Reduction of sulphur level in gasoline from 200 to 50 ppm Reduction of sulphur level in diesel to 200 ppm Increase of diesel cetane number to 52 Increase of diesel cetane number from 52 to 58 Reduction of diesel FBP (T95: 340 °C) Reduction of sulphur level in inland heavy fuel oil to 1 % Reduction of sulphur level in bunker fiiel to 1. 5 % for 30 % of demand Application of strict BAT to refinery emissions over existing measures Reduction of hydrocarbons (VOC) emissions by Stage II Reduction of sulphur level in heating gas oil to 0. 1% 6 -7 1. 5 1 4 6 1. 5-2 15 3 * 8 - 10 38-39. 5 7 - 12 1. 5-2. 5 8 - 10 1-1. 5 1. 5-2 Total Potential Measures: 27 - 29 57. 0 - 67. 5 Grand Total All Measures: 63. 3 - 75. 8 Source: Industry Figures and ^Commission updates based on latest available Auto Oil Programme Results Xh E U - 15 DESULPHURISATION CAPACITY OF MIDDLE DISTILLATES ( m i l l i on m e t r ic t o n s / y e a r) BE DK. DE EL ES FR IR IT NL PO UK SF SV OS EU 1. 1. 1995 12. 4 2. 4 2 7. 8 3. 8 16. 4 24. 0 0. 3 27. 1 15. 2 2. 6 23,4 3. 7 6. 3 4. 2 169. 6 S o u r c es : EC R e g u l a t i on 1 0 5 6 / 72 & N a t i o n al A d m i n i s t r a t i o ns TABLE D. 6 EU-12 REFINERY STRUCTURE EVOLUTION 1 9 8 0 - 1 9 8 8 - 1 9 95 N u m b er & C a p a c i ty of R e f i n e r i es by T y pe ( S i t u a t i on at 1st J a n u a r y) R e f i n e ry T y pe No 1980 P r i m a ry Distil. C a p a c i ty m ta % No 1988 P r i m a ry Distil. C a p a c i ty m ta % No 1 9 95 P r i m a ry Distil. C a p a c i ty m ta % S l ni p 1 e 62 2 49 27 16 43 7 14 37 S e m i- c o m p l ex 24 148 16 20 89 15 13 52 6 9 C o m p le x 55 523 57 58 460 78 66 506 85 T o t al of w h i c h: R e f i n e r i es >1 m ta 14-1 9 20 100 94 592 100 93 5 95 100 129 9 15 90 590 90 5 93 R e f i n e ry t y pe d e f i n i t i on : S i m p l e ' r e f i n e ry : p r i m a ry d i s t i l l a t i on p l u s, w h e re a p p r o p r i a t e, ' S e m i — c o m p l e x ' r e f i n e ry ' C o m p l e x ' r e f i n e ry : ' s i m p l e' or h y d r o d e s u l p h u r i z a t i on r e f o r m i ng a nd : ' s i m p l e ' p l us v i s b r e a k i ng t h e r m al o t h er c r a c k i ng ' s e m i - c o m p l e x ' p l us c r a c k i n g , h y d r o c r a c k i ng a n d / or a n d / or c a t a l y t ic c o k i ng S o u r ce : C o m m i s s i on - DGXVII-B2 TABLE E. l 2G REFINING CAPACITY IN THE E. U. AT 1. 1. 1995 (capacity in service in million tons per a n n u m) ATMOS. DIST. REFOR. HYDRO. CRACK. CAT. CRACK. THERM. VIS- COKING CRACK. BREAK. BE DK DE EL ES FR IR IT NL PO UK SF SV OS EU 34. 5 9. 2 113. 1 18. 2 60. 0 90. 4* 2. 8 102. 3 59. 6 14. 4 90. 7 11. 0 21. 0 10. 0 4. 7 1. 4 17. 6 2. 1 8. 0 11. 0 0. 6 12. 0 7. 3 2. 2 16. 4 2. 1 3. 2 1. 4 - - 8. 6 1. 3 0. 7 0. 8 7. 1 * 5. 1 0. 5 2. 5 1. 1 - - ' 5. 9 - 15. 4 3. 0 8. 4 18. 2, - 14. 7 7. 5 1. 7 23. 7 2. 7 1. 5 1. 3 - 1. 9 3. 9 - - - 6. 2 3. 1 - 2. 2 - 1. 4 0. 3 4. 2 2. 2 10. 9 2. 6 8. 4 8. 1 - 15. 9 4. 1 1. 4 3. 1 1. 9 2. 3 1. 0 5. 0 1. 5 , - 2. 6 2. 1 3. 3 637. 2 90. 0 27. 7 104. 0 19. 0 66. 1 14. 5 * of which 5. 9 m ta in r e s e r v e, i m m e d i a t e ly u s e a b le S o u r c es : N a t i o n al A d m i n i s t r a t i o ns & EC R e g u l a t i on 1 0 5 6 / 72 TABLE E. 2 E U - 15 - CONVERSION CAPACITY ( m i l l i on m e t r ic t o n s / y e a r) CAT. CRACKING VISBREAKING HYDROCRACKING THERM. CRACK. COKING FLEXICOKING ) ) ) TOTAL CAPACITY' CATC RACK. EQUIV* AS % CDU CAPACITY 1985 8 8. 0 5 2. 0 11. 0 1990 8 8. 2 6 3. 8 23. 2 1 9 95 104. 0 6 6. 1 2 7. 7 27. 8 28. 0 3 3. 5 1 7 8. 8 2 0 3. 2 2 3 1. 3 146. 21 171 28 199 31 * R a t i os u s ed a re : Vis b r e a k er 0. 33 T h e r m al C r a c k er 0. 65 --. H y d r o c r a c k er 1. 3 1. 7 - C o k er - S o u r c es : N a t i o n al A d m i n i s t r a t i o ns & EC R e g u l a t i on 1 0 5 6 / 72 TABLE E. 3 TAXES AND DUTIES AT FEBRUARY 1996 - ECUS CD 3 a 5) <u CO 21. 0 21. 0 21. 0 21. 0 21. 0 21. 0 21. 0 21. 0 546. 0 485. 3 302. 0 14. 2 0. 0 18. 1 19. 4 6. 5 w ro E c «J O 25. 0 25. 0 25. 0 25. 0 25. 0 25. 0 25. 0 25. 0 0. 0 448. 5 300. 4 241. 4 208. 5 315. 5 284. 5 284. 5 -a c CO c o a; Û 15. 0 15. 0 15. 0 15. 0 15. 0 15. 0 15. 0 15. 0 573. 0 519. 9 328. 9 42. 4 169. 8 265 15. 9 15. 9 c Q. «/) 16. 0 16. 0 16. 0 16. 0 16. 0 16. 0 16. 0 16. 0 408. 7 375. 3 272. 5 79. 5 31. 5 7. 4 13. 6 13. 6 4) O C 20. 6 20. 6 20. 6 20. 6 20. 6 20. 6 20. 6 20. 6 616. 9 576. 2 354. 4 78. 0 68. 2 0. 0 24. 3 18. 0 XJ c ra a) 21. 0 21. 0 21. 0 12. 5 21. 0 12. 5 12. 5 12. 5 380. 6 349. 3 302. 5 50. 2 69. 4 22. 9 17. 8 17. 8 ÛJ 18. 0 18. 0 18. 0 18. 0 18. 0 18. 0. 18. 0 18. 0 410. 6 358. 9 248. 9 135. 8 5 82 12. 9 42. 0 42. 0. 5 19. 0 19. 0 19. 0 19. 0 19. 0 10. 0 10. 0 10. 0 537. 3 494. 2 361. 3 361 3 157. 3 173 7 43. 5 21. 8 5 o JO E 0) X 15. 0 12. 0 15. 0 12. 0 6. 0 6. 0 12. 0 12. 0 415. 9 361. 7 263. 3 5. 4 56. 8 0. 0 14. 2 6. 5 •o c J2 a> z 17. 5 17. 5 17. 5 17. 5 17. 5 17. 5 17. 5 17. 5 608. 7 542. 0 327. 1 81. 6 29. 1 0. 0 31. 5 31. 5 JC o 55 0) O 20. 0 20. 0 20. 0 20. 0 20. 0 20. 0 O Q. 17. 0 17. 0 5. 0 17. 0 17. 0 5. 0 5. 0 08. 02. 96 495. 1 457. 8 326. 1 89. 0 0. 0 28. 1 12. 8 430. 2 300. 7 79. 0 104. 8 0. 0 37. 7 Ê o to. 22. 0 22. 0 22. 0 22. 0 22. 0 a> o> c > CO 25. 0 25. 0 25. 0 25. 0 25. 0 22. 0 25. 0 548. 0 291. 2 36. 5 0. 0 0. 0 479. 1 291. 4 189. 3 162. 4 131. 3 36. 9 213. 3 17. 5 17. 5 17. 5 8. 0 17. 5 8. 0 17. 5 17. 5 463. 3 406. 2 406. 2 27. 6 333. 6 0. 0 21. 6 21. 6 1. VAT(%) Premium gasoline Unleaded gasoline Automotive dieseloil Heating gasoil LPG (Vehicles) LPG (Heating) Heavy fueloil HTS Heavy fueloil BTS 2. EXCISETAX(1000L Premium gasoline Unleaded gasoline Automotive dieseloil. Heating gasoil LPG (Vehiclas) (4) LPG (Heating) (T) Heavy fueloil HTS (T)" Heavy fueloil BTS (T) DAN MARK: Fuel oil lourd - Depuis le 1er Janvier 1993, le montant de la taxe récupérable par le secteur industriel s'élève à 1820 CD par tonne. Heavy fuel oil - As from 1 January 1993 the tax récupérable by the industrial sector amounts to 1820 CD per ton. Premium gasoline - Cancelled as from 1/1/96 (1) ROYAUME-UNI: par/by tonne Exchange rates as at 08. 01. 1996 1 ECU = 13. 2595 OS. 38 7384 BEF, 1. 88485 DM, 7. 29054 DKR, 158 542 PTA, 5. 7135 FMK. 6 46731 FF,. 844401 UKL, 309. 318 DRA. 818238 IRL, 2068. 64 LIT, 38. 7384 LUF, 2. 11041 HFL, 195. 925 ESC, 8. 6825 SKR ?0 T A B LE E. 4 E U - IS DISTILLATION CAPACITY UTILIZATION* EVOLUTION 1 9 8 5 - 1 9 94 MIO TONS 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Dist. Capacity(mio t) Crude I n t a k e ( m io t) •*— Utilization rate(%) c r u de onl}7, mid y e ar c a p a c i ty o CHART E. l E U - 15 REFINING UPGRADING CAPACITY IN CAT. CRACKING EQUIVALENT 1985 21 146 1990 28 1995 31 171 199 35 30 25 20 15 10 5 % % OF CDU CAPACITY 0 40 80 120 160 200 MIO/TONS YEAR. M CAT. CRACKING EQUIV. 240 S o u r c es : Nat. Admin. & EC R e g. 1 0 5 6 / 72 CHART E. 2 REFINING MARGINS 1 9 8 8 - 1 9 95 NW EUROPE & MEDITERRANEAN ZONES $/bbl (Quarterly Average) "*— IEA-NWE-BRENT +- IEA-NWE-HYDROSKIM -*- WMC-NWE-ARAB L - 0- WMC-MED-ARAB L 1 2 3 4 1 2 3 4 1 23 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 34 I 95 I I 88 I 90 I 94 I 89 I 91 I 93 I 92 10 9 8 7 6 5 4 3 2 1 0 -1 -2 WMC : Wood M a c k e n z ie CO CHART E. 3 BRENT/DUBAI & LEADED GASOLINE/FUEL OIL PRICE DIFFERENTIALS 14 barrel * B r e n t / D u b ai Differ. ~ *~ Gasoline/FO l%s Dif. ** * * **. * ** * * JAN APR JUL OCT JAN APR JUL OCT JAN APR JUL OCT JAN APR JUL OCT I 92 I • 93 I 94 I- 95 S o u r ce : IEA M o n t h ly Oil M a r k et R e p o rt Oo CHART E. 4 FUTURE NET EXPANSION OR NET REDUCTION IN THE REFINING CAPACITY OF THE E U - 15 (thousand metric tons/year) 1995 1996 1997 After or date not defined ATMOS. DIST. - 2400 - 2300 + 4400 + 1600 REFORMING + 100 HYDROCRACK. - 280 + 700 CAT. CRACK. + 580 + 1800 + 4700 THERM. CRACK. + 273 VISBREAKING COKING DESULPHURIS. OF MID. DIST. - 300 + 100 + 1000 + 6 6 72 +17029 + 1805 + 1040 SOURCE : EC REGULATION 1 0 5 6 / 72 - QUESTIONNAIRES OF BEGINNING 1995 TABLE E. 5 3e! OPEC FOREIGN REFINING Net S h a re in t h o u s a nd b a r r e l s / d ay as of end 1995 Iran Kuwait Libya Saudi Arabia U. A. E Venezuela Total OPEC Asia/ Pacific Western Europe USA Total (3 reg. ) 32 152 184 210 234 50 142 230 866 32 210 234 502 142 980 300 750 1 050 2 100 Total of the region 14 803 14 151 15 354 44 308 OPEC s h a re in t he region 1. 2% 6. 1% 6. 8% 4. 7% Source : DGXVII on the basis of OPEC official data & p r e ss a r t i c l es TABLE E. 6 IN U lYJLO J U JU Wl 1 J U1 H WL 1VJUJL Z\JLJU W ^J 1 JUJU l O J L IN l l l JU JU ^ J L^ (in t h o u s a nd of u n i ts at year end) 1985 1987 1989 1991 1992 1993 1994 7. 3 3. 6 19. 8 6. 8 5. 2 34. 6 3. 4 36. 4 8. 1 1. 9 21. 1 2. 0 4. 4 4. 1 6. 7 3. 4 20. 8 6. 3 5. 2 31. 1 3. 3 34. 7 7. 6 1. 8 20. 2 2. 0 4. 3 4. 1 6. 5 3. 2 19. 9. 6,4 5. 3 27. 7 3. 2 33. 9 6. 9 1. 8 19. 8 1. 9 4. 2 4. 0 6. 0 2. 9 18. 9 6. 4 5. 7 22. 6 2. 7 30. 4 6. 0 1. 8 19. 3 2. 0 4. 0 3. 9 5. 7 2. 9 18. 8 6. 5 5. 8 21. 2 2. 8 30. 1 5. 6 2. 0 18. 5 1. 9 3. 8 3. 8 5. 5 2. 8 18. 5 6. 6 6. 3 19. 8 2. 8' 29. 9 5. 1 2. 1 18. 0 1. 9 3. 8 3. 7 5. 4 2. 7 18. 3 6. 8 6. 6 19. 1 2. 7 28. 8 4. 1 2. 3 17. 0 1. 9 3. 6 3. 6 158. 7 151. 5 144. 7 132. 6 129. 4 126. 8 122. 9 BE DK DE EL ES FR IR IT NL PO UK SF sv OS EU Source : National Statistics TABLE F. l MARKETING OF. OIL PRODUCTS IN THE E U - 15 NUMBER OF PETROL RETAIL OUTLETS 8 5 - 94 T h o u s a nd of u n i ts at year end 180 160 140 120 100 80 60 40 h 20 0 1985 1986 1987 1988 1989 1990 1991 1992 1993 =^^W 1994 158. 7 157. 3 151. 5 147. 7 144. 7 138. 6 132. 6 129. 4 126. 8 122. 9 Source : National Statistics CHART F. l E U - 12 EVOLUTION 1 9 0 6 - 1 9 94 OF AVERAGE THROUGHPUT PER SERVICE STATION MILLIONS OF LITRES PER ANNUM 1986 1987 1988 1989 1990 1991 1992 1993 1994 Source : Wood Mackenzie CHART F. 2 ISSN 0254-1475 COM(96) 143 final DOCUMENTS EN 12 Catalogue number : CB-CO-96-172-EN-C ISBN 92-78-02657-3 Office for Official Publications of the European Communities L-2985 Luxembourg

Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 3438/92 laying down special measures for the transport of certain fresh fruit and vegetables originating in Greece as regards their period of application

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* * * ** COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 03. 04. 1996 COM(96) 142 final 96/0100 (CNS) REPORT FROM THE COMMISSION TO THE COUNCIL, on the cost of the aid measures for the transport of certain fruit and vegetables in 1994 provided for in Council Regulation (EEC) No 3438/92 Proposal for a COUNCIL REGULATION (EQ amending Regulation (EEC) No 3438/92 laying down special measures for the transport of certain fresh fruit and vegetables originating in Greece as regards their period of application (presented by the Commission) EXPLANATORY MEMORANDUM Council Regulation -(EEC) No 3438/92, as last amended by Regulation (EC) No 456/95, provides for the grant in 1992, 1993 and 1994 of a special temporary allowance for the transport of certain Greek fresh fruit and vegetables to Community Member States other than Italy, Spain and Portugal as a result of the need for these products to avoid the territory of the former Yugoslavia. Article 2(4) of Council Regulation (EEC) No 3438/92 provides that the Commission is to present a report to the Council on the cost of the aid measures for the transport of certain fruit and vegetables. The report covering consignments in 1991 (governed by Council Regulation (EEC) No 525/92) and 1992 was presented in document COM(94) 89 final. The report concerning consignments in 1993 is contained in document COM(94) 534 final. The current report concerns the cost of the measures in 1994, amounting to some ECU 9 million, which were borne by the EAGGF. In view of the fact that transport conditions in some territories of the former Yugoslavia have not yet returned to what they were before the war, it is proposed also that the Council prolong the measure for the first six months of 1996. 4. Since this exceptional measure for the transport of certain fresh fruit and vegetables is a matter falling within the Community's exclusive jurisdiction, the measures must be adopted by the Community. COMMISSION KKPOKT TO THE COUNCIL on the cost of the aid measures for (he transport of certain fruit and vegetables in 1994 provided for in Council Regulation (EEC) No 3438/92 The Commission is required under Article 2(4) of Council Regulation (EEC) No 3438/92', as last amended by Regulation (EC) No 456/952, to present a report to the Council on the cost of tho aid measuroo for tho transport of certain fruit and vegetables. The first report covering 1991 and 1992 was presented on 22 March 1994 (COM(94) 89 final). The second report covering 1993 was presented on 29 November 1994 (COM(94) 534 final) The present report concerns the cost of the measures in 1994. I. Background The conflict in Yugoslavia, which erupted in 1991, hampered the transport of certain Greek agricultural products destined for other Community Member States, in particular fruit and vegetables, which are highly perishable. As a result of this exceptional situation, unprecedented since the introduction of the common agricultural policy, the Council took a decision, in respect of fruit and vegetables covered by Council Regulation (EEC) No Ï035/723, as last amended by Regulation (EC) No 1363/95*, on account of their perishability, to compensate for the costs arising as a result of the need to avoid the territory of the former Yugoslavia 2. Regulatory framework Council Regulation (EEC) No 3438/92 provides for the grant of a special temporary allowance in 1992 1993 1994 and 1995 on consignments made bv wauon lorrv or vessel to \4oml-\fir Cto+<ic rt+tior tVioti Itolir Çr»a»rt on/4 Pr»r+ii»tol I»IV. IIIU^I u i u i co f u i vi mem jitiiy, u p u ui unvi « ui lUgui. The Commission subsequently adopted a number of implementing regulations, including Regulation (EC) No 1402/945 concerning consignments in 1994. The aid amount that year was ECU 4 per 100 kg net weight. OJ No L 350. 1. 12. 1992, p. I OJ No L 47. 2. 3. 1995, p. 1. OJNoL 118,20. 5. 1972, p. 1. OJ NO L 132, 16. 0. 1993, p. R. OJ NoL 154, 2. 1. 6. 1994, p. 4. The competent Greek authorities were instructed to examine aid applications and their admissibility and to proceed with payments They were instructed also to carry out the necessary checks on these operations Financing is provided by the European Agricultural Guidance and Guarantee Fund (EAGGF), Guarantee Section. The Greek authorities are required to notify the Commission of the quantities qualifying for the transport aid. 3 Cost of the aid The I mures below have been nreoaied on the basis of information sent bv Greece on 19 January 1996 concerning consignments in 1994 which qualified for transport aid The data supplied to the Commission are broken down by product, means of transport and Member State of destination In 1994, aid was granted in respect of 217 209 136 kg of fruit and vegetables, which was 6% less than in 1993. The cost of the measure can be put therefore at ECU 8 688 365. 4. Summary Table I gives a breakdown by product of the quantities dispatched. Grapes are the main product that benefited from the measures, accounting for 37% of the consignments on which the allowance was granted. Next come peaches and nectarines (16%), followed by cucumbers (12%) (icrmany was by far the principal consignee Member Slate, receiving 71% of the quantities dispatched, followed by the Netherlands (16%) and the United Kingdom (10%) (see Table 2) Consignments by lorry represented 96% of the quantities dispatched, while those by wagon and vessel represented only 3% and 1% respectively. Consignments of Greek fruit and vegetables which qualified for transport aid in 1994 Table 1 Percentage - (%) Expenditure (ECU) Product Grapes Peaches Apricots Asparagus Kiwifruit Oranges Mandarins Cherries Plums Mirabelles Aubergines Peppers Melons Lemons Cucumbers Watermelons Others Quantity (kg) 79 289 033 34 095 422 10 651 480 18 395 840 10 164 459 7 289 249 3 318 227 7 717 640 63 650 26 336 13 440 1 041 173 46 966 2 198 25 800 430 19 257 407 36 186 37 16 5 8 5 3 2 4 0 0 0 0 0 0 12 9 0 Total 217 209 136 100 3 171 561 1 363 817 426 059 735 834 406 578 291 570 132 729 308 706 2 546 1 053 538 41 647 1 879 88 1 032 017 770 296 1 447 8 688 365 Table 2 Consignments of Greek fruit and vegetables which qualified for transport aid in 1994 by Member State of destination Member State of destination Quantity (kg) Percentage (%) D NL UK F DK I B 148 450 371 39 719 204 24 902 615 2 104 384 365 062 1 667 440 1 70. 5 16. 4 10. 0 1. 5 1. 4 0. 3 I | ^ Proposal for a COUNCIL REGULATION (EC) No /96 96/0100(CNS amending Regulation (EEC) No 3438/92 laying down special measures for the transport of certain fresh fruit and vegetables originating in Greece as regards their period of application THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission', Having regard to the opinion of the European Parliament, Whereas Regulation (EEC) No 3438/923 lays down special measures for the transport of certain fresh fruit and vegetables originating in Greece dispatched in the period 1992 to 1995 to Member States other than Italy, Spain and Portugal; Whereas, since transport conditions in certain territories of the former Yugoslavia continue to be poor despite the cessation of hostilities in the region, these measures, covering temporary assistance to the operators involved in avoiding those territories, should be extended for a period of six months, HAS ADOPTED THIS REGULATION: OJ No C O J N o. OJ No L 350, 1. 12. 1992, p. 1. Regulation last amended by Regulation (EC) No 456/95 (OJ No L 47, 2. 3. 1995, p. I. ). 6 Article 1 Regulation (EEC) No 3438/92 is hereby amended as follows. I Article 2(1) and (2) is replaced by the following: "1. The special temporary allowance shall be granted from I January 1992 to 30 June 1996 for the marketing of the fruit and vegetables referred to in Article 1. 2 The amount of the special temporary allowance shall be determined in such a way as to contribute to meeting the additional transport costs arising as a result of the poor transport conditions obtaining in certain regions of the former Yugoslavia. It may be fixed on a flat-rate basis. " 2. The first indent of Article 3 is deleted Article 2 This Regulation shall enter into force on the date of its publication in the Official Journal of the European Communities. It shall apply from 1 January 1996. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council % FINANCIAL STATEMENT BUDGET HEADING: 1509 Date: 13 February 1996 APPROPRIATIONS: B96: ECU 57 million TITLE: Proposal for a Council Regulation amending Regulation (EEC) No 3438/92 laying down special measures for the transport of certain fresh fruit and vegetables originating in Greece as regards the period of their application LEGAL BASIS: Article 43 of the Treaty AIMS: To extend the special transport allowance for Greece to 30 June 1996 FINANCIAL IMPLICATIONS: PERIOD OF 12 MONTHS (ECU million) CURRENT FINANCIAL YEAR (96) (ECU million) FOLLOWING FINANCIAL YEAR (97) (ECU million) 5. 0. EXPENDITURE - CHARGED TO THE EC BUDGET (REFUNDS/INTERVENTION) - NATIONAL AUTHORITIES -OTHER 5. 1. REVENUE - OWN RESOURCES OF THE EC (LEVIES/CUSTOMS DUTIES) - NATIONAL 5. 0. 1. 5. 1. 1. ESTIMATED EXPENDITURE ESTIMATED REVENUE 5. 2. METHOD OF CALCULATION: 4. 9 4. 3 0. 6 1998 1999 2000 2001 Quantities forecast for export over the six months: 100 0001 100 000 t x ECU 48. 3/t x 1. 006 = ECU 4. 9 million, of which ECU 4. 3 million = 1996 budget, and ECU 0. 6 million = 1997 budget 6. 0. 6. 1. 6. 2. 6. 3. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? v CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? WILL A SUPPLEMENTARY BUDGET BE NECESSARY? WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/N© YF<UNCi ¥fiS/NO YES/N© OBSERVATIONS ISSN 0254-1475 COM(96) 142 final EN 03 Catalogue number : CB-CO-96-147-EN-C ISBN 92-78-02216-0 Office for Official Publications of the European Communities L-2985 Luxembourg <3

Proposal for a COUNCIL REGULATION (EC) amending Regulation (EC) No. 3074/95 fixing, for certain fish stocks and groups of fish stocks, the total allowable catches for 1996 and certain conditions under which they may be fished

http://publications.europa.eu/resource/cellar/a2302543-b6f3-4e97-bce5-9dd39501fdd2

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I COMMISSION OF THE EUROPEAN COMMUNITIES "* 1 à •6- Brussels, 03. 04. 1996 COM(96) 147 final Proposal for a COUNCIL REGULATION ŒO amending Regulation (EC) No. 3074/95 fixing, for certain fish stocks and groups of fish stocks, the total allowable catches for 1996 and certain conditions under which they may be fished (presented by the Commission) EXPLANATORY MEMORANDUM The present proposal is aimed at introducing three new measures in Council Regulation (EC) No 3074/95, fixing, for certain fish stocks and groups of fish stocks, the total allowable catches (TACs) for 1996 and certain conditions under which they may be fished. These are: A new TAC for Norwegian Spring-spawning herring; this requires also a modification of the reference area for the TAC of North Sea herring; a temporary ban on Baltic cod fisheries, in order to implement the recommendations of the International Baltic Sea Fisheries Commission, and a temporary modification of the conditions under which the TAC for sprat in Skagerrak and Kattegat can be fished, as mesh sizes are concerned. 1. Norwegian Spring-spawning herring. its Since 1994, the stock of Norwegian spring-spawning herring has been expanding geographical distribution which, since the collapse of the stock in the 1970's was confined to the waters under national jurisdiction of Norway. The stock is now occurring both within the waters of a number of States bordering the North-East Atlantic, including Community fishing waters, mainly the waters off the Shetland Islands north of 62° N, as well as in international waters; it has become a straddling fish stock. Assessments made by the Advisory Committee on Fishery Management (ACFM) at the request of the North-East Atlantic Fisheries Commission (NEAFC) suggest that, in view of the nature of this stock and despite remaining uncertainty as to whether and when the stock will actually reach its traditional range of distribution, this stock should henceforth be managed in a cautious way by restricting the total catch to no more than 1,000,000 tonnes. The Community has sought to bring about the necessary conservation measures for the entire stock in the framework of NEAFC, which it considers to be the appropriate regional fisheries organisation to regulate that stock. So far, these efforts have not yet yielded results. Rising tensions over this issue are also due to the fact that the other coastal States involved have unsuccessfully tried to reach an agreement among themselves and that, therefore, those States proceeded to allocate themselves autonomous quotas which, if added together, exceed the total catch recommended by ACFM. While efforts to cooperate in the conservation of this stock continue, both directly by all the coastal States concerned and at the level of NEAFC, it is incumbent upon the Community to forestall unregulated fishing on that stock by Community fishing vessels. It is, therefore, necessary to establish, for 1996, a legal framework within which the fishery can be developed in an orderly manner. This legal framework should comprise a precautionary TAC, which, - 1 - uiuler prevailing circumstances ami with due regard to all relevant sea areas where the Community enjoys either exclusive or equal fishing rights, is justified to be fixed at 15% of the suggested total catch. This TAC should apply to international waters and Community waters of ICES areas I and II. In order to keep consistency, the reference area for the TAC of North Sea herring should therefore exclude any part of area II. 2. Summer ban for Baltic cod. During its 21st session, the International Baltic Sea Fisheries Commission (IBSFC) has recommended a ban on cod fishing from 10 June to 20 August 1996. Given the temporary nature of this measure and its association with the TAC for Baltic cod for 1996, it is believed that the ban should be implemented by means of the TAC regulation, instead of Council Regulation No 1866/86 on technical measures applicable to the Baltic Sea. v Mesh size for sprat in Skagerrak and Kattegat. The fishery for sprat in ICES Division Ilia (Skagerrak and Kattegat) is conducted as a mixed fishery (mixed clupeoid fishery) with 32 mm mesh, under certain special conditions regarding the catch composition by species. According to provisions stipulated in the 1994 Act of Accession, Sweden enjoys a derogation allowing the use of 16 mm mesh in this fishery until 30 June 1996. In recent times, however, the stock of sprat is improving in such a way that it is starting to predominate in the catch. The use of 16 mm would in these circumstances contribute to a better use of the catch possibilities for sprat while minimizing the impact on associated species, and should therefore be implemented on a permanent basis. The Commission is intending to do so in the framework of a major revision of technical measures. In the mean time, in order to better take advantage of the fishing possibilities offered by the TAC regulation for this stock in 1996, and with a view to ensuring continuity of the conditions of fishing of Swedish vessels, a temporary derogation should be implemented allowing the use of 16 mm mesh. This proposal intends to address these matters by modifying Council Regulation (EC) No. 3074/95. 2- Proposal for a Council Regulation (EC) No /96 of 1996 amending Regulation (LC) No. 3074/95 fixing, for certain fish stocks and groups of fish stocks, the total allowable catches for 1996 and certain conditions under which they may be fished THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No. 3760/92 of 20 December 1992 establishing a Community system lor fisheries and aquaculture1, and in particular Article X (4) thereof Having regard to the proposal from the Commission, Whereas under the terms of Article 8 (4) of Regulation (EEC) No 3760/92 it is incumbent upon the Council to establish the total allowable catches (TACs) by fishery or group of fisheries; Whereas Regulation (EC) No. 3074/952 fixes, for certain fish stocks and groups offish stocks, the TACs for 1996 and certain conditions under which they may be fished; Whereas since 1994, the stock of Atlanto-Scandian herring has been continuously extending its area of distribution and is now occurring both within areas under national jurisdiction of a number oï States bordering the North-East Atlantic, including Community fishing waters, as well as in high seas areas; O. J. No L389, of 31. 12. 1992, p. 1 O. J. No L 330,of 30. 12. 1995, p. l J Whereas available scientific information suggests that this stock be managed in a cautious way by ensuring that the spawning stock biomass is maintained above 2. 5 million tonnes; Whereas pending agreement, by way of cooperation between all States concerned, on appropriate conservation and management measures concerning this slock, it is necessary to establish, by way of an autonomous measure, a legal framework which ensures the rational and responsible exploitation of this stock by Community fishing vessels within both Community fishing waters and beyond; whereas that legal framework should consist of a precautionary TAC at a level compatible with scientific advice which, under prevailing circumstances, is justified to be fixed at 150 000 tonnes; Whereas, due to the positive evolution of the stock of sprat in the Skagerrak and the Kattegat, a profitable use of the fishing possibilities allocated to the Union lor 1996 would require fishing with 16 mm mesh; Whereas the International Baltic sea Fisheries Commission has recommended certain seasonal restrictions associated to the cod fishery in the Baltic for 1996; Whereas Council Regulation (EC) No 3074/95 should therefore be amended accordingly, HAS ADOPTED THIS REGULATION ; Article I Council Regulation (EC) No 3074/95 is hereby modified as follows: 1) The following Article shall be inserted after Article 8: H Article 8 bis Fishing for cod shall be prohibited in the Baltic Sea, the Bells and the Oresund from 10 June to 20 August 1996 inclusive. " 2) In the Annex to Regulation (EC) No 3074/95, the heading "Species: Herring, Clupea hiircngu. w /one: lla(l), IVab" shall be replaced by "Species: Herring, Clupea harengus, /one: IVab" 3) Annex I to this Regulation shall replace the corresponding elements of the Annex to Regulation (EC) No 3074/95. 4) Annex II to this Regulation shall be inserted in the Annex to Regulation (EC) No 3074/95. Article 2 This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council, The President. r I Species: Sprat Zone: Ilia Annex I (1) Includes all by-catches of all other species which are caught when fishing toi sprat and which are landed unsorted notwithstanding Article 5. paragraph 2 of this regulation, paragraphs 1 and 2 of Council Regulation (EEC) No 3094/86 of 7 Oclobei 191)0 (O J No I 288. 11 10. 86. p 1 ) I his quota may be fislwd with a mesh si/e of 1 ("> mm (2) No fishing of this quota may take place, in the Skagerrak. within 4 miles of the baselines of the Kingdom of Norway (3) No fishing of this quota may take place, in the Skagerrak. within 12 miles of the baselines of the Kingdom of Norway (*) Precautionary TAC Sprattus sprattus België / Belgique Danmark Deutschland 28810 (1)(2) 60 (1)(3) Irllada Espana France Ireland Italia Luxembourg Nederiand Osterreich Portugal Suomi/Finland Svenge 10900 ( t K 2) United Kingdom FC »AC 3 9 7 7 0 ( 1) 4 3 0 0 0 ( 1 )0 Annex II Species: Herring Zone: Clupea harengus (1 ) (2) Fishing of this stock is not allowed in Community waters Available for all Member States Member States must inform the Commission every tuesday of their landings the preceding week België / Belgique Danmark Deutschland Ellada Espana France Ireland Italia Luxembourg Nederland Osterreich Portugal Suomi/Finland Sverige United Kingdom (1) (1) (1) (1) EC TAC 150. 000 (2) 150. 000 150. 000 ? ISSN 0254-1475 COM(96) 147 final DOCUMENTS EN 03 Catalogue number : CB-CO-96-151-EN-C ISBN 92-78-02447-3 Office for Official Publications of the European Communities L-2985 Luxembourg

REPORT FROM THE COMMISSION TO THE COUNCIL on the cost of the aid measures for the transport of certain fruit and vegetables in 1994 provided for in Council Regulation (EEC) No 3438/92

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* * * ** COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 03. 04. 1996 COM(96) 142 final 96/0100 (CNS) REPORT FROM THE COMMISSION TO THE COUNCIL, on the cost of the aid measures for the transport of certain fruit and vegetables in 1994 provided for in Council Regulation (EEC) No 3438/92 Proposal for a COUNCIL REGULATION (EQ amending Regulation (EEC) No 3438/92 laying down special measures for the transport of certain fresh fruit and vegetables originating in Greece as regards their period of application (presented by the Commission) EXPLANATORY MEMORANDUM Council Regulation -(EEC) No 3438/92, as last amended by Regulation (EC) No 456/95, provides for the grant in 1992, 1993 and 1994 of a special temporary allowance for the transport of certain Greek fresh fruit and vegetables to Community Member States other than Italy, Spain and Portugal as a result of the need for these products to avoid the territory of the former Yugoslavia. Article 2(4) of Council Regulation (EEC) No 3438/92 provides that the Commission is to present a report to the Council on the cost of the aid measures for the transport of certain fruit and vegetables. The report covering consignments in 1991 (governed by Council Regulation (EEC) No 525/92) and 1992 was presented in document COM(94) 89 final. The report concerning consignments in 1993 is contained in document COM(94) 534 final. The current report concerns the cost of the measures in 1994, amounting to some ECU 9 million, which were borne by the EAGGF. In view of the fact that transport conditions in some territories of the former Yugoslavia have not yet returned to what they were before the war, it is proposed also that the Council prolong the measure for the first six months of 1996. 4. Since this exceptional measure for the transport of certain fresh fruit and vegetables is a matter falling within the Community's exclusive jurisdiction, the measures must be adopted by the Community. COMMISSION KKPOKT TO THE COUNCIL on the cost of the aid measures for (he transport of certain fruit and vegetables in 1994 provided for in Council Regulation (EEC) No 3438/92 The Commission is required under Article 2(4) of Council Regulation (EEC) No 3438/92', as last amended by Regulation (EC) No 456/952, to present a report to the Council on the cost of tho aid measuroo for tho transport of certain fruit and vegetables. The first report covering 1991 and 1992 was presented on 22 March 1994 (COM(94) 89 final). The second report covering 1993 was presented on 29 November 1994 (COM(94) 534 final) The present report concerns the cost of the measures in 1994. I. Background The conflict in Yugoslavia, which erupted in 1991, hampered the transport of certain Greek agricultural products destined for other Community Member States, in particular fruit and vegetables, which are highly perishable. As a result of this exceptional situation, unprecedented since the introduction of the common agricultural policy, the Council took a decision, in respect of fruit and vegetables covered by Council Regulation (EEC) No Ï035/723, as last amended by Regulation (EC) No 1363/95*, on account of their perishability, to compensate for the costs arising as a result of the need to avoid the territory of the former Yugoslavia 2. Regulatory framework Council Regulation (EEC) No 3438/92 provides for the grant of a special temporary allowance in 1992 1993 1994 and 1995 on consignments made bv wauon lorrv or vessel to \4oml-\fir Cto+<ic rt+tior tVioti Itolir Çr»a»rt on/4 Pr»r+ii»tol I»IV. IIIU^I u i u i co f u i vi mem jitiiy, u p u ui unvi « ui lUgui. The Commission subsequently adopted a number of implementing regulations, including Regulation (EC) No 1402/945 concerning consignments in 1994. The aid amount that year was ECU 4 per 100 kg net weight. OJ No L 350. 1. 12. 1992, p. I OJ No L 47. 2. 3. 1995, p. 1. OJNoL 118,20. 5. 1972, p. 1. OJ NO L 132, 16. 0. 1993, p. R. OJ NoL 154, 2. 1. 6. 1994, p. 4. The competent Greek authorities were instructed to examine aid applications and their admissibility and to proceed with payments They were instructed also to carry out the necessary checks on these operations Financing is provided by the European Agricultural Guidance and Guarantee Fund (EAGGF), Guarantee Section. The Greek authorities are required to notify the Commission of the quantities qualifying for the transport aid. 3 Cost of the aid The I mures below have been nreoaied on the basis of information sent bv Greece on 19 January 1996 concerning consignments in 1994 which qualified for transport aid The data supplied to the Commission are broken down by product, means of transport and Member State of destination In 1994, aid was granted in respect of 217 209 136 kg of fruit and vegetables, which was 6% less than in 1993. The cost of the measure can be put therefore at ECU 8 688 365. 4. Summary Table I gives a breakdown by product of the quantities dispatched. Grapes are the main product that benefited from the measures, accounting for 37% of the consignments on which the allowance was granted. Next come peaches and nectarines (16%), followed by cucumbers (12%) (icrmany was by far the principal consignee Member Slate, receiving 71% of the quantities dispatched, followed by the Netherlands (16%) and the United Kingdom (10%) (see Table 2) Consignments by lorry represented 96% of the quantities dispatched, while those by wagon and vessel represented only 3% and 1% respectively. Consignments of Greek fruit and vegetables which qualified for transport aid in 1994 Table 1 Percentage - (%) Expenditure (ECU) Product Grapes Peaches Apricots Asparagus Kiwifruit Oranges Mandarins Cherries Plums Mirabelles Aubergines Peppers Melons Lemons Cucumbers Watermelons Others Quantity (kg) 79 289 033 34 095 422 10 651 480 18 395 840 10 164 459 7 289 249 3 318 227 7 717 640 63 650 26 336 13 440 1 041 173 46 966 2 198 25 800 430 19 257 407 36 186 37 16 5 8 5 3 2 4 0 0 0 0 0 0 12 9 0 Total 217 209 136 100 3 171 561 1 363 817 426 059 735 834 406 578 291 570 132 729 308 706 2 546 1 053 538 41 647 1 879 88 1 032 017 770 296 1 447 8 688 365 Table 2 Consignments of Greek fruit and vegetables which qualified for transport aid in 1994 by Member State of destination Member State of destination Quantity (kg) Percentage (%) D NL UK F DK I B 148 450 371 39 719 204 24 902 615 2 104 384 365 062 1 667 440 1 70. 5 16. 4 10. 0 1. 5 1. 4 0. 3 I | ^ Proposal for a COUNCIL REGULATION (EC) No /96 96/0100(CNS amending Regulation (EEC) No 3438/92 laying down special measures for the transport of certain fresh fruit and vegetables originating in Greece as regards their period of application THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission', Having regard to the opinion of the European Parliament, Whereas Regulation (EEC) No 3438/923 lays down special measures for the transport of certain fresh fruit and vegetables originating in Greece dispatched in the period 1992 to 1995 to Member States other than Italy, Spain and Portugal; Whereas, since transport conditions in certain territories of the former Yugoslavia continue to be poor despite the cessation of hostilities in the region, these measures, covering temporary assistance to the operators involved in avoiding those territories, should be extended for a period of six months, HAS ADOPTED THIS REGULATION: OJ No C O J N o. OJ No L 350, 1. 12. 1992, p. 1. Regulation last amended by Regulation (EC) No 456/95 (OJ No L 47, 2. 3. 1995, p. I. ). 6 Article 1 Regulation (EEC) No 3438/92 is hereby amended as follows. I Article 2(1) and (2) is replaced by the following: "1. The special temporary allowance shall be granted from I January 1992 to 30 June 1996 for the marketing of the fruit and vegetables referred to in Article 1. 2 The amount of the special temporary allowance shall be determined in such a way as to contribute to meeting the additional transport costs arising as a result of the poor transport conditions obtaining in certain regions of the former Yugoslavia. It may be fixed on a flat-rate basis. " 2. The first indent of Article 3 is deleted Article 2 This Regulation shall enter into force on the date of its publication in the Official Journal of the European Communities. It shall apply from 1 January 1996. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council % FINANCIAL STATEMENT BUDGET HEADING: 1509 Date: 13 February 1996 APPROPRIATIONS: B96: ECU 57 million TITLE: Proposal for a Council Regulation amending Regulation (EEC) No 3438/92 laying down special measures for the transport of certain fresh fruit and vegetables originating in Greece as regards the period of their application LEGAL BASIS: Article 43 of the Treaty AIMS: To extend the special transport allowance for Greece to 30 June 1996 FINANCIAL IMPLICATIONS: PERIOD OF 12 MONTHS (ECU million) CURRENT FINANCIAL YEAR (96) (ECU million) FOLLOWING FINANCIAL YEAR (97) (ECU million) 5. 0. EXPENDITURE - CHARGED TO THE EC BUDGET (REFUNDS/INTERVENTION) - NATIONAL AUTHORITIES -OTHER 5. 1. REVENUE - OWN RESOURCES OF THE EC (LEVIES/CUSTOMS DUTIES) - NATIONAL 5. 0. 1. 5. 1. 1. ESTIMATED EXPENDITURE ESTIMATED REVENUE 5. 2. METHOD OF CALCULATION: 4. 9 4. 3 0. 6 1998 1999 2000 2001 Quantities forecast for export over the six months: 100 0001 100 000 t x ECU 48. 3/t x 1. 006 = ECU 4. 9 million, of which ECU 4. 3 million = 1996 budget, and ECU 0. 6 million = 1997 budget 6. 0. 6. 1. 6. 2. 6. 3. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? v CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? WILL A SUPPLEMENTARY BUDGET BE NECESSARY? WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/N© YF<UNCi ¥fiS/NO YES/N© OBSERVATIONS ISSN 0254-1475 COM(96) 142 final EN 03 Catalogue number : CB-CO-96-147-EN-C ISBN 92-78-02216-0 Office for Official Publications of the European Communities L-2985 Luxembourg <3

Proposal for a COUNCIL DIRECTIVE amending Council Directives 66/400/EEC, 66/401/EEC, 66/402/EEC, 66/403/EEC, 69/208/EEC and 70/458/EEC on the marketing of beet seed, fodder plant seed, cereal seed, seed potatoes, seed of oil and fibre plants and vegetable seed

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«V •& +, COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 02. 04. 1996 COM(%) 127 iinaJ 96/0099 (CNS) Proposal lor a COUNCIL D1REC1 1VH amending Council Directives 66/400/EEC, 66/40a/Er;c, 66/402/EEC, 66/403/EEC, 69/208/EEC and 70/458/EEC on the marketing of beet seed, fodder plant seed, cereal seed, seed potatoes, seed of oil and fibre plants and vegetable seed (presented by the Commission) _ > i^ - EXPLANATORY MEMORANDUM Council Directives 66/400/EEC1, 66/401/EEC2, 66/402/EEC3, 66/403/EEC4, 69/208/EEC\ 70/457/EEC6 and 70/458/H:EC' on the marketing of beet seed, fodder plant seed, cereal seed, seed potatoes, seed of oil and fibre plants and vegetable seed and on the common catalogue of varieties of agricultural plants respectively arc currently in the process of being officially consolidated. Commission proposals to this end have been made to the Council. The said Directives are also currently the subject of a Commission proposal to the Council (COM(93)598 final)8. The proposal makes numerous amendments to the Directives in order, inter alia, to update them and bring them into line with the single market concept. All the Directives, with the exception of Directive 70/457/EEC, contain references to the abbreviation "EEC" in certain provisions relating to packages and labelling. The Treaty on European Union replaced the term "European Economic Community" by the term "European Community"; the same should now be done in the relevant provisions in the said Directives. Even if this could be regarded as a purely formal amendment, Member States must nonetheless transpose it into national legislation if labels bearing "EC" rather than "EEC" are to be used. Moreover, there could be a financial impact if the rew labels had to be used forthwith. A period should therefore be fixed, during which labels bearing the abbreviation may still be used. OJ No 125, 11. 7. 1966, p. 2290/66 OJ No 125, 11. 7. 1966, p. 2290/66 OJ No 125, 11. 7. 1966, p. 2309/66 OJ No 125, 11. 7. 1966, p. 2320/66 OJ No L169, 10. 7. 1969, p. 3 OJ No L225. 12. 10. 1970, p. l OJ NO L225, 12. 10. 1970, p. 7 OJ No C 29, 31. 01. 1994, p. 1 - 2 4X _ For these reasons, and since a consolidating directive does not need to be transposed, the consolidated directives being presumed to have been transposed within the time limit alLowed, it would not be possible to incorporate this amendment in the legislative consolidation proposal as a purely formal adjustment. The present proposal therefore amends the said Directives, by replacing the abbreviation "EEC" by the abbreviation "EC" in the relevant provisions. It also allows a transitional period during which labels still bearing the abbreviation "EEC" may continue to be used. It is intended that following the adoption of the proposal which is currently before the Council (COM(9*)598 final) and the adoption of this proposal, all the amendments should be incorporated in the legislative consolidation proposals relating to the 7 directives mentioned in paragraph 1 above whicli the Commission has proposed to the Council. There are no subsidiarity implications given that the proposal is based on Article 43 of the Treaty establishing the European Community and thus falls within the exclusive competence of the Community. Furthermore, the proposal is compatible with the principle of proportionality laid down in the third paragraph of Article 3b of the above mentioned Treaty, taking into account the fact that it only adapts the existing terminology to that which has been introduced by the Treaty on European Union. - A - Proposal for a Council Directive amending Council Directives 66/400/EEC, 66/401/EEC, 66/402/EEC, 66/403/EEC," 69/208/EEC and 70/4 58/EEC on the marketing of beet seed, fodder plant seed, cereal seed, seed potatoes, seed of oil and fibre plants and vegetable seed THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission1 Having regard to the opinion of the European Parliament2, Having regard to the opinion of the Economic and Social Committee3 Whereas Article G of the Treaty on European Union replaced the term "European Economic Community" by the term "European Community"; whereas the abbreviation "EEC" should therefore be replaced by the abbreviation "EC"; Whereas the abbreviation "EEC" appears in certain provisions of Council Directives 66/400/EEC4, 66/401/EEC5, 66/402/EEC6, 66/403/EEC7, 69/208/EEC8 and 70/458/EEC9 on the marketing of beet seed, fodder plant seed, cereal seed, seed potatoes, seed of oil and fibre plants and vegetable seed and in particular in relation to packages and the labelling of seeds; whereas it is therefore appropriate to replace the abbreviation "EEC" by the abbreviation "EC" in the said provisions; OJ No 125, 11. 07. 1977, p. 2290/66, directive as last amended by the Treaty of Accession of Austria, Finland and Sweden OJ No 125, 11. 07. 1977, p. 2298/66, directive as last amended by the Treaty of Accession of Austria, Finland and Sweden OJ No 125, 11. 07. 1966, p. 2309/66, directive as last amended by Directive 95/6/EC (OJ No L 67, 25. 0^. 1995, p. 30) OJ No 125, 11. 07. 1966, p. 2320/66, directive as last amended by Decision 96,/16/EC (OJ No L 6, 09. 01 1996, p. 19) OJ No L 169, 10. 07. 1969, p. 3, directive as last amended by the Treaty of Accession of Austria, Finland and Sweden OJ No L 225, 12. 10. 1970, p. 7, directive as last amended by the Treaty o£ Accession of Austria, Finland and Sweden - 2 - Whereas, however, large stocks of labels are usually ordered in advance and those still bearing the abbreviation "EEC" should, for a phasing in period, continue to be allowed to be used; HAS ADOPTED THIS DIRECTIVE: Directives 66/400/EEC, 66/401/EEC, 66/402/EEC, 66/403/EEC, 69/208/EEC and 70/458/EEC are amended as follows: Article 1 1. In Directive 66/400/EEC the abbreviation "EEC" in Articles 2. 1. G; 10(1); 10(2); 10(3); 11(1); lla(l); lla(2); lib; 14(1) second indent ; Annex III A, 1. 1 and Annex III B, title and point 1, is replaced by the abbreviation "EC". 2. In Directive 66/401/EEC, the abbreviation "EEC" in Articles 2. 1 F; 2. 1 G; 9(1); 9(2); 9(3); 10(1); 10a (1) and (2); 10b, 13(3); 14(1) third indent; Annex IV A, l(a)l; Annex IV, A, l(b)l; Annex IV B, title ; Annex IV B(a)l; Annex IV B(b)l, and Annex B(c), 1, 3, 4, 5, 6 and 7, is replaced by the abbreviation "EC". 3. In Directive 66/402/EEC, the abbreviation "EEC" in Annex IV A, (a)1 is replaced by the abbreviation "EC". 4. In Directive 66/403/EEC, the abbreviation "EEC" in Annex III, A, 1, is replaced by the abbreviation "EC". 5. In Directive 69/208/EEC, the abbreviation "EEC" in Annex IV, A, (a) 1 and Annex IV, A, (b) 1 is replaced by the abbreviation "EC". 6. In Directive 70/458/EEC the abbreviation "EEC" in Article 25(1); Annex IV, A, (a) , 1 and Annex IV, B, (a) 1, is replaced by the abbreviation "EC". Remaining stocks of labels bearing the abbreviation "EEC" may continue to be used until 31 December 1996. Article 2 - 3 Article 3 1. Member States shall bring into force the laws, regulations or administrative provisions necessary to comply with this Directive by 1 July 1996. They shall forthwith inform the Commission thereof. When Member States adopt these measures, they shall contain a reference to this Directive or shall be accompanied by such reference on the occasion of their official publication. The methods of making such a reference shall be laid down by the Member States. 2. Member States shall immediately communicate to the Commission all provisions of national law which they adopt in the field governed by this Directive. The Commission shall inform the other Member States thereof. This Directive shall enter into force on the twentieth day following its publication in the Official Journal of the European Communities. Article- 4 This Directive is addressed to the Member States. Article 5 Done at Brussels, For the Council BSN 0254-1475 COM(96) 127 final DOCUMENTS EN 03 Catalogue number : CB-CO-96-145-EN-C ISBN 92-78-01985-2 Office for Officiai Publications of the European Communities L-2985 Luxembourg H

Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) N° 1907/90 on certain marketing standards for eggs

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lifpMMr» COMMISSION OF THE tUROHbAN COMMUNII IbS Brussels, 02. 04. 1995 COM(%) 140 final Proposal tor a COUNCIL REGULATION (EC) amending Regulation (EEC) N* 1907/90 on certain marketing standards for eggs (presented by the Commission) EXPLANATORY MEMORANDUM Regulation (EEC) No. 1907/90 on common egg marketing standards provides a derogation for sales from producers to retailers in certain regions of Finland in view of the specific condition of egg marketing in these regions. It is proposed to remove the less remote areas form this list since an increased number of egg packing centres has led to an improvement in the marketing conditions in those areas since the Accession. It is also proposed to authorise possible future reductions of this list in accordance with the Management Committee procedure in order to facilitate future adaptation of the list of areas concerned. The proposed measure has no financial consequence for the Community budget. 1 PROPOSAL FOR A COUNCIL REGULATION (EC) NO /96 amending Regulation (EEC) N* 1907/90 on certain marketing standards for eggs THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 2771/75 of 29 October 1975 on the common organization of the market in eggs(l), and in particular Article 2(2) thereof, Having regard to the proposal from the Commission, Whereas Regulation (EEC) No 1907/90 (2) lays down certain marketing standards for eggs; Whereas this Regulation does not apply to sales from producers to retailers in certain regions of Finland in view of the specific conditions of egg marketing in those regions; whereas the list of these regions should now be amended taking account of improved marketing conditions due to increased number of packing centres in the less remote areas of Finland; whereas in order to facilitate future reductions of this list, these should be adopted in accordance with Article 17 of Regulation (EEC) No 2771/75; (1) OJ No L 282, 1. 11. 1975, p. 49. Regulation as last amended by Regulation (EC) N° 2916/95 (OJ N* L 305, 19. 12. 1995 p. 49). (2) OJ No L 173, 6. 7. 1990, p. 5. Regulation as last amended by Regulation (EC) N" 3117/94 (OJN'L 330, 21. 12. 1994, p. 4). 3 HAS ADOPTED THIS REGULATION: Article 1 Regulation (EEC) No 1907/90 is hereby amended as follows: - In Article 2(3) the following subparagraph is added: "The list of regions of Finland contained in Annex IT may be reduced in accordance with the procedure laid down in Article 17 of Regulation (EEC) No 2771/75". - Annex II is replaced by the Annex to this Regulation. Article 2 This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 1996 For the Council <h A N N EX "ANNEX II Regions of Finland referred to in Article 2 (3) The Provinces of : - Lappi - Oulu - Pohjois-Karjala - Kuopio - Ahvenanmaa" 5 ISSN 0254-1475 COM(96) 140 final DOCUMENTS EN 03 Catalogue number : CB-CO-96-146-EN-C ISBN 92-78-02205-5 Office for Official Publications of the European Communities L 2985 Luxembourg G

COMMUNICATION FROM THE COMMISSION to the Council, the European Parliament and the Economic and Social Committee on the final evaluation of the strategic programme for innovation and technology transfer (SPRINT) 1989-1994

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 01. 04. 1996 COM(96) 130 final COMMUNICATION FROM THE COMMISSION TO THE COUNCIL. THE EUROPEAN PARLIAMENT AND THE ECONOMIC AND SOCIAL COMMITTEE ON THE FINAL EVALUATION OF THE STRATEGIC PROGRAMME FOR INNOVATION AND TECHNOLOGY TRANSFER (SPRINT) 1989-1994 Introduction 1. 1 The Council Decision 89/286/EEC1 of 17 April 1989, confirmed and extended by Council Decision 94/5/EC2 of 20 December 1993, relating to the main phase of the Strategic Programme Innovation and Technology Transfer 1989-1994 ("SPRINT") required in Art. 8 that the Commission shall submit, on completion of the programme, a report on the programme's execution and results to the European Parliament, the Council and the Economic and Social Committee. for 1. 2. The Commission appointed a panel of independent experts to undertake this review under the chairmanship of Mr. Chabbal. The Panel presented its report to the Commission on the 11th of November 1994. The report was presented in December 1994 to the Committee of the Programme who positively received and endorsed it in its main findings and recommendations. The complete Panel Evaluation Report and its findings are attached under Annex A, including the mandate of the Panel and its composition. 1. 3 In establishing the report, the Panel has taken into account the SPRINT Mid-Term Report and evaluations of specific action lines under SPRINT, such as for the networks of research and technology organizations, for consultancy networks or for specific projects (see list in Annex B). The experience made under the Value Programme for the exploitation of results and the Panel Evaluation Report for this programme presented to the Commission on 3 June 1994 were also considered. In addition, the Panel examined the coherence of the SPRINT experience with the approach to innovation and with the objectives stated in the work programme for the Specific Programme for the Dissemination and Optimisation of Results of Activities in the field of RTD, including Demonstration, the 3rd Activity of the 4th Framework Programme. 1. 4 The present report is organised as follows: Section 2 summarises the SPRINT programme and its main components. Section 3 presents the overall assessment of the programme in the light of the main findings and conclusions of the Panel Evaluation Report. Finally, section 4 gives the Panel's detailed analysis of the main elements of the SPRINT Programme together with the opinion of the Commission on this analysis. H Main objectives and instruments of the SPRINT Programme 2. 1 The main phase of SPRINT had the following objectives assigned by the above mentioned Council Decision: 1 OJN°L112, 25. 4. 1989, p. 12. 2O J N ° L 6, 8. 1. 1994, p. 25. -—to strengthen the innovative capacity of European producers of goods and services, with a view to the 1992 Single Market; - - to promote rapid penetration by new technologies and the dissemination of innovation throughout the economic fabric of the Community; to enhance the effectiveness and coherence of existing instruments and policies, whether regional, national or Community-wide, in the field of innovation and technology transfer. 2. 2 In order to achieve these objectives, the activities developed under the programme addressed innovation activities that are not only based on research and technology, but also linked to managerial skills and business practices. Not only the application of new research results in high-tech sectors, but also the introduction of advanced but proven technologies in traditional industries was pursued. A special attention was paid to SMEs as the main ultimate target group for the programme. 2. 3 In line with the above objectives and specific priorities, and endowed with a budget of Mecu 113 for a period of five years, SPRINT concentrated its efforts on three main areas: the development of innovation support services and their corresponding European infrastructure. This was considered particularly relevant for SMEs, which typically rely much more than large companies on outside expertise for their innovation and technology acquisition. Since the quality and availability of such services is a crucial element for the innovation process, SPRINT attempted to promote the cross-border exchange of experience, facilitate Europe wide cooperation patterns between such services and set up a corresponding organizational infrastructure at European level. the demonstration of intra-Community technology transfer and technology acquisition. Here, activities were set up to enhance the demonstration capability of actual intra-Community technology transfer projects, and the identification, development and demonstration of best management practices therein. the improvement of knowledge on the innovation process, systems and policies at Community, national and regional levels. This was to contribute to the effectiveness and coherence of innovation policies, through the collection of reliable data and information about innovation activities and processes, the refinement of the conceptual framework and the reinforcement of the exchange of experience between policy makers and entities of relevance for innovation and diffusion of technologies (European Innovation Monitoring System - EIMS). 2. 4 Within each of the above lines, a broad range of initiatives was implemented. The Panel presented and analysed each of them in detail in Annex 1 of the report. 3£> HI. Overall assessment of the programme 3. 1 The frame of reference for a Community Programme for Innovation Support Before engaging in the evaluation of the SPRINT Programme the Panel considered it necessary to define the frame of reference for a Community Innovation programme. According to them the following factors must be kept in mind: • • • the difference between research policy, aiming at the creation of new knowledge, and innovation policy, oriented towards the application of knowledge that is new to the applier; the necessary systems approach of innovation policy, consisting in stimulating the multiple interactions between innovation actors, and guaranteeing the complete, complementary and coherent character of the measures; the relevance of an SME oriented innovation policy, strongly based on the demand from SMEs, being implemented through structures close to these SMEs, in particular at regional level. This policy lays emphasis on the diffusion of existing technologies, a process linked to the absorptive capacity of firms. The Commission shares this analysis of the frame conditions for innovation supporting programmes, and considers the main orientations of the SPRINT programme to have been in line with these requirements. 3. 2 Overall conclusions on SPRINT and recommendations The overall conclusion of the Panel on SPRINT is positive. In its view the objectives of the Council Decision were pursued effectively given the allocated resources, and the programme corresponds well to the tasks of an innovation programme Although not exempt from imperfections, SPRINT is seen to have been an original and veil adapted tool to assist SMEs of all types in their innovation process: the experimental character of SPRINT did allow a large range of solutions to be tested, and an original process of reflection - experimentation, evaluation and diffusion of knowledge was set up under the programme. Furthermore, a large number of actors of relevance for innovation processes found in SPRINT a European frame for cooperation and interaction which they lacked before. With respect to future Community policies, innovation and technology diffusion are considered by the Panel to be of highest priority. The diffusion of technologies to traditional sectors is seen to be more important than the massive production of new technologies which would benefit the high tech sector exclusively. 3. 3 The Panel also gives a favorable answer to the questions submitted in its mandate : • The SPRINT programme did pursue the objectives set out by the decision of 17. 4. 1989; 4q • —Innovation and technological diffusion policies are still relevant today, in particular for diffusion to traditional sectors, and the policy set up by SPRINT adapts well to these constraints and objectives; • Whilst improvements are necessary in the working procedures, the overall working process is considered as very healthy by the Panel, who recommends its main characteristics to be kept. 3. 4 Some weaknesses are identified by the Panel in: • • • • visibility of the working process of the programme; dissemination of results; catalytic role for regional and national scale innovation actions; interactions with other services of the Commission. 3. 5 These points are further taken up in the Panel's recommendations concerning the composition of a future programme and its action modes : • • • • • the choice of new actions should be made more transparent; the programme should develop explicit mechanisms for reviewing, renewing and discarding actions; targeting SMEs would have to be improved by developing a typology of SMEs, based on terms of innovation demand; besides support for intermediaries, direct intervention in favor of SMEs in some areas is recommended; the choice of EIMS themes should be done in closer association with other interested Commission Services; • methodological aspects of pilot schemes, like definition of objectives and evaluation, should be strengthened; • • new methods for dissemination of results should be studied and applied; interaction mechanisms between in general, Community programmes should be set in place; the 3rd Activity and other • the statutory staff dedicated to the programme should be increased. Whenever relevant these points have been addressed by the Commission in the design of the work programme for the Specific Programme for Dissemination and Optimization of Results of Activities in the field of RTD and will be pursued during its implementation as appropriate. 5C? IV Detailed analysis of the main elements of the SPRINT programme Next to the above overall assessment of the Programme, the Panel did apply a new and interesting model in view to assess in detail the main elements of the Programme as well as its suitability to meet the objectives of the 3rd Activity of the 4th Framework Programme. 4. 1 Analysis of means of action and methods applied The working method set up by SPRINT is characterized ,by the following cycle combining reflection, experimentation, evaluation and dissemination : • • First, an initial reflection Second, confirmation through experimentation and evaluation; • Then, building up of human networks, in the form of macro or mini networks, achieving thus a large multiplication effect of the measures. • Analysis of the results and identification of lessons learnt. • Finally, appropriate dissemination of selected results and good practices. The Commission considers this rather formalized description of SPRINT's methods by the Panel basically in line with its practice. These methods however are not the goal, but an approach to achieve wider objectives in an efficient way, taking into account experiences of the partners in the innovation process. 4. 2 Analysis by categories of actors The Panel considers SPRINT to have involved a wide range of actors which are of relevance for SME innovation. However, in their opinion, more attention should be paid to a number of intermediaries, such as consultants in EPR, technology specific Technological Resource Centers, financial partners for innovative SMEs, regional infrastructures. In addition, the Panel considers that Community activities should extend their focus beyond collaboration between SMEs and include the interaction between technology suppliers or users, in particular between SMEs and large firms, and on the collaboration between innovation services for SMEs. The Commission is aware of the fact that there was only partial coverage of intermediaries and SME collaborative structures. Essentially, this was due to the limited resources available and to the need to concentrate on a limited range of experimental and pilot activities. Under the 3rd Activity efforts will be extended in particular in two fields : co-operation with regional policy initiatives and instruments for innovation finance. Special attention will be paid to systematic efforts in research and in Community-wide statistics on innovation activities, in particular of SMEs. 6*3. 4. 3 Analysis by objectives The Panel examined the activities with respect to their suitability to meet the objectives laid down in the Work programme of the 3rd Activity : • • • creating an environment favoring innovation and technology absorption; favoring the establishment of an area for the free circulation of technologies; facilitating the supply of technologies. Measures undertaken by SPRINT of relevance for the first objective aimed at increasing the quality of specialists in the field of SME related services, spreading best practice through policy demonstration schemes, and favouring the diffusion of technologies. The Panel observed that more systematic efforts could have been devoted to draw lessons from these various experiences and to disseminate such experience to local or national policy makers. The Commission feels that this apparent limitation was the result of the fact that at that stage priority was given to the immediate sharing of experience by the participants and their counterparts, accepting that wider diffusion would be undertaken in subsequent stages. In relation with the second objective, the Panel underlines the positive role of European networks which SPRINT had implemented in a systematic way. It regretted the fact that not enough interfirm cooperation platforms existed at European level, and that these networks have not been used more intensively for dissemination of information between the various partners of different regions. The Commission stresses that Community support was from the beginning intended only to facilitate the setting-up of such networks, which had to prove later on their viability and had to achieve financial autonomy. The Commission intends to reinforce network cooperation under the 3rd Activity, in particular by stimulating the extension of the Relay Centres network and by supporting European co-operation between existing national networks or initiatives. It is intended to make best use of such networks also for initiatives under other Community Programmes. With respect to the third objective the Panel underlines that this refers not to the provision of technologies as such to SMEs, but to the adaptation of R&D knowledge to the requirements of innovative SMEs. The positive contribution of SPRINT'S support for collaboration between technical centres (Networks of Research and Technology Organizations) or of some Specific Projects is mentioned. The Commission intends to strengthen its efforts in that field under the 3rd Activity, notably by its support for Technology Validation Projects and Technology Transfer Projects. 7* 4. 4 Panel observations on the individual action lines of the SPRINT Programme The detailed opinion of the Panel on individual action lines is summarized in Annex 1 of the report, the main points of which are the following : Actions aiming at SME technological partners, in particular the Network of Research and Technology Organisations, are considered helpful and should be continued with some improvements. Measures in favour of the Regional Technology Advisory Centres provide good added value and should be actively pursued. Support of Science Parks is in general approved by the Panel, who suggests to explore in addition the synergies with DGI and the Phare Programme and to put more emphasis on the promotion of the quality of such parks. The overall appreciation of the Panel on actions aiming at consultants in general and at the promotion of tools that enhance the quality of their advice to SMEs, such as the schemes for "Managing the Integration of New Technology", Value Analysis, Design and Quality is positive, with specific recommendations to improve some operational characteristics, and here again essentially in the field of dissemination and publication of knowledge and results achieved. Actions aiming at consultants specialised in licensing, such as the Inter-firm networks and Technology Transfer Days, have, in the opinion of the Panel, demonstrated their usefulness and should be conserved and even reinforced. Initiatives aiming at the financial system, mainly Technology Performance Financing and Investment Fora, would require a re-thinking concerning the tools and approaches. Measures in support of the interaction of SMEs with other companies could, in the opinion of the Panel, have been further developed. Actions aiming at regional policies under the "Regional Innovation and Technology Transfer Strategies and Infrastructures" and "Regional Technology Plans" initiatives are important and should be further developed. The strengthening of the absorptive capacity of SMEs under the Specific Project Action line is seen as an example of successful exploratory action that deserves to be continued and expanded in the future. The creation of trans-European networks for innovation and knowledge transfer triggered a Europeanisation effect considered very precious by the Panel, to be maintained under the 4th Framework Programme and to be made available to other Commission services dealing with SMEs. The European Innovation Monitoring System is seen to be a very important element of the programme, permitting analysis and the development of new concepts. More empirical work on the conditions of SMEs is suggested. 4. 5 The Panel suggests that the various measures developed under SPRINT be continued under the Specific Programme for the Dissemination and Optimisation of the Results 8o of ^Activities in the field of Research and Technological Development, including Demonstration of the 4th Framework Programme, and that this Programme addresses all aspects of the innovation process. As mentioned before, the Commission has taken into account, whenever this proved appropriate, the recommendations of the Panel in the setting-up of the Work Programme for the Specific Programme. The Commission, while sharing the Panel's concern to see all aspects of the innovation process covered, underlines that this has to be achieved by a variety of instruments within and outside the Framework Programme, taking duly into account the legal basis of such operations and assuring a co-ordinated approach as recommended in the Green paper on Innovation. V. Conclusions 5. 1 The Commission has carefully considered the report and the opinion of the Panel. It will endeavour to take up, wherever possible, the relevant recommendations for the implementation of the Specific Programme for the Dissemination and Optimisation of the Results of Activities in the field of Research and Technological Development, including Demonstration, adopted by the Council Decision 94/917/CE of 15 December 1994 for the period 1994-1998. 5. 2 This communication together with the Panel Evaluation Report is addressed to the European Parliament, the Council and the Economic and Social Committee complying with article 8 of the Council Decision of 17th April 1989 on the SPRINT Programme. Appendix A. B. Panel Evaluation report List of evaluation reports 9& PANEL EVALUATION OF THE SPRINT PROGRAMME SUMMARY OF THE REPORT PART ONE TERMS AND FRAME OF REFERENCE A. TERMS OF REFERENCE OF THE GROUP, WORK METHOD B. REFERENCE FRAMEWORK 1 2. 3 What is innovanon9 Research policy and innovation policy are two different things Characteristics of an SME-targeted innovation policy C. WHAT IS THE ROLE OF A EUROPEAN PROGRAMME TO STIMULATE INNOVATION IN SME'S? PART TWO ANAL YSIS OF THE SPRINT SYSTEM A OBJECTIVES B METHODS AND MEASURES OF THE SPRINT PROGRAMME 1. 2. 3. 4. First combine reflection and experimentation, evaluation and dissemination Evaluate the actions Then build up networks Target SME partners C. COHERENCE OF THE SPRINT SYSTEM ANALYSIS BY CATEGORY OF OPERATOR Consultants Technological partners Field consultants Financial partners for innovative SMEs Local policy-makers 1. 2. 3. 4. 5. 6. What SPRINT has overlooked Page 5 10 10 10 11 11 12 13 15 17 17 17 17 18 18 18 19 19 20 20 21 21 22 D. • COHERENCE OF THE SPRINT SYSTEM: ANALYSIS BY OBJECTIVES 1. Helping to create an environment beneficial to innovation in SMEs a. b. c. Influencing specialists Influencing tools and policies Disseminating technologies 2. 3. Europeanising the operators in the innovation system Horizontal schemes E CONCLUSION PART THREE 22 23 23 23 24 25 25 26 CONCL USIONS AND RECOMMENDA TIONS ' 2 7 A GENERAL APPRAISAL OF THE SPRINT SYSTEM B PROPOSALS FOR THE COMPOSITION OF THE PROGRAMME 1. 2. A programme such as SPRINT must be flexible and evolutionary Should the programme continue to target intermediaries or should it be aimed at SMEs directly? 3. A new dimension: a privileged relationship between SPRINT and regional authorities C PROPOSALS FOR SPECIFIC ACTION 1. 2. Improve the reflection-expcnmcnLation-evaJuation-dissemination cycle Reinforce and systematise the interaction between the SPRINT programme and its potential partners 3. Increase human resources within the SPRINT programme D. MISCELLANEOUS E. CONCLUSION: SUMMARY ANSWERS TO THE QUESTIONS PUT TO THE PANEL 27 28 28 30 32 32 33 34 35 36 36 I ANNEXES ANNEX 1: ANALYSIS OF THE SPRINT SYSTEM BY TYPE OF INITIATIVE 1. Schemes aimed at technological partners of SMEs 2. 3. 4. 5. 6 Schemes aimed at RTACs Schemes aimed at science parks Schemes aimed at consultants in general Schemes aimed at consultants specialising in licensing Schemes aimed at the financial system 39 40 41 42 45 47 49 7. Schemes aimed at the interaction of SMEs with other SMEs (networks) and/or large firms 52 8 9 Schemes aimed at regional policies Schemes aimed at the absorptive capacity of SMEs and their interactions with their partners 10. Evaluation of the action taken under SPRINT ANNEX 2: ANALYSIS OF THE SPRINT SYSTEM ACCORDING TO OBJECWES 1 2 First objective: Creation of an environment beneficial to innovation and the absorption of technologies Second objective: Establishment of an area for the free circulation of technologies in the EU and for application of innovative products) 3 Third objective: Supply SME's with technologies adapted to their requirements ANNEX 3: NOTE ON THE 1%RULE ANNEX 4 SPRINT EVALUA TION PANEL ANNEX S: TERMS OF REFERENCE OF THE SPRINT FINAL EVAL UA TION PANEL ANNEX 6: LIST OF ACRONYMS Tables 1. 2,3 and 4 and Figure 1 52 54 56 59 60 63 66 68 70 71 72 75 3 SUMMARY OF THE REPORT 1 Introduction This summary reiterates the main points of the evaluation report on the SPRINT programme (Strategic Programme for Innovation and Technology Transfer) submitted to the European Commission. The SPRINT programme, run by Directorate XITi/D, comprises a set of lines of action, the overall objective of which is to create a climate favourable to innovaDon around European smalland medium-sized enterprises (SMEs). Launched in 1984, SPRINT was the forerunner of numerous tools and "best practices" for technologie transfer on a pan-European scale. To do this, it relied on regional and/or national intermediaries (both public and private) active in the field of innovation and technology' transfer and targeted a whole series of actors (technical, managerial, financial, etc. ) who each have a role to play in the innovation process. The set of corresponding initiatives encompasses what is generally regarded at national level as an innovation polies 2 Innovation policy at European level 2. 1 Innovation policies An innovation policy is a system of measures designed to facilitate the innovation process, that is the process which leads from the idea of new products or new processes to its successful commercialization, the novelty may be radical, but very often it is limited to an improvement of what already exists The idea may be the result of research work, but this is an exception. In practice, it is SMEs which form the main target of innovation policies inasmuch as large enterprises are felt to be well equipped for innovation without any special outside help Furthermore, it is important not to confuse research policy, which tends to develop scientific knowledge, with innovation policy, which tends to facilitate the production and successful commercialization of new products and services or the introduction of new processes into It is nevertheless increasingly vital for the two policies to be conducted enterprises. simultaneously and on the same footing 2. 2 Value added of the European approach Specific regional level. SPRINT looked at the problem in a European context. innovation policies have been introduced in the Member States, especially at In order to do this, the programme set out to demonstrate the relevance of certain tools (networks, common projects, financial instruments, fora, consultation, etc. ) with, as the ultimate objective, their adoption by national and regional authonties so that they benefit directly a large proportion of European SMEs This highlights an important aspect of SPRINT, i. e. its capacity for experimentation and evaluation of new types of action. In this it is assisted by the EEMS programme (European Innovation Monitoring System), which helps it to identify the relevant actions which need to be carried out, in particular for the benefit of regional and national governments. Furthermore, those involved in innovation in the various Member States have been able to add a transnational dimension to their work by coming together, at the European level, thanks to the SPRINT networks. Lastly, SPRINT has contributed the dissemination of proven technologies from particular countries to other regions, especially to those suffering from a "development gap", thanks in particular to the "specific projects" for innovation transfer. to the objective of European cohesion through In line with regional or national innovation policies, a Community innovation policy needs to be "horizontal", i. e. implemented so as to ensure that there is some consistency in the actions undertaken by the various Commission directorates-general with regard to innovation among SMEs 3 S P R I NT objectives and methods applied SPRINT actions can be classified according to the three initial objectives of the programme / - DEVELOPMENT OF A PAN EUROPEAN INFRASTRUCTURE TO SUPPORT INNOVATION (brokers, research and technology agencies, regional interface networks organizations, university-industry science parks and regional infrastructure for innovation financing, intermediaries) innovation; II - DISSEMINATION AND ABSORPTION OF NEW TECHNOLOGIES AND PRACTICES innovation management technology demonstration projects Ç"special projects"for transfer days. techniques (MINT, design, quality, etc. ); innovation transfer); III - PROMOTING A WA REN ESS OF INNO VA TION AND UNDERSTANDING OF HOW IT WORKS "European Innovation Monitoring studies, workshops on policies, etc. ). System "(information gathering, In response to the complex nature of the innovation system, SPRINT itself was bound to be systemic in nature and its actions were bound to be diversified. This explains the profuse aspect which is a feature of the programme. The programme gradually adopted an approach which was both pragmatic and considered, building up in-depth knowledge of the mechanisms which underly innovation and technology dissemination. This approach comprises a cycle which produces in turn reflection (what is to be done, what initiative should be launched? - the European Innovation Monitoring System), experimentation (the various actions in the programme other than the EIMS), evaluation and dissemination (proven and evaluated good practices). These actions are for the most part aimed at SMEs' partners (various types of intermediary and interface) and interaction platforms (capital and technology markets, fora, science parks and technopoles). The programme thus targeted several thousand intermediary bodies, on the assumption that the service to several hundreds of thousands of SMEs would be unproved. SMEs were directly involved only in pilot projects (MINT) or promotional events (European Design Pnze). 4 Results of actions: analysis according to categories of actors Has SPRINT succeeded or failed in achieving the objectives it was given9 These questions need to be answered according to the category of actors in the innovation system In the systemic model of the innovation process, the six main types of partner who are able to bring to SMEs the varied skills which an innovation process requires and to supplement their internal know-how are as follows: consultants, technological resource centres (technological partners), financial institutions, non-specialist bodies which stimulate demand and organize the coherence of the various actions (field consultants and regional departments responsible for innovation), and other enterprises (mini-networks technology brokers i) Consultants, Thanks to the launch of a large number of networks, the programme has made it possible to stimulate the work of the main types of non-technological experts, especially transfer, Til Technology, Innovation and Information macro-network, organization of technology transfer days), experts in the field of technology management (MINT initiative for the strategic review of SMEs) and specialists on science parks and similar structures (feasibility and evaluation studies). Lastly, the programme set out to promote certain techniques of innovation management such as quality, value analysis and industrial design. The field was broadly covered in spite of some gaps (consultants specializing in market studies or intellectual property problems). technology inter-firm for technical centres (involved Technological partners or research and technology organizations (RTOs). Among U) fundamental these, the sectoral technologies in the programme. RTO minj-networks. As for contract research organizations (CROs), they were helped by setting up a European association. Technological research centres (TRCs) focusing on one technology have not been targeted by any SPRINT action. in traditional sectors) benefited from one of the main in collective research on initiatives Financial partners. These partners, comprising bankers and venture capitalists, are iii) of major importance. SPRINT focused chiefly on the second category by helping to set up the European Venture Capital Association (EVCA) and organizing a series of investment fora. As for the banking sector, it was solicited by the experimental TPF (Technology Performance Financing) action. Lastly, a wide-ranging action was launched in the final months of the programme to study the feasibility of European markets of the NASDAQ type (second market in North America) in collaboration with DG XVTH (Credit and Investments) and DG XXIII (Enterprises). There is still much to be done with regard to innovation financing, where SPRINT has started to play an important role. iv) Field consultants. The multiple functions of these partners include prospecting SMEs with a view to anlaysing their needs, diagnosing problems and helping to launch and steer innovation projects A network of Regional Technology Advisory Centres (RTACs) which fufils this type of function was launched under SPRINT two years ago for Regional (and national) services responsible v) innovation. SPRINT has been svstematicaJly involved in assisting science parks and similar structures, and has therefore made itself felt with those responsible locally. Actions to assist regional policy-makers took on more substance at the end of the programme with the launch of Regional Technology Plans (RTPs, undertaken in collaboration with DG XVI Regional Policies) and the RTTTS initiative (Regional Innovation and Technology Transfer Strategies and Infrastructures) for the strategic analysis of regional infrastructure for support to innovation, based on enterprise demand and resulting in an action plan accepted by all the technical and economic actors in a region vi) Other enterprises. SMEs' partners in the innovation process are as much other SMEs as large enterprises. Apart from an EIMS study, SPRINT has not been very active in this area, and this is one of the major shortcomings of the programme The important role of "specific projects" (2 I in all) must be stressed, these being projects for the transfer of proven technologies to regions where such technologies are m demand but not yet available. This action line made it possible to bnng together a number of different actors (SMEs, RTOs, consultants, regional interface services, etc. ) around common objectives and to develop a common language among them - a difficult but vital task. the Lastly, the European Innovation Monitoring System (EIMS) was considered by evaluation panel to be the linchpin of a construction based on consideration and identification of the most suitable actions It is primarily policy-makers in the Member States who arc targeted in the six main areas of EIMS analysis (evaluation, innovation in firms, innovation- support infrastructures, regional aspects of innovation, innovation financing and innovation policy). 5 Panel's conclusions and recommendations SPRINT occupies an essential and original gap, that of developing SME innovation policy. Furthermore, the programme has been able to develop tools which tackle a complex problem. Finally, SPRINT has become progressively acknowledged by field actors as a privileged meeting ground. For these three reasons, the panel considers that the overall working process and the actions which are carried out by the SPRINT programme should be continued and even amplified as part of the future programme for the Framework Programme's third activity. The panel is convinced that the programme's weaknesses would not justify' the marginalizarjon of the SPRINT system. The panel identifies the following weak points: a certain inability to publicize its global working process which has yielded a small overall visibility, and sometimes even a reputation for dispersion; poor dissemination of results from pilot actions such as EIMS studies, which therefore reduces their impact; insufficient Commission. interaction with national authonties and with other services of the The panel also feels that there is a lack of qualified staff for the size of the programme. While recommending that intermediaries remain the main target of the SPRINT system, the panel would like to see regular, category-specific reports on the impact on SMEs of the actions launched. The panel also considers that some direct intervention gaps on SMEs do exist, and that these could be developed - for example via carefully prepared pilot actions - without violating the principle of subsidiarity The panel stresses the importance of renewing Community actions by a rigorous process for discarding actions going hand in hand with and a mechanism for selecting new programmes, based on consultation (with the other directorates-general involved but also with all those involved in the innovation process) The Commission must strengthen its contact role with regional authorities and improve the dissemination of results and studies derived from the activities of the programme Such dissemination means structuring the lessons learned and transforming "tacit" knowledge into explicit information which can be broadly disseminated m written form. Transparency (visibility), dissemination and improving the SPRINT system interaction summarize the three axes for Overall, the SPRINT programme represents a remarkable and highly articulated set of actions, and it has proved to be a very effective means of support for national and regional innovation policies, while respecting the principle of subsidiarity. 10 PART ONE TERMS AND FRAME OF REFERENCE A. T E R MS OF R E F E R E N CE OF T HE GROUP; W O RK M E T H OD Our committee was asked by the Commission to produce an evaluation report on the SPRINT programme. Some of the questions asked are common for this type of exercise: have initial objectives been achieved9 Is there sufficient rationale for continuing current projects, taking into account economic trends9 In this particular case a further question needs to be asked on how to derive the greatest benefit from the incorporation of SPRINT in the "Third Activity" of the Fourth Framework Programme. It should be remembered that SPRINT was not part of the third Framework Programme and that its inclusion in the Fourth Framework Programme is linked to the innovation concept SPRINT has so far been the only Commission programme whose main objective is to strengthen the innovative capacity of providers of goods and services: this concept of innovation is added for the first time to those of research and technology m the very definition of the Framework Programme After getting to know the SPRINT programme and its many schemes, the panel was able to confirm that the programme had remained true to the intentions of its founders. It was not a classical technology research programme, but an implementation at Community level of an innovation policy intended mainly for standard SMEs As we shall see later, such a policy follows necessarily a systems approach: in particular, it means multiplying interaction paths between innovation operators, and guaranteeing that the measures taken for their benefit are complete, complementary and coherent. The danger of such a policy is to focus on one element of the innovation system while ignoring the need for others and failing to sec the wood for the trees This has been avoided as a result of the highly experimental nature of SPRINT, which successively investigated all the methods of supporting innovation and was able to implement bv trial and error what we shall later call the SPRINT system. The panel therefore essentially concentrated on analysing SPRINT as a complete and interactive system. It did not inevestigatc each initiative m detail, (even though Annex 1 provides a brief review of them with an appreciation), there was no time for detailed assessment, and moreover, most initiatives were the subject of separate evaluation exercises which, after having their validity assessed by a few restricted public-opinion polls, were a source of inspiration for the panel in its general conclusions. 11 The panel met SPRINT CIT (Committee for Innovation and Technology Transfer) delegates separately; visits were also paid to national policy-makers from two Member States. Finally, interviewed along with those responsible for each representatives of three Directorates with an interest in SPRINT. line of action of SPRINT were B. FRAME OF REFERENCE The SPRINT programme is made up of a variety of schemes or initiatives whose global coherence is often ill-perceived. There is a striking contrast between the opinions of those working m the field, very satisfied with the support they get, and policy-makers who worry about the dense overall appearance of SPRINT and cannot clearly distinguish its objectives and its logic. Before getting involved in evaluating each line of action, the panel considered it necessary to define the framework within which the objectives and initiatives of SPRINT are located. There is no innovation policy, whether research-led or technology-led, which does not claim as a central objective the competitiveness of firms, m a context in which they are abruptly exposed to SPRINT, of course, and to the programme into which it is to be incorporated: the Third Activity of the Fourth Framework Programme change. This also applies competition and to international technological Ever since its origins (1984), the original aspect of SPRINT has been its intention to aim at innovation m SMEs. particularly those which do little or no R&D. This is in contrast with traditional policies which seek to develop pre-competitive research in industrial laboratories, mostly within large firms. It is only recently, in fact, that the clear distinction between R&D policy and innovation policy been well understood At Community level, SPRINT has been a useful focal point for those who have set the tone for the new policies in each Member State and region. In terms of industrial policy, innovation in SMEs is a segment whose importance is universally recognised, but one in which it is difficult to act : either because we lack recipes or because the SME target is more diversified than the large firm or laboratory target, but also because it is tricky for public authonties to intervene in a area very close to the market, such as SME projects. This is why we need to act together, at a European level, to gain a clearer picture of the requirements, to compare experiences and to disseminate " best practices ". The panel summarises the latest ideas on innovation as follows: 1. What is innovation? Innovation is defined as "the process which leads from the idea of new products or new processes to its successful commercialisation; the novelty may be radical, but very often it is limited to an improvement on what already exists". In order to succeed in this innovation process, the firm must incorporate all the necessary knowledge in its product or process. To do so it must bring together a number of financial and human resources and combine its internal know-how with a wide range of external 12 expertise. Part of this knowledge is technological, but other parts deal with management, marketing, financing, intellectual property, market prospects, etc. The innovation process The two concepts are should not be confused with R&D. complementary, but there is a great deal of innovation without any specific R&D effort and research by no means always leads to innovation. The dissemination of important, but not unique, aspects of innovation technology and the various forms of technology transfer. are 2. Research policy and innovation policy are two different things Besides research policy, also called scientific policy, there is now innovation policy, whose aims and content are very different: - - research policy aims to develop scientific knowledge by supporting public laboratories and, more indirectly, industrial laboratories innovation policy aims to promote innovation projects originating within firms, i. e. the successful commercialisation of new products and new processes It therefore directly contributes to the competitivity of industry. The mistake has been to confuse these two objectives: even when the new product or process has a strong technological base, its commercial success depends on a number of factors of which the use of new scientific knowledge is rarely the most important. And vice versa, the competitiveness of firms is by no means the only goal of scientific development. It is therefore essential to unravel the two objectives, and hence the two policies. It should be remembered that this confusion, still acute today, stems from the "linear model" which describes the innovation system as a pipe: fundamental research results are injected at one end, and the commercial products come out at the other. This reasoning presupposed a direct and unavoidable link between economic competitiveness and intensive research. All the experience of the past 20 years shows how rarely this link actually exists. Not only the aims, but also the content of research policy and innovation policy are different. Innovation policy takes into account the development of knowhow, since the economy is increasingly dependent on this, but whether the knowledge to be developed is tacit or explicit, whether it is part of a firm's heritage or that of the public sector, it goes fer beyond scientific knowledge or technological knowledge stemming from research. The nature of innovation is also managerial, financial, commercial, legal, and so forth. Furthermore, the creation of new knowledge is not the purpose of innovation policy, (but the one of research efforts, whether locally or anywhere else in the world): the crucial question for innovation policy is whether or not the necessary knowledge is actually used by firms. Its aim will therefore be as follow-s: - to place the SME within an environment where all expertise and the necessary knowledge arc available, i. e. the individuals and organizations which not only 13 have this knowledge but have also been trained to give efficient help to firms, particularly SMEs; - to help SMEs to be in a position to use this knowledge and to combine and take advantage of this expertise. The difference between the two types of pohcy is well illustrated in the context of technology. For research policy, the aim is to create new technological knowledge, particularly of a generic nature, i. e. able to be used in many different sectors and suited to many different products. For innovation policy, the key issue is at a later point when to firms, at the right time and m the right relevant place. There is interaction to the extend that awareness of demand brings to light new research areas. technologies must be disseminated To summarise, to be conducted simultaneously and on the same footing They must also, of course, interact and support each other. innovation policy need research policy and 3. Characteristics of an SME-targeted innovation policy As stated above, the aim of innovation policy is to boost the success of innovative projects in SMEs. What form should this policy take m the current climate9 a. An SME-ohented different aspects. innovation policy must be all-embracing and include a number of All models describing the innovation system stress its systemic and interactive nature. The size of SMEs prevents them from having all the necessary in-house expertise, however, and often they arc neither prepared nor trained to work with partners and therefore have great difficulty in taking full advantage of their environment. An innovation policy should therefore ensure that: - SMEs have knowledge of and access to all the necessary partners; - - these partners are prepared to work with SMEs (this includes a training policy, in particular); the technological needs of SMEs, whether obvious or latent, are identified as a guide to the development of basic knowledge, - interaction develops between all operators m the innovation system via: * promoting interface services and interaction platforms; * enhancing the absorption capacity and appetite of SMEs for innovation, * helping SMEs to network; 14 specific (vertical) policies such as those relating to research, technology, education, energy, health, telecommunications, equipment etc. are encouraged to take account of the specific needs of SMEs; finally, but only where necessary, funds are injected where market imperfections are preventing the private sector from starting up or working properly. b. An SME-onented innovation policy therefore has certain characteristics; - - - it has to run a number of different schemes simultaneously, since it has to take mto consideration the wide variety of SME partners. It may therefore appear to be diffuse. it must attempt the various public authonties responsible for these partners, according to their profession It is therefore horizontal; to coordinate policies already launched by it will avoid becoming a substitute for such authonties It will, for example, only exceptionally give direct financial support to laboratones developing new technologies (this will be the province of technology policy, a sub-structure of RTD policy). c Innovation policy policy, which is supply-led) is to be guided by the demand from SMEs (unlike exploitation This demand varies from one category of SME to another: without going into detail, there are three major categones - new SMEs based on a technological idea (NTBFs), whose purpose is to commercialise a completely new product Thcv usuallv lack financial resources as well as managenal skills; - research-intensive SMEs (and suppliers of technology m the form of hardware, software, matenais etc ), which are usuallv clients of public R&D programmes, - by far the most common category is the adult SME which needs to review its product range or modernise its processes Some arc pnmanly sub-contractors of large firms, while others have their own products It is these SMEs whose needs are the most varied and difficult to satisfy, often because those needs are neither defined nor expressed. One basic challenge here is to strengthen the absorptive capacity of these companies in order to facilitate innovation Table 1 siimmariscs these differences The need to take demand into account explains the importance currently given to general innovation advisers, or field agents (sec annexes 1 and 2). d An SME-ohented innovation policy is largely implemented at regional level, because most SMEs find their resources in their local environment. But, as we shall see later, this does not preclude action on a European scale. 15 e. Innovation policy includes technology dissemination. Technology dissemination is an important aspect of innovation pohcy since it is crucial to know how to incorporate new technological knowledge into products or processes, whether originating directly from a laboratory or whether already used in another product or sector. It is therefore desirable and even necessary that those who are responsible for innovation, whether in public institutions or pnvate firms, devote a large part of their efforts to the dissemination of technology. This was recognised by the SPRINT decision-makers, setting dissemination as one of the three objectives of the programme. It is now understood that, if technology dissemination becomes an appendix of research, it will be less effective: research sees dissemination merely as a means of exploiting its results, and justifying the investment in retrospect. There is then a gradual shift towards the so called research exploitation policy: an interesting activity, but one with a limited impact. The policy of influencing those in charge of the dissemination and transfer process is more realistic: a first part of this knowledge is primarily tacit, i. e. it can only be disseminated by those who created it or acquired it by using it on a another product or sector. A first step is therefore to mobilise these experts, and make them take part m innovative projects in firms or, better still, create firms based on their ideas Another part of the knowledge is explicit, or can be made explicit by building models or by technological research It can then be disseminated via physical media such as databases. In all cases it is essential to boost the absorptive capacity of firms themselves, the last chapter of the dissemination process this happens far more easily when firms have properly learnt how to interact with their information sources. Finally, to complete this description of innovation policy, it must be said that innovation policy requires extensive flexibility because of the wide vanety and rapid changeability of situations. Any innovation polio. ' must at this stage, be experimental C W H AT CAN BE T HE ROLE OF A EUROPEAN P R O G R A M ME TO S T I M U L A TE INNOVATION IN S M E s? Since one of the first requirements for innovation in SMEs is face-to-face contact, the role and rationale of a European programme needs to be carefully established in view of the subsidiarity principle and the extreme diversity of regional circumstances One of SPRINTs achievements has been to specify- what this policy could or should not be, by combining analysis, experimentation and evaluation. According to the panel, a European programme must: - echo the variety of regional and national policies, stimulate and nurture them; promote collective reflection and any exchange of experience between policy-makers and operators in the field It must therefore increase the Community's economic and social cohesion; 16 - study, evaluate and disseminate a range of best practices through common guidelines and pilot demonstration projects suggesting action models based on analysis. Establish a common language; - help build up a solid infrastructure of local agents, particularly interface services; - give this infrastructure a European orientatioa, - feed it with European information, thus aiding the free circulation of technologies, - accelerate the dissemination and utilisation of technology and strengthen the absorptive capacity of SMEs; - - increase the social and economic cohesion of the Community, in line with regional or national policies, this policy must be honzontal It should be coordinated with other honzontal policies such as those of DG XVI (support to LFRs), DG XXITI (SMEs) and DG III (industrial policy). It must interact with "vertical" policies: research, education, telecommunications, energy, finance, competition etc and provide them with suggestions (not to say recommendations) Nevertheless, unlike regional innovation policy to influence all SMEs innovation policies, it would be difficult for a European After having highlighted the frame of the reference, part two of this report analyses the whole range of SPRINT initiatives, regarded as a system which must respond globally and in detail to the broad objectives of an innovation policy. Part Three is a general appreciation, followed by recommendations for enabling the SPRINT system to adapt to rapidly-evolving tasks once it has been incorporated mto the Third Activity. Let us state here and now that the policy implemented by SPRINT corresponds well to the stated objectives. It has succeeded in following up the transformation of policies in various areas of Europe Despite its obvious imperfections, therefore, SPRINT is an original and appropnate tool for tackling the innovation problems of SMEs of all kinds. The panel therefore stresses the scnous losses which would be incurred by an even partial abandonment of this approach as SPRINT enters the R&D Framework Programme: the objective of the Framework Programme is first and foremost to give support to research; hence there is a danger that the Third Activity" might be used merely for addmg value to the specific programmes. According to the work programme of the Third Activity, its general objectives are very largely in line with those set out in this reference framework 17 PART TWO ANAL YSIS OF THE SPRINT SYSTEM A. OBJECTIVES SPRINT action lines could be described as a juxtaposition of schemes adopted m accordance with the objectives defined in 1982 and 1989, which can be summansed as follows: a. to reinforce the absorptive capacity of SMEs, b. to promote rapid dissemination of new technologies and innovation throughout the Community economy, thereby strengthening economic and social cohesion m terms of innovation and technology transfer, c. in the field of innovation and technology transfer, to increase the coherence and the efficiency of innovation tools and policies, whether regional, national or community- based. SPRINT tackled these objectives by implementing a system of schemes whose coherence we will assess later. B. METHODS AND MEASURES OF THE SPRINT PROGRAMME The challenge for SPRINT was to invent a working method in a completely new area. Even at local level, an innovation policy is difficult to conceive and implement. At European level, choices are still more difficult because the subsidiarity principle has to be respected and therefore, directly dealing with SMEs is an exception, indeed,-it is now recognised that for the average SME, local schemes are most effective Faced with these difficulties, the SPRINT programme has developed original working methods ever since its launch. 1. First of all, combine reflection and experimentation, evaluation and dissemination: - The EIMS (European Innovation Monitoring System) initiative makes up the first part of this approach. It is based on a series of studies and workshops which deal with the various aspects of innovation policy, and which have enabled to strengthen the European network of experts in the subject. 18 - Many of SPRTNTs pilot schemes described below were launched as a result of this reflection platform. There is a now a well-known expérimental approach within SPRINT which allows real-size testing of various projects. - Those experiments which turn out to be successful are adopted by the regional authorities and local agents which took part in them, but ideally their results should be more widely distributed, which ought to occur if there were effective dissemination of such practices. Indeed, a dynamic programme such as SPRINT, which Tiust tackle constantly-evolving needs, should include generally an "exit mechanism", or a means of handing over proven schemes to others. As Part Three will demonstrate, this exit mechanism is still far from adequate. The reflection / experimentation / evaluation / dissemination approach is adopted not only m the Specific Projects Action Line (SPAL), but also in schemes such as MINT, TPF, SPNET etc. ; these systematically include SMEs as well as the various types of partner (intermediaries and others). 2. Evaluate the actions The logical follow-up to the reflection / experimentation cycle consists of assessing the policies of regional decision-makers. This is the case with the RITTS and RTP schemes recently implemented and with the consultancy schemes for science parks. 3. Then build up networks The aim of networks is twofold to disseminate best practice, particularly knowledge gained through SPRINT pilot projects, and to launch European areas of interaction between operators in national and regional innovation systems. -The purpose of some of these networks (macro-networks), such as EACRO, RTAC, etc. , is to bring the vanous operators together and to disseminate information. These also provide a framework for organising major conferences from time to time -Other networks (mini-networks) are targeted more at collective action: the adaptation and dissemination of technologies (RTO mini-networks), or technology transfer (Inter-firm mini-networks) 4. Target SMEf partners To aim these schemes primarily at SME partners (various types of intermediaries and interfaces), and interaction platforms (markets, fora, science parks and technopoles) is a choice of method. Since the programme cannot directly influence some 300 000 SMEs, it addresses a few thousand SME partners and hopes for a wide multiplier effect. SMEs are directly involved in a few pilot projects only to study the practicalities and difficulties of their interactions with intermedianes and the effectiveness of interaction platforms. We shall come back to this. 19 The means available to SPRINT are very small for the task. Admittedly, stimulation rather than management is the watchword, implying a lightweight in which human resources are a key element. Because of insufficient permanent staff, SPRINT has relied on a network of consultants. We shall come back to this in Part Three of the report. structure The interconnections of the action modes with the categories of operator and then with the objectives are summarised in Tables 2 and 3. C. COHERENCE OF THE "SPRINT SYSTEM": ANALYSIS BY CATEGORY OF OPERATOR As mentioned above, a svstems approach only can make a real impact on an environment as complex and interactive as the innovation system. Is the SPRINT programme a system, to analyse u having an internal successively its coherence, through two grids: the innovation operators gnd and the objectives gnd. logic9 To assess the panel chose The interconnections between these two gnds are summarised m Table 4 Analysis by category of operator One of the main virtues of SPRINT has been its recognition that the innovation process innovation relies on a vanety of SME partners and its consequent promotion of emerging services. Whatever the sector of activity, SMEs cannot work without partners with expertise conducive to innovation and complementary to the internal know-how of the firm. To illustrate this diversity, the panel uses the so called hexagon diagram (sec Figure 1): SMEs are m the centre and on each side of the hexagon are the six main types of SME partner: - various types of consultancy (management, marketing, intellectual property), - Technology Resource Centres (RTOs, or Research and Technology Organisations), - financial institutions (hanks and capital development organisations), generalists who stimulate the demand and organise the coherence of the various schemes: - field innovation consultants and - regional authonties responsible for innovation policy, and lastly - other firms (SMEs and large firms) 1. Consultants These were the original target of SPRINT. Technology-licensing brokers were grouped into "inter-firm mini-networks", still active today. The Til network, easily set up, grouped them on a wider European basis. More recently, SPRINT launched a vast operation for bringing together SMEs and management consultants (MINT). They have 20 benefited from three original lines of action (value analysis, quality and design), thanks to which European speciahsts- have been able to create real communities (similar to scientific communities) which developed the knowledge and various relevant documents to disseminate. The creation of a panel of consultants and managers of science parks and technopoles should also be mentioned. By tackling technology management, the programme neglected other types of consultant. such as those who conduct market analysis and those who deal with intellectual property problems. 2. Technological partners SPRINT grouped the various types of technology supplier under the heading of RTOs ( Research and Technology Organisations). A conference was organised by SPRINT m 1993 which enabled the development of these important SME partners to be assessed They include: - sectoral technical centres which mostly conduct collective research projects on basic technologies m traditional sectors; - CROs (Contract Research Organisations), which have a similar work function but are privately owned, and work with SMEs for only part of their time. - Technological Resource Centres (TRCs), which concentrate on one technology only (laser technology, matenals technology etc. ). Small teams developed, for instance in France, m close contact with laboratones and are totally dedicated to SMEs (testing, analysis, participation in product or process- based projects etc. ) technical The first category was supported by SPRINT in the early days; m particular though RTO mini-networks which are still successful, conferences and workshops which regularly bring together a number of RTOs on a European scale, and the creation of the macro- Industrial Cooperation Research network FEICRO Organisations). (Federation of European The second category benefited a few years ago from the creation of the macro-network EACRO (European Association of Contract Research Organisations), whose overall activity is fairly intense. The third category has been somewhat neglected 3. Field Consultants (innovation & technology consultants) It is only recently that the new function of RTACs (Regional Technology Advisory Centres) has developed. It can be descnbed as follows: to explore the SME system, to diagnose their needs, and to offer SMEs a wide choice of technological partners (and others), and eventually to help SMEs launch and pilot the definition phase of their innovations. The macro-network of such consultants (RTAC) was launched two years ago. It is too early to assess its impact, but it should be noted that RTAC working groups have been created and do some useful work. 21 4. Financial partners for innovative SMEs Innovation is an industrial operation which requires not only self-financing and public support, but also substantial funding from the financial sector. Hence the importance of banks and venture capitalists as partners to the SME. To make banks aware of the specific problems of SMEs, to help venture capitalists to set up throughout Europe and to have access to the same tools as their Amencan colleagues had to be one of the main pnonues for a programme such as SPRINT. The nature of SPRINTs action in this new and difficult area is expérimental At the beginning the macro-network EVCA (European Venture Capitalists. Association) was created. Then the banking system was approached through the TPF scheme Because of its limited success, this initiative was recently reassessed, taking into account the lessons learned. In collaboration with DG XVHI and DG XXIII, an EIMS type initiative is adressmg venture capital problems and is aiming at the creation of a European market of the NASDAQ type. Further experiments should be launched in this rapidly-changing environment (see paragraph 6 of Annex 1), which SPRINT is far from having covered completely 5. Local (and national) policy-makers Regional authorities now play a major role m creating an mfrastructure for supporting innovation in SMEs, particularly by: - injecting financial resources mto those SMEs and mto public or pnvate innovation service organisations; - by organising the interactions between these innovation operators, - by favouring coherence of the actions taken by the various authonties concerned The regions have therefore become major partners for SMEs. Has SPRINT taken this into account? « SPRINT took action a long time ago at the local policy-maker level through its science park consultancy scheme. Science parks play an important role m technology transfer and they are rapidly increasing in number. SPRINT supported many of them from the outset and allowed a number of science park promoters, m fact the majonty of them, to benefit from the experience acquired by their predecessors. Today the feasibility study strand has not been abandoned, but added to by a second phase of evaluation studies of existing science parks with some matunty. - Action in support of regional policy-makers has suddenly become highly relevant thanks to the launch of the RITTS and RTP (piloted by DG XVI) schemes. The ambition here is broader, since RITTS or RTP tackles the overall regional innovation infrastructure, and analyses and aims to redefine what should be done to improve it. The accent is on the consensus which should prevail amongst the various relevant administrations and on the interaction which should be developed between the vanous local innovation operators (the various firms and their partners). 22 The very recent nature of these actions can be criticised, together with the lack of qualified personnel within SPRINT to undertake such a task (essentially accomphshed by consultants whose competence should be carefully monitored). 6. What SPRINT has overlooked The range of SME partners dealt with by SPRINT is large. However, the panel considers that there are two gaps m the programme: - Other firms: experience has shown that other firms have become a major partner for SMEs. For example, high-technology firms are the main technology suppliers for SMEs through hardware, software and matenals technologies which are manufactured on demand. More generally the newly-organised industrial partem multiplies day-to day interactions between firms and makes them inter-dependent. This is particularly true of the innovation process, m which SMEs integrated mto a network succeed better and more quickly than those which are not integrated. According to arrangements to be defined, SPRINT could be expected either to give direct support to the creation of busmess networks (SME/large firms networks, SME networks, clusters), or to support those attempting to develop such networks The SPRINT programme has so far neglected Even though the TT Days and some EIMS schemes work m that direction, their impact is far from adequate, and there are no real SME/large firm networks. this aspect of the problem. - Interaction amongst SME partners: no senous effort has really been made to bring together all the vanous SME partners and reinforce their interaction, apart from S PAL, even though one has to acknowledge that such a task would not be easy D. C O H E R E N CE OF T HE SPRINT SYSTEM - ANALYSIS BY O B J E C T I VE The various SME partners form a complex entity which SPRINT has succeeded in assessing and targeting, except for a few which have been overlooked. Other partners will probably come to light; the method which SPRINT applies should enable them to be identified. But this is not enough. It is necessary to check that the vanous objectives of a European innovation policy are being fulfilled, at least where the pnme target of "standard" SMEs is concerned. A detailed analysis of the SPRINT system by objectives is included in Annex 2. The gnd used is that which defines the work programme of the third activity of the fourth RTD FWP, into which it has been decided that SPRINT initiatives will be incorporated. The three objectives of this work programme arc the following: 1. Favouring an environment beneficial to innovation and the absorption of technologies 2. Establishment of an area for the free circulation of technologies in the EU 3. Supply of appropriate technologies to the SME system 23 The links between this work programme and the general objectives of an innovation policv as described are clear: it is therefore natural to refer to them. 1. Helping to create an environment beneficial to innovation in SMEs a. Influencing specialists (section 1. 3 of this report: "to help services"). infrastructure for field operators, particularly interface implement a solid The aim is to increase the individual quality of SME services through the creation and chssemination of basic knowledge and practical know-how. The following approaches are identified m this context: - management tools such as value analysis, design and quality (the documents published under these headings are a genuine asset); - field projects of the MINT type (provided that the right lessons have been learnt from comparing the contractors' methodologies), - to improve the homogeneity of the quality of mini-networks m which les s-developed European countries participate; (the Segal Quince evaluation of mini-networks stresses that this improves the general quality of networks); - the experience acquired by RTOs within specific projects. It is regrettable that there has not been enough systematic effort to learn from these vanous expenences. Some EIMS studies should be dedicated to them, and enable best practice to be more widely disseminated. In general, the training aspect should be developed in connection with regional and national authorities. b. Influencing tools and policies Repeating what was said earlier in the first part of this report, the problem here is "to action disseminate best practices models based on reflection, and to establish a common SPRINT uses the EIMS experimentation/evaluation system to further that aim, as described above. In this context the following initiatives can be identified: - through a policy of demonstration which proposes language". - TPF, which aims to establish a new mechanism of interaction between banks and the suppliers and users of technology; - specific SPAL projects in which pan-European experiences allow model initiatives be demonstrated to local or national policy-makers, to - the MINT programme, a large-scale management support demonstration scheme; - programmes for assessing the instrumental value of a science park or innovation policy/infrastructure. cost, they investigated a series of local schemes and are a powerful dissseminating best practice, regional Such schemes have a number of merits: with low tool for 24 Such a companson of initiatives with objectives reveals a lack of instruments aimed at increasing the absorption capacity of SMEs, by influencing the selection or training of their personnel. In particular, very little was done to increase human mobility from public research institutions to companies or between firms. These schemes analysed aim to disseminate widely experiences which have been tested successfully at local level with or without SPRINT support. Here, SPRINT can be cnticised mostly at the level of the dissemination of results. Even though macro- and mini-networks, general conferences, EEMS workshops and information campaign on best practices in transnational technology management networks are all instrumental m disseminating lessons learned, there is a major gap: putting the lessons learned from each experience to enable all local or national innovation policy makers to benefit from them. together recent the SPRINTs lack of influence on policy-making is noticeable in that action taken under the structura] funds is rarely inspired by SPRINT. c. Disseminating technologies This is SPRINTs second explicit objective, and a particularly important one. Let us stress once again that there are a number of mechanisms for bringing the necessary technologies to the firm. • The firm may buy certain items (software, hardware, etc. ) which incorporate the desired technologies, thus requiring a limited learning process. SPRINT aims to promote this process through an onginal financial tool, TPF (see Annex 1, paragraph 6). • A similar approach is to buy licences m this area, SPRINT supports the mini- networks of "licensing brokers" There may be financial tools which would help such purchases. • In order to tackle an innovation project properly, the firm may call on experts who know the basis of the technology to be integrated and agree to take part m the project as real partners SPRINT has tned to develop this new type of activity for consultants (specific projects). • The firm may go as far as employing these experts for good. Some national this type of mobility. SPRINT has recently programmes exist whjch favour launched a network of people responsible for these programmes- This is an interesting effort, but is not yet adequate, since the ultimate aim of such an approach is to increase the absorptive capacity of SMEs, which requires far more attention. • Lastly, the dissemination of explicit information should not be neglected (explicit knowledge in contrast to the tacit knowledge which is used in the approaches described above). This is the role of databanks and other types of technology-watch tools extensively developed by the CORDIS system (VALUE programme). In all cases, dissemination is a learning process to learn. In the long run it is more efficient for the firm to learn to detect and rapidly master new technologies than to supply it with tailor-made technologies. If the challenge for a in which the interested learns firm 25 dissemination policy is to develop "learning products", it could be said that SPRTNT has prepared the ground but that much remains to be done. 2. Europeanising operators in the innovation system Here we have in mind the European networks which SPRINT has set up in a systematic way, as and when new operators arnved on the innovation scene. The way thev- work is described in more detail m Annexes 1 and 2. They are obviouslv valuable tools for developing a European reflex amongst operators m the innovation system who work mostly at regional, sometimes national, level. Interaction platforms developed within the context of SPRINT should also be mentioned - investment fora, TT Days, and some specific projects. These networks and platforms are excellent initiatives. As already stated, it is regrettable that these initiatives aimed at developing inter-firm networks are so embryonic, it is also regrettable for disseminating information, not only top-down information, but information exchanged between two nodes of a network on what is being produced, invented or disseminated m each region these networks have not been used sufficeintly that 3. Horizontal schemes The purpose of a honzontal programme such as SPRINT is to provide a catalyst to enable vanous specific (vertical) projects to support its objectives. SPRINT has relied on a considerable network of field operators and therefore is easily able to detect the vanous needs of SMEs. This information on international markets for products and services, industnaJ protection, standards, etc. In all these areas SPRINT could speak up for SMEs when dealing with large European programmes and those who establish rules and procedures and to some extent it has already done so. is true of technology, resources, financial There will be further development of this theme m part 3, paragraph C. 2 For a long time SPRINT had no meaningful collaboration with other services, but has succeeded recently in establishing some significant links such as - a joint programme with DG XVI on RTP. SPRINTs experience is being widely used by those responsible for the structural funds This looks very promising. - interaction with DG XVIII and DG XXIII on the problem of venture capital, - making the directorate responsible for telematics aware of the links needed between science parks and technopoles, - co-operation with EUROSTAT on the Community Innovation Survey, - links with DG III on sectoral projects This list is not exhaustive and unfortunately does not include any RTD programmes, nor does it include directorates in charge of intellectual properties and standards. 26 E. CONCLUSION This analysis demonstrates that the SPRINT programme is a coherent system in which the various lines of action of an innovation pohcy involve all those active m the innovation system. The system was built up progressively as new operators and new needs emerged, and has evolved more as a response to demand than as an attempt to create an "attractive" programme. The EIMS system is used as a filter for projects proposed. Since SPRINT is now recognised by innovation operators as their European focal point, more and more projects are being put forward. In saving this we do not wish to conceal the defects of the SPRTNT programme, which are listed m Part Three of this report - particularly its inability to descnbe its overall working procedures accurately although some efforts have been made to remedy that Each operator sees m SPRINT only what mterests him or her, and external observers descnbe it as unstructured and diffuse (this is very often the impression given by innovation programmes, however). Interaction does take place between the vanous initiatives, but not always at the right level. These criticisms are moderated by the considerable progress made by SPRINT over the past three years. The general analysis provided by the EIMS programme, the contacts made with other directorates and the increasing implementation of measures m the regions following the evaluation process are all starting to provide SPRINT with the visibility and strategic importance it used to lack :-&- 27 PART THREE CONCLUSIONS AND RECOMMENDATIONS A. GENERAL APPRAISAL OF T HE SPRINT SYSTEM The segment occupied by SPRINT is both onginal and essential: the development of SME innovation policy. It has also succeeded in developing appropnate tools to tackle a complex problem. Finally, SPRINT is increasingly often acknowledged by field operators as a preferential meeting-place. For these three reasons, the panel considers that the overall approach and the initiatives implemented by the SPRINT programme should be preserved or even amplified under the Third Activity of the Fourth Framework Programme. SPRTNT also has its weaknesses: recommendations, SPRINT system within the Framework Programme them and has offered some the that they would justify marginalising but it is not convinced the panel has identified SPRINT is indeed a system in which each mitiative makes sense only as part of a more general policy. It is this system which the panel has attempted to analyse and evaluate rather than spending too much time assessing the separate lines of action Let us summarise some of the strengths of SPRINT. Its achievements have been - - - - to tackle all aspects of the problem of innovation, including finance and management; to combine reflection and action, experimentation and evaluation, to generate a number of "action models" for pnvate and public policy-makers, in particular at regional level; innovation to create real European communities of experts in professional circles in which they did not previously exist, thus fostering the cohesion of innovation practice, tools and skills Some weaknesses which emerged during the evaluation must also be mentioned: - the inability to publicise its general approach, resulting in a low profile for the programme or even a reputation for being diffuse, 28 - poor dissemination of results from specific initiatives such as EIMS studies, thus reducing their impact; - hence an inadequate catalytic effect on regional or national innovation schemes; - little too interaction with national governments and other Commission departments, even though influencing other programmes is one of the major objectives of a horizontal pohcy. The root of most of these weaknesses is a shortage of qualified staff, only partially offset by the creation of a technical assistance unit. The SPRINT programme appears to be implicit Commission rules according to which the number of staff suffering from programme available is proportionate to the budget allocated. Yet SPRINT is an activity whose impact derives no less from the expertise of its staff than from funds granted. its budgetary To compensate for its staff shortage, SPRINT relies on a large network of consultants. This is useful but not sufficient, because permanent staff are essential for accumulating experience and knowledge of the overall system, for disseminating results and for guiding and controlling consultants. One might ask why so many initiatives were undertaken with so few staff: to have done less would have reduced or undermined the systemic nature of SPRINT, whose overall effect relies precisely on the diversity and complimentanty of its initiatives. B. P R O P O S A LS FOR T HE C O M P O S I T I ON OF T HE P R O G R A M ME The strength of SPRINT lies m the importance of the segment it fills and the general approach it has taken. However, it can only be effective if the diversity of its initiatives precisely meets the needs of innovation operators In Part Two of this report (and m Annexes 1 and 2) the panel attempted to define this relationship, first by analysing the programme in the light of the objectives of the Third Activity, and secondly m the light of what concerns the operators In doing so the committee detected some deficiencies in the overall process and had some doubts concerning particular Imes of action, but this is not essential The panel idenufies the following three main issues: themselves 1. A programme such as SPRINT must be flexible and evolutionary: The environment changes fast New partners appear, other partners lose their importance or no longer need support The demand from SMEs changes as the need for innovation spreads to new categones of firms SPRINT must be able to hand over the management of certain schemes to other operators (in the Commission or m a Member Stale) Only then will SPRINT be fully able to play its role of catalyst and stimulate a genuine learning process amongst innovation policy makers. 29 It is therefore essential to have a mechanism for renewing the initiatives. Where exit mechanisms are concerned, it should be possible tc: - specify the date and the mechanisms for terminating each scheme; include within each project the time and resources for learning lessons according to a transparent methodology which is to be continuously improved It is important that the follow-up and evaluation process should be extended to a large number of new projects run m certain regions or Member States, i. e. beyond those run as part of the third activity; organise a follow-up mechanism according to rules depending on the European dimension of the scheme; for example: * * * the scheme could be followed up at Community level, either within the third activity (e. g. the micro-network activity, each project of this line of action being limited in time, as it is now), or within other Commission departments. the scheme could be continued using resources provided by its participants (as is true of most SPRINT-initiated macro-networks, EVCA, etc. ): the scheme could serve as a model for regional or national policy-makers using the results of SPRINT pilot projects (this should be M INT s future). Another unportant measure would be to replace one SPRINT initiative by another pilot action along the same Imes, using the reflection-action-evaluation-dissemination approach of which the panel so strongly approves For example, innovation financing is cunently an unportant question of universal concern, and one m which a senes of tests should be launched to help find answers These mechanisms already exist to some extent m the SPRINT system, but what we are suggesting is to systematise and throw more light on an overall approach which is largely a mystery to outsiders. The entry mechanism, while remainmg quite sunple, should also be made more transparent and allow future clients to take on a broader role: - - the three main sources of ideas should remain (a) the demand constantly expressed in the field (through TT Day events, the Specific Projects, etc. ), (b) the EIMS mitiative, which filters ideas and improves the targeting and definition of projects which are still unclear, and (c) the results of evaluations of specific projects and programmes concerning the choice of new initiatives, a committee of independent experts is one solution; an intra-Commission working group bringing together vanous Commission programmes which would later be likely to take over some of the advanced schemes is another. These proposals also apply to the choice of EIMS themes. 30 By stressing these entry/exit mechanisms, the aim of the panel is definitely not to reduce SPRINT to an experimental programme. On the contrary, the panel considers that an innovation policy under the third activity should combine: - an observation, demand assessment, identification and dissemination of best practice and experimentation project, as is expected by future users both in the Commission and in regional and national authonties; - long term projects. 2. Should the programme continue to target intermediaries, or should directed at SMEs? it be SMEs are, of course, the ultimate target, and the ultimate critenon for the success of SPRINT is whether or not it considers the specific needs of the various SME categones However, the main approach of SPRINT mitiatives at present is to mcrease the degree of efficiency and europeanisation of SME partners instrumental m the innovation process. This produces a leverage of around 100, permitting mdirect contact with some 100 000 of a total of 300 000 potential SME clients. Ideally one should go beyond this and contact SMEs directly. This could be done m a number of ways: a. Maintain SME participation in pilot schemes for testing the efficiency of vanous modes of partnership with SMEs It is far from obvious that "intermedianes", the current name given to SME partners, exactly meet the demand from SMEs. SMEs are highly diversified and have many different needs, moreover, many intermediaries do business mostly with large firms and are not willing to make the effort to adapt to SME demand, which is often unprofitable. There are two positive aspects to SME participation m pilot schemes: - give direct help to SMEs taking part m the scheme (as with MINT, Specific Projects, 'I"1 Days, Investment fora, etc. ) - check that the action taken by SME partners really meets the requirements of the firms. Test the quality of these partners and recommend ways of improving their professionalism in dealing with SMEs A close analysis of observed interactions permits a better grasp of real SME demand However, it is important that these SMEs are a representative sample. For example, the three categories described m the first part of the report ought to be represented, beanng m mind that the main target of innovation policy is the standard SME, i. e. firms which do innovation little or no research. We recommend demand, be compiled and kept constantly up to date. that a classification of SMEs, based on Furthermore, it is useful to calculate (by category) the number of SMEs which are clients It is then possible to avoid over- of intermediaries supported by the programme. concentration on service-type firms or institutions, which would aim only at small categories of SMEs with relatively low economic weight. 31 b. Use SPRINT as a tool for operational programmes. identifying SME demand and as their ambassador to For example, after selecting about fifteen traditional sectors (textile, footwear, furniture, three or four agri-foodstuffs sectors, structural steelwork etc. ) or "high-tech" sectors a systematic investigation might be carried out, providing a more precise vision of the needs of SMEs m each sector which is both exploratory and practical. This investigation would closely involve representative SMEs and regional authonties (since traditional sectors have strong regional affinities). We shall come to this m the third point of this paragraph, concerning SPRINTs role vis-à-vis the regions. This type of investigation may bring to light as many "horizontal" needs (e. g. the injection of own resources mto new technology-based firms) as "verticar needs (eg future technologies for the footwear sector). SPRINT does, in fact, work m that direction with RTO mini-networks, but m a was which is too fragmented to be noticed by SMEs and especially for SPRINTs advice to be taken senously by other programmes, European or regional. c. Beyond this experimental approach and "programrrung consultancy", the third activity might approach SMEs from traditional sectors directly and m large numbers, offering them the type of support which local authonties provide today. Is this type of extensive and direct approach to SMEs conceivable for standard SMEs (those which do little or no research) with schemes close to the market9 This is a debatable point; it is certain, however, that SPRINTs already thorough knowledge of the SME system (through its interface networks m particular) would help the third activity to succeed m such an undertaking But the subsidiarity principle (and also the real tendency SMEs have to be suspicious of In any case, one should be partners which are too distant) are opposed to this a prion. wary of the response to subsidianty which consists of forcing SMEs to work together m international consortia: this may be an interesting formula for the high-tech SME fringe, but it is not necessarily the key to the competitiveness of European SMEs A more realistic approach would be to try to influence the use of the structural funds by regional authorities (or directly through DG XVI), by disseminating best practices which are clearly demonstrated and explained Whilst recommending that intermediaries remain the mam target of the SPRINT system, the panel wishes the impact on SMEs to be monitored and regularly reported on, e. g. through pilot schemes carefully devised for the purpose. The panel also feels that there are some opportunities and that these could be met without violating the subsidiarity for a direct approach principle. to SMEs, 32 3. A new dimension: SPRINT as the contact point for regional authorities Historically speaking, while aiming to cover the entire range of innovation operators, the various SPRINT initiatives first concentrated on consultants, then on technological partners, and thereafter on financial partners and proximity advisers (RTACs). But the increasingly important role of regional policies for supporting innovation in SMEs tends to create a preferential relationship between those responsible for these policies and SPRINT. This new dimension of the SPRINT system should be considered a priority, but on the condition that all the implications are assessed. The experience acquired by SPRINT and the double approach of EIMS and experimentation places the third activity m an ideal position for: - helpmg local authonties define the content of their programmes m support of innovation in SMEs {What7). SPRINT has been doing this for years through its activities m the science park consultancy scheme. - The sectoral prionties described above are a special issue. SPRINT could help regions to define new sectoral balances and technology interaction programmes without a great deal of extra input. - advising the regions on the implementation of their programmes m support of innovation m SMEs and/or for technology dissemination {How7). This has already begun under the "strategy" heading of the RITTS and RTP schemes The heavy response to the RITTS call for proposals (a quarter of all European regions) also shows how much the regions seek advice on the vanous modes of action, the best intervention methods, the new facets of innovation, schemes for fostering a more professional approach, etc. - helping regions to evaluate their projects from the outside, and at the same time to implement permanent self-evaluation mechanisms. This is the basis of the RJTl'S and RTP projects. The considerable strength of the SPRINT programme here is its ability to combine reflection, intemationaJ companson, control over a vast network of experts and its "supranationaT position, which gives the evaluations it can "guarantee" a It could even be said that SPRINT could play the same role with strong credibility. regional authonties as the OECD has with national authonties. The panel feels that this support for regional innovation policies deserves encouragement it is perfectly m line with two principles of all Community particularly because programmes: subsidiarity and cohesion C. P R O P O S A LS FOR S P E C I F IC ACTION The first recommendation from the panel is that the tools perfected by SPRINT should be fully used and should form the basis for the onginality and effectiveness of the third activity. As is pointed out above, however, these tools incorporate some weaknesses that must be transparency dealt with. Targets for improvement can be summarised in three words: 33 (visibility), dissemination and interaction. These key words have already appeared in the proposals for entrance/exit mechanisms. 1. Improve the reflection - experimentation - evaluation - dissemination cycle. The panel considers this global approach to be very effective, and particularly well-suited to the diversified and changing environment of innovation m SMEs However, the panel recommends some improvements. (a) as already said above, improve the transparency of the choice of EIMS themes by associating it with other Commission services, (b) concerning experimentation, define the methodological objective of each pilot project (expected lessons) more precisely; work out what the evaluation procedure will be. accumulate knowledge on the evaluation methodology. The aim is to be able to provide a desenption of each expenence m order to allow managers (from regional organisauons, or RTOs, or SMEs, etc. ) to reproduce it, or at least to be inspired by it, or on the contrary to abandon projects which might have ideas which are appeared attractive at first. In fact, the innovation area is full of propagated without their field of application being known and which need to be validated It has already been said that the evaluation of, say, specific projects, and of future third activity projects, should be extended to other projects run m the European arena (c) Cunently, poor dissemination is probably the greatest weakness of SPRINT This is connected with the previous point, since it is not possible to disseminate information profitably unless require elaborate is a strong analogy here with technology dissemination presentation work. There innovation processes are a technology m their own nght, and their dissemination follows the rules set out in Part Two it can be utilised directly,which will usually Some of the knowledge acquired through an experimental project (MINT, Specific Projects, etc. ) is still tacit and can only be disseminated by those who took part m the experiment. The permanent staff of SPRINT m charge of these projects can apply to new projects of the 3rd activity a substantial amount of expenence accumulated m earlier projects. This is, however,. Besides a rather special case and considermg the low level of intra-European mobility, does not allow for extensive dissemination Hence there is a need to present what has been learnt, so as to transform this tacit know- how into explicit knowledge able to be widely disseminated m written form. One good example is the recent campaign on "Best practices m managing transnational technology- transfer networks". One effective form of dissemination would be the use of the methods explained for the design and continuous assessment of projects financed by the Commission on the basis of calls for proposals. The Commission would describe the methods m its call for proposals - a ready-made means of dissemination (if anything, calls for proposals are documents properly read). Then, when the project is under way, SPRINT experts (permanent or external) would have a field in which to put the methodology into practice and improve on it. The projects m question would be not only transfer projects (SPAL), but also the innovation policy evaluation exercises (Ril'l'S and RTP). 34 What must be disseminated are learning methods (transfer processes, teamwork projects, "Goal-Oriented Project Planning"- (GOPP-) groups for managing international projects, mini-network organisation, operation of an RTAC, etc. ). These have a far greater multiplier effect than the "top-down" dissemination of each technology in turn. This dissemination should cover all the aspects of SPRINT (and in future all those of the third activity): published proceedings of the EIMS workshops; - publication of executive summaries of EIMS studies and easy access to the studies themselves; - dissemination of the results of specific projects in a form to be specified For example: the proceedings of EIMS symposia and studies are not always published. It is crucial that executive summanes be published, the results of the specific projects should remain confidential. The panel suggests that new methods of disseminating what has been learnt by experimentation should be studied and applied within the SPRINT system and more generally within the third activity 2. Reinforce and systematise the interaction between the S P R I NT programme and its potential partners * Interaction with other Commission departments This is a delicate subject However it is worth the effort, because one of the major objectives of an innovation policy is to mobilise all available resources from vertical programmes for new mitiatives which arc better targeted at new categones of SME. The best example of cooperation between SPRINT and another DG is the jomt RTP scheme with DG XVI (see Annex 1, Chapter 1. 8). This cooperation could prove particularly fruitful: if the results of SPRINT arc interesting and well-authenticated^ they could be exploited by structural fund users and be of considerable influence. Furthermore, the panel thinks that lessons should be learnt from this successful case study and that general mechanisms of interaction between the third activity and other services could be derived from them. DG XXIII pursues similar objectives to those of SPRINT, but in a larger political arena Flexible and regularly-applied mechanisms should therefore be used to link up the two programmes (the same applies to the whole of the third activity and other horizontal programmes of the Commission). Care should be taken concerning interaction between the third activity and the rest of the Framework Programme. Applying the linear model could make the third activity appear to be a mere device for exploiting the results of the first activity. This would be a mistake which the committee already pointed out in the first part of this report. 35 Without neglecting the services it will be required to provide, the third activity should be first and foremost regarded as a consultation and coordination opportunity for initiatives in support of innovative SMEs. inspire and evaluate the vanous It should also departments responsible for exploiting the " 1 %" allocated to exploitation in each specific programme of the first activity. The experience that SPRINT has acquired, and its ability to assess SME demand, should also be exploited by all those whose terms of reference include support for innovative SMEs. the panel suggests that interaction mechanisms be negotiated between To summarise, thé third activity and each Commission programme development of innovation in SMEs likely to contribute to the * Interaction with the local and regional authonties responsible for innovation. In paragraph B3 we stressed the appropnateness of such an interaction; it had a head start with the launch of the R J I lS and RTP programmes. The panel suggests that this approach be first of all extensively investigated by experimentation and then implemented on a long-term basis, together with any other scheme able to stimulate dialogue between the Commission and 200-300 European partners dealing with innovation policy. Other forms of interaction could be developed m the context of specific projects. Some of these could take the form of "joint ventures" between the third activity and a regional authonty. The use of such a project as a test for a technology transfer mode or for a local innovation policy would enhance its credibility, and it would be far easier to duplicate if it proved successful. When the "Council of the Regions" provided for by the Maastricht treaty becomes fully operational, it will be important for the third activity to report to it on its activities. The third activity would find its natural political support there, because today it is the regions which press in each Member State for a redistribution of the funds earmarked for large projects and the far more modest sums allocated to supporting innovation m SMEs Similar steps should strengthen SPRINT contacts with national policy-makers responsible for innovation in SMEs m the Member States. 3. Increase human resources within the SPRINT programme: As already stated, SPRINT Imes of action can achieve their objectives only through the availability of a number of highly-qualified experts. Whether the work entails reflection, evaluation, Dissemination, running of networks or rnini-communities, etc. , we are faced with a situation in which budgets are relatively modest (except for specific projects), but in which the objective to be ultimately achieved requires substantial staff availabilty. The combined number of Commission officials plus staff in the technical assistance unit is less than 20. The extensive use of a network of consultants is a positive consequence of the shortage of permanent staff. Although we welcome this development, it must be recognised that consultants are no substitute for permanent staff, cannot accumulate 36 relevant experience and general knowledge of innovation problems, and cannot be made responsible for dissemination or, of course, for following up their own work. therefore strongly recommends that manpower of the SPRINT system be The panel increased. A way should be found in the light of to implement current European Commission rules with respect to manpower expenditures. Detaching expehs from regional and/or national organisations is an initiative which could be taken this recommendation systematically. D. M I S C E L L A N E O US During its work, the panel tackled vanous problems for which there was no time to go mto details but which might be of interest to the third activity. These mclude: - the contribution of the third activity to the practice of the " 1% rule" (see appendix 3); - provide innovation policy with a broader vision. Besides the main objective, i. e. to a world dimension, industrial competitiveness, consideration could be given ecological and socio-economic aims, - support from the third activity for innovation and technology transfer policies m Central and Eastern Europe E. CONCLUSION: PANEL SUMMARY ANSWERS TO THE QUESTION PUT TO THE Let us answer in order the three questions put to the Committee in its terms of reference: 1. Has SPRINT pursued the objectives laid down in the Decision of 17 August 1989? These objectives were couched m very ambitious terms: 1) to strengthen the innovative capacity of European firms, 2) to promote the innovation process and the penetration of new technologies and 3) to improve the efficiency and coherence of innovation and technology transfer policies throughout the Member States and the regions (cohesion objective). The analysis of Part Two and the conclusions of the Part Three provide a generally positive answer to this question - SPRINTs experimental character enabled a large number of solutions to be tested in nearly all explorable paths of innovation support. Thanks to EIMS and the tnal- and-error method enabling the internal aspects of the various Imes of action to be specified, the Commission now has m its possession a well-used tool for reflection, experimentation and decision-making 37 - Operators in the innovation system (including technical organisations) have found in SPRINT the framework for cooperation and interaction which they used to lack. - SPRINT only recently started to focus on the efficiency and coherence of policies at regional or national level. It is therefore too early to assess SPRINTs impact on this third objective One could, of course, raise multiple criticisms of a programme which has by no means achieved all it set out to do, and has succeeded even less m bringing all those involved m the innovation system to a high level of competence and efficiency. But SPRINT had very few resources for performing these tasks. Its cost/benefit ratio is, m fact, very high: the RTO mini-network programme, for example, succeeded in changing the behaviour of many RTOs with very meagre funds per organisation. 2. Are innovation and technological dissemination policies still relevant today? The second question can be answered simply by pointing out that, five years after 1989, strengthening the innovative capacity of SMEs has become a top pnonty for those responsible for economic competitiveness Above all, the dissemination of technology to traditional sectors has become more important than the large-scale production of new technologies of sole benefit to the high-tech sector. Furthermore, m a area m which activities are close to the market and earned out by firms with a regional bias, the subsidiarity principle makes direct targeting of standard SMEs very difficult The policy invented by SPRINT fits these constraints and objectives very well. 3. How should the problems now being dealt with by SPRINT be handled as part of the third activity? Vanous cnticisms and recommendations are put forward throughout Parts Two and Three and Annexes 1 and 2 There is a great deal to be done before SPRINT initiatives can be considered as working totally satisfactonly However, the panel regards SPRINTs overall approach as a very healthy one and recommends that its main charactensties be retained The coherence of the "SPRINT system" must above all be preserved in the new organisation: the mam value of these iniuatives lies m the position they occupy within a global policy. There is an obvious danger that each scheme and each type of partner might cut itself or hirnselfTherself off from the rest of the system. This can already happens today where each category of operator remains more or less ignorant of what the other categories arc doing. This weakness of the programme ought to be remedied rather than aggravated. The panel deems it essential for a single group within the "Third Activity" should be m charge of promoting: interaction with other Commission programmes and with Third Activity schemes (the horizontal dimension of an innovation policy); an overall approach of reflection - evaluation - dissemination applying to the whole of the Third Activity (experimental dimension); 38 initiatives for bringing together the various SME partners (interactive dimension); assessment of the impact that various schemes in support of innovation policv may have on SMEs. * * * * • 39 ANNEX 1: ANALYSIS OF T HE SPRINT SYSTEM BY TYPE OF O P E R A T OR Comments on the individual schemes As mentioned above, systematic action is the only way to make a real impact on an the SPRIbiT environment as complex and mteractive as the innovation system programme a system9 Has it an internal the panel chose to analyse it through two gnds the innovation operators gnd, used m this annex, and the objectives gnd, used m Annex 2. logic? To assess its coherence, Is In the following pages the evaluations of each lme of action of SPRINT are set out according to the following set of criteria: a terms of the objectives b background to the scheme and its implementation c. experimental aspect: dissemination effort d interaction with other programmes (inside and outside SPRTNT) e. the panel's assessment f assessment of future prospects The panel's comments take mto account the evaluation reports earned out at the request of the Commission for six of the activities One of the main virtues of SPRTNT since its beginnings has been its recognition that the mnovation process relies on a variety of SME partners and its consequent promotion of services. Whatever the sector of activity, SMEs cannot work emerging innovation without partners with expertise conducive to innovation and complementary to the internal know-how of the firm. To illustrate this diversity, the panel used the so called hexagon diagram (see figure 1). SMEs are in the centre, on each side of the hexagon are the six main types of SME partner:. - other firms (SMEs and large firms), - Technology Resource Centres (RTOs, or Research and Technology Organisations), - various types of consultancy (management, marketing, intellectual property), - financial institutions (banks and capital development organisations); and on the last two sides of the hexagon, we have generalists who stimulate the demand and organise the coherence of the various schemes: - field innovation consultants; - regional authonties responsible for innovation policy. 40 1. Schemes aiming at SME technological partners SPRINT grouped the various types of technology supplier under the heading of RTOs. A conference was organised by SPRINT in 1993 which enabled the development of these unportant SME partners to be assessed. They include: - sectoral technical centres which mostly conduct collective research projects on basic technologies in traditional sectors; - Technological Resource Centres (TRCs), which concentrate on one technology only (laser technology, materials technology etc. ). Small technical teams m close contact with laboratones, and totally dedicated to SMEs (testing, analysis, participation m product or process-based projects etc ) developed, particularly m France; - CROs, which have a similar work function but are privately owned, and work with SMEs for only a small part of their time. MINI R TO (OR RA) NETWORKS Launched in 1987, this line of action includes over 60 individual RTO networks with a total of about 300 members which have been or still are supported by SPRINT. An evaluation of this line of action was conducted by Segal Quince Wicksteed. Published in March 1994, it is based on data dating back to 1991 and 1992. Sectoral RTOs are the main target for this action, but universities, CROs (Contract Research Organisations) and enginecnng consultancies are now also included in that target. These networks usually bring together five to ten RTOs, the task of the network ranging from a jomt technology research project to a jomt scheme for disseminating a proven technology or "prenormative (pre-standardisation) analysis". There are technology oriented networks as well as sectorally based networks. transfer The scheme is experimental and aims to develop the European technology infrastructure. Its overall impact is considered to be very positive. About one half of all European RTOs have been contacted. 80 % of the networks would not have existed without SPRINT support, and half of them will continue network activities after SPRINT support is ended at a slower pace, however. The most striking changes in the attitude of RTOs involve the increased number of schemes they can conduct and the quality of their action, those RTOs located in the less-favoured regions had the oprx>rtunity to acquire competencies in disciplines such as consultancy, testing and participation in innovation projects for SMEs. The impact on chssemination is noticeable but more difficult to measure. The direct impact on SMEs (SPRINTs ultimate target, it should be remembered) can only be measured indirectly, through the increasing number of services offered by RTOs Assessment This mini-network programme demonstrates the value of trans-European collaboration and continues to evolve and uncover a range of SME needs which can be met by RTOs. The programme offers ways of tackling the crucial issue of adoption of new technologies by 41 SMEs, and improves the quality and relevance of RTO services in the Member States. The programme has by no means exhausted all possible paths of action and should be maintained, taking into account the changes suggested by the SQW evaluation report. N E T W O RK OF E U R O P E AN A S S O C I A T I ON OF C O N T R A CT R E S E A R CH O R G A N I S A T I O NS (EACRO) EACRO is an association of contract-research professional organisations (CROs) from Community and EFTA Member States, ft was launched in 1989 with the help of SPRINT. In total, CROs employ some 25 000 highly qualified people in all sectors of RTD. Their turnover is more than ECU 1500 million. Contract Research Organisations are independent R&D institutions which work on a commercial basis by generating and transferring technologies for industrial firms according to the terms of a contract. 2. Actions aiming at RTACs The new function of RTACs (Regional Technology Advisory Centres) developed only recently. It can be described as follows to explore the SME system, to diagnose its needs, to offer SMEs a wide choice of technological partners, and eventually to help SMEs launch and pilot a project définition phase Depending on the country, this RTAC function may be attached to that of an RTO, or it may be quite separate. For those in favour of the second approach, RTO representatives tend to suggest their own technologies rather than the best solution Most often, these centres (sometimes consisting of no more than two or three people) are grouped in regional networks (in France, RDTs or Réseau de Diffusion de la Technologie) whose function is to bring some order to a profession which is still ill-defined RTAC NETWORKS This network is an association of some 150 regional centres for technology consultancy all over Europe. It aims to disseminate information amongst all its members for the benefit of its clients, particularly SMEs Annual conferences are organised and sub-groups meet up in order to solve common problems on a European basis. The network has published a Who's Who guide along with a guide to innovation support instruments in the various Member States. The network is also currently working on topics such as classification of client firms and on measurements and methods of "internal benchmarking" with the aim of improving the working efficiency of RTACs. Since RTACs actively work with SMEs in their own regions, the impact on SMEs of experience shared between RTACs is widespread. 42 By allowing RTAC representatives to meet up, by contributing to travel expenses and providing'administrative backup, SPRINT triggers a europeanisation effect on RTACs. The panel considers that this action is appropriately managed, that it provides good added value and that it should be actively pursued. 3. Schemes aiming at science parks An innovation policy must promote mteraction between its operators. One of the preferred tools of policy-makers is the creation of interaction "platforms" or science parks, of which there are currently two_types: - traditional science parks (British or US-type) which are usually close to the grounds of a universitv, and where "high-tech" firms decide to take root (sometimes thev- are generated • through an "incubator" within the park); - - technopoles, particularly in France, which aim to stimulate and structure local industry, whatever the sector and the location of the firms. Their concentration on service allowances, telematics etc. makes them similar to the RTACs descnbed above, in both cases, the "incubator" function has developed extensively in order to help start up new technology firms. In practice, policy-makers tend to combine the two functions, particularly smce the defects of the linear model have been shown up. SCIENCE PARK CONSULTANCY SCHEME (SPCS) - STRAND: FEASIBIIJTY STUDIES Objectives and background For the regions, science parks and similar structures (technopoles etc. ) are an important tool for promoting innovation and technology transfer. The Science Park Consultancy Scheme had been launched in 1990 as a SPRINT line of action to help promoters improve the design and planning of their initiatives. By subsidising the cost of a panel of foreign expert consultants, the Scheme supports promoters - particularly those in less-developed areas or in regions where there is little history of science parks - to access previous European experience through established independent experts. In most cases, the study comes at the definition phase and provides the boost essential at local level. So far there have been four calls for proposals under the scheme, in 1990, 1991, 1992 and 1993. As a result of the calls about 450 applications were received and more than 100 contracts were signed Together with the first call for proposals was a call for experts with special knowledge and professional experience related to Science Parks. Around 100 were selected, and the hst of experts was updated and expanded in June 1993. 43 Assessment The Science Park Consultancy Scheme has hdped consolidate and enlarge the Science Park movement in Europe, though it has to be said that improving the quality rather than the quantity of science parks is the objective. Feasibility studies have also helped create a community of experts on science parks, thus permitting the exchange of best practice. In most cases, the SPCS has provided help with the definition of projects and accelerated some of them. In some cases, the conclusions of the experts have generated a redefinition of the objectives and structure of the science park. Furthermore, the SPRINT "label", i. e. the acknowledgement of the quality of the programme and its European dimension, has attracted to the park firms with an international standing and increased the interest of external economic operators m the park. Recommendations The panel considers the feasibility study strand of the SPCS programme to be well-targeted and feels that it meets an increasing demand. It suggests, however, that the prospects of svnergy with DG I (external relations) and with the PHARE programme be investigated in order to allow experts used m the SPCS programme to work in Central Europe as well. In general, SPRINT has become a benchmark of consultancy support for science park promoters. This strength must be exploited and be enabled to contribute to the development of parks in all EFTA and Central Europe countries. The aim is to be in a position to validate a proposal and give promoters and managers access to the SPRINT list of registered experts The prestige of the SPRINT label will certainly help promoters to get the necessary funds for the study from regional authorities, for example. Lastly, the panel recommends that a quality-control system be built into the initiative in order to update knowledge of the expertise of a consultant. SCIENCE PARK CONSULTANCY SCHEME - STRAND: SUPPORT FOR EVALUATION OF EXISTING SCIENCE PARKS Objectives The objectives of this strand arc to help science park promoters and directors to assess the impact of the schemes they implement and to understand better how their initiative fulfils the objectives that were initially set for the park. The scheme also aims to define or redefine these objectives, formulating a strategy compatible with the economic and technological environment, and providing these parks with a number of tools for monitoring their performance in the future. The scheme is mainly for parks which are at least three years old. 44 Implementation The evaluation strand of the SPCS is a complementary activity to the one described above (feasibility studies). It provides financial support covering the costs of employing a team of two consultants to carry out the evaluation exercise. The Commission provides a list of consultants, but the promoters are fully responsible for selecting consultancies and experts from these lists. The work itself is in two stages. The first stage is aimed at defining the objectives of the science park and the relevant evaluation themes. The second stage is concerned with the actual field work needed to collect the required data and to define a new strategy for the park and/or organisational changes. SPRINT has issued a list of themes for the évaluation. SPRINT is also planning to appoint a monitoring committee to monitor the progress of the evaluations and the performance of the consultants. The scheme is a new experimental activity. Six proposals have been approved. The first evaluations will be initiated by the end of 1994. Assessment Science parks have become an important part of regional innovation support infrastructures. There are more than 250 science park projects and similar developments in the Community and many new ones arc being planned. On the basis of this extensive stock of experience, valuable lessons could be collected through evaluation. , to the benefit of both individual parks and the concept as a whole. It is hoped that collaboration between the parks, still relatively undeveloped, will grow. The rationale of the science park evaluation scheme within the SPRINT programme is thererfore sound. On the other hand, it is too early to assess to what extent the scheme will be able to meet these needs. the The current approach specifications of the consultancy work pay too little attention to assessmg the impact of the park oo industrial development in the region. This impact ultimately justifies the existence of the part to evaluation could be slightly modified. In particular, The establishment of the monitoring committee for the evaluation may provide an adequate mechanism for controlling the quality of the consultancy work, but will this be sufficient to learn the general lessons from the evaluations and to disseminate this both to future consultancy work and to other parts of the Commission and to regional administrations? Here again, dissemination of the lessons learned is not properly tackled. In the long term, better collaboration between science parks may provide opportunities for the launch of associations to which the management of these evaluations could be transferred. The development of such networks of science parks could be supported by SPRINT. 45 4. Actions aiming at consultants in general One of the acheivements of SPRINT is to have emphasised the role played by consultants in the innovation process. Have the various categories of consultants also been lnflenced9 Did the programme have an impact on their overall quality, and on their European dimension9 MANAGING THE INTEGRATION OF N EW TECHNOLOGY (MINT) HISTORY AND OBJECTIVES MINT aims to promote the absorption capacity of SMEs through the use of experienced consultants in innovation management. It is a co-ordinated attempt by the Member States and the Community, through a decentralised and experimental scheme, to exchange good practice and share the results of a common approach to create awareness and stimulate use of innovation and technology management techniques in SMEs. MINT was implemented in 1993 in the twelve Member States through the appointment of National Contractors suggested by Member State representatives. The National Contractors then selected teams of consultants. In 1994 MINT was further implemented in five EFTA countries. ASSESSMENT The consultants often specialise in a particular area of innovation management, for example. It must be emphasised that MINT has been managed differently in the various Member States according to national and/or regional tendencies, strengths and requirements. In that respect MINT is a good example of the subsidiarity principle at work. The transnational dimension of the programme is however guaranteed through a number of initiatives: common overall guidelines; common workshops for general policy-making, transnational evaluation, etc. The MINT Guidebook for Business and Technology Diagnostic Tools & Methodologies is a successful publication for the dissemination of tools and techniques for technological consultancy throughout the Member States in particular. It should, of course, be constantly updated with material gained from the programme itself, as an example of the dissemination policy described m Part Three of this report. Demonstrating thus the differences from one country to another, in this area, MINT has met with difficulties in its implementation in some Member States, while in others all the assignments were completed very rapidly. MINT appears to be a typical example of the experimentation process of SPRINT and a worthwhile experience, particularly as it makes up one of SPRINTs rare direct SME gauge. At present, no in-depth evaluation provides the first conclusions for further assertions. The fact that the programme is running roughly 6 months behind schedule (to date about half of the total number of assignments (1200) are under way or have been completed) is mstrumental in explaining this. 46 RECOMMENDATIONS The panel regards the MINT initiative as an important exercise and a key experiment in mnovatioa consultancy; it fits well into the broader context of a global mnovation policy. It should therefore be continued in order to dernonstrate fully the usefulness of such schemes in regions or countries in which technological consultancy needs are urgent and not properly tackled. A careful assessment of MINT should provide comparisons between the different methods of consultancy, especially in the definition phase of the innovation process. The transnational dimension must be reinforced through initiatives such as the regular organisation of contractor workshops, transnational participation in SME workshops and transnational consultancy work. This last aspect is fundamental to the creation. of a more homogenous European innovation management market. Although a register of tools and methodologies helps to define standards, attention should be given to the criteria for selecting and appointing MINT consultants, so as to guarantee minimum quality standards. VALUE ANALYSIS, DESIGN, QUALITY These three innovation management techniques contribute to the adoption, incorporation and production of innovative technologies or services Proper application of such management techniques facilitates the revision of companies' organisational structures and strategies often necessitated by the introduction of new technologies. SPRINT has promoted the use of these tools by SMEs and for improving the quality of the services offered by intermediaries and consultants. The degree of exploitation of such techniques is highly variable across Member Stales and regions. These discrepancies hinder the process of technological integration in the European Union. One of the main objectives of SPRINT is to improve knowledge of the value of these methods in innovation management and most particularly in less-favoured regions. The panel feels that the promotion of value analysis, quality and design is relevant to innovation policy. It enhances modem management skills and contributes very effectively to the training of consultants and improving the quality of their services, particularly m LFRs. The working groups should be maintained. A change in their terms of reference might help to achieve the objectives of the promotion programmes, however, the aim is not to select a small number of privileged national organisations solely to promote innovation management techniques, but rather to maximise the dissemination of ideas emanating from a think tank group. 1. Value analysis The promotion of value analysis by SPRINT includes the following activities: - Community reports/surveys and brochures (five have been published in total); - support for European conferences on value analysis and, where appropriate, for national events in less-favoured regions; 47 - harmonisation of Community standards of value analysis; - one RTO network is dedicated to the development of coniplementary elements of value analysis methodology. The panel feels that more effort should be made to promote value analysis through more systematic awareness campaigns. 2. Quality SPRINTs activities concerning quality are as follows: - a number of RTO networks specialise in developing quality in firms and m quality-related schemes for SMEs; - a hardback book (1994) reviewing quality measures and initiatives taken by Member States of the European Union; - a study of how Contract Research Organisations comply with customers' quality requirements; - lastly, SPRINT supports conferences on the aissemination of quality particularry SMEs. to firms, Again, the emphasis should be on dissemination of work done. In general, communication of activities in terms of value analysis and quality appears to be good, but this best practice lead needs to be preserved though new brochures aimed at the general public and the most common target of SPRINT: the standard SME. 3. Design The European Community Design Prize (ECDP) is a SPRINT initiative that deals directly with SMEs, and as such must be maintained and reinforced. The panel welcomes the redefinition of the scheme in order to reach those SMEs that are not already using design as a technique for improving the quality of their product or services. The European Design Guide is an interesting publication. It should be disseminated properly through appropriate media. 5. Schemes aiming at consultants specialising in licensing The purchase and sale of licences is an important technology dissemination tool. Such transfers are facilitated by specialist consultants, whose activity used to concentrate mainly on large firms. But these can now form independent partnerships, and SMEs have therefore become the main targets for the consultants. They are a more difficult clientele to tackle and there is a still greater need to support the consultant's work by various means. 48 INTER-FIRM MINI NETWORKS (C NETWORKS) This was one of the earliest lines of action of the SPRINT programme. Launched in 1986, it has involved more than 350 organisations such as Technology Licence Brokers, Chambers of Commerce, Regional Development Authorities, etc. The aim is to encourage the growth of transnational technology transfer networks to assist SMEs technology appropriate to their business sector and to raise awareness of the impact of technology on competitiveness. An assessment of this line of action, based on February 1992 data, was published in September 1993 (SQW). in accessing The programme has helped to improve the expertise of intermediaries and to give them an international outlook. The best results were obtained in the less-favoured regions. C networks demonstrate how SMEs can benefit from transnational collaboration. Assessment The strength of these networks is that they help create a European reflex in those who innovate in the field. The SQW evaluation report has, however, pointed out the need to redesign the scheme in the light of expenence and has suggested alternative ways of doing this. A greater concentration on quality, some rethinking of evaluation measures and the delegation of greater responsibility to lead partners in network management are some of the suggestions made to the panel by participants. The considerable time and effort needed to establish networks of this type have created a substantial asset which the panel is convinced should be more widely used for disseminating best practice and assisting in the transfer and dissemination of technology to SMEs. The very recent publication of a best practice guide for managing transnational technology transfer networks at European scale is a valuable resource for similar programs. TECHNOLOGY TRANSFER DAYS (TTDAYS) Objectives TTDays are one- or two-day events aiming at promoting transnational technology transfer between selected firms, by presenting firms in a Member State or a region to the technology brokerage exxnmunity in another region or Member State. The accent is on selection and nrformation to the brokers about the needs and resources of the various firms taking part, well before the actual meeting About 50 TTDays have been organised in Europe with the support of SPRINT, and some 1000 firms have participated indirectly. Originally, TTDays were a support measure for inter-firm technology transfer networks. They progressively became an efficient tool for transnational technology transfer. It has been demonstrated that, with equal outlay, TTDays generated three times more inter-firm contacts or transfer contracts than networks. Assessment TTDays have demonstrated their usefulness and match a clearly identified market: direct linking of SME supply and demand in a number of technological sectors. Numerous 49 technology-oriented SMEs have moved closer to European partners and others have either sold or bought technology or know-how through transfer contracts (in whatever legal form). The second achievement of TTDays is to have enhanced the European dimension of the technology broker. Consequently, their ability to tackle business at Member State level and not only at national level has grown. This is precisely in line with the general approach of SPRINT, which aims, amongst other things, to improve the quality of intermedianes and SMEs' regional contacts. The panel regards TTDays as an important and necessary tool of the technology transfer process. The meetings lead to a large number of exchanges. Their open nature sets them apart from networks which often are closed entities for network members only. Recommendations The panel recommends that TTDays are preserved, even multiplied, while stressing the difficulty of selecting the right II Day organisers. First, these must show that they have a large client base. It will therefore always be necessary for the Commission to select the organisations to take responsibility for organising a i I Day. The panel also considers the inter-sectoral dimension of TTDays to be fundamental Reducing them to events specialising m one technological sector only would be a mistake: the mter-sectoral technology dissemination aspect would disappear, and TTDays would then lose part of their rationale. Only a few sectors producing a large number of genenc technologies (such as the electronics and computer science sector or the space sector) could be the subject of "specialist" TTDays, provided that the mter-sectoral nature is preserved as far as demand is concerned. There are some on-going thoughts on financial procedures suited to licensing transactions (fairly similar to TPF). 6. Schemes aiming at the financial system Innovation is an industnal operation which requires not only self-financing and public support, but also substantial funding from the financial sector. Hence the importance of banks and venture capitalists as partners to the SME To make banks aware of the specific problems of SMEs, to help venture capitalists to set up throughout Europe and to have access to the same tools as their Amencan colleagues should have been one of the main priorities for a programme such as SPRINT T PF (TECHNOLOGY PERFORMANCE FINANCING) Objectives The Technology Performance Financing Scheme was launched in 1991 with three objectives: 1. to facilitate the acquisition of new technology (e. g. hardware, software and associated services) by firms by making the payment directly dependent on the performance of the technology, therefore reducing the financial risk borne by the buyer; 50 to strengthen the competitive position of European suppliers of innovative technology, 2. many of which are New Technology Based Firms (NTBFs), by providing them with a powerful marketing tool; to provide financial mstitutions with an instrument for project-based financing of 3. innovation as well as an opportunity to improve their ability to deal with such projects. In practical terms Technology Performance Financing is a financing tool by which a financial institution provides funds for the acqusrtion of new technologies or services. The financial institution will then receive payments from the acquirer, over a two- to three-year period, according to how the technology has performed against predefined targets. The Commission provides financial and technical support for participating, financial institutions. The financial support consists partly of subsidies to cover part of the costs of the technical appraisal of projects and the adrninistration of the scheme and partly of a "safety net" which guarantees, under certain conditions, part of the losses to the financial institution resulting from under-performance of the new technology. In other words, if the technology performs well, the supplier and the bank will share a premium over the hst price; if it under-performs, part of the risk will be covered by the Commission's guarantee. Operation of the scheme Following a call for proposals, ten European commercial banks were selected at the end of 1991 to take part in the core group of the scheme. Concluding a contract with these banks took a long time (in some cases up to two years), smce TPF was perceived as a very novel product which, in certain countries, required an adaptation of banking regulations. The actual marketing of the scheme began in 1993 and the first three innovation projects to be subsidised by the scheme were decided on in mid- 1994. At the end of 1993, in view of the slow uptake of the instrument, SPRINT commissioned an interim review of the scheme, earned out by IM0(B), which came to the following conclusions: l)There is a clearly identifiable market need for a scheme such as TPF. Suppliers and users of innovative technologic welcome it. Banks find the idea attractive 2)In spite of the above, the uptake of the scheme was limited for a number of reasons: - long contract negotiations between the banks and the Commission; - insufficient promotion of the sccme; - the purpose of the scheme as currently designed is not clear (i. e. the pursuit of three objectives at the same time) and it is perceived as being too risky and complex for ordinary commercial banks - even large ones; - the project guarantee of 75. 000 ECU is considered too low for a bank to commit resources t o it 51 Following this assessment, the Commission modified the scheme to make it simpler (bilateral instead of triangular relations), more attractive and more flexible, for instance by increasing the guarantee available and opening it up to banks outside the core group. Since then three banks (Bank of Picardie (F), ING Bank (NL) and Europa Bank (L) have submitted projects to the scheme. Assessment The panel was divided. Some think that the slow start of the programme demonstrates how inappropriate it is. Following the panel's recommendations on exit mechanisms, this scheme should be abandoned and replaced by another on a different basis altogether but pursuing the same overall objective. Other members of the panel think the project should be maintained for a further two years (taking mto account lessons learned during the first phase and applying the modifications suggested by the evaluator); the slow start of the programme could be explained as much by the lack of enthusiasm of banks for innovation as by the weaknesses of the project, which means long starting penods whatever the type of proposed initiative. I N V E S T M E NT F O RA Objectives Investment fora are a type of mini-market bringing together entrepreneurs and European investors for a period of one or two days. A large number of financing operations, often for recently-established firms, has emerged from these fora. The set of investment fora is organised with the help of the European Venture Capital Association (EVCA) together with national mnovation organisations such as ANVAR, CDTI and ENEA. The programme of fora was launched in 1989, and since then, twelve investment fora have been organised, bringing together over 300 firms or entrepreneurs. Assessment The mid-term evaluation does not provide as much information as was hoped for. It does not explain why this line of action was chosen in preference to any other m the context of the promotion of transnational investments m potentially high-growth enterprises. The actual concept of the fora is not analysed. Is it really tailored to the market, and what is the size of the market? What are the possible alternatives? Why is their success uneven? The panel considers that there is a real market for external investment in new firms, but that forums appear to be a somewhat isolated scheme. There should be some initiatives upstream and downstream of this type of activity which would increase the value of the fora and ensure more participants and greater quality. Complementary schemes upstream might include regional fora and local activities for heightening public awareness of innovation financing (though the SPRINT award scheme goes in that direction); downstream there could be a NASDAQ type of market which would allow investors to withdraw - an exit mechanism - and possibly re-invest in other firms. 52 Recommendations The panel recommends an in-depth evaluation of the mvestment fora line of action, to enable the relevance of investment fora to venture capital investors to be improved or to ascertain the need for a completely new type of action. Also, it may sometimes be more advantageous to organise specialised fora in one technological sector only, because the objective of these fora is to finance a firm and not to support mter-sectoral technology transfer. The panel considers that relations between national or regional institutions for the promotion of innovation and the EVCA association should be encouraged and reinforced. The ultimate objective is to make venture capitalism more aware of technological investment and the opportunities which SMEs offer. SPRINT mitiatives for introducing a market of the NASDAQ type mto Europe and developing securitisation techniques should be mentioned, even though it is too early to assess its impact. 7. Schemes aiming at the interaction of SMEs with other SMEs (networks) and/or large firms •> Experience has shown that other firms have become a major partner for SMEs. For example, high-technology firms arc the mam technology suppliers for SMEs through hardware, software and matcnals technologies which are manufactured on demand. More generally interactions between firms and makes them highly inter -dependent. This is particularly true of the mnovation process, where expenence shows that SMEs integrated mto a network succeed better and more quickly than those which arc not integrated. industrial partem multiplies day-to-day the newly-organised The SPRINT programme has so far neglected this aspect of the problem. Even though the TT Days and some EIMS schemes work m that direction, their impact is far from adequate, and there are no real SME/large firm networks. 8. Schemes aimed at regional policies Regional authorities and national governments now play a major role in creating an infrastructure for supporting innovation m SMEs, particularly by: - injecting financial resources mto those SMEs and into public or private innovation service organisations, - by organising the interactions between these mnovation operators; - by coordinating the action taken by the vanous authorities concerned. The regions have therefore become major partners for SMEs. Has SPRINT taken this into account? 53 THE RITTS INITIATIVE (Regional Innovation and Technology Transfer Strategies and Infrastructures) and REGIONAL TECHNOLOGY PLANS (RTPs). Objectives: The aim of the RITTS initiative, launched in 1994, is to help regional policy-makers (and/or regional development organisations) who wish to have an assessment of their innovation policy. The aim is to examine the regional innovation and technology transfer support infrastructure, to assess its structure, the relevance and the efficiency of organisations and the various public services which build up this infrastructure, and finally to analyse the nature and density of these interactions. The aim is also to elaborate strategies m order to improve this infrastructure, to reinforce its coherence and its relevance to SME needs. Finally, the RITTS exercise should allow experience acquired though the application of such policies to be shared. The objectives are far more than study alone and the aim is to develop as many links as possible between all the vanous regional actors. The RITTS programme is close to the RTP programme, which aims to draw up regional technological plans within the framework of the structural funds. RTPs cover all regional RTD resources. The action was launched by DG XVI with SPRINT technical support and deals with objective 1 and 2 regions. Methodologies used in the RITTS and RTP mitiatives are similar because they are based on an analysis of technological demand. However, RTPs have a broader scope than RTTTS, and arc intended for regions eligible for structural funds and to encourage regional SMEs to participate in European research programmes financed by the Commission. Furthermore, consultants involved in an RTP exercise may come from the same country, whereas in a RTTTS exercise, there is always an international dimension m the teams involved, which consist of qualified professionals. Implementation RJTTS subsidises the costs of employing a consortium of two firms or individual consultants chosen from the list of firms of registered experts. Substantial preparatory work is required to ensure that the initiative can be implemented successfully. The work itself is divided into three stages- the first seeks to define the current state of the infrastructure and its relevance to SME demand. The purpose of the second stage is reach a consensus on the priorities and measures required to make the infrastructures more responsive to the needs of firms. Finally, the third stage is concerned with establishing follow-up and evaluation mechanisms and implementing the priority schemes. RTTTS is a new scheme launched in 1994 The first 9 studies will be launched in December industrial structure. 1994. The regions differ in terms of both development and Assessment: RTTTS has created links with the RTP initiative within the framework of the structural funds. This linkage is an important example of the horizontal dimension of the SPRINT programme. Interaction with structural funds at both Community and regional level might in theory provide a rnechanism for influencing the allocation of structural funds to industrial development and SMEs where needed, and through this process to improve the effectiveness of Community cohesion pohcy. In these respects the RTTTS is a strategic initiative. 54 RTTTS is a new, experimental activity. In order to exploit its potential fully it is important to organise the studies in such a way that experience and knowledge are accumulated. The accumulation process is also a prerequisite for making RTTTS into a tool for the large-scale &ssentinafion of best practice to policy-makers and other regional actors. The other prerequisite is an excellent quality of consultancy work. Corrtinuous follow-up and evaluation of the studies are therefore desirable: a conimittee similar to that described in the Science Parks assessment could be set up. RTTTS itself deserves to be further developed Sufficient procedural flexibility would help to meet the very diverse requirements and conditions of different regions. In the course of time RTTTS may change from one type of scheme into a set of alternative approaches and procedures. Finally, the interlinkage between RTTTS and the other action lines should be developed to make the initiative an efficient dissemination tool for all the knowledge developed by SPRINT. Schemes aiming at the absorptive capacity of SMEs and their interactions with their partners SPECIFIC PROJECT ACTION LINE Objective : launched in 1989, arc large-scale experimental Specific Projects, irrrra-Community innovation transfer projects whose aim is to adapt and transfer proven technologies from one region or sector to another. By implementing industnaily-relevant projects, the projects aim to demonstrate the whole process of technology transfer and adoption, and achieve active and widespread oUssemination to other end users. Although the SPAL projects may involve many different industrial sectors and technologies, the emphasis is on supporting the modernisation of SMEs and traditional industries through projects with an environmental dimension and projects with strong social benefits. SPAL is an experimental activity whose aim is to improve our understanding of technology transfer and adoption processes and their management and to disseminate this knowledge. At the same time the specific project are an efficient technology transfer tool in itself. Implementation : Over 40 technology transfer projects were funded during the definition phase for producing project plans for a subsequent implementation phase. 21 projects have gone through to irnplcrnentation. More than two hundred partners have been involved. Altogether ECU 27. 4 million were spent in 1987-1994. SPAL is dominated by catalytic projects with a strong technology push element and active involvement of technology suppliers. User-driven cntical demand projects aim to provide appropriate solutions to recognised user needs. A comprehensive evaluation of the Action Line was completed in spring 1994 (Technopolis group). This evaluation provided a sound basis for the assessment by the panel. 55 Assessment SPAL fills a large gap at European and national policy levels. In some countries it complements the national dissemination activities by introducing a European element, and in others it provides a completely new type of initiative. In a Ccjmmunity context, it has extended the focus from R&D to dissemination. As an exploratory scheme, SPAL has been a success. It has provided important lessons for future dissemination schemes. (These are discussed in detail in the evaluation report. ) It has shown that technology dissemination schemes are both feasible and desirable. On the other hand, it has shown that there is no one right model for a dissemination scheme: each project needs to be tailored to the specific requirements of the partners and the context. The experiences achieved have not been sufficiently exploited by the Commission or the national authorities. As an effective technology transfer tool, SPAL's success has been more limited. There is little doubt that participants have benefited from taking part in the SPAL projects. Technology was transferred between them. On the other hand, dissemination of the transferred technology to other companies or research organisations was less impressive than expected. Wider dissemination to industry scans to require additional measures. Transfer between participants is not enough. There seems to be a clear need to tackle the dissemination problems with separate arrangements based on a strategy. Future action It is clear that SPAL should be continued and expanded in the future. The rationale of specific technology transfer projects is well in line with Community' policies. SPAL-tvpe schemes focus attention on the utilisation of Community R&D and assists other Community objectives, especially cohesion. It provides a transnational dimension for national transfer schemes. There is, however, room for improvement. Many useful suggestions have been made in the SPAL evaluation report. In this context we would just like to make a few remarks : • A major effort is required to improve the exploitation of good practice at both Cx>mmunity and national level. • Both catalytic and critical demand projects should remain key components of SPAL. • Heavy financial and intellectual involvement of at least some of the partners should be an essential element in the SPAL projects. • Clustering projects could improve the impact and visibility of SPAL and could also help to disserninate what has been Icamt. • Applying new technology usually requires some R&D. SPAL projects should sometimes allow R&D. • The arrangements for Disseminating the technology transferred need further development. 56 10. Evaluation of the action taken under SPRINT (see description in part. II,A) NETWORKS The creation of trans-European networks for mnovation and technology transfer has been a fundamental tool and a core activity of SPRINT aimed at all three of the programme's objectives: 1. strengthening European innovation capacity 2. promoting technology disseniination 3. enhancing cohesion in Europe. In the course of the programme, two broad categories of networks have been promoted and developed: mini- and macro-networks. The macro-networks are gatherings of representatives of national organisations which work on various aspects of innovation and technology transfer. The mini-networks bring small groups of companies and organisations together to tackle jointly specific problems of particular interest to that group. The rationale for creating these networks is the understanding that human contact is the most effective and efficient way of promoting innovation by the SMEs which are the ultimate targets of SPRINT initiatives. It is also expected that these shared activities will promote learning, sharing of experience and development and improvement of the quality of service provided by the participants Macro-networks: implementation and evaluation RTAC, EACRO, EVCA, EUROTECH and Til are some of the macro-networks for which SPRINT was a catalyst. They create links between representatives of organisations and networks that offer support at national level in technology and shared development programmes, finance and investment, intellectual property and technology transfer etc. They generally aim to share information, set standards, produce directories and guides, organise conferences and identify' and tackle shared problems with a European perspective. Assessment By creating an opportunity for representatives to meet, assisting with travel costs and providing some logistical support, SPRINT TRIGGERS A Europeanisation effect at the level of these organisations. Support for rnacTO-oetworks of this type is only required in the early stages of activity; the networks build up membership, provide membership services and become self-supporting. Their relationship with SPRINT then evolves into partnership, this allows the programme to keep up close contacts with all actors in the innovation system, to gain a detailed knowledge of them, and to consult them. This would also be very valuable for the third Activity and could be exploited by all Commission services which deal with SMEs. The panel regards this actions as well-directed and of good value and recommends that macro-networks should continue to be promoted. As each network is representative of one specific feature of innovation, there is a case to be made for the introduction of a "network of networks" share the combined facets of innovation policy can be considered in total. The panel also recommends that greater use be made of such networks by other programmes aiming to reach through to SMEs. this requires SPRINT to devote some resources to selling its networking achievements to other potential users. 57 THE EUROPEAN INNOVATION MONITORING SYSTEM (EIMS) Objectives The general aims of the ELMS are to collect and a^serninate information on innovation and technology transfer and to organise a permanent and interactive system for producing and using this knowledge. More precisely, EIMS aims to: • Monitor innovation in Europe and evaluate support measures • Strengthen the exchange of experience between the Member States and the Commission m the field of innovation policy and technology transfer • Provide all interested parties with information, analysis and research on the factors shaping, promoting and inhibiting innovation at the company level across Europe • Reflect the increasing need for reliable information as a foundation for formulating innovation policy in the light of the major changes in the innovation environment and especially the characteristics and different types of innovation within SMEs. Implementation EIMS activities are organised in six main areas: 1. Evaluation 2. Innovation in firms 3. Innovation and technology transfer support infrastructures 4. Regional aspects of innovation (capabilities, infrastructures and strategies) 5. Innovation financing 6. Innovation policy. After a preliminary phase devoted to the establishment of the network and the work procedures, EIMS has been fully operational since 1993. Interfaces EIMS has the capacity for developing its role as a focal point of best practice in innovation and technology transfer within the Community. Basically, the knowledge produced by EIMS could be used especially by the Commission departments responsible for regional policy, industrial pohcy and SME policy, and also by the Member States. Up to now it seems that specialised EIMS knowledge is not used sufficiently. As well as facilitating the evolution of a more effective SPRINT Programme (and of the future Third Activity") and to identify new tasks, EIMS also offers the prospect of assisting other programmes at Community level, at Member State and regional level, and in other areas, for example those covered by PHARE and the EFT A countries. 58 Assessment The panel considered that EIMS is very important to the SPRINT Programme, h provides a basis for the development of knowledge of both the innovation process in SMEs and of pohcy measures for fostering innovation. It provides mechanisms for disseminating this knowledge and adopting best practices. Nevertheless, the interfaces and the use made of the knowledge by other DGs and Member States are so far inadequate. The panel would have appreciated more work on the ultimate SPRINT clientele -SMEs-, on the various prerequisites for innovation and on the different types of cluster etc. Because of the experimental, catalytic and rrmra-disciplinary (technology, management financing) character of SPRINT, the panel considered EIMS a very important element of self-reflection, critical reviews of existing programmes and a basis for developing new concepts of innovation pohcy. Internal self-analysis of an innovation-promoting programme is perceived as a unique characteristic of SPRTNT which should be used within other Commission R&D programmes as well. 59 ANNEX 2: ANALYSIS OF THE SPRINT SYSTEM BY OBJECTIVE As mentioned above, systematic action is the only way to make a real impact on an programme environment as complex and mteractive as the innovation system. Is the SPRINT the panel a system, which means does it have an internal logic? To assess its coherence, chose to analyse the innovation actors gnd (see Annex 1) and the objectives gnd, used in this annex. it through two gnds: For the panel, the best gnd of objectives is the one defined recently by the work programme of the third activity, mto which SPRINT will be mcorporated. The three objectives of this work programme are as follows. 1. 2. 3. An environment beneficial to innovation and the absorption of Establishment of an area for the free circulation of technologies Supply of appropnate technologies to the SME system technologies in the EU Links with the innovation policy described in part 1 of the report as a reference basis for this evaluation are clear: - - through the idea of mnovation environment, the first of these three objectives is associated with the overall aims of a local innovation policy; the second stresses the European dimension and aims to remove existing barriers inside Europe and to build on the wealth of experimentation brought about through European diversity; - the third is a difficult yet important aspect of technology dissemination. The following plan was selected for analysing the SPRINT system using this grid: - for each objective, continue the Part One analysis by assessing what, in the panel's opinion, constitutes the rationale and logic of the propsed initiatives (and therefore a possible basis for the work of the third activity); - assess the extent to which the SPRINT initiatives fit the objectives (point A of each box); - identify what SPRINT is unable to achieve, either because it disregards the finally, objective concerned, or because of a lack of resources, or because the initiative is better suited to another programme such as VALUE (point B of each box). 60 1. First objective: creation of an environment beneficial absorption of technologies to innovation and the Rationale: An SME's competitiveness depends primarily on its own capacities. But it also depends on its environment; available resources vary extensively from one region to another and not only m nature but also in quality and quantity. Unlike natural resources in the past, this comparative advantage is not acquired, it is buildt up m a joint effort between firms and public authonties. ** To secure this advantage, the most obvious step is to promote the emergence of innovation services. Whatever their activity sector, SMEs cannot get along without partners who complement their internal know-how with the expertise required for innovation. To illustrate this diversity, the panel has used a hexagon diagram (see Figure 1): SMEs are m the centre; on each of the sides are the six main types of partners: other firms (SMEs and large firms), technology resource centres (or Research and Technology Organisations -RTOs); the vanous financial institutions (banks and capital development), and on the last side, field agents who stimulate innovation and demand and coordinate departments responsible for innovation policy, both sometimes grouped under RTACs. types of consultants (management, marketing, the vanous actions: proximity advisers intellectual property); for An SME must therefore exist within a highly interactive system where it is both provider and recipient, and both client an& supplier. In this system, interfaces (intermedianes), locations for meetings and negotiations and mechanisms for distributing information and other resources all play an essential role. The build-up of this infrastructure mitiatives. The result will depend largely on their coherence is the outcome of a number of pnvate and public •• A second prerequisite of success for the SME is a strong absorption capacity A whole range of functions can be idenuficd which allow SMEs to make the most of the resources of their environment, particularly m the technological sector. Where they exist, R&D teams play the main role. Otherwise, and most frequently, the firm recruits engineers and technicians who know the R&D world m particular, and mnovation partners m general Schemes designed to engender a favourable environment Schemes designed to engender a favourable and accessible environment can be grouped in four objectives: J a. lb. Ic. Id. to help local innovation policies (regional or national) to improve the targeting and organisation of their initiatives. to improve of technological and managena I partners of SMEs; to assist financial partners for the innovative SME; to change SMEs'attitudes the quality (through training, publication of the learning module, etc. ) innovanon. to 61 la. To help local innovation policies (regional or national) organisation of their initiatives: to improve the targeting and Local innovation policies can play a key role in making a variety of initiatives, all apparently quite different, implemented by the vanous pnvate or public SME partners, mto a coherent whole. It is therefore a priority to support those responsible for the policies, while increasing European cohesion by disseminating best practices. A- Those responsible for regional policies (at least most of them) are still feeling their way and looking to find successful models from other regions. The following SPRINT initiatives include this as a rationale: - - the RTAC network and its specialised working group the RITTS and RTP projects which put forward to the regions a project for an evaluation and a re-definition of their strategy - the science park consultancy scheme that helps local policy makers to create a science park (technopole) and then to evaluate it (part of the RTTTS) B- Except for this last scheme, SPRINTs activity here is only recent; it is therefore difficult to assess to what extent existing needs are tackled Clearly, it is still exceptional for the management of structural funds to be inspired by SPRINTs expenence and this programme is far from providing a complete set of models for action to regional policy makers lb. Improve technological and managerial partners of SMEs: the quality (through training, publication of the learning module, etc) of The jobs of SME partners arc relatively new and it seems necessarv to improve the professional standard of those practitioners, to disseminate advances m methodology and to launch pilot projects m which vanous interaction mechanisms between SMEs and their partners are tested A -And therefore: - the value analysis, design and quality programmes make experiences so as to offer professionals some training modules, the most of European - the MINT programme pilots subsidised management consultancy and mcludes vanous consultation methods and tools. - Specific Projects (SPAL) enables the collaboration between RTOs and users (SMEs but also public authonties) to be assessed The nature of the service RTOs render to SMEs is, in feet, undergoing radical change, but by no means everyone is affected. For example, a number of sectoral resource centres have kept the system of collectively-funded research. It is therefore very useful to compare, through pilot schemes, the value of services rendered by the various intermedianes to the various categories of firms; 62 - the PRISM/FEICRO sub-programme and two recent conferences could become the basis for an evaluation of RTO performance. B- In spite of this apparent wealth of initiatives, SPRINT is a long way from filling all the gaps in the system; for example, nothing is done to improve market analysis or to adapt industrial property practices to the needs of an SME. wishing to sell products throughout the European market or to work m a European consortium, (others are working on this, but is this with the aim of promoting innovation in standard SMEs?) Ic Financial partners for the innovative SME A- SPRINT was the first to tackle this very difficult problem. -Transnational investment fora which bring together investors and entrepreneurs once m a year; - T PF pilot experiment (Technology Performance Financing) -EIMS workshops and studies on the import from the USA of mechanisms considered there to be particularly useful to pnvate investment for innovation: NASDAQ type of market, secuntization, etc. B- Because of a lack of terms of reference and resources, SPRINTs action here has remained at the reflection and expenmcnlation level. This might actually be considered sufficient for a honzontal (strategic) programme, provided that mechanisms are found for tackling detected needs for which SPRINT has ready-tested solutions to put forward. DG XVIII the market for growth companies (EUROSDAQ) encouraged by the EVCA network, another example is DG XXIII, which implemented a programme m support of "seed capital" firms. taking on the responsibility of supporting is therefore However, support for financial intermedianes clearly remains very modest and we hope that a more ambitious and systematic action will develop within the third activity (or elsewhere). Innovation in SMEs is handicapped more by the lack of financial partners than by European technology lagging behind. It is known already, notably thanks to the EIMS, what could be done for "small businesses", support for the launch of seed capital, mcrease of pnvate funds, etc. ) The third activity could therefore be the framework for new initiatives m support of European venture capital firms and experimentation in terms of pnvate financing for innovation intelligently with public money (for example increased guarantees Id. To change SMEs'attitudes to innovation: Most European SMEs are still quite shy of innovation, and most of all of letting a number of partners have a hand in a process which is the nucleus of their strategy. This obsession with secrecy, this reluctance to make their capital available and the inability to find partners and to make the most of them often lead to failure. 63 Indeed, the mere fact of being involved in innovation leads an SME to: change its internal organisation, e. g. by deploying most of its active workforce m a single project; itself up open itself both upstream and downstream of production within an intensely interactive network of companies (small and large); to external partners and establish go international, develop a strong capacity for absorption m general, which could well be the necessarv1 and adequate prerequisite for creating jobs. A- The SPRINT programme has tackled this very important aspect of innovation only recently, and furthermore m a modest way: through the development of the RTAC network, consultant" component, whose main ask is to heighten SME awareness of the resources m their environment; by networking national or regional programmes for mobilising innovation specialists (EUNETmobility initiative, recently launched). in its "multi-purpose-innovation Only those SMEs which have created an internal innovation and interface "unit" are m a position to dialogue with their environment through some aspects of the Af/A^T/mtiative B- Yet these schemes are still recent and modestly funded Analysis of the specific projects followed by experimentation would enable the vanous aspects of the problem of human resources in SMEs to be tackled more directly, and that of their absorption capacity. 2. Second objective: establishment of an area for the free circulation of technologies in the EU (and for applications for innovative products). Rationale: To ensure that, during its innovation process, each SME has all the necessary technologies at its disposal. That is the objective, if not the dream, of all programmes onented towards dissemination, exploitation and technology transfer. The problem is mtrinsically difficult, as is the case whenever a very specialised supply has to match a very personalised demand. This is also why a number of mterface services developed m the first place, the improvement of which was the goal of the first objective This problem already exists in any homogeneous economic space, e. g. in the US or Alsace, but it is much more acute in the European market because of the national bamers: cultural 64 differences, different languages, laws, etc. are so many obstacles to the free circulation of technological knowledge. Similarly, the segmentation of the European market remains a serious obstacle to the dissemination of products. If these products "incorporate" technology (tools, software, materials etc. ), an extra difficulty is added to technology dissemination. But more generally, the innovation process embraces successful commercialisation, and nowadays, this means etablishing oneself in a vast market; but surveys concerning radically new products show that getting established in another European country is just as difficult as m the US. The States remain the ideal market for the international expansion of a product, which is a senous handicap for European SMEs. Possible initiatives: To combat these vanous obstacles, to get closer to the free circulation of technologies and to contnbute to the creation of a real smgle market of innovative products, a number of initiatives should aim at: 2a. 2b. 2c. 2d. the vanous partners of SMEs by creating networks; information supplied to SMEs by their vanous partners; Européanise Européanise Create interaction areas in well defined Fight regulatory bamers. segments; 2a. Européanise the various innovation partners of SMEs by creating networks supports macro-networks having established a European community amongst A - SPRINT most SME partners; the EACRO network (for contract research organisations), the RTAC (for national policy-makers m support of innovation); the EVCA network (for network venture capitalists) and the EUROTECH network are now independent Other partners (consultants, technology brokers, ARIST, etc ) arc now grouped in T i l 's network which is now no longer officially linked to SPRINT The activity of these networks is modest, but they guarantee a minimum of reciprocal regular knowledge and keep alive conferences); they sustain a "European reflex" Their efficiency is assessed m Part Three. the idea of a European community (e. g. through Mini-networks as described m Anncs 1 arc more active B - Besides networks of intcrmcdiancs, networks of firms seem to become increasingly a topic, whatever their nature (SMEs only. Large firms and SMEs, etc. ). SPRINT has prepared the field through initiatives such as TTDays or some EIMS workshops and studies; but nothing really important was launched. There could be an important slot here for the third activity to fill and one which could benefit from the expenence not only of SPRINT, but also of EUREKA, CRAFT, etc. 65 2b. Européanise information supplied to SMEs by their various partners A - SPRINT has only indirectly dealt with this important problem, which is the pnme target of other programmes such as VALUE. - However, the newly-emerging RTAC network may, in the future, bnng an unportant contribution: it may encourage, under certain conditions to be denned by the network, the vanous proximity partners of SMEs to make all or parts of their databases generally available. It should be noted that some SPRINT networks (notably ORT networks) publish newsletter. B -As the successor to the VALUE programme, the third activity may find considerable scope for action here 2c Create interaction areas in precise slots: A - This is what mini-networks do, they are alliances groupmg a small number of partners for co-operative activities: - mini RTO networks in the technological sector - mini inter-firm networks (transfer of licence) - the "technology transfer day" initiative comes under both this objective and the first one (2a. ) since each organiser assigns a particular objective to the II Day which conesponds to the local SME demand. A large number of firms seem to have found correspondents and European scope for their initiatives - - the new SPNET project transnational investment fora - finally, the Specific Projects are demonstration activities conditions for trans-regional technology transfer, already developed to some extent. to determine optimum B - SPRINT pulled out of "thematic networks" which were active in the 1980s. The idea was taken on by the BRTTE-EURAM programme, from which it received substantial funding. Specific third activity projects provide a tool for experimentation and action in a wide-open field. 66 2d. Combat regulatory barriers: A - Only abortive attempts can be reported on, e. g. an attempt to solve the problem of intellectual property. B - Considering SPRINTs knowledge of the pattern of innovative SMEs, the programme could have become their legitimate spokesman (with DG XXHI and DG XVT) and drawn attention to the bamers they still face, unknown to large firms with diversified human resources. For example, multinationals (including US and fairly successfully with the segmented European market, whereas SMEs still regard the US market as more accessible because it is more homogeneous. Furthermore, as previously mentioned, no. thought is given to a licensing policy for SMEs. A further example: the third activity could continue the contemplation started by EIMS of a generalised standards system based on performance and its outcome, i. e. "pennormative" research to be developed m RTOs. lapanese ones) can cope These are just a few general examples of areas programme, could act as a beacon and come up with proposals European programmes. in which SPRINT, as a horizontal for vertical national or 3. Third objective: supply SMEs with appropriate technologies Rationale: It is not a question of developing The title for this third objective may lead to confusion. radically new technological knowledge, wnether m SPRINT or m the third activity; that is a job for the specific RTD programmes (first activity) The time-consuming and difficult goal here is to adapt knowledge developed m a laboratory to the requirements of an innovative SME project. The knowledge may also have been tested aJready by incorporation mto a commercialised product or process, but in a completely different range of products or sector. When these adaptation tasks are conducted collectively, for a range of products or a sector, integration time and effort for an SME can be greatly reduced. Such tasks are central to the work of various technical centres (RTOs, CRTs, CROs), whether their activity rs centred on individual projects or joint ventures A - experience in this area thanks to: Without insisting too much on this third objective, SPRTNT has accumulated some some mini RTO networks, but financial support is modest and can only cover the extra costs incurred through cooperation, some Specific Projects. 67 B - This is merely a fraction of a task which will be growing in importance under the third activity. For example, in some countries it will be important to guarantee the launch of Technology Resource Centres (TRCs) with specific targets, during the difficult years before the SME clientele becomes established. More generally, there is a need to redefine completely the services to be provided bt TRCs. this could be based on a TRC auditing system. * * * ** 68 ANNEX 3: NOTE ON THE 1%-RULE INTERACTION KITH THE PROGRAMMES OF THE FIRST ACTIMTY in accordance with the Decision of the European Parliament and the Council of 26 Apnl 1994 on the Fourth Framework Programme, the activities m the field of dissemination and exploitation are also to be implemented by the specific programmes of the first activity. A sum representing an average of 1 % of the total budget of the Fourth Framework Programme is allocated to the dissemination and exploitation of results of the research programmes. The research programmes implement activities in the field of dissemination and exploitation relatmg to their respective fields of research, in close collaboration with the Third Activity. This decision opens up a new field of activity for SPRINT-type initiatives The panel perceives this opportunity as highly unportant m two respects: strengthening the link between RTD and demand/use as an important precondition for efficient dissemination and technology transfer and the improvement of programmes. links between SPRINT initiatives and the specific research Indeed the application of the 1%-ruleby the specific programmes should allow at an early stage of the projects involvement of all possible users (SMEs, large firms, consumers, financing institutions, standardisation) The specific contribution of SPRINT would be to to emphasize emphasize the needs of these firms m the process of planning R&D programmes. the diffusion of technologies and of know-how towards SMEs and Specific contributions of SPRINT-type initiatives might be: - use of existing network infrastructure of the third activity by the research programmes; - exchanges of experience of approaches, methods, new tools of dissemination and exploitation and in the design of innovation-friendly research programmes, - pilot projects for testing, demonstrating and learning new ways of improving dissemination in the fields of: • the transferability and adaptability of technologies or research results from one sector to another or from one technology sector to another (spillover and transfer effects); 69 * new ways of involving future users and institutions potentially crucial to the innovation phase well upstream of the innovation process (financing and/or regulatory bodies, etc. ); * development of new tools for long-term forecasting of demand, new social needs and technical and scientific developments as an aid to designing targeted research programmes. The main functions of the third activity in the use of the " 1 %" should be: coordination, pilot experiments and, more generally, its expertise and its relations with innovation infrastructures. The in-depth knowledge of the needs of various types of SMEs that SPRINT has gained following its industry-oriented activities should allow for improved planning of R&D programmes. The panel stresses the importance of careful design of the coordination mechanism necessary for the role of the third activity to be accepted. 70 ANNEX 4 SPRINT EVALUATION PANEL List of members: 1. Robert CHABBAL (F), President Adviser to the General Director for research and technology at the Department of Research and Higher Education Former CNRS General Director Former NATO Research Director Former OECD Director for Science, Technology and Industry 2. Gecrge ARGYHOPOULOS (GR) General secretary of the Federation of Greek industries Member of the CRAFT think tank group 3. Paul BRADSTOCK (UK) Director of the Oxford Trust, responsible for innovation and new technologies m Oxfordshire, Director of the Oxford mnovation Previously, has held responsibliues m the management of vanous hi-tech SMEs 4. Luis CRESPO (E) General Director of the Extrcmadura Development Agency Former General Secretary of the Spanish Association for new technologies" Former CDTI Director Member of the VALUE panel and of the SPRTNT mdi-term evaluation panel 5. Friedcr MEYER-KRAHMER (D) Director of the Fraunhofcr Institute for Systems and Innovation Research in Karlsruhe. CcK>rdinator of the SPEAR network on evaluation of socio-economic effects of R&D 6. Erkki ORMALA (SF) Secretary of the Science and technology Policy- Council of Finland Chairman of the group of experts for the evaluation of EUREKA Vice-president of the OECD working group on innovation policy Secretary's office: Daniel ROUTIER Rjcardo Hitec Ltd SPRINT Technical Assistance Unit 71 ANNEX 5 MANDA TE FOR THE SPRINT FINAL REVIEW PANEL 1. The panel is composed of persons who are appointed by the Director General, DG XIH, and will serve in their personal capacity. Their views therefore in no way commit or should be influenced by their employing organisations. 2. The panel is invited: a) to assess the extent to which SPRINT has fulfilled its initial objectives, and its impact with attention to the cost-effectiveness of the actions; b) to appraise the continued relevance of its rationale and main activities in the present Community context having regard to current and prospective needs and taking into account the evolving policy context, in particular the subsidiarity principle; c) to formulate suggestions for possible adjustments and/or modifications that could be introduced in order to improve the effectiveness of future Community activities in the area presently covered by SPRINT, in the light oi the above assessments. 3. The panel members have access to all relevant information necessary to perform their task. The secretariat of the panel will be provided by one of its members with the logistic support oi the Commission services. 4. Subject to the prior approval of the Commission, the panel members may travel within the Community to interview persons about the programme and to see work m progress. 72 ANNEX 6: List of acronyms/Liste des acronymes CRO CRAFT CRT EACRO EIMS EUNET Contract Research Organisations Organisation de Recherche sous Contrat Cooperative Research Action for Technology Action co-opérative pour la Recherche technologique Centre Régionaux pour la Technologie Regional Technological Centres European Association of Contract Research Organisations Association Européenne d'Agences de Recherche sous Contrat European Innovation Monitoring System European fellowship Network Réseau pour des bourses Européennes EUROSDAQ European Organisation of Securities Dealers and Quotations EVCA FEICRO FWP FTP JET LFR European Venture Capital Association Association Européenne de Capital à Risque Federation of European Industrial Cooperation Research Organisations Fédération Européenne d'Organisations de Recherche pour la Coopération Industrielle Framework Programme Programme Cadre Technology Performance Financing Scheme Plan de Financement de la Technologie selon sa Performance Jeunes Entreprises Technologiques New Technology Based Firms Less Favoured Regions Régions moins Favorisées MINT Managing the Integration of New Technologies 73 Gérer l'Intégration des Nouvelles Technologies NASDAQ National Association of Securities Dealers and Quotations NTBF OCDE ORT PME R&D RTD RTTTS RTAC RTO RTP SME SPAL SPCS SPNET New Technology Based Firms Jeunes Entreprises Technologiques Organisation pour la Coopération et le Developement Economique Organisation for Economie Co-operation and Developement (OECD) Organisations de recherche et de technologie Research and Technology Organisations Petites et Moyennes Entreprises Small and Medium-sized Enterprises Research and Development Recherche et Développement Research and Technology Development Recherche et Developement des Technologies (RDT) Regional Innovation and Technology Transfer Strategies and Infrastructures Infrastructures et Strategies Régionales de Transfert de Technologies et de Soutien à l'Innovation Regional Technology Advisory Centres Centres régionaux de Conseil en technologie Research and Technology Organisations Organisations de Recherche et de Technologie Regional Technology Plans Plans régionaux Technologique Small and Medium-sized Enterprises Petites et Moyennes Entreprises Specific Projects Action Line Ligne d'action des Projets Spécifiques Science Park Consultancy Scheme Programme d'aide au conseil en matière de parcs scientifiques Science Park Networking Réseaux de Parcs Scientifiques 74 SPRINT SQW TPF TRC TT TTDavs VALUE Strategic Programme for /TVhovation and Technologv' transfer Programme Stratégique pour l'innovation et le Tranfert de Technologie Segal Quince Wicksteed (UK consultancy firm) Technologv' Performance Financing Scheme Plan de Financement de la Technologie selon sa Performance Technologv' Resource Centre Centre de Ressources technologiques Technologv- Transfer Transfert de Technologie Technologv' Transfer Days Journées des Transfert de Technologie Valorisation et Utilisation pour l'Europe Valorisation and Utilisation for Europe TABLE 1 Innovation needs of various catceories of SMEs NEEDS COMPANIES RTAC (Definition Phase) TECHNO - LOGICAL PARTNERS (RTO, CRT. ) MANAGEMENT HELP FINANCIAL RESOURCES R/D SUBSIDIES (SBIRtype. ) *. JET (NTBF) Strong potential for growth b. Research Intensive Companies (R. I. C) c. Standard SMEs XX XX See list of acronyms, annex 6) X XX XX XXX (+ NASDAQ) X X X X TABLE 2 Operators in Innovation and types of initiative under SPRINT Category of operator Type of initiative Study *! Experiment Evaluation Networks Interaction areas CONSULTANTS RTOi RTACs SCIENCE PARKS FINANCING SYSTEM REGIONS SMEs Value analysis Design Quality MINT SPAL EIMS EIMS - EIMS NASDAQ EIMS EIMS (Clusters, NTBF) SPAL SPNET (?) TPF SPAL SPAL Evaluation of specific projects RITTS park RITTS RTP Til TTDays Mini- net works RTAC networks SPNET (?) EVCA Fora TTDays (See Annex 6: list of acronyms) TABLE 3 Objectives of the SPRINT Programme and types of initiative Objective INFLUENCING SPECIALIST OPERATORS INFLUENCING INSTRUMENTS AND POLICY-MAKERS Type of initiative Study VA, D, Q EIMS DISSEMINATION EUROPEANISATION Experiment Evaluation MINT SPAL SPNET (?) RTACs TPF SPAL regional RITTS TPF (?) Networks Interaction areas RTO mini-networks RTAC mini-networks EVCA -> NASDAQ Mini-networks of brokers RTO mini-networks RTAC mini-networks TTDays Til (See Annex 6: list of acronyms) EIMS SPAL RITTS TTDays All networks OPERATORS OBJECTIVES Influencing specialist operators Influencing instruments and policy makers Horizontal schemes TABLE 4 Programme objectives and Innovation operators CONSULTANTS FINANCING SYSTEM RTOs RTACs SCIFNCE PARKS REGION S MINT Mi ni-networks VA - D - Q EASD Mini-networks SPAL RTACs Feasibility RTACs SMEs Absorption capacity (?) SPAL SPAL DGXII RITTS park RITTS RTPs SPAL DGXVI DGXVI DG XXIII MINT TPF Euro SDAQ (DG XVIII. XXIlletc) EVCA Fora CX5 Europeanisation Til EACRO RTACs SPNET (?) Networks (?) TTDays TT Days Technology dissemination Mini-networks TPF(?) Mini-networks RTACs (?) TTDays (See Annex 6: list of acronyms) SME PARTNERS CONSULTANTS INNOVATION POLICY PUBLIC FINANCIAL SUPPORT •a TECHNICAL RESOURCE CENTRES RTO FINANCIAL SYSTEM ADVISERS IN TECHNOLOGICAL INNOVATION OTHER SMEs FIGURE! Appendix B List of evaluation reports on SPRINT activities • SPRINT mid-term evaluation • Evaluation of Intermediaries networks 1992 1992-93 • Evaluation of Research and Technology Organizations (RTO) networks 1994 • Evaluation of Specific Projects (Phase I and II) 1993-94 • Evaluation of the Managing the Integration of New Technologies (MINT) Scheme 1994-95 • Evaluation of the Science Park Scheme 1994-95 • Evaluation of the Community Innovation Survey (CIS)-Phase I 1994 • Evaluation of the Technology Performance Financing (TPF) Scheme 1994-95 ISSN 0254-1475 COM(96) 130 final DOCUMENTS EN 15 Catalogue number : CB-CO-96-137-EN-C ISBN 92-78-01897-X Office for Official Publications of the European Communities L-2985 Luxembourg 21

Proposal for a COUNCIL REGULATION (EC) on the conclusion of the Protocol defining, for the period from 18 January 1996 to 17 January 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off Seychelles

http://publications.europa.eu/resource/cellar/64ce56c1-1464-470b-bc74-e2f1efb47e04

eng

+*+ * * I COMMISSION Oh I Hh fcUKUHhAN COMMUNi I ItS i Brussels, 01. 04. 1996 COM(96) 131 final 96/0089 (CNS) Proposal for a COUNCIL DECISION on the conclusion of the Agreement in the form of an Exchange of Letters concerning the provisional application of the Protocol defining for the period 18 January 1996 to 17 January 1999 die fisliing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off the coast of Seychelles Proposai tor a COUNCIL REGULATION <EC) on the conclusion of the Protocol defining, for the period from 18 January 1996 to 17 January 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off Seychelles (presented by the Commission) EXPLANATORY MEMORANDUM The Protocol annexed to the fisheries agreement between the European Community and the Seychelles expired on 17 January 1996. A new Protocol was initialled by the two parties on 18 January 1996 establishing the technical and financial conditions under which Community fishing vessels can fish in Seychelles waters in the period 18 January 1996 to 17 January 1999. The Commission is accordingly proposing that the Council should adopt: by means of a Decision, the draft Agreement in the form of an exchange of letters concerning the provisional application of the new Protocol pending its final entry into force, by means of a Regulation, the Protocol establishing the fishing opportunities and the associated technical and financial conditions agreed between the Community and the Seychelles for the period 18 January 1996 to 17 January 1999. 2 Proposai for a COyNCIL DECISION of on the conclusion of the Agreement in the form of an Exchange of Letters concerning the provisional application of the Protocol defining for the period 18 January 1996 to 17 January 1999 the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off the coast of Seychelles THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to the Agreement between the European Economic Community and the Republic of Seychelles on fishing off Seychelles ('), signed in Brussels on 28 October 1987, Having regard to the proposal from the Commission, Whereas the Community and the Republic of Seychelles have held negotiations with a view to determining amendments to be made to the abovementioned Agreement at the end of the period of application of the Protocol in force which is annexed to the said Agreement; Whereas, as a result of these negotiations, a new Protocol was initialled on 18 January 1996, by virtue of which Community fishermen are to enjoy fishing opportunities in the waters falling within the sovereignty or jurisdiction of the Republic of Seychelles for the period 18 January 1996 to 17 January 1999; Whereas, in order to avoid interruption of fishing activities by Community vessels, both parties have initialled an Agreement in the form of an Exchange of Letters providing for the provisional application of the said Protocol from the day following the date of expiry of the Protocol previously in force; whereas the Agreement in the form of an Exchange of Letters should be approved subject to a definitive decision pursuant to Article 43 of the Treaty, HAS DECIDED AS FOLLOWS: Article 1 The Agreement in the form of an Exchange of Letters concerning the provisional application of the Protocol defining, for the period 18 January 1996 to 17 January 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off Seychelles is hereby approved on behalf of the Community. The text of the Agreement in the form of an Exchange of Letters is attached to this Decision. Article 2 The President of the Council is hereby authorized to designate the persons empowered to sign the Agreement in the form of an Exchange of Letters in order to bind the Community. Done at Brussels, For the Council The President C) OJ No L 119, 7. 5. 1987, p. 26. AGREEMENT in the form of an exchange of letters concerning the provisional application of the protocol defining, for the period 18 January 1996 to 17 January 1999, die fishing opportunities and the financial contribution provided for by the agreement between the European Community and the Republic of Seychelles on fishing off Seychelles A. Letter from the Republic of Seychelles Sir, With reference to the draft Protocol, initialled on 18 January 1996, establishing the fishing opportunities and the financial contribution for the period 18 January 1996 to 17 January 1999, I have the honour to inform you that the Republic of Seychelles is ready to apply this Protocol on a provisional basis, with effect from 18 January 1996, pending its entry into force in accordance with Article 6 of the Protocol, provided that the European Community is prepared to do the same. This is on the understanding that a first instalment equal to one-third of the financial compensation specified in Article 2 of the Protocol is to be paid by 31 May 1996. I should be obliged if you would confirm the European Community's agreement to such provisional application. Please accept, Sir, the assurance of my highest consideration. For the Republic of Seychelles B. Letter from the Community Sir, I am in receipt of your letter of today's date, which reads as follows: to on the the draft is ready initialled to apply Protocol, reference fishing opportunities and 18 the financial contribution 1996, "With establishing the period 18 January 1996 to 17 January 1999, I have the honour to inform you that the Republic of Seychelles from 18 January 1996, pending its entry into force in accordance with Article 6 of the Protocol, provided that the European Community is prepared to do the same. This is on the understanding that a first instalment equal to one-third of the financial compensation specified in Article 2 of the Protocol is to be paid by 31 May 1996. I should be obliged if you would confirm the European Community's agreement to such provisional application. " this Protocol on a provisional basis, with effect January for I have the honour to confirm the European Community's agreement to such provisional application of the Protocol. Please accept, Sir, the assurance of my highest consideration. On behalf of the Council of the European Union << Proposal for a COUNCIL REGULATION (EEC) No of on the conclusion of the Protocol defining, for the period from 18 January 1996 to 17 January 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off Seychelles THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, in conjunction with Article 228(2) and (3) first subparagraph thereof, Having regard to the proposal from the Commission, Having regard to the Opinion of the European Parliament ('), Whereas, in accordance with the Agreement between the European Economic Community and the Republic of Seychelles on fishing off Seychelles, signed in Brussels on 28 October 1987, the Contracting Parties held negotiations with a view to determining amendments to be made to that Agreement at the end of the period of application of the Protocol attached to the said Agreement; Whereas, as a result of these negotiations, a new Protocol defining for the period from 18 January 1996 to 17 January 1999 the fishing opportunities and the financial contribution provided for by the abovementioned Agreement was initialled on 18 January 1996; Whereas it is in the Community's interest to approve that Protocol. "Whereas the allocation of fishing possibilities among the Member States should be determined on the basis of the traditional allocation of fishing possibilities under the fisheries agreement" HAS ADOPTED THIS REGULATION: Article 1 The Protocol defining, for the period from 18 January 1996 to 17 January 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off Seychelles is hereby approved on behalf of the Community. The text of the Protocol is attached to this Regulation. Article 2 The fishing possibilities provided for in the Protocol are allocated among the Member States as follows: - freezer tuna seiners: France: 20 vessels; Spain: 22 vessels; C) Opinion delivered on (not yet published in the Official Journal). 5 - surface longliriers: France: 5 vessels. 10 vessels Spain: If licence applications from these Member States do not exhaust the fishing possibilities provided for in the Protocol the Commission may entertain licence applications from any other Member State. The President of the Council is hereby authorized to designate the persons empowered to sign the Protocol in order to bind the Community. Article 3 Article 4 This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council The President C PROTOCOL defining for the period 18 January 1996 to 17 January 1999 the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off Seychelles. ARTICLE 1 Pursuant to Article 2 of the Agreement, and notwithstanding Article 12 of the Agreement relating to further periods of the Agreement, licences to fish simultaneously in Seychelles waters shall be granted to 42 ocean-going tuna seiners and 15 surface longliners not exceeding 37 m lenght overall for a period of three years beginning on 18 January 1996. ARTICLE 2 The financial compensation referred to in Article 6 of the Agreement shall be fixed at ECU 6 900 000 for the period provided for in Article 1 of this Protocol, payable in three equal annual instalments. The financial compensation corresponds to a catch of 46 000 tonnes of tuna per year in Seychelles' waters. If the catch by Community vessels in Seychelles' waters exceeds 46 000 tonnes, the Community shall increase the financial compensation proportionately. ARTICLE 3 The Community shall also pay, during the period referred to in Article 1, a contribution of ECU 2 700 000 payable in three equal annual instalments, towards the financing of scientific programmes in the Seychelles to gain greater knowledge offish stocks concerning the region of the Indian Ocean surrounding the Seychelles islands, particularly in respect of highly migratory species, and the purchase or maintenance or both, as Seychelles may think fit, of equipment to improve the administrative structure relating to fisheries in Seychelles. The Seychelles authorities shall forward a brief report on the way that amount is used to the Commission services. ? ' ARTICLE 4 The two parties hereby agree that an essential condition for the success of their co-operation is that the skills and know-how of persons engaged in sea fishing be improved. To this end, the Community will assist Seychellois nationals in finding places in establishments in its Member States or States with which it has concluded co-operation agreements and will make available an amount of ECU 300 000 for study or practical training awards with a maximum duration of five years in the various scientific, technical and economic subjects relating to fisheries. Of this amount, up to ECU 100 000 may be used, at the request of the Seychelles' authorities, to cover the cost of attending international meetings relating to fisheries. ARTICLE 5 The Protocol and Annex I, dated 18 and 17 January 1990 respectively, to the Agreement which came into force on 28 October 1987 between the European Community and the Republic of Seychelles on fishing off Seychelles are hereby repealed and replaced by this Protocol and Annex I. ARTICLE 6 This Protocol and Annex I shall enter into force on the date of their signature. This Protocol and Annex I shall be applicable from 18 January 1996. Î ANNEX I CONDITIONS FOR THE PURSUIT OF FISHING ACTIVITIES BY COMMUNITY VESSELS IN SEYCHELLES' WATERS 1 Licence application and issuing formalities The procedure for applications for, and issue of, licences enabling Community vessels to fish in Seychelles' waters shall be as follows: (a) the Commission of the European Communities shall present to the Seychelles Fishing Authority, via the representative of the Commission of the European Communities in the Seychelles, an application, made by the shipowner, for each vessel that wishes to fish under this Agreement, at least 20 days before the date of commencement of the period of validity requested. The application shall be made on the form provided for that purpose by the Seychelles, a specimen of which is annexed as appendix 1 ; (b) every licence shall be issued for one designated vessel. At the request of the Commission of the European Communities, the licence for a vessel may, and, in cases of force majeure, will be replaced by a licence for another Community vessel; (c) the licences shall be delivered by the authorities of the Seychelles to the shipowners, or their representatives or agents. The representative of the Commission of the European Communities shall be notified of the licences granted by the authorities of Seychelles; (d) the licence document must be held on board at all times; however, on reception of notification of payment of the advance sent to the Seychellese authorities by the European Commission, the vessel shall be entered on a list of vessels authorized to fish, which shall be sent to the Seychellese authorities responsible for fisheries inspection. A copy of the said licence may be obtained by fax pending arrival of the licence itself; that copy shall be kept on board; (e) the authorities of the Seychelles shall communicate before the date of entry into force of the Agreement the arrangements for payment of the licence fees, and in particular the details of the bank accounts and the currencies to be used. 2. Validity of licences and payment (a) Licences shall be valid for a period of one year. They are renewable. (b) The fee shall be set at ECU 20 per tonne caught within Seychelles' waters. Licences shall be issued following advance payment to Seychelles of a lump sum, per year and for each vessel, of ECU 7. 500 for tuna seiners and ECU 500 for surface longliners, equivalent to the fees for respectively 375 tonnes and 25 the Seychelles' waters per year. tonnes caught within (c) Surface longliners shall, before the starting of their fishing campaign in Seychelles' waters and at the end of it, call into Port Victoria to check the catches held on board. However, at the request of the shipowner, the Seychelles authorities might exempt the vessel of that requirement. Fishing licences for surface longliners shall authorise the fishing of not only tuna but also swordfish, marlin and sailfish. (d) The Seychelles Fishing Authority (SFA) will draw up a statement of fees due in respect of the previous calendar year on the basis of catch declarations by Community vessels and other information in the possession of the SFA. The statement will be sent to the Commission before March 31 of the current year, which transmitted it before April 15 simultaneously to shipowners and national authorities of the concerned Member States. Where the shipowners do not agree with the statement submitted by the SFA, they may consult the scientific institutes competent for verifying catch statistics such as Institut Français de Recherche Scientifique pour le Développement en Coopération (ORSTOM) or the Spanish Oceanographical Institute (IEO), and thereafter discuss together with the Seychelles authorities to establish the final statement before May 15 of the current year. In the absence of observations by the shipowners at that date, the statement submitted by the SFA is considered as the final one. The Member States will notify the Commission of the final statement relating to their own fleet. Shipowners shall make any additional payment above the advance to the Seychelles fisheries authorities before May 31th of the same year. Where the final statement is less than the abovementioned advance, the balance shall not be recoverable by the shipowner. 3. Declaration of catches a) The Community vessels licensed to fish in Seychelles' waters shall complete a fishing form as set out in Appendix 2 and 3, for each fishing trip it undertakes in Seychelles'waters. In the absence of catches, the fishing forms shall still be filled. b) For the periods for which a Community vessel referred to in point a) was not present in Seychelles' waters, it shall provide the abovementioned fishing form with the notation "Outside Seychelles' EEZ" c) As far as the release of the fishing forms referred to in points a) and b) is concerned, the Community vessels shall: - - in the case they call into Port Victoria, submit the completed forms to the Seychelles authorities within 5 days of arrival, or in any event before it leaves port, whichever occurs first; in any other case, send the completed forms to the Seychelles authorities within 14 days of arrival in any port other than Victoria. Copies of these fishing forms must also be sent to the scientific institutes referred to in point 2 (d). d) In the event of failure to comply with these provisions, the sanctions referred to in point 10 will be applicable. "> »» —i 4. Observers Tuna seiner vessels shall, at the request of the Seychelles'authorities, take on board a qualified observer designated by the said authorities in order to check position of the vessel and catches made in Seychelles'waters. Observers shall have all facilities necessary for the performance of these duties, including access to places, documents and communication equipments. An observer must not be present for longer than the time required to fulfil his duties. Observers shall be granted officer status while on board. Should a tuna seiner with a Seychellois observer on board leave Seychelles'waters, every step will be taken to ensure that the observer returns to Seychelles as soon as possible, at the shipowners'expense. 5. Employment of seamen Each tuna seiner shall take on board at least two Seychelles seamen designated by the Seychelles' authorities, in agreement with the shipowners, during its fishing campaign. The employment contracts of the seamen shall be drawn up in Victoria between the shipowners' representatives and the seamen in agreement with the Seychelles Ministry responsible for Employment. This contract shall cover the social security arrangements applicable to the seamen including life, accident and sickness insurance. 6. Landing Tuna seiners landing in the port of Victoria will endeavour to make their by-catches available to the Seychellois authorities at the local market prices. Furthermore the Community tuna seiners shall participate in supplying tuna to the Seychelles canneries at international market prices. 7. Communications Within 3 hours of each entry and exit of the zone and every 3 days during their fishing activities the in Seychelles'waters, Community vessels shall communicate directly Seychelles'authorities, in priority by fax or, in the event of failure, by radio their position and the volume of catches held on board. The number of the fax and radio frequency shall be indicated on the licence. to A copy of the communications by fax or a record of the radio communications abovereferred shall be kept by the Seychelles'authorities and the shipowners until the approval by both parts of the final statement of the fees referred to in point 2 (d). In the event of failure to comply with these provisions, the sanctions referred to in point 10 will be applicable. 8 Fishing zone To avoid any adverse effect on small-scale fisheries in Seychelles' waters, fishing by Community vessels shall not be authorized in the zones defined in the Seychelles regulations nor within three miles around any fish-aggregating device placed by the Seychelles authorities, the geographical positions of which have been communicated to the shipowners' representative or agent. 9. Port equipment and use of supplies and services 11 Community vessels shall endeavour to procure in Seychelles all supplies and services required for their operations. The Seychelles' authorities will the shipowners, the conditions for using port equipment and, if necessary, supplies and services. lay down, in agreement with 10. Sanctions Failure to observe anyone of the above rules or management and conservation of living resources measures, or the Seychelles legislation, may be penalized by suspension, revocation or non-renewal of the vessel's fishing licence. Suspension or revocation of a fishing licence shall be regarded as force majeure for the purpose of point 1(b) of this Annex. The Commission of the European Communities will immediately be fully informed of any suspension or revocation and of all the relevant facts related thereto. 11 appendix 1 APPLICATION FOR A FOREIGN FISHING VESSEL LICENCE Name of applicant: Address of applicant: Name and address of charterer of vessel if different from above: Name and address of other legal representative in Seychelles:. Name and address of master of vessel: ' Name of vessel: Type of vessel: Length and registered net tonnage of vessel: Engine type, horse power and gross registered tonnage: Port and country of registry: Registration number: Fishing vessel external identification: Radio call sign/signal letters: Frequency Particulars of equipment: Number and nationality of crew: Proposed fishing area and species of fish: Description of fishing operations, joint ventures and other contractual arrangements: I certify that the above particulars are correct. Date: Signature: 13 DGXJV APPENDIX 2: STATEMENT OF CATCH FOR TUNA SEINERS On* line par haul whathar yielding a catch or not Entar croaaaa undar INDICATORS and HAUL Thank you. DEPARTURE Port Data Tlma HAUL POSITION Attmeofhaul Otherwise at midday Port Data Tim* LOCH Depart utra: Arrival: VESSEL SKIPPER ESTIMATED CATCH INDICATORS COMMENTS LOG WIND CURRENT YELLOWFIN SKIPJACK BIGEYE ALBACORE OTHER SPECIES Route or search - Discards Type of shoal or wreckage Miscelaneous problems General weather condtlons Tonnage Tonnage Tonnage Tonnage Tonnage A P P E N D IX 3: S T A T E M E NT OF C A T CH FOR S U R F A CE L O N G L I N E RS Name of vessel: Skipper's name: Date of setting: / / Start of trip: / / / at: Trip number: Setting number: Wind direction: Force: (Beaufort) Sea conditions: Swell: Surface temperature: ° C Current: speed: Direction: Moon: New moon + days Moon rises: Moon sets: 0 to 24 hours Start time: Finishing time: Setting details Section Position Heading Speed Remarks Depart: radio buoy number 1 Radio buoy number 2 Radio buoy number 3 Radio buoy number 4 Radio buoy number 5 Radio buoy number 6 Radio buoy number 7 * VDK ** with head, gilled State the type of weight used (VÀT, VDK, WHOLE) if different from that specified. 45 Number of hooks: Length: Buoy lines: Branch lines: Length of line: Recorded depth of the line (sounder): Bait: Shrimp: % Details of catch Time (0 à 24 H) Latitude Longitude Start of turn End of turn Species Number Estimated unit weight Total weight Number of fish eaten Swordfish* Yellowfin** Bigeye** Marlin** Sailfish* Seabream Shark Other (give details) Total weight Total weight of catch landed (weighed) 4<o FINANCIAL STATEMENT 1. 2. 3. TITLE OF OPERATION: New financial Protocol EC/Seychelles BUDGET HEADING INVOLVED: B7-800 LEGAL BASISrTreaty art. 43, in conjunction with art. 228(2) and (3) first subpar. EC/Seychelles Agreement (OJ No L 119, 7. 5. 87) 4. DESCRIPTION OF OPERATION 4. 1 General objective: Protocol and Annex for a 3-year period 4. 2 Period covered and arrangements for renewal or extension: 18 January 1996 to 17 January 1999 Arrangements for renewal by negotiations before the Protocol expires. 5. Classification of expenditure or revenue 5. 1 Compulsory 5. 2 Differentiated Type of expenditure or revenue - Other: Financial compensation to a third country in exchange for fishing opportunities granted by it and laid down in the Protocol. FINANCIAL IMPACT 7. 1 Method of calculating total cost of operation (definition of unit costs') see complement to the Protocol Itemised breakdown of cost 7. 2 Breakdown 1996 1997 1998 protocol art. 2 protocol art. 3 protocol art. 4 TOTAL 2. 300. 000 900. 000 300. 000 3. 500. 000 2. 300. 000 900. 000 2. 300. 000 900. 000 3. 200. 000 3. 200. 000 current ECUs TOTAL 6. 900. 000 2. 700. 000 300. 000 9. 900. 000 /R- 7. 3 Schedule for proposed new operation 1996 1997 1998 3. 500. 000 3. 200. 000 3. 200. 000 Commitment appropriations Payment appropriations 1996 1997 1998 3. 500. 000 3. 200. 000 3. 200. 000 current ECUs TOTAL 9. 900. 000 3. 500. 000 3. 200. 000 3. 200. 000 TOTAL 3. 500. 000 3. 200. 000 3. 200. 000 9. 900. 000 8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN: Since the financial contributions are made by the Community in direct exchange for the fishing possibilities offered, the third country uses them for whatever end it chooses. The exception to this rule is the case of programmes, such as the scientific programmes, where under the dispositions of the Agreement, Mauritania will furnish reports to the Community. In addition, the Member States whose vessels operate under this Agreement must'certify to the Commission the exactitude of the data indicated in the tonnage certificates of the vessels so that the licence fees may be calculated on a guaranteed basis. To for Community vessels. includes catch declarations the Agreement that end, 9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS: In terms of the benefits of this agreement, it is clear that the. value of the catches of the main commercial species far exceeds the cost of 9. 9 M ECU. In addition to the direct commercial value of the catches of the vessels concerned, there are the following evident benefits from this Agreement: guaranteed employment aboard the fishing vessels; multiplier employment effect in the ports, auctions rooms, processing factories, shipyards, service industries, etc. ; these employment opportunities are in regions where no other opportunities are available; contribution to the supply of fish to the Community. Obviously, in addition to those benefits, one must take account of the importance of our relations with Seychelles in the fisheries field and our overall political relations. 10. ADMINISTRATIVE EXPENDITURE (part A of the budget): No incidence on administrative expenditure. ft ISSN 0254-1475 COM(96) 131 final DOCUMENTS EN 03 11 Catalogue number : CB-CO-96-140-EN-C ISBN 92-78-01930-5 Office for Official Publications of the European Communities L-2985 Luxembourg A*

Proposal for a COUNCIL DECISION on the conclusion of the Agreement in the form of an Exchange of Letters concerning the provisional application of the Protocol defining for the period 18 January 1996 to 17 January 1999 the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off the coast of Seychelles

http://publications.europa.eu/resource/cellar/dc18143c-7682-4fa1-b712-263661e274cd

eng

+*+ * * I COMMISSION Oh I Hh fcUKUHhAN COMMUNi I ItS i Brussels, 01. 04. 1996 COM(96) 131 final 96/0089 (CNS) Proposal for a COUNCIL DECISION on the conclusion of the Agreement in the form of an Exchange of Letters concerning the provisional application of the Protocol defining for the period 18 January 1996 to 17 January 1999 die fisliing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off the coast of Seychelles Proposai tor a COUNCIL REGULATION <EC) on the conclusion of the Protocol defining, for the period from 18 January 1996 to 17 January 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off Seychelles (presented by the Commission) EXPLANATORY MEMORANDUM The Protocol annexed to the fisheries agreement between the European Community and the Seychelles expired on 17 January 1996. A new Protocol was initialled by the two parties on 18 January 1996 establishing the technical and financial conditions under which Community fishing vessels can fish in Seychelles waters in the period 18 January 1996 to 17 January 1999. The Commission is accordingly proposing that the Council should adopt: by means of a Decision, the draft Agreement in the form of an exchange of letters concerning the provisional application of the new Protocol pending its final entry into force, by means of a Regulation, the Protocol establishing the fishing opportunities and the associated technical and financial conditions agreed between the Community and the Seychelles for the period 18 January 1996 to 17 January 1999. 2 Proposai for a COyNCIL DECISION of on the conclusion of the Agreement in the form of an Exchange of Letters concerning the provisional application of the Protocol defining for the period 18 January 1996 to 17 January 1999 the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off the coast of Seychelles THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Economic Community, Having regard to the Agreement between the European Economic Community and the Republic of Seychelles on fishing off Seychelles ('), signed in Brussels on 28 October 1987, Having regard to the proposal from the Commission, Whereas the Community and the Republic of Seychelles have held negotiations with a view to determining amendments to be made to the abovementioned Agreement at the end of the period of application of the Protocol in force which is annexed to the said Agreement; Whereas, as a result of these negotiations, a new Protocol was initialled on 18 January 1996, by virtue of which Community fishermen are to enjoy fishing opportunities in the waters falling within the sovereignty or jurisdiction of the Republic of Seychelles for the period 18 January 1996 to 17 January 1999; Whereas, in order to avoid interruption of fishing activities by Community vessels, both parties have initialled an Agreement in the form of an Exchange of Letters providing for the provisional application of the said Protocol from the day following the date of expiry of the Protocol previously in force; whereas the Agreement in the form of an Exchange of Letters should be approved subject to a definitive decision pursuant to Article 43 of the Treaty, HAS DECIDED AS FOLLOWS: Article 1 The Agreement in the form of an Exchange of Letters concerning the provisional application of the Protocol defining, for the period 18 January 1996 to 17 January 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off Seychelles is hereby approved on behalf of the Community. The text of the Agreement in the form of an Exchange of Letters is attached to this Decision. Article 2 The President of the Council is hereby authorized to designate the persons empowered to sign the Agreement in the form of an Exchange of Letters in order to bind the Community. Done at Brussels, For the Council The President C) OJ No L 119, 7. 5. 1987, p. 26. AGREEMENT in the form of an exchange of letters concerning the provisional application of the protocol defining, for the period 18 January 1996 to 17 January 1999, die fishing opportunities and the financial contribution provided for by the agreement between the European Community and the Republic of Seychelles on fishing off Seychelles A. Letter from the Republic of Seychelles Sir, With reference to the draft Protocol, initialled on 18 January 1996, establishing the fishing opportunities and the financial contribution for the period 18 January 1996 to 17 January 1999, I have the honour to inform you that the Republic of Seychelles is ready to apply this Protocol on a provisional basis, with effect from 18 January 1996, pending its entry into force in accordance with Article 6 of the Protocol, provided that the European Community is prepared to do the same. This is on the understanding that a first instalment equal to one-third of the financial compensation specified in Article 2 of the Protocol is to be paid by 31 May 1996. I should be obliged if you would confirm the European Community's agreement to such provisional application. Please accept, Sir, the assurance of my highest consideration. For the Republic of Seychelles B. Letter from the Community Sir, I am in receipt of your letter of today's date, which reads as follows: to on the the draft is ready initialled to apply Protocol, reference fishing opportunities and 18 the financial contribution 1996, "With establishing the period 18 January 1996 to 17 January 1999, I have the honour to inform you that the Republic of Seychelles from 18 January 1996, pending its entry into force in accordance with Article 6 of the Protocol, provided that the European Community is prepared to do the same. This is on the understanding that a first instalment equal to one-third of the financial compensation specified in Article 2 of the Protocol is to be paid by 31 May 1996. I should be obliged if you would confirm the European Community's agreement to such provisional application. " this Protocol on a provisional basis, with effect January for I have the honour to confirm the European Community's agreement to such provisional application of the Protocol. Please accept, Sir, the assurance of my highest consideration. On behalf of the Council of the European Union << Proposal for a COUNCIL REGULATION (EEC) No of on the conclusion of the Protocol defining, for the period from 18 January 1996 to 17 January 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off Seychelles THE COUNCIL OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, in conjunction with Article 228(2) and (3) first subparagraph thereof, Having regard to the proposal from the Commission, Having regard to the Opinion of the European Parliament ('), Whereas, in accordance with the Agreement between the European Economic Community and the Republic of Seychelles on fishing off Seychelles, signed in Brussels on 28 October 1987, the Contracting Parties held negotiations with a view to determining amendments to be made to that Agreement at the end of the period of application of the Protocol attached to the said Agreement; Whereas, as a result of these negotiations, a new Protocol defining for the period from 18 January 1996 to 17 January 1999 the fishing opportunities and the financial contribution provided for by the abovementioned Agreement was initialled on 18 January 1996; Whereas it is in the Community's interest to approve that Protocol. "Whereas the allocation of fishing possibilities among the Member States should be determined on the basis of the traditional allocation of fishing possibilities under the fisheries agreement" HAS ADOPTED THIS REGULATION: Article 1 The Protocol defining, for the period from 18 January 1996 to 17 January 1999, the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off Seychelles is hereby approved on behalf of the Community. The text of the Protocol is attached to this Regulation. Article 2 The fishing possibilities provided for in the Protocol are allocated among the Member States as follows: - freezer tuna seiners: France: 20 vessels; Spain: 22 vessels; C) Opinion delivered on (not yet published in the Official Journal). 5 - surface longliriers: France: 5 vessels. 10 vessels Spain: If licence applications from these Member States do not exhaust the fishing possibilities provided for in the Protocol the Commission may entertain licence applications from any other Member State. The President of the Council is hereby authorized to designate the persons empowered to sign the Protocol in order to bind the Community. Article 3 Article 4 This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council The President C PROTOCOL defining for the period 18 January 1996 to 17 January 1999 the fishing opportunities and the financial contribution provided for by the Agreement between the European Community and the Republic of Seychelles on fishing off Seychelles. ARTICLE 1 Pursuant to Article 2 of the Agreement, and notwithstanding Article 12 of the Agreement relating to further periods of the Agreement, licences to fish simultaneously in Seychelles waters shall be granted to 42 ocean-going tuna seiners and 15 surface longliners not exceeding 37 m lenght overall for a period of three years beginning on 18 January 1996. ARTICLE 2 The financial compensation referred to in Article 6 of the Agreement shall be fixed at ECU 6 900 000 for the period provided for in Article 1 of this Protocol, payable in three equal annual instalments. The financial compensation corresponds to a catch of 46 000 tonnes of tuna per year in Seychelles' waters. If the catch by Community vessels in Seychelles' waters exceeds 46 000 tonnes, the Community shall increase the financial compensation proportionately. ARTICLE 3 The Community shall also pay, during the period referred to in Article 1, a contribution of ECU 2 700 000 payable in three equal annual instalments, towards the financing of scientific programmes in the Seychelles to gain greater knowledge offish stocks concerning the region of the Indian Ocean surrounding the Seychelles islands, particularly in respect of highly migratory species, and the purchase or maintenance or both, as Seychelles may think fit, of equipment to improve the administrative structure relating to fisheries in Seychelles. The Seychelles authorities shall forward a brief report on the way that amount is used to the Commission services. ? ' ARTICLE 4 The two parties hereby agree that an essential condition for the success of their co-operation is that the skills and know-how of persons engaged in sea fishing be improved. To this end, the Community will assist Seychellois nationals in finding places in establishments in its Member States or States with which it has concluded co-operation agreements and will make available an amount of ECU 300 000 for study or practical training awards with a maximum duration of five years in the various scientific, technical and economic subjects relating to fisheries. Of this amount, up to ECU 100 000 may be used, at the request of the Seychelles' authorities, to cover the cost of attending international meetings relating to fisheries. ARTICLE 5 The Protocol and Annex I, dated 18 and 17 January 1990 respectively, to the Agreement which came into force on 28 October 1987 between the European Community and the Republic of Seychelles on fishing off Seychelles are hereby repealed and replaced by this Protocol and Annex I. ARTICLE 6 This Protocol and Annex I shall enter into force on the date of their signature. This Protocol and Annex I shall be applicable from 18 January 1996. Î ANNEX I CONDITIONS FOR THE PURSUIT OF FISHING ACTIVITIES BY COMMUNITY VESSELS IN SEYCHELLES' WATERS 1 Licence application and issuing formalities The procedure for applications for, and issue of, licences enabling Community vessels to fish in Seychelles' waters shall be as follows: (a) the Commission of the European Communities shall present to the Seychelles Fishing Authority, via the representative of the Commission of the European Communities in the Seychelles, an application, made by the shipowner, for each vessel that wishes to fish under this Agreement, at least 20 days before the date of commencement of the period of validity requested. The application shall be made on the form provided for that purpose by the Seychelles, a specimen of which is annexed as appendix 1 ; (b) every licence shall be issued for one designated vessel. At the request of the Commission of the European Communities, the licence for a vessel may, and, in cases of force majeure, will be replaced by a licence for another Community vessel; (c) the licences shall be delivered by the authorities of the Seychelles to the shipowners, or their representatives or agents. The representative of the Commission of the European Communities shall be notified of the licences granted by the authorities of Seychelles; (d) the licence document must be held on board at all times; however, on reception of notification of payment of the advance sent to the Seychellese authorities by the European Commission, the vessel shall be entered on a list of vessels authorized to fish, which shall be sent to the Seychellese authorities responsible for fisheries inspection. A copy of the said licence may be obtained by fax pending arrival of the licence itself; that copy shall be kept on board; (e) the authorities of the Seychelles shall communicate before the date of entry into force of the Agreement the arrangements for payment of the licence fees, and in particular the details of the bank accounts and the currencies to be used. 2. Validity of licences and payment (a) Licences shall be valid for a period of one year. They are renewable. (b) The fee shall be set at ECU 20 per tonne caught within Seychelles' waters. Licences shall be issued following advance payment to Seychelles of a lump sum, per year and for each vessel, of ECU 7. 500 for tuna seiners and ECU 500 for surface longliners, equivalent to the fees for respectively 375 tonnes and 25 the Seychelles' waters per year. tonnes caught within (c) Surface longliners shall, before the starting of their fishing campaign in Seychelles' waters and at the end of it, call into Port Victoria to check the catches held on board. However, at the request of the shipowner, the Seychelles authorities might exempt the vessel of that requirement. Fishing licences for surface longliners shall authorise the fishing of not only tuna but also swordfish, marlin and sailfish. (d) The Seychelles Fishing Authority (SFA) will draw up a statement of fees due in respect of the previous calendar year on the basis of catch declarations by Community vessels and other information in the possession of the SFA. The statement will be sent to the Commission before March 31 of the current year, which transmitted it before April 15 simultaneously to shipowners and national authorities of the concerned Member States. Where the shipowners do not agree with the statement submitted by the SFA, they may consult the scientific institutes competent for verifying catch statistics such as Institut Français de Recherche Scientifique pour le Développement en Coopération (ORSTOM) or the Spanish Oceanographical Institute (IEO), and thereafter discuss together with the Seychelles authorities to establish the final statement before May 15 of the current year. In the absence of observations by the shipowners at that date, the statement submitted by the SFA is considered as the final one. The Member States will notify the Commission of the final statement relating to their own fleet. Shipowners shall make any additional payment above the advance to the Seychelles fisheries authorities before May 31th of the same year. Where the final statement is less than the abovementioned advance, the balance shall not be recoverable by the shipowner. 3. Declaration of catches a) The Community vessels licensed to fish in Seychelles' waters shall complete a fishing form as set out in Appendix 2 and 3, for each fishing trip it undertakes in Seychelles'waters. In the absence of catches, the fishing forms shall still be filled. b) For the periods for which a Community vessel referred to in point a) was not present in Seychelles' waters, it shall provide the abovementioned fishing form with the notation "Outside Seychelles' EEZ" c) As far as the release of the fishing forms referred to in points a) and b) is concerned, the Community vessels shall: - - in the case they call into Port Victoria, submit the completed forms to the Seychelles authorities within 5 days of arrival, or in any event before it leaves port, whichever occurs first; in any other case, send the completed forms to the Seychelles authorities within 14 days of arrival in any port other than Victoria. Copies of these fishing forms must also be sent to the scientific institutes referred to in point 2 (d). d) In the event of failure to comply with these provisions, the sanctions referred to in point 10 will be applicable. "> »» —i 4. Observers Tuna seiner vessels shall, at the request of the Seychelles'authorities, take on board a qualified observer designated by the said authorities in order to check position of the vessel and catches made in Seychelles'waters. Observers shall have all facilities necessary for the performance of these duties, including access to places, documents and communication equipments. An observer must not be present for longer than the time required to fulfil his duties. Observers shall be granted officer status while on board. Should a tuna seiner with a Seychellois observer on board leave Seychelles'waters, every step will be taken to ensure that the observer returns to Seychelles as soon as possible, at the shipowners'expense. 5. Employment of seamen Each tuna seiner shall take on board at least two Seychelles seamen designated by the Seychelles' authorities, in agreement with the shipowners, during its fishing campaign. The employment contracts of the seamen shall be drawn up in Victoria between the shipowners' representatives and the seamen in agreement with the Seychelles Ministry responsible for Employment. This contract shall cover the social security arrangements applicable to the seamen including life, accident and sickness insurance. 6. Landing Tuna seiners landing in the port of Victoria will endeavour to make their by-catches available to the Seychellois authorities at the local market prices. Furthermore the Community tuna seiners shall participate in supplying tuna to the Seychelles canneries at international market prices. 7. Communications Within 3 hours of each entry and exit of the zone and every 3 days during their fishing activities the in Seychelles'waters, Community vessels shall communicate directly Seychelles'authorities, in priority by fax or, in the event of failure, by radio their position and the volume of catches held on board. The number of the fax and radio frequency shall be indicated on the licence. to A copy of the communications by fax or a record of the radio communications abovereferred shall be kept by the Seychelles'authorities and the shipowners until the approval by both parts of the final statement of the fees referred to in point 2 (d). In the event of failure to comply with these provisions, the sanctions referred to in point 10 will be applicable. 8 Fishing zone To avoid any adverse effect on small-scale fisheries in Seychelles' waters, fishing by Community vessels shall not be authorized in the zones defined in the Seychelles regulations nor within three miles around any fish-aggregating device placed by the Seychelles authorities, the geographical positions of which have been communicated to the shipowners' representative or agent. 9. Port equipment and use of supplies and services 11 Community vessels shall endeavour to procure in Seychelles all supplies and services required for their operations. The Seychelles' authorities will the shipowners, the conditions for using port equipment and, if necessary, supplies and services. lay down, in agreement with 10. Sanctions Failure to observe anyone of the above rules or management and conservation of living resources measures, or the Seychelles legislation, may be penalized by suspension, revocation or non-renewal of the vessel's fishing licence. Suspension or revocation of a fishing licence shall be regarded as force majeure for the purpose of point 1(b) of this Annex. The Commission of the European Communities will immediately be fully informed of any suspension or revocation and of all the relevant facts related thereto. 11 appendix 1 APPLICATION FOR A FOREIGN FISHING VESSEL LICENCE Name of applicant: Address of applicant: Name and address of charterer of vessel if different from above: Name and address of other legal representative in Seychelles:. Name and address of master of vessel: ' Name of vessel: Type of vessel: Length and registered net tonnage of vessel: Engine type, horse power and gross registered tonnage: Port and country of registry: Registration number: Fishing vessel external identification: Radio call sign/signal letters: Frequency Particulars of equipment: Number and nationality of crew: Proposed fishing area and species of fish: Description of fishing operations, joint ventures and other contractual arrangements: I certify that the above particulars are correct. Date: Signature: 13 DGXJV APPENDIX 2: STATEMENT OF CATCH FOR TUNA SEINERS On* line par haul whathar yielding a catch or not Entar croaaaa undar INDICATORS and HAUL Thank you. DEPARTURE Port Data Tlma HAUL POSITION Attmeofhaul Otherwise at midday Port Data Tim* LOCH Depart utra: Arrival: VESSEL SKIPPER ESTIMATED CATCH INDICATORS COMMENTS LOG WIND CURRENT YELLOWFIN SKIPJACK BIGEYE ALBACORE OTHER SPECIES Route or search - Discards Type of shoal or wreckage Miscelaneous problems General weather condtlons Tonnage Tonnage Tonnage Tonnage Tonnage A P P E N D IX 3: S T A T E M E NT OF C A T CH FOR S U R F A CE L O N G L I N E RS Name of vessel: Skipper's name: Date of setting: / / Start of trip: / / / at: Trip number: Setting number: Wind direction: Force: (Beaufort) Sea conditions: Swell: Surface temperature: ° C Current: speed: Direction: Moon: New moon + days Moon rises: Moon sets: 0 to 24 hours Start time: Finishing time: Setting details Section Position Heading Speed Remarks Depart: radio buoy number 1 Radio buoy number 2 Radio buoy number 3 Radio buoy number 4 Radio buoy number 5 Radio buoy number 6 Radio buoy number 7 * VDK ** with head, gilled State the type of weight used (VÀT, VDK, WHOLE) if different from that specified. 45 Number of hooks: Length: Buoy lines: Branch lines: Length of line: Recorded depth of the line (sounder): Bait: Shrimp: % Details of catch Time (0 à 24 H) Latitude Longitude Start of turn End of turn Species Number Estimated unit weight Total weight Number of fish eaten Swordfish* Yellowfin** Bigeye** Marlin** Sailfish* Seabream Shark Other (give details) Total weight Total weight of catch landed (weighed) 4<o FINANCIAL STATEMENT 1. 2. 3. TITLE OF OPERATION: New financial Protocol EC/Seychelles BUDGET HEADING INVOLVED: B7-800 LEGAL BASISrTreaty art. 43, in conjunction with art. 228(2) and (3) first subpar. EC/Seychelles Agreement (OJ No L 119, 7. 5. 87) 4. DESCRIPTION OF OPERATION 4. 1 General objective: Protocol and Annex for a 3-year period 4. 2 Period covered and arrangements for renewal or extension: 18 January 1996 to 17 January 1999 Arrangements for renewal by negotiations before the Protocol expires. 5. Classification of expenditure or revenue 5. 1 Compulsory 5. 2 Differentiated Type of expenditure or revenue - Other: Financial compensation to a third country in exchange for fishing opportunities granted by it and laid down in the Protocol. FINANCIAL IMPACT 7. 1 Method of calculating total cost of operation (definition of unit costs') see complement to the Protocol Itemised breakdown of cost 7. 2 Breakdown 1996 1997 1998 protocol art. 2 protocol art. 3 protocol art. 4 TOTAL 2. 300. 000 900. 000 300. 000 3. 500. 000 2. 300. 000 900. 000 2. 300. 000 900. 000 3. 200. 000 3. 200. 000 current ECUs TOTAL 6. 900. 000 2. 700. 000 300. 000 9. 900. 000 /R- 7. 3 Schedule for proposed new operation 1996 1997 1998 3. 500. 000 3. 200. 000 3. 200. 000 Commitment appropriations Payment appropriations 1996 1997 1998 3. 500. 000 3. 200. 000 3. 200. 000 current ECUs TOTAL 9. 900. 000 3. 500. 000 3. 200. 000 3. 200. 000 TOTAL 3. 500. 000 3. 200. 000 3. 200. 000 9. 900. 000 8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN: Since the financial contributions are made by the Community in direct exchange for the fishing possibilities offered, the third country uses them for whatever end it chooses. The exception to this rule is the case of programmes, such as the scientific programmes, where under the dispositions of the Agreement, Mauritania will furnish reports to the Community. In addition, the Member States whose vessels operate under this Agreement must'certify to the Commission the exactitude of the data indicated in the tonnage certificates of the vessels so that the licence fees may be calculated on a guaranteed basis. To for Community vessels. includes catch declarations the Agreement that end, 9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS: In terms of the benefits of this agreement, it is clear that the. value of the catches of the main commercial species far exceeds the cost of 9. 9 M ECU. In addition to the direct commercial value of the catches of the vessels concerned, there are the following evident benefits from this Agreement: guaranteed employment aboard the fishing vessels; multiplier employment effect in the ports, auctions rooms, processing factories, shipyards, service industries, etc. ; these employment opportunities are in regions where no other opportunities are available; contribution to the supply of fish to the Community. Obviously, in addition to those benefits, one must take account of the importance of our relations with Seychelles in the fisheries field and our overall political relations. 10. ADMINISTRATIVE EXPENDITURE (part A of the budget): No incidence on administrative expenditure. ft ISSN 0254-1475 COM(96) 131 final DOCUMENTS EN 03 11 Catalogue number : CB-CO-96-140-EN-C ISBN 92-78-01930-5 Office for Official Publications of the European Communities L-2985 Luxembourg A*

Decision of the EEA Joint Committee No 33/96 of 31 May 1996 amending Annex II (Technical regulations, standards, testing and certification) and Annex IV (Energy) to the EEA Agreement

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L_1996237EN. 01002501. xml 19. 9. 1996    EN Official Journal of the European Communities L 237/25 DECISION OF THE EEA JOINT COMMITTEE No 33/96 of 31 May 1996 amending Annex II (Technical regulations, standards, testing and certification) and Annex IV (Energy) to the EEA Agreement THE EEA JOINT COMMITTEE, Having regard to the Agreement on the European Economic Area, as adjusted by the Protocol Adjusting the Agreement on the European Economic Area, hereinafter referred to as the Agreement, and in particular Article 98 thereof, Whereas Annex II to the Agreement was amended by Decision of the EEA Joint Committee No 63/95 of 29 September 1995 (1); Whereas Annex IV to the Agreement was amended by Decision of the EEA Joint Committee No 63/95 of 29 September 1995 (2); Whereas Commission Directive 95/12/EC of 23 May 1995 implementing Council Directive 92/75/EEC with regard to energy labelling of household washing machines (3) is to be incorporated into the Agreement; Whereas Commission Directive 95/13/EC of 23 May 1995 implementing Council Directive 92/75/EEC with regard to energy labelling of household electric tumble driers (4) is to be incorporated into the Agreement, HAS DECIDED AS FOLLOWS: Article 1 The following indents shall be added in point 4 (Council Directive 92/75/EEC) in Chapter IV of Annex II to the Agreement: ‘— 395 L 0012: Commission Directive 95/12/EC of 23 May 1995 (OJ No L 136, 21. 6. 1995, p. 1. as corrected by OJ No L 47, 24. 2. 1996, p. 35). The provisions of the Directive shall, for the purposes of the present Agreement, be read with the following adaptations: (a) Annex I to Commission Directive 95/12/EC shall be supplemented with the texts as set out below: (b) Annex V to Commission Directive 95/12/EC shall be supplemented with the texts as set out below Note     EN IS NO Label Fiche Mail order       Annex I Annex II Annex III           Energy Orka Energi     Washing machine Þvottavél Vaskemaskin I     Manufacturer Framleiðandi Merke II     Model Gerð Modell     More efficient Góð nýtni Lavt forbruk     Less efficient Slæm nýtni Høyt forbruk   3 1 Energy efficiency class. on a scale of A (more efficient to G (less efficient) Orkunýtniflokkur a kvarðanum A (hámarksnýtni) til G (lakasta nýntni) Relativ energibruk. på skalaen A (lavt forbruk til G (høyt forbruk) V     Energy consumption Orkunotkun Energibruk V     kWh per cycle kWh/lotu kWh/vask V     Based on standard test results for “60 oC cotton” cycle Byggt a stöðluðum prófunarniðurstöðum þvottalotu fyrir baðmull við hitann 60 oC På grunnlag av standardtest på 60 oC normalprogram for bomull   5 2 Energy consumption. kWh per cycle, based on standard test results for “60 o C cotton” cycle Orkunotkun. kWh/lotu, byggð a stöðluðum prófunarniðurstöðum fyrir baðmull við hitann 60 oC Energibruk. kWh/vask, på grunnlag av standardtest på 60 oC normalprogram for bomull V 5 2 Actual consumption will depend on how the appliance s used Raunnotkun fer eftir því hvernig tækið er notað Den faktiske energibruk er avhengig av hvordan vaskemaskinen benyttes VI     Washing performance A (higher) G (lower) Þvottahaefni. á kvarðanum A (meiri) til G (minni) Vaskeevne A (høy) G (lav)   6 3 Washing performance class. on a scale of A (higher) to G (lower) Þottahæfnisflokkur. á kvarðanum A (meiri) til G (minni) Vaskeevne. på skalaen fra A (høy) til G (lav) VII     Spin drying A (higher) G (lower) Þeytivinding A (meiri) G (minni) Sentrifugeringsevne A (høy) G (lav)   7 4 Drying rating. on a scale of A (higher) to G (lower) Þeytivinduafköst. à kvaranum A (meiri) til G (minni) Sentrifugeringsevne. på skalaen fra A (høy) til G (lav)   7 4 NB: If you use a tumble drier. Choosing a washing machine with A-rated spin, instead oi one with a G-rated spin will halve your tumble drying costs. Tumble drying clothes usually uses more energy than washing them. Ath. Notir þú þeytivindu skaitu hafa eftirfarandi í huga: Ef bú velur þvottavél með Þeytivindu á A-kvarðanum í stað Þeytivindu á G-kvarðanum lækkar útlagður kostnaður þinn vegna Þeytivindingar um helming. Það fer venjulega meiri orka í að Þeytivinda föt en að þvo þau Hvis De anvender tørketrommel, bør De være oppmerksom på følgende: — en vaskemaskin som er A-merket mht. sentrifugering vil halvere omkostningene til tørking sammenlignet med en vaskemaskin som er G-merket mht. sentrifugering — elektrisk tørketromling av tøy bruker normal mer energi enn selve vaskingen   8   Water remaining after spin. % (as a percentage of dry weight of wash) Það vatn sem eftir er að lokinni þeytivindingu. % (sem hlutfall af þurrvigt þvottar) Restvanninnhold etter sentrifugering. % (i forhold til vekten av tørt tøy) VIII 9 5 Spin speed (rpm) Snúningshraði vindu (snún. á mín. ) Sentrifugeringshastighet (omdr/min) IX 10 6 Capacity (cotton) kg Afköst (baðmull) kg Kapasitet (bomull) kg X 11 7 Water consumption Vatnsnotkun Vannforbruk   14 8 Typical annual consumption for a four-person household. Dæmigerð árleg notkun hjá fjögurra manna fjölskyldu Typisk årlig forbruk for en husstand på fire personer XI 15 9 Noise (dB(A) re 1 pW) Hávaði (dB(A) re 1 pW) Lydnivå dB(A) (Støy) XI     Washing Þvottur Vask XI     Spinning Þeytivinding Sentrifugering     Further information is contained in product brochures Nánari upplýsingar er að finna í bæklingum sem fylgja vörunum Produktbrosjyrene inneholder ytterligere opplysninger     Norm EN 60456 Staðall EN 60456 Europeisk standard EN 60456     Electric washing machine label Directive 95/12/EC Tilskipun 95/12/EB um merkingar þvottavéla Direktiv 95/12/EF om energimerking av vaskemaskiner — 395 L 0013: Commission Directive 95/13/EC of 23 May 1995 (OJ No L 136, 21. 6. 1995, p. 28). The provisions of the Directive shall, for the purposes of the present Agreement, be read with the following adaptations: (a) Annex I to Commission Directive 95/13/EC shall be supplemented with the texts as set out below: (b) Annex V to Commission Directive 95/13/EC shall be supplemented with the texts as set out below: Note     EN IS NO Label Fiche Mail order       Annex I Annex II Annex III           Energy Orka Energi     Drier Þurrkari Tørketrommel I     Manufacturer Framleiðandi Merke II     Model Gerð Modell     More efficient Góð nytni Lavt forbruk     Less efficient Slæm nytni Høyt forbruk   3 1 Energy efficiency class. on a scale of A (more efficient) to G (less efficient) Orkunýtniflokkur. á kvarðanum A (hámarksnytni) til G (lakasta nyntni) Relativ energibruk. på skalaen A (lavt forbruk) til G (høyt forbruk) V 5 2 Energy consumption Orkunotkun Energibruk V 5 2 kWh/cycle kWh/lotu kWh/tørkeprogram V 5 2 Based on standard test results for “Dry Cotton” cycle Byggt á stöðluðum prófunarniðurstöðum þurrklotu fyrir baðmull På grunnlag av standardtest av programmet for skaptørr bomull V 5 2 Actual consumption will depend on how the appliance is used Raunnotkun fer eftir því hverning tækið er notað Den faktiske energibruk er avhengig av hvordan tørketromlen brukes VI 6 3 Capacity (cotton) kg Afköst (baðmull) kg Kapasitet (bomull) kg X 11 7 Water Consumption Vatnsnotkun Vannforbruk   8   Drying time Þurrkunartími Tørketid   11 6 Estimated annual consumption for a four-person household which normally dries using a drier Áætluð ársnotkun fyrir fjögurra manna heimili bar sem þurrkari er notaður að jafnaði Anslått årlig forbruk for en husstand på fire personer som normalt benytter tørketrommel VII 12   Air vented Loftræsting Avtrekkstørke-trommel VII 12   Condensing Gufuþétting Kondenstørke-trommel VIII 13 6 Noise (dB(A) re 1 pW) Hávaði (dB(A) re 1 pW) Lydnivå dB(A) (Støy)     Further information is contained in product brochures Nánari upplýsingar er að finna í bæklingum sem fylgja vörunum Produktbrosjyrene inneholder ytterligere opplysninger     Norm EN 61121 Staðall EN 61121 Europeisk standard EN 61121     Electric drier label Directive 95/13/EC Tilskipun 95/13/EB um merkingar þurrkara Direktiv 95/13/EF om energimerking av tørketromler’. Article 2 The following indents shall be added in point 11 (Council Directive 92/75/EEC) of Annex IV to the Agreement: ‘— 395 L 0012: Commission Directive 95/12/EC of 23 May 1995 (OJ No L 136, 21. 6. 1995, p. 1, as corrected by OJ No L 47, 24. 2. 1996, p. 35). The provisions of the Directive shall, for the purposes of the present Agreement, be read with the following adaptations: (a) Annex I to Commission Directive 95/12/EC shall be supplemented with the texts as set out below: (b) Annex V to Commission Directive 95/12/EC shall be supplemented with the texts as set out below: Note     EN IS NO Label Fiche Mail order       Annex I Annex II Annex III           Energy Orka Energi     Washing machine Þvottavél Vaskemaskin I     Manufacturer Framleiðandi Merke II     Model Gerð Modell     More efficient Góð nýtni Lavt forbruk     Less efficient Slæm nýtni Høyt forbruk   3 1 Energy efficiency class. on a scale of A (more efficient) to G (less efficient) Orkunýtniflokkur. á kvarðanum A (hámarksnýtni) til G (lakasta nýntni) Relativ energibruk. på skalaen A (lavt forbruk til G (høyt forbruk) V     Energy consumption Orkunotkun Energibruk V     kWh per cycle kWh/lotu kWh/vask V     Based on standard test results for “60 oC cotton” cycle Byggt á stöðluðum prófunarniðurstöðum þvottalotu fyrir baðmull við hitann 60 oC På grunnlag av standardtest på 60 o C normalprogram for bomull   5 2 Energy consumption. kWh per cycle, based on standard test results for “60 o C cotton” cycle Orkunotkun. kWh/lotu, byggð á stöðluðum prófunarniðurstöðum fyrir baðmull við hitann 60 oC Energibruk. kWh/vask, på grunnlag av standardtest på 60 oC normalprogram for bomull V 5 2 Actual consumption will depend on how the appliance is used Raunnotkun fer eftir því hvernig tækið er notad Den faktiske energibruk er avhengig av hvordan vaskemaskinen benyttes VI     Washing performance A (higher) G (lower) Þvottahæfni. á kvarðanum A (meiri) til G (minni) Vaskeevne A (høy) G (lav)   6 3 Washing performance class. on a scale of A (higher) to G (lower) Þvottahæfnisflokkur. á kvarðanum A (meiri) til G minni) Vaskeevne. på skalaen fra A (høy) til G (lav) VII     Spin drying A (higher) G (lower) Þeytivinding A (meiri) G (minni) Sentrifugeringsevne A (høy) G (lav)   7 4 Dring rating. on a scale of A (higher) to G (lower) Þeytivinduafköst. á kvarðanum A (meiri) til G (minni) Sentrifugeringsevne. på skalaen fra A (høy) til G (lav)   7 4 NB: If you use a tumble drier. — Choosing a washing machine with À-rated spin, instead of one with a G-rated spin will halve your tumble drying costs. — Tumble drying clothes usually uses more energy than washing them. Ath. Notir þú þeytivindu skaltu hafa eftirfarandi í huga: Ef bú velur þvottavél með Þeytivindu á A-kvarðanum í stað Þeytivindu á G-kvarðanum lækkar útlagður kostnaður þinn vegna Þeytivindingar um helming. Það fer venjulega meiri orka í að Þeytivinda föt en að þvo þau Hvis De anvender tørketrommel, bør De være oppmerksom på følgende: — en vaskemaskin som er À-merket mht. sentrifugering vil halvere omkostningene til tørking sammenlignet med en vaskemaskin som er G-merket mht. sentrifugering — elektrisk tørketromling av tøy braker normal mer energi enn selve vaskingen   8   Water remaining after spin. % (as a percentage of dry weight of wash) Það vatn sem eftir er að lokinni þeytivindingu. % (sem hlutfall af þurrvigt þvottar Restvanninnhold etter sentrifugering. % (i forhold til vekten av tart tøy) VIII 9 5 Spin speed (rpm) Snúningshraði vindu (snún. á mín. ) Sentrifugeringshastighet (omdr/min) IX 10 6 Capacity (cotton) kg Afköst (baðmull) kg Kapasitet (bomull) kg X 11 7 Water consumption Vatnsnotkun Vannforbruk   14 8 Typical annual consumption for a four-person household Dæmigerð árleg notkun hjá fjögurra manna fjölskyldu Typisk årlig forbruk for en husstand på fire personer XI 15 9 Noise (dB(A) re 1 pW) Hávaði (dB(A) re 1 pW) Lydnivå dB(A) (Støy) XI     Washing Þvottur Vask XI     Spinning Þeytivinding Sentrifugering     Further information is contained in product brochures Nánari upplýsingar er að finna í bæklingumsem fylgja vörunum Produktbrosjyrene inneholder ytterligere opplysninger     Norm EN 60456 Staðall EN 60456 Europeisk standard EN 60456     Electric washing machine label Directive 95/12/EC Tilskipun 95/12/EB um merkingar þvottavéla Direktiv 95/12/EF om energimerking av vaskemaskiner — 395 L 0013: Commission Directive 95/13/EC of 23 May 1995 (OJ No L 136, 21. 6. 1995, p. 28). The provisions of the Directive shall, for the purposes of the present Agreement, be read with the following adaptations: (a) Annex I to Commission Directive 95/13/EC shall be supplemented with the texts as set out below: (b) Annex V to Commission Directive 95/13/EC shall be supplemented with the texts as set out below: Note     EN IS NO Label Fiche Mail order       Annex I Annex II Annex III           Energy Orka Energi     Drier Þurrkari Tørketrommel I     Manufacturer Framleiðandi Merke II     Model Gerð Modell     More efficient Góð nýtni Lavt forbruk     Less efficient Slæm nýtni Høyt forbruk   3 1 Energy efficiency class. on a scale of A (more efficient) to G (less efficient) Orkunýtniflokkur. á kvarðanum A (hámarksnýtni) til G (lakasta nýntni) Relativ energibruk. på skalaen A (lavt forbruk) til G (høyt forbruk) V 5 2 Energy consumption Orkunotkun Energibruk V 5 2 kWh/cycle kWh/lotu kWh/tørkeprogram V 5 2 Based on standard test results for “Dry Cotton” cycle Byggt á stöðluðum prófunarniðurstöðum þurrklotu fyrir baðmull På grunnlag av standardtest av programmet for skaptørr bomull V 5 2 Actual consumption will depend on how the appliance is used Raunnotkun fer eftir þvi hverning tækið er notað Den faktiske energibruk er avhengig av hvordan tørketromlen brukes VI 6 3 Capacity (cotton) kg Afköst (baðmull) kg Kapasitet (bomull) kg X 11 7 Water Consumption Vatnsnotkun Vannforbruk   8   Drying time Þurrkunartími Tørketid   11 6 Estimated annual consumption for a four-person household which normally dries using a drier Áætluð ársnotkun fyrir fjögurra manna heimili þar sem þurrkari er notaður að jafnaði. Anslått årlig forbruk for en husstand på fire personer som normalt benytter tørketrommel VII 12   Air vented Loftræsting Avtrekkstørke-trommel VII 12   Condensing Gufuþétting Kondenstørke-trommel VIII 13 6 Noise (dB(A) re 1 PW) Hávaði (dB(A) re 1 pW) Lydnivå dB(A) (Støy)     Further information is contained in product brochures Nánari upplýsingar er að finna í bæklingum sem fylgja vörunum Produktbrosjyrene inneholder ytterligere opplysninger     Norm EN 61121 Staðall EN 61121 Europeisk standard EN 61121     Electric drier label Directive 95/13/EC Tilskipun 95/13/EB um merkingar þurrkara Direktiv 95/13/EF om energimerking av tørketromler’. Article 3 The texts of Commission Directive 95/12/EC and Commission Directive 95/13/EC in the Icelandic and Norwegian languages, which are annexed to the respective language versions of this Decision, are authentic. Article 4 This Decision shall enter into force on 1 June 1996, provided that all the notifications under Article 103 (1) of the Agreement have been made to the EEA Joint Committee. Article 5 This Decision shall be published in the EEA Section of, and in the EEA Supplement to, the Official Journal of the European Communities. Done at Brussels, 31 May 1996. For the EEA Joint Committee The President P. BENAVIDES (1)  OJ No L 301, 14. 12. 1995, p. 36. (2)  OJ No L 301, 14. 12. 1995, p. 38. (3)  OJ No L 136, 21. 6. 1995, p. 1. (4)  OJ No L 136, 21. 6. 1995, p. 28

Proposal for a COUNCIL DECISION on a joint Action adopted by the Council on the basis of Articlel K.3 of the Treaty on European Union, on a programme of incentives and exchanges for practitioners in the Justice area

http://publications.europa.eu/resource/cellar/0eee122a-5964-4282-b508-9257ba07c502

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 31. 05. 1996 COM(%)253 final 96/0146 (CNS) Proposal for a mi m m. DECISION on a Joint Action adopted by the Council on the basis of Article K. 3 of the Treaty on European Union, on a programme of incentives and exchanges for practitioners in the Justice area (presented by the Commission) EXPLANATORY MEMORANDUM INTRODUCTION 4 According to Article K. 1, the Member States see the strengthening of judicial cooperation as a field of common interest. The work that has been started within the structures set up by Title VI of the Treaty on European Union are the practical expression of this concern, in both the civil and criminal fields. The French Presidency, anxious to establish a connection between the practitioners and the institutions and bodies responsible for training judges, has initiated consultation alongside the work of the groups, with professionals regularly faced with questions of judicial cooperation. This initiative has emerged as a useful and fruitful means of enriching debate in the Council and has been continued. Seminars were thus held in Bordeaux in April 1995 on questions of judicial cooperation in criminal matters and in Rome in December 1995 on civil matters. These seminars showed that the instruments of judicial cooperation, such as the relevant Council of Europe conventions, are no longer entirely appropriate to the situation within the Union. The Council has set itself the task of improving these instruments. As practitioners have found, however, it is not only the wording of a legal text which may prove an obstacle to its application; there are other "cultural" difficulties, i. e. a patchy comprehension of the language and legal concepts, a poor understanding of the legal tradition of other Union Member States, and generally a lack of familiarity with the cultures, procedures and legal institutions of the Union States. This concern is not new: it was expressed by the Council as far back as November 1993, and can be read between the lines of the framework of priorities being considered for a programme that will be drawn up to cover several years. Parliament is also aware of it and has expressed the wish that part of the budget allocated for operational costs connected with Title VI activities should be devoted to a programme for law enforcement officers which contributes to the pooling of knowledge on their respective methods and definitions (e. g. comparison of definitions of offences) and techniques. The programme will also be geared to foster language knowledge. Also, in the last few years a number of selective initiatives, originating from such bodies as the Institut des Hautes Etudes sur la Justice and the Ecole Nationale de la Magistrature, or private associations such as NACRO (National Association for the Care and Resettlement of Offenders) have enabled judges, lawyers and other legal professionals to meet and compare practices, improve their mutual comprehension and thus facilitate contacts and cooperation in the management of the cases they deal with. Such experiences have shown a certain openness among these professionals, which should be encouraged. It is essential to respond to this demand. Improving judicial cooperation need not depend exclusively on the adoption of new instruments but requires an attempt to improve awareness of rules and procedures which differ despite the similarity of their goals. Giving judges, lawyers and other legal professionals the means to do this also helps to strengthen citizens* confidence in justice within the European Union. 4 SCOPE OF THE PROPOSAL The object of the draft joint action is to create a host structure, i. e. an overall framework for a programme for practitioners in the Justice area. The aim is neither to interfere in the design of the basic training of these professionals, which is the task of the Member States, nor to fill potential gaps in the knowledge and correct application of Community law, a problem which the Commission is considering in a different context since it set up a group of experts on training and information for the legal professions in the application of Community law in March 1995. Nor is the aim to propose direct, concrete measures of judicial cooperation, as the Commission's competence in this field extends only to civil matters. The aim is to support the initiatives of public institutions or private bodies which are using continuing training to make legal practitioners more aware of the law, procedures, institutions and language of other Member States. It is also to use economies of scale and the cumulative effects of the specific projects to produce synergies at the Union level so as to rationalize Community financing under Article K. 8, and to define the frameworks of action to enable the strategy developed to be better understood, so that the Commission, which is responsible for the implementation of the budget, can take over the management. It is in this sense that the proposed Joint Action will confer some real added value. CONTENTS Article 1 defines the terms of the programme and lists the categories of activity eligible for financing. The attached financial statement provides for a package estimated at ECU 9 million for the first five years, it being understood that ECU 800 000 will be allocated to this programme in the start-up period corresponding to the 1996 financial year. Paragraph 2 lists the types of practitioner at whom the programme is aimed. Article 2 concerns training projects, first and foremost linguistic. The emphasis is placed on legal terminology: basic language courses do not come under this programme. On the other hand, it is planned to hold intensive and specialized residential seminars for small groups of practitioners who already have a knowledge of another language. With a view to optimizing the impact of these projects, the possibility of organizing exchanges between people responsible for initial and continuing training is also envisaged. Article 3 proposes the organization of exchanges and internships with institutions and practitioners from another Member State, or "study trips" on particular topics to institutions and practitioners in different Member States. Article 4 relates to the organization of symposia, conferences and seminars. For example, it provides for the possibility of a series of similar conferences, in each case addressed to practitioners from two Member States, principally to keep interpreting costs down At a few large thematic conferences on topical subjects relating to judicial cooperation, the participation of specialists from other professions may prove desirable, and the idea of a multidisciplinary conference has therefore been taken up. The third indent relates to a specific, very concrete type of exercise, where the judges from different countries are given the same case to study. Article 5 envisages studies and research in connection with the other projects of the programme: either preparatory studies for conferences, internships, etc. or the analysis of their results. The principal aim of the programme is not to carry out studies, the emphasis being placed on the operational, practical aspects. The underlying idea is that the programme, rather than being a package designed to finance, isolated projects, forms a whole which should demonstrate complementarity between the projects, a progression from one to the next. Article 6 deals with the circulation of information, both on the programme projects and their results and on any type of development in judicial cooperation which could interest the practitioners. The goal is to constantly update the information and extend the effects of the projects and the programme beyond their direct beneficiaries. To this end, the programme provides for the distribution of a periodical and for the establishment of databases. Article 7 lays down the general criteria for assessing requests. Prime among these are: the connection with the political priorities set by the Council, the work of the groups and the Union's progress to date in the field of justice; the integration of the project in the overall programme; the concrete, practical nature of the proposed projects; the expected efficiency of the project; hence the need for preparation, the interest in frequently associating practitioners from different disciplines (including, for example, those with specialist experience such as liaison or contact judges) and bringing in training and research institutes. - Paragraph 3 is designed to enable practitioners from applicant or other countries to take part. Article 8 is self-explanatory. Article 9 sets the main lines of the limits of Community financing. With a programme of this kind that aims to foster knowledge, provision is not made for full financing. Paragraph 3 aims to set a ceiling for the part of the grant affecting certain categories of cost, thus highlighting the operational rather than administrative nature of the budget heading. It should also be pointed out that the salary costs of State officials are not eligible expenditure under this programme. The concrete application of these principles, which could vary depending on the type of project, will be determined by implementing rules adopted in accordance with the procedure in Article 10. Article 10 confers responsibility for implementing the budget on the Commission It also provides for the adoption of detailed rules on such matters as the submission of applications and the implementation of Article 9 in practice. In addition, the Commission has the tasks of drawing up a coherent and complete annual programme and conducting a yearly assessment of the implementation of the previous year's programme. The objective is to centre the efforts, to bring them into line with the Council's priorities, and to ensure that the programme keeps evolving. The Commission will consult specialists from the relevant circles. Article 11 defines (on the basis of Model lia of the 1987 decision) the tasks and working methods of the Committee, composed of representatives of the Member States, to which the Commission is to submit the implementing measures, the annual programme and the report on the previous year. This Committee is to be consulted on any draft decisions on financing projects which exceed the threshold given in Article 12(3). In this case it will operate in accordance with Model I of the 1987 decision. Article 12 determines the Commission's procedure for examining drafts, and the role of the Advisory Committee in this. Article 13 is self-explanatory. Article 14 provides for monitoring of the programme's implementation both by Parliament and by the Council, with the aim of preserving the greatest possible conformity with work that is either already in progress or envisaged for the future in the field of judicial cooperation, and the closest faithfulness to the policy pursued on training. An initial report will be drawn up at the end of the launching phase, which will correspond to the first budgetary year and during which the models suggested for a number of pilot projects can be tested on a larger scale. Article 15 stipulates that the current programme is to last for five years initially, although its development will depend on annual appropriations. COUNCIL DECISION of. on a Joint Action adopted by the Council on the basis of Article K. 3 of the Treaty on European Union, on a programme of incentives and exchanges for practitioners in the Justice area THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty on European Union, and in particular Articles K. 3(2)(b) and K. 8(2) thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament, Whereas the Member States consider the strengthening of judicial cooperation to be a matter of common interest; Whereas setting up a framework for projects of training, information, studies and exchanges for law enforcement officers will contribute to improving the mutual understanding of legal and judicial systems of the Member States, to highlighting their points of convergence and to lowering the barriers to judicial cooperation between Member States; Whereas these objectives can be more effectively realized at the Union level than at the level of each Member State, because of the expected economies of scale and the cumulative effects of the projects envisaged; Whereas this joint action is without prejudice to the Community's powers in the field of vocational training and does not therefore adversely affect the Community measures taken to implement its policy in that field, or the Leonardo da Vinci Programme in particular; Whereas this joint action does not affect the existing rules of procedure in the field of judicial cooperation, S HAS DECIDED AS FOLLOWS: Article 1 1. 2. A programme for law enforcement officers, to be known as 'Grotius', is hereby established for the period 1996-2000, in order to foster mutual knowledge of legal and judicial systems, and to facilitate judicial cooperation between Member States. For the purposes of this joint action, "practitioners in the Justice area" means judges (including liaison, contact and other judges), advocates, bailiffs, notaries/solicitors, researchers, investigators, ministry officials, court interpreters and other court officials. 3. The programme shall comprise the following: - training - exchange and work-experience programmes - organization of meetings - studies and research - distribution of information. Article 2 Projects with the following objectives may be considered under "training": fostering of foreign language knowledge, in particular a working knowledge of legal language; knowledge of the legal institutions and procedures of the other Member States, and how they function; exchange of experience between those responsible for the training of legal practitioners, and between institutions responsible for basic training and those responsible for continuing training; preparation of teaching modules for training projects, of exchanges and internships, of conferences, or of seminars organized as part of the implementation of this programme. Article 3 Projects with the following objectives may be considered under "exchange and work-experience placement programmes": organization of work experience of limited duration in the legal institutions or with legal practitioners in Member States other than that of origin; organization of visits to legal institutions or to legal practitioners in a number of other Member States on specific themes. Article 4 Projects with the following objectives may be considered under "organization of meetings": organization of bilateral or European conferences on legal topics of general interest; organization of multidisciplinary conferences on topical or new legal subjects relating to judicial cooperation; organization of seminars based around case studies on sentencing, in the course of which judges from different Member States deliver a verdict on the same court case. - Article 5 Projects with the following objectives may be considered under "studies and research": preparatory analysis of subjects chosen for projects to be implemented within the framework of this programme: analysis of reports on work experience or meetings organized within the framework of this programme; coordination of research on topics relating to judicial cooperation. Article 6 Projects with the following objectives may be considered under "distribution of information": hard-copy or on-line distribution of information on legislative amendments or draft reforms, in the original or in translation; dissemination of information on projects under Articles 2, 3 and 4, the results of meetings under Article 4 or the findings of research carried out under Article 5 and the application of this research: creation of databases and/or documentation networks including lists of articles, publications, studies and legislation in fields relating to judicial cooperation. - Article 7 1. 2. Projects financed by the Community must be of demonstrable European interest and involve more than one Member State. The selection process projects for which finance is requested shall have regard, inter alia, to: the extent to which the subjects covered conform with work that is already in progress or planned for the future under the Council's action programmes in fields relating to judicial cooperation; } the contribution to the elaboration or implementation of instruments under Title VÏ of the Treaty on European Union; the extent to which the different projects complement each other; the range of professions to which they are addressed; the involvement of institutions such as judicial training institutes and research institutes; the operational and practical nature of the projects, the degree of preparation of the participants; the possibility of using the results of the project to make further progress in judicial cooperation These projects may associate practitioners from the countries which have applied for membership or other non-member countries where this would contribute to their preparation for accession. Article 8 The financing decisions and the contracts arising from them shall provide for monitoring and financial control by the Commission and audits by the Court of Auditors. Article 9 1. 2. 3. 4. All types of expenditure which are directly chargeable to the implementation of the project and which have been committed within a contractually agreed period shall be eligible. The proportion of financial support from the Community budget shall not exceed 80% of the cost of the project. Translation and interpreting costs, computing costs, and expenditure on durables or consumables shall not be taken into consideration unless they are essential for the realization of the project, and shall only be financed up to a limit of 50% of the grant or 80% in cases where the nature of the project makes them indispensable. Expenditure relating to premises, collective facilities, and the salaries of officials of the State and public bodies shall be eligible only if it corresponds to postings and tasks which have no national purpose or function but are specifically connected with the implementation of the project. Article 10 1. The Commission shall be responsible for carrying out the measures provided for in this decision and shall adopt detailed rules for implementing this joint action, including the criteria for the eligibility of costs. % 2. 3. It shall draw up each year, with the assistance of experts from the relevant professional circles, the guidelines for the annual programme implementing this joint action in terms of the thematic priorities and the distribution of available appropriations between fields of activity. It shall undertake each year an assessment of the measures implementing the programme for the previous year. Article 11 1. 2. The Commission shall be assisted by a Committee consisting of one representative from each Member State of the Union and chaired by the Commission. The representative of the Commission shall submit to the Committee proposals for implementing rules, for guidelines for the annual programme and for project assessment. The Committee shall deliver its opinion within a time limit which the Chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in the second paragraph of Article K. 4(3) of the Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the representatives of the Member States within the Committee shall be weighted in the manner set out in that Article. The Chairman shall not vote. The Commission shall adopt measures which apply immediately. However, if these measures are not in accordance with the opinion of the Committee, they shall be communicated by the Commission to the Council forthwith. In that event the Commission may defer application of the measures which it has decided for a period not exceeding one month from the date of such communication. The Council, acting by a qualified majority, may take a different decision within the time limit referred to in the previous subparagraph. Article 12 1. 2. 3. 4. From the second budgetary year onwards, projects for which financing is requested shall be submitted to the Commission for scrutiny before 31 March of the financial year to which they are to be charged. The Commission shall examine the projects that are submitted to it with the assistance of the experts referred to in Article 10(2). Individual financing decisions shall be taken by the Commission, which shall inform accordingly the Committee referred to in Article 11(1). Where the financing requested exceeds ECU 100 000, the representative of the Commission shall submit a draft to the Committee referred to in Article 11(1). The Committee shall deliver its opinion on this draft within a time limit which the 9 Chairman may lay down according to the urgency of the matter. If necessary, a vote will be taken within the Committee. The Chairman shall not vote. The opinion shall be recorded in the minutes; furthermore, each Member State has the right to ask that its position be recorded in the minutes. The Commission shall take full account of the opinion delivered by the Committee. It shall inform the Committee of how it has done so. Article 13 1. Measures incorporated in the programme and financed by the budget of the Communities shall be managed by the Commission in conformity with the Financial Regulation of 21 December 1977 applicable to the general budget of the European Communities, as last amended by Regulation No 2335/95 of 18 September 1995. 2. When presenting the financing proposals referred to in Article 12 and the assessments provided for by Article 10, the Commission shall take account of the principles of sound financial management and in particular of economy and cost-effectiveness as required by Article 2 of the Financial Regulation. Article 14 Each year the Commission shall report to Parliament and the Council on the implementation of the programme. The first report shall be presented at the end of the 1996 budgetary year. Article 15 This Joint Action shall enter into force on the day of its adoption. It shall have effect for a period of five years, at the end of which it may be extended. AO Financial statement 1 TITLE OF OPERATION Joint action on a programme for practitioners in Justice area. 2 BUDGET HEADING INVOLVED B5-800: Cooperation in the fields of justice and home affairs. Commitment appropriations entered in Chapter B0. 40. 3 LEGAL BASIS Article K. 3(2) of the Treaty on European Union. 4. DESCRIPTION OF OPERATION 4. 1 General objective The objective that the Union set itself in Article B, 4th indent of the Union Treaty of developing close cooperation on justice and home affairs, must start with projects to raise awareness and increase familiarity with the laws, institutions and procedures of the other Member States. In order to reinforce their complementarity and increase their positive effects, it was felt necessary to establish an umbrella programme to give them a more coherent structure and to be able to finance them with Community funds. 42 Period covered and arrangements for renewal or extension The duration of the scheme will depend on the authorization of budgetary appropriations. After an initial five-year period it could be renewed or extended. 5 CLASSIFICATION OF EXPENDITURE OR REVENUE NCE DA 6 TYPE OF EXPENDITURE OR REVENUE Grants (of up to 80% maximum) for co-financing with other sources from the public or private sector. ii 7. FINANCIAL IMPACT 7. 1 Method of calculating total cost of operation The grants will cover the following areas: training in languages and in comparative law; work experience and visits abroad; organization of meetings; coordination of research on subjects relevant to judicial cooperation; and dissemination of information on foreign law and judicial cooperation. It is anticipated that, subject to the annual budgetary procedure, an indicative financial package of ECU 8. 8 million will be set aside for this programme for the period 1996-2000 in accordance with the timetable shown at 7. 2. The annual total of ECU 2 million once the scheme is up and running is based on the estimates and objectives below. For the first year, however, only ECU 800 000 is planned as only a limited number of projects of limited scope can be launched in what is left of the year. Training (legal terminology and comparative law) 1 five-day intensive residential course for 30 participants (ECU 20 000) from the 15 Member States. 20 000 x 15 = ECU 300 000. 1 two-day meeting per year for those responsible for training practitioners of justice in the Member States: ECU 50 000. Exchange and work-experience programme 3 series of five-day work-experience periods in each Member State for 30 participants (ECU 15 000) in each case: 3 x 15 x 15 000 = ECU 675 000. 3 series of two-day visits for 6 participants (ECU 2 000) from each Member State: 3 x 15 x 2 000 = ECU 90 000. Meetings 3 two-day conferences per year for 150 participants (ECU 100 000): 3 x 100 000 = ECU 300 000. 4 three-day residential seminars for 40 participants from several Member States (ECU 55 000): 4 x 55 000 = ECU 220 000. 6 four-day residential seminars for 30 participants from two Member States (ECU 20 000): 6 x 20 000 = ECU 120 000. 44 Research 2 studies lasting about 4 months, to be carried out by one consultant and two assistants (ECU 30 000): 2 x 30 000 = ECU 60 000. Documentation Bimonthly publication: ECU 20 000. Establishment and stocking of a database (or of several partial bases): ECU 150 000. 7 2 Breakdown of costs (ECU million at current prices) Area 1996 1997 1998 1999 2000 n + 5 et seq. Total Training Exchanges Meetings Research Documentation Total 0. 25 0. 25 0. 25 0. 05 0. 8 0. 35 0. 78 0. 64 0. 06 0. 17 2 0. 35 0. 78 0. 64 0. 06 0. 17 2 0. 35 0. 78 0. 64 0. 06 0. 17 2 0. 35 0. 78 0. 64 0. 06 0. 17 2 1. 65 3. 37 2. 81 0. 24 0. 73 8. 8 7. 3 Schedule of appropriations 1996 1997 1998 1999 2000 0. 8 2 2 2 2 (ECU million) n + 5 et seq. Total 8. 8 0. 4 0. 4 1. 3 0. 7, 1. 3 0. 7 1. 3 0. 7 1. 3 0. 7 0. 7 Commitment appropriations Payment appropriations Year n n+ 1 n + 2 n + 3 n + 4 n + 5 et seq. Total 0. 4 1. 7 2 2 2 43 8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN Verification of grants, receipt of payments and preparatory, feasibility and assessment studies is carried out by the Commission before payment is made, taking into account contractual obligations, economic principles and principles of sound financial or general management. Anti-fraud provisions (checks, delivery of reports, etc. ) are included in all the agreements or contracts concluded between the Commission and the recipients of the payments. 9 COST-EFFECTIVENESS ANALYSIS 9. 1 Specific and quantifiable objectives: target population 9. 1. 1 Specific objectives: The specific objectives include the following: raising operational language skills and comprehension of other Member States' legal terminology so that the target population can correctly draw up requests for cooperation and respond rapidly and efficiently to such requests; promoting awareness of the convergence of EU legal systems on the basis of common values; familiarization with other Member States' legal institutions and the way in which these institutions operate, by arranging work-experience periods and exchange visits; establishment, by this means, of working relationships and mutual trust between practitioners; joint discussions on matters such as ways of improving judicial cooperation or the presentation and assessment of methods used on an experimental basis; comparison of socio-legal trends and reciprocal consultations on the scope for reform in the administration of justice; analysis and study of ways to simplify and improve judicial cooperation, on the basis of the reports submitted on work-experience periods and meetings; provision of information on possible ways of gaining familiarity with foreign legal systems; ongoing exchange of information on trends in national law with a bearing on judicial cooperation. H 9. 1. 2 Target population The target population comprises judges (including liaison, contact and other judges), advocates, bailiffs, notaries/solicitors, researchers, investigators, ministry officials, court interpreters and other court officials. The proposed measures should enable these various categories of person to draw on each other's specialized experience. 9. 2 Reasons for the scheme 9. 2. 1 Need for Community budgetary assistance in the light of the subsidiarity principle Article K. 1 requires Member States to regard closer judicial cooperation as an area of common interest. Since 1995, however, the seminars held for those who regularly have to deal with questions of judicial cooperation have drawn attention to two kinds of problem. On the one hand, certain instruments for judicial cooperation are not entirely appropriate to the situation in the Union. On the other hand, practitioners point out that some of the obstacles to applying these instruments derive from "cultural" difficulties, i. e. inadequate understanding of legal language and concepts or a poor grasp of the legal traditions of other Member States, in short, a lack of familiarity with the legal culture, procedures and institutions of the Member States of the Union. These concerns are not new and the European Parliament is aware of them. A number of selective initiatives, originating mainly from private organizations, have revealed a degree of openness among the practitioners concerned, and this should be encouraged. The aim of the draft Joint Action is to establish a framework, i. e. to support any initiatives taken by public or private bodies in order to make the practitioners of justice more aware of the laws, procedures, institutions and languages of other Member States. Only if the initiative is taken at Union level will it be possible to make savings through the cumulative effects of individual projects, to achieve synergies at Union level, to rationalize the financing arrangements and to have an overview of the strategy developed. 9. 2. 2 Choice of means The proposal opts for an integrated programme with the emphasis on complementary projects, with a view to facilitating the practical and operational aspects of judicial cooperation and focusing on the cultural and sociological obstacles to satisfactory cooperation. Similar measures at national level have made many practitioners aware of these needs but are unable to provide a coordinated response to these needs. Spin-off from the programme is expected in several areas. In the first place it is hoped to stimulate the interest of the professionals concerned and to make practitioners (irrespective of their duties or responsibilities) aware of the need for a more thorough understanding of each other's legal procedures, institutions and backgrounds. They should 4 S come to see the advantages of integrating the European dimension at every stage of their apprenticeship. Secondly, the exchange of know-how between practitioners facing the same conflicts and problems may lead them to see that what they have in common outweighs the differences between them and that these differences can be overcome in an atmosphere of openness, frankness and mutual trust. The dissemination of information on the various projects and the results they achieve and on developments in areas relevant to judicial cooperation should make for a "knock-on" effect between those who have benefited from the projects and those who have not yet had the opportunity. This networking, even if on an informal basis, should in its turn make for greater transparency, efficiency and smoothness in the practical implementation of the procedures for judicial cooperation. By enabling judges, lawyers and other court officials to cooperate in this way, the scheme will also help to strengthen public confidence in justice within the EU. 9. 2. 3 Contingent factors The success of the programme will depend not only on the commitment shown by the organizers of specific projects but also, to a considerable extent, on the reception which it receives from the judicial authorities and the resources which they make available to participants. Initial contacts would seem to justify a certain optimism. The results will depend, however, on the follow-up to the programme. In the management and planning of the annual programmes and in their assessment, the emphasis will be placed on setting up a dynamic process rather than stringing together a number of individual projects. 9. 3 Follow-up and assessment Initially, the only means available for measuring performance will be the output figures. As mentioned above (point 7. 1) it is planned to organize 20 to 25 projects per year, involving between 6 and 150 participants depending on the type of project (i. e. between 2 500 and 3 000 participants in all). These figures must be taken as a rough guide only, however, since the success of this or that project and the circumstances obtaining at the time (e. g. the Council's priorities) could mean that one type of project might be given temporary preference over another in the course of the programme. The Commission will endeavour gradually to develop, on the basis of the approval procedure, performance indicators whereby the spin-off from the programme can be more accurately assessed: cost-benefit analysis; stricter monitoring of selected projects, taking account of experience gained; if appropriate, the use of analytical schemes for each category of project; the knock-on effect from one project to another and the synergy between different types of project; A 6 if possible, a system for surveying practical aspects of judicial cooperation. At the end of the programme there will be a follow-up and assessment report, which will be used to ascertain whether the programme should be renewed. The proposed Joint Action also provides for consultations between the professional interests concerned and the representatives of the Member States on the projects, for annual programmes and reports and for an annual report to Parliament and the Council, thus ensuring transparent and effective controls. 10. ADMINISTRATIVE EXPENDITURE (part A of the budget) The necessary human resources will be mobilized by the Commission's annual decision on the allocation of resources, account being taken of the staff numbers and additional amounts agreed by the budget authority. This Joint Action will involve the management of commitment appropriations, the preparation of annual action programmes, and the devising of methods to assess the effects achieved by these programmes. All of these tasks will be new to the Unit responsible for judicial cooperation, which is already very short of staff to deal with its ever-expanding responsibilities for planning, participation and negotiation within Council working parties and other international bodies. Any internal reorganization of staff would therefore seem unrealistic. Moreover, the specific nature of the responsibilities of the Task Force on Justice and Home Affairs rules out any redeployment within the Secretariat-General to deal with these new tasks. For this reason it is recommended that additional resources be brought in. 10. 1 Effect on number of posts Type of post Staff required for management of joint action of which Period Permanent posts Temporary posts using existing resources within the DG or department concerned using additional resources Officials A or temp. B C staff Other resources Total A 1/2 1/2 2 5 years beginning in October 1996 1 1/2 1/2 2 n 10. 2 Overall financial effect of additional human resources Officials Temporary staff Amount 900 000 Total 9 00 0 0° (ecus) Method of calculation 1A + 1/2B + 1/2C (ECU 100. 000 + ECU 45. 000 + ECU 35. 000) x 5 years These amounts show the total cost of the extra posts over the total duration of the measure (if the latter is of limited duration) or for 12 months (if the measure is of unlimited duration). 10. 3 Increase in other operating expenses as a result of the measure Budgetary heading A 130 Mission expenses A2510 Expenditure on Committee meetings Total Amount 300 000 104 250 100 625 504 875 (ecus) Method of calculation Missions: 30 return trips (ECU 2 000) x 5 years Advisory Committee: 15 persons x 2 meetings (ECU 695) x 5 years Experts: 5 experts x 5 meetings (ECU 805) x 5 years These amounts correspond to total expenditure on the measure (if the latter is of limited duration) or expenditure over a 12-month period (if the measure is of unlimited duration). ig ISSN 0254-1475 COM(96) 253 final DOCUMENTS EN 06 Catalogue number : CB-CO-96-265-EN-C ISBN 92-78-05202-7 Office for Official Publications of the European Communities L-2985 Luxembourg /»5

Decision of the EEA Joint Committee No 34/96 of 31 May 1996 amending Annex XIX (Consumer protection) to the EEA Agreement

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L_1996237EN. 01004101. xml 19. 9. 1996    EN Official Journal of the European Communities L 237/41 DECISION OF THE EEA JOINT COMMITTEE No 34/96 of 31 May 1996 amending Annex XIX (Consumer protection) to the EEA Agreement THE EEA JOINT COMMITTEE, Having regard to the Agreement on the European Economic Area, as adjusted by the Protocol Adjusting the Agreement on the European Economic Area, hereinafter referred to as the Agreement, and in particular Article 98 thereof, Whereas Annex XIX to the Agreement was amended by Decision of the EEA Joint Committee No 18/95 of 24 February 1995 (1); Whereas Directive 95/58/EC of the European Parliament and of the Council of 29 November 1995 amending Directive 79/581/EEC on consumer protection in the indication of the prices of foodstuffs and Directive 88/314/EEC on consumer protection in the indication of the prices of non-food products (2) is to be incorporated into the Agreement, HAS DECIDED AS FOLLOWS: Article 1 The following indent shall be added in point 1 (Council Directive 79/581/EEC) in Annex XIX to the Agreement: ‘— 395 L 0058: Directive 95/58/EC of the European Parliament and of the Council of 29 November 1995 (OJ No L 299, 12. 12. 1995, p. 11). ’ Article 2 The following shall be added in point 6 (Council Directive 88/314/EEC) in Annex XIX to the Agreement: ‘, as amended by — 395 L 0058: Directive 95/58/EC of the European Parliament and of the Council of 29 November 1995 (OJ No L 299, 12. 12. 1995, p. 11). ’ Article 3 The texts of Directive 95/58/EC of the European Parliament and of the Council in the Icelandic and Norwegian languages, which are annexed to the respective language versions of this Decision, are authentic. Article 4 This Decision shall enter into force on 1 June 1996, provided that all the notifications under Article 103 (1) of the Agreement have been made to the EEA Joint Committee. Article 5 This Decision shall be published in the EEA Section of, and in the EEA Supplement to, the Official Journal of the European Communities. Done at Brussels, 31 May 1996. For the EEA Joint Committee The President P. BENAVIDES (1)  OJ No L 83, 13. 4. 1995, p. 49. (2)  OJ No L 299, 12. 12. 1995, p. 11

Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 1784/77 concerning the certification of hops

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 30. 05. 1996 COM(96) 238 final Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 1784/77 concerning the certification of hops (presented by the Commission) EXPLANATORYMEMORANDUM It is proposed that the Council adopt this proposal for a Regulation amending Regulation (EEC) No 1784/77 concerning the certification of hops. Given that in the former German Democratic Republic, for technical reasons, certification of hops has traditionnally taken place after processing into granules, which is not in accordance with Community legislation, and that a longer period of time is required for new investments than originally allowed for, it is proposed that the date of application of the transitional measures in the hops sector following the unification of Germany be postponed until 31 December 1996. This proposal for a Regulation involves no direct expenditure from the Community budget. This proposal for a Regulation has no impact on SMEs. A Proposal for a COUNCIL REGULATION (EC) No amending Regulation (EEC) No 1784/77 concerning the certification of hops THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 1696/71 of 26 July 1971 on the common organization of the market in hops1, and in particular Article 2(4) thereof, Having regard to the proposal from the Commission, Whereas Regulation (EEC) No 1784/772 specifies the stage at which certification must be carried out and lays down the conditions under which hop products may undergo further processing; Whereas, in the former German Democratic Republic, the treatment of hops after harvest is traditionally different from that in other parts of the Community in the sense that, on numerous farms producing hops, cleaning and initial drying of cones is carried out at the same time as milling and pressing into granules, existing equipment not permitting separation of the two stages; whereas this procedure does not, however, conform to Community legislation, which lays down that certification must take place before any processing; whereas, to enable producers to spread their new investment over a suitable period, a transitional period longer than that provided for by Commission Regulation (EEC) No 2239/91 of 26 July 1991 on transitional measures applicable in the hop sector after the unification of Germany , which expired on 31 December 1992, has been inserted in Regulation (EEC) No 1784/77; whereas, by OJ No L 175, 4. 8. 1971, p. 1. Regulation as last amended by Regulation (EEC) No 3124/92 (OJ No L 313, 30. 10. 1992, p. 1). OJ No L 200, 8. 8. 1977, p. 1. Regulation as last amended by Regulation (EEC) No 1987/93 (OJ No L 182, 24. 7. 1993, p. 1) OJ No L 204, 27. 7. 1991, p. 14. l a. 31 December 1995, the situation had not been regularized on certain fann^TriiereaSj-^hereihre^ the said derogation should be extended by one year and the list of farms sTiould be" amended accordingly, HAS ADOPTED THIS REGULATION: Article 1 Regulation (EEC) No 1784/77 is hereby amended as follows: 1. In the second subparagraph of Article 1(3), "31 December 1995" is replaced by "31 December 1996". 2. The Annex is replaced by the Annex hereto. Article 2 This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Communities. It shall apply from 1 January 1996. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at For the Council ANNEX "ANNEX Farms on which certification may be carried out after processing into granules: LAND OF SAXONY-ANHALT: Eichenbarleben (formerly Irrleben) Osterweddingen Blumenberg (formerly Langenweddingen) LAND OF THURINGIA: Kutzleben (formerly Bad Tennstedt) Heringen Kindelbriick Vogelsberg (formerly Groflbrembach) Grofienehrich Hohenebra" 5 FINANCIAL STATEMENT BUDGET HEADING: 181 APPROPRIATIONS: ECU 18 million 2. TITLE: Proposal for a Council Regulation amending Regulation (EEC) No 1784/77 concerning the certification of hops. 3. LEGAL BASIS: Council Regulation (EEC) No 1696/71 4. AIMS: Amends the date laid down in Article 1(3) of Regulation (EEC) No 1784/77, and the Annex thereto. 5. FINANCIAL IMPLICATIONS: 5. 0. EXPENDITURE - CHARGED TO THE EC BUDGET (REFUNDS/INTERVENTION) - NATIONAL AUTHORITIES - OTHER 5. 1. REVENUE - OWN RESOURCES OF THE EC (LEVIES/CUSTOMS DUTIES) - NATIONAL 5. 0. 1. 5. 1. 1. 5. 2. ESTIMATED EXPENDITURE ESTIMATED REVENUE METHOD OF CALCULATION: PERIOD OF 12 MONTHS (ECU million) CURRENT FINANCIAL YEAR (96) (ECU million) FOLLOWING FINANCIAL YEAR (97) (ECU million) 1998 ECU million 1999 ECU million 2000 ECU million 2001 ECU million 6. 0. 6. 1. 6. 2. 6. 3. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? WILL A SUPPLEMENTARY BUDGET BE NECESSARY? WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/NO YES/NO YES/NO YES/NO OBSERVATIONS "+ ISSN 0254-1475 COMC96) 238 final mmher : L-2985 Luxembourg

Amended proposal for a COUNCIL RECOMMENDATION on the balanced participation of women and men in decision- making

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COMMISSION OF THE EUROPEAN COMMUNITIES it •& Brussels, 30. 05. 19% COM(96) 252 final 95/0308 (CNS) Amended proposal for a COUNCIL RECOMMENDATION on the balanced participation of women and men in decision-making (presented by the Commission pursuant to Article 189 a(2) of the EC Treaty) EXPLANATORY STATEMENT 1. 2. 3 The initial proposal for a Council Recommendation was adopted by the Commision on 29 November 1995 (COM(95) 593 final). Its aim is to encourage the Member States to examine the question of the balance between women and men in all areas of decision-making (economic, political, social and cultural), and to adopt a comprehensive and integrated strategy to achieve such a balance. The Economic and Social Committee delivered favourable opinion on this initial proposal (24 April 1996) At its plenary of May 24th, the European Parliament voted 36 amendments, of which 8 are acceptable by the Commission in toto and 1 in part (2, 8, 10, 14, 19, 25, 26, 31, 35): The accepted amendments strenghten and broaden the scope of the initial proposal in terms of: the importance of reconciling professional and family life, the close links between the decision-making process and women's participation in the labour market as well as main streaming. the need for public campaigns the monitoring and evaluation of targets the promotion of entrepreneur ship of women 4 The amendments which are not accepted can be seperated into three groups: Those which: propose changes to the meaning of the text that do not appear to add anything useful (1, 3, 4, 6, 7, 11, 12, 15, 16, 17, 18, 20, 21, 22, 23, 24, 27, 30, 32) propose completely new concepts which are not yet developed sufficiently either by the Commission or the Member States (5, 9, 13, 28, 29, 33). refer to areas where Commission has the right of initiative (36) or propose activities for the Commission which fall outside its present competences (34). The amended proposal takes into account those amendments which have been accepted by the Commission. COM (95) 593 final PROPOSAL FOR AMENDED PROPOSAL FOR A COUNCIL RECOMMENDATION ON THE BALANCED PARTICIPATION OF WOMEN AND MEN IN DECISION MAKING A COUNCIL RECOMMENDATION ON THE BALANCED PARTICIPATION OF WOMEN AND MEN IN DECISION MAKING THE COUNCIL OF THE EUROPEAN UNION, having regard to the Treaty establishing the European Community, and in particular Article 235 thereof, having regard to the Commission's proposal, having regard to the opinion of European Parliament, the having regard to the opinion of Economic and Social Committee, the having regard to Committee of the Regions, the opinion of the legislative Whereas the Council has adopted a series of instruments and political commitments in the field of equal treatment and opportunities for men and women; of State the Heads Whereas and Government, meeting within the European Council in Essen and Cannes, stressed that equal opportunities for women and men and the fight against unemployment were paramount tasks of the European Union and its Member States; Whereas attention was focused on women's access to decision-making in the Council Recommendation of 13 December 1984 on the promotion of positive action for women, in the Council Resolution of 24 July 1986 on the promotion of equal opportunities for women and in the Council Resolution of 21 May 1991 on the Third Medium-Term Community Action Programme on Equal Opportunities for Women and Men (1991- 1995); to on the the 1995 the Council Resolution of Whereas balanced 27 March participation of women and men in decision-making called on the Member balanced States "promote participation of men and women in decision-making as a priority objective in the context of their respective practices regarding equal opportunities for women and men and to adopt this objective as such in their government's programmes" and, moreover, called upon the Commission "to draw up a draft recommendation to be submitted the Council aimed at promoting the balanced participation of women and men in decision-making"; to Whereas the European Parliament in its Resolution of 11 February 1994 "on women in decision-making bodies" asked the Commission "to step up implementation of the equal opportunities policy. to combat individual obstacles which hinder women from taking part in decision-making" and to define "measures and actions to promote in the greater participation of women decision-making process"; Whereas the European Commission's Fourth Medium-Term Community Action Programme on Equal Opportunities for Women and Men (1996 to 2000), which has been submitted to the Council for decision, the balanced included promotion of participation of women and men in decision-making as one of its six main objectives; Whereas the Declaration and the Action Platform of the Fourth World Conference on Women stressed the need to ensure that responsibilities, powers and rights are shared equally, and that the Member States are fully involved in the implementation of the platform for action; Whereas the underrepresentation of women in decision-making bodies is largely a result of the delay in women's attaining equal rights and of obstacles to their gaining economic independence; Whereas women are still underrepresented in such bodies - be they public or private, political, administrative, economic, social or cultural; Whereas women account for over half the population and balanced participation of women and men in representation and administration of nations is a requirement for democracy; Whereas the underrepresentation of women in decision-making posts constitutes a loss for society as a whole and does not allow interests and needs of the whole the population to be catered for in full; Whereas the underrepresentation of women in decision-making bodies is largely a result of the delay in women's attaining equal rights and of obstacles to their gaining economic independence; as well as of the difficulty of combining the pursuit of a career with family life: (new) Whereas the aim of improving women's participation in the decision-making process cannot be divorced from employment policy to women of given continuing segregation in the labour market and the increasing casualization of female labour: the disadvantage (new) Whereas measures aimed at achieving equal participation of women and men in the decision-making process in all sectors must go hand the goal of mainstreaming a gender perspective into all Community policies: in hand with Whereas a' balanced participation of men and women in decision-making is likely to ideas, values and give rise to different behaviour which will result in more justice and equality in the world for both men and women; Whereas the Member States, the social partners, political parties and organisations, NGOs and the media have a key role to play in creating a society where public and private, economic, political and domestic responsibilities are shared equally by women and men; Whereas, in conformity with the principle of subsidiarity and proportionality as set out in Article 3B of the Treaty establishing the European Community, the aim of the -the balanced present Recommendation participation of women and men in decision-making- can be pursued more effectively by the exchange of information and examples of good practice within a common framework for all Member States; it is therefore appropriate to propose, at Community level, guidelines to promote a balanced representation of women and men in decision-making bodies; whereas the present recommendation is limited to the minimum necessary to obtain this objective and does not exceed what is necessary; Whereas, in conformity with the principle of subsidiarity and proportionality as set out in Article 3B of the Treaty establishing the European Community, the aim of the -the balanced present Recommendation participation of women and men in decision-making- can be pursued more effectively by the exchange of information and examples of good practice within a common framework for all Member States; it is therefore appropriate to propose, at Community level, guidelines to promote balanced participation bv women and men in decision-making bodies with a view to achieving equality between women and men: whereas the present recommendation is limited to the minimum necessary to obtain this objective and does not exceed what is necessary; Whereas the Treaty does not confer, for the this purpose Recommendation, any other powers that those set out in article 235, adoption the of of RECOMMENDS THAT THE MEMBER STATES: I. 2. a) comprehensive strategy designed Adopt a and to integrated promote balanced representation of women and men in places of power, influence and decision, and develop or introduce suitable legislative or regulatory measures or incentives to achieve this. Highlight in school textbooks and curricula and in education and training at all levels the role and the contribution of women in society and stress the importance of sharing both private responsibilities between women and men, public and b) c) d) 3. a) Take suitable steps so that the image of women and men in the advertising neither media and reinforces consolidates nor unjustified stereotyping of men's and women's responsibilities, c) Devise, encourage and propagate public campaigns to alert public opinion the usefulness and advantages for society as a whole of balanced participation by women and men in decision-making, to Devise, encourage and propagate public campaigns targeted at men and women to raise awareness of the usefulness and advantages for society as a whole of balanced participation by women and men in decision-making, including among others campaigns run in conjunction elections. Ensure proper with evaluation of these campaings to guarantee their effectiveness: to the media Alert the social partners, political parties and groups, associations and NGOs and the importance of a balance between women and men in decision-making bodies, and encourage to develop equal opportunities plans with measures to ease access to decision-making for women. them of in publication Develop or promote the production and statistics illustrating how men and women are decision-making represented circles in general and in political and administrative domains, public c o m m i t t e e s, c o u n c i ls and management administrative boards at national, regional and local level and in the economy and social and cultural life in particular, and b) c) 4. a) b) Support, develop and encourage quantitative and qualitative studies on women and men in decision making and especially on the legal, social or cultural obstacles to decision-making for persons of either sex, on ideas and concepts which are likely to enhance the concept of a democratic partnership between women and men and on strategies to bring about equality in decision-making, Support and encourage initiatives creating examples of good practice in the various areas of decision making and develop programmes for the"dissemination and exchange of to experience with propagating such practice. view a Promote a better balance between women and men at all levels of government, Introduce or pursue active measures, such as mentorship activities and target figures, to promote a balance between women and men in political representation at national, regional and local level, including advisory bodies which contribute to public decision-making. Particular attention should be paid to the promotion of in a and committees, working groups at national as well as European level. commissions composition balanced b) Introduce or pursue active measures, such as mentorship activities and target figures with timetables and effective monitoring of these targets. to promote women's access to political representation with a view to achieving equal representation of women and men at national, regional and local level, including advisory bodies which contribute to public decision-making, and ensure are that monitored, and evaluated. Particular attention should be paid to the promotion of a balanced composition in committees, commissions and working groups at national as well as European level. such measures documented all 4b(a)(new) Review the differential impact of electoral systems on the political representation of women in elected consider, where bodies appropriate, the adjustment or reform of these systems. and c) d) e) or and develop Implement equal opportunities plans for the public sector incorporating the concept of balanced participation in decision making, ensure, when recruitment competitions take place, that women and men are, as far as possible, represented equally in the committees for preparing competitions and in the selection boards, responsible levels Encourage the private sector to increase the presence of women at all of decision-making, notably by the adoption, or within the framework, of equality plans or positive action programmes, 4d(a)(new) for to programmes promote and Provide measures female entrepreneurship and give women greater access to the professions. radio press, Encourage and television organisations to adopt to promote balanced measures participation by women and men in production, management and decision-making bodies, AND THEREFORE CALLS ON THE COMMISSION: 1. 2. 3. to step up its efforts to provide information, alert public opinion, encourage research and promote pilot activities to achieve balanced participation by women and men in decision-making, to encourage and organise, in conjunction with the Member States, systematic pooling of experience and policies implemented to achieve a balance in between women decision-making, assessment and men of to submit a report to the Council, within three years of adoption of this Recommendation, on progress achieved in implementing it on the basis of information provided by the Member States. to submit a report to the European Parliament and the Council, within three years of adoption of this Recommendation, progress achieved in implementing it on the basis of information provided by the Member States. on 10 X ISSN 0254-1475 COM(96) 252 final DOCUMENTS EN 04 05 Catalogue number : CB-CO-96-264-EN-C ISBN 92-78-05191-8 Office for Official Publications of the European Communities L-2985 Luxembourg M

TRANS-EUROPEAN NETWORKS - ANNUAL REPORT TO THE COUNCIL AND THE EUROPEAN PARLIAMENT - DECEMBER 1995

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COMMISSION OF THE EUROPEAN COMMUNITIES ix * it tir Brussels, 30. 05. 1996 COM(95) 571 final TRANS-EUROPEAN NETWORKS ANNUAL REPORT TO THE COUNCIL AND THE EUROPEAN PARLIAMENT DECEMBER 1995 CONTENTS CONCLUSIONS AND RECOMMENDATIONS TRANS-EUROPEAN ENERGY NETWORK Table: Financing the 10 priority energy projects TRANS-EUROPEAN TELECOMMUNICATIONS NETWORK TRANS-EUROPEAN TRANSPORT NETWORK Table: Progress on Transport priority projects Table: Problems concerning transport priority projects Annexes: Setting up public/private partnerships in the transport sector I. II. Financing : Public/Private Partnerships TEN and Competition in the transport sector III. Public procurement rules for transport TEN IV. Project authorities for trans-European network projects CONNECTING WITH CENTRAL AND EASTERN EUROPE AND THE MEDITERRANEAN BASIN JOINT ENVIRONMENTAL PROJECTS Annexes I II Description of some specific waste project examples Description of some specific water project examples III Criteria for Joint Environmental Projects GENERAL TABLES: Progress of TEN legislative procedures Community funding of TEN 4 6 10 11 16 24 25 26 29 33 34 36 40 48 52 54 55 56 The European Council, at its meeting in Brussels in December 1993, asked the Commission to submit to it each year in December a report on progress of the trans- European infrastructure networks in the spheres of transport and energy and on the implementation of the operation programmes in the area of information infrastructures. The present report is drafted in the light of the conclusions of the Essen and Cannes European Councils. CONCLUSIONS AND RECOMMENDATIONS v. 1. in the Trans-European networks are vital to jobs, competitiveness and cohesion European Union. Considerable progress has been made since Essen, but there remain substantial problems related to the level of priority of TENs projects in Member States and, especially in transport, their financing requires greater effort. For energy TEN, the Commission considers that there is a need for Member States 2. to speed up the examination of requests for authorizations. Similarly, the EIB should continue the examination of requests for financing for priority projects. The rapid adoption of the TEN energy guidelines is essential so that the Commission can implement them soon. The creation of the Internal Energy Market should also be a priority. 3. As far as telecommunications TEN is concerned, speedy adoption of the proposed TENs Telecom Guidelines is needed, together with confirmation of the importance of the IDA Programme as an essential component of TEN-Telecom 4. The development of environmental network infrastructure requires approval of the definition of Joint Environmental Projects (JEPs) and their selection criteria. The Commission also supports moving forward into an operational phase in which a limited number of pilot projects in the waste and water sector will be selected and launched. Provisions should be considered so that JEPs could receive administrative and financial support analogous to that provided for trans-European networks. For the transport TEN, the Council and European Parliament should compromise in 5 order to adopt the transport network guidelines as quickly as possible 6. Progress has been slower than anticipated on parts of some priority projects. The Member States concerned need to make concerted efforts to solve the problems that are holding up these projects, which will require national priorities to be adapted in consequence. Unfortunately, the national authorities concerned see no potential for substantial cost reductions without severely affecting the scope and viability of most of the priority projects. Research done for the Commission shows that the socio-economic return of international transport infrastructure projects is greater than previously thought. This should be taken into account when adopting the necessary decisions, requested by the Essen European Council, to "top up" the funds currently available for TENs. 7 Although the examination of individual priority projects shows substantial scope for enhancing the involvement of the private sector, very few public-private partnerships (PPPs) In order to help in their promotion, the Commission has set up a "One- are being set up. Stop" Help Desk on the application of Community public procurement and competition rules in relation to PPPs It urges Member States to keep up political pressure to implement PPPs and, where there are legal or administrative barriers to the implementation of PPPs, to make. Extract from the Commission's "Progress on TENS" report to the Madrid European Council (CSE (95) 571). any necessary changes. There is a need to develop public support mechanisms, including public equity, particularly for projects involving mixed sources of financing. Therefore the Commission supports~*he widening of the activities of the EIF to equity operations. 8. Unfortunately, Member States' funding for the priority projects has not always been made available as anticipated, resulting in delays in progress. Clear financial shortfalls are revealed so far for two priority projects, for which the Member States concerned are seeking Community financing: Project 0995-99) PBKAL HST East Belgian section Netherlands section UK section (CTRL) Financial shortfall 200 MECU 120 MECU 240 MECU 200 MECU The Commission urges the Member States concerned to complement the measures they 9 have already taken and try to identify additional support to help meet these shortfalls. The current TEN budget line cannot accommodate these requests, and if Member States' action were to fail to make up the financial shortfalls, this would lead to serious delays to these already mature projects Given the strong element of Community interest in these projects, additional Community support would be justified. The Commission welcomes the establishment of "project authorities" in the form 10. multi-national European Economic Interest Groupings (EEIGs) for the promotion phase of certain links to ensure better coordination and promote the possibilities of PPPs. It notes the particular problems that have arisen in some railway projects and urges the Council to adopt a European Company Statute, which would provide a legal vehicle for cooperation during the construction phase. The Commission will focus its own work on TENs projects more sharply to help 11 accelerate progress on the ground THE TRANS-EUROPEAN ENERGY NETWORK I. Progress in the development of the trans-European energy network The regulatory framework for trans-European energy network 1 Regarding the Community legislation specific to energy TENs, the two Commission proposals on the "Guidelines" and "More favourable Context" for the development of trans-European electricity and natural gas networks2 were the subject of a common position of the Council on 29 June 1995 Their second reading by the European Parliament was recently completed and the final adoption of these proposals is expected by the end of 1995 or beginning of 1996. The "Guidelines" identify 43 projects of common interest which represent a reference scheme for the development of energy networks in the coming years. The 10 priority projects confirmed at Essen are included in this scheme 2 After the adoption in September 1995 of the regulation drawing up the rules for the granting of financial aid to the TEN, the Commission has been able to decide the first commitment of such aid to energy TEN projects, using the 1995 budget allocation. 3. Regarding the implementation of the Internal Energy Market, progress has been recorded in the discussion of the Commission proposal for the electricity market, and it is hoped that the Council could adopt a common position on this proposal before the end of this year. Such agreement would allow discussions on the Commission proposal for the natural gas market to resume as from the beginning of 1996 The Treaty rules, including the competition rules and procedures, are naturally applicable to the energy sector This means in particular that TENS should not lead to a reinforcement of any dominant position of undertakings which control them. Progress in building the infrastructure for the trans-European energy networks 4 The Essen Summit identified a list of 10 priority projects in the energy sector, 5 within electricity networks and 5 within natural gas networks. These energy priority projects are: Italy-Greece: France-Italy: France-Spain: Spain-Portugal: (1) (2) (3) (4) (5) Denmark electricity interconnection electricity interconnection electricity interconnection electricity interconnections electricity connection East-West C OM (93) 685 f of 19. 1 1994 (6) Greece: (7) Portugal: (8) Spain: (9) Algeria-Morocco-Spain: (10) Russia-Belorussia-Poland-EU: main gas pipelines and LNG station main gas pipelines and interconnections with Spain interconnections with Portugal and main gas pipelines in Extremadura and Galicia gas pipeline gas pipeline. 5. In connection with these priority projects, some progress has been achieved during the twelve months which have passed since the Essen Summit. This progress concerns mainly the natural gas projects in Spain and Portugal. Out of the 10 energy priority projects agreed at Essen Summit: • • • • though for the 5 natural gas projects are under construction, the Russia- Belorussia-Poland-European Union project only the first phase is under way and for the Spanish projects the main pipelines in Galicia and Extremadura are still subject to definition. 1 out of the 5 electricity projects is under construction interconnection between Portugal and Spain); the construction of 3 other electricity projects has not yet started: the electricity interconnections between France-Italy and Italy-Greece because of delays in the authorization procedures and East-West Denmark connection, this project being the subject of a reassessment by its promoters; as for the last electricity project, the electricity interconnection between France and Spain, construction has been suspended on the Spanish sice, waiting for the authorization procedures to be completed on the French side. (the Northern electricity 6. Regarding the remaining common interest projects identified by the TEN Energy Guidelines, construction work has started in a few cases, although in most cases, the projects are in their pre-construction phase. Financing the development of the trans-European Energy Networks 7 8. In general, the financing of energy networks is secured by the companies in the sectors concerned, using their own resources or calling on the capital market For the 10 priority projects, the Christophersen Group considered that financing problems could be solved through the use of existing Community financial instruments. total investment cost for the 10 priority projects The is estimated at around 4350 MECU; this estimate does not include the cost of the sections of priority projects to be built in third countries (in Algeria and Morocco for the Maghreb gas pipeline and in Poland, Belarus and Russia for the new Russia-EU gas pipeline). A significant part of the investment cost for the development of these 10 priority projects will come from the companies of the energy sectors concerned. 9. Community funds available to these priority projects are mainly aids from the Structural Funds (for projects in Objective I regions) and loans from the EIB and the Commission (under the ECSC Treaty). Complementary support might be given from the EIF (loan guaranties) and from the TEN Energy budget line. 10. Since 1993 the Structural Funds have already committed in favour of the energy priority projects around 640 MECU and are assessing demands for around 758 MECU. 1 1. Likewise since 1993 Community Loans of the order of 1380 MECU have been already agreed to by the EIB and the Commission (ECSC) in favour of energy priority projects; requests for loans of more than 500 MECU are still being examined by the EIB and Commission Services. It is worth noting that included in the figure of 1380 MECU mentioned above are loans of about 540 MECU the EIB has committed for the sections of the Maghreb gas pipeline to be build in Algeria and Morocco. 12. Regarding the granting of financial support from the TEN Energy budget line, an amount of 12 MECU has been recently committed with the aim of promoting feasibility and other studies concerning 12 projects of common interest from the Guidelines list, of which 3 are Essen priority projects (the France-Spain and the Spain-Portugal electricity interconnections and the Greek natural gas project) 13. Regarding the activity of the EIF, loan guarantees for an amount of 207. 7 Mecu were signed for 2 key gas projects (the Trans-Mediterranean II gas pipeline to Italy and the natural gas project in Portugal) the last project being in the Essen priority list This represents about 40% of the total amount guaranteed by the Fund during the first year and a half of operation (1994,1995) ( Connecting the trans-European energy networks to third countries 14. Priority projects and other common interest projects do take account of the need of the energy networks of the Community to be interconnected with those of third countries The TEN Energy Guidelines also provide for a procedure to be followed in order for such projects to be recognised as "mutual interest projects" by the third country(ies) concerned. 15 Connection of the CENTREL (Poland, Czech Republic, Slovakia and Hungary) and UCPTE electricity grids is scheduled for the last quarter of 1995 This will represent air important stage in the integration of the European electricity grids. Further extension of the UCPTE grid towards the Balkan countries and the interconnection of the extended UCPTE grid with the CIS countries are the subject of studies under the PHARE and TACIS programmes 16. Studies of East-West gas interconnections in Europe and of regional projects of interest to Central and Eastern European and/or Union countries have been and are being made under the PHARE programme. These studies complement actions to be taken from 1995 in connections with projects of common interest identified by the Community guidelines. II Problems remaining to be solved 17. The implementation of several priority projects is still facing problems, owing to the difficulty of obtaining the authorizations for the construction and /or of gathering finance for the investment. 18. Projects still encountering authorization problems delaying the beginning of their construction are: • • • the Italy-Greece electricity interconnection; the France-Italy electricity interconnection; the France-Spain electricity interconnection 19 Projects still encountering economic appraisal and/or financing problems are • • • • • • the Italy-Greece electricity interconnection (loan requested from the EIB); the Denmark East-West electricity connection (the electricity companies concerned are reassessing the project). the Greek natural gas project (EIB and Commission (ECSC) services have laid down certain conditions for the granting of loans); the Portuguese natural gas project (loan requested from the Commission (ECSC)); the natural gas projects in the Spanish regions of Extremadura and Galicia (redefinition of the projects, Structural Funds (ERDF) commitments need to be redefined accordingly); the Spanish section of the Maghreb natural gas pipeline project (Structural Funds (ERDF) aid has been sought and an EIB loan is envisaged) TABLE 1 TRANS-EUROPEAN ENERGY PROJECTS: FINANCING OF THE 10 PRIORITY PROJECTS (a) EUROPEAN UNION LOANS d e c i d ed [or under a p p r a i s a l] TOTAL COST ELECTRICITY NETWORK PROJECTS EIB ECSC (in MECU) FINANCIAL CONTRIBU TION FROM THE ERDF(b| d e c i d ed R E M A R KS ON THE FINANCING S C H E ME a4 Italy - G r e e ce interconnection b6 F r a n ce - Italy interconnection. b7 France - Spain interconnection. b10 Spain - P o r t u g al interconnections c2 D e n m a r k: East-West connection. N A T U R AL G AS NETWORK P R O J E C TS e6 G r e e ce Main pipeline system and LNG terminal 304 170 115 110 57 170 [100] 35 Not finalized. Not eligible Finalized. Not eligible Finalized. Finalized Not eligible Not finalized 1285 7 + [219] 83 + [97] 683 Not finalized e5 P o r t u g al Main pipeline system 462 354 (e) f6 S p a i n - P o r t u g al Interconnections Portugal-Spain Main pipeline systems in Extremadura and in Galicia h4 A l g e r i a - M o r o c c o - S p a in Section from Tangier-, (MO) to Cordoba (SP) h7 P u s s i a - B e l a r u s - P o l a n d - E. U Section in Germany (e) 224 (e) 386 72 446 100 (c) 830 (e) [102] (e) 173 156 Not finalized EIF loan guarantee Finalized. EIF loan guarantee Not finalized. Not finalized ( • ') Not finalized TOTAL 4350 742 + [319] 83 + [199] 1047 (a) Same project code as in Guidelines (OJ No C 216 of 21/8/1995) (b) Under the Community Initiatives REGEN (89-93) and INTERREG II (94-99) and under the Community support frameworks for the periods 89-93 and 94-99. (c) Total EIB loans decided for the "Maghreb pipeline" amount to 641 MECU, for works in Algeria, in Morocco and for the Gibraltar crossing (Tangiers - Tarifa). (d) Sections in the Eastern Lander of Germany might be eligible to assistance from the ERDF. (e) EIB or ECSC loans are referred to the global project which is larger than the priority project concerned. Telecommunications Trans-European Networks I. Progress to Date in This Field 1. The trans-European Telecommunications networks (TEN-Telecom) have been subject since 1993 to a number of actions with a view to define the proposals to be made to the Council and European Parliament, in particular for the adoption of a series of guidelines as foreseen in the Title XII of the EU Treaty. Already in 1993, two initial proposals of guidelines were sent to the Council and Parliament: one concerning trans-European networks for communication between Administrations (TNA-IDA)1; one covering a subset of TEN-Telecom, i. e. TEN-ISDN2. Furthermore, in July 1993, the Commission submitted a communication on TEN-IBC3 to the other Institutions. 2. The Council of Ministers and the European Parliament have adopted the TEN Financial Regulation and the TEN-ISDN guidelines. Moreover, the Proposal concerning the general TEN- Telecom guidelines is being examined by the Council and Parliament, and a policy debate is expected for the Telecommunications Council on 27 November 1995. The TNA-IDA initiative gave way to the proposal for an IDA Programme This was adopted at the Industry Council meeting on 6 November 1995. 3. However, despite the progress mentioned above, previous European Council meetings (e. g. Essen) expressed themselves only in general terms about TEN-Telecom. It is therefore suggested that upcoming European Council meetings should consider TEN-Telecom in a similar way as other TEN sectors such as transport or energy for which specific projects have been identified. Certain specific aspects of the Telecommunications sector, which lead to act in this sector in a partially different way as in the other TEN sectors, have to be recalled: i) the bottle-neck in the field of telecommunications is associated mainly with the development of applications and with problems of interoperability of generic services at European level (cf. the Bangemann Group report), ii) any action has telecommunication sector. to take account of the increasingly liberalized context of the TEN-TELECOM IN THE CONTEXT OF THE LIBERALIZED MARKET 4 The liberalization of telecommunications implies in particular that the projects to be supported have to be identified following a procedure which allows competition between initiatives stemming from market or social needs rather than, as in. the other TEN sectors, on the basis of In this context, the role of the proposals made by the Administrations of the Member States TNA-IDA concerns iclcinalics applications for information exchange between Administrations ISDN (Integrated Services Digital Network) is a network allowing transmission under an integrated and digilali/. cd form of voice, data and fixed images, al medium speed rates (Mkb/s). IBC Inieuraicd Broadband Communication public authorities is to select the priority fields in which projects may receive support. Community support should be awarded to projects in areas of public interest which will bring immediately strong socio-economic benefits and for which sufficient. in the framework of public / private partnerships including in particular local or regional authorities. The support awarded has to be compatible with competition law and state aid regulations. These projects should be implemented the financial viability is not 5. In this perspective, supporting the development of trans-European applications, generic services and networks will bring an important contribution exploitation of the benefits of the information society. telecommunications the to SCOPE OF THE IDA PROGRAMME 6. The IDA Programme concentrates on maximizing interoperability, with specific reference to increasing the efficiency, effectiveness and transparency of public services in the context of the internal market. 7. Member State Administrations and European Institutions are implementing interoperable telematic networks and services, in accordance with the Council decision, in order to exchange information by means of activities "in the following specific fields: Production and promotion of architecture guidelines and operational requirements to achieve interoperability Practical introduction of electronic mail on the basis of X. 400 Practical implementation of trans-European networks in the following areasCustoms and taxes; Fisheries; Agriculture; Social security; Public procurement; Health; Statistics; Commercial policy; Competition policy; Culture; Telematic projects aiming at facilitating the Community decision making process; Support to agencies (Environment, Internal market, Public health, Translation centre). Horizontal activities (provision of generic services, progress in the legal and contractual framework ) II. Results (1993-1995) TELECOMMUNICATIONS - GENERAL 8. The preparatory phase for TEN-ISDN and TEN-IBC involved budgetary resources of 7 MECU in 1993 and 14 MECU in 1994. During the 1995 exercise, where a budget of 22 MECU was allocated, these types of action were further developed and pursued 9. These preparatory projects were either feasibility studies of pilot projects, in the domain of EURO-ISDN and broadband communications, aiming at improving the understanding on the type of actions and on the priorities which should be implemented in realising trans-European networks in these areas. 10. These actions allowed the analysis of the principal obstacles regarding the deployment and usage of ISDN based solutions through a number of feasibility studies and pilot projects, in the field of health care, teleworking, education, applications for SMEs, desktop multimedia services. In addition, studies on terminal issues and quality of service in the field of ISDN were performed. 11. The main objective of the broadband related efforts (TEN-IBC) was to gain a better understanding of the potential demand and the technico-economic viability of broadband applications, eg. in the domains of ATM-bandwidth4 on demand services, multimedia e-mail, scientific networks, city information highways, transfer of radiological images on ATM networks. These projects have triggered the constitution of common interest groups and consolidated the basis for launching viable trans-European applications, in particular in the fields of public interest, during the years to come. IDA PROGRAMME 12. The following results have already been achieved: production of the IDA architecture guidelines; introduction of a backbone X. 400 network offering services over and above those offered by public Administrative Domains (ADMDs) and in all 15 Member States, operational or pilot networks in the context of the following projects: Social security (TESS / SOSENET); Employment (EURES); customs & taxation (QUOTA, VIES, EBTI, TARIC): Agriculture (PHYSAN, IDES); public procurement (SIMAP), fisheries (FIDES); statistics (DSIS) e-mail connectivity for an initial group of committees comprising 270 members; provision of e-mail services for the European Institutions ATM (Asynchronous Transfer Mode) is an advanced transmission and switching system using very high transmission speeds, which allow for instance the transmission of TV quality images III. The-Challenge for the Future TELECOMMUNICATIONS-GENERAL 13. The future work programme for the trans-European telecommunications network aims to promote the implementation of trans-European telematic applications of collective interest based on interoperable generic services and on interconnected digital networks with a view to facilitating the transition towards the information society; improving competitiveness of European enterprises and strengthening the Internal Market; strengthening economic and social cohesion; stimulating new activities leading to job creation. Within these broad objectives, the 1996 work programme will establish specific priorities for each of the three levels : the feasibility study, the validation, and the deployment of applications of collective interest, broad enough to reach a critical mass of users and generate a strong participation of the private sector in providing investment in the context of public/private partnerships; the promotion of interoperable services in Europe, by establishing and implementing common specifications based on European and world-wide standards, and their extension to a multimedia environment; the promotion and stimulation of access to trans-European interconnexted and standardised basic networks, and in particular the promotion of EURO-ISDN, the development of broadband networks (mainly based on the ATM technology), and their interconnection to mobile and satellite networks Lastly, a specific priority for Community action is given to SMEs in two areas : identification of applications which have an important impact on their activities; a minimum presence of SMEs in the consortia responding to the Commission calls for proposals 14 These issues have been considered in the Communication of the Commission to the Council and European Parliament presenting the methodology for the implementation of the information society applications and proposing the TEN-Telecom guidelines" The concrete implementation of the guidelines during the year 1996 will offer the opportunity to fine-tune these principles in concrete cases IDA PROGRAMME The IDA Programme will obviously pursue the implementation of telematic networks while at the same time addressing and resolving a number'of key issues 'Document COM(V5)224 final of. 11 Ma\ 1W5 14 15. The legal problems affecting all electronic interchange of information / documents (such as authentication of the user(s), electronic signature, data protection and data security) are encountered by IDA projects as a matter of course. This is particularly sensitive within public administrations, given the nature of the information exchanged. Member States have quite different legislation in this area. Harmonisation is urgently needed. Some studies to this effect have been started. 16. Commitment from Member States is vital for the success of IDA projects This has not always been forthcoming. 17. The European Parliament Opinion and the Council of Ministers have differing views on the legal basis for the IDA Programme. Such differences should not endanger the success of the Programme, as, in the past, they have with respect to budgetary resources. IV. Conclusions 18. Telecommunications networks are the backbone of the future information society. 19. the for a first year regular action In the surge of the increasing Community activity for the promotion of the information society, 1996 will be trans-European telecommunications networks. This action is planned to be intensified during the following years, with a view to bringing a substantial contribution to the fruition of the economic and social benefits linked to the development of new services and applications on the information highways. To allow for the implementation of projects in all proposed domains, the Council and the Parliament are requested to adopt as quickly as possible the proposed Decision on the TEN-Telecom Guidelines. field of the in 20 IDA is a concrete programme, already delivering results. implementation of The continued telematic networks will dramatically improve the management of the internal market and bring direct benefits to European citizens. The European Council the importance of the IDA Programme as an essential component of TEN-Telecom. is therefore requested to confirm these administrative 15 TRANS-EUROPEAN TRANSPORT NETWORK I Progress The development of 1. or upgrading of links for the various modes of transport, in particular for the road and rail network. the Trans-European Transport Network (TEN-Tr) requires the building TEN Transport (common position) all railways HST roads existing add or upgrade existing add or upgrade existing add or upgrade Network 50,300 23,600 5,300 13,600 48,000 27,300 Priority Projects 6,766 4,044 5,234 1 The "all railways" figures include high speed (HST) and conventional lines. In the years 1993- 1995 about 2500 km of roads and about 2000 km of railways have been started. Substantial work has also been done on the airports of the TEN-Tr. An important upgrading programme is being prepared for the ports, which is due to be implemented next year and focuses particularly on short sea shipping. Priority Projects Community resources have been focused on the priority projects endorsed by the European 2. Council at Essen, (see Table 1 for progress on these projects). Community legislative framework In October 1995, a Common Position was adopted in the Council on the Commission 3. proposal6 on the guidelines for the development of a trans-European transport network The European Parliament will shortly complete its second reading. The Council Regulation on Financial Aid for TENs7 came into force on 23 September 4. 1995. The Council adopted a common position on the High Speed Train Interoperability 5. Directive8 in June 1995. The "Association Européene pour l'Interopérabilité Ferroviaire" (AEIF) has been established,to help develop standards under this Directive Commission proposal No C O \ l ( 9 4) 106 7 Council Regulation No. 2236/95/fiC. K Commission proposal No COM (94) 107 Financing 6. An overview of the present status of financing for the TEN-Tr and in particular the 14 priority projects is set out in the following table (all figures in MECU): Total costs up to 2010 Total Expenditure9 95-99 95 EU grants up 1993 to 1995 EU loan operations up 1993 to 1995 Trans port Budget10 Structural Assistance 11 EIB EIF guarantees Network 400,000 220,000 >11,000 625 3,962 6,417 161 F'riority Projects only 99,000 45,000 c. 2,600 c. 362. 512 687 5,800 71 The European Investment Bank (EIB) has been contracting loans at a rate of IBECU a year 7. for priority and related projects, and is likely to continue to do so. EIB loans for TEN projects are being extended in the framework of a "TEN window" set up by the Bank following the Essen Council13. (688 MECU) and some of the motorway projects. In the course of 1995, it has concluded new lending operations for the 0resund Created at the Edinburgh Summit in order to cover specific financial needs in relation to 8 TENs, and formally established in June 1994, the EIF has already become involved in several priority TENs. extended. The Fund is pursuing the identification of suitable financial arrangements for other priority projects, notably CTRL. In the case of Malpensa airport, 71 MECU worth of guarantees have been 9 The Essen European Council confirmed the objective of facilitating public-private partnerships (PPPs) for TEN-Tr projects (see Annex I). PPPs are in place for the Channel Tunnel Rail Link and West Coast Main Line in the UK and have been introduced for three sections of the Greek motorways As reported In Member Stales to the Commission 11ns will include any financing <>i financial support received from Community sources Further to the TFN budget line of this year it includes grants under another budget line of-4 (JO Ml-'. Cl' between I WO and 1994. Hie Community structural assistance comprises the Cohesion and the structural funds in particular I F D F R; the figures are estimates Hie priority proiccts have only been identified as a group lor funding purposes since the adoption of the TF. Ns Financial Regulation However. Community funding was given to projects which became priority proieds. prior to 1995 Loans extended under the TFN window can be characterised by longer maturities, adequate financial engineering and eail\ involvement m the financial and contractual structuring v\ the project. 17 10. The Community public procurement and competition rules are often perceived as a barrier to PPPs by project promoters. Analysis has shown that the rules do include flexibility for the setting up of PPPs. The Commission has agreed guidance on the application of Community public procurement and competition rules (see Annexes II and III). The Commission has also set up a One-Stop Help Desk (fax: 32 2 295 6504) on these matters encouraging early consultation by project promoters to give better guidance and support. 11. The Commission is drawing up a "Common Transport Infrastructure Promotion Programme" (CTIPP), within the framework of Regulation 2236/95, to promote financial planning on a multi-annual basis for TEN-Tr projects. This will also provide an overview of Member States' commitments to projects within the TEN-Tr. Coordination 12. The Commission has continued to hold project seminars for most priority projects; monthly meetings keep the Commission, the European Investment Bank (EIB) and the European Investment Fund (EIF) abreast of their respective activities; two high-level groups are ensuring better coordination of the satellite-based positioning and navigation project GNSS and the various aspects of road transport telematics Germany has taken on the coordination of the work on a radio-based traffic message channel for road traffic, with the help of 1 1 other Member States. 13. The Essen European Council confirmed the need for cross-border "project authorities" for the larger international projects, reflecting the positive experience of such projects in e. g. the 0 r e s u nd project and the negative impact of a lack of such coordination e. g. on the PBKAL. "European Economic Interest Groupings" (EEIGs) are a suitable legal instrument to ensure cross- bordei co-ordination in the planning phase of trans-national projects. A number of these have been established: "Alpetunnel" for the HST Lyon-Turin and "SEM" for the HST South "ERTMS" has been set up by the operators of the high speed train services to develop a common European control command system. The Austrian Government has created a new railway infrastructure management company for the Brenner link, in which they would like to include partners from other Member States. Third Countries 14. The Commission considers the development of TENs links to central and eastern Europe as a fundamental part of the pre-accession strategy for these countries and is therefore concentrating efforts on these tangible connections ( see the relevant section of this annual report for more details). Work continues on linking the TEN-Tr to the networks of third countries,coordinated through the regular meetings of the G24, chaired by the Commission A Communication is being prepared on connecting TEN-Tr with third countries' networks 15 The Barcelona Euro-Mediterranean Conference is expected to create a framework for promoting infrastructure projects in the area, with support from the newly established Community assistance programme MEDA. More details to be found in the relevant section of this report. 18 II. PROBLEMS Legislation ^*^ 16. The guidelines for the TEN-Tr are only proceeding slowly through the legislative process, blocked by disagreement between the Council and the European Parliament on whether to include the priority projects agreed at Essen and on whether to include an article on the need for environmental assessments. The Commission believes every effort should be made to resolve these disagreements as soon as possible. Priority Projects 17 See Table 2 for details. Problems have also been encountered because of Member States' reluctance to adapt their national priorities to take account of the trans-European networks. While welcoming the concept of TENs and their advantages for Europe in terms of competitiveness, jobs and economic cohesion, many countries take the attitude that it is up to other countries to develop the network, while they concentrate on national priorities without adapting their planning. 18. Methods used by national authorities to evaluate the socio-economic benefits of their sections of large scale cross-border infrastructures substantially underestimate the true gains because they each exclude the benefits to non-nationals. Such methodology may be quite appropriate when deciding the level of national subsidy for a national project, however it means that, taken together, the national measures of socio-economic benefit miss out at least half of the international benefits. For example, the benefits to French passengers travelling on the English section of the London-Paris High Speed Train are being missed, as are the benefits to UK travellers on the French section 19. Research done for the Commission in the context of the Paris-Brussels-Cologne- Anistcrdam-London (PBKAL) High Speed Train working group and endorsed in their report shows that including these neglected benefits increases the socio-economic return of the project by a quarter, taking it up from 7. 2% to 9. 5%. 20 This international element of the socio-economic return of a particular priority project can be thought of as the 'Community benefit'. Work is currently underway to measure how much has been neglected for other priority projects, alihough figures as large as that found for the PBKAL are unlikely since that project concerns so many Member States. 21 Failure to take account of the 'Community benefit' of the priority projects is one aspect of a recurring problems of low or contlicting national priorities for many of the priority projects. This is reflected in terms of slow progress in defining projects (e. g. Brenner), contlicting scheduling on the part of national authorities each side of the border (e. g. PBKAL, HST-East), failure to resolve financing questions (e. g. PBKAL, Brenner, HST-East) and inability to form multinational projeci authorities to coordinate work on projects (e. g. PBKAL, Brenner). See below for a more de ;led analysis of problems concerning the priority projects. The Commission believes that Member States should re-examine the prioritisation at present given to TENs projects, especially those endorsed as priority projects at Essen. 22. The Commission believes that the definition of several of the priority projects should be altered to reflect better the needs of the trans-European transport network. In particular, the High Speed Train East should be extended to the east and renamed the HST Paris-Munich-Vienna. The rail/combined transport north-south route in Ireland should be extended to Londonderry in the north. The Lisbon -Valladolid motorway should have a different route as proposed by the Portuguese government. The Ireland -UK-Benelux road link should be extended to cover rail and combined transport. This redefinition should be carried out in the context of discussion on the TEN guidelines. Financing 23. As requested at the Cannes European Council, a review of the costs of the priority projects has been undertaken to try to identify possible reductions. The Commission has sought information on costs from Member States and has established working groups to examine in detail the possibility for cost reductions on some particular projects. PBKAL, HST East, the Brenner link of the HST North-South and the Greek Motorways The results so far indicate cost increases rather than savings and current estimated total investment costs for the 14 priority projects are about 99 BECU (compared to 92 BECU mentioned at the Essen European Council). Reduction of these costs seems impossible without drastically reducing the feasibility and scope of the projects. The Commission is prepared, with the help of expert advice, to go more deeply into the question of cost reductions with Member States; however, it considers the matter primarily a responsibility of the authorities in the Member States concerned. 24. The budgetary restrictions in Member States continue to have a significant impact on transport infrastructure investment and appear likely to delay the progress of the TEN-Tr. 25 The planned Community TEN-Tr budget for 1995 - 1999 provides less than 4% of the total required investment for the 14 priority projects over that period. Therefore, although Council Regulation 2236/95 on Financial Aid for TENs allows the Community to fund up to 10% of the total project costs, this will not be possible. Member States have bid for nearly three times the amount available this year Problems with a number of priority projects have highlighted the difficulties of not being In early 1995, the 26. able to make multi-annual financial commitments from the TEN-Tr budget. Commission requested information from Member States on their plans up to 1999 and is now drawing up a multi-annual programme covering public, private and Community funding Analysis based on these figures shows severe financing problems for two projects in particular the HST East and the HST PBKAL For the PBKAL, Member States have requested additional Community to help meet these shortfalls of 200 MECU for the Belgian section, 120 MECU for the Netherlands section and 240 MECU for the UK section (CTRL) The French Government has requested 200 MECU of additional Community funding for the HST East 27. While innovative forms of infrastructure provision are emerging, the existing financial support mechanisms used by the public sector are not evolving at the same pace and are too 20 often oriented towards traditional public financing schemes. The Community is making specific efforts to adjust and reshape its financial support mechanisms to meet these emerging needs, for example by creating the EIF, setting up the "TEN window" at the EIB, and developing new forms of Community budget support. Member States have not really taken up the challenge of finding alternatives to public finance for projects. The rather low figures for the financial return on investment for many of the projects make such propositions unattractive for the private sector, unless public commitments are given to raise the profitability or reduce risk. That many Member States are not moving to promote PPPs is shown by the low proportion (c 5 %) of In a applications for funding from the TEN-Tr budget in the form of interest rate subsidies. number of Member States legal barriers still exist, which are at odds with the European Council's repeated calls for the promotion of PPPs 28. Of the 14 priority projects, most are purely public, but some have left some scope for the involvement of private partners (Malpensa airport, TAV Turin-Venice, Netherlands and UK sections of PBKAL, West Coast Main Line, Ireland-UK-Benelux road links, PATHE motorway). Of those priority projects still at a more conceptual stage, the HST Lyon-Turin, the HST/combined transport Munich-Verona (Brenner), the Lisbon-Valladolid motorway and HST South are all serious potential candidates for public/private partnerships. 29. The lack of appropriate sources of equity deserves a particular mention, as this creates a "confidence gap" related to the risk of the project, which acts as a barrier to the development of PPPs. Public equity support would attract investors and introduce new forms of flexibility in the financial structure of PPPs. The EIF's,statute specifically provides for the possibility of equity provision, however, a positive decision from the EIF's General Meeting is needed to allow the Fund to widen its activities, which are currently limited to issuing loan guarantees. The Commission strongly recommends that the necessary steps are endorsed by the Fund's shareholders at the next General Meeting. (See Annex I) 30. Besides equitv. other forms of public support should to be used whenever appropriated to facilitate the launching of a particular project. The Commission is currently examining the possible role of several innovative means of support, such as subordinated lending and other forms of quasi-equity. contributions in kind, etc of the projects (eg Brenner tunnel, HST Lyon-Turin) the need for a more diversified loan supply, possibly involving the borrowing and lending powers of the Community, could become apparent and should therefore not be excluded altogether The Commission is also examining other ways of reducing the confidence gap by helping counter non-commercial risk, since this is identified by the private sector as a particular obstacle to its involvement. The Commission will report on its work in 1996. (see also Annex I) In view of the large financing needs of some Coordination 31. Although some European Economic Interest Groupings (EEIGs) have been established, there is still considerable reluctance to create project entities (see Annex IV) The Commission feels this is particularly the case for the PBKAL and the Brenner link. The lack of such entities is often an additional barrier to the development of PPPs 21 32. The unlimited liability of EEIGs makes them inappropriate for the construction phase of a project. The Commission's proposal for a European Company Statute, on the table in the Council for several years, would overcome this problem. If agreement cannot be reached quickly on this broad-ranging instrument, at least an alternative version, tailor-made for transport infrastructure should be adopted. Imputation of costs 33. Despite the important and constantly rising demand for transport infrastructure and related services, the transport sector appears unable to generate sufficient project related revenues. The role of direct user chaiges deserves closer examination, since this type of revenue would not only increase the scope for private involvement by increasing the financial profitability of the projects concerned, but would also help to foster competition between transport modes on a balanced basis, while improving economic resource allocation in general. User charges moreover allow the internalisation of all or part of the external costs related to transport. This will be considered further in the Commission's Green Paper on the Internalisation of External Costs ?? III. CONCLUSIONS AND RECOMMENDATIONS 34. The main conclusions and recommendations are to be found in the front part of this report. They are therefore not repeated here. However, some final comments are added 35. The Council and European Parliament should seek to adopt the transport network guidelines as quickly as possible. The TEN financial assistance regulation is based on the assumption that these guidelines are in place. Only for 1995 it contains a transitional clause which allows to use the TEN budget line without guidelines. The 1996 budget execution procedures guidelines for the selection of projects to be supported. require valid 36. The progress made so far in establishing the Trans-European Transport Network is remarkable but the progress has been slower than anticipated particularly on some priority projects. The momentum introduced by the Essen summit should be increased in order to bring these priority projects back to motion. The current methodologies under-estimate the economic return of international transport infrastructure projects ; this justifies to top up the Community funds currently available for TENs but also to top up the current budget allocations of the Member States to these crossborder projects. 37. Although the examination of individual priority projects shows substantial scope for enhancing the involvement of the private sector, very few public-private partnerships (PPPs) are being set up. Member States should reexamine the potential for PPPs and, where there are legal or administrative barriers to the implementation of PPPs, to make any necessary changes. The Commission will act as follows: in relation to PPPs the various ways to cope with non-commercial risks. Setting up of the Commission's "One stop" Help Desk Study Setting up a multi-annual framework for the financing of TEN-Tr projects covering public, private and Community funding (the Common Transport Infrastructure Promotion Programme" or CTIPP). Starting the discussion on the internalisation of external costs and more balanced for competition between transport modes by forwarding a Green Paper on the subject adequate project-related revenue generation, notably in the form of direct user charge 38 The efforts to link the Transport TEN to the networks of third countries should be continued, aiming particularly to foster public-private partnerships for projects of mutual interest. 23 Table 1: PROGRESS ON TRANSPORT PRIORITY PROJECTS the North-South High Speed Train (HST)/Comhined Transport For Verona) (450 MECU spent in 1995) work to upgrade for high speeds is proceeding as planned on a 200 km long section between Berlin and Nurnberg. Signalling work has been undertaken on the Inn Valley section in Austria. (Berlin-Nurnberg-Mùnchcn- For PBKAL (Paris-Brussels-Cologne-Amsterdam-London HST) (500 MECU spent m 1995) the high speed train links front Brussels to Paris and to the Channel Tunnel are progressing, with the building and upgrading of links underway and proceeding according to the revised schedule. For the Channel Tunnel Rail Liitk (CTRL) in the UK, two bidders have been shortlisted and a winner is expected to be announced by the end of the year. A Commission chaired working group was established for the PBKAL project, which has drawn up a report on the scope for financing the projecl. The Spaiush and French Governments have concluded an agreement to build the HST South (Madrid - Montpellier/Dax) (150 MECU spent in 1995) with the possibility of involving the private sector in the cross-border section from Figueras to Perpignan. A European Economic Interest Grouping (EEIG) has been established for this, under the supervision of an Intergovernmental Committee. The Dutch Parliament lias authorised the starting of the procedures necessary to obtain a building permit for the Bctuwe Railway Line for combined transport (80 MECU spent in 1995) This process should take about Iwo years, after which conslniclion may starl. The Italian and French Govenuncnts have agreed to undertake the necessan, studies lo compete preparatory work for the building of the cross-border section of the HST Lyon-Turin (40 MECU spent in 1995). the tunnei between St-Jean de Maurienne and Susa. An EEIG has been established to cam' ou' teclmical studies and an Intergovernmental Committee will start work in early 1996 on preparing a concession for this link The Greek motorways (290 MECU spent in 1995) have been under constniction since 1990 and arc progressing as scheduled. Tendering has been completed for about 40% of the PATHE branch and 25% of the Via Egnatia. Work on the 200km Igoumenitsa-Panagia link started this year. Several sections of these projects will be built by private concessions. The Cork-Dublin-Belfast-Larne-Stranraer conventional rail link (62 MECU spent in 1995) schedule and should be completed by 1999 is on The constniction of the Malpensa airport (Milan (1X0 MECU spent m 1995) is largely complete and its connection to the railwav network is progressing well For the 0resund fixed link. (450 MECU spent in 1995) work stalled on the tunnel under the Drogden Channel in July 1995. as did dredging and reclamation work. Work on the high bridge across the Flinle Channel and approach bridges for this is due to stan in Novcmher 1995 For the Nordic Triangle (. 160 MECU spent in 1995). major work has been carried out on the Swedish Malmo-Goteborg and Malmo-Stockholm sections Malmo-Gôleborg(E6). Malmo-Stockholm (E4) and Stockholm-Norwegian border (E18) is progressing. In Finland, the road sections east of Turku and the Helsinki bypass are progressing. Major upgrading of the rail line between Turku and Helsinki is underway and some work has started on other sections such as Kereva-Lahti. links. Work on t lie Swedish road rail For Traffic Management projects, work is in hand on the civilian satellite European Global Positioning and Navigation System (GNSS) and the first transponders have been ordered from Inmarsat. The implementation of the ground network started in Summer 1995. A bilateral agreement with our US partner, the Federal Aviation Administration, was successfully concluded at the end of October. An EEIG has also been established by the operators of the high speed train services, which is working on a common European Rail Traffic Management System. A radio-hased digital road traffic warning system (RDS-TMC) is shortly to be initiated, cooidinaled between 1 I Member States, wiih support from the TENs budget line. 24 Table 2: PROBLEMS CONf ERNING TRANSPORT PRIORITY PROJECTS Little progress has been made on a decision to build the Brenner base tunnel through the Alps, an essential part of the HST/combined transport North-South (Berlin to Verona, via Miinchen and Brenner). The economic benefits of this project will largely accrue to Southern Germany and Northern Italy, as most of the traffic will only transit through Austria. Austria's overwhelming interest is to promote a switch from road to rail for transit traffic, in order to limit the negative impact on the environment, however this interest is not sufficient to justify Austria's financing its share of the costs of the tunnel alone. Additional economic evaluation is being undertaken, wliich will not be completed until the end of 1996. This will be complemented by a Commission study on traffic forecasting for the whole Alpine region. The Austrian Government have created an infrastnicture management company, in which they would like to include international partners, but this is also proving difficult Most of the work on the PBKAL (Paris-Brussels-Kôln-Amsterdam-London HST) project is now seriously behind original schedules, which is having a significant financial impact on the completed French section, causing estimated losses lo SNCF of 300 MECU. The report of the PBKAL working group, chaired by the Commission, identified significant problems with the financing of the links to the north of Antwerp and east of Liege in Belgium, highlighting a financing shortfall currently of the order of 1 BECU. Using the figures identified for this working group, after taking into account UK support, there is also a shortfall It is thus clear that a lack of resources could create major financial of some 240 MECU for CTRL. problems for this project. The absence of European-level companies to build and operate railway infrastructure is emerging as a major obstacle to financing. The HST East (Pans-eastern France-southern Germany, including Luxembourg link) remains a project requiring substantial public support Under the current French legal system private sector involvement is ver>' difficult, however the French Government have agreed to examine the possibility o\' public-private partnership financing for the second phase. In 1994. the French Government officially requested a large Community subsidy for this project (530 MECU of which 360 MECU over the period 1995-99). A working group, established by the Commission and French Ministère des Transports, has reported that the current scarcity of resources in the TEN budget line will result in a project financing gap in the range of 200 MECU The Portuguese Government has indicated that it wishes to realign its section of the Lisbon-Valladolid motorway. On the Spanish side, progress is slow with major technical studies lasting three years still needed before construction can start Little progress has been made on the Ireland-UK-Benelux road link, in spite oi~ its crucial importance. Although the French and Spanish governments have agreed in principle to its construction, no date has yet been agreed for work to start on the HST South (Madrid - Montpcllicr/Dax). The Betuwe conventional rail/combined transport line has been delayed because of planning and political problems; previously due to start m 1995-96 it is now likely lo be two years later 2S Annex I FINANCING PRIVATE / PUBLIC PARTNERSHIPS General The Essen Council endorsed 1. the recommendation of the "Christophersen Group" confirming the objective of facilitating private/public partnerships and inviting Member States, the Commission, the EIB and the EIF to take appropriate measures to this effect. One of the the main reason for implementation of TENs. the PPP model was the need to accelerate introducing 2. The main obstacles to changing the current model of constructing and operating the priority TENs are the lack of financial profitability of many projects as well as a number of institutional and political barriers. Moving away from the traditional approach of public funding for major infrastructure projects is not easy. Project financing, the required financing set-up for PPPs, means that debt is secured on the project revenues and physical assets, rather than on the credit support of the project sponsor. The complexity of the legal and financial basis of PPPs, combined with familiarity with public financing schemes, put PPPs at an initial disadvantage in relation to the latter. As the public sector moreover absorbs risk in a non-transparent way, financial failure does rarely come into the open. This favours the widely-held belief that the cost of capital for state-backed infrastructure is lower than for comparative financing structures involving private risk-taking. Limited financial profitability is a common characteristic of projects in the transport 3. field. They therefore inevitably need substantial grant support, amounting to significantly more than allowed under Regulation 2236/95, which limits Community support to 10% of the total project costs The Community's Structural and Cohesion Funds provide an alternative source of support for projects in areas which qualify. For other projects, the grant contribution from the Community will remain marginal. National budgetary support is also becoming an increasingly scarce resource as Member States exert strict control over budgetary outlays in the run-up to monetary union. 4 The Community is gradually adjusting its financial support instruments to enable it to support this change in approach by participating in the financing of PPP operations whenever appropriate. However, the decisions to set up PPPs are taken at Member State level, where it is clear that the traditional inclination towards public financing is still verv much alive Member States should be urged lo renew their efforts to increase the involvement of the private sector in major transport infrastructure projects. The Commission has prepared a set of proposals on financing issues which may help lo go in this direction. Proposals for the financing of PPPs 5. Grants are the only form of support capable of filling the "profitability gap" in some PPPs. These grants should not necessarily take the form of cash endowments They can also consist of transfers of assets (land, track, equipment), on-going concerns, or pre-existing and profitable links of the same network Public subsidies should be determined by the expected 20 socio-economic benefits of a project, which for infrastructure projects will normally be above their financial profitability. Slates, regions, proportion Union-wide local authorities and of course in lo the benefits they expect to derive from projects. In the Commission's view the interests are not sufficiently represented should contribute the Community, appropriations. in budgetary 6. Equity capital is the foundation of the financing structure of any private firm, including infrastructure companies. Public equity does not raise the profitability of a project as such, but helps to absorb risk and attract private equity. A project's equity base is the prerequisite for attracting lending support in sufficient quantities, filling the "confidence gap" between investors and lenders. Public equity support also introduces new forms of flexibility in the financial structure of PPPs. Compared to grants, it allows for a certain return should the therefore, for the possibility of recouping funds and re-cycling project perform well and, them into other projects. The public sector can also set a cap on its remuneration, thus enhancing a project's private profitability. Member States might want to consider using pail of the grants from the TEN Budget line lo finance some of their equity holdings in priority projects. More generally, public authorities should try to increase their involvement as equity providers in PPPs, hence establishing true partnership relations with private promoters and investors. 7. Subject to agreement at its General Meeting in June 1996, the EIF will soon be able to increase its role as an equity provider to TEN projects. The EIF's involvement in equity operations at this initial stage will remain limited. One opportunity which the Fund might want to consider is the investment of equity in project development authorities, as the embryo of future project implementing bodies. The Community should strongly support the need for substantial amounts of equity from private and public investors is apparent this enlargement of the Fund's role, especially as increasingly in the framework of public-private partnerships 8. Some debt instruments (subordinated debt in particular) should be mentioned as valuable means of providing risk-bearing funds. Subordinated loans (or quasi-equity in general) allow for greater risk exposure than senior debt and therefore are a useful alternative to equity in a number of instances. Subordinated loans notably offer the advantage that managerial control remains in the hands of the equity providers as long as debt is serviced This can be useful if the public sector wants to share part of the risks without interfering in the management of the project in question The use of various forms of quasi-equity should be encouraged, wherever appropriate, to favour particular forms of co-operation between the public and the private sector. The new in the form of subordinated debt and quasi-equity m favours support T'inancial Regulation general e. g. in the form of interest subsidies or of subsidies the cost of fees (whether extended by the EIF or others), etc. guarantee towards meeting 9 At present the EIB is the main loan finance provider for the priority projects. In a few specific instances, it might however prove useful to seek a diversification of the sources of 27 loan supply. The huge financing needs of some of the mega-projects (e. g. Brenner tunnel, Lyon-Torino, etc. ) might provide a rationale for this approach. In spite of the mixed views expressed so far by the Council on this option, the use of the borrowing and lending powers of the Community should not be excluded altogether as a complementary form of Community loan support. 10. In a PPP, risks should be borne by the parties best able to control them. Private infrastructure promoters agree on the crucial importance of administrative and public policy risks, such as cancellation of the project, planning delays or delays in passing legislation, legislative changes, changes in safety or other legal standards. Such risks in general cannot be borne by the private sector. The difficulty is compounded in the case of cross-border projects by the presence of different national authorities and legal systems. The Commission acknowledges adequate solution. risks and possible ways mechanism promoters and public authorities, the relevance of those risks and the importa? ice of finding an non-commercial insurance or guarantee between them, notably a Community improved legislative steps at the appropriate contractual agi-eemenls level, etc. It will therefore undertake a comprehensive study on against non-commercial to cover risks, 11. The frequent lack of financial profitability in transport infrastructure projects is not so much because of the particular nature of the transport sector (demand for traffic is strong and on the increase) but rather the apparent inability of the sector to generate sufficient project related revenues. Direct user charges increase competition between, and within, transport modes and allow for the internalization of some of the negative externalities linked to transport. More generally, they improve the efficiency of the allocation of economic resources. The recommendation of the Cannes European Council on "establishing fairer competition between modes of transport" pointed this way and the adoption of the "vignette" Directive 93/89/EEC on 25. 10. 93 constitutes another step in this direction. (e. g. road tolls, etc. ) Charges based on the actual use being made of (he infrastructure should become increasingly used to develop PPPs, notably because project related revenue greatly budgetary resources. involvement, while freeing scarce the potential for private increases 12. Risk evaluation and transaction costs among the different public and private parties involved in a PPP could be reduced by improving the provision of factual knowledge so that planning and negotiations are carried out on an objective basis. this respect hi frequently observatory. up-dated the Commission could consider ways of improving the availability of statistics traffic statistics, among which the setting up a traffic 28 Annex II TENs AND COMPETITION IN THE TRANSPORT SECTOR 1. The creation of the trans-European transport network will involve, at least for some of the links, calling on private investors to assist, either by themselves or together with the public authorities, in designing, funding, constructing and, where appropriate, operating the infrastructure. 2. Organizing infrastaicture access so as to open it up to a range of users offering competing transport services or services in different market areas is one way of helping to obtain funding for the infrastructure as it will increase the income derived from its use. 3. The public authorities and private operators involved in projects often feel that the application of Community competition rules acts as an impediment to the development In order to assess exactly what kind of difficulties are being faced by of these projects. the promoters of projects, talks were held with representatives from railway companies, the Ministries of Transport, banks, a specialized lawyer and promoters of existing infrastructure and proposed infrastructure projects 4 These talks have shown that there are three types of problem a dearth of information on the part of the people concerned, concern about the length of the procedures to be followed; the basic question of how to reconcile financial profitability and freedom of access to infrastructure. THE DEARTH OF INFORMATION Outline of the problem 5 The talks held by the Commission have above all revealed that there is a general lack of information about Community law on the part of the promoters of infrastructure The design of such infrastructure generally continues to be based solely on the legislation applicable to Community legislation from the initial stages of the projects. in each Member State concerned and fails to give due importance Another point to emphasize is the general confusion between competition rules 6. and Community, and/or national, rules on public procurement As a result of this state of confusion, some promoters wrongly believe that 7 compliance with the specific rules on public procurement suffices in order to be in conformity with Community law Solutions proposed The Commission is prepared to help to make more information available for all 8 the public authorities, transport parties concerned with the creation of infrastructure companies, banks and private investors This information must cover both the basic rules 1°\ applicable to the Member States and to companies and the procedures to be followed in order to be granted exemptions. The Commission departments concerned therefore need to be involved as early as possible in the projects. Project promoters should therefore take the initiative to contact these departments as early as they can to obtain all necessary information and advice. The Commission guarantees total confidentiality in its examination of these projects. For any leaders can contact Directorate- General IV or the Commission's "One-Stop Help Desk" (Fax 32 2 295 65 04). information about competition rules, project 9. Project promoters should also contact their national competition authorities who will be able to provide them with all necessary information about competition rules THE LENGTH OF THE PROCEDURES TO BE FOLLOWED 10 Outline of the problem Project promoters would eligibility of their project within a reasonable period of time like to receive the Commission's formal position on the However, the fact is that there are certain procedures which have to be followed by the Commission before it can adopt a formal decision and that these take time. 1 I. Solutions proposed There are two possible solutions: It is extremely useful if the parties involved contact the Commission departments 12 concerned before signing agreements. This is often done when the Commission is handling important business and should avoid difficulties arising after the notification of the agreements and thereby slowing down the processing of applications It will also ensure that the Commission departments concerned are fully informed about the very start and are therefore able to process the applications more projects from rapidly 13 It is also necessary for the parties involved to be able to predict, with a reasonable the Commission degree of certainty, when they can expect to receive a reply from Following the notification of agreements on the funding of TENs, and provided the parties have contacted the Commission departments before finalizing the agreements, the Commission will do its utmost to take a final decision within a maximum period of six months information available prior to notification of the agreements This presupposes that the Commission has all the necessary THE RELATIONSHIP BETWEEN FINANCIAL BALANCE AND T HE RIGHT OF ACCESS TO INFRASTRUCTURE 30 14. Outline of the problem The infrastructure in question requires a high level of investment, repayable over very long periods, and with a generally low level of profitability. Project promoters must therefore obtain the maximum of guarantees as regards the this, 15. utilization of infrastructure operators can follow either of two approaches: the payment of user charges. infrastructure and To do the either wait until the infrastructure is complete before offering capacity to transport companies wishing to provide services using the infrastructure, or reserve capacity, at the start of the project, for transport companies which for their part undertake to pay user charges None of the people met during the present study expressed the wish for all of the 16. infrastructure capacity to be reserved for a single user This kind of reservation would limit the sources of income from the infrastructure. On the other hand, all of them stressed the fact that the infrastructure operator 17 should be able, if he so wished, to reserve at least part of the capacity for transport companies which contribute to the financial balance of the project There is also the question of the use of the transport equipment bought by companies which are also project promoters 18. The project promoters are also aware of the fact that the reservation of capacity over a long period is contrary to the principles of freedom of access to infrastructure and competition. 19 Solutions proposed 20. Community legislation does not allow all infrastructure capacity to be reserved for a single company or group of companies but does not prevent an operator reserving capacity for a number of companies which are able to operate transport services in competition. 21. The specific features of each project have to be taken into consideration when assessing the lawfulness of the capacity reservation agreement The following general criteria nevertheless apply infrastructure operator wishes to give transport companies the If an opportunity of reserving capacity from the very start of the project, this opportunity should be proposed to all Community undertakings that may be interested The capacity reserved for a company should be proportional to the direct or indirect financial commitments entered into by that company and should correspond period to the operational requirements planned over a reasonable A new infrastructure is generally not congested as soon as it is put into seivice. A company, or a group of companies within the meaning of Article 3 of Directive 91/440/EEC, should therefore not have all of the capacity available reserved for it. Some of the capacity should remain available so as to allow competing services to be operated by other companies. The companies awarded user rights may not object to these rights being withdrawn if they are not used The duration of capacity-reservation agreements must not exceed a reasonable period of time, to be agreed in each particular instance 32 Annex HI PUBLIC PROCUREMENT RULES FOR TRANSPORT TEN At Community level, existing public procurement rules lay down a framework for (1) selecting, on a competitive basis, the contractors for the execution of a given piece of trans port infrastructure. Either of two distinct sets of rules apply, Directives 93/37 for public authorities or 93/38 for the so-called utilities. The aim of the Directives is of course not to be an obstacle but to ensure value for money under the best possible conditions. (2) In order to clarify the possibilities offered by the existing legal texts with regard to their application in TENs and public/private partnerships, the Commission examined the compatibility of existing public procurement rules with: i) the technique of project financing (concessions) that allows the participation of the private sector on a risk basis in building and operating infrastructure projects in partnership with the public sector; ii) the need to associate the private sector as early as possible in studying the fea sibility of an infrastructure project and participating in its conception. The conclusion drawn is that the Directives do permit such activities and that conse (3) quently no legal action is required. The Commission view is that existing provisions on concessions under Directive 93/37 are an adequate framework for the participation of the private sector in the award of concessions by public authorities in the TENs priority projects. As for pre-tender discussions the Commission view is that, in so far as effective competition is guaranteed in the tender phase, the principles of Community law do allow such prelimi nary technical discussions (4) In order to inform all parties concerned about the possibilities for public/private sector co-operation offered by public procurement rules more detailed analysis of this issue is in cluded in the Commission's Communication to the Council and to the European Parliament on Public Procurement in the European Union (reference to follow). The Commission will issue specific guidelines as appropriate in the course of 1996. In order to reduce any misunderstandings and delays in projects related to public (5) procurement rules, it is recommended that for the priority projects Commission services are consulted before the publication of tender documents. For this purpose a "One-Stop Help Desk" (fax: 00 32 2 295 6504) has been established in the Commission to channel such requests. Annex IV PROJECT AUTHORITIES FOR TRANS-EUROPEAN NETWORK PROJECTS 1. The Christophersen Group and the Essen European Council agreed that European level legal vehicles would greatly facilitate the coordination and financing of complex trans national infrastructure projects. Ideally, a company should be created to own the project - at least temporarily, and to implement and manage it. The Project Authority for a cross-border infrastructure project should consist of four 2. elements: a project Agreement between the Member States involved a project Commission consisting of delegates of the Member States a project Promoter a project Company which acts as infrastructure manager The project agreement will normally ^e a memorandum of understanding during the promotion phase, but may need to be a treaty during construction. It should cover the project definition and details such as a description of the work to be undertaken, a timeschedule, and the financial and organisational arrangements. The project commission makes the day-to-day decisions during the execution of the project, keeping in contact with the national administrations and delegates. It must be empowered to do the necessary for granting the concessions It may be appropriate to delegate part of its power to the project promoter and to the project company at some stage. The project promoter, could be an association or better a EEIG, involving at least all the public sector parties. Since large infrastructure projects are mostly carried out in the public domain, political backing is crucial for their successful implementation. During the promotion phase the project promoter will initiate first technical, economic and environmental studies, particularly on the economic viability and financial feasibility of the project. During the execution of the project it acts as moderator and facilitator for the project. For railway The project company is a business undertaking which acts as an infrastructure in Directive infrastructure such an entity manager. 91/440/EEC as "any public1 body or undertaking responsible in particular for establishing and maintaining railway infrastructure, as well as for operating the control and safety system" The legal form of the project company may change at the different stages of a project, it may start as a EEIG, but for detailed design and construction it must be a public company limited by shares, a "société anonyme" or an equivalent form, such as that foreseen by the European Company Statute is defined "11 îe C o m m i s s i on b e l i e v es thai p u b l ic private p a r t n e r s h ip entities cm be c o n s i d e r ed as p u b l ic b o d i es l'or lins p u r p o s e. ;LS t h ey fulfil a publie s e r v i ce by p r o v i d i ng r a i l u ay infrastructure 34 On the more familiar national level, the legal framework and the government fulfil the role of the agreement and the commission, while the railway companies could undertake the role of project promoters and project management companies. 3. In most cases the details of the priority projects are set out in a memorandum of understanding or in a treaty. Also, Intergovernmental Committees or working groups have been created for most projects, so the basic coordination mechanisms are in place. However, there are still problems with these arrangements as the delegates have to get endorsement from their respective administrations. The Committees or working groups do not have the power needed to effectively manage the projects. 4. The Commission notes with satisfaction the first signs of cross-border coordination in the creation of a series of EEIGs (European Economic Interest Groupings) for the promotion of some transnational projects (see main report, paragraph 15). Railway companies seem to have recognised the advantages of cross-border coordination and, together with regional authorities, are taking advantage of the possibilities provided by this particular legal vehicle for carrying out preliminary economic and technical feasibility studies. 5. The provisions of the EEIGs do not meet the requirements of the execution phase of large scale infrastructure investments because of the unlimited liability of the project owners in such structures. This is a serious drawback as no other legal vehicle exists at the Community level that could be used in the execution phase of trans-national investment projects. Therefore, investors have to seek solutions through national legal structures (as in the case of the Channel Tunnel) or rely on inter-governmental co operation (PBKAL, Brenner, most HST projects). However, such structures are usually expensive to set up and do not meet all the essential criteria such as protection for shareholders, limited liability of founders and the legal security of the instrument. To endow the Community with effective tools for undertaking cross-border investments and for attracting private investors in a public/private partnership. The Council should adopt, without further delay, the proposal on the European Company Statute. The benefits of such a statute would not only be felt in transport projects such as the high speed train and freight railway networks, but also in other TEN projects in the area of energy and telecommunications. 35 CONNECTING WITH CENTRAL AND EASTERN EUROPE AND THE MEDITERRANEAN BASIN A. CONNECTING ENERGY NETWORKS TO THIRD COUNTRIES The role of the Union 1. The energy sector has been recognised as a major area for economic cooperation with third countries, both for reasons of European integration and because the Member States are largely dependent on external energy sources, particularly of gas, and it is desirable to increase the number of such sources in the interests of the Union's security of energy supply. Development of Union and other European energy production and transmission capacities is, indeed, one of the principles of the European Energy Charter. 2. TEN energy priority projects and other common interest projects do take account of the need of the energy networks of the Union to be connected with those of third in the TEN Energy Guidelines for the countries. There is specific provision procedure to be followed in order for such projects to be recognised as "mutual interest projects" by the third countries concerned, within the framework of existing agreements between the Union and such countries. *o* 3. In both the electricity and natural gas sectors, the studies supported under the PHARE and TACIS programmes, in conjunction with those that will be supported from 1995 under the Energy TEN programme where projects of common interest are concerned, will lead to the selection of priority network projects for the third countries concerned. Electricity networks 4. The development of electricity interconnections with third countries is a priority for the Community Guidelines, there are projects for the interconnection of the Union with the Countries of Central and Eastern Europe including the Baltic Sea and the Balkan regions, the CIS, the EEA countries, Switzerland, the countries of North Africa and the Mediterranean. 5. In the wider European context, test connection of the Centrel (Poland, Czech Republic, Slovakia and Hungary) and (Western European) UCPTE electricity grids was successfully carried out in October 1995. This represents an important stage in the integration of the European electricity grids. Further extension of the UCPTE grid towards the Balkan countries and the interconnection of the extended UCPTE grid with the CIS countries are the subject of studies under the PHARE and TACIS programmes In th Mediterranean area, a submarine electricity connection between Spain and Morocco is being established, and in the Eastern Mediterranean electricity connections between Greece and Turkey and between Turkey and Syria are also envisaged. 36 Natural gas networks 6. Where natural gas is concerned, interconnections have been or are being made with third country gas grids so as to allow either the transmission or the transit of gas to the Union. This is increasingly the case with Norway, the countries of Central and Eastern Europe and the CIS, and those of the Mediterranean, in particular North Africa, with pipelines from Algeria through Tunisia to Italy and from Algeria through Morocco to France. Studies of East-West gas interconnections in Europe and of regional projects of interest to Central and Eastern European and/or Union countries have been and are being made under the PHARE programme. to Spain and on B. CONNECTING TRANSPORT NETWORKS TO THIRD COUNTRIES (a) CENTRAL AND EASTERN EUROPEAN COUNTRIES Infrastructure development 1. Connecting Trans-Europeah-Networks to the Countries of Central and Eastern Europe not only serves a short and medium term objective of stimulating economic growth and employment, but also helps to integrate their economies with that of the Union. 2. An essential element for the accelerated improvement of infrastructure is the gradual harmonisation of legislative and regulatory mechanisms which are applied in the region. The adoption by the CEC's of the "Acquis communautaire" is moreover essential for their integration into the Union. The Union is tackling this process of "legislative approximation" through three complementary processes: , the implementation of the Europe Agreements ; the negotiation of sectoral market access agreements ; the White Paper on the extension of the Internal Market legislation to the Central European countries. The aim of these processes is to establish structures that prevent distortion of competition to promote in emerging international trade and cooperation. telecommunication and energy markets and transport, 3 The potential investment level in Trans-European Networks is enormous. The full development of main international road transport corridors1 for Central and Eastern Europe is estimated to require funds between 30 to 45 billion ECU. Upgrading main international railway lines' to Western European standards is estimated to require a further Community support is geared lo the nine "Crete Corridors" in line with the conclusions of the second Tan-European Transport Conference. Crete March 1W4 37 25 to 30 billion ECU. Such a level of investment reaches not only beyond the absorptive financial and institutional capacities of the Central and Eastern European Countries themselves, but also beyond the availability of external finance. Pressures on strained national budgets makes the financing of 4. infrastructure increasingly problematic. While International Financial Institutions are undoubtedly called upon to provide a major share of the financial requirements for the modernisation and upgrading of transport systems, the sheer scope of the required financial resources is such that supplementary arrangements and non-conventional financing with private sector involvement will be required. 5. The Trans-European Network approach adds a particular dimension to this process as a significant part of the economic viability of individual projects stems from their integration into the overall network. Individual links need to be appraised from a network perspective, extending far beyond national borderlines. The network approach introduces considerable opportunities as the profitability of region-wide networks exceeds the profitability of the individual links constituting the network. As different legal and regulatory frameworks have 6. and as a supplementary level of coordination ^between different countries arises, particularly for cross-border projects, additional difficulties arise. Thus transnational links often suffer from different national preferences and priorities on each side of the border. to co-exist Because of interrelations between projects belonging to the same network, delays in the realisation of certain key links have a significant impact on the revenues of already existing links through revenue shortfalls. A concerted, coordinated and accelerated build up of the network, minimising leads and lags in the realisation of key links, is therefore the economic benefits for all parties concerned thus bound to improve significantly enhancing the possibilities for a fast realisation of the project. 7. Especially in the light of the economic situation in the Countries of Central and Eastern Europe it is essential that the planned infrastructure should be closely adapted to in an optimal way. actual needs Development of Trans-European-Networks in Central and Eastern Europe must therefore be based on a realistic assessment of infrastructure demand. the scarce available resources in order to use 8. Projects offering the highest rate of return would rather involve the maintenance, rehabilitation and upgrading of existing infrastructure than the construction of brand new motor ways and high-speed rail lines. There will of course always be justification for the need to construct some new infrastructure for instance the removal of bottle-necks such as urban by-passes, border crossing points, a few selected stretches of road where the traffic is particularly heavy and where existing infrastructure is dilapidated. The role of the Union The Treaty of European Union stipulates that in the field of Trans-European- 9. Networks "the Community may decide to cooperate with third countries to promote projects of mutual inter-operability of networks. " The Association Agreements with the countries of Central and Eastern Europe foresee that a priority area of cooperation shall be "construction and modernization, on major routes of common interest and trans-European links" of transport infrastructure. to ensure the interest and in Copenhagen The European Council in June 1993 emphasised 10. the Community should support the development of infrastructure networks in Central and Eastern Europe mainly through the temporary lending facility of the European Investment Bank. At its meeting in Essen in December 1994, the European Council decided on a comprehensive strategy for preparing the associated Countries of Central and Eastern Europe for accession to the European Union. The Pre-accession Strategy highlighted that the integration of the associated countries into the Trans-European-Networks is a key element in strengthening their economic and political ties to the Union. that Community support is geared to the nine "Crete corridors" in line with the 11. conclusions of the Pan-European Conference in 1994. Within 12. the framework of G24 coordination, Memoranda of Understanding between the various Governments and the Commission have been signed, to promote the coordinated development of and Helsinki-St Petersburg-Moscow-Kiev-Bucharest-Plovdiv-Alexandroupolis corridors. the Berlin-Warsaw-Minsk-Moscow A structured dialogue between Transport Ministers from central and eastern 13. European countries and the Council, initiated at a joint meeting on 28 September, will continue to assess needs and agree projects of mutual interest. PHARE The Council emphasised technical assistance and 14. limits to provide authorised additional funds for capital expenditures for the development of infrastructure of community interest. the Phare Programme within that Phare should offer the existing budgetary the Commission Following the Essen Council has developed Phare in the 15. direction of a Multi-annual financial instrument and significantly increased the investment focus. Today up to 25 % of the total Phare appropriations can be made available for the co-financing of infrastructure projects notably related to the development of Trans- European-Networks. Multi-annual investment programmes for the development of Trans- European-Networks covering the period 1995 to 1999 have been negotiated with all the Partner Countries with the close involvement of the International Financial Institutions and notably the European Investment Bank. 16. The Phare contribution for the co-financing of infrastructure projects related to the Trans-European Transport Network is planned to increase to around 190 MECU in 1996. The corresponding figures in 1993, 1994 and 1995 were 30 MECU, 75 MECU and 1 19 MECU. Balkan Region 17. The Union attaches great significance to improving the networks of the successor states to the former Yugoslavia in an integrated Trans-European framework taking into account Community priorities and to promoting cooperation between these states towards that end, as soon as political circumstances permit. 39 (b) THE EURO-MEDITERRANEAN PARTNERSHIP At the Essen and Cannes meetings, the European Council proposed a new approach 18. to the Union's Mediterranean partners. The economic dimension of the Euro-Mediterranean partnership provides for the Mediterranean partners to be integrated into a Euro- Mediterranean economic area. The aim of opening up the Mediterranean countries economically and integrating them into the European (EU and non-EU) economy presupposes that these countries have efficient economic infrastructure systems, in particular in the transport, energy and telecommunications sectors. The linking of the trans- European networks in these areas to the corresponding infrastructure in the Mediterranean Basin (or their joint development) is therefore at the heart of the issue of the Euro- Mediterranean partnership. The draft Declaration and work programme adopted at the Barcelona Conference 19. (27-28 November) specifically refer to this in the sections on transport, telecommunications and energy. Although, because of the level of development, the high-speed train networks do not have any great potential in the Mediterranean region, the connection and extension of the road transport (motorway, ports), telecommunications and energy networks are nevertheless essential for the integration of the Mediterranean economies into the European economy. v 40 JOINT ENVIRONMENTAL PROJECTS (JEPs) AN ENVIRONMENTAL "NETWORK" APPROACH FOR WATER AND WASTE 1. 2. 3. 4. At the Essen European Council the Heads of State or Government have taken note in selected sectors of of the potential relevance of a network approach environmental protection, have invited the Commission, the Council and Member States to examine the possibility of establishing guidelines for environmental network infrastructure and the obstacles to environmental infrastructure, stressing the use of existing financial instruments in support of possible future guidelines and priority projects. To follow up the Essen mandate, the Commission established a High Level Working Group with representatives of the national environmental departments. The Group convened four times. In addition, the Commission organized in October a workshop on waste and one on water at which were attending public and private competent experts and authorities. The network approach as it was envisaged in the White Paper on Growth, Competitiveness and Employment, was not the result of theoretical or conceptual considerations. It was conceived to solve problems in a practical manner. In fact, the network approach the realisation of certain is aimed at ensuring infrastructure investments in which the economic benefits have an impact which is spread beyond their immediate geographic location. These are the type of investments which are essential in order that the potential of the internal market be attained, but which are hampered by administrative and financial constraints. it In the transport, energy and telecommunications sector, these investments aim at ensuring the interconnection of existing networks in order to fully develop their potential. In the case of the environment, such investments are aimed at ensuring an effective solution to the problem of resource management and/or pollution which because of its cross border dimension gives rise to frictions and constrains productive activities or risks being a direct or indirect obstacle to free exchange within the internal market. 5. In most of these cases, the difficulties which slow down or constrain investment result essentially from: - the difficulty of ensuring an equitable and balanced sharing of the costs and benefits in relation to the territorial impact of the problem - the difficulties in promoting an operational and effective partnership between the many public and private sector actors involved - the difficulty of taking action at the operational level in a context characterised by significant administrative, regulatory and cultural differences - the difficulty to overcome the decentralized nature of responsibilities for the design, financing and implementing of the relative small size environmental projects 40 CK 6. 7. 8. 9. On the basis of the analysis and deliberations on future prospects conducted by the high level group as well as the workshops, the Commission considers that environmental investment should benefit from a similar support as that which is given to investment in the transport, energy and telecommunications fields. In effect, environmental investment is important in order to fully exploit the potential of the internal market. As well, the modalities applied in a network approach are equally applicable in the environment as compared to the other sectors. in initiatives to define level group agreed Taking into account the specific characteristics of the environmental sector, the high this context as "Joint Environmental Projects (JEPs) The latter is defined as "a course of actions by Member States acting jointly or in coordination to develop a project or prepare the development of a project of common interest for environmental protection and improvement within the Union". These projects should ensure or accelerate the realisation of investment which is necessary to fully exploit the potential of the internal market. In this perspective, the approach aims at ensuring a more efficient and effective use of both administrative and financial resources. In their implementation, JEPs will promote and enhance the development of new and clean technology. The high level working group established selection criteria for JEPs (see Annex B. 2) The two workshops came up with concrete project proposals, some of which are in an advanced stage of preparation and could be launched within a relative short delay (see annex B. 2). Both the high level group and the workshops underlined that if the projects are to be successfully launched an administrative and financial incentive should be provided. It involves not only a more optimal use of existing financial instruments, but also the inclusion of JEPs in those which are up to now limited transport, energy and to telecommunication. infrastructure projects the field of in 10 In the opinion of the Commission the next step in this dossier implies selecting and testing implementation modalities. implementing a certain number of pilot projects aimed at RESULTS OF THE ANALYSIS AND DELIBERATIONS ON FUTURE PROSPECTS I. JUSTIFICATION OF ACTION A. HORIZONTAL CONSIDERATIONS A joint approach will optimize the cost effectiveness of the investments, increase the environmental benefits and the investment. Other advantages including acceleration of the investment, achievement of higher standards and capacity harmonisation can be availed of. It will create the conditions for increased employment and coherence at the Community level in the thus the overall economic viability of 41 implementation of certain environmental interests. Joint Environmental Projects are not per se aiming at the fulfilment of the obligations which derive from existing Community environmental legislation. 12. Promoting JEPs could give rise to the following more specific economic and financial benefits which could outweigh economic costs: (a) Concertation of existing environmental technology would be encouraged and, therefore, economies of scale could be more rapidly available at the research and development/application stage, on the design of projects and on the suppliers side. (b) New environmental technologies would be encouraged, leading to the creation of new domestic and export markets ( market scale for the EU is expected 20 billion ECU/p. a, worldwide 200+ billion ECU/p. a. by the end of millennium ) (c) Reduction of financial costs, both capital and operating. A coordinated and better planned investment reduces the risks of failures and delays. A meaningful packaging of the administration cost and hence the spread required from the financial institutions. Further cost reductions can be achieved by avoiding duplication, reducing logistical costs, developing markets for quality' recycled materials (waste) etc. small projects reduces relative B. WASTE. 13 A large and continually increasing quantity of the waste produced in the EU Member States ( in total: 700 million tonnes of which industry 30% and municipal waste 17% ) is still discharged without any form of recovery or environmentally friendly treatment. Only some Member States have developed some infrastructure to manage their waste. Many suffer from an overdependence on (older) landfills (70%) as a disposal route with its negative environmental impacts, like pollution (methane emissions). of ground water and surface water, greenhouse effects Contrary to the U S A, there is still limited experience in the EU in providing integrated waste management services. Alternatives, in particular recycling and incineration with energy recovery , will become crucial elements for a greater sustainability in an overall process of waste minimisation. 14. During the workshop on waste (Brussels, 19/20 October. 1995) the justification for remedy a great acting jointly derived from the strong need information gap on both waste management techniques and markets for the recovered products. Taking account of the different degrees of development in and demand for environmental infrastructure in the different regions of the European Union, the implementation of JEPS would contribute to a reduction of these differences and hence strengthen cohesion between the different areas. to effectively 15. Another justification for JEPs which is particularly relevant in the field of recycling is related to the desirability of reaching critical volumes of waste in order to make projects economic viable and to reduce logistics costs e. g. in waste collection by developing networks of installations JEPs create an opportunity for developing projects involving both the private and public sector. Furthermore , JEPs will stimulate, on a voluntary basis, a better integration of environmental considerations in the various industrial sectors. 42 16. At the workshop four different categories of waste flows (plastic, electronic consumer goods, " end of life " vehicles and the issue of heavy metals) were selected for examination by participants representing experts from private and governmental bodies. The workshop identified some 30 projects within the different categories. The main conclusion of this workshop was that JEPs respond to a clear need. It is worthwhile necessary partners/actors together and by creating the means for realization. to proceed with JEPS through bringing Annex I gives an overview of the most promising examples. C. WATER: in economic growth due 17. To an ever increasing extent, different areas within the European Union are confronted with constraints shortages (Spain,Islands etc). Other areas face a quality problem derived from heavy use and the (repeated) problems of flooding. Other discharges or have experienced technological and institutional inefficiencies in water management like high levels of water wastage (leakage of treated (potable) water is estimated at around 15% or 3 billion ECU), relative low recycling rates in manufacturing industry or limited institutional capacity due to a high degree of fragmentation are demanding different and in some cases joint responses for a more efficient use, control and clean-up of water. to water 18. Water policy is an obvious area for international cooperation and therefore for Joint Environmental Projects. Rivers, lakes and ground water aquifers do not respect international boundaries and, indeed, rivers, lakes and seas often actually delineate such boundaries. Pollution from one Member State will often impact on another and water abstraction from one Member State might lower water levels in their neighbour's territory. International cooperation should therefore be the norm in this policy area and, increasingly, this is so. A number of international conventions and agreements cover the management of these joint resources. Additionally, the Commission is considering a more institutionalised approach to the question of river management which would require cooperation in water management (quality and quantity) on a river basin basis. 19. JEPs are mechanisms with a joint approach to common problems. In other words, rather than have each Member State work separately on the solution to a common problem in the design or construction of their physical infrastructure, they could cooperate in the exchange of ideas and share in the costs in developing appropriate technologies and monitoring and setting up pilot projects. A wide range of JEPs can be established dealing with infrastructure issues. They will not necessarily involve support for the actual construction of the physical infrastructure where there would appear to be little to be gained from a joint approach. Rather JEPs should facilitate that the Member States can undertake measures more quickly, more efficiently or reach more ambitious targets. 20. The Water workshop (Copenhagen, October 11/12, 1995) acknowledged the importance of a River Basin Management (RBM) as an overall guiding principle in water management. Covering more than two Member States River Basin Management falls naturally within the concept of JEPs. Coordinated planning and management for environmental and economic reasons. The Rhine and the Elbe Commission have (quality and quantity) of shared river basins is essential 43 produced considerable improvements in the water quality. As regards the quantity aspects new arrangements have to be made. The projects which were identified by the Workshop dealt with the different aspects of rehabilitation, maintenance and use of the larger shared river basins in Europe. Referring to the floods in the different Member States a European " flood alleviation and wetland restoration " project could be considered as a Joint Environmental Project. For the other shared European river basins it seems natural to learn from the existing bodies. The formation of an " umbrella network " of river basin commissions could be the cooperative structure under which relevant JEPs projects could be developed or implemented. 21. For the Water Workshop four different target areas were selected : 1) Water (supply) management including reduction of water demand; 2) Waste water treatment and sewage disposal; 3) Port waste facilities; and 4) River basin and surface water(resources) management. The workshop identified series of projects distinguishing two categories of projects examples: a) Projects which include a distinct physical network, b) Projects which lead to (better, cost saving and/or faster) improvements in environmental infrastructure. Annex U gives the most relevant project examples. 44 II CRITERIA TO BE RESPECTED 22. As mentioned above the ad-hoc Group has shaped and defined the networking' approach into Joint Environmental Projects in order to better define the needs, the scope and the objectives of the possible environmental undertakings. A set of nine guiding criteria ( See annex EQ ) provides a framework, in which the various objectives of JEPs should be achieved. They cover in part descriptive, essential and desirable factors: - strengthening joint and more coordinated actions between Member States (i. e. a minimum of two), possibly involving non-Union countries when significant benefits could be accrued within the territory of the Union , as an answer to important environmental problems in the water and waste sectors. - enhancing the relationship between environmental effectiveness and economic efficiency (added-value). - stimulating the development and the implementation of new technology under - adequate conditions of scale intensifying, where opportune, public/private partnerships in financing and implementing the projects and - Obviously, assisting in achieving in a more coherent way agreed Community policies and objectives. 23. The results of the two workshops made it clear that these guiding principles/criteria were an appropriate basis towards the realization of JEPs. It became evident that a clear need - in the waste workshop recognized from both the public and private sector - for JEPs and that a range of the environmental infrastructure investments , in view of cost-effectiveness considerations, should only be envisaged in a joint approach. HI CONSTRAINTS TO BE ADDRESSED 24. There are some constraints to the further development of JEPs. In many of the instances there are linked to the specific institutional and administrative situation of the environmental sector. The main impediment which has been experienced is the decentralized nature of financing and implementing of environmental infrastructure projects. In particular, the water sector which is very fragmented is more reluctant to cooperate. responsibilities the design, for 25. With so many different players involved, the following difficulties could be encountered: - a lack of a focal point for JEPs further development and promotion. - a deficient structured flow of information (availability and quality of data for those potentially involved; different levels of experience/sophistication of the local/regional authorities, the organisational gap between the central and more regulatory oriented government bodies and the more implementation and operationally oriented local/regional authorities; different approaches between Member States on the actual involvement and potential role of private operators and vice versa ; a lack of will/incentive to act jointly. 26 Other constraints are of a more regulatory nature partly due to existing regulation but also in some instances due to a lack of regulation: e. g. different and sometimes 45 opportunistic interpretations of existing Community or national waste regulations transboundary transport. There is a need of ("proximity" principle) complicates certain (quality) standardization of waste treatment and recycled products. Harmonization in waste handling , standardization and certification will result in , secondary raw materials and final products more homogeneous facilitating an increase in markets. fractions 27. Further examination might be necessary into the question as to whether price differences between the Member States for water and waste disposal inhibits the cooperation or the joint undertakings between the Member States. 28. On the financing of JEPs the following can be said. JEPs are by definition (see criteria) more likely to yield higher benefits/profits than if the same problems were treated separately by different national operators. In these circumstances it will be of continuing difficult a priori to justify on economic grounds any element for environmental grant/subsidy per se infrastructure (Community and national) are of course under heavy pressure from the demands of Member States implementing EU directives. With regard to investment finance from public sources there is always an opportunity cost to be reckoned with, whatever the nature of the investment. The existing sources of finance 29. The very organisation of JEPs involves inherent difficulties which must be faced and solved by the partners if the project is to get off the ground. As stated above, these involve the added complications of different standards, planning procedures, regulations and pricing etc. There is therefore a case to request some incentives to offset these up-front constraints 30. to prompt and accelerate the process, an It is clear that if the realization of JEPs producing significant economic and environmental benefits can be more rapidly mobilized by means of a financial incentive for (additional) up-front costs is justified i. e. by financing (pre-) feasibility studies, pilot projects, demonstration plants etc. Once the "added value" in terms of economic efficiency and environmental effectiveness of the projects can be determined in more precise terms, the necessary financial engineering at the subsequent realization stage will be much facilitated. incentive financing 31. At EU level, several existing financing instruments could, in principle, kick-start the process Most suited for the immediate necessities of JEPs incentive financing could be the financial instrument for the environment (LIFE), which already allows for demonstration projects, awareness raising projects and technical assistance projects. LIFE, though, imposes restrictions as to the financing of feasibility studies and "typical infrastructure projects". Besides, the overall amounts available and the ceilings for the different eligible activities would allow only for the financing of a few and very small projects. Initiative programme INTERREG II and 32 Other possibilities consist of the Cohesion Fund and Structural Funds inter alia the Community the so-called Art 10 (innovative) actions within the framework of the European Regional Development Fund (ERDF) However, these possibilities are limited because most of the monies are already earmarked at the operational level for the coming years and furthermore, the functional and the geographic eligibility criteria do not allow for a horizontal application linked to the implementation of JEPs. There is also the European 46 Investment Fund (EIF). It could play a more active role as a leverage mechanism, either by extending its guarantees to JEPs or by facilitating equity participation. In this perspective, the environment would have to be integrated as a separate objective in the EIF Statute 33 However, the given the institutional/administrative ones, and the necessity of a visible acknowledgement incentive financing of JEPs should imply a financial support analogous to that provided for TENs. above-mentioned constraints, particular in x-x-x-x-x-x-x-x-x-x 47 ANNEX I - EXAMPLES DESCRIPTION OF SOME SPECIFIC WASTE PROJECT from the workshop on waste (Brussel, 19/20 October) a. Plastic Plastic is a material which can be found in most consumable products, therefore the results of the parallel session on plastic waste should be seen jointly with those of the other 3 parallel sessions. The proposals which correspond best to JEPs, implying that they are not only "ideas" but have reached a more advanced maturity stage are: 1. Building of joint plants for the recycling of engineering plastics This is very good example of waste for which the volumes reached at national level do not economically justify their recycling. Therefore such plastics are at present discarded, they could be recycled and put on the while, if a common strategy was developed, market again. 2. Development of joint facilities to treat PVC cables containing heavy metals The presence of hazardous substances, such as heavy metals, in waste is one of the major concerns of the EU waste management policy. This is an example of pilot project, already developed at laboratory scale in Denmark, which could be more effectively brought to full operational scale by a joint action between several Member States. 3. Extension to other waste streams of existing recycling schemes and technology In particular: end-of-life vehicles and electrical/electronic waste A recycling programme for the recycling of large quantities of discarded plastic equipment is already initiated, bringing together all the actors of the chain, from the producer, to the recycler. Such an experience could be transferred to other waste streams with the participation of several Member States. 4. Creation of EU wide or international data basis on recovery technologies and of market opportunities One major obstacle for recycling in scarcely populated areas relates to the difficulty of obtaining the necessary information. The possibility to advertise recycled products at large distances, in particular via internet, and to access to computerized information networks could help solving this problem. 5. Setting tip of an integrated network for recycling PET bottles The experience gained in the USA may be of help. It concerns in particular highly populated areas. New recycling technologies can be developed around this kind of waste. 48 b. Electronic Consumer goods 1. Recovery of Television-sets and Personal Computers-monitors After collection of TV-sets and PC-monitors, appropriate dismantling and de-pollution are required in order to optimise both separation of parts and materials and recovery of these. Existing environmental and economy of scale problems for the recovery of television sets (screens and CRTs in particular) and PC-monitors, may be overcome by the networking of intermediate disassembly units and recovery installations in different Member States of the European Union. The composition of CRTs and PC-screens varies greatly: the development of a data base for easing recovery processes is required. 2. Recycling of batteries from electrical and electronic equipment Batteries, part of electrical and electronic devices and appliances vary in size and type. Despite the fact that they contain hazardous substances, batteries are mostly disposed of in landfills without precaution. Networking of facilities which after an appropriate collection of old batteries, provide for their efficient separation (button cells, silver oxide, nickel-cadmium, etc) as well as recovery, would contribute to overcoming the problem's economy of scale as well as decreasing the environmental risk. 3. Monitoring of the electronic consumer goods waste stream and establishment of an information centre The optimisation of existing or future infrastructures for the management of the electronic consumer goods waste stream requires an adequate knowledge of the quantities and types of products put into the market (per year), customer's behaviour, the flow of products and materials, information on refurbishing the level of recovery treatments. A joint european network which could lead to and information centre (of network of centres) would cover the constant request for data of that nature and serve the needs of dismantlers and recyclers of those appliances. c. End-of-life vehicles (ELV) With a view to the arising quantity of waste from end of life vehicles (ELV) as well as its hazardous characteristics the JEPS workshop has given due attention to possible means to improve the situation of the treatment of ELV. Given that the metallic part of a car (70 - 75%o, with a tendency to decrease) apparently does not pose major difficulties in terms of proper handling and recovery, the automotive group focused mainly on the remaining part, which are the shredder residues Four projects were proposed, based on an analysis of the automotive life cycle from the design phase until the treatment of the ELV as illustrated in the figure below. 49 LIFE CYCLE OF POSSIBLE JEPS I CARS Design I (A) Feedback of recyclers to: (1) car makers (2) material suppliers Consumption No projects Parts trade No projects I Dismantling Dismantling materials (B) Larger scale European network for material trade. Life cycle analysis (e. g. what are the costs of transport ?) (C) Classification system of quality Shredder NFM No projects Fluff FM (D) (l)Larger scale for incineration with energy recovery (2) Larger scale for further separation for material re-use No projects FM = Ferrous metals NFM = Non-ferrous metals 50 The projects can roughly described as follows: a) Infrastructure for exchange of information between car manufacturers, material suppliers and recovery industry. b) Establishment of a European network for recovery material from ELV. c) Classification system of the content of materials to be recovered which can not be traded as parts. d) Establishment of an infrastructure for the treatment and valorisation of shredder residue. The proposals reflect the unsatisfactory situation at present where there is a lack of both an exchange of information between the different economic operators involved and, partly due to this, economies of scale. The participants stressed the importance of approaching each project on its own merits and feasibility. The group clearly felt that the pursuit of the proposed projects would yield in considerable economies of scale and positive environmental impact. Possible confidentiality of information was identified as an obstacle to open exchange of information. The administrative burden arising out of legislation on the shipment of waste was mentioned as another obstacle to the establishment of a European network for recovery material from ELV as well as of an infrastructure for the treatment and valorisation of shredder residue. d. Heavy Metals 1 Treatment and management of residues from waste combustion Waste incineration is an economic activity which is of importance in all EC Member States. The treatment and/or disposal of residues of such incineration raises considerable problems; optimal solutions have not yet been found. The project aims at developing processes for the treatment of such residues, the recovery of materials and the safe disposal of residues, including demonstration projects. 2. Treatment of mercury-containing wastes Mercury-containing wastes are often small in volume, but are very hazardous and difficult to treat. This leads to very high treatment costs. The project aims at creating a joint plant for several Member States, which would be economically attractive for participating countries. 3. Decontamination of soil contaminated with heavy metals The project aims at developing the technology for a cost-effective large-scale treatment of soil which is contaminated with heavy metals. Its environmental and economic interest is particularly great in urban agglomerations. 51 ANNEX 2 DESCRIPTION OF SOME SPECIFIC PROJECT EXAMPLES from the Water workshop (Copenhagen, 11/12 October 1995) a) Projects which include a distinct physical network; b) Projects which to (better, cost saving and/or faster) lead improvements in environmental infrastructure. As regards the first category two groups of projects are mentioned. 1) Port reception facilities This relates to a cluster of projects which if done jointly will improve the situation of dumping waste at sea and consists of three main components: - Upgrading of current technology for reception and treatment of chemical port waste, i. e. ballast water, bilge water,etc. to improve the cost recovery - Construction and extension of adequate port waste facilities particularly in the Mediterranean and the Eastern Baltic Sea. - Setting up a tracking system monitoring the waste flow between the ports of Europe. Development of a cost-effective surveillance satellite to detect accidental spills and illegal discharges enabling a better and quicker response from ground recovery equipment could be considered within this group of projects. 2) River monitoring systems In order to enable a coordinated planning and management for a River Basin a river monitoring network is necessary. The monitoring system should both serve water resources management and contingency purposes facilitating the involved countries to predict and deal with current water shortages and water quality changes. The system electronic interconnections between the stations along the river basins. Such a system could be a tool for planning common investments in other infrastructure installations like dams, specific treatment plants etc. on-line monitoring transboundary involve should and second category parallel The of similar pilot/implementation projects infrastructure problems with new or available technologies. A range of projects were discussed in the workshop of which some are mentioned here : project in various Member States, addressing examples common include 1) Use of alternative water resources in future urban water supply. A project concerning development and implementation of a new concept of urban water management including specific projects on substitution of drinking water with secondary water sources of lower quality (rain water, slightly polluted ground water, treated waste water etc. ) for specific purposes. 52 2) Sludge treatment and disposal. r Projects dealing with processes for treatment of waste water sludge in relation to the final means of disposal and the potential environmental problems this may cause. Processes for the removal of heavy metals from waste water sludge prior to its disposal on agriculture land is essential. In addition, the management of industrial discharges in relation to control of the input of harmful substances into the public sewer needs to be addressed. 3) Nitrogen removal at low temperatures. Development and implementation of facility modifications and operational strategies for safe and stable performance of the temperature sensitive nitrification process in urban waste water treatment plants in cold and temperate climate. 4) Waste water treatment for specific areas. The establishment of waste water treatment facilities in small communities with e. g. large seasonal invasions of tourists. Projects could include the implementation of small waste water treatment plants as well as larger central facilities, in which the space capacity out of the tourist season is used for treatment of septic sewage from the local population. 5) Storm water treatment and reuse. The development and establishment of simple treatment facilities for storm water like sedimentation ponds. Because of the low content of pollutants typical for storm water, the possibility of reuse for agriculture or other purposes is obvious. Depending on the purpose for which the water is reused, monitoring of water quality and in some cases further treatment are factors of importance. ANNEX 3 - JEr-S- CRITERIA FOR JOINT ENVIRONMENTAL PROJECTS DESCRIPTION 1. Member States acting jointly or in coordination to develop a project (or prepare the development of a project ) of common interest for environmental protection and improvement within the Union. Projects involving non-Union countries may be treated as JEPS when the significant benefits therefrom accrue within the territory in the Union. 2. JEPS would provide opportunities for the development of new technology allowing for its implementation under economic viable conditions. 3. Any Community support for JEPS should not include support for a R&D and technology project for which funds are available. CRJTERIA Essential: 4 As compared to purely national projects, a JEP- project shall yield significant "value added" in the sense of environmental effectiveness and capital and operational cost savings. 5. Major EU environmental priority policy areas e. g. in the water and waste sector shall be targeted and within those and other relevant sectors JEPS shall assist in achieving agreed Community policies and objectives. 6. The project will concern significant physical, including monitoring, infrastructure projects and objectives Desirable. 7. It should lead to the development of new and improved structures of administrative partnership between Member States. 8. Desirably, the project should promote the development and use of advanced environmental technology. 9. The project should, where appropriate, involve the private sector 54 Annex 1: PROGRESS OF TEN LEGISLATIVE PROCEDURES r «. Field COM. Prop. ESC Opinion Opinion of EP: 1st reading Common position EP: 2nd reading Counciliation Adoption Committee Regions Financial Regulation TRANSPORT 2 March 1994 28 April 1994 9 May 1994 30 November 1994 31 March 1995 13 July 1995 n. a. 18 September 1995 Multimodal 29 March 1994 23 November 1994 27 September 1994 18 May 1995 2X September 1995 pending Spring 1996 mid-1996 HST interoperability TELECOMS 15 Apnl 1994 23 November 1994 28 September 1994 19 January 1995 28 September 1995 pending n. a. end 9 5/ beginning 96 Global approach 31 May 1995 pending pending January 1996 ? beginning 1996 ? mid January 1996 ISDN Guidelines Actions IDA (3) l"NA ENERGY Gas and electricity Guidelines Connected measures 12 March 1993 12 March 1993 21 December 1993 21 December 1993 17 May 1994 17 May 1994 19 Apnl 1994 19 April 1994 22 December 1994 (D 13 June 1995 n. a 11 October 1995 12 March 1993 12 March 1993 7 June 1993 7 June 1993 17 May 1994 17 May 1994 17 November 1994 17 November 1994 21 Dccembei 1994 20 September 1995 n. a. 6 November 1995 (2) r< 19 January 1994 19 January 1994 27 Apnl 1994 27 Apnl 1994 17 Mac 1994 1 7 N lay 1994 18 May 1994 18 May 1994 29 June 1995 29 June 1995 26 October 1995 26 October 1995 January 1996 in ? Jan 96 ? Jan 96 (1) The Council ha. s suspended discussion of the "Actions" proposal pending agreement on the financial regulation i2) Change of legal basis resulting in deletion of TN. A (Article 2. 35 in place of 129(c)) (3) Tito TEN Financial Assistance Regulation does not apply to IDA 55 Annex 2: EU FINANCING of T E NS ( M E C U) Z Field Type of assistance Instrument 1993- 1994 1995 TOTAL TRANSPORT Loans EIB (i)(2) 4 342 2 075 6 417 Guarantees EIF (2) 75 9 85. 2 161. 1 Aids Structural Fund (i) (3) Cohesion Fund TEN heading (14 priority projects) ENERGY Loans ELB (i)(2) Guarantees ELF (2) Aids Structural Funds (l) (3) TEN heading TELECOMM. Loans EIB(i)(2) Guarantees EIF (4) Aids Structural Funds (i)(3) TEN heading 884 0 1 827. 0 385 180 1 077 207. 7 675. 7 0 3 787. 8 156. 1 294. 7 21 115. 0 1 076. 6 240(4) 182. 5 304 0 87. 8 12(4) 506. 6 0 0 22(4) 999. 0 2 963. 6 625 362. 5 1381 207. 7 763. 5 12 4 294. 4 156. 1 294. 7 43 (1) TEN and TEN-related projects (2) Signed contracts (3) Appropriations committed (4) Proposals approved by the TEN Financial Assistance Committee at its meetings on 10. 11 and 12 October. 9 and 20 November last. 56 ISSN 0254-1475 COM(95) 571 final DOCUMENTS EN 07 15 11 Catalogue number : CB-CO-95-626-EN-C ISBN 92-77-96467-7 Office for Official Publications of the European Communities L-2985 Luxembourg ft

COMMUNICATION FROM THE COMMISSION relating to management guidelines for the 4th generation of multi-annual guidance programmes or MGP' S

http://publications.europa.eu/resource/cellar/1c069798-d564-477c-aa9a-391712793f65

eng

*$fa&iê COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 30. 05. 1996 COM(96) 203 final COMMUNICATION FROM THE COMMISSION relating to management guidelines for the 4th generation of multi-annual guidance programmes or MGFs. 1. 2. 3. 4. 5. 6. CONTENTS Aspirations of the new MAGP IV The adoption of the MAGP IV 2. 1 2. 2 Wide consultations as a preliminary to debate in the Council The principles of the MAGP III retained The classic debate: capacity reduction or mixed measures? Treatment of passive gear, and rules on fishing gear Content of MAGP IV 5. 1 5. 2 5. 3 5. 4 5. 5 5. 6 5. 7 5. 8 Report by the group of independent experts, and technical progress The socioeconomic impact of reductions Fleet segmentation The special case of small-scale fisheries The permanent nature of structural measures Period of application of the MAGP IV Additional criterion for programme monitoring Penalty system for non-compliance with the objectives Adoption procedures 6. 1 6. 2 Heightening the awareness of Hie decision-makers and the press Preparatory work 6. 2. 1 Reports from the Member States 6. 2. 2 6. 2. 3 The scientific report by the group of independent experts Socio-economic report following regional consultations 6. 3 The two-tier decision-making system 6. 3. 1 Council decision in June 1996 6. 3. 2 13 Commission decisions in November 1996 7. Conclusion Annex I Showing the relationship between fleet, resources and structural measures Annex II Implementation of MGP IV - the simple picture Annex III The social and economic impact of measures to reduce fleet over-capacities Annex IV The independent experts' report's principal recommendations Annex V Synthesis of regional consultations Annex VI Illustration of the decision making process relative to the adoption of MGP IV. 4 1. Aspirations of the new MAGP IV The Commission's 1991 report1 on the common fisheries policy stressed the need for a strong link between resource management and fishing effort management, i. e. between the management of outputs through TACs and quotas, and the management of inputs, especially fleet capacity, which is the basic factor in fishing effort, (see Annex I). This link was forged when the Council debated the MAGP III in December 1993; in view of major surplus capacity in the segments of the Community fleet targeting certain categories of resources, objectives for the reduction of fishing effort were adopted for 1992-95: 20% for demersal species, 15% for benthic species and 0% for pelagic species, considerably less ambitious than the Commission's initial proposal2. These targets were laid down in a series of Commission Decisions on the fleets of the Member States3 The arrangements were extended to Sweden and Finland on their accession. 4 We are now approaching the end of the period of application of the MAGP III, and it is clear that, while there has been some decline in the surplus capacity of the Community fishing fleet, the objectives have not been achieved, in particular by certain Member States that had much lost time to make up. Moreover, the technical progress achieved in the industry over the period certainly hampered compliance with the guidelines. A further exacerbating factor has been the repetition of catastrophic declines in prices in recent years, which has led some fleets to increase fishing to offset the drop in income; this has contributed to increasing fishing effort, further aggravating over-exploitation of resources. These factors combine to explain why, during the period observed, available estimates of the development of resources do not, in general, reflect significant progress. Indeed, in many cases, there has been a decline in stocks, matched by a deterioration in the economic situation in the sector. In the circumstances, there is no alternative to reprogramming objectives with a view to a further reduction in surplus fleet capacity, so as to: improve stocks; boost competitiveness and profitability. their impact Given on regional social and economic life, fleet restructuring measures must be implemented taking into account the viewpoints of regional community policy and developing these coastal zones dépendant on fishing. 1991 Report from the Commission to the Council and the European Parliament on the Common Fisheries Policy (SEC (91)2288 final). Council Decision 94/15/EC of 20 December 1993 relating to the objectives and detailed rules for restructuring the Community fisheries sector over the period 1 January 1994 to 31 December 1996 ( O JL 10, 14. 01. 94). Commission Decisions 92/588/EEC to 92/598/EEC of 21 December 1992 on multiannual guidance programmes for fishing fleets for the period 1993 to 1996 (OJ L 401, 31. 12. 1992), and Commission Decisions 95/238/EC to 95/248/EC of 7 June 1995 amending Decisions 92/588/EEC to 92/598/EEC ( O JL 166, 15. 7. 1995). Council Decision 95/577/EC of 22 December 1995 concerning the objectives and detailed rules for restructuring the fisheries sector in Finland and Sweden over the period 1 January 1995 to 31 December 1996; Commission Decisions 96/73/EC and 96/74/EC of 22 December 1995 on multiannual guidance programmes for the fishing fleets of Finland and Sweden for the period 1995 to 1996 pursuant to Council Regulation (EC) No 3699/93. 2. The adoption of MAGP IV 2. 1 Wide consultations as a preliminary to debate in the Council The MAGP IV, like the MAGP III, will be debated at length by the Council. The debate, however, needs to be carefully prepared by means of a series of regional consultations with trade organizations and all those involved in the fishing industry. The Commission is anxious to ensure that all possible has been done to inform the Council of the full implications of a programme to adjust fleet capacity, whose objectives may be difficult to attain. To this end, 34 regional consultations were organized between November 1995 and March 1996 with the backing of the national authorities in the Community regions most strongly dependent on fisheries. As well as regional meetings, there have been, and will be, several consultations with European fisheries organizations, including consultations with the Advisory Committee on Fisheries on 24 January and 21 May 1996. The Commission will try to profit from the views exchanged in these consultations on the development of the activities of the Community fishing fleet, and the ideas of the trade on the content and application of the MAGP IV and accompanying financial measures. 2. 2 The principles of the MAGP HI retained The guiding principles behind the MAGP III, including openness and transparency, fair treatment for Member States, and flexibility, will be retained; this will guarantee that each Member State will be able to find a suitable response, within the operational framework of the MAGP IV, to its specific needs in view of the type of fleet and fishing activities, but without the MAGP IV being used, at any time, as an excuse for special treatment or a means of by-passing the principle of the relative stability of fishing activities. To ensure openness and transparency, the methodology adopted will be universally comprehensible and susceptible to verification. Fairness involves asking the Member States to apply the same rates of reduction to the same segments of the industry without discrimination between fleets, types of vessels or types of gear (passive or towed). Flexibility means allowing the Member States to group certain segments of the fleet together, if they see fit. On the principle adopted for the MAGP III, the rate of reduction applicable to the group as a whole will be that applicable to the most sensitive species in the group. The adjustment of the fishing effort through the application of structural measures will not affect the relative stability of Member States' take-up offish as expressed in the mode of allocation of fishing quotas. Indeed, by aiming at profitability for fishing operations through the elimination of over-capacity, the MAGP IV will reduce the risk of fraud while enabling quotas to be fully taken up under normal conditions. 3. The classic debate: capacity reduction or mixed measures? It will be remembered that the MAGP I and II, which were in force in 1983-91, set fairly modest objectives for limitation of fishing fleet capacity as a whole, for each national fleet. Over the period 1992-96, the MAGP III took a new and different approach, setting ceilings on fishing efforts by segment of the fleet, these ceilings were considerably lower than the earlier objectives. The new practice of expressing objectives in terms of fishing effort in the MAGP began in the transitional MAGP of 1992, where 25% of the requisite capacity reductions could be achieved through cutting fishing activity. This innovation soon led the Commission to define proper conditions for implementation, which necessarily involved recourse to the concept of fishing effort. Consequently, in the MAGP III, objectives could be expressed in terms of fishing effort, and achieved through measures combining capacity reduction and reduction of activity (mixed approach). However, to retain the structural character of the MAGP III, at least 55% of the objectives were to be achieved by capacity reduction (capacity reduction approach). Although most Member States nowadays support capacity reduction alone as the best means of eliminating over-capacity, some are particularly anxious to retain a mixed approach. It must be admitted, however, that not even those Member States who take that view have so far exploited the option provided in the MAGP III of implementing the measures for the reduction of fishing activities that could be taken into account for the programme. In the circumstances, there are grounds for doubting whether this method of fixing objectives in terms of fishing effort, as was done in the MAGP III, can be of further practical use. The question is pressing, since later Community rules developed new arrangements for the management of fishing effort in specific fishing grounds, in parallel to the arrangements for the management of fishing effort by segment of the fleet in the MAGP. The MAGP IV should attempt to set objectives for the adjustment of capacity so that for a segment of the fleet carrying out its activity normally in a given fishing ground, the ceilings on fishing effort are not exceeded. The Commission's idea would be to ensure a link between structural measures for the elimination of over-capacity in the MAGP IV and the measures for the management of fishing effort in the new Community rules. The link would be forged in two stages (see annex II). First stage (capacity reduction approach): The MAGP IV would set objectives for the reduction of capacity for each segment of the fleet by 31 December 1996; these objectives would correspond to the objectives for fishing mortality for each type of resource decided by the Council on a proposal from the Commission. For multipurpose fleets, the rate of reduction would be that decided for the most sensitive species concerned. Second stage (mixed approach): In the course of implementation of the programmes, the Member States who wished to control fishing activity coutd submit fishing effort management programmes for each fishing ground to the Commission. At this stage, the link between fleet segments as defined in the MAGP IV and the fishing grounds subject to controls would have to be accurately established, if possible. At this second stage, the arrangements for managing fishing efforts by fleet segment, as laid down in the MAGP III, would finally disappear. Only those Member states with historical data on the activities of their fleet, and in a position to undertake to monitor fishing activity effectively, could accede to this second stage. For fleets that target a single species or fishing ground, this framework will be fairly simple; for multipurpose fleets, targeting a variety of resources with differing objectives for fishing effort reduction in different grounds, it is more complicated. For such fleets, the Commission might propose a rate of capacity reduction intermediate between the rates required for the most sensitive and the least sensitive resources, as long as the Member States are capable of organizing an appropriate allocation of efforts directed at the different resources. With this arrangement, ceilings on efforts could be respected through the elimination of over-capacity. Such an approach implies, as an essential condition, that the Member State should guarantee the reduction in fishing effort for the most threatened species. The Commission is of the opinion that this approach would certainly be preferable to the existing one as: it respects the spirit of the structural measures, while ensuring the elimination of over-capacity; it ensures a proper link between structural measures and conservation measures (management of fishing efforts); it eliminates unnecessary duplication between two schemes for the management of fishing effort, in the MAGP III on the one hand, and in the framework of Community rules on fishing efforts for specific fishing grounds on the other; it does not impose systematic capacity reductions in the fishing grounds where reduction in activity will suffice to ensure respect for the ceilings on effort. 4. Treatment of passive gear, and rules on fishing gear When the fleet was classified into segments for the purposes of drawing up the MAGP III, it was recognized that the usual measurement parameters for the MAGP objectives (Kw and GRT) could not properly measure the fishing effort due to passive gear. It is clear that tonnage and engine power do not reveal the fishing effort of a trap setter. as it will depend mainly on the surface of the nets set, or the number of hooks or baskets used, and the length of time they stay in the water. Since the adoption of the MAGP III, some progress has been made towards improving the selectiveness of fixed nets through technical measures governing mesh sizes. However, nothing has been done about limiting the efficiency of gear. It has now transpired that the fishing effort of these segments of the fleet has not been restricted in the same way as that of the vessels using towed gear. For passive gear, as for other fishing gear, technical measures are intended to improve selectiveness, but they cannot take the place of restrictions on fishing effort. Restrictions on fishing effort for passive gear still raise a specific problem, in that the relevant restrictions are those affecting the features of the gear rather than the vessels. However, in very specific programmed cases where technical measures are intended to lead to a substantial improvement in the selectiveness of fishing operations as between species (i. e. reduction in by-catches), the Commission intends to study the effects of these programmes on fishing mortality case by case; the results could then be taken into account in the MAGP. 5. Content of M A GP IV 5. 1 Report by the group of independent experts, and technical progress On the basis of past experience, the Commission decided to form a group of experts, as was done for the MAGP III. This new group of experts recently identified the resources where a reduction in fishing effort is needed. The recommendations of the group match those of the competent scientific bodies, and reproduce their conclusions, with additional considerations on the size of fleets. The overall situation of the stocks targeted by the Community fleet is described. Of course, the scientists recommend adopting fishing effort reduction measures as soon as possible. Taking account of technical progress, which may be expected to lead to an increase of 2% at the very least over the long term, the objectives for annual reduction must rise by the same percentage to ensure that the decline achieved is not neutralized by technical progress. 5. 2 The socio-economic impact of reductions The impact of fleet reductions on areas dependent on fishing can be measured both socially and economically (see Annex III). At a social level, a reduction in fishing capacity will have a negative effect on jobs at sea and upstream of fishing (supplies, shipyards and harbour administration). On the other hand, the downstream sector will suffer only during the time required for the "recapitalization" offish stocks, since the quantities caught will eventually increase, thus increasing the number of downstream jobs (all other things being equal) In economic terms, the profitability of fishing companies and the competitiveness of European products will improve considerably as a result of the elimination of the overcapacity of Community fleet. The negative effects of direct and indirect job losses will be taken into account in the Structural Fund measures (FIFG, PESCA, Objectives 1,2 and 5(b)). Since December 1995, direct job losses resulting from restructuring are covered by special social measures for the sector (part-financing of early retirement schemes and retirement grants). The Commission thinks that staggering the restructuring measures, together with the financial measures to help the Sector, will soften their impact. In other words, and this is a major political issue, the Council's decision to stagger the restructuring measures, which the group of experts thinks should be adopted as soon as possible, will lessen their immediate impact on coastal communities. On the other hand, it could lead to a prolongation of the structural crisis in the sector. Technical progress, which has been exacerbated by large amounts of aid for modernization in the sector (ECU 740m between 1994 and 1999) should not be allowed to bring to nought the anticipated effects of timid restructuring measures resulting from the unambitious objectives that have been laid down. 5. 3 Segmentation of fleets and fisheries For the MAGP III, the number of segments and their contents were defined by the Member States themselves on the basis of a general framework proposed by the Commission. For MAGP IV, the Commission would like to propose a new general framework based on three elements defining the fisheries as biological management units, groups of species and fishing gear. Recognition of the special nature of certain fishing activities can be based on the identification of management units. The Commission thinks it is advisable to operate using relatively large biological management units (Mediterranean, Baltic) each time it is possible to identify areas of development and confinement of stocks in relation to the fleets. Fleet segmentation should provide the answer to the often imperfect match between species development areas and the multi-purpose and opportunistic nature of fishing. thinks it is essential to organize the restructuring of some fleets into appropriate The Commission segments whose objectives 'will be laid down taking account of access rules not exclusively based on biological considerations. This will involve identification of restructuring measures taken for other reasons (access to Moroccan waters, ban on certain fishing gear, etc. ). Where possible segmentation will determine homogeneous groups of vessels to which particular objectives can apply in relation to those fisheries exploited. As a rule the objectives will receive Community financial support (Structural Funds). In some circumstances it will be necessary to ask whether it is justified for some fleet segments, such as tropical freezer tuna seiners, to continue to receive Community investment aid, given how they are fitted out, the extent of their fishing activities and the aid they receive from elsewhere (fisheries agreements and compensatory allowances). 5. 4 The special case of small-scale fisheries Very small-scale inshore fishing from small craft at sea for less than 24 hours provides most jobs at sea, even though many of them are seasonal. Production from small-scale inshore fishing is low in volume but high in value. As a rule it takes place in a narrow coastal band. The sector is going through a natural and continuous fall in fishing capacity and jobs. With MAGP IV, the Commission would like to identify all non-trawler small-scale vessels fishing for local stocks in order to put them in a fleet segment whose capacity would be defined in terms of numbers of vessels and tonnage. This approach would make it possible for the sector to be modernized for safety reasons and to improve fish processing on board by installing new engines. This measure would not apply to small-scale vessels fishing for shared stocks, nor to trawlers whose engine power affects the fishing effort, monitoring of which in coastal waters would have to be stepped up considerably. The Commission departments think stricter measures forbidding fishing in certain coastal waters should be adopted (boxes). 5. 5 The permanent nature of structural measures Under the multiannual guidance programmes, the measures to reduce fishing effort have permanent effects for each component (capacity and activity). The structural nature of these programmes is based on the idea that once the capacity of a segment or the activity of a vessel has been reduced, there is no turning back. Based on the law according to which the same causes have the same effects, any renewed increase in capacity, and consequently in fishing effort, would place the sector in the same difficulties it was in before. It must also be quite clear to everyone that, where a Member State has been able, by means of a fishing effort management system, to undercut the objectives laid down in its MAGP IV in terms of capacity (See Section 3), the effort reductions will then be final and it will no longer be possible for it to increase its fishing activities. For example: the reductions in fishing effort allowed for in the MAGP II for the Netherlands is a measure which has permanently reduced the activity of beam trawlers in that country. Any subsequent increase in that activity would mean a reassessment of the capacity objectives for that segment. 5. 6 Period of application of the MAGP IV For financial planning reasons related to the Structural Funds, the Commission thinks that MAGP IV should cover the period 1997-1999. Application of MAGP IV will thus coincide with the financial measures under the Structural Funds planned for the same period However, it unlikely that this three-year period will be enough to permanently eliminate the overcapacity of the fleet. Therefore, a MAGP V to be applied after MAGP IV cannot be excluded. 5. 7 Additional criterion for programme monitoring In order to match the licence and special permit schemes to particular fleet segments, the Commission thinks it desirable to add a fourth parameter to the customary fishing effort monitoring parameters (power, tonnage and days at sea) by which, where necessary, the number of vessels per segment is counted (nb). This parameter could prove to be useful in following certain fleet segments ( fixed gear, small scale fisheries) in which the fishing effort is not accurately reflected by the usual parameters (GT,KW). This does not mean that it will be necessary to use the four parameters simultaneously when the objectives of the MAGP are laid down. 5. 8 Penalty system in cases of non-compliance with the objectives Failure to comply with Community provisions makes the Member States liable to infringement procedures under Article 169 of the Treaty. This will apply to failure to comply with measures adopted under the MAGPs III and IV. Without prejudice to Article 169 of the Treaty, if the Commission establishes that a Member State has not made the appropriate decrees to ensure that fleet re-structuring objectives are respected, it may submit proposals to the Council on appropriate general measures. The Council decides by qualified majority (Article 25 of Council Regulation (EEC) No 2487/93). In addition, there is Article 10 of Council Regulation (EC) No 3699/93, according to which the Member States may not take vessel construction or fleet modernization measures producing additional fishing effort if they have not complied with the objectives of the programmes. In the course of the programme, these provisions applying to the overall intermediate measures and the final objectives for each segment are objected to by those in the trade whose vessel is or was in a fleet segment whose objectives have been attained. The Commission recognizes the difficulties which these provisions can cause for some beneficiaries of investment projects, and are planning a reform of the present rules which in respect of the investment aid schemes will only require the intermediate and final objectives for each segment to be complied with. J 6. Adoption procedures 6. 1 Heightening the awareness of the decision-makers and public opinion The Commission took pains to prepare the decision-makers, i. e. the European fisheries ministers, for the MAGP IV, and those who will be governed by it, i. e. the trade. Therefore it intervened pn several occasions at meetings of the Fisheries Council in the last quarter of 1995 to impress on the Ministers the importance they should attach to eliminating the Community fleet's overcapacity. On 12 March 1996 a teleconference was organized from Brussels with all the Commission's representation offices to make the press and the trade aware of the need to reduce fleet overcapacity. 6. 2 Preparatory work The Commission will have a number of preparatory documents, all in preparation for its proposal for the Council meeting in June 1996. It is on the basis of that proposal that the Council will lay down the policy guidelines for the MAGP IV. 6. 2. 1 Reports from the Member States In accordance with the legal requirements of article 5 (4) of Council Regulation (EC) No 3699/93, Member States should have submitted by 01. 01. 96 a report on implementation of their MAGP III and on preparation of the MAGP IV. The delays in producing these reports, of which the Commission is aware, mean that they will only be able to be used for an overall synthesis. These national reports will be analysed in the proposed regulation framework which the Commission will make to the June Council in order to establish the direction of MGP IV. 6. 2. 2 The scientific report by the group of independent experts The group of independent experts met, as planned, four times between September 1995 and February 1996. The overall report by the group of experts and the synthesis by their president were delivered to the Fisheries ministers during the Council meeting of 22nd April 1996. You will find a résumé in Annex IV of the group of experts principal recommendations. The work of the group clearly shows a continuing deterioration in the stocks which dictates that steps need to be taken without delay. MGP IV will attempt to fix objectives for the reduction of capacities by fleet segment in relation to fish mortality objectives within each fishery. The fisheries will firstly have been put in the context of maritime region, species or group of species and gear types. The Commission is aware that for a certain number of stocks facing a critical situation and approaching the collapse of the biomass, some sensitive measures to reduce fishing effort in the short term will have to be proposed to the Council and adopted without concession. On the other hand, for a certain number of stocks for which this danger does not exist and where fish mortality is simply greater than optimal exploitation conditions in the economic plan, the Commission estimates that it's proposal and the Council's decision will be able to take into account social factors likely to have a bearing on the time limit for implementing the group of experts' recommendations. 6. 2. 3 Socio-economic report following regional consultations With the support of national authorities, the Commission organized 32 regional consultations in those European regions most dependent on fishing as well as additional meetings with European organisations from the fisheries chain in order to gather information and ideas from the industry on fishing activity developments and on preparation of MAGP IV. The information and opinions received by the Commission have been carefully compiled in the form of a synthesised report which shows the positions of those involved in the chain with regard to the MGPs. A résumé of this report, which will be sent to the Council as was the independent experts report, is shown in annex V to this document; These consultations clearly illustrate that the fishermen do not dispute MGP as a tool for regulating fishing capacities, but would like to see this tool used in a more flexible manner and not exclusively of other means of reducing fishing effort where the stock situation permits it. The Commission will take into account the opinions of professionals in order to ensure the most flexible possible application of the Council policy/guidelines to national fleets. 6. 3 The two-tier decision-making system (Annex VI) This document is intended to bring about an exchange of views between those responsible for European fisheries on the context, objectives and general content of MAGP IV. The Commission services think this discussion will be very useful for preparing the draft Council decision to be adopted in June, in particular as regards the general approach to be taken under the various MAGP's IV. Although it is useful for developing ideas on the MAGP IV, this document does not legally bind the Commission. 6. 3. 1 Council decision in June 1996 The Council debate in June 1996 will determine the real extent of measures to reduce the overcapacity of the Community fleet. This debate results from its obligation set out in Article 11 of Council Regulation (EEC) No 3760/92' determining the conditions for restructuring the sector. Any delay in adopting a Council decision laying down these measures would seriously impair the Commission's ability to adopt its own decisions by the end of 1996. The Commission will seek in it's proposal to the Council to reconcile the recommendations of the independent experts and the wishes expressed by the professionals in the sector in order that should be implemented within a measures to reduce the overcapacity of the Community fleet reasonable time-limit. The facility will exist within this proposal to distinguish those stocks on the edge of collapse from those which could temporarily support the current rates of exploitation. However, some measures must also be adopted for the latter. 6. 3. 2 13 Commission decisions in November 1996 Following on from the Council's decision, the Commission will organize bilateral meetings with the 13 Member States concerned to apply the Council's policies to the various fleets, in Commission decisions which will apply to each individual Member State. All 13 draft decisions will have to be submitted to the Management Committee for Fisheries and Aquaculture by November at the latest, and the drafts will be adopted by the end of the year. In contrast with the preceding phase of establishing MGP IV orientation where the uniqueness of the Council stage must be safeguarded, during this 2nd phase the Commission will take into account the particularities and specifics of situations highlighted within the framework of professional consultations. The plan attached shows the different phases of the Council/Commission decision making process leading to the adoption of MGP IV. 7. Conclusion The present decline in fish stocks is confirmation of the inadequacy of previous multi-annual guidance programmes, and suggests that a new MGP IV should be adopted with a more detailed approach than in the past. Over-fishing is due to over-capacity in the Community fleet. The elimination of fleet over capacity is thus a powerful means to serve the essential objectives of the Common Fisheries Policy which are the continuity of fishing, maintaining profitable exploitation levels for the sector and the preservation of jobs. Council Regulation (EEC) N° 3760/92 of 20 December 1992 establishing a Community system for fisheries and aquaculture (OJ L 389, 31. 12. 1992). The Commission will bring in whatever steps are necessary to improve management machinery for the forthcoming programme, which will be adopted in such a way as to ensure openness and transparency, and fair treatment for the Member States, their fleets, and the different types of gear. The Commission proposal will ensure genuine adjustment of fishing effort, to take account of the effect of technical progress. To this end, a hew method of fixing objectives will be proposed, to enable capacity reduction measures to be linked to schemes for managing fishing effort. The MAGP IV will also need to consider further capacity reductions where necessary according to methods capable of taking into account the social aspects of restructuring. The Commission believes that the policy issue in the debate of June 1996, when the Council will have wide margins for manoeuvre, consists in the timing of the reductions in fishing effort called for in the scientific recommendations. It is appropriate in this respect to clearly distinguish the following; those stocks in very poor condition and even on the brink of biological collapse for which radical measures having an immediate effect should be adopted without delay those stocks which are over-exploited and badly exploited to which measures must be applied as soon as possible in order to improve their exploitation those slocks which do not pose any problem and for which it will be appropriate to follow their evolution in order to adapt fleet capacity and avoid allowing the situation to deteriorate The consensus to be reached should aim at striking a reasonable balance, over the period allowed, between the level of biological limitations along with the effects of technical progress on the one hand, and the socio-economic consequences in areas dependent on fisheries on the other. The Commission is concerned that it should make MGP IV acceptable to the fishermen and the populations of those areas dependent on fishing. It must be clear, however, that in adopting and implementing MGP IV the Member States and the Commission aim at a lasting balance between a fleet whose competitivity will have to be assured and the available resources. This is not to suggest, though, that this means the Commission is disinterested in job losses which, initially, could be linked to restructuring of the sector. On the contrary, restoring the stocks means that Community waters must produce, in time, superior riches to those produced today and thus new jobs. Businesses in the chain will thus also be able to generate more wealth. However, it must be made clear for all that, independently of the expected benefits of this exercise, the sector could continue to suffer an erosion of it's employment level linked to the modernisation of businesses obliged to continually adapt to the market, In this case, one cannot dismiss the theory of applying to coastal zones an ad hoc development policy which would in turn establish development policy and rural diversification. Safeguarding jobs must, effectively, remain a central concern. If the guidelines set in June do not hold out the hope of a sufficient reduction in Community fleet capacity between 1997 and 1999, further arrangements would need to be considered for later periods, when technical progress is likely to generate even more surplus capacity. In these conditions, it is to be feared that the Council will be called upon to take measures at regular intervals to control over-capacity in the Community fleet, and to adopt successive reductions over an unforeseeable period. The Commission will base it's June proposition as much on biological recommendations as on socio economic considerations. 10 Annex I Expression of the relationship between Resources - Fleet - Structural Measures Management of the "OUTPUTS" catches (TACs, Quotas) Management of the "INPUTS" "Fishing elfort" arrangements Fishing effort = Capacity x Activity 41 Annex II Extreme examples of the implementation of MGP IV The simplest case: Capacity approach for one segment and one fishery Link A reduction of 20% of the fishing effort in the cod fishery must correspond to a reduction of 20% of the capacity of the trawler segment The complex case: Approach for one segment and several fisheries (First stage: Fixing in MGP IV of reductions in capacity corresponding to the fishing effort reductions on the most sensitive stock (capacity approach) Link Second stage (optional): connection between structural measures and arrangements for management of fishing effort (mixed approach) Revision of MGP IV objectives Fishing effort arrangements "The reduction of 12% of capacity was calculated taking into account the division between the 2 stocks of the fishing activities of the vessels in the segment 1l Annex III Social and economic impact of measures for reducing the overcapacity of the Community fleet. The foreseeable socio-economic trends Social impact (employment) Economic impact / "V" ^ Competitiveness of European products Upstream At sea Down stream Profitability of fishing enterprises Realisation of objectives <!3 ANNEX IV: Principal recommendations of the independent experts report 1. General evolution of fish stocks The general trend expressed by the experts is clear; those fish stocks fished by Community vessels are over-exploited and significant reductions are required in order to remedy the situation. In all the zones analysed, a large proportion of stocks is exploited at a higher fish mortality level, and sometimes considerably higher, than the limit for a sustainable level. The report concludes that there is an urgent necessity to reduce fishing effort applied to these stocks immediately. As for those stocks which could, in principle, sustain the current levels of exploitation, the report notes that large exploitation gains would be made if measures to reduce fishing effort were similarly applied. 2. Quantifying measures to reduce fishing effort Taking into account certain imprécisions in relation to the available statistics on stocks, the report advises an evolving approach which would consist of aiming at reductions in effort and periodically analysing the effect; For those stocks in greatest danger, the report considers that a mortality reduction by fishing of less than 20% would be insufficient, in the sense that it would only have an insignificant effect on restoring the fish population. For those same stocks, reductions greater than 40% could not be calculated precisely. 3. Review of stocks and reference fishing mortality 3. 1CoastaI resources. The lack of available information and the wide variety of circumstances militates in favour of adopting technical measures and spatial and temporal regulation of fishing activities. </y 3. 2 Offshore resources Baltic Sea Stocks Cod Herring+Sprat Minimum reduction in F (%) required Critical stock Comment > -40 Cod 25-32 Salmon closing of the fishery All wild salmon stocks (18) in the Sweden and Finland Neither growth nor sustainability arguments for an effort reduction The advised closure of the fishery is with the objective to save the wild salmon stocks Kattegat-Skagerrak (Div. Ilia), North Sea (Div. IV), The eastern Channel (Div. Vlld) and West of Scotland (Div. VI) Fisheries Roundfish(Cod, Haddock, W h i t i n g, S a i t h e) + A n g l e r f i sh + M e g r im Nephrops Minimum reduction in F (%) required > - 40 Flatfishes (Plaice + Sole) -33 Industrial species (sand eel + Norway Pout+ Sprat) Pelagics (Herring+Mackerel) > - 40 Shrimp Deep water species Critical stock Comment Cod IV Haddock IV Saithe IV Cod Via Haddock Via Whiting Via Plaice IV Sole IV Herring IV Mackerel NK • Conventionalbiologicalreference points do not provide a basis for changing the present exploitation level -5 % based on growth utilisation No assessment available ^5" Southern Shelf (Div VII except Vlld (the eastern Channel), VIIIa,b) Fisheries Minimum reduction in F (%) required Critical stock Comments Northern Hake+Anglerfish+ Megrim+Nephrops -17 Flatfishes Roundfish (Gadoids) Small pelagics Deep water species > -40 - 26 >-40 Northern Hake Sole Vila Sole Vllf. g Plaice VIIg Cod Vila Cod f,g,h Herring Vllg NK Off Portugal and Spain (Div VIHc + IXa) No assessment available Fisheries Minimum reduction in F required (% ) Critical stock Comment ( S o u t h e rn D e m e r s a ls Hake+Anglerfish+ Megrim+ Horse mackerel +Blue whiting) -21 Southern Hake Small pelagics (Sardines + Anchovy) -33 Sardine Sh rim p + N e p h r o p s + D e ep waters species - Mediterranean Nephrops (Males) overexploited Fisheries Minimum reduction in F required (%) Critical stock Comment Small Pelagics (sardines and Anchovy) Demersals Shallow water (Red mullet) > - 40 Demersals Deeper water (Hake) > - 40 Red mullet Hake Resources in International Waters Conventionalbiologicalreference points do not provide a basis for changing the present exploitation level Red mullet appear to be overexploited nearly everywhere on the continental slope Hake appear to be overexploited nearly everywhere on the continental slope 4(, Fisheries Oceanic Redfish Blue Whiting Atlanto-scandic Herring Minimum reduction in F required (%) Critical stock Comment No analytical assessment available. The stock is at present considered to be within safe biological limits No assessment. Available data suggest there are no immediate concern about this stock. that Presently very large resource available; however EU share uncertain Fisheries Minimum reduction in F required (% ) Critical stock Comment Greenland halibut in SA 2 + 3. NK Fishing mortality is considered above sustainable levels. Current TAC advice implies af 50 % fishing reduction of mortality 1994 Cod and Redfish on Flemish Cap >-40 Cod on Flemish Cap Shrimp on Flemish Cap No assessment is available y? Annex V Synthesis of professional contributions during the regional consultations. The regional consultations allowed certain facts to be stated and professional requests made which should be taken into account in the procedures arid contents of MGP IV. These consultations were organised in such a way as to allow the fishermen and other trades of the chain and the local collectives to express themselves on conditions for implementing MGP in the general context of the evolution of the sector. To this end, the debate was organised into two parts; the first on the evolution of fishing activities and the other on implementing MGPs. 1. THE EVOLUTION OF FISHING ACTIVITIES 1. 1 Fishing activities seen today The evolution of such activities in those zones dependent on fishing, such as they appear in certain statistics that are available, express a constant and preoccupying fall in direct employment, notably in sea fisheries. The fleet and it's activities upstream are the worst affected. Between 90 and 95 Brittany effectively lost 40% of its offshore fleet in a global loss of 24% of its fisheries jobs over the same period. Ongoing studies on the restructuring of the Spanish fleet operating in international waters or under fishing agreements suggest reductions of a similar size over a short period. The available statistics show a strong tendency towards a deterioration of the level of fishing jobs which is classically seen in the other primary sectors of the economy, (agriculture, forestry). The only regions which appear able to check this fall in direct employment are those bordering British waters. The best stocked in the Community and capable of benefiting from a certain de-localisation of fishing activities tied to the implementation of the single market. But even these regions have experienced difficulties in getting regular landings from newcomers, (quota-hoppers). 1. 2 Upstream fishing activities They are totally perturbed by the reduction in fishing activities Shipyards have experienced the closing of sites and concentration of activities as the more competitive parts of the single market took advantage. Some shipyards preserve a reputation and a "know-how" which makes them essential and justifies their claims to export (tropical-tuna segment). The aid from fleet modernisation programmes (700 million ECU during the period 1994/99) will help in supporting the shipyards activities but the most recent subsidy ceilings for construction in Regulation 3699/93 provoke the clientele into considering offers from outside the Union. The supplies businesses suffer directly from reduced numbers of vessels and jobs, as well as the use of materials over lengthening periods of time, as an effect of the crisis. 1. 3 Downstream fishing activities They have clearly suffered the effects of lack of resources and thus the dwindling of contributions under auction, to the dealing rooms and the processing industry. However, it's a long time ago that this latter sector, for which permanent transformation came about several decades ago, as per the agro-food sector, obtains supplies on the international market and no longer counted on its only productive national sector. Downstream they know about job losses, and in the short term MGP IV could aggravate this tendency; It could be that after having expanded the auctions must look at reconversion by specialisation or even to the attractions they can offer to visiting fleets. Business activities could be preserved in the ports which have taken a chance on diversifying into different species (deep sea fish ) or contributions (importations). 1. 4 Solutions put forward by the professionals The professionals have sometimes sought responsibility for over-exploitation of factors which, while they exonerate fishing effort management regimes , contribute to a vessels overall turnover. Low prices for fish were denounced and provoked demands for a revision of the Common fisheries Policy The effects of terrestrial pollution, notably on coastal juvenile stocks were judged responsible for the state of certain stocks and have been cited as a demobilising factor in the profession, in the same way as the unfair competition exercised by certain "foreign" fleets operating in International waters with inferior constraints to those of community fishermen, or by certain "false amateurs" who, exempt from the burdens of social and fiscal charges, show themselves to be serious competitors and professionals. resources in The anxiety of professionals faced with the most important reduction in fishing activities in the fishing zones expresses itself in a conservative stance (the small fleet syndrome, training of young fishermen to save the profession),and a reluctance to diversify ( you will never turn fishermen into managers of crêperies or pizzerias). Beyond these emotional demonstrations, the fisherman himself recognises a real collective responsibility which, however, he has enormous trouble in assuming at the level of his own personal behaviour unless driven by economic arguments,(increasing activity to compensate for scarcity of resources and/or falling prices). The notion of overfishing remains , however, generally the fault of others. Putting forward the attraction of a port for foreign vessels, initiatives to group together activities, grouping landings, and relocating closely linked activities from fishing areas are rarely brought about spontaneously and are sometimes felt to be provocative. Diversification into other sectors is generally considered carefully, but the profession thinks that it will only have a slight effect given the few alternatives to jobs lost in those regions dependent on fishing. Among the proposed solutions one will recall that they are aimed at preserving trade and existing ports by discovering new fisheries financed by countryside exploration aid. For the downstream sector, the idea that restoring stocks will infer, in the mid or long-term, new jobs in the chain is judged as doubtful by those in the profession. Beyond the social effects tied to restructuring, the operations of the profession relative to the positive effects of successful restructuring of network business accounts and the competitivity of European products are not manifestly central to their thoughts. During these consultations on the evolution of the fishing activities of the ZDP, the profession revealed the nature of its everyday preoccupations. The sector as a whole suggested that it was living in a precarious and difficult situation justifying, in it's eyes whilst waiting for the stocks or the market to recover, a better accountability of its difficulties, either by a modification of the regulations (market, access to resources) and financial aid for new production investment or research of new resources. 2. MULTI-ANNUAL GUIDANCE PROGRAMMES AND THEIR IMPLEMENTATION. 2. 1 Understanding of the current regime 2. 1. 1 The regulatory context of the PCP: controls and sanctions During these consultations, the relative aspects of the proliferation of regulatory texts relative to the PCP, their controls and sanctions foreseen for their non -respect had been at the centre of almost all the debates. If some professionals had estimated that the MGPs were useless, in the sense that they have no effect on the sector, the majority of them recognised that, at the community level,a tool for following and orienting fleet capacities is indispensable. Many consider however that they have sufficiently reduced the fleet and that it will be difficult to take it further; <\°l The profession confirmed that in these conditions it was in favour of a strict application of existing regulations which seemed, to them, quite sufficient. They demand a strengthening of controls without which the PCP cannot work. They insist that the MGP should be planned as transparently as possible and apply to all equally. For those countries not respecting the MGPs they suggest a reduction of quotas and stopping investment aid; 2. 1. 2. MGP objectives fleet Destruction of vessels is judged overcapacities, so long as those leaving are not compensated for by new arrivals (management of entries/departures from the fleet by licensing regimes) and the fleet does not age. Aids to exportation and the formation of joint ventures are sometimes considered as factors aggravating competition in fisheries. the most certain means of eliminating community to be 2. 1. 3 Parameters for measuring MGP objectives The framing of parameters for power, and sometimes tonnage, has been criticised as a factor in preventing fleet modernisation for reasons of navigational security and respect for hygiene conditions or increasing the value of production on board. The United Kingdom would prefer a cocktail of parameters mixing power and tonnage (Vessel capacity units). Many professionals have criticised the introduction into the MGP of objectives expressed in fishing effort as opening the door for measures to reduce fishing activities in a framework which ought to remain structural. The activity reductions are not considered as measures with a definite effect, and present control difficulties. Other professionals are, on the contrary, attached to this new approach which is the only one which allows polyvalent fleets to be dealt with. Certain producers organisations representatives have suggested that an improvement in steering the market relies on a better management of the vessels activities and that this management could be taken into account in MGP. 2. 2 E X P L O R I NG NEW AVENUES 2. 2. 1 Selective gears The majority of professionals think that resorting to more selective fishing gears is desirable and request financial aid in order to popularise their use. They also request that their effects on fishing effort should be accounted for in MGP. 2. X2 Stock recovery period The profession is in favour of stock recovery periods and request that their effects should be accounted for in MGP and that their implementation should be financially compensated by IFOP. 2. 3 SPECIFIC POINTS ABOUT MGP IV 2. 3. 1 Accounting for technical progress Few professionals recognise any effect. The Commission's estimation of 2% annually has only been shared by Denmark, those others concerned estimating it to be at a level rarely higher and often nil. w 2. 3. 2 Base line Few comments on this point. It seems to be admitted that fixing objectives for MGP IV must be based upon previous objectives. 2. 3. 3. Segmentation The profession showed that it understood the parameters and understood the constraints linked to a more or less fine approach to segmentation. These witnesses expressed a relative satisfaction with the current situation even though some wished for a finer approach and above all an exemption from penalties for those placed in segments which fulfil the programme objectives. 2. 3. 4. Fixed gears The profession was largely in favour of taking account of fixed gears but was divided over the opportuneness of doing so. 2. 4 Accompanying measures 2. 4. 1 Subsidies for temporarily and finally stopping fishing. The fall in the level of subsidies with the age of vessels ( notably those which have been modernised) has been criticised despite the recent modification to regulation 3699/92. The subsidies for temporarily stopping are considered as indispensable but too difficult to access. 2. 4. 2 Subsidies for leaving fishing and pre-retirement These recent measures did not give cause for much comment. They seem to have been well received, even if they are often seen as a first step in the right direction; ai cfW«*t 3ZL \ Illustration of the decision-making process relating to the adoption of MGP IV. December 95 to March 96 Preparatory reports • Socio-economic report Independent experts' report Member state reports Communication from the Commission to the Council 10 June 1996 Council Decision fixing the guidelines for restructuring the Sector ^. Bilateral meetings Commission / Member states to translate the guidelines fixed by the Council to a national framework November - December 1996 r * r • _ 1_ ^*_ ^_^ ré^ \ J V V ) \ 13 Commission Decisions adopting MGP IV \ s. & ISSN 0254-1475 COM(96) 203 final DOCUMENTS EN 03 Catalogue number : CB-CO-96-214-EN-C ISBN 92-78-03879-2 Office for Official Publications of the European Communities L-2985 Luxembourg is

Proposal for a European Parliament and Council Directive on settlement finality and collateral security

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*^ Jt W J». I COMMISSION OF THE EUROPEAN COMMUNITIES * '• X "* W Brussels,30. 05. 1996 COM(%) 193 final 96/0126 (COD) Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE ON SETTLEMENT FINALITY AND COLLATERAL SECURITY (presented by the Commission) EXPLANATORY MEMORANDUM I. Background The present proposal for a directive is the result of a process which can be summarised as follows: The Lamfalussy Report of 19901 highlighted the important systemic risks inherent in payment systems which operate on the basis of one or more legal types of payment netting1. The Commission's attention was drawn to these matters by one of its advisory committees on payment systems, the Payment Systems Technical Development Group. In its March 1992 working document3, the Commission noted that certain features of the law in a number of Member States, together with the differences between Member States' laws relating to payment systems in general, were a source of uncertainties and risks. This view was endorsed by the Committee of Governors of the central banks of the EC4. Work began on these issues in a group of government legal experts and central bank representatives, chaired by the Commission, early in 1993. The first phase of the work has consisted of establishing an inventory of the legal situation in the areas of payment netting and settlement finality in all Member States, which has led to a more precise identification of these problems. An extensive study5, ordered by the Commission and delivered in February 1994, supported these preliminary conclusions. A first consultation hearing with the European Credit Sector Industry was held in the spring of 1994. In a second phase (since 1994) different solutions have been discussed and examined within the group of government experts. They are listed under point II. 3. A second consultation hearing with the European Credit Sector Industry was held in October 1995, which confirmed the overall validity of the approach. In the light of this process, the Commission has reached operational conclusions, in particular as regards the questions pertaining to. settlement finality and collateral security. It therefore considers that a directive should be proposed. No operational conclusions have been reached relating to securities settlement systems. These issues remain, however, under consideration within the Commission. It may be necessary to make a further proposal covering these issues in the future. Overall assessment The Commission Strategic Programme for the Internal Market clearly identified the establishment of effective cross-border payment systems as one of the few requirements that still need to be met to ensure the functioning of the Internal Market. This requires modernisation of systems, which affects both central banks and commercial banks, and consequent investment on the part of the industry. This Report to the Governors of the central banks of the Group of Ten countries, Basel, November 1990 For the purposes of the present Proposal, "payment netting" means the conversion into one net claim or one net obligation of claims and obligations resulting from payment orders which an institution either issues or receives, with the resuit that only the net claim can be demanded or the net obligation be owed. "Easier cross-border payments: Breaking down the barriers", SEC(92)621 final of 27 March 1992. "Issues of common concern to EC Central Banks in the field of payment systems", by the Ad Hoc Working Group on EC payment systems, September 1992. The iaws on credit transfers and their settlement in Member States of the El J: Report for the European Commission (IXi XV), Wilde Sapte - Brussels, February 1994. A process is already under way. Moreover a number of the large value payment systems which primarily serve the domestic market in their countries are increasingly gaining member banks from other Member States. The legal issues which are the subject of the present proposal have an important underlying influence on the design of the necessary systems and linkages, both those which are specifically conceived to transmit payments across borders and those which have a "cross-border membership". The resolution of these issues will provide a valuable foundation of certainty and serve to minimise legal risks of a systemic kind, as well as the costs which such risks entail. The need for action in this domain is all the more urgent as progress is made towards full Economic and Monetary Union. The European Council, meeting in Madrid on 15 and 16 December, has stressed that the payment system's infrastructure needs to be in place so as to ensure the smooth functioning of an area-wide money market based on the single currency. II. Subsidiarity assessment 1. What are the objectives of the directive, having regard to Community obligations? The principal objectives are threefold: • • • to reduce legal risks associated with participation in payment systems, as was pointed out in the Lamfalussy report of 1990, in particular as regards the legal validity of netting agreements and the enforceability of collateral security; to ensure that in the Internal Market payments may be made free of impediments, thus contributing to the efficiency and the cost-effective operation of cross-border payment arrangements in the European Union; by taking into account collateral constituted for monetary policy purposes, to contribute to developing the necessary legal framework in which the future European Central Bank may develop its monetary policy. The present directive also • • leads to further integration of EC banks in the domestic payment systems of other EC States. The directive therefore supports the free movement of capital stated in Article 73B to 73G and the freedom to provide services under Article 59 of the Treaty; contributes to the preparation of the third stage of EMU, for which efficient payment mechanisms are indispensable. 2. Does the action envisaged stem from an exclusive competence of the Community? Exclusive competence: Article 100A, in conjunction with Article 7A. 3. What arc the possibilities of action available to the Community A number of alternatives were considered: First, the minimalist approach of developing a solution within the current state of the national laws was examined. The question in that context was to examine whether it was possible to design a model contract which could be used by members of a payment system and which could remedy the problems concerned. This approach was rejected for two reasons: • This solution concerns only the parties to the contract, while it is necessary that third parties be legally bound. This is illustrated by the following case: a Country A bank participates in a multilateral netting system with a central settlement agent in Country B. The Country A bank goes bankrupt. In that ease, the creditors -or the liquidator- of the bankrupt Country A bank, attempting to recover part of their claims against that bank, are likely to challenge the netting agreement under Country A law, since that law may not necessarily recognise multilateral netting. If such action were successful, it could jeopardise the whole netting system. • Insolvency law contains so-called "ordre public" rules which can overrule contractually stipulated provisions, liven if a payment system agreement stipulated that in case of insolvency of a member the payment orders introduced before the moment of pronouncement of insolvency proceedings cannot be unwound, a zero-hour-rule e. g. , as it exists in a number of Member States, would overrule that contractual arrangement. Consequently, unwinding could happen, with potentially far-reaching and damaging consequences for the payment system concerned. A second possible solution consisted of the private international law approach, under which it is possible to agree that a payment system established under the laws of Country A, a country whose commercial law recognises netting and whose bankruptcy laws do not interfere with the proper operation of payment systems, would be governed entirely - including all its members from EU countries - by the laws of country A. Whether Member State B's law recognises the finality of netting applicable to bank B, or whether that State's insolvency law has provisions "d'ordre public", like the zero-hour rule, would no longer be relevant. Such an approach did not in the final analysis, however, prove to be attractive. If chosen, it would mean that the courts in every Member State would in principle need to be in a position to interpret and apply the different branches of law (commercial law, insolvency law, etc. ) of all other Member States. Such a solution, at least when standing alone, seemed unnecessarily cumbersome. A third possibility was to recommend to the Member States, without any binding obligations, the necessary modifications in their laws. This approach has some procedural attractions in largely bypassing the EU legislative process but it would not substantially assist the governments of Member States, who would still have to draft and implement any necessary legislation. From the point of view of the financial institutions and payment systems, the solution would lack transparency and legal certainty. Any slight advantage of proceeding in this way was felt to be outweighed by the disadvantages. Therefore, as explained in detail in section I above, a binding instrument is now deemed both timely and necessary. 4. Is uniform legislation necessary or is a directive setting out the general objective and leaving implementation thereof to the Member States sufficient? Uniform legislation is not necessary. A directive setting out the general objectives, as they are outlined hereunder, is sufficient. Section I of the directive deals with the scope of the directive and defines the necessary terms; Section II of the directive lays down the general principle, the objective of which is to ensure that payment netting is made legally enforceable under all jurisdictions and its effects binding on third parties; Section III provides for the irrevocability of payment orders in accordance with the rules of the payment system concerned; Section IV of the directive lays down the general principle, the objective of which is to : • • ensure that insolvency proceedings or any other rule or practice do nol have a retroactive effect on the rights and obligations of participants. determine which insolvency law is applicable to the rights and obligations in connection with direct participation in a payment system in the event of insolvency proceedings against a participant in that payment system. Section V of the directive lays down the general principle, the objective of which is to insulate collateral security from the effects of the insolvency law of the Member State of a failed participant. These provisions set out the general objective pursued, thus leaving implementation to the Member States; where appropriate, institutions are free to determine the precise contents of these general principles. III. Detailed commentary on the articles Article 1 This Directive's main goal is to reduce the systemic risk associated with participation in Payment Systems. There was a general consensus that this directive should have the widest scope possible. To this effect, the directive covers cross-border payment systems as well as domestic systems. Furthermore, it applies to the following two categories: • EC institutions which are participants in third country payment systems and collateral security constituted for such a payment system • Third country institutions which participate in an EC Payment System and the collateral security constituted in favour of that payment system The inclusion of the first category in the directive's scope implies that the benefits of this Directive are extended to third country payment systems as far as their EC participants are concerned. Third country payment systems as such are of course not covered by the directive, but their participants are insofar as they are EC institutions within the meaning of Article 2 (i). As far as the second category is concerned, the essential interest of its inclusion in the directive's scope lies in the fact that it makes it possible to insulate collateral security, pledged by a third country institution in an EC Member State, from a possibly universal insolvency law of that third country. Finally, with a view to the establishment of the future European Central Bank, the pledging of collateral security will increasingly be cross-border. The same problems arise in that respect as in the case of the pledging of collateral in the framework of payments systems. Therefore, the scope of this proposal has been extended to collateral security, pledged in connection with monetary policy operations. Article 2 "institution" has been given a wide scope, so as to include not only credit institutions in the sense of the first Banking Directive, but also investment banks, giro and postal banks and any other undertaking which participates directly in a payment system. "payment order" means an instruction given to carry out a transfer, be it credit or debit, by a book entry on the accounts of a credit institution or of a central bank. On the accounts of a credit institution, since it is this type of payment system which calls -from a public policy standpoint- for the kind of protection which this Proposal for a Directive provides for. On the accounts of a central bank, is added to anticipate the foreseeable development of real time gross settlement facilities, which necessitate movements on the accounts of the Central Banks. "payment system" is defined widely, so as to include systems, regardless of whether they settle on a gross or net basis and of whether they are based on multilateral or bilateral arrangements. Of course, a federation of payment systems in itself is also covered by the directive. Article 3 Many payment systems, handling very large payments ("large value") or smaller values ("retail") depend on the technique known as netting^ or set-off. "Payment netting" is the conversion into one net claim or one net obligation of claims and obligations resulting from payment orders which an institution either issues to one or more other institutions or receives from one or more other institutions, with the result that only the net claim can be demanded or the net obligation be owed. This has the effect of reducing greatly the number of settlement transactions required to process a given number of payments. Instead of settling each payment order individually as it arises during the day the banks involved in a netting agreement settle once by paying (or receiving) a single net balance to (or from) the other members of the system. The legal enforceability of a netting operation with institutions from different Member States ultimately depends on the law of the Member State of origin of these institutions. In a number of Member States netting, especially multilateral netting, is not enforceable under the current state of legislation. If the liquidator of a failed participant in a payment system were on that basis to challenge the netting, this would mean that he could repudiate the net settlement debt, arrived at by netting. Instead he could insists on payment to him of all the individual underlying amounts originally due to that institution. As for the amounts due from the failed institution, they will be claims on paper in the insolvency proceedings and unlikely to be met. This phenomenon of repudiating the debt and accepting the amounts originally due, is called cherry-picking. The consequence of cherry-picking is serious disruption in the payment system at best, at worst the payment system might break down (systemic risk) and cause in turn the inability of other members in the payment system to meet their obligations (knock-on effect). Therefore, Article 3(1) provides that netting is legally enforceable and binding on third parties, even in the event of the opening of insolvency proceedings, insofar as the payment orders have been introduced into the payment system before the opening of insolvency proceedings. Article 3(2) specifically focuses on the cases in which a participant who realises that bankruptcy is becoming inevitable, introduces payment orders into a payment system before the declaration of From the legal point of view, "netting" in this sense is the same technique as is the subject of the proposal for a directive on contractual netting. However the latter deals with unmatured obligations, netted on a bilateral basis only, whilst the present initiative concerns payment streams netted bilaterally or multilaterally. Both types of netting differ markedly from the concept of position netting, as used in the Capital Adequacy Directive. insolvency in order to remove assets to the detriment of the creditors. Therefore, this article confirms that the directive does not shield fraudulent payment orders from invalidation. Such invalidation will, however, not be permitted to occur through the unwinding of the netting operation, something that the directive aims to avoid at all costs, but rather outside the payment system, or indeed in a subsequent netting cycle (via a reverse order). Article 4 It is commonly agreed that the possibility of a significantly large payment being revoked can generate systemic risk, if the revocation occurs during the process leading to settlement in a payment system. It would be unacceptable, on the other hand, to disproportionately limit thé freedom of operation and the freedom of contract of the various parties to a payment system in attempting to reduce or minimise this risk. Thus, having recognised that revocation might otherwise lead to an unwinding of settlement. Article 4 (1) precludes the revocation of a payment order after a contractually agreed time, not only by the parties to the payment system agreement, but also by third parties, e. g. a sub participant. This prohibition is important not only in the case of netting, but also in the case of real time gross settlement arrangements. This does not mean, of course, that a payment order which was not due by the originator, but has been introduced into the payment system, is forever lost to him. Article 4(2) confirms that, if the originator, i. e. a customer, has a right against the beneficiary to reclaim an amount that has been introduced into the payment system, such a right is not cancelled, but will only have to be exercised outside of the payment system, or by a reverse payment operation in the next netting cycle. Articles 5 and 6 Irrespective of whether a payment system operates on the basis of netting or gross-settlement, the different insolvency laws in the different Member States cause further problems, where rules "d'ordre public" included in these insolvency laws would lead to the possibility of cherry-picking, with its very damaging consequences, as described above. This is the case for the so called "zero-hour" rule, which gives retroactive effect to the pronouncement of insolvency. A consequence of this rule is that payment orders introduced after zero hour of the day of pronouncement of insolvency of a participant in a payment system but before the pronouncement of the insolvency, could be challenged by a liquidator of an insolvent institution. The latter would then be in a position to insist on payment to him of all the individual underlying amounts originally due to that institution. As for the amounts due from the failed institution, they will be claims on paper in the insolvency proceedings and unlikely to be met. In order to avoid this possibility, Article 5 provides that insolvency proceedings do not have retroactive effect. There may, however, exist other provisions "d'ordre public", beyond the so called zero-hour rules, which can potentially lead to cherry-picking. This is why Article 6 has been designed as a catch-all provision, which is to cover all those cases which have not been identified but are believed to exist. Therefore, Article 6 states that "in the event of insolvency proceedings against an institution which participates directly in a payment system, the rights and obligations arising from or in connection with participation in that payment system, shall be determined by the insolvency law of the country where the payment system is located. " In practice, Article 6 does, of course, not imply that a separate insolvency proceeding has to be opened in the Member State of location of the payment system. The insolvency of a member institution would continue to fall under the insolvency law of the Member State where that institution is established, as is currently the case. If the liquidator, however, would wish to draw on insolvency provisions "d'ordre public" to challenge a payment made through the payment system, he would have to apply the insolvency law gJl. lk* MuilheL Staleol" location of the payment system. This approach has the advantage that the parties in a payment system only have to examine one insolvency law, namely the insolvency law of the Member State of location of the payment system, instead of having to examine and attempt to reconcile the insolvency law of the Member State of origin of every single participant. This would contribute to reducing costs and eliminating legal uncertainty. Article 7 Finally, the directive addresses the problems associated with collateral security which supports participation in payment systems, on a cross-border basis. Its objective is to avoid a situation where in the case of insolvency of a participant in a payment system, the insolvency law of that participant's Member State would not recognise the validity of collateral security constituted in another Member State. Article 7(1) therefore provides that, in the case of insolvency of a participant, the rights of the pledgee shall not be affected by the insolvency of that participant. This rule is justified for public policy reasons. Vast sums are transferred through the payment systems on a daily basis: if one member were not able to meet its obligations and the collateral could not be realised, this could -in a worst case scenario- have disastrous consequences for the payment system as such, causing no less than the collapse of such a system, with a devastating knock-on effect in financial markets. It should be pointed out that this Proposal does not alter the rule of law applicable to collateral security. This remains, as is the current situation, the law of the Member State where the collateral is located, in accordance with the principle of lex rei sitae. In its second paragraph, Article 7 provides that in the case of a universal third country insolvency law, the effects of that law do not extend to the rights of the pledgee in connection with participation in a payment system or in connection with monetary policy operations, if that collateral security is constituted in a Member State. DRAFT PROPOSAL FOR A EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE ON SETTLEMENT FINALITY AND COLLATERAL SECURITY THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 100A thereof. Having regard to the proposal from the Commission, Having regard to the opinion of the European Monetary Institute, Having regard to the opinion of the Economic and Social Committee, In accordance with the procedure laid down in Article 189b of the Treaty establishing the European Community, Whereas the Lamfalussy report of 1990 to the Governors of the central banks of the Group of Ten Countries demonstrated the important systemic risk inherent in payment systems which operate on the basis of one or more legal types of payment netting, be it bilateral or multilateral, on the one hand; whereas the reduction of legal risks associated with participation in real time gross settlement payment systems is of paramount importance, given the increasing development of these systems, on the other; Whereas the reduction of systemic risk regards in particular the finality of settlement and the enforceability of collateral security; whereas collateral security is meant to comprise all means provided by a participant to the other participants in the payment system to secure rights and obligations in connection with that payment system including, among other means, repurchase agreements, insurance contracted by a participant in a payment systems for the benefit of the other participants; Whereas, by ensuring that payments and movement of capital may be made free of impediments in the Internal Market, the present directive contributes to the efficient and the cost-effective operation of cross-border payment arrangements in the European Union; whereas the directive thereby follows up the progress made towards completion of the internal market, in particular towards the freedom to provide services and liberalization of capital movements, with a view to the realisation of economic and monetary union; Whereas the present directive is intended to cover payment systems of a domestic as well as of a cross-border nature; whereas debit as well as credit transfers are covered; whereas the directive is applicable to EC payment systems and collateral security constituted by their participants, be they EC or third country participants, in connection with participation in these payment systems; whereas the directive also covers EC institutions which participate in third country payment systems; whereas financial flows are increasingly taking place on a world-wide level; whereas EC institutions and EC payment systems thus are bound to establish and maintain close operational links with third country payment systems and to participate in them; whereas it is essential, therefore, that the cross-border relations between EC institutions and EC payment systems on the one hand and third country payment systems on the other are addressed and facilitated by this directive with a view to avoiding impediments for EC institutions to participate in third country payment systems arising from a of lack of legal security; whereas efficient EC payment systems are vital for the Internal Market and cannot operate properly without links to third country payment systems because financial markets are inextricably connected with one another; J Whereas the directive, by covering collateral security provided in connection with monetary policy operations, assists the EMI in its task of promoting the efficiency of cross-border payments with a view to the preparation of the third stage of economic and monetary union and thereby contributes to developing the necessary legal framework in which the future European Central Bank may develop its monetary policy; Whereas the purpose of the present directive is to ensure that netting is legally enforceable under all Member States' jurisdictions and binding on third parties; whereas the purpose of the directive is also to ensure that payment orders cannot be revoked after a contractually agreed time; whereas the directive aims at securing that insolvency proceedings do not have a retroactive effect on the rights and obligations of participants; whereas the present directive furthermore aims at determining -in the event of insolvency proceedings against a participant in a payment system- which insolvency law is applicable to that part of the insolvency which the rights and obligations in connection with direct participation in that payment system are; whereas the present directive finally intends to insulate collateral security from the effects of the insolvency law applicable to the failed participant; Whereas the present Directive also applies to the relationship between an institution and a member of a payment system which transfers the payment orders of such institution to the payment system, given that this relationship can be considered in itself to be a separate payment system; Whereas the adoption of the present directive constitutes the most appropriate way of realising the above objectives; whereas the present proposal is nessary to realise these objectives and does not go beyond the goal of realising these objectives; HAVE ADOPTED THIS DIRECTIVE: /. SCOPE and DEFINITIONS Artkk ]-SWJK The provisions of this directive shall apply to : (1) any EC payment system operating in any currency and the ECU and to collateral security provided in connection with participation in such a system. (2) any EC institution which participates directly in a third country payment system and to collateral security provided in connection with participation in such a system. (3) collateral security provided in connection with monetary policy operations. /fe For the purpose of this directive : Artkk 2- Définitions (a) "institution" means any undertaking as defined in Article 1 of Council Directive 77/780/EEC including the institutions set out in the list in Article 2(2) thereof, which participates directly in a payment system, and any other undertaking which participates directly in a payment system; (b) "direct" participation means participation in a payment system entailing responsability for settlement; (c) "EC institution" means any institution which has its registered office in a Member State; (d) "third country institution" means any institution which is not an EC institution; (e) "payment order" means any instruction to place at the disposal of a final recipient an amount of money by means of a book entry on the accounts of a credit institution or a central bank; (I) "insolvency proceedings" means any measure which, for reasons of impending or actual inability to meet financial obligations, is pronounced by a judicial or administrative authority for the benefit of a collectivity of creditors, and which precludes from making payments or disposing of property; (g) "payment netting" means the conversion into one net claim or one net obligation of claims and obligations resulting from payment orders which an institution either issues to one or more other institutions or receives from one or more other institutions, with the result that only the net claim can be demanded or the net obligation be owed; (h) "payment system" means any written agreement between two or more institutions for executing payment orders; (i) "EC payment system" means a payment system located in a Member State. A payment system shall be deemed to be located in the Member State the law of which has been chosen by the institutions which participate directly in that payment system. In the absence of choice, the payment system shall be deemed to be located in the Member State where the settlement takes place; (j) "third country payment system" means any payment system which is not an EC payment system; (k) "monetary policy operation" means an outright (spot and forward) buying and selling operation in the financial markets or such an operation under a repurchase agreement, or lending or borrowing of claims and marketable instruments, whether in Community or in non-Community currencies or in precious metals, by a Member State Central Bank or by the future European Central Bank; it also means the conduct of credit operations, by a Member State Central Bank or by the future European Central Bank, with credit institutions or other market participants, with lending being based on adequate collateral; M (!) "collateral security" means all assets, provided for the purpose of securing rights and obligations potentially arising in a payment system or provided to Member State Central Banks or to the future European Central Bank in connection with monetary policy operations. //. FINALITY of PAYMENT NETTING Artkk 3-Payment Netting ( 1 ) Payment netting is legally enforceable and shall, even in the event of insolvency proceedings against any institution which participates directly in a payment system, be binding on third parties, provided that the payment order was entered into the payment system before the opening of insolvency proceedings. The moment of entrance shall be defined by the rules of that payment system. (2) Any rule on the setting aside of contracts and transactions entered into before the opening of insolvency proceedings, shall not lead to the unwinding of the netting. ///. REVOCA TION of PA YMENT ORDERS Article 4-Revocation ( 1 ) A payment order may not be revoked either by an institution which participates directly in a payment system or a third party as against the other direct participants in that payment system after the moment defined by the rules of that payment system. This rule applies notwithstanding the opening of insolvency proceedings. (2) Any right which the originator of a payment order might have to a refund shall be exercised without prejudice to paragraph 1. IV. NON-RETROACTIVITY and APPLICABLE INSOL VENCYLA W Article S-Non-Retroactivity Insolvency proceedings shall not have retroactive effects on the rights and obligations of an institution in connection with direct participation in an EC payment system. Any other rule or practice which has a retroactive effect shall be superseded. Article 6-Applicable Insolvency Law In the event of insolvency proceedings against an institution which participates directly in a payment system, the rights and obligations arising from or in connection with direct participation in that payment system, shall be determined by the insolvency law of the country where the payment system is located. V. INSULA TION of the RIGHTS of the PLEDGEE from the EFFECTS of the INSOLVENCY of the PLEDGER Article 7-Insulation from the effects of insolvency (1) The rights of a pledgee in connection with liabilities of one participant to one or more other participants in a payment system or the rights of monetary authorities to whom collateral security has been pledged in connection with monetary policy operations, shall not be affected by the opening of insolvency proceedings against the pledger. The collateral security shall be realised for the satisfaction of rights in connection with participation in a payment system or with monetary policy operations with priority over all other creditors. (2) Where a third country institution constitutes collateral security in a Member State in connection with participation in an EC payment system or in connection with monetary policy operations, the rights of the pledgee shall not be affected by the opening of insolvency proceedings against that third country institution. VI. FINAL PROVISIONS Article 8 - Implementation (1) Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive before 31 December 1998 at the latest. They shall immediately inform the Commission. (2) When Member States adopt these measures, they shall contain a reference to this Directive or shall be accompanied by such reference at the time of their official publication. The procedure for such a reference shall be laid down by the Member States. (3) Member States shall communicate to the Commission the text of the laws, regulations and administrative provisions which they adopt in the field governed by this Directive. In this Communication Member States shall provide a table of correspondence showing the national provisions which exist or are introduced in respect of each article of this directive. Article 9 - Report to the European Parliament and the Council A3 No later than three years after the date mentioned in Article 8(1), the Commission shall present a report to the European Parliament and the Council on the application of this Directive, accompanied where appropriate by proposals for its revision. This Directive is addressed to the Member States. Article 10 Done at Brussels, For the European Parliament For the Council The President The President AH BUSINESS IMPACT ASSESSMENT Proposal for a European Parliament and Council Directive on settlement finality and collateral security l. a. Taking account of the principle of subsidiarity, why is Community legislation necessary and what are its main aims? Research carried out on behalf of the Commission by banking lawyers1, together with the analyses made by the Commission's working group, confirm that there are crucial differences between the laws of the Member States which prejudice the legal validity of certain key features of payment systems2. One of the central features of a sound payment system is that there must be no doubt as to when and how settlement becomes final. In the current situation, finality in a payment system whose participants are domiciled in different legal jurisdictions,(as under the Treaty and the Second Banking Directive will increasingly be the case) depends ultimately on the laws of the various Member Slates whose institutions are members. Another essential prerequisite is that there must be legal certainty that in the case a participant fails to meet its obligations vis-à-vis the payment system, the latter can realise the collateral security pledged by that participant. In the current situation, the only way to ensure that, is to constitute the collateral security under the same law as the payment system itself, so as to avoid conflicts of law. This is contrary to the principle of an Internal Market. Legal certainty as to collateral security and as to finality of settlement can only be achieved if the national legislations are changed in a similar way in each Member State. The most efficient way of achieving this goal is by way of a directive laying down the necessary minimum standards. l. b. Are there likely to be any wider benefits and disadvantages from the proposal? If any effect is to be expected for the financial sector, it will be one of protection of current employment. The proposal's main goal is to strengthen the stability of payment systems and therewith of inter bank financial relations and to avoid the knock-on effects that currently could arise in the case of bankruptcy of a large participant in a payment system. Consequently, the loss of employment that would occur in such a case would be avoided as well. The laws on credit transfers and their settlement in Member States of the EU: Report for the European Commission (DG XV), Wilde Sapte - Brussels, 1994. The key differences referred to are: - - settlement finality in netting schemes: different possibilities of unwinding the settlement; the effect of insolvency of a participant, on netting schemes: different powers of liquidators to prevent settlement occurring or to unwind it; rules on revocation: different rules on the time when a payment order becomes irrevocable - Moreover, the establishment of a legal framework in order to rule out the legal uncertainty associated with cross-border payment systems, is likely to encourage the further development of these systems. The consequent increase in the volume of business might therefore generate employment. I. e. Were alternative proposals considered, and with what outcome (e. g. codes of conduct, voluntary arrangements)? As explained under II. 3 of the explanatory memorandum, a number of other possibilities were considered, but these were abandoned for the reasons exposed. 2. Who will be affected by the proposal? Which sector of business? What are the size classes and what is the total employment? The proposal will be applicable to any undertaking which participates directly in a payment system. In practice, the large majority of these undertakings will be credit-institutions. Are there any significant features of the business sector, e. g. dominance by a limited number of large firms? The main feature of this sector is the hitherto lack of integration of payment systems at European level. Are there implications for very small businesses, the craft sector or the self-employed? Although small businesses are very unlikely to constitute a payment system among themselves, such a system would be covered by the Directive. However, as end-users of payment systems, they will benefit from the proposal and its effect of elimination of legal risks, increased efficiency and reduction of costs. These remarks apply equally to the craft sector and the self-employed. Are there particular geographical areas in the Community where these businesses are located? No. 3. What will businesses have to do to comply with the proposal? What will be the compliance costs? No costs other than the legislative ones are to be expected. Are there other administrative procedures or forms to complete? No. Are licenses or marketing authorisations required? No. Will fees be charged? No. M 4. What economic effects, costs and benefits is the proposal likely to have? On employment? Within the payment systems industry, the net effect, if such effect is to be expected at all, should be positive. Within the segment of SMEs, employment benefits are expected (more efficient payment services => widening of intra-EU trade potential => contribution to growth and higher employment => greater and more specialised demand for efficient payment services, etc. ). On investment and the creation or start up of new businesses? Marginal effect, if any. On the competitive position of businesses, both in the Community and third countries' markets? The efficiency gains and reductions in costs for business within the Community will be positive (See paras. 1 and 4 above). Third country businesses will benefit from the advantages of this Directive inside the Community to the same extent as Community businesses do. The unilateral extension of the benefits of this Directive to third country payment systems, e. g. the protection against undue revocation, the protection against retroactive effects of insolvency proceedings and the insulation of collateral security from foreign insolvency laws, will also benefit third country payment systems. Community businesses will indirectly benefit from the advantage of the extension of the Directive's scope to the EC participants of the third country payment systems. Therefore, no distortion of competitiveness is to be expected. On public authorities for implementation? Legislative costs of passing the necessary domestic legislation. Are there other indirect effects? No. What are the costs and benefits of the proposal? • costs: no costs, other than the legislative ones are to be expected. • benefits: -elimination of legal risks associated with participation in payment systems, leading to more efficient and cost-effective operation of EC payment systems -completion of the Internal Market: the proposal will also facilitate the access by banks from one EC Member State, into the payment systems of another EC Member State (remotely or via a branch). -further integration of the EC financial sector, both domestically and cross-border, thus contributing to the free movement of capital and to the freedom of cross-border services. -cross-border use of collateral securities is facilitated. This contributes to the free movement of capital, to the freedom of cross-border services, to the development of securities markets, to developing the necessary legal framework in which the future European Central Bank may develop its monetary policy. • balance: overwhelmingly positive on the benefit side. A 5. Impact on SMEs. Does the proposal contain measures to take account of the specific effect on SMEs - if not, why not? Are reduced or different requirements appropriate? No. No direct effect on SMEs. Consultation 6. Indicate at what stage the consultations were undertaken and the date of publication of the prior notification of an intent to introduce legislation? The Commission has, over many years, promoted the fullest consultation of all interested parties and earliest disclosure of its line of policy in this area. This has materialised in the following steps: -Green Paper3 (consultation paper) of September 1990, calling lor comments from all interested parties; annexed to the Green Paper was a decision to set up two consultative groups; -setting up of two permanent consultative groups on payment systems in March 1991, with intensive frequency of meetings throughout 1991 and early 1992, leading to reports to the Commission (in February 1992) published in March 1992; -Commission working document of March 19924, based on the detailed reports of these consultative groups, announcing the Commission's proposed policy, including intent to introduce legislation in this respect. furthermore, two consultative hearings with representatives of the European Credit Sector Industry were held in the spring of 1994 and October 1995, at key stages of the preparatory work leading to the present proposal (see Section I above; background). List of organisations which have been consulted about the proposal and set out in detail their main views, including their concerns and objections to the final proposal. Why is it not possible or desirable to accede their concerns? European credit sector associations : The European credit sector associations have been consulted throughout. Two "hearings" have taken place with the Commission and its working party, the latest in October 1995. There is an overall support for this proposal, which is deemed essential by the sector itself. Government experts, including representatives of the EC central banks: Governments representatives which were members of the Commission's working group, take a positive stand on this proposal. There are differences on some technical issues, which it is not possible to resolve entirely within the working group. The main point at issue is that some delegations wished to have an (even more) ambitious approach, covering so called "securities settlement" or "obligations netting". EMI: a representative of the EMI has been present in the working group as an observer. Were the SME Business Organisations formally consulted? If not, why not? No. However, SMEs and Retailer organisations were kept regularly informed of progress being made, through their representatives in the Commission's consultative groups on payment systems. 1 Discussion paper on "Making payments in the Internal Market", COM(90)447. 4 "Hasier cross-border payments: breaking down the barriers", SHC(92) 621 of 27 March 1l>92 A Monitoring and Review 7. Explain how the effects and compliance costs of the proposal will be monitored and reviewed. How will complaints be dealt with? Can the proposal, once it is legislation, be amended easily? The proposal contains in its Article 9 an undertaking on the part of the Commission to report on these matters to the European Parliament and Council. The necessary preparation for this will be done by the Commission acting with its existing two consultative groups on payment systems. There is no comitology procedure, therefore amendments to the proposal, once this is adopted, will require normal legislative procedures. Contact point Directorate General XV Dr. Peter TROBERG Av. de Cortenberg, 107 B-1040 Brussels Tel: 295. 41. 09 295. 79. 78 295. 32. 19 295. 94. 62 Fax: 295. 07. 50 11 ISSN 0254-1475 COM(96) 193 final DOCUMENTS EN 09 Catalogue number : CB-CO-96-201-EN-C ISBN 92-78-03483-5 Office for Officiai Publications of the European Communities L-2985 Luxembourg 20

Proposal for a COUNCIL DECISION concerning the objectives and detailed rules for restructuring the Community fischeries sector for the period from 1 January 1997 to 31 December 2002 with a view to achieving a balance on a sustainable basis between resources and their exploitation

http://publications.europa.eu/resource/cellar/776273cb-be1a-40d8-a9e0-0f9e70cf0c14

eng

COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 29. 05. 1996 COM(96) 237 final 96/0142 (CNS) Proposal for a concerning the objectives and detailed rules for restructuring the Community fisheries sector for the period from 1 January 1997 to 31 December 2002 with a view to achieving a balance on a sustainable basis between resources and their exploitation (presented by the Commission) EXPLANATORY MEMORANDUM 1. Context of the restructuring of the Community fleet The Community fishing fleet is responsible for an overexploitation of the resources, to the extent that a certain number of fish stocks are in a critical state, far outside the limits imposed by the principles of sustainable development. This situation puts the endurance even of fishing activities imp peril, and weakens the whole of the Union's fishing industry and the economic equilibrium of areas dependent on fishing. Very recently the Council of Fisheries Ministers were forwarded Communications from the Commission concerning the further degradation of fishing conditions and the remedies that it should be taken as soon as possible to bring the industry out of this deep crisis. It should be recognized that amongst the primary causes of this situation is the large overcapacity of the Community fleet, which successive capacity reduction programmes have all failed to control sufficiently. Under these conditions, it is essential to pursue the restructuring of the Community fleet in order tp guarantee a sustainable balance between the resources and their exploitation. 2. Preparatory work: biological considerations and consultations with professionals In order to determine the appropriate nature and magnitude of measures to restructure the Community fishing fleet, the Commission has worked along two lines: the assignment of a group of independent and internationally renowned experts to prepare a report to advise the Commission on the measures to adopt in order to adjust the levels of fishing mortality by fishery and fleet to values that are compatible with the sustainable development of the fisheries; the organization of 35 professional forums at regional and European levels on the social and economic consequences of the restructuring measures for areas dependent on fishing and for the fishing industry. The conclusions of the report of the group of experts was delivered to the Commission on 23 March and showed that a rapid reduction in the fishing mortality was needed in a large number of fisheries, by at least 20% to bring about a real effect and by at most 40% initially so that the first effects can be measured. For certain stocks where the state is judged to be critical the measures must be immediately put into action, for vulnerable stocks they must be undertaken as soon as possible, and for stocks in equilibrium it would be necessary to neutralize the effects of technical progress. The regional consultations showed that the fleet restructuring measures should be differentiated and applied over a reasonable period of time given their impact on all of the activities in coastal areas that linked to fishing. It is clear that it would be possible to give particular treatment to the case of small coastal fisheries, a segment of the fleet supporting many jobs and taking resources of local importance. The specific character of certain fishing activities was made apparent during the course of these consultations and should be taken into account in the preparation of the restructuring programmes, Member State by Member State, so that a certain flexibility can be introduced depending on the particular circumstances. 3. Justification for the Commission proposal. 3. 1. General objectives The objective is to bring the fleet size, maritime region by maritime region, fleet segment by fleet segment, to levels that guarantee the sustainability of fishing activities and a higher value for fish resources. The proposal of the Commission aims to guide the evolution of the fishing capacity of the European fishing fleet over 6 years, a sufficiently long term perspective to absorb the impact in areas dependent on fishing while also respecting as closely as possible the management recommendations of the scientists, thus ensuring a stable economic balance in areas dependent on fishing through the sustainability of fishing activities. To this effect a clear distinction is made between static gears, subject to other particular provisions (technical measures), and towed gears. Moreover, the proposal allows Member States to implement specific programmes to manage fishing effort, which would permit them to reduce fishing activity (another parameter of fishing effort) and in this way obtain an adjustment of the fleet capacity reductions required. In the case that the measures proposed and analysed according to the procedures of Article 4 of Regulation 109/94 are accepted, the objectives of their multiannual guidance programme would be revised according to the procedures envisaged by Article 18 of Regulation (EC) No 3760/92 (Management Committee). These specific programmes continue tP ensure that the fishing effort ceilings prescribed by fleet segment are respected. For the segments of the fleet that use static gears a general reduction of 2% per year will be requested to compensate for the average affect of technical progress on fishing effort. The Member States will moreover be required to take measures to limit the fishing effort of these fleets as appropriate. For the segments of the fleet that use towed gears it is appropriate to adapt the scope of the measures to the biological constraints presented by the various fisheries as well as the characteristics and peculiarities of the sector. To this end, the Commission has identified 5 types of fisheries or groups of fisheries. The detailed rules for the passage from the objectives fixed for the segments of the MGP III to the objectives for the segments of MGP IV will be adopted, Member State by Member State, in the framework of the provisipns pf Article 5 pf Regulation 3699/93 cpncerning the adpptipn pf an MGP IV. These detailed rules ensure that the effort ceilings by segment required by the present Decision are respected. 3. 2 Adaptation of measures applicable to towed gears to the conditions of different fisheries 3. 2. 1. Absolute biological urgency (30 + 10 = 40) This must be applied without concession to stocks whose state is critical in the sense that there is a risk of biological collapse that would certainly be followed by the economic ruin of the corresponding fleet segments. For these segments the Commission proposes a firm reduction of 40% over 6 years, of which 30% over the first three years. This urgency applies to the majority of demersal fisheries of the North Sea and the Baltic, with the particular case of Baltic Salmon for which the closure of the fishery is proposed but for which could be limited tp a reduction of fishing effort of (30 + 20 = 50) for socio-economic reasons. Another particular case is that of the sardine fishery off Portugal, where the state of the stock justifies the biological urgency measure. In the vital interests of the fishermen themselves the Commission considers that its duty is to defend this position without any concession. 3. 2. 2. Lesser urgency (20 + 20 » 40 Or 20 + 10 = 30 or 15 + 15 = 30) These fisheries show obvious signs of overexploitation but their ability to recover (pelagics) or the particular characteristics of their ecological niche (benthics) offer a better chance for the survival of the species. In this case the Commission proposes reductipn rates that are in line with scientific analyses but considers that for specific social reasons there is room for negptiation. 3. 2. 3. Prevention of the expansion of fishing effort ( 6 + 6 = 12) In prder tp prevent an expansipn pf fishing effort in all the Pther fisheries cpnsidered tp be in equilibrium a general reductipn pver the peripd pf 6 years pf 12% in capacity is requested to neutralize the effects of technical progress, estimated at 2% per year. 3. 2. 4. Permit a moderate expansion of fishing effort (0 + 0 = 0) The analyses of the tropical tuna fisheries or those of deepwater species allow, according to the geographical area, the possibility of a small increase in fishing effort that, taking into account technical progress, results in a stabilization pf the pbj écrives. 3. 2. 5. Particular cases of bilateral and multilateral fisheries agreements For multilateral agreements concerning fisheries for which there exists scientific opinion on which to fix guidelines for sustainable levels of fishing effort (NAFO/OPANÔ, NEAFC, IATTC), it is proposed that the rates and timing of the reductions conform to the opinions of these sources. For the resources accessible tp Cpmmunity fishing vessels in the framewprk pf bilateral fishing agreements concluded between the Community and a third cpuntry, these depend both on biological considerations and on political factors. In consequence, the capacity of the fleet segments involved in bilateral fisheries agreements will be adjusted in accordance with the resources accessible under these agreements, as expressed in the provisions of the agreements. Tp this end the segments cpncerned will be identified in the framewprk pf the provisions applied under Article 5 of Regulation 3699/93 concerning the MGP IV. 3. 3. The real effects of restructuring measures on the Community fleet Although these measures may appear severe the effects should be considered relative to production capacity and employment in the areas depending on fishing. It will be remembered that the application in MGP III pf reductipn rates pf 20%, 15%, and 0% pn the demersal, benthic and pelagic resources led to real reductions in global capacity pf only about 8% It will be the same fpr the MGP IV where the coastal fleet is relatively preserved, and also many segments target stocks that are not very sensitive. The average global rate of reduction programmed fpr the whple Cpmmunity fleet will npt hpwever be known until after the precise formulation of the objectives in the Commission decisions adopting the MGP IV. 4. Impact of the restructuring on the areas dependent on fishing and the fishing industry Since 1991, when the contribution of the "Fisheries" funds to the reform of the structural funds was examined, the Commission began an extensive socio-economic study in theUnion's most representative areas dependent on fishing*1*. Between September 1995 and March 1996 the Cpmmissipn conducted 35 regional and European consultations with the industry with a view to the prepraration of the MGP IV and to appreciate the socio-economic consequences linked to the restructuring of the sector. It is useful to first of all assess what could become of the sector without a restructuring programme. The danger of the collapse of certain stocks warns of the economic ruin of certain areas dependent on fishing. Thereafter, for the stocks not presenting this danger, one would probably witness a slow deterioration in the exploitation conditions linked to an overexploitation that the weakness of market prices would encourage. One has only to see the general economic situation of the sector and the constant decline in employment to be convinced that energetic measures must be taken to break this vicious circle. In the framework of a programme for the elimination of fleet overcapacity, the measures adopted will result in the cessation of activity for a certain number of fishing vessels. These vessels will not be replaced. The vessels that are left will however no longer be overexploiting the resources, and will improve their own situation as the global production increases. It is convenient here to distinguish the economic effects from the social effects : (1) The 21 regional socio-economic studies in the fisheries sector (1991/93)and their synthesis (1993). From the economic point of view the expected effect of the restructuring is: a significant improvement in the economic results of fisheries companies; greater competitiveness of European products, to the benefit of the industry. l From the social point of view, the short term effect will be a reduction in the number employed in the industry. However in the medium term, with an expected increase in production, the "downstream" employment will be regenerated. In order to minimize the social consequences pf the restructuring pf the Cpmmunity fleet, the Cpmmissipn prpppses 5 type pf measure: a spreading pf the capacity reductipn measures over a longer period of time; less rapid reductions for the stocks in less danger; particular treatment for small scale fisheries; the resort to regimes to manage fishing effort to attenuate the reductions in capacity; the implementatipn pf accpmpanying socip-ecpnpmic measures adopted by the Councl in December 1995. 5. Accompanying socio-economic measures The negative effects of the restructuring of the sector will be attenuated by the implementation of accompanying socio-ecpnpmic measures envisaged by Cpmmunity regulations concerning the structural funds, and in particular by the new prpvisipns pf the FIFG regulatipn(2). Due to the Community initiative PÉSCA(3) the sector is able in all the zones dependent on fishing to make use of the measures and means of the structural funds to facilitate the restructuring of the sector. 6. The different effects of the restructuring in the different Member States The restructuring measures decided in the framework of the present proposal will have an impact on the fleets of the Member States that is a function of: the nature of their fleet; (2) (3) Council Regulation (EC) No 2719 of 20 November 1995 amending Regulation (EC) NP 3699/93 (OJ No L 283, 25. 11. 1995). Communication 94/C 180/01 to the Member States laying down the guidelines for obal grants or integrated operational programmes within the framework of a Community the fisheries sector (OJ No C 180, 1. 7. 1994). the restructuring of initiative concerning their capacity tp implement measures tp manage fishing effort; their situation with respect to the previous programmes. 6. 1. Situation linked to the nature of the fleet The dpminance pf small scale fisheries pr static gears in the typplpgy pf the fleet, particularly in the Member States in the sputh pf the Unipn, will considerably ease the impact on employment of the restructuring constraints. 6. 2. Situation resulting from the implementation of regimes to manage fishing effort The implementation of regimes to manage fishing effort equally permit the easing of the objectives of the restructuring programmes due to reductions in fishing time. Fpr a Member State in which the ecpnpmic health pf the fisheries sector justifies lihis type of measure, the reduction in employment can be minimized. 6. 3. Situation with respect to the previous programmes The objectives for restructuring are fixed in the framework pf the multiannual guidance programmes in the fprm pf capacity ceilings tp be respected by a given time limit. The efforts accpmplished in the past are taken intp account by these programmes. A Member State behind with its prpgramme will have tp make up the backlpg tp meet the pbjectives. On the pther hand, a Member State that has achieved fleet reductions that gp beypnd its pbjectives will find the pbjectives pf the next prpgramme lightened in cpnsequence. The "bpns élèves" that respected the previpus decisipns pf the Cpmmissipn cpnceming the restructuring pf their fleet will therefore have a "credit" which will make their final pbjectives easier tp achieve. 7. Coherence of the Community aid regimes and restructuring The Cpuncil adopted in December 1993 a regulation that ensures the integration of the structural measures developed in favour of fisheries into the interventions of the structural funds. In application of this regulation the Union can give aid for the elimination of fleet overcapacity and aid for its modernization, including the construction of fishing vessels. There is no doubt that the injection of public credit in a sector already considered as overcapitalized contributes to the increase in fishing effort and therefore to the aggravation of the situation in the sector. The Commission in these circumstances envisages to propose to the Council a modification of the Community structural regulation concerning structural measures that would not jeopardize the financial plans already approved up to the end of 1999. The identification of the new financial requirements necessary in the sector to ensure the restructuring can justify that: between now and 1999 the measures to adjust fishing effort and the accompanying socio-economic measures be reinforced by an internal reallocation of the resources available within the existing programmes; after 1999 new budgetary resources be identified in the context of the next period of structural fund programming. In order not to penalize segments of the fleet that respect the objectives, a proposal determining the new conditions of access to aid regimes for fleet renewal could be submitted to the Council before the end of 1996. 8. Legal base and calendar In order to ensure the implementation of means to ensure the restructuring of the sector in accordance with the objectives described above the Commission proppses tp adopt the following provisions, only the first of which is the subject of the present proposal: the adoption in September 96 by the Council of a decision with a medium term perspective of six years (1997/2002) guiding the restructuring of the fisheries sector with the view of achieving a sustainable balance between the resources and their exploitation in accordance with Article 11 of Regulation (EEC) No 3760/92(4); the adoption by the Commission by 31 December 1996 at the latest of a series of 13 decisions fixing, Member State by Member State, the objectives for the limits to capacity by segment of their fleet over the period 1997/99 in accordance with the provisions of Article 5 of Regulation 3699/92(5} on the adoption of the fourth multiannual guidance programmes (MGP IV); at the end of the MGP IV the Cpuncil cpuld be invited tp examine a new prpvisipns that respond to the exploitation conditions in the fisheries at that time. (4) (5) Article 11 of Council Regulation (EEC) No 3760/92 of 20 December 1992, establishing a Community system for fisheries and aquaculture (OJ No L 389, 31. 12. 1992). Article 5 of Council Regulation (EEC) No 3699/93 of 21 December 1993, laying down the criteria and arrangements regarding Community structural assistance in the fisheries and aquaculture sector and the processing and marketing pf its products (OJ No L 346, 31. 12. 1993). Proposal for a COUNCIL PEUSIQN concerning the objectives and detailed rules for restructuring the Commumty fisheries sector for the period from 1 January 1997 to 31 December 2002 with a view to achieving a balance on a sustainable basis between resources and their exploitation THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard tp Cpuncil Regulation (EEC) NP 3760/92 pf 20 December 1992 establishing a Cpmmunity system for fisheries and aquaculture(1), as amended by the Act pf Accessipn pf Austria, Finland and Sweden, and in particular Article 11 thereof, Having regard tp the proposal pf the Cpmmissipn(2), Having regard tp the opinion of the European Parliament^, Whereas the Community fisheries sector should be restructured in a way that takes into account the characteristics of each fishery; whereas the objectives and detailed rules for restructuring the Community fleet shpuld be fixed by fleet segment in relation tp a stpck or group of stpcks; Whereas, given the generally wprrying findings as tp the state pf the respurces accessible tp Cpmmunity vessels, reinforced by the production of a repprt by independent experts delivered by the Cpmmission to the Council on 22 April 1996(4), the Council agreed that it was necessary, over a period of time sufficiently long to afford a real remedy, to adopt precise guidelines for the adjustment of capacity and fishing effort in the various segments of the Community fleet according to a programme that takes into account the state of the various stocks pr groups pf stpcks, whilst taking intp accpunt that the Member States will npt be prevented from taking the quptas actually available; Whereas the critical state of certain stocks should be recognized; whereas the urgency of the measures to be applied to these stocks justifies a reduction in the capacity of the corresponding fleet segments that is more rapid at the beginning of the programme than at the end; Whereas the objectives and detailed rules for restructuring must take into account the fishing types and methods and their effects on the fish stocks and the marine environment; whereas it is therefore appropriate to ensure a clear distinction between tpwed gears and static gears; (1) <2) w (4) OJ No L 389, 31. 12. 1992, p. 1. OJ No C OJNoC Report of the group of independent experts to advise the European Commission on the fourth generation of multiannual guidance programmes (MGP IV). Whereas the characteristics of the power and tonnage of the vessels are the pertinent parameters as to fishing capacity for fleets using towed gears or purse seines, while such parameters are less pertinent for fleets using static gears; whereas for those gears, besides the provisions adopted in this Decision, provisions should be adopted in the framework of technical measures influencing the fishing mortality for which they are responsible; Whereas as far as static gears are concerned the reference situations vary from one Member State to another; whereas provisions should be adapted to the specific circumstances in the different Member States; Whereas it is necessary to take into account an increased efficiency in fishing attributable solely to the effect of technical progress and generally estimated to be around 2% per year for the whole of the Community fleet; Whereas the Commission organized between September 1995 and March 1996 a series of 35 regional and European consultations with the professional organizations and local groups most affected by the evolution of fishing; whereas it emerged from this wide consultation that the restructuring pf the sectpr, hpwever necessary it might be, cpuld have a spcial impact on employment in the industry, especially in the short term and on employment aboard ship; whereas, as far as possible and in addition to the socio-economic accompanying measures envisaged by Community regulations, the impact shpuld be attenuated by phasing in the measures for restructuring the sectpr; Whereas, in cases where the state pf the stocks is so critical that urgent solutions are called for, such phasing in would not be appropriate; Whereas the employment generated by the sector in areas dependent on fishing should be taken into account; whereas it is justified in the case of small-scale coastal fisheries using static gears to apply special treatment, since this activity ensures a high number of direct jobs relative to the small catches of fish; Whereas, in situations justified by the economic conditions of the exploitation of certain fleet segments and by the specific character of certain fishing activities, the reductions of fishing effort required by the state of the stocks can be achieved by a reductipn in the level pf activity pf the said segments rather than a reductipn in their capacity, provided that the Member State cpncerned dempnstrates its ability tp set up and administer fishing effort regimes by fishery; Whereas pursuant to Article 5(4) of Council Regulation (EC) No 3699/93 of 21 December 1993 laying down the criteria and arrangements regarding Community structural assistance in the fisheries and aquaculture sector and the processing and marketing of its products(5), as last amended by Regulation (EC) No 965/96(6), the Member States transmitted to the Commission information on the minimum content of the multiannual guidance programmes for the fishing fleet for the period 1997 - 1999; (5) (6) OJ No L 346, 31. 12. 1993, p. 1. OJNoL 131, 1. 6. 1996, p. 1. 10 Whereas the period 1997 - 1999 coincides with the end of the financial programming period of the sector in the framework of the structural funds; whereas the detailed rules for restructuring the sector for this period should be now be specified according to the provisions of Article 5 of the said Regulation (EC) No 3699/93; Whereas that term does not, however, correspond to a programming period long enough to ensure sufficient restructuring of the sector, and in consequence supplementary measures should be adopted in a second phase covering a supplementary period at least equal to the first; whereas this Decision does not prejudge any accompanying Cpmmunity finance for restructuring the sector that might be adopted for a peripd after 31 December 1999; Whereas the method for fixing the objectives for the reductipn pf fleet capacity shpuld take intp accpunt the efforts made in the past; whereas it shpuld be ensured that the pbjectives pf such programmes are implemented in a progressive and balanced way; Whereas the reductipns in capacity shpuld be in line with the pbjectives fixed in terms pf the progressipn pf fishing mortalities by stpck and pf effort by fishery, HAS ADOPTED THIS DECISION: Article 1 1. The capacities of segments of the fishing fleet of each Member State shall be diminished according to the percentage reductions in fishing effort required by stock or group of stocks and within the deadlines set out in the Annex. 2. When a segment of the fleet fishes several stocks or groups of stocks, the reductipn applied shall be the highest percentage reductipn in fishing effort cprresppnding tp the mpst sensitive stpck. 3. The segmentation pf the fleet pf each Member State shall be determined accprding to the procedures under Article 18 of Regulation (EEC) No 3760/92 in relation to the stocks or groups of stocks defined in the Annex hereto and taking into account the segmentation adopted as part of the third multiannual guidance programme. 4. A segment of the fleet shall be defined as a homogeneous group of vessels for which the fishing activities are similar. A segment shall be polyvalent if it is composed of vessels using alternatively towed gear, static gear, or gear of a different nature. A vessel shall be classified as polyvalent on the basis of information provided to the Commission on the basis of Commission Regulation (EC) No 109/94(7), and in particular Annex 1, Table 2 thereof. (7) O J N oL 19,22. 1. 1994, p. 5, 11 Article? In accordance with the procedures defined in the framework of Regulation (EC) No 109/94 concerning the fishing vessel register of the Commumty: 1. 2. 3. the capacities pf segments composed pf vessels using towed gears and purse seines are expressed at least in tonnage GT and tptal installed power kW; the capacities pf segments composed of vessels using static fixed or floating gears are expressed at least in number of vessels and tonnage GT; the capacities of mixed segments composed of vessels using alternately tpwed gears and static gears are expressed at least in tonnage GT, total installed power kW and number pf vessels. Article 3 In each Member State the fleet segment composed pf fishing vessels pf less than seven metres in overall length and not equipped for fishing with towed gears shall be exempt from the provisions of Article 1. Any increase in the capacity of this segment expressed in tonnage GT and in number of vessels accprding to the data collected pursuant to Regulation (EC) No 109/94 shall be prohibited from 1 January 1997 until 31 December 2002. Article 4 1. Each Member State shall adopt the measures necessary to constrain the evolution of fishing effort, as defined by point (f) of Article 3 of Regulation (EEC) No 3760/92, exercised by fleet segments using static gears within the limits and deadlines specified in the Annex hereto. The proposed measures, the effect of which must be that the required reductions in capacity result in equivalent reductions in fishing effort, shall be submitted to the Commission for approval by 30 June 1997 at the latest. 2. Any Member State may propose, according tp the prpcedure under Article 4 pf Regulation (EC) 109/94, a programme to limit fishing effort, including measures regulating fishing activity, for the segments of the fleet cpvered by Article 2 pf this Decisipn. Where the Cpmmissipn decides tP accept such a prpgramme it shall determine, in its decisipn pf acceptance, tp what extent and under what cpnditipns the implementation of the said programme wpuld result in the pbligatipns to reduce capacity in the Member States concerned being eased within the framewprk of the decisions covered by Article 5(2) of Regulation (EC) NP 3699/93. Article 5 The segments of the fleet affected by fisheries management recommendations issued by international organizations approved by the Community or the Member States and, if necessary, the segments of the fleet covered by fishing agreements concluded between the Community and third countries, shall be identified and their capacities adjusted by the Commission on the basis of this Decision, in line with the objectives fixed by those recommendations and the fishing opportunities defined by the agreements. 12 Article ft 1. The implementation of the objectives and the detailed rules of this Decision shall be carried. out by the Commission in two phases, the first of which shall be for the period from 1 January 1997 to 31 December 1999 within the framework of the provisions of Article 5 of Regulation (EC) NP 3699/93 concerning the multiannual guidance programmes for the fishing fleets. It is within this framework that the segmentation of the fleet and the detailed rules fixing the objectives by segment as a function of the objectives fixed by the previous programmes shall be adopted. 2. The target reductions in capacity by fleet segment, fixed accprding tp the percentages in Annex I covering phase I (1997 - 1999) shall be achieved by 31 December 1999 at the latest. 3. The target reductions in capacity by fleet segment fixed according to the percentages in Annex I covering phase II (2000 - 2002) shall be achieved by 31 December 2002 at the latest. To this end the Member States shall transmit to the Cpmmissipn by 1 January 1999 at the latest the information set put in Annex II to Regulation (EC) NP 3699/93 adapted pn the pccasipn fpr the peripd 1999/2002. The Scientific, Technical and Economic Committee for Fisheries established by Article 16 of Regulation (EC) No 3760/92 shall provide by 1 January 1999 at the latest a report on the evolution of fish stocks and of fisheries. On the basis pf that informatipn the Cpuncil may, accprding tp the prpcedure of Article 43 of the Treaty, revise the guidelines that it has fixed in this Decision. 4. Any other decision necessary for the implementation of this Decisipn shall be taken accprding tp the prpcedure under Article 18 pf Regulation (EEC) NP 3760/92. Article 7 For the period from 31 December 2002, the objectives and detailed rules envisaged in Article 11 of Regulation (EEC) No 3760/92 shall be fixed by the Council by 30 June 2002 at the latest. This Decision is addressed to the Member States. Article 8 Done at Brussels, For the Cpuncil The President 13 ANNEX relative to the pilot redaction rates for the restructuring of the fishing fleet during the period from 1 January 1997 to 31 December 2002 The percentages shown in the maritime region tables fix reductions in fishing effort by stock or groups of stocks for phase 1 (1997/1999), phase II (2000/2002) and for the whole period (1997/2002). These percentages apply to the segment capacity ceilings at 31 December 1996 fixed in Commissipn Decisions 95/238/EC to 95/248/EC of 7 June 1995(8) cpnceming the third multi-annual guidance programmes fpr the peripd 1993 - 1996. These ceilings will be converted according to fleet remeasurement procedures, collection of data on power installed on board, and possibly the revision of segmentation of the fleet should this exercise prove to be necessary to take into account pilot reduction rates in the present annexe. 1. Pilot reduction rates applicable to segments using fixed gear in all the maritime regions as well as segments not targeted by those tables under point 2 I II stocks phase 1 (1997 - 1999) phase II (2000 - 2002) tptal for the period All stocks except salmon salmon 6% 30% 6% 20% 12% 50% 2. Pilot reduction rates applicable to segments using trawls, purse seines or composed of polyvalent vessels by maritime region: (based on the numbered divisions established by the international Cpuncil for the exploration of the sea: ICES and NAFO). The fleet segments not identified with the stpcks targeted by the tables belpw but indicated by maritime area and by type pf demersal fishery, benthic and pelagic, industrial fishing and fishing fpr deep water species will be subject to a general capacity reductipn pf 12 % in twp equal parts pf 6 % for each phase Baltic Sea (HI b, c, d) stocks demersal pelagic phase 1 (1997 - 1999) phase II (2000 - 2002) total for the period 30% 0% 10% 0% 40% 0% (8) O J N PL 166, 15. 7. 1995. 14 Kattegat-Skagerrak (m a), North Sea (IV), Eastern Channel (VH d) and West Scotland (VI) stocks demersal flatfish shrimps phase 1 (1997 - 1999) phase II (2000 - 2002) total for the seriod 30% 20% 15% 20% 10% 10% 15% 20% I 40% 30% 30% 40% i '• ' ' i t- Southern plateau, (Vit except VII a, d, VIII a, h) stocks j | demersal S flatfish pelagic except for anchovy and tuna Irish Sea (VII a) 1 ' stocks , L^ , U - J— phase 1 (1997 - 1999) phase II (2000 - 2002) total for the period 30% 20% 20% 10% 10% 20% 40% 30% 40% i 1 i '•' phase 1 (1997 - 1999) phase II (2000 - 2002) total fpr the peripd | all stocks 30% 10% 40% Off the Spanish and Portuguese coasts (VIII c, and IX a) stocks phase 1 (1997 - 1999) phase II (2000 - 2002) tptal for the period swprdfish,hake and monkfish sardine deep water species 30% 30% 40% 40% 0% 10% 10% 15 Mediterranean stocks small pelagics demersal swordfish red tuna NAFO, NEAFC phase 1 (1997 - 1999) phase II (2000 - 2002) total for the period 0% 20% 20% 20% -> 0% 10% 10% 10% 0% 30% 30% 30% stocks phase 1 (1997 - 1999) phase II (2000 - 2002) total for the period all except pelagic 30% 10% 40% Tropical tuna stocks phase 1 (1997 - 1999) phase II (2000 - 2002) total for the period tropical tuna 0% 0% 0% 16 ISSN 0254-1475 COM(96) 237 final DOCUMENTS EN 03 Catalogue number : CB-CO-96-259-EN-C ISBN 92-78-05136-5 Office for Official Publications of the European Communities L-2985 Luxembourg 17

THIRTEENTH ANNUAL REPORT ON MONITORING THE APPLICATION OF COMMUNITY LAW (1995)

http://publications.europa.eu/resource/cellar/a2fe2f47-c5c2-4ae7-bf47-c3fa99545983

eng

COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 29. 05. 1996 COM(96)600 final THIRTEENTH ANNUAL REPORT ON MONITORING THE APPLICATION OF COMMUNITY LAW (1995) (presented by the Commission) CONTENTS INTRODUCTION AREA WITHOUT INTERNAL FRONTIERS 1. 2. INTRODUCTION SITUATION SECTOR BY SECTOR 2. 1. REMOVAL OF PHYSICAL FRONTIERS 2. 1. 1. 2. 1. 1. 1. Progress in implementing directives applicable Customs 2. 1. 2. to the customs Free movement of agricultural products field 2. 2. REMOVAL OF TECHNICAL BARRIERS Free movement of goods 2. 2. 1. 2. 2. 1. 1. Articles 30 et seq. of the EC Treaty 2. 2. 1. 2. The preventive rules of Directive 83/189/EEC Progress in implementing directives 2. 2. 2. on the free movement of goods 2. 2. 2. 1. Foodstuffs 2. 2. 2. 2. Progress in implementing directives applicable to foodstuffs 2. 2. 2. 3. Pharmaceutical products 2. 2. 2. 4. Progress in implementing directives applicable to pharmaceutical products 2. 2. 2. 5. Chemicals 2. 2. 2. 6. Progress in implementing directives applicable to chemicals 2. 2. 2. 7. Motor vehicles, tractors and motorcycles 2. 2. 2. 8. Progress in implementing directives applicable to motor vehicles, tractors and motorcycles 2. 2. 2. 9. Construction products 2. 2. 2. 10. Mechanical engineering, personal protection equipment, prepackaging, measuring equipment, electronics and medical devices 2. 2. 2. 11. Progress in implementing directives applicable to mechanical engineering, personal protection equipment, prepackaging, measuring equipment, electronics and medical devices Free movement of persons, right of establishment and voting rights 2. 2. 3. 2. 2. 3. 1. Ending discrimination 2. 2. 3. 2. Entry and residence 2. 2. 3. 3. Progress in implementing directives applicable to right of residence 1 18 19 19 19 21 21 23 23 23 26 27 27 28 28 29 29 30 30 31 32 32 33 34 34 35 36 2. 2. 3. 4. Right to vote and stand in elections 2. 2. 3. 5. Trade union rights 2. 2. 3. 6. Access to employment in the public service 2. 2. 3. 7. Social security of migrant workers 2. 2. 3. 8. Recognition of qualifications 2. 2. 3. 9. Progress in implementing directives applicable to recognition of qualifications Freedom to provide services 2. 2. 3. 10. Independent commercial agents 2. 2. 4 2. 2. 4. 1. Broadcasting 2. 2. 4. 2 Telecommunications 2. 2. 4. 3. Progress in implementing directives applicable to telecommunications 2. 2. 4. 4. Financial services 2. 2. 4. 5. Progress in implementing directives applicable to financial services Free movement of capital Company law 2. 2. 5. 2. 2. 6 2. 2. 6. 1 Progress in implementing directives applicable to company law Intellectual and industrial property 2. 2. 7. 2. 2. 7. 1. Progress in implementing directives applicable to intellectual and industrial property Public procurement 2. 2. 8 2. 2. 8. 1. Progress in implementing directives applicable to public procurement 2. 3. Removal of tax barriers 2. 3. 1. Direct taxation 2. 3. 1. 1. Progress in implementing directives applicable to direct taxation Indirect taxation 2. 3. 2. 2. 3. 2. 1. Progress in implementing directives applicable to indirect taxation CONSUMER PROTECTION AND PRODUCT SAFETY 1. 2. INTRODUCTION SITUATION SECTOR BY SECTOR 2. 1. 2. 2. 2. 3. 2. 4. 2. 5. Cosmetics Textiles Safety and health Protection of economic interests Progress in implementing directives applicable to consumer protection and product safety 36 36 37 37 37 40 40 41 41 41 43. 44 46 47 49 50 50 52 52 56 57 57 58 58 61 62 62 62 62 62 63 64 COMPETITION 1. 2. INTRODUCTION SITUATION SECTOR BY SECTOR 2. 1. 2. 2. 2. 3. Public enterprises Monopolies Progress in implementing directives applicable to competition EMPLOYMENT AND SOCIAL POLICY 1. 2. INTRODUCTION SITUATION SECTOR BY SECTOR 2. 1. 2. 2. 2. 3. 2. 4. 2. 5. Equal treatment of men and women Working conditions Health and safety at work Public health Progress in implementing directives applicable to employment and social policy , AGRICULTURE 1. 2. INTRODUCTION SITUATION SECTOR BY SECTOR 2. 1. 2. 2. 2. 3. Markets Harmonization Progress in implementing directives applicable to agriculture FISHERIES 1. 2. INTRODUCTION SITUATION SECTOR BY SECTOR 2. 1. 2. 2. 2. 3. Markets Resources Compatibility with Community law of national legislation on the granting of flag rights ENVIRONMENT 1. INTRODUCTION 1. 1. 1. 2. 1. 3. 1. 4. 1. 5. 1. 6. 1. 7. General situation Notification of national implementing measures Conformity of national implementing measures Incorrect application of directives Freedom of access to information Environmental impact assessment Action needed 65 65 65 67 67 68 68 68 69 69 70 70 71 71 71 73 75 77 77 77 77 78 79 79 79 80 81 82 83 84 2. SITUATION SECTOR BY SECTOR 2. 1. 2. 2. 2. 3. 2. 4. 2. 5. 2. 6. 2. 7. 2. 8. Air Chemicals Water Noise Waste Nature Radiation protection Progress in implementing directives applicable to the environment , TRANSPORT 1. 2. INTRODUCTION SITUATION SECTOR BY SECTOR 2. 1. 2. 2. 2. 3. 2. 4. 2. 5. 2. 6. 2. 7. 2. 8. Road transport Combined transport Inland waterways Rail transport Sea transport Air transport Summertime Progress in implementing directives applicable to transport ENERGY 1. 2. INTRODUCTION SITUATION SECTOR BY SECTOR Transparency of prices 2. 1 Internal market for electricity and natural gas 2. 2. Energy efficiency 2. 3. Oil and gas 2. 4. Progress in implementing directives applicable to 2. 5. energy COMMUNITY STAFF STATISTICAL MATTERS ANNEXES 1. 2. 3. 4. 5. 6. Suspected infringements Established infringements Infringements of Treaties and Regulations Report on the application of directives Judgments of the Court of Justice not yet implemented Application of Community law by national courts 84 84 85 86 87 87 89 90 91 93 93 93 94 94 94 95 96 96 97 98 98 98 98 98 99 99 100 101 102 110 118 148 398 413 INTRODUCTION Each year the European Commission draws up a report on the monitoring of the application of Community law in response to requests made by the European Parliament (Resolution of 9 February 1983) and the Member States (point 2 of the Treaty signed at Maastricht on Declaration No 19 annexed 7 February 1992). The report also meets requests from the European Council and the Council for information on specific fields. to The Europe Union would not be a true Union based on the rule of law and founded on a body of law if that law was not enforced by and in its Member States on an ongoing basis. The enforcement function is entrusted to the Commission by Article 155 EC. (1) The annual report traditionally analyses the monitoring of the application of Community law by focusing on the infringement proceedings handled by the Commission on the basis of Article 169 of the EC Treaty in the past year. This report, which reflects the situation on 31 December 1995, follows that pattern. It must be remembered, however, that the function conferred on the Commission by Article 155 as guardian of the Treaties is not confined to infringement proceedings. When it commences litigation against other institutions (Articles 173 and 175), when it scrutinizes State aids for legality (Article 93), when it acts to combat fraud against the Community budget and when it secures compliance with the ban on restrictive practices and abuse of dominance (Articles 85 and 86), the Commission is also performing its function of enforcing Community law. There are separate reports on activities in these areas. The originality of Article 169 infringement proceedings cannot be adequately stressed. The procedure can be launched only by the Commission to settle disputes between it and the Member States; individuals cannot be parties to proceedings. The procedure is considered to be an objective one; its purpose is to induce a Member State to come into line with Community law. Its primary purpose is not to protect an individual who wishes to rely on Community law. Individuals have other redress procedures before national authorities and the national courts, operating as the ordinary courts of Community law, with the possibility of going so far as to have the State ordered to pay damages for breaches of Community law. (2) But the complaint to the Commission is still an indispensable instrument, not only for the Commission but also for the individual citizen. This is especially true where a citizen fails to secure respect for the rights he enjoys under Community law. (1) (2) See also Article 127 Euratom. Annex VI analyses the application of Community law by national courts in the course of the year. The Community citizen may not be able to commence infringement proceedings, but he still plays a key role in them. Complaints to the Commission are a vital source of information for launching such proceedings, as where they provide evidence of administrative practices contrary to Community law or of breaches in areas where the Commission cannot detect them in the absence of powers of inspection. Complaints also bring to the Commission's attention infringements committed in the course of co-financed operations/3* It is therefore vitally important for the Commission to give an answer not only to complainants - many of whom have only the Commission to rely on - but also to the public at large and to Parliament. The annual report is the Commission's way of meeting the need for transparency. 1995 was the first year of the fifteen-member Community. This report covers the application of Community law in Austria, Sweden and Finland. For the first time the Community welcomed new members from the European Economic Area. European Economic Area membership was probably the main reason for the high rate of notification of national measures implementing directives in the new Member States, as they had had to incorporate a large proportion of the acquis communautaire into their national legislation when the European Economic Area Treaty entered into force on 1 January 1994. As required by Article 172(1) of the Act of Accession, the EFT A Surveillance Authority notified the Commission of all the legislation of which it had been notified by these States. (4) In one year, the new Member States transposed the acquis communautaire to such an extent as to attain a notification rate in excess of the Community average in Sweden and Finland(5) and a rate of 84. 2% in Austria. 1995 was a year of intense Community law enforcement activity at the Commission, with an unprecedented number of Article 169 decisions - 5068 of them, as against 4802 in 1994. I - THE TREND OF INFRINGEMENT PROCEEDINGS IN 1995 There were seven major trends in 1995: A- B- infringement proceedings registered in 1995: a decline in the number of complaints and a rise in the number of cases detected by the Commission; the important role played by the European Parliament in prompting infringement proceedings; C- proceedings commenced in 1995: a stable number of Article 169 letters; (3) (4) (5) If infringement proceedings are commenced, the Commission generally suspends Community financing (Regulation (EEC) No 2052/88: OJ L 185, 15. 7. 1988, p. 9). If the infringement is confirmed, the Commission can even recover financing. The EFTA Surveillance Authority also notified the Commission of suspected infringement cases that were pending. Apart from difficulties with the transposai of directives in the Aland Islands. D- E- F- proceedings relating to established infringements: a decline in the number of reasoned opinions and a stable number of referrals to the Court; a sharp increase in the number of cases terminated; a start made on clearing up the legacy of the past: many of the longest-running cases were terminated; G- greater transparency. A- Infringement proceedings registered in 1995 declining number of complaints An analysis of the statistics prompts a surprising conclusion: the number of complaints received at the Commission is no longer rising. Figures for the last five years (1991: 1051; 1992: 1185; 1993: 1040; 1994: 1145; 1995: 978) show that this is a genuine pattern and not a statistical blip. (6) But the situation varies from one area to another: there is, for instance, a stable pattern as regards customs and indirect taxation. The figure for public procurement rose from 100 to 137 in one year, and the figures for transport also rose; but in agriculture it fell from 191 to 127). Given enlargement, the stability in the absolute number of complaints means that there has been a relative decline, especially as the conferment of new powers on the Union ought to have been a source of new difficulties, disputes and complaints. The decline in the number of complaints must be interpreted with a great deal of caution. It might be thought that citizens relying on Community law are gaining greater satisfaction in national authorities or courts without having to bring the Commission into action, but that would probably be over-optimistic. At any rate the conclusion would be difficult to support, and evidence going beyond what is available in this report would be needed, The declining number of complaints might also be evidence that Member States are applying Community law better as a result of experience and of the deterrent effect of infringement proceedings. Another possible explanation might be that citizens in the new Member States are inadequately informed of the possibilities of complaining to the Commission, as the number of complaints has not risen in proportion to the new membership It is true that the Commission's role is imperfectly perceived, as can be seen from the number of complaints that are not within its powers to review. (6) See the environment chapter, point 1. 4. the rise in the number of cases detected by the Commission Between 1994 and 1995, the number of such cases rose from 277 to 320. This suggests that the current period is one of consolidation. Community legislative activity is less intense than in the past. (7) It is also more clearly targeted on specific objectives. Following the policy set out in its 1995 work programme, the Commission placed the accent on the proper application of existing rules, verifying how Community law was actually applied in the Member States; this is clear from the rising number of cases detected by the Commission itself and of infringement proceedings commenced in the course of the year. The Commission considered more than 4800 cases in 1994. The figure leapt to 5068 in 1995. B - The important role plaved by the European Parliament in prompting infringement proceedings The Commission makes out a suspected infringement record as a matter of routine whenever a breach of Community law is indicated either by a parliamentary question(8) or by a petition. Of the new infringement cases registered by the Commission in 1995, 30 originated in a written or oral question by a Member of the European Parliament and four in a petition. The figures for 1992 were 45 questions and 33 petitions; those for 1993 were 30 questions and 23 petitions/9* But these figures are but a pale reflection of the qualitative and quantitative importance of Parliament's role in identifying infringements, for in addition to these cases, Members of Parliament reported other infringements that haa sometimes already been detected by the Commission's own investigations or through complaints received. A third of them concerned violations of environmental legislation (chiefly industrial projects launched without prior environmental impact assessment), and another third concerned the internal market (all manner of problems, such as barriers to freedom of establishment for dentists, violations of the public procurement directives, etc. ). To give but one example, an MEP drew the Commission's attention to a series of contracts for environmental advisory and management services that had not been announced in the Official Journal. Parliament tends to show the greatest interest in the two areas (environment and internal market) that between them account for more than 60% of all the cases currently running at the Commission. (7) (8) (9) See report on implementation of the Commission's work programme in 1995, COM(95) 513 final,13. 10. 1995. Since 1985. The particularly low figures for 1994 are exceptional and not statistically significant. C- Proceedings commenced in 1995: a stable number of Article 169 letters The Commission commenced 1016 infringement proceedings in 1995, as against 974 in 1994 and 1 209 in 1993. Clearly, then, the number of complaints is no longer rising, moreover, preliminary contacts between the Commission and the Member States - who manifestly are aware of their Community law obligations - are more and more fruitful. D- Proceedings regarding established infringements A sharp decline in the number of reasoned opinions The sharp decline in the number of reasoned opinions (192) is the result of the exceptionally high number of reasoned opinions issued in 1994 (546 as against 352 in 1993) and of technical delays at the Commission, now made up. A stable number of referrals to the Court The Court of Justice had 72 new infringement cases referred to it in 1995 (as against 64 in 1992, 44 in 1993 and 89 in 1994). The Commission endeavours to make the fullest use of the pre-litigation stage of the infringement proceedings to persuade the offending Member State to remedy its deficiency or to negotiate a settlement. As the Court has held, referral of an action to it is the last resort, "* the ultima ratio enabling the Community interests enshrined in the Treaty to prevail over the inertia and resistance of the Member States'. (l0) The relative stability in the number of cases referred to the Court is the direct consequence of the Member States' strong tendency to remedy deficiencies after the reasoned opinion stage. E- A sharp increase in the number of cases terminated The aggregate number of proceedings for suspected or established infringements that were terminated rose from 1811 in 1994 to 2045 in 1995. There were particularly significant figures regarding the free movement of goods, where 238 cases were terminated and only two went to the Court. The Commission is reaping the fruits of a long tradition of dialogue with the Member States at package meetings. The number of cases closed after proceedings had commenced was 1344 in 1995, up from 668 in 1994. These figures do not mean that the Commission is taking a softer line but that the action taken in relation to the Member States to secure proper and timely implementation of directives and to have Community law applied properly is proving effective. The Commission's policy in environmental matters offers an eloquent illustration: 182 cases that had gone beyond the Article 169 letter stage were terminated in 1995, whereas the (10) Case 25/59 Netherlands v High Authority [1960] ECR 355, 374. 9 number for 1994 was only 70. The examples given for public procurement and VAT are also noteworthy. (11) F- Clearing up the legacy of the past: many of the longest-running cases were terminated In the course of its review of cases in motion, the Commission looks at all of them from time to time. In 1995, as in previous years, all the longer-running cases were reviewed. Of the 1 545 cases opened in 1992, 161 were still in motion in 1995. Of the 1 340 cases opened in 1993, 225 were still in motion in 1995 whereas the figure a year earlier was 404. The number of cases opened in 1994 and still in motion was halved in a year, from 1 136 to 670 (see Table 1. 3). The effort must clearly be pursued. Infringement proceedings run in successive stages at which the Member State can put matters right without being taken to the Court. But this obviously takes time, and the duration of the scrutiny procedure is still too long; the Commission is endeavouring to accelerate it. G- Greater transparency The infringement procedure is wholly directed, by the Treaty itself, to securing a remedy for the infringement without the need for referral to the Court. Traditionally, it has therefore been confidential, so as to preserve the discretion that will make it easier for the Member State to rectify matters. The completion of the internal market, Parliament's constantly growing interest in monitoring the application of Community law and the Commission's determination to achieve greater openness in its activities have combined to prompt the Commission to boost transparency policy. It has, for instance, extended its practice of issuing press releases. On 19 July it decided to put out 22 press releases on 58 cases without awaiting the issue of reasoned opinions or referral decisions. Transparency in Commission activities for the enforcement of internal market legislation in particular was treated as a political priority. The operation was repeated later in the year and was well received. n- ANALYSIS OF THE RESULTS FOR 1995 A- Directly applicable rules The processing of infringements of Community instruments other than directives continues apace. There were 89 Article 169 letters in 1995 (up from 67 in 1994). Fuller details can be found in the sector-by-sector analyses, but there are a few noteworthy general points about activities in 1995. (U) See points 2. 2. 8 and 2. 3. 2. 10 The Court of Justice gave a series of judgments spelling out the scope of Article 30 as interpreted in Keck and Mithouarcf12) (see point 2. 2. 1. 1). The frequency of infringements relating to freedom of movement of persons is particularly noteworthy; there were many cases concerning discrimination as regards access to employment and the right of residence (Article 48 of the Treaty and Regulation (EEC) No 1612/68(13)). In competition matters, the Commission secured the final abolition of the monopoly of port services at Genoa. Turning to employment and social policy, there has been no decline in the volume of disputes relating to Article 119 of the Treaty (equal treatment for women and men). The judgment in Kalanke (17 October 1995) concerning positive discrimination in favour of women prompted the Commission to issue an interpretative statement. (14) In fisheries and aquaculture, the Commission systematically scrutinizes national legislation for compatibility with Community law applicable to flag rights and technical measures for the conservation of resources. B- Directives 1- Notification of transposai measures The number of proceedings commenced in 1995 for failure to notify implementing measures was slightly up on the previous year (799 as against 732). The table below gives a general picture of progress in implementing all the directives applicable on 31 December 1995. It will be noted that the number of directives that came into force in the course of the year rose less sharply than in previous years (forty or so, as against sixty in 1994). This is the first impact of the Community's policy of enacting less but better legislation. The trend can be expected to continue in the years ahead (cf. the Commission's paper for the Madrid European Council in December 1995, ^Better lawmaking': the Commission made 25 legislative proposals in 1995 as against 61 in 1990 and 51 in 1992. It is planning only 19 in 1996(15)). (12) (13) (14) (15) C-267/91 and C-268/91 [1993] ECR 1-6097. Council Regulation of 15 October 1968 of 15 October 1968 on freedom of movement for workers within the Community, OJ L 257, 19. 10. 1968, p. 2. COM(96) 88 final; see also proposal for a Directive amending Directive 76/207/EEC (COM(96) 93 final). See report on implementation of the Commission's work programme for 1995, COM(95) 513 final. 11 MEMBER STATE Directives applicable on 31. 12. 1995(16) Directives for which measures have been notified BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM 1265 1265 1267 1266 1267 1265 1265 1265 1264 1265 1262 1266 1252 1256 1265 1132 1239 1177 1137 1179 1173 1174 1122 1191 1230 1063 1139 883 1169 1203 % 89. 5 97. 9 92. 9 89. 8 93. 1 92. 7 92. 8 88. 7 94. 2 97. 2 84. 2 90 70. 5(17) 93 95 On 31 December 1995, the Member States had on average notified 90. 7% of the national implementing measures required to give effect to all the directives to be implemented. This is lower than the 1994 figure (91. 89%) as three new Member States are now brought into the calculation. The individual "performances" of the twelve older Member States have all improved. The following conclusions can be drawn: a high rate of notification in the three new Member States. Sweden ranks sixth. The figure for Austria is substantially the result of delays in notifying measures transposing agricultural legislation (point 2. 3). (16) (17) Variations in the number of directives applicable are due to the fact that some directives do not apply in all Member States, and the implementation dates can vary from one Member State to another. The notification rate for Finland is actually much higher than this if the problems of transposing directives in the Aland Islands are disregarded. See remark on following page. 12 The main explanation for the situation in Finland is the special status of the Aland Islands in international law. (18) They enjoy a degree of autonomy in certain respects (e. g. agriculture and the environment) and are required to enact specific implementing measures. Apart from the situation in the Aland Islands, Finland's rate is above the Community average. an improvement in the rate of notification of national measures implementing directives in all the other twelve Member States with a new record of virtually 98% in one of them (Denmark). But the reality behind these averages is far from uniform. The rate of notification is 100% in customs matters and right of residence (except as regards Belgium and Germany in the latter area). It is everywhere in excess of 90% as regards machinery, motor vehicles and recognition of qualifications. There are wide variations between Member States as regards telecommunications and financial services. The areas where the greatest difficulties persist and measures transposing directives enacted years ago are still absent are the environment (points 1. 2 and 2. 8), transport (point 2. 8) and energy (point 2. 5). In agriculture, delays in notifying national implementing measures are substantial for the internal market White Paper directives. The number of referrals to the Court rose from 34 in 1994 to 57 in 1995 (points 1 and 2. 2). But there are positive signs: the number of new proceedings for failure to notify national implementing measures is down on 1994. The same applies to reasoned opinions. As for consumer protection, five Member States have still to notify the Commission of national measures implementing Directive 92/59/EEC(19) on general product safety. 2- Conformity of implementing measures The Commission proceeds from the principle that many incorrect application cases could be avoided if transposai measures were in conformity with the directive in the first place. The Commission consequently attaches priority to quality control of national measures implementing directives when monitoring the application of Community law. Wherever possible, it systematically scrutinizes existing legislation, as witness its activities in relation to free movement of goods (see point 2. 2. 1). (18) (19) See Article 28 and Protocol No 2 of the Act concerning the Conditions of Accession of Finland to the European Union, OJ C 241, 29. 8. 1994. OJ L 228, p. 24. 13 The number of new proceedings for incorrect implementing measures rose from 54 in 1994 to 63 in 1995. There were 23 Article 169 letters (32 the previous year). The number of proceedings in motion for incorrect measures implementing public procurement Directives more than doubled, from 14 in 1994 to 30 in 1995. There is a detailed analysis of the main causes for non-conformity in environmental matters at point 1. 3, where it is stated that scrutinizing measures for conformity may require particularly delicate analysis of national law, especially where the authority with power to transpose is not at national but at regional or provincial level - which may involve enactment of several sets of legislation in one and the same Member State. Moreover, directives sometimes subject Member States to complex obligations making it necessary to enact or amend a whole series of instruments. 3- The application of transposai measures Complaints relating to individual cases of incorrect application of national implementing measures are a valuable source of information for the Commission, especially when they reveal that the measure was not in conformity with the directive or they bring to light repeated infringements or horizontal problems, such as administrative practices that are incompatible with it. In 1995, for instance, there were more than 40 complaints concerning the directives on the mutual recognition of qualifications. Admittedly, many of the complaints alleging incorrect application of a piece of national legislation that is compatible with the Community legislation it transposes could be settled by national authorities and courts. (20) But the Commission is often perceived as a vital support, especially where national redress procedures have been exhausted or are either illusory or ineffective. Better application of Community law requires a policy to prevent infringements. Greater involvement of national bodies in general and Parliaments in particular in the Community legislative process would be conducive to this. It would surely help solve difficulties with proper implementation of Community law at national level. Maintaining regular contacts with the national authorities through institutional committees avoids many infringements/21* (20) (21) See environment chapter, point 1. 7. See the examples given at point 1. 7 of the environment chapter and point 2. 2. 4. 4 on financial services. 14 Timely provision of information to the Commission, by means such as the procedure for technical standards and regulations set up by Directive 83/189/CEE,(22) also helps to prevent the erection of new barriers to trade/23* In a recent judgment, the Court of Justice gave added force to this information procedure/24* The Commission's efforts to make Community law more familiar, more comprehensible and more accessible are part of this policy. But the task of monitoring the application of Community law is an unending task in the performance of which the Commission has set itself two priority objectives: putting monitoring the application of Community law at the centre of its business. Its work programme for 1996 firmly underscores this concern;(25) finding a judicious balance between monitoring the application of Community law at Community level and the role played by national authorities in general and the courts in particular. The work done by the Commission would be futile without Community citizens jealously and vigilantly enforcing their rights, without national courts and administrative bodies placing observance of Community law among their priorities. The Commission clearly stated this in its Opinion of 28 February 1996 on the Intergovernmental Conference provided for by Article N(2) of the Maastricht Treaty: To consolidate the rule of law as the basis of the Union, the proper implementation and enforcement of Community law has to be ensured, a task which falls primarily to the national authorities. This will be even more vital in an enlarged Community encompassing a wide diversity of national legal and administrative systems. The Commission therefore believes that: the means available to it to enforce Community law should be made more effective, notably as regards the internal market; there should be a stronger role for the Court of Justice, particularly as regards compliance with its judgments/26* (22) (23) (24) (25) (26) Council Directive of 28 March 1983, OJ L 109, 26. 4. 1983, p. 8. See point 2. 2. 2 on free movement of goods. Case C-194/94 CIA Security International v Signalson and Secuhtel (judgment given on 30 avril 1996, not yet reported): the Court held that it was not acceptable to rely, against an individual, on a technical standard not notified by the directive's procedure. "* The need to ensure strict enforcement of the existing rules remains a top priority', COM(95) 512 final, point 3. 1. COM(96) 90 final, point 10. 15 The Commission welcomes the vigilance shown by the European Parliament in matters of enforcement of Community law. Its role in detecting infringements has already been emphasized. By approaching national political authorities and generating awareness among public opinion, Parliament can play an even bigger role in having the infringements recorded in this report ended. The Commission needs the unfailing support of a European Parliament that attaches the same importance to the proper application of Community law as to its enactment. 16 Structure of thirteenth report This report consists of: a sector-by sector analysis; statistical tables updated to 31 December 1995 concerning suspected infringements (ANNEX I) and established infringements (ANNEX II); a list of established infringements of the Treaties, Regulations and Directives investigated in 1995 (ANNEX HI); report on the application by Member States of Directives in force on 31 December 1995, indicating infringement proceedings (ANNEX IV); a list of judgments of the Court of Justice not yet implemented (ANNEX V); a survey of the application of Community law by national courts (ANNEX VI). 17 AREA WITHOUT INTERNAL FRONTIERS 1. INTRODUCTION The establishment of the single market is an ambitious exercise in economic integration, requiring the adoption of legislation - much of it very detailed - to remove physical, technical and tax barriers in a variety of sectors. The project was given fresh impetus by the 1985 White Paper on completing the internal market and was largely completed in 1993. It has since been extended to the new Member States which joined the Community at the beginning of the year. In 1995, three years after the single market came into effect, nearly all the legislation identified in the White Paper has been adopted. The objective set out in Article 7a of the Treaty - an area without internal frontiers where goods, persons, services and capital can move freely - has largely been achieved. However, establishing the single market amounts to more than simply adopting the measures set out in the White Paper: the Commission must also see to it that these measures are actually implemented and enforced in accordance with Community law. To this end the Commission drew up a strategic programme. for completing, managing and developing the single market, which it presented at the end of 1993. Its basic premise is that the single market cannot be established merely by transposing Community legislation, but that continual efforts must be made to ensure that this legislation is applied and understood at all levels and the Union must be able to satisfy the hew demands which emerge as the frontier-free area takes shape. The Commission has only just begun this task. The strategic programme identifies administrative cooperation as one of the key factors in the operation of the single market. Cooperation has already been in many areas (such as veterinary and plant health checks, established pharmaceuticals, foodstuffs, customs and direct taxation), and the results suggest it is worth extending it, at least partly, to other fields. In its Resolution of 16 June 1994 on developing administrative cooperation in the enforcement of Community legislation on the internal market, the Council asked the Commission to step up cooperation with the relevant authorities in the Member States. In 1996 the Commission is required to lay before the Council and Parliament a report on cooperation between administrations for the enforcement of internal market legislation/1* Still on the subject of administrative cooperation, it is worth mentioning two programmes for the exchange of officials between Member States - Matthaeus (for customs officials) and Karolus. The Karolus programme is aimed in particular at harmonizing the interpretation and application of Community law, especially in the internal market field. All the Member States have already taken part in the programme, either sending or (1) The Commission presented this report on 29 January. 18 receiving officials from national government departments. By the end of September 1995 a total of 181 exchanges had taken place out of 270 applications accepted. One important source of information on the monitoring of the application of Community law is the report on transposai which the Commission lays before each meeting of the Council on the internal market. It indicates the state of play regarding the incorporation into national law of the measures set out in the White Paper and other legislation which is particularly important for the smooth operation of the internal market. Of the 276 measures in the White Paper in force at 31 December 1995, 222 still required national implementing measures in one or more Member States. Overall the Member States have adopted 91. 5% of the national measures required to implement internal market legislation. Delays in transposai still persist in certain sectors, particularly public procurement, new technology, insurance and intellectual and industrial property. These delays are often caused by problems in the national decision-making process or the technical complexity of Community texts, which sometimes leads Member States to adopt national measures implementing only part of a directive. To remedy this situation, the Commission systematically monitors the application of Community rules - as it does in all other fields - and commences infringement proceedings under the Treaty, wherever necessary. 2. SITUATION SECTOR BY SECTOR 2. 1. Removal of physical barriers 2. 1. 1. Customs The Commission sent a reasoned opinion to Belgium regarding dues collected for the benefit of the Fonds pour la Santé et la Production des Animaux (animal health and production fund) when live animals are exported to other Member States. These dues must be considered as charges with an equivalent effect to customs duties on exports, which are prohibited under Articles 9 and 12 of the Treaty. Proceedings have been commenced against Italy under Article 171 of the Treaty for failure to comply with a judgment given in 1994 in which the Court of Justice found that the representation monopoly of Italian customs forwarding agents and the requirement that employees representing their own firm must have the same qualification as self-employed persons were to make contrary declarations/25 the persons empowered to customs rules on The Commission terminated proceedings against Italy concerning the application of flat-rate import duties to goods for which a customs debt is incurred under national transit arrangements. Italy abandoned the transit (2) Case C-l 19/92 [1994] ECR 1-393 (judgment given on 9 February 1994). 19 scheme following the entry into force of the new Community transit arrangements in connection with the internal market. In 1995 the Court gave three important preliminary rulings in which it found that national taxes should be prohibited as charges having an equivalent effect to customs duties: - - - the Court held that a transit charge designed In Dubois to compensate a private firm - in this case a road-vehicle depot - for bearing costs arising from the performance by the customs and veterinary services of their public service duties was contrary to Articles 9 and 12 of the Treaty, even though it was not imposed by the State but arose as a result of an agreement concluded between the private firm and its customers/3* In Simitzi the Court gave judgment concerning a consumption tax levied in the Dodecanese islands in Greece not only on import but also on export. Confirming its decision in Legros-Lancry (on dock dues levied in the French overseas departments), the Court held that the tax was contrary to Articles 9 and 12 of the Treaty, even though it applied to trade between the islands and the rest of Greece/4) Finally, in Aprile the Court confirmed and consolidated previous judgments concerning charges having an equivalent effect in trade with non-member countries, reminding Member States that they may not unilaterally impose charges which are incompatible with the principle of a single customs territory and the uniform application of the common commercial policy. It also held that where this prohibition is contained in agreements between the Community and certain non-member countries or in regulations establishing a common organization of the market in agricultural products, its scope is the same as in the case of intra-Community trade/5) (3) (4) (5) Case C-l6/94 [1995] ECR 1-2421 (judgment given on 11 August 1995). Joined Cases C-485 and 486/93 (judgment given on 14 September 1995). Case C-l25/94 (judgment given on 5 October 1995). 20 Progress in implementing directives applicable to the 2. 1. 1. 1. customs field MEMBER STATE BELGIUM DENMARK GERMANY GREECE STAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 12. 1995 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 Directives for which measures have been notified 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 % 100 100 100 100 100 100 100 100 100 100 100 100 1ÔÔ 100 1ÔÔ Note: this table concerns Directives 76/308, 77/794, 85/479, 86/489. 2. 1. 2. Free movement of agricultural products Freedom of movement for agricultural products in a single market is one of the principles underpinning the operation of the common agricultural policy and its common market organizations. The Court of Justice has repeatedly pointed out that Articles 30 and 34 of the Treaty are still an integral part of the common market organizations, even though there has no longer been any need to write them into the regulations since 1 January 1970. The Commission kept a constant watch to make sure that barriers to trade in agricultural products in the Community were removed. Before the removal of internal borders, import controls were the most numerous and the most varied of all the obstacles to trade. There has been a substantial fall in the number of new infringements involving controls on intra-Community trade in agricultural products since the establishment of the internal market and the entry into force of legislation harmonizing veterinary and plant health rules. In one recent case the Commission brought an action before the Court of Justice against Germany concerning measures it adopted in 1993 imposing requirements not provided for in Community legislation on imports of 21 certain kinds of fresh pigmeat from Denmark and providing for systematic checks which are incompatible with Article 30 of the Treaty and Directives 89/662/EEC and 91/497/EEC. Infringement proceedings have been terminated in two old cases (double checks on fishery products in Italy and prior import licences for bovine and porcine semen in Ireland), after it was established that the Member States in question had taken appropriate measures to comply with decisions of the Court of Justice. In the first case, Italy implemented the Court judgment relating to the transposai of Directive 91/493/EEC, which had condemned systematic checks on consignments of fish from other Member States and Norway /6) In the second case, Ireland notified the Commission of Statutory Instrument No 297 of 20 September 1994 by which it complied with the Court's judgment of 17 November 1992. (7) The Court had found that by making imports from domestic bovine and porcine animals subject to a licence and various other conditions, Ireland had failed to fulfil its obligations under Article 30 of the EC Treaty, Regulations (EEC) Nos 805/68 and 827/68, Directive 74/504/EEC and Decision 88/124/EEC. A number of minor problems concerning the measures notified have now been resolved. Besides these "classic" cases, the Commission has been confronted with a much less familiar problem - barriers to trade in fruit and vegetables in France resulting from acts of vandalism committed by groups of protesting farmers. In view of the unacceptable frequency of attacks on lorries, mostly transporting Spanish strawberries, and the lack of appropriate and proportionate action by the forces of law and order, the Commission brought the matter before the Court of Justice (Case C-265/95). The Commission believes that the right to the free movement of goods guaranteed by the Treaty imposes on Member States the obligation to adopt whatever measures are necessary to ensure that this principle is observed, including measures against individuals who place it in jeopardy. The Commission considers that, in failing to take appropriate measures to end these serious obstacles to the free movement of agricultural products resulting from the actions of individuals, the French authorities have failed to fulfil their obligations arising from the common market organizations and Article 30 of the Treaty, in conjunction with Article 5. (6) (7) Case C-228/91 [1993] ECR 1-2701 ftudgment given on 25 May 1993). Case C-235/91 [1992] ECR 1-5917. 22 2. 2. Removal of technical barriers 2. 2. 1. Free movement of goods 2. 2. 1. 1. Articles 30 et seq. of the EC Treaty Articles 30 et seq. of the EC Treaty prohibit quantitative restrictions on imports and exports, and all other measures having equivalent effect/8) The Commission seeks to ensure that the internal market rules are properly applied and therefore has to monitor Member States' compliance with these articles. It strives to remove technical barriers to trade and develop instruments which will prevent new barriers being raised. Commission action This year the Commission dealt with some 1 270 cases, of which 238 were not proceeded with and only two were referred to the Court of Justice. Although the number of cases was up on 1994, these figures show that the approach adopted by the Commission, which is based on regular dialogue with the national authorities, has continued to produce results. The Commission departments responsible held meetings with the authorities from eight Member States to discuss current complaints and infringement proceedings and explore possible non-contentious solutions to complex problems. Meetings of this kind were held with Spain, France, Italy, Germany, Greece, the Netherlands, and, for the first time, Belgium; clearly the benefits of dialogue are well understood by all. More than sixty cases were settled as a result. This has been a successful practice, since it accustoms national authorities to taking into account the fundamental principles of Community law, such as the principle of the free movement of goods, when enacting legislation. Consequently, the exercise has already been extended to Austria and will cover Finland and Sweden in 1996. The following examples illustrate the success of these "package meetings", as they are known: - - France has abolished the administrative mechanism for fixing the resale price of manufactured tobacco, which was contrary to the case law of the Court of Justice, and replaced it with a system whereby manufacturers and suppliers are free to determine prices, which are then subject to approval. The British authorities have also taken steps to comply with Community law by introducing legislation on the type-approval of ultra-light motorized devices, thereby making it easier to import (8) See 1993 Report. 23 such devices, provided they have been lawfully manufactured or marketed in another Member State in accordance with equivalent safety requirements or tested using analysis methods equivalent to those applied in the United Kingdom. Package meetings also serve to foster direct links between the Commission and regional and local government authorities. Dialogue of this kind has paved the way for substantial progress in changing administrative practices and regional legislation in Spain which barred access to fairs and exhibitions to goods from other Member States. As a rule, the Member State amends the legislation challenged to comply with the Treaty and the matter is closed. However, pending an official amendment, Member States frequently adopt interim measures, such as circulars published in their national official gazettes or public notices in the information bulletins of the relevant enforcement agencies, informing interested parties that the legislation in question is to be interpreted in such a way as to be compatible with the principle of free movement of goods and will be applied accordingly by the authorities. Some of these circulars may also guarantee that Community law will be applied by the national or local authorities. For example, the Italian authorities sent a circular to the regional authorities in Lombardy reminding them of the procedures applicable to certain types of public contract under national implementing legislation. Member States also publish notices in their official gazettes which in effect amplify or clarify national legislation to make it consistent with Community law. For example, following a "package meeting", the French authorities published in the national official gazette a notice to importers of road tankers recognizing the validity of tests carried out in another Member State provided they guarantee an equivalent level of safety. The Commission seeks and receives support and cooperation from national government departments to help it carry out its tasks consistently. For example, they assist the Commission in its horizontal surveys of national rules in particular industries. Four surveys were carried out in 1995, dealing respectively with the application of Articles 30 to 36 of the Treaty in the foodstuffs industry (in conjunction with the Communication published in OJ C 271 of 24 October 1989), national legislation on the parallel import of medicinal products, national legislation on the parallel import of pesticides and plant protection products and, finally, national rules applicable to intra-Community trade in raw gold for non-monetary use. The Commission also takes preventive action. Using the notification procedure established under Directive 83/189/EEC, it requests national authorities to insert mutual recognition clauses in their draft technical rules/9) Such clauses prevent the creation of new obstacles to trade. For (9) See Chapter 2. 2. 1. 2. 24 example, Portugal inserted in its draft legislation clauses recognizing the the technical rules in force production and use of underwater concrete and the specifications and conditions for the production and marketing of cement. in the other Member States regarding Case law of the Court of Justice The case law of the Court of Justice also contributes to the uniform and effective application of Community law. This is particularly evident in connection with Articles 30 et seq. of the Treaty, which fail to define the concept of "measures having equivalent effect" to quantitative restrictions. The following judgments are worthy of special mention: - Televised advertising - Free movement of goods and services00) The Court held that Article 30 of the Treaty must not be interpreted as applying to cases where a Member State - in this case France - prohibits by law or regulation the broadcasting of televised advertising for the distributive trades. Applying the criteria laid down in Keck and Mithouard, the Court found that such measures were not aimed at regulating trade in goods between Member States, but were concerned with selling arrangements, and that they applied regardless of the type of product to all traders and affected the marketing of products from other Member States and domestic products in the same manner. - Maximum permissible levels of pesticide residues00 The Court held that Council Directive 90/642/EEC of 27 November 1990 on the fixing of maximum permissible levels of pesticide residues in and on certain products of plant origin does not preclude national - in this case Italian - legislation from setting maximum permissible levels for residues of chlorpropham and propham and laying down procedures for checking compliance with those levels. However, the legislation must comply with Articles 30 and 36 of the Treaty. - Import of a narcotic drug (diamorphine)(12) The Court took the view that a national practice prohibiting the import of narcotic drugs (in this case into the United Kingdom) fell within the scope of Article 30. Such an import ban could not be permitted under Article 36 if it were based on the need to safeguard a firm's survival. However, it might come under the derogation provided for in Article 36 if the protection of the health and life of humans were at stake and that objective (,0) (,1) (12) Case C-412/93 [1995] ECR 1-179 Gudgment given on 9 February 1995). Joined Cases C-54/94 and C-74/94 [1995] ECR 1-391 (judgment given on 23 February 1995). Case C-324/93 [1995] ECR 1-563 Gudgment given on 28 March 1995). 25 could not be achieved as effectively by measures less restrictive of intra-Community trade. - Sale of milk for infants exclusively in pharmacies03) The Court found that legislation which had the effect of restricting the commercial freedom of traders without bearing on the characteristics of the products in question was concerned with selling arrangements; the rules in question prohibited the marketing of processed milk for infants except in pharmacies and thereby determined in a general manner in which retail outlets it may be sold. - Presentation of a product likely to restrict freedom to set retail prices and mislead the consumer*14) The Court held that the decision by the German authorities to prohibit the marketing of a product bearing a publicity marking was a measure with equivalent effect to a quantitative restriction within the meaning of Article 30, even though it applied without distinction to all products. The ban covered the release for free circulation in one Member State of products bearing a publicity marking that was used lawfully in other Member States. It was therefore likely to hinder intra-Community trade since it might compel the importer to change the presentation of his products according to the place where they are to be marketed and consequently to incur additional packaging and advertising costs. By routinely applying the criteria laid down in Keck and Mithouard, the Court has clearly excluded a number of national rules from the scope of Article 30. 2. 2. 1. 2. The preventive rules of Directive 83/189/EEC The notification procedure of Directive 83/189/EEC, as amended by Directive 88/182/EEC, is an essential tool for preventing barriers to trade from being raised and for sharing information. Member States are required to notify drafts of new technical regulations for vetting. The procedure does not cover technical regulations issued to implement directives. The Commission received 382 drafts of technical regulations/15) which were scrutinized by the relevant departments. This figure compares with 385 in 1993 and 389 in 1994(16) - clear evidence that, despite the completion of the internal market at the end of 1992, Member States are (13) (14) (15) (16) Case C-391/92 [1995] ECR 1-1621 Gudgment given on 29 June 1995). Case C-470/93 [1995] ECR 1-1923 Gudgment given on 6 July 1995). This was the figure at 16 November 1995. These figures are for the twelve old Member States only. If notifications by the three new Member States are included, the figures are 438 in 1993 and 442 in 1994. 26 still adopting large numbers of technical regulations which could undermine the single market and the integrity of the benefits it has brought to all sectors of the economy. to the measure Of the 382 drafts received, 41 required a detailed opinion0 7) recommending infringements of secondary to eliminate changes Community legislation or to debar the establishment of new barriers to trade. For their part, the Member States issued 43 opinions/15) In three cases0 5) the Commission had to ask the Member State for a one-year postponement of the measures as it intends to propose harmonization directives. However, there were no cases in which measures had to be postponed because of an overlap with a draft directive or regulation already before the Council. Since 1989 the Commission has been monitoring compliance with the notification requirement by routinely scrutinizing the official gazettes of all the Member States. When it discovers a breach of Directive 83/189/EEC, it commences infringement proceedings under Article 169 of the EC Treaty. In 1995 some 2240 national laws were examined, of which about 30% were technical rules which had not been notified under the Directive or fell outside its scope. After careful study to see whether these rules should be notified under the Directive, the Commission commenced 31 infringement proceedings and referred two cases to the Court of Justice. 2. 2. 2. Progress in implementing directives on the free movement of goods 2. 2. 2. 1. Foodstuffs The Commission examined around twenty cases where directives and regulations in this area were incorrectly applied. All of these cases were the subject of an informal exchange of letters between the relevant infringement Commission departments and national authorities. No proceedings have yet been commenced in them. Some of the infringements concern the incorrect application of Directive 79/112/EEC on the labelling of foodstuffs, as in the following example: Directive 79/112/EEC lays down an exhaustive list of information which must be indicated on the labels of foodstuffs (sales description, list of ingredients, net quantity, etc. ). However, a Member State may deem it necessary to impose new labelling indications, which are not laid down by the Directive, in order to provide better information for consumers. Since a unilateral obligation of this kind may constitute a barrier to trade between the Member States, Directive 79/112/EEC provides that the Member State must notify the Commission and the other Member States (17) This was the figure for drafts which had to be notified before 16 November 1995. 27 of its proposed measure. The Commission then scrutinizes the draft and may oppose its adoption. During the year, two Member States were in breach of Community law for failing to follow the notification procedure laid down in the Directive. 2. 2. 2. 2. Progress in implementing directives applicable to foodstuffs MEMBER STATE Directives applicable on 31. 10. 1995 BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM 78 n n n 78 78 n 78 78 n 78 78 78 78 78 Directives for which measures have been notified 73 73 72 73 rt 6% 70 68 74 77 54 72 68 71 74 % 92 92 92 92 92 87 90 87 95 99 69 92 87 91 95 Note: this table concerns Directives 62/2645, 64/54, 65/66, 67/427, 70/357, 73/241, 73/437, 74/329, 74/409, 75/726, 76/118, 76/621, 77/436, 78/142, 78/663, 78/664, 79/112,79/168,79/693,79/796,79/1066,79/1067, 80/590, 80/766, 80/777, 80/891, 81/432, 81/712, 82/711, 83/417, 83/463, 84/500, 85/503, 85/572, 85/591, 86/424, 87/250, 87/524, 88/344, 88/388, 88/593, 89/107, 89/108, 89/109, 89/344, 89/394, 89/395, 89/396, 89/397, 89/398, 90/128, 90/496, 90/612, 91/71, 91/72, 91/238, 91/321, 92/1, 92/2, 92/4, 92/39, 92/52, 92/115, 93/5, 93/8, 93/9, 93/10, 93/11, 93/43, 93/45, 93/77, 93/99, 93/102, 93/111, 94/35, 94/36, 94/52, 94/54. 2. 2. 2. 3. Pharmaceutical products Implementation has improved, however the main problem is with the homéopathies Directives. There are also some general problems concerning the interpretation of Directives 65/65/EEC and 75/319/EEC, in so far as these Directives impact on the new legal framework established by Regulation (EEC) No 2309/93 and Directives 93/39/EEC, 93/40/EEC and 93/41/EEC. The particular issues are: (i) definitions for a medicinal product and for a borderline product, and (ii) abridged applications for a Marketing Authorization for a medicinal product essentially similar to one already authorized. To address these issues and the increasing complexity of the Directives, due to the fact that the more recent legislation modifies earlier Directives, all of the pharmaceutical legislation, both human and veterinary will be 28 Consolidated. The consolidation will increase the clarity of the legislation and ultimately the effectiveness of its implementation. 2. 2. 2. 4. pharmaceuticals Progress in implementing directives applicable to MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 10. 1995 34 34 34 34 34 34 34 34 34 34 34 34 34 34 34 Directives for which measures have been notified 29 33 30 32 31 26 27 32 28 31 23 29 31 33 34 % 85 97 88 94 91 76 79 94 82 91 68 S5 91 97 100 Note: this table concerns Directives 65/65, 75/318, 75/319, 78/25, 80/342, 81/851, 81/852, 83/570, 87/19, 87/20, 87/21, 87/22, 88/320, 89/105, 89/341, 89/342, 89/343, 89/381, 90/&!, 91/356, 91/507, 90/676, 90/677, 91/412, 92/18, 92/25, 92/26, 92/27, 92/28, 92/73, 92/74, 93/39, 93/40, 93/41. 2. 2. 2. 5. Chemicals There are no particular problems in the application of directives in this sector. The number of infringement proceedings commenced for failure to notify national implementing measures or for incorrect implementation remains small. The harmonization of restrictions on the use of dangerous substances was the first field in which Member States requested derogations under Article 100a(4) of the Treaty, the purpose being to maintain national legislation which sets more stringent protection standards than those laid down in the various directives amending the basic Directive 76/769/EEC. The Commission received requests for derogations from Germany, the Netherlands and Sweden concerning restrictions on the use of creosote time Directive under Directive 94/60/EC amending 76/769/EEC on restrictions on the marketing and use of certain dangerous substances. It had already received requests from Denmark and the Netherlands concerning pentachlorophenol, which are still being examined by the relevant departments. the 14th for 29 2. 2. 2. 6. Progress in implementing directives applicable to chemicals MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 10. 1995 46 46 46 46 46 46 46 46 46 46 46 46 46 46 46 Directives for which measures have been notified 3$ 43 35 39 42 38 42 37 41 44 39 36 45 45 37 % S3 94 76 89 92 83 91 80 89 96 85 78 98 98 80 Note: this table concerns Directives 73/404, 73/405, 76/116, 76/769, 77/535, 78/631, 79/138, 79/663, 80/876, 81/187, 82/242, 82/243, 82/806, 82/828, 83/264, 83/478, 84/291, 85/467, 85/610, 87/94, 87/566, 88/126, 88/183, 88/379, 89/178, 89/284, 89/519, 89/530, 89/677, 89/678, 90/35, 90/492, 91/155, 91/173, 91/338, 91/339, 91/442, 91/659, 92/109, 93/1, 93/15, 93/18, 93/46, 93/69, 94/60, 95/8. 2. 2. 2. 7. Motor vehicles, tractors and motorcycles The transposai of directives in this field is trouble-free. The only delays in incorporation into national law are in Belgium and Finland. Given the detailed, technical nature of the motor vehicle provisions, many Member States routinely refer in their national legislation to the text published in the Official Journal, which in practice facilitates and speeds up the transposai process and scrutiny for conformity with Community law. There are delays, but they rarely exceed a few months and generally arise because the deadline for transposing the directive comes soon after the date of adoption. the deadline for transposai. Infringements Most of the cases examined for failure to notify were terminated as notification of national implementing measures was received a few months involving incorrect after implementation are rare and generally resolved after an Article 169 letter has been sent. Of the four infringement proceedings pursued this year, two involved purely technical problems and were terminated within one year of the complaint being lodged, while the other two, concerning the 30 disputed application of in conjunction with Articles 30 and 36 of the Treaty, are still being examined. the directives on pollutant emissions, 2. 2. 2. 8. vehicles, tractors and motorcycles Progress in implementing directives applicable to motor MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 12. 1995 176 176 176 176 176 176 176 176 176 176 176 176 176 176 176 Directives for which measures have been notified 158 175 175 171 175 174 175 175 174 172 171 171 157 172 171 % 89 M 99 97 $$ 98 99 99 98 97 97 97 89 97 97 this table concerns Directives 70/156, 70/157, 70/220, 70/221, Note: 70/222, 70/311, 70/387, 70/388, 71/127, 71/320, 72/245, 72/306, 73/350, 74/060, 74/061, 74/132, 74/150, 74/151, 74/152, 74/290, 74/297, 74/346, 74/347, 74/408, 74/483, 75/321, 75/322, 75/443, 75/524, 76/114, 76/115, 76/432, 76/756, 76/757, 76/758, 76/759, 76/760, 76/761, 76/762, 76/763, 77/102, 77/143, 77/212, 77/311, 77/389, 77/536, 77/537, 77/538, 77/539, 77/540, 77/541, 77/649, 78/315, 78/316, 78/317, 78/318, 78/507, 78/547, 78/548, 78/549, 78/632, 78/665, 78/764, 78/932, 78/933, 78/1015, 79/488, 79/489, 79/490, 79/532, 79/533, 79/622, 79/694, 79/795, 79/1073, 80/233, 80/720, 80/780, 80/1267, 80/1268, 80/1269, 80/1272, 81/333, 81/334, 81/575, 81/576, 81/577, 81/643, 82/244, 82/318, 82/319, 82/890, 82/953, 83/190, 83/276, 83/351, 84/008, 84/372, 84/424, 85/205, 85/647, 86/297, 86/298, 86/415, 86/562, 87/056, 87/358, 87/402, 87/403, 87/405, 88/076, 88/077, 88/194, 88/195, 88/297, 88/321, 88/366, 88/410, 88/411, 88/412, 88/413, 88/414, 88/436, 88/465, 89/173, 89/235, 89/277, 89/278, 89/297, 89/458, 89/491, 89/516, 89/517, 89/518, 89/680, 89/681, 89/682, 90/628, 90/629, 90/630, 9Ï/226, 91/328, 91/422, 91/441, 91/542, 91/662, 91/663, 92/021, 92/022, 92/023, 92/024, 92/053, 92/062, 92/097, 92/114, 93/059, 92/061, 93/14, 93/81, 93/91, 93/116, 93/29, 93/30, 93/31, 93/32, 93/33, 93/34, 94/12, 94/20, 94/53, 94/68, 94/78, 95/54. 31 2. 2. 2. 9. Construction products The Commission has commenced an action in the Court of Justice against Belgium, the only Member State not to have notified national measures implementing Directive 89/106/EEC. There are also particular problems in Austria due to its federal structure (the Lander have the power to incorporate Community rules into their own legislation, but not all of them have done so). The Commission now uses the mechanism laid down in that Directive to follow up complaints on obstacles to trade and check that the practices in question are consistent with Community law. In the past such cases were examined only in the light of Articles 30 to 36 of the Treaty. 2. 2. 2. 10. prepackaging, measuring equipment, electronics and medical devices Mechanical engineering, personal protection equipment, Most directives in this field come under the "new approach". They confine themselves to setting fundamental safety requirements and introduce machinery for authorizing the marketing and free movement of safe appliances in the Community. The rate of transposai is satisfactory, considering the technical complexity of the directives. In most cases outstanding delays in transposai are due to the national legislative process, federal administrative structures and problems in the interpretation of texts. Despite these delays and the fact that transposai is sometimes incomplete, there are no obstacles to the free movement of products which comply with the directives. 32 Progress 2. 2. 2. 11. to mechanical engineering, personal protection equipment, prepackaging, measuring equipment, electronics and medical devices implementing directives applicable in MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 12. 1994 92 92 92 92 92 92 92 92 92 92 92 92 92 92 92 Directives for which measures have been notified 88 92 88 89 88 89 89 85 89 91 85 90 90 89 90 % 96 100 96 96 96 96 96 92 96 99 92 98 98 96 98 this table concerns Directives 69/493, 71/316, 71/317, 71/318, Note: 71/319, 71/347, 71/348, 71/349, 72/427, 73/23, 73/360, 73/361, 73/362, 74/148, 74/331, 75/33, 75/106, 75/107, 75/324, 75/410, 76/117, 76/211, 76/434, 76/696, 76/764, 76/765, 76/766, 76/767, 76/891, 77/95, 77/313, 78/365, 78/629, 78/891, 78/1031, 79/196, 79/830, 79/1005, 80/181,80/232, 82/621, 82/622, 82/623, 82/624, 82/625, 83/128, 83/575, 84/47, 84/414, 84/525, 84/526, 84/527, 84/528, 84/529, 84/532, 84/539, 85/1, 85/10, 85/146, 86/96, 86/217, 86/295, 86/296, 86/312, 86/663, 87/354, 87/355, 87/356, 87/404, 88/316, 88/571, 88/665, 89/240, 89/336, 89/392, 89/617, 89/676, 89/686, 90/384, 90/385, 90/396, 90/486, 90/487, 90/488, 91/368, 92/31, 93/44, 93/95, 93/42, 94/1, 94/9, 94/26. 33 2. 2. 3. Free movement of persons, right of establishment and voting rights 2. 2. 3. 1. Ending discrimination Infringement proceedings are under way against a number of Member States concerning the application of Regulation (EEC) No 1612/68 on the free movement of workers. The Court of Justice gave judgment in the case brought against Greece in 1994 regarding the conditions imposed on nationals of the other Member States wishing to teach a foreign language, with a view to ensuring equal access to this profession for all Community citizens. (18) The Commission has now commenced infringement proceedings against Greece under Article 171 for failing to implement the Court's decision. An action is still in progress before the Court against the Belgian legislation which discriminates against young job-seekers who have studied in another Member State, denying them the integration benefits which are a prior condition for access to certain jobs in Belgium. The Commission sent an Article 171 letter to the Belgian authorities following the judgment given by the Court concerning the withholding of finance for university studies from students from other Member States who are in Belgium solely for the purpose of studying there. (19) The Commission sent Belgium a reasoned opinion in another case concerning study grants for a government-sponsored exchange scheme between Belgium, Luxembourg and the United States. Two reasoned opinions have been sent to Greece - one for discrimination on the grounds of nationality in acknowledging the eligibility of large families for certain allowances and the other on conditions for access to the profession of medical specialist. The Commission also sent reasoned opinions to France concerning discrimination based on nationality for the granting of teacher training allowances and discrimination against early-retired frontier workers and to Germany for incorrect application of the Community rules on the residence of Community nationals. A reasoned opinion was sent to the United Kingdom for failing to accord social security benefits to a Community worker in the form of reductions in university entrance fees and study grants for his spouse. Infringement proceedings against Luxembourg were terminated after the Commission accepted that the new Luxembourg legislation on the granting of pre-natal and maternity benefits was consistent with Community law (18) (19) Case 123/94 [1995] ECR 1-1457 (judgment given on 1 June 1995). Case C-47/93 [1994] ECR 1-1593 Gudgment given on 3 May 1994). 34 the under Case C-l 11/91. terms of the Court's judgment on 10 March 1993 in In the tax field, the Court gave judgment in a case brought by the Commission against Luxembourg concerning the final payment of income tax by non-resident workers. The Court found in the Commission's favour. (20) Finally, the Commission sent an Article 171 letter to Belgium concerning the granting of certain social security benefits (minimum income, benefit for the disabled). (21) 2. 2. 3. 2. Entry and residence As regards right of residence, the Commission commenced an action against Germany for failure to notify measures implementing Directives 90/365/EEC (employees and self-employed persons who have ceased their occupational activity) and 90/364/EEC (persons not in active employment). It also sent a reasoned opinion to Germany for failure to notify implementing measures in respect of Directive 93/96/EEC. The Commission brought an action against Belgium because of discrimination in the conditions and detailed arrangements for issuing residence permits. (20) (21) Case C-l51/94 (judgment given on 26 October 1995). Case C-326 [1992] ECR 1-5517 Gudgment given on 10 November 1992). 35 Progress in implementing directives applicable to right of 2. 2. 3. 3. residence MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 12. 1995 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 Directives for which measures have been notified 4 5 2 5 5 5 5 5 5 5 5 5 5 5 5 % 80 100 40 100 1ÔÛ 100 100 100 100 100 100 100 100 100 100 Note: this table concerns Directives 64/221, 73/148, 90/364, 90/365, 93/96. 2. 2. 3. 4. Right to vote and stand in elections Under Directive 93/109/EC, Union citizens residing in a Member State of which they are not nationals were able to vote and stand in elections to the European Parliament in June 1994. A report is being drawn up on the application of the Directive during these elections. On 17 September 1995 elections to the European Parliament were held in Sweden, with the participation of nationals of other Member States residing there. 2. 2. 3. 5. Trade union rights Following a judgment given by the Court concerning the right of foreign workers to stand for election in trade associations, Luxembourg enacted new legislation which is consistent with Community law. (22) (22) Case C-l 18/92 [1994] ECR 1-1891 Gudgment given on 18 May 1994). 36 2. 2. 3. 6. Access to employment in the public service For a number of years the Commission has been conducting a systematic campaign to open up four priority areas of the public service to workers from other Union countries (state education, civilian research, operational public health services and public bodies responsible for administering commercial services). (23) To this end it commenced several infringement proceedings. Cases are still in progress before the Court against Belgium, Luxembourg and France. There have been positive developments on the legislative front in Italy, where three laws have been passed, and Spain, which has adopted satisfactory legislation in all four areas. The Commission's systematic efforts in the priority sectors have rubbed off in other sectors - France and Germany, for example, have enacted legislation (in July 1991 and December 1993 respectively) whose scope is not confined to the priority areas but, in theory, covers the public service as a whole. 2. 2. 3. 7. Social security of migrant workers The United Kingdom authorities in Gibraltar decided to dissolve the Social Insurance Fund from 1 January 1994. Many of the persons affected by this decision are former migrant workers, from whom the Commission has received more than 6 500 complaints. Bearing in mind the principles of Community law at stake - i. e. equal treatment and the upholding of rights acquired and or in the process of free movement of workers being acquired (application of Regulation (EEC) No 1408/71) - and the consequences for freedom of movement within the Community, the Commission sent a reasoned opinion to the United Kingdom authorities. to guarantee in order 2. 2. 3. 8. Recognition of qualifications Cases decided by the Court of Justice In the most notable judgment given by the Court in this field, Italy was condemned for improper implementation of Directives 78/686/EEC and 78/687/EEC (dentists). (24) The following are noteworthy among the Article 171 cases for failure to comply with earlier Court of Justice judgments: (23) (24) See Commission communication, OJ No C 72, 18. 3. 1988, p. 2. Case C-40/93 [1995] ECR 1-1319 Gudgment given on 1 June 1995). 37 - - - A reasoned opinion was sent to Belgium for failing to comply with the judgment given on 16 May 1991 (Case C-l67/90) concerning the incorrect transposai of Directives 85/432/EEC and 85/433/EEC (pharmacists). In the case concerning private schools in Greece (frontistirid), the Greek authorities amended their legislation after two judgments given against them by the Court. In Case C-l47/86, the Court condemned Greece for a breach of Articles 48, 52 and 59 of the Treaty in the form of a ban on nationals of other Member States setting up frontistiria and private music and dance schools. In a judgment given on 30 January 1992, Greece was condemned for a the newly-adopted second time (Case C-328/90). However, legislation Jias still not ended the Commission has therefore decided to recommence Article 17. 1 proceedings. the discrimination and Article 171 proceedings have also been commenced against Italy and France concerning the freedom of tourist guides to provide services. (25) Two other cases stand out: - - Following the judgment given against Spain in Case C-3 75/92 concerning the freedom of tourist guides to provide services,(26) some of the Autonomous Communities have adopted new decrees on the exercise of that profession. The Commission is now scrutinizing these measures to determine whether they comply with the Court's judgment. Greece has implemented the Court's judgment of 26 February 1991 on tourist guides, although a few minor problems have still be settled. National implementing measures On 3 August 1995 the Commission adopted Directive 95/43/EC amending Annexes C and D to Council Directive 92/51/EEC (second general system for the recognition of professional education and training). The Court of Justice condemned Greece (Case C-365/93)(27) and Belgium (Case C-316/94)(28) for failure to notify measures transposing Directive 89/48/EEC (first general system). However, the two countries have still not transposed the Directive and have been sent a letter reminding them of their obligations pursuant to the Court's judgments. (25) (26) (27) (28) Judgment given on 26 February 1991. Judgment given on 22 March 1994. Judgment given on 23 March 1995. Judgment given on 13 July 1995. 38 Infringement proceedings have been commenced against Greece, Belgium, Portugal, Ireland and the United Kingdom for failure to notify measures implementing Council Directive 92/51/EEC, which supplements Directive 89/48/EEC. Incorrect transposai and incorrect application of directives The Commission received around forty complaints concerning restrictions in breach of Articles 52 and 59 of the EEC Treaty and directives on the mutual recognition of professional qualifications. Some of these complaints gave rise to infringement proceedings, while others were shelved. The Commission pursued a number of proceedings already in motion against Member States for incorrect transposai or incorrect application of directives. For example: - - - - - a case concerning the transposai of Directive 89/48/EEC with regard to the teaching profession in Germany and France; a proceeding in motion against Germany concerning access to the dental profession (requirements not allowed by the dentist directives for admission to the social security register of dentists who hold non-German qualifications which conform to the directives); a case in progress against Spain - which also figured in last year's report - for admitting dentists with qualifications obtained in Latin America at a level far below the directive's requirements; a proceeding against the Spanish legislation implementing the architects Directives, which lays down restrictions on the maximum period during which services may be provided in Spain; new infringement cases relating to Directive 89/48/EEC, including one against Spain for incomplete transposai as regards the aptitude test for lawyers and another against Italy for failing to observe the procedural guarantees laid down in the Directive. The Commission decided not to pursue complaints against France and the Netherlands, after they ended discrimination against lawyers trained in another Member State. 39 2. 2. 3. 9. recognition of qualifications Progress in implementing directives applicable to MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 12. 1995 63 63 63 63 63 63 63 63 63 63 63 63 63 63 63 Directives for which measures have been notified 58 63 61 59 61 61 60 61 63 63 61 58 62 62 63 % 92 too 97 94 97 97 95 97 too 1ÔÔ 97 92 98 98 1ÔÔ Note: this table concerns Directives 63/261, 63/262, 64/222, 64/223, 64/224, 64/227, 64/228, 64/229, 65/1, 66/162, 67/43, 67/530, 67/531, 67/532, 67/654, 68/192, 68/363, 68/364, 68/365, 68/366, 68/367, 68/368, 68/369, 68/415, 69/82, 70/451, 70/522, 70/523, 71/18, 74/556, 74/557, 75/362*, 75/363*, 75/368, 75/369, 77/249, 77/452, 77/453, 78/686, 78/687, 78/1026, 78/1027, 80/154, 80/155, 80/1057, 80/1273, 82/76, 82/470, 82/489, 85/384, 85/432, 85/433, 85/584, 85/614, 86/017, 86/457*, 89/048, 89/594, 89/595, 90/658*, 92/51, 94/38, 95/43. These Directives were consolidated by Directive 93/16 (free movement of doctors and mutual recognition of diplomas, certificates and other evidence of formal qualifications) 2. 2. 3. 10. Independent commercial agents Directive 86/653/EEC on independent commercial agents has been transposed in all the Member States. 40 2. 2. 4. Freedom to provide services 2. 2. 4. 1. Broadcasting All the Member States have notified national measures to implement Directive 89/552/EEC (television without frontiers). The Commission is scrutinizing the relevant legislation of the new Member States. Following various initiatives by the Commission, solutions seem to be in sight for most of the problems in transposai (ambiguities in the drafting of national measures or mistakes in interpretation). However, problems of substance still remain with Belgium and the United Kingdom concerning Article 2 (prior controls on programmes broadcast from another Member State and failure to respect the hierarchy of criteria determining the jurisdiction of a Member State) and Articles 4 and 5 on the promotion of European works (licensing in the United Kingdom of broadcasting companies which do not comply with these provisions). The Commission keeps a constant watch to ensure that the provisions of the Directive are effectively and correctly applied. Following a number of complaints, it paid particular attention to the effective application of the rules on advertising and sponsorship and the protection of minors. 2. 2. 4. 2. Telecommunications frequencies All the Member States have notified national measures implementing the three directives on (GSM), 90/544/EEC (Errnes) and 91/287/EEC (DECT). After examining the measures notified, the Commission is satisfied that they are consistent with Community law. It has now begun scrutinizing the measures notified by the new Member States (Austria, Finland and Sweden). - Directives 87/372/EEC Some Member States have still not implemented Decision 91/396/EEC on the introduction of "112" as the standard emergency services number throughout the Union. Under Article 2 of the Decision, Member States are required to introduce the new number in parallel with any other existing national emergency number by 31 December 1992. Seven Member States (Germany, Austria, Belgium, Denmark, Finland, Luxembourg and the United Kingdom) have adopted measures implementing the Decision. Technical and financial problems have prompted five others (France, Ireland, Italy, the Netherlands and Sweden) to ask the Commission for a derogation until 31 December 1996. (29) In Spain, Greece and Portugal, introduction of the new number has been hampered by administrative problems (responsibility shared between different Ministries). Ten Member States (Germany, Belgium, Denmark, Greece, Luxembourg, Ireland, Italy, the Netherlands, Portugal and the United Kingdom) have already introduced "00" as the standard code for access to the international (29) In accordance with Article 3 of the Decision. 41 network in the Community, in accordance with Decision 92/264/EEC. France has notified the Commission of technical and organizational problems in adopting the standard access code and asked for an extension of the deadline under Article 3(2) of the Decision. Austria, Finland and Sweden notified the ESA that they would require extra time to implement the Decision (until December 1997, October 1996 and the end of 1998 respectively). Spain has still supplied no information on implementation of the Decision. All the Member States have now transposed the framework Directive 90/387/EEC on open network provision (ONP), which sets out the general principles on access to public telecommunications networks and services, thereby guaranteeing harmonized specifications that are clearly defined and recognized throughout the Union. The Commission has scrutinized the national measures notified by ten Member States (Belgium, France, Germany, Denmark, the Umted Kingdom, Portugal, Spain, Italy, Ireland and the Netherlands) transposing the first specific ONP Directive, Directive 92/44/EEC. The measures notified by France, the United Kingdom and Denmark are consistent with Community law, while the others fail to transpose the whole Directive. Infringement proceedings are in motion (or will be commenced) against the Member States concerned. The notifications from Austria, Finland and Sweden are still being examined by the Commission. The Court of Justice found that, by not adopting transposai measures, Luxembourg and Greece had failed to fulfil their obligations under Article 189 of the EC Treaty. (30) The Court was also asked to give a preliminary ruling under Article 177 of the Treaty concerning the application of the Directive in the United Kingdom. (31) This will be an opportunity for the Court to define the scope of the Directive and interpret some of its provisions (Articles 3 to 10). The basic Directive on the harmonization of telecommunications terminal equipment (Directive 91/263/EEC) is a framework law providing for the adoption of common technical rules for its implementation. Five Member States have implemented the entire Directive (Denmark, France, Italy, Portugal and the United Kingdom), while the notifications from Germany, Spain and the Netherlands are incomplete. Infringement proceedings have been commenced against all three States. Scrutiny of the national implementing measures notified by Austria, Finland and Sweden is under way. (30) (3D Cases C-220/94 [1995] ECR 1-1589 (judgment given on 15 June 1995) and 259/94 [1995] ECR 1-1947 (judgment given on 6 July 1995). Case C-302/94 - BT. 42 The Court of Justice condemned Belgium and Greece for failure to notify national measures incorporating the obligations flowing from the Directive into national law. (32) Directive 91/263/EEC was amended by Article 11 of Directive 93/68/EEC on the standardization of the symbols and rules for marking products in the Community. So far four Member States have notified the Commission of new implementing measures on marking (Denmark, France, Portugal and the United Kingdom). Directive 93/97/EEC extending the scope of Directive 91/263/EEC to the equipment of ground satellite tracking stations entered into force on 1 May 1995. Seven Member States (Germany, Denmark, Finland, France, the Netherlands, the United Kingdom and Sweden) have notified the Commission of national measures transposing the new Directive. 2. 2. 4. 3. telecommunications. Progress in implementing directives applicable to MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 12. 1995 7 7 7 7 7 7 7 7 7 7 7 7 7 7 7 Directives for which measures have been notified 5 7 7 4 6 7 5 6 4 7 6 6 7 7 7 ' % 71 100 100 57 86 100 71 86 57 100 86 86 100 100 100 Note: this table concerns Directives 87/372, 90/387, 90/544, 91/263, 91/287, 92/044, 93/097. (32) Case C-218/94 [1995] ECR 1-1089 Gudgment given on 5 May 1995) and Case C-260/94 [1995] ECR 1-2603 (judgment given on 11 August 1995). 43 2. 2. 4. 4. Financial services Dialogue with the national authorities As a means of consolidating administrative cooperation and resolving problems quickly, the Commission maintained regular contacts with the national authorities through institutional committees (Banking Advisory Committee, Insurance Committee, UCITS - Undertakings for Collective Investment in Transferable Securities - Contact Committee), ad hoc interpretation groups (the banking Directives group, the insurance group and the capital adequacy Directive group, etc. ) and high-level working parties (HLSSC - High-Level Security Supervisors Committee - for negotiable securities). Article 169 letters and reasoned opinions - - the insurance field, the Commission new proceedings. In commenced infringement proceedings in 13 new cases for breaches of Articles 52 and 59 of the Treaty and directives (six cases following complaints and seven detected by the Commission itself). In the banking sector the Commission opened four proceedings (two based on formal complaints and two detected on its own initiative) and shelved five complaints without taking further action. It is worth noting that the number of proceedings formally commenced in 1995 was considerably higher than in 1994; reasoned opinions. Many infringement proceedings have reached the reasoned opinion stage. Most of them (though not all, as will be seen) are concerned with failure to notify national implementing measures in the insurance field. The following cases are particularly noteworthy - - Luxembourg was sent a reasoned opinion for failing to bring its legislation on insurance brokers into line with Article 59 of the Treaty. The main point at issue is that the Luxembourg legislation requires directors, general representatives, inspectors, agents and brokers and any other person performing insurance operations to thereby effectively preventing be resident individuals from exercising the freedom to provide services; in Luxembourg, as regards the transposai of Directives in the insurance field, infringement proceedings are in progress against Spain, Ireland, and Greece for failure to notify measures implementing Directive 91/3 71/EEC (Agreement with Switzerland) and against Italy, Belgium, Greece and Spain for failure to notify measures in respect of Directive 91/674/EEC (annual and consolidated accounts of insurance undertakings); 44 - - - its turning to banking, the Commission sent two reasoned opinions to implementing Directives legislation Germany because 92/121/EEC (large exposures of credit institutions) and 92/30/EEC (consolidated supervision) did not come into effect until 31 December 1995, i. e. respectively two and three months after the deadline for transposai; although most Member States have already notified national measures implementing Directives 92/49/EEC and 92/96/EEC (third non-life and life assurance Directives), this does not mean that transposai or application is perfect. In several cases the national legislation is incomplete or incorrect. For example, in legislation which December 1995 Spain notified framework transposes only part of Directives 90/232/EEC, 91/371/EEC, 91/674/EEC, 90/618/EEC (vehicle insurance), 90/619/EEC (second life assurance Directive), 92/49/EEC and 92/96/EEC. Consequently, none of the infringement proceedings in motion against Spain has been terminated; finally, the Commission terminated cases against various Member States for failure to notify measures implementing the following Directives - 91/308/EEC on money laundering and 90/619/EEC (Ireland), 91/371/EEC, 92/96/EEC and 92/49/EEC (Belgium), 92/96/EEC and 92/49/EEC (Italy, Luxembourg and Ireland), 91/674/EEC and 91/308/EEC and 92/30/EEC (Greece). (Denmark, Luxembourg and Germany) The Court has not yet given judgment in the action brought by the Commission against Italy concerning financial intermediaries/33* the SIM Act on In a judgment given on 14 November 1995, the Court found that the Luxembourg legislation whereby interest subsidies on building loans are available only if the loan is given by a credit establishment accredited in Luxembourg was incompatible with Community law. (34) Greece was condemned by the Court for failing to transpose Directives 90/618/EEC, 90/619/EEC and 88/357/EEC (2nd non-life insurance Directive). (35) Spain has still not implemented judgments given by the Court in 1994 for failure to transpose Directives 90/618/EEC, 90/619/EEC and 90/232/EEC. Finally, on 10 May 1995 the Court gave a preliminary ruling in an action between a Dutch firm and the Netherlands. The Court held that national (33) (34) (35) See 10th, 11th and 12th Reports. Case C-484/93, see 12th Report (1994). Joined Cases C-l 09/94, C-209/94 and C-225/94 Gudgment given on 29 June 1995). 45 legislation prohibiting the practice of cold calling in order to protect the confidence of investors in the national market was not incompatible with Article 59 of the Treaty. (36) Cases before the Court The Commission submitted its comments in connection with two requests for preliminary rulings. The first case (C-238/94) concerns the application of Directive 92/49/EEC to insurance incorporated in a legal social security scheme. The second (C-222/95) concerns a Member State's right, before the entry into force of the second banking Directive (89/646/EEC), to require a Community credit establishment already accredited in its country of origin to obtain further accreditation in order to enjoy the freedom to provide services on its territory. Progress in implementing directives applicable to financial 2. 2. 4. 5. services MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 12. 1995 43 43 43 43 43 43 43 43 43 43 43 43 43 43 43 Directives for which measures have been notified 39 40 40 33 34 40 • 40 38 40 41 39 41 40 39 41 % 90 93 93 16 SO 93 93 88 93 95 90 95 93 90 95 Note: this table concerns Directives 64/225, 72/166, 73/183, 73/239, 77/92, 77/780, 78/473, 79/267, 79/279, 80/390, 82/121, 84/5, 84/641, 85/611, 86/635, 87/343, 87/344, 87/345, 88/220, 88/357, 88/627, 89/117, 89/298, 89/299, 89/592, 89/646, 89/647, 90/211, 90/232, 90/618, 90/619, 91/308, 91/371, 91/633, 91/674, 92/30, 92/49, 92/96, 92/121, 93/6, 93/22, 94/7, 94/19. (36) Case C-389/93 [1995] ECR 1-1141, see 12th Report (1994). 46 2. 2. 5. Free movement of capital Commission monitoring of the situation regarding the movement of capital within the Union showed that the situation in this area is basically satisfactory. Community law has been transposed by all Member States and transitional derogations have lapsed. There is evidence that economic agents are taking advantage of the elimination of restrictions on the movement of capital and the increasing openness of Member States' financial markets. Cross-border flows of capital within the Union as well as capital flows vis-à-vis non-member countries have risen considerably in recent years. While the basic legislative texts have been in place for quite some time, there remain a number of impediments to the free movement of capital. Although, in most cases, they do not take the form of outright restrictions, their impact on effective capital mobility and financial integration may be important. Such impediments can take the form of conditions for the admission of securities to domestic capital markets, constraints on investment, provisions in privatization laws designed to maintain control over privatized companies and constraints on investment abroad by institutional investors which are not justified by prudential rules. Action has been taken by the Commission to eliminate such impediments both by consulting with the Member States concerned and, where necessary, by sending letters of formal notice to national authorities. Where no remedial action was taken, the Commission has proceeded to the next stage of infringement proceedings, the reasoned opinion. Reasoned opinions have been addressed to the following Member States: Germany, concerning the prohibition on acquisition of Federal savings bonds by foreigners, Italy, concerning the prohibition on the physical export of means of payment above LIT 20 million, Portugal, concerning restrictions on the participation of foreigners in privatized companies and Spain, concerning authorization requirements for the physical export of means of payment for amounts exceeding PTA 5 million. The Treaty on European Union introduced a new regime regarding capital movements and payments. With effect from 1 January 1994, Articles 73b to 73g of the new Treaty (Chapter 4 - Capital and Payments) replaced Articles 67 to 73. The freedom of capital and payments is now a directly applicable right and secondary legislation is no longer necessary. The new regime also extends the obligation to liberalize to non-member countries, with limited exceptions. 47 This year the Court of Justice gave the following rulings directly concerning capital movements: - Bordessa and Mellado (Joined Cases 358/93 and 416/93, judgment given on 23 November 1995) The Court ruled that an authorization requirement for the export of means of payment would cause the exercise of the free movement of capital to be subject to the discretion of the administrative authorities and thus render that freedom illusory. It might therefore have the effect of impeding capital movements carried out in accordance with Community law. In contrast, a declaration requirement would allow national authorities to exercise effective supervision in order to prevent infringements of their laws and regulations without impeding the free movement of capital; - Sanz de Lera, Diaz Jimenez, Kapanoglu (Joined Cases 163/94, 165/94 and 250/94, judgment given on 14 December 1995) In line with its ruling in Bordessa, the Court stipulated that authorization requirements for the export of means of payment to non-member countries are incompatible with the provisions of the Treaty on the free movement of capital. The ruling also confirmed the direct applicability of Treaty provisions on capital and payments; - Svensson (Case C-484/93, judgment given on 14 November 1995) The Court held that provisions implying that a bank must be established in a Member State in order for recipients of loans residing in its territory to obtain an interest-rate subsidy from the State out of public funds are liable to dissuade those concerned from approaching banks established in another Member State, and therefore constitute an obstacle to the movement of capital such as bank loans. They are also incompatible with Treaty articles on freedom to provide services. Article 104 (monetary financing) Article 104 of the Treaty deals with the prohibition of direct central bank financing to the public sector. Overdraft facilities or any other type of credit facility with central banks in favour of Community institutions or Member States' authorities and other bodies governed by public law are prohibited, as is the direct purchasing of debt instruments from these authorities. Council Regulation (EC) No 3603/93, which entered into force at the beginning of Stage II of EMU (1 January 1994), further specifies the content of Article 104. It states, inter alia, that stocks of debt existing on 31 December 1993 with a fixed maturity may be carried over and that central banks can purchase government debt instruments on the secondary 48 market. Furthermore, it provides for limited exemptions for certain practices implying central bank financing such as intra-day credit, collection of cheques issued by third parties to the public sector's account, the holding of a limited amount of coins, or credits in the fulfilment of international monetary obligations. Concerning the implementation of these provisions, due to the short time between the entry into force of the Treaty on European Union in November 1993 and the beginning of Stage II of EMU in January 1994, some Member States had not adjusted their legislation at the beginning of Stage II. In the meantime, however, the Member States have complied with Article 104 and Regulation (EC) No 3603/93, except for some minor technical adjustments still pending. Article 104a (privileged access) Article 104a concerns the prohibition on privileged access of the public sector to financial institutions. Privileged access is the availability of funds from financial institutions to the public sector at conditions not available in a free market. The purpose of prohibiting it is to submit the public sector in its borrowing behaviour to the same constraints as the private sector. Council Regulation (EC) No 3604/93 specifying the definitions for the application of the prohibition entered into force on 1 January 1994. Terms specified therein include privileged access, public-sector prudential considerations and financial institutions. Privileged access to financial institutions goes beyond the simple obligation to acquire or hold public-sector liabilities. Indirect measures such as tax or financial advantages targeted at financial institutions and not compatible with the principles of a market economy are also forbidden. At present, there are no particular cases of non-compliance pending. 2. 2. 6. Company law Apart from the cases listed below where no measures have been notified, and a few problems with incorrect -implementation, the seriousness of which has still to be determined, no particular difficulties have arisen in the transposai of directives in this field. The Commission has brought an action against Germany for incorrect application of Directives 68/151/EEC (companies register) and 78/660/EEC (annual accounts). 'About 90% of German private limited companies are refusing to publish their accounts by depositing them with the companies register, as required by the Directives and the German legislation transposing them. The Commission has commenced another action in the Court against Germany for failure to notify national measures implementing Directive 49 90/605/EEC (amending the scope of the Directives on annual accounts and consolidated accounts). Reasoned opinions were sent to Greece, Ireland, Portugal and Luxembourg for failure to notify national measures implementing Directive 92/101/EEC (amending Directive 77/91/EEC on the capital of public limited liability companies). Progress in implementing directives applicable to company 2. 2. 6. 1. law MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 12. 1995 12 12 n 12 \2 12 12 12 \2 Y2 12 12 12 12 12 Directives for which measures have been notified 12 12 11 11 12 12 11 11 - 11 12 1 11 1 11' 12 % 100 1ÔÔ 92 92 100 100 92 100 92 100 8 92 8 100 10Ô Note: this table concerns Directives. 68/151, 77/091, 78/660, 78/855, 82/891, 83/349, 84/253, 89/666, 89/667, 90/604, 90/605; 92/101. Directive 82/891/EEC does not apply. 2. 2. 7. Intellectual and industrial property Only one directive has been adopted in this field - Directive 89/104/EEC on trade marks. Under its provisions the registration of a trade mark confers on its owner exclusive rights allowing him to prohibit its use for commercial purposes by a third party without his consent. The harmonization of Member States' legislation on national t±ade marks is not comprehensive, but confined to certain aspects which have a direct impact on the functioning of the internal market. Outside these harmonized fields, to lay down arrangements best suited to their traditions. the Member States retain complete freedom 50 The scope of harmonization is defined by the Directive as follows: Registered trade marks only: arrangements for protecting trade marks resulting from usage are left up to the Member States. All categories of registered trade marks recognized by national legislation: trade marks in respect of products or services, individual trade marks, collective marks and guarantee or certification marks. This does not mean that the Member States are required to introduce these various categories of trade marks into their legislation. Trade marks which have been registered under international arrangements but have effect in the Member States. The Directive covers only substantive law on registered trade marks; none of its provisions is aimed at harmonizing procedures. The deadline for transposai was initially 28 December 1991, but was extended until 31 December 1992. Ten Member States, including Austria, Finland and Sweden, have transposed the Directive. The Spanish authorities notified the Commission of transposai even before the Directive had been adopted. Despite the relatively generous deadline, four Member States have still not notified national implementing measures: Belgium, Luxembourg, Ireland infringement and the Netherlands. The Commission proceedings accordingly. is pursuing There are other serious problems with the Benelux countries: the "uniform Benelux legislation" does not establish the principle of "confusion", a vital prerequisite for commencing an action for infringement if a similar trade mark is used on the market. Copyright and related rights In November 1995 Greece enacted legislation to comply with Community law in response to infringement proceedings for incorrect transposai of Directive 87/54/EEC on the legal protection of topographies of semiconductors. Luxembourg has remedied its failure to adopt measures implementing Directive 91/250/EEC on the legal protection of computer programs. All the Member States have now transposed the Directive. Directive 92/100/EEC (lending right and certain rights related to copyright in the intellectual property field) requires Member States to give effect to its provisions by 1 July 1994. However, Ireland, Luxembourg, the Netherlands, Portugal and the United Kingdom have yet to incorporate it into national law. Consequently, the Commission has commenced infringement proceedings against all five States. 51 The deadline for transposing Directive 93/83/EEC (coordination of certain rules on copyright and related rights applicable to satellite broadcasting and cable retransmission) expired on 1 January 1995. Only Belgium, Denmark, Spain, Finland and Sweden have adopted the requisite measures; the Commission has sent Article 169 letters to the other Member States. Directive 93/98/EEC on the term of protection of copyright and certain related rights requires the Member States to give effect to its provisions by 1 July 1995. Implementing measures have been adopted in Belgium, Denmark, Germany, Spain, Greece, Ireland, Finland and Sweden. The Commission has taken appropriate action against the other Member States. Progress 2. 2. 7. 1. intellectual and industrial property in implementing directives applicable to MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 12. 1995 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 Directives for which measures have been notified 5 6 5 5 6 4 3 4 2 2 4 3 6 6 3 % 83 iôô S3 83 iôô 67 50 61 33 33 61 50 iôô 100 5ô Note: this table concerns Directives 87/54, 89/104, 91/250, 92/100, 93/83, 93/98. 2. 2. 8. Public procurement Now that the new consolidated directives in 1994 (Directives 93/36/EEC (supplies), 93/37/EEC (excluded service sectors(37)) are in force, it should be much easier for the Commission to monitoring their application, to which it will pay the fullest attention. (works) and 93/38/EEC (37) Water, gas and electricity. 52 Twelve Member States failed to meet the deadlines of 14 June and 1 July 1994 respectively for the transposai of Directives 93/36/EEC and 93/38/EEC (in the latter case Greece, Portugal and Spain were allowed longer periods, as for Directive 90/531/EEC). There are also serious delays in the implementation of some older directives, in particular 92/50/EEC (services) and 92/13/EEC (review procedures in excluded sectors). The Commission handled 26 infringement cases concerning failure to notify national implementing measures. Scrutiny of measures which were notified revealed 14 new infringement cases for incorrect transposai, bringing the total number of cases pending in this category to 30. Some of these cases involve questions of principle which could undermine the liberalization of public contracts awarded in the Member States concerned. The situation regarding Directive 92/50/EEC is frankly alarming: five Member States (Belgium, Germany, Greece, France and Austria) have failed to notify national implementing measures and there is little prospect of them adopting legislation in the near future. The Commission pursued its scrutiny of measures relating to earlier directives (Directives 89/440/EEC (works) and 88/295/EEC (supplies), both of which have been amended): on 11 August 1995 the Court of Justice gave judgment in an action brought by the Commission against Germany (Case C-433/93). It also stepped up its monitoring of the practical application by the various awarding authorities in each Member State and continued its work of processing complaints and cases detected by its own investigations relating to suspected infringements of directives and Treaty articles on public procurement. These have increased by 50% in a year, no doubt because the application of the directives is gradually being extended and the most recent ones have just entered into force. Of the 238 cases processed this year (including 97 new cases), the Commission was able to settle 38 without having to let infringement proceedings run their full course. To this end, procedures have been established for dialogue and consultation (in particular through package meetings),(38) whereby Member States are offered any legal and technical assistance they require and agreement can be sought on possible solutions to outstanding disputes which conform to Community law. A few of these cases deserve special mention: In one Member State two local authorities had issued contract transport notices concerning systems, specifying that contractors must be members of the national transport organization and that its employees must have a introduction of specialized the (38) See also Section 2. 2. 1. 1. 53 level of training corresponding to the requirements laid down by that organization. These two requirements are contrary to Article 59 of the Treaty and Directive 92/50/EEC, as they reserve contracts for national firms. They were abolished by a notice published by the Commission in the Official Journal. Under the legislation of another Member State, contractors were required to accept a reduction in remuneration during the performance of a contract or face the prospect of termination of the contract or exclusion from other contracts. The legislation also provided that in future all public contracts would be subject to maximum reference prices. Since these measures would breach the general principles of proportionality, legitimate expectations and the public non-discrimination and various provisions of procurement directives, the Commission took the matter up with the national authorities, which agreed to suspend the application of the disputed rules and later repealed them and replaced them with new arrangements consistent with Community law. In a third Member State a public hospital had launched an invitation to tender for the supply of oil. At the award stage it rejected the tender of one supplier on the grounds that he had not submitted certificates concerning the manufacturers from whom supplies were obtained. Although there was no breach of Article 30 in this case, as the firm supplying the supplier was established in the State of the awarding authority, the rejection of the tender at the appraisal stage contravened the distinction drawn by the directives between the different stages in the procedure for awarding contracts (selection and award stages). After being contacted by the Commission, the national authorities undertook to adopt appropriate general measures to ensure that the problem does not recur in future. Four important cases decided by the Court of Justice are outlined below: Commission v Netherlands ,(39) On the question of the admissibility of the Commission's action, the Court ruled for the first time on the possible effect of the procedure provided for in Article 3 of Directive 89/665/EEC (review procedures) on the application of Article 169 of the Treaty. It held that the special procedure under Directive 89/665/EEC is a preventive measure which can neither derogate from nor replace the Commission's powers under Article 169 of the Treaty. That Article gives the Commission discretionary power to bring an action before the Court where it considers that a Member State has failed to fulfil one of its obligations under the Treaty and that the State concerned has not complied with the Commission's reasoned opinion (paragraph 13 of the grounds). (39) Judgment given pn 24 January 1995. 54 As regards the substance of the case, the Court held that the contract notice must contain information on the opening of tenders and on the persons authorized to attend that opening, as such information enables potential suppliers to discover the identity of their competitors and check whether they meet the selection criteria (paragraph 20 of the grounds). Referring to previous judgments, it also stated that failure to add the words "or equivalent" after a technical specification defined by reference to a particular trade mark constituted a breach of the supplies Directive and of Article 30 of the Treaty. Framework agreement for (Commission v Greece)m the supply of dressing material As regards the admissibility of the action, the Court held that the Commission had not breached the principle of equal treatment and noted that, in any event, if the Commission were always bound to satisfy itself with mere undertakings by the Member States to abide by Community law in future, this would provide the Member States with an easy way of protecting themselves against proceedings under Article 169 of the Treaty (paragraph 10 of the grounds). The Court also reiterated that Directive 89/665/EEC could neither derogate from nor replace the Commission's powers under Article 169 (paragraph 11 of the grounds). With regard to the substance of the case, the Court rejected the interpretation according to which a framework agreement concluded with six different firms is no more than a structure within which the value of each contract must be taken into account separately with a view to the application of the Directive (paragraphs 13 and 14 of the grounds). It held that the framework contract turned into a whole the various contracts which it governs and that the total value of those contracts must be taken into account (paragraph 15). Finally, the Court stressed that even if it were proven that only the six producers party to the framework agreement could supply the products in question, this fact would not constitute one of the circumstances which, under the Directive, allows the use of a negotiated procedure before advance publication of a notice. Public works contracts (Commission v. Italy)(*l) The Court was asked to assess the legitimacy of awarding by direct agreement a public contract for the construction of two sections of a road, much of which had already been completed. Confirming its strict interpretation of the provisions authorizing derogations from the rules intended to ensure that the rights conferred by the Treaty are effectively applied in public procurement, the Court held that to justify the use of a (40) (41) Judgment given on 4 May 1995. Judgment given on 18 May 1995. 55 direct agreement, the awarding authority would have to prove not only the existence of "technical reasons", interpreted in a restrictive manner, but also that these technical reasons made it absolutely essential that the contract be awarded to the firm chosen. Public works and supply contracts (Commission v Germany)i42) When the deadline laid down in the reasoned opinion expired, Directives 89/440/EEC (coordination of procedures for the award of public works contracts) and 88/295/EEC (public supply contracts) had been incorporated by the German authorities only into admimstrative instructions. The Court maintained its position in earlier judgments on directives: clear and precise provisions of directives have the effect of creating rights for individuals, who may rely on them before the national courts. Progress in implementing directives applicable to public 2. 2. 8. 1. procurement MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 12. 1995 11 11 11 8 (3 derogations) 9 (2 derogations) 11 11 11 11 11 11 8 (3 derogations) 11 11 11 Directives for which measures have been notified 6 11 8 5 7 8 11 10 11 11 7 8 11 11 10 % 55 1ÔÔ 73 63 7S 73 iôô 9i iôô Iôô 64 IÔÔ iôô iôô 91 Note: this table concerns Directives 71/305, 89/440 (consolidated by Directive 93/37/EEC), 77/62, 80/767, 88/295; 89/665, 90/531, 92/13, 92/50, 93/36 and 93/38. (42) Judgment given on 11 August 1995. 56 2. 3. Removal of tax barriers 2. 3. 1. Direct taxation terminated The Commission infringement proceedings against Luxembourg regarding the absence of tax relief for insurance premiums paid to foreign insurers. Like Germany,(43) Luxembourg has now extended the relief provisions to insurers from other countries. the After receiving numerous complaints, the Commission looked into the taxing of second homes in Spain. Although Spain was exercising its sovereign right to collect taxes under its own fiscal policy, the Commission succeeded in persuading the Spanish authorities to abolish the requirement in respect of tax representatives and to simplify tax returns. The various cases of discrimination against non-residents detected by the Commission in German tax legislation were nearly all settled by the annual Tax Act for 1996, which included amendments to take into account the judgment of the Court of Justice in Schumacker (Case C-279/93) and, in particular, to non-residents. Nevertheless, the Commission regrets that it had to wait for the Court's decision and that its own reasoned opinions had no effect. Infringement proceedings are continuing in another case where Germany appears to discriminate in its application of a disabled child allowance. the "splitting" system to extend In the field of company taxation, the Commission has examined the compatibility of national measures with the tax Directives 90/434/EEC (mergers) and 90/43 5/EEC (parent companies and subsidiaries), drawing on a study conducted by the International Bureau of Fiscal Documentation in Amsterdam. The Commission has submitted an interpretation of Article 3(2) of Directive 90/43 5/EEC - period during which holdings must be maintained by parent companies before subsidiaries may claim favourable treatment under the Directive - in three cases referred to the Court of Justice for a preliminary ruling under Article 177 of the Treaty: Cases C-283/94 Denkavit, C-291/94 VITIC and C-292/94 Voormeer. (43) See 12th Report (1994). 57 2. 3. 1. 1. taxation Progress in implementing directives applicable to direct MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 12. 1995 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 Directives for which measures have been notified 4 4 4 3 4 4 4 4 4 4 4 4 3 4 4 % 100 1ÔÔ 1ÔÔ 75 1Ô0 iôô Iôô IÔÔ Iôô 100 iôô 100 75 100 Iôô Note: this table concerns Directives 69/335, 77/799, 90/434, 90/435. 2. 3. 2. Indirect taxation A rticles 95 and 96 of the Treaty Italy was sent a reasoned opinion following the confiscation of a vehicle which had been imported into and used in Italy in 1992 in breach of the rules on the temporary import of vehicles from other Member States. Since such a penalty is disproportionate and has no equivalent within the country, it must be regarded as contrary to Article 95 of the EC Treaty, in accordance with the case law of the Court of Justice. (44) The Commission has brought an action before the Court against Greece concerning legislation on second-hand cars, several aspects of which (calculation of base for consumption tax, registration tax, failure to apply anti-pollution incentives) favour the domestic market to the detriment of vehicles imported from other Member States. (45) (44) (45) Case C-299/86 Rainer DrexI (judgment given on 25 February 1988) and Case C-276/91 Commission v France (judgment given on 2 August 1993). Case C-375/95. 58 Value-added tax Infringement proceedings have been commenced against Portugal for failure to notify national measures implementing Directive 94/5/EC on the special VAT arrangements applicable to second-hand goods, works of art, collectors' items and antiques. initiated against Italy, Portugal, Proceedings have also been the Netherlands, Luxembourg, Belgium and France concerning the transposai of Directive 94/76/EC introducing transitional measures applicable to VAT in the European Union on 1 January 1995. the enlargement of the context of Six reasoned opinions were sent this year: - - - - - to Greece, for levying VAT on the amount of consumption tax paid by individuals purchasing a second-hand vehicle in another Member State and for extending to sea fishermen the flat-rate farmers scheme which, in principle, is applicable only to freshwater fishermen; to Italy, for totally excluding the right to deduct VAT in the event of the purchase of a building by a taxpayer together with a non- taxpayer: under the 6th Directive, VAT should be deducted on goods used for taxable transactions, which in this case implies a prior calculation of the proportion of the goods actually assigned to a taxable activity; to the Netherlands, for continuing to exempt deliveries of industrial waste from VAT, although they have not been exempt since 1 January 1990; to Spain, for introducing a 15% value threshold above which the service of assembling goods is included in the base for calculating tax on deliveries and below which the two transactions are taxed separately. In trade between Member States such a system could result in goods being taxed twice or not at all; to Portugal, for limiting the benefit of tax remissions on travellers' exports in the case of certain categories of highly-taxed or valuable goods, and imposing a special model tax return instead of a purchase invoice. The Commission commenced actions in the Court of Justice against: - Italy, for a provision which fails to exempt from VAT the transfer of goods intended solely for the exercise of an exempted activity or excluded from the right to deduction (Case C-45/95); 59 - Spain, for failing to observe the maximum six month time-limit for the refund of VAT to foreign taxpayers laid down in the 8th VAT Directive (Case C-l6/95). The Commission commenced infringement proceedings under Article 171 of the Treaty against France for failing to implement the Court's judgment of 17 November 1993 concerning VAT on certain advertising services (Case C-68/92). Several infringement proceedings were terminated during the year: - - - - Portugal abolished its increased rate of VAT, which was contrary to the 6th Directive, and ended the requirement that taxpayers not established in the country must use a special model VAT return; Italy adopted appropriate measures to comply with the 8th VAT Directive on refunds to foreign taxpayers and with the Court's judgment of 3 June 1992 (Case C-287/91); Greece abolished VAT on the import of second-hand vehicles from other Member States; complied with Luxembourg of 17 November 1993 concerning VAT on certain advertising services (Case C-69/92). the Court's judgment Excise duties The Commission has commenced proceedings against the United Kingdom, Portugal, Luxembourg, Italy, Ireland, France, Spain, Greece, Germany, Belgium and Denmark for failure to notify measures transposing Directive 94/74/EC on the harmonization of the structures of excise duties on mineral oils. 60 Progress in implementing directives applicable to indirect 2. 3. 2. 1. taxation MEMBER STATE BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM Directives applicable on 31. 12. 1995 37 37 38 37 37 37 37 37 37 37 38 37 37 37 37 Directives for which measures have been notified 35 36 37 36 36 35 36 35 35 36 38 34 37 37 37 % 94. 6 97. 3 97. 4 97. 3 97. 3 94. 6 97. 3 94. 6 94. 6 97. 3 100 91. 9 100 iôô Iôô Note: this table concerns Directives 67/227, 69/169, 77/388, 78/1035, 79/1070, 79/1071, 79/1072, 80/368, 83/181, 83/182, 83/183, 84/386, 85/346, 85/576, 86/560, 88/331, 88/664, 89/219, 89/220, 89/465, 89/604, 91/680, 92/12, 92/77, 92/79, 92/80, 92/81, 92/82, 92/83, 92/84, 92/108, 92/111, 94/4, 94/5, 94/74, 94/75, 94/76, 95/59. 61 CONSUMER PROTECTION 1. INTRODUCTION The rate of progress in notifying measures transposing directives in this field is much the same as last year. Some Member States have improved their record (Denmark, Greece, Spain, Ireland and the Netherlands), but the situation has deteriorated in others (Belgium and Portugal). It is especially important that consumer protection directives be transposed quickly and correctly, since failure to do so may compromise the interests of European consumers. It is worth making a few general comments on the way Member States go about transposing directives. Most of them do not adopt national implementing measures until after the transposai deadline has expired. The most recent Directives - 93/13/EEC, 93/35/EEC, 93/47/EEC, 93/73/EEC and 94/32/EEC - are typical examples. Infringement proceedings very often involve half of the Member States. National implementing measures are notified only in response to the reasoned opinion. 2. SITUATION SECTOR BY SECTOR 2. 1. Cosmetics There are still several infringement proceedings in hand as regards the basic Directive (76/768/EEC). France has still not amended its legislation transposing the Directive, although the Court of Justice gave judgment against it in May 1993 and an Article 171 warning letter was sent in 1995. the recent Directives Many Member States are behindhand with 93/35/EEC, 93/73/EEC and 94/32/EEC. This is all the more difficult to understand as the cosmetics directives are primarily technical in nature, little room for manoeuvre. leaving the Member States relatively Consequently, there ought not to be any particular problems with transposai. 2. 2. Textiles The situation regarding the textiles directives is satisfactory. This is borne out by the infrequency of complaints received by the Commission. 2. 3. Health and safety With regard specifically to Directive 92/59/EEC (general product safety), for which the deadline for transposai was 29 June 1994, five Member States have yet to notify their national implementing measures and infringement proceedings are accordingly in motion. This is a particularly important Directive, as it establishes a general requirement in Community 62 law as to the safety of all products marketed for actual or potential consumer use in the Community. It consequently offers an excellent illustration of the way in which failure to transpose in several Member States can jeopardize the consumer's fundamental interest in preserving his health and safety. 2. 4. Protection of economic interests In Joined Cases C-l78/94, C-l79/94 and C-l88 to 190/94 concerning Directive 90/314/EEC (package tours), currently before the Court of Justice, the question has been put for the first time whether failure to transpose a consumer protection directive within the time allowed justifies application of the rule laid down by the Court in Francovich. ^ The rule is that in certain circumstances a Member State may be under an obligation to compensate for damage sustained by an individual as a result of the failure to transpose. (46) Joined Cases C-6/90 and C-9/90 [1991] ECR 1-5357, judgment given on 19 November 1991. 63 2. 5. Progress in implementing directives applicable to consumer protection and product safety MEMBER STATE Directives applicable on 31. 12. 1995 Directives for which measures have been notified BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM 52 52 52 52 52 52 52 52 52 52 52 52 52 52 52 46 50 46 45 46 46 44 45 47 49 47 44 48 49 48 % 88 96 88 86 88 88 85 86 90 94 90 85 92 94 92 Note: This table concerns the following Directives: Cosmetics. 76/768, 80/1335, 82/147, 82/368, 82/434, 83/191, 83/341, 83/496, 83/514, 83/574, 84/415, 85/391, 85/490, 86/179, 86/199, 87/137, 87/143, 88/233, 88/667, 89/174, 90/121, 90/207, 91/184, 92/8, 92/86, 93/35, 93/47, 93/73, 94/32, 95/17, 95/34. Textiles: 71/307, 72/276, 73/44, 79/76, 81/75, 83/623, 87/140, 87/184. Protection of economic interests: 79/581, 84/450, 85/577, 87/102, 88/314, 88/315, 90/88, 90/314, 93/13, 94/47. Safety and health: 87/357, 88/378, 92/59. 64 COMPETITION 1. INTRODUCTION The number of infringement proceedings commenced against Member States was appreciably higher than in 1994. They mainly concerned: - - - telecommunications; airport transit assistance; access to port infrastructures. On 18 October the Commission, in the absence of a response from the Italian authorities to the reasoned opinion issued in 1994 in the customs agents case, decided to refer the case to the Court of Justice(47). 2. SITUATION SECTOR BY SECTOR 2. 1. Public enterprises Greece and Italy notified measures transposing Directive 90/388/EEC on competition in the markets for telecommunications services. All the Member States have notified measures transposing Directive 94/46/CE on satellite communications. But six of the notifications were incomplete. On 27 October the Commission accordingly issued Article 169 letters for failure to notify national implementing measures. Belgium and Greece have not yet transposed Directive 93/84/EEC, amending Directive 80/723/EEC on the transparency of financial relations between Member States and public undertakings. If the Commission's approaches to these two Member States fail to produce a satisfactory solution, it reserves the right to refer the cases to the Court of Justice. Individual cases In the telecommunications field, all the Member States except Luxembourg have designated at least two GSM mobile telephone operators. But when licensing a second operator, some Member States imposed heavier burdens than on the initial public-sector operator. The Commission accordingly made representations to the Belgian, Irish and Italian authorities. Ireland and Belgium then agreed to impose the same licence fee as for the public- sector operator. But in the absence of a satisfactory commitment by the the Commission adopted a Decision under Italian authorities, (47) 12th Report. 65 Article 90(3) EC, on 4 October, requiring them to take measures restoring the equilibrium between the private- and public-sector operators. In the transport field, the Genoa port case deserves attention. On 10 December 1991,(48) the Court of Justice held(49) that the Italian ports legislation was incompatible with Community law. It gave the Compagnia Unica Lavoratori Merci Varie del Porto di Genova (CULMV) a monopoly on port services at Genoa, which enabled it to demand payment for services not required, to charge excessive prices, and to refuse to use modern technologies. Italy has since ended the legal monopoly by reforming its ports legislation. But CULMV has been able to preserve its monopoly position in practice thanks to the collusion of the Port Authority, which refused to issue the necessary operating licences to its potential competitors. Acting on a complaint from one potential competitor, the Commission declared that the refusal to issue the requisite licence was unwarranted and was tantamount to preserving a situation condemned by the Court. It consequently put the Italian State on notice to issue the licence. The State acted in accordance with the Article 169 letter within ten days and CULMV lost the monopoly it had effectively held since 1340. A second enterprise is now operating port services in Genoa in competition with CULMV. There was another noteworthy case in the same area, concerning the system of discounts on landing charges at Brussels National airport at Zaventem. Discounts of up to 30% were available to airlines paying more than BFR 5 million monthly. British Midland filed a complaint about the system, which dated from a Royal Decree of 22 December 1989. It argued that the threshold for eligibility was so high that only the national airline based in Brussels qualified for the discount, which worked to the detriment of other Community airlines. The Commission considered that the system constitutes a State aid contrary to Article 90(1) of the Treaty, read with Article 86. On 28 June, it adopted an Article 90(3) Decision requiring the Belgian authorities to end the discount system. The Belgian authorities have not yet complied with the Decision and Article 169 proceedings are in motion. Lastly, the Commission commenced proceedings in respelt of the grant of exclusive television advertising rights to a private-sector broadcasting company, the "* Vlaamse Televisie Maatschappij' (VTM), which gave it favourable treatment in comparison with broadcasters in other Member States contrary to Article 90(1) read with Article 59 of the Treaty. (48) (49) Case C-l79/90 Merci Convenzionali Porto di Genova SpA v Siderurgica Gabrielli SpA [1991] ECR 1-5889. On 10 December 1991, ECR 1-5889. 66 2. 2. Monopolies Proceedings commenced in the Court of Justice in 1994 are still in motion against Ireland, the Netherlands, Italy, France and Spain concerning monopolies on the import of gas and electricity. (50) 2. 3. Progress in implementing directives applicable to competition MEMBER STATE Directives applicable on 31. 12. 1995 Directives for which measures have been notified BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS PORTUGAL AUSTRIA FINLAND SWEDEN UNITED KINGDOM 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 4 5 5 3 4 5 4 4 5 5 4 5 5 5 5 % 80 100 100 60 80 100 80 80 100 100 80 100 100 100 100 Note: this table concerns Directives 80/723, 88/301, 90/388, 93/84, 94/46. (50) Cases C-156/94, C-157/94, C-158/94, C-159/94 and C-160/94 respectively. 67 EMPLOYMENT AND SOCIAL POLICY 1. INTRODUCTION On 12 April 1995, the Commission adopted its medium-term social action programme (COM(95) 314 final). Building on the achievements of the 1989 social action programme, this document sets out the Commission's detailed work programme in the field of social policy for the period from 1995 to 1997. It is the third and the final phase in a process which started in 1993, with the launch of the Green Paper on the future of social policy, and continued in 1994 with the White Paper on European social policy. (51) The emphasis placed in the White Paper on social policy on the need to improve the level of application of Community law in the social field met with widespread support. At its meeting on 27 March 1995, the Council affirmed its commitment to improve the situation in this regard. The Commission has clearly stated in the medium-term social action programme that it will ensure that Community social legislation is properly and fairly transposed. Action will also be taken to review legislation in this field regularly so as to improve its efficiency and transparency. 2. SITUATION SECTOR BY SECTOR 2. 1. Equal treatment of men and women Infringement proceedings for failure to notify national measures implementing Directive 92/85/EC (protection of pregnant workers and workers who have recently given birth or are breast-feeding) were commenced against seven Member States (Belgium, Germany, Greece, France, Italy, Luxembourg and Portugal). Portugal subsequently notified its transposai measure. The Commission addressed reasoned opinions to three Member States (Belgium, France and Italy) for maintaining national legislation imposing restrictions on night work by women that were incompatible with Directive 76/207/EEC. On 16 May 1995 the Commission responded to the judgments given on 28 September 1994 interpreting the Barber judgment - as regards its effects in time - and Article 119 of the Treaty by presenting a new proposal for a directive amending Directive 86/378/EEC on equal treatment for men and women in occupational social security schemes (COM(95) 186 final). The purpose of this proposal is purely declaratory, since the Member States are already required to take the measures needed to comply with Article 119 of the Treaty as interpreted by the Court of Justice. (51) COM(94) 333, 27 June 1994. 68 The Commission is planning to remind the Governments of all the Member States of their obligations under that Article with a request for notification of the requisite measures within two months. As a consequence, the infringement proceedings for failure to notify national measures implementing Directive 86/378/EEC commenced against six Member States (Belgium, Denmark, Greece, Italy, Luxembourg and Netherlands), which were suspended pending the judgments given on 28 September 1994, have now lapsed. In 1995 the Court gave preliminary rulings in two cases concerning Directive 76/207/EEC on the implementation of the principle of equal treatment for men and women as regards access to employment, vocational training and promotion, and working conditions. In Meyers (Case C-l 16/94, judgment given on 13 July), the Court ruled that a benefit with the characteristics and purpose of family credit (an income-related benefit awarded to supplement the income of low-paid workers who are responsible for a child) falls within the scope of Directive 76/207/EEC. In Kalanke (Case C-450/93, judgment given on 17 October), the Court held that Articles 2(1) and (4) of Directive 76/207/EEC preclude national rules which, where candidates of different sexes shortlisted for promotion are equally qualified, automatically give priority to women in sectors where they are under-represented. (52) 2. 2. Working conditions Italy is the only Member State that has yet to notify measures to transpose Directive 91/533/EEC on the employer's obligation to inform employees of the conditions applicable to the employment contract or relationship. As for Directive 91/383/EEC on improvements on safety and health at work of workers with a fixed-duration or temporary employment relationship, four Member States (Belgium, Germany, Greece and Italy) have still to notify the Commission of their national implementing measures. 2. 3. Health and safety at work The Commission has received national implementing measures from several Member States which were late in transposing Directives 92/57/EEC on construction sites (Spain, Greece, Ireland, Portugal and United Kingdom), 92/58/EEC on safety Ireland, Luxembourg and Portugal), 92/91/EEC on drilling equipment (Denmark, (Greece, signs (52) See Commission communication on interpretation of the judgment (COM(96) 88 final) and proposal for a Directive amending Directive 76/207/EEC (COM(96) 93 final). 69 Greece and United Kingdom) and 92/104/EEC on mines (Denmark and United Kingdom). Greece notified measures transposing Directive 89/391/EEC (framework Directive) and the first five specific Directives. Belgium notified measures transposing Directive 89/656/EEC (personal protective equipment). 2. 4. Public health Luxembourg and the Netherlands met their obligation to transpose Directive 92/41/EEC on the labelling of tobacco products, and the infringement proceedings were accordingly terminated. 2. 5. Progress in implementing directvies applicable to employment and social policy MEMBER STATE Directives applicable on 31. 12. 1994 Directives for which measures have been notified BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG AUSTRIA NETHERLANDS PORTUGAL FINLAND SWEDEN UNITED KINGDOM 45 45 45 44 45 45 45 45 45 45 45 45 45 45 45 34 43 39 36 30 39 40 35 42 41 43 36 45 45 41 % 76 96 87 82 67 87 89 78 94 91 96 80 100 100 91 Note : this table concerns the following Directives: Labour law: 75/129, 77/187, 80/987, 91/383, 91/533, 92/56 Equal opportunities:'75/117. 76/207, 79/7, 86/378, 86/613, 92/85 Free movement of workers: 64/221, 68/360, 72/194 Safety and health at work: 78/610, 80/1107, 82/130, 82/605, 83/477, 86/188, 88/35, 88/364, 88/642, 89/391, 89/654, 89/655, 89/656, 90/269, 90/270, 90/394, 90/679, 91/269, 91/322, 91/382, 92/29, 92/57, 92/58, 92/91, 92/104, 93/88, 93/103 Public health: 89/622, 90/239, 92/41. 70 AGRICULTURE 1. INTRODUCTION In monitoring the application of agricultural rules, the Commission focused its attention on the Member State's implementation of production control mechanisms (particularly in the milk sector), their compliance with Community rules on the protection of descriptions of agricultural products, the end of government price- fixing at any stage covered by a market organization and observance of Community rules on quality standards. In its scrutiny of national measures implementing agricultural directives, the Commission pursued the infringement proceedings against France, Greece, Italy and Ireland, where there are substantial delays in transposai, notably of the internal market White Paper directives. 2. SITUATION SECTOR BY SECTOR 2. 1. Markets In addition to its efforts to eliminate barriers to freedom of movement, the Commission also sought to ensure that the other provisions of the Community's agricultural legislation are effectively and correctly applied. (a) In monitoring the application of specific market organization mechanisms, the Commission continued to keep a close watch on the use of production control mechanisms, particularly in the milk sector, where it conducted a systematic analysis of national measures to implement Regulations (EEC) Nos 3952/92 and 536/93. Infringement proceedings are continuing against France because of the discriminatory way in which it distributed the reference quantities released under the scheme for the cessation of milk production terms on which The is made are considered discriminatory because the quantities to be redistributed depend on the purchaser's cessation level. This practice has been condemned by the Court of Justice on two occasions. the redistribution Furthermore, under the Community rules the Member States are obliged to offset in 1990/91 by supplementary allocations. the linear reduction (2. 15%) occurring France failed to respect this obligation; although it gave producers the 2. 15% with one hand, it took away 2. 35% with the other. The following cases arose under the Community rules on the (b) description of agricultural products. 71 In the milk sector, proceedings are still in motion against the British authorities for an infringement of Regulation (EEC) No 1898/87 as regards the marketing of soya milk. Article 3 of that Regulation prohibits products other than milk or milk products from being described as "* milk' ; the criteria for the preservation of the designation on an exceptional basis were clearly not met in the case of A soya milk' and the product quite rightly did not appear on the list established by Commission Decision 88/566/EEC. In the spirits sector, the Commission continued its proceedings against France for allowing drinks containing a mixture of whisky and other spirits to be given a description containing the terms A whisky* and ^ spirit, e. g. ^ whisky spirif or ^ spirit of whisky in breach of Regulation (EEC) No 1576/89. Following the adoption of Regulation (EEC) No 2675/94, the sale description A spiritueux' or ^ boisson spiritueuse' must be distinguished from the alcoholic ingredients in a list preceded by the terms ** spiritueux issus d'un mélange' (mixed spirit drink). France has yet to take the necessary steps to implement this Regulation In 1995, the Commission again took steps to end the system of (c) minimum prices for olive residues imposed by Italy in breach of the market organization for oils and fats. The Court has consistently ruled that this market organization is comprehensive and does not permit any unilateral national measures. (d) The Commission also took steps to secure observance of Community rules on quality standards in the practical application of the rules governing the market organizations. It remains attentive to the need for the Italian authorities to adopt a truly deterrent scheme of penalties for the application of the provisions enacted to comply with the judgment given by the Court of Justice on 16 February 1987 in Case C-69/86 under Article 171 of the EEC Treaty, censuring Italy for failure to comply with the earlier judgment given on 15 November 1983 in Case C-322/82 for breach of the rules for the enforcement of quality standards in the fruit and vegetable sector. The 12th Annual Report announced that, in view of the winding-up (e) of the United Kingdom Milk Marketing Boards, 1994 should be the last year that problems of compatibility with Community legislation would occur. Although the Boards have been abolished as milk trading bodies, Residuary Boards have been set up with non-commercial objectives such as the recovery of debts due to the MMB and the distribution of assets. In the exercise of their functions these Boards have prompted new complaints from producers who sold skimmed milk outside the MMB scheme, which according to the judgment given by the Court of Justice in 72 Case C-40/92 must be regarded as contrary to the Community rules applicable to the Boards' operation. 2. 2. Harmonization Background There has been a slight drop in the number of infringement proceedings for failure to notify national measures implementing agricultural directives (down by eight). The situation has improved sharply as regards reasoned opinions (down to 26 in 1995 from 262 in 1994). These improvements in the situation have not been accompanied by a fell in the number of referrals to the Court, as the Commission was obliged to refer 57 cases of untransposed directives (34 in 1994). The transposai of the directives referred to the Court is very often technically complex, reqiiiring far-reaching amendments to national legislation or deep-seated reforms of existing structures. Situation in Member States As in past years, Denmark has the best transposai record. Spain and Luxembourg have made a great legislative effort and caught up most of their delays. The transposai of Directive 90/66 7/E EC (animal waste) is the only problem in the Netherlands. The Commission has pursued Article 171 infringement proceedings as the Dutch authorities have failed to adopt all the measures needed judgment given on 17 January 1995 (Case C-93/94). (53) to comply with the Article 171 infringement proceedings also had to be opened against Belgium for failure to notify national measures implementing Directives 91/687/EEC (swine fever) and 91/688/EEC (imports from non-member countries) following the judgment given by the Court on 19 January 1995 (Case C-66/94). (54) The Commission referred to the Court seven cases of failure to notify measures implementing veterinary directives. Measures were subsequently notified and the Commission was able to withdraw its cases. In France delays in transposai subsist in respect of seeds and seedlings and in the veterinary field. In Greece the situation continues to give cause for concern, since some of the important internal market directives have not been transposed, for (53) (54) Commission v Netherlands [1995] ECR 1-77. Commission v Belgium [1995] ECR 1-149. 73 example Directives 92/5/EEC on meat products and 91/414/EEC on plant protection products. In Ireland problems subsist in the veterinary field. Despite a referral to the Court in 1994, the necessary measures have still to be taken regarding the application of the directives on the organization of veterinary inspections in relation to fish, and in 1995 the Commission referred a further ten untransposed White Paper directives to the Court. In Italy the situation deteriorated appreciably in 1995; the Commission referred nineteen untransposed directives in a variety of agricultural matters to the Court. Portugal has made great progress in the veterinary field. The main subsisting delays in transposai concern seeds and seedlings and animal feed (particularly the directives on official controls). The general transposai situation in the United Kingdom is satisfactory, but there are some delays in measures for Northern Ireland Analysis by sector In the seed and seedling sector there was substantial progress, although there are transposai delays in France, Italy and Portugal. The only real problems regarding animal feed arise in Greece and Italy. Greece has made up the serious delay in transposing the plant-health directives concerning harmful organisms. But the Commission is concerned about its persistent failure to issue national measures implementing Directive 91/414/EEC (plant protection products). As in past years the transposai of the veterinary directives is a source of considerable difficulty, particularly in Italy, Ireland, Greece, France and, to a lesser extent, Belgium. In most of these Member States the pressure brought to bear has not achieved its object of securing transposai of some of the White Paper directives. Implementation of Directive 83/189/EEC (technical standards) in agriculture In 1995, pursuant to Directive 83/189/EEC, the Commission examined 61 draft technical regulations notified by the Member States in the tight of Article 30 of the Treaty and the relevant secondary legislation(55) In many cases, after systematic analysis of the drafts, the Commission requested amendments to ensure that adoption of the regulations concerned would not create new barriers to the free movement of goods. Seven drafts gave rise to reasoned opinions, two of them accompanied by supplementary <55> See Chapter 2. 2. 1. 2. 74 observations; five others gave rise to observations by the Commission. Generally speaking, Member States to which reasoned opinions or observations were addressed made the requisite changes to their drafts. In exercising its duty to monitor the implementation of Directive 83/189/EEC, the Commission strives to ensure that Member States comply with their obligation to notify all draft instruments containing technical rules or standards. After scrutinizing instruments adopted by the Member States in 1995, it twice commenced infringement proceedings for failure to observe the notification procedure. 2. 3. Progress in implementing directives applicable to agriculture MEMBER STATE Directives apphcable on 31. 12. 1995 Directives for which measures have been notified BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN 355 355 355 355 355 355 355 355 355 355 355 355 346 (9 derogations) 348 (7 derogations) UNITED KINGDOM 355 332 352 326 311 344 328 324 302 339 348 260 315 56 299 338 % 94 99 92 88 97 93 91 85 95 98 73 89 16* 86 95 Note : This table concerns the following Directives: Feedmgstuffc 70/373, 70/524, 71/250, 71/393, 72/199, 72/275, 73/46, 73/47, 74/63, 74/203, 75/84, 76/14, 76/371, 76/372, 76/934, 77/101, 78/633, 79/372, 79/373, 79/797, 80/502, 80/510, 80/511, 80/695, 81/680, 81/715, 82/471, 82/475, 82/937, 83/228, 83/381, 84/4, 84/425, 84/443, 84/587, 85/509, 86/174, 86/299, 86/354, 86/530, 87/153, 87/234, 87/238, 88/485, 89/520, 90/44, 90/167, 90/439, 91/126, 91/132, 91/248, 91/249, 91/334, 91/336, 91/357, 91/508, 92/63, 92/64, 92/87, 92/88, 92/89, 92/95, 92/113, 93/26, 93/27, 93/28, 93/55, 93/56, 93/70, 93/74, 93/107, 93/113, 93/114, 93/117, 94/14, 94/16, 94/17, 94/39, 94/40, 94/41, 95/9, 95/10, 95/11. 75 Plant health 69/464, 69/465, 69/466, 74/647, 76/895, 77/93, 79/117, 79/700, 80/392, 80/428, 81/7, 81/36, 82/528, 83/131, 85/298, 85/574, 86/214, 86/355, 86/362, 86/363, 86/651, 87/181, 87/298, 87/477, 88/298, 88/572, 89/186, 89/365, 89/439, 90/168, 90/335, 90/533, 90/642, 91/188, 91/414, 91/683, 92/70, 92/76, 92/90, 92/98, 92/103, 92/105, 93/50, 93/51, 93/57, 93/58, 93/71, 93/85, 93/106, 93/110, 94/3, 94/13, 92/29, 94/30, 94/37, 94/43, 95/4, 95/40, 95/41. Seeds and plants 66/400, 66/401, 66/402, 66/403, 68/193, 69/60, 69/61, 69/62, 69/63, 69/208, 70/457, 70/458, 71/140, 71/162, 72/168, 72/169, 72/180, 72/274, 72/418, 73/438, 74/268, 74/648, 74/649, 75/444, 75/502, 76/331, 77/629, 78/55, 78/386, 78/387, 78/388, 78/511, 78/692, 78/816, 78/1020, 79/641, 79/692, 79/967, 80/304, 80/754, 81/126, 82/287, 82/331, 82/859, 83/116, 85/38, 86/109, 86/155, 86/267, 86/320, 87/120, 87/480, 87/481, 88/95, 88/380, 89/2, 89/14, 89/100, 89/424, 91/682, 92/9, 92/19, 92/33, 92/34, 92/107, 93/17, 93/48, 93/49, 93/61, 93/62, 93/63, 93/64, 93/78, 93/79, 95/6. Forestry 66/404, 68/89, 69/64, 71/161, 74/13, 75/445. Veterinary matters 64/432, 64/433, 66/600, 71/118, 71/285, 72/445, 72/461, 72/462, 73/150, 77/96, 77/98, 77/99, 77/391, 77/504, 78/52, 79/109, 79/111, 80/213, 80/215, 80/217, 80/219, 80/1095, 80/1098, 80/1099, 80/1100, 80/1101, 80/1274, 81/6, 81/602, 82/894, 83/91, 83/201, 84/319, 84/643, 84/644, 84/645, 85/73, 85/320, 85/321, 85/322, 85/358, 85/511, 85/586, 86/469, 87/328, 87/486, 87/487, 87/489, 87/491, 88/146, 88/166, 88/289, 88/299, 88/406, 88/407, 88/409, 88/657, 88/660, 88/661, 89/227, 89/321, 89/360, 89/361, 89/362, 89/384, 89/437, 89/556, 89/608, 89/662, 90/118, 90/119, 90/120, 90/422, 90/423, 90/425, 90/426, 90/427, 90/428, 90/429, 90/539, 90/667, 90/675, 91/67, 91/68, 91/69, 91/174, 91/266, 91/492, 91/493, 91/494, 91/495, 91/496, 91/497, 91/499, 91/628, 91/629, 91/630, 91/684, 91/685, 91/687, 91/688, 92/5, 92/35, 92/36, 92/40, 92/45, 92/46, 92/48, 92/60, 92/65, 92/66, 92/67, 92/102, 92/110, 92/116, 92/117, 92/118, 92/119, 93/52, 93/53, 93/54,93/60, 93/118, 93/119,93/120,93/121,94/28, 94/42, 94/59, 94/71, 95/23, 95/25. This figure is explained by the failure to notify transposai measures in the Aland Islands, which have considerable autonomy in these matters and are consequently required to take specific transposai measures. 76 FISHERIES 1. INTRODUCTION In order to ensure respect for the Community rules governing fisheries and aquaculture, the Commission continued to monitor the resource conservation and management measures put in place by the Member States in areas covered by the common fisheries policy. With this in view, it kept a close watch on the fishery control measures that Member States are required to implement. The Commission decided to go ahead with the infringement proceedings that were pending against four Member States (France, the United Kingdom, Spain and Denmark) in the matter of overfishing. New proceedings will be commenced shortly for infringements by certain Member States that had not taken the control measures needed to enforce the current Regulation on controls, Regulation (EEC) No 2847/93. The Commission also continued its systematic scrutiny of national fisheries and aquaculture legislation for compatibility with Community law, notably as regards the grant of flag rights and technical resource conservation measures. SITUATION SECTOR BY SECTOR 2. 1. Markets Member States' application of the Community rules on the compulsory notification of the data required under the common organization of the market may now be considered satisfactory. The infringement proceeding against Spain has been terminated. 2. 2. Resources Particular attention was paid the Member States' implementation of the new control measures under the common organization of the market. to monitoring There was a substantial improvement over past years as regards overfishing in several Member States and the Commission was able to terminate several infringement proceedings. On the other hand, the Commission addressed five reasoned opinions to Spain, France and the United Kingdom for failing to take the measures needed for the sound application of the Community rules. The Commission commenced an action against France in the Court of Justice (Case C-52/95)(56) for exceeding the anchovy quota in 1991 and 1992. (56) Judgment given on 7 december 1995. 77 France has not yet given proper effect to the judgment given by the Court 11 June 1991 in Case C-64/88 for failure to discharge the obligation to enforce infringement proceedings are in motion. technical conservation measures. Article 171 Member States' application of the Community rules determining the length of drift nets also came in for close monitoring by the Commission Apart from the infringement proceedings limning against Italy since 1992, the proceedings against France and Ireland commenced in 1994 are still in motion; a reasoned opinion has been issued in the former case. But at any rate there is a general improvement in compliance with Community rules in these matters. 2. 3. Compatibility with Community law of national legislation on the granting of flag rights The Commission continues to monitor carefully national laws governing flag rights for fishing vessels to ensure their compatibihty with Community law. In this connection, the Commission commenced a new case against France in the Court of Justice on 22 December 1994 (Case C-334/94). The Commission's application is for a declaration that French legislation on flag rights and crew nationalities is incompatible with Community law and that France is accordingly in breach of its obligations under Article 171 of the EC Treaty by not giving effect to the Court's judgment in Case 167/73 (Code de travail maritime). All the Commission's infringement proceedings against other Member States (Greece, Belgium, Denmark, Italy, Spain, Portugal) are running their course. The Commission has asked the Swedish and Finnish authorities to notify it of all relevant information regarding their flag rights legislation 78 EmOROISMENT 1. INTRODUCTION 1. 1. General situation The implementation of Community law in environmental as in other matters is often complicated by the fact that responsibihty for adopting national transposai measures often rests not with the national authorities, but with regional or even local authorities. The process of transposing Community law is difficult and time- consuming in such cases. The effective implementation of Community environment law is fiirfher complicated by application of the principle that environment policy must be integrated in the elaboration and implementation of all other policies and activities undertaken by the Community (Article 130r(2) of the EC Treaty). The practical application of the law in this area has to be considered in often complex contexts involving the attainment of other, sometimes competing, objectives. By way of example, the provisions of environmental law may well conflict with social and economic development constraints, notably when major infrastructure projects are being planned It is sometimes difiScult in such cases to assess whether the negative impact on the environment is more than outweighed by the social and economic benefits to the general public and what measures are needed to reduce that impact. The effort to integrate environmental protection constraints into the elaboration and implementation of other Community policies has been sustained, for sustainable, environment-friendly development must be ensured But the available scientific and technical data on the state of the environment are not sufficient to found a definitive value judgment on the effectiveness of the legal instruments currently operating for the protection of the environment. The general report on the state of the environment in Europe pubUshed in 1995 by the European Environment Agency (Europe's Environment, Dobris Report) will without doubt be a valuable working instrument for the Commission, equipping it to assess the effectiveness of Community rules and to meet the environmental challenges of the years ahead 1. 2. Notification of national implementing measures As was stated in previous years' reports, there are still problems with the notification of national measures implementing directives, especially where timing is concerned. In most cases, the delays are attributable to the institutional and aàninistrative structure within the Member States rather than to a deliberate strategy of not discharging Community obligations. 79 In some areas, particularly chemical substances, it can be seen that the Member States are finding it difficult to keep up with the pace of transposai required by successive adaptations of Directive 67/548/EEC (dangerous substances) to technical progress. Member States generally come into tine in the period after the deadline for transposai, and the Commission can then terminate infringement proceedings for failure to notify before reaching the stage where a referral to the Court of Justice is necessary. Even so, delays in transposai subsist. Directives 90/219/EEC and 90/220/EEC (genetically modified organisms), for instance, have not been transposed in Greece and Luxembourg. Likewise, Directives 89/369/EEC and 89/429/EEC (atmospheric pollution from new and existing incineration plants) have not been transposed in Italy. This year the Commission paid special attention to notification of national measures implementing environment directives by the three new Member States (Austria, Finland and Sweden). All three have adopted national measures implementing most of the directives due for transposai. In cases where directives have still to be transposed, the process is often under way. 1. 3. Conformity of national implementing measures Although the Member States are making great efforts to transpose directives into their national legal orders properly, the Commission has once again detected cases where national implementing measures are not strictly in conformity with the directives. Problems arise in particular where a directive is transposed at a level below the national level, by the regions, provinces or Lander where they have their own powers in environmental matters. Other problems arise where Member States' existing legislation covers the subject-matter of the directive but needs amending in line with the new Community rules. And the Member States sometimes use transposai techniques combining different forms of legal instrument without always specifying the precise relationship between each of them and the various obligations imposed by the directive. In such cases, the Commission's scrutiny of national implementing measures is particularly difficult as most Member States do not supply concordance tables, indicating the provisions enacted to transpose each of the obligations imposed by each directive. 80 1. 4. Incorrect application of directives Complaints, petitions and parliamentary questions are as always the Commission's main sources of information The Commission investigates them where they reveal cases of incorrect application of directives. The number of complaints received by the Commission fell. As in previous years, Spain, France, the United Kingdom and Germany were the Member States from which the largest number of complaints were received; Luxembourg and Denmark were the least affected The Commission also received several complaints concerning the three new Member States. Most of the complaints and petitions were about specific practical problems with a geographically local impact. Most of the problems raised by individual complaints recur here and there throughout the territory of a Member State. This means that the Commission can identify the general problems underlying individual infringement situations. A high frequency of complaints about uncontrolled waste disposal sites, for instance, may be evidence of a waste management problem, or a shortage of the infrastructures needed to ensure that waste disposal is not posing an environmental hazard Likewise, complaints about river and groundwater pollution may be evidence of a major problem of controlling discharges of urban and industrial waste water. In such cases, the Commission endeavours to take a horizontal approach to the problem so as to force Member States to comply with Community rules and thus secure lasting protection for the environment. Problems of application are most frequent in the areas of nature protection, environmental impact assessment, waste disposal and wateT pollution. They will be considered in greater detail in the section on the situation sector by sector. The causes of these instances of incorrect application vary widely, but many of them are the result of problems of incomplete or incorrect transposai of directives or a lack of the requisite technical infrastructure for enforcing Community obligations. Consequently, the Commission attaches particular priority to problems of conformity to ensure wherever possible that application problems will not arise. This is not to say that it abandons the scrutiny of individual incorrect application cases thrown up by complaints that reveal questions of principle or horizontal questions or administrative practices that contravene the directives. The package meetings regularly organized with the Member States are particularly useful as they enable the Commission to meet the relevant national authorities and solve problems concerning the implementation of Community legislation. Where there are shortages of technical infrastructure, the Commission is continuing its activity of improving environmental infrastructure via projects financed by the Structural Funds and the Cohesion Fund. 81 1. 5. Freedom of access to information Directive 90/313/E EC concerning freedom of access to information has been apphcable since 1 January 1993, but Italy has still not notified national implementing measures. Greece, howeveT, has now notified its implementing legislation. Austria, Finland and Sweden have also incorporated the Directive into national law. The Directive raises conformity problems in several Member States, particularly Germany, France and the Netherlands. Representations have been made to the Member States and in some cases the results have been satisfactory. In the Netherlands, for instance, legislation to bring national measures into line with the Directive was laid before Parliament in October. In Portugal, the authority responsible for hearing adtainistrative appeals against decisions wrongfully neglecting or declining to respond to requests for information has begun functioning. This is a major step forward in enforcing the Directive. In Ireland, a report has been produced on the first year's application of the national instruments transposing the Directive. It emphasizes the low frequency of refusals to supply information (about 2% of cases), but highlights a number of difficulties such as compliance with information requests and the absence of redress procedures in certain cases. In the tight of the report's findings the Irish, authorities will consider whether the legislation should be amended to better satisfy their undertaking to improve public access to information on the environment. The Commission received numerous complaints raising problems in the application of Directive 90/313/EEC. As last year's report stated, the facts underlying these complaints tend to raise issues of failure to notify national implementing measures or their lack of conformity. The Commission is especially attentive to conformity problems, but progress is slow because of the legislative procedures of the Member States where existing legislation needs amending. Many of the complaints filed with the Commission are made immediately a national authority has declined a request for information, before the requester has had the opportunity to avail himself of the redress procedures provided for by the Directive. In such cases the Commission encourages complainants to make use of the procedures available under the Directive and the national transposai legislation. In other cases, complaints are filed at the same time as the judicial or administrative appeal at national level. In such cases, the Commission asks complainants for information regarding the outcome. 82 1. 6. Environmental impact assessment Directive 85/33 7/E EC (assessment of the effects of certain public and private projects on the environment) is a horizontal instrument, and consequently it is widely cited in complaints, petitions and infringements in this field Infringement situations are often caused by incorrect transposai. Conformity problems subsist in Member States such as Spain, Italy, Belgium, Germany, Portugal and Greece. They mostly concern the categories of projects listed in Annex II to the Directive and taken over into national law. A case against Germany on this point is pending before the Court of Justice (Case C-298/95). Although the Commission received a large number of complaints and petitions this year, there has been a visible shift in the nature of the problems they raise. Immediately after the Directive came into force, there were many complaints about the absence of impact assessment prior to the authorization of projects listed in Annexes I and II. However, now that impact assessment is well-established practice in all the Member States, complaints and petitions tend to be about the quality of impact assessments and the under-evaluation of projects' negative effects on the environment. They often relate to the siting and alternatives selected by the authorities for infrastructure projects such as motorways and by-passes, railway lines and ports. In such cases the Commission is often asked to intervene to have the national decision withdrawn or changed. Complainants also object that opinions validly expressed at public inquiries are not properly acted on by administrative authorities. It is particularly difficult to investigate the cases referred to in the two preceding paragraphs as the Directive merely established the procedure to be followed for impact assessment and is neutral on questions of quality; it gives the Commission no real powers to monitor the results of the assessments. On 11 August the Court of Justice dismissed a Commission action against Germany for breach of Directive 85/337/EEC (Case C-431/92). The Commission argued that Germany had failed to discharge its obligations under Directive 85/337/EEC by authorising the construction of a new tranche of a power station without following the Directive's impact assessment procedure. The Court dismissed the case, holding that the Commission had failed to show on what points the Directive had been breached in the procedure for authorizing the project. The Court held that the date on which a request for authorization is accepted is the only criterion used by the Directive. The Commission accordingly terminated action on a number of complaints concerning 83 projects authorized after the Directive came into force where the request for authorization predated the Directive. 1. 7. Action needed in notifying national It is clear that the problems regarding implementation of Community environmental law thrown up in past years' reports have not yet gone away. Delays implementing measures are commonplace and national legislation once enacted is often not in conformity with the requirements of Community law. As for the actual monitoring of apphcation of directives, the frequency of complaints and petitions is evidence that the pubtic are not making use of the possibihty of getting administrative authorities and the courts to order measures for the proper protection of the environment. To improve the apphcation of Community environment law, the Commission will focus its efforts first and foremost on measures to prevent infringement situations from arising. To this end it is planning to make full use of the committees provided for by the directives to improve the timely transposai of directives and the quality of transposai instruments. The Commission is also looking into the possibihty of stepping up the frequency of meetings with the national authorities to find the quickest and most effective solutions to problems raised by complaints and petitions. The fifth programme of action called for the estabhshment of a network for the apphcation of Community environment law. There is an informal network (IMPEL - Implementation and Enforcement of EU Environmental Law) which has so far been active especially on questions of inspection and monitoring; there is a more and more pressing need for a wider range of activities in relation to the implementation of Community environment law, as provided for by the fifth programme. 2. SITUATION SECTOR BY SECTOR 2. 1. Air There are delays in the transposai of air directives, particularly in Austria and Finland. However, the process appears to be under way in Austria, where several directives will be incorporated into national law in 1996. As will be seen at 2. 8, several Member States have not transposed Directives 92/72/EEC (ozone) and 93/12/EEC (sulphur content of liquid fuels), which fell due in 1994. The deadline for transposing Directives 94/63/EC (control of volatile organic compound emissions) and 94/66/EC (major incineration plants) fell in 1995, but the Member States have not all notified their national implementing measures. 84 Italy's measures transposing earlier directives, notably Directives 89/369/EEC and 8. 9/429/EEC (prevention of air pollution from new and existing municipal waste incineration plants), are still awaited. The Commission has commenced a Court action for failure to notify measures transposing these Directives (Case C-23 7/9 5). Belgium has now taken the requisite measures to comply with the judgment given by the Court of Justice in Case C-l 86/91 for failure to transpose Article 11 of Directive 85/203/EEC (nitrogen dioxide), and the Commission has terminated the Article 171 proceedings. The problems of conformity of the British legislation transposing Directive 85/203/EEC (air quality standards - nitrogen dioxide) are largely settled. The number of sampling centres has been increased substantially, and work on new centres is in hand. Most of the complaints received by the Commission concern the apphcation of the air quality directives in highly industrialized or densely populated areas. When these complaints are investigated, the Commission asks the Member State concerned to supply data regarding the values determined by the directives so that it can verify that they are not being exceeded. 2. 2. Chemicals There are still serious delays in transposai in this field, probably because of the specific technical features of the matter. Directives 90/219/EEC and 90/220/EEC (genetically modified organisms), for instance, have not been transposed in Luxembourg, prompting the Commission to bring an action in the Court of Justice (Case C-95/312). The Court found against Greece for failure to transpose the same two Directives within the time allowed(57) Spain has still not fully transposed them, and problems of conformity subsist in Belgium, France and Portugal. Several Member States have yet to notify national measures implementing the directives adapting to technical progress the directives on genetically modified organisms (Directives 94/15/EC and 94/51/EQ. Several Member States are finding it difficult to keep up with the pace of transposai of the adaptations to technical progress of Directive 67/548/EEC on the classification, packaging and labelling of dangerous substances - Italy, Belgium and to a lesser extent Luxembourg and Greece. Spain made a considerable effort, notifying national measures implementing all the technical adaptation directives. The Commission was able to terminate its infringement proceedings accordingly. (57) Case C-l70/94, judgment given on 29 June 1995. 85 The Commission took Italy to Court for failure to transpose Directive 93/67/EEC (principles for assessing risks to man and the environment of substances notified in accordance with Directive 67/548/EEC) (Case C-238/95). Complaints are relatively rare. They most commonly bear witness to pubtic concern about accident hazards due to industrial activity and the lack of information regarding the emergency plans provided for by Directive 82/501/EEC (Seveso). Several complaints were received about the incorrect apphcation of Directive 86/609/EEC (laboratory animals), a topic on which pubtic opinion is particularly sensitive. When investigating these complaints, the Commission does all it can to see that the Directive is properly observed by the Member States. 2. 3. Water The practical apphcation of the water directives falls short of the ambitions of Community policy on the protection and quality of the aquatic environment. The approach taken to combating water pollution focuses on the determination of quality objectives, the establishment of clean-up programmes and prior authorization and emission limitation schemes; it entails a major administrative effort, and several Member States are in serious difficulties with the proper apphcation of the objectives established by Community rules. Directive 76/464/EEC (dangerous substances discharged into the aquatic environment) is a good illustration The Commission has commenced infringement proceedings against several Member States for failure to notify programmes for the reduction of pollution by dangerous substances on List II in the Annex to the Directive. The apphcation of Directive 76/464/EEC is a source of major difficulties in Greece. The Commission commenced two actions for failure to notify programmes to reduce pollution of Lake Vegoritits, the Soulos River and the Bay of Pagassitikos or measures requiring discharges by firms and establishments in these regions to be preceded by prior authorizations (Cases C-232/95 and 233/95). failure The Commission also referred to the Court of Justice the case concerning Germany's transpose Directives 82/176/EEC, 83/513/EEC, 84/156/EEC, 84/941/EEC and 86/280/EEC Oirnit values and quality objectives for discharges of dangerous substances on List I in Directive 76/464/EEC) (Case C-262/95). to correctly The apphcation of Directive 76/160/EEC (bathing waters) continues to pose problems in Italy, Germany, Spain and Belgium. The Commission is closely monitoring the British authorities' implementation of clean-up plans for bathing waters and is pressing the four Member States mentioned above to present their plans. Finland and Sweden have still to transpose 86 the Directive, but the process is under way and should be completed in 1996. Austria has been granted a transitional period until 1 January 1997. Many complaints raising problems of drinking water quality have been received at the Commission. They are commonly due to lack of technical infrastructure. The Commission endeavours to tackle these problems by means of projects financed by the Structural Funds and the Cohesion Fund. The Commission commenced an action against Germany^ in the Court of Justice for incorrect transposai of Directives 78/659/EEC (quality of freshwaters needing protection or improvement in order to support fish life) and 79/923/EEC (quahty required of shellfish waters). Three actions have been commenced in the Court of Justice for failure to notify national measures implementing Directive 91/271/EEC (urban waste water) within the time allowed by Germany, Italy and Greece (Cases C-297/95, C-302/95 and C-161/95). Several Member States have not yet notified national measures implementing Directive 91/676/EEC (nitrates). The relevant infringement proceedings are in motion. 2. 4. Noise There are no special problems with the apphcation of the noise directives. As was stated in previous years' reports, they set limits on sound emissions for newly marketed goods. They do not apply to ambient noise from multiple sources, but the few complaints received by the Commission relate to this very problem which, not being regulated at Community level, is beyond its powers. As in other areas, delays in transposai subsist, particularly in respect of Directive 95/27/EC, amending Directive 86/662/EEC (limitation of noise emitted by hydraulic excavators, rope-operated excavators and dozers, loaders and excavator-loaders). 2. 5. Waste Waste management continues to pose serious problems in the Community: witness the growing number of complaints and petitions which the Commission has to consider each year. The most common problems are: - - the proliferation of uncontrolled dumps and illegal tipping; poor management of dumps; (58) Case C-262/95 87 the adoption of plans to establish dumps in ecologically sensitive sites (rich in fauna and flora or on water tables from which drinking water is extracted) without prior impact assessment; pollution of surface water by waste discharged direct into water courses. - The absence of the necessary infrastructure and of efficient planning instruments is behind many of these situations. Many Member States have still not satisfied their planning and rr ogramming obligations under the general waste directive (75/442/EEC, as amended by Directive 91/156/EEC) and Directive 91/157/EEC (batteries). The Commission is taking the action needed to bring an end to the Member States' deficiencies. As for the notification of national implementing measures, several Member States have not yet transposed Directives 91 /l 56/EEC (waste), 91/157/EEC and 93/86/EEC (batteries) and 91/689/EEC (hazardous waste). The Commission has commenced the requisite infringement proceedings. (59) Italy has been taken to the Court of Justice for failure to notify measures transposing Directive 91/157/EEC (Case C-303/95). The Commission has also commenced a Court action against Greece for failure to notify measures transposing Directive 91/156/EEC (Case C-l60/95). Spain, France and Luxembourg have not yet complied with the judgments given against them by the Court of Justice for failure to notify programmes for the reduction of the tonnage and volume of containers of liquids for human consumption required by Directive 85/339/EEC, but the Commission decided not to commence Article 171 proceedings. Directive 94/62/EC (packaging and packaging waste) is behind its decision, for upon entry into force it will replace Directive 85/339/EEC. Directive 94/62/EC also imposes an obligation to establish volume reduction programmes, but is no longer confined to liquids for human consumption; it extends to all containers without distinction and determines certain results to be attained by such programmes. Lastly, the Court held that the German legislation on waste disposal was incompatible with the general waste directive since it excluded certain categories of recyclable waste. It also held that Germany had foiled to establish, update and publish programmes for the elimination of toxic and dangerous waste in certain regions. (60) Germany has now amended its legislation in line with the Court's judgment, but the amendments will have effect only from September 1996. (59) (60) See Chapter 2. 8. Case C^22/92, judgment given on 10 May 1995. 88 2. 6. Nature Nature protection activities focus on implementation of Directives 79/409/EEC (wild birds) and 92/43/EEC (habitats). Neither of these Directives has been transposed in Finland, which is lagging behind in this field. All Member States now have legislation for the protection of wild birds, but Directive 79/409/EEC still raises serious application problems. They concern the designation of special protection areas for birds, still inadequate in several Member States, especially the Netherlands, Greece, Luxembourg, Ireland, Germany, Italy and the United Kingdom. Each year the Commission receives numerous complaints and petitions about incorrect application of Directive 79/409/EEC. It is clear from the facts alleged in them that Member States have still to set up effective protection systems for areas designated under Article 4 of the Directive. As for Directive 92/43/EEC, most Member States have still to notify implementing measures. Consequently, infringement proceedings are following their course. Article 4 of Directive 92/43/EEC requires Member States to notify the Commission in June 1995 of a list of sites that could be part of Natura 2000, the European ecological network, but few of them have done so. The Commission is aware that this may jeopardize the establishment of Natura 2000 and has begun making the requisite representations to the Member States to have the lists notified as soon as possible. The Commission received numerous complaints alleging incorrect apphcation of Directive 92/43/EEC. These complaints also raise problems regarding the apphcation of Directive 85/337/EEC (environmental impact assessment). Most of them allege degradations of natural habitats, disruption of animal life and destruction of flora species listed in the Annexes to the Directive. The Commission is not always in a position to act on the complaints and petitions since some of the provisions of Directive 92/43/EEC will be applicable only when the Commission has adopted the list of sites of Community importance. In 1995 the Commission issued two opinions under Article 6(4) of Directive 92/43/EEC on the Baltic motorway construction project (A-20) in Germany/6 !) It confirmed the existence of consideration of major public interest militating in favour of authorizing the project, given its importance in the unification context, the absence of alternatives and the German authorities' adoption of compensatory measures to secure the coherence of Natura 2000. This is the first time Article 6(4) has been applied «51) OJ C 178, 13. 7. 1995, p. 3 and OJ L 6, 9. 1. 1996, p. 14. ^ > 89 2. 7. Radiation protection On 17 March Italy enacted Decree-Act No 230, transposing all the Community radiation protection Directives ;(62) all the infringement proceedings for failure to notify national measures implementing the directives were accordingly terminated. The infringement proceedings against Luxembourg and the Netherlands for incorrect transposai of Directives 80/836/Euratom and 84/467/Euratom (basic safety standards for ionizing radiation) are still in motion as the latest amending legislation is not sufficient to transpose them fully. As for Directive 84/466/Euratom (protection of patients), all the Member States against which Commission infringement proceedings were running for incorrect transposai have notified the Commission either of new legislation or of existing legislation requiring amphfication (Italy), or of draft measures pursuant to Article 33 of the Euratom Treaty (Belgium, Spain, Ireland and Portugal). The proceedings cannot be terminated; the Commission has referred to the Court those cases where full transposai is far from being attained (Spain and Portugal). The only Member State that has not enacted national measures implementing Directive 89/618/Euratom (information for the general public in the event of a radiological emergency) is Luxembourg; the Commission commenced an action in the Court of Justice on 24 February 1995 (Case C-46/95). The Commission has since been notified of draft Grand-ducal Regulations in accordance with Article 33 of the Euratom Treaty. The proceedings against Italy (judgment was given against Italy on 29 June 1995, Case C-135/94) and Portugal were terminated as measures fully implementing the Directive were adopted in 1995. The transposai of the Directive by Germany, Spain and France is now under scrutiny at the Commission. Proceedings against Italy in respect of Directive 90/641/Euratom (radiation protection of outside workers) were terminated following the enactment of the Decree-Act referred to above. The other four Member States against which infringement proceedings are running for failure to notify national implementing measures (Belgium, Greece, Spain and Portugal) have notified the Commission of draft implementing measures. Directive 92/3/Euratom (transfrontier shipments of radioactive waste) has not been transposed in four Member States (Belgium, Germany, Greece and Portugal), but all of them have notified the Commission of draft transposai measures. The three new Member States have sent their national measures on radiation protection to the Commission, which is now scrutinizing them in detail. Subject to the Commission's findings, these measures cover the (62) GU 136, 13. 6. 1995. 90 transitional period scope of nearly all of the radiation protection directives for which there is no (except Directives 80/836/Euratom and 84/467/Euratom on basic safety standards). Even so, the new Member States have still to adopt national measures implementing Directives 89/618/Euratom (Finland) and 92/3/Euratom (Austria and Sweden). 2. 8. Progress in implementing directives applicable to the environment MEMBER STATE Directives apphcable on 31. 12. 1995 Directives for which measures have been notified BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM 133 133 135 138 137 133 133 133 133 133 129 137 131 131 133 111 131 127 121 123 126 127 113 122 131 119 119 114 123 124 % 83 98 94 88 90 95 95 85 92 98 92 87 87* 94 93 Note : this table concerns Directives: General matters 85/337, 90/313, 90/656, 90/660, 93/80. Waste 75/439, 75/442, 76/403, 78/319, 84/631, 85/339, 85/469, 86/121, 86/278, 86/279, 87/101, 87/112, 91/156, 91/157, 91/689, 93/86. Water 75/440, 76/160, 76/464, 78/176, 78/659, 79/869, 79/923, 80/68, 80/778, 81/855, 81/858, 82/176, 82/883, 83/29, 83/513, 84/156, 84/491, 86/280, 88/347, 90/415, 91/271, 91/676, 92/112. Ak 75/716, 80/779, 81/857, 82/884, 84/360, 85/203, 85/210, 85/580, 85/581, 87/219, 87/416, 88/609, 89/369, 89/427, 89/429, 92/72, 93/12, 94/63, 94/66. 91 Noise 79/113, 80/51, 81/1051, 83/206, 84/533, 84/534, 84/535, 84/536, 84/537, 84/538, 85/405, 85/406, 85/407, 85/408, 85/409, 86/594, 86/662, 87/252, 88/180, 88/181, 89/514, 89/629, 92/14, 95/27. Nature 79/409, 81/854, 83/129, 85/411, 85/444, 86/122, 89/370, 91/244, 92/43, 94/24. Chemicals 67/548, 69/81, 70/189, 73/146, 75/409, 76/907, 79/370, 79/831, 80/1189, 81/957, 82/232, 82/501, 83/467, 84/449, 86/431, 86/609, 87/18, 87/216, 87/217, 87/432, 88/302, 88/490, 88/610, 90/219, 90/220, 90/517, 91/325, 91/326, 91/410, 91/632, 92/32, 92/37, 92/69, 93/21, 93/67, 93/72, 93/90, 93/101,93/105,94/15,94/51. Radiation protection 80/836, 84/466,. 84/467, 89/618, 90/641, 92/3. The notification rate for Finland is actually much higher than this if the problems of transposing directives in the Aland Islands are disregarded They have considerable autonomy in these matters and are consequently required to take specific transposai measures. 92 TRANSPORT 1. INTRODUCTION The picture regarding application of Community transport law was somewhat mixed. There were encouraging results as regards surface transport. Apart from Directives 93/89/EEC (taxation of road transport) and 91/440/EEC (development of Community railways), where problems of application continue to give cause for concern, there have been relatively few specific problems with the transposai of directives in this area. The situation regarding sea transport is, however, rather worrying. Apart from the continued existence of legislation in many Member States regulating flag rights in a manner contrary to Community law, there are problems in five Member States where cargo-sharing agreements contrary to the principle of freedom of establishment remain in force with non-member countries. And the transposai of Directive 93/75/EEC (transport of dangerous goods) is incomplete in certain Member States. The main problem with air transport concerns the conclusion of bilateral "open skies" agreements with the United States by several Member States, against which the Commission has commenced infringement proceedings. 2. SITUATION SECTOR BY SECTOR 2. 1. Road transport Following notification of national implementing measures by Portugal, the transposai of Directive 90/398/EEC (vehicles hired without drivers) has now been completed in all Member States. On the taxation front, Directive 93/89/EEC (taxes on certain vehicles used for the carriage of goods by road) was annulled by the Court of Justice(63) on grounds of violation of substantial procedural requirements; the Council omitted to consult the European Parliament a second time before adopting the Directive although it had been heavily amended in relation to the Commission proposal. But the Court preserved the effects of the Directive pending the Council's adoption of new provisions. France, Italy and Ireland have not yet notified the Commission of national implementing measures, while for Belgium, Spain, Greece, Luxembourg and Portugal the measures notified are incomplete. In the social field, following the judgment given by the Court of Justice on 23 February 1994 (in Case C-336/93), the Belgian authorities have transposed Directive 88/599/EEC recording equipment). But Italy has not yet complied with the judgment given by the legislation (social - (63) Case C-21/94, judgment given on 5 July 1995. 93 Court on 23 February 1994 (in Case C-289/93). An Article 171 letter has been sent. A reasoned opinion was sent to Luxembourg as its national implementing legislation was not in conformity with Directive 89/438/EEC (admission to the occupation of road haulage operator). Directive 89/684/EEC (training for drivers of vehicles carrying dangerous goods) has now been the Member States; the infringement proceedings against Greece have been terminated following notification of its national implementing measures. transposed in all The general position regarding safety and is satisfactory and several infringement proceedings have been terminated. technical standards On roadworthiness testing, only Ireland (which has a derogation for the application of the Directive until 1 January 1998) has not notified national implementing Directive 91/328/EEC. The notificvation of measures measures transposing Directive 92/55/EEC (exhaust emissions) is complete in all Member States; the proceedings against France, Greece, Ireland and the United Kingdom have been terminated. Italy is the only Member State that has not notified measures transposing Directive 92/54/EEC (brakes). Directive 91/671 (compulsory use of safety belts) is fully transposed in all Member States except Belgium. Portugal is the only Member State still to notify measures implementing Directive 92/6/EEC (speed limitation devices). 2. 2. Combined transport By transposing Directive 75/130/EEC (common rules for certain types of combined transport), Italy gave effect to the judgment given by the Court of Justice on 7 May 1991 (in Case C-89/045) and terminated one of the longest-running infringement cases. The infringement proceedings against France, Italy and Portugal for failure to notify measures implementing Directive 92/106/EEC have been terminated; the only two proceedings still running are those against Greece and Belgium. 2. 3. Inland waterways A reasoned opinion was addressed to Germany for incorrect transposai of Directive 87/540/EEC (admission to the occupation of carrier of goods by waterway). The exemptions allowed by German law from requirements as to evidence of professional capacity are wider than those provided for by the Directive. Belgium's national implementing measures have still not come into force. 2. 4. Rail transport The transposai of Directive 91/440/EEC, one of the cornerstones of the Community policy for developing the railways, is incomplete in eight 94 Member States. Apart from Greece, which has notified no national implementing measures and has received a reasoned opinion, the Commission commenced infringement proceedings for failure to transpose Article 10 of the Directive, which confers certain rights of access to infrastructure for railway companies in the Community. 2. 5. Sea transport « Problems remain as regards compliance with Community flag rights legislation. For several years the Commission has been examining the conditions for entry in the Member States' shipping registers and the granting of flag rights. The conditions were usually discriminatory, relating among other things to shipowners' nationality, national control over shipowning companies, the nationality of their directors and managers, their principal place of establishment or centre of activity and crew members' nationality. The Commission has always regarded these conditions as constituting violations of the right of establishment, the principle of national treatment for holdings of company capital by nationals of other Member States and the principle of free movement of workers. In Factortame (Case C-221/89),(64) the Court unequivocally upheld the Commission's arguments. Infringement proceedings have been commenced against most of the Member States and the result has been either the amendment of their legislation in line with Community law or at least the preparation of draft amending instruments. Problems subsist with France, Belgium, Denmark, Ireland, Greece, Italy and the Netherlands; infringement proceedings are in motion, but a favourable outcome was achieved in Luxembourg, Germany and the United Kingdom, which have brought their legislation into line with Community law. On 5 October 1994 the Court gave judgment in the case concerning France's discriminatory system of dock dues, holding that France had failed to discharge its obligations under Article 1 of Regulation (EEC) No 4055/86 applying the principle of freedom to provide services to maritime transport between Member States and between Member States and third countries. The offending provisions were amended on 18 May 1994 and the proceedings were terminated. France was also sent a reasoned opinion for reserving the carriage of coal for vessels flying the French flag, but the infringement proceedings for the preferential flag rights for the carriage of oil and gas were terminated as the rules brought in by legislation enacted on 31 December 1992 replaced the legal obligation to carry oil and gas in vessels flying the French flag by an obligation to have access to oil and gas carriage capacity. The new arrangements ensure security of crude oil supplies to France in the manner most fully compatible with freedom to supply services in sea transport. (64) [1991] ECR 1-3956. 95 On the subject of cargo-sharing agreements with non-member countries, reasoned opinions were sent to Spain on account of its agreements with Russia and Tunisia, to Belgium and Luxembourg on account of their agreement with Malaysia, to Portugal on account of its agreement with Russia and to Italy on account of its agreement with Morocco. The transposai of Directive 93/75/EEC (minimum requirements for vessels bound for or leaving Community ports and carrying dangerous or polluting goods) is incomplete in certain Member States, and the Commission has not yet been notified of national implementing measures by Spain, Denmark, Italy, Portugal or the United Kingdom; reasoned opinions have been issued accordingly. 2. 6. Air transport As mentioned in the introduction, the most worrying problem is the conclusion of bilateral "open skies" agreements with the United States. Problems of conformity of national measures with Directive 91/670/EEC (mutual acceptance of personnel licences in civil aviation) have not been settled, though there has been a tangible decline in the number of complaints this year. However, some Member States have been misinterpreting the Directive in a restrictive manner that runs counter to the principle of free movement of workers and to the European dimension in the civil aviation business. A reasoned opinion was sent to France for its refusal to accept pilot licences issued in another Member State, but the infringement proceedings against the United Kingdom for failure to notify were terminated when notification was made. Article 169 letters were sent to Belgium, Greece, Spain, France, Italy and Portugal for failure to give notification of national measures implementing Directive 93/65/EEC (definition and use of compatible technical specifications for the procurement of air-traffic-management equipment and systems). Resolving these problems is of obvious importance for the organization of public procurement in this area. Following the special procedure provided for by Article 8(3) of Regulation (EEC) No 2408/92, the British authorities asked the Commission to adopt a decision on the compatibility of the French Order of 15 November 1994 governing the distribution of air traffic in the Paris airports region with Community law. The Commission adopted a decision terminating the procedure and accepting that the Order was compatible except as regards a few disproportionate provisions. 2. 7. Summertime Infringement proceedings were commenced against Belgium, Denmark, Ireland, Italy, the Netherlands, Portugal and the United Kingdom for failure to notify it of measures transposing Directive 94/21/EEC. But the proceedings against Belgium and Ireland were terminated. 96 2. 8. Progress in implementing directives applicable to transport MEMBER STATE Directives applicable on 31. 12. 1995 Directives for which measures have been notified % ' BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG AUSTRIA NETHERLANDS PORTUGAL FINLAND SWEDEN UNITED KINGDOM 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 34 38 39 36 37 37 37 34 38 35 38 35 35 36 39 85 95 97. 5 90 92. 5 92. 5 92. 5 85 95 87. 5 95 87. 5 87. 5 90 97. 5 Note: this table concerns the following directives:(65) 62/2005, 74/561, 74/562, 76/135, 76/914, 77/143, 77/796, 79/115, 80/1263, 80/1266, 82/714, 84/647, 85/003, 86/360, 86/364, 87/540, 88/218, 88/449, 88/599, 89/338, 89/438, 89/459, 89/461, 89/684, 90/398, 91/060, 91/328, 91/440, 91/670, 91/671, 91/672, 92/006, 92/007, 92/054, 92/055, 92/106, 93/065, 93/075, 93/089, 94/21. (65) Directives 74/426, 74/149, 77/158, 78/175, 78/1016, 79/116, 79/1034, 80/049, 80/1178, 80/1179, 80/1180, 82/50, 83/572, 85/578, 85/579, 89/460 (see 12th annual report (1994)) no longer appear in the tables; either they have been repealed and replaced by other directives or Regulations or they made only amendments concerning certain Member States following successive enlargements and are no longer material. 97 ENERGY 1. INTRODUCTION In parallel with work on legislation to open up the markets for gas and electricity, the proceedings in the Court of Justice for the monopoly on imports and exports of gas and electricity in five Member States continue to follow their course. At 88%(66), the rate of transposai of directives is up on the rate for 1994. But the rate of transposai for the more recent directives is not satisfactory, and many infringement proceedings are currently in motion. 2. SITUATION SECTOR BY SECTOR 2. 1. Transparency of prices Measures implementing Directive 90/377/EEC (transparency of prices of gas and electricity) have been notified by all the Member States except Spain, which has prepared but not issued implementing measures. The infringement proceedings are running their course. 2. 2. Internal market for electricity and natural gas The proceedings against France concerning Directive 90/547/EEC (transit of electricity) have been terminated following notification of national implementing measures. Notification has now been received from all the Member States except Portugal. In one Member State the Directive was transposed by the technique of requiring firms to sign a written undertaking to comply with the provisions of the Directive, but this procedure is unacceptable in the absence of assurances as to the mandatory and irrevocable nature of the undertaking given and of adequate publicity. The actions brought before the Court regarding exclusive gas and electricity import rights in five Member States (Belgium, Spain, France, Ireland and Italy) are still in motion. 2. 3. Energy efficiency Five Member States (Austria, Portugal, Luxembourg, Italy and Belgium) have still not transposed Directive 92/42/EEC (efficiency requirements for new hot-water boilers). The infringement proceedings regarding Directive 92/75/EEC have been terminated; the Member States were accused only of failing to transpose the directives implementing it. Belgium, Germany, Italy and Luxembourg (66) See 12th Report. 98 have still not transposed Directive 94/2/EC (energy labelling of household electrical refrigerators, freezers and their combinations), which is one of the directives implementing Directive 92/75/EEC. Directive 93/76/EEC (to limit carbon dioxide emissions by improving energy efficiency (Save)) has been transposed by France, Ireland and the Netherlands. 2. 4. Oil and gas Directive 94/22/EC on the conditions for granting and using authorizations for the prospection, exploration and production of hydrocarbons was due to be transposed no later than 1 July 1995. Five Member States (Belgium, Spain, Ireland, Italy and the Netherlands) have still to notify national implementing measures. The Directive is not applicable in Luxembourg. 2. 5. Progress in implementing directives applicable to energy MEMBER STATE Directives applicable on 31. 12. 1995 Directives for which measures have been notified BELGIUM DENMARK GERMANY GREECE SPAIN FRANCE IRELAND ITALY LUXEMBOURG NETHERLANDS AUSTRIA PORTUGAL FINLAND SWEDEN UNITED KINGDOM 17 17 18 17 17 17 17 17 16 17 17 17 15 17 17 13 16 16 16 14 17 16 13 13 16 15 15 13 16 16 % 76 94 89 94 82 100 94 76 81 94 88 88 87 94 94 Note: this table concerns Directives 68/414, 72/425, 73/238, 75/339, 75/405, 76/491, 78/170, 82/885, 85/536, 87/441, 90/377, 90/547, 90/653 (applicable exclusively in Germany), 91/296, 92/42, 93/76, 94/2, 94/22 (not applicable in Luxembourg). Directives 91/296/EEC and 94/22/EC are not relevant to Finland, subject to verification by the Commission. 99 COMMUNITY STAFF The Commission referred to the Court of Justice the case against Spain concerning the transfer of pension rights (Article 11(2) of Annex VIII to the Staff Regulations of Officials of the European Communities). A reasoned opinion was addressed to Greece on the same subject. Denmark used to tax amounts paid into the Community pension scheme under Article 11(2) of Annex VIII to the Staff Regulations, and infringement proceedings were commenced accordingly. Act No 441 (1 June 1994) now exempts them, and the Danish authorities have clarified its scope; the infringement proceedings have been terminated. As for the abolition of the "* quotient conjugal' (aggregation of spouses' income for income tax assessment) as applicable to spouses of Community officials subject to Belgian income tax by virtue of the Act of 28 December 1990, an in-depth study revealed a problem of compatibility with the Belgian Constitution. The Belgian Court of Arbitration held in a case decided on in January 1994 that the relevant provisions were not unconstitutional, and the Commission was able to terminate the proceedings. On a slightly different matter, Belgium has only partly complied with the judgment given by the Court of Justice on 4 April 1990, holding that the 50% reduction in the temporaiy salaries paid to Belgian teachers seconded to the European Schools was incompatible with Community law. Following the commencement of Article 171 proceedings, salaries were reinstated at full rates and arrears were paid The proceedings were terminated. In Spain the law provides for residence permits to be issued to foreign nationals residing there, but Spain refused to issue them to Community staff. Infringement proceedings were commenced and residence permits have been issued since March 1995. The conformity of these permits with Commumty law is still being studied 100 STATISTICAL MATTERS The Member States' obligations in statistical matters are mainly to supply figures at predetermined intervals and in predetermined forms on specific questions. There are no major problems as regards either the application of statistical methods or compliance with deadlines. However, infringement proceedings were commenced against the Spanish and French authorities for failing to submit monthly data on the quantities and average prices of landings of fishery products (Council Regulation (EEC) No 1382/91) and annual catch statistics (Council Regulation (EEC) No 3880/91). 101 ANNEX I SUSPECTED INFRINGEMENTS 1991 to 1995 Table 1. 1 Table 1. 2 Table 1. 3 Origin Suspected infringements classified by sector and Member state Action taken classified by year of registration 102 Table 1. 1. Suspected infringements Origin O CO Year Complaints Parlementiary questions Petitions Cases detected by Commission Total 1991 1992 1993 1994 1995 1051 1185 1040 1145 955 126 45 30 5 30 O 18 33 23 6 4(*) 237 282 247 277 297 1432 1545 1340 1433 1252 (*) Since 1995, parliamentary questions and petitions have been included either in the number of cases detected by the Commission or in the number of complaints, as the case may be. Table 1. 2 SUSPECTED INFRINGEMENTS - Classified by sector and Member State B DK D EL E F IRL I L NL A P FIN S UK Total DGI External Relations DG II Economic and Financial Affairs ;' - •*• t è - ài 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 0 0 0 1 0 0 0 0 1 0 DG ill 1991 28 0 d 0 0 0 0 1 0 0 0 7 Internal Market and Industrial Affairs 1992 20 14 (up to 1992) Industry (1993) DGIV Competition 1993 1994 1995 1991 1992 1993 1994 1995 1 2 1 1 3 2 1 2 5 0 3 4 0 4 0 2 0 0 2 0 0 1 1 0 1 0 63 74 4 12 10 1 6 2 2 4 0 0 0 1 0 1 3 2 1 1 1 0 0 0 0 1 0 2 0 0 41 44 72 39 5 7 1 1 2 7 20 0 1 3 2 5 8 2 3 5 1 0 0 0 0 2 0 0 2 1 0 0 0 0 0 0 0 0 1 0 90 10 71 1 1 6 4 6 5 3 6 8 0 1 0 1 2 2 1 0 0 1 0 0 0 2 0 1 1 0 56 48 7 8 2 4 7 7 4 11 0 0 0 0 0 0 0 0 0 0 5 6 1 1 1 0 3 1 1 0 0 0 1 0 0 0 0 0 0 0 19 20 6 1 4 2 3 3 2 1 0 0 0 0 0 1 1 1 2 0 19 13 1 6 1 2 0 2 1 1 0 2 0 4 0 0 1 0 1 4 0 0 0 0 1 0 0 1 0 0 1 0 28 25 2 2 2 3 2 1 0 1 2 1 4 2 0 9 6 6 10 5 438 382 34 44 38 28 42 38 38 37 B DK D EL E F IRL I L NL A P FIN S UK Total DGV Employment, Industrial Relations and Social Affairs DGVI Agriculture DGVII Transport en DGIX Personnel and Administration DGX Audiovisual Media, Information, Communication and Culture 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 11 7 4 3 7 9 11 4 38 7 1 0 2 1 8 2 0 0 0 2 0 1 0 0 3 2 1 4 0 2 7 6 3 12 10 1 1 0 1 3 0 0 1 0 0 0 1 1 0 0 7 4 3 3 2 13 18 8 29 16 5 3 2 0 16 0 0 0 0 0 0 1 0 0 0 13 4 4 4 1 24 16 6 12 11 2 3 3 2 5 0 0 1 0 0 0 1 1 0 1 5 5 3 2 1 23 47 21 38 3 2 4 4 14 5 1 1 1 0 0 0 1 1 0 0 7 4 11 7 10 48 36 30 67 35 4 3 13 18 9 0 1 0 0 0 0 1 1 0 0 1 3 2 1 2 7 7 5 13 5 1 1 0 0 3 0 0 0 0 0 0 1 0 0 0 6 14 3 14 1 33 48 20 23 28 4 5 3 2 9 0 0 0 0 0 0 1 0 1 0 0 1 0 0 1 3 6 0 3 2 1 2 1 1 5 0 0 0 0 0 0 1 0 0 0 2 2 0 1 3 10 1 5 1 2 2 4 7 8 8 7 7 9 5 5 1 4 3 6 0 0 0 0 0 0 1 0 0 0 41 13 5 3 2 1 0 1 0 0 0 0 0 0 1 0 0 0 2 0 1 7 8 8 24 7 50 37 8 32 14 4 0 1 6 4 0 0 0 0 0 0 1 0 3 1 1 1 0 5 2 4 0 0 1 1 66 54 44 61 44 234 247 120 317 159 33 25 34 48 82 3 2 3 0 2 0 12 4 4 8 B DK D EL E F IRL I L NL A P FIN s UK Total DGXI Environment, Nuclear Safety and Civil Protection DG XIII Telecommunications, Information Market and Exploitation of Research DGXIV : - " * •• Fisheries DGXV Financial Institutions and Company Law (up to 1992) Internal Market and Financial Services (1993) DGXVI Regional Policies = = = = = = = = =^= = = = = = = = = = = = = = = = = = = = = = = = == 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 12 17 10 16 6 7 1 0 0 0 2 0 1 0 0 0 1 7 53 33 36 0 0 0 0 0 8 7 4 1 0 0 0 0 0 0 1 1 1 0 3 5 9 11 13 0 0 0 0 0 63 53 31 60 29 1 0 0 1 1 0 1 1 0 2 9 5 86 76 84 0 0 0 0 0 59 77 46 17 15 83 115 103 89 66 50 49 31 42 31 33 43 36 38 21 0 0 1 0 0 0 1 0 1 1 3 2 58 44 39 0 0 0 0 0 0 0. 1 0 1 1 5 0 2 1 1 3 34 40 56 0 0 0 0 0 1 0 0 0 0 3 2 2 3 1 0 6 99 95 91 0 0 0 0 0 37 63 23 21 12 0 0 1 0 0 0 2 1 0 0 6 5 108 106 0 0 0 0 0 0 2 0 1 0 1 1 6 7 11 65 0 1 0 0 1 0 0 0 0 0 2 2 2 4 6 0 0 0 0 0 0 0 0 0 0 0 2 6 7 7 0 0 0 0 0 7 9 6 4 11 4 1 0 1 0 1 4 0 1 0 0 3 3 25 32 26 0 0 0 0 0 0 0 21 0 24 28 21 16 11 0 0 3 0 2 0 0 0 0 0 0 0 15 19 22 0 0 0 0 0 70 131 64 57 34 0 0 0 0 0 1 2 1 1 0 2 3 42 23 2 0 0 0 0 0 8 4 0 0 0 0 9 30 0 0 455 587 383 359 265 4 0 7 1 7 9 17 7 9 5 29 42 541 493 512 0 1 0 0 1 DGXVII Energy DGXIX Budgets DGXXI Customs and Indirect Taxation DGXXII Human Resources, Education, Training and Youth DG XXIII Enterprise Policy, Distributive Trades, Tourism and Cooperatives B DK D EL E F IRL I L NL A P FIN s UK Total 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 0 0 0 0 1 0 0 0 1 1 7 9 8 4 3 1 1 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 10 5 2 3 0 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 1 8 3 8 1 5 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 8 11 12 3 8 0 0 0 0 0 0 1 0 0 0 1 0 0 1 2 0 1 0 0 0 12 16 5 1 2 0 0 1 1 0 2 0 2 2 1 0 0 0 1 1 0 0 1 0 0 8 11 9 2 13 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 6 0 4 2 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 23 11 17 4 10 2 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 2 0 1 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 5 6 2 3 2 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 8 3 2 2 0 0 0 0 0 0 0 0 0 0 0 1 0 3 0 1 0 0 0 0 4 2 0 0 0 0 0 0 0 1 1 0 0 0 0 0 4 8 9 3 7 0 1 0 2 0 0 1 0 0 2 0 0 3 14 1 1 1 1 3 95 84 82 28 62 8 3 1 4 0 3 2 3 2 2 DGXXIV Consumer Policy Service SOEC Statistical Office LS Legal Service GO SG Secretariat-General Total B DK D EL E F IRL I L NL A P FIN S UK Total 0 0 0 1 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 2 0 1 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 4 11 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 1 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 1 0 2 0 0 2 0 0 0 0 0 0 0 1 5 5 4 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 75 52 177 153 210 221 70 45 181 168 247 195 92 37 149 146 184 209 92 33 185 112 196 246 80 36 171 84 147 210 58 70 52 66 44 2 2 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 7 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 175 11 54 207 25 54 192 14 67 185 18 85 0 0 0 0 0 0 0 0 140 25 65 45 1 4 2 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 73 60 59 59 52 3 3 2 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 173 223 139 156 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 28 52 73 12 35 21 9 0 1 0 2 0 3 0 2 5 0 3 0 0 0 0 0 1432 1545 1340 1433 1252 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 1991 1992 1993 1994 1995 Table 1. 3. Suspected infringements Action taken classified by year of registration o CD Year Total cases Terminated In motion Established infringements 1991 1992 1993 1994 1995 1432 1545 1340 1433 1252 1001 1. 121 882 669 178 125 168 228 560 1019 306 256 230 204 55 ANNEXE ESTABLISHED INFRINGEMENTS 1991 to 1995 Table 2. 1 Table 2. 2 Table 2. 3 Table 2. 4 Table 2. 5 Table 2. 6 Table 2. 7 Established infringements, classified by stage of proceedings and Member State Infringements proceedings classified by Member State, stage reached and legal basis Trend by Member State and year commenced (1991) Trend by Member State and year commenced (1992) Trend by Member State and year commenced (1993) Trend by Member State and year commenced (1994) Trend by Member State and year commenced (1995) 110 Table 2. 1 Established infringements - Classified by stage of proceedings and Member State Article 169 letters Reasoned opinions Referrals to Court Member State B DK D EL E F IRL I L NL A P FIN S UK Total 1991 71 52 60 88 79 54 59 115 64 62 1992 110 46 97 112 129 113 87 138 97 75 1993 98 66 120 125 107 105 91 108 91 75 1994 77 57 90 96 86 90 70 102 64 73 86 116 125 96 63 853 97 98 1217 1209 73 974 1995 80 42 92 113 81 97 67 114 71 59 4 115 2 2 77 1016 1991 46 3 13 48 30 15 27 76 35 23 1992 22 4 18 30 39 10 13 40 21 16 1993 26 3 35 41 28 39 25 49 29 22 1994 41 14 66 85 53 49 47 60 36 20 84 22 40 54 11 411 13 248 15 352 21 546 1995 19 1 25 26 15 17 3 36 9 4 0 22 0 0 15 192 1991 8 1 1 9 2 4 3 24 4 7 1992 6 0 5 4 5 1 9 11 14 5 1993 7 0 4 4 5 2 0 6 11 5 1994 10 0 5 17 9 8 12 12 6 4 2 1 0 5 0 65 3 64 0 44 1 89 1995 6 0 10 12 6 6 6 17 3 0 0 4 0 0 2 72 Table 2. 2. INFRINGEMENT PROCEEDINGS CLASSIFIED BY MEMBER STATE, STAGE REACHED AND LEGAL BASIS Total 1991 Directives No notif Impl. prob. Appl prob Treaties Total Regu lations Decisions 1992 Directives No Impl. not». prob. Appl prob. Treaties Total Regu lations Decisions 1993 Directives No now. Impl. prob. Appl prob. Treaties Total Regu lations Decisions 1994 Directives No notif Impl. prob. Appl. prob Treaties Total Regu lations Decisions 1995 Directives No non. Impl. prob. Appl. prob. Treaties Regu lations Decisions •N2 B DK D EL E F IRL 1 L NL A P FIN S UK TOTAL Art. 169 RO REF Art 169 RO REF Art. 169 RO REF Art. 169 RO REF Art. 169 RO REF Art. 169 RO REF Art. 169 RO REF 71 46 8 62 3 1 60 13 1 88 48 9 79 30 2 54 16 4 59 27 3 Art 169 115 76 24i 64 ! 35 ! 4j 62| 231 7: ! 86 84 2 RO REF Art. 169 RO REF Art. 169 RO REF 1 Art. 169 RO REF Art. 169 RO REF Art. 169 RO REF Art. 169 RO REF Art. 169 RO REF Art. 169 RO REF 7 9 1 4 1 1 12 4 1 18 5 2 12 5 2 8 4 1 8 2 1 31 23 61 4 2 12 4 5 3 1 1 19 2 9 3 2, 1 1 1 2 I 3' 5 3 19 2 2 2 1 1 49 22 3 34 1 36 6 34 37 2 41 \8 30 4 1i 46! 22 2 56 40 j 15, 35 29 ; 3J 39 141 5j i 64 79 2 10 15 1 13 1 11 3 110 22 6 46 4 0 97 18 5 17 112 4 5 17 4 30 4 129 39 5 14 113 6 1 4 1 25 8 6 2 1 9 3 1 10 1 87! 131 9 138i 40, 11 97 21 14 75{ 16 5| j 116 22 1 84 13 2 39 2 77 4 1 93 13 1 89 20 1j 67 2 78 121 8! 87 10 5| 90| 13! io! 61 7i 5J j i 88 18 1 1 6 2 1 4 1 3 3 1 4 4 4 1 1 1 1 1 2 7 1 15 2 1 2 10 5 3 7 7 1 16 4 2 25 1 4 1 27 13 4 5 1 8 5 13 2 1 10 6 3 5 2 4 7 8 10 1 21 12 1 17 8 1 1 20 16 1 1 7 2 5 2 98 26 7 66 3 0 120 35 4 73 16 5 63 1 95 22 125 104 41 4 107 28 6 105 39 2 91 25i °i 108 491 6 91 29 11 75 22 6 33 4 80 19 3 82 22 85 17 75 31 3 84 28 5 64J 14| 1 1 3 3 1 2 3 1 1 1 2 2 2 4 8, 1j 1! H j 1 2 8 1 125 40 0 100 35 8 1 15 2 15 5 12 2 15 5 11 7 1 3 2 16 8 1 2 1 8 3 3 14 2 9 7 2 1 2 7 7 2 6 6 11 3 1 10. 8 1 1 2 9 9 1 4 6 2 3 1 3 2 77 41 10 57 14 0 90 66 6 96 85 17 66 63 9 90 49 8 70 47 12 102 60 12 64 36 6 73 20 4 58 36 6 51 12 63 58 2 72 80 12 62 48 8 64 38 5 62 45 11 66 56j 5i 58) 36 j 5 49j 171 2 4 1 1 1 5 1 2 1 2 1 2 2 2 4 3 11 4 1 2 19 3 2 20 3 2 14 4 11 6 3 21 2 4 20 3 1 96 64 6 70 j 49 5 5 1 12 3 11 3 10j 2 4 2 3 2 3 4 1 4 3 9 1 1 13 4 3 3 2 1 80 19 6 42 1 0 92 25 10 113 26 12 81 15 6 97 17 6 67 3 6 13 114 3 2 1 1 1 9 1 36 17 71 9 3 59 4 0 4 0 0 115 22 4 2 0 0 2 0 0 77 16 2 59 15 4 36 1 63 15 7 90 14 8 61 9 5 70 8 4 59 3i 6I ! 85i 16 i 13 66! 6 3 47 1 98 15 4 3 1 5 4 2 1 1 3 8 1 1 6 14 5 1 13 8 2 12 4 1 11 5 1] 3 I 31 l| i 1i 1 1 I i 4 1 10 10 2 3 1 8l 2J i 2| ! 9 4 1 1 4 2 10 3 10 1 9 4 2 7 2 13 4 2 4 16 9 2 2 1 3 2 4 2 1 1 7 2 63 11 0 853 411 66 40 7 504 279 33 7 70 17 8 1 2 128 64 15 15 2 97 13 3 151 1217 51 9 248 94 82 12 935 126 33 4 39 11 5 6 2 138 38 17 5 1 1 98 16 0 105 1209 73 9 362 44 82 6 987 244 21 2 3 32 18 4 8 3 121 38 5 6 3 69 52 14 73 21 1 974 646 69 57 21 732 496 61 1 32 8 2 3 10 3 65 11 2 799 114 56 1 23 8 3 143 28 10 67 14 16 1016 162 72 105 42 7 89 28 6 Table 2. 3. Established infringements - Trend by Member State and year case commenced 1991 Cases Term, after In motion aftei Reasoned Terminated In motion Referrals In motion Withdrawn Judgments For For CO Total B DK D EL E F IRL I L NL P UK Art. 169 letter 507 39 46 40 53 35 40 35 61 32 44 41 41 853 71 52 60 88 79 54 59 115 64 62 86 63 Art. 169 letter 17 2 2 2 2 1 2 1 2 1 2 opinions 318 31 4 18 28 37 13 21 52 32 17 44 21 after R. O. 218 22 3 14 12 32 8 13 29 15 9 42 19 after R. O. 99 9 1 4 16 5 4 8 23 17 8 2 2 after referrals 31 1 70 4 2 11 1 2 1 5 7 1 3 15 3 2 7 12 15 7 1 1 18 1 2 1 5 8 1 Commission 21 3 22 3 Member States 1 2 2 5 3 5 1 1 2 2 5 2 5 1 1 1 Table 2. 4. Established infringements - Trend by Member State and year case commenced 1992 Cases Term, after In motion after Reasoned Terminated In motion Referrals In motion Withdrawn Judgments For For 0-* Total B DK D EL E F IRL I L NL P UK Art. 169 letter 768 74 42 53 65 91 61 58 67 66 53 63 75 1217 110 46 97 112 129 113 87 138 97 75 116 97 Art. 169 letter 36 7 1 2 1 4 4 2 8 1 4 2 opinions 396 26 3 41 45 32 44 26 65 30 20 49 15 after R. O. 234 14 3 27 28 14 21 13 35 20 13 35 11 after R. O. 155 12 after referrals 28 4 106 11 14 17 18 21 12 27 10 7 13 4 7 15 9 12 12 18 9 5 7 1 4 5 2 3 5 3 1 1 51 2 3 5 3 12 3 8 6 2 7 Commission 27 5 30 5 Member States 0 2 6 4 6 5 2 5 4 6 5 2 Table 2. 5. Established infringements - Trend by Member State and year case commenced 1993 Cases Term, after In motion after Reasoned Terminated In motion Referrals In motion Withdrawn Judgments For For Total B DK D EL E F IRL I L NL P UK Art. 169 letter 750 56 60 71 57 68 65 54 52 62 56 75 74 1209 98 66 120 125 107 105 91 108 91 75 125 98 Art. 169 letter 92 15 1 7 6 7 8 9 15 3 4 10 7 opinions 360 27 5 41 61 31 31 27 39 27 14 41 16 after RO. 227 13 5 26 42 18 18 18 24 20 11 26 6 after R. O. 133 14 after referrals 44 2 73 4 15 19 13 13 9 15 7 3 15 10 11 9 11 6 8 12 3 1 6 2 4 5 10 1 7 9 2 2 2 22 2 7 3 1 2 1 1 1 4 Commission 7 Member States 1 8 1 1 1 3 2 1 1 3 2 1 Table 2. 6. Established infringements - Trend by Member State and year case commenced 1994 Cases Term, after In motion after Reasoned Terminated In motion Referrals In motion Withdrawn Judgments For For Total B DK D EL E F IRL I L NL P UK Art. 169 letter 491 25 50 35 37 38 43 43 39 38 54 49 40 974 77 57 90 96 86 90 70 102 64 73 96 73 Art. 169 letter 230 28 2 26 20 24 30 12 24 12 13 25 14 opinions 252 25 5 29 38 23 18 14 40 15 7 21 17 after R. O. 98 10 5 9 19 13 5 5 4 11 5 7 5 after R. O. 154 15 after referrals 32 1 32 1 0 Commission 0 Member States 0 0 20 19 10 13 9 36 4 2 14 12 1 7 6 13 1 7 6 13 4 4 Table 2. 7. Established infringements - Trend by Member State and year case commenced 1995 Cases Term, after In motion aftei Reasoned Terminated In motion Referrals In motion Withdrawn Judgments For For Total B DK D EL E F IRL I L NL A P FIN S UK Art. 169 letter 290 17 19 20 36 24 28 20 20 22 21 31 32 1016 80 42 92 113 81 97 67 114 71 59 4 115 2 2 77 Art. 169 letter 716 65 22 74 76 56 70 47 91 48 36 4 82 2 2 41 opinions 11 after R. O. 0 after R. O. 11 after referrals 0 0 0 Commission 0 Member States 0 0 1 1 1 1 3 1 1 1 1 1 1 1 1 3 1 1 _ 1 1 ANNEX III INFRINGEMENTS OF TREATIES, REGULATIONS AND DECISIONS 118 EXTERNAL RELATIONS GREECE NUMBER LEG BASE TITLE DD. REF CASE 94/2083 157E005;157E0030;157E034;157E113;369R2603;378R2112;382 R0288; 392R2913;392R3698 RESTRICTIONS ON TRADE WITH FYROM DATE OF REFERRAL : 94/04/25 C-94/120:C-94/120R ECONOMIC AND FINANCIAL AFFAIRS PORTUGAL NUMBER LEG BASE TITLE DD RO COMPETITION BELGIUM NUMBER LEG. BASE TITLE DD RO DD. REF CASE DATE JUDGMENT JUFOR SPAIN NUMBER LEG. BASE TITLE DD. RO DD. REF CASE 91/2097 157E052;157E058;157E221 DISCRIMINATION CONCERNING FOREIGN INVESTMENT IN PRIVATIZED COMPANIES DATE REASONED OPINION SENT: 95/05/29 89/0030 157E171; 384D0508 AID FOR IDEALSPUN/BEAULIEU DATE REASONED OPINION SENT: 89/08/30 DATE OF REFERRAL : 89/12/18 C-89/375 DATE OF JUDGMENT : 91/02/19 COMMISSION 91/0755 157E030;157E034;157E037;157E048 EXCLUSIVE RIGHTS IN RESPECT OF ELECTRICITY DATE REASONED OPINION SENT: 92/11/26 DATE OF REFERRAL : 94/06/15 C-94/160 119 FRANCE NUMBER LEG BASE TITLE DD. RO DD. REF CASE IRELAND NUMBER LEG. BASE TITLE DD. RO DD. REF CASE ITALY NUMBER LEG. BASE TITLE DD. RO DD. REF CASE NUMBER LEG BASE TITLE DD RO NUMBER LEG BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO DD. REF CASE 91/0751 157E037;157E030;157E034 EXCLUSIVE RIGHTS IN RESPECT OF GAS + ELECTRICITY DATE REASONED OPINION SENT: 92/11/26 DATE OF REFERRAL : 94/06/14 C-94/159 91/0756 157E030;157E034;157E037 EXCLUSIVE RIGHTS IN RESPECT OF ELECTRICITY DATE REASONED OPINION SENT : 92/11/26 DATE OF REFERRAL : 94/06/13 C-94/156 91/0757 157E030;157E034;157E037 EXCLUSIVE RIGHTS IN RESPECT OF ELECTRICITY DATE REASONED OPINION SENT: 92/11/26 DATE OF REFERRAL : 94/06/15 C-94/158 (ASSISTANCE TO COMMISSION (ASSISTANCE TO COMMISSION 92/2028 387R3975 AIR TRANSPORT INQUIRIES) DATE REASONED OPINION SENT: 95/05/18 92/2035 368R4056 SEA TRANSPORT INQUIRIES) DATE REASONED OPINION SENT: 95/06/12 93/2054 368R1017 SURFACE TRANSPORT DATE REASONED OPINION SENT: 95/12/21 93/2181 157E003;157E005;157E085 CUSTOMS FORWARDING AGENTS DATE REASONED OPINION SENT: 95/06/21 DATE OF REFERRAL : 96/02/09 C-96/035 120 NETHERLANDS NUMBER LEG. BASE TITLE DD. RO DD. REF CASE 91/0759 157E030;157E037 EXCLUSIVE RIGHTS IN RESPECT OF ELECTRICITY DATE REASONED OPINION SENT: 92/11/26 DATE OF REFERRAL : 94/06/13 C-94/157 EMPLOYMENT AND SOCIAL POLICY BELGIUM NUMBER LEG. BASE TITLE DD. RO NUMBER LEG BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JU FOR DATE 171 LETTER 87/0207 157E048;368R1612 N A T I O N A L I TY TELECOMMUNICATIONS AND RADIO-TELEVISION DATE REASONED OPINION SENT: 92/08/06 R E Q U I R E M E NT - P O S T S, 88/0364 157E048;368R1612;371R1408;683J0249;684J0122;683J0261;673 J0187;674J0039;675J0007;157E0171 COVERT DISCRIMINATION AS REGARDS WELFARE BENEFITS AND SERVICES DATE REASONED OPINION SENT: 89/08/28 DATE OF REFERRAL : 90/10/23 C-90/326 DATE OF JUDGMENT : 92/11/10 COMMISSION DATE ART 171 LETTER SENT : 95/07/03 NUMBER LEG BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JUFOR DATE 171 LETTER 89/0457 157E007;157E128;157E171 STUDY GRANTS - DISCRIMINATION ON THE BASIS OF NATIONALITY DATE REASONED OPINION SENT: 91/03/21 DATE OF REFERRAL : 93/02/17 C-93/047 DATE OF JUDGMENT : 94/05/03 COMMISSION DATE ART 171 LETTER SENT : 95/10/03 NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO 90/0404 157E007;157E048;157E052;368R1612 DISCRIMINATION REGARDING STUDY GRANTS FOR WORKERS DATE REASONED OPINION SENT: 93/05/17 91/0573 157E048;368R1612 ACCESS TO EMPLOYMENT IN SEA AND AIR TRANSPORT DATE REASONED OPINION SENT: 92/08/06 121 NUMBER LEG. BASE TITLE DD. RO DD. REF CASE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE GERMANY NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO 91/0574 157E048;368R1612 ACCESS TO EMPLOYMENT IN DISTRIBUTION OF WATER, GAS AND ELECTRICITY DATE REASONED OPINION SENT: 92/08/06 DATE OF REFERRAL : 94/06/22 C-94/173 91/2017 157E045;368R1612 EQUAL TREATMENT - ACCESS TO EMPLOYMENT - DISCRIMINATION AGAINST CHILDREN OF MIGRANT WORKERS DATE REASONED OPINION SENT: 93/08/13 DATE OF REFERRAL : 94/10/13 C-94/278 87/0282 157E048;368R1612 EQUAL TREATMENT - TAX ADVANTAGES DATE REASONED OPINION SENT: 89/03/01 89/0116 368R1612;157E048 TAXATION OF NON-RESIDENTS DATE REASONED OPINION SENT: 92/02/19 90/0179 157E048;368R1612;157E052;157E059 EQUAL TREATMENT - TAX ADVANTAGES DATE REASONED OPINION SENT: 94/05/04 NUMBER LEG. BASE TITLE HOUSE DD. RO 89/5227 157E048;368R1612 NATIONALITY DISCRIMINATION IN RESPECT OF EMPLOYMENT AS CELLIST AT THE ATHENS OPERA D A TE SENT: 93/03/03 R E A S O N ED O P I N I ON DD. REF CASE NUMBER LEG. BASE TITLE DD RO DATE OF REFERRAL : 94/10/26 C-94/290 90/4816 157E048; 368R1612 NATIONALITY DISCRIMINATION ASSISTANTS DATE REASONED OPINION SENT: 93/08/03 - LANGUAGE 122 DD. REF CASE DATE OF JUDGMENT JUFOR COMMISSION DATE OF REFERRAL : 94/04/27 C-94/123 DATE OF JUDGMENT 95/06/01 NUMBER LEG BASE TITLE DD. RO DD. REF CASE NUMBER LEG BASE TITLE DD. RO DD. REF CASE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE NUMBER LEG BASE TITLE DD. RO DD. REF CASE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE 91/0583 368R1612;157E048; NATIONALITY DISCRIMINATION - ACCESS EMPLOYMENT IN PUBLIC ELECTRICITY COMPANY DATE REASONED OPINION SENT: 92/07/13 DATE OF REFERRAL : 94/10/26 C-94/290 TO 91/0584 368R1612;157E048; NATIONALITY DISCRIMINATION - ACCESS TO EMPLOYMENT IN PUBLIC SERVICE - DOCTORS IN PUBLIC HOSPITALS DATE REASONED OPINION SENT: 92/07/13 DATE OF REFERRAL : 94/10/26 C-94/290 91/0585 157E048;368R1612; ACCESS TO EMPLOYMENT IN PUBLIC EDUCATION DATE REASONED OPINION SENT: 92/07/13 DATE OF REFERRAL : 94/10/26 C-94/290 91/0586 157E048;368R1612; ACCESS TO EMPLOYMENT IN SEA AND AIR TRANSPORT DATE REASONED OPINION SENT: 92/07/13 DATE OF REFERRAL : 94/10/26 C-94/290 91/0587 157E048;368R1612; ACCESS TO EMPLOYMENT IN SURFACE TRANSPORT DATE REASONED OPINION SENT: 92/07/13 DATE OF REFERRAL : 94/10/26 C-94/290 91/0588 157E048;368R1612; ACCESS TO EMPLOYMENT IN CIVILIAN RESEARCH DATE REASONED OPINION SENT: 92/07/13 DATE OF REFERRAL : 94/10/26 C-94/290 123 NUMBER LEG. BASE TITLE DD RO DD. REF CASE NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO SPAIN NUMBER LEG. BASE TITLE DD. RO DD. TERM NUMBER LEG. BASE TITLE DD. RO DD. TERM NUMBER LEG BASE TITLE DD. RO DD. TERM FRANCE NUMBER LEG. BASE TITLE DD RO IN P O S T S, TO E M P L O Y M E NT IN OTHER MEMBER STATES 91/0589 157E048;368R1612; A C C E SS TELECOMMUNICATIONS AND RADIO-TELEVISION DATE REASONED OPINION SENT: 92/07/13 DATE OF REFERRAL : 94/10/26 C-94/290 91/4957 157E048 PERIOD WORKED CALCULATION OF SENIORITY DATE REASONED OPINION SENT: 95/05/18 92/4760 157E048;157E052;157E059;368R1612 NATIONALITY DISCRIMINATION - STATUS OF FAMILLE NOMBREUSE DATE REASONED OPINION SENT: 95/05/18 93/4236 157E048 ACCESS TO EMPLOYMENT AND TERMS OF EMPLOYMENT FOR SPECIALIST DOCTORS DATE REASONED OPINION SENT 95/06/19 91/0625 368R0612;157E048;157E007; NATIONALITY DISCRIMINATION - PUBLIC EDUCATION DATE REASONED OPINION SENT: 92/08/06 95/12/13 : TERMINATION DECISION 91/0628 157E048;368R1612; ACCESS TO EMPLOYMENT IN PUBLIC HEALTH DATE REASONED OPINION SENT: 92/08/06 95/12/13 : TERMINATION DECISION 91/0629 157E048;368R1612; ACCESS TO EMPLOYMENT IN CIVILIAN RESEARCH DATE REASONED OPINION SENT 92/08/06 95/12/13 : TERMINATION DECISION 90/0284 157E048;368R1612;157E005 ACCESS TO EMPLOYMENT ON BOARD SHIP DATE REASONED OPINION SENT: 91/04/17 124 NUMBER LEG BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD RO NUMBER LEG. BASE TITLE DD. RO ITALY NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD RO NUMBER LEG. BASE TITLE DD. RO 91/0233 157E048;368R1612; ACCESS TO EMPLOYMENT WATERWAY TRANSPORT DATE REASONED OPINION SENT: 92/08/06 91/2373 368R1612 REFUSAL TO GRANT EDUCATION ALLOWANCE DATE REASONED OPINION SENT: 94/08/04 SEA AND IN INLAND 93/4403 368R1612 CALCULATION OF SUPPLEMENTARY RETIREMENT BENEFITS FOR FRONTIER WORKERS DATE REASONED OPINION SENT: 95/07/28 87/0212 157E048;368R1612 NATIONALITY REQUIREMENT EMPLOYMENT IN VARIOUS PUBLIC ESTABLISHMENTS DATE REASONED OPINION SENT: 92/11/09 FOR ACCESS TO FOR ACCESS TO 87/0213 157E048;368R1612 NATIONALITY REQUIREMENT EMPLOYMENT IN PUBLIC EDUCATION DATE REASONED OPINION SENT: 92/10/15 91/0576 368R1612;157E048; NATIONALITY DISCRIMINATION TO EMPLOYMENT IN PUBLIC GAS AND WATER COMPANIES DATE REASONED OPINION SENT: 92/10/15 - ACCESS 91/0577 157E048;368R1612; A C C E SS TELECOMMUNICATIONS AND RADIO-TELEVISION DATE REASONED OPINION SENT: 92/10/15 E M P L O Y M E NT TO IN P O S T S? 91/0578 157E048;368R1612; ACCESS TO EMPLOYMENT IN AIR TRANSPORT DATE REASONED OPINION SENT: 92/10/15 91/0579 157E048;368R1612; ACCESS TO EMPLOYMENT IN CIVILIAN RESEARCH DATE REASONED OPINION SENT: 92/10/15 125 NUMBER LEG. BASE TITLE DD RO NUMBER LEG BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD RO NUMBER LEG BASE TITLE DD. RO 91/0580 157E048;368R1612; ACCESS TO EMPLOYMENT IN URBAN AND REGIONAL TRANSPORT DATE REASONED OPINION SENT: 92/10/15 91/0581 157E048;368R1612; ACCESS TO EMPLOYMENT WATERWAY TRANSPORT DATE REASONED OPINION SENT: 92/11/09 IN SEA AND INLAND 91/0582 157E048;368R1612; ACCESS TO EMPLOYMENT IN PUBLIC HEALTH DATE REASONED OPINION SENT: 92/10/15 92/4660 368R1612;157E048 CONDITIONS OF EMPLOYMENT OF TEACHERS DATE REASONED OPINION SENT: 93/12/31 LUXEMBOURG NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JUFOR DD. TERM : NUMBER LEG. BASE TITLE DD RO DD. REF CASE DATE JUDGMENT JUFOR 87/0420 157E048;368R1612 RESIDENCE REQUIREMENTS FOR ELIGIBILITY PRENATAL AND MATERNITY BENEFITS DATE REASONED OPINION SENT: 90/07/06 DATE OF REFERRAL : 91/04/15 C-91/111 FOR DATE OF JUDGMENT : 93/03/10 COMMISSION 95/12/13 TERMINATION DECISION 89/0408 368R1612; 157E048; INCOME TAX ACT: TAXATION OF NON-RESIDENTS DATE REASONED OPINION SENT: 92/02/04 DATE OF REFERRAL : 94/06/03 C-94/151 DATE OF JUDGMENT : 95/10/26 COMMISSION NUMBER LEG. BASE TITLE DD RO DD. REF CASE 89/0521 157E048;368R1612 NATIONALITY DISCRIMINATION DATE REASONED OPINION SENT: 90/10/23 DATE OF REFERRAL : 92/04/13 C-92/118 126 DATE JUDGMENT JUFOR DD. TERM : DATE OF JUDGMENT : 94/05/18 COMMISSION 95/12/13 : TERMINATION DECISION NUMBER LEG. BASE TITLE DD RO DD. REF CASE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE NUMBER LEG BASE TITLE DD. RO DD. REF CASE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE 91/0222 157E048;368R1612; ACCESS TO EMPLOYMENT IN SURFACE TRANSPORT DATE REASONED OPINION SENT: 92/07/14 DATE OF REFERRAL : 93/12/17 C-93/473 91/0223 157E048;368R1612; ACCESS TO EMPLOYMENT IN CIVILIAN RESEARCH DATE REASONED OPINION SENT: 92/07/14 DATE OF REFERRAL : 93/12/17 C-93/473 91/0224 157E048;368R1612; ACCESS TO EMPLOYMENT IN PUBLIC EDUCATION DATE REASONED OPINION SENT: 92/07/14 DATE OF REFERRAL : 93/12/17 C-93/473 91/0225 157E048;368R1612; ACCESS TO EMPLOYMENT TELECOMMUNICATIONS DATE REASONED OPINION SENT: 92/07/14 DATE OF REFERRAL : 93/12/17 C-93/473 IN POSTS AND 91/0226 157E048;368R1612; ACCESS TO EMPLOYMENT IN DISTRIBUTION OF WATER, GAS AND ELECTRICITY DATE REASONED OPINION SENT: 92/07/14 DATE OF REFERRAL : 93/12/17 C-93/473 91/0228 368R1612;157E048; NATIONALITY DISCRIMINATION EMPLOYMENT - NURSES IN PUBLIC HOSPITALS DATE REASONED OPINION SENT: 92/07/14 DATE OF REFERRAL : 93/12/17 C-93/473 - ACCESS TO 127 UNITED KINGDOM NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO 92/2247 157E048;368R1612 NATIONALITY DISCRIMINATION EDUCATION DATE REASONED OPINION SENT: 95/11/14 - UNIVERSITY 94/4092 157E005;157E048;157E051 DISSOLUTION OF GIBRALTAR PENSION FUND DATE REASONED OPINION SENT: 95/10/31 AGRICULTURE GERMANY NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JUFOR DD. TERM NUMBER LEG. BASE TITLE : DD. RO NUMBER LEG. BASE TITLE DD. RO DD. REF CASE GREECE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE 90/0375 157E030;381R3796 IMPORTS OF LIVE SOFT-WATER CRAYFISH DATE REASONED OPINION SENT: 90/12/15 DATE OF REFERRAL : 93/03/31 C-93/131 DATE OF JUDGMENT : 94/07/13 COMMISSION 95/06/28 : TERMINATION DECISION 90/5328 387R0823;387R3929;157E040 MAXIMUM YIELD PER HECTARE IN WINE-GROWING. PRIVILEGES FOR COOPERATIVES (R) DATE REASONED OPINION SENT: 95/07/03 93/2097 157E030;391L0497 BARRIERS TO IMPORTS OF BOARS FROM DENMARK DATE REASONED OPINION SENT: 94/10/05 DATE OF REFERRAL : 96/03/27 C-96/102 85/0101 380R1837;3fc2R0019;383R0020;157E113;157E030;157E171 PRICES OF SHEEP AND GOATS HUNGARY DATE REASONED OPINION SENT: 86/02/25 DATE OF REFERRAL : 87/04/15 C-87/127 IMPORTED FROM 128 CE NUMBER LEG. BASE TITLE DD. RO DD. TERM NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO DD. REF CASE IRELAND NUMBER LEG. BASE TITLE : DD. RO DD. REF CASE DATE JUDGMENT JUFOR ITALY 91/4811 389R1576; SALE OF A BEVERAGE UNDER THE NAME OF WHISKY, CONTRARY TO REGULATIONS DATE REASONED OPINION SENT: 93/10/11 95/06/28 : TERMINATION DECISION 92/4664 391R1697;368R0804 DEFINITIVE ABANDONMENT OF MILK PRODUCTION DATE REASONED OPINION SENT: 95/01/19 94/4466 157E030 BARRIERS TO IMPORTS OF SPANISH STRAWBERRIES DATE REASONED OPINION SENT: 95/05/05 DATE OF REFERRAL : 95/08/04 C-95/265 88/0449 377L0504;388D0124;157E030;157E171 IMPORT RESTRICTIONS - SEMEN OF BULLS AND PIGS FOR ARTIFICIAL INSEMINATION DATE REASONED OPINION SENT: 89/10/12 DATE OF REFERRAL : 91/09/17 C-91/235 DATE OF JUDGMENT : 92/11/17 COMMISSION NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JU FOR DD. TERM : • 88/0464 157E030; 157E036; 373R1641;381R3796 RESTRICTIONS ON FISH IMPORTS DATE REASONED OPINION SENT: 90/07/02 DATE OF REFERRAL : 91/09/11 C-91/228 DATE OF JUDGMENT : 93/05/25 COMMISSION 95/12/13 : TERMINATION DECISION NUMBER LEG. BASE TITLE DD. RO 91/4287 366R0136 MINIMUM PRICES FOR VIRGIN OLIVE-OIL CAKES DATE REASONED OPINION SENT: 93/10/05 DATE REASONED OPINION SENT-BIS : 95/03/24 129 DD. REF CASE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE OF REFERRAL C-95/327 95/10/17 92/2141 390R1186 TERMINATION DECISION CARCASSES OF ADULT BOVINE ANIMALS DATE REASONED OPINION SENT: 95/01/20 DATE OF REFERRAL : 95/10/17 C-95/328 UNITED KINGDOM NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JUFOR 91/0541 157E171 MMB-RESTRICTIONS ON FREEDOM TO SELL MILK PRODUCED DATE REASONED OPINION SENT: 91/09/23 DATE OF REFERRAL : 92/02/13 C-92/040 DATE OF JUDGMENT : 94/03/24 COMMISSION NUMBER LEG. BASE TITLE DD. RO 92/2209 368R0804;387R1898; 388D0566. NON - CONFORMITY OF DESIGNATION "SOYA DATE REASONED OPINION SENT: 93/05/11 MILK" TRANSPORT BELGIUM NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO 90/0354 157E007;157E048;157E052;157E058 MERCHANT VESSELS - FLAG RIGHTS DATE REASONED OPINION SENT: 93/06/04 91/0600 386R4055 CARGO-SHARING ARRANGEMENTS AGREEMENT DATE REASONED OPINION SENT: 93/10/11 IN BLEU/TOGO 91/0601 386R4055 CARGO-SHARING ARRANGEMENTS IN AGREEMENT WITH ZAIRE DATE REASONED OPINION SENT: 93/10/11 130 NUMBER LEG. BASE TITLE DD RO DENMARK NUMBER LEG. BASE TITLE DD. RO GREECE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE SPAIN NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO FRANCE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE NUMBER LEG. BASE TITLE 93/2101 386R4055 CARGO-SHARING AGREEMENTS WITH NON-MEMBER COUNTRIES IN SEA TRANSPORT DATE REASONED OPINION SENT: 95/12/21 90/0355 157E007;157E048;157E052;157E058;157E221;157E005 MERCHANT VESSELS - FLAG RIGHTS DATE REASONED OPINION SENT: 94/02/21 90/0356 157E007;157E048;157E052;157E221;157E005 MERCHANT VESSELS - FLAG RIGHTS DATE REASONED OPINION SENT: 93/07/27 DATE OF REFERRAL : 96/03/07 C-96/062 91/0469 386R4055 FREEDOM TO PROVIDE SERVICES IN SEA TRANSPORT SPAIN AND GABON DATE REASONED OPINION SENT: 94/01/19 93/2100 386R4055 CARGO-SHARING AGREEMENTS WITH NON-MEMBER COUNTRIES IN SEA TRANSPORT DATE REASONED OPINION SENT: 95/12/06 89/0306 157E007; 157E048; 157E052;157E058;157E221 MERCHANT VESSELS - FLAG RIGHTS DATE REASONED OPINION SENT: 93/10/11 DATE OF REFERRAL : 94/12/22 C-94/334 90/0469 386R4055 TAX DISCRIMINATION SEA TRANSPORT - DOCK DUES 131 DD RO DD. REF CASE DATE JUDGMENT JUFOR DD. TERM : DATE REASONED OPINION SENT: 93/01/25 DATE OF REFERRAL : 93/08/03 C-93/381 DATE OF JUDGMENT : 94/10/05 COMMISSION 95/06/28 : TERMINATION DECISION NUMBER LEG. BASE TITLE DD RO IRELAND NUMBER LEG BASE TITLE DD. RO ITALY NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD RO LUXEMBOURG NUMBER LEG. BASE TITLE DD RO 93/2099 386R4055 RESERVATION OF FRENCH FLAG RIGHTS TRANSPORT OF COAL DATE REASONED OPINION SENT: 95/06/26 FOR 90/0357 157E007;157E048;157E052;157E058;157E005 MERCHANT VESSELS - FLAG RIGHTS DATE REASONED OPINION SENT: 93/06/18 DATE REASONED OPINION SENT-BIS : 94/08/04 91/2148 157E007;157E048;157E052;157E058;157E221; MERCHANT VESSELS - FLAG RIGHTS DATE REASONED OPINION SENT: 93/06/30 93/2105 386R4055 CARGO-SHARING AGREEMENTS WITH NON-MEMBER COUNTRIES IN SEA TRANSPORT DATE REASONED OPINION SENT: 95/12/21 93/2102 386R4055 CARGO-SHARING AGREEMENTS WITH NON-MEMBER COUNTRIES IN SEA TRANSPORT DATE REASONED OPINION SENT: 95/12/21 132 NETHERLANDS NUMBER LEG. BASE TITLE DD. RO PORTUGAL NUMBER LEG. BASE TITLE DD. RO 90/0358 157E007; 157E048; 157E052; 157E058; 157E221 ; 157E005 MERCHANT VESSELS - FLAG RIGHTS DATE REASONED OPINION SENT: 93/06/30 93/2103 386R4055 CARGO-SHARING AGREEMENTS WITH NON-MEMBER COUNTRIES IN SEA TRANSPORT DATE REASONED OPINION SENT: 95/12/06 COMMUNITY STAFF BELGIUM NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JUFOR DATE 171 LETTER DATE RO SENT 171 DD. REF 2 CASE 2 DATE JUDGMENT 2 JU FOR 2 : 84/0303 157F/PRO/PRI;157E171; TRANSFER OF PENSION RIGHTS DATE REASONED OPINION SENT: 79/07/24 DATE OF REFERRAL : 80/06/09 C-80/137 DATE OF JUDGMENT : 81/10/19 COMMISSION DATE ART 171 LETTER SENT : 84/07/31 DATE ART 171 REASONED OPINION SENT 85/05/08 DATE OF REFERRAL-171 : 85/11/28 C-85/383 DATE OF JUDGMENT-171 : 89/10/03 COMMISSION NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JUFOR DATE 171 LETTER DD. TERM 88/0065 157E005;157E171 50% REDUCTION IN REMUNERATION PAID BY THE BELGIAN ADMINISTRATION TO SECONDED TEACHERS DATE REASONED OPINION SENT: 88/07/07 DATE OF REFERRAL : 89/01/09 C-89/006. DATE OF JUDGMENT : 90/04/05 COMMISSION DATE ART 171 LETTER SENT : 92/10/13 95/12/13 : TERMINATION DECISION 133 GREECE NUMBER LEG. BASE TITLE DD RO SPAIN NUMBER LEG. BASE TITLE DD. RO ENVIRONMENT GERMANY NUMBER LEG BASE TITLE DD. RO FISHERIES BELGIUM NUMBER LEG. BASE TITLE DD. RO DENMARK NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO 93/2139 368R0259 TRANSFERS TO COMMUNITY PENSION SCHEME DATE REASONED OPINION SENT: 95/08/14 91/2315 157E005;157E011 TRANSFER OF PENSION RIGHTS DATE REASONED OPINION SENT: 93/12/13 91/0216 382R3626; TRADE IN ENDANGERED SPECIES DATE REASONED OPINION SENT: 93/03/31 90/0248 157E007;157E034;157E048;157E052;157E058;381R3796;383R0 170 FISHING VESSELS - LICENSING AND FLAG RIGHTS DATE REASONED OPINION SENT: 93/03/23 90/0296 157E007;157E048;157E052;157E067;157E221 FISHING VESSELS - LICENSING AND FLAG RIGHTS DATE REASONED OPINION SENT: 94/02/21 90/0481 383R0170;387R3977;387R2241; FAILURE TO INSPECT - OVERFISHING 1988 DATE REASONED OPINION SENT: 92/10/28 134 GREECE NUMBER LEG. BASE TITLE DD. RO SPAIN NUMBER LEG. BASE TITLE DD. RO NUMBER LEG BASE TITLE DD. RO DD. TERM FRANCE NUMBER LEG. BASE TITLE 90/0328 157E007;157E048;157E052;157E058;157E221;383R0170 FISHING VESSELS - LICENSING AND FLAG RIGHTS DATE REASONED OPINION SENT: 93/07/27 88/0356 382R2057;387R2241; DUTY TO COOPERATE - FISHERIES INSPECTION MONITORING DATE REASONED OPINION SENT: 89/11/20 A ND 90/0482 383R3598;383R3599;382R3191;383R1501 FAILURE TO NOTIFY MARKET INFORMATION - COMMON ORGANIZATION OF MARKET IN FISHERIES PRODUCTS DATE REASONED OPINION SENT: 95/08/11 95/12/13 : TERMINATION DECISION 84/0445 382R2057;383R0171;157E171 FISHERIES; FAILURE TO MONITOR COMPLIANCE WITH TECHNICAL CONSERVATION MEASURES DATE REASONED OPINION SENT: 86/11/18 DATE OF REFERRAL :-88/02/29 C-88/064 DD. RO DD. REF CASE DATE JUDGMENT JUFOR DATE 171 LETTER : DATE ART 171 LETTER SENT : 93/10/11 DATE OF JUDGMENT : 91/06/11 COMMISSION NUMBER LEG. BASE TITLE DD. RO DD. REF CASE NUMBER LEG. BASE TITLE DD. RO 90/0249 157E007;157E048;157E052;157E058;157E221;157E171;368R16 12;383R0170 FISHING VESSELS - LICENSING AND FLAG RIGHTS DATE REASONED OPINION SENT: 93/10/18 DATE OF REFERRAL : 94/12/22 C-94/334 * 90/0418 387R3977;383R0170;387R2241; FAILURE TO INSPECT - OVERFISHING 1988 DATE REASONED OPINION SENT: 92/09/29 135 NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JUFOR 91/4509 390R3926;383R0170;387R2241; OVERFISHING 1991 (ANCHOVIES) DATE REASONED OPINION SENT: 94/05/02 DATE OF REFERRAL : 95/02/28 C-95/052 DATE JUDGMENT : 95/12/07 COMMISSION IRELAND NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JUFOR DATE 171 LETTER DD. TERM : 85/0394 157E052;157E171 INCOMPATIBILITY OF FISHERIES AMENDMENT ACT 1983 WITH COMMUNITY LAW DATE REASONED OPINION SENT: 86/12/16 DATE OF REFERRAL : 89/03/21 C-89/093 DATE OF JUDGMENT : 91/10/04 COMMISSION DATE ART 171 LETTER SENT : 93/10/11 95/06/28 : TERMINATION DECISION NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JUFOR DATE 171 LETTER DD. TERM 88/0187 376R0101;381R3796 BAN ON FISHING BY BRITISH VESSELS IN IRISH WATERS AND RELATED MEASURES DATE REASONED OPINION SENT: 89/05/24 DATE OF REFERRAL : 89/09/12 C-89/280 DATE OF JUDGMENT : 92/12/02 COMMISSION DATE ART 171 LETTER SENT : 94/01/25 95/12/13 : TERMINATION DECISION NUMBER LEG. BASE TITLE DD. RO ITALY NUMBER LEG. BASE TITLE DD. RO 90/0333 157E007;157E052;157E058;383R0170 FISHING VESSELS - LICENSING AND FLAG RIGHTS DATE REASONED OPINION SENT: 93/06/18 DATE REASONED OPINION SENT-BIS : 94/08/04 90/0332 157E007;157E048;157E052;157E058;157E221;383R0170 FISHING VESSELS - LICENSING AND FLAG RIGHTS DATE REASONED OPINION SENT: 93/03/11 136 NETHERLANDS NUMBER LEG. BASE TITLE DD. RO DD. TERM NUMBER LEG. BASE TITLE DD. RO DD. TERM 88/0477 386R4034;383R0170;382R2057 OVERFISHING 1987 DATE REASONED OPINION SENT: 91/07/25 95/06/28 : TERMINATION DECISION 90/0274 157E007;157E034;157E048;157E052;157E058;157E221;381R37 96;383R0170 FISHING VESSELS - LICENSING AND FLAG RIGHTS DATE REASONED OPINION SENT: 93/03/31 95/12/13 : TERMINATION DECISION UNITED KINGDOM NUMBER LEG. BASE TITLE DD. RO 87/0398 385R3721;385R3732;383R0170;382R2057; OVERFISHING 1985-1986 DATE REASONED OPINION SENT: 89/02/09 DATE REASONED OPINION SENT-BIS : 92/10/01 INTERNAL MARKET AND FINANCIAL SERVICES BELGIUM NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JU FOR DD. TERM : 82/0316 157E030 REFUSAL TO ISSUE IMPORT LICENCES FOR CODEINE DATE REASONED OPINION SENT: 83/09/19 89/0035 157E030;157E036 DOUBLE CHECKS ON IMPORTS OF STERILE MEDICAL ACCESSORIES DATE REASONED OPINION SENT: 91/09/30 DATE OF REFERRAL : 92/09/25 C-92/373 DATE OF JUDGMENT : 93/06/08 COMMISSION 95/12/13 : TERMINATION DECISION NUMBER LEG BASE TITLE DD. RO DD. REF CASE 89/0228 157E030; 157E034; 157E036; 157E059; 373L0023 FREE MOVEMENT OF WIRELESS TELEPHONES DATE REASONED OPINION SENT: 89/11/29 DATE OF REFERRAL : 92/03/12 C-92/080 137 DATE JUDGMENT : JU FOR COMMISSION DATE OF JUDGMENT : 94/03/24 NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD RO DD REF CASE DATE JUDGMENT JUFOR DD. TERM : 89/4822 157E030 TELEVISION ADVERTISING DATE REASONED OPINION SENT: 95/09/28 90/0069 157E052; 157E056; 157E059 FLEMISH COMMUNITY DECREE ON CABLE TELEVISION DATE REASONED OPINION SENT: 91/02/14 DATE OF REFERRAL : 91/08/08 C-91/211 DATE OF JUDGMENT : 92/12/16 COMMISSION 95/06/28 DETECTED BY COM + ART. 169 LETTER : TERMINATION DECISION NEW CASE NUMBER LEG. BASE TITLE DD. RO DENMARK NUMBER LEG. BASE TITLE DD. RO GERMANY NUMBER LEG. BASE TITLE DD. RO NUMBER LEG BASE TITLE DD RO DD. TERM NUMBER LEG. BASE TITLE DD RO 91/0209 157E052;157E067; DISCRIMINATORY ESTABLISHMENTS OF FOREIGN COMPANIES DATE REASONED OPINION SENT: 93/09/16 TAXATION OF PERMANENT 91/0782 157E005;157E030;157E036 IMPORTS OF ENZYME PREPARATIONS DATE REASONED OPINION SENT: 93/07/12 88/0189 157E030 BAN ON COSMETICS ADVERTISING DATE REASONED OPINION SENT: 93/06/03 88/5144 157E030 IMPORTS OF DIETARY PRODUCTS DATE REASONED OPINION SENT: 94/03/28 95/06/28 : TERMINATION DECISION 89/0082 157E030 DISCRIMINATION AGAINST IMPORTS OF FRUIT AND VEGETABLES DATE REASONED OPINION SENT: 94/07/15 138 89/0104 157E030 IMPORTS OF FLAME-ARRESTERS DATE REASONED OPINION SENT: 90/11/30 95/12/13 : TERMINATION DECISION NUMBER LEG. BASE TITLE DD RO DD. TERM GREECE NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JUFOR 84/0388 157E048; 157E052; 157E059 BAN ON TEACHING DATE REASONED OPINION SENT: 85/10/28 DATE OF REFERRAL : 86/06/13 C-86/147 DATE OF JUDGMENT : 88/03/15 COMMISSION NUMBER LEG. BASE TITLE DD RO DD. REF CASE DATE JUDGMENT JUFOR NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JUFOR DATE 171 LETTER 85/0264 157E052;157E059 NATIONALITY REQUIREMENT OCCUPATION OF ADVOCATE DATE REASONED OPINION SENT: 86/05/14 DATE OF REFERRAL : 87/02/05 C-87/038 FOR ACCESS TO DATE OF JUDGMENT : 88/07/14 COMMISSION 87/0113 157E059;157E171 RESTRICTIONS ON FREEDOM TO PROVIDE SERVICES AS TOURIST GUIDES DATE REASONED OPINION SENT: 88/04/20 DATE OF REFERRAL : 89/06/20 C-89/198 DATE OF JUDGMENT : 91/02/26 COMMISSION DATE ART 171 LETTER SENT : 92/05/18 NUMBER LEG. BASE TITLE : 89/0165 157E052;157E059;157E171 NATIONALITY REQUIREMENT FOR OPENING PRIVATE SCHOOLS DATE 171 LETTER DATE RO SENT-171 DD. REF2 CASE DATE JUDGMENT2 JUFOR2 DATE ART 171 LETTER SENT : 89/05/26 DATE ART 171 REASONED OPINION SENT : 90/01/22 DATE OF REFERRAL 171 : 90/10/24 C-90/328 DATE OF JUDGMENT-171 : 92/01/30 COMMISSION 139 NUMBER LEG. BASE TITLE DD RO DD. REF CASE NUMBER LEG. BASE TITLE DD RO DD. REF CASE SPAIN NUMBER LEG. BASE TITLE DD RO DEC TO REFER DD. REF CASE DATE JUDGMENT JU FOR FRANCE NUMBER LEG BASE TITLE DD RO NUMBER LEG. BASE TITLE DD RO DD. REF CASE DATE JUDGMENT JUFOR DATE 171 LETTER : 89/0354 157E030; 157E036; SALE OF BABY FOODS EXCLUSIVELY THROUGH PHARMACISTS DATE REASONED OPINION SENT: 91/10/28 DATE OF REFERRAL : 92/11/09 C-92/391 92/0271 NONE REDRESS PROCEDURES - AWARD OF PUBLIC SUPPLY AND WORKS CONTRACTS DATE REASONED OPINION SENT: 94/07/04 DATE OF REFERRAL : 95/07/07 C-95/236 90/0388 157E005;157E048;157E052;157E059 RESTRICTIONS ON FREEDOM TO PROVIDE SERVICES AS TOURIST GUIDES DATE REASONED OPINION SENT: 91/10/14 DATE-DECISION-DD. REF : 92/06/10 : Min(92)1109 DATE OF REFERRAL : 92/10/01 C-92/375 DATE OF JUDGMENT : 94/03/22 COMMISSION 85/0269 157E030 REFUSAL TO ISSUE IMPORT LICENCES FOR CODEINE DATE REASONED OPINION SENT: 87/11/12 85/0499 380D1186;386D0283;157E171;391D0482 FREEDOM OF ESTABLISHMENT AND FREEDOM TO PROVIDE SERVICES IN THE OVERSEAS TERRITORIES DATE REASONED OPINION SENT: 87/05/27 DATE OF REFERRAL : 88/09/23 C-88/263 DATE OF JUDGMENT : 90/12/12 COMMISSION DATE ART 171 LETTER SENT : 92/06/05 140 NUMBER LEG. BASE TITLE DD RO DD REF CASE DATE JUDGMENT JUFOR DATE 171 LETTER 86/0432 157E059;157E171 RESTRICTIONS ON FREEDOM TO PROVIDE SERVICES AS TOURIST GUIDES DATE REASONED OPINION SENT: 88/05/02 DATE OF REFERRAL : 89/04/28 C-89/154 DATE OF JUDGMENT : 91/02/26 COMMISSION DATE ART 171 LETTER SENT : 92/05/18 NUMBER LEG. BASE TITLE DD. RO DD. TERM NUMBER LEG. BASE TITLE DD. RO DD. TERM NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO IRELAND NUMBER LEG. BASE TITLE DD. RO ITALY NUMBER LEG. BASE TITLE DD. RO DD. REF 89/0576 157E030 APPROVAL OF TANKS FOR THE TRANSPORT OF DANGEROUS SUBSTANCES DATE REASONED OPINION SENT: 92/06/17 95/12/13 : TERMINATION DECISION 90/0037 157E005;157E052;157E059;157E048 ESTATE AGENTS' PERMITS DATE REASONED OPINION SENT: 92/12/10 95/12/13 : TERMINATION DECISION 93/2222 157E030;157E036 PREPARATIONS BASED ON FOIE GRAS DATE REASONED OPINION SENT: 94/10/14 93/2261 157E030;157E036 BARRIERS TO IMPORTS OF LEAVENED BREAD DATE REASONED OPINION SENT: 94/10/19 89/0335 157E030; TOBACCO PRICE RULES DATE REASONED OPINION SENT: 90/07/12 87/0071 157E059;157E171 RESTRICTIONS ON FREEDOM TO PROVIDE SERVICES AS TOURIST GUIDES DATE REASONED OPINION SENT: 88/04/20 DATE OF REFERRAL : 89/05/25 141 CASE DATE JUDGMENT JUFOR DATE 171 LETTER C-89/180 DATE OF JUDGMENT : 91/02/26 COMMISSION DATE ART 171 LETTER SENT : 95/07/05 NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DD. TERM NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO DD. REF CASE NUMBER LEG BASE TITLE DD RO NUMBER LEG. BASE TITLE DD. RO LUXEMBOURG NUMBER LEG BASE TITLE DD RO 88/0373 157E052;157E059; 157E171 NATIONALITY REQUIREMENTS (GUIDES, JOURNALISTS, LICENSED PHARMACISTS) DATE REASONED OPINION SENT: 89/11/21 DATE OF REFERRAL : 90/10/01 C-90/297 95/12/13 : TERMINATION DECISION 89/0534 157E030;157E036;377L0094 PROCEDURE FOR AUTHORIZING DIETARY PRODUCTS DATE REASONED OPINION SENT: 91/11/25 90/0397 157E030 MARKETING OF WHOLEMEAL BREAD DATE REASONED OPINION SENT: 91/03/18 91/0835 157E052;157E059 FINANCIAL SERVICES MOBILIARE DATE REASONED OPINION SENT: 92/10/19 DATE OF REFERRAL : 94/03/23 C-94/101 SOCIETE DSfTERMEDIAZIONE 91/2159 157E030; SUBSIDIES FOR SCHEDULED BUS SERVICES DATE REASONED OPINION SENT: 93/10/18 DATE REASONED OPINION SENT-BIS : 92/1019 91/4303 157E030; SUPPLY CONTRACTS DATE REASONED OPINION SENT: 93/06/18 89/0106 157E048;157E052 REFUSAL OF PERMISSION TO OPEN A SECOND DENTAL SURGERY DATE REASONED OPINION SENT: 89/11/21 142 DD REF CASE DATE JUDGMENT JUFOR DATE 171 LETTER DATE OF REFERRAL : 90/11/29 C-90/351 DATE OF JUDGMENT : 92/06/16 COMMISSION DATE ART 171 LETTER SENT : 93/07/27 NUMBER LEG. BASE TITLE DD. RO DD. REF CASE PORTUGAL NUMBER LEG. BASE TITLE DD. RO DD. TERM NUMBER LEG. BASE TITLE DD. RO 89/0568 157E007 STATE COMPENSATION FOR VICTIMS OF ACTS OF VIOLENCE DATE REASONED OPINION SENT: 91/02/08 DATE OF REFERRAL : 92/03/24 C-92/096 90/0178 157E030; COMPULSORY PATENT LICENCES DATE REASONED OPINION SENT: 91/06/04 95/12/13 : TERMINATION DECISION 91/2314 157E052;157E221 PURSUIT OF ACTIVITIES IN TELEVISION BROADCASTING DATE REASONED OPINION SENT: 94/07/14 UNITED KINGDOM NUMBER LEG. BASE TITLE DD RO 82/0320 157E030 REFUSAL TO ISSUE IMPORT LICENCES FOR CODEINE DATE REASONED OPINION SENT: 83/09/06 NUMBER LEG BASE TITLE DD RO DD. REF CASE DATE JUDGMENT JUFOR 89/0034 157E030 PATENT LICENCES DATE REASONED OPINION SENT: 89/08/28 DATE OF REFERRAL : 90/01/31 C-90/030 DATE OF JUDGMENT : 92/02/18 COMMISSION 143 CUSTOMS AND INDIRECT TAXATION BELGIUM NUMBER LEG. BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO DENMARK NUMBER LEG. BASE TITLE DD. RO GERMANY NUMBER LEG. BASE TITLE DD. RO DD. REF CASE GREECE NUMBER LEG. BASE TITLE DD RO NUMBER LEG. BASE TITLE DD RO DD. REF CASE 84/0342 157E009; 157E028;368R0950 DUTY-FREE IMPORTS OF NON-MILITARY EQUIPMENT DATE REASONED OPINION SENT: 85/07/25 91/4164 157E095;157E012 AIDS AND PARAFISCAL CHARGES TO SUPPORT ANIMAL HEALTH AND PROTECTION FUND DATE REASONED OPINION SENT: 95/06/14 84/0343 157E009; 157E028;368R0950 DUTY-FREE IMPORTS OF NON-MILITARY EQUIPMENT DATE REASONED OPINION SENT: 85/07/25 91/0559 385R1999;386R3677; INWARD PROCESSING DATE REASONED OPINION SENT: 93/02/03 DATE OF REFERRAL : 94/02/14 C-94/0761 86/0126 157E009 ; 157E028 ; 368R0950 DUTY-FREE IMPORTS OF NON-MILITARY EQUIPMENT DATE REASONED OPINION SENT: 90/05/02 91/0779 157E095; TAXES ON SECONDHAND CARS DATE REASONED OPINION SENT: 93/09/07 DATE OF REFERRAL : 95/12/01 C-95/375 144 SPAIN NUMBER LEG. BASE TITLE DD. RO ITALY NUMBER LEG BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO PD. REF CASE DATE JUDGMENT JUFOR NUMBER LEG. BASE TITLE DD. RO DD. REF CASE DATE JUDGMENT JUFOR DATE 171 LETTER NUMBER LEG. BASE TITLE DD. RO DD. TERM NUMBER LEG. BASE TITLE DD. RO LUXEMBOURG 90/0078 387R2658; 157E028 DUTY-FREE IMPORTS OF NON-MILITARY EQUIPMENT DATE REASONED OPINION SENT: 92/12/31 84/0345 157E009; 157E028;368R0950 DUTY-FREE IMPORTS OF NON-MILITARY EQUIPMENT DATE REASONED OPINION SENT: 85/07/25 87/0158 157E009;157E012 VETERINARY SERVICES' TELEGRAM CHARGES INVOICED TO IMPORTERS OF LIVE ANIMALS DATE REASONED OPINION SENT: 87/10/14 DATE OF REFERRAL : 89/04/21 C-89/137 DATE OF JUDGMENT : 90/03/14 COMMISSION 90/0253 157E007; 157E030; 157E034; 157E059;385R3632;377R0222 MONOPOLY AND CHARGES DATE REASONED OPINION SENT: 91/04/16 DATE OF REFERRAL : 92/04/14 C-92/119 DATE OF JUDGMENT : 94/02/09 COMMISSION DATE ART 171 LETTER SENT-BIS : 95/11/16 92/2001 377R0222;387R2658 NATIONAL TRANSIT - GUARANTEES AND FLAT-RATE CUSTOMS DUTIES DATE REASONED OPINION SENT: 93/11/15 95/06/28 : TERMINATION DECISION 93/2170 157E095 VEHICLE SEIZED AT ITALIAN BORDER DATE REASONED OPINION SENT: 95/07/27 NUMBER LEG. BASE 84/0346 157E009; 157E028;368R0950 145 TITLE DD RO DUTY-FREE IMPORTS OF NON-MILITARY EQUIPMENT DATE REASONED OPINION SENT: 85/07/25 NETHERLANDS NUMBER LEG. BASE TITLE DD. RO PORTUGAL NUMBER LEG BASE TITLE DD. RO 84/0347 157E009; 157E028;368R0950 DUTY-FREE IMPORTS OF NON-MILITARY EQUIPMENT DATE REASONED OPINION SENT: 85/07/25 90/0079 387R2658; 157E028 DUTY-FREE IMPORTS OF NON-MILITARY EQUIPMENT DATE REASONED OPINION SENT: 93/01/20 UNITED KINGDOM NUMBER LEG BASE TITLE DD. RO NUMBER LEG. BASE TITLE DD. RO IMPORTED DUTY-FREE AND 84/0126 377R1535 CIVIL AIRCRAFT SUBSEQUENTLY USED AS MILITARY AIRCRAFT DATE REASONED OPINION SENT: 85/06/06 84/0344 157E009; 157E028;368R0950 DUTY-FREE IMPORTS OF NON-MILITARY EQUIPMENT DATE REASONED OPINION SENT: 85/07/25 ENTERPRISE POLICY, TOURISM AND COOPERATIVES SPAIN NUMBER LEG. BASE TITLE DD RO DD REF CASE DATE JUDGMENT JUFOR 87/0352 157E059;157E048;157E052;157E007 DISCRIMINATION IN MUSEUM ADMISSION CHARGES DATE REASONED OPINION SENT: 88/07/08 DATE OF REFERRAL : 93/02/16 C-93/045 DATE OF JUDGMENT : 94/03/15 COMMISSION 146 LEGAL MATTERS LUXEMBOURG NUMBER LEG. BASE TITLE : DD RO DD. TERM : 88/0309 386D0198 PRIVILEGED TREATMENT FOR CLAIMS RELATING TO ECSC LEVIES DATE REASONED OPINION SENT: 89/06/28 95/12/13 : TERMINATION DECISION 147 ANNEX IV REPORT ON THE APPLICATION OF DIRECTIVES 148 151 151 152 152 216 CONTENTS 1. AN AREA WITHOUT INTERNAL FRONTIERS REMOVAL OF PHYSICAL BARRIERS Customs Union REMOVAL OF TECHNICAL BARRIERS Goods Technical standards notification procedure Foodstuffs Proprietary medicinal products Chemicals Motor vehicles, tractors and motorcycles Construction products Machinery Free movement - special arrangements Persons Right of residence Voting rights Mutual recognition of diplomas Self-employed commercial agents 149 Services \ Audiovisual media Telecommunications Financial services Company law Intellectual and industrial property Public contracts REMOVAL OF TAX BARRIERS Direct taxation Indirect taxes 2. CONSUMER PROTECTION AND PRODUCT SAFETY COMPETITION EMPLOYMENT AND SOCIAL POLICY AGRICULTURE ENVIRONMENT TRANSPORT ENERGY 3. 4. 5. 6. 7. $. 228 240 242 244 248 255 264 265 278 354 386 394 150 1. AN AREA WITHOUT INTERNAL FRONTIERS REMOVAL OF PHYSICAL BARRIERS Customs Union 76/0308 Mutual assistance - debt recovery Member States which have notified implementing measures: all 77/0794 Mutual assistance - debt recovery Member States which have notified implementing measures: all 79/1071 Mutual assistance - debts Member States which have notified implementing measures: all 85/0479 Mutual assistance - debt recovery Member States which have notified implementing measures: all 86/0489 Mutual assistance - debt recovery Member States which have notified implementing measures: all 151 REMOVAL OF TECHNICAL BARRIERS Goods Technical standards notification procedure 83/0189 Technical standards (amended by Directives 88/0182 and 94/0010) Member States which have notified implementing measures: all (for Directives 83/0189 and 88/0182) Belgium - 95/0008, not properly applied, reasoned opinion in 1995 Belgium - 95/0009, not properly applied, reasoned opinion in 1995 Belgium - 95/0211, not properly applied, reasoned opinion in 1995 France - 94/0441, not properly applied, reasoned opinion in 1995 France - 95/0645, not properly applied, reasoned opinion in 1995 Greece - 93/0508, not properly applied, reasoned opinion in 1994 Greece - 93/0616, not properly applied, reasoned opinion in 1993 Greece - 94/0398, not properly applied, reasoned opinion in 1994 Italy - 92/0007, not properly applied, reasoned opinion in 1992, referral in 1994 - Case C-94/289 Italy - 92/0958, not properly applied, reasoned opinion in 1993, referral in 1994 - Case C-94/279 Italy - 92/0570, not properly applied, reasoned opinion in 1993, terminated in 1995 Italy - 93/0808, not properly applied, reasoned opinion in 1994 Italy - 94/0330, not properly applied, reasoned opinion in 1995 Italy - 94/0530, not properly applied, reasoned opinion in 1994, referral in 1995 Italy - 95/0005, not properly applied, reasoned opinion in 1995 Italy - 95/0011, not properly applied, reasoned opinion in 1995 Netheriands - 89/0549, not properly applied, referral in 1993 - Case C-93/061, judgment in 1994 Netheriands - 93/0510, not properly applied, reasoned opinion in 1993 Netheriands - 94/0461, not properly applied, reasoned opinion in 1994 Netheriands - 94/0615, not properly applied, reasoned opinion in 1994 Netheriands - 94/0777, not properly applied, reasoned opinion in 1994 152 88/0182 Technical standards (amending Directive 83/0189) Member States which have notified implementing measures: all Italy - 91/0565, not properly applied, referral in 1994 - Case C-94/289 Italy - 92/0646, not properly applied, reasoned opinion in 1993 Netheriands - 91/0747, not properly applied, referral in 1993 - Case C-93/052, judgment in 1994 Netheriands - 91/2328, not properly applied, referral in 1994 - Case C-94/273 Italy - 93/0614, not properly applied, referral in 1995, Case C-95/289 Netheriands - 93/2267, not properly applied, reasoned opinion in 1994 94/0010 Technical standards (amendment of Directive 83/189) Member States which have notified implementing measures: all except A, EL, IRL, I Foodstuffs 62/2645 Foodstuffs for human consumption - colouring matter Member States which have notified implementing measures: all except A 64/0054 Foodstuffs for human consumption - preservatives Member States which have notified implementing measures: all 65/0066 Foodstuffs for human consumption - preservatives Member States which have notified implementing measures: all 153 67/0427 Additives in foodstuffs Member States which have notified implementing measures: all 70/0357 Foodstuffs for human consumption - additives Member States which have notified implementing measures: all 73/0241 Cocoa and chocolate Member States which have notified implementing measures: all 73/0437 Sugars Member States which have notified implementing measures: all 74/0329 Foodstuffs for human consumption - additives Member States which have notified implementing measures: all 74/0409 Honey Member States which have notified implementing measures: all Italy - 91/42435, not properly applied, reasoned opinion to be sent in 1996 75/0726 Fruit juices Member States which have notified implementing measures: all except A 76/0118 Preserved milk Member States which have notified implementing measures: all except A 154 76/0621 Foodstuffs for human consumption - oils and fats Member States which have notified implementing measures: all 77/0436 Coffee and chicory Member States which have notified implementing measures: all 78/0142 Foodstuffs for human consumption - materials intended to come into contact Member States which have notified implementing measures: all 78/0663 Foodstuffs for human consumption - additives Member States which have notified implementing measures: all 78/0664 Foodstuffs for human consumption - additives Member States which have notified implementing measures: all 79/0112 Labelling of foodstuffs Member States which have notified implementing measures: all Germany - 93/2201, not properly applied, Art. 169 letter in 1994 Germany - 94/4512, not properly applied Germany - 94/4880, not properly applied Belgium - 94/4005, not properly applied Greece - 93/2273, not properly applied Greece - 93/4345, not properly applied, Art. 169 letter in 1995 France - 90/278, not properly applied, Art. 169 letter in 1990 Portugal - 92/4699, not properly applied 79/0168 Fruit juices Member States which have notified implementing measures: all 155 79/0693 Jams, jellies and marmalades Member States which have notified implementing measures: ail 79/0796 Sugars Member States which have notified implementing measures: all 79/1066 Coffee and chicory Member States which have notified implementing measures: all 79/1067 Preserved milk Member States which have notified implementing measures: all except A 80/0590 Foodstuffs for human consumption - materials intended to come into contact Member States which have notified implementing measures: all 80/0766 Foodstuffs for human consumption - materials intended to come into contact Member States which have notified implementing measures: all 80/0777 Natural mineral waters Member States which have notified implementing measures: all 80/0891 Foodstuffs for human consumption - oils and fats Member States which have notified implementing measures: all 81/0432 Foodstuffs for human consumption - materials intended to come into contact Member States which have notified implementing measures: all 156 81/0712 Additives in foodstuffs Member States which have notified implementing measures: all 82/0711 Foodstuffs for human consumption - materials intended to come into contact Member States which have notified implementing measures: all. 83/0417 Caseins Member States which have notified implementing measures: all except A 83/0463 Labelling of foodstuffs Member States which have notified implementing measures: all. 84/0500 Foodstuffs for human consumption - materials intended to come into contact Member States which have notified implementing measures: all 85/0503 Caseins Member States which have notified implementing measures: all except A 85/0572 Foodstuffs - articles intended to come into contact Member States which have notified implementing measures: all 85/0591 Monitoring of foodstuffs for human consumption Member States which have notified implementing measures: all except A 86/0424 Caseins Member States which have notified implementing measures: all except A 157 87/0250 Labelling of alcoholic beverages Member States which have notified implementing measures: all 87/0524 Preserved milk Member States which have notified implementing measures: all except A 88/0344 Foodstuffs for human consumption - extraction solvents Member States which have notified implementing measures: all. 88/0388 Flavourings for use in foodstuffs for human consumption Member States which have notified implementing measures: all except A 88/0593 Jams, jellies and marmalades Member States which have notified implementing measures: all 89/0107 Additives in foodstuffs Member States which have notified implementing measures: all Netheriands - 93/2274, not properly applied 89/0108 Quick-frozen foodstuffs Member States which have notified implementing measures: all Spain - 92/4047, not properly applied, reasoned opinion in 1994 89/0109 Foodstuffs for human consumption - materials intended to come into contact Member States which have notified implementing measures: all 158 89/0344 Cocoa and chocolate Member States which have notified implementing measures: all 89/0394 Fruit juices Member States which have notified implementing measures: all 89/0395 Foodstuffs - labelling Member States which have notified implementing measures: all. 89/0396 Foodstuffs - identification of lot Member States which have notified implementing measures: all 89/0397 Foodstuffs - official control Member States which have notified implementing measures: all. 89/0398 Foodstuffs for particular nutritional use Member States which have notified implementing measures: all. 90/0128 Foodstuffs - materials intended to come into contact Member States which have notified implementing measures: all. 90/0496 Labelling of foodstuffs Member States which have notified implementing measures: all. Germany - 92/0585, no measures notified, reasoned opinion in 1993, terminated in 1995 159 90/0612 Foodstuffs for human consumption - additives Member States which have notified implementing measures: all 91/0071 Foodstuffs for human consumption - flavourings (deadlines for transposai: 30. 6. 92 and 1. 1. 94) Member States which have notified implementing measures: all. 91/0072 Labelling of foodstuffs (deadlines for transposai: 30. 06. 92 and 01. 01. 94) Member States which have notified implementing measures: all. 91/0238 Labelling of foodstuffs - indication of lot Member States which have notified implementing measures: all except F 91/0321 Infant formulae (deadlines for transposai: 01. 06. 92 and 01. 06. 94) Member States which have notified implementing measures: all except D Germany - 92/0971, no measures notified, reasoned opinion in 1993 Germany - 93/808 - no measures notified, Art. 169 letter in 1995 92/0001 Quick-frozen foodstuffs Member States which have notified implementing measures: B, D, DK, EL, E, I, L, NL, P, UK, S, FIN, Germany - 93/0907, no measures notified, Art. 169 letter in 1993 (to be terminated in 1996) France - 93/0923, no measures notified, Art. 169 letter in 1993 Ireland - 93/0934, no measures notified, Art. 169 letter in 1993 93/0929, no measures notified, Art. 169 letter in 1993 Italy - (to be terminated in 1996) 160 92/0002 Community method of analysis for the control of the temperatures of quick- frozen foods Member States which have notified implementing measures: B, D, DK, EL, ES, IT, L, NL, P, UK, S, FIN, Germany - 93/0908, no measures notified, Art. 169 letter in 1993 (to be terminated in 1996) France - 93/0924, no measures notified, Art. 169 letter in 1993 Ireland - 93/0935, no measures notified, Art. 169 letter in 1993 Italy - 93/0930, no measures notified, Art. 169 letter in 1993 (to be terminated in 1996) 92/0004 Criteria of purity for emulsifiers, stabilizers, thickeners and gelling agents for use in foodstuffs Member States which have notified implementing measures: all. 92/0039 Foodstuffs for human consumption - materials intended to come into contact (deadlines for transposai: 31. 12. 92, 31. 03. 94, 01. 04. 95) Member States which have notified implementing measures: all. Germany - 93/0075, no measures notified, Art. 169 letter in 1993, terminated in 1995 92/0052 Infant formulae for export Member States which have notified implementing measures: B, DK, E, EL, F, IRL, I, L, NL, UK, S, FIN A. Germany - 94/0646, no measures notified, Art. 169 letter in 1994 92/0115 Extraction solvents used in the production of foodstuffs (deadlines for transposai: 01. 07. 93 and 01. 01. 94) Member States which have notified implementing measures: all. 93/0005 Scientific examination of questions relating to food Member States which have notified implementing measures: all except A. 161 93/0008 Plastic materials and articles intended to come into contact with foodstuffs Member States which have notified implementing measures: all 93/0009 Plastic materials and articles intended to come into contact with foodstuffs Member States which have notified implementing measures: all 93/0010 Materials and articles of regenerated cellulose film intended to come into contact with foodstuffs Member States which have notified implementing measures: all except EL Greece 94/0991, no measures notified, Art. 169 letter in 1995 93/0011 N-nitrosamines in rubber teats and soothers Member States which have notified implementing measures: all Greece - 94/0544, no measures notified, Art. 169 letter in 1994, terminated in 95 France - 94/0557, no measures notified, Art. 169 letter in 1994, terminated in 1995 93/0043 Foodstuffs - hygiene Member States which have notified implementing measures: FIN, A, S, NL 93/0045 Nectars without addition of sugar or honey Member States which have notified implementing measures: all except A, IT Italy - 94/0252, no measures notified, Art. 169 letter in 1994, reasoned opinion in 1995 93/0099 Foodstuffs - official control Member States which have notified implementing measures: A, B, D, DK, ES, NL, S 162 Belgium 95/400 - no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) Denmark 95/422 - no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) Germany 95/434- no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) Greece - 95/455, no measures notified, Art. 169 letter in 1995 France - 94/0560,- no measures notified, Art. 169 letter in 1995 Ireland - 95/0525, - no measures notified, Art. 169 letter in 1995 Italy 95/546- no measures notified, Art. 169 letter in 1995 Luxembourg - 95/0569- no measures notified, Art. 169 letter in 1995 Portugal- 95/607- no measures notified, Art. 169 letter in 1995 United Kingdom - 95/633- no measures notified, Art. 169 letter in 1995 93/0102 Labelling of foodstuffs Member States which have notified implementing measures: B, D, DK, EL, E, F,FIN, IRL, L, NL, P. Belgium 95/231 - no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) Italy 95/320- no measures notified, Art. 169 letter in 1995 United Kingdom 95/378- no measures notified, Art. 169 letter in 1995 94/0035 Foodstuffs - sweeteners Member States which have notified implementing measures: EL, L, NL, UK 94/0036 Foodstuffs for human consumption - colouring matter Member States which have notified implementing measures: B (partial), EL, L, NL, UK 94/0052 Extraction solvents used in the production of foodstuffs Member States which have notified implementing measures: L, NL, UK 163 94/0054 Labelling of foodstuffs Member States which have notified implementing measures: B, DK Belgium: 95/0408 Art. 169 letter in 1995 - (to be terminated in 1996) Denmark: 95/0426 Art. 169 letter in 1995 - (to be terminated in 1996) Germany: 95/0441 Art. 169 letter in 1995 - Greece: 95/0464 Art. 169 letter in 1995 - Spain: 95/0490 Art. 169 letter in 1995 - France 95/0512 Art. 169 letter in 1995 - Ireland: 95/0531 Art. 169 letter in 1995 - Italy: 95/0554 Art. 169 letter in 1995 - Luxembourg: 95/0577 Art. 169 letter in 1995 - Netheriands: 95/0594 Art. 169 letter in 1995 - Portugal: 95/0619 Art. 169 letter in 1995 - United Kingdom: 95/0638 Art. 169 letter in 1995 - Proprietary medicinal products 65/0065 Proprietary medicinal products Member States which have notified implementing measures: all 75/0318 Proprietary medicinal products - analytical standards and protocols Member States which have notified implementing measures: all 75/0319 Proprietary medicinal products Member States which have notified implementing measures: all except A (partial) 78/0025 Medicinal products - colouring matter Member States which have notified implementing measures: all 164 80/0342 Pharmacy Member States which have notified implementing measures: all 81/0851 Veterinary medicinal products Member States which have notified implementing measures: all 81/0852 Veterinary medicinal products Member States which have notified implementing measures: all 83/0570 Proprietary medicinal products - multi-States procedure" Member States which have notified implementing measures: all 87/0019 Proprietary medicinal products - analytical standards and protocols Member States which have notified implementing measures: all except A 87/0020 Veterinary medicinal products - analytical standards and protocols Member States which have notified implementing measures: all except A 87/0021 Proprietary medicinal products Member States which have notified implementing measures: all 87/0022 High-technology medicinal products Member States which have notified implementing measures: all except FIN 89/0105 Prices of medicinal products Member States which have notified implementing measures: all 165 89/0341 Proprietary medicinal products Member States which have notified implementing measures: all 89/0342 Immunological medicinal products Member States which have notified implementing measures: all. 89/0343 Radiopharmaceuticals Member States which have notified implementing measures: B, DK, D, EL, E, I, F, FIN, IRL, L, NL, P, S, UK. 89/0381 Medicinal products derived from human blood Member States which have notified implementing measures: A, B, D, DK, EL, E, F, FIN, IRL, I, L, P,S, UK. The Netheriands - 92/0438, no measures notified, reasoned opinion h 1993 90/0676 Veterinary medicinal products Member States which have notified implementing measures: A, B, DK, D, EL, E, F, FIN, I, L, NL, S, UK. Spain - 93/0193, no measures notified, Art. 169 letter in 1993, en 1994, terminated in 1995 Ireland - 93/0276, no measures notified, reasoned opinion in 1994 Portugal - 93/0438 no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994 90/0677 Immunological veterinary medicinal products Member States which have notified implementing measures: A, B, DK, E, EL, F, FIN, I, L, NL, P, S. Spain - 93/0548, no measures notified, Art. 169 letter in 1993, referral in 1994, terminated in 1995 166 Ireland - 93/0562, no measures notified, reasoned opinion in 1994 91/0356 Good manufacturing practice for medicinal products Member States which have notified implementing measures: all 91/0412 Principles and guidelines of good manufacturing practice for veterinary medicinal products Member States which have notified implementing measures: A, B, DK, D, FIN, L, NL, S. Greece - 93/0915, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994 Spain - 93/0918, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994 France - 93/0921, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994 Ireland - 93/0932, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994 Italy - 93/0927, no measures notified, Art. 169 letter in 1993 Portugal - 93/0944, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994 United Kingdom 93/0950, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994 91/0507 Testing of medicinal products Member States which have notified implementing measures: B, D, DK, EL, E, FIN, IRL, I, L, NL, P, S, UK. France - 92/0228, no measures notified, reasoned opinion in 1994 92/0018 Veterinary medicinal products - analytical standards and protocols Member States which have notified implementing measures: A, B, DK, EL, ES , FIN, I, L, NL, P, S, UK. Germany - 93/0525, no measures notified, Art. 169 letter in 1993 167 Spain - 93/0549, no measures notified, Art. 169 letter in 1993, referral in 1994, terminated in 1995 France - 93/0556, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994 Ireland - 93/0563, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994 Portugal - 93/589, no measures notified, Art. 169 letter in 1993, terminated in 1995 Netheriands - 93/0584, no measures notified, Art. 169 letter in 1993, terminated in 1995 92/0025 Wholesale distribution of medicinal products Member States which have notified implementing measures: A, B, DK, ES, EL, F, FIN, IRL, I, NL, P, S, UK. Germany - 93/0084, no measures notified, Art. 169 letter in 1993, referral in 1994 Spain - 93/0175, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994, terminated in 1995 Luxembourg 93/0336, no measures notified, Art. 169 letter in 1993, referral in 1994 Portugal - 93/0418, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994, terminated in 1995 92/0026 Classification for the supply of medicinal products Member States which have notified implementing measures: A, B, D, DK, EL, E, F, FIN, IRL, I, L, NL, P, S, UK. Germany - 93/0083, no measures notified, Art. 169 letter in 1993, terminated in 1995 France - 93/0219, no measures notified, Art. 169 letter in 1993, terminated in 1995 Portugal - 93/0417, no measures notified, Art. 169 letter in 1993, terminated in 1995 92/0027 Labelling of medicinal products and package leaflets Member States which have notified implementing measures: all 168 Germany - 93/0082, no measures notified, Art. 169 letter in 1993, terminated in 1995 France - 93/0218, no measures notified, Art. 169 letter in 1993, terminated in 1995 Netheriands - 93/0378, no measures notified, Art. 169 letter in 1993, terminated in 1995 Portugal - 93/0416, no measures notified, Art. 169 letter in 1993, terminated in 1995 92/0028 Advertising of medicinal products Member States which have notified implementing measures: all except F. Belgium - 93/0011, no measures notified, Art. 169 letter in 1993, terminated in 1995 Germany - 93/0081, no measures notified, Art. 169 letter in 1993, terminated in 1995 Spain - 93/0172, no measures notified, Art. 169 letter in 1993, terminated in 1995 France - 93/0217, no measures notified, Art. 169 letter in 1993 Netheriands - 93/0377, no measures notified, Art. 169 letter in 1993, terminated in 1995 Portugal - 93/0415, no measures notified, Art. 169 letter in 1993, terminated in 1995 United Kingdom 93/0462, no measures notified, Art. 169 letter in 1993, terminated in 1995 92/0073 Homeopathic medicinal products for human use Member States which have notified implementing measures: A, FIN, S, DK, D, F, IRL, I, UK Belgium - 94/0014, no measures notified, Art. 169 letter in 1994 Denmark - 94/0045, no measures notified, Art. 169 letter in 1994, terminated in 1995 Germany - 94/0076, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece - 94/0119, no measures notified, Art. 169 letter in 1994 Spain - 94/0143, no measures notified, Art. 169 letter in 1994 France - 94/0176, no measures notified, Art. 169 letter in 1994, terminated in 1995 Ireland - 94/0208, no measures notified, Art. 169 letter in 1994, terminated in 1995 169 Italy - 94/0241, no measures notified, Art. 169 letter in 1994, terminated in 1995 Luxembourg - 94/0275, no measures notified, Art. 169 letter in 1994 Netheriands - 94/0309, no measures notified, Art. 169 letter in 1994 Portugal - 94/0340, no measures notified, Art. 169 letter in 1994 92/0074 Homeopathic veterinary medicinal products Member States which have notified implementing measures: A, D, DK, ES, FIN, I, S, NL, UK Belgium - 94/0015, no measures notified, Art. 169 letter in 1994 Denmark - 94/0046, no measures notified, Art. 169 letter in 1994 terminated in 1995 Germany - 94/0077, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece - 94/0118, no measures notified, Art. 169 letter in 1994 Spain - 94/0144, no measures notified, Art. 169 letter in 1994, terminated in 1996 France - 94/0177, no measures notified, Art. 169 letter in 1994 Ireland - 94/0209, no measures notified, Art. 169 letter in 1994 Italy - 94/0242, no measures notified, Art. 169 letter in 1994, terminated in 1996 Luxembourg - 94/0276, no measures notified, Art 169 letter in 1994 Netheriands 94/310 - no measures notified, Art. 169 letter in 1994, terminated in 1996 Portugal - 94/0341, no measures notified, Art. 169 letter in 1994 United Kingdom - 94/0375, no measures notified, Art. 169 letter in 1994, terminated in 1995 93/0039 Medicines Member States which have notified implementing measures: all except A 93/0040 Veterinary medicinal products Member States which have notified implementing measures: all except A 170 93/0041 High-technology medicinal products Member States which have notified implementing measures: all except A, FIN Chemicals 73/0404 Detergents Member States which have notified implementing measures: all 73/0405 Detergents Member States which have notified implementing measures: all 76/0116 Fertilizers Member States which have notified implementing measures: all 76/0769 Dangerous substances and preparations Member States which have notified implementing measures: all 77/0535 Fertilizers Member States which have notified implementing measures: all 78/0631 Labelling of dangerous preparations (pesticides) Member States which have notified implementing measures: all 79/0138 Fertilizers Member States which have notified implementing measures: all 171 79/0663 Dangerous substances and preparations Member States which have notified implementing measures: all 80/0876 Fertilizers Member States which have notified implementing measures: all 81/0187 Pesticides Member States which have notified implementing measures: all 82/0242 Detergents Member States which have notified implementing measures: all 82/0243 Detergents Member States which have notified implementing measures: all 82/0806 Dangerous substances and preparations Member States which have notified implementing measures: all 82/0828 Dangerous substances and preparations Member States which have notified implementing measures: all 83/0264 Dangerous substances and preparations Member States which have notified implementing measures: all 83/0478 Dangerous substances and preparations Member States which have notified implementing measures: all 172 84/0291 Dangerous preparations (pesticides) Member States which have notified implementing measures: all 85/0467 Dangerous substances and preparations Member States which have notified implementing measures: all 85/0610 Dangerous substances and preparations Member States which have notified implementing measures: all 87/0094 Fertilizers Member States which have notified implementing measures: all 87/0566 Fertilizers Member States which have notified implementing measures: all 88/0126 Fertilizers Member States which have notified implementing measures: all 88/0183 Liquid fertilizers Member States which have notified implementing measures: all 88/0379 Dangerous preparations Member States which have notified implementing measures: all. 89/0178 Labelling of dangerous preparations Member States which have notified implementing measures: all. 173 89/0284 Fertilizers Member States which have notified implementing measures: all 89/0519 Fertilizers - sampling Member States which have notified implementing measures: all 89/0530 Fertilizers - trace elements Member States which have notified implementing measures: all. 89/0677 Dangerous substances and preparations Member States which have notified implementing measures: all. Luxembourg 92/0391, no measures notified, Art. 169 letter in 1992, terminated in 1995 United Kingdom 92/0538, no measures notified, Art. 169 letter in 1992, reasoned opinion in 1994, terminated in 1995 89/0678 Dangerous substances and preparations Member States which have notified implementing measures: all 90/0035 Packaging - child safety Member States which have notified implementing measures: all except A Luxembourg - 91/0429, no measures notified, reasoned opinion in 1992, terminated in 1995 United Kingdom - 91/0535, no measures notified, reasoned opinion h 1992, terminated in 1995 174 90/0492 Labelling of dangerous preparations Member States which have notified implementing measures: all 91/0155 Dangerous preparations Member States which have notified implementing measures: all except A Denmark- 92/0091, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 92/0485, no measures notified, reasoned opinion in 1993, terminated in 1995 91/0173 Dangerous substances and preparations Member States which have notified implementing measures: all. 91/0338 Dangerous substances and preparations Member States which have notified implementing measures: all except B. Belgium - 93/024, no measures notified, reasoned opinion in 1995 91/0339 Dangerous substances and preparations Member States which have notified implementing measures: all except B Belgium - 92/0665, no measures notified, reasoned opinion in 1993 France - 92/0778, no measures notified, reasoned opinion in 1993, terminated in 1995 Italy - 92/0831, no measures notified, reasoned opinion in 1993, terminated in 1995 Portugal - 92/0903, no measures notified, reasoned opinion in 1993, terminated in 1995 175 91/0442 Child-resistant fastenings Member States which have notified implementing measures: all except A. United Kingdom - 92/0931, no measures notified, Art. 169 letter in 1992, terminated in 1995 91/0659 Dangerous substances and preparations Member States which have notified implementing measures: all except B. Belgium - 93/0020, no measures notified, reasoned opinion in 1994 France - 93/0228, no measures notified, Art. 169 letter in 1993, terminated in 1995 Italy - 93/0307, no measures notified, Art. 169 letter in 1993, terminated in 1995 Netheriands - 93/0385, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 93/0424, no measures notified, reasoned opinion in 1994, terminated in 1995 92/0109 Narcotic drugs and psychotropic substances Member States which have notified implementing measures: all except A, F, IT, ES. Spain - 93/0731, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994 France - 93/0755, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994 Ireland - 93/0780, no measures notified, Art. 169 letter in 1993, terminated in 1995 Italy - 93/0800, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994 Luxembourg - 93/0823, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 93/0864, no measures notified, Art. 169 letter in 1993, terminated in 1995 176 93/0001 Methods of sampling and analysis for fertilizers Member States which have notified implementing measures: all except D Denmark - 94/0410, no measures notified, Art. 169 letter in 1994, terminated in 1995 Germany - 94/0415, no measures notified, Art. 169 letter in 1994 Greece - 94/0426, no measures notified, Art. 169 letter in 1994, terminated in 1995 Spain - 94/0436, no measures notified, Art. 169 letter in 1994, terminated in 1995 Italy - 94/0467, no measures notified, Art. 169 letter in 1994, terminated in 1995 Luxembourg - 94/0474, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0350, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0490,no measures notified, Art. 169 letter in 1994, terminated in 1995 United Kingdom 94/0382, no measures notified, Art. 169 letter in 1994, terminated in 1995 93/0015 Placing on the market and supervision of explosives for civil uses (double deadline for transposai: 30. 09. 93 and 30. 06. 94) Member States which have notified implementing measures: B, DK, I, L, NL, P, UK, S, A. Germany - 94/0641, no measures notified, Art. 169 letter in 1994 Greece - 94/0699, no measures notified, Art. 169 letter in 1994 Spain - 94/0663, no measures notified, Art. 169 letter in 1994 France - 94/0676, no measures notified, Art. 169 letter in 1994 93/0018 Dangerous preparations Member States which have notified implementing measures: A, B, DK, D, ES, F, FIN, EL, L, UK, S Belgium - 94/0781, no measures notified, Art. 169 letter in 1995 Ireland - 94/0856, no measures notified, Art. 169 letter in 1995 Netheriands - 94/0912, no measures notified, Art. 169 letter in 1995 177 Portugal - no measures notified, reasoned opinion in 1995 Italy- 94/0875, no measures notified, reasoned opinion in 1995 93/0046 Drugs - precursors Member States which have notified implementing measures: B, D, DK, ES, FIN, EL, IRL, L, NL, P, S, UK Belgium - 94/0403, no measures notified, Art. 169 letter in 1994, terminated in 1995 Germany - 94/0417, no measures notified, Art. 169 letter in 1994, terminated in 1995 Spain - 94/438, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece - 94/0424, no measures notified, Art. 169 letter in 1994 terminated in 1995 France - 94/0450, no measures notified, Art. 169 letter in 1994 Ireland - 94/0460, no measures notified, Art. 169 letter in 1994, terminated in 1995 Italy - 94/0469, no measures notified, Art. 169 letter in 1994 Luxembourg - 94/0475, no measures notified, Art. 169 letter in 1994, terminated in 1995 Netheriands - 94/0480, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0492, no measures notified, Art. 169 letter in 1994, terminated in 1995 93/0069 Fertilizers Member States which have notified implementing measures: A,DK, E, FIN, IRL, I, L, NL, P, S, UK Belgium - 94/0520, no measures notified, reasoned opinion in 1994 Germany - 94/0792, no measures notified, Art. 169 letter in 1994 France - 94/0792, no measures notified, Art. 169 letter in 1994 Greece - 94/0792, no measures notified, Art. 169 letter in 1994 94/0060 Restrictions on marketing of dangerous substances (CMT/soluble aerosols/Creosote) 178 Member States which have notified implementing measures:A, FIN, S, D, DK, L, NL 95/0008 Fertilizers Member States which have notified implementing measures: DK, IRL, NL,B, A, S, FIN Motor vehicles, tractors and motorcycles 70/0156 Type-approval of motor vehicles Member States which have notified implementing measures: all 70/0157 Sound level of motor vehicles Member States which have notified implementing measures: all 70/0220 Air pollution from engines Member States which have notified implementing measures: all 70/0221 Fuel tanks Member States which have notified implementing measures: all 70/0222 Mounting of motor-vehicle registration plates Member States which have notified implementing measures: all 70/0311 Steering equipment for motor vehicles Member States which have notified implementing measures: all 179 70/0387 Doors of motor vehicles Member States which have notified implementing measures: all 70/0388 Audible warning devices for motor vehicles Member States which have notified implementing measures: all 71/0127 Rear-view mirrors of motor vehicles Member States which have notified implementing measures: all 71/0320 Braking devices of motor vehicles Member States which have notified implementing measures: all 72/0245 Radio interference from engines Member States which have notified implementing measures: all 72/0306 Emission of pollutants from diesel engines Member States which have notified implementing measures: all 73/0350 Sound level of motor vehicles Member States which have notified implementing measures: all 74/0060 Interior fittings of motor vehicles Member States which have notified implementing measures: all 74/0061 Devices to prevent the unauthorized use of motor vehicles Member States which have notified implementing measures: all 180 74/0132 Braking devices of motor vehicles Member States which have notified implementing measures: all 74/0150 Type-approval of tractors Member States which have notified implementing measures: all 74/0151 Characteristics of tractors Member States which have notified implementing measures: all 74/0152 Maximum speed of tractors Member States which have notified implementing measures: all 74/0290 Air pollution from engines Member States which have notified implementing measures: all except FIN 74/0297 Interior fittings of motor vehicles Member States which have notified implementing measures: all 74/0346 Rear-view mirrors of tractors Member States which have notified implementing measures: all 74/0347 Windscreen wipers of tractors Member States which have notified implementing measures: all 74/0408 Interior fittings of motor vehicles Member States which have notified implementing measures: all 181 74/0483 External projections of motor vehicles Member States which have notified implementing measures: all 75/0321 Steering equipment of tractors Member States which have notified implementing measures: all 75/0322 Radio interference from tractors Member States which have notified implementing measures: all 75/0443 Reverse equipment of motor vehicles Member States which have notified implementing measures: all 75/0524 Braking devices of motor vehicles Member States which have notified implementing measures: all 76/0114 Motor-vehicle registration plates Member States which have notified implementing measures: all 76/0115 Safety belts Member States which have notified implementing measures: all 76/0432 Braking devices of tractors Member States which have notified implementing measures: all 76/0756 Lighting and light-signalling devices on motor vehicles Member States which have notified implementing measures: all 182 76/0757 Reflex reflectors for motor vehicles Member States which have notified implementing measures: all 76/0758 Lamps for motor vehicles Member States which have notified implementing measures: all 76/0759 Lamps for motor vehicles Member States which have notified implementing measures: all 76/0760 Registration-plate lamps for motor vehicles Member States which have notified implementing measures: all 76/0761 Headlamps for motor vehicles Member States which have notified implementing measures: all 76/0762 Lamps for motor vehicles Member States which have notified implementing measures: all 76/0763 Seats for tractors Member States which have notified implementing measures: all 77/0102 Air pollution from engines Member States which have notified implementing measures: all except FIN 77/0143 Roadworthiness tests for motor vehicles Member States which have notified implementing measures: all 183 77/0212 Sound level of motor vehicles Member States which have notified implementing measures: all except FIN 77/0311 Sound level of tractors Member States which have notified implementing measures: all 77/0389 Motor-vehicle towing devices Member States which have notified implementing measures: all 77/0536 Roll-over protection of tractors Member States which have notified implementing measures: all 77/0537 Emission of pollutants from diesel engines Member States which have notified implementing measures: all 77/0538 Lamps for motor vehicles Member States which have notified implementing measures: all 77/0539 Lamps for motor vehicles Member States which have notified implementing measures: all 77/0540 Lamps for motor vehicles Member States which have notified implementing measures: all 77/0541 Safety belts Member States which have notified implementing measures: all 184 77/0649 Driver's field of vision in motor vehicles Member States which have notified implementing measures: all 78/0315 Type-approval of motor vehicles Member States which have notified implementing measures: all except FIN 78/0316 Interior fittings of motor vehicles Member States which have notified implementing measures: all 78/0317 Defrosting systems of motor vehicles Member States which have notified implementing measures: all 78/0318 Windscreen wipers of motor vehicles Member States which have notified implementing measures: all except S 78/0507 Motor-vehicle registration plates Member States which have notified implementing measures: all 78/0547 Type-approval of motor vehicles Member States which have notified implementing measures: all except FIN 78/0548 Heating of motor vehicles Member States which have notified implementing measures: all 78/0549 Wheels of motor vehicles Member States which have notified implementing measures: all 185 78/0632 Interior fittings of motor vehicles Member States which have notified implementing measures: all 78/0665 Air pollution from engines Member States which have notified implementing measures: all except FIN 78/0764 Driver's seat on tractors Member States which have notified implementing measures: all 78/0932 Head restraints of seats of motor vehicles Member States which have notified implementing measures: all 78/0933 Lighting on tractors Member States which have notified implementing measures: all 78/1015 Sound level of motorcycles Member States which have notified implementing measures: all 79/0488 External projections of motor vehicles Member States which have notified implementing measures: all 79/0489 Braking devices of motor vehicles Member States which have notified implementing measures: all 79/0490 Fuel tanks of motor vehicles Member States which have notified implementing measures: all 186 79/0532 Lighting on tractors Member States which have notified implementing measures: all 79/0533 Coupling device of tractors Member States which have notified implementing measures: all 79/0622 Roll-over protection of tractors Member States which have notified implementing measures: all 79/0694 Type-approval of tractors Member States which have notified implementing measures: all 79/0795 Rear-view mirrors of motor vehicles Member States which have notified implementing measures: all 79/1073 Sound level of tractors Member States which have notified implementing measures: all 80/0233 Lighting on motor vehicles Member States which have notified implementing measures: all 80/0720 Doors and windows of tractors Member States which have notified implementing measures: all 80/0780 Rear-view mirrors of two-wheeled motor vehicles Member States which have notified implementing measures: all 187 80/1267 Type-approval of motor vehicles Member States which have notified implementing measures: all except FIN 80/1268 Fuel consumption of motor vehicles Member States which have notified implementing measures: all except FIN 80/1269 Engine power of motor vehicles Member States which have notified implementing measures: all 80/1272 Rear-view mirrors of motor vehicles (motorcycles) Member States which have notified implementing measures: all 81/0333 Fuel tanks of motor vehicles Member States which have notified implementing measures: all 81/0334 Sound level of motor vehicles Member States which have notified implementing measures: all except FIN 81/0575 Safety belts Member States which have notified implementing measures: all 81/0576 Safety belts Member States which have notified implementing measures: all 81/0577 Interior fittings of motor vehicles Member States which have notified implementing measures: all 188 81/0643 Driver's field of vision on motor vehicles Member States which have notified implementing measures: all 82/0244 Lighting on motor vehicles Member States which have notified implementing measures: all 82/0318 Safety belts Member States which have notified implementing measures: all 82/0319 Safety belts Member States which have notified implementing measures: all 82/0890 Tractors Member States which have notified implementing measures: all 82/0953 Roll-over protection of tractors Member States which have notified implementing measures: all 83/0190 Driver's seat on tractors Member States which have notified implementing measures: all 83/0276 Lighting and light-signalling devices on motor vehicles Member States which have notified implementing measures: all 83/0351 Air pollution from engines Member States which have notified implementing measures: all except FIN 189 84/0008 Lighting and light-signalling devices on motor vehicles Member States which have notified implementing measures: all 84/0372 Sound level of motor vehicles Member States which have notified implementing measures: all except FIN 84/0424 Sound level of motor vehicles Member States which have notified implementing measures: all 85/0205 Rear-view mirrors of motor vehicles Member States which have notified implementing measures: all 85/0647 Braking devices of motor vehicles Member States which have notified implementing measures: all 86/0297 Power take-offs of tractors Member States which have notified implementing measures: all 86/0298 Roll-over protection of tractors Member States which have notified implementing measures: all 86/0415 Controls of tractors Member States which have notified implementing measures: all 86/0562 Rear-view mirrors of motor vehicles Member States which have notified implementing measures: all 190 87/0056 Sound level of motorcycles Member States which have notified implementing measures: all 87/0358 Type-approval of motor vehicles Member States which have notified implementing measures: all except FIN 87/0402 Roll-over protection of tractors Member States which have notified implementing measures: all 87/0403 Type-approval of motor vehicles Member States which have notified implementing measures: all except FIN 87/0405 Sound power level of tower cranes Member States which have notified implementing measures: all. 88/0076 Air pollution from motor vehicles Member States which have notified implementing measures: all except FIN 88/0077 Emissions from diesel engines Member States which have notified implementing measures: all 88/0194 Braking devices of motor vehicles Member States which have notified implementing measures: all 88/0195 Engine power of motor vehicles Member States which have notified implementing measures: all 191 88/0297 Type-approval of tractors Member States which have notified implementing measures: all 88/0321 Rear-view mirrors of motor vehicles Member States which have notified implementing measures: all 88/0366 Driver's field of vision in motor vehicles Member States which have notified implementing measures: all 88/0410 Characteristics of tractors Member States which have notified implementing measures: all 88/0411 Steering equipment of tractors Member States which have notified implementing measures: all 88/0412 Maximum speed of tractors Member States which have notified implementing measures: all 88/0413 Roll-over protection of tractors Member States which have notified implementing measures: all 88/0414 Doors and windows of tractors Member States which have notified implementing measures: all 88/0436 Particulate emissions from diesel engines Member States which have notified implementing measures: all except FIN 192 88/0465 Driver's seat on tractors Member States which have notified implementing measures: all 89/0173 Characteristics of tractors Member States which have notified implementing measures: all 89/0235 Sound level of motorcycles Member States which have notified implementing measures: all. 89/0277 Lamps for motor vehicles Member States which have notified implementing measures: all 89/0278 Lighting on motor vehicles Member States which have notified implementing measures: all 89/0297 Lateral protection of motor vehicles Member States which have notified implementing measures: all 89/0458 Emissions from motor vehicles Member States which have notified implementing measures: all except FIN 89/0491 Sound level of motor vehicles Member States which have notified implementing measures: all 89/0516 Lamps for motor vehicles Member States which have notified implementing measures: all 193 89/0517 Headlamps for motor vehicles Member States which have notified implementing measures: all 89/0518 Fog lamps for motor vehicles Member States which have notified implementing measures: all 89/0680 Protection structures - tractors Member States which have notified implementing measures: all 89/0681 Protection structures - tractors Member States which have notified implementing measures: all 89/0682 Protection structures - tractors Member States which have notified implementing measures: all 90/0628 Safety belts Member States which have notified implementing measures: B, DK, EL, E, F, IRL, I, L, NL, P, UK Germany - 92/0125, no measures notified, Art. 169 letter in 1992 90/0629 Safety belts Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, I, L, NL, P, UK 90/0630 Driver's field of vision in motor vehicles Member States which have notified implementing measures: B, D, DK, EL, E, F, IRL, I, L, NL, P, UK 194 91/0226 Spray-suppression systems of motor vehicles Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, L, NL, P, UK Italy - 92/0619, no measures notified, Art. 169 letter in 1992 91/0328 Roadworthiness tests for motor vehicles and their trailers Member States which have notified implementing measures: B, D, DK, EL, E, F, I, L, NL, P, UK. Ireland - 93/0764, no measures notified, Art. 169 letter in 1993 91/0422 Braking devices of motor vehicles Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, I, NL, P. Luxembourg - 92/0868, no measures notified, reasoned opinion in 1992 United Kingdom- 92/0931, no measures notified, Art. 169 letter in 1992 91/0441 Emissions from motor vehicles Member States which have notified implementing measures: all. 91/0542 Gas emissions from diesel engines Member States which have notified implementing measures: all 91/0662 Interior fittings of motor vehicles Member States which have notified implementing measures: all. 91/0663 Lighting and light-signalling devices on motor vehicles Member States which have notified implementing measures: all. 195 92/0021 Masses and dimensions of motor vehicles Member States which have notified implementing measures: all. 92/0022 Glazing on motor vehicles Member States which have notified implementing measures: all. 92/0023 Tyres for motor vehicles Member States which have notified implementing measures: all. 92/0024 Speed limitation devices Member States which have notified implementing measures: B, DK, D, EL, E, IRL, I, L, NL, P, UK. France - 93/0216, no measures notified, Art. 169 letter in 1993 92/0053 Type-approval of motor vehicles Member States which have notified implementing measures: B, DK, E, IRL, I, L, NL, P, UK. Germany - 93/0072, no measures notified, Art. 169 letter in 1993 Greece - 93/0122, no measures notified, Art. 169 letter in 1993 France - 93/0209, no measures notified, Art. 169 letter in 1993 92/0061 Type-approval of two- and three-wheel motor vehicles Member States which have notified implementing measures: all United Kingdom - 94/0497, no measures notified, reasoned opinion h 1995 92/0062 Steering equipment for motor vehicles Member States which have notified implementing measures: all. 196 92/0097 Permissible sound level and the exhaust system of motor vehicles Member States which have notified implementing measures: A, S, FIN, DK, D, E, IRL, I, P, UK. Belgium - 93/0632, no measures notified Art. 169 letter in 1993 Greece - 93/0703, no measures notified, Art. 169 letter in 1993 France - 93/0750, no measures notified, Art. 169 letter in 1993 Luxembourg 93/0822, no measures notified, Art. 169 letter in 1993 Netheriands - 93/0838, no measures notified, Art. 169 letter in 1993 92/0114 Cabs of motor vehicles of category N Member States which have notified implementing measures: all Germany - 93/0688, no measures notified, Art. 169 letter in 1993. terminated in 1995 93/0014 Braking systems of two- and three-wheel motor vehicles Member States which have notified implementing measures: all 93/0029 Identification of controls, tell-tales and indicators for two- or three-wheel motor vehicles Member States which have notified implementing measures: all except B Belgium - 95/0017, no measures notified, Art. 169 letter in 1995. 93/0030 Audible warning devices for two- or three-wheel motor vehicles Member States which have notified implementing measures: all except B. Belgium - 95/0018, no measures notified, Art. 169 letter in 1995. 197 93/0031 Stands for two- or three-wheel motor vehicles Member States which have notified implementing measures: all except B. Belgium - 95/0019, no measures notified, Art. 169 letter in 1995. 93/0032 Passenger hand-holds for two- or three-wheel motor vehicles Member States which have notified implementing measures: all except B. Belgium - 95/0020, no measures notified, Art. 169 letter in 1995 93/0033 Devices to prevent unauthorized use of two- or three-wheel motor vehicles Member States which have notified implementing measures: all except B. Belgium - 95/0021, no measures notified, Art. 169 letter in 1995 93/0034 Statutory markings for two- or three-wheel motor vehicles Member States which have notified implementing measures: all except B. Belgium - 95/0022, no measures notified, Art. 169 letter in 1995 93/0059 Air pollution by emissions from motor vehicles Member States which have notified implementing measures: A, S, FIN, DK. Belgium - 93/0977, no measures notified Art. 169 letter in 1993 Germany - 93/0995, no measures notified, Art. 169 letter in 1993 Greece - 93/1023, no measures notified, Art. 169 letter in 1993 Spain - 93/1004, no measures notified, Art. 169 letter in 1993 France - 93/1018, no measures notified, Art. 169 letter in 1993 Ireland - 93/1040, no. measures notified, Art. 169 letter in 1993 Italy - 93/1053, no measures notified, Art. 169 letter in 1993 Luxembourg - 93/1071, no measures notified, Art. 169 letter in 1993 Netheriands - 93/1061, no measures notified, Art. 169 letter in 1993 Portugal - 93/1083, no measures notified, Art. 169 letter in 1993 United Kingdom- 93/1094, no measures notified, Art. 169 letter in 1993 198 93/0081 Type-approval of motor vehicles Member States which have notified implementing measures: B, D, EL, E, F, IRL, L, NL, UK Denmark - 94/0805, no measures notified, Art. 169 letter in 1995 France - 94/0848, no measures notified, Art. 169 letter in 1995, terminated in 1995 Italy - 94/0888, no measures notified, Art. 169 letter in 1995 Portugal - 94/0954, no measures notified, Art. 169 letter in 1995 93/0091 Interior fittings of motor vehicles Member States which have notified implementing measures: all 93/0116 Fuel consumption of motor vehicles Member States which have notified implementing measures: B, DK, D, EL, E, I, L, NL, P, UK. Greece - 94/0539, no measures notified, Art. 169 letter in 1994, terminated in 1995 France - 94/0560, no measures notified, Art. 169 letter in 1994 Ireland - 94/0567, no measures notified, Art. 169 letter in 1994 Luxembourg - 94/0582, no measures notified, Art. 169 letter in 1994, terminated in 1995 94/0012 Pollution by emissions from motor vehicles Member States which have notified implementing measures: all except B, EL, A. Belgium - 94/0975, no measures notified, Art. 169 letter in 1995. Greece - 94/0974, no measures notified, Art. 169 letter in 1995. 94/0020 Motor vehicles Member States which have notified implementing measures: A, FIN 199 94/0053 Identification of motor vehicles Member States which have notified implementing measures: all except B, L, NL,P,UK, FIN,S Belgium - 95/240- no measures notified, Art. 169 letter in 1995 Portugal - 95/372- no measures notified, Art. 169 letter in 1995 United Kingdom - 95/386-no measures notified, Art. 169 letter in 1995 94/0068 Windscreen wiper and washer systems of motor vehicles Member States which have notified implementing measures: all except B, L, NL,P, UK, S Luxembourg: 95/0578 no measures notified, Art. 169 letter in 1995 Netheriands: 95/0595 no measures notified, Art. 169 letter in 1995 Portugal: 95/0621 no measures notified, Art. 169 letter in 1995 United Kingdom: 95/0639 no measures notified, Art. 169 letter in 1995 94/0078 Wheel guards of motor vehicles Member States which have notified implementing measures: all except B, L, NL,P, UK, S Luxembourg: 95/0580 no measures notified, Art. 169 letter in 1995 Netheriands: 95/0597 no measures notified, Art. 169 letter in 1995 Portugal: 95/0623 no measures notified, Art. 169 letter in 1995 United Kingdom: 95/0642 no measures notified, Art. 169 letter in 1995 94/0054 Wheel guards of motor vehicles Member States which have notified implementing measures: D 200 Construction products 89/0106 Construction products Member States which have notified implementing measures: DK, D, E, EL, F, FIN, IRL, I, L, NL, P, S, UK. Belgium - 92/0026, no measures notified, reasoned opinion in 1993 Machinery 69/0493 Crystal glass Member States which have notified implementing measures: all except FIN, S, A 71/0316 Measuring instruments Member States which have notified implementing measures: all 71/0317 Medium accuracy weights Member States which have notified implementing measures: all 71/0318 Gas volume meters Member States which have notified implementing measures: all 71/0319 Meters for liquids Member States which have notified implementing measures: all 201 71/0347 Measuring of grain Member States which have notified implementing measures: all 71/0348 Meters for liquids Member States which have notified implementing measures: all 71/0349 Calibration of the tanks of vessels Member States which have notified implementing measures: all except S 72/0427 Measuring instruments Member States which have notified implementing measures: all 73/0023 Electrical equipment - low tension Member States which have notified implementing measures: all 73/0360 Weighing instruments Member States which have notified implementing measures: all except A, S 73/0361 Marking of wire-ropes, chains and hooks Member States which have notified implementing measures: all 73/0362 Measures of length Member States which have notified implementing measures: all 74/0148 Weights of above-medium accuracy Member States which have notified implementing measures: all 202 74/0331 Gas volume meters Member States which have notified implementing measures: all except FIN 75/0033 Water meters Member States which have notified implementing measures: all 75/0106 Prepackaged liquids Member States which have notified implementing measures: all 75/0107 Bottles used as measuring containers Member States which have notified implementing measures: all 75/0324 Aerosols Member States which have notified implementing measures: all 75/0410 Continuous totalizing weighing machines Member States which have notified implementing measures: all except FIN 76/0117 Electrical equipment Member States which have notified implementing measures: all 76/0211 Prepackaged products Member States which have notified implementing measures: all 76/0434 Marking of wire-ropes, chains and hooks Member States which have notified implementing measures: all 203 76/0696 Non-automatic weighing machines Member States which have notified implementing measures: all except A, S 76/0764 Thermometers Member States which have notified implementing measures: all 76/0765 Alcoholometers Member States which have notified implementing measures: all 76/0766 Alcohol tables Member States which have notified implementing measures: all 76/0767 Pressure vessels Member States which have notified implementing measures: all 76/0891 Electrical energy meters Member States which have notified implementing measures: all 77/0095 Taximeters Member States which have notified implementing measures: all except S 77/0313 Measuring of liquids Member States which have notified implementing measures: all except S 78/0365 Gas volume meters Member States which have notified implementing measures: all 204 78/0629 Measures of length Member States which have notified implementing measures: all 78/0891 Prepackaging Member States which have notified implementing measures: all 78/1031 Automatic checkweighing machines Member States which have notified implementing measures: all except S 79/0196 Electrical equipment Member States which have notified implementing measures: all 79/0830 Water meters Member States which have notified implementing measures: all 79/1005 Prepackaged liquids Member States which have notified implementing measures: all 80/0181 Units of measurement Member States which have notified implementing measures: all 80/0232 Prepackaged products Member States which have notified implementing measures: all 82/0621 Electrical energy meters Member States which have notified implementing measures: all 205 82/0622 Weighing instruments Member States which have notified implementing measures: all 82/0623 Gas volume meters Member States which have notified implementing measures: all except S 82/0624 Alcoholometers Member States which have notified implementing measures: all except S 82/0625 Measuring systems for liquids Member States which have notified implementing measures: all except S 83/0128 Clinical thermometers - mercury Member States which have notified implementing measures: all except S 83/0575 Measuring instruments Member States which have notified implementing measures: all 84/0047 Electrical equipment Member States which have notified implementing measures: all 84/0414 Thermometers Member States which have notified implementing measures: all except S 84/0525 Steel gas cylinders Member States which have notified implementing measures: all 206 84/0526 Aluminium gas cylinders Member States which have notified implementing measures: all 84/0527 Welded steel gas cylinders Member States which have notified implementing measures: all 84/0528 Lifting appliances Member States which have notified implementing measures: all 84/0529 Electrically-operated lifts Member States which have notified implementing measures: all 84/0532 Construction plant Member States which have notified implementing measures: all 84/0539 Electro-medical equipment Member States which have notified implementing measures: A, B, DK, D, EL, E, F, IRL, I, L, NL, P, UK. 85/0001 Units of measurement Member States which have notified implementing measures: all 85/0010 Prepackaged liquids Member States which have notified implementing measures: all 85/0146 Measures of length Member States which have notified implementing measures: all 207 86/0096 Prepackaging Member States which have notified implementing measures: all 86/0217 Pressure gauges Member States which have notified implementing measures: all except S 86/0295 Construction plant Member States which have notified implementing measures: all 86/0296 Construction plant Member States which have notified implementing measures: all 86/0312 Electrically-operated lifts Member States which have notified implementing measures: all 86/0663 Self-propelled industrial trucks Member States which have notified implementing measures: all 87/0354 Industrial products - distinctive numbers and letters Member States which have notified implementing measures: all 87/0355 Measuring instruments Member States which have notified implementing measures: all 87/0356 Prepackaged products Member States which have notified implementing measures: all 208 87/0404 Pressure vessels Member States which have notified implementing measures: all Italy - 93/4069, not properly applied, reasoned opinion in 1994 88/0316 Prepackaged liquids Member States which have notified implementing measures: all 88/0571 Electrical equipment Member States which have notified implementing measures: all 88/0665 Attestations and certificates Member States which have notified implementing measures: all 89/0240 Self-propelled industrial trucks Member States which have notified implementing measures: all 89/0336 Electromagnetic compatibility Member States which have notified implementing measures: A, FIN, S, B, DK, D, F, L, I, NL, UK, EL, E, P Belgium - 92/0652, no measures notified, reasoned opinion in 1993, terminated in 1995 Greece - 92/0742, no measures notified, reasoned opinion in 1993, terminated in 1995 Spain - 92/0743, no measures notified, reasoned opinion in 1993, terminated in 1995 Ireland - 92/0793, no. measures notified, reasoned opinion in 1993, referral in 1994- Case C-94/240 Netheriands - 92/0875, no measures notified, reasoned opinion in 1993, referral in 1994, terminated in 1995 209 89/0392 Machinery Member States which have notified implementing measures: A, FIN, S, B, DK, D, F, IRL, L, NL, UK, EL, E, P Italy - 92/0328, no measures notified, referral in 1994 - Case C-94/182 89/0617 Units of measurement Member States which have notified implementing measures: B, DK, D, F, IRL, I, L, NL, P, UK, FIN, S. Greece - 92/0272, no measures notified, suppl. reasoned opinion in 1994 Spain - 92/0157, no measures notified, suppl. reasoned opinion in 1994 Portugal - 92/0510, no measures notified, reasoned opinion in 1993, (to be terminated in 1995) 89/0676 Prepackaged liquids Member States which have notified implementing measures: all 89/0686 Personal protective equipment Member States which have notified implementing measures: all. 90/0384 Weighing instruments Member States which have notified implementing measures: all 90/0385 Active implantable medical devices Member States which have notified implementing measures: FIN, S, DK, D, F, IRL, I, L, NL, UK, EL, E, P Belgium 92/0657, no measures notified, reasoned opinion in 1993, referral in 1994 - Case C-95/239 Germany - 92/0697, no measures notified, reasoned opinion in 1994, terminated in 1995 210 Greece - 92/0737, no measures notified, reasoned opinion in 1993 France - 92/0773, no measures notified, reasoned opinion in 1993, terminated in 1995 Ireland - 92/0798, no measures notified, reasoned opinion in 1993, terminated in 1995 90/0396 Gas appliances Member States which have notified implementing measures: all except A 90/0486 Electrically-operated lifts Member States which have notified implementing measures: all. 90/0487 Electrical equipment Member States which have notified implementing measures: all. Italy - 92/0824, no measures notified, referral in 1994 90/0488 Pressure vessels Member States which have notified implementing measures: all 91/0368 Machinery (amendment) Member States which have notified implementing measures: A, FIN, S, B, DK, D, F, IRL, L, NL, UK, EL, E, P Italy - 92/0368, no measures notified, reasoned opinion in 1993, referral in 1993 - Case C-94/182 92/0031 Electromagnetic compatibility (amendment) Member States which have notified implementing measures: A, B, DK, D, F, FIN, I, L, NL, UK, EL, E, P, S Ireland 92/0815, no measures notified, reasoned opinion in 1993, referral in 1994 - Case C-94/240 211 Belgium - 92/0676, no measures notified, referral in 1994, terminated in 1995 Netheriands - 92/0889, no measures notified, reasoned opinion in 1993, referral in 1994 93/0042 Medical devices Member States which have notified implementing measures: DK, D, F, FIN, IRL, NL, UK, EL, P, S Belgium 94/0784, no measures notified, reasoned opinion in 1995 Luxembourg 94/0901, no measures notified, reasoned opinion in 1995 Greece 94/0988, no measures notified, Art. 169 letter in 1995, terminated in 1995 Spain 94/0828, no measures notified, reasoned opinion in 1995 Italy 94/0878, no measures notified, reasoned opinion in 1995 Netheriands 94/0913, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal 94/0935, no measures notified, Art. 169 letter in 1994, terminated in 1995 United Kingdom 94/0958, no measures notified, Art. 169 letter in 1995, terminated in 1995 93/0044 Machinery (amendment) Member States which have notified implementing measures: B, DK, IRL, NL, UK, E, P, A, FIN, S Germany 94/0812, no measures notified, reasoned opinion in 1995 Greece 94/0986, no measures notified, reasoned opinion in 1995 France 94/0839, no measures notified, reasoned opinion in 1995 Ireland 94/0858, no measures notified, Art. 169 letter in 1995, terminated in 1995 Italy 94/0879, no measures notified, reasoned opinion in 1995 Luxembourg 94/0902, no measures notified, reasoned opinion in 1995 Netheriands 94/0914, no measures notified, reasoned opinion in 1995, terminated in 1995 Portugal 94/0936, no measures notified, Art. 169 letter in 1995, terminated in 1995 212 93/0095 Personal protective equipment Member States which have notified implementing measures: B, DK, IRL, L, NL, UK, EL, E, P, A, FIN, S Belgium 94/0404, no measures notified, reasoned opinion in 1995, terminated in 1995 Germany 94/0418, no measures notified, reasoned opinion in 1995 Denmark 94/0411, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece 94/0421, no measures notified, Art. 169 letter in 1995, terminated in 1995 France 94/0451, no measures notified, reasoned opinion in 1995 Italy 94/0470, no measures notified, reasoned opinion in 1995 Luxembourg 94/0476, no measures notified, reasoned opinion in E8$ terminated in 1995 Portugal 94/0493, no measures notified, Art. 169 letter in 1994, terminated in 1995 Netheriands 94/0481, no measures notified, Art. 169 letter in 1994, terminated in 1995 94/0001 Aerosol dispensers Member States which have notified implementing measures: B, DK, F, IRL, L, NL, EL, E, P, A, FIN Germany 94/0820, no measures notified, reasoned opinion in 1995 Denmark 94/0806, no measures notified, Art. 169 letter in 1995, terminated in 1995 Spain 94/0834, no measures notified, Art. 169 letter in 1995, terminated in 1995 Greece 94/0975, no measures notified, Art. 169 letter in 1995, terminated in 1995 France 94/0851, no measures notified, Art. 169 letter in 1995, terminated in 1995 Italy 94/0891, no measures notified, reasoned opinion in 1995 Ireland 94/0867, no measures notified, reasoned opinion in 1995,. terminated in 1995 Luxembourg 94/0909, no measures notified, Art. 169 letter in 1995, terminated in 1995 Netheriands 94/0924, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal 94/0948, no measures notified, Art. 169 letter in 1995, 213 terminated in 1995 United Kingdom 94/0971, no measures notified, reasoned opinion in 1995 94/0009 Electrical equipment in potentially explosive atmospheres Member States which have notified implementing measures: DK, L 94/0026 Electrical equipment in potentially explosive atmospheres (amendment 79/196) Member States which have notified implementing measures: A, FIN, S, DK, D, F, I, NL, UK, EL, E Belgium 95/0237, no measures notified, Art. 169 letter in 1995 Spain 95/0289, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) Greece 95/0275, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) Ireland 95/0310, no measures notified, Art. 169 letter in 1995 Luxembourg 95/0342, no measures notified, reasoned opinion in 1995 Portugal 95/0369, no measures notified, reasoned opinion in 1995 United Kingdom 95/0383, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) 214 Free movement - special arrangements 91/0477 Acquisition and possession of weapons Member States which have notified implementing measures: all, except A, FIN and S 93/0007 Return of cultural objects unlawfully removed from the territory of a Member State Member States which have notified implementing measures: DK, E, FIN, F, IRL, NL, P, S, UK Spain - 94/0550, no measures notified, Art. 169 letter in 1994, terminated in 1995 France - 94/0556, no measures notified, Art. 169 letter in 1994, terminated in 1995 Netheriands - 94/0584, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal -, 94/0591, no measures notified, Art. 169 letter in 1994, terminated in 1995 - 94/0532, no measures notified, Art. 169 letter in 1994 Germany Belgium - 94/0518, no measures notified, Art. 169 letter in 1994 Greece - 94/0546, no measures notified, Art. 169 letter in 1994 - Italy - 94/0569, no measures notified, Art. 169 letter in 1994 Luxembourg 94/0578, no measures notified, Art. 169 letter in 1994 - 215 Persons Right of residence 64/0221 Public policy and public health Member States which have notified implementing measures: all 73/0148 Movement and residence of nationals of the Member States Member States which have notified implementing measures: all 90/0364 Right of residence Member States which have notified implementing measures: B, DK, EL, E, F, IRL, I, L NL, P, UK United Kingdom - 92/0920, no measures notified, reasoned opinion in 1993, terminated in 1995 - no measures notified, referral in 1995 Germany 90/0365 Right of residence for employees and self-employed persons who have ceased their occupational activity Member States which have notified implementing measures: B, DK, E, EL, F, IRL, I, L, NL, P, UK United Kingdom - 92/0921, no measures notified, reasoned opinion Germany - no measures notified, referral in 1995 in 1993, terminated in 1995 90/0366 Right of residence for students (Directive annulled by Court of Justice. See Directive 93/96 which replaces it) 216 93/0096 Right of residence for students Member States which have notified implementing measures: B, DK, E, EL, F, IRL, I, L, NL, P, UK Germany - no measures notified, reasoned opinion in 1995, referral in 1995 Voting rights 93/0109 Right to vote and stand as candidate for elections to European Parliament Member States which have notified implementing measures: all Mutual recognition of diplomas 63/0261 Freedom of establishment for agricultural workers Member States which have notified implementing measures: all 63/0262 Freedom of establishment in agriculture - abandoned holdings Member States which have notified implementing measures: all 64/0222 Wholesale trade and intermediaries in commerce, industry and small craft industries (transitional measures) Member States which have notified implementing measures: all 217 64/0223 Freedom of establishment - wholesale trade Member States which have notified implementing measures: all 64/0224 Freedom of establishment - intermediaries in commerce, industry and small craft industries Member States which have notified implementing measures: all 64/0427 Processing industries (transitional measures) Member States which have notified implementing measures: all 64/0428 Freedom of establishment - mining and quarrying Member States which have notified implementing measures: all 64/0429 Freedom of establishment - processing industries Member States which have notified implementing measures: all except A 65/0001 Freedom to provide services - agriculture Member States which have notified implementing measures: all 66/0162 Freedom of establishment - electricity, gas, water and sanitary services Member States which have notified implementing measures: all 67/0043 Freedom of establishment - real estate agents Member States which have notified implementing measures: all 67/0530 Freedom for farmers to transfer from one holding to another Member States which have notified implementing measures: all except FIN 218 67/0531 Agricultural leases Member States which have notified implementing measures: all 67/0532 Agriculture - freedom of access to cooperatives Member States which have notified implementing measures: all 67/0654 Freedom of establishment - forestry Member States which have notified implementing measures: all 68/0192 Freedom of access to credit for farmers Member States which have notified implementing measures: all 68/0363 Freedom of establishment - retail trade Member States which have notified implementing measures: all 68/0364 Retail trade (transitional measures) Member States which have notified implementing measures: all 68/0365 Freedom of establishment - food-manufacturing industries Member States which have notified implementing measures: all 68/0366 Food-manufacturing industries Member States which have. notified implementing measures: all Spain - 91/2377, not properly implemented, Art. 169 letter in 1993, postponed in 1994 and 1995 219 68/0367 Freedom of establishment - personal services Member States which have notified implementing measures: all 68/0368 Personal services (catering) (transitional measures) Member States which have notified implementing measures: all 68/0369 Freedom of establishment - film distribution Member States which have notified implementing measures: all except S 68/0415 Freedom of access to aid for farmers Member States which have notified implementing measures: all 69/0082 Activities of the self-employed in oil and gas exploration Member States which have notified implementing measures: all 70/0451 Freedom of establishment - film production Member States which have notified implementing measures: all 70/0522 Freedom of establishment - wholesale coal trade Member States which have notified implementing measures: all 70/0523 Wholesale coal trade (transitional measures) Member States which have notified implementing measures: all 71/0018 Freedom of establishment - agriculture and horticulture Member States which have notified implementing measures: all 220 74/0556 Toxic products (transitional measures) Member States which have notified implementing measures: all 74/0557 Freedom of establishment - toxic products Member States which have notified implementing measures: all 75/0362 (*) Mutual recognition of medical qualifications Member States which have notified implementing measures: all Spain - 90/0981, not properly implemented, reasoned opinion in 1991, suspended in 1992 and 1993, immediate action (reasoned opinion) in 1995 (*) This Directive was consolidated by Directive 93/16 75/0363 (*) Activities of doctors Member States which have notified implementing measures: all (*) This Directive was consolidated by Directive 93/16 75/0368 Freedom of establishment - various activities Member States which have notified implementing measures: all 75/0369 Freedom of establishment - itinerant activities Member States which have notified implementing measures: all 77/0249 Lawyers Member States which have notified implementing measures: all 221 77/0452 Mutual recognition of qualifications - nurses Member States which have notified implementing measures: all United Kingdom - 91/4846, not properly applied, Art. 169 letter in 1992, reasoned opinion in 1995 77/0453 Activities of nurses Member States which have notified implementing measures: all Spain - 91/4352, not properly applied, Art. 169 letter in 1993, suppl. Art. 169 letter in 1994, immediate action (suppl. Art. 169 letter) in 1995 78/0686 Dentists Member States which have notified implementing measures: all Spain - 90/411, not properly applied, reasoned opinion in 1992, Germany Germany postponed in 1995 - 87/434, not properly applied, reasoned opinion in 1992, referral decided in 1993, referral in 1995 - 91/2098, not properly applied, Art. 169 letter in 1992, terminated in 1995 Italy - 90/412, not properly applied, referral in 1993, judgment in 1995 - Case C-93/40) 78/0687 Dentists Member States which have notified implementing measures: all Spain - 90/411, not properly applied, reasoned opinion in 1992, postponed in 1995 Italy - 90/412, not properly applied, referral in 1993, judgment in 1995 - Case C-93/40 222 78/1026 Veterinary surgeons Member States which have notified implementing measures: all 78/1027 Veterinary surgeons Member States which have notified implementing measures: all 80/0154 Mutual recognition of qualifications - midwives Member States which have notified implementing measures: all 80/0155 Activities of midwives Member States which have notified implementing measures: all 80/1057 Acquired rights - doctors, nurses, dentists and veterinary surgeons Member States which have notified implementing measures: all 80/1273 Mutual recognition of qualifications - midwives Member States which have notified implementing measures: all 82/0076 Doctors Member States which have notified implementing measures: all 82/0470 Services incidental to transport Member States which have notified implementing measures: all 82/0489 Hairdressers Member States which have notified implementing measures: all Spain - 91/2377, not properly implemented, Art. 169 letter in 1993, postponed in 1994 223 85/0384 Architects Member States which have notified implementing measures: all Spain - 90/0349, not properly implemented, referral in 1992, immediate action (referral) in 1995 Italy - 94/0003, not properly implemented, Art. 169 letter in 1994, reasoned opinion in 1995. 85/0432 Pharmacists Member States which have notified implementing measures: all Italy - 91/820, not properly applied, referral in 1994 - Case C- 94/307 85/0433 Pharmacists Member States which have notified implementing measures: all 85/0584 Pharmacists Member States which have notified implementing measures: all 85/0614 Architects Member States which have notified implementing measures: all Spain - 90/0349, not properly implemented, reasoned opinion in 1992, suspended (referral) in 1993, ?? (referral) in 1995 86/0017 Architects Member States which have notified implementing measures: all Spain - 90/0349, not properly implemented, reasoned opinion in 1992, suspended (referral) en 1993, ?? (referral) in 1995 224 86/0457 (*) Training in general medicine Member States which have notified implementing measures: all Germany - 91/0787, not properly applied, Art. 169 letter in 1991, suppl. Art. 169 letter decided in 1993, immediate action (suppl. Art. 169 letter) in 1995 (*) This Directive was consolidated by Directive 93/16 89/0048 Mutual recognition of higher-education diplomas Member States which have notified implementing measures: all except A, B et EL. Belgium - 91/653, no measures notified, referral in 1994, judgment in 1995 - CaseC-94/316 Greece - 91/668, no measures notified, reasoned opinion in 1992, referral in 1994, judgment in 1995 - Case C-93/365 89/0594 Mutual recognition of diplomas - doctors, nurses, dentists, veterinary surgeons and midwives Member States which have notified implementing measures: all except E et P Spain - 92/154, no measures notified, reasoned opinion in 1995 Portugal - 92/512, no measures notified, reasoned opinion in 1995 - 92/2292, not properly implemented, reasoned opinion France decided in 1994, immediate action (reasoned opinion) en 1995 225 89/0595 Mutual recognition of diplomas - nurses Member States which have notified implementing measures: all except UK United Kingdom - 92/534, no measures notified, suspended (reasoned opinion) in 1993, immediate action (reasoned opinion) in 1995 90/0658 (*) Mutual recognition of diplomas - unification of Germany Member States which have notified implementing measures: D, F, I, EL, IRL, L, NL, DK United Kingdom - 92/551, no measures notified, suspended (reasoned opinion) in 1993, immediate action (reasoned opinion) in 1995 Belgium - 92/0055, no measures notified, reasoned opinion in 1994, Spain postponed in 1995 - 92/0175, no measures notified, reasoned opinion in 1993, referral in 1995 Portugal - 92/487, no measures notified, reasoned opinion in 1993, immediate action (reasoned opinion) in 1994 and 1995 (*) This Directive was consolidated by Directive 93/16 92/0051 Mutual recognition of diplomas - second general system Member States which have notified implementing measures: D, DK, E, I, FIN, F, L, NL, S Belgium - 94/0623, no measures notified, reasoned opinion in 1995 - 94/0635, no measures notified, postponed in 1994, Denmark terminated in 1995 Spain - 94/0660, no measures notified, Art. 169 letter in 1994, terminated in 1995 France - 94/0674, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece - 94/0702, no measures notified, reasoned opinion in 1995 - 94/0707, no measures notified, reasoned opinion in 1995 Ireland Portugal - 94/0749, no measures notified, reasoned opinion in 1995 - 94/0767, no measures notified, reasoned opinion United Kingdom in 1995 226 94/0038 Amendment of Annexes C and D to Directive 92/51 Implementing measures not required in countries which have already transposed Directive 92/51 (except for Italy, which has not notified implementing measures 95/0043 Amendment of Annexes C and D to Directive 92/51 Implementing measures not required in countries which have already transposed Directive 92/51 (except for Italy, which has not notified implementing measures Self-employed commercial agents 86/653 Self-employed commercial agents Member States which have notified implementing measures: all Belgium - 90/0444, no measures notified, reasoned opinion in 1992, terminated in 1995 Ireland Italy United Kingdom - 94/2287, incorrect transposai, Art. 169 letter in 1995 - 95/2178, incorrect transposai, Art. 169 letter in 1995 - 95/2182, incorrect transposai 227 Services Audiovisual media 89/0552 Television without frontiers Member States which have notified implementing measures: all. Belgium - 92/2159, not properly implemented, referral in 1994 Greece - 93/2158, not properly implemented, reasoned opinion in 1994 France - 92/2164, not properly implemented, reasoned opinion in 1994 Ireland - 92/2163, not properly implemented, reasoned opinion in 1995 Italy Netheriands - 92/2168, not properly implemented, referral in 1994 - 92/2165, not properly opinion in 1995 implemented, reasoned Portugal - 92/2166, not properly implemented, reasoned opinion in 1994 United Kingdom - 92/2167, not properly implemented, referral in 1994 United Kingdom - 94/4089, not properly applied, reasoned opinion in 1995 Telecommunications 87/0372 Cellular communications - frequency bands to be reserved Member States which have notified implementing measures: all 90/0387 Telecommunications - open network provision (ONP) Member States which have notified implementing measures: all. 228 90/0544 Frequency bands for radio paging Member States which have notified implementing measures: all Ireland - 92/0308, no measures notified, Art. 169 letter in 1992, terminated in 1995 91/0263 Telecommunications terminal equipment Member States which have notified implementing measures: DK, D, E, F, I, NL, P, UK Belgium - 92/0966, no measures notified, Art. 169 letter in 1992, referral in 1994 - Case C-94/218 Greece - 92/0975, no measures notified, Art. 169 letter in 1992, referral in 1994 - Case C-94/260 Ireland - 92/0985, no measures notified, Art. 169 letter in 1992, Luxembourg referral in 1994 - 92/0994, no measures notified, Art. 169 letter in 1992, referral in 1994 91/0287 Cordless telecommunications - frequency bands Member States which have notified implementing measures: all 92/0044 Application of open network provision to leased lines Member States which have notified implementing measures: B, DK, D, F, IRL, I, NL, P, UK. Denmark - 93/0651, no measures notified, Art. 169 letter in 199 3, terminated in 1995 Greece - 93/0712, no measures notified, referral in 1994-Case Spain C-94/259 - 93/0725, no measures notified, referral in 1994-Case C- 94/266 Ireland - 93/0770, no measures notified, referral in 1994-Case C-94/223, terminated in 1995 229 Italy - 93/0791, no measures notified, reasoned opinion in 1994, terminated in 1995 Luxembourg - 93/0816, no measures notified, referral in 1994- Case C-94/220 Portugal - 93/0851, no measures notified, reasoned opinion in 1994, terminated in 1995 United Kingdom - 93/0878, no measures notified, Art. 169 letter in 1993, terminated in 1995 93/0097 Satellite earth station equipment Member States which have notified implementing measures: DK, D, F, UK. Belgium - 95/0399, no measures notified, Art. 169 letter in 1995 - 95/0453, no measures notified, Art. 169 letter in 1995 Greece - 95/0479, no measures notified, Art. 169 letter in 1995 Spain - 95/0524, no measures notified, Art. 169 letter in 1995 Ireland Italy - 95/0544, no measures notified, Art. 169 letter in 1995 Luxembourg - 95/0567, no measures notified, Art. 169 letter in 1995 95/0588, no measures notified, Art. 169 letter in 1995 Netheriands - Portugal - 95/0605, no measures notified, Art. 169 letter in 1995 Financial services 64/0225 Freedom of establishment Member States which have notified implementing measures: all 72/0166 First Directive on insurance for motor vehicles Member States which have notified implementing measures: all 230 73/0183 Freedom of establishment for banks Member States which have notified implementing measures: all 73/0239 First Directive on insurance other than life assurance Member States which have notified implementing measures: all 77/0092 Freedom of establishment - insurance brokers Member States which have notified implementing measures: all Luxembourg - 92/2284, not properly applied, reasoned opinion in 1995 Greece Portugal - 90/6022, not properly applied, Art. 169 letter in 1994, - 91/0775, not properly applied, reasoned opinion in 1994 terminated in 1995 77/0780 First Directive on the coordination of banking laws Member States which have notified implementing measures: all 78/0473 Community co-insurance Member States which have notified implementing measures: all 79/0267 First Directive on life assurance Member States which have notified implementing measures: all 79/0279 Admission of securities to stock-exchange listing Member States which have notified implementing measures: all 80/0390 Admission of securities to stock-exchange listing - particulars to be published Member States which have notified implementing measures: all 231 82/0121 Information to be published regularly by companies Member States which have notified implementing measures: all 84/0005 Second Directive on motor-vehicle insurance Member States which have notified implementing measures: all 84/0641 Tourist assistance Member States which have notified implementing measures: all 85/0611 Undertakings for collective investment Member States which have notified implementing measures: all 86/0635 Annual accounts of banks Member States which have notified implementing measures: all Greece - 91/0370, no measures notified, referral in 1994, terminated in 1995 87/0343 Credit insurance and suretyship insurance Member States which have notified implementing measures: all 87/0344 Legal-expenses insurance Member States which have notified implementing measures: all 87/0345 Admission of securities to stock-exchange listing - particulars to be published Member States which have notified implementing measures: all 88/0220 232 Investment policy of certain undertakings for collective investment in transferable securities Member States which have notified implementing measures: all 88/0357 Second Directive on insurance other than life assurance Member States which have notified implementing measures: B, DK, D, E, F, IRL, I, L, NL, P, UK, A, FIN, S Greece - 90/0631, no measures notified, referral (C-94/207) in 1994, judgment on 29. 6. 95 88/0627 Major holdings in a listed company Member States which have notified implementing measures: all 89/0117 Publication of accounting documents of credit institutions Member States which have notified implementing measures: all Greece - 92/0279, no measures notified, referral in 1994, terminated in 1995 89/0298 Prospectuses for transferable securities on offer to the public Member States which have notified implementing measures: all 89/0299 Own funds of credit institutions Member States which have notified implementing measures: all 89/0592 Insider dealing Member States which have notified implementing measures: all 233 89/0646 Second banking Directive Member States which have notified implementing measures: all 89/0647 Solvency ratio for credit institutions Member States which have notified implementing measures: all 90/0211 Admission of securities to stock-exchange listing - particulars to be published Member States which have notified implementing measures: all 90/0232 Third Directive on insurance for motor vehicles Member States which have notified implementing measures: DK, D, EL, F, IRL, I, L, NL, P, UK, A, FIN, S Belgium - 93/0033, no measures notified, Art. 169 letter in 1994 Spain - 93/0200, no measures notified, reasoned opinion in 1994, referral in 1995 Portugal - 93/0445, no measures notified, Art. 169 letter in 1993, terminated in 1995 90/0618 Insurance of motor vehicles Member States which have notified implementing measures: B, DK, D, F, IRL, I, L, NL, P, UK, A, FIN, S Greece - 92/0606, no measures notified, referral in 1994, Case C-l 09/94, judgment on 29. 6. 95 Spain - 92/0592, no measures notified, referral in 1994, Case C-l 47/94, judgment on 6. 4. 95 90/0619 Second Directive on life assurance Member States which have notified implementing measures: B, DK, D, F, IRL, I, L, NL, P, UK, A, FIN, S 234 Germany - 92/0973, no measures notified, Art. 169 letter in 1992, terminated in 1995 Greece - 92/0974, no measures notified, referral in 1994, Case C-225/94, judgment on 29. 6. 95 Spain - 92/0981, no measures notified, referral in 1994, Case C-242/94, judgment on 12. 10. 95 Ireland - 92/0986, no measures notified, reasoned opinion in 1994, terminated in 1995 91/0308 Money laundering Member States which have notified implementing measures: all Ireland - 93/0271, no measures notified, reasoned opinion in 1994, terminated in 1995 91/0371 Implementation of the agreement between the EEC and Switzerland on insurance Member States which have notified implementing measures: B, DK, D, F, I, NL, P, UK. Belgium - 93/0896, no measures notified, Art. 169 letter in 1993, terminated in 1995 Greece Spain Ireland - 93/0916, no measures notified, reasoned opinion in 1994 - 93/0917, no measures notified, reasoned opinion in 1994 - 93/0931, no measures notified, reasoned opinion in 1994, referral in 1995 Luxembourg - 93/0939, no measures notified, reasoned opinion in 1994, referral in 1995 91/0633 Own funds of credit institutions Member States which have notified implementing measures: all 235 91/0674 Annual accounts of insurance undertakings Member States which have notified implementing measures: D, DK, F, L, NL, P, UK, A, FIN, S Belgium - 94/0008, no measures notified, reasoned opinion in 1994 - 94/0039, no measures notified, Art. 169 letter in 1994, Denmark Germany - 94/0070, no measures notified, reasoned opinion in terminated in 1995 Greece Spain Ireland 1994, terminated in 1995 - 94/0125, no measures notified, reasoned opinion in 1994 - 94/0136, no measures notified, Art. 169 letter in 1994 - 94/0202, no measures notified, reasoned opinion in 1995 Italy - 94/0234, no measures notified, reasoned opinion in 1994, 1994, referral in suspended in 1995 Luxembourg - 94/0269, no measures notified, reasoned opinion in 1994, terminated in 1995 92/0030 Supervision of credit institutions Member States which have notified implementing measures: all except A Germany - 93/0085, no measures notified, Art. 169 letter in 1993, terminated in 1995 Greece - 93/0134, no measures notified, reasoned opinion in 1994, terminated in 1995 92/0049 Third Directive on insurance other than life assurance Member States which have notified implementing measures: B, DK, D, F, L, I, IRL, NL, P, UK, A, FIN, S. Belgium - 94/0012, ho measures notified, Art. 169 letter in 1994, terminated in 1995 Germany Greece - 94/4124, not properly applied, Art. 169 letter in 1994 - 94/0124, no measures notified, reasoned opinion in 1994, referral in 1995 236 Spain - 94/0140, no measures notified, reasoned opinion in 1994 Ireland - 94/0205, no measures notified, Art. 169 letter in 1994, terminated in 1995 Italy - 94/0238, no measures notified, Art. 169 letter in 1994, Luxembourg terminated in 1995 - 94/0272, no measures notified, Art. 169 letter in 1994, terminated in 1995 92/0096 Third Directive on life assurance Member States which have notified implementing measures: B, DK, D, F, I, IRL, L, NL, P, UK, A, FIN, S. Belgium - 94/0017, no measures notified, Art. 169 letter in 1994, Germany terminated in 1995 - 94/0079, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece Spain - 94/0116, no measures notified, reasoned opinion in 1994 - 94/0145, no measures notified, reasoned opinion in 1994 France - 94/0179, no measures notified, Art. 169 letter in 1994, terminated in 1995 Ireland - 94/0211, no measures notified, Art. 169 letter in 1994, terminated in 1995 Italy - 94/0244, no measures notified, Art. 169 letter in 1994, terminated in 1995 Luxembourg - 94/0278, no measures notified, Art. 169 letter in 1994, terminated in 1995 Netheriands - 94/0312, no measures notified, Art. 169 letter in 1994, terminated in 1995 United Kingdom - 94/0376, no measures notified, Art. 169 letter in 1994, terminated in 1995 237 92/0121 Large exposures of credit institutions Member States which have notified implementing measures: all except A Germany - 94/0084, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0349, no measures notified, Art. 169 letter in 1994, terminated in 1995 93/0006 Capital adequacy Member States which have notified implementing measures: E and S 93/0022 Investment services Member States which have notified implementing measures: IRL, NL, S, UK - 95/0420, no measures notified, Art. 169 letter in 1995 - 95/0431, no measures notified, Art. 169 letter in 1995 Belgium - 95/0392, no measures notified, Art. 169 letter in 1995 Denmark Germany Greece Spain France Italy Luxembourg - 95/0499, no measures notified, Art. 169 letter in 1995 - 95/0540, no measures notified, Art. 169 letter in 1995 - 95/0449, no measures notified, Art. 169 letter in 1995 - 95/0475, no measures notified, Art. 169 letter in 1995 - 95/0566, no measures notified, Art. 169 letter in 1995 95/0586, no measures notified, Art. 169 letter in 1995 Netheriands - Portugal - 95/0602, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0630, no measures notified, Art. 169 letter in 1995 94/0007 Multilateral Development Banks Member States which have notified implementing measures: A, B, D, FIN, F, L, NL Denmark - 95/0035, Art. 169 letter in 1995, reasoned opinion in 1995 Greece - 95/0071, Art. 169 letter in 1995, reasoned opinion in 1995 238 Spain - 95/0087, Art. 169 letter in 1995, reasoned opinion in 1995 - 95/0119, Art. 169 letter in 1995, reasoned opinion in 1995 Ireland Italy - 95/0137, Art. 169 letter in 1995, reasoned opinion in 1995 Portugal - 95/0183, Art. 169 letter in 1995, reasoned opinion in 1995 - 95/0206, Art. 169 letter in 1995, reasoned United Kingdom opinion in 1995 94/0019 Deposit guarantee schemes Member States which have notified implementing measures: B, DK, EL, IRL, F, NL, P, FIN, UK, S Germany Spain Italy Luxembourg - 94/0032, Art. 169 letter in 1995 - 95/0482, Art. 169 letter in 1995 - 95/0547, Art. 169 letter in 1995 - 95/0572, Art. 169 letter in 1995 239 Company law 68/0151 First Directive on company law Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, I, L, NL, P, S, UK. Germany - 90/0322, not properly applied, referral in 1995 77/0091 Second Directive on company law Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, I, L, NL, P, S, UK. 78/0660 Annual accounts of companies Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, I, L, NL, P, S, UK. 78/0855 Company mergers Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, I, L, NL, P, S, UK. 82/0891 Division of companies Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, I, L, P, UK. 83/0349 Consolidated accounts of companies Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, I, L, NL, P, S, UK. 84/0253 Audit of accounting documents Member States which have notified implementing measures: all 240 89/0666 Disclosure requirements for company branches Member States which have notified implementing measures: B, DK, D, E, EL, F, I, IRL, L, NL, P, S, UK. Belgium - 92/0036, no measures notified, terminated in 1995 89/0667 Single-member private limited companies Member States which have notified implementing measures: B, DK, D, EL, E, F, I, IRL, L, NL, P, S, UK. Belgium - 92/0037, terminated in 1995 Spain Ireland - 92/0291, terminated in 1995 - 92/0158, terminated in 1995 90/0604 Annual accounts - consolidated accounts: publication in ECUs Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, I, L, NL, P, S, UK. Spain Portugal - 94/0484, terminated in 1995 - 94/0432, terminated in 1995 90/0605 Annual accounts - consolidated accounts: scope of application Member States which have notified implementing measures: B, DK, EL, E, F, IRL, I, L, NL, P, S, UK. Germany Greece Spain Portugal - 93/0439, terminated in 1995 - 93/0108, referral in 1995 - 93/0155, terminated in 1995 - 93/0194, terminated in 1995 92/0101 Maintenance and alteration of the capital of public companies Member States which have notified implementing measures: B, DK, D, E, F, I, NL, S, UK. limited-liability 241 - no measures notified, reasoned opinion in 1995 - 94/0435, no measures notified, terminated in 1995 Belgium - 94/0401, terminated in 1995 Greece Spain Ireland - 94/0458, no measures notified, reasoned opinion in 1995 94/0473, no measures notified, reasoned opinion Luxembourg - in 1995 Portugal - 94/0489, no measures notified, reasoned opinion in 1995 Intellectual and industrial property 87/0054 Legal protection of semi-conductor products Member States which have notified implementing measures: all 89/0104 Trade marks Member States which have notified implementing measures: DK, EL, E, F, FIN, I, S, A, UK. Belgium - 93/0038, no measures notified, Art. 169 letter in 1993, reasoned opinion in progress Ireland - 93/0289, no measures notified, Art. 169 letter in 1993, reasoned opinion in progress Luxembourg - 93/0369, no measures notified, Art. 169 letter in 1993, reasoned opinion in progress Netherlands - 93/0404, no measures notified, Art. 169 letter in 1993, reasoned opinion in progress 91/0250 Legal protection of computer programs Member States which have notified implementing measures: all United Kingdom - 93/4459, not properly implemented, Art. 169 letter in 1995 242 92/0100 Rental and lending right Member States which have notified implementing measures: A, B, D, DK, E, EL, F, FIN, I, S. Ireland - 94/0855, no measures notified, Art. 169 letter in 1995 Luxembourg - 94/0894, no measures notified, Art. 169 letter in 1995 Portugal - 94/0927, no measures notified, Art. 169 letter in 1995 The Netherlands - 94/0911, no measures notified, Art. 169 letter in United Kingdom - 94/0952, no measures notified, Art. 169 letter in 1995 1995 93/0083 Copyright - satellite broadcast and cable retransmission Member States which have notified implementing measures: B, DK, E, FIN, S. Germany - 95/0047, no measures notified, Art. 169 letter in 1995 - 95/0065, no measures notified, Art. 169 letter in 1995 Greece France - 95/0102, no measures notified, Art. 169 letter in 1995 Ireland - 95/0114, no measures notified, Art. 169 letter in 1995 - 95/0132, no measures notified, Art. 169 letter in 1995 Italy Luxembourg - 95/0147, no measures notified, Art. 169 letter in 1995 95/0157, no measures notified, Art. 169 letter in 1995 Netherlands - Portugal - 95/0177, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0201, no measures notified, Art. 169 letter in 1995 93/0098 Term of protection of copyright and certain related rights Member States which have notified implementing measures: B, DK, D, EL, E, FIN, IRL, S. France Italy Luxembourg - - 95/0502, no measures notified, Art. 169 letter in 1995 - 95/0545, no measures notified, Art. 169 letter in 1995 95/0568, no measures notified, Art. 169 letter in 1995 The Netherlands - 95/0589, no measures notified, Art. 169 letter in 1995 243 Portugal - 95/0606, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0632, no measures notified, Art. 169 letter in 1995 Public contracts 71/0305 Public works contracts (amended by Directive 89/0440) Member States which have notified implementing measures: all Spain - 90/0875, not properly implemented, referral in 1992, Ca se C-91/0071, judgment in 1993, Art. 171 letter sent in 1994, suspended in 1995 77/0062 Public supply contracts (amended by Directive 88/0295) Member States which have notified implementing measures: all Spain - 90/0875, not properly implemented, referral in 1992, Ca se C-91/071, judgment in 1993, Art. 171 letter sent in 1994, suspended in 1995 80/0767 Public supply contracts Member States which have notified implementing measures: all 88/0295 Public supply contracts (amending Directive 77/0062) Member States which have notified implementing measures: all Germany - 92/2005, not properly implemented, referral in 1993 - Case C-93/433, terminated in 1995 Greece - 92/0601, no measures notified, referral in 1995, Spain terminated in 1995 - 92/0588, no measures notified, reasoned opinion in 1993, referral in 1994, Case C-94/256, terminated in 1995 244 Portugal - 94/2104, not properly implemented, suppl. Art. 169 letter in 1994 89/0440 Public works contracts (amending Directive 71/0305) Member States which have notified implementing measures: all Germany - 92/2004, not properly implemented, referral in 1993 - Case C-93/433, terminated in 1995 Belgium - 93/2156, not properly implemented, reasoned opinion in Spain 1994, suspended in 1995 - 92/0589, no measures notified, reasoned opinion in 1993, referral in 1994? Greece - Case C-94/256, terminated in 1995 - 93/2295, not properly implemented, Art. 169 letter in 1995, terminated in 1995 89/0665 Public contracts - review procedures Member States which have notified implementing measures: all Germany - 95/2044, not properly implemented, Art. 169 letter i n 1995 Spain - 95/2054, not properly implemented, Art. 169 letter in 1995 Greece - 92/0271, no measures notified, referral in 1995, Case C 95/236 Greece - 94/2153, not properly implemented, reasoned opinion in 1995 Portugal - 94/2236, not properly implemented, reasoned opinion in 1995 90/0531 Public contracts - excluded sectors Member States which have notified implementing measures: all (E: derogation until 31. 12. 1995, EL and P: derogation until 1998). Belgium - 92/0659, no measures notified, Art. 169 letter in 1992, reasoned opinion in 1995, terminated in 1995 245 Belgium - 94/2289, not properly implemented, Art. 169 letter in 1995 Italy - 92/0825, no measures notified, referral in 1995, C-95/113, terminated in 1995 United Kingdom - 94/2054, not properly implemented, Art. 169 letter 1994 92/0013 Public contracts - review procedures (excluded sectors) Member States which have notified implementing measures: all except E, A (EL and P: derogation until 1997) Belgium - 93/0016, no measures notified, reasoned opinion in 1993, terminated in 1995 France - 95/2082, not properly implemented, reasoned opinion in 1995 Ireland - 95/2083, not properly implemented, Art. 169 letter in 1995 Italy - 95/2071, not properly implemented, Art. 169 letter in 1995 United Kingdom - 95/2084, not properly implemented, Art. 169 letter in 1995 92/0050 Public service contracts Member States which have notified implementing measures: all except A, B, D, EL et F Belgium - 93/0628, no measures notified, reasoned opinion in 1995 Belgium - 94/2289, not properly implemented, Art. 169 letter in Germany 1995 - 93/0676, no measures notified, reasoned opinion in 1994, referral in 1995 Greece - 93/0711, no measures notified, referral in 1995, C-95/31 1 Spain France France - 93/0726, no measures notified, reasoned opinion in 1994 - 93/0744, ho measures notified, referral in 1995, C-95/234 - 95/2073, not properly implemented, reasoned opinion in 1995 Italy - 93/0792, no measures notified, referral in 1995, C-95/113, terminated in 1995 Portugal - 93/0852, no measures notified, reasoned opinion in 1994 246 93/0036 Public supply contracts Member States which have notified implementing measures: all except A, B, D, F et I Belgium - 94/0626, no measures notified, reasoned opinion in 1995 Belgium - 94/2289, not properly implemented, Art. 169 letter in Germany 1995 - 94/0650, no measures notified, reasoned opinion in 1995 Spain - 94/0664, no measures notified, reasoned opinion in 1994 France - 94/0677, no measures notified, reasoned opinion in 1995, referral in 1995 Greece - 94/0698, no measures notified, reasoned opinion in 1995, terminated in 1995 Italy - 94/0722, no measures notified, reasoned opinion in 1994 93/0037 Public works contracts (consolidating instrument) Member States are not required to notify implementing measures Belgium - 94/2289, not properly implemented, Art. 169 letter in 1995 93/0038 Public contracts - excluded sectors Member States which have notified implementing measures: B, DK, FIN, IRL, I, L, NL, S. (E: derogation until 1997, EL and P: derogation until 1998) Germany - 94/0650, no measures notified, reasoned opinion in 1995 France United Kingdom - 94/0838, no measures notified, reasoned opinion in 1995 - 94/0957, no measures notified, reasoned opinion in 1995 247 REMOVAL OF TAX BARRIERS Direct taxation 69/0335 tax system - Indirect taxes on the raising of capital Member States which have notified implementing measures: all except FIN 77/0799 tax system - Mutual assistance - direct taxes Member States which have notified implementing measures: all 90/0434 tax system - Company mergers and divisions Member States which have notified implementing measures: all except EL Greece - 92/0603, no measures notified, reasoned opinion in 1994 90/0435 tax system - Parent companies and subsidiaries Member States which have notified implementing measures: all Indirect taxes 67/0227 First VAT Directive Member States which have notified implementing measures: all 69/0169 Tax-free allowances for travellers Member States which have notified implementing measures: all 77/0388 Sixth VAT Directive Member States which have notified implementing measures: all 248 Greece Greece - 88/0199, not properly applied, reasoned opinion in 1989 - 91/0778, not properly applied, referral in 1994, Case C-94/331 Greece Greece - 92/2233, not properly applied, reasoned opinion in 1995 - 93/2233, not properly applied, reasoned opinion in 1995 Spain , terminated in 1995 - 92/2232, not properly applied, reasoned opinion in 1995 Spain - 92/2073, not properly applied, reasoned opinion in 1994 France - 88/0053, not properly applied, judgment in 1993 - Case C-92/68, Art. 171 letter in 1995 France France France France Ireland Italy - 88/0213, not properly applied, reasoned opinion in 1989 - 91/0706, not properly applied, reasoned opinion in 1994 - 91/0798, not properly applied, reasoned opinion in 1994 - 92/2069, not properly applied, reasoned opinion in 1994 - 88/0200, not properly applied, reasoned opinion in 1989 - 92/2002, not properly applied, referral in 1995 - Case Luxembourg C-95/45 - Luxembourg Netheriands - - terminated in 1995 89/0469, not properly applied, judgment in 1993 - Case C-92/69, 91 /073 8, not properly applied, reasoned opinion in 1994 88/0201, not properly applied, reasoned opinion in 1989 Portugal - 92/2074, not properly applied, reasoned opinion in 1994 - 88/0202, not properly applied, reasoned opinion United Kingdom in 1989 78/1035 Tax exemptions for small consignments Member States which have notified implementing measures: all 79/1070 Mutual assistance - direct taxes and VAT Member States which have notified implementing measures: all 79/1072 Eighth VAT Directive Member States which have notified implementing measures: all 249 Italy - 90/0031, not properly applied, Art. 171 letter in 1993, terminated in 1995 Spain - 91/4161, not properly applied, referral in 1995 - Case C-95/16 Portugal - 90/2253, not properly applied, reasoned opinion in 1994, terminated in 1995 80/0368 Eleventh VAT Directive - French overseas departments Member States which have notified implementing measures: all 83/0181 VAT - final import of goods Member States which have notified implementing measures: all 83/0182 Tax exemptions on temporary import of means of transport Member States which have notified implementing measures: all 83/0183 Tax exemptions on permanent imports of personal property Member States which have notified implementing measures: all 84/0386 Tenth VAT Directive Member States which have notified implementing measures: all 85/0346 VAT - exemption of certain final imports of goods - fuel of utility vehicles Member States which have notified implementing measures: all 85/0576 Tax exemptions for small consignments Member States which have notified implementing measures: all 250 86/0560 13th VAT directive - taxable persons not established in Community territory Member States which have notified implementing measures: all 88/0331 VAT - final import of goods Member States which have notified implementing measures: all 88/0664 Tax-free allowances Member States which have notified implementing measures: all 89/0219 VAT - final import of goods Member States which have notified implementing measures: all 89/0220 Exemptions - combined nomenclature Member States which have notified implementing measures: all 89/0465 18th VAT Directive Member States which have notified implementing measures: all Netheriands - 92/2241, not properly applied, reasoned opinion in 1995 89/0604 Tax exemptions on permanent imports of personal property Member States which have notified implementing measures: all 91/0680 VAT - abolition of tax frontiers Member States which have notified implementing measures: all 251 92/0012 Arrangements for products subject to excise duty Member States which have notified implementing measures: all 92/0077 Approximation of VAT rates Member States which have notified implementing measures: all. Portugal - 93/2024, not properly applied, reasoned opinion in 1994, terminated in 1995 92/0079 Taxes on cigarettes Member States which have notified implementing measures: all 92/0080 Taxes on tobacco Member States which have notified implementing measures: all 92/0081 Excise duty on mineral oils Member States which have notified implementing measures: all 92/0082 Excise duty on mineral oils Member States which have notified implementing measures: all 92/0083 Excise duty on alcohol Member States which have notified implementing measures: all 92/0084 Excise duty on alcohol Member States which have notified implementing measures: all 252 92/0108 Products subject to excise duties - Amendment of Directives 92/12/EEC and 92/81/EEC Member States which have notified implementing measures: all 92/0111 VAT - simplification measures Member States which have notified implementing measures: all. 94/0004 Tax-free allowances for travellers - imports and duty-free purchases Member States which have notified implementing measures: all 94/0005 7th VAT directive - second-hand goods, works of art, collectors' items and antiques Member States which have notified implementing measures: all except P Portugal - 95/0182, no measures notified, Art. 169 letter in 1995 94/0074 Amendment Directives 92/12/EEC, 92/81/EEC and 92/82/EEC Member States which have notified implementing measures: NL - 95/0442, no measures notified, Art. 169 letter in 1995 - 95/0428, no measures notified, Art. 169 letter in 1995 - 95/0493, no measures notified, Art. 169 letter in 1995 Germany Belgium - 95/0412, no measures notified, Art. 169 letter in 1995 Denmark Spain France Greece Ireland Italy Luxembourg - 95/0515, no measures notified, Art. 169 letter in 1995 - 95/0468, no measures notified, Art. 169 letter in 1995 - 95/0534, no measures notified, Art. 169 letter in 1995 - 95/0558, no measures notified, Art. 169 letter in 1995 95/0579, no measures notified, Art. 169 letter in 1995 - Portugal - 95/0622, no measures notified, Art. 169 letter in 1995 United Kingdom - '95/0641, no measures notified, Art. 169 letter in 1995 253 94/0075 Temporary derogation measures / amendment Dir. 94/4/EC (addressee: Germany and Austria) Member States which have notified implementing measures: A and D 94/0076 VAT - measures enlargement context Member States which have notified implementing measures: D, DK, EL, E, IRL, UK Belgium - 95/0243, no measures notified, Art. 169 letter in 1995 - 95/0301, no measures notified, Art. 169 letter in 1995 France Italy - 95/0332, no measures notified, Art. 169 letter in 1995 Luxembourg - 95/0348, no measures notified, Art. 169 letter in 1995 95/0356, no measures notified, Art. 169 letter in 1995 Netheriands - Portugal - 95/0375, no measures notified, Art. 169 letter in 1995 95/0059 Consolidated tobacco directives Member States which have notified implementing measures: no notification required 254 2. CONSUMER PROTECTION AND PRODUCT SAFETY 71/0307 Textile names Member States which have notified implementing measures: all 72/0276 Analysis of textile fibres. Member States which have notified implementing measures: all 73/0044 Analysis of textile fibres Member States which have notified implementing measures: all 76/0768 Cosmetics Member States which have notified implementing measures: all Spain - 87/0371, not properly implemented, - suppl. reasoned opinion in 1992, terminated in 1995 France - 86/0390, not properly implemented - Case C-91/246, Art. 171 letter in 1995 Portugal - 90/0207, not properly implemented,- reasoned opinion in 1992 79/0076 Analysis of textile fibres. Member States which have notified implementing measures: all 79/0581 Indication of the prices of foodstuffs Member States which have notified implementing measures: all 80/1335 Cosmetics Member States which have notified implementing measures: all 255 81/0075 Analysis of textile fibres Member States which have notified implementing measures: all 82/0147 Cosmetics Member States which have notified implementing measures: all 82/0368 Cosmetics Member States which have notified implementing measures: all 82/0434 Cosmetics Member States which have notified implementing measures: all 83/0191 Cosmetics Member States which have notified implementing measures: all 83/0341 Cosmetics Member States which have notified implementing measures: all 83/0496 Cosmetics Member States which have notified implementing measures: all 83/0514 Cosmetics Member States which have notified implementing measures: all 83/0574 Cosmetics Member States which have notified implementing measures: all 256 83/0623 Textile names Member States which have notified implementing measures: all 84/0415 Cosmetics Member States which have notified implementing measures: all 84/0450 Misleading advertising Member States which have notified implementing measures: all 85/0374 Defective products Member States which have notified implementing measures: all except F France - 90/0519, no measures notified, judgment in 1993 - Case C-91/293, Art. 171 reasoned opinion in 1995 United Kingdom - 89/0153, not properly implemented, reasoned opinion in 1990, referral in 1995 85/0391 Cosmetics Member States which have notified implementing measures: all 85/0490 Cosmetics Member States which have notified implementing measures: all 85/0577 Contracts negotiated away from business premises Member States which have notified implementing measures: all Belgium - 91/0212, not properly implemented, reasoned opinion in 1993 France - 91/0017, not properly implemented, reasoned opinion in 1993, terminated in 1995 257 86/0179 Cosmetics Member States which have notified implementing measures: all 86/0199 Cosmetics Member States which have notified implementing measures: all 87/0102 Consumer credit. Member States which have notified implementing measures: all Spain - 90/0567, no measures notified, reasoned opinion in 1992, referral in 1993, Case C-93/390 87/0137 Cosmetics Member States which have notified implementing measures: all 87/0140 Textile names Member States which have notified implementing measures: all 87/0143 Cosmetics Member States which have notified implementing measures: all 87/0184 Analysis of textile fibres Member States which have notified implementing measures: all 87/0357 Dangerous imitations Member States which have notified implementing measures: all 88/0233 Cosmetics Member States which have notified implementing measures: all 258 88/0314 Indication of the prices of non-food products Member States which have notified implementing measures: all 88/0315 Indication of the prices of foodstuffs Member States which have notified implementing measures: all 88/0378 Toy safety Member States which have notified implementing measures: all 88/0667 Cosmetics Member States which have notified implementing measures: all 89/0174 Cosmetics Member States which have notified implementing measures: all 90/0088 Consumer credit Member States which have notified implementing measures: A, B, DK, D, EL, E, FIN, IRL, I, NL, P, L, S, UK Spain - 93/0203, no measures notified, reasoned opinion in 1994, terminated in 1995 France Ireland - 93/0242, no measures notified, reasoned opinion in 1995 - 93/0283, no measures notified, Art. 169 letter in 1993 90/0121 Cosmetics Member States which have notified implementing measures: all 90/0207 Cosmetics Member States which have notified implementing measures: all 259 Portugal - 91/0530, no measures notified, reasoned opinion in 1992, terminated in 1995 90/0314 Package tours Member States which have notified implementing measures: B, DK, D, E, F, IRL, I, FIN, L, NL, P, S, UK, Belgium - 93/0030, no measures notified, reasoned opinion in 1994, Germany terminated in 1994 - 93/0110, no measures notified, reasoned opinion in 1994 terminated in 1994 - Greece Spain - 93/0157, no measures notified, reasoned opinion in 1995 - 93/0196 , no measures notified, reasoned opinion in 1994, terminated in 1995 Ireland - 93/0279, no measures notified, reasoned opinion in 1995, terminated in 1995 ~- Italy - 93/0315, no measures notified, Art. 169 letter in 1993, terminated in 1995 Luxembourg - 93/0359, no measures notified, reasoned opinion in 1994 - terminated in 1994 91/0184 Cosmetics Member States which have notified implementing measures: all 92/0008 Cosmetics Member States which have notified implementing measures: all 92/0059 General product safety Member States which have notified implementing measures: A, B, DK, FIN, F, I, NL, P, S, UK Germany Spain Greece Ireland - 94/0648, no measures notified, Art. 169 letter in 1994 - 94/0662, no measures notified, Art. 169 letter in 1994 - 94/0700, no measures notified, reasoned opinion in 1995 - 94/0710, no measures notified, Art. 169 letter in 1994 260 Italy - 94/0720, no measures notified, Art. 169 letter in 1994 - Luxembourg terminated in 1995 - 94/0733, no measures notified, reasoned opinion in 1995 Portugal - 94/0752, no measures notified, reasoned opinion in 1995 92/0086 Cosmetics Member States which have notified implementing measures: A, B, DK, D, EL, E, FIN, F, I, IRL, L, NL, S, UK -•* Greece - 93/0706, no measures notified, Art. 169 letter in 1993 - terminated in 1995 " Portugal - 93/0857, no measures notified, reasoned opinion in 1995 93/0013 Unfair contract terms Member States which have notified implementing measures: A, B, DK, EL, FIN, F, IRL, NL, P, S, UK Germany Spain Italy Luxembourg Portugal 95/0045, no measures notified, Art. 169 letter in 1995 95/0079, no measures notified, Art. 169 letter in 1995 95/0130, no measures notified, Art. 169 letter in 1995 - 95/0145, no measures notified, Art. 169 letter in 1995 95/0168, no measures notified, Art. 169 letter in 1995 - terminated in 1995 United Kingdom - 95/0193, no measures notified, Art. 169 letter in 1995 - terminated in 1995 93/0035 Cosmetics Mernber States which have notified implementing measures: DK, NL, L, S Belgium - 95/0393, no measures notified, Art. 169 - 95/0432, no measures notified, Art. 1 Germany - 95/0450, no measures notified, Art. 169 Greece - 95/0476, no measures notified, Art. 1 Spain - 95/0508, no measures notified, Art. 169 France - 95/0522, no measures notified, Art. 169 Ireland - 95/0541, no measures notified, Art. 169 Italy letter in 1995 69 letter in 1995 letter in 1995 69 letter in 1995 letter in 1995 letter in 1995 letter in 1995 261 Netheriands - 95/0587, no measures notified, Art. 169 letter in 1995 Portugal - 95/0603, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0631, no measures notified, Art. 169 letter in 1995 93/0047 Cosmetics Member States which have notified implementing measures: A, B, DK, D, EL, E, FIN, F, I, L, NL, S, UK Germany - 94/0651, no measures notified, Art. 169 letter in 1994 - terminated in 1994 Belgium - 94/0627, no measures notified, Art. 169 letter in 1994 - terminated in 1994 Greece - 94/0697, no measures notified, Art. 169 letter in 1994 - terminated in 1995 Ireland Luxembourg - - 94/0713, no measures notified, Art. 169 letter in 1994 94/0735, no measures notified, Art. 169 letter in 1994 - terminated in 1994 94/0745, no measures notified, Art. 169 letter in 1994 - terminated in 1995 Netheriands - Portugal - 94/0754, no measures notified, Art. 169 letter in 1994 93/0073 Cosmetics Member States which have notified implementing measures: A, DK, D, EL, E, FIN, L, NL, S, UK Belgium - 94/0792, no measures notified, - 94/0846, no measures notified, France - 94/0862, no measures notified, Ireland - 94/0886, no measures notified, Italy Luxembourg Art. 169 letter in 1995 Art. 169 letter in 1995 Art. 169 letter in 1995 Art. 169 letter in 1994 - 94/0908, no measures notified, Art. 169 letter in 1995 - terminated in 1995 Netheriands - 94/0920, no measures notified, Art. 169 letter in 1994 - terminated in 1995 Portugal - 94/0944, no measures notified, Art. 169 letter in 1995 94/0032 262 Cosmetics Member States which have notified implementing measures: A, DK, D, E, F, L, NL, S, FIN, UK Belgium - 95/0405, no measures notified, - 95/0458, no measures notified, Greece - 95/0508, no measures notified, France - 95/0528, no measures notified, Ireland Italy - 95/0551, no measures notified, Portugal - 95/0613, no measures notified, United Kingdom Art. 169 letter in 1995 Art. 169 letter in 1995 Art. 169 letter in 1995 Art 169 letter in 1995 Art. 169 letter in 1995 Art. 169 letter in 1995 - 95/0636, no measures notified, Art. 169 letter in 1995 - terminated in 1995 94/0047 Purchase of right to use immovable properties on a timeshare basis Member States which have notified implementing measures: no 95/0017 Cosmetics Member States which have notified implementing measures: DK 95/0034 Cosmetics Member States which have notified implementing measures: no 263 3. COMPETITION 88/0301 Competition in the markets for telecommunications terminals Member States which have notified implementing measures: all Belgium - 89/0330, not properly applied, reasoned opinion in 1991 90/0388 Competition in the markets for telecommunications services Member States which have notified implementing measures: B, DK, D, E, F, IRL, L, NL, P, UK Greece - 91/0352, no measures notified, reasoned opinion, referral in 1994, Case C-94/281 Italy - 94/2004, no measures notified, Art. 169 letter in 1994, (to be terminated in 1996) 93/0084 Transparency of financial relations between Member States and public undertakings Member States which have notified implementing measures: DK, D, E, F, IR, I, L, NL, P, UK Belgium - 93/0030, no measures notified, reasoned opinion in 1994 - 94/0092, no measures notified, Art. 169 letter in 1994, Germany terminated in 1995 Greece Ireland - 94/0102, no measures notified, reasoned opinion in 1994 - 94/0226, no measures notified, Art. 169 letter in 1994, terminated in 1995 Italy - 94/0259, no measures notified, Art. 169 letter in 1994, Luxembourg terminated in 1995 - 94/0293, no measures notified, Art. 169 letter in 1994, terminated in 1995 264 94/0046 Satellite communications Member States which have notified implementing measures: B, DK, D, F, NL, UK. - 95/0463, Art. 169 letter in 1995 - 95/0489, Art. 169 letter in 1995 - 95/0530, Art. 169 letter in 1995 - 95/0553, Art. 169 letter in 1995 Greece Spain Ireland Italy Luxembourg Portugal - 95/0618, Art. 169 letter in 1995 - 95/0576, Art. 169 letter in 1995 4. EMPLOYMENT AND SOCIAL POLICY 64/0221 Public policy and public health Member States which have notified implementing measures: all 68/0360 Movement and residence of workers Member States which have notified implementing measures: all 72/0194 Right to reside in the Member States Member States which have notified implementing measures: all 75/0117 Equal pay for men and women Member States which have notified implementing measures: all Greece - 91/4668, reasoned opinion in 1995 75/0129 Collective redundancies Member States which have notified implementing measures: all 265 United Kingdom - 89/0536, not properly implemented, referral in 1992 - Case C-92/383, judgment in 1994 76/0207 Equal treatment of men and women Member States which have notified implementing measures: B, DK, D, EL, E, IRL, I, L, NL, P, UK. Belgium - 89/0458, not properly applied, judgment in 1993 - Case C-91/173, reasoned opinion (171) in 1995 France - 90/0445, no measures notified, Art. 171 letter in 1990, reasoned opinion (171) in 1995 Greece Italy - 90/2226, not properly applied, reasoned opinion in 1995 - 90/2224, not properly applied, reasoned opinion in 1995 77/0187 Safeguarding of employees' rights in the event of the transfer of firms Member States which have notified implementing measures: all United Kingdom - 89/0537, not properly implemented, referral in 1992 - Case C-92/382, judgment in 1994 78/0610 Health protection of workers - vinyl chloride monomer Member States which have notified implementing measures: all 79/0007 Equal treatment in social security Member States which have notified implementing measures: all Ireland Greece United Kingdom - 89/0024, terminated in 1995 - 91/4668, not properly applied, reasoned opinion in 1995 - 90/0252, not properly applied, terminated in 1995 266 80/0987 Protection of workers - insolvency of employers Member States which have notified implementing measures: all Greece - 86/0116, not properly implemented, Art. 171 letter in 1993 80/1107 Protection of workers against chemicals Member States which have notified implementing measures: all 82/0130 Electrical equipment Member States which have notified implementing measures: all 82/0605 Protection of workers - metallic lead Member States which have notified implementing measures: all 83/0477 Protection of workers - asbestos Member States which have notified implementing measures: all 86/0188 Protection of workers from noise Member States which have notified implementing measures: all 86/0378 Equal treatment of men and women Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, I, L, NL, P, UK. - 90/0342, terminated in 1995 Belgium - 90/0341, terminated in 1995 Denmark Greece Italy Luxembourg - 90/0345, terminated in 1995 Netheriands - 90/0343, terminated in 1995 - 90/0344, terminated in 1995 91/0134, terminated in 1995 - 267 86/0613 Equal treatment of men and women Member States which have notified implementing measures: all 88/0035 Electrical equipment Member States which have notified implementing measures: all 88/0364 Protection of workers against specific agents Member States which have notified implementing measures: all except A. 88/0642 Protection of workers against chemicals Member States which have notified implementing measures: all 89/0391 Health and safety of workers Member States which have notified implementing measures: B, DK, D, EL, F, I, IRL, L, NL, P, UK. Greece - 93/0163, no measures notified, reasoned opinion in 1994, Spain terminated in 1995 - 93/0208, no measures notified, reasoned opinion in 1994, referral in 1995 Italy - 93/0322, no measures notified, reasoned opinion in 1994, terminated in 1995 89/0622 Labelling of tobacco products Member States which have notified implementing measures: all 89/0654 Health and safety at the workplace Member States which have notified implementing measures: B, D, DK, EL, F, IRL, I, L, NL, P, UK (derogation EL). Spain - 93/0207, no measures notified, referral in 1995 268 Greece Italy Luxembourg - 95/0553, no measures notified, terminated in 1995 - 93/0321, no measures notified, terminated in 1995 - 93/0367, no measures notified, terminated in 1995 89/0655 Health and safety - work equipment Member States which have notified implementing measures: B, DK, D, EL, F, I, IRL, L, NL, P, UK. Spain Greece Italy Luxembourg - 93/0206, no measures notified, referral in 1995 - 93/0546, no measures notified, terminated in 1995 - 93/0571, no measures notified, terminated in 1995 - 93/0366, no measures notified, terminated in 1995 89/0656 Personal protective equipment Member States which have notified implementing measures: B, DK, D, EL, F, IRL, I, L, NL, P, UK. Belgium - 93/0035, no measures notified, terminated in 1995 Germany Spain Greece Italy Luxembourg 93/0365, no measures notified, terminated in 1995 - 93/0116, no measures notified, terminated in 1995 - 93/0205, no measures notified, referral in 1995 - 93/0545, no measures notified, terminated in 1995 - 93/0320, no measures notified, terminated in 1995 90/0239 Maximum tar yield of cigarettes Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, I, L, NL, P, UK. Netheriands - 92/0447, no measures notified, Art. 169 letter in 1992, terminated in 1995 90/0269 Health and safety of workers Member States which have notified implementing measures: B, DK, D, EL, I, IRL, F, L, NL, P, UK. 269 Spain - 93/0199, no measures notified, reasoned opinion in 1994, referral in 1995 Greece Italy - 93/0160, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994, terminated in 1995 - 93/0318, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994, terminated in 1995 Luxembourg - 93/0361, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1994, terminated in 1995 90/0270 Health and safety - display screen equipment Member States which have notified implementing measures: B, D, DK, EL, F, IRL, I, L, NL, P, UK. Greece - 93/0159, no measures notified, Art. 169 letter in 1993, terminated in 1995 Spain - 93/0198, no measures notified, Art. 169 letter in 1993, referral in 1995 Italy - 93/0317, no measures notified, Art. 169 letter in 1993, terminated in 1995 Luxembourg- 93/0360, no measures notified, Art. 169 letter in 1993, terminated in 1995 90/0394 Protection of workers - carcinogens Member States which have notified implementing measures: B, DK, D, EL, F, IRL, I, L, NL, P, UK. Spain - 93/0195, no measures notified, reasoned opinion in 1994, referral in 1995 Greece - 93/0156, no measures notified, reasoned opinion in 1994, terminated in 1995 Italy - 93/0314, no measures notified, reasoned opinion in 1994, terminated in 1995 Luxembourg - 93/0358, no measures notified, reasoned opinion in 1994 terminated in 1995 270 90/0679 Risks relating to exposure to biological agents at work Member States which have notified implementing measures: D, DK, EL, F, IRL, I, L, NL, UK (derogation P until 31. 12. 1995) Belgium - 94/0005, no measures notified, Art. 169 letter in 1994, reasoned opinion to be sent in 1996 Spain - 94/0133, no measures notified, Art. 169 letter in 1994, r e a s o n ed opinion to be sent in 1996 Luxembourg- Netheriands 94/0266, no measures notified, Art. 169 letter in 1994, terminated in 1995 - 94/0300, no measures notified, Art. 169 letter in 1994, terminated in 1995 United Kingdom - 94/0364, no measures notified, Art. 169 letter in 1994, terminated in 1995 91/0269 Electrical equipment for use in mines susceptible to firedamp Member States which have notified implementing measures: all 91/0322 Protection of workers from risks relating to exposure to chemical, physical and biological agents Member States which have notified implementing measures: B, D, DK, I, IRL, L, NL, FIN, S, UK Greece Spain France Ireland - 94/0505, no measures notified, Art. 169 letter in 1994 - 94/0506, no measures notified, Art. 169 letter in 1994 - 94/0507, no measures notified, Art. 169 letter in 1994 - 94/0508, no measures notified, Art. 169 letter in 1994, terminated in 1995 91/0382 Protection of workers (asbestos) Member States which have notified implementing measures: all 91/0383 Health and safety of temporary workers 271 Member States which have notified implementing measures: DK, E, F, IRL, L, NL, P, UK. Belgium - 93/0023, no measures notified, Art. 169 letter in 1993 Germany - 93/0097, no measures notified, reasoned opinion to be sent in 1996 Greece - 93/0147, no measures notified, reasoned opinion to be sent in 1996 France Italy - 93/0232, no measures notified, terminated in 1995 - 93/0309, no measures notified, reasoned opinion to be sent in 1996 Luxembourg Netheriands - - 93/0348, no measures notified, Art. 169 letter in 1993, terminated in 1995 93/0389, no measures notified, Art. 169 letter in 1993, terminated in 1995 91/0533 Obligation to inform employees of the conditions applicable to the employment relationship Member States which have notified implementing measures: B, D, EL, F, IRL, L, NL, P, UK Belgium - 93/0623, no measures notified, Art. 169 letter in 1993, terminated in 1995 Germany - 93/0670, no measures notified, Art. 169 letter in 1993 Greece - 93/0717, no measures notified, Art. 169 letter in 1993, terminated in 1995 France - 93/0739, no measures notified, Art. 169 letter in 1993, terminated in 1995 terminated in 1995 Italy - 93/0787, no measures notified, Art. 169 letter in 1993, Luxembourg reasoned opinion in 1995 - 93/0813, no measures notified, Art. 169 letter in 1993 terminated in 1995 Portugal - 93/0847, no measures notified, Art. 169 letter in 1993, terminated in 1995 92/0029 Health and safety on board ships Member States which have notified implementing measures: E, F, FIN, S. 272 Belgium no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Denmark no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Germany no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Greece no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Ireland no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Italy no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Luxembourg no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Netheriands no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Portugal no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 United Kingdom no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 92/0041 Labelling of tobacco products Member States which have notified implementing measures: B, D, DK, E, EL, F, I, IRL, L, NL, A, P, FIN, S, UK. Germany - 92/0714, no measures notified, Art. 169 letter in 1992, terminated in 1995 France - 92/0791, no measures notified, Art. 169 letter in 1992, terminated in 1995 Luxembourg - 93/0326, no measures notified, Art. 169 letter in 1993, terminated in 1995 Netheriands 92/0890, no measures notified, reasoned opinion in 1994, referral in 1994, terminated in 1995 - 92/0056 Collective redundancies Member States which have notified implementing measures: B, DK, EL, E, I, L, NL. Belgium - 94/0778, no measures notified, terminated in 1995 Denmark - 94/0797, no measures notified, terminated in 1995 273 Germany Greece France - 94/0809, no measures notified, Art. 169 letter in 1995 - 94/0996, no measures notified, terminated in 1995 - 94/0837, no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 - 94/0584, no measures notified, Art. 169 letter in 1995 - 94/0870, no measures notified, terminated in 1995 Ireland Italy Portugal - 94/0926, no measures notified, Art. 169 letter in 1995 United Kingdom - 94/0951, no measures notified, Art. 169 letter in 1995 92/0057 Minimum safety and health requirements at temporary or mobile construction sites Member States which have notified implementing measures: DK, EL, E, F, IRL, L, NL, P, UK Belgium - 94/0013, no measures notified, Art. 169 letter in 1994 reasoned opinion to be sent in 1996 Germany - 94/0074, no measures notified, Art. 169 letter in 1994 Greece reasoned opinion to be sent in 1996 - 94/0123, no measures notified, Art. 169 letter in 1994 terminated in 1995 Spain - 94/0141, no measures notified, Art. 169 letter in 1994 Ireland - 94/0206, no measures notified, Art. 169 letter in 1994 terminated in 1995 terminated in 1995 Italy Luxembourg Netheriands - - 94/0239, no measures notified, Art. 169 letter in 1994 reasoned opinion to be sent in 1996 94/0273, no measures notified, Art. 169 letter in 1994, terminated in 1995 94/0307, no measures notified, Art. 169 letter in 1994, terminated in 1995 - Portugal United Kingdom 94/0372, no measures notified, Art. 169 letter in ft - 94/0338, no measures notified, terminated in 1995 terminated in 1995 92/0058 Safety and/or health signs at work Member States which have notified implementing measures: DK, EL, F, IRL, L, NL, P 274 Belgium - 94/0624, no measures notified, Art. 169 letter in 1994 reasoned opinion to be sent in 1996 Denmark - 94/0636, no measures notified, Art. 169 letter in 1994 terminated in 1995 Germany Spain - 94/0647, no measures notified, Art. 169 letter in 1994 reasoned opinion to be sent in 1996 - 94/0661, no measures notified, Art. 169 letter in 1994 reasoned opinion to be sent in 1996 Greece - 94/0701, no measures notified, Art. 169 letter in 1994 Ireland - 94/0709, no measures notified, Art. 169 letter in 1994 terminated in 1995 terminated in 1995 Italy - 94/0719, no measures notified, Art. 169 letter in 1994 reasoned opinion to be sent in 1996 Luxembourg - 94/0732, no measures notified, Art. 169 letter in 1994 Portugal - 94/0751, no measures notified, Art. 169 letter in 1994 terminated in 1995 terminated in 1995 United Kingdom 94/0769, no measures notified, Art. 169 letter in 1994, reasoned opinion to be sent in 1996 92/0085 Safety and health at work of pregnant workers and workers who have recently given birth or are breastfeeding Member States which have notified implementing measures: DK, E, IRL, NL, P, UK. Belgium no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Germany no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Greece no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 France no measures notified, Art. 169 letter in 1995 Italy no measures notified, Art. 169 letter in 1995 Luxembourg no measures notified, Art. 169 letter in 1995 Portugal no measures notified, Art. 169 letter to be sent in 1995 terminated in 1995 275 92/0091 Protection of workers in extracting industries by drilling Member States which have notified implementing measures: DK, EL, L, UK Belgium no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Germany no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Greece no measures notified, Art. 169 letter in 1995, terminated in 1995 Spain no measures notified, Art. 169 letter in 1996 reasoned opinion to be sent in 1996 France no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Ireland no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Italy no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Portugal no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Netheriands no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 United Kingdom no measures notified, Art. 169 letter in 1995, terminated in 1995 92/0104 Health and safety of workers in underground and open cast mining industries Member States which have notified implementing measures: DK, L, NL, UK Belgium no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Germany no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Greece no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Spain no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 France no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Ireland no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 Italy no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 276 Portugal no measures notified, Art. 169 letter in 1995 reasoned opinion to be sent in 1996 United Kingdom no measures notified, Art. 169 letter in 1995, terminated in 1995 93/0088 Exposure to biological agents Member States which have notified implementing measures: DK, D, EL, F, IR, I, L, NL, FIN, S, UK (derogation Portugal 31. 12. 95) Belgium - 94/0521, no measures notified, Art. 169 letter in 1994 reasoned opinion to be sent in 1996 Germany - 94/0538, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece - 94/0540, no measures notified, Art. 169 letter in 1994, terminated in 1995 Spain - 94/0554, no measures notified, Art. 169 letter in 1994, reasoned opinion to be sent in 1996 Ireland - 94/0566, no measures notified, Art. 169 letter in 1994, terminated in 1995 Italy - 94/0575, no measures notified, Art. 169 letter in 1994, Luxembourg terminated in 1995 - 94/0580, no measures notified, Art. 169 letter in 1994, terminated in 1995 94/0588, no measures notified, Art. 169 letter in 1994, terminated in 1995 - 94/0604, no measures notified, Art. 169 letter in Netheriands - United Kingdom 1994, terminated in 1995 277 5. AGRICULTURE 64/0432 Health problems - trade in animals Member States which have notified implementing measures: all 64/0433 Health problems - trade in meat Member States which have notified implementing measures: all except FIN Germany - 93/2097, not properly applied, reasoned opinion in 1994 66/0400 Beet seed Member States which have notified implementing measures: all except FIN 66/0401 Fodder-plant seed Member States which have notified implementing measures: all except FIN 66/0402 Cereal seed Member States which have notified implementing measures: all except FIN 66/0403 Seed potatoes Member States which have notified implementing measures: all except FIN 66/0404 Forest reproductive material Member States which have notified implementing measures: all except A 66/0600 Health problems - trade in animals Member States which have notified implementing measures: all 278 68/0089 Classification of wood in the rough Member States which have notified implementing measures: all except A 68/0193 Material for the propagation of vines Member States which have notified implementing measures: all except A 69/0060 Cereal seed Member States which have notified implementing measures: all except FIN 69/0061 Beet seed Member States which have notified implementing measures: all except FIN 69/0062 Seed potatoes Member States which have notified implementing measures: all except FIN and A 69/0063 Fodder-plant seed Member States which have notified implementing measures: all except FIN and A 69/0064 Reproductive material Member States which have notified implementing measures: all except A 69/0208 Seed of oil and fibre plants Member States which have notified implementing measures: all except FIN 279 69/0464 Control of potato wart disease Member States which have notified implementing measures: all except FIN and A 69/0465 Control of potato cyst eelworm Member States which have notified implementing measures: all except FIN and A 69/0466 Control of San José scale Member States which have notified implementing measures: all except A 70/0373 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN 70/0457 Common catalogue of varieties of plant species Member States which have notified implementing measures: all except A and FIN 70/0458 Vegetable seed Member States which have notified implementing measures: all except FIN 70/0524 Feedingstuffs - additives Member States which have notified implementing measures: all except FIN 71/0118 Health problems - trade in poultrymeat Member States which have notified implementing measures: all except FIN 280 71/0140 Material for the propagation of vines except A Member States which have notified implementing measures: all except A 71/0161 Forest reproductive material Member States which have notified implementing measures: all except A and S 71/0162 Seed Member States which have notified implementing measures: all except FIN 71/0250 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN 71/0285 Health problems - trade in animals Member States which have notified implementing measures: all except S 71/0393 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN 72/0168 Vegetable varieties Member States which have notified implementing measures: all except A and FIN 72/0169 Vine varieties Member States which have notified implementing measures: all except A 281 72/0180 Agricultural varieties Member States which have notified implementing measures: all except A and FIN 72/0199 Feedingstuffs - official controls Member States which have notified implementing measures: all except FIN 72/0274 Seed Member States which have notified implementing measures: all except FIN 72/0275 Feedingstuffs - official control Member States which have notified implementing measures: all except S and FIN 72/0418 Seed Member States which have notified implementing measures: all except FIN 72/0445 Health problems - trade in live animals Member States which have notified implementing measures: all 72/0461 Health problems - trade in meat Member States which have notified implementing measures: all except FIN 72/0462 Health problems - animals and meat from non-member countries Member States which have notified implementing measures: all 282 73/0046 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN 73/0047 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN and S 73/0150 Health problems - trade in live animals Member States which have notified implementing measures: all 73/0438 Seed Member States which have notified implementing measures: all except FIN 74/0013 Forest reproductive material Member States which have notified implementing measures: all except A and S 74/0063 Feedingstuffs - undesirable substances Member States which have notified implementing measures: all except FIN 74/0203 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN 74/0268 Fodder-plant and cereal seed Member States which have notified implementing measures: all except FIN 283 74/0647 Control of carnation leaf-rollers Member States which have notified implementing measures: all except A 74/0648 Material for the propagation of vines Member States which have notified implementing measures: all except A 74/0649 Material for the propagation of vines Member States which have notified implementing measures: all except A 75/0084 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN 75/0444 Seed Member States which have notified implementing measures: all except FIN 75/0445 Forest reproductive material Member States which have notified implementing measures: all except A 75/0502 Meadowgrass seed Member States which have notified implementing measures: all except FIN 76/0014 Feedingstuffs - undesirable substances Member States which have notified implementing measures: all except FIN 76/0331 Beet seed Member States which have notified implementing measures: all except FIN 284 76/0371 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN 76/0372 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN 76/0895 Pesticide residues in fruit and vegetables Member States which have notified implementing measures: all except FIN 76/0934 Feedingstuffs - undesirable substances Member States which have notified implementing measures: all except FIN 77/0093 Organisms harmful to plants Member States which have notified implementing measures: all except FIN 77/0096 Health problems - import of meat Member States which have notified implementing measures: all except S 77/0098 Health problems - trade in animals Member States which have notified implementing measures: all except FIN 77/0099 Health problems - meat products Member States which have notified implementing measures: all except FIN 77/0101 Straight feedingstuffs Member States which have notified implementing measures: all except FIN 285 77/0391 Eradication of brucellosis Member States which have notified implementing measures: all 77/0504 Pure-bred cattle for breeding Member States which have notified implementing measures: all except A Ireland - 88/0449, not properly applied, referral in 1991, judgment in 1992, terminated in 1995 77/0629 Material for the propagation of vines Member States which have notified implementing measures: all except A 78/0052 Eradication of brucellosis Member States which have notified implementing measures: all 78/0055 Seed Member States which have notified implementing measures: all except FIN 78/0386 Fodder-plant seed Member States which have notified implementing measures: all except FIN 78/0387 Cereal seed Member States which have notified implementing measures: all except FIN 78/0388 Seed of oil and fibre plants Member States which have notified implementing measures: all except FIN 286 78/0511 Fodder-plant and cereal seed Member States which have notified implementing measures: all except FIN 78/0633 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN 78/0692 Seed Member States which have notified implementing measures: all except FIN 78/0816 Seed potatoes Member States which have notified implementing measures: all except A and FIN 78/1020 Seed Member States which have notified implementing measures: all except FIN 79/0109 Health problems - trade in animals - brucellosis Member States which have notified implementing measures: all 79/0111 Health problems - trade in animals - brucellosis Member States which have notified implementing measures: all 79/0117 Plant protection products containing certain active substances Member States which have notified implementing measures: all except FIN 79/0372 Straight feedingstuffs Member States which have notified implementing measures: all except FIN 287 79/0373 Compound feedingstuffs Member States which have notified implementing measures: all except FIN 79/0641 Seed Member States which have notified implementing measures: all except FIN 79/0692 Seed Member States which have notified implementing measures: all except FIN 79/0700 Pesticides in fruit and vegetables - official control Member States which have notified implementing measures: all except FIN 79/0797 Feedingstuffs Member States which have notified implementing measures: all except FIN 79/967 Seed Member States which have notified implementing measures: all except A and FIN 80/0213 Health problems - trade in meat Member States which have notified implementing measures: all except FIN 80/0215 Health problems - meat products Member States which have notified implementing measures: all except FIN 80/0217 Control of classical swine fever Member States which have notified implementing measures: all 288 80/0219 Health problems - trade in animals - tuberculosis Member States which have notified implementing measures: all 80/0304 Seed of oil and fibre plants Member States which have notified implementing measures: all except FIN 80/0392 Organisms harmful to plants Member States which have notified implementing measures: all except FIN 80/0428 Pesticide residues in fruit and vegetables Member States which have notified implementing measures: all except FIN 80/0502 Feedingstuffs - undesirable substances Member States which have notified implementing measures: all except FIN 80/0510 Straight feedingstuffs Member States which have notified implementing measures: all except FIN 80/0511 Compound feedingstuffs in packages Member States which have notified implementing measures: all except FIN 80/0695 Compound feedingstuffs Member States which have notified implementing measures: all except FIN 80/0754 Fodder-plant seed Member States which have notified implementing measures: all except FIN 289 80/1095 Control of classical swine fever Member States which have notified implementing measures: all 80/1098 Health problems - trade in animals - classical swine fever Member States which have notified implementing measures: all 80/1099 Health problems - trade in meat - classical swine fever Member States which have notified implementing measures: all except FIN 80/1100 Health problems - meat products - classical swine fever Member States which have notified implementing measures: all except FIN and S 80/1101 Control of classical swine fever Member States which have notified implementing measures: all 80/1274 Health problems - trade in animals - classical swine fever Member States which have notified implementing measures: all 81/0006 Eradication of brucellosis Member States which have notified implementing measures: all 81/0007 Organisms harmful to plants Member States which have notified implementing measures: all except FIN 81/0036 Pesticide residues in fruit and vegetables Member States which have notified implementing measures: all except FIN 290 81/0126 Seed Member States which have notified implementing measures: all except FIN 81/0602 Ban on hormones Member States which have notified implementing measures: all 81/0680 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN 81/0715 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN 82/0287 Seed Member States which have notified implementing measures: all except FIN 82/0331 Material for the propagation of vines Member States which have notified implementing measures: all except A 82/0471 Feedingstuffs Member States which have notified implementing measures: all except FIN 82/0475 Labelling of compound feedingstuffs for pet animals Member States which have notified implementing measures: all except FIN 82/0528 Pesticide residues in fruit and vegetables Member States which have notified implementing measures: all except FIN 291 82/0859 Seed of oil and fibre plants Member States which have notified implementing measures: all except FIN 82/0894 Notification of animal diseases Member States which have notified implementing measures: all 82/0937 Straight feedingstuffs Member States which have notified implementing measures: all except FIN 83/0091 Health problems - trade in animals and meat Member States which have notified implementing measures: all except FIN and S 83/0116 Fodder-plant seed and seed of oil and fibre plants Member States which have notified implementing measures: all except A and FIN 83/0131 Plant protection products containing certain active substances Member States which have notified implementing measures: all except FIN 83/0201 Health problems - products containing a small percentage of meat Member States which have notified implementing measures: all except FIN 83/0228 Feedingstuffs Member States which have notified implementing measures: all except FIN 292 83/0381 Feedingstuffs Member States which have notified implementing measures: all except FIN 84/0004 Feedingstuffs - official control Member States which have notified implementing measures: all except S and FIN 84/0319 Health problems - import of meat - trichinae Member States which have notified implementing measures: all except S 84/0425 Feedingstuffs - official control Member States which have notified implementing measures: all except FIN 84/0443 Products used in feedingstuffs Member States which have notified implementing measures: all except FIN 84/0587 Feedingstuffs - additives Member States which have notified implementing measures: all except FIN 84/0643 Health problems - trade in animals - foot-and-mouth disease Member States which have notified implementing measures: all except FIN 84/0644 Health problems - trade in animals - brucellosis Member States which have notified implementing measures: all 84/0645 Control of classical swine fever Member States which have notified implementing measures: all 293 85/0038 Fodder-plant seed Member States which have notified implementing measures: all except FIN 85/0073 Financing of health inspections of fresh meat Member States which have notified implementing measures: all except A, S and FIN 85/0298 Plant protection products containing certain active substances Member States which have notified implementing measures: all except FIN 85/0320 Health problems - trade in animals - classical swine fever Member States which have notified implementing measures: all 85/0321 Health problems - meat products - classical swine fever Member States which have notified implementing measures: all except FIN 85/0322 Health problems - trade in meat - classical swine fever Member States which have notified implementing measures: all except FIN and S 85/0358 Ban on hormones Member States which have notified implementing measures: all 85/0509 Feedingstuffs Member States which have notified implementing measures: all except FIN 85/0511 Control of foot-and-mouth disease Member States which have notified implementing measures: all except FIN 294 85/0574 Organisms harmful to plants Member States which have notified implementing measures: all except FIN 85/0586 Health problems - trade in animals and meat Member States which have notified implementing measures: all except FIN 86/0109 Certified seed Member States which have notified implementing measures: all except FIN 86/0155 Seed Member States which have notified implementing measures: all except A and FIN 86/0174 Compound feedingstuffs for poultry Member States which have notified implementing measures: all except FIN 86/0214 Plant protection products containing certain active substances Member States which have notified implementing measures: all except FIN 86/0267 Vine varieties Member States which have notified implementing measures: all except A 86/0299 Feedingstuffs - undesirable substances Member States which have notified implementing measures: all except FIN 86/0320 Cereal seed Member States which have notified implementing measures: all except FIN 295 86/0354 Compound feedingstuffs Member States which have notified implementing measures: all except FIN 86/0355 Plant protection products containing certain active substances Member States which have notified implementing measures: all except FIN 86/0362 Pesticide residues in cereals Member States which have notified implementing measures: all except FIN 86/0363 Pesticide residues in foodstuffs of animal origin Member States which have notified implementing measures: all except FIN 86/0469 Examination of meat for the presence of residues Member States which have notified implementing measures: all except FIN 86/0530 Products used in feedingstuffs Member States which have notified implementing measures: all except FIN 86/0651 Organisms harmful to plants Member States which have notified implementing measures: all except FIN 87/0120 Seeds and propagating materials Member States which have notified implementing measures: all except FIN 87/0153 Feedingstuffs - additives Member States which have notified implementing measures: all except A and FIN 296 87/0181 Plant protection products containing certain active substances Member States which have notified implementing measures: all except FIN 87/0234 Straight feedingstuffs Member States which have notified implementing measures: all except FIN 87/0238 Feedingstuffs - undesirable substances Member States which have notified implementing measures: all except FIN 87/0298 Organisms harmful to plants Member States which have notified implementing measures: all except FIN 87/0328 Cattle for breeding Member States which have notified implementing measures: all except A Netheriands - 89/0500, no measures notified, judgment in 1993 - in 1994, Case C-92/303, Art. 171 terminated in 1995 letter 87/0477 Plant protection products containing certain active substances Member States which have notified implementing measures: all except FIN 87/0480 Seed Member States which have notified implementing measures: all except FIN 87/0481 Vegetable seed Member States which have notified implementing measures: all except FIN and A 297 87/0486 Control of classical swine fever Member States which have notified implementing measures: all 87/0487 Classical swine fever Member States which have notified implementing measures: all 87/0489 Health problems - trade in animals - classical swine fever Member States which have notified implementing measures: all except FIN 87/0491 Health problems - meat products Member States which have notified implementing measures: all except FIN and S 88/0095 Beet seed Member States which have notified implementing measures: all except FIN 88/0146 Ban on hormones Member States which have notified implementing measures: all except FIN 88/0166 Protection of laying hens kept in battery cages Member States which have notified implementing measures: all except FIN and A 88/0289 Health problems - animals and meat from non-member countries Member States which have notified implementing measures: all except FIN and S 298 88/0298 Pesticides in fruit and vegetables and cereals Member States which have notified implementing measures: all except FIN 88/0299 Meat and animals from non-member countries Member States which have notified implementing measures: all except FIN 88/0380 Seed Member States which have notified implementing measures: all except FIN 88/0406 Health problems - trade in animals - enzootic bovine leucosis Member States which have notified implementing measures: all 88/0407 Bovine semen Member States which have notified implementing measures: all 88/0409 Fees for the inspection of meat Member States which have notified implementing measures: all except A, S and FIN 88/0485 Products used in feedingstuffs Member States which have notified implementing measures: all except FIN 88/0572 Organisms harmful to plants Member States which have notified implementing measures: all except FIN 88/0657 Health problems - trade in minced meat Member States which have notified implementing measures: all except A and FIN 299 88/0660 Health problems - meat products Member States which have notified implementing measures: all except FIN 88/0661 Pigs for breeding Member States which have notified implementing measures: all except A 89/0002 Cereal seed Member States which have notified implementing measures: all except FIN 89/0014 Vegetable seed Member States which have notified implementing measures: all except FIN and A 89/0100 Fodder-plant seed Member States which have notified implementing measures: all except FIN 89/0186 Pesticide residues in fruit and vegetables Member States which have notified implementing measures: all except FIN 89/0227 Health problems - meat products - non-member countries Member States which have notified implementing measures: all except FIN 89/0321 Health problems - import of meat Member States which have notified implementing measures: all except S 89/0360 Health problems - trade in animals - brucellosis Member States which have notified implementing measures: all 300 89/0361 Sheep and goats for breeding Member States which have notified implementing measures: all except A Netheriands - 91/0464, no measures notified, judgment in 1993, Case C-92/303, Art. 171 letter in 1994, terminated in 1995 89/0362 Hygiene in milk production holdings Member States which have notified implementing measures: all except FIN 89/0365 Plant protection products containing certain active substances Member States which have notified implementing measures: all except FIN 89/0384 Health problems - trade in milk Member States which have notified implementing measures: all except FIN 89/0424 Seed Member States which have notified implementing measures: all except FIN 89/0437 Health problems - eggs Member States which have notified implementing measures: all except FIN and A 89/0439 Organisms harmful to plants Member States which have notified implementing measures: all except FIN 89/0520 Products used in feedingstuffs Member States which have notified implementing measures: all except FIN 301 89/0556 Embryos of bovine animals Member States which have notified implementing measures: all 89/0608 Mutual assistance - veterinary and zootechnical legislation Member States which have notified implementing measures: all 89/0662 Veterinary checks in intra-Community trade Member States which have notified implementing measures: B, DK, D, EL, E, F, I, L, NL, P, UK, A, S. Ireland - 92/0794, no measures notified, referral in 1994, Case C-94/162, judgment in 1995 90/0044 Compound feedingstuffs Member States which have notified implementing measures: all except FIN 90/0118 Pure-bred breeding pigs Member States which have notified implementing measures: all except A 90/0119 Hybrid breeding pigs Member States which have notified implementing measures: all except A 90/0120 Bovine semen Member States which have notified implementing measures: all except FIN 90/0167 Medicated feedingstuffs Member States which have notified implementing measures: all except FIN 302 Belgium - 92/0041, no measures notified, referral in 1994, Case C- 94/065, judgment in 1994, terminated in 1995 Germany - 92/0115, no measures notified, reasoned opinion in 1994, terminated in 1995 Spain - 92/0161, no measures notified, referral in 1994, Case C- 94/094, judgment in 1994 (to be terminated in 1996) 90/0168 Organisms harmful to plants Member States which have notified implementing measures: all except FIN 90/0335 Plant protection products Member States which have notified implementing measures: all except FIN 90/0422 Health problems - trade in animals - bovine leucosis Member States which have notified implementing measures: all. 90/0423 Control of foot-and-mouth disease Member States which have notified implementing measures: all 90/0425 Veterinary checks in intra-Community trade Member States which have notified implementing measures: B, DK, D, EL, E, F, I, NL, L, P, UK, A, S. Ireland - 92/0799, no measures notified, reasoned opinion in 1993, referral in 1994, Netheriands Case C-94/161, judgment in 1995 - 92/0879, no measures notified, reasoned opinion in 1993, terminated in 1995 303 90/0426 Animal health conditions governing the movement of equidae Member States which have notified implementing measures: all 90/0427 Zootechnical conditions governing trade in equidae Member States which have notified implementing measures: all except A Netheriands - 92/0452, no measures notified, reasoned opinion in 1993, terminated in 1995 90/0428 Trade in equidae for competitions Member States which have notified implementing measures: B, DK, EL, E, F, IRL, I, L, NL, P, UK, FIN. Germany - 92/0121, no measures notified, reasoned opinion in 1993 90/0429 Health problems - porcine semen Member States which have notified implementing measures: all 90/0439 Products used in feedingstuffs Member States which have notified implementing measures: all except FIN 90/0533 Plant protection products Member States which have notified implementing measures: all except FIN 90/0539 Health problems - poultry and hatching eggs Member States which have notified implementing measures: all 304 90/0642 Pesticide residues in products of plant origin Member States which have notified implementing measures: all except FIN Germany - 94/0066, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 94/0129, no measures notified, reasoned opinion in 1994, terminated in 1995 Ireland - 94/0198, no measures notified, Art. 169 letter in 1994, Luxembourg 1994, terminated in 1995 - 94/0265, no measures notified, reasoned opinion h terminated in 1995 United Kingdom - 94/0363, no measures notified, Art. 169 letter in 1994, terminated in 1995 90/0667 Processing of animal waste Member States which have notified implementing measures: B, DK, D, EL, E, F, I, IRL, L, P, UK, S. Netheriands - 92/0456, no measures notified, Case C-94/093, judgment in 1995, Art. 171 letter in 1995 90/0675 Veterinary checks for products from non-member countries Member States which have notified implementing measures: B, DK, D, EL, E, F, I, L, NL, P, UK, S, A. Ireland - 92/0801, no measures notified, reasoned opinion in 1993, referral in 1994, Case C-94/132, judgment in 1995 91/0067 Aquaculture products Member States which have notified implementing measures: B, D, DK, EL, E, F, I, L, NL, P, UK, A, S, FIN N Germany - 93/0105, no measures notified, referral in 1995, Case C-95/086, withdrawn in 1995 305 Spain - 93/0192, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 93/0154, no measures notified, reasoned opinion in 1994, France terminated in 1995 - 93/0238, no measures notified, referral in 1995, Case C-95/017, withdrawn in 1995 Ireland - 93/0275, no measures notified, referral in 1995, Case C-95/325 Portugal - 93/0437, no measures notified, referral in 1995, Case C-95/125, withdrawn in 1995 91/0068 Health problems - trade in sheep Member States which have notified implementing measures: all Denmark - 93/0065, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 93/0153, no measures notified, reasoned opinion in 1994, terminated in 1995 91/0069 Health problems - trade in sheep Member States which have notified implementing measures: all except FIN and S Denmark - 93/0064, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 93/0152, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 93/0236, no measures notified, reasoned opinion in 1994, terminated in 1995 91/0126 Feedingstuffs - undesirable substances Member States which have notified implementing measures: all except FIN 306 91/0132 Feedingstuffs - undesirable substances Member States which have notified implementing measures: all except FIN 91/0174 Marketing of pure-bred animals Member States which have notified implementing measures: all except A Ireland - 92/0313, no measures notified, reasoned opinion in 1994, terminated in 1995 Netheriands - 92/0458, no measures notified, reasoned opinion in 1993, terminated in 1995 91/0188 Plant protection products containing certain active substances Member States which have notified implementing measures: all except FIN 91/0248 Feedingstuffs - additives Member States which have notified implementing measures: all except A and FIN 91/0249 Feedingstuffs - additives Member States which have notified implementing measures: all except A and FIN 91/0266 Health problems - trade in animals and meat Member States which have notified implementing measures: all except FIN 91/0334 Compound feedingstuffs for pet animals Member States which have notified implementing measures: all except FIN 307 91/0336 Feedingstuffs - additives Member States which have notified implementing measures: all except FIN 91/0357 Compound feedingstuffs Member States which have notified implementing measures: all except FIN 91/0414 Placing of plant protection products on the market Member States which have notified implementing measures: B, DK, E,F, IRL, I, L, NL, P, UK, S. Denmark - 93/0902, no measures notified, Art. 169 letter in 1993, terminated in 1995 Germany - 93/0906, no measures notified, reasoned opinion in 1994 Greece - 93/0914, no measures notified, referral in 1995, Case C-95/380 Spain - 93/0919, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 93/0922, no measures notified, Art. 169 letter in 1993, terminated in 1995 Ireland - 93/0933, no measures notified, Art. 169 letter in 1993, terminated in 1995 Italy - 93/0928, no measures notified, reasoned opinion in 1994, terminated in 1995 Luxembourg - 93/0941, no measures notified, reasoned opinion Netheriands in 1994, terminated in 1995 - 93/0938, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 93/0945, no measures notified, reasoned opinion in 1994, terminated in 1995 United Kingdom - 93/0951, no measures notified, Art. 169 letter in 1993, terminated in 1995 308 91/0492 Live bivalve molluscs Member States which have notified implementing measures: B, D, DK, EL, E, F, I, L, NL, P, UK, S Greece - 93/0145, no measures notified, reasoned opinion in 1994 Ireland terminated in 1995 - 93/0266, no measures notified, referral in 1995, Case C-95/325 Portugal - 93/0429, no measures notified, referral in 1995, Case C-95/125, withdrawn in 1995 91/0493 Fishery products Member States which have notified implementing measures: B, D, DK, EL, E, I, F, L, NL, P, UK, S Greece - 93/0144, no measures notified, reasoned opinion in 1994, Ireland terminated in 1995 - 93/0265, no measures notified, referral in 1995, Case C-95/325 Portugal - 93/0428, no measures notified, referral in 1995, Case C-95/125, withdrawn in 1995 91/0494 Health problems - import of poultrymeat Member States which have notified implementing measures: all except FIN 91/0495 Rabbit meat and farmed game meat Member States which have notified implementing measures: B, D, DK, EL, E, F, IRL, I, L, NL, P, S, A. Germany - 93/0093, no measures notified, referral in 1995, Case C-95/086, withdrawn in 1995 Greece - 93/0143, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 93/0230, no measures notified, reasoned opinion in 1994, terminated in 1995 309 Ireland - 93/0264, no measures notified, referral in 1995, Case C-95/324 United Kingdom - 93/0473, no measures notified, referral in 1995, Case C-95/306 91/0496 Veterinary checks for animals from non-member countries Member States which have notified implementing measures: B, DK, D, EL, E, F, I, L, P, NL, UK, A, S, FIN. Ireland - 92/0808, no measures notified, referral in 1994, Case C-94/138, judgment in 1995 91/0497 Fresh meat Member States which have notified implementing measures: all except FIN - 93/0092, no measures notified, referral in 1995, Case Germany C-95/086, withdrawn in 1995 Greece - 93/0142, no measures notified, reasoned opinion in 1994 terminated in 1995 Portugal - 93/0426, no measures notified, reasoned opinion in 1994, terminated in 1995 91/0499 Health problems - trade in animals - brucellosis Member States which have notified implementing measures: all 91/0508 Feedingstuffs - additives Member States which have notified implementing measures: all except FIN 91/0628 Protection of animals during transport Member States which have notified implementing measures: B, D, DK, EL, E, IRL, I, L, NL, P, UK, A 310 Germany - 93/0091, no measures notified, referral in 1995, Case C-95/101, withdrawn in 1995 Greece - 93/0141, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 93/0229, no measures notified, referral in 1995, Case C-95/017, judgment in 1995 Ireland - 93/0263, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 93/0425, no measures notified, reasoned opinion in 1994, terminated in 1995 91/0629 Protection of calves Member States which have notified implementing measures: all except FIN and A Belgium - 94/0006, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 94/0127, no measures notified, reasoned opinion in 1994, terminated in 1995 Spain - 93/0134, no measures notified, Art. 169 letter in 1994, terminated in 1995 Ireland - 94/0200, no measures notified, reasoned opinion in 1994, terminated in 1995 Netheriands - United Kingdom 94/0301, no measures notified, reasoned opinion in 1994, terminated in 1995 - 94/0365, no measures notified, Art. 169 letter in 1994, terminated in 1995 91/0630 Protection of pigs Member States which have notified implementing measures: all except FIN and A Belgium - 94/0007, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 94/0126, no measures notified, reasoned opinion in 1994, terminated in 1995 Spain - 94/0135, no measures notified, Art. 169 letter in 1994, terminated in 1995 311 Ireland - 94/0201, no measures notified, reasoned opinion in 1994, terminated in 1995 Netheriands - 94/0302, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 94/0333, no measures notified, Art. 169 letter in 1994, terminated in 1995 United Kingdom - 94/0366, no measures notified, Art. 169 letter in 1994, terminated in 1995 91/0682 Material for the propagation of ornamental plants Member States which have notified implementing measures: all except FIN, A and S Greece - 93/0168, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 93/0226, no measures notified, reasoned opinion in 1994, terminated in 1995 Ireland - 93/0261, no measures notified, reasoned opinion in 1994, terminated in 1995 United Kingdom - 93/0468, no measures notified, reasoned opinion in 1995 (to be terminated in 1996) 91/0683 Organisms harmful to plants Member States which have notified implementing measures: all except FIN Belgium - 93/0625, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 93/0715, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 93/0849, no measures notified, reasoned opinion in 1994, terminated in 1995 91/0684 Health problems - egg products Member States which have notified implementing measures: all except FIN and A 312 91/0685 Control of classical swine fever Member States which have notified implementing measures: B, DK, D, E, EL, F, IRL, L, NL, P, UK, A, S, FIN. Greece - 92/0726, no measures notified, reasoned opinion in 1993, terminated in 1995 Italy - 92/0834, no measures notified, referral in 1993, Case C-94/257, judgment in 1995 91/0687 Health problems - trade in animals - classical swine fever Member States which have notified implementing measures: all except FIN Belgium - no measures notified, Case C-94/066, judgment in 1995, Art. 171 letter in 1995, terminated in 1995 91/0688 Health problems - import of animals and meat Member States which have notified implementing measures: DK, D, EL, E, F, IRL, I, L, NL, P, UK, S, A. Belgium - 92/0671, no measures notified, Case C-94/066, judgment in 1995, Art. 171 letter in 1995 92/0005 Health problems - meat products Member States which have notified implementing measures: B, DK, D, E, F, IRL, I, L, NL, P, UK, A, S. Germany - 93/0087, no measures notified, referral in 1995, Case C-95/086, withdrawn in 1995 Greece - 93/0137, no measures notified, referral in 1995, Case C-95/304 Ireland - 93/0260, no measures notified, reasoned opinion in 1994, terminated in 1995 United Kingdom - 93/0467, no measures notified, reasoned opinion in 1994, terminated in 1995 313 92/0009 Seed of oil and fibre plants Member States which have notified implementing measures: all except FIN and A 92/0019 Fodder-plant seed Member States which have notified implementing measures: all except FIN 92/0033 Vegetable propagating material Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, L, NL, P, UK, S. Greece - 93/0129, no measures notified, reasoned opinion in 1994, terminated in 1995 Italy - 93/0297, no measures notified, referral in 1995, Case C-95/118, judgment in 1995 United Kingdom - 93/0460, no measures notified, reasoned opinion in 1995 (to be terminated in 1996) 92/0034 Fruit-plant propagating material Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, L, NL, P, UK, S. Greece - 93/0128, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 93/0214, no measures notified, reasoned opinion in 1993, terminated in 1995 Italy - 93/0296, no measures notified, referral in 1995, Case C-95/118, judgment in 1995 Ireland - 93/0253, no measures notified, reasoned opinion in 1994, terminated in 1995 United Kingdom - 93/0459, no measures notified, reasoned opinion in 1995 (to be terminated in 1996) 314 92/0035 Control of African horse sickness Member States which have notified implementing measures: B, D, DK, EL, E, IRL, L, P, NL, UK, A, S. France - 93/0213, no measures notified, referral in 1995, Case C-95/017, judgment in 1995 Ireland - 93/0252, no measures notified, reasoned opinion in 1994, terminated in 1995 Italy - 93/0295, no measures notified, referral in 1995, Case C-95/117 92/0036 African horse sickness Member States which have notified implementing measures: all 92/0040 Avian influenza Member States which have notified implementing measures: B, D, DK, EL, E, F, IRL, L, NL, P, A, S. Belgium - 93/0006, no measures notified, referral in 1995, Case C-95/014, withdrawn in 1995 Germany - 93/0074, no measures notified, referral in 1995, Case C-95/086, withdrawn in 1995 Greece Italy - 93/0124, no measures notified, terminated in 1995 - 93/0292, no measures notified, referral in 1995, Case C-95/117 United Kingdom - 93/0456, no measures notified, referral in 1995, Case C-95/306 92/0045 Wild-game meat Member States which have notified implementing measures: B, D, DK, EL, E, F, IRL, L, NL, A, S. Belgium - 94/0010, no measures notified, reasoned opinion in 1994, terminated in 1995 315 Denmark - 94/0040, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 94/0122, no measures notified, reasoned opinion in 1994, terminated in 1995 Spain - 94/0138, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 94/0171, no measures notified, referral in 1995, Case C-95/256, withdrawn in 1995 Ireland - 94/0203, no measures notified, referral in 1995, Case C-95/319 Italy - 94/0236, no measures notified, referral in 1995, Case Netheriands C-95/314 - 94/0304, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 94/0336, no measures notified, reasoned opinion in 1994 - 94/0369, no measures notified, reasoned opinion United Kingdom in 1994 92/0046 Milk products Member States which have notified implementing measures: B, DK, D, EL,E, F, L, NL, P, UK, A, S. Denmark - 94/0041, no measures notified, reasoned opinion in 1994, terminated in 1995 Germany - 94/0072, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 94/0121, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 94/0172, no measures notified, reasoned opinion in 1994, terminated in 1995 Ireland - 94/0204, no measures notified, referral in 1995, Case C-95/319 Italy - 94/0237, no measures notified, referral in 1995, Case C-95/314 United Kingdom - 94/0370, no measures notified, reasoned opinion in 1994, terminated in 1995 316 92/0048 Hygiene rules applicable to fishery products Member States which have notified implementing measures: B, D, DK, EL, E, F, L, NL, P, UK, A, S Belgium - 93/0003, no measures notified, referral in 1995, Case C-95/014, withdrawn in 1995 Greece - 93/0121, no measures notified, reasoned opinion in 1994, terminated in 1995 Ireland - 93/0247, no measures notified, referral in 1995, Case C-95/325 Italy - 93/0290, no measures notified, referral in 1995, Case C-95/116 Portugal - 93/0406, no measures notified, referral in 1995, Case C-95/0125, withdrawn in 1995 92/0060 Veterinary and zootechnical checks in intra-Community trade Member States which have notified implementing measures: B, DK, D, EL, E, F, I, L, NL, P, UK, FIN, S, A. France - 94/0445, no measures notified, Art. 169 letter in 1994, terminated in 1995 Ireland - 94/0456, no measures notified, Art. 169 letter in 1994 92/0063 Undesirable substances and products in animal nutrition Member States which have notified implementing measures: all except FIN Greece - 93/0542, no measures notified, reasoned opinion in 1994, terminated in 1995 Italy - 93/0572, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 93/0590, no measures notified, reasoned opinion in 1994, terminated in 1995 92/0064 Feedingstuffs - additives Member States which have notified implementing measures: all except FIN 317 Luxembourg - 93/0579, no measures notified, Art. 169 letter in 1993, terminated in 1995 Portugal - 93/0591, no measures notified, reasoned opinion in 1994 terminated in 1995 92/0065 Semen, ova and embryos not subject to Directive 90/425/EEC Member States which have notified implementing measures: B, D, DK, E, F, L, NL, P, UK, A, S. Denmark - 94/0044, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 94/0120, no measures notified, reasoned opinion in 1994 Ireland - 94/0207, no measures notified, referral in 1995, Case C-95/319 Italy - 94/0240, no measures notified, referral in 1995, Case Netheriands C-95/314 - 94/0308, no measures notified, reasoned opinion in 1994 terminated in 1995 Portugal - 94/0339, no measures notified, reasoned opinion in 1994, terminated in 1995 92/0066 Control of Newcastle disease Member States which have notified implementing measures: B, D, DK, E, F, IRL, L, NL, P, A, S. Belgium - 93/0972, no measures notified, reasoned opinion in 1994, Germany terminated in 1995 - 93/0990, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 93/1026, no measures notified, reasoned opinion in 1994 , France - 93/1013, no measures notified, Art. 169 letter in 1993, terminated in 1995 Ireland - 93/1033, no measures notified, Art. 169 letter in 1993, terminated in 1995 Italy - 93/1046, no measures notified, referral in 1995, Case C-95/313 318 United Kingdom - 93/1088, no measures notified, reasoned opinion in 1994 92/0067 Veterinary checks in intra-Community trade Member States which have notified implementing measures: B, DK, D, EL, E, F, I, L, NL, P, UK, A, S. France - 94/0447, no measures notified, Art. 169 letter in 1994, terminated in 1995 Ireland - 94/0457, no measures notified, Art. 169 letter in 1994 92/0070 Recognition of protected zones Member States which have notified implementing measures: all except A and FIN Greece - 93/0911, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 93/0925, no measures notified, reasoned opinion in 1994 terminated in 1995 Luxembourg - 93/0942, no measures notified, Art. 169 letter in 1993, terminated in 1995 92/0076 Protected zones exposed to particular plant health risks Member States which have notified implementing measures: all except FIN and A Greece - 93/0707, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 93/0856, no measures notified, Art. 169 letter in 1993, terminated in 1995 92/0087 Preparation of compound feedingstuffs intended for animals other than pets Member States which have notified implementing measures: all except FIN Belgium - 93/0515, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 93/0534, no measures notified, reasoned opinion in 1994, terminated in 1995 319 Italy - 93/0574, no measures notified, reasoned opinion in 1994, terminated in 1995 Luxembourg - 93/0580, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 93/0592, no measures notified, reasoned opinion in 1994, terminated in 1995 92/0088 Undesirable substances and products in animal nutrition Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, L, NL, P, UK, A, S. Germany - 94/0078, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 94/0117, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 94/0178, no measures notified, reasoned opinion in 1994, terminated in 1995 Italy - 94/0243, no measures notified, referral in 1995, Case C-95/314 Portugal - 94/0342, no measures notified, reasoned opinion in 1994, terminated in 1995 92/0089 Community methods of analysis for the official control of feedingstuffs Member States which have notified implementing measures: all except FIN Denmark - 93/0984, no measures notified, Art. 169 letter in 1993, terminated in 1995 Spain - 93/1001, no measures notified, reasoned opinion in 1994, terminated in 1995 Ireland - 93/1035, no measures notified, Art. 169 letter in 1993, terminated in 1995 Italy - 93/1048, no. measures notified, Art. 169 letter in 1993, terminated in 1995 Portugal - 93/1078, no measures notified, reasoned opinion in 1994 (to be terminated in 1996) United Kingdom - 93/1090, no measures notified, Art. 169 letter in 1993, terminated in 1995 320 92/0090 Producers and importers of plants Member States which have notified implementing measures: all except FIN Belgium - 93/0631, no measures notified, reasoned opinion in 1994, Germany terminated in 1995 - 93/0680, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 93/0705, no measures notified, reasoned opinion in 1994, terminated in 1995 92/0095 Community methods of analysis for the official control of feedingstuffs Member States which have notified implementing measures: all except FIN Denmark - 93/0985, no measures notified, Art. 169 letter in 1993, terminated in 1995 Spain - 93/1002, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 93/1079, no measures notified, reasoned opinion in 1994 (to be terminated in 1996) United Kingdom - 93/1091, no measures notified, Art. 169 letter in 1993, terminated in 1995 92/0098 Organisms harmful to plants Member States which have notified implementing measures: all except FIN Belgium - 93/0633, no measures notified, reasoned opinion in 1994, Germany terminated in 1995 - 93/0682, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece - 93/0704, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 93/0860, no measures notified, reasoned opinion in 1994, terminated in 1995 321 92/0102 Identification and registration of animals Member States which have notified implementing measures: DK, D, EL, F, L, P, NL, A, S. Belgium - 95/0015, no measures notified, Art. 169 letter in 1995 (**) - 95/0043, no measures notified, Art. 169 letter in 1995, Germany terminated in 1995 Greece - 94/0115, no measures notified, reasoned opinion in 1994 (*) terminated in 1995 95/0057, no measures notified, Art. 169 letter in 1995, terminated in 1995 (**) - 95/0077, no measures notified, Art. 169 letter in 1995 Spain France - 95/0093, no measures notified, Art. 169 letter in 1995, terminated in 1995 (**) Ireland - 94/0212, no measures notified, reasoned opinion in 1994 (*) 95/0111, no measures notified, Art. 169 letter 1995 (**) in (*) Cattle and pigs (**) Sheep and goats Luxembourg Italy - 94/0245, no measures notified, reasoned opinion in 1994 (*) 95/0128, no measures notified, Art. 169 letter in 1995 (**) 95/0144, no measures notified, Art. 169 letter in 1995, terminated in 1995 (**) - 94/0377, no measures notified, reasoned opinion United Kingdom - in 1994, terminated in 1995 (**) 95/0191, no measures notified, Art. 169 letter in 1995 (*) Cattle and pigs (**) Sheep and goats 92/0103 Organisms harmful to plants Member States which have notified implementing measures: all except FIN Greece - 93/0702, no measures notified, reasoned opinion in 1994, terminated in 1995 322 Portugal - 93/0861, no measures notified, reasoned opinion in 1994, terminated in 1995 92/0105 Plant passports Member States which have notified implementing measures: all except A and FIN Greece - 93/0699, no measures notified, reasoned opinion in 1994, terminated in 1995 92/0107 Oil and fibre plants Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, L, NL, UK, S. Greece - 94/0994, no measures notified, Art. 169 letter in 1995, terminated in 1995 Ireland - 94/0864, no measures notified, Art. 169 letter in 1995, terminated in 1995 Italy - 94/0872, no measures notified, Art. 169 letter in 1995 Portugal - 94/0928, no measures notified, Art. 169 letter in 1995 92/0110 Minced meat Member States which have notified implementing measures: B, DK, D, E, F, IRL, NL, P, S. Germany - 94/0080, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece Italy Luxembourg - 94/0114, no measures notified, reasoned opinion in 1994 - 94/0246, no measures notified, reasoned opinion in 1994 94/0280, no measures notified, reasoned opinion in 1994 - Portugal - 94/0345, no measures notified, reasoned opinion in 1994, terminated in 1995 United Kingdom - 94/0378, no measures notified, reasoned opinion in 1994 323 92/0113 Additives in feedingstuffs Member States which have notified implementing measures: all except FIN Portugal - 93/0866, no measures notified, reasoned opinion in 1994, terminated in 1995 92/0116 Health problems affecting trade in fresh poultrymeat Member States which have notified implementing measures: B, DK, E, F, L, NL, P, UK, A, S. Germany - 94/0081, no measures notified, reasoned opinion in 1994 Greece Spain - 94/0113, no measures notified, reasoned opinion in 1994 - 94/0148, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 94/0181, no measures notified, Art. 169 letter in 1994, terminated in 1995 Ireland - 94/0214, no measures notified, referral in 1995, Case C-95/319 Italy - 94/0247, no measures notified, referral in 1995, Case Netheriands C-95/314 - 94/0315, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0346, no measures notified, reasoned opinion in 1994, terminated in 1995 United Kingdom - 94/037, no measures notified, reasoned opinion in 1994, terminated in 1995 92/0117 Zoonoses and zoonotic agents Member States which have notified implementing measures: DK, D, EL, E, F, L, P, UK, S, A. Belgium - 94/0019, no measures notified, reasoned opinion in 1994 - 94/0050, no measures notified, reasoned opinion in Denmark 1994, terminated in 1995 Germany - 94/0082, no measures notified, Art. 169 letter in 1994, terminated in 1995 324 Greece - 94/0112, no measures notified, reasoned opinion in 1994, Spain terminated in 1995 - 94/0149, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 94/0182, no measures notified, referral in 1995, Case C-95/256 Ireland - 94/0215, no measures notified, referral in 1995, Case C-95/319 Italy - 94/0248, no measures notified, referral in 1995, Case Netheriands C-95/314 - 94/0316, no measures notified, Art. 169 letter in 1994 92/0118 Products not subject to specific health requirements Member States which have notified implementing measures: B, D, DK, E, F, L, NL, P, UK, A, S. Belgium - 94/0020, no measures notified, reasoned opinion in 1994, Denmark terminated in 1995 - 94/0051, no measures notified, reasoned opinion in 1994, terminated in 1995 Greece Spain - 94/0111, no measures notified, reasoned opinion in 1994 - 94/0150, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 94/0183, no measures notified, referral in 1995, Case C-95/256 Ireland - 94/0216, no measures notified, referral in 1995, Case C-95/319 Italy - 94/0249, no measures notified, referral in 1995, Case Luxembourg C-95/314 - 94/0249, no measures notified, reasoned opinion in 1994, Netheriands terminated in 1995 - 94/0317, no measures notified, reasoned opinion in 19. 94, terminated in 1995 Portugal - 94/0348, no measures notified, Art. 169 letter in 1994, terminated in 1995 325 92/0119 Specific measures relating to swine vesicular disease Member States which have notified implementing measures: D, DK, EL, E, F, L, P, UK, A, S, FIN Belgium - 93/0974, no measures notified, reasoned opinion in 1994 - 93/1024, no measures notified, reasoned opinion in 1994, Greece terminated in 1995 France - 93/1015, no measures notified, referral in 1995, Case C-95/252, withdrawn in 1995 Ireland - 93/1037, no measures notified, referral in 1995, Case C-95/318 Italy - 93/1050, no measures notified, referral in 1995, Case Netheriands C-95/313 - 93/1058, no measures notified, reasoned opinion in 1994 Portugal- 93/1080, no measures notified, reasoned opinion in 1994, terminated in 1995 93/0017 Community grades of seed potatoes Member States which have notified implementing measures: all except FIN Belgium - 93/0644, no measures notified, Art. 169 letter in 1993, terminated in 1995 Germany - 93/0691, no measures notified, referral in 1995, Case C-95/108, withdrawn in 1995 Spain - 93/0736, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 93/0761, no measures notified, reasoned opinion in 1994, terminated in 1995 Italy - 93/0807, no measures notified, reasoned opinion in 1994, terminated in 1995 Ireland - 93/0784, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 93/0871, no measures notified, reasoned opinion in 1994, terminated in 1995 United Kingdom - 93/0893, no measures notified, reasoned opinion in 1994, terminated in 1995 326 93/0026 Feedingstuffs Member States which have notified implementing measures: all except FIN Denmark - 94/0256, no measures notified, Art. 169 letter in 1994, terminated in 1995 Germany - 94/0536, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece - 94/0543, no measures notified, Art. 169 letter in 1994, terminated in 1995 Italy - 94/0572, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0594, no measures notified, Art. 169 letter in 1994, terminated in 1995 93/0027 Feedingstuffs - additives Member States which have notified implementing measures: B, D, DK, E, F, IRL, I, L, NL, P, UK, S, A. - 94/0527, Art. 169 letter in 1994, terminated in 1995 - 94/0536, Art. 169 letter in 1994, terminated in 1995 Denmark Germany - 94/0542, Art. 169 letter in 1994 Greece Italy - 94/0573, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0595, Art. 169 letter in 1994, terminated in 1995 93/0028 Official control of feedingstuffs Member States which have notified implementing measures: B, D, DK, EL, E, F, IRL, I, L, NL, UK, A, S. Greece - 94/0987, no measures notified, Art. 169 letter in 1995, Spain terminated in 1995 - 94/0827, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal - 94/0934, no measures notified, Art. 169 letter in 1995 93/0048 Fruit-plant propagating material Member States which have notified implementing measures: B, DK, EL, E, F, IRL, L, NL, UK, S. 327 Belgium - 94/0024, no measures notified, reasoned opinion in 1994, Germany terminated in 1995 - 94/0086, no measures notified, reasoned opinion in 1994 Greece - 94/0105, no measures notified, reasoned opinion in 1994, terminated in 1995 Spain - 94/0154, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 94/0185, no measures notified, referral in 1995, Case C-95/256, withdrawn in 1996 Ireland - 94/0220, no measures notified, Art. 169 letter in 1994, terminated in 1995 Italy - 94/0253, no measures notified, referral in 1995, Case Luxembourg C-95/315 - 94/0287, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 94/0352, no measures notified, reasoned opinion in 1994 - 94/0384, no measures notified, reasoned opinion United Kingdom in 1995 (to be terminated in 1996) 93/0049 Material for the propagation of ornamental plants Member States which have notified implementing measures: B, DK, EL, E, F, IRL, L, NL, UK. Belgium - 94/0025, no measures notified, reasoned opinion in 1994, Germany terminated in 1995 - 94/0087, no measures notified, reasoned opinion in 1994, Greece - 94/0104, no measures notified, reasoned opinion in 1994, Spain terminated in 1995 - 94/0155, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 94/0186, no measures notified, referral in 1995, Case C-95/256, withdrawn in 1996 Ireland - 94/0221, no measures notified, Art. 169 letter in 1994, terminated in 1995 Italy - 94/0254, no measures notified, referral in 1995, Case Luxembourg C-95/315 - 94/0288, no measures notified, reasoned opinion in 1994, 328 terminated in 1995 Portugal - 94/0353, no measures notified, reasoned opinion in 1994 - 94/0385, no measures notified, reasoned opinion United Kingdom in 1995 (to be terminated in 1996) 93/0050 Organisms harmful to plants Member States which have notified implementing measures: all except FIN and A Belgium - 93/0975, no measures notified, Art. 169 letter in 1993, terminated in 1995 Germany - 93/0993, no measures notified, Art. 169 letter in 1993, terminated in 1995 Greece - 93/1022, no measures notified, reasoned opinion in 1994, terminated in 1995 Luxembourg - 93/1069, no measures notified, Art. 169 letter in 1993, terminated in 1995 Portugal - 93/1081, no measures notified, Art. 169 letter in 1993, Netheriands terminated in 1995 - 93/1059, no measures notified, reasoned opinion in 1994, terminated in 1995 93/0051 Movement of plants in protected zones Member States which have notified implementing measures: all except FIN Belgium - 93/0976, no measures notified, Art. 169 letter in 1993, terminated in 1995 Germany - 93/0994, no measures notified, Art. 169 letter in 1993, terminated in 1995 Greece - 93/1021, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 93/1017, no measures notified, reasoned opinion in 1994, terminated in 1995 Luxembourg Netheriands - - 93/1070, no measures notified, Art. 169 letter in 1993, terminated in 1995 93/1060, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 93/1082, no measures notified, Art. 169 letter in 1993, terminated in 1995 329 United Kingdom - 93/1093, no measures notified, reasoned opinion in 1994, terminated in 1995 93/0052 Embryos of domestic bovine animals Member States which have notified implementing measures: B, DK, D, E, F, IRL, L, NL, P, S, A, FIN. Belgium - 94/0026, no measures notified, reasoned opinion in 1994 Germany (to be terminated in 1996) - 94/0088, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece France - 94/0108, no measures notified, reasoned opinion in 1994 - 94/0187, no measures notified, reasoned opinion in 1994, terminated in 1995 Ireland - 94/0222, no measures notified, reasoned opinion in 1994, terminated in 1995 Italy - 94/0255, no measures notified, referral in 1995, Case Luxembourg C-95/315 - 94/0289, no measures notified, reasoned opinion in 1994, Netheriands terminated in 1995 - 94/0322, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0354, no measures notified, Art. 169 letter in 1994, terminated in 1995 United Kingdom - 94/0386, no measures notified, reasoned opinion in 1994 93/0053 Control of certain fish diseases Member States which have notified implementing measures: B, DK, D, E, L, UK, A, S. Belgium - 94/0786, no measures notified, Art. 169 letter in 1995 (to Germany be terminated in 1996) - 94/0813, no measures notified, Art. 169 letter in 1995, terminated in 1995 Greece France - 94/0985, no measures notified, Art. 169 letter in 1995 - 94/0840, no measures notified, Art. 169 letter in 1995 330 Ireland Italy Netheriands - 94/0859, no measures notified, Art. 169 letter in 1995 - 94/0880, no measures notified, Art. 169 letter in 1995 - 94/0915, no measures notified, Art. 169 letter in 1995 Portugal - 94/0937, no measures notified, Art. 169 letter in 1995 Luxembourg 94/0903, no measures notified, Art. 169 letter in 1995, terminated in 1995 - 93/0054 Animals and products of fish farming Member States which have notified implementing measures: B, DK, D, EL, E, F, L, NL, UK, A, S, FIN Belgium - 94/0787, no measures notified, Art. 169 letter in 1995 (to Denmark be terminated in 1996) - 94/0800, no measures notified, Art. 169 letter in 1995, terminated in 1995 Germany - 94/0814, no measures notified, Art. 169 letter in 1995, terminated in 1995 Greece - 94/0984, no measures notified, Art. 169 letter in 1995, terminated in 1995 France - 94/0841, no measures notified, Art. 169 letter in 1995, terminated in 1995 Ireland - 94/0860, no measures notified, Art. 169 letter to be sent in 1995 Italy - 94/0881, no measures notified, Art. 169 letter to be sent Netheriands in 1995 - 94/0916, no measures notified, Art. 169 letter to be sent in 1995, terminated in 1995 Portugal - 94/0938, no measures notified, Art. 169 letter to be sent in 1995 93/0055 Feedingstuffs - additives Member States which have notified implementing measures: B, D, DK, E, F, IRL, I, L, NL, P, UK, S,. A - 94/0640, Art. 169 letter in 1994, terminated in 1995 Denmark Greece Portugal - 94/0594, Art. 169 letter in 1994, terminated in 1995 - 94/0696, Art. 169 letter in 1994 331 93/0056 Feedingstuffs Member States which have notified implementing measures: all except FIN ;; - 94/0641, Art. 169 letter in 1994, terminated in 1995 Denmark - 94/0695, Art. 169 letter in 1994, terminated in 1995 Greece Italy - 94/0723, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0756, Art. 169 letter in 1994, terminated in 1995 93/0057 Pesticide residues - cereals and foodstuffs of animal origin Member States which have notified implementing measures: all except FIN Belgium - 94/0027, no measures notified, Art. 169 letter in 1994, terminated in 1995 Germany - 94/0089, no measures notified, reasoned opinion in i 1994, terminated in 1995 Greece - 94/0107, no measures notified, reasoned opinion in 1994, Spain terminated in 1995 - 94/0158, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 94/0188, no measures notified, reasoned opinion in 1994, terminated in 1995 Ireland - 94/0223, no measures notified, reasoned opinion in 1994, terminated in 1995 Italy - 94/0256, no measures notified, Art. 169 letter in 1994, Luxembourg terminated in 1995 - 94/0290, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 94/0355, no measures notified, Art. 169 letter in 1994, terminated in 1995 United Kingdom - 94/0387, no measures notified, Art. 169 letter in 1994, terminated in 1995 332 93/0058 Pesticide residues - products of plant origin Member States which have notified implementing measures: all except FIN Belgium - 94/0028, no measures notified, Art. 169 letter in 1994, terminated in 1995 Germany - 94/0090, no measures notified, reasoned opinion in 1994, terminated in 1995 * Greece - 94/0106, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 94/0189, no measures notified, Art. 169 letter in 1994, terminated in 1995 Ireland - 94/0224, no measures notified, Art. 169 letter in 1994, terminated in 1995 Luxembourg - 94/0291, no measures notified, reasoned opinion in 1994, terminated in 1995 United Kingdom - 94/0388, no measures notified, Art. 169 letter in 1994, terminated in 1995 93/0060 Fresh semen Member States which have notified implementing measures: B, D, DK, E, F, IRL, L, NL, S, A, FIN Belgium - 94/0788, no measures notified, Art. n69 letter in 1995, Denmark terminated in 1995 - 94/0801, no measures notified, Art. 169 letter in 1995, terminated in 1995 Greece France - 94/0983, no measures notified, Art. 169 letter in 1995 - 94/0842, no measures notified, Art. 169 letter in 1995, terminated in 1995 Italy Luxembourg - 94/0882, no measures notified, Art. 169 letter in 1995 - Netheriands 94/0904, no measures notified, Art. 169 letter in 1995, terminated in 1995 94/0917, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal - 94/0939, no measures notified, Art. 169 letter in 1995 United Kingdom - 94/0959, no measures notified, Art. 169 letter in - 1995 333 93/0061 Vegetable propagating and planting material Member States which have notified implementing measures: DK, EL, E, F, IRL, L, NL, UK, S. Belgium - 94/0029, no measures notified, reasoned opinion in 1994 - 94/0091, no measures notified, reasoned opinion in Germany 1994 Greece - 94/0103, no measures notified, reasoned opinion in 1994, Spain terminated in 1995 - 94/0160, no measures notified, reasoned opinion in 1994, terminated in 1995 France - 94/0190, no measures notified, referral in 1995, Case C-95/256, withdrawn in 1996 Ireland - 94/0225, no measures notified, Art. 169 letter in 1994, terminated in 1995 Italy - 94/0258, no measures notified, referral in 1995, Case •C-95/315 Luxembourg - 94/0292, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 94/0357, no measures notified, reasoned opinion in 1994 - 94/0389, no measures notified, reasoned opinion United Kingdom in 1995 (to be terminated in 1996) 93/0062 Vegetable propagating material Member States which have notified implementing measures: DK, EL, E, IRL, L, NL, UK, S. Belgium - 94/0628, no measures notified, reasoned opinion in 1995 - 94/0652, no measures notified, reasoned opinion in Germany 1995 Spain - 94/0665, no measures notified, Art. 169 letter in 1994, terminated in 1995 France Greece - 94/0679, no measures notified, Art. 169 letter in 1994 - 94/0693, no measures notified, Art. 169 letter in 1994, terminated in 1995 - 94/0724, no measures notified, Art. 169 letter in 1994 Italy Luxembourg - 94/0736, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0757, no measures notified, Art. 169 letter in 1994 334 United Kingdom - 94/0960, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) 93/0063 Ornamental plants Member States which have notified implementing measures: DK, EL, E, IRL, L, NL, UK Belgium - 94/0629, no measures notified, reasoned opinion in 1995 - 94/0653, no measures notified, reasoned opinion in Germany 1995 Spain - 94/0666, no measures notified, Art. 169 letter in 1994, terminated in 1995 France Greece - 94/0680, no measures notified, Art. 169 letter in 1994 - 94/0692, no measures notified, Art. 169 letter in 1994, terminated in 1995 - 94/0725, no measures notified, Art. 169 letter in 1994 Italy Luxembourg - 94/0737, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0758, no measures notified, Art. 169 letter in 1994 United Kingdom - 94/0961, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) 93/0064 Fruit plant propagating material Member States which have notified implementing measures: DK, EL, E, IRL, L, NL, UK, S. Belgium - 94/0630, no measures notified, reasoned opinion in 1995 - 94/0654, no measures notified, reasoned opinion in Germany 1995 Spain - 94/0667, no measures notified, Art. 169 letter in 1994, terminated in 1995 France Greece - 94/0681, no measures notified, Art. 169 letter in 1994 - 94/0691, no measures notified, Art. 169 letter in 1994, terminated in 1995 Ireland - 94/0714, no measures notified, Art. 169 letter in 1994, terminated in 1995 Italy - 94/0726, no measures notified, Art. 169 letter in 1994 Luxembourg - 94/0738, no measures notified, Art. 169 letter in Portugal - 94/0759, no measures notified, Art. 169 letter in 1994 1994, terminated in 1995 335 United Kingdom - 94/0962, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) 93/0070 Official control of feedingstuffs Member States which have notified implementing measures: B, D, DK, E, F, IRL, I, L, NL, P, A, S. Denmark - 94/0642, no measures notified, Art. 169 letter in 1994, terminated in 1995 Spain - 94/0668, no measures notified, Art. 169 letter in 1994, terminated in 1995 France - 94/0682, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece Ireland - 94/0694, no measures notified, Art. 169 letter in 1994 - 94/0715, no measures notified, Art. 169 letter in 1994, terminated in 1995 Italy - 94/0727, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0760, no measures notified, Art. 169 letter in 1994 (to be terminated in 1996) United Kingdom - 94/0773, no measures notified, reasoned opinion in 1995 93/0071 Plant protection products Member States which have notified implementing measures: B, DK, E, F, IRL, I, L, NL, P, UK, S. Belgium - 94/0790, no measures notified, Art. 169 letter in 1995, terminated in 1995 Germany Denmark - 94/0816, no measures notified, Art. 169 letter in 1995 - 94/0803, no measures notified, Art. 169 letter in 1995, terminated in 1995 France - 94/0816, no measures notified, Art. 169 letter in 1995, terminated in 1995 Greece Italy - 94/0980, no measures notified, Art. 169 letter in 1995 - 94/0884, no measures notified, Art. 169 letter in 1995, Luxembourg terminated in 1995 - Netheriands - 94/0906, no measures notified, Art. 169 letter in 1995, terminated in 1995 94/0919, no measures notified, Art. 169 letter in 1995, 336 terminated in 1995 Portugal - 94/0942, no measures notified, Art. 169 letter in 1995, terminated in 1995 United Kingdom - 94/0964, no measures notified, Art. 169 letter in 1995, terminated in 1995 93/0074 Feedingstuffs intended for special nutritional purposes Member States which have notified implementing measures: B, DK, D, L, NL, UK Belgium - 95/0395, no measures notified, Art. 169 letter in 1995 (to Germany be terminated in 1996) - 95/0433, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) - 95/0478, no measures notified, Art. 169 letter in 1995 Spain - 95/0501, no measures notified, Art. 169 letter in 1995 France - 95/0451, no measures notified, Art. 169 letter in 1995 Greece - 95/0523, no measures notified, Art. 169 letter in 1995 Ireland - 95/0543, no measures notified, Art. 169 letter in 1995 Italy Portugal - 95/0604, no measures notified, Art. 169 letter in 1995 93/0078 Ornamental plants Member States which have notified implementing measures: DK, EL, E, IRL, L, NL, UK Belgium - 94/0631, no measures notified, reasoned opinion in 1995 - 94/0655, no measures notified, reasoned opinion in Germany 1995 Spain - 94/0669, no measures notified, Art. 169 letter in 1994, terminated in 1995 France Greece - 94/0683, no measures notified, Art. 169 letter in 1994 - 94/0690, no measures notified, Art. 169 letter in 1994, terminated in 1995 Ireland - 94/0716, no measures notified, Art. 169 letter in 1994, terminated in 1995 - 94/0728, no measures notified, Art. 169 letter in 1994 Italy Luxembourg - 94/0739, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal 94/0761, no measures notified, Art. 169 letter in 1994 337 United Kingdom - 94/0967, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) 93/0079 Fruit plant propagating material Member States which have notified implementing measures: DK, EL, E, IRL, L, NL, UK Belgium - 94/0632, no measures notified, reasoned opinion in 1995 - 94/0656, no measures notified, reasoned opinion in Germany 1995 Spain - 94/0670, no measures notified, Art. 169 letter in 1994, terminated in 1995 France Greece - 94/0684, no measures notified, Art. 169 letter in 1994 - 94/0689, no measures notified, Art. 169 letter in 1994, terminated in 1995 - 94/0729, no measures notified, Art. 169 letter in 1994 Italy Luxembourg - 94/0740, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal -' 94/0762, no measures notified, Art. 169 letter in 1994 United Kingdom - 94/0968, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) 93/0085 Potato ring rot Member States which have notified implementing measures: B, DK, E, EL, F, IRL, L, NL, P, UK, S. Belgium - 94/0031, no measures notified, reasoned opinion in 1994 Germany terminated in 1995 - 94/0093, no measures notified, reasoned opinion in 1994 Greece - 94/0101, no measures notified, reasoned opinion in 1994 terminated in 1995 France - 94/0192, no measures notified, reasoned opinion in 1994, terminated in 1995 Italy - 94/0260, no measures notified, referral in 1995, Case C-95/315 Luxembourg - 94/0294, no measures notified, reasoned opinion in 1994, terminated in 1995 Portugal - 94/0359, no measures notified, reasoned opinion in 1994, terminated in 1995 338 93/0106 Particular plant health risks - protected zones Member States which have notified implementing measures: B, DK, D, E, F, IRL, I, NL, P, UK, S. Belgium - 94/0405, no measures notified, Art. 169 letter in 1994, terminated in 1995 Germany - 94/0419, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece France - 94/0423, no measures notified, reasoned opinion in 1995 - 94/0452, no measures notified, Art. 169 letter in 1994, Luxembourg terminated in 1995 - Netheriands - 94/0477, no measures notified, Art. 169 letter in 1994 94/0482, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0494, no measures notified, Art. 169 letter in 1994, terminated in 1995 United Kingdom - 94/0498, no measures notified, Art. 169 letter in 1994 (to be terminated in 1996) 93/0107 Feedingstuffs - additives Member States which have notified implementing measures: B, D, DK, E, F, IRL, I, L, NL, P, UK, A, S. Greece Spain - 95/0067, no measures notified, Art. 169 letter in 1995 - 95/0083, no measures notified, Art. 169 letter in 1995, Netheriands terminated in 1995 - 95/0158, no measures notified, Art. 169 letter in 1995, terminated in 1995 United Kingdom - 95/0202, no measures notified, Art. 169 letter in 1995, terminated in 1995 93/0110 Organisms harmful to plants and plant products Member States which have notified implementing measures: B, D, DK, E, F, IRL, I, L, NL, P, UK, A, S. Belgium - 94/0406, no measures notified, reasoned opinion in 1995, terminated in 1995 339 Germany - 94/0420, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece France - 94/0422, no measures notified, reasoned opinion in 1995 - 94/0453, no measures notified, Art. 169 letter in 1994, terminated in 1995 Luxembourg - 94/0478, no measures notified, Art. 169 letter in 1994, terminated in 1995 Netheriands - 94/0483, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0495, no measures notified, Art. 169 letter in 1994, terminated in 1995 United Kingdom - 94/0499, no measures notified, Art. 169 letter in 1994, terminated in 1995 93/0113 Enzymes and micro-organisms in animal nutrition Member States which have notified implementing measures: B, D, DK, E, IRL, L, NL, UK, S. Germany - 94/0818, no measures notified, Art. 169 letter in 1995, terminated in 1995 Greece France Ireland - 94/0977, no measures notified, Art. 169 letter in 1995 - 94/0849, no measures notified, Art. 169 letter in 1995 - 94/0865, no measures notified, Art. 169 letter in 1995, terminated in 1995 - 94/0889, no measures notified, Art. 169 letter in 1995 Italy Netheriands - 94/0922, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal - 94/0946, no measures notified, Art. 169 letter in 1995 United Kingdom - 94/0969, no measures notified, Art. 169 letter in 1995, terminated in 1995 93/0114 Feedingstuffs - additives Member States which have notified implementing measures: B, D, DK, E, IRL, L, NL, UK, S. Germany - 94/0819, no measures notified, Art. 169 letter in 1995, terminated in 1995 Greece - 94/0976, no measures notified, Art. 169 letter in 1995 340 France Ireland - 94/0850, no measures notified, Art. 169 letter in 1995 - 94/0866, no measures notified, Art. 169 letter in 1995, terminated in 1995 - 94/0890, no measures notified, Art. 169 letter in 1995 Italy Netheriands - 94/0923, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal - 94/0947, no measures notified, Art. 169 letter in 1995 United Kingdom - 94/0970, no measures notified, Art. 169 letter in 1995, terminated in 1995 93/0117 Official control of feedingstuffs Member States which have notified implementing measures: B, D, DK, E, F, IRL, I, L, NL, P, A. Greece Spain - 95/0068, no measures notified, Art. 169 letter in 1995 - 95/0084, no measures notified, Art. 169 letter in 1995, terminated in 1995 Italy - 95/0134, no measures notified, Art. 169 letter in 1995, terminated in 1995 Luxembourg - 95/0149, no measures notified, Art. 169 letter in Portugal - 95/0179, no measures notified, Art. 169 letter in 1995 1995 (to be terminated in 1996) (to be terminated in 1996) United Kingdom - 95/0203, no measures notified, Art. 169 letter in 1995 93/0118 Financing of veterinary health inspections Member States which have notified implementing measures: for provisions falling due on 31. 12. 1993: all except A, S, FIN for provisions falling due on 01. 01. 1995: DK, D, F, IRL, L, NL Belgium - 95/0025, no measures notified, Art. 169 letter in 1995 Germany - 95/0048, no measures notified, Art. 169 letter in 1995, terminated in 1995 Spain Greece Italy Ireland - 95/0085, no measures notified, Art. 169 letter in 1995 - 95/0069, no measures notified, Art. 169 letter in 1995 - 95/0135, no measures notified, Art. 169 letter in 1995 - 95/0116, no measures notified, Art. 169 letter in 1995, terminated in 1995 341 - Luxembourg 95/0150, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal - 95/0180, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0204, no measures notified, Art. 169 letter in 1995 93/0119 Protection of animals at the time of slaughter or killing Member States which have notified implementing measures: DK, E, IRL, L - 95/0257, no measures notified, Art. 169 letter in 1995 Germany Belgium - 95/0233, no measures notified, Art. 169 letter in 1995 - 95/0295, no measures notified, Art. 169 letter in 1995 France - 95/0271, no measures notified, Art. 169 letter in 1995 Greece - 95/0322, no measures notified, Art. 169 letter in 1995 Italy Netheriands 95/0352, no measures notified, Art. 169 letter in 1995 - Portugal - 95/0364, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0379, no measures notified, Art. 169 letter in 1995 93/0120 Poultry and hatching eggs - health conditions Member States which have notified implementing measures: DK, D, E, F, IRL, L, NL, UK, A, S. Belgium - 95/0234, no measures notified, Art. 169 letter in 1995 - 95/0272, no measures notified, Art. 169 letter in 1995 Greece - 95/0309, no measures notified, Art. 169 letter in 1995, Ireland terminated in 1995 Italy - 95/0323, no measures notified, Art. 169 letter in 1995 Portugal - 95/0365, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0380, no measures notified, Art. 169 letter in 1995, terminated in 1995 93/0121 Fresh poultrymeat - health conditions Member States which have notified implementing measures: B, DK, D, E, F, IRL, L, NL, P, UK, A. Belgium - 95/0235, no measures notified, Art. 169 letter in 1995, terminated in 1995 342 France - 95/0296, no measures notified, Art. 169 letter in 1995, terminated in 1995 - 95/0273, no measures notified, Art. 169 letter in 1995 Greece Italy - 95/0324, no measures notified, Art. 169 letter in 1995 Portugal - 95/0366, no measures notified, Art. 169 letter in 1995, terminated in 1995 United Kingdom - 95/0381, no measures notified, Art. 169 letter in 1995, terminated in 1995 94/0003 Interception of harmful organisms Member States which have notified implementing measures: B, DK, EL, E, F, IRL, NL, P, UK, S. Belgium - 94/0633, no measures notified, reasoned opinion in 1995, Germany terminated in 1995 - 94/0657 no measures notified, reasoned opinion in 1995 Denmark - 94/0643, no measures notified, Art. 169 letter in 1994, terminated in 1995 Spain - 94/0671, no measures notified, Art. 169 letter in 1994, * terminated in 1995 France - 94/0685, no measures notified, Art. 169 letter in 1994, terminated in 1995 Greece - 94/0688, no measures notified, Art. 169 letter in 1994, terminated in 1995 - 94/0730, no measures notified, Art. 169 letter in 1994 Italy Luxembourg Netheriands - - 94/0741, no measures notified, Art. 169 letter in 1994 94/0746, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0763, no measures notified, Art. 169 letter in 1994, terminated in 1995 United Kingdom - 94/0774, no measures notified, Art. 169 letter in 1994, terminated in 1995 94/0013 Organisms harmful to plants Member States which have notified implementing measures: B, DK, EL, E, F, IRL, L, NL, S. 343 Belgium - 95/0236, no measures notified, Art. 169 letter in 1995, terminated in 1995 Germany Denmark - 95/0258, no measures notified, Art. 169 letter in 1995 - 95/0248, no measures notified, Art. 169 letter in 1995, terminated in 1995 France - 95/0297, no measures notified, Art. 169 letter in 1995, terminated in 1995 Greece - 95/0274, no measures notified, Art. 169 letter in 1995, terminated in 1995 Italy Luxembourg - 95/0325, no measures notified, Art. 169 letter in 1995 - 95/0340, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal - 95/0367, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0382, no measures notified, Art. 169 letter in 1995 94/0014 Feedingstuffs - official control Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, I, L, NL, UK Luxembourg - 95/0571, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) Portugal - 95/0608, no measures notified, Art. 169 letter in 1995 94/0016 Feedingstuffs - undesirable substances and products Member States which have notified implementing measures: B, DK, D, EL, E, F, IRL, NL, P, UK, S. Italy Luxembourg - 95/0326, no measures notified, Art. 169 letter in 1995 - 95/0341, no measures notified, Art. 169 letter in Netheriands - 95/0353, no measures notified, Art. 169 letter in 1995 1995, terminated in 1995 Portugal - 95/0368, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) 344 94/0017 Feedingstuffs - additives Member States which have notified implementing measures: B, D, DK, E, F, IRL, I, L, NL, UK, S. Greece Ireland - 95/0072, no measures notified, Art. 169 letter in 1995 - 95/0120, no measures notified, Art. 169 letter in 1995, Netheriands terminated in 1995 - 95/0160, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal - 95/0184, no measures notified, Art. 169 letter in 1995 94/0028 Imports from third countries - zootechnical and genealogical conditions Member States which have notified implementing measures: E, I, NL, FIN - 95/0436, no measures notified, Art. 169 letter in 1995 - 95/0424, no measures notified, Art. 169 letter in 1995 Germany Belgium - 95/0402, no measures notified, Art. 169 letter in 1995 Denmark France Greece Ireland Luxembourg - 95/0505, no measures notified, Art. 169 letter in 1995 - 95/0457, no measures notified, Art. 169 letter in 1995 - 95/0527, no measures notified, Art. 169 letter in 1995 95/0573, no measures notified, Art. 169 letter in 1995 - Portugal - 95/0610, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0635, no measures notified, Art. 169 letter in 1995 94/0029 Pesticide residues - cereals and foodstuffs of animal origin Member States which have notified implementing measures: DK, D, EL, E, IRL, I, NL, UK, A, S. Belgium - 95/0403, no measures notified, Art. 169 letter in 1995 - 95/0506, no measures notified, Art. 169 letter in 1995 France. - 95/0549, no measures notified, Art. 169 letter in 1995 (to Italy be terminated in 1996) Luxembourg Netheriands - - 95/0574, no measures notified, Art. 169 letter in 1995 95/0592, no measures notified, Art. 169 letter in 1995, terminated in 1995 345 Portugal - 95/0611, no measures notified, Art. 169 letter in 1995 94/0030 Pesticide residues in or on products of plant origin Member States which have notified implementing measures: DK, D, EL, IRL, I, NL, UK, A, S. Belgium - 95/0404, no measures notified, Art. 169 letter in 1995 Spain France Italy - 95/0507, no measures notified, Art. 169 letter in 1995 - 95/0550, no measures notified, Art. 169 letter in 1995 (to - 95/0484, no measures notified, Art. 169 letter in 1995 be terminated in 1996) Luxembourg Netheriands - - 95/0575, no measures notified, Art. 169 letter in 1995 95/0593, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal - 95/0612, no measures notified, Art. 169 letter in 1995 94/0037 Plant protection products Member States which have notified implementing measures: B, DK, E, IRL, I, L, NL, UK, S. Germany Spain - 95/0437, no measures notified, Art. 169 letter in 1995 - 95/0485, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) France - 95/0509, no measures notified, Art. 169 letter in 1995 - 95/0459, no measures notified, Art. 169 letter in 1995 Greece Portugal - 95/0614, no measures notified, Art. 169 letter in 1995 94/0039 Intended uses of animal feedingstuffs for particular nutritional purposes Member States which have notified implementing measures: B, DK, L, NL, UK Germany - 95/0438, no measures notified, Art. 169 letter in 1995 Belgium - 95/0406, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) Spain France - 95/0486, no measures notified, Art. 169 letter in 1995 - 95/0510, no measures notified, Art. 169 letter in 1995 346 - 95/0460, no measures notified, Art. 169 letter in 1995 Greece - 95/0529, no measures notified, Art. 169 letter in 1995 Ireland Italy - 95/0552, no measures notified, Art. 169 letter in 1995 Portugal - 95/0615, no measures notified, Art. 169 letter in 1995 94/0040 Additives - guidelines for evaluation Member States which have notified implementing measures: B, DK, D, E, F, IRL, I, L, NL, UK. Spain - 94/0836, no measures notified, Art. 169 letter in 1995, terminated in 1995 France - 94/0853, no measures notified, Art. 169 letter in 1995, terminated in 1995 Greece Italy - 94/0973, no measures notified, Art. 169 letter in 1995 - 94/0893, no measures notified, Art. 169 letter in 1995, terminated in 1995 Ireland - 94/0869, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal - 94/0950, no measures notified, Art. 169 letter in 1995 Luxembourg 94/0997, no measures notified, Art. 169 letter in 1995, terminated in 1995 - 94/0972, no measures notified, Art. 169 letter in United Kingdom - 1995, terminated in 1995 94/0041 Feedingstuffs - additives Member States which have notified implementing measures: B, DK, E, F, IRL, I, L, NL, UK, A, S. Germany Spain - 95/0439, no measures notified, Art. 169 letter in 1995 - 95/0487, no measures notified, Art. 169 letter in 1995, terminated in 1995 Greece - 95/0461, no measures notified, Art. 169 letter in 1995 Portugal - 95/0616, no measures notified, Art. 169 letter in 1995 94/0042 Health problems - live animals Member States which have notified implementing measures: B, DK, D, E, F, NL, UK, A, S, FIN. 347 Germany - 95/0259, no measures notified, Art. 169 letter in 1995, terminated in 1995 Belgium - 95/0238, no measures notified, Art. 169 letter in 1995, terminated in 1995 France - 95/0298, no measures notified, Art. 169 letter in 1995, terminated in 1995 Greece Ireland Italy Luxembourg - 95/0276, no measures notified, Art. 169 letter in 1995 - 95/0311,^no measures notified, Art. 169 letter in 1995 - 95/0327, no measures notified, Art. 169 letter in 1995 - 95/0343, no measures notified, Art. 169 letter in 1995 Portugal - 95/0370, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0384, no measures notified, Art. 169 letter in 1995, terminated in 1995 94/0043 Plant protection products Member States which have notified implementing measures: DK, E, IRL, I, L, NL, UK, S. - 95/0440, no measures notified, Art. 169 letter in 1995 Germany Belgium - 95/0407, no measures notified, Art. 169 letter in 1995 Denmark - 95/0425, no measures notified, Art. 169 letter in 1995, terminated in 1995 Spain - 95/0488, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) - 95/0511, no measures notified, Art. 169 letter in 1995 France Greece - 95/0462, no measures notified, Art. 169 letter in 1995 Portugal - 95/0617, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0637, no measures notified, Art. 169 letter in 1995, terminated in 1995 94/0059 Imports from third countries - examination for trichinae Member States which have notified implementing measures: B, DK, L, NL, P, A, FIN Germany Belgium - 95/0031, no measures notified, Art. 169 letter in 1995, - 95/0052, no measures notified, Art. 169 letter in 1995 terminated in 1995 Denmark - 95/0039, no measures notified, Art. 169 letter in 1995, terminated in 1995 348 Spain France Greece Ireland Italy Luxembourg - 95/0090, no measures notified, Art. 169 letter in 1995 - 95/0108, no measures notified, Art. 169 letter in 1995 - 95/0075, no measures notified, Art. 169 letter in 1995 - 95/0124, no measures notified, Art. 169 letter in 1995 - 95/0141, no measures notified, Art. 169 letter in 1995 - 95/0154, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal - 95/0188, no measures notified, Art. 169 letter in 1995, terminated in 1995 United Kingdom - 95/0210, no measures notified, Art. 169 letter in 1995 94/0071 Raw milk, heat-treated milk and milk-based products Member States which have notified implementing measures: DK, D, L, NL, P, UK, S. Belgium - 95/0411, no measures notified, Art. 169 letter in 1995 Denmark - 95/0427, no measures notified, Art. 169 letter in 1995, terminated in 1995 - 95/0492, no measures notified, Art. 169 letter in 1995 Spain France Greece Ireland Italy United Kingdom 95/0640, no measures notified, Art. 169 letter in - 95/0514, no measures notified, Art. 169 letter in 1995 - 95/0467, no measures notified, Art. 169 letter in 1995 - 95/0533, no measures notified, Art. 169 letter in 1995 - 95/0557, no measures notified, Art. 169 letter in 1995 1995 (to be terminated in 1996) 95/0004 Organisms harmful to plants Member States which have notified implementing measures: B, DK, E, F, IRL, L, NL, P, UK, A, S. Germany Belgium - 95/0244, no measures notified, Art. 169 letter in 1995, - 95/0264, no measures notified, Art. 169 letter in 1995 terminated in 1995 Greece France - 95/0282, no measures notified, Art. 169 letter in 1995 - 95/0302, no measures notified, Art. 169 letter in 1995, terminated in 1995 Italy - 95/0333, no measures notified, Art. 169 letter in 1995 Portugal - 95/0376, no measures notified, Art. 169 letter in 1995, terminated in 1995 349 United Kingdom - 95/0390, no measures notified, Art. 169 letter in 1995, terminated in 1995 95/0006 Cereal seed Member States which have notified implementing measures: B, DK, E, F, IRL, NL, UK, A. Germany Belgium - 95/0414, no measures notified, Art. 169 letter in 1995, - 95/0443, no measures notified, Art. 169 letter in 1995 terminated in 1995 Greece Italy Luxembourg Netheriands - 95/0469, no measures notified, Art. 169 letter in 1995 - 95/0560, no measures notified, Art. 169 letter in 1995 - - 95/0581, no measures notified, Art. 169 letter in 1995 95/0598, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) Portugal - 95/0624, no measures notified, Art. 169 letter in 1995, 95/0009 Feedingstuffs intended for particular nutritional purposes Member States which have notified implementing measures: B, DK, NL, UK Germany - 95/0444, no measures notified, Art. 169 letter in 1995 Belgium - 95/0415, no measures notified, Art. 169 letter in 1995 (to Spain France Greece Ireland Italy Luxembourg Netheriands be terminated in 1996) - 95/0494, no measures notified, Art. 169 letter in 1995 - 95/0517, no measures notified, Art. 169 letter in 1995 - 95/0470, no measures notified, Art. 169 letter in 1995 - 95/0535, no measures notified, Art. 169 letter in 1995 - 95/0561, no measures notified, Art. 169 letter in 1995 - - 95/0582, no measures notified, Art. 169 letter in 1995 95/0599, no measures notified, Art. 169 letter in 1995, terminated in 1995 Portugal - 95/0625, no measures notified, Art. 169 letter in 1995 95/0010 Calculating the energy value of certain dog and cat food Member States which have notified implementing measures: DK, NL, UK 350 - 95/0445, no measures notified, Art. 169 letter in 1995 - 95/0495, no measures notified, Art. 169 letter in 1995 Germany Belgium - 95/0416, no measures notified, Art. 169 letter in 1995 Spain France Greece Ireland Italy Luxembourg - 95/0518, no measures notified, Art. 169 letter in 1995 - 95/0471, no measures notified, Art. 169 letter in 1995 - 95/0536, no measures notified, Art. 169 letter in 1995 - 95/0562, no measures notified, Art. 169 letter in 1995 - 95/0583, no measures notified, Art. 169 letter in 1995 95/0600, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) Netheriands - Portugal - 95/0626, no measures notified, Art. 169 letter in 1995 95/0011 Feedingstuffs - assessment of additives Member States which have notified implementing measures: B, DK, D, E, NL, UK -. France -. Greece -. Ireland Italy -. Luxembourg ,. , no measures notified, Art. 169 letter to be sent in 1996. , no measures notified, Art. 169 letter to be sent in 1996. , no measures notified, Art. 169 letter to be sent in 1996. , no measures notified, Art. 169 letter to be sent in 1996. , no measures notified, Art. 169 letter to be sent in 1996 Portugal -. , no measures notified, Art. 169 letter to be sent in 1996 95/0023 Fresh meat - production conditions Member States which have notified implementing measures: no Germany -. , no measures notified, 1996 Belgium - Denmark Spain. , no measures notified, Art. , no measures notified, - 1996. , no measures notified, 1996 - Art. 169 letter to be sent in 169 letter to be sent in 1996 Art. 169 letter to be sent in Art. 169 letter to be sent in France Greece Ireland Italy - - - -. , no measures notified, Art. , no measures notified, Art. , no measures notified, Art. , no measures notified, Art. 169 letter to be sent in 1996 169 letter to be sent in 1996 169 letter to be sent in 1996 169 letter to be sent in 1996 351 Luxembourg Netheriands. , no measures notified, Art. 169 letter to be sent in 1996. , no measures notified, Art. 169 letter to be sent in 1996 Portugal - United Kingdom. , no measures notified, Art. 169 letter to be sent in 1996. , no measures notified, Art. 169 letter to be sent in 1996 - 95/0025 Health conditions - live animals Member States which have notified implementing measures: D, A, FIN Belgium - Denmark. , no measures notified, Art. 169 letter to be sent in 1996 no measures notified, Art. 169 letter to be sent in - Spain 1996. , no measures notified, Art. 169 letter to be sent in 1996 -. France -. Greece -. Ireland Italy -. Luxembourg Netheriands. , no measures notified, Art. 169 letter to be sent in 1996. , no measures notified, Art. 169 letter to be sent in 1996. , no measures notified, Art. 169 letter to be sent in 1996. , no measures notified, Art. 169 letter to be sent in 1996. , no measures notified, Art. 169 letter to be sent in 1996. , no measures notified, Art. 169 letter to be sent in 1996 Portugal - United Kingdom. , no measures notified, Art. 169 letter to be sent in 1996. , no measures notified, Art. 169 letter to be sent in 1996 95/0040 Organisms harmful to plants - protected zones Member States which have notified implementing measures: DK, E, IRL, NL, UK, S. - 95/0446, no measures notified, Art. 169 letter in 1995 Germany Belgium - 95/0416, no measures notified, Art. 169 letter in 1995 Denmark - 95/0429, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) Spain - 95/0496, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) France Greece - 95/0519, no measures notified, Art. 169 letter in 1995 - 95/0472, no measures notified, Art. 169 letter in 1995 352 Ireland - 95/0537, no measures notified, Art. 169 letter in 1995, terminated in 1995 - 95/0563, no measures notified, Art. 169 letter in 1995 Italy Luxembourg - 95/0584, no measures notified, Art. 169 letter in 1995 Portugal - 95/0627, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0643, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) 95/0041 Organisms harmful to plants Member States which have notified implementing measures: DK, E, IRL, NL, UK, S. - 95/0447, no measures notified, Art. 169 letter in 1995 Germany Belgium - 95/0418, no measures notified, Art. 169 letter in 1995 Denmark - 95/0430, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) Spain - 95/0497, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) France Greece Ireland - 95/0520, no measures notified, Art. 169 letter in 1995 - 95/0473, no measures notified, Art. 169 letter in 1995 - 95/0538, no measures notified, Art. 169 letter in 1995, terminated in 1995 Italy Luxembourg - 95/0564, no measures notified, Art. 169 letter in 1995 - 95/0585, no measures notified, Art. 169 letter in 1995 Portugal - 95/0628, no measures notified, Art. 169 letter in 1995 United Kingdom - 95/0644, no measures notified, Art. 169 letter in 1995 (to be terminated in 1996) 353 6. ENVIRONMENT 67/0548 Labelling of dangerous substances Member States which have notified implementing measures: all 69/0081 Labelling of dangerous substances Member States which have notified implementing measures: all 70/0157 Sound level of motor vehicles Member States which have notified implementing measures: all 70/0189 Labelling of dangerous substances Member States which have notified implementing measures: all 72/0306 Emission of pollutants from diesel engines Member States which have notified implementing measures: all 73/0146 Labelling of dangerous substances Member States which have notified implementing measures: all 75/0409 Labelling of dangerous substances Member States which have notified implementing measures: all 75/0439 Disposal of waste oils Member States which have notified implementing measures: all Italy - 86/0419, not properly applied, judgment in 1993, Case C-89/366 354 75/0440 Surface water Member States which have notified implementing measures: all Belgium - 87/0345, not properly implemented, reasoned opinion (171) Germany to be sent in 1996 - 87/0372, not properly implemented, reasoned opinion (171) in 1995 Italy France - 89/0206, not properly implemented, referral to be sent in 1996 - 92/4200, not properly applied, reasoned opinion to be sent in 1996 United Kingdom opinion - 89/4571, not properly implemented, reasoned to be sent in 1996 Portugal - 92/2300, not properly applied, reasoned opinion in 1995 Italy - 89/0206, not properly implemented, referral to be sent in 1995 75/0442 Waste Member States which have notified implementing measures: all Spain Greece Ireland - 90/0959, not properly applied, terminated in 1995 - 89/0138, not properly applied, judgment 7. 04. 92 - Case C-91/045, Art. 171 letter in 1995 - 91/0704, not properly implemented, reasoned opinion in 1993 Italy Italy - 88/0239, not properly applied, judgment in 1991 - Case C-90/033, Art. 171 letter in 1995 - 90/0262, not properly applied, reasoned opinion to be sent in 1996 Greece - 92/4682, not properly applied, reasoned opinion to be sent in 1996 Greece - 92/5154, not properly applied, reasoned opinion to be se nt in 1996 75/0716 Sulphur content of liquid fuel Member States which have notified implementing measures: all 355 76/0160 Bathing water Member States which have notified implementing measures: all except FIN, S Germany - 89/0317, not properly applied, reasoned opinion in 1994 Spain - 89/0418, not properly applied, referral to be sent in 1996 Italy - 87/0356, not properly implemented, referral to be sent in 1996 United Kingdom - 86/0214, not properly applied, judgment in 1993 - Case C-90/056 Belgium - 89/0416, not properly applied, reasoned opinion to be sent in 1996 76/0403 Disposal of PCBs Member States which have notified implementing measures: all 76/0464 Dangerous substances in the sea Member States which have notified implementing measures: all Germany - 89/2343,not properly applied, reasoned opinion in 1994 Greece - 89/0303, not properly applied, referral in 1995, Case C-95/232 France Italy Italy Luxembourg - 91/0206, not properly applied, reasoned opinion in 1993 - 90/0416, not properly applied, terminated in 1995 - 91/0642, not properly applied, reasoned opinion in 1993 91 /0207, not properly applied, reasoned opinion in 1993 - Portugal - 91/0556, not properly applied, reasoned opinion in 1993 - 90/0960, not properly applied, reasoned opinion in Spain 1994. Spain - 90/2190, not properly applied, reasoned opinion in 1995 Netheriands - 90/4113, not properly applied, reasoned opinio n to be sent in 1996 Greece - 91/0620, not properly applied, referral in 1995, Case C-95/233 356 Belgium - 93/4331, not properly applied, reasoned opinion to be sent Spain in 1996 - 94/4548, not properly applied, reasoned opinion to be sent in 1996 76/0907 Labelling of dangerous substances Member States which have notified implementing measures: all 78/0176 Waste - titanium dioxide Member States which have notified implementing measures: all Portugal - 90/0929, no measures notified, terminated in 1995 78/0319 Toxic and dangerous waste Member States which have notified implementing measures: all Germany - 90/0038, not properly applied, referral in 1992, Case C-92/422, judgment in 1994 Spain Ireland - 89/0337, not properly applied, terminated in 1995 - 90/0192, not properly applied, terminated in 1995 78/0659 Quality of fresh waters Member States which have notified implementing measures: all Germany - 90/2203, not properly applied, referral in 1995, Case C-95/298 Italy - 90/0211, not properly implemented, referral in 1993, Case C-93/291, judgment in 1994 Belgium - 90/2202, not properly applied, reasoned opinion to be sent in 1996 France - 91/4338, not properly applied, reasoned opinion to be sent in 1996 357 78/1015 Sound level of motorcycles Member States which have notified implementing measures: all 79/0113 Noise emissions from construction plant Member States which have notified implementing measures: all 79/0370 Labelling of dangerous substances Member States which have notified implementing measures: all 79/0409 Conservation of wild birds Member States which have notified implementing measures: all except FIN Germany Germany Belgium - 90/0291, not properly implemented, reasoned opinion in 1993, !! reasoned opinion to be sent in 1996 - 87/0246, not properly applied, terminated in 1995 - 86/0222, not properly implemented, judgment in 1990 - Case C-88/288, Art. 171 letter in 1994 - 88/0295, not properly applied, judgment in 1993 - Case C-90/355, Art. 171 letter to be sent in 1996 - 84/0121, not properly implemented, - Case C-90/355, suppl. Art. 171 reasoned opinion France Spain judgment in 1993, to be sent in 1996 Italy Italy France - 87/0327, not properly applied, reasoned opinion in 1989 - 91/0795, not properly applied, terminated in 1995 - 89/4910, not properly applied, reasoned opinion to be sent in 1996 France Spain - 91/0640, not properly applied, reasoned opinion in 1994 - 91/4380, not properly applied, reasoned opinion to be sent in 1996 France France - 91/4599, not properly applied, reasoned opinion in 1995 - 92/4252, not properly applied, reasoned opinion to be sent in 1996 France - 92/4527, not properly applied, reasoned opinion to be sent Germany in 1996 - 92/4575, not properly applied, reasoned opinion to be sent in 1996 358 79/0831 Labelling of dangerous substances Member States which have notified implementing measures: all 79/0869 Surface water Member States which have notified implementing measures: all except S Portugal - 93/2035, not properly implemented, reasoned opinion to be sent in 1996 79/0923 Shellfish waters Member States which have notified implementing measures: all except FIN, S Italy - 91/0743, not properly applied, reasoned opinion in 1993, referral scheduled for 1996 80/0051 Noise emissions from aircraft Member States which have notified implementing measures: all Germany 93/4719, not properly applied, reasoned opinion to - be sent in 1996 80/0068 Protection of groundwater Member States which have notified implementing measures: all except S Germany France Ireland 86/0121, not properly implemented, Case - C-131/88, suppl. Art. 171 reasoned opinion in 1995 - 90/0352, not properly implemented, referral scheduled for 1996 - 89/0163, not properly implemented, suppl. Art. 169 letter in 1993 United Kingdom - 88/0354, not properly applied, reasoned opinion in 1989 Portugal - 93/2112, not properly implemented, reasoned opinion to be sent in 1996 359 80/0778 Labelling of dangerous substances Member States which have notified implementing measures: all Germany Germany France Italy - 89/0650, not properly applied, terminated in 1995 - 90/4085, not properly applied, terminated in 1995 - 91 /2316, not properly applied, referral scheduled for 1996 - 87/0363, not properly implemented, reasoned opinion in 1988 Netheriands United Kingdom United Kingdom - 91/0214, not properly implemented, reasoned opinion in 1993 - 87/0370, not properly applied, judgment in 1992 - Case C-89/337 - 91/0772, not properly applied, reasoned opinion in 1993 80/0779 Air quality (addressed to Greece) Member States which have notified implementing measures: all except A, FIN Portugal - 93/2113, not properly applied, reasoned opinion to be sent in 1996 80/0836 Health protection - ionizing radiation Member States which have notified implementing measures: all Italy Luxembourg Netheriands - 87/0225, no measures notified, terminated in 1995 - - 88/0487, not properly opinion in 1991 88/0488, not properly opinion in 1990 implemented, reasoned implemented, reasoned 80/1189 Labelling of dangerous substances Member States which have notified implementing measures: all 360 81/0854 Conservation of wild birds Member States which have notified implementing measures: all 81/0855 Surface water (addressee: Greece) Member States which have notified implementing measures: EL 81/0857 Air quality (addressed to Greece) (addressee: Greece) Member States which have notified implementing measures: EL 81/0858 Labelling of dangerous substances Member States which have notified implementing measures: all 81/0957 Labelling of dangerous substances Member States which have notified implementing measures: all 81/1051 Acquired rights - doctors, nurses, dentists and veterinary surgeons Member States which have notified implementing measures: all 82/0176 Mercury discharges Member States which have notified implementing measures: all 82/0232 Labelling of dangerous substances Member States which have notified implementing measures: all 82/0501 Major-accident hazards Member States which have notified implementing measures: all 361 Germany - 87/0219, not properly opinion to be sent in 1996 implemented, !! reasoned Italy - 91/2065, not properly applied, reasoned opinion to be sent in 1996 82/0883 Titanium dioxide waste Member States which have notified implementing measures: all 82/0884 Lead in the air Member States which have notified implementing measures: all except A, FIN 83/0029 Waste - titanium dioxide Member States which have notified implementing measures: all 83/0129 Seal-pup skins Member States which have notified implementing measures: all except A, FIN 83/0206 Noise emissions from aircraft Member States which have notified implementing measures: all 83/0467 Labelling of dangerous substances Member States which have notified implementing measures: all 83/0513 Cadmium discharges Member States which have notified implementing measures: all 362 84/0156 Mercury discharges Member States which have notified implementing measures: all Portugal - 92/2303, not properly applied, reasoned opinion in 1995 84/0360 Air pollution from industrial plants Member States which have notified implementing measures: all 84/0449 Labelling of dangerous substances Member States which have notified implementing measures: all 84/0466 Radiation protection - patients Member States which have notified implementing measures: all Belgium - 90/0237, not properly implemented, reasoned opinion in 1992 Ireland - 90/0239, not properly implemented, reasoned opinion in 1993 Italy - 90/0240, not properly implemented, judgment in 1993, Case C-92/95, Art. 171 letter in 1994 Portugal - 90/0242, not properly implemented, reasoned opinion i n Spain - 91/0723, not properly implemented, reasoned opinion in 1993 1993 84/0467 Health protection - ionizing radiation Member States which have notified implementing measures: all Italy - 87/0233, no measures notified, terminated in 1995 84/0491 HCH discharges Member States which have notified implementing measures: all 363 84/0532 Construction plant Member States which have notified implementing measures: all 84/0533 Sound power level of compressors Member States which have notified implementing measures: all 84/0534 Sound power level of tower cranes Member States which have notified implementing measures: all 84/0535 Sound power level of welding generators Member States which have notified implementing measures: all 84/0536 Sound power level of power generators Member States which have notified implementing measures: all 84/0537 Sound power level of hand-held concrete-breakers Member States which have notified implementing measures: all 84/0538 Sound power level of lawnmowers Member States which have notified implementing measures: all 84/0631 Transfrontier shipment of hazardous waste Member States which have notified implementing measures: all 85/0203 Air quality - nitrogen dioxide Member States which have notified implementing measures: all except A, FIN 364 Belgium - 88/0023, not properly implemented, judgment in 1993, Case C-91/186, terminated in 1995 United Kingdom - 89/5110, not properly implemented, reasoned opinion in 1993 85/0210 Lead content of petrol Member States which have notified implementing measures: all 85/0337 Assessment of projects on the environment Member States which have notified implementing measures: all Belgium - 89/0652, not properly implemented referral in 1994, Case C-94/133 Germany - 90/0189, not properly applied, referral in 1992 Germany Case C-92/431, judgment in 1995, terminated in 1995 - 90/4710, not properly implemented, referral in 1995, Case C-95/301 Spain - 90/0129, not properly implemented, reasoned opinion in 1992 Italy - 91/0794, not properly implemented, reasoned opinion in 1993 Ireland - 89/0425, not properly implemented, reasoned opinion in 1993 - Luxembourg 90/0126, no measures notified, referral in 1993, Case C-93/313, judgment in 1994, terminated in 1995 United Kingdom - 91/2200, not properly implemented,terminated in 1995 Greece - 91/2036, not properly implemented, reasoned opinion to be sent in 1996 Portugal - 91/2168, not properly implemented, reasoned opinion to be sent in 1996 85/0339 Containers for liquids for human consumption Member States which have notified implementing measures: all. Belgium - 87/0330, not properly applied, judgment in 1991, Case C-89/330, terminated in 1995 Spain - 87/0337, not properly applied, judgment in 1991 365 Case C-90/192, terminated in 1995 France - 87/0332, not properly applied, judgment in 1994, Luxembourg Case C-93/255, terminated in 1995 - Case C-89/252, terminated in 1995 87/0334, not properly applied, judgment in 1991, 85/0405 Noise emissions from construction plant Member States which have notified implementing measures: all 85/0406 Sound power level of compressors Member States which have notified implementing measures: all 85/0407 Sound power level of welding generators Member States which have notified implementing measures: all 85/0408 Sound power level of power generators Member States which have notified implementing measures: all 85/0409 Sound power level of hand-held concrete-breakers Member States which have notified implementing measures: all 85/0411 Conservation of wild birds Member States which have notified implementing measures: all except FIN Netheriands - 87/0176, not properly applied, referral scheduled for 1996 85/0444 Seal-pup skins Member States which have notified implementing measures: all except A, FIN 366 85/0467 Dangerous substances and preparations Member States which have notified implementing measures: all 85/0469 Transfrontier shipment of hazardous waste Member States which have notified implementing measures: all 85/0580 Air quality - nitrogen dioxide Member States which have notified implementing measures: all 85/0581 Lead content of petrol Member States which have notified implementing measures: all 86/0121 Transfrontier shipment of hazardous waste Member States which have notified implementing measures: all 86/0122 Conservation of wild birds Member States which have notified implementing measures: all 86/0278 Sewage sludge used in agriculture Member States which have notified implementing measures: A, DK, D, E, EL, F, FIN, IRL, T, L, NL, P, S, UK Belgium - 90/0230, no measures notified, Case C-93/260, judgment in 1994, suppl. Art. 171 letter to be sent in 1996 - 92/2226, not properly implemented, reasoned opinion to be sent in 1996 France 86/0279 Transfrontier shipment of hazardous waste Member States which have notified implementing measures: all 367 86/0280 Dangerous substances in the sea Member States which have notified implementing measures: all Germany - 89/0427, not properly implemented,referral in 1995, Case C-95/262 Ireland - 91/2216, not properly implemented, suppl. Art. 169 letter to be sent in 1996 Portugal - 92/2358, not properly implemented, reasoned opinion to be sent in 1996 86/0295 Construction plant Member States which have notified implementing measures: all 86/0296 Construction plant Member States which have notified implementing measures: all 86/0431 Labelling of dangerous substances Member States which have notified implementing measures: all 86/0594 Noise from household appliances Member States which have notified implementing measures: all except A 86/0609 Protection of animals Member States which have notified implementing measures: all except S Luxembourg - 90/0730, no measures notified, referral in 1993, Case C-93/274 Portugal Belgium - 92/2359, not properly implemented, reasoned opinion to be sent in 1996 - 93/2218, not properly implemented, reasoned opinion to be sent in 1996 368 86/0662 Noise emissions from hydraulic excavators Member States which have notified implementing measures: all 87/0018 Good laboratory practice Member States which have notified implementing measures: all. 87/0101 Disposal of waste oils Member States which have notified implementing measures: all 87/0112 Transfrontier shipment of hazardous waste Member States which have notified implementing measures: all 87/0216 Major-accident hazards Member States which have notified implementing measures: all 87/0217 Pollution by asbestos Member States which have notified implementing measures: A, B, DK, D, EL, E, F, FIN, IRL, I, L, NL, P, S, UK Italy United Kingdom - 90/0065, no measures notified, terminated in 1995 - 91/2163, not properly applied, reasoned opinion in 1995 Portugal - 91/2218, not properly implemented, reasoned opinion to be sent in 1996 87/0219 Sulphur content of liquid fuel Member States which have notified implementing measures: all 369 87/0252 Sound power level of lawnmowers Member States which have notified implementing measures: all 87/0405 Sound power level of tower cranes Member States which have notified implementing measures: all. 87/0416 Lead content of petrol Member States which have notified implementing measures: all 87/0432 Labelling of dangerous substances Member States which have notified implementing measures: all 88/0180 Sound power level of lawnmowers Member States which have notified implementing measures: all 88/0181 Sound power level of lawnmowers Member States which have notified implementing measures: all 88/0302 Labelling of dangerous substances Member States which have notified implementing measures: all 88/0347 Dangerous substances in the sea Member States which have notified implementing measures: all 88/0490 Labelling of dangerous substances Member States which have notified implementing measures: all 370 88/0609 Emissions from large combustion plants Member States which have notified implementing measures: all Portugal - 91/2220, not properly implemented, reasoned opinion to be sent in 1996 88/0610 Major-accident hazards Member States which have notified implementing measures: all 89/0369 Incineration of municipal waste Member States which have notified implementing measures: A, B, DK, D, EL, E, F, FIN, IRL, L, NL, P, S, UK Italy - 91/0417, no measures notified, referral in 1995, Case C-95/237 Portugal - 91/2173, not properly implemented, reasoned opinion to be sent in 1996 89/0370 Seal-pup skins Member States which have notified implementing measures: all except A, FIN 89/0427 Sulphur dioxide in the air Member States which have notified implementing measures: all except A, FIN Italy -' 91/0678, no measures notified, terminated in 1995 89/0429 Incineration of municipal waste Member States which have notified implementing measures: A, B, DK, D, E, F, FIN, IRL, L, NL, P, S, UK 371 Italy - 91/0418, no measures notified, referral in 1995, Case C- 95/237 89/0514 Noise emissions from hydraulic excavators Member States which have notified implementing measures: all 89/0618 Health protection - radiological emergency Member States which have notified implementing measures: A, B, DK, D, EL, E, F, IRL, I, N, P, S, UK. Italy - 92/0334, no measures notified, terminated in 1995 Portugal - 92/0509, no measures notified, terminated in 1995 Luxembourg 93/0611, no measures notified, referral scheduled for 1995, Case C-46/95 - 89/0629 Noise emissions from aeroplanes Member States which have notified implementing measures: all Italy - 91/0082, no measures notified, terminated in 1995 90/0219 Genetically modified organisms Member States which have notified implementing measures: A, B, DK, D, E, F, FIN, I, IRL, NL, P, S, UK Greece - 92/0264, no measures notified, referral in 1994, Case C-94/170, judgment in 1995 Spain Luxembourg - 92/0163, no measures notified, terminated in 1995 92/0395, no measures notified, referral in 1995, - Case C-95/312 - 91/2336, not properly opinion to be sent in 1995 implemented, reasoned - 93/2120, not properly implemented, reasoned opinion to be sent in 1996 - 91/2179, not properly implemented, reasoned opinion to be sent in 1996 372 Germany Belgium Portugal 90/0220 Genetically modified organisms Member States which have notified implementing measures: A, B, DK, D, E, F, FIN, I, IRL, NL, P, S, UK. Greece - 92/0263, no measures notified, referral in 1994, Case C-94/170, judgment in 1995 Spain Luxembourg - 92/0164, no measures notified, terminated in 1995 92/0396, no measures notified, referral in 1995, - Case C-95/312 Portugal Germany Belgium - 93/2179, not properly implemented, reasoned opinion to be sent in 1996 - 91/2336, not properly opinion to be sent in 1996 implemented, reasoned - 93/2120, not properly implemented, reasoned opinion to be sent in 1996 90/0313 Freedom of access to information on the environment Member States which have notified implementing measures: A, B, DK, D, E, EL, F, FIN, I, IRL, L, NL, P, S, UK Germany Greece Italy France - - 93/0111, no measures notified, terminated in 1995 93/0158, no measures notified, terminated in 1995 - 93/0316, no measures notified, terminated in 1995 - 93/2058, not properly implemented, reasoned opinion to be sent in 1996 Germany - 94/2196, not properly opinion to be sent in 1996 implemented, reasoned 90/0415 Dangerous substances in the sea Member States which have notified implementing measures: all Germany Greece Ireland Portugal - 92/0118, no measures notified, terminated in 1995 - 92/0260, no measures notified, terminated in 1995 - 92/0300, no measures notified, terminated in 1995 - 92/0498, no measures notified, terminated in 1995 373 90/0517 Labelling of dangerous substances Member States which have notified implementing measures: A, DK, D, EL, E, F, FIN, IRL, I, L, NL, S, UK Belgium - 92/0051, no measures notified, reasoned opinion in 1994 Portugal - 92/0491, no measures notified, reasoned opinion in 1994 90/0641 Radiation protection - outside workers Member States which have notified implementing measures: A, DK, D, F, FIN IRL, I, L, N, S, UK - 94/0130, no measures notified, Art. 169 letter in 1994 - 94/0131, no measures notified, reasoned opinion in 1995 Belgium - 94/0004, no measures notified, reasoned opinion in 1995 Greece Spain Italy - 94/0231, no measures notified, terminated in 1995 Luxembourg Portugal - 94/0332, no measures notified, Art. 169 letter in 1994 94/0264, no measures notified, terminated in 1995 - 90/0656 Transitional measures - protection of the environment (addressed to Germany) Member States which have notified implementing measures: D 90/0660 Transitional measures - protection of the environment (addressed to Germany) Member States which have notified implementing measures: D 91/0156 Waste Member States which have notified implementing measures: A, B, D, DK, FIN, I, L, NL, P, S, UK Germany Greece - 93/0668, no measures notified, terminated in 1995 - 93/0719, no measures notified, referral in 1995, Case C-95/160 Spain - 93/0720, no measures notified, referral scheduled for 1996 374 France - 93/0737, no measures notified, reasoned opinion in 1995 Ireland - 93/0762, no measures notified, reasoned opinion in 1994 - 93/0785, no measures notified, terminated in 1995 93/0811, no measures notified, terminated in 1995 - 93/0872, no measures notified, terminated in 1995 Italy Luxembourg - United Kingdom 91/0157 Batteries containing dangerous substances Member States which have notified implementing measures: A, DK, EL, FIN, IRL, L, NL, P, S, UK Belgium - 92/1005, no measures notified, reasoned opinion to be sent in 1996 Germany - 92/1006, no measures notified, reasoned opinion in 1994 Greece Spain - 92/1007, no measures notified, terminated in 1995 - 92/1008, no measures notified, referral scheduled for 1996 France Italy - 92/1009, no measures notified, referral scheduled for 1996 - 92/1011, no measures notified, referral in 1995, Case Portugal United Kingdom C-95/303 - 92/1013, no measures notified, terminated in 1995 - 92/1014, no measures notified, terminated in 1995 Belgium - 94/2271, not properly applied, reasoned opinion to be sent in 1996 91/0244 Conservation of wild birds Member States which have notified implementing measures: A, DK, D, EL, E, F, FIN, IRL, I, L, NL, P, S, UK Denmark Greece Luxembourg Netheriands - 93/0063, no measures notified, terminated in 1995 - 93/0901, no measures notified, reasoned opinion in 1995 - 93/0352, no measures notified, terminated in 1995 - 93/0393, no measures notified, terminated in 1995 375 Belgium - 93/2123, not properly implemented, reasoned opinion to be sent in 1996 91/0271 Urban waste-water treatment Member States which have notified implementing measures:A, DK, F, FIN, IRL, L, S Germany - 93/0669, no measures notified, referral in 1995, Case C-95/297 Greece - 93/0718, no measures notified, referral in 1995, Case Spain C-95/161 - 93/0721, no measures notified, referral scheduled for 1996 Ireland Italy - 93/0763, no measures notified, terminated in 1995 - 93/0786, no measures notified, referral in 1995, Case C-95/302 United Kingdom - 93/0873, no measures notified, reasoned opinion in 1994 91/0325 Labelling of dangerous substances (double deadline for transposai: 08. 06. 91 and 01. 07. 92) Member States which have notified implementing measures: A, B, DK, D, EL, E, F, FIN, IRL, I, L, NL, P, S, UK Belgium Belgium Portugal Portugal United Kingdom - 92/0061, no measures notified, terminated in 1995 - 92/0663, no measures notified, terminated in 1995 - 92/0480, no measures notified, terminated in 1995 - 92/0905, no measures notified, terminated in 1995 - 92/0928, no measures notified, terminated in 1995 91/0326 Labelling of dangerous substances Member States which have notified implementing measures: A, B, DK, D, EL, E, F, FIN, IRL, L, NL, P, S, UK Belgium - 92/0664, no measures notified, terminated in 1995 Italy Portugal - 92/0904, no measures notified, terminated in 1995 - 92/0830, no measures notified, reasoned opinion in 1995 376 91/0410 Labelling of dangerous substances Member States which have notified implementing measures: A, DK, D, EL, E, FIN, IRL, L, S Belgium - 92/0666, no measures notified, reasoned opinion to be sent in 1996 - 92/0832, no measures notified, reasoned opinion in 1994 Italy Portugal - 92/0902, no measures notified, referral scheduled for 1996 - 92/0930, no measures notified, reasoned opinion United Kingdom in 1994 91/0632 Labelling of dangerous substances Member States which have notified implementing measures: all Belgium Italy Netheriands - 93/0624, no measures notified,terminated in 1995 - 93/0788, no measures notified, terminated in 1995 - 93/0832, no measures notified, terminated in 1995 Portugal United Kingdom - 93/0848, no measures notified, terminated in 1995 - 93/0875, no measures notified, terminated in 1995 91/0676 Pollution of water by nitrates of agricultural origin Member States which have notified implementing measures: A, DK, F, FIN, L, S Belgium - 94/2239, not properly implemented, reasoned opinion to be sent in 1996 Spain - 94/2240, not properly implemented, reasoned opinion to be sent in 1996 Netheriands - 94/2242, not properly implemented, reasoned opinion to be sent in 1996 Italy Greece - 94/2245, not properly implemented, reasoned opinion to be sent in 1996 - 94/2247, not properly implemented, reasoned opinion to be sent in 1996 377 91/0689 Hazardous waste Member States which have notified implementing measures: A, D, FIN, NL, S United Kingdom - 95/0629, no measures notified, Art. 169 letter in 1995 Portugal Luxembourg - 95/0601, no measures notified, Art. 169 letter in 1995 95/0565, no measures notified, Art. 169 letter in - 1995 Italy Ireland France Spain Greece Denmark Belgium - 95/0539, no measures notified, Art. 169 letter in 1995 - 95/0521, no measures notified, Art. 169 letter in 1995 - 95/0498, no measures notified, Art. 169 letter in 1995 - 95/0474, no measures notified, Art. 169 letter in 1995 - 95/0448, no measures notified, Art. 169 letter in 1995 - 95/0419, no measures notified, Art. 169 letter in 1995 - 95/0391, no measures notified, Art. 169 letter in 1995 92/0003 Shipments of radioactive waste Member States which have notified implementing measures: A, DK, E, FIN, IRL, I, L, NL, S, UK - 94/0413, no measures notified, Art. 169 letter in 1994 Belgium - 94/0400, no measures notified, Art. 169 letter in 1994 Germany Greece Spain Italy - 94/0464, no measures notified, terminated in 1995 Portugal - 94/0487, no measures notified, Art. 169 letter in 1994 - 94/0428, no measures notified, Art. 169 letter in 1994 - 94/0434, no measures notified, terminated in 1995 92/0014 Operation of aeroplanes Member States which have notified implementing measures: A, B, D, DK, EL, E, F, FIN, I, IRL, L, NL, P, S, UK Germany Italy - 92/0709, no measures notified, terminated in 1995 - 92/0837, no measures notified, terminated in 1995 92/0032 Labelling of dangerous substances Member States which have notified implementing measures: A, DK, D, E, EL, F, FIN, IRL, L, NL, S, UK 378 - 93/1028, no measures notified, terminated in 1995 - 93/0998, no measures notified, terminated in 1995 Belgium - 93/0970, no measures notified, reasoned opinion in 1995 Greece Spain France Italy - 93/1011, no measures notified, terminated in 1995 - 93/1044, no measures notified, reasoned opinion to be sent in 1996 - 93/1064, no measures notified, terminated in 1995 - 93/1056, no measures notified, terminated in 1995 Luxembourg „ Netheriands Portugal - 93/1075, no measures notified, referral scheduled for 1996 United Kingdom - 93/1086, no measures notified, terminated in 1995 92/0037 Labelling of dangerous substances Member States which have notified implementing measures: all - 94/0137, no measures notified, terminated in 1995 Belgium r 94/0009, no measures notified, terminated in 1995 Spain Italy Portugal United Kingdom - 94/0235, no measures notified, terminated in 1995 - 94/0335, no measures notified, terminated in 1995 - 94/0368, no measures notified, terminated in 1995 92/0043 Conservation of natural habitats and wild fauna and flora Member States which have notified implementing measures: A, B, DK, FIN, IRL, L, NL, S, UK Germany - 94/0645, no measures notified, reasoned opinion to be sent in 1996 - 94/703, no measures notified, reasoned opinion in 1995 - 94/0659, no measures notified, Art. 169 letter in 1994 Greece Spain France Italy Portugal - 94/0748, no measures notified, reasoned opinion in 1995 - 94/0766, no measures notified, terminated in United Kingdom 1995 - 94/0673, no measures notified, Art. 169 letter in 1994 - 94/0718, no measures notified, Art. 169 letter in 1994 92/0069 Labelling of dangerous substances 379 Member States which have notified implementing measures: A, DK, D, E, EL, F, FIN, IRL, L, NL, S, UK Belgium - 93/0973, no measures notified, reasoned opinion in 1995 Greece Spain Italy - 93/1000, no measures notified, terminated in 1995 - 93/1047, no measures notified, reasoned opinion to be sent - 93/1025, no measures notified, terminated in 1995 in 1996 Portugal - 93/1077, no measures notified, referral scheduled for 1996 92/0072 Air pollution by ozone Member States which have notified implementing measures: A, B, DK, E, D, FIN, IRL, L, S, UK Belgium - 94/0517, no measures notified, terminated in 1995 Greece Spain France Italy Netheriands - 94/0547, no measures notified, reasoned opinion in 1995 - 94/0549, no measures notified, terminated in 1995 - 94/0555, no measures notified, reasoned opinion in 1995 - 94/0568, no measures notified, reasoned opinion in 1995 - 94/0583, no measures notified (to be terminated in 1996) Portugal - 94/0590, no measures notified, reasoned opinion in 1995 United Kingdom - 94/0599, no measures notified, terminated in 1995 92/0112 Pollution - titanium dioxide. Member States which have notified implementing measures: A, DK, D, E, EL, F, FIN, I, IRL, L, NL, P, S, UK Belgium - 93/0638, no measures notified, referral scheduled for 1996 Greece Ireland Italy Portugal United Kingdom - 93/0698, no measures notified, terminated in 1995 - 93/0781, no measures notified, terminated in 1995 - 93/0801, no measures notified, terminated in 1995 - 93/0865, no measures notified, terminated in 1995 - 93/0888, no measures notified, terminated in 1995 380 93/0012 Sulphur content of liquid fuels Member States which have notified implementing measures: A, D, DK, EL, F, FIN, IRL, L, NL, P, S, UK, Belgium - 94/0519, no measures notified, suppl. Art. 169 letter to be sent in 1996 Germany Spain - 94/0534, no measures notified, terminated in 1995 - 94/0552, no measures notified, suppl. Art. 169 letter to be sent in 1996 France Italy - 94/0558, no measures notified, terminated in 1995 - 94/0571, no measures notified, suppl. Art. 169 letter to be sent in 1996 Portugal - 94/0593, no measures notified, terminated in 1995 93/0021 Labelling of dangerous substances Member States which have notified implementing measures: A, DK, D, E, EL, F, FIN, IRL, L, NL, S, UK Belgium - 94/0782, no measures notified, reasoned opinion to be sent in 1996 - 94/0989, no measures notified, terminated in 1995 - 94/0826, no measures notified, terminated in 1996 - 94/0876, no measures notified, Art. 169 letter in 1995 Greece Spain Italy Luxembourg Portugal - 94/0933, no measures notified, Art. 169 letter in 1995 United Kingdom 94/0900, no measures notified, terminated in 1995 - 94/0956, no measures notified, terminated in 1995 - 93/0067 Principles for assessment of risks Member States which have notified implementing measures: A, DK, D, E, F, FIN, IRL, L, NL, S - 93/0996, no measures notified, terminated in 1995 - 93/1020, no measures notified, reasoned opinion in 1995 - 93/1005, no measures notified, terminated in 1995 Belgium - 93/0978, no measures notified, reasoned opinion in 1995 Germany Greece Spain France Ireland Italy - 93/1019, no measures notified, terminated in 1995 - 93/1041, no measures notified, terminated in 1995 - 93/1054, no measures notified, referral in 1995, Case C-95/238 381 Luxembourg Netheriands - 93/1072, no measures notified, terminated in 1995 - 93/1062, no measures notified, terminated in 1995 Portugal - 93/1084, no measures notified, reasoned opinion in 1995 - 93/1095, no measures notified, reasoned opinion United Kingdom in 1994 93/0072 Labelling of dangerous substances Member States which have notified implementing measures: A, DK, D, E, EL, F, FIN, IRL, L, NL, S, UK - 94/0978, no measures notified, terminated in 1995 Belgium - 94/0791, no measures notified, Art. 169 letter in 1995 Greece Spain Italy Luxembourg Portugal - 94/0943, no measures notified, Art. 169 letter in 1995 United Kingdom - 94/0831, no measures notified, terminated in 1995 - 94/0885, no measures notified, Art. 169 letter in 1995 94/0907, no measures notified, terminated in 1995 - 94/0965, no measures notified, terminated in 1995 - 93/0086 Batteries and accumulators containing certain dangerous substances Member States which have notified implementing measures: A, DK, EL, FIN, IRL, L, NL, P, S, UK Belgium - 94/0032, no measures notified, reasoned opinion in 1995 - 94/0094, no measures notified, reasoned opinion in Germany 1995 Greece Spain - 94/0100, no measures notified, terminated in 1995 - 94/0162, no measures notified, reasoned opinion in 1995 France Italy Portugal United Kingdom - 94/0193, no measures notified, referral scheduled for 1996 - 94/0261, no measures notified, reasoned opinion in 1995 - 94/0360, no measures notified, terminated in 1995 -. 94/0392, no measures notified, terminated in 1995 93/0090 Labelling of dangerous substances Member States which have notified implementing measures: A, D, DK, E, EL, F, FIN, IRL, NL, S 382 Belgium - 94/0033, no measures notified, Art. 169 letter in 1994 - 94/0095, no measures notified, terminated in 1995 Germany Greece Spain Italy Luxembourg - 94/0163, no measures notified, terminated in 1995 - 94/0262, no measures notified, reasoned opinion in 1994 94/0296, no measures notified, Art. 169 letter in - 94/0099, no measures notified, terminated in 1995 - 1994 Portugal United Kingdom - 94/0361, no measures notified, Art. 169 letter in 1994 - 94/0393, no measures notified, reasoned opinion in 1994 93/0101 Labelling of dangerous substances Member States which have notified implementing measures: A, D, DK, F, FIN, IRL, NL, S, UK Belgium - 95/0230, no measures notified, Art. 169 letter in 1995 Luxembourg 95/0337, no measures notified, Art. 169 letter in - 1995 - 95/0319, no measures notified, Art. 169 letter in 1995 - 95/0268, no measures notified, Art. 169 letter in 1995 Italy Greece Spain Portugal - 95/0361, no measures notified, Art. 169 letter in 1995 - 95/0286, no measures notified, Art. 169 letter in 1995 93/0105 Information required for technical dossiers Member States which have notified implementing measures: A, D, DK, E, EL, F, FIN, IRL, L, NL, S Belgium Germany Greece Spain Italy Portugal - 94/0035, no measures notified, reasoned opinion in 1995 - 94/0097, no measures notified, terminated in 1995 - 94/0098, no measures notified, terminated in 1995 - 94/0164, no measures notified, terminated in 1995 - 94/0263, no measures notified, reasoned opinion in 1995 - 94/0362, no measures notified, reasoned opinion in 1995 United Kingdom - 94/0395, no measures notified, reasoned opinion in 1994 94/0015 383 Genetically modified organisms Member States which have notified implementing measures: A, DK, F, FIN, I, IRL, NL, P, S Belgium - 94/0634, no measures notified, reasoned opinion to be sent in 1996 Germany Spain - 94/0658, no measures notified, Art. 169 letter in 1994 - 94/0672, no measures notified, reasoned opinion in 1995 France Greece Ireland Italy Luxembourg - 94/0686, no measures notified,terminated in 1995 - 94/0687, no measures notified, reasoned opinion in 1995 - 94/0717, no measures notified, terminated in 1995 - 94/0731, no measures notified, terminated in 1995 94/0742, no measures notified, reasoned opinion to - be sent in 1996 - 94/0764, no measures notified, terminated in 1995 Portugal United Kingdom - 94/0775, no measures notified, Art. 169 letter in 1994 94/0024 Conservation of wild birds Addressee: Italy Member States which have notified implementing measures: I 94/0051 Genetically modified organisms Member States which have notified implementing measures: A, D, DK, F, FIN, I, NL, S Luxembourg - 95/0344, no measures notified, Art. 169 letter in 1995 Ireland Belgium Greece Spain - 95/0312, no measures notified, Art. 169 letter in 1995 - 95/0239, no measures notified, Art. 169 letter in 1995 - 95/0277, no measures notified, Art. 169 letter in 1995 95/0290, no measures notified, Art. 169 letter in - 1995. Portugal United Kingdom - 95/0371, no measures notified, Art. 169 letter in 1995 - 95/0385, no measures notified, Art. 169 letter in 1995 94/0063 384 Volatile organic compound emissions Member States which have notified implementing measures: A, DK, F, I, NL 94/0066 Emission of pollutants into the air Member States which have notified implementing measures: A, D, DK, F, FIN, L, NL, S, UK Portugal Italy Ireland Spain - 95/0620, no measures notified, Art. 169 letter in 1995 - 95/0555, no measures notified, Art. 169 letter in 1995 - 95/0532, no measures notified, Art. 169 letter in 1995 95/0491, no measures notified, Art. 169 letter in - 1995 Greece Belgium - 95/0465, no measures notified, Art. 169 letter in 1995 - 950409, no measures notified, Art. 169 letter in 1995 95/0027 Excavators, dozers and excavator-loaders Member States which have notified implementing measures: I, FIN, NL,UK 385 7. TRANSPORT 62/2005 Carriage of goods by road Member States which have notified implementing measures: all 74/0561 Carriage of goods by road Member States which have notified implementing measures: all 74/0562 Admission to the occupation of road passenger transport operator Member States which have notified implementing measures: all 76/0135 Inland waterway vessels Member States which have notified implementing measures: all except FIN and S 76/0914 Training for road transport drivers Member States which have notified implementing measures: all except FIN 77/0143 Roadworthiness tests for motor vehicles Member States which have notified implementing measures: all 77/0796 Mutual recognition of qualifications - goods haulage operators Member States which have notified implementing measures: all 78/1016 Inland waterway vessels Member States which have notified implementing measures: all 386 79/0115 Pilotage of vessels Member States which have notified implementing measures: all except A 80/1263 Community driving licence Member States which have notified implementing measures: all 80/1266 Mutual assistance - aircraft accidents Member States which have notified implementing measures: all 82/0714 Inland waterway vessels Member States which have notified implementing measures: all except FIN and S 84/0647 Vehicles hired without drivers Member States which have notified implementing measures: all except A 85/0003 Weights and dimensions of motor vehicles Member States which have notified implementing measures: all 86/0360 Weights and dimensions of motor vehicles Member States which have notified implementing measures: all 86/0364 Weights and dimensions of motor vehicles Member States which have notified implementing measures: all 387 87/0540 Admission to the occupation of carrier of goods by waterway Member States which have notified implementing measures: A, D, EL, E, F, IRL, I, L, NL, P, UK Belgium - 89/0364, no measures notified, referral in 1990 - Case C-90/377, Art. 171 letter in 1993, reasoned opinion (171) to be sent in 1996 - 93/2202, not properly implemented, Art. 169 letter in Germany 1994, reasoned opinion in 1995 88/0218 Weights and dimensions of motor vehicles Member States which have notified implementing measures: all 88/0449 Roadworthiness tests for motor vehicles Member States which have notified implementing measures: all 88/0599 Road transport - Social provisions - recording equipment Member States which have notified implementing measures: A, B, DK, D, EL, E, F, IRL, L, NL, P, S, UK Italy - 90/0061, no measures notified, referral in 1993 - Case C-93/289, Art. 171 letter in 1995 Belgium - 90/0052, no measures notified, referral in 1993 - Case C-93/336, Art. 171 letter in 1994, terminated in 1995. 89/0338 Weights and dimensions of motor vehicles Member States which have notified implementing measures: all 89/0438 Admission to the occupation of road haulage operator Member States which have notified implementing measures: all 388 Luxembourg - 92/2199, not properly implemented, Art. 169 letter in 1993, reasoned opinion in 1995 89/0459 Tyres of motor vehicles Member States which have notified implementing measures: all. 89/0461 Weights and dimensions of motor vehicles Member States which have notified implementing measures: all. 89/0684 Training for drivers of vehicles carrying dangerous goods Member States which have notified implementing measures: all Greece - 94/043, no measures notified, Art. 169 letter in 1994, terminated in 1995 90/0398 Vehicles hired without drivers Member States which have notified implementing measures: all except A Portugal - 91/0524, no measures notified, reasoned opinion in 1993, terminated in 1995 91/0060 Weights and dimensions of motor vehicles Member States which have notified implementing measures: all. 91/0328 Roadworthiness tests for motor vehicles and their trailers Member States which have notified implementing measures: A, B, DK, D, EL, E, FIN, F? I, L, NL, P, S, UK Ireland - 93/0764, no measures notified, Art. 169 letter in 1993 91/0440 389 Development of railways Member States which have notified implementing measures: A, B, DK, D, E, FIN, F, IRL, I, L, NL, P, S, UK Belgium - 94/0399, no measures notified, Art. 169 letter in 1994, terminated in 1995 Denmark - 94/0407, no measures notified, Art. 169 letter in 1994, Greece Spain France Italy - - - - Luxembourg terminated in 1995 94/0429, no measures notified, Art. 169 letter in 1994, reasoned opinion in 1995 94/0433, no measures notified, Art. 169 letter in 1994, terminated in 1995 94/0443, no measures notified, Art. 169 letter in 1994, terminated in 1995 94/0463, no measures notified, Art. 169 letter in 1994, terminated in 1995 - 94/047, no measures notified, Art. 169 letter in 1994, terminated in 1995 Portugal - 94/0486, no measures notified, Art. 169 letter in 1994, terminated in 1995 91/0670 Mutual acceptance of personnel licences in civil aviation Member States which have notified implementing measures: all France - 93/4916 and 93/4959, not properly applied, reasoned opinion in 1995. United Kingdom - 92/0644, no measures notified, Art. 169 letter in 1992, terminated in 1995. 91/0671 Use of safety belts Member States which have notified implementing measures: A, DK, D, EL, E, FIN, F, IRL, I, L, NL, P, S, UK Belgium - 93/0018, no measures notified, reasoned opinion in 1995. 390 91/0672 Boatmasters' certificates for inland waterways Member States which have notified implementing measures: all Germany - 93/0089, no measures notified, Art. 169 letter in 1993, terminated in 1995. 92/0006 Speed limitation devices for certain categories of motor vehicles Member States which have notified implementing measures: A, B, DK, D, EL, E, FIN, F, IRL, I, L, NL, S, UK Italy - 93/1043, no measures notified, Art. 169 letter in 1993, terminated in 1995 Portugal - 93/1074, no measures notified, Art. 169 letter in 1993, reasoned opinion in 1995 92/0007 Weights and dimensions of motor vehicles Member States which have notified implementing measures: all 92/0054 Roadworthiness tests for motor vehicles and their trailers (brakes) Member States which have notified implementing measures: A, B, DK, D, EL, E, FIN, F, IRL, L, NL, P, S, UK Italy - 93/0793, no measures notified, Art. 169 letter in 1993 Greece - 93/0710, no measures notified, Art. 169 letter in 1993, terminated in 1995 Ireland - 93/0771, no measures notified, Art. 169 letter in 1993, terminated in 1995 92/0055 Roadworthiness tests for motor vehicles and their trailers (exhaust emissions) Member States which have notified implementing measures: all Greece - 93/0709, no measures notified, Art. 169 letter in 1993, terminated in 1995 France - 93/0745, no measures notified, Art. 169 letter in 1993, terminated in 1995 391 Ireland - 93/0772, no measures notified, Art. 169 letter in 1993, Luxembourg terminated in 1995 - United Kingdom 93/0819, no measures notified, Art. 169 letter in 1993, terminated in 1995 - 93/0880, no measures notified^ Art. 169 letter in 1993, terminated in 1995 92/106 Combined transport Member States which have notified implementing measures: A, DK, D, E, FIN, F, IRL, I, L, NL, P, S, UK Belgium - 93/0636, no measures notified, Art. 169 letter in 1993 - 93/0754, no measures notified, Art. 169 letter in 1993, France terminated in 1995 Greece Italy - 93/0701, no measures notified, Art. 169 letter in 1993 - 93/0799 - no measures notified, Art. 169 letter in 1993, terminated in 1995 Portugal - 93/0863, no measures notified, Art. 169 letter in 1993, terminated in 1995 93/0065 Air-traffic management systems Member States which have notified implementing measures: DK, D, FIN, IRL, L, NL, S, UK Belgium - 95/0394, no measures notified, Art. 169 letter in 1995 Greece - 94/0982, no measures notified, Art. 169 letter in 1995 Spain - 94/0843, no measures notified, Art. 169 letter in 1995 France Italy - 95/0542, no measures notified, Art. 169 letter in 1995 Portugal - 94/0940, no measures notified, Art. 169 letter in 1995 - 95/0477, no measures notified, Art. 169 letter in 1995 93/0075 Shipment of dangerous or polluting goods - minimum standards Member States which have notified implementing measures: A, D, EL, FIN, S Belgium - 94/0793, no measures notified, Art. 169 letter in 1995 Denmark - 94/0804, no measures notified, Art. 169 letter in 1995, reasoned opinion in 1995 392 Spain - 94/0833, no measures notified, Art. 169 letter in 1995, reasoned opinion in 1995 France Ireland Italy - - 94/0847, no measures notified, Art. 169 letter in 1995 - 94/0863, no measures notified, Art. 169 letter in 1995 94/0887, no measures notified, Art. 169 letter in 1995, Netheriands reasoned opinion in 1995 - 94/0921, no measures notified, Art. 169 letter in 1995 Portugal - 95/0360, no measures notified, Art. 169 letter in 1995 United Kingdom - 94/0966, no measures notified, Art. 169 letter in 1995, reasoned opinion in 1995 93/0089 Taxes on certain vehicles used for the carriage of goods by road Member States which have notified implementing measures: A, D, DK, FIN, NL, UK - 95/0082, no measures notified, Art. 169 letter in 1995 Belgium - 95/0024, no measures notified, Art. 169 letter in 1995 - 95/0066, no measures notified, Art. 169 letter in 1995 Greece Spain France Ireland Italy Luxembourg - 95/0103, no measures notified, Art. 169 letter in 1995 - 95/0115, no measures notified, Art. 169 letter in 1995 - 95/0133, no measures notified, Art. 169 letter in 1995 95/0148, no measures notified, Art. 169 letter in 1995 - Portugal - 95/0178, no measures notified, Art. 169 letter in 1995 94/0021 Summertime Member States which have notified implementing measures: A, B, D, EL, E, FIN, F, IRL, L, S. Belgium - 95/0028, no measures notified, Art. 169 letter in 1995, Denmark Ireland terminated in 1995 - 95/0036, no measures notified, Art. 169 letter in 1995 - 95/012, no measures notified, Art. 169 letter in 1995, terminated in 1995 Italy - Netheriands 95/0138, no measures notified, Art. 169 letter in 1995 - 95/0161, no measures notified, Art. 169 letter in 1995 Portugal - 95/0185, no measures notified, Art. 169 letter in 1995 393 United Kingdom - 95/0207, no measures notified, Art. 169 letter in 1995 8. ENERGY 68/0414 Crude-oil stocks Member States which have notified implementing measures: all 72/0425 Crude-oil stocks Member States which have notified implementing measures: all 73/0238 Oil supply difficulties Member States which have notified implementing measures: all 75/0339 Fossil fuel stocks Member States which have notified implementing measures: all except FIN 75/0405 Use of petroleum products in power stations Member States which have notified implementing measures: all 76/0491 Information on oil prices Member States which have notified implementing measures: all 78/0170 Heat generators Member States which have notified implementing measures: all F * 394 82/0885 Heat generators Member States which have notified implementing measures: all 85/0536 Crude-oil savings Member States which have notified implementing measures: all 87/0441 Crude-oil savings Member States which have notified implementing measures: all except FIN 90/0377 Transparency of gas and electricity prices Member States which have notified implementing measures: all except E Spain - 92/0165, no measures notified, reasoned opinion in 1994 90/0547 Transit of electricity through transmission grids Member States which have notified implementing measures: all 90/0653 Gas and electricity prices (addressed to Germany) Member States which have notified implementing measures: D 91/0296 Transit of natural gas through grids Member States which have notified implementing measures: all except FIN andP Germany Spain - 92/0133, no measures notified, terminated in 1995 - 92/0181, no measures notified, (to be terminated in 1996) France Portugal - 92/0481, no measures notified, reasoned opinion in 1994 - 92/0221, no measures notified, terminated in 1995 395 92/0042 Efficiency requirements for hot-water boilers Member States which have notified implementing measures: DK, D, EL, E, FIN, F, IRL, NL, S, UK. Belgium - 93/0971, no measures notified, reasoned opinion in 1995. Luxembourg - 93/1065, no measures notified, reasoned opinion in 1995. Portugal - 93/1076, no measures notified, reasoned opinion in 1995. - 93/1045, no measures notified, reasoned opinion in Italy 1995. 92/0075 Information on the consumption of energy by household appliances Member States which have notified implementing measures: all Belgium Germany Ireland Italy Luxembourg - 93/0629, no measures notified, terminated in 1995. - 93/0677, no measures notified, terminated in 1995. - 93/0773, no measures notified, terminated in 1995. - 93/0795, no measures notified, terminated in 1995. - 93/0820, no measures notified, terminated in 1995. 93/0076 Carbon dioxide emissions Member States which have notified implementing measures: F, IRL, NL. - no measures notified, Art. 169 letter in 1995. - no measures notified, Art. 169 letter in 1995. - no measures notified, Art. 169 letter in 1995. Germany Belgium - no measures notified, Art. 169 letter in 1995. Denmark Spain Greece Italy Luxembourg Portugal - no measures notified, Art. 169 letter in 1995. - no measures notified, Art. 169 letter in 1995. - no measures notified, Art. 169 letter in 1995. no measures notified, Art. 169 letter in 1995. - 396 94/0002 Energy labelling of refrigerators, freezers and their combinations Member States which have notified implementing measures: A, DK, EL, E, FIN, F, IRL, NL, P, S, UK. Belgium - no measures notified, Art. 169 letter in 1995. Germany Italy Luxembourg - no measures notified, Art. 169 letter in 1995. - no measures notified, Art. 169 letter in 1995. no measures notified, Art. 169 letter in 1995. - 94/0022 Authorizations hydrocarbons Member States which have notified implementing measures: A, DK, D, EL, F, P, UK (Luxembourg not required to transpose). the prospection, exploration and production of for Belgium - no measures notified, Art. 169 letter in 1995. - no measures notified, Art. 169 letter in 1995. Spain - no measures notified, Art. 169 letter in 1995. Italy - no measures notified, Art. 169 letter in 1995. Ireland Netheriands no measures notified, Art. 169 letter in 1995. - 397 ANNEX V JUDGMENTS OF THE COURT OF JUSTICE NOT YET IMPLEMENTED 398 BELGIUM Judgment given on 19/10/81, Case C-137/80 Judgment given on 03/10/89, Case C-383/85 Transfer of pension rights The Act of 21. 5. 91 gives effect to the Court's judgment except as regards Article 11(2) of Annex 8 to the Staff Regulations (situation of self-employed persons) on which the Commission is awaiting the implementing Royal Decree. Judgment given on 02/02/82, Case, C-71/81 Judgment given on 14/01/88, Case C-230/85 Disposal of polychlorinated biphenyls and terphenyls (PCB). Article 171 proceedings are in motion. Judgment given on 08/07/87, Case C-247/85 Wild birds. Article 171 proceedings are in motion. Judgment given on 27/09/88, Case C-42/87 Judgment given on 03/05/94, Case C-47/93 Discrimination in public financing - non-university further education The Commission has commenced Article 171 proceedings. Judgment given on 19/02/91, Case C-375/89 Aid for Idealspun/Beaulieu. The Belgian authorities have commenced proceedings in the national courts to recover the unlawful aid. Judgment was given on 20. 09. 94. The company has appealed against the substance and against enforcement. 399 Judgment given on 16/05/91, Case C-l67/90 Pharmacists: Pharmacists - coordination and mutual recognition of qualifications. Article 171 proceedings are in motion. Judgment given on 11/06/91, Case C-290/89 Surface water. Belgium has notified a plan of action for the Flemish and Walloon Regions. Article 171 proceedings are in motion. Judgment given on 26/02/92, Case C-3 77/90 Carriage of goods by inland waterway - access to the occupation. Transposai legislation has been notified. The Commission is awaiting its formal enactment. Judgment given on 10/11/92, Case C-326/90 Covert discrimination regarding social security benefits. Belgium has adapted its legislation in response to a judgment by the Court of Justice, but a problem remains; Article 171 proceedings are in motion. Judgment given on 17/02/93, Case C-173/91 Equal treatment of men and women. Discrimination based on age. Article 171 proceedings are in motion. Judgments given on 24/03/94, Case C-80/92 Free movement of wireless telephones. Progress is being made. Judgment given on 03/05/94, Case C-260/93 Sewage sludge used in agriculture. Article 171 proceedings have been commenced. 400 Judgment given on 19/01/95, Case C-66/94 Imports of animals and meat - health checks. Article 171 proceedings have been commenced. Judgment given on 04/05/95, Case C-218/94. Telecommunications terminal equipment. Satisfactory legislation has been notified to the Commission at draft stage. It has not yet been enacted. Judgment given on 13/07/95, Case C-216/94. Mutual recognition of qualifications - higher education Article 171 proceedings have been commenced. Judgment given on 12/10/95, Case C-236/94. Restrictions on marketing and use of certain dangerous substances and preparations. Recent judgment. GERMANY Judgment given on 03/07/90, Case C-288/88 Wild birds, legislation, shooting laws. The Commission has been notified of satisfactory Bills. Article 171 proceedings are in motion pending their enactment. Judgment given on 20/09/90 Bug-Alutechnik - repayment of a grant. National recovery proceedings are still in motion. 401 Judgment given on 28/02/91, Case C-131/88 Groundwater. The German authorities have not notified measures to comply with the Court's judgment. Article 171 proceedings are in motion. Judgment given on 17/10/91, Case C-58/89 Surface water, not properly implemented. The German authorities have not notified the measures taken to comply with the Court's judgment. Article 171 proceedings are in motion. Judgment given on 10/05/95, Case C-422/92 Waste disposal. The Commission has contacted the German authorities to ascertain what measures are planned to comply with the Court's judgment. GREECE Judgment given on 15/03/88, Case C-147/86 Judgment given on 30/01/92, Case C-328/90 Ban on opening a private school (Frontistirion); nationality discrimination. The Decree being unsatisfactory, the Commission has recommenced Article 171 proceedings. Judgment given on 08/11/90, Case C-53/88 Protection of workers in the event of the employer's insolvency. Article 171 proceedings are in motion Judgment given on 26/02/91, Case C-189/89 Restrictions on freedom to provide services - tourist guides. 402 The Greek authorities have sent notification of a Presidential Decree to comply with the Court's judgment as regards legislation on tourist guides. The Greek authorities have been asked to supply additional explanations, with details as to the timing. Judgment given on 07/04/92, Case C-45/91 Village waste in Crete. Article 171 proceedings are in motion. Judgment given on 23/03/95, Case C-365/93 Mutual recognition of qualifications - higher education. Article 171 proceedings have been commenced: Judgment given on 01/06/95, Case C-123/94 Nationality discrimination. The Commission has commenced Article 171 proceedings. Judgment given on 29/06/95, Case C-79/94 Motor vehicles - third-party insurance. Article 171 proceedings have been commenced: Judgment given on 29/06/95, Case C-l70/94 Confined use of genetically-modified micro-organisms. Voluntary release of genetically- modified micro-organisms into the environment. The Greek authorities notified satisfactory legislation at the end of December. Judgment given on 29/06/95, Case C-207/94 Freedom to provide services - non-life insurance. Article 171 proceedings have been commenced. 403 Judgment given on 29/06/95, Case C-225/94 Direct life assurance. Article 171 proceedings have been commenced. Judgment given on 06/07/95, Case C-259/94. Open network provision - leased lines. The Commission has received draft legislation settling part of the problem; it is in contact with the Greek authorities. Judgment given on 11/08//95, Case C-260/94 Telecommunications terminal equipment. The Greek authorities have notified the Commission of satisfactory legislation. The case is being terminated. SPAIN Judgment given on 02/08/93, Case C-355/90 Conservation of wild birds at Santona The Commission has commenced Article 171 proceedings. Judgment given on 17/11/93, Case C-71/92 Public works and supply contracts. Article 171 proceedings have been commenced. No progress to report. Judgment given on 15/03/94, Case C-45/93 Nationality discrimination - access to museums. Spanish national legislation has been amended; regional measures are still awaited. 404 Judgment given on 22/03/94, Case C-375/92 Restrictions on freedom to provide services as tourist guides. Progress. Judgment given on 23/03/94, Case C-268/93 Good laboratory practice. Article 171 proceedings have been commenced. Judgment given on 03/05/94, Case C-328/92 Public supply contracts for pharmaceutical products to the social security authorities. Progress. Judgment given on 06/12/94, Case C-277/93 Doctors' remuneration. The Commission has contacted the Spanish authorities to ascertain what measures are planned to comply with the Court's judgment Judgment given on 06/04/95, Case C-147/94 Motor vehicles - third-party insurance. Article 171 proceedings have been commenced. Judgment given on 12/10/95, Case C-242/94 Direct life assurance. Recent judgment. Judgment given on 14/12/95, Case C-l6/95 Incorrect application of 8th VAT Directive. Recent judgment. 405 FRANCE Judgment given on 04/04/74, Case C-167/73 Access to employment on board ship. Article 171 proceedings are in motion. Judgment given on 27/04/88, C-252/85 Wild birds The Commission is pursuing the proceedings. Judgment given on 25/10/88, Case C-312/86 Equal treatment, access to employment. Only a part of the clauses found to be discriminatory have been changed during negotiations. Proceedings are in motion; progress has been made. Judgment given on 12/12/90, Case C-263/88 Refusal to allow freedom of establishment and freedom to provide services in the overseas territories. Article 171 proceedings are in motion. Judgment given on 26/02/91, Case C-154/89 Restrictions on freedom to provide services - tourist guides. Article 171 proceedings are in motion. Judgment given on 11/06/91, Case C-64/88 Fisheries: inadequate enforcement of technical conservation measures. Progress in implementing the Court's judgment is unsatisfactory; Article 171 proceedings are in motion. 406 Judgment given on 13/01/93, Case C-293/91 Defective products. Article 171 proceedings are in motion. Judgment given on 05/05/93, Case C-246/91 Cosmetics. Article 171 proceedings are in motion. Judgment given on 17/11/93, Case C-68/92 VAT on advertising services, double taxation. The offending circular has been withdrawn. A fresh circular complying with the Court's judgment is awaited. Article 171 proceedings are in motion. Judgment given on 07/12/95, Case C-52/95 Overfishing (anchovies). Recent judgment. Judgment given on 14/12/95, Case C-17/95 Protection of animals in transport. Checks and preventive measures - horse sickness. Recent judgment. IRELAND Judgment given on 11/08/95, Case C-240/94 Electromagnetic compatibility. The Commission has contacted the Irish authorities to ascertain what measures are planned to comply with the Court's judgment. 407 Judgment given on 14/12/95, Case C-l32/94 Organization of veterinary checks on products from non-member countries. Recent judgment. Judgment given on 14/12/95, Case C-138/94 Organization of veterinary checks on products from non-member countries. Recent judgment. Judgment given on 14/12/95, Case C-161/94 Veterinary and zootechnical checks in intra-Community trade in certain animals. Recent judgment. Judgment given on 14/12/95, Case C-162/94 Veterinary checks in intra-Community trade. Recent judgment. ITALY Judgment given on 15/11/83, Case C-322/82 Judgment given on 12/02/87, Case C-69/86 Quality standards - fruit and vegetables. There is satisfactory progress in implementing the judgment. Judgment given on 12/07/88, Case C-322/86 Judgment given on 09/03/94, Case C-291/93 Quality of fresh waters. Progress. Judgment given on 17/01/91, Case C-157/89 Protection of wild birds, shooting season. 408 A circular properly reflecting the undertakings entered into by the Italian authorities has been gazetted. However, since circulars are not a satisfactory means of incorporating a directive into national law, Article 171 proceedings have been commenced. Article 171 proceedings continue. Judgment given on 26/02/91, Case C-l80/89 Restrictions on freedom to provide services - tourist guides. Article 171 proceedings are in motion. Judgment given on 16/05/91, Case C-263/85 Contributions to Regions purchasing home-produced buses and trams. Regional preferences. The Italian national legislation has been adapted; the Commission is still awaiting enactment of regional legislation. Judgment given on 13/12/91, Case C-33/90 Waste-Campania. Article 171 proceedings are still in motion. Judgment given on 09/06/93, Case C-95/92 Radiation protection - medical examinations. Article 171 proceedings are in motion. Judgment given on 02/08/93, Case C-366/89 Monopoly for the collection and disposal of waste oils. Progress. Judgment given on 09/02/94, Case C-l 19/92 Customs agents' monopoly and scale of charges. Article 171 proceedings are in motion. 409 Judgment given on 23/02/94, Case C-289/93 Road transport - recording equipment. Article 171 proceedings are in motion. Judgment given on 26/04/94, Case C-272/91 Public procurement - computerized lottery systems. The Commission is still in contact with the Italian authorities. It is awaiting the enactment of measures to comply with the Court's judgment. Judgment given on 18/05/95, Case C-57/94 Public works contract: construction of Ascoli Mare road. The Commission has contacted the Italian authorities to ascertain what measures are planned to comply with the Court's judgment. Judgment given on 01/06/95, Case C-40/93 Access to the profession of dentist. The Commission has contacted the Italian authorities to ascertain what measures are planned to comply with the Court's judgment. Judgment given on 01/06/95, Case C-l82/94 Failure to notify legislation transposing two machine-tool directives. The Commission has contacted the Italian authorities to ascertain what measures are planned to comply with the Court's judgment. Judgment given on 12/10/95, Case C-257/94 Community measures to combat classical swine fever. Imports of animals and meat - health checks. Recent judgment. Judgment given on 30/11/95, Case C-l 18/95 Fruit-plant propagating material. Marketing of vegetable seedlings. Recent judgment. 410 LUXEMBOURG Judgment given on 16/06/92, Case C-351/90 Refusal to allow dentists to have two surgeries. The Luxembourg authorities have notified no legislation. Article 171 proceedings are in motion. Judgment given on 15/06/95, Case C-220/94 Open network provision - leased lines. The Commission has been notified of draft legislation, which is being scrutinized. Judgment given on 26/10/95, Case C-151/94 Income Tax Act - taxation of non-residents. , Recent judgment. THE NETHERLANDS Judgment given on 14/07/94, Case C-52/93 Technical standards - bulbs. The Commission has contacted the Dutch authorities. The requisite instruments are in process of notification. Judgment given on 14/07/94, Case C-61/93 Electronic kw/h meters. The Commission is awaiting enactment of the draft measures notified by the Dutch authorities. Judgment given on 17/01/95, Case C-93/94 Disposal and processing of animal waste. Article 171 proceedings have been commenced. 411 UNITED KINGDOM Judgment given on 18/02/92, Case C-30/90 Patent licences. The United Kingdom has notified the Commission of draft legislation. The Commission is awaiting its enactment. Progress. Judgment given on 25/11/92, Case C-337/89 The Commission has contacted the British authorities. The Commission regularly checks that the Court's judgment is properly implemented. Judgment given on 14/07/93, Case C-56/90 Bathing water quality: Blackpool and Southport. The Member State is rectifying matters. The Commission regularly checks that the Court's judgment is properly implemented. Judgment given on 24/03/94, Case C-40/92 MMB: restrictions on freedom to sell milk. Progress. Judgment given on 08/06/94, Case C-382/92 Transfers of undertakings. The United Kingdom is taking the measures needed to comply with the Court's judgment. Progress. Judgment given on 08/06/94, Case C-383/92 Collective redundancies. The United Kingdom is taking the measures needed to comply with the Court's judgment. Progress. 412 ANNEX VI APPLICATION OF COMMUNITY LAW BY NATIONAL COURTS 413 APPLICATION OF COMMUNITY LAW BY NATIONAL COURTS 1. Application of Article 177 of the EC Treaty In 1995 the Court of Justice of the European Communities received requests for preliminary rulings in cases where difficulties arose in the interpretation of Community law or where there were doubts as to the validity of Community instruments. The number of cases varies considerably from year to year but 1995, with 251 such cases, was the busiest year of preliminary ruling activity in recent times. Figures for the last six years are as follows: 1990: 142 cases 1991: 186 cases 1992: 162 cases 1993: 204 cases 1994: 203 cases 1995: 251 cases. In 1995, preliminary rulings accounted for about 60% of the total of 415 cases brought before the Court. As in previous years, cases were referred by courts in almost all Member States, Finland being the sole exception. But Finland is a new Member State, and courts in the other two new Member States did ask for preliminary rulings. There are wide variations between Member States. The number of rulings sought by the Italian, German and French courts, for instance, was around 60, 50 and 40 respectively, whereas courts in the United Kingdom and the Netherlands sought only 20 or so each. Moreover, their Spanish counterparts had only ten questions, which is less than the Belgian courts and the same as the Greek courts. When references are recorded at the Court of Justice Registry, they are published in full in the Official Journal of the European Communities. The two tables below show the number of references from each Member State and the number of cases referred by each court of final instance. 414 Number of references per Member State in 1995 (compared with 1994) Member State Total references 1995 (1994) References by courts of final instance 1995 (1994) Belgium Denmark Germany Greece Spain France Ireland Italy Luxembourg Netherlands Portugal United Kingdom Austria Sweden Finland 14 8 51 10 10 43 3 58 2 19 5 20 2 6 (19) (4) (44) (-)' (13) (36) (2) (46) (1) (13) (1) (24) (-) O 4 1 17 2 2 1 2 1 14 3 5 1 (2) (-) (11) (-) (5) (7) (-) (5) (1) (7) (-) (1) (-) (-) O 415 Origin of references by supreme courts: Belgium Germany Cour de Cassation/Hof van Cassatie Conseil d'Etat/Raad van State Bundesgerichtshof Bundesverwaltungsgericht Bundesfinanzhof Bundessozialgericht France Italy Cour de Cassation Consiglio di stato Luxembourg Conseil d'Etat Netherlands Raad van State Hoge Raad Centrale Raad van Beroep College van Beroep Tariefcommissie United Kingdom Court of Appeal Denmark Greece Ireland Austria Portugal House of Lords Hiajesteret Conseil d'Etat Supreme Court Oberste Gerichtshof Supremo tribunal amministrativo 2 2 3 4 9 1 2 2 1 2 8 1 1 2 3 2 1 2 1 1 3 416 Significant judgments of national courts of final instance 2. 1. Introduction Analysis of the judgments outlined below shows that national superior courts are paying more and more attention to Community law. The Commission has again had access to data gathered by the research and documentation department of the Court of Justice. It was thus able to identify decisions which applied Community law, though it should be pointed out that it is not possible, by consulting databases, to identify cases where national courts ought to have applied Community law but where the judgment contains no reference to it. Moreover, the Commission cannot undertake a systematic analysis of the mass of judgments delivered each year by the national superior courts. Each year, some 1200 judgments relating to Community law come to the attention of the research and documentation department. 2. 2. The research Research was carried out on the following questions in relation to decisions given or reported for the first time in 1995: 1. Were there cases where decisions against which there was no appeal were taken without a reference for a preliminary ruling even though they turned on a point of Community law whose interpretation was less than perfectly obvious? Were there any other decisions regarding preliminary rulings that merit attention? 2. Were there cases where courts, contrary to the rule in Case 314/85 Foto-Frost, declared an act of a Community institution to be invalid? To what extent did national courts, applying the principles in Joined Cases 143/88 and 92/89 Zuckerfabrik Siiderditmarschen, stay the implementation of a national administrative measure taken on the basis of a Community Regulation or Decision? 3. Were there any decisions that were noteworthy as setting good or bad examples? 417 1. Question 1 In Belgium, the Court of Arbitration/13 sitting as court of final instance, dismissed two applications for annulment of national provisions introducing ecotaxes, i. e. taxes on products considered to be harmful to the environment and operating as an incentive to use environmentally friendly substitute products, for violation of the constitutional principle of equality coupled with, principally, Articles 6, 30 and 95 of the EC Treaty and Directive 83/189/EEC(2) establishing an information procedure for technical standards and regulations. The Court held that there was no such violation and dismissed the applicants' request in the alternative that the Court of Justice be asked for a preliminary ruling. Case 7/95 concerned the provisions applicable to containers of beverages, whereby PVC bottles were not eligible for exemption from or reduction of the ecotax. In practice, the applicants submitted, the legislation had a heavier impact on French producers and distributors of mineral waters as they, unlike their Belgian counterparts, used PVC bottles. The Court held that the Belgian legislation was not contrary to the constitutional principle of equality coupled with Article 95 of the EC Treaty, partly because it did not proceed from a desire to protect Belgian firms - Belgian PVC producers were among the applicants - and partly because it was open to any firm to use non-taxable containers. In Case 8/95 (application of ecotaxes to batteries), the Court held that, even if the system of refunds on the return of used batteries, on which exemption from the ecotax depended, was caught by Article 30 of the EC Treaty, it was not contrary to it. Being applicable as a blanket measure and being necessary on environmental protection grounds, it could not be replaced by measures that were less restrictive of intra-Community trade. The Court added that there were good grounds in the instant case for treating batteries not capable of being considered dangerous in the same way as those to which Directive 91/157/EEC(3) applied. Nor, it held, was there any evidence of discrimination against any of the applicants in the exercise of their rights by reason of the alleged absence of prior consultation of the parties concerned as required by the Directive. 1^ In both cases the Court held that the relevant provisions, requiring a label distinguishing products subject to ecotax from those which were not ecotaxable, were not within the scope of Directive 83/189/EEC. Even if o) (2) (3) (4) Cases 7 and 8/95, judgments given on 2. 2. 1995: [1995] Journal des tribunaux 470 and 474-477. Council Directive 83/189/EEC of 28 March 1983 laying down a procedure for the provision of information in the field of technical standards and regulations: OJ L 109, 26. 4. 1983, p. 8. Council Directive 91/157/EEC of 18 March 1991 on batteries and accumulators containing certain dangerous substances: OJ L 78, 26. 3. 1991, p. 4, as last amended by Council Directive 93/86/EEC: OJ L264, 23. 10. 1993, p. 51. Article 7. 418 a legal labelling obligation could be taken to constitute a "* technical specification', only the implementing rules were notifiable/5* In Spain, the Tribunal Supremo, a court of final instance, gave judgment on 27 March 1995(6) declining to refer to the Court of Justice requests for preliminary rulings on the interpretation and validity of Article 47 of Regulation No 1408/71(7) as regards computation of notional amounts payable by way of old-age insurance. It gave two reasons: first, the absence of reasonable doubt as to the proper application of the national and Community rules; and second, the impossibility of raising a point on appeal that had not been raised by the parties at the earlier (suplicaciôn) stage. But three Members of the Court issued a dissenting opinion to the effect that a preliminary ruling should have been requested. (8) Incidentally, a lower court, the Tribunal Superior de Justicia del Pais Vasco, by Orders made on 31 May(9) and 27 July 1994,(10) had referred cases to the Court of Justice for preliminary rulings on matters that were substantially the same as those now raised in the Tribunal Supremo. The Dutch Hoge Raad (Criminal Division) gave judgment on 16 May 1995,(ll) without seeking a preliminary ruling, in a case turning on the compatibility with Article 30 of the EC Treaty of the Dutch Waste Act, which prohibits vehicle demolition establishments from operating without a licence. The Act defines wrecked vehicles in such a way as to exclude damaged vehicles with valid Dutch registration plates and logbooks, so that no licence is required for the storage or processing of such vehicles. Since it is impossible for imported damaged vehicles to satisfy this requirement, the firm being prosecuted alleged that the legislation was contrary to Article 30. The Hoge Raad held that the Act was not contrary to Article 30 as the terms for licensing vehicle demolition firms were no more restrictive for imported vehicles than for Dutch vehicles. Its conclusion was not influenced by the fact that it was impossible to furnish an imported vehicle with a Dutch registration plate and logbook as this was not a term for licensing establishments. (5) (6) (7) (8) (9) (10) (11) Detailed rules implementing these general rules were referred for annulment to the Conseil d'Etat, which applied to the Court of Justice for a preliminary ruling on the interpretation of Directive 83/189/EEC: CE Case 56. 569, order of 4. 12. 1995; ECJ Case C-13/96. Gaceta Juridica de la C. E. Boletin 1995 n° 105, p. 59. Council Regulation (EEC) No 1408/71 of 14 June 1971 on the application of social security schemes to employed persons and their families moving within the Community: OJ L 149, 5. 7. 1971, p. 2. As to the second ground, note that the judgment of the Tribunal Supremo the Court of Justice on predates 14 December 1995 in Case C-312/93 Peterbroeck v Belgium and Joined Cases C-430 and 431/93 Van Schijndel v. Stichting Pensioenfonds. OJC316, 12. 11. 1994, p. 9. OJC386, 31. 12. 1994, p. 7. Officier van Justifie v Autohandel en -sloperij J. R. B. V. , NJ 1995, n° 567. judgments given by the 419 Still in the Netherlands, the Raad van State (Administrative Division) held, on 16 June 1995,(12) that it was not necessary to seek a preliminary ruling from the Court of Justice. The case concerned an appeal by individuals against a country planning decision relating to reinforcement of dikes. The complaints were specifically against the fact that the relevant plan had not been through the environment impact assessment procedure provided for by Directive 85/337/EEC. (13) The Act on which the plan was based, the Deltawet grote rivieren, excludes dike reinforcement works from the Directive's procedure. By decision of 8 March 1995, the Raad van State referred a question to the Court of Justice for a preliminary ruling,(14) namely whether certain dike reinforcement works were within the Directive's definition of ^ canalization and flood-relief works', but in the instant case it decided, without awaiting the Court's ruling, that in principle it was quite possible for the definition to extend to such works. The Raad van State went on to declare that the exception provided for by the Dutch Act was unfounded in relation to Article 1(5) of the Directive, which excluded from the Directive itself projects adopted in detail by specific national legislation: the Act did not describe the relevant dike sections in detail but simply mentioned them. But it did hold that the exception was justified in terms of Article 2(3) of the Directive, whereby Member States may, in exceptional cases, exempt a specific project from the Directive. Its ground was that the projects to which the Deltawet grote rivieren applied were identified with sufficient accuracy, and this was anyway an exceptional case in view of the urgency of the works to be done. Also noteworthy in terms of Article 177 EC was the judgment given by the Raad van State on 7 July 1995(15) in an action brought by a Dutch Member of the European Parliament against the refusal by his country's Minister of Finance to allow him access to minutes of certain meetings of the Council of the European Union. The question was whether the provision of the Council's Rules of Procedure,(16) whereby its deliberations are covered by the obligation of professional secrecy unless the Council decides otherwise,07) took precedence over the Dutch Freedom of Information Act {Wet Openbaarheid van Bestuur). The Raad van State held that this was so. It concluded from a series of cases decided by the (12) (13) (14) (15) (16) (17) C. J. L. de Wit v Bestendige Deputatie Gelderland, AB 1995, n° 384. Council Directive 85/337/EEC of 27 June 1985 on the assessment of the effects of certains public or private projects on the environment: OJ L 175, 7. 7. 1985, p. 40. Case C-72/95, pending. Metten v Minister of Finance, noted in Nederlands Juristenblad 1995, Katem, p. 545, n° 17. Currently, Council Decision of 6 December 1993 adopting the Council's Rules of Procedure: OJ L 304, 10. 12. 1993, p. 1 (Article 5). See Case T-194/94 Carvel and Guardian v Council (Court of First Instance), judgment given on 19 October 1995, not yet reported. 420 Court of Justice that the principle of the primacy of Community law applied to the Rules of Procedure even though they were not in one of the categories listed in Article 189 of the EC Treaty. Having further concluded that primacy was also enjoyed by Community provisions not having direct effect, the Raad van State decided that there was no need to ascertain whether a provision of the Rules of Procedure had such effect. Lastly, it noted that to make rights of access to information about the Council's deliberations subject to the national law of the applicant's Member State would effectively render the confidentiality provisions nugatory. On the subject of preliminary rulings, attention is worth drawing to the judgment given on 11 December 1995 by the Austrian Constitutional Court (Verfassungsgerichtshof)}n) holding that failure to discharge the obligation to refer questions incumbent on courts against whose decisions there is no appeal was a violation of the principle enshrined in Article 83(2) of the Austrian Federal Constitution that nobody may be deprived of access to his proper judges. In an action against a decision taken by the Federal Procurement Office {Bundesvergabeamt) without a request for an interpretation of the relevant provision of Directive 93/37/EEC,(19) the Verfassungsgerichtshof held that the Office was to be treated as a court or tribunal within the meaning of the third paragraph of Article 177 of the EC Treaty. (20) But having regard to the judgment of the Court of Justice in CILFIT}21) it held that on the facts of the case the Bundesvergabeamt had not been in breach of its obligation to refer. 2. Question 2 Research revealed no cases of this type, but there were some cases where interim measures were ordered that had the effect of suspending the application of a Community instrument. In Germany, litigation regarding the common organization of the market in bananas gave rise to a series of decisions concerning interim measures that had the effect of suspending the application of certain aspects of the rules: (a) National proceedings from which Case C-68/95 flowed An importer applied for supplementary import licences for bananas from non-member countries, subject to the import duties applicable to the tariff quota for bananas from non-member countries and non-traditional ACP bananas (ECU 100 per tonne at the time). (18) (19) (20) (21) Case B 2300/95-18, not yet reported. Council Directive 93/37/EEC of 14 June 1993 conceming the coordination of procedures for the award of public works contracts: OJL 199, 9. 8. 1993, p. 54. The Bundesvergabeamt has since applied to the Court of Justice for a preliminary ruling (Case C-44/96). Case 283/81 [1982] ECR 3415. 421 He argued that, as a result of exceptional circumstances, his imports had been running below the usual rate during the reference period as a supplier had defaulted on his contractual obligations and that he faced the imminent risk of bankruptcy if supplementary quantities were not allocated to him. His request for an interim Order was dismissed by the Frankfurt/Main Verwaltungsgericht (Administrative Court). His appeal to the Hessische Verwaltungsgerichtshof (Administrative Appeal Court) also failed. The Verwaltungsgerichtshof based its decision to dismiss the appeal(22) on the conclusion that the measures requested would prejudge the decision on the substance and would deprive Regulation No 404/93(23) of its effect. Ordering such measures would accordingly presuppose a presumption that the Court of Justice would declare the Regulation invalid, although the dismissal of the action for annulment of the Regulation brought by Germany(24) meant that such a declaration was unlikely. The Bundesverfassungsgericht made an Order on 25 January 1995(25) annulling the Verwaltungsgerichtshof s judgment. The Bundesverfassungsgericht held that the decision conflicted with the guarantee that individual rights would be effectively protected against acts of public authorities (Article 19(4) of the Basic Law). It stated among other things its opinion that Regulation No 404/93 offered possibilities for taking account of special situations arising from excessive rigidity in firms' circumstances, so that ordering measures would not necessarily have been the incompatible with Verwaltungsgerichtshof had omitted to look into the question whether the German Government's failure to make use of the possibilities available to it was a failure to protect fundamental rights as secured at Community level. the Regulation/26* And it observed that The case was remitted to the Verwaltungsgerichtshof, which ordered interim measures requiring the German authorities to issue supplementary import licences for approximately 2 500 tonnes of bananas, subject to customs duties at ECU 100 per tonne. This Court also referred to the Court of Justice questions for preliminary rulings on (a) the applicability of certain provisions of Regulation No 404/93 in relation to the GATT and (22) (23) (24) (25) (26) Verwaltungsgerichtshof Hessen, BeschluB vom 23/12/94, 8 TG 3430/94, Europarecht 1995 p. 86-90. Council Regulation (EEC) No 404/93 of 13 February 1993 on the common organization of the market in bananas: OJ L 47, 25. 2. 1993, p. 1. Case C-280/93 Germany v Council [1994] ECR 1-4973. Bundesverfassungsgericht, BeschluB vom 25/01/95, 2 BvR 2689/94 - 2 BvR 52/95, Europarecht 1995 p. 91-95. This was a reference to the Order made by the Court of Justice on 29 June 1993 in Case C-280/93 R Germany v Council [1993] ECR 1-3667. 422 the validity of Commission Regulation No 478/95,(27) and (b) the circumstances in which a national court could order interim measures derogating from a Community Regulation/28* (b) National proceedings from which Case C-l82/95 flowed After using up the quantities thus allocated, the same importer applied to the authorities in Germany for authorization to import a further cargo of bananas without an import licence and without paying entry duties of ECU 850 per tonne pursuant to Article 18(2) of Regulation No 404/93. His appeal against the refusal to act on his application and against Commission Regulation No 478/95 was dismissed without review of the substance by the Bundesverfassungsgericht by Order dated 26 April 1995,(29) on the ground that other redress procedures had not been exhausted and that the ordinary courts had jurisdiction to consider arguments based on the possible inapplicability of Community legislation. The applicant then took his case to the Finanzgericht Hamburg, which ordered interim measures allowing him to import a further 2 500 tonnes or so of bananas without a licence and also put questions for preliminary rulings to the Court of Justice/30* By Order dated 22 August 1995, the Bundesfinanzhof (Federal Tax Court) annulled the interim measures on them/3l) On the ground 8 September 1995, the President of the Court of Justice accordingly suspended the preliminary ruling procedure. there was no legal basis that for (c) National proceedings from which Cases C-364 and C-365/95 flowed The customs authorities demanded payment of duties on the bananas imported without licence. The applicant applied for a stay of execution, which the Hamburg Finanzgericht ordered pending a decision from the Court in Case C-l82/95. (2?) (28) (29) (30) (31) Commission Regulation (EEC) No 478/95 of 1 March 1995 on additional rules for the application of Council Regulation (EEC) No 404/93 as regards the tariff quota arrangements for imports of bananas into the Community and amending Regulation (EEC) No 1442/93: OJ L 49, 4. 3. 1995, p. 13. Reference by Order made on 9 February 1995, Case C-68/95. 2 BvR 760/95, Europâische Zeitschrift fur Wirtschaftsrecht 1995 p. 412-413. Reference by Order made on 19 May 1995, Case C-182/95; cf. Europâische Zeitschrift fur Wirtschaftsrecht 1995, p. 413. Bundesfinanzhof, BeschluB vom 22/08/95, VII B 153, 154, 167, 172/95, Recht der internationalen Wirtschaft 1995 p. 871-873. 423 The Finanzgericht asked the Court the same questions as were asked in Case C-l 82/95/32) This judgment of the Finanzgericht Hamburg was subsequently upheld by the Bundesfinanzhof on 9 January 1996. In the Netherlands, the President of the College van Beroep voor het (Commercial Court) issued a decision in interlocutory Bedrijfsleven proceedings on 24 May 1995(33) suspending execution of Commission Decision 95/119/EC (imposing a general ban on imports of fishery products originating in Japan)/34* Applying the criteria established by the Court of Justice on 21 February 1991(35) even though the case concerned national measures implementing a Regulation, the President gave a detailed analysis of the Commission Decision. His conclusion was that there were serious doubts as to the validity of the Community instrument since the report by the Community experts, on which the ban was based, did not unequivocally justify a total import ban. The stay of execution of Decision 95/119/EC was conditional on the Dutch authorities undertaking all requisite checks to establish that the relevant products did not have such defects as to endanger human and animal health and safety. (36) The President also the validity of Decision 95/119/EC/37* sought a preliminary ruling on the Federal Government In the context of decisions concerning the validity of provisions of Community law, attention may also be drawn to the judgment given by the Bundesverfassungsgericht on 22 March 1995,(38) which settled a dispute regarding between Directive 89/552/EEC/39* The Constitutional Court confirmed that there had been an encroachment on the powers of the Lander in certain respects, as the Federal Government had not properly defended their interests in the Council, but it dismissed as inadmissible an application for a declaration that the Directive was accordingly in one of the applicant Lander. and certain Lander inapplicable (32) (33) (34) (35) (36) (37) (38) (39) References by Orders made on 22 and 27 September 1995, Joined Cases C-364 and C-365/95. These Orders do not put new questions but refer to those put in Case C-l82/95. Affish B. V. v Rijksdienst voor de keuhng van Vee en Vlees, AB 1995, n° 443. O J L 8 0, 8. 4. 1995, p. 56. Joined Cases C-l43/88 and C-92/89 Zuckerfabhk [1991] ECR 415. But cf. a decision of an English court which did not respond to doubts as to the validity of the same Commission Decision by staying proceedings (High Court of Justice, Queen's Bench Division, The Queen v Secretary of State, ex parte Macrea Seafoods Ltd, judgment given on 12 June 1995. Case C-l83/95, pending. Bundesverfassungsgericht, Urteil vom 22/03/95, 2 BvG 1/89, Entscheidungen des Bundesverfassungsgerichts Bd. 92 p. 203-245, Europâische Zeitschrift fur Wirtschaftsrecht 1995 p. 277-284. Council Directive 89/552/EEC of 3 October 1989 on the coordination of certain provisions laid down by law, regulation or administrative action in the Member State concerning the pursuit of television broadcasting activities: OJ L 298, 17. 10. 1989, p. 23. 424 3. Question 3 On 12 April 1995(40), the Belgian Conseil d'État made an interlocutory Order suspending implementation of an administrative decision withholding approval for an alarm system pursuant to the Royal Decree of 14 May 1991,(41) on the ground that the Commission had not been notified of the Decree by the procedure of Article 8 of Directive 83/189/EEC/42* Failing notification to the Commission, the Conseil d'Etat concluded that the Decree could not have effect. This is an interesting case in that the Conseil d'Etat reached the conclusion without referring a request for a preliminary ruling on the direct effect of the Directive even though, in the same applicant's action for annulment, the President of the Liège commercial court(43) had made an Older on 20 June 1994 seeking preliminary rulings on the direct effect of the Directive and the obligation for the national court to decline to apply the national technical standard if the Commission had not been notified of it On 30 March 1995(44) the Italian Constitutional Court clarified and even extended the scope of the important principle, established in its judgment (No 384) of 7 November 1994,(45) that the Court has jurisdiction to annul regional legislation that is contrary to Community law where the central Government brings an action in the Court against a piece of regional legislation to prevent its promulgation by the President of the Region and its entry into force. The Italian Government attacked legislation enacted by the Sicilian Region to extend eligibility for certain grants to fishing funis licensed to operate in sea areas within its jurisdiction; the Government Commissioner to the Sicilian Region argued that this constituted a new State aid scheme within the meaning of Article 92 of the EC Treaty, and that the draft legislation should have been notified pursuant to Article 93 to enable the Commission to scrutinize it for compatibility with Community law In the grounds for its judgment the Court first held that allowing regional legislation presumed incompatible with Community law to enter into force and then issuing a preliminary constitutional ruling lequiring national courts and authorities to refrain from giving effect to it would have been an " insufficient assurance'forthe discharge of the obligation incumbent on the Italian State pursuant to Article 5 of the Treaty lo ' abstain from any measure which could jeopardize the attainment of the objectives' of the Community. It followed, as the Court held, that it was both useful and (40). Conseil d'État, Case 52. 788, judgment given on 12 April 1995. (41) Royal Decree of 14 May 1991 determining the procedure for approving alarm systems to which the Act of 10 April 1990 on surveillance and security firms and internal security set vices applies. Cf. footnote 2. Case C-194/94, pending. Case 94, Rivista italiana di diritto pubblico comunilario, 1995, p. 559. 12th report: OJ C 254, 29. 9. 1995, p 166 (42) m (44) (45) 425 indeed necessary to act in advance to avert conflicts between the provision of Community law and regional legislation incompatible with it by declaring the regional legislation unconstitutional prior to promulgation by the President of the Region in a direct action available to the Government under Article 127 of the Constitution against regional acts liable to breach constitutional rules sharing powers between central and regional levels. The Constitutional Court went on to extend the argument to cases where a Region attacked legislation enacted by the central State; this could only occur where the central legislation was already in force, as the regions had no redress against legislation enacted by the two Houses of Parliament but not yet promulgated by the President of the Republic. Consequently, the Court acknowledged that the Regions were entitled to attack central State legislation on grounds of alleged incompatibility with Community law, provided, of course, the applicant Region could show cause in the form of a possible violation of constitutional rules conferring legislative power on the Regions. On 13 June 1995(46) the Italian Constitutional Court gave a judgment on the conformity with Articles 3 and 10 of the Constitution*47* of legislation*48* requiring universities to appoint foreign-language assistants exclusively on annual employment contracts. In Joined Cases 269, 331 and 332/91,(49) the Court of Justice had held that Article 48 required foreign- language assistants to be given open-ended employment contracts where they were appointed to cover x constant needs' for language teaching (paragraph 17). The Constitutional Court recalled that the provision implicitly censured by the Court of Justice was the same Article 28 of Presidential Decree No 382/1980 now referred to it for constitutional review, and that foreign-language assistants to which Alloué II applied were workers from other Member States whereas, in the principal action the constitutional review related to assistants from non-member countries. The Court went on to hold that there was a direct link between the situation of the assistants concerned by the Court of Justice case and the situation of the other assistants in that the work they performed in Italian universities by all assistants of this type was the same. It followed that the principle of equal treatment enunciated by the Court of Justice in Alloué II should first be extended to foreign-language assistants enjoying Italian (46) (47) (48) (49) Case 249, II Consiglio di Stato, 1995, p. 954. Article 3 of the Italian Constitution sets out the principle that all citizens are entitled to equal treatment before the law. The second paragraph of Article 10 provides that "* the legal situation of foreigners shall be governed by legislation complying with international rules and Treaties*. The international instrument in this case was ILO Convention No 143 of 1975 (equality of opportunity and treatment for migrant workers), ratified by Italy by Act No 158 of 10. 4. 1981. Article 28 of Decree of the President of the Republic No 382 of 11. 7. 1980. [1993] ECR 4309. 426 nationality by birth or acquisition ^ to avoid unwarranted discrimination' contrary to Article 3 of the Constitution. The same principle of equal treatment, and with it the conversion of employment contracts of limited duration (one year) into open-ended contracts therefore had to be applied to assistants with the nationality of a non-member country, not on the basis of a constitutional provision but of section 1 of Act No 943/1986, which conferred the same rights on non- Community workers residing in Italy as on Italian workers. The Austrian Verfassungsgerichtshof (Constitutional Court )(50) had an action before it for annulment of a provision of subordinate legislation regulating the distribution of mineral water to maintain the ban on containers other than glass bottles until 1 January 1997. By Order made on 12 December 1995, it declared that national courts were under an obligation to interpret national law in conformity with Community law, and in particular with enforceable directives. It accordingly interpreted the provision referred in such a way that the maintenance of the ban on marketing mineral waters in containers other than glass bottles could not be applicable by reason of incompatibility with Commumty law. to order interim measures In Denmark, the Hejesteret (Supreme Court) gave a judgment on 11 May 1995(51) declining suspending construction of a bridge between Denmark and Sweden on the ground that there was no violation of Directive 85/337/EEC {the same Directive was in issue in the Dutch Raad van State judgment of 16 June 1995, considered above under Question 1). The arguments by the applicant (Greenpeace) were based on the Directive's requirement that certain information on the environmental impact of such projects must be made public before work can begin. The Court confirmed explicitly that the conditions to be met if interim measures are to be ordered must be ascertained in the light of Court of Justice cases, from which it emerged that the national courts must order them if national legislation is in conflict with Community law. The interesting point in relation to Community law is the explicit acknowledgement of an obligation to enforce Community law where the national legislation conflicts with it. On 21 February the French Court of Cassation (Commercial Division)*52* gave a valuable judgment on the recognition of the primacy of Community law in the national courts. The case began with litigation concerning advertising for French spirituous beverages, in which the Court of Justice gave two judgments for the Commission against France on 27 February and 10 July 1980, declaring (50) (51) (52) Case V 136/94-10, not yet reported. Case I 118/1995, Miljoorganisationen Greenpeace Danmark v Trafikministeriet. Société United Distillers France and others v Agent judiciaire du Trésor public and others. 427 that Articles L. 17 and L. 18 of the Code sur les débits de boissons, governing advertising for spirits, were contrary to the Treaty. The Ministry of Justice then issued a Circular on 10 October 1980, requiring the prosecution service to take proceedings against all advertising for imported spirits in breach of Articles L. 17 and L. 18. On the basis of Article L. 781-1 of the Code de l'organisation judiciaire, Article 171 of the Treaty and the two judgments given by the Court of Justice, the Court of Cassation declared that "* the effect of Community law is that national authorities are fully prohibited from applying a national provision that has been found to be incompatible with the Treaty'. It concluded that ^ the offending circular. is in conflict with the law as declared by the Court. and its adoption is seriously flawed'. In a judgment given on 23 June 1995, the French Conseil d'État (Sectional composition)*53* affirmed that in the absence of transposai of a Directive1 by the State, the State could not rely on its direct effect in relation to an individual. This follows the line set by the Court of Justice inMarshall(54) The provision in issue in the instant case was Article 3(1) of Directive 89/105/EEC,*55* which allows the time prescribed for official examination of a request from a firm to be extended. Having failed to transpose the Directive, the authorities could not themselves seek to enjoy the benefit. In the United Kingdom, the plaintiffs in R v Secretary of State for Employment, ex parte Seymour-Smith and Perez were employed persons dismissed after the two-year qualifying period of continuous employment required by the Employment Protection (Consolidation) Act 1978 for the grant of compensation for unfair dismissal by an Industrial Tribunal. They made an application for judicial review of the Unfair Dismissal (Variation of Qualifying Period) Order 1985, which amended the 1978 Act by raising the qualifying period from one to two years. In particular, they argued that the Order of 1985 constituted indirect discrimination as there were fewer women than men capable of qualifying. The High Court dismissed the case. The Court of Appeal*56* held that the equal treatment principle of Directive 76/207/EEC*57* precluded all forms of direct or indirect discrimination based on sex. Even if Community law required a substantial (53) (54) (55) (56) (57) SA Lilly France. Case C-l52/84 [1986] ECR 723. Council Directive 89/105/EEC of 21 December 1988 relating to the transparency of measures regulating the prices of medicinal products for human use and their inclusion in the scope of national health insurance schemes: OJ L 40, 11. 2. 1989, p. 8. Court of Appeal, Civil Division, judgment of 31 July 1995, Regina v. Secretary of State for Employment, ex parte Seymour-Smith and Perez, Mure, James, Journal of the Law Society of Scotland 1995, p. 417-421. Council Directive 76/207/EEC of 9 février 1976 on the implementation of the principle of equal treatment for men and women as regards access to employment, vocational training and promotion, and working conditions: OJ L 39, 14. 2. J976, p. 40. 428 difference, exceeding the de minimis threshold, in the number or percentage of persons of the same sex in the category that was privileged or disadvantaged in relation to the other, excessive importance should not be attached to the word ^ substantial'. The evidence showed that, in the period preceding the plaintiffs' dismissal, there was a substantial difference between the numbers and percentages of men and women among both those who had and those who had not satisfied the qualifying period of two years required by the 1985 Order. As the impact of the qualifying period was more harmful to women, the Court of Appeal, having reviewed a number of cases decided by the Court of Justice, decided that it was incompatible with Directive 76/207/EEC unless objective grounds were given for it. The Secretary of State had failed to demonstrate that the 1985 Order had improved employment prospects and the Court of Appeal concluded that its discriminatory effects were unjustified. The case has since been taken to the House of Lords. Still in the United Kingdom, Fitzgerald and Others v Williams and Otherst5^ concerned the impact of Community law on Order 23, Rule 1, of the Rules of the Supreme Court, whereby the plaintiff may be ordered to give security for costs where he is habitually resident outside the jurisdiction. The question had repeatedly been raised in the English courts, and in 1990 the Court of Appeal, in Berkeley Administration Inc v McClelland, held that Order 23 was not contrary to Article 7 of the EC Treaty since it was based specifically on residence, irrespective of nationality. In the instant case, the High Court had ordered Irish plaintiffs resident in Ireland to provide security in the amount of £100 000. On appeal, the plaintiffs asked the Court of Appeal to review the rule in Berkeley in the light of the judgment given by the Court of Justice in Mund and Fester v Hatrex Intemationaal Transport}5^ The Court of Appeal studied that judgment and decided that as a result of Articles 6 and 220 of the EC Treaty an English court could never exercise its discretion under Order 23 in such a way as to require a plaintiff having the nationality of and residing in another Member State signatory to the Brussels Convention to provide security, at any rate in the absence of sound evidence of the existence of serious enforcement difficulties in such Member State. In the instant case there was no need to consider whether that reservation was valid in relation to Community law. There were no problems of enforcement in Ireland and the plaintiffs should not have been required to give security. (58) (59) Court of Appeal, Civil Division, judgment of 20 December 1995 /. Fitzgerald and others v Willams and others - 2. O'Regan and others v Same. Case C-398/92 [1994] ECR 1-467. The Court of Justice held that Article 7 of the EEC Treaty, read with Article 220 and with the Brussels Convention, precluded national mles of civil procedure which, where a judgment is to be enforced within national territory, authorizes attachment orders only where it is probable that, in their absence, enforcement will be impossible or substantially more difficult, whereas, for a judgment to be enforced in another Member State, it is authorized simply because enforcement is to be ordered in a foreign jurisdiction. 429 (Verfassungsbeschwerde) arguing By Order made on 31 May 1995*60*, a Chamber of the German Bundesverfassungsgericht dismissed as inadmissible an action by an the allocation of individual European Parliament seats was contrary to the principle of German constitutional law that the votes of electors should carry approximately equal weight; the German electorate represented about 22% of the Union's population but German Members occupied only 16% of the seats in the European Parliament. that On the basis of its own judgment of 12 October 1993 on the Maastricht Treaty,*61* the Chamber highlighted the differences between the respective roles of the European Parliament and the national Parliaments. The democratic legitimacy of the exercise of powers conferred on the Communities lay primarily in the national Parliaments; the European Parliament had a secondary function. It was consequently at national level that voters' equality ought to be secured. The Court added that the weighted distribution of European Parliament seats was warranted by the fact that the Member States were still, as States, equal subjects of international law independently of their citizens. The system did, however, take account of the fact the Union was more than the mere sum of its Member States by allowing population levels to influence the number of Members of the European Parliament. In McClean & Tate}62) the Irish High Court acknowledged that the plaintiffs could recover compensation from the State for damage sustained by reason of failure to transpose a directive. Ireland was required to transpose Directive 79/7/EEC,*63* but the High Court considered that it had done so properly only in 1992, when provisions enacted in 1986 and preserving certain forms of discrimination against married women were repealed. The Court held that married women who had suffered discrimination regarding unemployment benefits could demand that the State make good their loss subject to the rules governing the time allowed for appeals. (60) (61) (62) (63) 2 BvR 635/95; Europâische Zeitschrift fur Wirtschaftsrecht 1995 p. 748 (summary). Entscheidungen des Bundesverfassungsgerichts Bd. 89 p. 155-213. Joined Cases McClean & Tate v Min. for Social Welfare, Ireland and the A. G. ; Robinson & Others v Min. for Social Welfare, Ireland and the AG. , High Court (Ireland), judgment given on 3 February 1995. Council Directive 79/7/EEC of 19 December 1978 of 19 December 1978 on the progressive implementation of the principle of equal treatment for men and women in matters of social security: OJ L 6, 10. 1. 1979, p. 24. 430 in the light of Steenhorst- The High Court, interpreting Emmott^ et Johnson,(66) held that national provisions concerning the time Neering^ allowed for appeals were compatible with Community law as they in no way prejudiced the exercise of rights conferred in the Community legal order but merely limited the period prior to the presentation of the appeal for which arrears were payable - to six years as it happened. (64) *65) (66) Case 208/90 [1991] ECR 1-4269. Case C-338/91 [1993] ECR 1-5475. Case C-410/92 [1994] ECR 1-5483. 431 ISSN 0254-1475 COM(96) 600 final DOCUMENTS EN 06 Catalogue number : CB-CO-96-260-EN-C ISBN 92-78-05147-0 Office for Official Publications of the European Cornmunities L-2985 Luxembourg

Proposal for a COUNCIL REGULATION (EC) providing for additional payments to be made in 1996 with the premia referred to in Article 4b(6) and Article 4d(7) of Council Regulation (EEC) No. 805/68 on the common organisation of the market in beef and veal and amending Article 4i(4) of that Regulation

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COMMISSION OF THE EUROPEAN COMMUNITIES * •tr -tr « Brussels, 29. 05. 1996 COM(96) 242 final 96/0148 (CNS) Proposal for a COUNCIL REGULATION (EC) providing for additional payments to be made in 1996 with the premia referred to in Article 4b(6) and Article 4d(7) of Council Regulation (EEC) No. 805/68 on the common organisation of the market in beef and veal and amending Article 4i(4) of that Regulation (presented by the Commission) Explanatory Memorandum The announcement on 20th March 1996 that 10 cases of Creutzfeld-Jacob Disease in the United Kingdom could have been caused by exposure to the Bovine Spongiform Encephalopathy (BSE. ) before 1988, when measures were introduced to ban the use for food of special bovine offals, caused on immediate disturbance in beef markets not only in the United Kingdom but also in other member states where BSE. is rare or unknown. A series of measures have been adopted to improve consumer protection, to restore confidence and to support the beef market. Although these measures have had a considerable and positive effect, the beef market remains depressed. Once the longer term impact on the change in consumer behaviour can be assessed, the Commission intends to bring forward proposals designed to adapt beef production better to consumer demand. These proposals will be complemented by appropriate proposals on labelling and promotion. In the meantime there is a general recognition of the need to provide short term and immediate income support to beef producers. Following intensive discussions in the Council, the Commission has undertaken to provide an appropriate proposal to this effect. The discussions in the Council revealed a general recognition that this measure needed to meet the following criteria: (a) (b) It must be capable of being applied urgently. This implies that, so far as possible, it should be based on the existing data and administrative structures which exist to apply the premia already foreseen in the beef regime. Nevertheless, the measure should provide a degree of flexibility to allow member states to address certain specific problems which are not covered by a measure linked to the existing premia. (c) It must respect the Union's budgetary possibilities. As regards the amount of aid to be granted, the Commission considers that the most appropriate approach is to look at the impact of the price reduction which has taken place since 20th March as a result of the BSE. crisis and to project this reduction forward until the end of this year. The Commission recognises that such an estimate cannot be precise. The market disturbance has made the measurement of current prices difficult and there are conflicting views on the likely course of prices for the rest of this year. The best estimate the Commission is able to make is that the price reduction will lead to a loss of revenue this year of the order of 650 mecu. This figure also corresponds to the best estimate the Commission can make of the room for manoevre within the 1996 budget in the light of conjunctural savings foreseen in other sectors, net of the additional costs which are already being incurred in the beef sector. As regards the method of making the payment, the Commission considers that the most appropriate instrument by which the major part of this aid could be provided is the existing male animal and suckler cow premia. On this basis it proposes supplements to the premium for suckler cows of 25 ecu and to the male animal premium of 21 ecu, the difference between the two supplements reflecting the somewhat greater fall in the price of calves sold by the suckler cow producers than has been observed in the price of young male animals. In order to allow payment to be made as soon as possible, the Commission proposes that these supplements should be granted on the bases of data already in the possession of member states with regard to payment of the 1995 premia. But in cases where producers subsequently claim fewer premia in respect of 1996, part of the payments made now should be recovered and the sums so recovered should be distributed to those producers whose validated claims in respect of 1996 are higher than the claims in respect of 1995. The cost of this measure is estimated at 534 mecu (B). The Commission proposes that the balance between this figure and the total of 650 mecu (116 ecu (B) equivalent to 112. 1 ecu (A)) should be distributed to member states on the basis of the size of their non dairy cattle herds as published by Eurostat. These sums will be available for the use of member states as a contribution to national aid schemes in cases where, in the judgement of member states, some complementary aid is needed to help to resolve problems not fully addressed by the increase in the premia. The criterion for the acceptability of such national aid schemes is that they must not exceed the estimated income loss of the beneficiaries. At the same time as making this proposal, the Commission proposes a technical amendment to the calf processing scheme. This scheme, which has been available as an option for member states since 1992, has not been used by any member states until recently, when it began to be applied by the United Kingdom and Portugal because of the abrupt reduction in demand for veal calves. Under current provisions, the scheme applies only to calves not more than 10 days of age. In certain circumstances this age limit can be difficult to respect and it is proposed to give the Commission power to allow a slightly higher age, subject to appropriate controls. In conclusion, the Commission stresses the practical and budgetary urgency of this proposal. The proposed increase in the male animal and suckler cow premia and the contribution to complementary national aid schemes will only be eligible for EAGGF funding in respect of payments made during the current budget year. "2- COUNCIL REGULATION (EC) No. /96 of providing for additional payments to be made in 1996 with the premia referred to in Article 4b(6) and Article 4d(7) of Council Regulation (EEC) No. 805/68 on the common organisation of the market in beef and veal and amending Article 4i(4) of that Regulation THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty of the European Community, and in particular Articles 42 and 43 thereof, Having regard to the proposal from the Commission1, Having regard to the opinion of the European Parliament2, Whereas Regulation (EEC) No. 805/683 provides for the payment of premia in respect of male bovine animals and of suckler cows, designed to compensate producers for the consequences of a reduction in the intervention price at the time of reform of the sector; Whereas the market for beef has been seriously disturbed as a result of consumer concerns in relation to bovine spongiform encephalopathy (B. S. E. ) and with a view to assuring the future of the sector, additional resources shall be made available; whereas in order to enable rapid payment and to achieve the desired economic effect, such resources shall generally be made available in the form of payments in addition to the premia due in respect of animals eligible in the 1995 calendar year, as the necessary data is already available; whereas, 1 OJ No 2 OJ No 3 OJ No. L 114, 28. 6. 1968, p. 24. Regulation last amended by 3 however, producers shall only be entitled to such additional payments to the extent that the number of eligible animals for which they are entitled to premium in respect of the 1996 calendar year is not reduced as compared with the 1995 calendar year; Whereas overpayments shall be set off against a producer's entitlement to premia in respect of the 1996 calendar year or, where this is not possible, repaid to the competent authority of the Member State concerned; whereas the sum of money represented by such overpayments shall be allocated to producers whose entitlement to premia in respect of the 1996 calendar year is greater than that in respect of the 1995 calendar year, pro rata to their additional entitlement; Whereas the additional payments to producers who receive a premium may not, depending on the particular production structure of a Member State, address fully the problems of certain producers; whereas Member States should be given the possibility to make payments to such producers; whereas the amount of money available to a Member State for this purpose should reflect the size, of its bovine herd, excluding dairy cows; Whereas Regulation (EEC) No. 805/68 provides for a processing premium payable in relation to male calves removed from production before they exeed 10 days old; whereas experience has shown that the period between the time when a calf may be moved off a farm and its required removal from production is extremely short, whereas it should therefore be made possible for the Commission to allow an increase in the 10 day age limit in certain circumstances; HAS ADOPTED THE FOLLOWING REGULATION: Article 1 1. A producer whose entitlement to beef special premium under Article 4b of Regulation (EEC) No. 805/68 in respect of animals kept in the 1995 calendar year is established ^ shall, subject to the provisions of paragraph 3, be entitled to an additional ECU 21 for each premium which he receives. The additional payment shall, where possible, be made together with the payment of the premium referred to in Article 4b(6) 2. A producer whose entitlement to suckler cow premium under Article 4d of Regulation (EEC) No. 805/68 in respect of animals kept in the 1995 calendar year is established shall, subject to the provisions of paragraph 3, be entitled to an additional ECU 25 for each premium which he receives. The additional payment shall, where possible, be made together with the payment of the premium referred to in Article 4d(7). 3. Entitlement to the additional payments referred to in paragraphs 1 and 2 shall be subject to the establishment of entitlement to premium for at least the same number of animals retained in the 1996 calendar year as that for which the producer concerned received additional payments in respect of the 1995 calendar year. 4 Member States shall take all the necessary measures to ensure that when the additional payments are made to producers they are made aware of the fact that their entitlement to those payments is subject to the condition set out in paragraph 3. Article 2 1 Where the number of animals for which entitlement to premia is established in relation to the 1996 calendar year is less than that for which a producer received additional payments under Article 1, the part of the additional payments to which he was not entitled shall be set off against his entitlement to premia under Regulation (EEC) No. 805/68 for the 1996 calendar year. n Where a producer does not make an application for premia under Regulation (EEC) No. 805/68 in respect of the 1996 calendar year or where the premia to which he is 5 entitled are insufficient to make the set off referred to in paragraph 1, he shall be required to repay the additional payments made under Article 1 to which he was not entitled. Article 3 Producers whose entitlement to premia in respect of the calendar year 1996 relates to more animals than their entitlement in respect of the calendar year 1995 shall be eligible for further additional payments. Such payments shall only be made: to the extent that additional payments made to producers who were not eligible for them are repaid or recouped, and pro rata to the additional number of premia received in respect of the 1996 calendar year. Article 4 Member States may : (a) use the amounts set out in the Annex to make payments to producers in the beef and veal sector who are facing acute problems as a result of the market situation, which are not fully addressed by the measures referred to in Articles 1 - 3; and (b) pay national aid to such producers in addition to the payments under point (a) to the extent that such national aid does not lead tc the estimated income loss being exceeded. 6? Article 5 The conversion rate to be applied shall be the agricultural rate valid on 1 January 1996. Article 6 The measures introduced by this regulation, with the exception of the national aid referred to in Article 4, shall be deemed to be intervention intended to stabilize agricultural markets within the meaning of Article 3 (1 ) of Regulation (EEC) n° 729/70. The Community shall finance the expenditure incurred by Member States in relation to the payments referred to in Article 1 and Article 4 (l)(a) only where such payments are made by them by 15 October 1996 at the latest. Article 7 In Article 4i (4) of Regulation (EEC) No. 805/68 the following indent shall be added: "- may, on the basis of a duly justified application setting out adequate control measures to be carried out, authorize a Member State to pay the premium referred to in paragraph 1 in respect of animals withdrawn from production before exceeding the age of 20 days. " Article 8 Member States shall take all the necessary measures to ensure compliance with the provisions of this Regulation. Article 9 Any detailed rules necessary for the application of this Regulation shall be adopted in accordance with the procedure set out in Article 27 of Regulation (EEC) No. 805/68. ? Article 10 This Regulation shall enter into force on the day of its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at For the Council The President 7 ANNEX Amounts referred to in Article 4 (a) ECU (millions) Belgium Denmark Germany Greece Spain France Ireland Italy Luxembourg Netherlands Austria Portugal Finland Sweden United Kingdom 4,5 2,5 19,3 0,7 7,7 29,0 9,5 9,0 0,3 5,0 2,9 1,7 1,4 2,3 16,3 <) BUDGET HEADING : B1 -21 APPROPRIATIONS: ECU 5 458 million TITLE: Council Regulation providing for additional payments to be made in 1996 with the premia referred to in Article 4 b (6) and Article 4 d (7) of Council Regulation (EEC) No 805/68 on the common organisation J LEGAL BASIS: Article 43 of the Treaty AIMS OF PROJECT: Emergency income support for beef producers FINANCIAL IMPLICATIONS 5. 0. EXPENDITURE - CHARGED TO THE EC BUDGET (REFUNDS/INTER VENTION) - NATIONAL ADMINISTRATION - OTHER 5. 1. REVENUE - OWN RESOURCES OF Till- EC (LEVIES/CUSTOMS DUTIES) - NATIONAL 5. 0. 1. 5. 1. 1. s i ESTIMATED EXPENDITURE ESTIMATED REVENUE METHOD OF CALCULATION: PERIOD OF 12 MONTHS ECU million CURRENT FINANCIAL YEAR (96) ECU million 650 FOLLOWING FINANCIAL YEAR (97) ECU million 1998 1999 2000 2001 10 274 239 suckler cows 12 478 897 male bo vines Supplementary payments x ECU 25/hcad * 1. 030 (DR) -- x ECU 21/head * 1. 028 (DR) = 112. 1 Mio ECU (A) x 1. 030 (DR) ECU 265 million (II) ECU 269 million (H) ECU 319 million (H) •CU650 million (IÎ) 6. 0. 6. 1. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? IS A SUPPLEMENTARY BUDGET NECESSARY? 6. 3. WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? OBSERVATIONS: This measure can be funded within the guideline for 1996. NO NO YES NO ID s^nnnnnii ISSN 0254-1475 COM(96) 242 final DOCUMENTS EN 03 Catalogue number : CB-C096-266-EN-C ISBN 92-78-05213-2 Office for Official Publications of the European Communities L-2985 Luxembourg Y) ^ ^ ^ ^ ^ ^ ^u

Proposal for a COUNCIL REGULATION (EC) extending the period during which transitional measures may be adopted under Article 3 of Regulation (EC) No 3290/94 on the adjustments and transitional arrangements required in the agricultural sector in order to implement the agreements concluded during the Uruguay Round of multilateral trade negotiations

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 29. 05. 1996 COM(96) 233 final Proposal for a COUNCIL REGULATION (EC) extending the period during which transitional measures may be adopted under Article 3 of Regulation (EC) No 3290/94 on the adjustments and transitional arrangements required in the agricultural sector in order to implement the agreements concluded during the Uruguay Round of multilateral trade negotiations (presented by the Commission) EXPLANATORY MEMORANDUM The Community's undertakings in the agricultural sector under the Uruguay Round negotiations were essentially implemented by Council Regulation (EC) No 3290/94. Article 3 of that Regulation provides that the Commission, acting according to the management committee procedure, may, up to 30 June 1996, adopt the measures necessary to facilitate the switch-over from the old to the new arrangements and that these measures may not apply beyond that date. The Commission has used that power to ensure a smooth transition to the arrangements introduced as a result of the Uruguay Round in the common market organisations concerned. It also used Article 3 to ensure that the undertakings entered into by the Community in certain preferential agreements with third countries (for example, the Lomé Convention, association agreements with Mediterranean countries, etc. ) were respected pending the adjustment of those agreements to the results of the Uruguay Round negotiations. Some of those agreements are currently being adjusted, but the process is unlikely to be completed before 30 June 1996, so the Council is requested to extend by one year the period during which the Commission may adopt transitional measures. Proposal for a COUNCIL REGULATION (EC) No /96 extending the period during which transitional measures may be adopted under Article 3 of Regulation (EC) No 3290/94 on the adjustments and transitional arrangements required in the agricultural sector in order to implement the agreements concluded during the Uruguay Round of multilateral trade negotiations THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 3290/94 of 22 December 1994 on the adjustments and transitional arrangements required in the agricultural sector in order to implement the agreements concluded during the Uruguay Round of multilateral trade negotiations1, and in particular Article 3(2) thereof, Having regard to the proposal from the Commission, Whereas Article 3 of Regulation (EC) No 3290/94 authorises the Commission to adopt the measures required to facilitate the switch-over from the arrangements existing before implementation of the results of the Uruguay Round negotiations to those resulting from the adjustments to agricultural legislation provided for in the above-mentioned Regulation; whereas such measures may only be adopted up to 30 June 1996 and may not apply beyond that date; whereas it transpires that certain matters which are currently regulated by transitional measures cannot be settled definitively before the above date; whereas these matters concern in particular certain arrangements entered into with third countries; whereas it is therefore necessary to extend by one year the period during which the Commission may adopt transitional measures, HAS ADOPTED THIS REGULATION: 1 OJ No L 349, 31. 12. 1994, p. 105. 3 Article 1 The period laid down in Article 3(2) of Regulation (EC) No 3290/94 is hereby extended to 30 June 1997. Article 2 This Regulation shall enter into force on the day of its publication in the Official Journal of the European Communities. It shall apply from 1 July 1996. fhis Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council ISSN 0254-1475 COM(96) 233 final DOCUMENTS 11 03 Catalogue number : CB-CO-96-244-EN-C ISBN 92-78-04496-2 Office for Official Publications of the European Communities L-2985 Luxembourg à

Proposal for a COUNCIL REGULATION (EC) establishing a European Agency for Veterinary and Phytosanitary Inspection

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ft J ^ I ^ JK iïftrt1!!^ * * * ** * * * ** COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 29. 05. 1996 COM(96) 223 final 96/0143 (CNS) Proposal for a COUNCIL REGULATION (EC) establishing a European Agency for Veterinary and Phytosanitary Inspection (presented by the Commission) EXPLANATORY MEMORANDUM I. Responsibilities involved For the purposes of completion of the internal market all rules in the veterinary field (including animal husbandry and animal protection) and the plant-health field were harmonized at Community level. The need was expressed at the same time for these provisions to be applied effectively and uniformly so that: protection of public, animal and plant health would in fact be harmonized; competition would not be distorted by trade restrictions; and the necessary climate of confidence would be fostered for liberalization of trade in animals and products of animal origin. The Commission was accordingly given responsibility for monitoring uniform application of the Community rules by means of inspection on the spot: in Member States, in order to ensure that Community legislation was being correctly applied and veterinary/plant-health controls were properly carried out; in third countries wishing to export to the Community, to check that the requirements of Community veterinary and plant-health legislation were being met. The work of the Commission's veterinary inspection service, set up in 1983, was therefore extended to the whole field of animals, products of animal origin, plants and products of plant origin and to preparation of decisions for adoption by the Commission in follow-up to its inspection work. H. Establishment of the Office of Veterinary and Phytosanitary Inspection and Control (OVPIC) The importance of the tasks entrusted to the Commission and the timetable set for establishment of the internal market led it to establish the OVPIC (decision of 19 December 1991). Its main fields of inspection so far are: live animals (cattle, pigs, sheep, goats and horses); fresh meat (red and poultry); hormone use; fishery products; animal transport (welfare); veterinary and plant-health controls on entry into Community territory; plant-health quarantining; organisms harmful to plants and plant products; surveillance of protected phytosanitary zones. Further expansion is planned so that all areas falling within the scope of Community legislation are covered. At the Brussels European Council on 29 October 1993 the representatives of the Member States' Governments decided that the OVPIC would be located in Ireland, in a town to be decided by the Irish Government. The site of Grange was announced in this context. HI. Purpose of Phytosanitary Inspection setting up a European Agency for Veterinary and It is clear from what has already been achieved and given future expansion plans that the present structures must be reinforced if proper guarantees are to be given of protection of public, animal and plant health covering the full range of animals, plants and products of animal and plant origin. Conversion of the OVPIC Phytosanitary Inspection would: into a European Agency for Veterinary and develop the principle of its inspectors' autonomy and thus enhance the credibility of their work. The specific tasks of an inspection service differentiate it from other Commission departments. Highly specialized personnel, with the autonomy and authority needed for tasks of this type, are an indispensable requirement of any inspection service and it is important to this end that they belong to a service with its own identity; allow for the deployment within a short space of time of the number of inspectors needed to cover all areas harmonized at Community level; this is not possible in the present situation; adjust the OVPIC's structure for its move to Ireland, a political decision of the Council. Administrative and financial autonomy would permit the Community inspectorate to preserve the effectiveness and rapidity of action required particularly in emergency situations possibly requiring adoption of protective measures by the Commission. IV. Tasks and structures of Agency It is important to note that the Agency would be in charge of on-the-spot checks and assessment in Member States and third countries and reporting its findings to the Commission. This work would not be duplicated by that of Commission experts. , Its activities could extend to other work entrusted to it by the Commission. The Commission would therefore retain the competences in relation to legislation such as drafting and follow-up of decisions which it alone has the power to exercise. The Agency's mission as defined, if it is to be adequately achieved, presupposes a very substantial reinforcement of the number of personnel actually available; the activities of the Agency would in effect encompass sectors which the OVPIC covers only partially or not at all, owing to insufficient staff numbers. The Agency would be run by a Management Board consisting of representatives of the Member States, the Commission and scientific experts and by a Director responsible inter alia for ensuring proper implementation of the programmes set by the Management Board. The Agency's income would, without prejudice to other resources, b e j% of the fees that under Community rules should be charged by Member States for veterinary inspections, plus (if needed) a Community subsidy. It is estimated that for the first year of operation the Agency's costs (40 posts of which 30 inspectors) would be covered in full by a Community subsidy pending establishment of a fee transfer system. The subsidy would be gradually reduced in future years as it was replaced by the Agency's own resources. The Agency's status would guarantee the necessary independence of its staff. Proposal for a COUNCIL REGULATION (EC) establishing a European Agency for Veterinary and Phytosanitary Inspection THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission(1), Having regard to the opinion of the European Parliament^, Having regard to the opinion of the Economic and Social Committee(3), Whereas live animals, animal products, plants and plant products are included in the list of products in Annex II to the Treaty; whereas production and trade in these sectors constitutes an important source of income for the farming population; Whereas the Commission is required, in accordance with the Community veterinary and phytosanitary legislation, to ensure the uniform application of this legislation in order to avoid discrepancies between the controls carried out by competent national authorities, and to ensure a uniform regime as regards imports from third countries; Whereas a uniform application of the legislation would lead to the protection of public health, animal health, and plant health and would prevent the distortion of competition; Whereas, therefore, such uniform application is essential in order to maintain confidence among Member States in the framework of free circulation of the relevant goods within the internal market; Whereas the best way to achieve this objective whilst observing the principle of independence and the specifics of the tasks is to create an Agency, the personnel of which will concentrate on monitoring the application of Community veterinary and phytosanitary legislation; (1) OJ No (2) OJ No (3) OJ No Whereas a Decision was taken by common agreement between the Representatives of the Governments of the Member States, meeting at Head of State and Government level on 29 October 1993, on the location of the seats of certain bodies and departments of the European Communities and of Europol(4); whereas it was stipulated that the Office of Veterinary and Phytosanitary Inspection was to have its seat in Ireland, in a town to be determined by the Irish Government; Whereas Grange, Co. Meath has been announced by the Irish authorities in this regard; Whereas the rules and structure of the Agency must be geared towards the objective nature of the results desired and should be such that it can carry out its work in cooperation with existing Community and international bodies; Whereas the Agency should have legal personality while collaborating closely with existing Community bodies and programmes, in order to avoid any duplication; Whereas with regard to its translations, the Agency will use the Translation Centre for bodies of the European Union, set up by Council Regulation (EC) No 2965/94(5), once the Centre becomes operational; Whereas among other revenues obtained from the collection of fees for veterinary controls, the general budget of the European Communities should contribute to the operation of the Agency; whereas the amount of this contribution deemed necessary is to be laid down under the annual budget procedure, in accordance with the financial estimates, HAS ADOPTED THIS REGULATION: Article 1 Establishment of the Agency A European Agency for Veterinary and Phytosanitary Inspection, hereinafter referred to as "the Agency", is hereby established. The Agency shall be established in premises designated by the Commission in consultation with the relevant Member State. (4) O J N oC 323, 30. 11. 1993, p. 1. (5) OJ No L 314, 7. 12. 1994, p. 1; Regulation as amended by Regulation (EC) No 2610/95 (OJNoL 268, 10. 11. 1995, p. 1). Article 2 Objective 1. The Agency's role shall be to: carry out inspections within the Community to ensure the uniform application of Community veterinary and phytosanitary legislation; verify the veterinary and phytosanitary controls in third countries of live animals, products of animal origin, plants and plant products intended for export to the Community; submit reports of the abcve activities; and to carry out any other task which the Commission may confer on it. 2. In order to avoid duplication of work, the staff of the Agency shall carry out the inspections and controls referred to in paragraph 1 in place of the experts of the Commission. Article 3 Legal personality 1. The Agency shall have legal personality. 2. It shall enjoy in all the Member States the most extensive legal capacity accorded to legal persons under their laws; in particular it may purchase or dispose of movable and immovable property and may institute legal proceedings. Article 4 Management Board 1. The Agency shall have a Management Board consisting of one representative. from each Member State, two representatives from the Commission and two scientists specifically qualified in the field of veterinary and phytosanitary sciences, the latter being designated by the European Parliament on the basis of their particular qualification in that field. Each member of the Management Board may be assisted or represented by an alternative member. In the absence of the full member, the alternative member may exercise his right to vote. The Management Board may call in non-voting observers. 2. The term of office of representatives shall be three years. It shall be renewable. 3. Each member of the Management Board shall have one vote. 4. The Management Board shall elect a Chairman and a Deputy Chairman from among its members. The Deputy Chairman shall automatically replace the Chairman in the event of his being prevented from attending to his duties. The Chairman and the Deputy Chairman shall be elected by its members for a three year period. The terms of office shall be renewable once. 5. The Management Board shall draw up its own rules of procedure. 6. The Management Board shall meet at least once a year. 7. The Management Board shall adopt a three-year work programme on the basis of a draft submitted by the Agency's Director, after seeking the opinion of the Commission. The first three-year programme shall be adopted within nine months of the entry into force of this Regulation. 8. Under the three-year work programme, the Management Board shall each year adopt the Agency's annual work programme on the basis of a draft submitted by the Director, after seeking the Commission's opinion. The programme may be adjusted in the course of the year in accordance with the same procedure. 9. By 31 January each year at the latest, the Management Board shall adopt an annual general report on the activities of the Agency on the basis of a draft submitted by the Director. The Director shall forward this report to the European Parliament, the Council, the Commission and the Member States. 10. The Management Board shall take its Decisions by an absolute majority of its members. However, a majority of two thirds of its members shall be required for the decisions which the Management Board is empowered to take under paragraph 4 or under Articles 5(1), 7, 8(4) or 9. Article 5 The Director 1. The Agency shall be headed by a Director appointed by the Management Board on a proposal from the Commission for a period of five years, which shall be renewable. The Director shall be assisted by a Deputy Director appointed by the same procedure as the Director. If the Director is absent or indisposed, the' Deputy Director shall replace him. 2. The Director shall be the official representative of the Agency. 3. The Director shall be responsible for: the proper preparation and execution of the decisions and programmes adopted by the Management Board; the day-to-day administration of the Agency; the preparation of the report referred to in Article 4(9); the performance of the tasks set out in Article 2; all staff matters; the preparation of Management Board meetings. 4. The Director shall be accountable to the Management Board for his activities. Article 6 Budget 1. Estimates shall be drawn up of all the Agency's revenue and expenditure for each financial year, which shall correspond to the calendar year and shall be entered in the Agency's budget. 2. The revenue and expenditure shown in the budget shall be in balance. 3. The revenues of the Agency shall without prejudice to other resources consist of: 1% of the fees veterinary controls; to be collected by Member States for carrying out whenever expenditure shown in the budget exceeds 1% of the fees mentioned above and to the extent necessary, a subsidy from the Community entered in the general budget of the European Communities. Detailed rules for the application of this paragraph shall be adopted in accordance with the procedure laid down in Article 38 of Council Regulation No 136/66/EEC(6). 4. The expenditure of the Agency shall include, inter alia, staff remuneration, administrative and infrastructure expenses, operating costs and expenditure relating to contracts concluded with institutions or bodies in implementation of the work programmes. (6) OJ No 172, 30. 9. 1966, p. 3025/66. Article 7 Draft estimate - Adoption of the budget 1. By 15 January each year at the latest, the Director shall draw up a preliminary draft budget preceded by an explanatory memorandum for the following financial year and shall forward it, together with a structural plan and a schedule of employees, to the Management Board. 2. The Management Board shall prepare the draft budget together with the structural plan and the schedule of employees, and forward them no later than 1 February to the Commission. On that basis the Commission shall determine the corresponding subsidy estimates to be entered in the preliminary draft general budget of the European Communities which it places before the Council pursuant to Article 203 of the Treaty. 3. The Management Board shall adopt the structural plan, before the beginning of the financial year, adjusting it where necessary to the Community subsidy and to the Agency's other resources. the Agency's budget, together with Article 8 Implementation of the budget 1. The Director shall implement the budget of the Agency. 2. The monitoring of the commitment and payment of all the Agency's expenditure and of the establishment and recovery of all the Agency's revenue shall be carried out by the Commission's financial controller. 3. By 31 March each year at the latest the Director shall send the Commission, the Management Board and the Court of Auditors the accounts for all the Agency's revenue and expenditure in respect of the preceding financial year. The Court of Auditors shall examine those accounts in accordance with Article 188c of the Treaty. 4. The Management Board shall give a discharge to the Director in respect of the implementation of the budget. Article 9 Internal financial provisions After the Court of Auditors has delivered its opinion, the Management Board shall, in agreement with the Commission, adopt the internal financial provisions, specifying in particular the procedure for establishing and implementing the Agency's budget. Article 10 Professional Secrecy Members of the Management Board, the Director, the staff and all other persons participating in the activities of the Agency shall be required, even after their duties have ceased, not to disclose information of the kind covered by the obligation of professional secrecy. Article 11 Language arrangements The language rules of the institutions of the Community shall apply to the Agency. Article 12 Translation services The translation services needed for the operation of the Agency shall be provided by the Translation Centre for the Bodies of the Union set up by Regulation (EC) No 2965/94 once that centre becomes operational. Article 13 Privileges and immunities The Protocol on the Privileges and Immunities of the European Communities shall apply to the Agency. Article 14 Staff 1. The staff of the Agency shall be subject to the Regulations and Rules applicable to officials and other servants of the European Communities. 2. The Agency shall exercise in respect of its staff the powers devolved upon the Appointing Authority. 3. The Management Board shall, in agreement with the Commission, adopt the appropriate implementing rules. 11 Article 15 Liability 1. The Agency's contractual liability shall be governed by the law applicable to the contract in question. The Court of First Instance of the European Communities shall have jurisdiction to give judgment pursuant to an arbitration clause contained in a contract concluded by the Agency. 2. In the case of non-contractual liability the Agency shall, in accordance with the general principles common to the laws of the Member States, make good any damage caused by the Agency or its servants in the performance of their duties. The Court of First Instance shall have jurisdiction in disputes relating to compensation for any such damage. 3. The personal liability of servants towards the Agency shall be governed by the provisions applying to the staff of the Agency. Article 16 Examination of legality Member States, members of the Management Board and third parties directly and personally involved may refer to the Commission any act of the Agency, whether express or implied, for the Commission to examine the legality of that act. Referral shall be made to the Commission within one month of the day on which the party concerned first became aware of the act in question. The Commission shall take a decision within two months. If no decision has been taken within this period, the case shall be deemed to have been dismissed. Article 17 Review clause No later than five years after the entry into force of this Regulation, acting on the basis of a Commission report, accompanied where appropriate by a proposal, the Council, having consulted the European Parliament, may review this Regulation and any new assignment for the Agency that proves necessary. 12 Article 18 Entry into force This Regulation shall enter into force on the 90th day following that of its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council The President 13 FINANCIAL STATEMENT 1. TITLE OF OPERATION Draft Council Regulation establishing a European Agency for Veterinary and Phytosanitary Inspection 2. BUDGET HEADING INVOLVED B2 -5104 3. LEGAL BASIS 4. DESCRIPTION OF OPERATION 4. 1 General objective To ensure the uniform application of Community legislation in the veterinary and plant- health field with a view to preventing disparities in controls by the Member States and to providing for uniform arrangements covering imports from non-member countries. 4. 2 Period covered and arrangements for renewal or extension Open-ended. 5. CLASSIFICATION OF EXPENDITURE OR REVENUE 5. 1 Non-compulsory expenditure 5. 2 Differentiated appropriations 5. 3 Type of revenue involved: The measure is not liable to generate revenue for the Community budget. 6. TYPE OF EXPENDITURE OR REVENUE subsidy 100% (where required). for launching of measure. Balancing subsidy thereafter Subsidy for joint financing with other sources in the public and/or private sector. 14 Interest subsidy Not applicable. Other Not applicable. Should the operation prove an economic success, is there provision for all or part of the Community contribution to be reimbursed? If the Agency's budget has the resources as from the first year, all or part of the Community contribution could be reimbursed. Will the proposed operation cause any change in the level of revenue? If so, what sort of change and what type of revenue is involved? Not applicable. 7. FINANCIAL IMPACT 7. 1 Method of calculating total cost of operation for 1997 (definition of unit costs) 7. 2 Itemized breakdown of cost Breakdown Budget year (1997) n + 1 (1998) n + 2 n + 3 n + 4 (ECU million - CA) % change n + 5 and subs, yrs 2 4,7 1 1 1 1 pm Community subsidy Total 15 7. 3 Indicative schedule of appropriations/Schedule for proposed new operation Breakdown n n + 1 n + 2 n + 3 n + 4 (ECU million - CA) n + 5 and subs, yrs % change Commitment appropriations 2 4. 7 1 1 1 1 pm Payment appropriations 2 4. 7 n n + 1 n + 2 n + 3 n + 4 n + 5 and subsequent years - TOTAL 2 4. 7 1 1 1 1 pm (a) The Community launching aid had been estimated to cover 100% of the costs of the Agency in the first year, namely ECU 2 million in 1997 and ECU 4. 7 million in 1998. These estimates were arrived at as follows: 1997: ESTIMATED COST OF FIRST YEAR OF OPERATION WITH 40 POSTS(1) INCLUDING 30 INSPECTORS: 1. Salaries, miscellaneous benefits and allowances, missions, social and medical services and facilities (Titles Al and A4 of the budget): 40 x ECU 39 000 ECU 1 560 000 2. Operating expenditure covering buildings, furniture and data-processing equipment (Titles A2 and A5 of the budget): 40 x ECU 11 000 ECU 440 000 ECU 2 000 000 Based on the assumption the Agency can be set up on 1 September 1997, this estimate covers four months' actual operation only. Since the above estimate is based on the standard cost of a new post (1997), the expenditure is not broken down by category /grade but is grouped in accordance with the corresponding EC budget titles. (1) Calculated using the average. cost of a post in 1995. 16 However, as a guideline, the 40 posts concerned could probably be structured as follows: Category A Category B Category C 1 A2, 4 A4, 10 A5 and 15 A7 1 Bl, 1 B3 and 2B5 1 CI, 1 C3 and 3 C5. 1998: ESTIMATED COST OF SECOND YEAR OF OPERATION WITH 40 POSTS(1) INCLUDING 30 INSPECTORS Category/ Grade Titles A1 and A4(2> Titles A2 and A5(3) Subtotal (gross) Number of staff Total cost (gross) A2 A4 A5 A7 B1 B3 B5 C1 C3 C5 178 881 130 975 105 081 74 747 97 225 64 824 48 883 63 646 49 450 39 172 16 869 16 869 16 869 16 869 16 869 16 869 16 869 16 869 16 869 16 869 195 750 147 844 121 950 91 616 114 094 81 693 65 752 80 515 66 319 56 041 1 4 10 15 1 1 2 1 2 3 195 750 591 376 1 219 500 1 374 240 114 094 81 693 131 504 80 515 132 638 168123 TOTAL 40 4 089 433 That total should be supplemented by the additional cost of missions (4). of inspectors (30 x ECU 15 000) of experts from the Member States ECU ECU 450 000 150 000 GRAND TOTAL ECU 4 689 433 8. FRAUD PREVENTION MEASURES Specific controls contemplated: the Court of Auditors is responsible for examining the Agency's accounts in accordance with Article 188c of the Treaty. The Agency is to establish a financial regulation. (2) (3) (4) Salaries, miscellaneous benefits and allowances, missions, social and medical services and facilities. Operating expenditure covering buildings, furniture and data-processing equipment. The average annual cost of missions per inspector is around ECU 15 000. 17 9. ELEMENTS OF COST-EFFEVTIVENESS ANALYSIS 9. 1 Specific and quantified objectives; target population 9. 1. 1 Specific objectives To provide back-up and support for measures under Community regulations in the veterinary and plant-health field. 9. 1. 2 Target population Community and national inspectors. 9. 2 Grounds for the operation 9. 2. 1 Need for Community financial aid, in accordance with the principle of subsidiarity. The Community's financial aid is vital to launch the measure. As the Agency's budget will subsequently come in principle from own resources, the aid will fall to a negligible amount or zero. 9. 2. 2 Choice of ways and means no alternative in line with other agencies. 9. 3 Monitoring and evaluation of the operation The Agency's work will be covered by reports to the Commission. The Agency's activities will be subject to supervision by its Management Board. 10. ADMINISTRATIVE EXPENDITURE (PART A OF SECTION II OF THE BUDGET) Not applicable. 18 ISSN 0254-1475 COM(96) 223 final DOCUMENTS EN 01 03 Catalogue number : CB-CO-96-261-EN-C ISBN 92-78-05158-6 Office for Official Publications of the European Communities L-2985 Luxembourg 19

96/415/EC: Council Decision of 28 May 1996 on the conclusion of administrative arrangements on trade in textile products between the European Community and certain members of the World Trade Organization

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L_1996173EN. 01000101. xml 11. 7. 1996    EN Official Journal of the European Communities L 173/1 COUNCIL DECISION of 28 May 1996 on the conclusion of administrative arrangements on trade in textile products between the European Community and certain members of the World Trade Organization (96/415/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 113 in conjunction with the first sentence of Article 228 (2) thereof, Having regard to the proposal from the Commission, Whereas the Commission has negotiated administrative arrangements on trade in textile products in the form of Agreed Minutes or Exchanges of Notes with certain Members of the World Trade Organization which, as ‘administrative arrangements’ within the meaning of Article 2 (17) of the WTO Agreement, reproduce the relevant provisions of previous bilateral agreements covering trade in textile products under the Multifibre Arrangement (MFA); Whereas these administrative arrangements on trade in textile products should be approved, HAS DECIDED AS FOLLOWS: Article 1 The administrative arrangements on trade in textile products between the European Community and the third countries listed in the Annex to this Decision shall be approved on behalf of the Community. The texts of the administrative arrangements on trade and textile products are attached to this Decision. Article 2 The President of the Council is hereby authorized to designate the person(s) empowered to sign the administrative arrangements referred to in Article 1 in order to bind the Community. Done at Brussels, 28 May 1996. For the Council The President R. SERRI ANNEX List of countries   Argentina   Bangladesh   Hong Kong   India   Indonesia   Macao   Malaysia   Pakistan   Peru   Philippines   Singapore   South Korea   Sri Lanka   Thailand ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and the Argentine Republic NOTE VERBALE The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Argentine Republic to the European Communities and has the honour to refer to the Agreement on textile products negotiated between the Argentine Republic and the Community applied since 1 January 1987, as extended by the Exchange of Letters applied since 1 January 1992 and as further extended by the Exchange of Letters of 18 December 1992. With a view to ensuring a smooth and efficient implementation of the Agreement on integration of the textiles and clothing sectors into GATT rules and disciplines negotiated within the framework of the Uruguay Round of GATT negotiations, the Commission has the honour to inform the authorities of the Argentine Republic that it intends to notify to the Textiles Monitoring Body the provisions, contained in the attached list, of the abovementioned Agreement on textile products as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textiles Agreement. The Directorate-General would be grateful if your authorities could confirm as soon as possible their agreement on the details of this notification. The Directorate-General for External Relations avails itself of this opportunity to renew to the Mission of the Argentine Republic to the European Communities the assurance of its highest consideration. Brussels,. Provisions of the Agreement between the European Economic Community and the Argentine Republic on trade in textile products, initialled in Brussels, on 30 September 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Argentine Republic on trade in textile products, initialled in Brussels on 18 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industries Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Agreed Minute No 4 (1992) Regional concentration Note verbale (1992) Refers to Agreed Minute No 2 (1992) NOTE VERBALE The Mission of the Argentine Republic to the European Union presents its compliments to the Directorate-General for External Economic Relations of the European Commission and has the honour to refer to the Agreement on textile products between the Argentine Republic and the European Economic Community initialled on 30 September 1986, as extended by the Exchange of Letters on 24 September 1991 and 18 December 1992, and to the Note Verbale No 020830 dated 22 December 1993. With reference to the Note Verbale, which states the Commission's intention of notifying the provisions contained in an attached list to the Textiles Monitoring Body as ‘administrative arrangements’, the Mission hereby informs the Directorate-General of the Argentinian Government's agreement to the terms of the Note verbale. The Mission of the Argentine Republic to the European Union avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the European Commission the assurance of its highest consideration. Brussels,. ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and the People's Republic of Bangladesh NOTE VERBALE The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the People's Republic of Bangladesh to the European Communities and has the honour to refer to the Agreement on textile products negotiated between the People's Republic of Bangladesh and the Community applied since 1 January 1987, as extended by the Exchange of Letters applied since 1 January 1992, as amended by the Exchange of Letters initialled on 9 October 1992, and as further extended by the Exchange of Letters of 17 December 1992. With a view to ensuring a smooth and efficient implementation of the Agreement on integration of the textiles and clothing sectors into GATT rules and disciplines negotiated within the framework of the Uruguay Round of GATT negotiations, the Commission has the honour to inform the authorities of the People's Republic of Bangladesh that it intends to notify to the Textiles Monitoring Body the provisions, contained in the attached list, of the abovementioned Agreement on textile products as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textiles Agreement. The Directorate-General would be grateful if your authorities could confirm as soon as possible their agreement on the details of this notification. The Directorate-General for External Relations avails itself of this opportunity to renew to the Mission of the People's Republic of Bangladesh to the European Communities the assurance of its highest consideration. Brussels,. Provisions of the Agreement between the European Economic Community and the People's Republic of Bangladesh on trade in textile products, initialled in Brussels, on 16 July 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the People's Republic of Bangladesh on trade in textile products, initialled in Brussels on 17 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industries Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Note verbale (1992) Refers to Agreed Minute No 2 (1992) NOTE VERBALE The Embassy of the People's Republic of Bangladesh presents its compliments to the Directorate-General for External Relations of the European Commission and, with reference to the Commission's Note verbale No 020831 dated 22 December 1993, has the honour to confirm the agreement of the Government of the People's Republic of Bangladesh to the Commission's proposal to notify to the Textile Monitoring Body the provisions of the Bangladesh-EC Textile Agreement referred to in their above Note verbale as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textile Agreement. The Embassy of Bangladesh avails itself of this opportunity to renew to the Directorate-General for External Relations of the European Commission the assurances of its highest consideration. Brussels,. ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and Hong Kong AGREED MINUTE During consultations held between Hong Kong and the European Community, the two parties agreed that the relevant provisions of their bilateral Agreement on trade in textiles products, initialled on 2 October 1986, as last modified by the Exchange of Letters initialled on 25 November 1994, listed in Annex I to this Agreed Minute, shall form the basis of the administrative arrangements deemed necessary in relation to the implementation of the textiles and clothing restrictions between the European Community and Hong Kong. The list of such provisions is set out in Annex I to this Agreed Minute. As a consequence, the administrative arrangements that have been agreed upon between the two parties pursuant to Article 2 (17), of the World Trade Organization (WTO) Agreement on Textiles and Clothing (ATC) in order to implement the textiles and clothing restraints between the European Community and Hong Kong are set out in Annex II to this Agreed Minute. The administrative arrangements in Annex II are drawn up on the basis of the provisions listed in Annex I to this Agreed Minute. For Hong Kong For the European Community ANNEX I Article Description Article 2 (2) Classification system Article 2 (3) Determination of origin of covered products Article 3 Double-checking Article 4 Reimports after OPT Article 5 Imports to EC for re-export after processing Article 6 (6) Statistical verification of carry-over Article 8, as amended Exchange of statistical information Article 9 Amendments to classification Article 10 Circumvention Article 11, as amended Regional concentration Article 13 Non-discrimination in allocation of export and import licences Article 14 (1), as amended Consultations Article 14 (3) Consultations Protocol A, as amended Classification Origin, Double-checking, Certificates of origin etc. , Export certificates etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Joint declaration concerning Article 10 Circumvention Declaration concerning Article 2 (3) Amendments to rules of origin Agreed Minute No 6 (1986) Provision of information (Article 18/Protocol A) Agreed Minute No 11 (1986) Cooperation in area of circumvention Agreed Minute No 2 (1992) Temporary specific management system Note verbale (1992) Refers to Agreed Minute No 2 (1992) Agreed Minute No 3 (1992) Regions with traditionally small quotas Agreed Minute No 4 (1992) Regional concentration ANNEX II Article 1 Classification system The classification of the products covered by these administrative arrangements is based on the tariff and statistical nomenclature of the European Community (the Community) (hereinafter called the ‘combined nomenclature’, or in abbreviated form ‘CN’) and any amendments thereof. Article 2 Determination of origin of covered products The origin of the products covered by these administrative arrangements shall be determined in accordance with the rules in force in the Community and the procedures for control of the products set out in Protocol A. If any amendment is made to the rules of origin, the Community shall, with the agreement of Hong Kong, take appropriate measures to avoid any possible consequent reduction of Hong Kong's ability to use the quantitative limits established under Article 2 of the Agreement on Textiles and Clothing (ATC). The Community undertakes that any amendment made to the rules of origin shall continue to be based on criteria not requiring, in order to confer originating status, more extensive operations than those constituting a single complete process. Article 3 Double-checking Hong Kong agrees to restrain its exports to the Community of the products described in the notification of the Community to the Textiles Monitoring Body (TMB) under Article 2 (1) of the ATC to the limits set out therein as increased by the growth rates provided under Article 2 of the ATC and as may be modified by the flexibility provisions notified to the TMB under Article 2 (1) of the ATC, until such time as these products are integrated into GATT 1994 under paragraphs 6, 8 or 9 of Article 2 of the ATC. Exports of restrained textile products shall be subject to a double-checking system specified in Protocol A. Article 4 Reimports after OPT Hong Kong and the Community recognize the special and differential character of reimports of textile products into the Community after processing in Hong Kong, Such reimports may be provided for outside the quantitative limits established under Article 2 of the ATC provided that they are effected in accordance with the regulations on economic outward processing in force in the Community. Article 5 Imports into Community for re-export after processing 1. Exports to the Community of textile products covered by these administrative arrangements shall not be subject to quantitative limits established under Article 2 of the ATC, provided that they are declared to be for re-export outside the Community in the same state or after processing, within the framework of the administrative system of control which exists within the Community. However, the release for home use within the Community of products imported under the conditions referred to above shall be subject to the production of an export licence issued by the Hong Kong authorities and to proof of origin, in accordance with the provisions of Protocol A. 2. Where the competent authorities in the Community have evidence that products exported from Hong Kong and set off by Hong Kong against a quantitative limit established under Article 2 of the ATC have been subsequently re-exported outside the Community, the authorities concerned shall notify Hong Kong of the quantities involved. On receipt of such notification, Hong Kong may authorize exports for the current or the following year of identical quantities of products, within the same category, which shall not be set off against the quantitative limits established under Article 2 of the ATC. Article 6 Statistical verification of carry-over Hong Kong shall provide the Community with export data showing the amounts of carry-over available in any given year. If substantial statistical differences exist between the export data from which the amount to be carried over is calculated and the Community's data the Community may, within the first 120 days of the following year, request consultations in accordance with the procedures referred to in Article 12 (1) of these administrative arrangements on the amounts involved. Any such request shall be accompanied by full particulars of the alleged statistical differences. Where such a request is made, the portions carried over shall not be used until the parties have completed consultations. If no such request is made within a 120-day period, the portion carried over shall be presumed to have been calculated correctly. Article 7 Exchange of statistical information 1. Hong Kong undertakes to supply the Community with precise statistical information on all export licences issued by the Hong Kong authorities for all categories of textile products subject to the quantitative limits established under Article 2 of the ATC. Hong Kong shall set out in its periodical statistical reports the maximum export levels for each category subject to a quantitative limit established under Article 2 of the ATC and the rate of utilization of these levels. 2. The Community shall likewise transmit to the Hong Kong authorities precise statistical information on import documents issued by the Community authorities in respect of export licences issued by Hong Kong. This information shall, for all categories of products, be transmitted before the end of the second month following the quarter to which the statistics relate. 3. The information referred to in paragraph 1 shall, for all categories of products, be forwarded before the end of the month following the month to which the statistics relate. 4. The Community shall transmit to the Hong Kong authorities import statistics for products covered by Article 5 (1) of these administrative arrangements. 5. The information referred to in paragraph 4 shall, for all categories of products, be transmitted before the end of the third month following the quarter to which the statistics relate. 6. Should it be found on analysis of the information exchanged above that there are significant discrepancies between the returns for exports and those for imports, consultations may be initiated in accordance with the procedure specified in Article 12 of these administrative arrangements. Any such consultations shall be resolved on the basis of the agreed descriptions of the products set out in the notification under Article 2 (1) of the ATC. Article 8 Amendments to classification 1. The authorities of Hong Kong shall be informed of any amendment to the combined nomenclature or any decision, made in accordance with the procedures in force in the Community, relating to the classification of products covered by these administrative arrangements. Any such amendment or any decision which results in a modification of the classification of products covered by these administrative arrangements shall not have the effect of reducing Hong Kong's ability to use the quantitative limits established under Article 2 of the ATC. The procedures for the application of this paragraph are set out in Protocol A. 2. In the case of divergent opinions between Hong Kong and the competent Community authorities at the point of entry into the Community on the classification of products subject to quantitative limits established under Article 2 of the ATC, consultations in accordance with Article 12 (1) of these administrative arrangements shall be held with a view to reaching agreement on the appropriate classification of the products concerned and to resolving any difficulties arising therefrom. For this purpose, the authorities of Hong Kong shall be informed by the competent authorities of the Community as soon as a case of divergent opinions on the classification of products arises. Pending agreement on the appropriate classification and in order to avoid disruption to trade, the products in question shall be imported on the basis of the classification indicated by the competent Community authorities at the point of entry, in conformity with the provisions of these administrative arrangements. Article 9 Circumvention 1. Hong Kong and the Community agree to cooperate fully in preventing the circumvention of these administrative arrangements by transhipment, re-routing of whatever other means. 2. The Community and Hong Kong note the well established and close cooperation which exists between the two parties in preventing and dealing with problems relating to the contravention through circumvention of the provisions of previous Agreements between the Community and Hong Kong, and, in particular, the mutually satisfactory solutions which have been reached on equivalent debiting of the corresponding quantitative limits. 3. The two parties reaffirm their willingness to strengthen this cooperation in all its aspects having regard to the administrative and technical procedures in force in the Community and Hong Kong for the implementation of these administrative arrangements. 4. Hong Kong confirms that its export control system permits the prompt debiting of circumvented amounts to the appropriate quantitative limits established under Article 2 of the ATC and previous Agreements. 5. Where information available to the Community as a result of the investigation carried out in accordance with the procedures set out in Protocol A constitutes evidence that products of Hong Kong origin subject to quantitative limits established under Article 2 of the ATC have been transhipped, re-routed or otherwise imported into the Community in circumvention of these administrative arrangements, the Community may request the opening of consultations in accordance with the procedures described in Article 12 (1) of these administrative arrangements, with a view to reaching agreement on an equivalent adjustment of the corresponding quantitative limits. 6. Should the parties be unable in the course of the consultations to reach a satisfactory solution within the period specified in Article 12 (1) of these administrative arrangements, the Community shall have the right, where clear evidence of circumvention has been provided, to deduct from the quantitative limits amounts equivalent to the products of Hong Kong origin. 7. Deduction of the relevant quantitative limits shall, as a general rule, be implemented in the following manner: — where the evidence provided clearly establishes that the provisions of these administrative arrangements have been circumvented, Hong Kong shall, at the request of the Community, debit the circumvented amounts to the appropriate quantitative limits for the year in which the circumvention took place or for subsequent years, the timing and apportioning of such debiting being decided in consultation with the Community, to ensure that, where appropriate, such debiting may be satisfactorily implemented. 8. Should the consultation period provided for in Article 12 (1) of these administrative arrangements be sufficient to complete the examination of the evidence adduced the parties may agree to extend that period. Article 10 Regional concentration 1. The quantitative limits established under Article 2 of the ATC on imports into the Community of textile products of Hong Kong origin will not be broken down by the Community into regional shares. 2. Notwithstanding the above, for imperative technical or administrative reasons or to find a solution to economic problems resulting from regional concentration of imports, or in order to combat circumvention and fraud of the provisions of these administrative arrangements, the Community will establish for a limited period of time a specific management system in conformity with the principles of the internal market. Should the Community have recourse to this provision, the textile products covered by the corresponding export licences can only be put into free circulation in the region(s) of the Community indicated in those licences. Similarly, the products covered by the import licences can only be put into free circulation in the region(s) of the Community indicated in those licences. This provision was invoked by the Community as from 1 January 1993. 3. The parties shall cooperate in order to prevent sudden and prejudicial changes in traditional trade flows resulting in regional concentration of direct imports into the Community. 4. Hong Kong shall monitor its exports of products under restraint into the Community. Should a sudden and prejudicial change in traditional trade flows arise, the Community will be entitled to request consultations in order to find a satisfactory solution to those problems. Such consultations must be held within 15 working days of their being requested by the Community, and in accordance with Article 12 (1) of these administrative arrangements. Hong Kong, from the date of request for and pending the consultations, will not issue export licences that would further aggravate the problem. 5. However, if the parties are unable to reach a satisfactory solution during the consultations, Hong Kong will, if so requested by the Community, respect temporary export limits for one or more regions of the Community. In such a case, these limits shall not preclude the importation into the region(s) concerned of products which were shipped from Hong Kong on the basis of export licences obtained before the date of formal notification to Hong Kong by the Community about the introduction of the above limits. The Community shall inform Hong Kong of the technical and administrative measures that need to be introduced by both parties so that implementation is in conformity with principles of the internal market. 6. Hong Kong shall endeavour to ensure that exports of textile products subject to quantitative limits established under Article 2 of the ATC into the Community are spaced out as evenly as possible over the year due account being taken in particular of seasonal factors. 7. Hong Kong shall endeavour not to deprive certain regions of the Community which have traditionally had relatively small shares of Community quotas of imports of products serving as inputs for their processing industry. The Community and Hong Kong shall hold consultations, should the need arise, in order to avert any problems which might occur in this respect. Article 11 Non-discrimination in allocation of export and import licences Hong Kong and the Community undertake to refrain from discrimination in the allocation of export licences and import documents respectively. Article 12 Consultations 1. Save where it is otherwise provided for in these administrative arrangements, the special consultation procedures referred to in these administrative arrangements shall be governed by the following rules: — any request for consultations shall be notified in writing to the other party, together with a statement setting out the reasons and circumstances which, in the opinion of the requesting party, justify the submission of such a request, — the Parties shall enter into consultations within 15 days, at the latest, of notification of the request, with a view to reaching agreement or a mutually acceptable conclusion within a further 15 days at the latest. 2. If necessary, at the request of either of the parties consultations shall be held on any problems arising from the application of these administrative arrangements. Any consultations held under this Article shall be approached by both parties in a spirit of cooperation and with a desire to reconcile the difference between them. PROTOCOL A TITLE I CLASSIFICATIONS Article 1 1. The competent authorities of the Community undertake to inform Hong Kong of any changes in the combined nomenclature (CN) before the date of their entry into effect in the Community. The competent authorities of the Community undertake to inform Hong Kong of any decisions relating to the classification of products subject to these administrative arrangements within one month of their adoption at the latest. Such communication shall include: (a) a description of the products concerned; (b) the relevant category and the related tariff and statistical references; (c) the reasons which have led to the decision. 3. Where a decision on classification results in a change of classification practice or a change of category of any product subject to these administrative arrangements, the competent authorities of the Community shall provide 30 days' notice, from the date of the Community's communication, before the decision is put into effect. Products shipped before the date of application of the decision shall remain subject to the earlier classification practice, provided that the goods in question are presented for importation into the Community within 60 days of that date. 4. Where a Community decision on classification resulting in a change of classification practice or a change of categorization of any product subject to these administrative arrangements affects a category subject to restraint, the Community undertakes to enter into consultations without delay in accordance with the procedures described in Article 12 (1) of these administrative arrangements with a view to agreeing necessary adjustments to the appropriate quantitative limits established under Article 2 of the ATC and mitigating any disruptive effects which might arise from such a Community decision. TITLE II ORIGIN Article 2 1. Products originating in Hong Kong for export to the Community in accordance with the arrangements established by these administrative arrangements shall be accompanied by a certificate of Hong Kong origin conforming to the model annexed to this Protocol. 2. The certificate of Hong Kong origin shall be issued by the competent governmental authorities of Hong Kong if the products in question can be considered products originating in that country within the meaning of the relevant rules in force in the Community. 3. Certificates of Hong Kong origin shall contain a full and detailed description of the goods. In particular, certificates of Hong Kong origin shall indicate: — in respect of clothing, shipments where the articles in question are incomplete or unfinished, — in respect of fabrics, including knitted or crocheted fabric, shipments where the products in question are dyed, printed or impregnated or coated; — and in respect of products of category 39, shipments where the articles in question are embroidered. 4. The certificate of Hong Kong origin referred to in paragraph 1 shall not be required for import of goods covered by a certificate of origin Form A completed in accordance with the relevant Community rules in order to qualify for generalized tariff preferences. Article 3 The discovery of slight discrepancies between the statements made in the certificate of origin and those made in the documents produced to the customs office for the purpose of carrying out the formalities for importing the product shall not ipso facto cast doubt on the statements in the certificate. TITLE III DOUBLE-CHECKING SYSTEM FOR CATEGORIES OF PRODUCTS WITH QUANTITATIVE LIMITS Section I Exportation Article 4 The competent authorities of Hong Kong shall issue an export licence in respect of all consignments from Hong Kong of textile products subject to quantitative limits established under Article 2 of the ATC, up to the relevant quantitative limits as increased by the growth rates provided under Article 2 of the ATC and as may be modified by the flexibility provisions notified to the TMB under Article 2 (1), of the ATC, until such time as these products are integrated into GATT 1994 under paragraphs 6, 8 or 9 of Article 2 of the ATC. Article 5 1. The export licence shall conform to the model annexed to this Protocol and it shall be valid for exports throughout the customs territory to which the Treaty establishing the European Community is applied. 2. Each export licence shall only cover one of the categories of products. Article 6 The competent Community authorities must be notified forthwith of the withdrawal or alteration of any export licence already issued. Article 7 1. Exports shall be set off against the quantitative limits established under Article 2 of the ATC for the year in which shipment of the goods has been effected, even if the export licence is issued after such shipment. 2. For the purpose of applying paragraph 1, shipment of the goods is considered to have taken place on the date of their loading on to the exporting aircraft, vehicle or vessel. Article 8 The presentation of an export licence, in application of Article 10, shall be effected not later than 31 March of the year following that in which the goods covered by the export licence have been shipped. Section II Importation Article 9 Importation into the Community of textile products subject to quantitative limits established under Article 2 of the ATC shall be subject to the presentation of an import authorization or document. Article 10 1. The competent Community authorities shall issue such import authorization or document automatically within five working days of the presentation by the importer of the original of the corresponding export licence. The import authorizations shall be valid for six months from the date of their issue for imports throughout the customs territory to which the Treaty establishing the European Community is applied. 2. The competent Community authorities shall cancel the already issued import authorization or document if the corresponding export licence has been withdrawn. However, if the competent Community authorities have not been notified of the withdrawal or cancellation of the export licence until after the products have been imported into the Community, the quantities involved shall be set off against the quantitative limit established under Article 2 of the ATC for the category and the quota year in question and Hong Kong shall be informed as soon as possible. Article 11 1. If the competent Community authorities find that the total quantities covered by export licences issued by Hong Kong for a particular category in any given year exceed the quantitative limit established under Article 2 of the ATC for that category as increased by the growth rates provided under Article 2 of the ATC and as may be modified by the flexibility provisions notified to the TMB under Article 2 (1) of the ATC, until such time as these products are integrated into GATT 1994 under paragraphs 6, 8 or 9 of Article 2 of the ATC, the said authorities may suspend the further issue of import authorizations or documents. In this event, the competent Community authorities shall immediately inform the authorities of Hong Kong and the special consultation procedure set out in Article 12 (1) of these administrative arrangements shall be initiated forthwith. 2. Exports of restrained textile products of Hong Kong origin not covered by Hong Kong export licences issued in accordance with the provisions of this Protocol may be refused the issue of import authorizations or documents by the competent Community authorities. However, if the import of such products is allowed into the Community by the competent Community authorities, the quantities involved shall not be set off against the appropriate quantitative limits established under Article 2 of the ATC, without the express agreement of Hong Kong. TITLE IV FORM AND PRODUCTION OF EXPORT CERTIFICATES AND CERTIFICATES OF ORIGIN, AND COMMON PROVISIONS Article 12 1. The export licence and the certificate of origin of Hong Kong may comprise additional copies duly indicated as such. They shall be made out in English or French. If they are completed by hand, entries must be in ink and in printed script. These documents shall measure 210 x 297 mm. The paper used must be writing paper weighing not less than 25g/m2. Only the original, clearly marked ‘original’ shall be accepted by the competent authorities of the Community as being valid for the purposes of export to the Community in accordance with the arrangements established by these administrative arrangements. 2. Each export licence and certificate of Hong Kong origin shall bear a serial number, whether or not printed, by which it can be identified. The number for the export licence shall be standardized and composed of the following elements: — two letters identifying Hong Kong as follows: HK, — two letters identifying the intended Member State of customs clearance as follows, AT = Austria BL = Benelux DE = Germany DK = Denmark El = Greece ES = Spain FI = Finland FR = France GB = United Kingdom IE = Ireland IT = Italy PT = Portugal SE = Sweden, — a one-digit number identifying quota year, corresponding to the last figure in the respective year, e. g. 7 for 1987, — two spaces identifying the particular issuing office concerned in Hong Kong. — a five-digit number running consecutively from 00001 to 99999 allocated to the intended Member State of customs clearance. Article 13 The export licence and certificate of origin may be issued after the shipment of the products to which they relate. In such cases they shall bear either the endorsement ‘délivré a posteriori’ or the endorsement ‘issued retrospectively’. Article 14 1. In the event of theft, loss or destruction of an export licence or a certificate of origin, the exporter may apply to the competent governmental authority which issued the document for a duplicate to be made out on the basis of the export documents in his possession. The duplicate of any such certificate or licence so issued shall bear the endorsement ‘duplicata’. 2. The duplicate must bear the date of the original export licence or certificate of origin. TITLE V ADMINISTRATIVE COOPERATION Article 15 The Community and Hong Kong shall cooperate closely to implement the provisions of these administrative arrangements. To this end, contracts and exchanges of views (including on technical matters) shall be facilitated by both parties, in particular to establish the authenticity and accuracy of documentation required under the provisions of these administrative arrangements. Article 16 Hong Kong shall send to the European Commission the names and addresses of the governmental authorities competent for the issue and verification of export licences and certificates of origin together with specimens of the stamps used by these authorities. Hong Kong shall also notify the Commission of any change in this information. Article 17 1. Verification of certificates of Hong Kong origin or export licences shall be carried out at random by the Hong Kong authorities. 2. The competent Community authorities may request subsequent verification of certificates of Hong Kong origin or export licences at random or whenever they have reasonable doubt as to the authenticity of such certificates or licences or as to the accuracy of the information regarding the products in question. In such cases the competent authorities in the Community shall return the certificate of Hong Kong origin or export licence, or a copy thereof to the Hong Kong authorities, giving, where appropriate, the reasons for an enquiry. If the invoice has been submitted, such invoice shall be attached to the certificate or licence or its copy. The authorities shall also forward any information that has been obtained suggesting that the particulars given on the said certificate or licence are inaccurate. 3. Should the results of the random verification referred to in paragraph 1 reveal serious contravention of the provisions of these administrative arrangements, the Hong Kong authorities shall notify the competent Community authorities of the results. Where the competent Community authorities have requested verification under paragraph 2, the results of such verification shall be communicated to the competent Community authorities within three months at the latest. The information communicated shall indicate whether the disputed certificate or licence applies to the goods actually exported and whether these goods are eligible for export in accordance with the arrangements established by these administrative arrangements. Where the competent Community authorities so request, the information communicated shall also include copies of such other available documentation as may facilitate the full determination of the facts and, in particular, the true origin of the goods. 4. For the purpose of subsequent verification of certificate of Hong Kong origin and export licences, copies of these, together with relevant supporting documentation required to be lodged with the Hong Kong authorities for the issue of such certificates or licences, shall be kept for a period of at least two years by the Hong Kong authorities. Article 18 1. Where the verification procedure referred to in Article 17 or where information available to the Community or to Hong Kong indicates or appears to indicate that the provisions of these administrative arrangements are being contravened, both parties shall cooperate closely and with appropriate urgency to prevent such contravention. 2. To this end, Hong Kong shall, on its own initiative or at the request of the Community, carry out appropriate enquiries or arrange for such enquiries to be carried out concerning operations which are or appear to be in contravention of these administrative arrangements. Hong Kong shall communicate the results of these enquiries to the Community together with such other available information as may facilitate the determination of the true origin of the goods. 3. By agreement between the Community and Hong Kong, officials designated by the Community may be present at the enquiries referred to in paragraph 2. 4. In pursuance of the cooperation referred to in paragraph 1, Hong Kong and the Community shall exchange any information considered by either party to be of use in preventing the contravention of the provisions of these administrative arrangements. These exchanges may include information on textile production in Hong Kong and on trade in textile products of a kind covered by these administrative arrangements between Hong Kong and other countries, particularly where the Community has reasonable grounds to consider that the products in question may be in transit across the territory of Hong Kong prior to their importation into the Community. This information shall include at the request of the Community copies of all relevant documentation. Hong Kong will provide such information as is available and in accordance with Hong Kong law. 5. The Community shall, where appropriate at the request of Hong Kong, cooperate jointly with Hong Kong in cases of circumvention which affect Hong Kong, in conformity with procedures in force in the Community. 6. Where it is established to the satisfaction of both parties that the provisions of these administrative arrangements have been contravened, Hong Kong and the Community agree to take all reasonable measures to prevent a recurrence of such contravention. Annex to Protocol A, Article 2 Annex to Protocol A, Article 5 ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and the Republic of India AGREED MINUTE During consultations held between delegations from the Republic of India and the Commission of the European Communities, the two parties agreed that the provisions of their bilateral Agreement on trade in textile products, initialled on 31 October 1986, as last modified by the Exchange of Letters initialled on 9 December 1994, listed in the Annex to this Agreed Minute, shall continue to govern their trade relations in the textile sector. As a consequence, these provisions shall be notified to the Textiles Monitoring Body (TMB) as administrative arrangements within the meaning of Article 2 (17) of the Uruguay Round Agreement on Textiles and Clothing. For the Government of the Republic of India For the European Community ANNEX Provisions of the Agreement between the European Economic Community and the Republic of India on trade in textile products, initialled in Brussels on 31 October 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of India on trade in textile products, initialled in Brussels on 18 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industries Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and the Republic of Indonesia AGREED MINUTE During consultations held between delegations from the Republic of Indonesia and the Commission of the European Communities, the two parties agreed that the provisions of their bilateral Agreement on trade in textile products, initialled on 28 June 1986, as last modified by the Exchange of Letters initialled on 13 January 1995, listed in the Annex to this Agreed Minute, shall continue to govern their trade relations in the textile sector. As a consequence, these provisions shall be notified to the Textiles Monitoring Body (TMB) as constituting the basis of their administrative arrangements within the meaning of Article 2 (17) of the Uruguay Round Agreement on Textiles and Clothing. For the Government of the Republic of Indonesia For the European Community ANNEX Provisions of the Agreement between the European Economic Community and the Republic of Indonesia on trade in textile products, initialled in Brussels on 28 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of Indonesia on trade in textile products, initialled in Brussels on 27 November 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industries Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry Protocol E, as amended OPT operations Joint Declaration (1986) Batik fabrics etc. Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Agreed Minute No 4 (1992) Regional concentration Note verbale (1992) Refers to Agreed Minute No 2 (1992) ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and Macao NOTE VERBALE The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Minister for Commercial Affairs of Macao and has the honour to refer to the Agreement on textile products negotiated between Macao and the Community applied since 1 January 1987, as extended by the Exchange of Letters applied since 1 January 1992 and as further extended by the Exchange of letters of 27 November 1992. With a view to ensuring a smooth and efficient implementation of the Agreement on integration of the textiles and clothing sectors into GATT rules and disciplines negotiated within the framework of the Uruguay Round of GATT negotiations, the Commission has the honour to inform the authorities of Macao that it intends to notify to the Textiles Monitoring Body the provisions, contained in the attached list, of the abovementioned Agreement on textile products as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textiles Agreement. The Directorate-General would be grateful if your authorities could confirm as soon as possible their agreement on the details of this notification. The Directorate-General for External Relations avails itself of this opportunity to renew to the Minister for Commercial Affairs of Macao the assurance of its highest consideration. Brussels,. Provisions of the Agreement between the European Economic Community and Macao on trade in textile products, initialled in Brussels on 19 July 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and Macao on trade in textile products, initialled in Brussels on 27 November 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industries Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry Protocol E, as amended OPT operations Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Agreed Minute No 4 (1992) Regional concentration Note verbale (1992) Refers to Agreed Minute No 2 (1992) NOTE VERBALE The Minister for Commercial Affairs of Macao to the European Communities and the Member States presents his compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and, with reference to Note verbale No 20824 dated 22 December 1993 concerning the implementation of the Agreement on trade in textile products in accordance with GATT rules, has the honour to inform the Directorate-General of the Macao authorities' agreement on notification of the provisions of the Agreement to the Textiles Monitoring Body as ‘administrative arrangements’ within the meaning of Article 2 (17) of the GATT Uruguay Round Agreement on Textiles and Clothing. The Minister for Commercial Affairs of Macao avails himself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of the European Communities the assurance of his highest consideration. Brussels,. ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and Malaysia NOTE VERBALE The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of Malaysia to the European Communities and has the honour to refer to the Agreement on textile products negotiated between Malaysia and the Community applied since 1 January 1987, as extended by the Exchange of Letters initialled on 8 November 1991 and as further extended by the Exchange of Letters of 3 December 1992. With a view to ensuring a smooth and efficient implementation of the Agreement on integration of the textiles and clothing sectors into GATT rules and disciplines negotiated within the framework of the Uruguay Round of GATT negotiations, the Commission has the honour to inform the authorities of Malaysia that it intends to notify to the Textiles Monitoring Body the provisions, contained in the attached list, of the abovementioned Agreement on textile products as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textiles Agreement. The Directorate-General would be grateful if your authorities could confirm as soon as possible their agreement on the details of this notification. The Directorate-General for External Relations avails itself of this opportunity to renew to the Mission of Malaysia to the European Communities the assurance of its highest consideration. Brussels,. Provisions of the Agreement between the European Community and Malaysia on trade in textile products, initialled in Brussels on 28 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and Malaysia on trade in textile products, initialled in Brussels on 3 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industry Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry Protocol E OPT operations Joint Declaration (1986) Batik fabrics and products thereof Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Note verbale (1992) Refers to Agreed Minute No 2 (1992) Agreed Minute No 4 (1992) Regional concentration Dear Mr. , I have the pleasure in making reference to the Commission's Note verbale dated 22 December 1993 regarding the notification of textiles provisions to the Textiles Monitoring Body (TMB). I wish to confirm that Malaysia has no objection on the provisions of the Agreement between the European Community and Malaysia on trade in textile products initialled on 28 June 1986, as amended by the Agreement in the form of Exchange of Letters amending the Agreement between the European Community and Malaysia on trade in textile products initialled in Brussels, 3 December 1992, which will be notified to the Textiles Monitoring Body as administrative arrangements under Article 2 (17) of the Uruguay Round Textile Agreement. Yours sincerely, ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and the Islamic Republic of Pakistan AGREED MINUTE During consultations held between delegations from the Islamic Republic of Pakistan and the European Community, the two parties agreed that the provisions of their bilateral Agreement on trade in textile products, initialled on 12 September 1986, as last notified by the Exchange of Letters initialled on 22 December 1994, listed in the Annex to this Agreed Minute, shall continue to govern their trade relations in the textile sector. As a consequence, these provisions shall be notified to the Textiles Monitoring Body (TMB) as constituting the basis of their administrative arrangements within the meaning of Article 2 (17) of the Uruguay Round Agreement on Textiles and Clothing. For the Islamic Republic of Pakistan For the European Community Provisions of the Agreement between the European Community and the Islamic Republic of Pakistan on trade in textile products initialled on 12 September 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Islamic Republic of Pakistan on trade in textile products, initialled in Brussels, on 12 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industry Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry Protocol E OPT operations Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Note verbale (1992) Refers to Agreed Minute No 2 (1992) Agreed Minute No 4 (1992) Regional concentration ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and the Republic of Peru NOTE VERBALE The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of Peru to the European Communities and has the honour to refer to the Agreement on textile products negotiated between the Republic of Peru and the Community applied since 1 January 1987, as extended by the Exchange of Letters applied since 1 January 1992 and as further extended by the Exchange of Letters of 8 December 1992. With a view to ensuring a smooth and efficient implementation of the Agreement on integration of the textiles and clothing sectors into GATT rules and disciplines negotiated within the framework of the Uruguay Round of GATT negotiations, the Commission has the honour to inform the authorities of the Republic of Peru that it intends to notify to the Textiles Monitoring Body the provisions, contained in the attached list, of the abovementioned Agreement on textile products as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textiles Agreement. The Directorate-General would be grateful if your authorities could confirm as soon as possible their agreement on the details of this notification. The Directorate-General for External Relations avails itself of this opportunity to renew to the Mission of the Republic of Peru to the European Communities the assurance of its highest consideration. Brussels,. Provisions of the Agreement between the European Community and the Republic of Peru on trade in textile products, initialled in Brussels, on 13 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of Peru on trade in textile products, initialled in Brussels, on 8 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industries Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Agreed Minute No 4 (1992) Regional concentration Note verbale (1992) Refers to Agreed Minute No 2 (1992) NOTE VERBALE The Mission of the Republic of Peru presents its compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and has the honour to refer to the latter's Note verbale 020825 dated 22 December 1993 concerning notification to the Textiles Monitoring Body of the administrative clauses of the bilateral Agreement on textile products between Peru and the European Community, in accordance with Article 2 (17) of the GATT Uruguay Round Agreement on Textiles and Clothing. In this connection, and further to informal contacts between the Mission of Peru and the Directorate-General, the Mission hereby informs the Directorate-General of the Peruvian Government's agreement on notification of the provisions of the bilateral Agreement listed in the Annex to this Note. The Mission of the Republic of Peru avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of the European Communities the assurance of its highest consideration. Brussels,. ANNEX Provisions of the Agreement between the European Economic Community and the Republic of Peru on trade in textile products, initialled in Brussels, on 13 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of Peru on trade in textile products initialled in Brussels, on 8 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industries Article 6 Imports to EC for re-export after processing Article 9, as amended paragraphs 1 and 2 Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Protocol A, as amended, excluding references to: Article 7 (5), Article 8, and Agreed Minute No 1 of the Agreement, as amended Classification, Origin, Double checking, Export certificates, Certificates of origin etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Origin certificates specimen, Export certificates etc. Protocol B, Excluding last sentence of paragraph 1 Cottage industry Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Agreed Minute No 4 (1992) Regional concentration Note verbale (1992) Refers to Agreed Minute No 2 (1992) NOTE VERBALE The Directorate-General I of the Commission of the European Communities presents its compliments to the Mission of the Republic of Peru to the European Communities and has the honour to refer to the Note verbale of the European Commission of 22 December 1993 (No 020825) and the Note verbale of the Mission of Peru of 23 June 1994 (No 7-7-M/45) concerning the administrative arrangements agreed to be notified to the World Trade Organization under Article 2 (17) of the Agreement on textiles and clothing. The Directorate-General has the honour to confirm its agreement on the list of provisions as modified by Note verbale of the Mission of Peru of 23 June 1994 and will notify the modified list to the World Trade Organization after the internal procedures for the conclusions of these arrangements have been completed. The Directorate-General for External Relations of the Commission of the European Communities avails itself of this opportunity to renew to the Mission of the Republic of Peru to the European Communities the assurance of its highest consideration. Brussels,. ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and the Republic of the Philippines AGREED MINUTE During consultations held between delegations from the Republic of the Philippines and the Commission of the European Communities, the two parties agreed that the provisions of their bilateral Agreement on trade in textile products, initialled on 28 June 1986, as last modified by the Exchange of Letters initialled on 27 November 1994, listed in the Annex to this Agreed Minute, shall continue to govern their trade relations in the textile sector. As a consequence, these provisions shall be notified to the Textiles Monitoring Body (TMB) as constituting the basis of their administrative arrangements within the meaning of Article 2 (17) of the Uruguay Round Agreement on Textiles and Clothing. For the Republic of the Philippines For the European Community ANNEX Provisions of the Agreement between the European Community and the Republic of the Philippines on trade in textile products, initialled on 28 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of the Philippines on trade in textile products, initialled in Brussels, on 27 November 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industry Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry Protocol E OPT operations Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Note verbale (1992) Refers to Agreed Minute No 2 (1992) Agreed Minute No 4 (1992) Regional concentration Agreed Minute No 3 (1986) Exceptional flexibilities Agreed Minute No 7 (1986) Flexibilities between ASEAN countries ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and the Republic of Singapore NOTE VERBALE The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of Singapore to the European Communities and has the honour to refer to the Agreement On textile products negotiated between the Republic of Singapore and the Community applied since 1 January 1987, as extended by the Exchange of Letters applied since 1 January 1992 and as further extended by the Exchange of Letters of 26 November 1992. With a view to ensuring a smooth and efficient implementation of the Agreement on integration of the textiles and clothing sectors into GATT rules and disciplines negotiated within the framework of the Uruguay Round of GATT negotiations, the Commission has the honour to inform the authorities of the Republic of Singapore that it intends to notify to the Textiles Monitoring Body the provisions, contained in the attached list, of the abovementioned Agreement on textile products as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textiles Agreement. The Directorate-General would be grateful if your authorities could confirm as soon as possible their agreement on the details of this notification. The Directorate-General for External Relations avails itself of this opportunity to renew to the Mission of the Republic of Singapore to the European Communities the assurance of its highest consideration. Brussels,. Provisions of the Agreement between the European Economic Community and the Republic of Singapore on trade in textile products, initialled in Brussels, on 28 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of Singapore on trade in textile products, initialled in Brussels, on 26 November 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industries Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry Protocol E, as amended OPT operations Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Agreed Minute No 4 (1992) Regional concentration Note verbale (1992) Refers to Agreed Minute No 2 (1992) NOTE VERBALE The Mission of the Republic of Singapore to the European Communities presents its compliments to the Directorate-General for External Relations of the Commission of the European Communities and has the honour to refer to the Directorate-General's Note verbale No 020827 of 22 December 1993 and to the Agreement on textile products between the Republic of Singapore and the Community applied since 1 January 1987, as extended by the Exchange of Letters applied since 1 January 1992 and as further extended by the Exchange of Letters of 26 November 1992. The Singapore Trade Development Board noted the Commission's intention to notify the Textile Monitoring Body selected provisions in the abovementioned Agreement on textile products as ‘administrative arrangements’, within the meaning of Article 2 (17) of the Uruguay Round Textile Agreement. The Singapore Trade Development Board is of the view that Article 7 of the abovementioned Agreement should also fall within the meaning of Article 2 (17) of the Uruguay Round Textile Agreement. The Singapore Trade Development Board understands that the text of the bilateral textile Agreements concluded between the European Communities and the exporting countries are more or less the same. As such, the Singapore Trade Development Board would like to know whether the Commission would be notifying the same provisions in the other bilateral textile Agreements of the Communities to the Textile Monitoring Body. The Singapore Trade Development Board would also be pleased to know the schedule of the notification by the Commission to the Textile Monitoring Body. The Singapore Trade Development Board would like to reaffirm that the understanding reached between the textile negotiators of the European Community and Singapore with regard to the provisions of Article 12 of the abovementioned Agreement as recorded in the confidential Agreed Minutes signed and Confidential Letters exchanged on 26 November 1992 remain unchanged. The Mission of the Republic of Singapore avails itself of this opportunity to renew to the Directorate-General for External Relations the assurances of its highest consideration. Brussels,. NOTE VERBALE The Directorate-General of External Economic Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of Singapore to the European Communities and has the honour to refer to the Mission's Note verbale No 030/94 concerning the Agreement on textiles products between the Republic of Singapore and the Community applied since 1 January 1987, as extended by the Exchange of Letters initialled on 26 November 1992. The Directorate-General agrees with the suggestion made by the Singapore Trade Development Board that Article 7 of the abovementioned Agreement should also be included in the notification of administrative arrangements within the meaning of Article 2 (17) of the WTO Textiles and Clothing Agreement. In addition, the Directorate-General wishes to confirm that the Commission intends to notify to the WTO the same provisions contained in all other bilateral Agreements which the Community has concluded under the MFA. The Commission intends to notify such administrative arrangements to the WTO secretariat before 1 October 1994. The Directorate-General confirms that the understanding reached between the textiles negotiators of the European Communities and Singapore with regard to the provisions of Article 12 of the abovementioned Agreement as recorded in the confidential Agreed Minutes signed and Confidential Letters exchanged on 26 November 1992 remain unchanged. The Directorate-General for External Economic Relations avails itself of this opportunity to renew to the Mission of the Republic of Singapore the assurance of its highest consideration. Brussels,. ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and the Republic of Korea NOTE VERBALE The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Republic of Korea to the European Communities and has the honour to refer to the Agreement on textile products negotiated between the Republic of Korea and the Community applied since 1 January 1987, as extended by the Exchange of Letters initialled on 16 October 1991 and as further extended by the Exchange of Letters of 18 December 1992. With a view to ensuring a smooth and efficient implementation of the Agreement on integration of the textiles and clothing sectors into GATT rules and disciplines negotiated within the framework of the Uruguay Round of GATT negotiations, the Commission has the honour to inform the authorities of the Republic of Korea that it intends to notify to the Textiles Monitoring Body, the provisions, contained in the attached list, of the abovementioned Agreement on textile products as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textiles Agreement. The Directorate-General would be grateful if your authorities could confirm as soon as possible their agreement on the details of this notification. The Directorate-General for External Relations avails itself of this opportunity to renew to the Mission of the Republic of Korea to the European Communities the assurance of its highest consideration. Brussels,. Provisions of the Agreement between the European Community and the Republic of Korea on trade in textile products initialled in Brussels on 7 August 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Republic of Korea on trade in textile products, initialled in Brussels, on 18 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industry Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Note verbale (1992) Refers to Agreed Minute No 2 (1992) Agreed Minute No 4 (1992) Regional concentration NOTE VERBALE The Mission of the Republic of Korea to the European Communities presents its compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and has the honour to refer to the Agreement on trade in textile products initialled on 7 August 1986, as extended by the Exchange of Letters initialled on 16 October 1991, and as further extended by the Exchange of Letters of 18 December 1992. The Mission has also the honour to refer to the Note verbale of the Commission of 22 December 1993 regarding the notification to the Textile Monitoring Body of the provisions contained in the abovementioned Agreement on textile products as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textiles Agreement, and to inform the Commission that it confirms its agreement on the details of the abovementioned notification. The Mission of the Republic of Korea to the European Communities avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of the European Communities the assurance of its highest consideration. Brussels,. ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and the Democratic Socialist Republic of Sri Lanka NOTE VERBALE The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Democratic Socialist Republic of Sri Lanka to the European Communities and has the honour to refer to the Agreement on textile products negotiated between the Democratic Socialist Republic of Sri Lanka and the Community applied since 1 January 1987, as extended by the Exchange of Letters initialled on 25 October 1991 and as further extended by the Exchange of Letters of 17 December 1992. With a view to ensuring a smooth and efficient implementation of the Agreement on integration of the textiles and clothing sectors into GATT rules and disciplines negotiated within the framework of the Uruguay Round of GATT negotiations, the Commission has the honour to inform the authorities of the Democratic Socialist Republic of Sri Lanka that it intends to notify to the Textiles Monitoring Body the provisions, contained in the attached list, of the abovementioned Agreement on textile products as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textiles Agreement. The Directorate-General would be grateful if your authorities could confirm as soon as possible their agreement on the details of this notification. The Directorate-General for External Relations avails itself of this opportunity to renew to the Mission of the Democratic Socialist Republic of Sri Lanka to the European Communities the assurance of its highest consideration. Brussels,. Provisions of the Agreement between the European Community and the Democratic Socialist Republic of Sri Lanka on trade in textile products, initialled on 31 May 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Democratic Socialist Republic of Sri Lanka on trade in textile products, initialled in Brussels, 17 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industry Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry Protocol E OPT operations Joint Declaration (1986) Batik fabrics and products thereof Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Note verbale (1992) Refers to Agreed Minute No 2 (1992) Dear Mr. , Please refer to Note verbale No 020839 dated 22 December 1993. The Competent Authority for the Textile Monitoring Body of Sri Lanka has no objection to the proposed notification which is required to facilitate the administration of the Bilateral Textile Agreement after its integration into the Uruguay Round Textiles Accord. Yours sincerely, ADMINISTRATIVE ARRANGEMENTS on trade in textile products between the European Community and the Kingdom of Thailand NOTE VERBALE The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of the Kingdom of Thailand to the European Communities and has the honour to refer to the Agreement on textile products negotiated between the Kingdom of Thailand and the Community applied since 1 January 1987, as extended by the Exchange of Letters initialled on 9 October 1991 and as further extended by the Exchange of Letters of 17 December 1992. With a view to ensuring a smooth and efficient implementation of the Agreement on integration of the textiles and clothing sectors into GATT rules and disciplines negotiated within the framework of the Uruguay Round of GATT negotiations, the Commission has the honour to inform the authorities of the Kingdom of Thailand that it intends to notify to the Textiles Monitoring Body, the provisions, contained in the attached list, of the abovementioned Agreement on textile products as ‘administrative arrangements’ within the meaning of Article 2 (17) of the Uruguay Round Textiles Agreement. The Directorate-General would be grateful if your authorities could confirm as soon as possible their agreement on the details of this notification. The Directorate-General for External Relations avails itself of this opportunity to renew to the Mission of the Kingdom of Thailand to the European Communities the assurance of its highest consideration. Brussels,. Provisions of the Agreement between the European Community and the Kingdom of Thailand on trade in textile products, initialled on 28 June 1986, as amended by the Agreement in the form of an Exchange of Letters amending the Agreement between the European Economic Community and the Kingdom of Thailand on trade in textile products, initialled in Brussels, on 17 December 1992, which will be notified as administrative arrangements under Article 2 (17) of the Uruguay Round Textiles Agreement Article Description Section 1: Trade arrangements   Article 2 (3) Determination of origin of covered products Article 4 Reimports after OPT Article 5 Cottage industry Article 6 Imports to EC for re-export after processing Article 9, as amended Exchange of statistical information Article 10 Amendments to classification Article 11 Circumvention Article 12, as amended Regional concentration Article 16 (1), as amended Consultations Protocol A, as amended Classification, Origin, Double checking, Export certificates, Certificate of origin etc. , Export certificate etc. , Administrative cooperation, Specimen of export licence (textiles) Form 5, Specimen of certificate of origin Protocol B Cottage industry Protocol E OPT operations Joint Declaration (1986) Batik fabrics and products thereof Agreed Minute No 2 (1992) Temporary specific management system Agreed Minute No 3 (1992) Regions with traditionally small quotas Note verbale (1992) Refers to Agreed Minute No 2 (1992) Agreed Minute No 4 (1992) Regional concentration NOTE VERBALE The Mission of Thailand to the European Communities presents its compliments to the Directorate-General for External Economic Relations of the Commission of the European Communities and with reference to the Mission's Note No 250/2537 dated 15 February 1994, concerning the consideration by the Thai authorities on the notification to the Textile Monitoring Body of the administrative arrangement provisions under the existing Agreement on textile products between Thailand and the Community as last extended by the Exchange of Letters of 17 December 1992, has the honour to inform the latter that the Thai authorities concerned wish to propose some modifications to the notification to the Textile Monitoring Body suggested by the Directorate-General's Note verbale No 020836 dated 22 December 1993 as follows: 1. omit Article 16 (1) as amended regarding consultations due to the fact that the MFA provides a provision on consultations which is more flexible in terms of the period of consultation, and 2. add Article 7 (except paragraph 5) regarding flexibility of quota administration. The Mission of Thailand avails itself of this opportunity to renew to the Directorate-General for External Economic Relations of the Commission of European Communities the assurances of its highest consideration. Brussels,. NOTE VERBALE The Directorate-General for External Relations of the Commission of the European Communities presents its compliments to the Mission of Thailand to the European Communities and has the honour to refer to the Mission's Note verbale No 997/2537 dated 5 July 1994 concerning the administrative arrangements to be notified under Article 2 (17) of the WTO Textiles and Clothing Agreement. The Directorate-General confirms its agreement to the two amendments to the draft notification annexed to the Directorate-General's Note verbale No 20836 dated 22 December 1993, which the Mission of Thailand has proposed. The Directorate-General avails itself of this opportunity to renew to the Mission of Thailand the assurance of its highest consideration. Brussels,

Proposal for a COUNCIL REGULATION (EC) amending Regulation (EEC) No 2847/93 establishing a control system applicable to the Common Fisheries Policy

http://publications.europa.eu/resource/cellar/407d015b-c123-4345-9d4d-5407e6efbec6

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 28. 05. 1996 COM(96) 232 final 96/O140(CNS) Proposal for a COUNCIL REGULATION (BO amending Regulation (EEC) No 2847/93 establishing a control system applicable to the Common Fisheries Policy (presented by the Commission) REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT ON THE ESTABLISHMENT OF A SATELLITE-BASED VESSEL MONITORING SYSTEM FOR COMMUNITY FISHING VESSELS EXPLANATORY MEMORANDUM The present proposal for a Council Regulation amende Council Regulation (EEC) No 2847/93 establishing a control system applicable to the Common Fisheries Policy (hereinafter referred to as "Control Regulation"), with a view to require the Member States to establish satellite-based fishing vessel monitoring systems. The 1992 Commission proposal for a new Control Regulation provided for the implementation of a continuous position monitoring system of fishing vessels using satellite communications in order to improve effectiveness of fisheries control. However, at that stage, the Council did not accept the Commission proposal. Instead, in the framework of an overall compromise the Council and the Commission agreed to legal provisions which required: - Member States to carry out pilot projects in order to assess the technology to be used for the purpose of fisheries control, - to postpone a decision, until June 1996, on when, whether and to what extent a continuous position monitoring system shall be implemented for fishing vessels. All Member States concerned have carried out, from July 1994 to December 1995, pilot projects for satellite monitoring, involving up to 350 Community vessels. The implementation of pilot projects have demonstrated that satellite-based continuous monitoring of fishing vessels will greatly improve the effectiveness of fisheries control. The conclusions of the implementation of the pilot projects are reflected in the "Report on the establishment of a satellite-based vessel monitoring system for Community fishing vessels". This report is based on the reports submitted by each Member State. Taking into account the experience obtained, the present proposal for a Council Regulation amending Council Regulation (EEC) No 2847/93, provides for the implementation by Member States of satellite-based continuous monitoring systems for tracking fishing vessels flying their flag and which enable them to communicate to the Member States in which waters they are carrying out their activities, the localisation of its vessels. It is provided that such monitoring applies to I all fishing vessels exceeding a certain lenght whilst this obligation should be implemented gradually in the period 1997-1999. Initially vessels operating in sensitive fisheries should be monitored whilst finally all vessels should be covered. Furthermore, the present proposal contains provisions which shall ensure cooperation between the Member States concerned. Finally, in accordance with Article 3 of Regulation (EEC) No 2847/93, it falls to the Council to adopt a decision before 1 July 1996. PROPOSAL FOR A COUNCIL REGULATION ^£ I © Wofr VJÎ^ amending Regulation (EEC) No 2847/93 establishing a control system applicable to the Common Fisheries Policy THE COUNCIL OF THE EUROPEAN UNION Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission ', Having regard to the opinion of the European Parliament2, whereas fishstocks have been overexploited in recent years and therefore significant efforts on surveillance and control of fishing activities are required to remedy this situation; whereas there is a need to use cost-effective measures and to improve availability and accuracy of effort data, such as by introducing satellite based vessel monitoring systems; whereas, pursuant to Article 3 of Council Regulation (EEC) No 2847/93 4 establishing a control system applicable to the Common Fisheries Policy, the Council can decide for a continuous position monitoring system to be established for Community fishing vessels; O. J. No L 2 6 1, 2 0. 1 0. 1 9 9 3, p. 1 H whereas experience gained in the application of pilot projects carried out by the Member States in accordance with Commission Regulation (EC) No 897/94 5, laying down detailed rules for the application of Council Regulation (EEC) No 2847/93 as regards pilot projects relating to continuous position monitoring of Community fishing vessels, has demonstrated that several satellite-based Vessel Monitoring Systems can be used to determine the position of fishing vessels; whereas satellite-based continuous monitoring of certain categories of Community fishing vessels will improve effort management, surveillance of sensitive areas, crosschecking of logbooks, and monitoring of landings, HAS ADOPTED THIS REGULATION: 1. Article 3 of Council Regulation No 2847/93 is replaced by the following: Article 1 1. Each Member State shall establish a satellite-based vessel monitoring system, hereinafter referred to as "VMS", to monitor the position of Community fishing vessels. "Article 3 The VMS shall apply no later than 1 January 1997 to all Community fishing vessels belonging to at least one of the following categories regardless of their length : vessels operating on the high seas, except in the Mediterranean Sea, vessels operating in the waters of third countries, vessels catching fish for reduction to meal and oil, vessels using driftnets longer than one kilometer, as well as, no later than 1 January 1999, to all other Community fishing vessels exceeding 15 metres in length overall. O. J. No L 1 0 4, 2 3. 0 4. 1 9 9 4, p. 18 r 2. Member States shall ensure that satellite-tracking devices be installed and fully operational on Community fishing vessels flying their flag to which VMS shall apply. The satellite- tracking device shall enable a fishing vessel to communicate by satellite to its flag State, its geographical position and where applicable the effort reports referred to in Article 19b below. In the case of force majeure relevant information shall be communicated by radio via a radio station approved under Community rules for the reception of such information. Member States shall conduct an annual inspection of the satellite-tracking devices installed on board the fishing vessels flying their flag. 3. The masters of the Community fishing vessels to which VMS applies shall ensure that the satellite-tracking devices are at any time fully operational and that the information referred to in paragraph 2 is transmitted. 4. Member States shall establish and operate Fisheries Monitoring Centres, hereinafter referred to as "FMC", which shall monitor fishing activities and fishing effort. The FMC shall be operational no later than 1 January 1997. The FMC of a particular Member State shall monitor the fishing vessels flying its flag, regardless of the waters in which they are operating or the port they are in as well as Community fishing vessels flying the flag of other Member States operating in the waters under the sovereignty or the jurisdiction of that particular Member State. 5. Where its fishing vessels are operating in waters subject to the sovereignty or jurisdiction of another Member State, the flag Member State shall ensure immediate communication of spécifie data related to their position by its FMC to the FMC of the coastal Member State concerned. The flag Member State shall be discharged of this obligation if the fishing vessels flying its flag transmit directly all relevant information to the FMC of the Coastal Member State concerned, on the basis of a protocol to be agreed upon between the flag Member State and the coastal Member State, which shall be transmitted to the Commission. / 6. Each flag Member State shall appoint the competent authorities responsible for the FMC and shall take the appropriate measures to ensure that its FMC has the proper staffing resources and is equipped with computer hard- and software enabling automatic data processing and electronic data transmission. Member States shall provide for back-up and recovery procedures in case of system failure. Member States may operate a joint FMC. 7. The flag Member State shall take the necessary measures to ensure that the data received from its fishing vessels are recorded in computer-readable form for a period of three years. The Commission shall have direct access to these computer files at any time. Due respect shall be given to the prevailing rules concerning data protection. 8. Detailed rules for the implementation of this Article shall be decided in accordance with the procedure laid down in Article 36. " This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Communities. Article 2 This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at For the Council The President 1 REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT ON THE ESTABLISHMENT OF A SATELLITE-BASED VESSEL MONITORING SYSTEM FOR COMMUNITY FISHING VESSELS S Table of contents I. Introduction 1. Background 2. The International Context II. The pilot projects 1. Evaluation of the pilot projects The issue of data exchange 2. Legal and Evidential Issues 3. III. The appropriateness of a satellite-based VMS for fishery enforcement and management Annex / INTRODUCTION For many and many generations, the stars have been the sole means of navigation over land and on sea. Still in use today as back-up, celestial navigation has been gradually complemented by other navigation techniques. Over the past decades, the world has seen a revolutionary transition to space- based systems. Satellite navigation is probably one of the better known applications of space technology. Today, satellite-based systems are finding new applications in many other areas including air (traffic control systems, approach and landing systems,. ), road (private transport, truck management,. ), rail and survey sectors. The number of users of these systems and the economic benefits increase continuously, due to liberalisation and privatisation initiatives. The technologies developed in different areas can be applied to fisheries monitoring, control and surveillance, as will be demonstrated hereafter. This report is made in response to a formal obligation pursuant to Article 11 of Commission Regulation (EC) No 897/94 which requires the Commission to present a report to the Council regarding the pilot projects carried out by the Member States relating to the continuous position monitoring of Community fishing vessels^). It is partly based on the final reports of the Member States, which were unfortunately transmitted with delay. () OJ No L 104/18 yto 1. Background In 1992, the Commission proposed that a continuous position-monitoring system using satellite communications should be introduced for fishing vessels, in order to improve the effectiveness of surveillance of fishing activities^). Subsequently, the Council decided that Member States were to carry out pilot projects, in cooperation with the Commission, in order to assess the technology to be used and the vessels to be included in the above mentioned system (as provided for by Article 3 of Council Regulation (EEC) No 2847/93 establishing a control system applicable to the common fisheries policy, of 12 October 1993, hereafter called "the Control Regulation"). Commission Regulation (EC) No 897/94 laid down detailed rules for the pilot projects. Thirteen EU Member States (Belgium, Denmark, Germany, Greece, Spain, France, Ireland, Italy, the Netherlands, Portugal, Finland, Sweden and the United Kingdom) have carried out pilot projects for satellite monitoring, involving up to 350 vessels throughout the Community. Three different, commercially available, satellite-based vessel monitoring systems (Argos, Euteltracs and Inmarsat) were used to track the movements of the participating vessels. Several Member States have tested more than one of these systems. The pilot projects were funded with ECU 10 million from the Community budget. The projects started in July 1994 and were due to end in June 1995. ( ') COM(92) 392 final sM On request of a number of Member States, whose projects were overdue, the projects were prolonged to December 1995. A number of Member States continue to use the systems as a means of improving and developing their understanding of this type of technology for fisheries enforcement and conservation purposes. The pilot projects were coordinated by the European Commission. The Commission regularly organised meetings of the Expert Group Fisheries Control with the national officials in charge in the Member States in order to monitor the progress of the projects. The Commission has also been conducting trials since 1992. It has been using its inspection vessel operating in the Northwest Atlantic Fisheries Organisation (NAFO) Regulatory Area (i. e. international waters off Newfoundland) for this purpose. 2. The International Context The management dilemma in commercial fisheries of reconciling the availability of limited fishery resources with the overcapacity in the catching sector has been compounded by the difficulties enforcement agencies face with monitoring large numbers of vessels spread over immense ocean areas. In recent years, many nations have resorted to technological innovations such as monitoring vessel locations by satellite as a means of improving the enforcement and effectiveness of their fishery management regimes. A number of examples are set out below. /K- In April 1990, an international agreement among the United States of America, Canada and Japan required that satellite monitoring be placed on 100% of the Japanese squid and large-mesh driftnet fishing vessels operating in the North Pacific in 1990. Similar agreements were reached between the U. S. and Korea and the U. S. and Taiwan. The U. S. has monitored the operations of nearly 800 fishing vessels on the high seas. More recently a score of U. S. longliners have been equipped with satellite surveillance devices in the Western Pacific pelagic longline fishery. The U. S. are at present preparing a scheme for two specific fisheries in the New England region (groundfish and scallops). On 1 January 1994, Australia officially implemented its first Vessel Monitoring System in a deep sea Orange Roughy trawl fishery with approximately 30 vessels. Further developments include extending the coverage of the system to Tuna longliners and Northern Prawn fishery trawlers for both position and catch reporting. Since 1 April 1994, New Zealand requires certain categories of vessels to carry and operate vessel monitoring equipment. At present around 200 vessels are equipped. Several other countries worldwide have been conducting trials or are considering doing so: Argentina, Canada, Chile, French overseas territories (French Polynesia and New Caledonia), Indonesia, Iran, Japan, Morocco, Norway, Peru, Russia and Taiwan. Both the United Nations agreement for the implementation of the provisions of the UN Convention on the Law of the Sea of 10 December 1982, relating yfz to the conservation and management of straddling fish stocks and highly migratory fish stocks and the Code of Conduct for Responsible Fisheries make explicit reference to the use of vessel monitoring systems (VMS). The Bering Sea Convention foresees that each contracting party shall require its fishing vessels that fish for pollack in the convention area to use real-time satellite position-fixing transmitters while in the Bering Sea. Other regional organisations such as CCAMLR (Antarctic), ICCAT (Atlantic tuna), FFA (South Pacific) and NAFO (Northwest Atlantic) have also taken interest in the subject. NAFO Contracting Parties will carry out pilot projects involving 35% of the fishing fleet operating in the NAFO Regulatory Area during 1996/1997. On 21-22 November 1995, the Commission organised an International Symposium on Fisheries Enforcement in Madrid, Spain. The aim of the symposium was to consider the use of satellite-based technology for monitoring, control and surveillance. Thirteen Member States, four third countries, the FAO and a score of companies have participated. The symposium resulted in a useful exchange of information among participants. Experience outside the European Union has clearly indicated that although satellite monitoring has not replaced conventional enforcement methods, it has made them more efficient and effective. In particular, it has allowed enforcement agencies to identify problems on a priority basis. Other than the use of satellite technology for enforcement purposes there have been many satellite technology innovations that have helped fishermen to operate more efficiently. These applications have included the Global s* Positioning System (GPS) satellites that have allowed fishing vessels to immediately determine their position, course and speed. Other developments include satellite application of remote sensing to fisheries which has facilitated the precise location of highly productive biological zones of certain stocks. Furthermore, telecommunication satellites have improved inter-vessel communications for some fishing fleets and this saves search times in locating the optimal fishing sites as well as providing additional security in the event of emergency. H. THE PILOT PROJECTS Member States have carried out extensive trials with Vessel Monitoring Systems in the course of their respective projects. Globally, more than 300 Community fishing vessels have been equipped with a blue box (30 Argos, 60 Euteltracs and 175 Inmarsat, in addition to Portugal where MONICAP is operational with over one hundred vessels). In 1995, Finland and Sweden set up a joint pilot project with Denmark. Sweden because of the short time frame of their project did not however succeed in finding voluntary participant vessels. All Member States have tested GPS-INMARSAT. Only some Member States tested ARGOS and/or EUTELTRACS. In a complementary project, Greece has also tried out VHF/DSC data communication, the use of which is more limited to territorial waters. The United Kingdom has conducted trials with Automatic Position Recorders (APR), which store data onboard the fishing vessel without transmitting the information in real-time. M The Annex recapitulates the main facts about each project. J6 1. Evaluation of the Pilot Projects This section summarises the principle findings of the Member State reports and the reflections of the Expert Group Fisheries Control which was convened regularly throughout the duration of the pilot projects. The pilot projects proved the reliability of real-time satellite position monitoring equipment on board fishing vessels and established that this type of technology will greatly enhance the efficiency and effectiveness of the existing aerial, surface and land based resources. Although the pilot projects in the Member States revealed a number of technical problems, they also clearly demonstrate that these could be resolved by a joint approach between the project managers and the system providers. It was particularly evident that satellite-based vessel monitoring technology has evolved considerably during the period of the project. This trend is set to continue. The further development of ready-to-use products as well as the improvement in satellite services will greatly assist the realisation of the full potential of a future operational system. The pilot project demonstrated that the quality, robustness and reliability of vessel equipment had improved significantly during the trial period. Ongoing technological progress will continue to offer new functionalities at a lower cost. Prices of mobile equipment are expected to drop significantly with the advent of low earth orbit satellite systems, and the liberalisation and privatisation policies should diminish telecommunication costs. Computer hard- and software is getting cheaper in general. The principle problem encountered was the loss of data through system failures. This problem ^ occurs however only occasionaly and can be resolved by appropriate back-up and recovery procedures. All Member States reported that the Global Positioning System (GPS), integrated in the ARGOS transponders and used in combination with INMARSAT C, is sufficiently precise for fishery enforcement purposes. The positioning function of Euteltracs is evaluated positively as well. 2. The Issue of Data Exchange A significant number of data exchange trials between Member States have been undertaken during the operational phase of the pilot projects. The trials identified the complexity and difficulties of exchanging position data. However, they also provided valuable information on how data exchange may be improved and how a unique solution or other alternatives may be achieved in an operational system. The data exchange format proposed by Denmark and X. 25 data exchange protocol have been accepted as standards for the purpose of the pilot projects. The X. 25 services available are however not the same in each Member State. A number of Member States failed to exchange position reports on a regular basis. In this regard, the technical effort required to establish and operate reliable and effective data communication procedures during the period of the pilot project has apparently been underestimated by the Member States. From the Commission point of view this was the least successful aspect of the pilot project. S* Direct transmission from the fishing vessel to the coastal state has only been tested by two Member States. It can nevertheless be considered to be a valid alternative for communication by the Flag State to the Coastal State. Member States recognize the need to standardise the data exchange procedures and reflect further on the architecture of the future Community system for satellite monitoring. In that context the issues of inter-operability of different mobile satellite communication and tracking technologies with terrestrial networks will have to be addressed in a comprehensive manner. It should be noted that the issue of data communication between Member States is a general issue that is not limited to satellite tracking applications. 3. Legal and Evidential Issues In their reports Member State did not undertake an elaborate assessment of the legal and evidential issues pertaining to the data acquired from a satellite based vessel monitoring system. The Commission is nevertheless aware that the vessels participated in the pilot projects on a voluntary basis and that many issues such as tampering or misuse of the devices for the purpose of cloning (the unauthorised use of a legitimate unit to mislead the authorities as to the correct location of vessels) or of ghosting (the unauthorised disabling of a unit) will not be fully apparent until the system is mandatory for certain categories of vessels. It is therefore essential that the full onus of responsibility for the installation, operation and maintenance of the operational equipment is placed on the vessel and that it will be illegal to be at sea without an operational unit on board. It is also imperative that there will be a full range of appropriate sanctions, as well as incentives, to ensure A that vessels comply with the regulatory requirements. In general, Member States have widely diverging rules of evidence. The admissibility and evidential value of the data provided by a satellite-based vessel monitoring system could to some extent differ in each Member State, such as is the case with other information, e. g. photographs taken during aerial surveillance flights. In order for VMS to operate effectively, co operation between the competent authorities of the Flag State and the Coastal state is required. This may imply that certain Member States will have to introduce rules under their national law in order to enable the evaluation of evidence obtained by satellite-based VMS. m. THE APPROPRIATENESS OF A SATELLITE-BASED VMS FOR FISHERY ENFORCEMENT AND MANAGEMENT The trials demonstrated that a fully operational system will have many benefits for fisheries enforcement. As noted in the Commission Report on Monitoring the Common Fisheries Policy (l) there are at present many serious shortcomings in the effectiveness and efficiency of enforcement. Satellite monitoring of fishing vessels will improve the control of many areas in the current fisheries regime. In particular it will : - improve effort management by providing high-quality effort (') COM (96) 100 final reports; - - improve the monitoring of closed boxes or sensitive areas; allow a more cost effective deployment of patrol vessels and surveillance aircraft as well as a more efficient use of boarding parties at sea; - allow the verification of logbook data and in some instances the validation of catch area reports; - - assist in the detection of illegal or unauthorised landings; allow the monitoring of the advance notification of landing requirement. The diverse nature of EU fisheries requires a complex management and control structure. However, in the long term a satellite based vessel monitoring system may allow simplification of the regulatory framework. In particular, it may provide an incentive for fishermen to comply with the regulations which in turn may result in a reduction of some of the current obligations such as hail requirements. Satellite-based systems will assist the monitoring of fishing effort and will, if combined with other enforcement tools, improve the recording of quota uptake by vessels. From the Community perspective, a satellite based vessel monitoring system will improve the uniform application of the regulatory framework, enhance cooperation between enforcement agencies and ensure greater transparency of the fishery control and enforcement effort in the Member States. U The pilot projects in the Member States revealed that there are also many advantages for the fishing industry. These include, cheaper communication costs, improved safety features in the event of an emergency, confidential messaging services for catch and market information, and improved access to weather, port, and other information. Furthermore, recent experience in the Member States indicates that fishermen are already investing in satellite telecommunications equipment and services. The encouraging results of the pilot projects conducted by the Member States and developments in international fisheries indicate that it is now appropriate to prepare for an operational scheme applicable to Community fishing vessels. The cost of satellite-based VMS will depend mainly on the number of vessels included in the system. It can further be assumed that Member States will prefer maximum flexibility to develop a national system tailored specifically to their needs and to integrate the system with existing monitoring facilities and operations. The hard- and software purchased for the purpose of the pilot projects may be reused whenever possible. Based on an earlier study, the cost of satellite monitoring, including a control center in each Member State for monitoring a fleet of 10. 000 vessels, over five years, is likely to be of the order of 80 to 100 Mecu. The predominant part will be the mobile equipment on board of each vessel. Expenditure would normally be eligible under Council Decision 95/527/EC on a Community financial contribution towards certain expenditure incurred by Az- the Member States implementing the monitoring and control systems applicable to the Common Fisheries Policy(1). (*) O. J. No L 301, 14. 12. 1995, p. 30 Rectified O. J. No L 302, 15. 12. 1995, p. 45 lJ> SYNOPTIC TABLE (situation on 01. 05. 96) ANNEX Member State Community financial contribution (MECU) Number of vessels Minimum Actual Belgium 0,3 10 21 Denmark 0,9 10 10 Control Centre Satellite System Operational starting date (deadline: 01. 10. 94) Receipt final report (deadline: 29. 02. 96) Remarks Dienst voor Zee- visserij, Oostende Fiskeridirektoratet, Copenhagen INMARSAT March '95 - - Cost of connectivity software shared with INMARSAT April '95 26. 03. 96 Netherlands - Loss of INMARSAT data reports - Difficulties in finding voluntary participants - Developed data exchange format for position reporting Germany Greece Spain 0,4 0,8 3,0 15 22 10 20 Bundesanstalt LE, Hamburg Hellenic Coast Guard, Piraeus 124 124 IGPM, Madrid France 0,9 67 45 CROSSA, Etel INMARSAT October '94 04. 03. 96 - Telecom does not support X. 25 fast select mode INMARSAT October '94 13. 03. 96 for international communications - Tested VHF/DSC in a complementary projet - LES does not support individual polling function March ;94 14. 03. 96 - Developed an extension of the Danish data EUTELTRACS INMARSAT ARGOS EUTELTRACS INMARSAT May '95 19. 03. 96 exchange format for event reporting - Continues to use the system for effort reporting - Eutelsat developed technical solution for the integration of the data flows from the three satellite systems - Continues to use the system for effort reporting - Encryption of position reports - In favour of direct transmission to coastal state - Suggests use of central data routing facility - Not yet operational Ireland 0,7 10 10 Naval Base, Cork EUTELTRACS INMARSAT October '94 Italy 0,5 17 (20) Coast Guard, Rome INMARSAT - - - Member State Community financial contribution (MECU) Number of vessels Minimum Actual Control Centre Satellite System Operational starting date (deadline: 01. 10. 94) Receipt final report (deadline: 29. 02. 96) Remarks Netherlands 0,5 14 41 AID, Kerkrade ARGOS EUTELTRACS INMARSAT Portugal 47 104 IGP, Lisbon INMARSAT October '94 20. 03. 96 - Cost of connectivity software shared with Belgium - Loss of INMARSAT data reports - Previous experience with project "Verre Visserijen" - PTT Telecom does not support X. 25 fast select mode - Portugal did not carry out a specific pilot project, since it had prior experience with MONICAP - Satellite-monitoring is an established means of control under national law ^ A Finland Sweden United Kingdom 0,2 0,2 - 5 3 Department of Fisheries, Helsinki F i s k e r i v e r k e t, Gôteborg INMARSAT INMARSAT After accession After accession 05. 03. 96 - Joint project with Denmark and Sweden 07. 03. 96 - Joint project with Denmark and Finland - No voluntary particioants. - Equipped two Coast Guard vessels and one research vessel 0,9 19 29 MAFF, London DAFS, Edinburgh ARGOS EUTELTRACS INMARSAT September •94 22. 03. 96 (draft provisional) - Full integration of satellite systems through customised monitoring system (CTMS) - No participation of Fisheries Organisations - 18 vessels equipped with Automatic Position Recorders ISSN 0254-1475 COM(96) 232 final DOCUMENTS EN 03 n Catalogue number : CB-CO-96-242-EN-C ISBN 92-78-04484-9 Office for Official Publications of the European Communities L-2985 Luxembourg Z6

Opinion of the European Monetary Institute on a consultation from the Irish Department of Finance under Article 109f (6) of the Treaty establishing the European Community (the “Treaty”) and Article 5.3 of the Statute of the EMI as elaborated in the Council Decision of 22nd November 1993 (93/717/EC) (the “Decision”) on a proposal for legislation entitled the Central Bank Bill (the “Bill”) (CON/96/04)

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OPINION OF THE EUROPEAN MONETARY INSTITUTE on a consultation from the Irish Department of Finance under Article 109f (6) of the Treaty establishing the European Community (the “Treaty”) and Article 5. 3 of the Statute of the EMI as elaborated in the Council Decision of 22nd November 1993 (93/717/EC) (the “Decision”) on a proposal for legislation entitled the Central Bank Bill (the “Bill”). CON/96/04 1. The above consultation was initiated on 25th March 1996 by the Irish Department of Finance, which requested an opinion of the EMI within one month of receipt of the consultation, i. e. by 1st May 1996. For this purpose, the Department of Finance submitted the text of the above draft legislation together with explanatory memoranda. 2. The EMI’s competence to deliver an opinion is based on Article 1, section 1 of the Decision, as the Bill relates, inter alia, to the following: the status and powers of the Central Bank of Ireland (second indent of section 1); the collection, compilation, and dissemination of balance of payments, national accounts and other financial statistics (third indent of section 1); approval and supervision of clearing and payment systems (fourth indent of section 1); and, rules which are applicable to the regulation by the Central Bank of Ireland of financial institutions and which may have an impact upon the stability of financial institutions and markets (fifth indent of section 1). In this opinion, the EMI will restrict comments to those parts of the Bill which relate to the above areas of competence. It should also be noted that, in giving this opinion, the EMI has not reviewed all the existing provisions of Irish legislation to which the Bill refers and relates. 3. The EMI welcomes those provisions in the Bill which would enhance the influence of the Central Bank in relation to the oversight of payment systems established in Ireland. The EMI notes that sections 14 and 15 of the Bill will give the Central Bank wide powers to suspend operations of the system where terms of the original or subsequent approval of the system are breached and to revoke its approval in certain circumstances. However, the exercise of the Bank’s powers to order a payment system to cease activities or to suspend operations on an immediate basis is dependent upon the Bank having first imposed a condition or requirement on the system which has, subsequently not been complied with. To ensure that emergency situations can always be adequately dealt with the EMI recommends consideration of an ability for the Bank, where extreme circumstances exist, to require immediate suspension of operations by a system or by one or more of its members, irrespective of the prior imposition of any condition or requirement. Albeit that such powers would clearly require to be subject to - 2 - subsequent review by the courts and would also require to be tied in effectively with all other powers of the Central Bank in this area, including the provisions contained in sections 14 and 15 of the Bill as drafted, so as to ensure a coherent set of powers in this area. 4. The EMI expressly welcomes the provisions contained in sections 21, 22 and 23 of the Bill which are designed to enshrine the following principles in Irish law: finality of payments; the immediate ability of lenders to realise collateral; and, the legal enforceability of bilateral and multilateral netting arrangements. However, the EMI would suggest consideration of amendments to each of sections 21 and 22. In the case of section 21 it might prove advisable to include a more detailed provision stating at what point in the process of settlement payments are to be considered final and irrevocable - will this occur upon transmission of instructions to settle or does settlement require to have taken place? In the absence of such additional detail there is a danger that confusion may arise as to when this provision comes into effect. It is also noted that the provision only provides for finality and irrevocability between the credit institutions concerned, thereby implying that this will not be enforceable against third parties. The EMI would encourage consideration of a wider provision expressly stating that finality and irrevocability would also be enforceable against third parties (e. g. a liquidator or third party creditor). The EMI welcomes the provision in section 22 which would have the effect of ensuring that the Central Bank may realise collateral or securities immediately upon the default of a credit institution in relation to the loan against which such collateral or security is held - thereby presumably overriding any provisions of Irish law which would obstruct such immediate realisation. In view of Stage Three of EMU and the operation of a single monetary policy among participating member states, the EMI would suggest that consideration be given to extension of this provision so that its benefits not only cover the Central Bank but also extend to both the European Central Bank and other EU central banks. The EMI also welcomes the provision contained in section 50 whereby the Central Bank is to be notified of any application for the winding-up of a licensed bank before the petition is presented and considers that this will be a potentially valuable tool in enabling the Central Bank to protect payment systems, particularly those over which it exercises supervisory powers. However, it is noted that the explanatory memorandum relating to this provision in the Bill states that the reasoning for its introduction is the avoidance of potential damage which might otherwise be caused by the existence of zero hour rules. The explanatory memorandum also notes that there is no precedent under Irish law for a zero hour ruling, but that this is not precluded. The EMI would therefore encourage the Irish authorities to consider a provision - 3 - (either within the Bill or within future legislation) which would put this issue beyond doubt by stating that there is no possibility of a zero hour ruling having effect in relation to validly constituted payments and financial contracts. Such a provision would be of great potential benefit in enhancing the stability and security of financial markets where an entity which would be subject to Irish insolvency law participates. This effect could be achieved, for example, by an expanded section 21, as suggested above. 5. The EMI notes the provision, contained in section 28 of the Bill, requiring the Governor of the Central Bank to appear before a relevant Select Committee of the Dail Eireann. Such a provision is not in principle inconsistent with the requirement for independence of central banks, imposed by Article 107 of the Treaty as reflected in Article 7 of the ESCB/ECB Statute. 6. The EMI notes the further extension of the prohibition imposed upon the Governor of the Central Bank from being a director or holding shares in a bank and that this prohibition will now cover all commercial credit institutions and financial institutions and welcomes the additional degree of independence which this will ensure for the office of Governor. However, one NCB has stated that this view should not prejudice further discussions on criteria for central bank statutory requirements to become an integral part of the ESCB. 7. The EMI welcomes the simplification of the tenure of office of the directors of the Central Bank, to a standard period of five years from the date of appointment. 8. In the light of the progress achieved by the EMI, in close co-operation with the Commission, with respect to the preparatory work in the field of statistics, an expansion of section 8, subsection (a) of the Central Bank Act 1942 along the following lines is suggested: “(a) make provision for the definition, collection and study of data relating to monetary, financial, balance of payments and credit developments and publish related material;” Subject to this expansion, the EMI welcomes the provision contained within section 30 of the proposal since it embodies the desired level of co-operation between central banks and relevant national statistical institutes within the limits of their respective competences. However, to ensure that, in the future, the Central Bank will be fully able to comply with its obligations under Article 5 of the ESCB/ECB Statute as a member of the ESCB in Stage Three of EMU the EMI also considers that it would be important to insert “without prejudice to subsection (a) above,” at the start of the envisaged, new subsection (d). 9. The EMI notes the additional powers which are proposed for the Central Bank in the field of supervision and regulation of credit institutions and other financial institutions. To the extent - 4 - that these changes provide the Central Bank with greater abilities to enhance the stability and security of financial institutions and markets, they are a welcome addition to the Irish regulatory environment. 10. The EMI welcomes the provisions contained in section 52 to 57 having the effect of removing provisions which previously allowed the Central Bank of Ireland to provide financing to the public sector, noting that these changes have been initiated with the intention of compliance with Article 104 of the Treaty. 11. The EMI notes that it is the intention of the Irish authorities to bring forward further legislation to ensure that, by the date of the establishment of the ESCB, Irish legislation is compatible with the Treaty and the ESCB Statute and thereby to comply with the terms of Article 108 of the Treaty and Article 14. 1 of the ESCB/ECB Statute. The EMI also notes that adaptations will be required to allow national central banks to function as an integral part of the ESCB, as stated in Article 14. 3 of the ESCB/ECB Statute and it may be foreseen that amendments to the legislation relating to the Central Bank are also likely to be required for this purpose. 12. The EMI confirms that it has no objection to this opinion being made public. 28th May 1996

Proposal for a COUNCIL REGULATION (EC) No laying down, in respect of hops, the amount of aid to producers for the 1995 harvest

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 28. 05. 1996 COM(96) 226 final 96/0141 (CNS) REPORT FROM THE COMMISSION TO THE COUNCIL on the production and marketing of hops (1995 harvest) Proposal for a COUNCIL REGULATION (EC) No laying down, in respect of hops, the amount of aid to producers for the 1995 harvest (presented by the Commission) REPORT FROM THE COMMISSION TO THE COUNCIL on the production and marketing of hops (1995 harvest) CONTENTS Chapters 1. Introduction 2. 1995 harvest 2. 1. World situation 2. 1. 1. Production 2. 1. 2. Market trends 2. 2. Community situation 2. 2. 1. Production structure 2. 2. 2. Production 2. 2. 3. Sales and prices 2. 2. 4. Returns 2. 2. 5. Costs 3. The common organization of the market in hops 3. 1. Community policy on the hop market 3. 2. Aid for varietal conversion 4. Conclusions 4 4 4 4 5 6 6 6 7 8 9 10 10 10 12 Table 4 (Community external trade in hops and hop products) is not yet available. 1. INTRODUCTION Article 11 of Regulation (EEC) No 1696/71 requires the Commission to present to the Council an annual report on the production and marketing of hops. The purpose of this report is to provide information on trends in production, prices and demand. This report, the 25th such report presented by the Commission, outlines the main events of the 1995 harvest year. It focuses on the salient facts needed to calculate the amount of aid to producers for the 1995 harvest. The Commission proposes that hop producers should again be granted aid to supplement their incomes. 2. 1995 HARVEST 2. 1. World situation 2. 1. 1. Production Worldwide, the total area under hops was approximately 86 133 ha, of which approximately 68 585 ha belonged to members of the International Hop Growers Convention (IHGC) and Member States of the Community (see Table 1). Production in China and the countries of the former Soviet Union was also substantial, but can only be roughly estimated, as no precise figures are available. The area under hops in IHGC and EEC countries decreased on average by about 0. 7%. The decrease was most marked in Australia (- 6. 9%), the Slovak Republic (- 8. 33%) and Ireland (- 40. 69%). Estimates for the Ukraine point to a reduction of 6. 80%. Portugal (+ 21. 40%) heads the list of the few countries in which there was an increase. The decrease worldwide is about 0. 30%. At around 2 562 412 ztr the 1995 harvest was markedly higher (144 885 ztr or 5. 99%) than in 1994. Quality was better with an alpha acid content of 6. 7% and alpha acid production of 8 584 tonnes. Although the records of the 1993 harvest were not equalled, the 1995 harvest was still considerably higher - in terms of yield - than the average for the last five years. Worldwide there is overproduction of hops in relation to the needs of the breweries. For this reason the member states of the IHGC have proposed that between 5 000 and 10 000 ha should be grubbed. So far this has not been done. Although beer production in Europe has fallen year after year since 1990, this is not so in the case of other continents, especially Asia, and in particular in China, which at present ranks as the world's second-largest beer producer after the United States. Worldwide, beer production is estimated at 1 270 million hectolitres for 1996. Since this volume usually requires 8 255 tonnes of alpha acid for hopping of 5. 9 g/alpha/hl, the quantity of hops produced should in principle exceed requirements (surplus of 329 tonnes). It should be noted that, for hopping of 5. 9 g of alpha acid per hectolitre of beer, breweries need to have around 6. 5 g/hl available, the difference being accounted for by losses in storage and at the hop processing stage. It should be added that less alpha is needed than previously as a result of a trend towards manufacturing less bitter beers, on the one hand, and of constant technological progress on the other. Breweries would appear, however, still to have stocks in hand, enough to cover several months of production. 2. 1. 2. Market trend Prices for German hops were up on the previous harvest, and all the 1995 harvest has been sold. Although they fell, average American prices were still high enough to cover production costs, with the yield being considerably higher than in Europe (2. 05 tonnes/ha as against 1. 43 tonnes/ha) and the alpha acid percentage also significantly higher (9. 37% as against 5. 76%) (see Table 1). 95% of the American harvest has been sold under contract. Contracts signed in advance - although down in terms of quantity - have proved after all to be a good system even though in times of crisis it cannot operate as well as it might (see Tables 2 and 5). A point some members of the IHGC are particularly concerned about is the price-fixing procedure for aromatic varieties based on kilos of alpha rather than on the aroma itself. 2. 2 Community situation 2. 2. 1. Production structure As in agriculture as a whole, structural change in hop-growing has continued. There are now 5 043 farms growing hops in the Community (see Annex, Table A), a 4. 80% fall over 1994. At the same time the average area under hops rose from 5. 2 to 5. 5 ha per farm. More than 300 farms stopped growing hops in Germany. Since accession, Austria has been added to the list of hop-producing Member States. 2. 2. 2. Production The area under hops in the Community was 27 499 ha in 1995, i. e. 149 ha (0. 54%) down on 1994 (see Annex, Table 1), most of it (21 885 ha, or 80%) in Germany. But in that country areas were 45 ha, i. e. 0. 21%, down on 1994. At present, aromatic varieties account for 57. 99% of the area, with Hersbrucker (31. 18% of the aromatic area in spite of a reduction in Germany of 527 ha on 1994) still the most popular. Of the aromatic varieties for which there were large increases in area, the most significant are Hallertauer Tradition (+ 257 ha), Perle (+117 ha) and Spalter Select (+115 ha). Bitter varieties accounted for 41. 37% and other varieties for 0. 63%. The share of bitter varieties was slightly down in 1995 to the benefit of aromatic varieties. Of the bitter varieties Northern Brewer remained far and away the most popular (4 280 ha, which represents a fall on 1994 of 638 ha) followed by Hallertauer Magnum (1 874 ha) and Target (1 541 ha) then Brewer's Gold (1 160 ha). The area under the latter two varieties also fell, by 141 ha and 182 ha respectively. For the bitter varieties the general trend is towards increased production of the super-alpha varieties, which are more in demand on the markets, such as Hallertauer Magnum and Nugget. The area under Nugget rose by 38. 8% on 1994 and the area under Magnum by about 40. 7%. Quantitatively the 1995 harvest was far larger than the 1994 harvest (13. 41%). At 840 085 ztr, average yield was 1. 43 tonnes or 31 ztr per hectare. Quality was average, and alpha acid content was around 5. 76% on average for the Community as a whole for the three types of varieties, giving 2 419 tonnes - 82 kg per hectare - of alpha acid for beer production in 1996. 2. 2. 3. Sales and prices Overall, the average price for hops sold under contract was ECU 197/ztr, ECU 2. 60/ztr up on the 1994 harvest, ranging from ECU 132/ztr in Portugal to ECU 287/ztr in Ireland. Both these countries sold their entire production under contract (see Table 6). The average spot price for hops sold on the free market was down on the preceding year, at ECU 140/ztr as opposed to ECU 149/ztr in 1994, although here too prices differed markedly from one Member State to another, ranging from ECU 116/ztr in Spain to ECU 201/ztr in the United Kingdom. 82% of the 1995 crop was sold under contract (see Annex, Table 5). Belgium was well below this average at 36%. Highest average prices, both under contract and for spot sales, were made by the aromatic varieties (ECU 210/ztr and ECU 157/ztr respectively). The varieties fetching the highest prices were Challenger, Goldings, Hallertauer, Spalter and Tettnanger. Some varieties grown in the United Kingdom, i. e. Fuggles, Progress and WVG, also sold for prices higher than the average for the group, as did Strisselspalt in France, where average contract prices were ECU 222/ztr. The variety of aromatic hops fetching the lowest price was undoubtedly Hersbrucker, which accounted for about 31% of the area for this group of varieties (contract price ECU 187/ztr, spot price ECU 80/ztr). For bitter varieties the average price for sales under contract was ECU 179/ztr and for spot sales ECU 125/ztr, the varieties that fetched the highest prices in this group being Hallertauer Magnum and Northdown. For other varieties, contract prices and spot prices were above the Community average. This was due to the relatively high prices paid for experimental varieties in Austria and the United Kingdom and to the rather high spot prices paid for Zenith in the United Kingdom. Of the eight hop-producing Member States, four sold at prices below the Community average (all varieties taken together), i. e. Belgium, Germany, Spain and Portugal, with a low spot price in Spain (ECU 116/ztr) and a low contract price in Portugal (ECU 132/ztr). The official figures indicate that, of the 840 085 ztr produced in the Community in 1995, only 4 420 ztr (0. 53%) remain unsold. Ireland, Austria and Portugal sold their entire production under contract for an average price of ECU 287/ztr, ECU 274/ztr and ECU 132/ztr respectively (see Table 5), followed by France, which sold 94% of its production under contract for an average price of ECU 217/ztr. Producers were expecting higher prices for sales on the free market. There was a structural deficit of certain varieties in the United Kingdom for the production of English ales. Additional areas were consequently sown with Goldings and Fuggles. The variety which fetched the lowest prices, as it has since the 1993 harvest, is undoubtedly the Hersbrucker aromatic variety, which was previously very popular with the Americans, but is now suffering from a definite slow-down in demand as American purchasing policy has changed to the benefit of other varieties such as Spalter Select and Hallertauer Tradition. While Hersbrucker has been selling for only DM 152/ztr (i. e. ECU 80/ztr) on the free market, the two new aromatic varieties have been fetching around DM 374-388 ztr, i. e. ECU 167-172 ztr, which is still more than the Community average for aromatic varieties. It appears that precontracts for the coming years are being concluded only very hesitantly, for shorter periods, smaller quantities and lower prices than in previous years, since brewers know that they can always find hops on the free market. The way to increase hop prices would be to reduce the hop cultivation area in the world, as the Americans have proposed, and preferably to cut the area producing super-alpha varieties, since the hops market has become a market for alpha products. 2. 2. 4. Returns These were considerably higher than in 1994. The average return per hectare in full production was ECU 6 037 compared to ECU 5 255 in 1994 (+ 14. 88%). At Community level, returns were highest for the aromatic variety group (ECU 6 271 per ha in full production, 10. 39% up on 1994). However, Belgium, France, Austria and the United Kingdom recorded a fall for these varieties. The most profitable aromatic varieties were, for France, Strisselspalt (return of ECU 7 272/ha in full production), and for the United Kingdom Challenger (ECU 7 223/ha in full production), Goldings (ECU 7 614/ha in full production) and WVG (ECU 7 215/ha in full production). The aromatic varieties which produced a lower return in the United Kingdom than the Community average for this group of varieties were Bramling Cross and Fuggles. After Spain, the greatest increase in returns was in Germany (17. 24%), where the return on all aromatic varieties cultivated increased. Returns also increased for the bitter variety group (+ 21. 85%), reaching ECU 5 716/ha in full production, with returns in all producing Member States increasing, in some cases considerably, e. g. Germany (+ 34. 68%), Ireland (+ 17. 82%) and Portugal (+ 83. 26%). In Germany this increase is explained by the sharp increase in returns for Northern Brewer (+ 72. 80%) grown on 4 211 ha, and Brewer's Gold (+ 11. 69%), grown on 1 316 ha. On the whole, contract prices for this group of varieties in Germany increased by 8. 44%. In the case of England, the increase is explained by the fact that contract prices for Target (which covers about 1 242 ha) rose on the preceding year while yield was high at the same time. Contract prices followed the same trend in Belgium, combined with yields considerably up on 1994. In Portugal, increases were due to the fact that part of the area covered by a varietal conversion plan had by now reached the full production stage. Average returns for other varieties, cultivated principally in Germany (95 ha), and to a small extent in Belgium (2 ha), the United Kingdom (68 ha) and Austria (9 ha), rose by 19. 05%. As these varieties are only cultivated on small areas, their impact on overall returns for producers was negligible. 2. 2. 5 Production costs At ECU 9 136/ha, they were very close to those of the previous year (+ 0. 08%). Belgium had the highest production costs (ECU 12 182/ha) and Spain the lowest (ECU 5 667/ha). Fluctuations in individual Member States did not exceed 8. 27% in either direction compared with 1994 levels (see Annex, Table D). 3. THE COMMON ORGANIZATION OF THE MARKET IN HOPS 3. 1. Community policy on the hop market In 1971 a common organization of the market in hops was established by Regulation (EEC) No 1696/71. The aim was to improve product quality and safeguard the standard of living of hop growers. Since it was quite deliberately decided when the market organization was set up to make no special arrangements for external trade or intervention, the Community hop sector is highly exposed to competition on the world market. The essential aspects of the basic Regulation, which were dealt with in greater detail by subsequent, more specific Council and Commission regulations, are rules for the marketing of hops via a certification procedure and a forward contract system, for the recognition and promotion of producer groups, and for trade with non-EEC countries. The Regulation also lays down aid arrangements for Community-grown hops. The Community has two main financial responsibilities in this sector. Firstly, frequent use is made of the arrangements whereby aid per hectare is granted to producers with unsatisfactory returns. For the 1994 harvest year, aid per hectare was granted at a rate of ECU 495 for aromatic varieties, ECU 532 for bitter varieties and ECU 368 for other varieties and experimental varieties. Secondly, special aid is granted under Regulation (EEC) No 2997/87 to encourage growers to convert to varieties more suited to market requirements (see also point 3. 2. ). In addition the Community makes a contribution towards the promotion of newly founded producer groups at the initial stage provided national aid is also granted for this. However, this measure is now of little significance since almost all hop growers in the Community now belong to a recognized producer group. Of course this does not exclude the possibility of new groups being founded in the future as a result of restructuring and reorganization. 3. 2. Aid for varietal conversion The long-standing imbalance between supply and demand for most bitter varieties and the resultant problems for hop growers in certain areas of the Community led the Council to adopt special measures for the hop sector in 1987. 10 Regulation (EEC) No 2997/87 introduced special aid amounting to ECU 2 500/ha - subject to a maximum area of 1 000 ha per Member State - to be granted to recognized producer groups who undertake to implement a plan to convert areas under bitter varieties to aromatic or super-alpha varieties. In June 1989 the Council adopted Regulation (EEC) 1809/89 amending Regulation (EEC) No 2997/87 with a view to increasing the number of growers qualifying for aid under the varietal conversion programme. The amended criteria now allow special aid to be granted throughout the Community and not just in certain areas, as was originally provided for. A further restriction laying down that producer groups could take part in the conversion programme only if their total area did not increase in the period 1986 to 1988 was also lifted. The extension of the duration of the programme from 31 December 1990 as originally provided for to the end of 1995 gives the producer groups more time to implement their conversion plans. A further change was introduced by Regulation (EEC) No 423/95, extending the time limit for implementation of the conversion programme by a further two years, i. e. up to the end of 1996, in the case of Spain, Portugal and Belgium and by one year in the case of the United Kingdom. This amendment became necessary, as far as Spain is concerned, when many hop growers, whose land at the time was involved in a reparcelling project, made it known that they were prepared to take part in the varietal conversion programme. It was not possible to carry out both measures, i. e. reparcelling and subsequent varietal conversion, in the time originally provided for. For the three other Member States the reasons were a shortage of planting stock (Portugal) and bad weather (Belgium and the United Kingdom). The Community varietal conversion programme has been very well received by hop growers. All hop-growing Member States are taking advantage of it with the exception of Ireland. Some of the varietal conversion programmes submitted have been revised several times, above all to comply with requests for further areas to be included (see Annex, Table E). The programmes submitted by the different Member States provide principally for grubbing up the traditional bitter varieties Brewer's Gold and Northern Brewer, with which it is increasingly difficult to compete with American super alpha varieties on the world market, and also, in the case of Germany, grubbing up the aromatic Hersbrucker variety, which is no longer finding market outlets. 11 4. CONCLUSIONS On the basis of the foregoing analysis the Commission proposes that income aid be granted to growers for the 1995 harvest. The average level of aid for producers proposed is lower than for the 1994 harvest for the three groups of varieties. Under Article 12a of Regulation (EEC) No 1696/71 the Commission proposes that the same rate of aid be granted for areas planted with experimental varieties as for 'other varieties". The possibility of granting aid for growing experimental varieties was introduced in 1990 when the Council adopted Regulation (EEC) No 2780/90. The purpose of the aid, which can be granted for land used by growers for the cultivation of experimental varieties in collaboration with a research institute, is to encourage the development of new varieties, which must be continued if hop growing in the Community is to remain competitive. 12 Proposal for a COUNCIL REGULATION (EC) No laying down, in respect of hops, the amount of aid to producers for the 1995 harvest 13 EXPLANATORY MEMORANDUM On the basis of the attached Commission report on the production and marketing of hops from the 1995 harvest it is proposed that the Council adopt the attached proposal for a Regulation setting aid to hop growers for that harvest at the following levels. aromatic varieties bitter varieties other varieties experimental varieties ECU 444/ha ECU 416/ha ECU 298/ha ECU 298/ha. The proposal takes account of changes in returns and production costs in relation to the 1994 harvest for the different variety groups, with experimental varieties receiving the same aid as "other varieties". While average production costs are more or less the same as for the 1994 harvest (a rise of only 0. 08%), average returns per hectare for the three groups of varieties rose to ECU 6 271/ha (+ 10. 39 %), ECU 5 716/ha (+ 21. 85 %) and ECU 5 175/ha (+ 19. 05 %) respectively. The proposal is therefore for a proportionate reduction in the aid for the three groups of varieties. By comparison with the 1994 harvest the average aid rate for all varieties together decreases by 14. 88 % (from ECU 510/ha to ECU 434/ha). The cost of ECU 12. 2 million. the proposal to the EAGGF Guarantee Section is estimated at 14 Proposal for a COUNCIL REGULATION (EC) No of laying down, in respect of hops, the amount of aid to producers for the 1995 harvest THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 1696/71 of 26 July 1971 on the common organization of the market in hops , as amended by the Act of Accession of Austria, Finland and Sweden and by Regulation (EC) No 3290/94 of 22 December 1994 on the adjustments and transitional arrangements required in the agriculture sector in order to implement the agreements concluded during the Uruguay Round of multilateral trade negotiations2, and in particular Article 12(7) thereof, Having regard to the proposal from the Commission3, Having regard to the opinion of the European Parliament, Whereas Article 12 of Regulation (EEC) No 1696/71 provides that aid may be granted to hop producers to enable them to achieve a fair income; whereas the amount of this aid is fixed per hectare and differs according to varieties, taking into account the average return on the areas in full production as compared with the average returns for previous harvests, the current position of the market and trends in costs; O J N oL 175, 4. 8. 1971, p. L OJ No L 349, 31. 12. 1994, p. 105. O J N oC O J N oC 15 Whereas Article 12a of the said Regulation provides that aid to producers may also be granted for areas cultivated with experimental strains in order to facilitate the development of new varieties; Whereas an examination of the results of the 1995 harvest reveals the need to fix aid for groups of varieties of hops cultivated in the Community; whereas aid to producers should also be granted for areas cultivated with experimental strains, HAS ADOPTED THIS REGULATION: Article 1 1. For the 1995 harvest, aid shall be granted to the producers of hops cultivated in the Community for the groups of varieties set out in the Annex as well as for experimental strains. 2. The amount of the aid shall be as set out in the Annex. Article 2 This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at For the Council 16 ANNEX Aid to hop producers for the 1995 harvest Group of varieties Aid in ECU/hectare Aromatic Bitter Other Experimental strains 444 416 298 298 17 TABLE A Number and size of hop-growing farms in the Community 1995 Number of farms Total area under hops (ha) Areas under hops per farm (ha) 1994 ! 1995 1995-1994 1994 1995 1995-1994 1994 1995 1995-1994 90 3. 282 1. 447 153 2 81 31 211 86 3. 122 1. 379 136 2 82 31 205 -4 -160 -68 -17 0 1 0 -6 384 21. 930 1. 156 670 13 238 100 3. 157 374 21. 885 1. 102 670 8 244 121 3. 095 -10,05 -45 -54 -0,29 -5,29 5,71 21,4 -61,72 4,3 6,7 0,8 4,4 6,5 2,9 3,2 15,0 4,3 7,0 0,8 4,9 3,9 3,0 3,9 15,1 0,1 0,3 0,0 0,5 -2,6 0,0 0,7 0,1 Belgium Germany Spain France Ireland Austria Portugal United Kingdom <*? EC 5. 297 5. 043 -254 27. 648 27. 499 -149,24 5,2 5,5 0,2 TABLEB Average prices for selected hop varieties In Germany 1983-2000 Agricultural conversion rates 1st January Hallertauer Tettnanger Hersbrucker Norther Brewer Brewer's Gold DM/Ztr. ECU/Ztr. DM/Ztr. ECU/Ztr. DM/Ztr. ECU/Ztr. DM/Ztr. ECU/Ztr. DM/Ztr. ECU/Ztr. Spot market 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Contract market*) 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Forward c o n t r a c ts 1996 1997 1998 1999 2000 2,65660 2,51457 2,30751 2,30397 2,17266 2,09725 2,07609 2,07609 2,05586 2,05586 1,96992 1,94962 1,94962 2,65660 2,51457 2,30751 2,30397 2,17266 2,09725 2,07609 2,07609 2,05586 2,05586 1,96992 1,94962 1,94962 1,90616 1,90616 1,90616 1,90616 1,90616 316 347 465 308 569 538 515 1. 301 492 477 357 508 546 448 458 457 468 466 473 472 484 491 502 506 510 521 526 531 532 534 530 118,95 138,00 201,52 133,68 261,89 256,53 248,06 626,66 239,32 232,02 181,23 260,56 280,05 168,64 182,14 198,05 203,13 214,48 225,53 227,35 233,13 238,83 244,18 256,86 261,59 267,23 275,95 278,57 279,10 280,14 278,05 500 405 495 330 590 545 546 1. 500 527 508 470 518 544 535 550 546 540 525 527 521 521 524 5?3 529 524 532 555 559 565 567 568 188,21 161,06 214,52 143,23 271,56 259,86 262,99 722,51 256,34 247,10 238,59 265,69 279. 03 201,39 218,73 236,62 234,38 241,64 251,28 250,95 250,95 254,88 254,39 268,54 268,77 272,87 291,16 293,26 296,41 297,46 297,98 170 197 301 226 541 512 410 989 345 327 68 165 152 418 415 403 406 404 403 398 394 377 364 354 355 356 339 337 334 334 335 63,99 78,34 130,44 98,09 249,00 244,13 197,49 476,38 167,81 159,06 34,52 84. 63 77. 96 157,34 165. 04 174,65 176,22 185,95 192,16 191,71 189,78 183. 38 177,05 179. 70 182,09 182,60 177,84 176,80 175,22 175,22 175,75 262 176 245 150 198 337 $01 1358 408 451 144 236 273 380 388 385 410 405 398 378 380 376 358 361 330 353 359 355 354 356 347 98,62 69,99 106,18 65,11 91,13 160,69 144,98 654,11 198,46 219,37 73,10 121,05 140,03 143,04 154,30 166,85 177,95 186,41 189,77 182,07 183,04 182,89 174,14 183,26 169,26 181,06 188,34 186,24 185,71 186,76 182,04 174 108 109 58 141 220 208 1,006 298 300 75 120 133 358 364 352 345 329 299 276 275 256 261 271 271 270 258 252 246 255 216 65,50 42,95 47,24 25,17 64,90 104. 90 100,19 484,56 144,95 145,92 38,07 61. 55 68. 22 134,76 144,76 152,55 149,74 151,43 142,57 132,94 132. 46 124. 52 126. 95 137,57 139,00 138. 49 135,35 132,20 129. 06 133. 78 113,32 *) The prices shown are the average prices specified in contrats signed in previous years for the relevant harvest. TABLE C Return on areas in full production, in ECU/ha*) 1988 1989 1990 1991 1992 1993 1994**) 1995 1995/94 BY VARIETY GROUP Aromatic Bitter Others 5. 586 4. 491 4. 196 5. 562 4. 633 4. 093 5. 663 5. 644 5. 365 5. 854 5. 415 3. 382 5. 339 4. 328 3. 948 4. 908 3. 939 3. 569 5. 681 4. 691 4. 347 6. 271 5. 716 5. 175 10,39% 21. 85% 19,05% BY COUNTRY Belgium Germany Spain France Ireland Austria Portugal United Kingdom 4. 368 5. 238 3. 173 6. 170 5. 943 2. 452 5. 001 3. 995 5. 307 4. 473 5. 572 5. 283 4. 329 4. 577 11. 158 5. 616 4. 456 7. 450 10. 817 3. 322 5. 615 5. 931 5. 456 4. 441 5. 512 7. 901 1. 715 7. 212 6. 602 4. 818 2. 605 6. 320 9. 055 1. 495 5. 404 4. 908 3. 939 3. 569 6. 794 7. 109 1. 203 4. 803 5. 139 4. 935 5. 308 8. 346 6. 519 9. 313 1. 697 6. 548 4. 980 6. 079 4. 578 6. 978 7. 681 7. 620 3. 110 6. 203 -3. 09% 23,18% -13,75% -16,39% 17,82% -18,18% 83. 26% -5,27% BY COUNTRY AND BY VARIETY GROUP Aromatic Bitter Other 1994**) 1995 1995/94 % 1994**) 1995 1995/94 % 1994**) 1995 1995/94 % Belgium Germany Spain France Ireland Austria Portugal United Kingdom 5. 091 5. 250 1. 910 8. 757 3. 980 6. 155 2. 760 7. 258 -21,82 17,24 44,50 -17. 12 9. 249 7. 626 -17. 55 8. 244 6. 890 -16. 42 5. 175 4. 421 5. 311 5. 132 6. 519 1. 697 5. 506 5. 292 5. 954 4. 579 4. 448 7. 681 10. 157 3. 110 5. 688 2,26 34,68 -13,78 -13,33 17,82 83. 26 3,31 2. 443 4. 115 2. 321 5. 694 -4,99 38,37 12. 129 7. 452 -38,56 3. 936 4. 045 2. 77 *)Areas newly planted in 1995 and 1994, were assumed to give 40 % and 65 % respectively of the return on areas in full production. **) Following the introduction of the swith-over mechanisme on 1st February 1995, these figures have been multiplied by 1,207509 in order to allow comparison with the 1995 figures. lO Production costs per hectare - in national currency (M. N. ) and in ECU TABLE D Agricultural Year Fertilizer Insecticide Energie J Costs Buildings"*) Equipment Interest on Labour costs Otl ier Total Change conversion rate ") + ") M. N. ECU M. N. ECU M. N. mom M. N. ECU M. N. ECU M. N. ECU M. N. ECU M. N. WE&m M. N. ECU costs capital costs on 1994 % 40,8337 1994 12. 134 297 34. 357 841 10. 296 :;:::;;;::;:;:;252: 17. 875 438 125. 301 3. 069 40. 462 991 179. 488 4. 396 50. 323 39,5239 1995 11. 323 286 34. 357 869 10. 413 :;!;&«; 18. 700 473 129. 611 3,279 40. 462 1024 186. 282 4713 50. 323 mwm mwtz 470. 236 11516 481. 471 12,182 5,78 1,94962 1994 674 346 1. 954 1002 3. 062 :;:;sl57t; 827 424 3. 219 1. 651 1. 803 925 5. 610 2,877 436 mmM 17. 585 «. 020 1,90616 1995 658 345 1. 750 918 2. 899 ;;:;;:152i: 885 464 3. 272 1717 1. 775 931 5. 760 3. 022 450 mmàê. 17. 449 9. 154 1,49 160,399 1994 83. 000 517 56. 500 352 115. 812 WïÊïk 7. 040 44 68. 125 425 32. 093 200 475. 556 2. 965 60. 000 mmÊÊ. 898. 126 5. 599 165,198 1995 86. 643 { 524 58. 164 352 121. 543 ;:;i:::;sl3l 7. 377 45 71. 346 432 32. 629 198 495. 806 3. 001 62. 660 6,61023 1994 6,61023 1995 1. 3671 s 1. 4861 207 6. 231 943 1. 940 WÊÊÊ\ 3. 061 463 8. 795 1331 3. 952 598 22. 658 3. 428 6. 171 225 5. 388 815 2. 203 piiiisra; 3. 082 466 8. 850 1339 3. 978 602 19. 841 3,002 6. 391 0,80863 1994 1001 124 1. 242 1536 450 ;;:;;:;;;;:;:;556: 450 556 230 284 1. 148 1420 2. 500 3. 092 380 mï#M mmw m:mm wmtm 936. 168 5. 667 1,21 54. 175 5,196 51. 219 7J48 -5,46 6. 500 «. 038 0,829498 1995 100 121 1. 500 1808 518 ;;:;:;;';:;624; 405! 488 250 301 856 1032 2. 600 3. 134 380 wmm 6. 609 7. 967 -0,88 ! 13,7190 1994 6. 585 ! 480 7. 662 i 558 20. 169 Ss::1i47Q; 7. 099 517 21. 487 1566 16. 235 1183 36. 675 2. 673 22. 757 M 6 5 8; 138. 669 10. 108 13,4084 1995 5. 373 ' 401 7. 701 574 21. 220 SS:-:i!;S83: 7. 048 526 21. 256 1585 15. 980 1192 36. 931 2. 754 23. 225 ®m&3£: 138. 734 10. 347 2,36 i 160,399 1994 53. 5201 334 189. 660 1182 92. 000 ;i;S7!3: 36. 000 224 90. 000 561 0 407. 000 2,537 213. 820 165,198 1995 53. 520 ! 324 189. 660 1148 92. 000 :;:;;;;w557; 36. 000 218 90. 000 545. 0 438. 000 2. 651 203. 894 wmm mmm 1082. 000 SJ46 1103. 074 €,677 -1,01 0,7897 1994 263 333 1. 000 1266 262 :;$;I3:332: 843 1067 1. 520 1925 2. 409 3. 051 1. 753 2. 22D 713 WM&& 8. 763 11097 0,856563 1995 289 337 694 810 276 322 885 1033 1. 554 1814 2. 338 2. 730 1. 855 2. 166 828 ®^m 8. 719 10. 179 -8,27 1994 1995 for 1994 = 1. 1. 1995 for 1995 = 1. 1. 1996 Upkeep and amortisation / switch-over 1,207509 9. 130 $. 136 0,07 B D Es Fr Irl Oe P UK EC TABLE E Varietal conversion programmes carried out by the Member States under Regulation (EEC) No. 2997/87 (Situation at March 1996) j. | | i ! Belgium Germany Spain i France Ireland Austria Portugal United Kingdom EC Type of variety to which conversion is to be made Aromatic (ha) Super-Alpha (ha) Total (ha) I 44,31 432,10 125,00 306,90 908,31 222,88 567,90 230,00 45,00 - 121,40 693,10 i j 267,19 1000,00 230,00 170,00 0,00 0,00 121,40 1000,00 1880,28 2788,59 i' 21 TABLE 1 Area under hops, production of hops and alpha acid by producer countries 1995 Area Production I II III Country ha 1994 ha 1995 ha (+/-) 1995/94 Belgium Germany Spain France Ireland Austria Portugal United Kinqdom 384 21. 930 1. 156 670 13 238 100 3. 157 374 21. 885 1. 102 670 8 244 121 3. 095 (ll-l) -10 -45 -54 -0 -5 6 21 -62 IV ha (+/-) 1995/94 HII/I) -2,62% - 0 , 2 1% -4,67% -0,04% -40,69% 2,34% 21,40% -1. 96% V VI VII Zentner 1994 Zentner 1995 Zentner +/- 1995/94 VIII Zentner +/- % 1995/94 Yield IX t/ha Alpha XI Percent 1995 X Production tons 1995 (VI-W ( V MM (VI/M/20) 11. 233 568. 686 41. 366 22. 093 331 6. 316 1. 937 88. 794 12. 069 681. 081 33. 845 22. 075 206 6. 716 2. 533 81. 560 836 112. 395 -7. 521 -18 -125 400 596 -7. 234 7,44% 19,76% -18,18% -0,08% -37. 76% 6. 33% 30,77% -8. 15% 1,61 1,56 1,54 1,65 1,34 1,38 1,04 1. 32 (X/(VI/20)) 7,95% 5,33% 8,27% 2,45% 9 , 7 1% 6,55% 9,47% 8. 71% 48 1. 814 140 27 1 22 12 355 Forecast Area XIII ha 1996 360 21. 800 1. 054 716 8 246 45 3. 023 XIV Change ha 1996-95 (xni-in -14 -85 -48 46 0 2 -77 -72 XII Yield kg/ha 1995 ( I X M 0 00 * Xh 128 83 127 40 130 90 99 115 EC-15 27. 648 27. 499 -149 -0,54% 740. 756 840. 085 99. 329 1 3 , 4 1% 1,43 2. 419 5,76% 82 27. 251 -247 U. S. A. Australia New Zealand Yugoslavia*) Slovenia Czech Republic Slovak Republic Ukraine Poland Bulgaria 17. 164 1. 131 345 576 2. 420 10. 200 1. 200 5. 400 2. 341 645 17. 479 1. 053 355 600 2. 370 10. 070 1. 100 5. 033 2. 401 625 Total IHB (-EC) Total IHB (+EC) 41. 422 69. 070 41. 086 68. 585 Romania Russia**) Argentina China Japan ,_ South Africa 27T7Û 3. 510 461 7. 050 565 720 2. 200 3. 500 461 7. 050 535 640 315 -78 10 24 -50 -130 -100 -367 60 -20 -336 -485 30 -10 0 0 -30 -80 1,84% -6,90% 2,90% 4,17% -2,07% -1,27% -8,33% -6,80% 2,56% -3,10% 676. 395 54. 140 15. 310 14. 100 70. 820 184. 400 21. 000 71. 850 48. 000 10. 430 715. 338 50. 980 15. 129 15. 235 76. 200 198. 260 20. 700 75. 686 65. 290 10. 126 38. 943 -3. 160 -181 1. 135 5. 380 13. 860 -300 3. 836 17. 290 -304 - 0 , 8 1% - 0 , 7 0% 1. 166. 445 1. 907. 201 1. 242. 944 2. 083. 029 76. 499 175. 828 1,38% -0,28% 0,00% 0,00% - 5 , 3 1% -11,11% 34. 540 32. 000 8. 500 340. 000 22. 080 26. 400 40. 000 45. 000 7. 500 340. 000 20. 600 24. 200 5. 460 13. 000 -1. 000 0 -1. 480 -2. 200 5,76% -5,84% -1,18% 8,05% 7,60% 7,52% -1,43% 5,34% 36,02% - 2 , 9 1% 6,56% 9. 22% 15,81% 40,63% -11,76% 0,00% -6,70% -8,33% 2,05 2,42 2,13 1,27 1. 61 0,98 0,94 0,75 1,36 0,81 1. 43 1. 43 0,91 0,64 0,81 2,41 1,93 1,89 3. 351 262 99 30 214 317 31 117 152 35 4. 607 7. 026 100 81 19 935 71 123 9,37% 10,26% 13,09% 3,99% 5,60% 3,20% 3,00% 3,08% 4,67% 6,81% 7. 4 1% 6,75% 5,00% 3,60% 5,07% 5,50% 6,89% 10,17% Total World 86. 393 86. 133 -260 - 0 , 3 0% 2. 417. 527 2. 562. 412 144. 8B5 5,99% 1. 49 8. 584 6,70% 192 248 279 51 90 31 28 23 63 55 106 96 45 23 41 133 133 192 100 17. 880 1. 030 372 600 2. 370 9. 500 1. 000 4. 033 2. 551 505 401 -23 17 0 0 -570 -100 -1. 000 150 -120 39. 841 67. 092 -1. 245 -1. 492 *) Estimates Source: Member States + International Hop Growers' Convention (IHGC) + Horst Report TABLE 2 ESTIMATED FORWARD SALES 1996-2000 Zentner = 50 kg Country 1996 1997 1998 1999 2000 & onwards Belgium Germany Spain France Ireland Austria Portugal United Kingdom 1. 595 431. 779 32. 130 22. 381 170 4. 100 4. 000 58. 294 1. 360 348. 646 32. 160 20. 953 *) 4. 100 4. 600 44. 451 1. 100 260. 898 32. 160 20. 428 *) 4. 000 4. 600 32. 380 500 100 174. 400 113. 318 *) 18. 713 *) 4. 000 *) 22. 720 *) 16. 110 *) 500 *) 17. 840 EC-15 554. 449 456. 270 355. 566 220. 333 147. 868 New Zealand U. S. A. Australia Poland Czech Republic Slovak Republic Slovenia Serbia Hungary Ukraine Bulgaria 13. 332 540. 906 35. 000 45. 000 110. 000 10. 000 50. 000 *) *) *) *) 11. 410 371. 423 25. 000 45. 000 80. 000 10. 000 36. 000 *) *) *) *) 7. 072 303. 284 25. 000 45. 000 60. 000 8. 000 25. 000 *) *) *) *) 3. 247 134. 491 20. 000 45. 000 60. 000 8. 000 15. 000 *) *) *) *) 2. 972 92. 507 *) *) *) 7. 000 10. 000 *) *) *) *) Total IHGC (-EC) Total IHGC (+EC) 804. 238 1. 358. 687 578. 833 1. 035. 103 473. 356 828. 922 285. 738 506. 071 112. 479 260. 347 ^ TABLE 3 HOPS : WORLD BASE SERIES 1973- 1995 YEAR AREA PRODUCTION YIELD GERMANY - PRICE I (ha) 81. 247 82. 083 80. 527 78. 206 79. 262 80. 230 81. 224 86. 348 92. 434 95. 532 92. 688 88. 701 86. 700 85. 699 87. 274 90. 044 91. 653 92. 864 91. 512 91. 503 90. 185 86. 393 86. 133 II (Ztr) 2. 366. 020 2. 223. 520 2. 270. 040 2. 135. 200 2. 355. 920 2. 200. 173 2. 359. 848 2. 378. 772 2. 652. 833 2. 966. 785 2. 651. 851 2. 472. 791 2. 419. 725 2. 372. 455 2. 366. 497 2. 407. 032 2. 435. 121 2. 286. 671 2. 618. 744 2. 478. 345 2. 817. 586 2. 417. 527 2. 562. 412 II (0 iro,05 118. 301 111. 176 113. 502 106. 760 117. 796 110. 009 117. 992 118. 939 132. 642 148. 339 132. 593 123. 640 120. 986 118. 623 118. 325 120. 352 121. 756 114. 334 130. 937 123. 917 140. 879 120. 876 128. 121 VI (t/ha) 11 l/l V VI VII VIII IX (alpha t) (% alpha) V*20/ll*100 (kg/ha) VM000/I DM/Ztr. Contract DM/Ztr. Spot 1,46 1,35 1,41 1,37 1,49 1,37 1,45 1,38 1,43 1,55 1,43 1,39 1,40 1,38 1,36 1,34 1,33 1,23 1,43 1,35 1,56 1,40 1,49 7. 468 6. 627 7. 230 6. 137 7. 066 6. 374 7. 348 7. 046 7. 997 8. 805 7. 543 8. 165 6. 990 7. 528 8. 414 7. 382 7. 549 6. 860 8. 773 7. 913 9. 862 7. 494 8. 584 6,31 5,96 6,37 5,75 6,00 5,79 6,23 5,92 6,03 5,94 5,69 6,60 5,78 6,35 7. 11 6,13 6,20 6,00 6,70 6,39 7,00 6,20 6,70 91,92 80,74 89,78 78,47 89,15 79,45 90,47 81,60 86,52 92,17 81,38 92,05 80,62 87,84 96,41 81,98 82,36 73,87 95,86 86,48 109,35 86,75 99,66 331 331 331 327 319 297 324 341 377 390 405 409 401 410 405 398 387 384 375 367 364 359 371 207 235 221 264 128 290 533 1. 400 606 167 210 191 245 151 301 378 326 1. 190 391 382 133 227 261 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 \ U. S. A. Avg. Price X $ / lb (11b = 453,59 gr) 0,75 0,80 0,83 0,85 0,90 0,90 0,98 1,51 1,51 1,74 1,93 2,10 2,03 1,78 1,51 1,40 1,38 1,47 1,60 1. 74 1,76 1,81 1. 74 Average 86. 889 2. 444. 168 122. 208 1,41 7. 615 6,22 87,60 365 367 1,44 Index 95 (1973= 100) Index 95 (1982 = 100) 106% 108% 108% 102% 115% 106% 108% 112% 126% 232% 90% 86% 86% 96% 97% 113% 108% 95% 156% 100% TABLE 5 Hops production sold and average prices obtained under contract and not under contract 1980-1995 Production Average prices Under Contract 50 kg Under Contract % 2/(2+1) Not under Contract ECU/50 kg Under Contract ECU/50 kg 1 Not under Contract *) 50 kg EC 1980-1995 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 67. 385 154. 754 363. 795 223. 549 195. 478 173. 339 202. 218 161. 850 119. 035 169. 083 70. 306 235. 415 103. 879 390. 867 142. 973 149. 815 723. 983 768. 155 763. 131 744. 142 728. 662 718. 124 667. 937 634. 361 632. 255 641. 429 644. 352 679. 700 622. 778 639. 633 594. 831 685. 850 91% 83% 68% 77% 79% 81% 77% 80% 84% 79% 90% 74% 86% 62% 81% 82% 469 226 65 92 70 92 63 123 159 135 469 165 168 66 123 140 133 163 177 183 190 173 170 168 170 164 167 167 160 158 161 197 B. 1995 1994 1995 1994! 1995 Belgium Germany Spain France Ireland Austria Portugal United Kingdom 7. 699 130. 949 2. 409 1. 204 7. 554 4. 371 550. 122 32. 013 19. 186 206 6. 716 2. 533 70. 705 36% ; 8 1 %' 93% 94% 100% 100% 100% 90% 111 120 52 152 0 0 0 212 119 138 116 143 0 0 0 201 142 | 156! 124 j 206 | 213; 282! 63: 185; 173| 195 ! 144 217 287 274 132 230 Unsold quantities are not included X, Group A/I SURFACE AREA IN HECTARES PRODUCTION (5 kg = 1 Zentner) RETURNS (ECU) TABLE 6: MEMBER STATE RETURNS - HOPS 1995 AVER. PRICE (ECU) 50 KG RETURNS (ECU) ha Aromatic Hops A Total B New C New D Previous to Variety Origin B+C+D 1995 1994 1994 E Full F Production G Yield H Contract I Spot J Not sold K Contract L Spot M Total N Contract O Spot P Total Q FuB Production (B#0,4)+ (C0. 65) + D SOkg/ha F /A F-(H+I) N#H o *i Planted Production S /R T /R M /A M /E M V Aurora OE Bramling Cross UK Challenger B Fuggles Goldings Hallertauer FR UK UK B OE UK B D FR Hallert. Tradition B D FR OE Hersbrucker Spat B D OE Hueller Mailing Perle Progress Saaz Spalter Spalter Select Strisselspalt Tettnanger WVG D OE B D ES OE UK B D D D OE FR D UK TOTAL VARIETY B D AROMATIC ES FR OE UK EC EC EC £C EC EC EC EC EC EC EC EC EC EC EC EC 37 46 22 1 341 394 308 3 80 402 m 50 1. 05S 0 1,105 1 1. 133 3 0 1,137 3 4. 958 10 210 67 0 3. 705 0 39 3. 744 173 2 9 11 165 1. 367 1 1. 368 589 1. 061 106 : 61 13. 663 0 593 235 1. 376 15. 948 - - - 3 8 0 4 12 9 0 39 3* 1 161 0 162 0 251 3 254 0 8 8 0 156 156 30 0 0 2 93 93 17 25 29 8 696 20 0 114 838 1 1 0 0 2 2 20 0 20 2\ 1 42 0 43 1 269 0 270 0 6 & 1 1 0 281 0 5 286 58 0 0 1 260 260 18 17 25 37 43 14 1 335 35Ô 279 3 80 343 48 852 0 9GÛ 0 613 0 0 614 3 4. 944 10 4 9 50 209 66 0 3 268 0 34 3 303 85 2 9 11 162 1. 014 1 1D1S 554 1. 019 52 37 44 17 1 338 295 3 80 372 455 49 944 0 0 *3 1 888 1 0 891 3 4. 951 10 4 , 9 6* 210 67 0 3. 513 0 37 3. 551 135 2 9 1t 163 1. 220 1 1 2 31 572 1. 040J 1. 142 888 399 29 9. 118 $,546 6. 216 59 2312 9. 385 1Ï756 1. 463 26 247 4 27. 7U 30 33. 593 0 8 33631 56 150. 300 254 15*3. 610 6. 368 1. 794 124. 692 4 960 t2S«56 3. 166 61 145 206 3. 498 42. 783 22 42805 19 157 21. 897 801 1. 9801 2 877 0 18 6 127 1. 030 71 12. 090 0 555 228 1. 135 14. 080 76 ' 12. 938 0 575 233 1. 264 15. 085J 2. 068 409. 523 4 19. 191 6. 492 30. 752 468. 029 31 19 19 25 27 28 20 17 29 23 24 29 25 32 25 29 30 0 18 90 16 30 25 W 30 27 0 34 14 25 34 18 37 16 19 21 31 21 31 331 21 19 : 25 30 14 32 28 22 29 1. 142 833 335 29 8. 678 9 0 41 5. 785 59 2. 312 8 636 11. 007 368 21. 640 0 22008 8 26. 938 8 26954 45 129. 390 254 129. 689 3. 906 1. 794 101. 871 4 960 102 635 2. 976 0 145 145 3. 141 37. 756 22 37 778 18. 048 20. 735 1. 754 815 345. 522 4 18. 077 6. 492 28. 661 399. 570 - 55 65 0 434 499 426 0 744 744 1. 095 4. 607 4 5. 706 23 6. 655 11 20. 910 20,321 2462 - 22 821 22. 821 177 61 61 347 5. 027 5027 695 1. 162 225 1. 253 63. 991 0 699 0 2. 061 68. 004 0 0 0 0 6 • 5 0 0 5 S 0 0 0 0 0 0 0 0 Û 0 0 0 & 0 0 0 0 0 0 0 13 0 0 0 10 0 0 0 415 0 290. 296 221. 961 67. 703 8. 286 2. 336. 136 1. 615. 357 12. 766 676. 658 2. 591. 009 67. 260 5. 914. 740 0 £. 982. 000 1. 397 5. 483. 246 0 2. 088 5. 486,741 7. 952 24 165. 254 64. 407 24237,61$ 672. 120 468. 289 0 18. 918. 839 638 265. 782 14. 185259 833. 805 0 30. 047 30,047 866. 751 7. 942. 752 5. 743 7548. 435 4. 004,452 5. 787. 038 507. 435 K + L + (J * 0. 7 • O) 290. 296 0 13. 998 12. 662 0 101. 335 113,908 124. 831 0 0 237. 124 116. 227 1. 317. 211 539 2. 414 1. 110. 237 0 0 1,112. 661 806 1. 667. 394 0 352. 607 0 0 4. 118. 450 0 0 4 1 1 & 4 50 47. 940 11. 477 0 11. 477 99. 941 862. 377 0 862477 110. 369 332. 233 69. 084 235. 959 80. 365 8. 286 2. 438. 452 ::%iSS&085 1. 741. 214 12. 766 676. 658 2. 829. 248 183. 487 7. 231. 951 539 7. 4 1 & 0» 3. 811 6. 593. 483 0 2. 088 &S8&382 8. 758 25. 832. 648 64. 407 « 8 0 S , 8 1* 1. 024. 727 468. 289 0 23. 037. 289 638 265. 782 23. 303. 708 884. 210 11. 477 30. 047 41. 924 968. 708 8. 805. 129 5. 743 6. 810872 4. 160. 902 6. 119. 271 576. 734 1 i 1 '• 0 10 0 415 0 30 455 157. 078 69. 780. 786 638 4. 013. 376 1. 773. 263 8. 105. 702 83. 830. 843 143. 586 9. 860. 451 300. 664 79. 642. 315 0 638 110. 908 0 594. 314 10. 709. 258 4. 170. 312 1. 773. 263 8. 706. 071 94. 590. 204 254 267 202 283 269 3 67 279 215 293 300 39$ 183 273 0 2 72 183 204 0 261 2 04 177 187 254 1*7 172 261 0 186 166 277 187 280 0 207 207 276 210 261 210 222 279 289 193 202 166 222 273 283 210 7. 853 5. 338 4. 737 7. 082 7. 223 5. 895 3. 775 8. 505 7. 614 • •. •tj4 Jj 3. 733 7. 663 5. 282 7 4 69 0 255 196 0 233 7. 816 5. 118 3. 725 7. 082 7. 154 &9SQ- 5. 657 293 0 3. 696 0 8. 505 319 7. 037 #W ; MM 3. 682 106 286 6. 855 129 4. 145 2 51 #,711 3. 682 5. 819 0 4. 641 5J802 106 167 0 0 167 76 80 0 80 143 0 0 180 0 0 180 271 189 0 189 288 172 0 1?2 159 286 307 115 154 0 159 0 288 157 : 1 2. 507 5. 210 6. 253 4. 880 6. 979 0 6. 218 2. 277 6. 794 6. 223 5. 111 6. 924 3. 339 3. 896 5. 871 6. 441 5. 469 «. 440 7. 067 5. 767 5. 420 3. 705 5. 829 2. 277 7. 033 7. 555 6. 326 5. 931 4. 737 7. 423 0 4. 641 TJWff 2. 507 5. 218 6 2 53 121* 4. 888 7. 019 0 6. 558 2. 760 7. 090 6. 563 6. 555 6. 963 3. 339 3. 900 5. 927 7. 216 5. 469 r,2*5 7. 272 5. 884 7. 215 3. 980 6. 155 2. 760 7. 258 7. 626 6. 890 6. 271 Group B/ll SURFACE AREA IN HECTARES PRODUCTION (5 kg = 1 Zentner) RETURNS (ECU) TABLE 6 MEMBER STATE RETURNS - HOPS 1995 (cont'd 1) Bitter Hops Variety Brewer's Gold Bullion Chinook Galena H-3 Leones H-7 Leones Hallertauer Magnum Northdown North. Brewer Nugget * Omega Orion Target Yeoman TOTAL BITTER B D ES FR P UK D B D FR OE UK B FR UK B D ES FR IRL OE P UK A Total B New C New 0 Previous to 1995 1994 1994 B+C+D E Full Production (B*0,4)+ (C*0,65) + D F Production G Yield 50kg/ha F /A Origin B D FR mmmwm D FR FR ES ES B 0 ES FR EC EC EC EC EC 4 1. 140 16 mmmm 47 1 0 737 300 13 1. 850 5 6 1. 874 IRL UK mmm£& B D FR UK 8 360 mmmWt 61 4. 211 6 3 4. 280 8 668 60 27 121 6 84 3 110 182 101 16 0 1. 242 1,541 24 5 44 72 €C EC EC EC : EC I 291 8. 127 1. 102 77 8 0 121 1. 651 11. 376 EC 4 1. 135 15 mmmm 47 1 0 717 300 4 994 0 0 2 1 504 4 2 511 - - - - 0 5 0 18 7 352 1 4 364 - - - - - 5 2 13 0 0 15 0 137 57 2 11 £67 0 24 mmmWt 2 27 0 0 30 3 124 1 6 20 t il 0 19 9 1 10 39 0 0 0 a 22 663 63 5 11 16 780 - 42 7 3 9 «0 2 0 0 2 56 515 20 13 20 33 657 4 1. 138 16 mmmm 47 1 0 730 300 9 1. 424 2 3 1,439 8 348 mmmm 59 4. 194 6 3 4,261 7 542 25 24 108 706 3 110 156 93 15 0 1. 233 1,496 23 5 43 71 115 49. 942 902 2. 047 22 0 29. 293 4. 105 387 51. 367 44 100 51398 206 10. 382 1. 564 134. 807 166 33 136. 570 226 22. 590 400 1. 159 2. 533 281)07 80 3. 993 6. 964 4154 443 1 38413 49. 9-75 702 92 991 1784 258 7. 549 1. 057 69 8 0 108 1. 630 10. 679 9. 957 268. 900 33. 842 2. 884 206 1 2. 533 49. 900 368. 222 0 996 8 330 57 4. 171 6 3 4236 5 407 1 19 91 523 3 110 121 85 13 0 1. 223 1442 22 5 43 70 213 6. 949 1. 018 59 8 0 91 1. 602 9. 940 26 44 58 mmmm 44 28 0 40 14 31 28 9 16 28 27 29 mmmm 26 32 26 13 32 29 34 7 43 21 30 26 36 38 41 27 39 31 32 29 20 23 25 34 33 31 38 27 39 21 30 32 - 27. 895 4. 105 0 40. 039 9 62 40. 110 206 9. 897 581 109. 402 50 33 1t0 066 83 16. 291 35 2533 18 $4* 50 3. 134 2. 502 2 852 310 1 31. 100 36. 765 376 40 578 994 3. 556 202. 234 32. 009 1. 109 206 1 2. 533 41. 659 283. 306 H Contract I Spot J Not sold K Contract L Spot M Total 15 29. 916 589 mw&m 600 22 100 20. 026 106 mmmm 1. 447 - - 2. 028 - 387 11. 328 35 38 11. 788 F - (H+l) 0 0 206 mmmm 0 0 0 -630 0 0 0 0 0 0 N *H O 'l 1. 518 4. 237. 483 58. 619 mWmm 91. 283 3. 523 0 3. 925. 948 679. 619 0 8. 128. 957 1. 495 9. 814 «140,266 7. 449 1. 397. 290 12. 225 mmmmm 106. 276 0 0 214. 833 0 55. 525 1. 877. 937 5. 826 5. 818 1,946,106 K + L + (J ' 0. 7 * O) 8. 967 5. 634. 773 87. 474 mmmmm 197. 559 3. 523 0 4. 094. 064 679. 619 55. 525 10. 006. 894 7. 321 15. 633 10,086,379 AVER. PRICE (ECU) 50 KG N Contract O Spot RETURNS (ECU) ha P Total Planted Q Full Production S /R T /R M /A M /E 101 142 100 mmWfâê 152 157 0 141 166 0 203 166 158 203 75 70 115 mmmm 73 0 0 106 0 144 166 166 151 168 2. 045 4. 943 5. 593 mmmm 4. 203 4. 404 0 5. 555 2. 265 4. 437 5. 409 1. 494 2. 567 6,983 2. 059 4. 950 5. 623 mmmm 4. 203 4. 404 0 5. 612 2. 265 6. 071 7. 025 3. 351 4. 488 7,006 432 WÈmw& 0 53 S::W:!>S:*:;SS 0 0 10 0 10 0 0 54 1. 055 0 1,106 0 0 0 0 •0 0 3. 045 3. 045 0 0 58 66 59. 220 2. 733. 812 mmëm$a& 101. 286 20. 260. 055 8. 598 9. 632 20. 379. 571 14. 686 2. 914. 357 0 5. 513 335. 406 t««fcfiei 9. 865 603. 401 414. 260 535. 640 48. 222 261 5. 257. 459 6. 255,843 65. 608 6. 656 82. 652 154. 916 0 120. 538 mwwiMM 107. 526 3. 638. 501 11. 124 0 3. 757. 1S1 12. 248 862. 487 57. 598 8. 163 0 040. 496 8. 090 109. 507 548. 257 181. 008 16. 863 0 640. 277 1. 366,406 37. 129 6. 633 50. 977 « 4 7 39 59. 220 2. 864. 701 2 923. 921 208. 813 23. 898. 556 20. 454 9. 632 24. 137,454 26. 933 3. 776. 845 63. 852 100. 502 335. 406 4,303537 17. 955 712. 907 962. 517 716. 648 65. 086 261 6. 217. 501 7,962,012 102. 737 13. 289 139. 459 2&&4B5 287 276 mmw$ 174 185 172 292 186 177 179 0 157 132 175: 197 193 166 188 155 261 169 170 175 166 143 15» 0 279 mmW& 109 143 105 0 142 85 137 166 118 0 137 270 127 123 139 127 0 150 136 114 129 144 120 7. 681 7. 968 illi:962- 3. 450 5. 675 3. 257 3. 853 3. 639 3. 405 5. 654 1. 067 3. 735 2. 763 *S8« 5. 792 6. 481 5. 298 7. 096 3. 971 10. 157 5. 006 6,166 4. 293 2. 947 3. 206 3. 551 L. 7. 681 8. 232 ï£!i;22o: 3. 553 5. 699 3. 303 3. 853 5. 664 3. 986 6. 963 2. 539 4. 230 3. 110 & 0 S7 5. 792 6. 481 6. 183 7. 693 4. 331 10. 157 5. 044 5,320 4. 400 2. 947 3. 209 3. 582 0 0 -576 1. 271 0 0 0 3. 156 3. 851 597. 358 36. 771. 176 4. 607. 062 140. 945 59. 220 261 335. 406 8. 093. 420 50. 604. 847 768. 134 8. 173. 006 278. 257 60. 826 0 0 0 819. 882 10. 100. 106 1. 365. 492 44. 944. 181 4. 838. 720 309. 005 59. 220 261 335. 406 9. 269. 504 61. 040. 778 168 182 144 127 287 261 132 194 179 120 123 116 121 0 0 0 161 125 4. 693 5. 530 4. 392 4. 025 7. 681 10. 157 2. 763 5. 616 5. 366 5. 292 5. 954 4. 579 4. 448 7. 681 10. 157 3. 110 5. 688 5. 716 983 25. 405 106 0 26. 494 143 6. 299 346 69 $ 8 58 30 859 4462 1. 302 133 4. 268 10,165 326 52 355 732 6. 401 66. 666 2. 409 505 5. 085 81. 066 Group C/lll SURFACE AREA IN HECTARES PRODUCTION (5 kg = 1 Zentner) RETURNS (ECU) TABLE 6 MEMBER STATE RETURNS - HOPS 1995 (cont'd 2) Total New New Previous ; [iProduction OTHER to 1995 1994 1994 Full : Production jj i (B*0,4)+ !| ! (0*0,65) Ï H Contract Yield j 50kgVha Spot Not sold Contract Spot Total [ ! K + L + AVER. PRICE (ECU) 50 KG RETURNS (ECU) ha N Contract Spot Total [ F u ll Planted Production II Variety Origin B+C+D + D F /A F - (H+l) Il N * H (J • 0,7 * O) S /R T /R M /A M /E ^Record Zenith UK Other incl D experimental OE varieties UK TOTAL OTHERS B 0 OE UK i*s& EC ec EC 2 79! m 16; •I 66! • 9 ii 2! 95 j a! 68$ 1741 2; 77 91 9 i I 29: 2! 86 ; Q| 321 2 |j 78 2 90 9 51 44 | 2 310 23$4f 86 348 j 223 823 1. 394. 44 2. 658 223 909 128 j 152 3. 834 1 ! oj 18 i 201 °! 2! »! 18 ! 2 1| 18; 24 i 18 25 GRAND B_ 373,95! 31 286: 335 12. 069 1. 394! 19. 125 20. 578 681. 081 20 1. 0191 1. 057 33. 845 ! 241 29. 29-j 31 22 25 13 15: 32 31 31 0 2063 2. 0$3 83 303 223 302 ::829:l: 0 2 366 223 385 2. 975 44 247 29*! 45i 405 460 44 292 I 408 744 0 4. 317 4. 317 409 102 37. 189 i 446. 291 4qg,«&j 18. 701 59. 768 65. 600 65. 332 190. 700 0 468. 870 65. 600 84. 033 618. 504 0 0 115] 115 0 0 0 115 115 644 7. 011 0 101. 575 106. 587 4. 317 44. 201 0 102. 220 150. 738 43QJ09 19. 346 66. 780 65. 600 187. 082 319,462 4. 317 513. 071 65. 600 206. 407 785. 541 4. 371 7. 699 754. 436 916. 037 1. 670. 473 550. 122 130. 949 10 107. 020. 832 18. 077. 658 125. 099. 456 32. 013 2. 409 -576 4. 607. 700 278. 257 4. 839. 357 TOTAL D 21 885. 00 ^ ES FR IRL OE P UK 1. 102,00 i 66971 243,71 121,40! T 3. 095,28 1. 366: t 631 j 25] ! -4 oj J31J 614 644 22. 075 19. 186 1. 204 1. 685 4. 154. 321 171. 734 4. 494. 367 206 206 _ 7_ 20 237 91 241 6. 716 28 6. 716 108 ^ 5 33 2 5 33 59. 220 1. 839. 124 335. 406 59. 220 1. 839. 124 335. 406 148; 178 2. 769 2. 944 81. 560 70. 705 7. 554 I 3. 301 16. 283. 155 1. 516. 416 18. 263. 410 ; EC ; 27498,75] 1. 643 1. 707 |_ 24. 148 25. 915 840. 085 685. 850 149. 815 4. 420 135. 054. 193 20. 960. 102 156. 447. 176 Agricultural conversion rate: 1. 1. 1996 0 198 m 225 197 294 216 230: 0 198 294 218 208 173 195 144 217 287 274 132 230 197 98 151 143 215 156 0 251 241 98 151 0 250 202 2. 321 5. 649 2. 321 5. 718 6. 909 4. 174 7. 321 2. 851 3. 527 2. 321 5. 401 7. 321 3. 017 4. 509 6. 909 5. 542 7. 452 3. 879 4,624 2. 321 5. 694 7. 452 4. 045 5. 175 119 4. 467 4. 980 fi 138 116 5. 716 6. 079 4. 391 4. 578 143 6. 711 6. 978 7. 681 7. 6811 7. 546 7. 620 2. 763 3. 110 201 140 5. 900 6. 2031 5. 689 6. 037J FINANCIAL STATEMENT BUDGET HEADING: 181 APPROPRIATIONS: ECU 18 million TITLE: Proposal for a Council Regulation fixing the amount of producer aid in the hops sector for the 1995 harvest. LEGAL BASIS: Article 43 of the Treaty AIMS OF PROJECT: Fixing area aid per hectare for some hop varieties harvested in 1995. 2. 3. 4. 5. FINANCIAL IMPLICATIONS 5. 0. EXPENDITURE - CHARGED TO THE EC BUDGET (REFUNDS/INTERVENTION) - NATIONAL ADMINISTRATION - OTHER 5. 1. REVENUE 5. 0. 1. 5. 1. 1. ESTIMATED EXPENDITURE ESTIMATED REVENUE 5. 2. METHOD OF CALCULATION: PERIOD OF 12 MONTHS million ecu CURRENT FINANCIAL YEAR (96) million ecu FOLLOWING FINANCIAL YEAR (97) million ecu 12. 2 6. 1 6. 1 1998 1999 2000 ha ECU/ha ECU million Aromatic varieties Bitter varieties Other varieties 15 948 11 376 174 27 498 444 416 298 7. 08 4. 73 0. 05 (DT) 11. 87 x 1 030 ECU(B) 12. 2 m 6. 0. 6. 1. 6. 2. 6. 3. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? IS A SUPPLEMENTARY BUDGET NECESSARY? WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/NO YES/NO YES/NO YES/NO OBSERVATIONS: The new measure represents a saving of ECU 2. 7 million over the 1996 budget proposal for the 1995 harvest. 30 ISSN 0254-1475 COM(96) 226 final DOCUMENTS EN 03 Catalogue number ; CB-CO-96-236-EN-C ISBN 92-78-04418-0 Office for Official Publications of the European Communities L-2985 Luxembourg l\

Proposal for a COUNCIL REGULATION (EC) temporarily suspending the autonomous Common Customs Tariff duties on certain industrial and agricultural products

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iw&klh COMMISSION OF THE EUROPEAN COMMUNITIES * 4r Brussels,28. 05. 1996 COM(96) 216 final Proposal for a COUNCIL REGULATION (EC) temporarily suspending the autonomous Common Customs Tariff duties on certain industrial and agricultural products (presented by the Commission) EXPLANATORY MEMORANDUM 1. During the first quarter of this year the Commission, assisted by the Economic Tariff Questions Group, examined all the requests for temporary suspension of autonomous Common Customs Tariff duties submitted by the Member States, including requests for the renewal of suspensions currently in force. 2. The enclosed proposal covers industrial and agricultural products. 3. The requests for suspensions in respect of these products were examined in the light of criteria laid down in the communication from the Commission to the Council and the Member States on autonomous tariff suspensions (see OJ No C 235 of 13 September 1989, p. 2). On the basis of this examination, the Commission decided that the suspension of or reduction in duties was justified for the products listed in the annex to the proposal. 4. As stipulated in Article 1 of the annexed draft Regulation, the measure will be valid for an indefinite period so that legislation will be required only in the event of amendments or technical adaptations to the tariff suspensions. 2^ Proposal for a COUNCIL REGULATION (EC) N° /96 of 1996 temporarily suspending the autonomous Common Customs Tariff duties on certain industrial and agricultural products. THE COUNCIL OF THE EUROPEAN UNION, HAD ADOPTED THIS REGULATION: to Having regard the European Economic Community, and in particular Article 28 thereof the Treaty establishing Having Commission, regard to the proposal from the Whereas production in the Community of the products specified in this Regulation is currently inadequate or non-existent; whereas producers thus cannot meet the needs of user industries in the Community; Whereas it is in the interest of the Community to suspend partially or the autonomous Common Customs Tariff duties for these products; totally Article J The autonomous Common Customs Tariff duties for the products listed in the Annex hereto shall be suspended at the level indicated against each of them. Article 2 and technical amendments adaptations, The including the publication of a consolidated version, arising combined amendments of nomenclature and Taric codes shall be adopted by the Commission in accordance with the procedure laid down in Article 3. from the Whereas the decision to suspend such autonomous duties should be taken by the Community; Article 3 Whereas the regulations temporarily suspending the autonomous Common Customs Tariff duties on certain industrial and agricultural products have renewed previous measures; whereas, largely therefore, rationalizing implementation of the measures concerned, it would seem appropriate not to limit the period of validity of this regulation as its scope can be adapted and products added to or removed from the list through a Council Regulation, if necessary; interests the of in to the the amendments Whereas combined nomenclature and the Tanc codes do not give rise to any substantive amendment; whereas, for reasons of simplification, provision to empower the Commission, following receipt of the opinion of the Customs Code Committee, to make the necessary amendments and technical adaptations of the annex to i'is Regulation, including the publication of a consolidated version; should be made 1. The Commission shall be assisted by the Customs Code Committee set up by Article 247 of Regulation (EEC) No 2913/921. 2. The representative of the Commission shall submit to the Committee a draft of the measures to be taken. The Committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148 (2) of the Treaty in the case of decisions which the Council is required the Commission. The votes of the representatives of the Member States within the Committee shall be weighted in the mariner set out in that Article. The chairman shall not vote. to adopt on a proposal from 1 OJNoL302, 19. 10. 1992, p. 1. As amended by the Act of Accession. The Commission shall adopt measures which apply immediately. However, if these measures are not in accordance with the opinion of the Committee, they shall be communicated by the Commission to the Council forthwith. In that event, the Commission shall defer application of the measures which it has decided for three months from the date of such communication. The Council, acting by a qualified majority, may- take a different decision within the period referred to in the previous indent. The Committee may examine any question 3. concerning the application of Article 2 of this Regulation which is raised by its chairman, either on his own initiative or at the request of a Member State. Article 4 This Regulation shall enter into force on the day following its publication in the Official Journal of the European Communities. It shall apply from I July 1996. This Regulation shall be binding in its entirety and directly applicable in all Member States Done at , For the Council The President EN ANNEX CN c o ds TAR IC Description of goods Autonosous duties (X) 1 6x87162168 118 Pees in pods, of the species Piaua aaiivua of the variety Horttna 6ee, to be ueed, in their pods, in the eenufecture of prepared aaals (a) (b) frozen, af a thickness not exceeding axiphiua, 2 8x87119666 3 ex87123888 4 ex87133396 5 ex68641l 6 ex88841l 7 ex88184858 111 (91 H7 (24 (28 (11 (21 112 (22 H8 Hushrooes, excluding eushrooas of the spsciss spp. , provisionally preserved in brine, in sulphur aster, or in other preservative solutions, but unsuitable in thst state for iaaediBte consuaption, for the food-canning industry (a) Agaricua Hushrooes, excluding auehrooes of the epeciee êgaricua dried, «hole or in identifieble slices or piecee, for treetaant other than siapla repacking for reteil sale (a) (b) *pp. , Beans, «hits, dried, of the epeciee PhaaaoLua vulgaria, which not aora than 2X by «eight ere reteined by a screen «ith eperturea of a diaeeter of 8aa, for use in the food-cenning industry (a) of Datée, fresh or dried, for the processing industry, other then for the production of etcohol (a) Dates, fresh or dried, for pecking for retail sele into ieasdiste packinge of a net content not exceeding 11kg (a) F r u it of the epeciee Vacciniua aacrocarpon, f r e sh 8 exGSieSOSS (18 Rose-hips, frssh 9 88119878 8x88119895 16 ex68119695 (66 (67 (49 Fruit of the genus Vacciniua, or boiling in «ater, frozen, not conteining added augar or other a«eetening setter uncooked or cooked by stealing Roae-hips, uncooksd or cooksd by steeeing or boiling in «alar, frozen, not conteining edded euger or other e«eetening setter r CN coda TARIC Description Rate of autonoeous duty (X) 1 ex27879911 «18 Crude light oils contsining by «sight: - 18X or sore of vinyltoluenes, - 18X or sore of indene end - IX or eore but not aore than SX of naphthalene 5 8x28853818 (18 Alloy of ceriue and other rere-eerth aetcle, containing by •eight 47X or aore of ceriue 6 ax288S3818 (28 Alloy of lenthenue and other rere eerth eetele, conteining by «eight 43X or eore of lenthenue 6 8 8 8x28111998 (18 Sulpheaidic acid 9 ax28112998 (18 Talluriue dioxide 18 8x28183886 (18 Alueiniua hydroxide oxide in the fore of pseudo-boehaite 11 8x28199888 (28 Dichroaiue trioxide: - of e specific surface of 37s2/g or sors (es deterained 14 8x28238868 (18 by the BET asthod), - of a purity by «eight of 99,5X or eore calculated on the dry eubatance, - of a specific grevity of l,2g/ce3 or less, for the eenufecture of esgnatic tapes (a) Titaniua dioxide, of a purity by «eight of 99,9X or aore, «ith an average grain-size of 1,2 eicrosetres or aore but not exceeding 1,8 eicroaetres, for the eanufacture of goods of heeding No8532 or 8533 (a) 15 ex28255688 (19 Copper (II) oxide conteining by «eight 78X or eore of copper 17 ax28268G98 (18 Potessius haxafluorophosphate and not aore then 8,63X of chloride 18 6x28273998 (18 Copper aonochloride of e purity by «eight of 96X or aore but 19 6x28276868 (18 Titaniua tetraiodide not exceeding 99X 26 8x28369188 (26 Lithiua carbonate, containing one or aore of the following iapuritiee at the concentrations indicated: - 2sg/kg or aore of arsenic - 266ag/kg or aore of calciue - 268eg/kg or aore of dilorides - 28ag/kg or aore of iron - 156eg/kg or eore of eagnesiua - 28eg/kg or aore of heavy aetals - 366ag/kg or aore of polassiua - 366sg/kg or aore of sodius - 266ag/kg or sore of sulphates, detereined according to the eethods specified in the European Pharescopsia Lead silicate hydrete, of 8 lead content by «eight of 84,SX (il,5X), evaluated as laed eonoxide, in the fora of ponder 21 6x28399666 (18 24 ex28439898 (26 Palladiue aonoxide 25 26 28451868 28459818 Heevy «eter (deuteriua oxide) Deuteriua and coapounda thereof; hydrogen end coapounds thereof, enriched in deuteriue; aixlures and solutions contsining these products (Euraioa) iEuraioa) 28 6x29629698 (15 1,2-Di(3,4-xylyl)Bthans 29 8x29829698 (48 p-Cyaane 38 8x29826698 32 6x29829898 (45 (76 2-HethyInaphthalene 1,2,4,5-TetreaethyIbenzene (durene) < CN code TARIC Description Rate of 8utonoaous duty (X) 33 6x29633818 34 6x29633616 36 6x29835998 37 6x29835996 38 ex29636998 39 6x29841886 49 ex29842698 (16 (26 118 (26 (16 (38 (18 Carbon tatrafluoride (tatrafluoroatthane) 1,1,1,2,3,3,3-Heptefluoropropane l. e^. B. e. M. lS. ie. n. n. ie. lS-Dodecechloropsnticyclot^^. l. ! 6,9 e5 , i3 85 , i e] o c l i d t c l. 7 1 s. d,t n s> f or u gg in t ha aenufecture of polyaaids, polyathylena, aynthalic rubber or polystyrene (a) Hexachlorocyclopantadiana Di- or tatrschlorotricyclo[8. 2. 2. 24'7]haxadaca-l(12)l4l6,ie,13,15-h exaene, aixad isossrs Sodiun p-styrsnssulphonata Ni troaethane 41 8x29642698 (28 Nitroethane 42 ex29642696 43 ex29942898 44 6x29849828 45 6x29649688 (36 148 (18 (16 1-Ni tropropane 2-Ni tropropane Tosyl chloride Trichloronitroaethane, for the eenufecturB of goods of subheading 388828 (s) 47 6x29951918 (16 Potassiue (ari-butoxide 48 29852918 Allyl alcohol 51 ex296539Ç 52 6x29654918 (38 (16 2-Methylpropene-l,3-diol Ethyl idynetriaethanol 54 29861188 Menthol 55 ex29861986 (16' Labd-14-Bne-8,13-diol 56 ex29862998 58 ex29872188 60 ex29672998 61 ex29872998 62 6x29672998 53 ex29872998 63 ex29889B8e 64 ex298919G9 67 6x298938$ 68 6x29994488 «18 (18 •58 166 «78 (19 «18 ( 16 « 18 2,2'-(s-Phenylene)dipropan-2-ol Resorc inol Disodiui 1,4-dihudroanlhracana-9,18-diolate, in tha fora of an aqueous solution 4 , 4 ' - ( 3 , 3 , 5 - T r i a e t h y l c y c l o h e x y l i d a n 8 ) d i p h a n ol 4,4',4"-£lhylidynBlriphanol Hixture of ieoiers of sslhylenediphenol 4-Nilro6o-o-cresol l,2-Bis(2-chloroethoxy)elhsni 4 - ( p - T o l y l o x y ) b i p h s n yl 2-Hexy l o x y e t h a n ol 6x29995698 «19 4-(2-Hethoxyelhyl)phsnol 71 ex291998£ • 38 2,3-Epoxypropan-l-ol (glycidol) 72 ex29169888 «48 Perfluoroepoxyprcpsne 73 6x29124988 «18 3-Phenoxybenzaldehyde 75 6x29145888 • 36 2'-Hydroxyacelophenone 76 ex29145£ «46 4'-Hydroxy8C8tophenone n CM coda TARIC Description Rata of autonoeous duty (X) 78 ex29147698 «28 21-Chloro-9p, ane-3,28-diona 1llp,-apoxy-17-hydroxy-16i-Bathylpregna-l ,4-di 6 79 8x29152986 «18 Antiaony triacatate 88 ex29153998 128 5a-BroBO-8^-hydroxy-17-oxo-androatan-3p-yl acetate 82 8x29159886 «28 Trieathyl orthoecateta 83 8x28161298 «18 2-(»rl-Butu,l-8-(3-tar(-butyl-2-hydroxy-S-aelhylbenzyl)- 4-aethylphenyl acrylata 84 8x29181498 «16 2,3-Epoxypropyl aalhacrylala 86 8x29162866 «16 Methyl 3-(2,2-dichlorovinyl)-2,2-diaalhylcyclopropanec8rboxylate 87 8x29162866 «38 Eapanthrin (180) 8x29163986 «16 Nathyl 3-chlorobanzoata 89 8x29163968 «28 3,5-Dichlorobanzcyl chloride 92 ax29171998 «28 8odius 1,2-bis(cyclohaxyloxycBrbonyl)ethaneBulphonate 93 8x29172868 «38 lI4,S,6I7,7-Kexachloro-8,9,16-lrinorborn-5-8ne-2,3-dicarboxylic anhydride 188 8x28173998 «35 Diaathyl naphthalene-2,6-dicarboxylate 95 ex29173998 (75 Banzsns-1,2,4,5-letracBrboxyI. ic acid (pyroaellitic acid) 91 8x29181388 «18 L-(-)-Di-p-toluoyltarlaric scid 162 6x28181768 «16 PhanyIglycolic acid (aandelic acid) 163 8x29181918 (16 Nslic acid 185 8x29182916 (16 2-Hydroxy-l-naphthcic acid 166 8x29182956 (18 Gallic acid, of a purity by «eight of 99,7X or aore 167 ex29182998 (18 calculated on the dry «sight (aaasured by acidisetry), «ith a soiature content by «eight of less than lflX, a sulphaled ash content by «eight of less than 8,66X, an iron content of less than 8eg/kg and an iodine colour nuiber not exceeding 3 on the DIN 6162 scale Haxaaethylane bis[3-(3,5-di-t8rl-butyl-4-hydroxyphenyl'propionate] 111 6x29196699 (16 2,2,-Nethylenebis(4>6-di-<er(-butyIphenyl) phosphate, eonoaodiua salt 112 8x29281886 (16 Fanitrolhion (ISO) 113 8x29281686 (28 Tolclofoa-aethy I (ISO) 114 8x29289616 (18 Diathyl sulphate 115 29269636 116 8x29289886 117 8x29289689 (18 «36 Triaethyl phosphite 0,0'-OioctadecyI penlaarythri loi bistphosphite) 0,0' Eis(2,4-di-(sr (-bulylphenyDpantaerylhritoi bistphitsphi te) 118 8x29269(168 (66 Talraalhyl orlhosi licate, of a purity by «eight of 99. 99X cr aora *c-t containing: - !. ^ irograe/kg or less of calcius, \ ,'<• «'crogrBB/kg or less of chrosiui, - 2,8 sicrograa/kg or less of iron and - 2,6 aicrogras/kg or less of sodius, for usa in the aanufacture of goods of heading No8542 (a) 3. 6 6 8 6 8 9 8 8 8 8 8 9 8 9 6 8 <n CN code TARIC Description Rata of autonoaous duty (X) 128 8x29211998 «36 Triallylaaina 6 121 8x29212966 «16 N,H,H', tf'-TatrabutylhaxaaalhylanadiaainB 122 8x29212968 «28 Tris[3-(di«elhylaaino)propyl]aainB 123 8x29212968 125 8x29213698 127 8x29214216 128 ex292l4216 129 8x29214218 136 8x29214398 (38 (28 (18 (28 «38 «16 Bis[3-(disethylaaino)propyl]Bethyleeino D i c y c l o h e x y U a a t h y D a a i na 2,6-Dichloro-4-nitroeniline 2-Broeo-4,6-dinilroeniline 4-Aainobanzena-l,3-disulphonic acid and its aalta 5-Aaino-2-chlorotoluana-4-sulphonic acid 131 6x28214568 «16 3-Aaincnaphthalana-l,5-disulphonic acid, aonoaodiua salt 132 6x29214918 «28 Pendiaethalin (180) 9 3. 5 138 ex2921S966 139 ex29221996 146 8x29221986 141 6x29221996 142 6x29222166 143 ex29222988 144 ex29222988 145 ex29222988 146 6x29222988 147 6x29223868 156 8x29225869 151 6x29239999 «66 «55 «68 «76 «19 «18 «28 «39 «48 «18 «58 «16 Mixture of ieoaare of 3,5-diethyltoluenadieaina 4,4-Diaethoxybutylaeine 2-[2-(Diaethyl8aino)athyl(Bathyl)aBino]athanol H,H, *", Af'-T8traa8thyl-2,2,-oxybia(BlhylaBine) 2-Aaino-5-hydroxynephthalena-l,7-disulphonic acid and i is salts, of a purity by «sight of 88X or aore 2-Methyl-tf-phenyt-p-sniaidina 3-Aainophenol ' 4-Aiino-S~aethoxy~2-aethylbanzanesulphonic acid 2-Aaino-4-(er(-penlyl-6-nitrophanol l-Aaino-4-broao-9,18-dioxoanthr8canB-2-8ulphonic acid and its salts 2-(4-Dibulylaainoaalicyloyl)banzoic acid Tetraaethylaaaoniua hydroxide, in the fore of an aqueoua solution containing: - 25X (±9,1X) by «eight of tatraaethylaaBoniua hydroxide, - 5ig/kg or less of halida, - 19 aicrograas/kg or lasa of aodiua, - 16 aicrograas/kg or I B SB of cslcius, - 16 iicrograas/kg or less of iron and - 18 •icrograas/kg or less of zinc 152 6x29241666 «26 2-Acryl8i!do-2-sethylprop8nasulphonic acid and its sodius or 153 6x29241986 154 ex29242998 155 ex29242988 156 6x29242996 «38 «48 «56 «69 8isoniu« salts «-(1,l-Di«elhyl-3-oxobulyl)scrylaaide Dielhofencerb (ISO) 3'-Diethy lB«ino-4'-aethoxyacBtanilida 5~[#-(2-Acetoxyathyl)acatoxyacataaido]-*'l«"-bi8(2l3-dia cetoxypropyl)-2,4,6-triiodoisophthalaaid8 157 ex292S1188 «28 Saccharin and its sodius sslt 159 ex29251988 «19 tf-Pheny laaleiaida 169 6x29252986 «18 Dicyclohexy Icerbodiiaide CN code TARIC Description Rate of aulonoaous duty (X) 162 ex2926989b «IS Hethacrylonitrile 161 8x29269896 «25 Ethyl 1-cyanocyclohexylBcststs 164 ex29269898 «65 2-Aeino-5-nitrobenzonitrile 165 8x29269896 «75 Chlorothelonit (180) 166 6x29269698 «88 2-CyenoeceteeidB 167 8x28268898 «85 Alkyl or elkoxyelkyl asters of cyanoacelic acid 168 8x29278886 «18 2l2'-Dieathu>l-2,2'-azodipropionaaidina dihydrochloride 169 ex29278888 «28 4-Anilino-2-BBlhoxybanzenediazoniua hydrogen aulphste 178 8x29286866 «58 3,3'-lis(3,5-di-(er J-bulyt-4-hydroxyphenyl)-#', Af'-bi propioneeide 171 6x29288888 «68 2,4,6-Trichlorophenylhydrszine 173 0x29291898 «18 Melhylenedicyclohexyl diiaocyenete, aixed isoaers 174 8x29291898 «36 313'-0iaathylbiphanyl-4,4'-diyl diieocyanate 175 ex29291698 «48 a-Ieopropenyl-f,a-diBalhylbenzyl iaocyanate 176 8x29291698 «58 a-Phanylanadiiaopropylidena diiaocyanate 178 8x29389895 «84 Thiophanol 179 8x29389895 «86 Ethoprophoe (180) 186 8x29369695 «89 3,3-Dieelhyl-l-Bethylthiobutanone oxiae 181 6x29389895 (11 Thiophanate-aathyl (180) 183 8x29369695 (15 4-(4-Ieopropoxyphenylsulphonyl)phenol 184 8x28389895 117 3,3'-Thiodi(propionic acid) 185 29318818 Diaathyl aethylphosphonsts 186 8x29318888 (18 2-Diphanylphosphinobsnzoic acid 187 6x29318866 (28 Chlorodipheny Iphosphine 188 8x28318686 (38 Bis(2-chloroathyl) 2-chloroethylphosphonale 189 6x29316888 (48 8odiua phanylphoaphinata 196 6x29318688 (58 8ie(2-chloroathyl) vinylphosphonate 191 6x29318689 (68 Sodius tatraphanyIborata 192 6x29316688 (76 #-(PhosphonoaslhyI)iainodiacelic acid 193 8x29321188 (18 Tatrahydrofuran, containing not sore than 49ag per litre in total of tatrahydro-2-aathylfuran and tatrahydro-3-iethylfuran, for tha aanufactura of ff-4-hydroxybutyl-«-hydroxypoly(oxyletraaethylene) (a) 194 6x29321368 (18 Tatrahydrofurfuryl alcohol 196 6x29321968 148 Furan of a purity by «eight of 99X or aore 195 6x29321966 «58 2,3-Dihydrofuren 197 ex29322998 115 2'-Anilino-6'-[athyl(iBopantyl)aaino]-3'-eelhylspirotisob enzofuran-lOtf),9'-xanthen]-3-one 199 8x29322998 138 13,14,15,16-Tetrenorlsbdano-12,8t-Uctone CN code TARIC Description Rate of autonoaoua duty (X) 281 ax29322999 (55 2'-(2-Chloroanilino)-8'-dibutylaainoapirj[iBobanzofuran-l(3 r/),9'-xanthen]-3-one 8 283 8x29322699 (61 2'-Anilino-3'-ealhyl-6'-Balhyl(j)ropyl)aainoapiro[i8obenzo furan-l(3r/),9'-xanthen]-3-or. n 264 8x29322999 (62 6'-DiBthylaaino-3'-Balf«yl-2'-(2,4-xylidino)8piro[iBobenzo furen-l(3W),9'-xanlSan]-3-one 285 6x29322998 (76 2'-Anilino-6'-(*-ethyl-p-toluidino)-3'-eethylepir o[iaobBnzo. 'uren-l(3rV),9'-xanth8n]-3-ona 266 8x29322698 (75 2'-?>ilino-6'-ethyKisobutyl)BBino-3'-sathylepirotisobsnz c» uren-l(3r/),9'-xenthen]-3-one 267 8x29322998 (76 2'-Anilino-6'-cyclohexyl(eelhyl)eBino-3'-Balhylspiro[isobsnzo 288 ex29322996 «77 6-Diaethylasino-3,3-bis(4-di«eihyla«inophenyl)phthslida furan-l(3n')19'-xanlhen]-3-one 216 8x29329976 «16 Bsndiocarb (ISO) 211 ex29332186 «16 Hydantoin 212 6x29332186 ^ «28 213 ex29332188 214 6x29332996 «38 «26 2-(3-Benzyl-2,5-dioxoiBidazolidin-l-yl)-2'-chloro-5,-(3-dodecyI sulphonyl-2-B8thylpropion8Bido)-4,4-diBBthyl-3-oxovalar8ni tide 3,-[4,4-DiBBlhyl-2-(4,4-diaBthyl-2,5-dioxoiaidazolin-i-yl)-3-ox ovalerylaaino]-4'-aBlhoxyste8r8nilidB Reaction product consisting of the aelhyl asters of (+/-)-6-(4-isopropyl-4-BBlhyl-5-oxo-2-iBidazolin-2-yl)-a-tol uic acid and (+/-)-2-(4-iBopropyl-4-«elhyl-5-oxo-2-isid8Zolin-2-yl)-p-tol uic acid (Iaazaaethabenz-aethyl) 215 8x29332999 «48 Trifluaizola (ISO) 22! ex29333988 «12 2-HydroxyethylaB«oniuB 3,6-dichloropyridina-2-carboxylale 222 ex29333989 «14 Cloparaelina fendizoate (INNM) 225 6x29333986 «18 Pyridine-2,3-dic8rboxylic acid 226 ex29333989 «23 5 - MB thy l-2-pyridy laaine 229 ex29333988 «28 Iaazethapyr (ISO) 218 ex29333988 «29 4,4' -Triaelhylenedipiperidine 238 ex29334998 232 ex29335989 234 6x29336996 «28 «19 «26 5,7-Dichloro-4-(4-fluorophenoxy)quinoline l-Ethyl-6-f luoro-1,4-dihydro-4-oxo-7-piparazin-l-yl-l,8-naphthy ridine-3-carboxylie acid and its salts and esters 1,3,5-Tris(4-(8r(-butyl-3-hydroxy-2,6-diaBlhylbenzyl)-l ,3,5 -lriazina-2,4,6(lW,3W,SW)-lrione 235 8x29336999 «38 1,3,5-Tris[(3,5-di-(er(-butyl-4-hydroxyphsnyl)Bathyl]-l,3,S -tri8zine-2,4,6(lrV,3rV,5W)-lriona 236 ex29336999 «35 Tri s(2,3-epoxypropyU-l,3,5-triszinanalfiona 237 ex29336998 «48 Cyenazine (ISO) 248 ex29339888 241 ex29339989 242 ex29339888 «23 «24 «27 2-(2r/-8onzotri8zol-2-yl)-4,6-di-(er(-butylphenol 2-(2W-Benzotriazol-2-yl)-4,6-di-lert-pBntylphenol 2-(2r/-Benzotr iezol-2-yl)-4,6 - b i s d - B e t h y l - l - p h a n y l a t h y D p he nol 243 6x29339986 «28 6,6'-Di - 2 t f - b e n z o l r i a z o l - 2 - y l - 4 , 4 ' - b i s d , 1 , 3 , 3 - t a t r a a e lh y l b u l y l ) - 2 , 2 ' - « e l h y l e n a d i p h e n ol /// CN codi TARIC Description Rate of autonosous duly (X) 244 8x29339888 (38 Ouizelofop-P-elhyl (180) 245 8x29339686 «31 Indotina 246 8x29341888 «18 Hsxythiazox (180) 247 8x2^341868 «28 2-(4-MathyllhiBZol-5-yl)alhBnol 258 8x29349699 • 35 7-Chloro-5-Mthu,l-2n'-l,4-benzothi8zin-3-(4r/)-onB 252 8x29349699 «37 Carboxin (180) 253 8x29349899 «38 4"[4-(Tridacyltbranchad]oxy)phanyl]-l,4-thiazinane 1,1-dioxide 8 254 8x29356666 256 8x29359868 257 8x29358668 «38 (48 «45 8alta of eulfathiazole (INN) Toluonssulphonsaidaa Mixture of ieoeere consisting of #-alhyltoluena-2-8ulphonaeidB and ^-ethyltoluBna-4-aulphonaside 259 32612686 Tenning extracts of «ettta (aiaosa) 286 ex3281 118 Tanning axtracta of eucalyptus 3. 2 261 8x32619698 263 6x32641566 264 6x32641588 265 6x32641568 262 6x32641588 266 6x32841788 267 6x32664996 (26 (16 (26 (38 (48 (18 (16 278 ex32882818 (18 Tanning e x t r a da derived froe gaabier and ayrobalan fruits Dya C. I. Vat Orange 7 Dye C. I. Vat ted 15 Dye C. I. Vet tad 14 Due C. I. Vat Bro«n 57 Dye C. I. PigeBnt Velio. 81 Black preperetion of iron-oxida pigments, in liquid fora, «ith a aaxiauB particle-size not axcaeding 28 nsnoaetres and containing by «eight 25X or eora of iron evaluated as F B J O ,, for tha aanufactura of goods of heeding No 3364 or 9668 (a) Copolyaar of K-vinytcaprolaclaa, JV-vinyl-2-pyrrolidone and diaathylaainoathyl aathacrylata, in the fora of a solution in athanol containing by «eight 34X or aore but not aore than 46X of copolyaar 273 8x32159989 (16 Ink foraulalion, for uaa in tha aanufacture of ink jet cartridgas (a) 275 33811218 Essential oil of orange, not datarpenated 277 6x34829818 278 ex34829999 (26 (19 Mixtura of docusate eodiue (INN) snd sodius benzoate Crystalline po«der obteined by tha reaction of trisodiui phoaphata «ith a aixlura of aodiua hypochlorite and sodiua chloride ('chlorinated triaodiua phosphate'), containing by •eight: - 3,5X or aore of aveilabta chlorine, «assured iodoaelrically and - 17,8X or aore of phosphorus evaluated as P205 279 ex3564( (18 Purifiad antigana obtained froe genetically-aanipulaled yeaat-catla, for tha aanufactura of detection-tests for hapatitia-C (a) 288 ex3564 281 8x35651858 (26 (28 Glycoprotein 1S6 obtainad froa Kuaan Iaaunodeficiency Virus, HIV-1 atrain 0-(2-Hydroxyalhyl)-derivativa of hydrolysed «axy aaiza-atarch yli. CN code TARIC Description Rate of sulonoaous duty (X) 282 ax35669186 (18 Adhesive bsssd on sn aqueous dispersion of a aixlura of diearised rosin and a copolyaar of athylana and vinyl acetate (EVA) 285 8x35679688 (65 Asparaginase 286 ex35879888 287 ax35879888 288 8x37613868 (78 (88 (16 289 8x37819968 (18 Enzysstic preparation baaed on theraolysina L-Lactata: oxygan-2-oxidoreductaaa, non-decarboxylating Letterpress printing pla tea, consisting of s satal substrata coversd «ith a photopolyaar layer containing by «eight 15X or aore but not aore then 48X of 2-hydroxyslhyl aethacrylate, of a total thickness of 9 , 6 7 BB or «ore but not axcaading 6 , 7 7 BB Plata of quartz or of glsas, covarad «ith a fila of chroaiua and coated «ith a photo-aanaitiva or electron-sensitive resin, for tha aanufactur8 of aaaks for tha goods of heading No8541 or 8542 (a) 291 38852868 Pine oil 292 ax38682688 «18 Fungicide in tha fora of a poadar, containing by «eight 65X or aore but not aore than 75X of hyaexszole (ISO), not put up for reteil sale, for the palleting of seeds (a) 293 6x38884996 (16 l-Dodecylguanidina hydrochloride, in the fore of a solution in isopropanol and «ater, containing by «eight 46X or less of l-dodecylguen. idine hydrochloride 294 8x38699189 «16 Mixture of 5-Bthyl-2-aelhyl-2-oxo-l,3,2A -dioxaphosphoren-5-ylset hyl aethyl aathylphosphonsta and bi8(5-alhyl-2-BBthyl-2-oxo-l,3,2A-dioxaphosphoran-5-y laethyl) aethyIphosphonste 295 8x38689286 «16 Paper anti-fading agent, consisting of a aixture of «agnesiua trisilicate and aonoeodiua selt of 2,2'-aethylenebis(4, 6-di-(er(-butyIphenyI) phosphate 296 6x38112168 298 6x38123686 299 8x38123886 368 6x38123688 «18 «19 «26 «38 381 8x38151288 «18 362 8x38151266 «26 Salts of dinonylnaphthalenesulphonic acid, in the fora of a solution. in ainersl oils Tetrealuainiua noneaagnesiua dicerbonsle hexacosahydroxide heplahydrate, costed «ith a surfsce-active agent Mixture contsining predoainently bis(2,2,6,6-tetr8aethyl-l-oclyloxy-4-piperidyl) sebscete Coapound stabilisers contsining by «eight 15X or sore but not «ore than 48X of sodius parchlorste end not «ore than 76X of 2-(2-aethoxyelhoxy)ethanol Catalyst, in the fore of granules or rings of a diaaeter of 3n or sore but not exceeding 18aa, consisting of silver on an alusiniua-oxide support end contsining by «eight 8X or sore but not sore than 29X of silver Catalyst consisting of pelladius and rheniua, fixed on a support of active carbon, in the fors of poider, contsining: - 8,5X or Bore but not «ore then 1,5X by «eight of palladium, - 3X or aore but not tore than 5X by «eight of rheniua and - 8,1 soleX or aore but not aore than 1 aoleX of alkaline aetals, 8 8 8 1. 7 8 6 6 8 6 6 6 8 6 for use in the aanufactura of telrehydrofuran (a) 6 384 8x38151966 «63 Catalyst, consisting of chroaiua trioxida or dichroaiua trioxide fixed on 8 silicon-dioxide support, of e pore-voluae, as deterained by the nitrogen-absorption aethod, of 2ci /g S* CN coda TARIC Daacription Rate of autonoaous duty (X) 385 ex38151966 «11 Cetalyst conaiating of chroeiua oxidea and titaniua dioxide fixed on • eupport of silicon dioxide, alueiniua oxide or aluainiua phoaphata 366 8x38151966 (13 Cctatyat coneieting of titaniua lelrechloride supported on sagnaBiua dichlorida, in the fore of e euepeneion in einaral oil or in hexatie, for uee in the eenufaclura of polypropylene (a) 367 ex38151988 (14 Cetalyat, in the fori of spheres of e diaaatar of 4,2s« or eore but not exceeding See, coneieting of a eixture of oxides of eolybdanua, tungsten, vanadiua, copper end atrontius, on a support of silicon dioxide and/or alueiniue oxide, for use in the aanufsctura of acrylic acid (a) 3613 6x38151968 (15 Catalyst coneieting of orgeno-eetellic coapounda of titaniua, eegnesiue and aluainiua on a eupport of eilicon dioxide, in the fore of • euepeneion in tatrahydrofuran 369 6x38151968 316 ex38159666 (16 «IS 311 ex38159688 «28 312 6x38159666 «25 313 6x38159966 «35 315 ex38159968 «55 316 ex38159968 «76 Catalyat coneieting of dichroeiua trioxida, fixad on a support of aluainiua oxida Cetelyet, in tha fere of rodlete of a diaaatar of 4ae or sore but not exceeding Bee, coneieting of a fixture of oxides containing by «eight aora than 96X of oxides of solybdenus, vanadiua, nickel end entieony, for use in the aanufacture of acrylic acid (a) Cetalyat, in poader fora, coneieting of a Mixture of titaniua trichloride and alueiniue chloride, conteining by «eight: - 28X or eore but not eore than 38X of titaniua and - 55X or aore but not aora than 72X of chlorine Catalyst, in the fore of rodlete of e diaaatar of 4aa or sore but not excaading Sas, coneieting of a sixlurs of oxides containing by «eight aora than 96X of oxides of solybdenus, biaauth, nickel, iron end eilicon, for use in the aanufacture of acrylaldehyda (a) Catalyat, in tha fora of a auapanaion in oil, consisting of titaniua trichloride end aluainiua trichloride, containing by «eight (on an oil-fraa basis): - 15X or aore but not aore than 36X of titaniua and - 46X or eore but not eore then 72X of chlorine Catalyat, in tha fora of rodtals of a length of 5 BB or aore but not axcaeding 8aa, consisting of s aixtura of oxides of iron, aolybdanua end biaauth, for use in the aanufacture of acrylic acid (a) Catalyct contsining titaniua trichloride, in the fora of e suspension in hexana or heptana containing by «sight, in the haxana- or heptene-free salarial, 9X or aora but not aore than 38X of titaniua 317 ex38159668 «75 Reaction initiator, conaieting of a aixtura of M,*'l*''-tatraaalhyl-2,2'-oxybiB(ethylaainB) and dipropylane glycola 318 ex38159698 «88 Catalyat, in tha fora of rodleta, consisting of sn acid aluBinoailicate (zaolita): - «ith a aola-ratio of ailicon dioxide : dialuainiua Ir i ox i de of not laaa thsn 588 : 1 and - containing by «eight 8,2X or aora but not aora than 6,8X of platinue 319 ex38159868 «86 Catalyst baaed on a aordanite zeolite, in the fora of granules, for uae in the eenufecture of aixtures of ssthylssines (a) containing by «eight 58X or aora of diaathylaaina 326 6x38159868 (87 Catalyst, consisting of a aixtura of (2-hydroxypropyDlriaathylaaaoniua foraata and dipropylene glycols Jf CN coda TARIC Description Rata of a u t o n o a o us duty (X) 322 8 x 3 8 1 8 6 8 18 «18 Silicon discs, «ith phosphorus diffused into one side, of s thickness not excesding 318 sicrosetres, for use in the sanufscturB of aaaiconductor devices of hssding No8541 (a) 321 8 x 3 8 1 8 8 8 18 «28 Hafer of sonocryslsllina silicon, «ith s layer of silicon oxide covered «ith s layer of depoeited silicon, «ith a diaaeter of tore than 98aa but not axcaading 282aa 323 a x 3 8 2 2 8 8 88 324 8x38228868 «18 «28 Lyophilizad sxlrscl of tha blood calls of polypheaus (Liaulua aaoabocyte lyssta) Liaulua Polyathylana teraphthalata strip, costad «ith several layers of reagents of differing type end a surface layer of titaniua dioxids or bsrius sulphate, for the ssnufsclurs of analysis cartridges for biochsaical tests (a) 325 8 x 3 8 2 3 1 9 18 (91 Mixture of fatty acida containing by «eight: - 2X or aora but not aora than 6X of haxanoic acid, - 53X or aora but not aora than 68X of octanoic acid, - 34X or aore but not aora than 42X of dacanoic acid and - not aore than 2X of dodecanoic acid 326 ex38249815 (16 Acid aluainosi licata (artificial zeolite of the V type) in the sodius fora, containing by «sight not aora than 11X of sodius avaluated as sodius oxide, in the fora of rodlets 328 8x36249886 (92 intermediate products of the antibiotics aanufacturing process obtained froa tha feraentation of Hicroaonospora «nether or not dried purpuras, 329 6x38248868 338 6x38249668 332 6x38249868 (83 «64 «86 333 8x38249668 «67 Cholic acid end 3«,12«-dihydroxy-56-cholan-24-oic acid (deoxycholic a c i d ), crude Products obtained by the JV-ethyletion of sisoaycin (INN) Intermediate products of the antibiotics sanufacturing process obtained fros the fermentation of Micreaonospora «helher or not dried inyoansis, Reeiduee of ssnufscture containing by weight 46X or sore of lip,17,26,21-lalrahydroxy-6-B8thylpregna-l,4-diBn-3-one-21-ace late 334 ex38249698 335 ex38249999 361 6x38249996 336 6x38249998 337 8x38249698 339 6x38249898 346 8x38249698 342 6x38248698 «81 «92 «63 «84 «65 «67 «68 «11 6 8 9 Colloidal diantiaony penteoxide Mixture of nitrosethane and 1,2-epoxybulane Grains or granules, consisting of a aixtura of dialusiniui trioxide and zirconius dioxide, containing by «eight: - 78X or sore but not sore than 78X of dialusinius trioxide and - 19X or «ore but not «ore than 26X of zirconius dioxide 5. 2 Crude lithius hypochlorile Mixed oxides of bsrius, titsnius and other setalB, in the fori of powder, contsining by «eight; - 5X or sore of bar i ua and - 15X or «ore of ti tanius, for use as dielectric «alerials in the ssnufacture of aulti layer ceraa ic cepac i tors (a) Preparation, in the fors of po«der, containing by «eight 75X or sore of zinc b i s[3, 5~b i s(l-phsny l e t h y D ss t icy lete] Fila consisting of the oxides of bariua, calciua and either titaniua or zirconiua, mixed «ith binding materials Preparation consisting essentislly of alkaline asphalt sulphonete, of: - a specific gravity of 8,9 or «ore but not exceeding 1,5 and - a solubility in «ater of 78X by «eight or sore CN coda TARIC Daecription Rata of autonomous duty (X) 343 8x38249898 (12 Anti-corroaion preparations coneieting of ealts of dinonylnaphthateneeulphonic acid, either: - on a support of ainaral «ax, «hathar or not aodifiad cheaicatly, or - in the fora of a aolulion in an organic aolvent 344 ex38249999 (13 Cetcinad bauxite (refractory grade) 345 8x38249698 (14 346 8x38249898 (15 Magnatieabla iron oxide, in the fors of poeder, conteining by •eight: - 38X or aora but not aora than 38X of bivelenl iron in relation to tha total iron end - II or aora but not aora than 4X of cobalt 8pant catalyat, in tha fora of rodtata of diaaeter of lea or eore but not axcaading 3aa, containing a aixture of aulphidas of tungsten and of nickel on a eupport of zeolite, conteining by «eight not aora than 18X of tungeten end not aora than 18X of nickel, for raganeretion ae a cetalyat for hydrocarbon-cracking (a) 347 8x38249698 (16 Mixture containing by «eight: - 7X or aora but not aore than 9X of 2-eethyl-l,3-phenylena di iaocyanate, - 31X or eore but not eore then 34X of 4-eethyl-l,3-phenylene diieocyonala, - 19X or aora but not aora than 13X of 2,4'-aethylenediphenyl di iaocyanata, - 46X or aora but not aora than 49X of 4,4'-aethy tonediphenyl di ieocyenete 349 ex38249996 358 ex38249896 351 6x38249896 (18 «19 (21 Mixture of aegneeiue broaide 2-oxoparhydroezepin-l-ide and c-caprolactaa Mixture of dieodiua l-benzyloxycarbonyl-L-aapartata and sodiua chloride, in the fora of a aotution in «alar Diaodiua 9,18-dihydro-9,18-dioxoanthracana-2,7-diaulphonate, containing by «eight 18X or eore but not eore than 26X of Bodiua autphate 352 6x38249699 (22 Eutectic elloy «holly of poteaaiua end sodius, containing by «sight 77X or aore but not eore then 79X of potassium 353 ex38249996 (23 Bland of tarephtheloyl dichloride end ieophthaloyl dichloride 354 ex38249696 «25 Acid-hydrolyaad caaein, containing by «eight: - 8X or eore but not eore then 11X of nitrogen 355 ex38249996 «26 356 6x38249899 «27 357 ex38249996 358 ex38249996 359 ex38249998 (28 (29 (31 end - 16X or eore but not aora than 28X of aodiue chloride, for the eenufecture of prepared culture Badia for developaent of aicro-organiaee (a) Preparation coneieting by «eight of 96X or eore of 38,4,7,7a-tetrehydro-4,7-eethenoindene (dicyclopentadiene), 8 synthatic rubber and - either en elueiniue-atkyl coapound - or en organic coeplex of tungaten Mixture of trie[2-chloro-l-(chloroeethyt)ethyl] phosphate and oligomers of aathytphoephonic ecid end phoephoric acid «ith athane-l,2-diot Mixture of trie[2-chloro-l-(chloroeethyl)ethyl] phoaphata and oligoaare of 2-chloroalhyl phoaphata «ith alhana-1,2-diol Mixture of eucroee eetere, derived froe tha eatarification of sucross «ith industrial atearic acid Preparations coneieting predoainantly of phoaphabicyclononanes and P-alkyl darivativaa theraof, in tha fora of a solution in 4-ierf-butyltoluana yu CN code TARIC Deecription Rate of autonoaoue duty (X) 366 8x38249888 «32 Lithiue tantatate «afars, undoped 362 ax38249898 «35 Praparation conaiating pradoainantly of athylana glycol and *,*-diaathytforaaaida or ethylana glycol and jf-butyrolactona, for tha aanufscturs of alactrolytic cepacitora (a) 363 8x38249888 «36 Praperetion coneieting predoeinently of jr-butyrolaclona and quatornory aeeoniua sslts, for the eenufectura of electrolytic cepecitore (a) 364 ex38249898 «37 2,4,7,9-TetrBeethytdec-5-yn-4,7-diol, hydroxyathyletsd 365 8x38248698 «38 Copper zinc ferrite, in the fore of granules of e size not exceeding 128 aicroaetraa, costsd «ith s silicons rssin 366 ex38248898 367 8x38249896 «38 «41 8tyrene oligoaer Praperalion coneieting of t-(4-ellyloxycerbonylbenzoyl)-«-ellyloxypoly[oxy(2-B ethylethylene)oxyterephtheloyl] and either diellyl-2,2'-oxydiathyl dicerbonate or diallyl isophthalate 486 ax38248899 (47 Mixture conteining by «eight 48X or aora but not aora than S8X of 2-hydroxyathyl aethecrylate and 48X or aora but not aore than 58X of glycerol ester of boric acid 96b i s 8x38248889 (48 Azaleic scid of a purity by «eight of 75X or aore but not axceeding 85X 369 8x39612688 (16 378 8x39812868 373 8x39819968 376 ex39619888 (28 (92 (97 Polyethylena, in one of the foras senlioned in note 6(b) lo Chapter 39, of e specific gravity of 8,945 or aore but not axcaeding 8,985, for tha aanufacture of filas for typewriter ribbon or sisilar ribbon (a) Polyethylene, containing by «aight 35X or aore but not more than 45X of aica Ionoaer resin consisting of s sett of a copolyaer of ethylene «ith aathacrylic acid Copolyaer of ethylene, vinyl acetate and carbon aonoxide, for usa as a plasticizer in the aanufacture of roof sheets (a) 377 8x39829688 (92 Polyaars of 4-aethylpent-l-ene 379 ex39829998 8x39639688 388 8x39631966 382 6x39839868 (97 (66 (26 (28 383 6x39939988 (25 385 8x38939996 (48 A-B Block copolyaar of polystyrene and an ethylene-propylene copolyaer, containing by «eight 48X or less of styrene, in one of the fores sentioned in note 6(b) to Chapter 39 Polystyrene of a aolacular «aight not Exceeding 5668 Copolyaer, entirely of styrene «ith saisie anhydride, or entirely of styrene «ith aalaic anhydride and an acrylic aonoaer, whether or not containing a styrene-butediene block copolyaer, in one of the fores aentioned in note 6(b) to Chapter 39, for the aanufacture of sheetings for head-liners for cars (a) Copolyaer, entirely of styrene «ith saisie anhydride, or entirely of styrene «ith saisie anhydride and an acrylic aonoear, also partially ssterified, of en average molecular •sight not axcaeding 3688, in one of the foras aentioned in nota 6(b) to Chapter 39 Copolymer of etyrena «ith 2-ethylhexyl acrylate or «ith n-butyl acrylate, containing: - 18 aolaX or aora but not «ore than 16 moleX of ecrylate, - 8,2sg/kg or less of sodius and - 8,lag/kg or lees of calcium 386 8x39939866 (79 Copolyaar of styrene, butyl scrylate and acrylic acid, containing by «sight 92(±1)X of styrene, 7(±1)X of butyl acrylsta and K i 6 , 5 )X of acrylic acid 6 8 8 8 8 6 6 6 6 8 6 4 6 9 6 6 6 6 8 8 ^ CN code TA8IC Deecriplion Rata of autonoaous duty (X) 387 ex39939999 8x39119998 389 8x39844868 «86 «88 «91 Copolyaer of s-eethyUtyrona and atyrena, having e softening point exceeding U 3 *C 8 Copolyaar of vinyl chloride «ith vinyl acatate and vinyl alcohol, containing by «eight: - 87X or aora but not aore then 62X of vinyl chloride, - 2X sr aore but not aora than 9X of vinyl acetate end - IX or eore but not aore than 8X of vinyl alcohol, in one of the foree eentionad in note 6 (e) or (b) to Chaplar 39 8 398 8x39644888 (92 392 6x39845688 (92 393 8x39946198 395 6x39646986 (16 «91 Copolyaer of vinyl chloride, vinyl acatate, hydroxypropyl acrylata and ealaic ecid, containing by «aight 88X or aora but not eore then 83X of vinyl chloride, 1,8X or aora but not eore then 2X of hydroxy groupa end 8,25X or aora but not eore then 8. 38X of carboxyl groupe Copolyaar of vinylidane chloride «ith vinyl chloride, conteining by «eight 79,5X or aore of vinylidane chloride, in one of the foree aentioned in note 6 (a) or (b) to Chapter 39, for the eanufacture of fibree, aonofilaaant or etrip (e) Mixture of polylalrafluoroethylene end aica, in one of the foraa eentionad in note 6 (b) to Chaplar 39 Copolyaer of athylana «ith chlorotrifluoroethylene and hexaf luoro(2-aalhylpropene), in ona of tha foree aentioned in note 6(b) to Chapter 39 396 ex39846968 «92 Copolyaer of tetrafluoroethylene end tr i f luoro(tri fluoroeelhoxy)ethytone 398 6x39846988 «95 Copolyaer of ethylene «ith chlorotrifluoroethylene, in one of 394 6x39646968 «96 Copolyaer of ethylene end tetrefluoroethylene the fores aentioned in note 6(b) to Chepter 39 278bi s 6x39659166 466 6x39659196 8x32682816 «91 «92 «26 Copolymer of iV-vinylcsprolactaa, y-vinyl-2-pyrrolidone and diaathylaainoathyl aathacrylate Copolyaer of vinyIpyrrolidone end diaathylaainoelhyl aathacrylate, pertielly quatarnized by diethyl sulphate, in the fora of a solution in athanol 464 6x39659998 «94 Polyvinyl acetate phthelete 461 ex39959988 «95 Polyeer of vinylpyrrolidone and diaethyleeinoethyl methecrylata, containing by «aight 07X or aore but not aore than 99X of vinylpyrrolidone, in the fore of a aolution in «ater 462 8x39859966 «96 Hexadecylalad or aicoaylated polyvinylpyrrolidone 465 ex39861868 413 6x39869686 (18 (78 Polyaethyl aethscrylate, in the fore of axpansibls beads containing 2-aethylpentana ee blowing agent Polyaerizetion product of ecrylic ecid «ith eeell quantities of a polyunsslursted sonossr. , for tha eenufacture of eedicaaants of heeding No 3883 or 3884 (e) 414 8x39869666 (88 Polyeerization product of acrylic acid «ith aaall quantities of a polyunsaturated sonoaar, for usa ae a atabilizar in aaulsions or dispersions «ith 8 pH of aore than 13 (a) 415 ex39872619 (18 Polyethylene oxide) 416 ex39972699 (15 Bia{2-[«-hydroxy-poly(alhylenaoxy)]Bthyl} hydroxyasthylphosphonala 417 6x39872899 (26 Poly(oxypropytana) having alkoxyeilyl end-groupe 418 8x39872898 (48 Poly[oxy-l,4-phsnylaneieopropylidene-l ,4-phanylenaoxy-(2-hydrox ytriaathylane)], of an average aolacular «eight of aora than 26688, in ona of tha foras eentionad in note 8(b) to Chsptsr 39 6 9 6 6 6 9 6 9 8 8 9 8 6 6 6 8 8 6 8 ÀÏ CN code TABIC Description Rate of autonomous duty (X) 418 8x39872888 «66 «-4-Hydroxybulyl-«-hydroxypoly(oxyt8trs«8lhylene), conteining leee then lag/kg of halogen and less then lsg/kg of aalsl, and of a colour not exceeding 26 unila on the Hazen acale 8 428 ex38872898 «78 Hosopoly. ,* of l-chloro-2,3-epoxypropene (apichlorohydrin) 422 8x39873888 «28 Epoxyda reein in the fora of po«der, contsining by «sight 44X or aora but not aora than 55X of quartz and 8,5X or more but not aore then IX of dientiaony trioxide, for tha coating of fila capacitora (a) 423 8x39879198 «18 Diallyl phthalata prapolyaar, in tha fora of po«der 425 8x39879918 8x39879998 427 ex39879918 428 8x39689668 429 8x39894988 438 ax39119818 431 6x39119918 «18 «18 «38 (18 116 (28 (48 Poly(oxy-l,4-phenylanecerbonyl), in the fora of powder Liquid cryatel copolyeeter «ith a aelting point of not lass than 278*C, ahether or not conteining fillers Poly(iainoaathytana-1,3-phanylanaaathyleneiainoadipoyl), in one of tha foraa aentioned in note 6(b) to Chapter 39 Polycondenaation product of phenol «ith formaldehyde, in the fora of holloa apheree of a disaster of less than 158 aicroeetree Poly(oxy-l,4-phanylanBsulfonyl-l,4-phenyleneoxy-4,4 ' -biphenyten e) Polyaar of daxtrosa, sorbitol snd citric acid, containing by •eight 98X or eore of dextrose 437 8x39119998 (85 Copolyaer of dibutyl aalasta and l-vinyl-2-pyrrolidone, in ona of the foree eanlicned in note 6 (a) of Chapter 39 438 ex39119698 (87 Copolyaer of vinyltoluene and «-aethylatyrene 434 6x39119998 8x32689618 (91 (36 Copolyaer of aalaic acid and aathyl vinyl ether, aonoesterified «ith ethyl and/or iaopropyl snd/or butyl groups, in the fora of a solution in athanol, athanol and butanol, iaopropanol or iaopropanol and butanol 435 8x39119699 (92 Mixed celciue and sodium salt of a copolyaer of saleic acid and Bsthyl vinyl ather, having a calciua content of 9X or aore but not aora than 16X by «eight 436 ex39119696 448 6x39121186 (93 (16 Copolyaer of aalaic acid and «ethyl vinyl ether Non-plasticizad callulose triacetate, in the fore of flakes, for the aanufacture of cellulose triacetate yarn (a) 441 8x39123918 (16 Ethylcalluloaa, not plasticized 443 8x39123998 445 Bx39123998 (18 148 Cellulose, both hydroxyethylatad and ethyleted, insoluble in •ater Cellulose, both hydroxyethylated and alkylated «ith alkyl chain-langtha of 3 or sors carbon atoms 446 8x39139988 (36 Chondroitinsulphuric acid, sodius salt 448 ex39173231 (92 Insulating tubing (haat-shrinksble tubing) of ethylene polyaera, «hathar or not internally coaled or covered «ith a tharaoplaatic adhesive, for use in nuclear plants (a) 449 8x39173239 (29 Pips conaiating of a block copolyaar of polytetraf luoroethylene and polyparfluoroalkoxytrif luoroethylene, having a length of not aora than 579aa, a diaseter of not aora than 5 6 BB and a «ell-thicknass of not less then 36 and not aora than 116 aicroaatars 458 6x39199818 (18 Shepsd sheet of plastic, «ith an adhesive layer containing polyisobutylene and paclin, for the manufacture of colostomy bsgs (a) SÏ CN code I h t lC Deacription Rata of autonomous duty (X) 451 8x39199831 8x39286868 (16 (88 452 8x39199631 8x39266218 6x39266296 8x39296369 ex39286999 453 ex39199961 8x39199969 454 8x39199961 ex39199969 (48 (48 (28 (38 (38 (92 (92 (93 (93 457 8x39261622 (95 458 8x39281822 8x39261686 (96 (95 459 ex39261848 «91 456 ex39281648 «92 466 ex39292696 «91 461 ex39263666 «26 462 ex39294211 B X 3 9 2 6 4 2 91 463 ex39264291 «92 «92 «93 Reflacting laainated aheating, aatallized, not containing glass balle or pyraaidal patterns, consisting of one eheet of polysstsr end et laast another aheet of polyeeter or other pleatic aatarial and coated on one aida «ith an adhesive, «hether or not protected by e reteeee eheet, in rolls, eech roll of e «idth of 156ce or sore end e groee «eight of 75kg or eore Reflacling polyeetar ahaating eeboeeed in e réguler pyraaidal pattern, for the aanufactura of eafaty etickere end badgaa, eefety clothing and accassoriss thereof, or of echoot eetchels, bags or aiailer containara (a) Polyvinyl chloride aheating, of a thicknaee of less than lea, coated «ith en adhesive in «hich are eabaddad glaaa balle of a diaaatar not exceeding 166 aicroeetree Adheeive file consisting of a baee of e copolyaar of ethylene end vinyl ecetete (EVA) of a thickneee of 129 eicroeatraB or aora and an adhesive pert of ecrylic type of e thickness of 19 aicroaalraa or aors, for tha protaction of the eurfeca of ailicon discs (a) Fila of polyethylene, of a thickneee of 29 aicroaatres or acre but not axcaeding 45 aicroaatres, contsining cslciua carbonate in the aass, for the aanufactura of napkins for babies or of senitery toasts or of tampons or of dispossbla surgical gowns (a) Fila of a thickness not exceeding 8,288a, of a blend of polyethylene and a copolyaar of athylana «ith oct-1-ane, eabossed in a regular rhosboidsl paltarn, for coating both sides of a layer of unvulcanized rubber (e) Synthetic paper pulp, in the fore of soist shsels, Bade froa unconnactad finely-branched polyathylana fibrila, whether or not blended «ith cellulose fibres in a qusntity not exceeding 15X, containing polyvinyl alcohol dissolved in water as the •oistening egent Laainated aheet or strip conaiating of a fila composed nf 8 blend of a copolyaer of athylana «ith vinyl acetate and a aodified ethylene-propylene-slastoser (EPM) or a modified ethylene-propylene-diene elastomer (EPDN), coated or covered on both sides «ith a file of a copolyaar of ethylene «ith vinyl acetate Synthetic paper pulp, in tha fora of aoiat sheets, aada froa unconnected finely-branched polypropylene fibrils, «hether or not blended «ith cellulose fibres in a quantity not exceeding 15X, containing polyvinyl alcohol dissolved in water ae the aoistsning agent Laainated aheet or strip, conaiating of a fila of a thickness of 168 aicroaatres or aora but not exceeding 286 aicrosetres, composed of a blend of a theraoplaatic alaatoaar (TPE) of styrene-bulsdiene-styrene (8B8) «ith polyethylene or polypropylene, coated or covered on both aidaa «ith a fila of polypropylene of a thickness not exceeding 28 eicrometrea Reflecting sheeting, consisting solely of 8 single layer of polyvinyl chloride, «holly embossed on one side in a regular pyraaidal pattern Sheeting of polyvinyl chloride, stabilized againat ultraviolet rays, «ithout any holes, even microscopic, of s Ihicknsss of 68 micrometres or more but not exceeding 88 aicromatres, containing 38 or aora but not aora than 48 psrta of plaaticizar to 168 parts of polyvinyl chlorids 464 6x3926429! «94 Polyvinyl chloride sheet, «ith relief printing, for the aanufactura of templates for textile printing (a) £o CN code TABIC Deacription Rate of autonoaous duty (X) 465 8x39295186 467 8x39296168 471 8x39286218 «18 «18 «18 473 8x39296218 «28 475 6x39286218 (45 Polyeethyl aathacrylete plate, «ith en antistatic coating, of diaansions of 738x972aa (tl. Saa) Polycarboneta fila of a thickneee not exceading 15 aicroaatres, for the aanufactura of fila capacitors (a) 6 Polyathylana taraphthalete file, of a thickneee of less than 11 aicroaalraa, for tha eenufecture of audiodigital tapes for ceeeattaa (a) Polyathylana tarophlolata fila, not coated «ith en sdhesive, of a thickneee not exceeding 25 eicroaalrea, aither: - only dyad in the aase, or - dyed in tha aaae end aalallized on one sida Fila of polyethylene terephthelete only, of a total thickness not axcaeding 128 eicroaatraa, coneieting of one or two layers eech containing a colouring and/or UV-abeorbing eeterial throughout tha aaee, uncoated aith an adhesive or eny other eeterial 476 6x39266216 «58 Polyethylene taraphthalete fila, of a thickness of 28 aicroaatrae or aora but not exceeding 38 aicroaetrea, coaled on ona aide «ith eilicone, for uee in the aanufacture of window fila (a) 5. 6 477 6x39266218 (55 478 6x39286218 (68 Laainatad file of polyethylene terephthelate only, of a total thickneee not exceeding 128 eicroeetres, consisting of one Isyer «hich ie aetellieed only and one or two layers each containing a colouring and/or UV-abaorbing aeteriel throughout the «ass, uncoated «ith en edheeiva or any other aaterial File of polyethylene terephthelate, coated or covered on one aide or on both a idea «ith a layer of aodified polyester, of a total thickneee of 7 eicroaetree or aore but not exceeding 11 aicroeetree, for tha aenufecture of video tapes «ith s eagnetic layer of aalallic pigaants and a «idth of 8aa or of 12,7•• (a) 479 ex39296218 (65 8ingle ply file of polyethylene tarephthalate only, of a thickneee not exceeding 128 eicroeetres, «hich only: - contains s colouring and/or UV-absorbing aaterial throughout 468 ex39266216 (78 469 8x39286216 (75 478 6x39266216 (88 486 6x39266969 481 ex39266966 (48 (58 the aass and - ia eetellieed on ona aids, «hether or not coeted on one or both sides «ith a vinyl ecrylate polyaar but heving no other coating or adhesive Fits of polyathylana teraphthalata, of a total thickness not exceeding 128 eicroeetres, of s «idth of 186sa or aore but not exceeding 115aa, coated on both sides «ith one or aore layers containing different chesicals, for the aanufacture of goods of subheading 37812888 (a) Fila of polyethylene terephthelate, on one side setallized end coated «ith «hita ink and a protective layer end on the other aide coeted «ith e thsraoseneilive seal layer, of a «idth of 1 I 6 BB or aore but not exceading lS8aa, for tha aanufacture of gooda of subheading 37812888 (a) Fila of polyethylene teraphthalate, coated on one side «ith a layer of aodified polysslsr, of a thickness of 28 micrometres (±8,7 eicroeetre) or of 38 aicrosstres (±8,9 aicroaetre), for tha aenufecture of eudio eagnatic tapes of s totel thickness of 33 eicroeetree or sore (e) Irideecent file of polyester end polyeethyl sethacrylate Polycondenaalion product of terephthalic acid «ith a mixture of cyclohsx-1,4-ylenadiaelhmnol and ethane-1,2-diol, in the fora of a file 482 6x39266969 (68 File of e copolyaar of athylana teraphthalate and ethylene isophthaleta, of a thicknaaa not axcaeding 2 aicroaatres t\ CN coda TARIC Description Rete of autonoeous duty (X) 483 0x38289188 484 8x38268168 (91 (92 Polyvinyl butyrel file heving e gredueted coloured bend 6 Pleeticized file of polyvinyl bulyrel, containing by «eight: - either 14,5X or aora but not aore then 17,5X of dihexyl adipata - or 14,5X or eore but not eore then 28,5X of dibutyl eebecete 8 8 6 8 8 8 8 8 488 0x39289958 (24 Fila entirely of polyvinyl alcohol, of e thickness not exceeding lea end conteining by «eight: - 2X or less of unhydrolyssd ecetete groupe evoluated as vinyl acetete and - 5X or eore but not eore then 2SX of glycerol es pleslicizar, for the eenufecture of roof-«indo«e (e) 488 0x39289858 (26 Polyd-chlorotrifluoroethylene) file 491 ex38269958 (27 Fila of a aixture of polyvinylidsna fluoride «ith sn acrylic polyaar, of e thickneee of 48 aicroastrBS or aora but not exceeding 66 eicroeetree 482 ex39269958 (28 493 ex39269956 (36 Fila and aheet of e copolyaer of ethylene «ith chlorotrifluoroethylene, of e thickness of 12 aicroaetres or aore but not exceeding 488 aicroaatres File entirely of polyvinyl elcohol, of s thickness not axcaeding lea and of a «idth of 2,28a or aore, «ith an axtenaion et break, in the transverse direction, of 356X or aore 494 8x39269958 (37 Biaxially-oriantad fila of polyvinyl alcohol, coated on both sides, of a totel thickness of less then lss 495 ex39299958 (38 Iridescent file of polyester, polyethylene and an ' ethylene-vinyl «estate copolyaar 496 0x39288958 «39 Polytetrafluoroalhylene fila, non-aicroporous, in the fore of rolls, of s thickness of 8,819«« or sore but not exceeding 8 , 1 4 B B, iepsreeeble to «star vapour 498 8x38211998 497 6x39211998 499 ex39219819 566 8x39219619 561 8x39219619 «91 (92 «35 (45 (58 562 8x39269891 (26 583 ex48881166 (18 Microporous polypropylene fila of a thickness not exceeding 39 aicroaetrea Microporous fila conaiating of sixtures of cellulose acetate and cellulose nitrate, of a thickness not Exceeding 266 sicromstres Cosposite piste of polycsrbonsta and polybutylene teraphthalata, reinforced «ith glass fibres Coeposite plate of polyathylana terephthelate or of polybutylene terephthalate, reinforced «ith glass fibres Multilayer file of a thickness not exceeding 156 sicrosetsrs, consisting of s polyestsr fils coated on one aide «ith polycarbonate reein, eatallized on tha other side «ith tilsniua coatad «ith polycarbonata resin snd other layers containing «*, *f'-diphanyl-iV,JV'-di-«-lolylbiph8nyl-4,4l-ylBnediaB ine Reflecting aheating or tape, conaiating of a facing-atrip of polyvinyl chlorida aaboesed in a ragular pyraaidal pattern, haal-aaalad in parallel lines or in s grid-pattern to a backing-atrip of plastic aatarial, or of knitted or «oven fabric covered on one eide «ith plastic aaterial Blocks or shoote of celluler vulcanised rubber of aodified elhylene-propylene-diene (EPDM) blended «ith chloroprene, «hich sstisfy the Underwriters Lsboralories Flsasabilily Standard UL94HF-1 Xt CN code TARIC Deecription Rate of autonomous duty (X) 564 6x46169988 (18 8oft rubber sealing stoppers for the eenufecture of electrolytic cepacitora (a) 565 41851191 41851199 41851216 41851298 41851916 41851998 566 41661196 41661288 41661968 587 41671818 41872916 416-79816 8heep or leeb ekin leather, aithout «ool on, tenned or relanned but not further prepored, «hether or not eplit, other than laether of heeding No 4168 or 4168 Goet or kid ekin toother, «ithout heir on, tenned or ratanned but not further prepared, «hether or not eplit, other than leether of heeding No 4181 or 4189 Leether of other eniaale, «ithout hair on, not further prepared than tanned, other then leether of heading No 4188 or 4189 ex44166696 (18 Ueed ceaka end berrele of oek, «hether sssssbled or not; theii stavaa and heada 589 45811868 Naturel cork, re« or aieply prepored 518 ex48856699 511 ex481121( (16 (16 512 ex48113986 513 ex48239898 514 ex49119998 515 5( 516 ex58648818 ex58648896 517 ex5665G6ie ex56656899 519 exS4823318 ex54823398 (16 «12 «16 «16 «16 «16 «18 «16 «18 528 exS4823399 «26 Overley paper, of a «idth of eore than 285ca and containing by «aight eore then SX of corundua Iapregnated paper coeted or covered «ith e pressure-sensitive salf-adhaaive layer, the «hole: - of e teneile of 2788N/B or eore but not exceeding 3768N/B in the eechine direction (as datarainad by the DIN 53112 aethod), - of a alrelch factor of 1,5X or aora but not exceeding 3,6X in the aechine direction (as deterained by the DIN 53112 aethod) and - of adhasivity on stainlaas steel (ss deterained by the DIN 38646 aethod) of 58N/B or aora but not axcaeding 225N/a, at a teaparatura of 23*C (±3*C) and 8 relstive humidity of 58X (±5X) Kraft paper iipregnated «ith an acrylic polymer «ith a nominal weight of 8 5 g / a2 Strips of pspar gluad to ona anothar to fora a honeycomb of a height not axceading 13ca, for agricultural purposes (a) Polyester file, partially coatad «ith a magnetic metal layer showing a ragular rapaating logo or aotif, for the aanufacture of security thrssds (a) Raw si Ik (not thrown) Varn spun entirely froa ailk, not put up for retail sale 2. 5 Vsrn spun entiraly froa ailk «aata (noil), not put up for retail sala Taxturad yarn of polyester, singla or two ply, measuring per aingle yarn 128 dacitax and consisting of 36 filaments or «assuring per singla yarn 167 dacitax and consisting of 48 filsaents aach having a randoa variation of diameter along its length Textured yern of polyester, aeasuring par singla yarn 167 dacitax and conaiating of 68 filaeents or saasuring per single yarn 334 dacitax and conaiating of 78 filaeents, having filaasnla both of polyethylene taraphthalata and of a polyethylene taraphthalata «hich haa baen chesically aodified to silos it to ba dyaabla with cationic dysstuffs 521 ex54823918 «16 Tsxturized ysrn of polypropylene, impregnated «ith silicona-bassd «star-rspsllsnt *) 1 CN code TARIC Deacription Rata of ButonoaouB duty (X) S22 8x54824118 (18 (18 (18 (16 (16 (26 (36 (56 (28 (46 (66 (16 (78 523 8x54624138 8x54624198 524 8x54824316 525 8x54824899 6x54826998 526 8x54824999 527 8x54824999 8x54925998 8x54626999 528 8x54624999 8x54626999 529 ex54824999 536 6x54824999 Polyamide yern, not textured, untwisted or «ith a l«ist not exceeding 22 turns per eetre, of criepable bicoeponent fileaents conaiating of poty(haxaaethylene adipaaida) «ith a copolyaeida, for tha aenufecture of: - knee-length etockinge of subhsadinga 61152811 and 81159338, - «oaen'a etockinge of aubhaadinga 61152818 and 61158391 or - panty hoae (tights) of subhssding 61151198 (s) Vsrn of synthetic textils fibrss solely of sroastic polyaaidea obtsinsd by tha polycondansslion of e-phanylanadiaaine and iaophthalic acid Singla yarn of polyaslsr, aaasuring 55 dacitax and consisting of 36 filsaents or aaaauring 83 dacitax and conaiating of 48 filaments, tha fitsaants having different theraal contraction factors Varn of polytatrsfluoroethylene Vsrn of s copolyssr of glycollic scid with lactic acid, for the sanufsctura of surgical suturas (s) Non-textured filaaant yarn of polyvinyl alcohol Varn wholly of polyglycollic acid Synthatic filaaant yarn, aingla, containing by weight 85X or aora of acrylonitri IB, in the fora of a wick containing 1666 continuous filaaents or sors but not aore than 25888 continuous filaments, of a weight per aetre of 6,12g or aora but not axcaeding 3,75g and of a length of 1 8 8B or aore, for the eenufecture of carbon-fibre yarn (a) Polyethylene filaaant yarn, untwisted, of either 55, 118, 165 or 1768 decitex, for the aanufacture of goods of heading No5687 (a) 531 8x54824999 (85 Synthetic filaaent yarn, single, untwisted, wholly of poly(lhio-l,4-phenylane) 532 6x54841696 533 6x548411 534 8x54641696 535 8x54649696 536 ax546771( 537 8x54677186 ex59939999 538 8x55639918 8x55639998 539 6x55639896 (18 «26 «38 (16 «18 «28 «18 «19 136 (16 Monofilament of polytetraf luoroethylene Monofilament of poly(1,4-dioxanone) Monofilaeent of a copolyaer of 1,3-dioxan-2-one with 1,4-dioxan-2,5-dione, for the aanufacture of surgical sutures (a) Strip of polytetraf luoroethylene, with an extension at break not exceeding 25X Woven fabrics of polyvinyl alcohol fibres, for machine •••iî-bro idery Woven polytetrafluoroethylene-fibre fabric, coated or covered on one side with a copolyaer of tatrafluoroethylene and trif luoroethylene having perf luorinatad alkoxy side-chains andi ig in carboxylic-acid or aulphonic-acid groupa in the poiassiua- or aodiua-aall fora, whether or not coated on the same aide «ith a metallic inorganic coapound tsd, aulticoaponant spun fibres «ith s matrix fibril Ac. structure, consisting of emulsion-polymerized polyvinyl alcohol and polyvinyl chloride Textile fibres of polytetraf luoroethylene if CN coda TABIC Description Rate of autonomous duty (X) 546 0x55838888 6x56813680 541 6x55839898 542 0x55649988 543 8x56631118 8x56631198 8x56631218 8x56831298 0x56638116 0x56639199 ex56839218 8x56839299 544 ex56831288 8x56631398 8x56831499 545 8x56839299 8x56939399 546 ex56839299 8x56639396 551 8x56639499 547 8x59931698 ex59932999 8x59839899 548 6x59678696 (28 (16 (46 «16 «18 «16 (18 (18 (18 (18 (18 (18 (39 (38 (18 (28 (26 (46 (18 (29 (18 (19 (26 (16 549 ex59111986 (16 Polyvinyl alcohol fibres, «hether or not acatalized Fibree «holly of poly(thlo-l,4-phenylene) Cellulose fibre produced by organic aolvant spinning (Lyocall) Polyvinyl alcohol nonaovane, in tha piece or cut into rectenglee: - of a thickneee of 288 eicroeetree or eore but not exceading 288 eicroaatraa and - of e «eight of 26g/e2 or aora but not axcaeding S6g/e2 Non«ovana of aroaatic polyeeide fibres obtained by polycondoneetion of a-phenylenedieeine and ieophthelic ecid, in the piece or cut into rectenglee Non-«ovona conaiating of a eelt-blo«n central loyer of a Iheraoplaalic aloetoeer laainated on eech eide «ith epunbonded fibree of polypropylene Nonwovane of polypropylene coneieting of e eelt-bloan central layer, laeinatad on each aida aith epun-bonded fibree, of a thickneee not axcaeding 558 eicroaatraa and of a «eight not exceeding 88g/e2, in the piace or siaply cut into rectangular ehepe, not iepregneted Acrylic fibre rode, heving a length of not eore then 58ca, for the eenufacture of pen tips (a) Knittad or «oven febrice, coeted or covered on one eide «ith artificial plaetic eeteriel in «hich are eebedded sicrospheres Textile febrice, coeted «ith adhesive in «hich ere eebadded sphsrss of a dieeeter not exceeding 75 eicroaatraa, of a «eight not exceeding 558g/e Needle-punched synthetic-fibre faits on e «oven synthetic-fibre base not conteining polyeeter, coeted or covered on one side «ith polytetrafluoroethylene file, for the eanufacture of filtration producte (e) 558 8x59119896 (18 Varn and etrip of iepregneted polytetrefluoroethylene, «hether or not oiled or grephited 552 63651818 553 6x63659686 ex63859668 ex63659868 554 ex68159999 (18 (91 «93 «16 555 ex69932999 «16 Sacks snd bags, of e kind ueed for the pecking of goods, used, of juts or of other textile beet fibree of heeding No 5363 Sacks and bags, of a kind ueed for the pecking of goods, used, of flex or of sissl Microspheres: - of a diaeoler of leee then 188 aicroaatres, - of a refractiva index of 2,1 or aore but not exceeding 2,4 and - containing by «eight eore then 88X of bariua and titaniua evaluated as bariua oxide end titaniua dioxida Varn of continuoua cereeic fileeente, eech filaaent containing by «aight: - 12X or aora of diboron trioxide, - 26X or leas of eilicon dioxide and - 68X or eore of dielueiniua trioxide 556 0x69839886 ex69691998 557 6x69991268 «19 «48 «28 Berylliue oxide, of e purity by «eight of eore then S9X, in the fore of blenke, bars, blocka or plates Plate, of dialueiniua trioxide end titaniua carbida, of diaensions not axcaading 48x48aa, or of a diaaatar not exceeding 125aa, for tha aanufacture of aagnelic heads (a) l\ CN coda TARIC Deecription Rale of autonoeoue duty (X) 558 8x69891968 «38 558 ax «18 566 0x78866896 «28 8upporte for cetalyata, coneieting of poroua cordiarite or Bulli ta caraaic piecee, of on overall voluae not exceeding 651, heving, per c a2 of tha croaa-ssction, not less then one continuoue chennel «hich aay be open et both ends or stopped ot one end Glass plate, coated on one eide «ith chroaiua and/or «ith a aixlure of diindiue trioxide end tin dioxide, of diasnsions of 328x352ae or eore but not exceeding 326x488ee, and of a thickneee of l,laa (±6,lee), «ith e fletneee devietion not exceeding 25 aicroeetrea, for the eenufecture of liquid crystal diepleye «ith ective eetrix (o) Colour filler, coneieting of o gleaa plete «ith red, blue and graan pixels, having s totel thickness of l. iaa (±6,laa) and exterior dieeneione of 328x352aa or aore but not exceeding 328x486ee, for the aanufactura of liquid cryatal diepleye «ith ective aatrix (o) 561 0x766(18696 «38 files* plete, uncostsd, of dieensions of 328x3S2ss or aore but not exceeding 328x488ee, end of e thickneee of I,lee (±8,lea), «ith a flatness deviation not exceeding 25 eicrosstree, for the eenufecture of liquid cryetel disptsys «ith « d i ve eetrix (e) 562 ex78111898 «18 Glass leneee «ith a etippled front refractor or «ith a front refractor coaposed of prissatic eleeents, «ith an external dieeeter of eore then- 121ee but not axcaeding 125ee 563 8x78111699 564 0x78112868 «28 «16 Parebolic glees rsflactors, «ith an external diaaeter of aore than 121ae but not exceading 125aa 6less envelopee for eonochroea cathode-ray tubes: - of a diagonal scraen-aaaauraaent of 3,8ce or aore but not 565 8x76112868 «48 excaading 51ca and - of a noainal nack-diaaetsr of 13mm, 28mm, 29am or 37mm d a aa faca-plate: - «ith a diagonal aaasuraaent of 366,4mm (±l,5aa) and of disensions of 246,4x315,4ea ( ± 1 , 5 B B ), - «ith a diagonel eeesursBant of 391aa (il,5mm) and of diaansiona of 261,4x326,8ae (±l,5em), - «ith a diagonel eeasursBant of 442aa (±l,5aa) Bnd of disensions of 293,4x369,2ss (il,5mm), - «ith a diagonel eeesursBBnt of 513,5mm (il,6ae) and of disensions of 341,8x446,5ss (il,6ee), - «ith s diagonal aeasuraaent of 544,5ee (ll,6as) and of dieensions of 358x454ae (il,6aa), - «ith a diagonal aaaauraaent of 629,8aa (±3aa) and of disensions of 486,5x519ss (±2ss), - «ith a diagonal aaasurssent of 639,3mm (±3aa) and of diasnsions of 413,6x527mm (±2aa) - «ith a diagonal seesuresenl of 838,2mm (il. Smm) and of dimensions of 549,9x695,6ma (il,5mm), and «ith a raised edge, for the manufacture of colour cathods-ray tubes (s) 566 8x76112886 «58 Glass fscs-plste «ith 8 diagonal aeasurement of 784,1mm (il,5aa) and of dieensions of 387,1x628,8ss (ll,5aa) 567 8x78112888 (88 568 8x79191919 (19 Glaas cone: - «ith e diagonal aaaauraaant of 365,8mm (il,5mm) and of dieensions of 243,2x312,8m« (il,5mm), - «ith a diagonal aeasuraaent of 389,6mm (±l,5aa) and of dieensions of 258,5x324,5mm (il,5mm) or - «ith a diagonal aaaauraaent of 439,9aa (il. See) and of disensions of 298x366,6mm (il,5mm) Varn of 33 lex or a multiple thereof, ±7,5X, obtained froa continuous spun-glass filaaents of a noainal diaaeter of 3,5 sicrosetres or of 4,5 micrometres, in «hich filaaents of a diaaeter of 3 eicroaetrea or aora but not axcaeding 5,2 sicrosetres prsdoainste, other than those treated so as to improve their adhesion to elsstosers u CN code TARIC Description Rata of Butonoaous duty (X) 569 8x78191916 (38 576 8x76191918 (48 572 8x76193268 8x78193918 8x76193996 573 ex78199916 574 ex71841( 575 71861868 576 ex71162699 (18 (18 (18 (11 (18 (18 (18 Varn of 22 tax ±7,5X, obtained froe continuoue apun-glass filaaents of a noainal dieeeter of 5 aieroaetraa, in «hich \ • filaaante of a diaaeter of 4,2 aicroeetree or aore but not exceeding 5,8 aieroaetraa prodoeinete Varn of 33, 34 or 51 tax or e eultiple thereof, x7,5X, obtained froa continuoue epun-gteee fileeente of e noeinel diaaatar of 6 eicroaetree, in «hich filaeente of a dieeeter of 5,1 aicroaetree or aora but not exceeding 6,9 aicroeetree predoainate Non-wovan product of non-textile gleee fibre, for the aanufactura of eir-filtere or of oir-fiItretion producte (a) Non-textile gleae fibree in «hich fibree of e dieoBtar of lass than 3,5 aicroeetree prodoeinete Piazo-alectric quertz, not sat or eountod, in the fore of non-dopad alicee of eynlhetic t-quertz aonocrystsl Silver, in tha fora of powder Disc of eilicon on aepphira 576bis 72825886 Ferro-ailico-chroBiua 577 726293J Ferroniobiui 577bis 8x72829919 «26 Ferro-phosphoruB, conteining by «eight 15X or sors of phosphorus, for tha eenufecture of rafinad phosphoric iron or steel (a) 578 ex728516( «16 Magnétisable iron alloy, in tha fora of granulée, containing by wei ght: - 88X or aore but not aora than 91X of iron and - 4X or less of. cobalt 579 6x73963629 «91 Non-alloy steel prscision tube, «sided end cold finished, of an external diaaeter axcaading 1 6 6 BB and a «all thickness exceeding 2am 581 ex74162188 «18 Sheet or plate of polytatrafluoroathylana, «ith aluainiua oxide or titaniua dioxida as s filler or reinforced «ith glass-fibre fabric, teeineted on both sides «ith copper foil, or sheet of polyieide, lasinatsd on ona aids or on both aides «ith copper foil 582 76828819 Waste of alusiniuB, othar (including factory rsjects) 584 ex761699£ «49 Discs of aluainiua alloy, coated or covered on both sides «ith a nickel-phosphorus Isyer, hsving s total thickness not exceeding 3,62sa 585 6x79656666 «19 586 6x81819996 «19 Plate of an alloy of zinc, ground and poliahad on one surface and coated «ith an apoxide rssin on tha othar aurfaca, of rectanguler or aquara ahapa, of a langth of 366aa or aore but not exceeding 2688aa and of a «idth of 386aa or aora but not exceeding 1686aa, and containing: - 16ag/kg or leas of iron, - 16ag/kg or lass of laod, - 786sg/kg or eore but not mors thsn 988sg/kg of alusiniua and - 566«g/kg or aora but not aora than 886ag/kg of aagnesius, for the manufactura of aanaitiaad printing plates (a) Disc (target) «ith dopoaition aeteriel, of tungatan or Bn alloy containing by «aight 96X of tungatan and 18X of titaniua, - containing 188sicrograaa/kg or less of sodium and - mounted on a copper auppert, for use in the aanufactura of gooda of heading No8542 by sputtering (a) CN coda TABIC Deecription Rata of autonoaoua duty (X) 587 8x81839886 «18 Melded tube eolely of tsntelue, or solely of en alloy of tantelue «ith tungsten contsining by «eight 2,5X or less of tungsten 587bi8 8x81841188 «38 Un«rought aagneeiue, of o purity by «eight of 99. 9SX or eore, in the fora of ingota 588 0x81849888 «16 Ground end poliohed eegneeiue aheete, of diaanaions not exceeding 1588x2688ee, coated on one aida «ith an apoxy resin ineoneitiva to light 589 0x81681618 «18 Titaniua eponga 598 81681686 Haete and ecrep of titaniua 591 0x81888898 «92 Diec (terget) «ith depoeition salarial, of titaniua, - conteining 58aicrograas/kg or less of sodiua and - aounted on a copper eupport, for uee in the eenufecture of goods of heading No8542 by sputtering (e) 592 ex81186811 «18 Antiaony in tha fore of ingota 593 8x81118811 594 ex81121118 0x81121986 «18 «18 (18 Electrolytic eanganaaa of e purity by «sight of 99,7X or aore Berylliue, of a purity by «eight of 84X or eore, in the fore of blocks or bsrs, pistas and sheets 595 8x81128938 «18 Alloy of niobiuo (coluebiua) and titaniua, in the fora of bars 596 82824686 Chein saw bledes and rode 597 0x84189998 598 8x84198995 «91 «18 599 8x84219968 «91 668 8x84219999 ex59119999 (92 (38 681 8x84219999 (93 662 B K 8 4 2 1 9 9 86 (95 Welded cooling sicro-elesents, of an alloy of aluainiua, for tha aenufecture of condensers (a) Iaseraion-tuba (coils) bundles, consisting of sn assembly of plaetic tubas tarainating at each end in s honeycoab-structure (end-fitting) surrounded by s pipe-connector Parts of equipaenl, for the purification of water by reverse ossosis, coneieting of s bundle of hollow fibres of artificial plastic eeteriel «ith paraaabla «alts, eabedded in a block of artificiel pleatic aaterial at one end and passing through a block of artificial plastic material at the other end, «hether or not housed in s cylinder Parte of equipaenl for the purification of water by reverse oaaosis, consisting essentially of plastic-based membranes, supported internally by woven or non-woven textile materials «hich ara «ound round a perforated lube, end er. cUsed in a cylindrical plastic casing of a «all-thickness not exceeding 4aa, «hether or not housed in a cylinder of a «all-thickness of 5aa or aore Components of separators for the separation or purification of gases fros gss aixlures, consisting of s bundle of perseable hollo* fibres enclosed «ithin a container, «hether or not perforated, of en overall length of 3 9 6 BB or aore but not exceading 3788ae and a diaaatar not axcaeding 568aa Parts of aquipaenl for tha filtration of magnetic dispersions, consiating aaaantially of nylon-6 fibres, enclosed in 8 plastic caaing of a diaaeter of 76mm (i2ma) and a length of 528mm (±5aa) 663 ex84399919 ax84399998 (18 (16 Suction-roll shslls, not drilled, in the fors of alloy-steel tubaa, of a length of 5287mm or more and an external diaaatar of 754mm or eore, for use in machinery for making papar or paparboard (a) 664 8x84559866 (18 Helical turn device for cold-rolling aill 8 6 8 6 6 6 8 6 6 6 1. 8 9 9 8 6 8 8 6 Zi CN code TARIC Description Bete of eutonoeous duty (X) 2 ex84716899 (18 3 ex84716899 (28 Input unit (eo-colled "touchpad"), the exterior dieanaiona of •hich do not exceed 56 x 62 aa, capebla of eetrix ecanning and detection, coneieting of 2 loyers of aeasuraaent electrodes, a printed circuit, a capacitive eetrix, 2 integrated circuits, discrete coeponente end e connector, for uea in the aenufecture of products felling «ithin heeding 8471 (e) Pointing device (eo-csllad "trackbell"), coneieting of printed circuit on «hich ere eountad an opticel encoder in the fora of a eonolithic intagratad circuit and a houeing coeprieing a bell and a rateiner ring, for use in the aanufacture of products falling «ithin aubheading 84713868 (e) 4 ex84717651 (16 Drive-unit for rewritable optical phase chenge dieke 5 ex84717851 (26 Drive-unit for aagnato-oplical dieke 6 6x84717851 8x85219688 (38 (91 Drive-unit, coeprieing a printad circuit on «hich ere eounled integrated circuits providing drive and eignel processing functione for reeding opticol CD-ROM discs, not cepable of recording 11 ex84717853 (18 12 ex84717653 (28 13 8x84717853 «38 19 6x84717853 «56 Hard disk drive, capable of parallal deta-lranafar via 1, 4, 5 or 6 channels st, respectively, e rote per eecond of 3,814 aegabytes, 12,65 aagabytss, 15,87 aagabytaa or 18,88 aegebytee, cosprising 8 aagnetic disk_s of the 8 inch type «ith e totel storsgs capscity, unforaattad, not exceeding 1888,2 eogebytee and incorporating s atoraga-aodula-drive_intorfece, for use in the aanufactura of cardiodiagnostic apperotus (s) Hard disk drive of the 8 inch type, cepeble of parallel data-transfer via 1 channel at a rata par eecond of 3,841 aegabytas, coaprising a storsgB-Bodule-driva_interfece and 11 aagnetic disks «ith a total storsgs capacity, unforaattad, not exceeding 2,5 gigabytes, for use in the eenufecture of products fslling «ithin subheading 84714999 or 84715988 (a) Hard diak driva of the 5,25 inch type, capable of external data-transfsr st s rsta par second of 7,5 aagabytaa, having dual channels for siaultcnaoouely reeding end «riting «ith 2 «agnatic heads, comprising a dual port inlarfaca circuit and 11 aagnatic disks «ith s total atorego capecity, unforaattad, of 1986 aagabytaa, for uaa in tha aenufecture of products fslling «ithin subhssding 98221488 (a) Hard disk drive of the 5,25 inch type, cepeble of external data-transfsr st 8 rate per second of 18 aagabytaa or aora but not exceeding 48 aegabytes, coaprising 14 aagnetic disks «ith a total storage capacity, foraatted, of 21 gigabytes or sore but nol axcaeding 26 gigabytes, for use in the eenufacture of sass storage sgstess (a) 15 ex84717859 «18 Floppy-disk storsge uni Is 16 8x84717668 17 6x84717666 «16 «29 Twin rsel driva-unit of tha 8 aa cartridge type, for uaa in the Banufaclura of aagnetic lapa atorage unite (e) Driva-unit, incorporating a recording drue, for uss in ths aanufactura of digital audio tapa atoraga unite (e) 18 8x84717666 «38 Magnetic tape atoraga unit for_cartridgaa 19 8x84719686 «18 Optical reader for reading alphanuaeric dot-eetrix printing characters snd converting thsa into olectricel signala, coaprising s rasd head containing an opticel detector, en amplifier, a focusing lens end two loepe, linked by one or t«o flat cables to a cantral aodula tha diaeneione of «hich do not exceed 288 x 228 mm, coaprising e printed circuit boord on «hich ars mounted s sicroprocsssor, sn isage recognition circuit end sn analogua-to-digital convarlar 32 ex84733616 «15 Processor, conaiating of: - 15 aonolithic integrated circuits, coaprising an arithmetic-logic unit (ALU) of 32 bita, a halfword arithaatic-logic unit (ALU), a half«ord eullipliar, a floating point unit, a fixed point unit, a atoraga control unit, a atorage inlarfaca circuit and 18 atatic randoa-accesa aeaoriaa (S-RAMs) «ith s total storage capscity of 5768 Kbits, - decoupling capacitors and cooling plataa, 2? CN coda TABIC Daacription Rale of autonoaous duty (X) 28 0x84733616 «16 33 8x84733816 «26 34 6x84733818 125 35 8x84733818 136 tha «hole oounted en a eullileyer cereeic aubstrate the exterior diaanaiona of «hich do not exceed 65 x 65 ee, «ith not aore than 824 connectione and bearing: - an identification aarkinq coneieting of or including (one of) tha following coobinetion(e): 1667559 1667626 othar identification aerkinga relating to devices cosplying •ith tha abovaaantionad deecription Procaeeor, conaiating of: - 4 or 8 aonotithic integrated circuits, coaprising 1 or 2 central processing unite (CPUs) eech with e static randoo-eccoss cacha aaaory (8-Coche-IAN) «ith a atorage capacity of 128 Kbits, 1 or 2 floating/fixed point unite and 2 or 4 static randoa-accaaa cache eeeoriee (6-Cache-RAMs) •ith a total atoraga capacity of 1. 5 or 3 Mbits, - decoupling cepecitore, tha whole aounted on a aultileyer csrasic subatrata the exterior diaeneione of which do not exceed 65 x 65 ee, «ith not aora than 736 connections and bearing: - an identification aerkinq consisting of or including (one of) the following coabinstion(s): 48H9586 46*49582 - other identificetion eerkings rslating to devices complying with the eboveaentioned deecription Proceaaor of ECL technology, conaiating of not aora than 336 eonolithic integreted circuite, eech coaprising not sore than 15886 pr*£ran*abla logic orreys, aounted on one or both sides of a au It i pla printed circuit, contained in a housing attached to a cooling plete or encloeed between two cooling plates, the overoll exterior diaanaions of «hich do not exceed 148 x 566 x 584 aa and baering: - an identificetion eerkinq consisting of or including (one of) the following coabination(s): 8818-3835-14862 52-283619 52-283621 - other identification aarkinge ralating to devices cosplying «ith tha aboveeentioned deecription Processor, consisting of: - 12 eonolithic integreted circuits, comprising 2 central processing units (CPUs) «ith sn integer/floating point unit, 2 cache controllers, eeeory Bsnageeent and tag units (CMTUs) and 8 atatic randoe-eccees aaeories (S-RAMs) «ith s total storage capacity of 4 Mbita, - decoupling cepecitore end cooling pistas, the whole aounted on e eultiteyar caraaic aubstrste the exterior diaeneione of which do not excead 84 x 147 ae, «ith not aore than 168 connectione end beoring: - en identificetion eerkinq consisting of or including (one of) the following cosbinstion(s): BT 6626K BT 62361! - other identificetion eerkings rslating to devices cosplying with the eboveeentioned dsscriplion Coaponent foraing tha srithsatic/logic alaaent of a central proceeeing unit (CPU), coaprieing not aore than 9 printed circuit boarde, the diaanaiona of «hich do not exceed 296 x 318 aa, on aech of «hich ere counted not aora than 121 ECL gate arreye or ECL randoe eccass aaaoriee (ECL-RAMs) and coabinations thereof, conteinad in a fraeeaork the diaanaions of which do not exceed 581 x 598 x 611 sa «hich serves as a housing and interconnector for the printed circuit boards, and bearing: - an identificetion aarking consisting of or including (one of) So CN code TARIC Description Rate of autonomous duty (X) 36 8x84733618 «35 38 8x84733816 «58 39 6x84733818 «55 28 6x84733816 «65 41 ex84733618 «78 29 8x84733618 «75 38 ex84733818 «88 tha following c o a b i n a t i o n ( s ): C01B 2675 E 586 C01B 2675 H 566 C01B 2675 H 561 C01B 2675 H 582 C01B 2675 H 563 C01B 2675 H 584 othar identification aarkinga releting to devicee coeplying with the abcvtmenlionad daacription Processing systsa, conaiating of: - not aora than 121 aonolithic integreted circuite not conteined in e housing ( c h i p s ), - s caraaic aubatrate, the «hole encloeod between a aetollic baeeplete and a aetellic plate incorporeting not aora than 121 cooling piatona filled with liquid Asaaably for disc atoraga unita of Uincheeter technology, coaprising s 2- or 4-chsnnal reed/«rilo eonolithic integreted circuit for «agnalic haad signale aounted «ith diecrata components on a flexible printed circuit Flash electrically arasabla, prograaaabla, reed only aaaory (Flesh-E2PR0M)j_ consisting of 2 aonolithic integrated circuits contained in s housing bssring: - sn identification aarkinq conaiating of or including (one o f) the following c o a b i n a t i o n ( a ): 28 F 832SA other identification aarkinga ralating to devicaa coeplying •ith tha abovaaanlionad daacription Microprocessor, in the fora of a aonolithic i n U g r a l ad circuit contained in a housing on «hich ara aounted at least one of the following components: - s decoupling capacitor, - a ventilator «ith 8 cooling eleaent, - a control circuit, in the fora of a aonolithic integrated circuit Microprocessor of C-MOS technology, «ith a processing capacity of 32 bits, coosprising a bus controller and a aeaory controller, in the fora of a aonolithic intagratad circuit, contained in a housing the exterior dimensions of «hich do not exceed 48 x 48 ma, and «ith decoupling capacitors, and beer ing: - an identification aarkinq consisting of or including (one of) the following c o « b i n a t i o n ( s ): 396 Z 59 - other identification markings relating to devicaa coeplying •ith the eboveaentioned daacription Microprocessor aodula, only conaiating of 7 aonolithic integreted circuits consisting of: - B microprocessor unit associmted with s cachs aaaory «ith a storage capacity of 64 Kb i is, - s float ing point uni I, - s sicroprocessor interface unit, - 4 aeaory control unite aaaociatad «ith 4 cacha eeeoriee «ith a total storage capacity of 2 Mbits the «hole conteined in s housing «ith decoupling cspscitors Microprocessor «ith a processing capacity of 32 bits, only consisting of 2 aonolithic integrated circuits contained in a housing bearing: - an identification marking consisting of or including (one o f) the following c o « b i n e t i o n ( s ): 88521EX other identification eerkings relating to devices coaplying •^ CN code TAR1C Description Rale of autonoaous duty (X) 31 6x84733616 (85 «ith tha eboveeentionod daacription Nicroprocrwaor aodule coaprising 8 Bonolilhic integrated circuits coneisvi. -. g of: - s fixed point unit, - e flooting point unit, - on inetruction ceche eeeory unit, - e eeeory control unit, - 4 dete ceche eeeories, the «hole conteined in e houeing «ith decoupling capacitors Ibis 6x84733898 (83 Parte end ecceaaoriaa excepted the following products: - dole etorega aeeeabliee (Haad/Diac/Aaaaablies, - thin file eagnatic hoede 54 ex84733896 (55 55 ex84733896 (66 57 ex84733699 (78 68 ex84734696 «18 61 ex84734899 «85 62 ex84831699 65 ex85611699 «16 «54 67 ex85Bl1699 «59 Data etorege eeeeebly (Haad/Diak/Aaaaably) for herd disk drivée, «ith a date trenefer rote per second of 3,9 or 4,2 eegebytee, coeprieing read/«rit« heode end 9 or 11 aagnetic diacs «ith an axternel diaaeter not exceeding 24,2 ca (9,5 inch) «ith a totel etorege copocity, foraalted, of 2838 or 8514 aagabytaa, tha whole incorporeted in a aingle hermetically saaled houeing Data atorage eeeeebly (Heod/Pi»^/£«. Baably) for hard disk drivae of the 9 inch type, «ith e dote transfer rate per second of 2,77 eegabylee, coapriaing reed/»rite heads and 7 aagnetic discs «ith s totsl storsgs capscity, formatted, of 1216 or 1566 aegabytae, opereting «ith e «upply voltage of 126 V and of 226 V or eore but not exceeding 248 V, the «hole incorporated in a single hsreeticelly seiiUu housing Dsts atorags asaaebly (Haad/Oiec/AeBaably) for hard disk dr ivaa of tha 18,8 inch type, «ith e data transfer rate per second of 3,9 eegebytee, coapriaing 16 read/write heeds end 9 ssgnslic discs «ith s total atoraga capscity, formatted, of 17 gigsbylaa, ths «hols incorporstsd in s single hermetically saalad houaing Thermal printer heada of thick- or thin-film technology, conaiating of a prinlad circuit «ith at least one capacitor containad in a eatat aupport with connector, printer element and haat sink, supplied «ith ths appropriate support and transport roll Theraal printer haad of thin-fila technology, the exterior disansions of «hich do not «xcsed 18 x 98 x 275 mm, conaiating of: - a prinlad circuit on a caraaic aubatrata fitted with aonolithic intagratad circuita and 2886 heater elements, - 8 printed circuit fitted «ith aonolithic integrated circuits, capacitora, resistors snd connactors, - a tharaislor snd - 1 or 2 cooling plates Integrally forgad and roughly shspsd generator and turbine shsfts of s «sight sxcssding 215 tonnes DC sotor, brushlsss, «ith sn sxtsrnsl diaaeter not exceeding 25,4 aa, t rstsd spasd of 2268 (±15 X) or 5429 (±15 X) rpa, a aupply voltaga of 1,5 or 3 V DC stepping aotor, aiIh an angla of step of 1,8' (±6,69"), a holding torqua of 8,156 Na or aora, a coupling flange the axtarior diaanaions of «hich do not exceed 43 x 43 aa, a chuck of a diaaatar of 4 ae (±8,1 a e ), a two-phmsa winding end an output not axcaeding 5 V 72 ex85811899 «73 DC aotor, whathar or not aounted on a baseplate, for U SB in the aanufeclura of producta falling within subheading 84717653 (a) 75 ex85811899 (77 DC aotor, with brushss, with a typical running torque of 6,864 Na (±8,861 N a ), with a coupling flange of a diaaeter of 32 aa (±8,5 aa) and a chuck of a diaaatar of 2 aa (±6,684 a m ), with an internet rotor, a thraa-phaaa winding, a rated speed of 2868 (±16 X) rpa and a supply voltaga of 12 y (±15 X) IL CN coda TARIC Description Rate of autonoeous duty (X) 72bie 8 x 8 5 6 1 1 6 99 76 0 x 8 5 6 2 4 8 98 77 8 x 8 5 6 3 6 8 99 158b i s Bx65641891 78 0 x 8 5 8 4 4 8 99 (78 (19 (31 (16 (18 DC aotor, «hether or not aounted on a bassplsts. for uaa in tha aanufacture of products fslling «ithin subheading 85279891 («) Rotsru convBrter. «ith s farrila cors, hsving coils «ith 2 or 6 windings snd a diaaatar of 8,1 aa, connacled to a flax i b le printed circuit Steeped collector of an electric aotor, having an external diaaeter not axcaeding 16 ee Single desagnetisation coil with not aore than 96 «indinga, with cables and connectors Direct currant to diract currant converter, with an input voltaga rangs of 186 V or aora but not exceeding 396 V, contained in e houeing 79 6 x 8 5 9 4 5 9 98 «16 Inductor with a variable inductance not axcaeding 62 aH 88 8 x 8 5 8 4 5 8 99 «28 Multilayer aonolithic inductors, contained in s housing of thi SMD (Surface aounted device) type tha axtarior dimensions of which do not exceed 1,8 x 3,4 aa, for uaa in tha aanufacture of products falling within subheading 85171188, 85252891 or 85279991 (a) 81 85849611 Ferr i te cores 82 6 x 8 5 6 5 1 1 68 83 8 x 8 5 8 5 9 6 18 «31 «91 85 e x 8 S 8 6 5 6 98 «28 Ferrite magnat having a raaanence of 455 aT (±15 aT) Solenoid with a plunger, operating at a noainal supply voltage of 24 V at a noainal DC of 8,88 A, for use in the manufacture of products fslling «ithin heading No 8517 (a) Unit consisting of not sors than 2 lithium batteries embedded in a socket for integreted circuits (battery-buffered s o c k e t ), «ith not «ore then 32 connections snd incorporating 8 control circui t 93 6x85673891 6x85678691 «29 «16 Rectangular accuaulator, «ith a length not exceeding 67,1 as, a «idth not axcaading 18 ae and a thickness not exceeding 18,6 ae, for use in the aanufacture of rechargeable batteries of portable phones (a) 166 8x85169686 «31 187 ex85175699 ex85178898 «18 «38 168 8x85175699 8x85178699 «26 «48 Dual diode, consisting of s power rectifying diode connected «ith s transforaer protector diode through 8 «ire, «ith 8 peak revers power rete of 2 J or «ore, for use in the aanufactura of products falling within subheading 85165666 (a) Transaitter, capable of converting electrical signals into light pulses, operating at a noainal wavelength of 826 na, coaprising a lighl-aaitting diode (LED), conteined in a plastic housing with 8 connections and bearing: - en identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): HFBR 1412 HFBR 1414 - other identification markings relsting to devices cosplying with the sbovementioned description Receive unit, capable of converting light pulses into electrical signals, operating at a noainal wavelength of 828 na, coapriaing a photodiode and an amplifier, contained in a plastic housing with 8 connections snd bearing: - sn identification aarking consisting of or including (one of) the following combination(s): HFBR 2412 HFBR 2414 HFBR 2416 other identification aarkings relating to devices coeplying with the abovaaentioned description 3S CN code TARIC Daacription Rate of autonomous duty (X) 189 8x85175899 ax85178899 «36 «18 116 8x85175698 8x85178896 (48 (28 113 ex85179611 «61 114 8x85179811 «62 115 ex85179811 «83 Traneailtar, cepeble of converting electricet signals into light puleas, operating at a noainal «avelength of 859 ne, coapriaing a light-aaitting diode (LED), a currant switch, an input buffer end a dietortion/cooponeation circuit, containad ii a houeing bearing: - en identification parking consisting of or including (one of) the following coebinstion(s): DH-231-TA other identificetion Barkings ralating to davicaa complying •ith tha ebovoeentioned deecription Raceiva unit, capable of converting light puisse into slectricel signale, opereting et a noainal «avelength of 858 na, coaprising a photodiode, 2 decision circuits, sn aaplifier and an integretor, containad in a houeing bearing: - an identification aarking coneieting of or including (one of) the following coebinetion(e): DH-231-BA other identificetion earkinga relating to davicaa complying «ith the ebovoeentioned deecription Moduletor/deeoduletor of C-M08 technology (C-M08-Modea), for full duplex dete-trenefer at a rate of 28886 bits per second snd for hslf duplex tronsfsr of iasga telegraphy (facsiaile) at a rata of 14488 bits psr sscond, consisting of 2 or sore eonolithic integreted circuite, et least ona of «hich for digital signsl processing (D8P) snd an othar for analogue functions, aounted on o printed circuit, contsinsd in a housing bearing: - an identificetion eerkinq consisting of or including (one of) ths following cosbinstion(s): RC 192DP RC 192DPL BC 249DP RC 249DPL RC 288DP RC 288DPL - othar identificetion Barkings rslating to davicaa coeplying •ith the ebovoeentioned deecription Hodulator/deaoduletor of C-M08 technology (C N08-Hodea), only for half duplex trsnsfsr of dsts or image telegraphy (facsiaile) at a rete not exceeding 2486 bits per sscond, only consisting of 2 eonolithic integreted circuite, ona of «hich for digital aignat procaeeing (D8P) and the other for analogue functions, aountad on a printed circuit, containad in a housing bearing: - sn identificetion eerkinq consisting of or including (one of) ths following coabination(s): RC 24BKJ - othar identificetion earkinga ralating to davicaa coeplying «ith the eboveeantionad deecription Modulator/daoodulotor of C-M08 tachnology (C-HOS-Hodee), for full duplex dete-trensfar at a rate not axcaading 9688 bits psr sacond, only consisting of 2 aonolithic intagraled circuite, one of «hich for digital aignal processing (DSP) and lha other for enelogua functiona, aountad on a printad circuit, contained in e houeing beering: - an identificetion oerking consisting of or including (one of) ths following cosbinstion(s): (C 2324DPL other identificetion earkinga ralating to davicaa complying •ith lha abovaeentionod daacription 7// CN coda TARIC Description Rata of a u t o n o s o us duty (X) 116 ax85179811 «64 117 8*85179811 (65 111 ex85179811 «66 118 e x 8 5 1 7 9 8 82 «18 119 6 x 8 5 1 7 9 8 82 «28 Modulator/daaodulator of C-M08 tachnotogy ( C - M 0 8 - M o d e e ), only for half duplax tranafar of iaage telagraphy (facaiaile) at a rata not exceeding 9688 bits psr second, only consisting of 2 sonolithic integrated circuita, one of «hich for digital aignal processor-:; (D8P) and tha othar for analogue functiona, aounted on a pri ed circuit, containad in a houaing bearing: - an idantificetion aarking consisting of or including (one o f) the following c o s b i n s t i o n ( s ): R 96DFX B 96EFX R 96MFX other identificetion Barkings ralating to devices coeplying «ith the aboveeentionad description M o d u l a t o r / d e e o d u l e l or of C-N08 tachnotogy ( C - M 0 8 - M o d e a ), for full duplax data-transfar at a rata not axcaading 14488 bite par aecond end for helf duplex tranafar of iaage telegraphy (facsiaile) at a rata not axcaading 14488 bits psr sscond, only consisting of 2 or 3 sonolithic intsgrstsd circuits, 1 or 2 of «hich for digital aignal processing (D8P) snd sn other for analogue functions, sounted on s printed circuit, contained in a houaing bearing: - Bn identification aarking consisting of or including (one of) the following c o m b i n a t i o n ^ ): RC 144ACF RC 144AFT RC 144DPI RC 9323 RC 9624 RC 96DPL RC 96V24 - othar idantification aarkings ralating to devices cosplying «ith ths abovesentioned description Modulator/deaodulator of C-MOS technology ( C - M O S - M o d e a ), for half duplax transfer of iaage telegraphy (facaiaile) at a rate not exceeding 9686 bits psr second, cosprising 8 c o m p r e s s i o n / d e c o m p r e s s i on circuit for voice signets, only consisting of 2 sonolithic integrated circuits, one of which for digital signal processing (DSP) and the other for analogue functions, aounted on a printed circuit, contained in a housing bear ing: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s) : RFX 96V12 other identification aarkings relating to devices cosplying with the aboveaenlioned description Assembly for telephonic apparatus coaprising a microphone, a protecting circuit 8nd a four-way connecting socket, aounted on a printed circuit the dieensions of which do not exceed 22 x 48 me 16 x 16- or 32 x 32-bil différentiel crosspoint switch of gallium arsenide (GsAs) semiconductor matériel, capable of switching at a data rate per aacond of at least 868 Mbits, in the fora of a aonolithic integrated circuit contained in a housing coabined with decoupling capacitors, the whole mounted on e substrate the exterior dimensions of which do not exceed 35 x 35 aa, with not aora then 196 connections Bnd bearing: - an identification aarking consisting of or including (one of) the following c o m b i n e t i o n ( s) : TO 8816 TO 8632 other identification BBrkings relating to devices complying with tha aboveaentioned description 3S CN coda T A ? 1C Description R B IB of autonomous duty (X) 126 ex85179682 «36 122 ex85179882 123 8x85179688 «56 «16 Assembly consisting of a laeer diode opereting at a noainal «avalenglh of 788 na, a photodiode end a lane, containad in a houaing «ith a diaeeter of not eore then 9 ee end e height of not aora than 29 aa, «ith not eore then 3 connectione and bearing: - an idantificetion eerkinq coneieting of or including (one of) the follo«ing c o e b i n a t i o n ( a ): FU-611SLD-N2 LH-7115 - other identificetion aarkinge ralating to devices cosplying «ith the ebovoeentioned deecription Assasbly coapriaing lighl-eaitting diodee (LEDs) Assasbly consisting of a laeer diode opereting et s nominal «svalsngth of 988 na, a photodiode, e thereiator and a cooling plate, conteined in a houeing «ith en opticel fibre cable connection end baaring: - an idantification eerkinq coneieting of or including (ona of) the following c o a b i n a t i o n ( a ): 0LM96476 124 ex85179688 126 ex85182999 «26 «16 - other identification aarkinga ralating to devices cosplying «ith the abovaaantionad daacription Parts, for uaa in tha aanufactura of products falling within subheading 85172169 (a) Loudspeaker having a power of 5 W end an iapadanca of 4 ohm, with a diaaatar not axcaading 58 aa, for uaa in tha manufacture of portabla phones (s) 127 ex85183699 «18 Headphone and aarphona for haaring aids, contained in a housing the exterior diaanaions of which, excluding connecting points, do not exceed S x 6 x 8 as 128 ex85189869 «91 Integrally cold-upaatted steal coraplate, in the fora of a disc on one side providad with a cylinder, for uss in the eenufecture of loudspeakers (s) 129 ex85229691 «91 138 ex85229691 «92 131 ex85229698 «31 Opticel unit consisting of s léser diode with one photodiode, esitting light of a noainal «avelength of 786 na, contained in a housing «ith a diaaeter of not eore than 18 ea and a height of not aora than 9 aa, «ith not aora than 18 connections and beer ing: - an identification aarking consisting of or including (one of) the following cosbination(s): LDGU LT 622 - other identification aarkings ralating to devices cosplying with ths abovaaantionad daacription Electronic aaaaably for a laaar raad-haad of a compact disc player, coapriaing: - a flex i bIs printsd circuit, - a photo-datactor, in lha fors of s aonolithic inlegratad circuit, containad in a houaing, - not aora than 2 connactors, - not aora than 1 tranaielor, - not aora than 3 variable and 4 fixed resistors, - not sors than 5 capacitors, the «hole aountad on a aupport Thin-fila racording and raproducing davica, having al least 9 parallel channele for digital signals and at laast 2 chsnnals for analogue signals, to «hich s non-asgnatic caraaic aubatrate is fixed, tha «hola rounded el one aida, for uaa in the manufactura of aagnatic heads for digilsl sound racording end digilal/analogua sound raproducing apperatus of the cassette-type (a) 1/ CN coda TARIC Daacription Rate of aulonosous duty (X) 132 8x85229698 «32 133 ex85229898 «33 Sound reproducing asaaably, conaiating of a coapact disc aechaniaa, coeprieing en optical raading systaa and 3 DC aolors, for use in the esnufsclura of products fslling «ithin subheading 85272179 (a) Asssebly consisting of s drivar circuit, a tscho-sensor and a bruehleee DC aotor, «ith a typical running torque of 6,8644 Na (±8,681 N e ), e shaft of a diaeatar of 3,523 ae (±8,962 a a ), an axlernel rotor of a diaaeter of 66 aa (±8,3 aa), a three-phase winding, e rated spaed of 2668 (±16 X) rps snd a supply voltage of 14 V (±18 X) 134 ex85229998 «34 Caasette-deck sub-assembly for eound racording and reproducing apparatus, for usa in the aanufactura of téléphona answering aachinas (a) 135 ax85229698 «35 Sound raproducing aaaaably, coapriaing a tape deck aechaniss of the ceeeette typo, coeprieing e DC eotor, for use in the aanufacture of products fslling «ithin hsading 8519 (a) 136 8x85229898 (36 137 ex85229998 (37 138 8x85229998 (38 Roll for eegnatic tapa guiding and «inding, for use in ths ssnufacturs of products fslling «ithin haading No 8521 or 8522 (a) Magnetic head for erasing video tapes, for uaa in lha aanufactura of products falling «ithin haading No 8521 or 8522 (a) Read-heed assembly, coaprising a laser read-head, 2 motors, a flexible printed circuit, the «hols aounted on a plastic support, for use in the eenufecture of products felling «ithin subheading 85199912 or 85199918 (a) 139 8x85231266 «19 Magnetic taps, «ith a thickness not exceeding 16 pa and a •idth of 6,274 (±8,813 aa), on reels, not aounted in a cartridge 146 8x85232619 144 6x85282268 «48 «16 Rigid aagnetic discs, prelubricated, oxide type, with a coercivity of 366 Oe or aore, not aounted in a cartridge Video monitor coaprising: - a flat screen monochrome cathode-ray tube «ith a diagonal aaaauraaent of the screen not exceeding 118 aa and equipped «ith a deflector yoke, end - a printed circuit on «hich are aounted a deflection unit, a video-seplifier and a transformer, tha «hole mounted on 8 chassis, for the aanufacture of video entry-phones, video telephones or surveillance apparatus (a) 152 8x85291676 «18 Caraaic filter package coaprising 2 ceramic filters end 1 caraaic rasonalor for a frequency of 18,7 MHz (±38 kHz), contained in a housing 146 8x85291878 «15 Caraaic filter for a centre frequency of 18,7 MHz, «ith a bandwidth not exceeding 336 kHz at 3 dB and not exceeding 956 kHz at 28 dB, contained in a housing 153 8x85291878 147 8x85291676 154 8x85281878 155 ax85291976 «28 (25 (38 «46 157 8x85291678 «75 Caraaic filters for frequencies of 4,5 MHz or aore but not exceeding 6,6 MHz containad in a housing Caraaic filter for a centre frequency of 456 kHz or aore but not exceeding 478 kHz, with a bandwidth not exceeding 13 kHz st 3 dB, contained in a housing Caraaic filter for a frequency of 458 kHz, with a bandwidth not axcaading 18 kHz at 18 dB, contained in a housing Radio frequency (RF) signsl isolstor for frequencies of 949 MHz or aora but not exceeding 1453 GHz, having an insertion loss nol exceading 6,7 dB, contained in a housing Bandpass filter, excluding surface acoustic wave fillers, for a centra frequency of 485 or 1212 MHz, with an insertion loss not axcaeding 3 dB, contained in a housing bearing: - an identification aarking consisting of or including (one of) tha following coebinetion(s): 816571 819946 3 CN coda TARIC Deacription Rate of autonoaous duty (X) 158 ex85299881 159 8x85299881 «31 «32 168 6x85299681 (34 161 8x85299881 «35 162 ex85299681 «36 other identificetion eerkinge raleting to davicaa coeplying •ith the eboveeenlioned deecription Dual dsasqnatisstion coil «ith not aore then 96 windings, «ith câblas snd connectors Assaably coaprising s lana unit, having a focel length of 3,6 ea, sn intarline charga-couplad iaage eeneor having 281888 photoseneitive cello, end integreted circuite, the «hole mounted on e printad circuit Aaaeably coneieting of e lene unit, heving an edjustabla focel length of S ee or eore but not exceeding 68 aa and coeprieing e Z O OB ancodar, a etepping aotor unit, a zooa aotor unit, on iris sotor unit snd s photo interrupter Video recording end reproducing eeeeabty, coeprieing e tepe deck aachaniaa of the ceoeette type, coeprieing a DC aotor, for usa in the eenufecture of producte felling within hooding 8525 (e) AssBably coneieting of e eonochroee cethodo-ray tube with a diagonel aeeeuroeent of the ecreen of 165 aa or aore but not exceeding 236 ee end e conceve focue lene aounted on e liquid-filled cooling ereeture, for usa in the aanufactura of televiaion projection equipaent (a) 163 ex852S9681 ex85299689 «37 «31 Filter, consisting of 2 piazo-electric cryetele eech with a frequency of 21 MHz or aore but not exceeding 38 MHz end separately aounted on a brackat, with nol aora than 7 connections 165 6x85312636 «16 166 ex85312936 «29 167 ex85312651 «18 168 ex85312851 «26 169 ex85312951 «36 Dot satrix display consisting of a line of 8 cherectere, sach character coapoaad of 35 light-aaitting diodae (LEDs), cosprising alactronic coeponanta for interfece end drive functions, contained in s housing the exterior dieeneions of «hich do not exceed 26 x 43 as, «ith not aora than 28 connections snd bearing: - an identification aarking consisting of or including (one of) tha following c o m b i n a t i o n ^ ): HDSP 2187 HDSP 2111 HDSP 2112 HDSP 2113 PD8P 2116 PDSP 2111 PDSP 2112 PDSP 2113 - other identification aarkings rslating to devices cosplying with the aboveaentioned description Digital displays, conaiating of s printed circuit board of a size not excaading 35 x 99 ae «ith a aingle line of charactara, not less thsn 3 in nusbsr, coaprising light-aaitting diodes (LEDs) side froe galliua-baaad aaaiconductor aaterisls mounted thereon. Each character is cospossd of up to 8 segsents «ith or «ithout a decisal point end the line of cheractara has a protective cover of plastic Liquid crystal colour displsy (LCD) «ith sn active aatrix and 488 x 646 or 668 x 868 pixels, consisting of a layer of liquid crystsls between t«o glass sheets or plstaa, coaprising electronic coaponents providing drive end/or control functions, for use in the aanufacture of products falling «ithin eubheading 84713686 (a) Liquid crystal colour display (LCD) «ith an active eetrix and Liquid crystal colour diaplay (LCD) «ith an active eet 768 x 1824 or 988 x 1152 pixels, consisting of e loyer • r of liquid crystsls between t«o glasa ehaete or pletee, •• coapriaing alactronic coaponanta providing drive and/o far control functiona Liquid crystal colour diaplay (LCD) «ith an active eetrix end 1824 x 1286 pixels, conaiating of a layer of liquid crystsls between two glasa ahaels or platée, aounted on a printed circuit coaprising alactronic coaponents providing drive and/or control functiona J g CN code TARIC Deecription Rate of autonomous duty (X) ,78 6x85312859 «28 Liquid crystal aonochroee display (LCD) with an active matrix and 988 x 1152 pixels, consisting of s layer of liquid cryatals bslwssn two glsss shseta or plates, coaprising electronic coapononla providing drive and/or control functions 171 8x85312889 «18 Liquid crystal display (LCD) «ith a passive astrix, comprising electronic coeponente providing drive and/or control functions 172 8x85318896 « 16 Direct current plessa display 173 ax85318899 174 6x85318899 «28 «38 265b ax85318899 «48 984 8x85318699 ex85425888 175 6x85319616 (59 (86 «91 177 8x85322288 «95 Transducer, capeble of producing a sound lavel of 85 or 87 dB at e frequency of 2788 or 3288 Hz Vecuue fluoreecent diaplay, consisting of s memory refresh circuit, o cherecter generator, a DC/DC convarter and electronic coeponente providing drive and/or control functions Indicator laap, conaiating of 2 light-emitting diodes sade from a l u a i n i u e - g e l l i u a - a r s s n ic (AlGsAs) or gallium-phosphor (GaP) saeiconductor Batarial, having a rectangular base, contained in a houaing of the 8MD (Surface aounted device) lype and having a lane Indicator laap, conaiating of 4 light-emitting diodes made froa ailicon-carbid (8iC) sssiconductor aaterial, operating al a noainal wavelength of 481, 568 or 636 na, contained in a housing Backlight unit, coapriaing a laapholder with a cathode tube, a raflaction ahaat and a diffuse substrate, the exterior diaeneione of which do not exceed 7 x 258 x 366 aa, for use in tha manufacture of liquid crystal disptsys (LCD) (a) Alueiniue electrolytic capacitors, with a fixed noainal capacity not axcaading 478 |iF and an operating voltage not axcaading 58 V, oparating within a teeperature range of -46*C to • 85 * C, having a diaaeter not exceeding 8 mm and a he i qth not axcaading 6 aa 178 ex85322268 «96 Aluainiua elatrolytic capacitors, with a fixed nominal capacity of 2,2 pF and an operating voltage of 385 V, operating within a teaparatura range of -48"C to + 85"C 179 ex85322266 «97 Aluainiua elatrolytic capacitor, with a fixed nominal capacity not axcaeding 3,3 F and an nominal operating voltage of 2,5 or 5,5 V, operating « i thin a temperature range of -25'C to + 85 * C 176 ex85322286 «98 189 ex85322366 «91 Aluainiua electrolytic capacitors, with a nominal capacity of 8,1 «F or aore but not exceeding 1668 pF and an operating voltaga of 4 V or aora but not exceeding 58 V, operating within a laaperelura ranga of -48*C to +185'C, contained in a housing of tha 8MD (Surface mounted device) type Ona layer caraaic dielectric capacitor, «ith a fixed noainal capacity of 1 pF or aora but not exceeding 1 fiF and an nominal oparating voltaga not axceading 56 V, operating within a teaparatura ranga of -25'C to +85*C 181 ex85322499 «31 Multilayar caraaic dielectric capacitor, contained in B housing of tha 8MD (Surface aounted device) type the exterior dieensions of which do not exceed 8,55 x 6,55 x 1,65 ea 183 8x85322866 «31 Capacitor with 2 dialactric materials, one in ceraeic, the other in apoxy resin, having an initial capacitance of 569 pF (±36 X) and e dissipation factor not exceeding 2,5 X 184 6x85329868 185 ex85331886 186 6x85332186 «32 «92 «31 Anode or cothode, for use in the sanufecture of slusiniue slaclrolytic cspacilors (a) Fixed carbon coapoaition resistor, with an operating voltage not axcaading 359 V and a dissipation rate not exceeding 6,5 W Fixed thick file reaiator, with a resistance of 19 Ohm or aore but not axcaading 2,2 MOhm, a dissipation rate not axcaading 8,863 W, contained in a housing of the SND (Surface aountad d a v i c a) type the exterior dieensions of which do not axcaad 8,4 x 8,55 x 1,85 aa J? CN coda TARIC Description Rata of a u l o n o a o us duty (X) 187 8x85346811 8x85346819 188 8x85346611 189 8x85346811 198 8x85348619 «91 «91 (92 (93 (92 191 ax85346819 «94 192 ax85346619 «95 193 8x85348819 «96 194 6x85349698 «93 Single-face prinlad circuit tha diaanaions of «hich do not exceed 38 x 38 as, for tha aanufactura of producta falling •ithin Chapter 81 (a) Multiple printed circuit, coneieting of 24 leyere, including 5 layers «ith buried viss of bisaalaiBida triazine, the extsrior dieensions of «hich do not axeesd 64 x 65 ce Multiple prinlad circuit, «ith connactore, and in an aluainiua casing Single-face printed circuite, each «ith not eore then 268 conductiva leada, on a plastic tsps «ith sprocket holee on both edges end hsving s «idth of not sors thsn 48 ee end e thickneee of not sors thsn 6,26 sa Printed circuit, conaiating of 29 or 31 conductor eleeente fixed on a flexible plastic fils, for usa in tha eenufecture of magnetic haada for digital aound racording end digital/analogue sound reproducing apparatus of tha csssstls-typs (s) Printed circuit, consisting of conductor slsBsnts fixad on a flexible plastic fila, «ith a trace «idth of 8,995 aa or aora but not axcaading 3,5 aa and a traca pitch of 9,995 aa or aora but not exceading 9,365 aa, for usa in tha aanufaclura of Electronic calculating aschinaa (a) Printed circuit on an aluainiua oxide aupport, only «ith gold plated conductor elements of thick fila tachnology, for uaa in the aanufacture of products falling «ithin subheading 85424656 (a) Printed circuit on one or both sides of s ceramic substrate, consisting of conductor elements, contscts snd resistors, incorporating connections isolated in vitrified layers, the dimensions of which do not exceed 45 x 45 as, «ith not sore than 558 connections 195 cx85364119 ex85364196 ex85364966 198 6x85365811 199 ex85365898 «91 «91 «91 «31 «93 Thermal relays contained in a hermetically sealed glass cartridge not exceeding 35 aa in length excluding «ires, «ith a maximum leakage rate of 1 9 ~e c m3 Ha/eac at ona bar in the temperature range 8 to 168 'C, to ba incorporatad into compressors for refrigerating equipment (a) Switch of the printed circuit aount type, oparating at a força of 4,9 N (±8,9 N ), contained in a housing Switch unit for coaxial cable, coapriaing 3 electromagnetic switches, with a switching lise not axcaading 58 as snd an actuating currant not exceeding 566 aA at a voltaga of 12 V 266 ex85365899 «94 261 ex85369885 282 ex85369685 284 8x8536. 59t- tS1 i\,'2 «9! 265 ex85461111 «91 266 ex85481113 «91 A i r bag sensor, capable of aainlaining a awitching currant of 29 A Bfter 3 make/break at a voltage of 26 V, with an insulation resistance of 136 Moha or aore al a continuoua voltaga of 566 V and a contact closed resistance not axcaading 156 moha at a current of 2 A (±8,5 A) for a period of 2 as (±1 a a ), contained in s housing tha exterior disensions of «hich do not exceed 17 x 22 x 32 aa " U s l o a e r ic connectors, consisting of conductor eleeente coated • «h gold and fixed on a subatrate of rubbar ffstallic steeped fraae with connections Pari J( en eteclrothereal fuaa, conaiating of a tin coatad copper wire attached to a cylindrical casing, ths exterior dimensions of which do not exceed 5 x 48 aa CV cathode-ray tube with a slot aask, equippad «ith n U i u on guns placed side by side (in-line technology) and «ilh a diagonal «assurément of the screen of 12 cs or sors but not exceeding 26 cm Colour cathode-ray tube «ith a slit sask, having a distance between stripes of the same colour of less thsn 8,42 ss snd a diagonal measurement of the screen of 49 cs, for use in ths manufacture of professional video monitors including security and medical monitor applications (a) CN code TABIC Deecription Rate of autonomous duty (X) 267 ex85461191 «31 Colour cethode-rey tuba with e screen «idth/heighl ratio of 16/9 end a diagonel eoeeureeent of the ecreen of 39,8 ce (±6,3 ce) 289 ex85491286 (81 Flot ecreen aonochroae cathode-rey tube «ith a diagonal esaeureaant of tha screen of 186 ae or eore but not exceeding 155 ee end en enode voltege of 5 kV or eore but not exceeding 32 kV 218 ex85481266 (82 Nonochroee cethode-rsy tube «ith e diagonal seasurseent of the screen of 258 ea or aore but not exceeding 328 sa and an «node voltage of 18 kV or eore but not axcaading 22 kV 268 8x85461268 «83 211 6x85462696 «91 Monechroee cathode-rey tube, with e diagonal aeasuraaent of the screen of 156 ee or eore but not exceeding 182 aa, a neck dieeeter of leee then 38 ee end en enode voltage of 25 kV or aora but not exceeding 32 kV Photoeultiplier coneieting of e photocethode tube «ith 8 dynodee, for light of e «evelenglh of 169 ne or aore but not exceeding 936 na, of a dieeeter not exceading 14 aa and a height not exceeding 84 ee 212 ex85464668 ex85466888 213 ex85464666 ex85486968 (31 (31 (32 (32 Colour cethode-rey tube «ith e dot aaak, equipped «ith 3 elaclron guns placed eide by eide (in-line technology) or 1 gun «ith 3 rays, «ith s diagonal aeasuraaent of tha ecreen of aore than 72 ca snd a dislsncs of laes than 8,5 aa between dots of the B B BB colour Colour cathode-rey tube «ith a dot «ask, equipped «ith 3 slsclron guns plscsd sida by aida (in-line technology) or 1 gun •ith 3 raye, having a diagonal BBaauraaant of the screen not exceeding 72 ce 214 ex85464668 (33 215 ex85464668 (34 216 ex85465866 ex85466698 (31 (33 217 ex85485868 ex85486888 218 ex85468911 (32 (34 (91 Colour cethode-rey tube «ith e slit sask, having a distance bat«ssn stripss of ths B S BB colour of loss than 8,35 aa and a diagonal aeesùrooent of tha screen not exceeding 53 ca Colour cathode-ray tube «ith a slit mask, hsving 8 distance between etripee of tha same colour of less than 6,39 ma and a diagonal aaaauraaent of the screen of 33 ca or more but not axceading 38 ca Fist acraan aonochroae cathode-ray tuba, «ith a diagonal aeesureeant of tha acraan of 142 aa or aora but not exceeding 198 aa, a lueinaacence of 388 lueen or sors but not exceeding 2669 lusBn, a resolution of 8,86 aa or aora but not exceeding 8,1 B B, phosphor types PI or P22 or P53 or PS5 or PS6, an anode voltaga of aore then 34 kV, a focus voltage of aore than 7 kV and a csthoda current of 3 BA or «ore Monochrome cathoda-ray tube «ith a diagonal measurement of the ecreen of 176 ea or aorB but not axcaading 528 aa and a neck diaaatar not exceeding 21 aa Diaplaya in tha fora of a tuba conaiating of a glass housing aountad on a board tha dimensions of which do not exceed 366 x 356 aa axcluding leads. The tube contains one or aore rows of charactara or lines arranged in rows, Bach character or line conaiating of fluorescent or phosphorescent elements. These slsssnls ars aounted on a aatalliaad base which is covered with fluoreacant subatancaa or phosphorescent salts which give off light «hen boebarded «ith electrons 219 ex85489198 (91 Daflactor yoke for cathode-ray tubaa «ith an operating frequency of 31258 Hz or aora but not axcaeding 64686 Hz, incorporating a quadripolar aagnat 228 6x85469196 (82 221 ex85469199 «93 8lit aaak, conaiating of vartical slits «ith s distance between slits of 9,74 se (±9,12 sa) and a diagonal diaension of either 61,5 ca (±6,5 ca) or 71 ca (±6,5 ca) or 79,5 ca (±8,5 ce) Elaclron gun for tha production of aonochroma cathode-ray tubes •ith a diagonal BSBSursssnl of tha screen of 7,6 cm or more but not sxcBsding 38,5 cs (a) '// CN coda TARIC Daacription Rate of aulonoaouB duly (X) 222 8x9546911 «94 Deflector yoka for colour cathoda-ray lubes, «ith an oparating frequency of 15625 or 31259 Hz, coaprising two 2-pols ring «agnate, two 4-pole ring ssgnsts snd two 6-pols ring sBgnete 223 ex85499199 (96 Asaaably for cathoda-ray tubae «ith 2 or aore but not aore thon 6 coils, a platic aupport and a aatal fixing ring, for the adjustaenl of diaplay aharpnaaa and/or convergence 224 8x85489188 225 ex85489999 (98 (91 229 8x85411891 (18 238 8x85411891 (28 231 e x 8 5 4 H 6 91 «36 Fraaa of aolybdanua chroaa stsal, for uae in the aanufactura of cathoda-ray lubee (a) Anode, cethoda or output part, or an asaaably coapriaing theee coaponanta (eegnatron core lube), for the aanufactura of eegnetrona of subheading 85487188 (a) Silicon power rectifier diodes of plsnsr technology, «ith a rscovBry lise of laas thsn 189 ns, a aaxiaua racurring voltege of 289 V, end average foraard currant of 2,5 A or aore, containad in a houaing ravaraa Silicon power rectifier diode, «ith e reverse peak voltage not exceading 1568 V and an avaraga output currant of 5 A or eore but not exceeding 8 A, containad in a housing bearing: - an identification aarking consisting of or including (one of) the following coabination(s): PG151S15 other identification aarkings relating to devices coeplying with tha abovaaantionad dascription Zener diode for overvoltage suppression, having a voltage of 24 V or aore but not exceeding 38 V and with a dissipation rata of 5 W, contained in a housing bearing: - an identification aarking consisting of or including (ona of) the following coabination(s): 2181DE other identification aarkings relating to devices cosplying with the abovBBBntioned description 232 ex85411691 «48 Voltage rectifier diode, with a reverse peak voltage of 6, 8, 18, 12 or 14 kV, an average foraard current of 5 BA and a reverse current of 2 |iA, contained in a housing 227 6x85411691 «58 236 8x85411699 237 8x85411699 «38 «48 238 8x85412196 «18 Power rectifier diode, with a reverse peak voltage not exceeding 66 V and a forward current not exceeding 3,2 A, contained in a housing bearing: - en identification aarking consisting of or including (one of) the following combination(s): 210066 EC28QS66 other identification aarkings relating to devices coeplying with the abovemenlioned dascription Currant regulative diode, providing a stabilized current levai not exceeding 18 aA al a voltaga of 18 V Diode, with a foraard currant not axceading 1 A, a resistance not exceeding 1,5 Oha, a total capacitance not axcaading 6,3 pF and a breakdown voltaga of 268 V or aora High electron eobilily tranaiator (HEMT), for fraquancisa of 2 GHz- or aora but not exceeding 28 GHz, with a dissipation rata not axcaeding 188 aW, contained in a housing «ith a diaaeter not exceeding 3 aa, with not aora than 4 connections YL- CN code T A R IC Deecription Rate of aulonoaous duty (X) 239 8x85412198 '28 248 6x85412916 «16 242 8x85412926 «16 243 6x85412928 «15 244 ex85412928 «28 245 ex85412928 «25 246 ex85412929 «36 Field-affect traneietor (PET) for frequenciee of 2 GHz or eore but not exceeding 16 6Hz, aith a dieeipetion rete not exceeding 225 eU, contained in a houeing with e dieeeter not exceeding 3 aa, with not eore then 4 connectione Wafer, not yet cut into chipe, coneieting of field-effect traneietore ( F E T B) of the P-chennet type, having a drain-lo-eourca braekdown-voltege of -38 V or eore, operating «ith a continuoua drein-current not exceeding 18 A, a drein-to-Bource reaistsnca not exceeding 8,2 ohe, end «ith e dieeipetion rete not exceeding 66 U, for use in the eenufsctura of goods of subheeding 85424888 (e) Field-effect trensistor (PET), for frequenciee of 2 GHz or eore but not exceeding 18 GHz, aith a diasipstion rete not exceeding 8,5 W, conteined in a houaing bearing: - en identification aarkinq consisting of or including (one of) the following coebinstion(s): ATF 44181 ATP 46181 - other identification aarkinga ralating to devices coeplying with the eboveeentienod doBcription Pield-effact treneietor (FET) of the N-channel typa, having s drain-to-source breokdown-voltege of 458 V or eore, operating with a continuoue drain-currant not axcaading 18 A, a drain-to-source reeietence not axcaading 8,4 oha, and «ith a diaaipation rata not axcaeding 88 V, contained in a housing bearing: - an idantificetion aarking coneieting of or including (one of) the following coBbination(s): 28K1916 - othar identification eerkings ralating to devices cosplying •ith the abovaaantionad daacription Field-effect Irensislor (FET) of tha P-chBnnal typa, having a drain-lo-sourca br«akdo«n-voltaga of -266 V, opereting «ith a continuoua drain-currant not axcaading -1,8 A, a drain-to-source resistance not axcaading 3 oha, and «ith a diaaipation rale not axcaeding 28 V, containad in a houaing bearing: - an identification aarkinq conaiating of or including (one of) the following coabination(«): IRF 9618 - other identification aarkings relating to devices coaplying •ith tha abovaaantionad daacription Field-effect transistor (FET) of ths N-channsl typa, having a drain-to-aourca braakdo«n-voltaga of 586 V or aora, opereting with a continuous drsin currant not axcaeding 1 A, a drain-to-source raaistanca not sxcsading 5 Oha and with a diasipstion rsla not axcaading 46 «", containad in a housing basr ing: - sn identification aarking conaiating of or including (ona of) the following coabination(«): MTD1N58E - othar idantificetion earkinga relating lo davicaa coaplying aith ths sbovsBsntionsd dsseriplion Field-effect transistor (FET) of ths N-chsnnel type, having a drain-to-source braakdown-voltage of 686 V or eora, operating with a continuoue drein-currant not exceading 6,2 A, a drain-lo-scurcs reoistsncs not sxcasding 1,2 oha, and with a diaaipation rate not exceading 125 «\ containad in a housing baaring: - an identification aarking conaiating of or including (one of) CN coda TABIC Daacription Rata of autonomous duty (X) 247 0x85412828 «35 248 8x85412928 «48 249 ax85412928 (56 258 8x85412926 «66 251 8x85412928 «78 tha following c o a b i n a t i o n ( a ): IRFBC46 othar identification aarkings relating to devicaa coaplying with the eboveoentioned description Field-effect transistor (FET) of the N-chennel type, having a d r a i n - t o - e o u r ce braekdown-voltege of 55 V or eore, opereting with e d r a i n - t o - e o u r ce current of 8,9 A or aora but not exceeding 3 A, e drein-to-eource rssistsncs not axcaading 1,5 oha, and aith a diasipstion rsla not axcaeding 38 W, containad in a houeing bearing: - an idantification aarking consisting of or including (one of) the following c o a b i n a t i o n ( a ): 16838EDA - othar idantification aarkinga ralating to devices coaplying «ith the abovaaantionad description Field-effect trsnsistor (FET) of the P-channal type, having a drain-to-sourcs braskdoan-voltsge of -28, -38. -68 or -188 V, oparsting «ith a continuoua drain-current oq -9,6 A or aore but not exceeding 5,3 A, e drsin-to-BOurcs rssistsnce not exceeding 8,28 oha, and «ith a diaaipation rats not exceeding 125 », containad in a housing bearing: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): IRF 9548 IRFU 9824 HMSF3P83HD NDS 9438 other identification aarkings relating to devices coaplying with the abovaaentioned description Field-affect trsnsistor (FET) of the N-chennel type, heving a drain-to-sourcs breakdown-voltBge of 36 V or aore, operating with a continuous drain-current not exceeding 25 ft, a drain-to-source resistance not exceeding 8,65 oha, snd with a diasipstion rate not axcaeding 56 W, conteined in a housing bearing: - an identification aarkinq consisting of or including (one of) the following c o m b i n a t i o n ( s ): MNSF5N83HD ND6 683AL NDP 683AL SMD36N83 SMU38N63 othrr identification aarkings relating to devices coaplying with the abovaaantionad description Fiald-sffact transistor (FET) of the N-channal type, having a drain-to-source breakdown-voltage 66 V or aore, operating with a continuoua drain-currant not exceeding 8,5 A, a drain-to-source resistance not exceeding 8,3 ohs, and with a dissipation rate not axcaeding 38 V, contained in a housing bearing: - sn identification aarking consisting of or including (one of) tha following c o a b i n a t i o n ( s ): IRFD 814 1RFR 618 IRFR 814 IRFU 814 IRLR 614 IRLU 814 other identification aarkings relating to devices coaplying with the aboveaentioned description Field-affect trenaistor (FET) of the N-chennel type, heving a d r a i n - l o - s o u r ce breakdown-voltage of 68 V or aore, operating with a continuoua drain current not exceeding 35 A, 8 d r a i n - t o - s o u r ca resistance not exceeding 8,1 Oha and with a diasipstion rate not exceeding 125 V, conteined in 15 housing- bear ing: - an identification marking consisting of or including (one of) VY ON C 0(jB TARIC Description Rate of Butonoaous duty (X) 252 8x85412926 «75 253 ex85412929 «88 255 ex85412938 «16 257 ex85412986 HB the following cosbinstion(s): 5181FK (IBCZ24) SI 8 1M - other idantificetion aarkinge raleting to devices cosplying •ith the ebovaaentioned deecription Field-effect transietor (FET) of the P-chsnnsl type, having a drein-to-eourca braakdown-voltaga of -258 V, opereting «ith a continuoue drain-currant not axcaading -6 A, a drain-to-source resistance not axcaading 1 oha, and «ith a dissipstion rate not exceeding 38 N, containad in a housing boering: - en identification aarking coneieting of or including (one of) the following coebinetion(e): 28J387 - other identificetion eerkinge releting to devicee cosplying •ith ths aboveeontioned daacription Field-effect treneietor (FET) of the P-chennel type, hsving a drain-to-sourcs braokdovn-voltoge of -38 V or aora, operating •ith a continuoue drein-curront not exceeding 16 A, e drain-to-eource reeistsnes not exceeding 6,2 ohe, snd «ith s dissipation rate not exceeding 68 W, conteined in a houaing bear ing: - an identification aarking coneieting of or including (ona of) the following coebinetion(s): RFD16P83L BF018P63L8M RFP16P83L other identification aarkinga releting to devices coeplying «ith tha aboveeflntioned dascription Insulsalad gate bipolar tranaiator (I6BT), «ith a collector-eeitter current not exceading 26 A, an eeitter-cotlector breekdo«n-voll«gB of 328 V or aora. a single power supplu of +5 V snd «ith s dissipstion rste not sxceading 158 W, contained in a houaing baaring: - 8n identification aarking conaiating of or including (one of) the following coabination(s): 5461GM other identification aarkinga relating to devicaa coaplying aith the ebovaaantionad description Trsnsistor with s po««r of 158 « or sors at a voltage of 168 V or «ore and «ith a cut-off frequency of 28 MHz or aore, containad in e houeing the exterior dieaneions of «hich do not excBBd 22 x 37 B B, «ith not aore than 3 connactiona and baaring: - an idantificetion parking coneieting of or including (ona of) the following coabination(e): 2 8A 1176 2 SA 1215 2 8A 1484 2 8C 2774 2 8C 2921 2 8C 3858 - other idantification eerkings releting to devices cosplying «ith tha aboveeentionod deecription 258 ex85412986 «26 Transistor «ith thoresl overload protaction, having a collector-aailtar opereting voltege not exceeding 42 V, contained in a houeing «ith not eore then 4 connections uc CN code TABIC Deecription Rats of autonomous duly (X) 259 ex85412888 «36 Trsnsistor «ith an output pover not exceeding 38 U at a voltage of 12,5 V, conteined in e housing «ith not sore thon 8 connectione 268 0x85412988 (48 261 8x85412986 (56 Transistor, having a dissipstion rate not excseding 258 U, a colloctor-aaitier br«akdo«n voltage of 89 V or eora and a peak collector current not axcsading 46 A, containad in a housing beering: - en identificetion parking consisting of or including (one of) tha following coebination(s): 28C3675 28C3781 28C3886A 28C3997 28C41S2 2SC4288 C3852A - othar idantificetion esrkings relating to devicas coaplying «ith tha aboveaantionad dascription Field-effect treneistor (FET) of galliua arssnida (GaAs) eeeiconductor eeteriel, operating at a fraquancy of 2 GHz or aore but not exceeding 18 GHz, contained in a houaing bearing: - an identificetion aarkinq consisting of or including (ona of) tha following combinaticn(s): NE76884 NE8864 othar identification aarkings relating to devices coaplying •ith the ebovaaentioned description 263 8x85413698 «18 Oiac, «ith a braakovar voltaga of 77 V or aora but not axcaading 278 V and a slate current not exceeding 1 A, contained in s housing 264 8x85413698 267 8x85414619 268 8x85414619 269 6x85414618 278 6x85414619 266 6x85414819 «28 «19 «26 «38 «48 «59 Disc, «ith s breakover voltage of 65 V or aora and a capacitance of 266 pF, contained in a housing Lighl-aeitting diode, operating at a noainal «avelength of 567 na or aora but not exceeding 718 na, in the fors of a aonolithic integrated circuit not contained in a housing ( c h i p ), for tha aanufactura of optocouplers or of products falling «ithin subheading 85171186 or 85252691 (a) Light-eaitting diode, having a square bese «ith en edge length not axcaeding 8,2 aa, having a lens Light-eaitting diode of Transparent Substrete (TS) technology, aada froa alufliniua-gatliua-arsBnid ( A I G B A S) semiconductor aaterial, having a luainous intensity of 1,4 cendela or aore at 28 aA Light-aaitting diode (LED), contained in a housing of the SMD (Surface aounted device) type Light-Baitting diode, aade froa si licon-carbid (SiC) SBBJconductor aetarial, operating at a noainal «avelength of 481 272 8x85414893 «91 Photocouple, coaprising s phototransistor «ith a collector currant not axcaading 28 aA and a collector-aaittar breakdown voltage of 38 V or aore, and a light-eaitting diode «ith a rsvarsB currant not exceeding 166 |iA at 8 reverse voltage of 5 V, contained in a housing 275 8x85416666 «91 Piszo-eleclric crystal oscillsting st s frequency of 32768 Hz, «ith el least one of tha following characteristics: 2_conlsined in a housing of the SMD (Surface aounted device) 276 8x85416668 «92 2_contained in a cylindrical housing of a length not exceeding 8,2 ae and a diaaeter not exceeding 3,2 •« Polarised caraaic piezo-alectric crystal oscillating in a fraquancy ranga of 588 kHz or mors but not exceeding 12566 kHz, contained in a housing tha axterior dieensions of «hich do not Bxcssd 14 x 15 ss, «ith not «ore then 3 connections '/f CN code T A R IC Description Rste of autonaaous duty (X) 277 8x85416688 *94 Piezo-alactric cryatal, sxcluding surfece s-ouslic «ava filters, oscillating at centre frequency of 458 kHz or eore but not exceading 1843 MHz 278 6x85416668 «95 Caraaic filter snd resonstor alasante for frequenciee not exceeding 35 MHz, eede of polerieed piezocereeic, only equipped «ith electrodes or electrode pettsrns 8 8 279 6x85419666 ex85429986 281 8x85421361 «18 (26 «61 282 ex85421381 «62 283 ex854213Gl «63 Housing or csrasic substrats, with connectione Vafer, not yet cut into chipa, consisting only of microcontrollers or eicrocoeputere of C-H08 technology, with e processing capacity of 8 bite, providing eervo control functione, coaprising a reed only aeeory, non-prograaaabla (ROM) • ith a atorage capacity of 128 Kbiis, 2 randoa-eccess assoriss (RAMs) «ith a total storsga capacity of 3 Kbits and a tiesr unit, for use in ths aanufacturs of goods of subheoding 85421363 conteined in a housing bssring: - sn identification ssrkinq consisting of or including (one of) the fo(lo«ing coabination(a): PD 78134 - other identification aarkinga ralating to davicaa coaplying «ith the abovaaantionad dascription (a) Wafer, not yet cut into chipa, consisting only of microcontrollers or Bicrocoaputars of C-MOS technology, «ith a processing capacity of 16 bits, coapriaing a rssd only seeory, non-programmable (ROM) «ith a storege cepscity of 48 Kbits, s read only memory, non-prograsasble (BON) «ith a atoraga capacity of 16 Kbits and a randos-sccsss ssaory (BAM) «ith a atorage capacity of 4 Kbits, for uaa in tha aanufacture of goods of subheading 85421365 contained in a houaing beering: - an identification aarking consisting of or including (one of) the fol low i nq coabination(s): 77C25 - other identification ssrkings relating to devices cosplying with the abovementioned dascription (a) Wafer, not yet cut into chipa, conaiating only of microcontrollers or microcompulsrs of C-MOS or N-M08 (including H-MOS) technology, with s procsssing cspscity of 16 bits, comprising a read only sssory, non-prograsasble (ROM) with a storage capacity of 518 x 13 bite, a raad only aaaory, non-programmable (ROM) «ith a atorage capacity of 512 x 23 bits and a random-access eeeory (BAM) «ith s storsgs cspscity of 2 Kbits, for use in the eanufactura of goods of subheading 85421365 contained in a houaing bearing: - an identification aarkinq consisting of or including (one of) the following coabination(a): 7728 77C28 - other identification aarkinga ralating to davicaa coaplying with the abovementioned description (s) 284a ex85421361 «84 Wafer, not yet cut into chips, on tu, for uss in lha aanufaclure of gooda of aubhasding 85421322 to 85421361, 85421382 or 85421384 (a) 286 6x85421381 «06 Wafer, not yet cut into chipa, coneialing only of aicrocontrollers or microcompulers with s procsssing cspscity of 16 bits, comprising s rssd only aeaory, non-prograaaabla (ROM) or a programmable, non-araaable, reed only meeory (PROM) or an UV erasable, programmable, raad only aaaory (EPROM) with a storage capacity not exceeding 256 Kbita and ona or aore randoa-access memories (RANa) with a total etorege capacity not exceeding 12 Kbits, for usa in the «enufmcture of goods of subheading 85421365 conteined in a houaing baaring: - an identification marking conaiating of or including (one of) w. CN coda TABIC Description Rata of autonoaous duty (X) 287 6x85421381 «87 289 6x85421381 «89 tha following coabination(a): 78C11 78C12 78C14 78C18 78CP14 8XC196KT other identificetion Barkings ralating to devicas coaplying •ith the ebovoeentioned deecription (a) Uafar, not yet cut into chipe, consisting only of display controllers end character genarotors (DCCG), for liquid-crystal dol-satrix display systsae, for use in tha aanufactura of goods of aubhaading 85421378 contained in a houaing baaring: - an identification eerkinq consisting of or including (one of) the following cosbinstion(s): 7228 7229 - other identificetion Barkings ralating to devices cosplying with the ebovoeentioned deecription (s) Wafer, not yet cut into chips, consisting only of aicrocontrollers or sicrocoapulfirs of C-MOS technology, «ith a processing capecity of 8 bits, comprising s dsts memory «ith a storsga capacity of 4 Kbits or aore but not exceeding 8 Kbits, a prograaaa aaaory «ith a atorage cepacity of 64 Kbits or «ore but not axcaading 488 Kbits and either a buffar aeaory or a display randoB accesa eeeory (RAM) «ith a atoraga capacity not exceeding 512 bits, for usa in tha aanufacture of goods of subheading 85421363 contsinad in a housing bearing: - sn identification aarkinq consisting of or including (one of? the following cosbinstion(s): 78811 78812 78813 78614 78842 78843 78644 78845 78852 78853 78654 78855 78856 78658 78862 78863 78664 other identification aarkings ralating to devices coaplying «ith tha abovaaantionad description (a) 288 ex85421361 (12 Nsfar, not yat cut into chipa, consisting only of control or drive circui ts, for use in the ssnufsclurs of liquid crystal davicaa (LCD) eodules (a) 293 ex85421385 (62 294 ex8S42138S (83 296 6x85421365 «85 Driver circuit for liquid crystal displays (LCDs) of C-MOS technology, in the fore of a aonolithic integrated circuit not contained in a houaing (aicrochip), for use in the aanufacture of: - liquid crystal displays (LCDs), or - assemblies destined for LCDs (a) Bus control circuit of C-MOS technology, in the fors of s sonolithic intsgralsd circuit not contained in a housing (chip), for usa in the aanufactura of goods of subheeding 85421378 contained in e housing bearing: - sn identification aarking consisting of or including (one of) the following coabination(s): 86H5685 2782654 52G7385 52G7386 83F48S7 63F4873 63F4874 83F4178 63F4378 69G1795 81889651 - other identification eark i ngs'relating to devices coaplying «ith the abovaaantionad daacription (a) Meaory control circuit of C-MOS technology, in the fore of a aonolithic integreted circuit not containad in a housing (chip), for uaa in tha BBnufaclura of goods of subheading 85421378 containad in a houaing baaring: - an identification aarking consisting of or including (one of) tha following coabination(s): 32G7468 58G6878 51G8186 8186387 n CN code TAPIC Description Bete of aulonoaous duty (X) 32G7567 5668181 8184891 8188885 297 ex85421365 (66 298 8x85421365 «67 299 ex85421365 «68 361 ex85421365 «19 382 6x85421365 «11 other identification eerkings relating to devicee coeplying with the abovaaantionad deecription (e) Triple digitel-to-enelogue video converter with 3 rendoa-accaee BBBoriss (RAMDACa) of C-M08 technology, in the fora of a eonolithic integreted circuit not contained in a houaing ( c h i p ), for uss in the eenufecture of goode of aubhasding 85421399 containad in a houeing beoring: - en identification eerkinq consisting of or including (one of) the following cosbinstion(s): RG6525 RGB528 BGB536 (8187135) R6B561 (8186887) - other identificstion eerkinge releting to davicae coaplying «ith lha aboveeontionod deecription (a) Bus interface and control circuit of C-N08 technology, in the fore of a aonolithic inlagrated circuit not conteined in e housing (chip), for use in the aanufacture of goode of subheading 85421378 contained in a houeing bearing: - an identificetion aarking consisting of or including (one of) the following coabination(s): 2782454 4266928 42G8929 S1G8187 61G2276 7193184 8184678 8184893 8184895 8184188 other identification aarkinga relating to devices cosplying with ths aboveaenlioned description (s) Data/address buffer circuit of C-M08 technology, in the fore of a sonolithic integrated circuit not contained in a houeing (chip), for uss in ths ssnufscture of goods of subhssding 85421399 contained in a houaing bearing: - Bn identification Barking consisting of or including (ona of) the following cosbination(s): 2782653 8198684 - other identification aarkings releting to devicee coeplying with the Bboveeentionsd dascription (a) Control circuit of C-MOS technology, providing local eree network end aeaory control, in the fore of a aonolithic integrated circuit not contained in a housing (chip), for use in the aanufacture of goods of subhssding 85421378 contained in a housing baaring: - an identification aarking consisting of or including (one of) the following coabination(s): 85F7196 other identification aarkings rslating to davicas coeplying with tha aboveaentioned daacription (a) Interface and control circuit of C-M08 technology, providing scan control and clock control, in the fore of o eonolithic integrated circuit not containad in a houeing (chip), for uea in the aanufactura of goods of subheading 85421378 contsinsd in s housing baaring: - an identification aarking consisting of or including (one of) the following coabination(s): 86G8155 other identification aarkings releting to davicaa coaplying with the abovaaantionad daacription (a) //Q CN code TABIC Deecription Rate of autonomous duly (X) 363 8x85421385 (12 384 ex85421365 (13 284d 6x85421385 (15 366 ex85421311 (81 387 ex85421311 «62 368 6x85421311 «63 Dote or ieaga coapraaaion and/or decoepression circuit of C-M08 technology, in the fora of a aonolithic integreted circuit not contoinod in a houeing (chip), for U BB in the eanufacture of goode of eubhaading 85421372 or 85421399 conteined in a houeing beering: - on identification aarkinq consisting of or including (one of) tha following coebinstion(s): 26H3888 3H6414 MPEGCD1 NPEGSD1 HPEGSE1 - othar identificetion esrkings relating to devices cosplying with tha aboveaantionod deecription (s) Graphic control circuit of C-M08 technology, in the fora of a eonolithic integrated circuit not conteined in a housing (chip), for usa in the eenufecture of goods of subhsading 85421378 contained in a houaing beering: - on identificetion eerkinq coneieting of or including (one of) the following coebinetion(a): 5168286 8862562 88G2734 - other identificetion Barkings r a U t i ng to devices coaplying with the ebovoeentioned deecription (a) Monolithic integrated circuit not contained in a housing (chip), onlu for usa in the aanufacture of goods of subheading 85421322 to 85421361. 85421382 or 85421384 (a) Dynaaic randoe-ecceeB aaaory of N-NOS (including H-MOS) tachnotogy (N/H-M08 D-BAN) «ith a atorage capacity of 64 Kbits, in the fore of e eonolithic integrated circuit contained in a housing beering: - en identificetion ssrkinq consisting of or including (one of) the following coebinetion(s): KM 4164 HN 4264 TM8 4164 TMS 4416 - othar identificetion earkinga relating to devices coeplying with the eboveeantionad dascription Dynaeic randoB-eccees eeeory of N-MOS (including H-MOS) tachnotogy (N/H-M08 D-BAN), with 8 storsge capacity of 256 Kbits and an ecceee tiae not exceeding 158 na, in the fore of a aonolithic intagratad circuit containad in a housing beering: - an idantification parking consisting of or including (one of) tha following coabination(s): HB 58562 HM 56256 HN 56464 KM 41256 KM 41257 MSM 4256 N5H 4464 MB 81256 MB 81464 N8M 4256 N6M 4464 PD 41254 PD 41256 PD 41464 TNM 41256 TMM 41464 TMS 4256 TMS 4464 - other identificetion aarkinga ralating to devices coeplying •ith the eboveaentioned deecription Dyneeic rendoe-eccaae sasory of C-MOS tachnotogy (C-MOS D-RAM), «ith a etorege capacity of 256 Kbits, in the fora of a eonolithic integreted circuit contained in a housing baaring: - an identificetion aarking consisting of or including (one of) the following coabination(s): 53 C 256 S3 C 258 53 C 464 53 C 466 HM 65256 KB 81 C 258 M6 81 C 466 P 51 C 256 P 51 C 259 TC 51832 - other identificetion esrkings rslating to devices coeplying with the abovaaantioned dascription CN code TkïlC D e s c r i p t i on Rate of a u t o n o a o us duty (X) 369 8x85421311 *64 318 8x85421311 «65 311 8x85421311 «66 312 ex85421311 «67 313 8x85421311 «68 Dual port dynaaic randoa-acceaa aeaory ( D - R A M ), «ith date r e g i s t e rs snd B aarial raad output c o n t r o l, «ith a atorege c a p a c i ty of 256 Kbits, in the fore of a aonolithic integreted circuit containad in a houeing bearing: - an i d e n;i f i c a t i on aarkinq consisting of or including (ona o f) the foi. owing c o s b i n a t i o n t s ): M5M 4 C 264 MB 81461 PD 41264 TMS 4461 - other identification aarkings rslating to devices cosplying with ths a b o v a a a n t i o n ad dascription Dual or tripla port dynaaic randoa-accesa aaaory ( D - R A M ), with data registers and a aarial read output c o n t r o l, with a a t o r e ge capacity axcaading 256 Kbit but not axcaading 1 Mbit, in the fora of a aonolithic intagrstad circuit containad in a houaing beer ing: - an identification sarkinq consisting of or including (one o f) the following c o m b i n a t i o n ^ ): M5M 442256 MB 81 C 4251 MSM S4C864 MT 42 C 4256 MT 43 C 4257 MT 43 C 4258 MT 43 C 8128 TC 524256 TC 524257 TC 528126 TC 528128 TMS 44 C 251 - other identificetion markings relating to devices cosplying with tha a b o v e e e n t i o n ad description Dynaaic r a n d o s - s c c e ss aeaory of C-MOS technology (C-MOS D - R A M ), with a storage capacity of 64 K x 16 bit and an access tiaa not exceeding 168 ne, in the fora of a aonolithic integrated circuit contained in a houaing bearing: - an identification aarking conaiating of or including (ona of) the following c o m b i n a t i o n ( s ): E i c 6 1 1 1 6 6A TC511664BFT - other identificetion aarkings releting to devices coaplying with the e b o v e a e n t i o n ed description P s e u d o - s l e l ic randoa-accass aaaory of C-MOS technology (C-MOS P S - R A M ), with a storage capacity of 4 Mbits, coaprising s tising putsa generator and a refresh control circuit, in tha fora of a a o n o l i t h ic integrated circuit contained in a housing baaring: - en identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): HM 6 5 8 5 12 HM 65V8512 LHPV127N TC 51V8512 - other identification aarkings relating to devices coaplying with the a b o v e a e n t i o n ed description These devices are for the eanufacture of portable c o a p u t e r s, capable of opereting without an external source of power (a) Dynaaic r a n d o m - a c c e ss aeaory of C-MOS technology (C-MOS D - R A M ), with a storage capacity exceeding 1 Mbit but not aore than 4 Mbits snd an access tiee not exceeding 35 ns, coaprising ona or aore static random-access cache memories ( S - C a c h a - R A M s ), in the form of a aonolithic integrated circuit conteined in a houaing b e a r i n g: - an identification aarking consisting of or including (ona o f) the following c o a b i n a t i o n ( s ): DM 2268 DM 2282 DM 2283 DM 2212 DM 2213 DM 2233 other identification aarkings relating to devices coaplying with the a b o v e a e n t i o n ed description <rl CN code TAR1C Description Rate of autonomous duty (X) 314 8x85421311 (89 315 6x85421311 (16 305a ex85421311 «12 317 ex85421313 «81 365b ex85421313 «63 318 ex85421315 «82 Dynaaic randoa-acceee aaaory of C-M08 technology (C-N08 D-RAM), with a atoraga capacity of 2 Mbits end en eccass time not exceeding 68 ne, in the fora of a aonolithic integratad circuit containad in a houeing bearing: - an identification aarkinq coneieting of or including (one of) the following coabinetion(e): V53C8258 - othar identification aarkinga releting to devices cosplying with tha abovaaantionad daacription Dynaaic rendoa-accaee aaaory of C-MOS technology (C-M08 D-RAM), with a atorage capacity of 512 K x 8 bite end en access ties not exceeding 108 na, oparating with a auppty voltaga of 3,3 V (±8,3 V ), in tha fora of a aonolithic integratad circuit containad in a houaing baaring: - an identification aarkinq coneieting of or including (one of) the following coabination(a): HM51U4886 (74G1367) (7866821) - other identificetion eerkings rslating to devices coaplying with tha abovaeentioned daacription Synchronous dynsaic randoa-eccess aamory of C-MOS technology (C-N08 aynchronous D-RAM), «ith a atoraga capacity of 4 Mbits, opereting «ith o eupply voltaga of 3,3 V (±8,3 V ), in the fora of a aonolithic integreted circuit contained in a housing baaring: - an identificetion aarkinq consisting of or including (one of) the following coabination(s): MB 81141626 - othar identificetion earkinga relating to devices coaplying with the ebovoeentioned deecription Dynaaic rendoe-ecceea aaaory of C-MOS technology (C-MOS D-RAM), •ith a atoraga capacity of 256 K x 18 bits and an access time not exceeding 88 ne, in the fors of s aonolithic integrated circuit contained in e houeing bearing: - en identificetion parking consisting of or including (one of) the following cosbinstion(s): PD 424288 - other identificetion earkinga rslating to devices coeplying with the ebovoeentioned deecription Synchronous dynseic rsndos-sccsss aeaory of C-MOS technology (C-N08 aynchronoua D-RAM), with a atoraga capscity of 8 Mbits, opereting with e eupply voltege of 3,3 V (±8,3 V ), in the form of e eonolithic intsgrslsd circuit contsinsd in s housing bssring: - an identificetion eerkinq conyisting of or including (one of) the following coabination(a): MB 81183226 - othar idantificetion eerkings rslating to devices cosptying with tha aboveaantioned deecription Sunchronoue dynaaic rsndoa-access aaaory of C-MOS technology (C-N08 aynchronous D-RAM), with s storsga capacity of 64 Mbits, opersting with e eupply voltaga of 3,3 V (±6,3 V ), in tha fore of e eonolithic integratad circuit contained in a houaing beering: - en identificetion aarking consisting of or including (ona of) the following coabination(s): r^ CN coda TARIC Description Rata of autcnoaous duty (X) 388bi, 391 85421353 85421425 85421949 85421361 85421442 85421962 394 sx85421363 «61 395 ex85421363 «82 396 ex85421363 «83 MB 81164848 - othar identification aarkings rslating to devices cosplying •ith the abovBaantioned daacription Other aeaories Microcontroller or eicrocoeputer aith a procasaing capacity not axcaeding 4 bits Microcontroller or aicrocoaputar of N-M08 (including H-MOS) technology, «ith s processing capacity of 8 bits, having peripheral interface functions, cosprising s randos-accBSS aeaory (RAM) «ith a storsgs cspscity not exceeding 2 Kbits, a read only aaaory, non-prograaaablB (BOM), a progreaaable, non-erasable, raad only aaaory (PROM) or s UV srsssbls, programmable, raad only eeeory (EPROM) «ith a atorage capacity of 16 Kbits, in tha fora of a aonolithic integrated circuit conteined in a housing bearing: - an identification aarking consisting of or including (one of) the following coabination(s): 8642 8742 other identification aarkings relating to devices coaplying with the aboveaentioned description Microcontroller or aicrocoaputar of N-NOS (including H-MOS) technology, «ilh a processing cspscity of 6 bits, cosprising a data memory in the fora of a static randoa access sesoru (S-RAM) and s progresse sesoru, in the fore of s Bonolilhic integrated circuit contained in a housing bearing: - an identification aarkinq consisting of or including (one of) the following coabination(s): MC 68785 MC 6865 - other identification aarkings relating to devices cosplying «ith the aboveaentionad daacription Microcontroller or Bicrocoaputer of C-MOS technology, «ith a processing cspscity of 8 bits, having a register-to-register architecture, coaprising a static random-access sesory (S-RAM) «ith 8 storage capacity of not sore than 12 Kbits snd st least a rssd only aeaory, non-prograaaable (ROM) or a programmable, non-arasablB, raad only aeaory (PROM) or an UV-arasable, progrsmmeble, read only aaaory (EPROM) or an electrically erasable, prograaaable, raad only aaaory (E PROM), «ith a storage capacity of not aore than 256 Kbits, in the fora of a aonolithic integrated circuit contained in a housing bearing: - an identification aarkinq consisting of or including (one of) the following coabination(s): 376C618 378C832 378C856 378C852 378C856 378C858 376C158 378C156 376C258 376C2S6 376C318 378C332 378C358 378C352 378C356 378C358 378C732 378C756 376C758 378C818 37BC858 374C636 73C41 73C42 73C8S 73C88 73C95 73C161 MC 68HC85P1 MC 68HC85P8 other identification aarkings relating to devices coaplying with the aboveaentioned description A3 CN code TARIC Description Rata of autonomous duty (X) 397 ex85421363 (84 398 ex85421363 (65 399 ex85421363 «66 460 ex85421363 «67 401 ex85421363 «08 Microcontroller or aicrocoaputar of C-M08 technology, with e processing cepecity of I bits, for text data decoding and display, coaprieing a raad only eeeory, non-prograaaeble (BOM) •ith a etorege capacity of I Kbits, e reed only aaaory, non-prograeeebte (BOM) with 128 cherecter fonte and a rBndoa-accaea aeaory (BAN) with a etorege capacity not exceeding 2384 bite, in tha fora of a aonolithic integrated circuit conteined in a housing baaring: - on identificetion aarkinq coneieting of or including (one of) the following coabinetion(e): CF 72387 - other identificetion aarkings releting to devices coeplying •ith the aboveeantioned daacription Microcontroller or aicrocoeputer of C-H08 technology, with e proceeeing capacity of I bits, providing vertical deflection functione for a cathoda-roy tuba, coeprieing 2 arithaetic-logic unite (ALUe), 4 road only aaaoriee, non-prograaeabla (BOMe) «ith s total storege capacity of 11,7 Kbits, 2 rendoa-acceea sesories (RAMs) «ilh o totel etorege cepecity of 1 Kbit, on analogua-to-digitel converter end 2 digitel-to-enelogue convertore, in the fora of a aonolithic integreted circuit containsd in a houaing beering: - 8n identificetion eerking consisting of or including (one of) the following cosbinstion(s): CXD 2618 - other idantification aarkings raleting to devicee coeplying «ith the eboveeentioned daacription Hicrocontrollsr or aicrocoeputer of C-N08 technology, «ith e procsssing cspscity of 8 bits, providing kayboard control functione, coeprieing o reed only eeeory, non-progroeasblB (ROM) •ith a storsge cepecity of 2 Kbits, rsndoe-occeee eeeorias (RAMs) «ith a total storege cepecity of 2 Kbits, e real-tise clock, addrsss ragistere and input/output buffere, in the fore of a aonolithic integrated circuit conteined in e houaing beer ing: - en identification aarking consisting of or including (one of) the following cosbinstion(s): 82C113 - othar identificetion eorkinge releting to devices coeplying •ilh the ebovoeentioned deecription Microcontroller or eicrocoaputar of C-N08 tachnotogy, «ith a proceeeing cepecity of 8 bite, providing roeote control functione, coaprieing e rati «ilh s slorags capacity not exceeding 128 Kbits snd a rsndoa-sccBSB aeaory (BAH) with a atorege cepecity not exceading 4 Kbita, in tha fora of a aonolithic intergratad circuit contained in e houeing beering: - an identificetion eerkinq coneieting of or including (ona of) only eeeory, non-progrsssabla (ROM) the following coabination(e): MN 187164 PCA 84C122 PCA 84C222 PCA 84C422 PCA 84C822 - other idantification eorkinge releting to devices cosplying •ith the ebovoeentioned deecription Microcontroller or eicrocoaputer of C-H08 technology, «ith a procsssing cspacity of 8 bits, providing voice aessaga atorage, coapriaing a reed only eeeory, non-prograaaabla (BOH) «ith a storage capacity of 128 Kbite, on UV-eroesblB, progrBBaable, reed only aeaory (EPBOH) interfoce circuit, e rendoo-ecceaa aeaory (BAM) interfoce circuit end e coeaunication interface circuit, in lha fora of a aonolithic inlagratad circuit si CN code TABIC Deecription Rate of a u t o n o a o us duty (X) 462 8 x 8 5 4 2 1 3 63 464 e x 8 5 4 2 1 3 63 «11 465 e x 8 5 4 2 1 3 63 «12 496 8 x 8 5 4 2 1 3 63 «13 containad in a housing baaring: - an idantification aarkinq consisting of or including (ona o f) tha following c o s b i n s t i o n ( s ): D6365 other idantification aarkings relating to devices cosplying «ith the eboveeBntionsd description Microcontroller or eicrocoBputsr of C-M08 technology, «ith e proceeeing cepecity of 8 bits, providing c o s s u n i c s t i on end control functions in locel operating networks ( L O N s ), c o a p r i s i ng three 8-bit control processing units ( C P U s ), s ststic randoB-sccBss aaaory (8-RAM) «ith a storsga cepecity not exceeding 16 Kbits snd an alactricslly araaable, p r o g r o e e e b l e, raad only aeaory ( E2P R 0 H) «ith s storsga capacity of 4 Kbita, in tha fora of a aonolithic intagratad circuit contained in a houaing baaring: - an idantification Barking consisting of or including (one o f) the following c o a b i n a t i o n ( a ): MC 143128 MC 143158 other identification aarkings relating to devices coaplying with the abovaaentioned deecription Microcontroller or aicrocoepuler of C-MOS technology, with a processing capscity of 8 bits, cosprising a randoa-accass seaory (RAM) with a storage capacity of 2 or 8 Kbita, an e l e c t r i c a l ly araaable, programmable, raad only memory (E PROM) with a atoraga capacity of 4 Kbita and an 8-channel a n a l o g u e - t o - d i g i t al converter, in tha fora of a aonolithic integrated circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) the following c o e b i n a t i o n ( s ): MC 68HC1ÎA1 MC 68HC11F SC 415111FU SC 415112FU SC 415616FU SC 865666FN TMP 68HC11A1 other identification aarkings relating to devices coaplying with the aboveaentioned description Microcontroller or aicrocoepuler of C-MOS technology, with a processing cspscity of 8 bits, cosprising s 16-bit digital signsl processor, a randoa-accass aeeory (RAM) with 8 atorage capacity of 4 Kbits or aora but not exceeding 16 Kbita and having the function of progreaae aeaory, 2 r a n d o a - B C C B BS sesoriee (RAMs) with e total storage capacity of 2 Kbita or aore but not exceeding 8 Kbits and 256 registers, in the fora of a aonolithic intergrated circuit contained in a housing beering: - an identificetion aarking consisting of or including (one of) the following c o e b i n e t i o n ( s ): Z 86294 Z 86295 Z 86C95 - other identification aarkinga relating to devices coaplying with the abovaaentioned daacription Microcontroller or aicrocoeputer of C-MOS technology, with a processing capacity of 8 bits, providing floppy disc storage unit or keyboard control functions, coapriaing an 8-bit configuration ragister, a randoe-access aeaory (RAM) aith a storsgs capacity of 16 Kbits snd having tha function of prograaaa aeaory, e randoe-access aeaory (RAM) with a storage capacity of 2 Kbits and a real-time clock, in the fora of a aonolithic integrated circuit contained in a housing b e a r i n g: - an identification aarking consisting of-or including (one of) the following c o m b i n a t i o n ( s ): PC 87323VF PC 87911 CN coda TARIC Description Rats of autonomous duty (X) 467 ex85421363 «14 468 ex85421363 «15 409 ex85421363 «16 418 ex85421363 «1? other identificetion eorkinge releting to devicee coaplying •ith tha abovBBBntionad deecription Microcontroller or aicrocoaputar of C-H08 technology, «ilh a processing capacity of 8 bite, coaprieing S deto eeeoriee «ith a total atorege cepecity not exceeding 168512 bits, a prograaaa aaaory «ith a storsga cepecity of 21 Kbit, e keyboerd controller, a video eynchronizetion controller end 1 or 2 universal aeynchronoue recoivor/treneeiIter (UABTe), in the fora of a aonolithic integreted circuit conteined in e housing bearing: - an identification eerking consisting of or including (ona of) the following cosbinstion(s): VV 27885 - other identification Barkings roteting to devicee coaplying «ith tha abovsasnlioned deecription Microcontroller or eicrocoeputer of C-N08 technology, «ith s processing cspscity of 8 bite, coeprieing e dele eeeory, a progrsssa aeaory snd a display control or drive circuit, in the fora of a aonolithic intargratad circuit containad in a housing baaring: - ap identification aarking conaiating of or including (one of) the following coabination(a): 83C751 83C7S2 87C756 87C7S1 87C752 CXP 82316 CXP 82328 CXP 85228 CXP 85232 CXP 85348 CXP 85452 CXP 85468 M 37588N5 M 37566N8 H 3817 H 38283E4 H 38283H2 H 38287E8 H 38287M8 N 3825 MB 89898 PD 75316 TMP 87CC26F TMP 87CH28F TMP 87CK78AF other identification aarkings rslating to devices coeplying aith the aboveesntionad dascription Microcontroller or aicrocoaputar of C-N08 tachnotogy, with a proceeeing capacity of 8 bits, coaprising s dats aaaory with a storage cepacity not axcaading 9 Kbita, a prograaaa aeaory aith a atorage capacity not axcaading 256 Kbita, a serial synchronous coaaunication intarfaca conaiating of an 8-bit serial shift register with serisl data input, aarisl dsta output and serial shift clock, and in tha fora of a eonolithic intergrated circuit contained in a houaing baaring: - an identification aarking consisting of or including (one of) the following coabination(s): COP 828 COP 848 COP 886C COP 881C COP 884CF COP 888CF COP 888CG COP 888EG KB 89145 MB 89152 MB 89P657A MB 89W147 other identification aarkinga ralating to davicaa coaplying aith the aboveaantionad dascription Microcontrollar or aicrocoapulsr of C-M08-tochnology, «ith a p "ces6ing capacity of 8 bita, coaprising s rssd only aasory, non-prograaaablB (BON) «ith a atoraga capacity of 16,5 Kbita and a - Tidoa-eccess aaaory (BAN) «ith a storsgs cspscity of 1 Kbit, in ths fors of s sonolithic inlagrstsd circuit containsd in a housing baaring: - an iriBntification aarking conaiating of or including (one of). _ * following coabination(a): 76832KC - other identification aarkinga ralating to devices coeplying with the aboveaantionad description CN code TABIC Deecription Rate of autonoaous duty (X) 411 ex85421363 (18 413 ex85421363 (28 414 8x85421363 (21 415 8x85421365 «61 Microcontroller or aicrocoeputer of C-M08 or N-N08 (including H-H08) technology, «ith o proceeeing cepecity of 8 bits, coeprieing ona or aore dele eeeoriee «ith a total storage cepecity not exceeding 1_2 Kbita snd s progrssa sssory «ith s storage cepecity of 32 Kbite or eore but not exceeding 488_ Kbite, in tha fora of o eonolithic integreted circuit contained in a houeing beering: - en identificetion esrking consisting of or including (one of) tha following cosbinstion(s): 5A41 5B11 78C75T 7742 77C82 88C152 88C51 88C52 83C855 83C564 83C51 83L51 8751 87C655 87C584 87C51 87C52 87CS4 87C58 87LS1 Ae 79C412 AT 88C51 C 1886 C 2998 C 3999 C 46 CXD 88724 CXP 86524 L 39 N 37458E8 M 37458M8 N 38663N6 H 38863E8 H 38867M8 H 3812 N58743 H58747 H59958 H58859 MC 143129 MC 143158 MC68HC65i8 HC68HC11A8 HC68HC785ÎJ HN 1871215 PCA 84C646 PCA 84C848 PCA 84C841 PD 78814 PD 78658 PD 78664 PD 78134 TMP 87PM76 TMP 81P642 - other identificetion esrkings rslating to devices cosplying •ith the abovsaanlionad daacription Hicrocontrollar or sicrocoBputsr of C-MOS technology, «ith a proceeeing cepacity of 8 bits, cosprising a read only aeaory, non-prograaaebla (RON) «ith a storage capacity of 256, 326 or 384 Kbits snd a randoa-access sssory (RAM) «ilh s storage capacity of 18496, 11968, 26736 or 21766 bits, in the fors of s sonolithic integrated circuit contained in a housing bearing: - an identification aarkinq consisting of or including (one of) the following coabination(s): CXP 87132 CXP 87148 CXP 87248 CXP 87248 MN 1883228 MN 1884826 - other identification aarkings relating to devices cosplying «ith tha «bovassntionsd description Hicrocontrollar or aicrocoaputar of C-N08 technology, «ith a procaaaing capacity of 8 bits, coaprising a randoa-access aeaory (RAH) «ith a storsgs cspscity not Exceeding 16 Kbits, a read only BBBory, non-prograemable (ROM) or a programmable, non-arasable, raad only aaaory (PROM) or an UV erasable, prograaaabla, raad only aeaory (EPROM), with a atorage capacity not exceeding 384 Kbits, sn alactrically erasable prograaaable, read only aaaory (E PROM) «ith a storage capacity not axcaading 6 Kbits snd sn 8-chsnnel analogue-to-digital convarter, in the fore of a aonolithic integreted circuit containad in a houaing bearing: - an idantification Barking consisting of or including (one of) ths following cosbinstion(s): MC 68HC11 MC 68HC711 - olhsr identificetion Barkings ralating to devices cosplying •ith the ebovessntionsd description Microcontroller or aicrocoaputar of C-MOS technology, aith s proceeeing cepecity of 16 bits, capable of aodulBtor/deaodulalor (aodaa) signet processing, cosprising s dsts memory «ith a storsgs cepecity 4 Kbits snd a prograaaa aeaory «ith a storage capacity of 256 Kbita, in lha fora of B aonolithic integrated circuit containad in a housing bearing: - an idantification aarking consisting of or including (one of) the following combination(s): 8C 11666 8C 11877 SC 11888 J? CN code TARIC DsBcriplion Rate of aulonoaous duty (X) 416 ex85421365 «82 417 8x85421365 (63 418 8x85421365 «64 419 ex85421365 «85 421 ex85421365 «97 other identification aarkings rslating to devicee coeplying with the sbovBBBntionad deecription Microcontroller or eicrocoeputer of C-H08 technology, with e proceeeing cepacity of 16 bite, coaprieing a data aaaory with e storage cepacity of 32 Kbite, one or eore prograaaa aaaoriee with e totel etorege cepacity not exceeding 248 Kbite end o 14-bit externol bue, in the fore of e eonolithic integreted circuit conteined in e houeing beering: - en identificetion eerkinq coneieting of or including (one of) the following coabination(s): AD8P 2171 A08P 2178 - other idantification aarkings rslating to devicee coeplying «ith the ebovoeentioned deocription Hicrocontrollar or aicrocoeputer of C-H08 technology, «ith e procBssing capacity of 16 bits, coaprising en arilhaetic-togic shifter, s dsts saaory «ith s storsga capacity of 8 Kbita snd a prograaaa aaaory «ith a storsga capacity of 96 Kbits, in the fore of e aonolithic integrated circuit conlsinsd in s housing bearing: - sn identification eerkinq consisting of or including (one of) the following cosbination(s): ADSP 2164 other identification aarkings ralating to davicaa coaplying aith the aboveaantioned daacription Hicrocontrollar or aicrocoaputar of C-H08 tachnotogy, with a processing capacity of 16 bits, cosprising a rsndos-sccBSS sssory (RAM) having tha function of data and progrssss asaory and «ith a storsga capacity of 8 Kbita, an audio intsrfsca, a video interface and a deacraabler circuit, in tha fora of a aonolithic integrated circuit containad in a houeing bearing: - an identification aarking conaiating of or including (ona of) the following co«bination(a): CL 9119 - other identification aarkinga relating to devicaa coaplying with the abovaaantionad description Microcontroller or aicrocoaputar of N-N08 tachnotogy (including H - M 0 8 ), «ith a processing capacity of 16 bits, coeprieing at least one read only aaaory, non-prograaeabla (BON) «ith a atoraga capacity of 518 x 13 bits or an UV araaable, programmable, read only aeaory (EPROH) «ith a atoraga cepecity of 512 x 13 bits, a random-access sssory (RAH) «ith s storsga capacity of 2 Kbita, in tha fors of a aonolithic integrated circuit containad in a houaing baaring: - an identification aarking consisting of or including (ona of) the following combination(s): PD 7728 PD 77 P 28 other identification aarkinga ralating to davicaa coaplying with the aboveaentionad description Microcontroller or aicrocoeputer of C-M08 tachnology, with e processing capacity of 16 bits snd a 16-bit sddrass-bus and an 8-bit data-bus, coaprising a random-mccess aaaory (RAM) «ith a atoraga capacity of 4 Kbits or aors, a read only aaaory, non-programmable (BOM) or a progreaaabla non-arsasbla read only aeaory (PROM) or a UV-erasable, prograaaablB, raad only aaaory (EPROM) «ith a atoraga capacity of 128 Kbita or aore, in the fora of a aonolithic integratad circuit containad in a housing bearing: - en identification aarking consisting of or including (one of) ss CN code TABIC Description Rata of sulonoaous duty (X) 427 ex85421365 (13 426a ex85421365 (21 424a ex85421365 «22 432a ex85421365 «23 tha follo«inq coabinetion(a): HB 89715 HB 89P715 HB 89W715 - other identificetion enrkinge ralating to devices cosplying •ith tha sbovassntionsd deecription Hicrocontroller or eicrocooputor of C-H08 tschnology, «ith a procseeing capacity of 16 bile, coaprising of s raad only BBBory, nen-prograBaabla (BOH) aith a atoraga capacity of 64 Kbits, s rondoe-eccoes eeeory (BAH) «ilh e storsga capacity of 32 Kbits and a atetic rendoe-occess cscha aaaory (8-Cache-RAH) •ith a storage cepecity of 15 x 13 bits, in ths fors of a aonolithic integreted circuit contained in e houaing baaring: - an idantification aarkinq conaisting of or including (one of) tha following coabinetion(s): D8P16A othar identificetion esrkings rslating to devices coaplying «ith ths sbovsssntionad dascription Hicrocontroller or eicrocoaputar, «ith a processing capacity of 16 bite, coaprising s dsts sssory, a prograaaa eemory and «i th s digitel-to-enelogue converlar and/or 8n analogua-to-digilal converter, in the fora of a aonolithic integratad circuit containad in a housing bearing: - an identification sarking consisting of or including (one of) the follo«inq cosbinstion(s): 21ssp52BS-52 78C11 78C12 78C14 78CP14G 8396 8397 83C186 83C198 8736 87C196 ADSP 21ssp58 AD8P 21ssp59 H8/532 HD 6435368 HD 6475368 HD 6473368CP ICS 1768 H 37782 E2 M 37782 E4 M 37782 E8 M 37782 M2 M 37762 M8 H 37762 M3B M 37782 M4 M 37782 M6L H 37782 MDB M 37718 EFL H 37751E6 MC 68HC16 othar idantification aarkinga relating to devices coeplying •ith the abovaaentioned description Microcontrollsr or oicrocospuler of C-MOS tschnology, «ith a proc«BBing capacity of 1_6 bits, providing local erea network control, coaprising a data memory and a programme memory, in tha fors of a aonolithic intergraled circuit contained in a housing bearing: - sn identification sarking consisting of or including (one of) tha following coabination(s): SMC 83C82S TM8 8376C83 TMS 8378C73 - othar idantification aarkinga ralating to devices coaplying «ith tha abovaeentionad daacription Hicrocontrollar or aicrocoaputar of C-M08 technology, with a procaaaing capacity of 16 bita, coapriaing a dete eemory with a atoraga capacity not axcaading 16 Kbita and a programme memory with a storsgs cspscity not sxcasding 48 Kbits, in the form of ; aonolithic inlagratad circuit contained in a housing bearing: - an idantification aarking consisting of or including (one of) ths following cosbinstion(s): AD8P 2161 AD8P 216288-56 ADSP 2183 ADSP 2185 AD8P 2111 ADSP 2115 DSP 56116 PD 77P25 olhsr idantificalion aarkinga relating to devices complying with tha abovaaentioned daacription CN code TARIC Description Rate of sutonoaous duty (X) 434 ex85421367 «81 435 ex85421367 «82 437 8x85421367 «84 438 ex8S421367 «65 439 ex8S421367 «96 Microcontroller or eicrocoaputar of C-M08 technology, «ith a procsssing capacity of lft bits, providing audio functione end transsit/rscsiva functions of a digital cordleee talacoaaunicalion ayetee, in the fore of o eonolithic integreted circuit conteined in e houeing beering: - en identificetion eerkinq consisting of or including (one o f) the following c o s b i n s t i o n ( s ): AH 79C429 SC 14468 8C 14481 SC 14426 8C 14466 other identification eorkinge relating to devicee coeplying «ith the ebovoeentioned deecription Microcontroller or eicrocooputer of N-N08 (including H-H08) tachnotogy, «ith a proceeeing cepecity of 32 bite, coeprieing 24 ragistara of 32 bits snd a randos-sccsss sasory (BAH) «ith a storsga cspscity of 2 Kbits, in ths fors of a aonolithic intagralsd circuit conteined in e housing basring: - an idantification aarking consisting of or including (ona of) ths following c o s b i n s t i o n t s ): HGC 6127 other identification aarkings rslating to devices coaplying with the sboveeenlioned description Microcontroller or eicrocoaputer with a processing capacity of 32 bits snd s 16-bit d s t s - b u s, cosprising randoa-accass saeories ( R A M B) with a total storage capacity not axcaading 458 Kbita, one or aore read only seeorias, non-prograaaabla (ROMs) or ona or aora UV eraaabla, prograaeable, raad only aaaoriaa (EPROMs) aith s totsl storsga capacity not axcaading 768 Kbits, in lha fora of a aonolithic intagrated circuit containad in a houaing bear ing: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s) : 328 18 328 11 328 C 1( 328 C 15 328 C 17 328 C 25 328 C 58 328 C 51 326 C 53 328 E 15 328 E 17 TMS 328C59 - other identificetion aarkings rslating lo devicaa coaplying with the abovaaentioned description Microcontroller or aicrocospulsr of C-MOS technology, with a processing capscity of 32 bits, cosprising 8 rssd only sssory, non-programmable (RON) «ith a atoraga capacity of 4 Mbits, s randoa-access aeaory (RAM) «ith a storage capacity of 1 Mbit, a display control and driva circuit, an interrupt controller, a keyboard controller, a aaaory mapping control circuit snd s clock generator, in the fora of a aonolithic integratad circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) the following c o m b i n e t i o n ( s ): SC 414181FG16 other identification aarkinga relating to devicaa coaplying with the aboveaentionad deecription Microcontroller or aicrocoaputar with a processing capacity of 32 bits, coapriaing ona or aora randoa-accaaB aaaoriaa (RAMa) with a tolal storsga capacity not axcaading 48 Kbita, a raad only aeaory, n o n - p r o g r a a a a b la (RON) «ilh a aloraga capacity not exceeding 128 Kbits snd s floating point arithmetic unit «ith a capacity of 32 bits, in the fora of a aonolithic integratad circuit contained in a housing bssring: - en identification marking consisting of or including (one of) the following combination(s ) : DSP 32 MB 86232 <£o CN coda TABIC Deecription Rate of autonoaouE duly (X) 448 8x85421367 «97 441 B X 8 5 4 2 1 3 67 «68 442 6x85421367 «89 443 ex85421367 (16 444 ex85421369 (61 - other identificetion aarkinge releting to devicee coeplying «ith the aboveeentioned deecription Hicrocontroller or eicrocoeputer of C-H08 technology, «ilh a proceeeing capacity of 32 bita, coeprieing one or aore randoo-eccaas aaaoriaa (BAHe) aith a totel etorege cepecity of 64 Kbite and a raad only aaaory, non-progreeeeble (BOH) «ilh a etorege capacity not exceeding 128 Kbite, in the fore of a aonolithic integreted circuit conteined in e houeing bearing: - an identification eerkinq coneieting of or including (one of) the following coebination(a): 328 C 36 326 C 46 D8P 3287 other idontificetion eorkinge releting to devicee coaplying •ith tha eboveeantionad deecription Hicrocontroller or aicrocoeputer of C-H08 technology, «ith a proceeeing capacity of 32 bite, conaiating of a ayslea intagralion aodula (8IH), a randoe-ecceee aaaory (RAH), a time procBssor unit (TPU) and 2 aarial intarfaco circuits, in lha fora of a eonolithic integratad circuit contained in a housing baaring: - an idantification aarking conaiating of or including (one of) tha following coeb!nation(s): HC 68332 HC 68336 - othar idantification aarkinga rslsling to devices cosplying with the sbovsssntionsd dascription Hicrocontroller or eicrocoeputar of C-MOS tachnotogy, «ilh a procasaing capacity of 32 bits, having tha function of sudio-dats procaaaing, coaprieing e aultipliar/accuaulator (MAC) of 52 bita, 2 dynaaic randoe-accsss aaaoriaa (D-RAMs) «ilh a total atoraga capacity of 12 Kbita and 2 acetic randoa-access aaaoriaa (8-RAMs) «ith a total atorage cepacity of 14 Kbits, in the fore of a aonolithic intagralad circuit contained in a housing baaring: - an identification marking consisting of or including (one of) the following cosbinstion(s): TMC 57866 TMC 57681 other idantificstion aarkings relating to devices coaplying •ith the abovaaanlionad daacription Hicrocontrollar or aicrocoaputar of C-N08 tachnotogy, «ilh a procasaing capacity of 28 bita, in tha fora of a aonolithic intagratad circuit contained in a houaing baaring: - an idantification aarking conaiating of or including (one of) tha folto«inq cosbination(s): VV 27815 - other identificstion Barkings ralating to devices coaplying •ith the obovBBantionad daacription Microcontroller or eicrocoeputer of C-M08 tachnotogy, with a proceeeing cepecity of eore then 32 bite, in tha fora of a aonolithic integreted circuit contained in a housing bearing: - an idantification Barking coneieting of or including (one of) the following coabination(s): AD8P 21866 AD8P 21661 AD8P 21862 C8 4929 D8P 1616 D8P 56668 D8P 56661 D8P 56662 DSP 56166 D8P 96882 TH8 326C588 TH8 328C548 othar idantificstion sarkings relating to devices cosplying & CN code TARIC Deecription Bets of autonoaous duty (X) 451 Bx85421379 (81 452 ex8S421378 (62 •ith tha abovaeentioned dascription Printsr control circuit of C-HOS tachnotogy, in the fore of e oonolithic inlsgrstad circuit containad in a houaing baaring: - an idantification eerkinq consisting of or includinq (one of) the following cosbination(s): 1TX6-6381 1TV6-8681 79B3719 79B3746 THX 35C438 other identificetion eerkings releting to devicee coeplying •ith the sbovsBsntionsd dsscription Disptsy controller or cheracter gsnsrator for liquid crystal displsys (LCDs), light-ssitting diodes (LEDs) or fluorsscsnt disptsys, in the fore of e eonolithic integreted circuit conteinad in s housing bssring: - sn identificetion eerkinq coneieting of or includinq (one of) the following cosbination(s): D 16362 D 16366 ECN 2162 ECN 2112 HD 61836 MC 141548 PD 16311 TC 9248F other identification aarkings relating to devices cosplying with the abovaaentioned description 453 ex8S421378 8x85421971 «63 «82 Disc storsga unit controller, in the fora of a aonolithic integrated circuit contained in a housing bearing: - an identification Barking consisting of or including (ona of) tha following coabination(s): 8391343 1454-661 6666Z1 6888 6866 61156-881 61157-681 74G7262 82677 8988 îecee ADS AIC 616 L AIC 6198 AIC 65 C 18 B AIC 8265 CL SH258 CL 8H266 CL 8H265 CL 8H358 CL SH368 CL SH361 CL SH362 DP 8473 FDC 37C66S FDC 37C666 FE 2188 G 78368-33 HDC 9224 HDC 9234 HDL 33AH0126 HG 62864L82F L 1 A 6519 MB 89311 OMTI 585 OTI 818 OTI 633 PD 7261 PD 7262 WD 1816 WD 16C92 WD 37C65 WD 57C65 WD 42C22 WD 5818 WD 5611 WD 76C28 Z 86 C 99 454 ex85421378 ex85421971 «84 «63 - other identification aarkings relating to devices cosplying with the aboveaentioned description Control and/or asnageaent circuit for aaaories (including buffers), in the fore of a aonolithic integrated circuit contained in a housing bssring: - sn identification sarking consisting of or including (one of) the following cosbination(s): 6464 1872 1RJ3-8881 1TU9-8361 396 Z 55 68451 82387 82357 82359 82386 82385 82424 TX 82485 82495 XP 82664 82 C 182 82 C 222 82 C 223 82 C 283 82 C 382 82 C 325 82 C 392 A 38282 CV7C684 CV7C685 CV82C597 CV82C692 GC 113 GC 183 HD 68458 HDL 33A115-86GX HDL 33A116-86GX HDL 3N128-68H0 HG 62S879L25F HT 113 HT 322 HT 342 L1A4599 MC 68448 MC 68456 MC 68851 N8 32882 N8 32382 T 8496 THCT 4582 TX 32682 V VC 2738-8881C VL 4582 WD 1815 WD 11 C WD 12 C WD 83 C 588 WD 83 C 583 WE 32184 Z 8516 66-22 )-22 CN code TARIC Daacription Rate of sutonoaous duty (X) 455 6x65421378 «65 456 ex85421378 «66 458 ex85421378 459 ex85421378 466 ex85421378 •19 othar idantification aarkings rslating to dsvicas cosplying «ith tha abovflaentioned dascription Serial and/or parellel coaaunicetion controller, in the fore of B aonolithic intagratad circuit conteined in e houeing beering: - en identificetion aarking coneieting of or including (one of) the following coabinetion(e): 82958 82 C 685 82 C 686 82 C 687 Bt 8781A CL-CD188 CV7C865 HDL 32V167-86H0 HDL 32V188-86H0 HDL 3 N U 9 H 0 1 19 HC 2652 HC 68652 PD 72681 8CN 2652 8CN 68562 8CN 68652 WD 76C38 Z 86 C 38 Z 85 C 38 Z 85 C 35 other identificetion eorkinge releting to devicee coeplying •ith the ebovoeentioned deecription Digital line interfeco control circuit of C-H08 technology, capable of controlling the dote flow betaaan a syslea interface circuit, a eubecriber lino inlarfaca circuit (8LIC) and a aicroprocBBsor intsrfBCB circuit, in the fore of s sonolithic integrated circuit contained in e houeing bearing: - an idantification ssrking consisting of or including (one of) tha following coabination(s): TP 3128 othar idantification aarkinga ralating to devices coaplying with tha abovaaanlionsd dascription Control circuit of C-H08 tschnology, operating st 12 MHz, cosprising s progrssssbla intorvel liaer, a clockganerator, two direct aaaory accass conlrollsrs snd a aaaory aapper, in the fora of a aonolithic intagratad circuit contained in a housing bear i ng: - an identification aarkinq conaiating of or includinq (one of) the following coebination(s): 82231 other identification aarkings rslating to devices coeplying with the abovaaentioned dascription Control circuit of C-N08 tschnology, for the eanageeent of asynchronous cycles of s 32-bit cantrsl procsssing unit (CPU), of a direct eeeory sccsss (DMA) circuit and of a aultiaaster bus, in ths fora of s sonolithic intagratad circuit contained in a houaing bearing: - an idantification aarking consisting of or including (one of) tha following coabination(a): 82 C 321 other identification aarkinga ralating to devices coaplying with tha abovsaantienad description Control circuit or control snd aanegeeent circuit, coaprising 2 direct aaaory sccsss (DMA) conlrollsrs snd 2 interrupt controllers, in the fore of s aonolithic integratad circuit contained in a houaing baaring: - an identification aarkinq conaiating of or includinq (one of) the following combinetion(s): 823668L 82C286 82C316 82C481 82CS93 GC 161 8X HT 181 SX VL 82 C 488 VL 82 C 486 C3 CN code TABIC Deecription Rata of autonoBouB duty (X) 461 8x85421378 «11 462 ex85421378 (12 463 ex85421378 (13 464 6x85421378 (14 465 ex85421378 (15 othar idantification aerkinge ralating to davicsa coaplying •ith tha abovaaentioned daacription Control circuit of C-H08 technology, for controlling end intarfacing signals between s csntrsl procsssing unit ( C P U ), sssory snd input/output inlarfsces, coaprising circuits for rafrsshing dynaaic rendoe-eccess essoriss ( D B A H a ), for decoding of sddresses, for genereting clock signals and aonitoring data tranafar inlsrrupl signale, in the fore of a aonolithic intagratod circuit contained in a housing bearing: - sn identificetion eerking consisting of or including (one of) the following c o s b i n a t i o n ( s ): 344 8 3682 - othar idantificstion asrkings relating to devices cosplying •ilh ths sbovesentioned description Control circuit of C-H08 technology, for s sicrocontroller, a aicrocoaputar or a eicroprocessor with s procsssing cspacity of 16 or 32 bits, in tha fore of a aonolithic intagratad circuit contained in a housing bearing: - an identification Barking consisting of or including (one of) the following c o a b i n a t i o n ( s) : 82C311 TACT 82S411 othar identification aarkings relating lo devices coaplying with tha aboveaentioned deecription Tiaing control unit (TCU) with two-phase cycle for centrel processing unit (CPU) and aaaory management unit (MMU), in the fora of a aonolithic intagratad circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) tha following coabination(s) : N8 32281 NS 32 C 261 other identification aarkings releting to devices coaplying with the abovaaentioned description Control circuit of C-M08 technology, capable of driving 25 Issps or s 7-segaent light-eaitting dioda (LED) display, having 8 drive voltage of 4,5 V or aore but not exceeding 6 V, in the fora of a aonolithic integrated circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) the following c o m b i n a t i o n ( s ): MC 14489 - other identification markings relating lo devices complying with tha aboveaentioned description Circuit for connecting/diaconnacling buses, of C-MOS technology, in the fora of a aonolithic inlsgreted circuit containad in a houaing bearing: - an identification aarkinq consisting of or including (one of) tha following c o m b i n a t i o n C s ): HCC8142233 MCCS142234 HCCS142235 other identification aarkings relating to devices coaplying with the abovaaentioned description ff QN C 0 (je TARIC Daacription Rate of sutonoaous duty (X) 466 6x85421378 «16 467 6x85421378 (17 468 ex85421376 «18 476 8x85421376 «26 Control end interfoce circuit of C-M08 technology, coeprieing e eeeory controller, a peripheral controller, a canlrel proceeeing unit (CPU) interfoce circuit, a nuaaric proceeeor unit (NPU) interfece circuit, e clock generation circuit, a tiaer end e parity-check circuit, in the fora of a aonolithic integratad circuit contained in a housing beering: - en identification parking coneieting of or including (one of) the following coebination(e): HT 15 HT 18 HT 21 HT 22 - other identificetion aarkinga releting to dovicos cosplying •ith ths eboveeentionad description Interfoce or interface and control circuit of C-H08 technology, with et least one of tha following functions: - o) for signsls between a peripheral diac eeeory unit end e centrel proceeeing unit (CPU), - b) for controlling dota coeaunicatio» between a eystse bus intsrfacs and peripheral unite, coeprieing a ayalaa interfece goto, s sicroproceeeor goto and a direct aeaory ecceee (DHA) gata, - c) for interfacing snd controlling the dote eequonce between an auloaatic dote-proceeeing eachina and e disc storage unit, - d) for reed/write data between e digilal-audio-tape storsga unit and a sicroprocaesor, in tha fora of s eonolithic integreted circuit contained in a housing beering: - sn identificetion eerking coneieting of or including (one of) the following coebinetion(e): e)8391374 0)6868966 0)6861662 e)82C611 e)AIC 568 L e)DP 8466 a)H 5213 a)M 5215 s)ONTI 5888 (OHTI 28588) a)OMTI 5698 (OHTI 28569) a)QS 32383 a)08 32384 a)08 3363 e)08 3384 e)WD 11 C 86-17 a)ND 14 C 88-17 e)WD 61 C 48 b)lTUl-8381 b)lTU2-6361 b)lTV3-8361 b)lTV3-8382 b)lTV4-6361 b)lTV4-9392 c)32C268 c)AIC 6666 d)lXK2-6381 - othar identification earkinge releting to devices cosplying •ith ths ebovBaentioned dsscription Control snd intarfscs circuit of C-H08 tachnotogy, capable of receiving, proceeeing end treneeitting subscriber data in a digital network, coaprising s U na interfeca unit, a multiplexer, a dsta link controller, e eicroprocessor intsrfacs and an oscillator, in tha fore of s sonolithic integrated circuit contsinsd in a houaing beering: - en identification Barking conaiating of or includinq (one of) tha following coebinetion(s): AH 79C36A AH 78C32A OHV 453 - othar identification aarkings ralating to davicas coaplying «ith tha abovaaantionad doecription Control and interfece circuit for centrel proceasing unit (CPU) of C-H06 technology, coeprieing e control unit for the rafraahsant of Baeoriee, in tha fore of a aonolithic integrated circuit containad in a houaing bssring: - sn identification aarkinq conaiating of or including (one of) the following coabination(a): FE 3618 /r CN coda TABIC Deecription Rate of aulonoaous duty (X) 471 ex85421376 «21 472 ax85421378 «22 473 8x85421378 (23 474 8x85421378 (24 475 6x85421378 (25 - other identification aerkinge releting to devicaa coaplying «ilh tha abovaaentioned deecription Control end interface circuit of C-N08 technology, coeprising 48 aA drivare, ragiatare, en 18- or 32-bit direct aeaory access (DNA) interface, an 8- or 32-bit oicroproceeeor bus and a parity generator and checker, in tha fore of e eonolithic integreted circuit containad in a houeing beering: - an identification eerkinq coneieting of or including (one of) the following coebinstion(s): AN53C674 NCR 53C84 NCB S3C95 NCB 53C96 other identificetion Barkings rslating to devices coeplying aith tha abovaaentioned deecription Interface and control circuit of C-H06 technology, cosprising 2 univereel oeynchronoue recsivar/trsnsaittara (UARTs), a porollel-dote port, o herd-disc intsrfscs and a floppy-disc controller, in the fore of e eonolithic intagratad circuit conteined in e houeing beering: - en identificetion aarking consisting of or including (one of) tha following cosbinstion(s): 37C665 37C666 82C711 TACT 88511 other identificetion earkinga relating to devices coaplying with the eboveeentioned daacription Dust or octal univsrsst ssynchronous receiver/transmitter (Dual or octsl UART), in ths fors of s aonolithic integrated circuit contained in e housing bearing: - an identification earking consisting of or including (one of) tha following combination(s): 1TQ1-6282 PC 87316 8CC 2698 - othar identificetion esrkings rslating to devices coaplying with the abovBBsntionsd dascription Circuit for dats transfsr between a aicroprocessor snd aeaory cards of s thickness of 3 sa or aore, of C-MOS technology, in the fore of o eonolithic integrated circuit contained in a houaing beering: - en idantification aarking consisting of or including (one of) the following coabination(s): HB 86361 - othar identificetion esrkings rslating to devices coaplying «ith ths sbovsasntioned dascription Progrssssble ssynchronous communication element circuit of C-H08 tschnology, for ths ssynchronous transmission and racoption of dote, coaprising s FIFO (first in, first out) rsad/writs aaaory and at taest ona aerial input/output channel and a bi-diractionel parallel channel, in the fora of a aonolithic integreted circuit conteined in a houaing bearing: - an identification eerking consisting of or including (one of) the following coabination(s): 16CS51 16CS52 - othar idantification aarkinga relating to devices coaplying «ith tha abovBaentioned daacription /> CN code TABIC D e s c r i p t i on Rate of a u t o n o a o us duty ( X) 476 8x85421376 «26 P r o g r a a a a b lB inlarval tiaer/countar of C-H08 technology, in the fore of B aonolithic intagrsted circuit conteined in a houeing bear ing: - an idantification aarking consisting of or including (one o f) the f llowing c o a b i n s t i o n ( s ): 82CS4 477 6x85421376 «27 478 ex85421370 «28 479 ex85421378 «29 481 ex85421370 «31 483 ex85421379 «33 - other identification aarkinga releting to devicee c o e p l y i ng •ith the sbovBssntionad dascription Cosputing unit of C-H08 technology, «ithout en internet prograaaa sequencar for tha eultiplicotion or proceeeing of fixed and floating point nuabore, in tha fora of a a o n o l i t h ic intagratad circuit containad in a houeing baaring: - an idantification aarkinq coneieting of or including (one o f) the following c o a b i n a t i o n ( s ): ADSP 3216 AD8P 3228 - other identification aarkings rslating to dsvicss cosplying «ith ths abovaeontioned description Multiplier or aultipliBr/accusulslor (HAC) of C-MOS technology, in the fora of a aonolithic intagratsd circuit contained in s housing baaring: - an identification marking consisting of or including (one o f) the following c o s b i n a t i o n ( s ): ADSP 1868-A CV7CS16 CV7C516 CV7C517 LHU112 - other identificetion aarkings relating to devices cosplying with the abovaaentioned deecription Message handler circuit based on gats srrsys of C-MOS technology, providing multi-channel coaaunicetion over a b i d i r e c t i o n al bus, coaprising s B i c r o p r o c s s s or inlarfaca circuit, a voice/date receiver and transaittar, in the fore of a monolithic integrated circuit containad in a houeing bearing: - an identification aarking conaiating of or including (ona o f) the following c o m b i n e t i o n ( a ): OMV 253 - other identificetion aarkinga relating lo devicaa coaplying with the abovemenl ioned deecription Digital signsl synthesiser bassd on standsrd cells of C-MOS technology, cosprising 32 independent prograeeabla c h a n n e l s, a clock generetor, an input/output dacodar, a eicroprocessor with a processing cspscity of 8 bits, 2 tiasrs, sn intsrrupt controller, 2 digital-to-analogua convartara end ~8n a n a l o g u e - t o - d i g i t al converter, in ths fors of a aonolithic integratad circuit containad in a houeing beoring: - an identification aarking consisting of or including (ona o f) the following c o m b i n a t i o n ( s ): VV 66243 - other identification aarkinga ralating to davicaa coaplying with the abovaaentioned description Audio signal processing circuit of C-M08 technology, providing sound affects generation, coapriaing ona or aora r a n d o a - a c c e ss memories (RAMs)_and a microprocessor interface, in the fora of a monolithic integrated circuit containad in a houaing b e a r i n g: - an identification marking consisting of or including (ona o f) the following combination(s ) : q- CN coda TABIC Doecription Rate of autonoaous duty (X) C8 8885 C8 9263 N 85846 - othar idontificetion eorkinge releting to devices coaplying «ith the ebovoeentioned deecription 485 ex85421376 6x85421971 «35 «88 Data-buffer or dala/addreee-buffor circuit, in the fora of a aonolithic integrated circuit contained in a houaing bearing: - an identification aarking conaisting of or including (one of) the following coebinetion(a): 486 ex85421376 «36 487 ex8S421378 (37 488 6x85421376 (38 489 8x85421378 (39 118816283 82663 82C582 82C661 82C692 9869465 FB 2626 GC 182 HT 182 VL 82 C 332 other identification eerkings relating to devices coaplying with the ebovBaantioned deecription Interfece and control circuit of C-HOS technology, coaprising a digital-to-anelogue end enelogue-to-digital converter, a digital signet eodutetor, e eoriet bue, e 16-bit interface circuit and an 1/4-bit counter, in the fore of a aonolithic integrated circuit contained in e housing bearing: - on identification eerking consisting of or including (one of) the following cosbinstion(s): C8P 1888 other identification aarkings relating to devices coeplying with ths abovasantionsd description Dsts detection snd phsas correction circuit of C-MOS tachnology, cosprising s clock frequency correction circuit, status snd control ragistsrs and a eicroprocessor interface, in the fore of e eonolithic integrated circuit contained in a housing bsaring: - an idantification ssrking consisting of or including (one of) tha following cosbinslion(s): 118614993 - othar idantification eerkings rslating to devices complying with tha ebovoeentioned description Oats cosprassion circuit of C-MOS technology, in the fora of a aonolithic integrated circuit contained in a housing bearing: - an identification aarkinq consisting of or including (one of) the following coabination(s): 118817183 - other idantificstion Barkings relating to devices coaplying «ith tha aboveaanlionad daacription 16-bit audio signal control circuit of C-MOS technology, coaprising a bus intsrfacs, a aound generetor, an universal asynchronous racsivar/lransaitier circuit (UART) and a aicroprocaaaor intsrfacs, in lha fora of a monolithic integrated circuit containad in a houaing baaring: - an idantification aarkinq conaiating of or including (one of) the folto«inq coabination(e): OTI 665 othar idantification aarkinga relating to devices complying «ith tha abovaaantionad dascription /'O CN code TARIC Description Beta of aulonoaous duty (X) 496 ex85421376 (48 Read sequencer end error detection circuit of C-H08 technology, in the fore of e eonolithic integreted circuit conteined in e housing bearing: - an idantification eerking coneieting of or including (one of) the following cosbinstion(s): 116816464 491 ex85421378 (41 492 ex85421379 «42 other identification aarkinge releting to devices coeplying «ith the ebovoeentioned deecription B UB controller of C-H08 technology, in the fora of e eonolithic integreted circuit contoined in o houeing beering: - on idantificetion eerkinq coneistinq of or includinq (one of) the following coabination(a): 2782376 2782654 69G1795 82363 82384 82366 82388 82369 82355 82358 82374EB 82434LX 82 C 181 82 C 183 82 C 211 82 C 288 381 82 C 328 82 C 362 82 C 461 82 C 82 C 463 C 465 C 493 C 496 82 C 591 82 C 597 82 C 599 82 C 691 82 C 693 82 C 861B 82 C 882G 82 C 822 82 C 88 CA 91C614 ET 6868 GC 181 HT 218 H7 321 LIA 4681 H8N 6367 B 4228 B 4236 TACT 83443 VAC 868 VIC 868 VIC 64 VL 82 C VV 86 C 331 418 othar identification aarkings relating to devices cosplying «ith the abovaaentioned description Video controller, «ith et least one of the following functions: - a) cathode-ray tuba controlling, - b) liquid crystal diaplay (LCD) driving or controlling, - c) graphics or graphic symbols controlling, - d) colour selection controlling, in the fors of a aonolithic intagratad circuit, either conteined in a housing or fixad on a plast i c eupport, end baaring: - an identification aarkinq consisting ef or including (one of) the following cosbinstion(s) : 434 453 865 911 928 s)82 a)82 a)86 a)86 a)86 a)AN 8852 a)ATI 6886 a)CL-GD542 a)CL-GD543 a)CRT 9997 a)CRT 97 C a)H 58452 a)MB 89321 a)MB 88322 a)TVP 9512 a)V 6363 a)VD 96 C a)WD 96 C a)WD 96 C a)WD 96 C a)WD 98 C b)82 C 425 b)CL-GD6418 b)C0P 472 b)H 5656 b)HD 44166 b)HD 44786 b)HD 66186 b)HD 61164T b)HD 61195T b)HD 66186T b)HD 66187T b)LC 7582 b)H 6663 b)M 6864 b)MSH 5259 b)MSH 5298 b)N8N 5299 b)H8H 5839 b)PCF 8576 b)8ED 1528 b)8ED 1521 b)8ED 1666 b)8ED 1616 b)T 6A39 b)T 6A46 b)TH8 3491 b)TH8 3492 b)TH8 57282 b)TM8 57266 b)TH8 57287 b)TH8 57216 b)TH8 57212 b)TH8 57213 b)V 6117 b)V 6355-DJ b)WD 90C24 c)82 C 431 435 c)82 441 c)82 451 c)82 452 c)82 4SI c)84 864 c)86 c)86 964 c)ATI 264CT c)AVGAl c)CL-GD5418 c)CL-GD5448 c)GD 5438~ c)HT 268 c)HT 289 c)L 64845 c)LC 74788 c)MC 141543 c)NCR 77C22 c)0TI 867 c)PEGA c)PVGA c)8C 15864 c)TM8 348C4E c)WD 98 C 6E d)82 C 433 other identification aarkings rslating to devicss coaplying with the abovaaentioned deecription '? CN code TABIC Deecription Rate of sutonoaous duty (X) 493 8x85421376 «43 494 8x85421378 «44 495 ex8S421378 ex85421971 «45 «16 496 ex8S421378 ex85421458 (46 (67 Error detection and correction circuit of C-N08 or N-H08 (including H-N08) technology, capable of detecting end correcting eingla bit errora and detecting ell double bit errore, in the fora of a aonolithic integreted circuit conteined in a houaing baaring: - en identification aarkinq coneieting of or including (one of) tha following coobinetion(e): 8286 Aa 29C68 Aa 28C668 other identification eorkinge ralating to devices cosplying with tha aboveaantionad daacription Bue interface circuit, whether or not with bue control functione, in the fora of a aonolithic integreted circuit containad in a housing beering: - an identification aarking conaiating of or including (one of) the following coobinetion(e): 63H6388 2782351 (9486888) 53 C 786 53 C 718 53 C 728 82335 82351 82352 82353 823658L 82375EB 82378IB 82423TX 82433LX 82C166 82C386 82C586 82C611 82C836 89C186 89C185 8468267 AIC 6256 AIC 7776 Ae 28C883 Ae 29C885 CL PD6718 CL PD6728 CV7C866 CV7C861 CV7C964 E8 688 E8P 216 E8P 226 FA8 218 FA8 226 FA8 236 FE 3638 GC 132 GC 133 HDL 33A112-68H0 H8 3282 L 64853A LIA 6396 LIA 6732 H6 86988 NCB 5386 NCB 5381 NCB 53 C 88 NCB 53 C 99 PBI PCF 85474 R 4761 (8X11) R 4762 (SX12) TACT 84544 TN8 38636 VV 66765 VV 66925 WD 33 C 92 WD 33 C 93 WD 33 C 95 WD 33 C 96 WD 76 C 16 Z 16C32 Z 86617 - other identificetion Barkings rslating to devices cosplying aith tha aboveoentionod deecription Interfoce circuit or control circuit, for e local area network (LAN), in the fore of s eonolithic integreted circuit conteined in e houeing beering: - en idontificetion aarking coneieting of or including (one of) the following coebinetion(e): Aa 79C939 Aa 79C949 Aa 79C9S9 Ae 79C969 Ae 79C961 Ae 76C965 Ae 76C979 Ae 79C988 Ae 79C98? Ae 79C987 COH 8826 DP 8825 DP 83251 DP 83255 DP 83261 DP 83265 DP 8398 DP 83982 DP 83995 DP 83932 LXT 981 HB 86956 HB 86965A 8MC 83C798 T 7213 VD 88 C VD 83 C VD 83 C WD 83 C VD 83 C 24 563 516 663 698 8683 86C83 82586 82588 82588 82582 83C795 Ae 7998 Ae 78C838 Ae 79C99 or other identificetion eorkinge releting to devicaa coaplying aith the ebovoaantionod description Sériel interfece, cepeble of iepteesnting the dota streaa encoding, decoding end aaaocieted control functione for a local arao network (LAN), in the fora of a aonolithic integrated circuit contained in a houaing baaring: - an idantificetion aarking conaiating of or including (one of) the following coabination(a): 8862 8623 82561 82 C 561 AH 7991 COH 91 C 32 ?« CN code TABIC Description Rate of autonoaouB duty (X) 497 8 x 9 5 4 2 1 3 78 (47 498 8 x 8 5 4 2 1 3 78 (48 532 e x 8 5 4 2 1 3 78 (49 499 a x 8 5 4 2 1 3 72 (81 588 8 x 8 5 4 2 1 3 72 (82 other identificetion Barkings ralating to devicaa coaplying •ith the BbovBaenlionsd dascription Arithaatic-logic unit (ALU) of C-M08 technology, in the fors of s sonolithic intsgrstsd circuit containsd in a houaing baaring: - an idantificetion aarking consisting of or includinq (one of) the following c o a b i n a t i o n ( s ): CV2881 CV7C9191 CV7C9115 CV7C9118 CV7C8117 CV7C961 - other identification aarkings relating to devices coaplying •ith the ebovaaantionad dascription Adaptive differenliatad p u l s B - c o d e - e o d u l a l i on encoder/decoder of C-H08 technology, coeprieing a transeit and receive control circuit, a aicroprocassor bus interface circuit and a parallel port, in tha fora of a aonolithic intagratad circuit contained in a houaing baaring: - an idantification aarking consisting of or including (one of) tha following c o a b i n a t i o n ( s ): VP 88565 VP 23678 VP 23671 - othar identification esrkings relating to devices coaplying with the aboveaantioned deecription Coapacl diac player control circuit of C-MOS technology, providing aarvo-coaaand control, signal s y n c h r o n i s a t i o n / d e m o d u l a t i on and error correction, coaprising a randoa-accesa memory (RAM), a d i g i t a l - t o - a n a t o g ue converter, an a n a l o g u a - t o - d i g i t al converter and a aicrocontro11er or microcomputer interface circuit, in the fora of a aonolithic integrated circuit contained in a housing beering: - an idantification aarking consisting of or including (one of) the following c o m b i n e t i o n ( s ): TC 9284 other identification aarkings releting to devices complying with the aboveaentioned description Del-y circuit of C-MOS technology, comprising one static randoa-acceas aeaory (S-RAM) with a storage capacity of 8 Kbits, in tha fora of a aonolithic integreted circuit contained in a housing bearing: - an idantification aarking consisting of or including (one of) the following c o e b i n a t i o n ( s ): HS6198P - othar identification aarkings relating lo devices coaplying aith the aboveaentioned description Control circuit of C-MOS technology, for the firing of prinlhead pens, in the fors of s aonolithic integrated circuit containsd in s housing bearing: - an idantification aarkinq consisting of or including (one of) tha following c o a b i n a t i o n ( s ): 1TV5-8681 other identification markings relating to devices complying aith ths abovaaentioned description n i CN coda TARIC Description Rate of sulonosous duty (X) 561 8x85421372 (83 562 ax85421372 (84 563 6x85421372 «95 564 ex85421372 «86 565 ex85421372 ex85421399 «67 «61 506 ex85421372 «68 Interface circuit of C-H08 technology, for e keyboerd with e capacitive aatrix, cepeble of eetrix ecenning end detection, in the fora of a aonolithic integreted circuit conteined in e housing beering: - sn identification eerking coneieting of or including (one of) the following c o e b i n e t i o n ( s ): 22-68958-888 other identificetion eorkinge releting to devicee coeplying •ith the aboveeentioned deecription Encoder/decoder aith filter of C-H08 technology, for frequencies not sxceeding 4_kHz, in the fore of e eonolithic integrated circuit containad in a houeing beering: - en idantificstion aarkinq consisting of or including (ons of) the following c o s b i n s t i o n ( s ): QMV 112 other identificstion ssrkings releting to devices coeplying with the abovaaantionad daacription Quadruple encoder/decoder «ith pulse-code-eoduletion fillers of C-MOS technology, coaprising seplifiore for eidetone bslsnca, in the fora of a aonolithic inlsgrslad circuit containad in a houeing bear ing: - en identification Barking consisting of or includinq (ona of) the following c o s b i n a t i o n ( s ): OHV 365 other identification aarkings rslating to devices cosplying with the aboveaantionad description Synchronising circuit combined with s seen and signal distributor of C-MOS tachnotogy, coapriaing a control unit, a contact bounce aliaination circuit, a 17-bit ahift register and a data output foraatting unit, in tha fors of a aonolithic integrated circuit containad in a houaing baaring: - sn identificetion aarking consisting of or including (ona of) the following c o m b i n s l i o n ( s ): CHV 222 other identificetion sarking ralating to devices cosplying with the aboveaentioned description Data or image coaprassion/dscoapraaBion circuit of C-H08 technology, in ths fors of a aonolilhic intagratad circuit i. onlfined in a houaing bearing: • sn identification aarking conaiating of or including (one of) the following c o a b i n a t i o n ( a ): 1XH4-8361 1XS6-6361 1XV9-6661 74 ACT 6348 CL 458 CL 558 CL 959 - other «' jentification aarkinga relating lo devices cosplying ne aboveeentioned description Circuit of C-MOS tschnology, providing synchronisstion and discrimination of read-aignals and gmnmrmlion of write aignala, in the fora of a aonolithic intagratad circuit containad in a houaing bearing: - an identification aarking conaiating of or including (ona of) the, following c o a b i n a t i o n ( s ): HG 22SS613681 17 CN code TABIC Description Rata of autonomous duty (X) 6x85421376 (81 589 8x85421376 (82 510 85421382 85421475 85421982 514a 85421384 85421488 85421984 534 ex85421391 (61 535 ax8S421391 (82 - other identification aarking ralating to devices coaplying •ith tha aboveaantioned deecription Audio signet proceeeing circuit bessd on stsndord cells of C-H08 technology, coapriaing a raod only eeeory, non-prograaeabla (ION), a randoa-eccess aeeory (BAH), 4 enaloguo-to-digitol convertere, e sériel interfoce, e frequency deciaation circuit and a loudspsaksr overloed protection circuit, in tha fora of a aonolithic integreted circuit containad in a houaing beering: - en identificetion aarkinq consisting of or includinq (one of) the following coebinetion(s): VV 27651 other identification aarkinge releting to dsvices cosplying aith the ebovaaantionod deecription Audio digitet filter bessd on stsndsrd calls of C-MOS technology, aith 16 chennele, eech of thee reel-tiee progroeooble with 28 peraaalara or eore, coeprising s Bulliplisr/sccusulstor (HAC), o tieer snd 2 randoa-access SBBoriss (BAHs) for the storsgs of psrasstsrs snd of tesporary processing dsts, in the fore of a aonolithic integrsted circuit contsinsd in a housing bsaring: - an idantificstion eerking consisting of or includinq (one of) the following cosbinstion(s): VC 5396 othsr identification esrkings rslating to devices coaplying with ths sbovassntionsd description Progrssssbls logic davica Standard logic circuits Rasote control circuit of C-MOS technology, capable of generating 2848 différant coeeands and controlling 32 systems, cosprising s keyboerd encoder, e keyboard decoder, a parallel to serial converter, a divider, e reset generetor and an oscillstor, in tha fore of s sonolithic integrated circuit contained in a houaing bearing: - an idantificstion ssrking consisting of or including (one of) the following cosbination(s): 6AA 3616 othar idantificetion Barkings ralating to devices coaplying •ith tha aboveaenlioned dascription 8-channal control circuit of C-MOS tachnotogy, for aaintaining a constant alectroaagnatic traction force «ith incorporated diodes and a atoraga capacity of 8 bits, in the fore of a aonolithic integrated circuit containad in a housing baaring: - an identification aarking consisting of or including (one of) tha following coabination(s): UCN 5861 othar identification aarkinga relating to devices coaplying with lha aboveaantioned daacription ?-3 CN code TARIC Description Bste of sulonoaous duly (X) 536 ex85421391 (83 537 ex8542i391 (84 538 ex85421391 «65 539 ex8542l391 «06 548 ax85421391 «67 Controll circuit for low fragusncu signsts not exceeding 29_kHz, «ith el least 16 snsloguo ««itching sleeente, in the fore of e eonolithic integrated circuit containsd in a houeing bearing: - an identificetion sarking consisting of or includinq (one o f) tha following c o a b i n a t i o n ( s ): TC 9164 N TC 9177 P TC 9184 P othar identificetion earkinga releting to devicee coaplying «ith tha eboveeentioned description DC aotor control circuit, «ith at least one of the following caractariatics: - a) of C-N08 tachnotogy, coaprising a circuit to aonitor power eupply, e circuit to store end decode eddreeeee and to suit i plex dsts, an 8-bit digital-to-snslogua converter and 5 arplifiars, - b) of N-N08 (including H-NOS) tachnotogy, coaprising a digital 16-bit filter, in tha fora of a aonolithic intagratad circuit contained in e houaing bearing: - an identification Barking consisting of or includinq (one of) the following coabination(s): a)GC 27 a)GC 45 b)LM 629 other identification aarkings relating to devices cosplying with the aboveeentioned description Control circuit of C-MOS technology, capable of proceesing read-signals and of controlling tha aotor of a coapsct-disc player, coaprising s central processing unit (CPU) interfece, an error detection/correction circuit, a raad-aignal deeoduletor, a phase locked loop (PLL) circuit end a conetant-linaar-valocity (CLV) controller, in the fora of a aonolithic integreted circuit contained in a houaing bearing: - an identification aarking consisting of or including. (ona of) the following coabination(s): CXD 1125 CXO 1138 CXO 1135 CXD 1167 MN 66271 other identification aarkings releting to devicee coaplying aith the aboveaantioned description Controller for servo-devices of C-M08 technology, in the fors of a aonolithic integrated circuit contained in a houaing bear ing: - an identification aarkinq consisting of or includinq (one of) the following coebination(s): KM 3782 other identification aarkings ralating to devices coeplying with the abovaaentioned description Control circuit of C-MOS technology, capabla of controlling video-signals of a cherge-coupled (CCD) iaaga aanaor, in the form of a aonolithic integratad circuit contained in a houeing bearing: - an identification aarkinq consisting of or includinq (ona of) the following combination(s): CXD 2183 CXD 2133 - other identification aarkings releting to devicaa coaplying with the aboveeentioned description rV CN code TABIC Deecription Rate of aulonoaous duty (X) 541 ex85421391 «88 542 ex85421391 «89 543 ex85421391 (18 544 ex85421391 «11 545 ex85421391 «12 546 ex85421391 «13 Audio control circuit of C-H08 technology, cepabla of 2-channel (eteroo) votuee control, coapriaing a eultiplexer, 2 aaplifiers, s control regieter end e esrisl-to-perBllel register, in the fore of e eonolithic integreted circuit contained in a housing bssring: - an idantificetion parking consisting of or includinq (one of) the following cosbinstion(s): CS 3318 - other identificetion eorkinge releting to devices coaplying with the oboveeentioned deecription Control circuit of C-H08 technology, for a aicroprograaae, in tha fora of a aonolithic integreted circuit contained in a houaing beering: - en identificetion eerkinq consisting of or includinq (one of) the following coebinetion(s): CV 2918 CV 7C 919 - other identification aarkings rslating to devices coaplying with the aboveaentioned description Control circuit, of C-H08 tschnology, for soniloring the voltags of randoa-access aeaoriaa (RAMs) in the fore of a aonolithic integratad circuit contained in a housing bearing: - sn idsntification sarking consisting of or includinq (one of) the following combination(s): BO 2261 BO 2262 60 2264 BO 2562 BO 2563 DS 1218 - other identification aarkings rslating to devices coaplying with tha abovaaentioned daacription Lina decoder/driver of C-N08 technology, with an output voltage of 36, 35 or 66 V at 586 aA, in the fora of a aonolithic intagretad circuit contained in a houeing bearing: - an identification aarking consisting of or including (one of) the following cosbination(s): HC 34142 UCN 5816 UCN 5817 - other identification aarkings rslating to devices coaplying «ith the aboveaantioned description Control circuit of C-M08 tschnology, capable of aanaging the reduction of power consumption of a aicroprocessor or of other peripheral unita, in the fora of a aonolithic integrated circuit containad in a houaing bearing: - an identification aarkinq consiating of or includinq (one of) the following coabination(a): 1828 CP - other identification aarkings rslating to devices coaplying «ith the aboveaantionad dascription Pulse-code-Bodutstion lins inlsrfBcs circuit of C-MOS technology, in ths fora of a aonolithic integratad circuit containad in a housing bssring: - sn identification aarking conaiating of or including (one of) tha following co«bination(a): BT 8853A C8 81574 C8 81575 DS 2153 XR-T5781 XR-T5783 - other identification aarkinga ralating to devices coaplying CN c o de T A B IC D e s c r i p t i on B s te of a u t o n o s o us duty (X) 5 47 e x 8 5 4 2 1 3 81 «14 I n t e r f a ce c i r c u it of C - N 08 t e c h n o l o g y, for at least one « i th tha s b o v s s e n l i o n ed d e s c r i p t i on a n c o d s r, c a p a b la of i d e n t i f y i ng and a e a s u r i ng d i r e c t i on and d i a p l a c a a a nt via a i g n s la of e x t a r n al s e n s o r s, c o a p r i s i ng at Issst 3 c o u n t s r s, st Isast ona latch of 16 or 24 b i t s, st Issst o ns e u l t i p l e x e r, at laast ona 8-bit p a r a l l el d s ts b u f f s r, in the fors of a a o n o l i t h ic i n t e g r a t ed c i r c u it c o n t e i n ed in a h o u s i ng bear ing: - an i d a n t i f i c e t i on B a r k i ng c o n s i s t i ng of or includinq (one o f) ths f o l l o w i ng c o a b i n a t i o n ( s ): THCT 2 8 88 THCT 12616 THCT 12624 THCT 12316 5 48 s x 8 5 4 2 1 3 91 ( 15 I n l s r f s cs c i r c u it for s text dsts d s c o d er of C - M OS t s c h n o l o g y, - othar i d a n t i f i c a t i on a a r k i n ga r a l a t i ng to d e v i c es c o s p l y i ng •ith ths a b o v a a a n t i o n ad d e s c r i p t i on c s p s b la of d a t a - s l i c i n g, clock r e g e n e r a t i on and a y n c h r o n i a a t i on s e p a r a t i o n, in tha fora of a a o n o l i t h ic i n t e g r a t ad c i r c u it c o n t a i n ad in a h o u a i ng b a a r i n g: - an i d e n t i f i c a t i on a a r k i ng c o n s i s t i ng of or including (one o f) the f o l l o w i ng c o a b i n a t i o n ( s) : CF 7 2 3 83 CF 7 2 3 86 549 e x 8 5 4 2 1 3 91 (16 I n t e r f a ce and c o n t r ol circuit of C-MOS t e c h n o l o g y, - other i d e n t i f i c a t i on a a r k i n gs r e l a t i ng to d e v i c es c o a p l y i ng aith tha a b o v a a a n t i o n ad d e s c r i p t i on p r o g r a e a a b l e, for i n t e r f a c i ng s i g n s ls b e t w e en v i d e o - g r a p h i c - a r r ay ( V G A) c o n t r o l l e rs and c a t h o d e - r ay tube ( C R T) d i s p l a y s, liquid c r y s t al d i s p l a ys ( L C D s ), l i g h t - e a i t t i n g - d i o da ( L E D s) d i s p l a ys or p l s s s a - d i s p l a y s, c a p a b le of s i m u l t a n e o u s ly c o n t r o l l i ng a C R T - d i s p l ay and 8 LCD d i s p l a y, c o s p r i s i ng a d i g i t a l - t o - s n a l o g ua v i d e o - c o n v e r t er aith r a n d o m - a c c e ss m e m o ry ( R A M D A C ), in lha fora of a a o n o l i t h ic i n t e g r a t ed circuit c o n t a i n ed in a h o u s i ng b e a r i n g: - an i d e n t i f i c a t i on B a r k i ng c o n s i s t i ng of or including (one o f) the f o l l o w i ng c o e b i n a t i o n ( s ): C L - G D 6 3 48 558 e x 8 S 4 2 1 3 91 «17 R e p e a l er i n t e r f a ce and c o n t r ol circuit of C-MOS t e c h n o l o g y, other i d e n t i f i c a t i on a a r k i n gs r e l a t i ng to d e v i c es c o a p l y i ng with the a b o v e a e n t i o n ad d e s c r i p t i on c o a p r i s i ng 7, 8 or 12 t r a n s m i s s i o n / r e c e p t i on interface p o r t s, an a t t a c h m e n t - u n it i n t e r f a ce (AUI) port end 8 p h a se locked loop ( P L L) d e c o d e r, in the fora of a a o n o l i t h ic i n t e g r a t ed c i r c u it c o n t a i n sd in a h o u s i ng b e e r i n g: - en i d e n t i f i c a t i on a a r k i nq c o n s i s t i ng of or including (one o f) the f o l l o w i ng c o a b i n a t i o n ( s ): DP 8 3 9 58 DP 8 3 9 55 551 8 x 8 5 4 2 1 3 91 «18 L i ne i n t e r f a ce c i r c u it of C-MOS t e c h n o l o g y, c a p a b le of - other i d e n t i f i c a t i on a a r k i n gs r e l a t i ng to d e v i c es c o a p l y i ng aith tha a b o v a a e n t i o n ad d e e c r i p t i on t r a n s a i t t i ng and r e c e i v i ng data at a rate of 25,6 Mbits par s e c o n d, c o a p r i a i ng a FIFO (first in, first o u t) r e a d / w r i te a e a o r y, a 4/5-bil encoder and a 5/4-bit d e c o d e r, in the fora of a a o n o l i t h ic i n t e g r a t ed circuit c o n t a i n ed in a h o u s i ng b a a r i n g: - an i d e n t i f i c a t i on a a r k i ng c o n s i s t i ng of or i n c l u d i nq (ona o f) the f o l l o w i ng c o e b i n a t i o n ( s ): TXC 6 7 1 25 other i d e n t i f i c e t i on e e r k i n gs r e l a t i ng lo d e v i c es c o e p l y i ng with the a b o v e e e n t i o n ed d e s c r i p t i on }C CN coda TARIC Dascription Rate of autonoaous duty (X) 528 ex85421391 «19 566 ex85421399 «63 561 ex85421399 «64 562 ex85421399 «65 563 ex85421399 «66 Serial interfoce circuit of C-H08 technology, cosprising 2 sériel porte cepeble of opereting et a tranefor rate of 26 Hbytee/£ and 2 parallel buesss, in the fora of e eonolithic integratad circuit contained in a houeing beering: - en identification aarking coneieting of or including (one of) the following coebination(e): 3H5114 - other identification aarkinge releting to devicee coeplying with the abovaaentioned deecription Universel eynchronoue recoiver/troneeitter of C-H08 technology (C-H08 U8BT), capable of full duplax digital voice end/or data tranefor with a apaad of 86 Kbite/e or aora over e distsnce of I ke or e epeed of 168 Kbite/e or laee over e dietenco of 1 ka, coapriaing a aodulator and date buffere, in the fore of e aonolithic intagratad circuit conteined in e houeing bearing: - en identification aarking consisting of or including (ona of) the following coabination(e): HC 145421 HC 145422 HC 145425 HC 145426 TP 3481 TP 3462 TP 3483 - other identification esrkings rslating to davices coaplying •ith the ebovoeentioned deecription Treneeitter/receiver of C-H08 technology, aith el least one of ths following charsctarislics: - a) cepeble of connecting (tereinating) line rotes of 1168, 8448j_ 34368. 53884 or 159252 Kbits per eecond, - b) for eignole between en encoder/decoder ueing Hsnchester code (MED) or en interfoce unit and e twisted peir cable or a coaxial cable in e locol eroe network (LAN), - c) cepeble of dels trsnsfsr at a frsqusncy of 1,544 or 2,948 MHz, cosprising sn equelissr snd a clock ganarstor, in the fore of e eonolithic integreted circuit contained in a housing beering: - en identification aarking consisting of or includinq (one of) the following coebinetion(s): e)Bt 8952 e)TXC 92656 o)PH 5343 a)PH 5344 b)83C82 b)83C84 b)Ae 79C98 b)CV7C971 b)MC 145572 b)TN8 386C68 c)LXT 394 c)LXT 318 c)LXT 311 other identificetion eerkings releting to devices cosplying with tha aboveeentioned deecription Duel-tone eulli-frequency (DTHF) recaivsr of C-MOS technology, cspsble of decoding DTHF eignsls to 4-bit binary dsts, in the fore of e aonolithic inlagralad circuit containad in a housing baaring: - an idsntificstion eerking consisting of or including (one of) ths following cosbinstionts): H-957 - othsr idsntification ssrkings rslating to davicaa coaplying with tha ebovoeentioned deecription 8eriel/porellel converter of C-H08 technology, cepabla of driving diepleye, in the fore of a aonolithic intergrated circuit contained in a houeing beering: - en idantification aarkinq conaiating of or includinq (ona of) tha following coabination(a): HV 5122 HV 5222 HV 5386 HV 5388 HV 5486 HV 5468 HV 7768 1} CN coda TABIC Deecription Rate of autonoaous duty (X) 564 ex85421399 (97 565 ex85421399 ' (99 - othsr idantification aarkings relating to devicaa coaplying with the eboveeentioned deecription Digitel-to-enelogue end enelogue-to-digitel converter of C-MOS technology, coeprieing en eneloguo eodulelor capable of overeeepling aignala at a frequency of 1924 MHz end e filter capable of eeepling eignele froe e digital aodulator at s frequency of 512 kHz, in the fore of e eonolithic integreted circuit conteined in e houeing beering: - en identificetion eerkinq coneieting of or includinq (one of) the following coebinotion(e): H8P 58C28 - other identificetion eorkinge releting to devices cosplying with tha abovaaentioned description Saapling rate converter of C-MOS technology, cepeble of converting o clock eignel with e frequency of 13,5 HHz or aore but not exceeding 18 HHz into e clock signsl with s frsqusncy of 18 NHz, in the fora of a eonolithic integratad circuit contained in a houeing beering: - en idantificetion parking consisting of or including (one of) the following cosbinstion(s): CXD 2832 - other idantificstion Barkings relating to devices coaplying «ith the abovaaantionad dascription 566 ex85421399 8x85421499 (18 (91 Disc storage unit deta separator (ODS), in the fore of a aonolithic integrated circuit conteinad in a housing beering: - an identification aarkinq consisting of or including (one of) the following combination(s): DP 8465 VH 5351 VH 5352 VH 5353 WD 16 C 28 VD 16 C 21 567 ex85421399 (11 568 ax8S421399 (12 other idantificstion sarkings relating to devices coaplying with the abovaaentioned description Signsl processing circuit of C-HOS tschnology, providing delay of scsnning periods for horizontsl isags lines of s charge-coupled (CCD) iaage sensor, cosprising s clockgeneretor, a clasp circuit snd s saeple and hold circuit, in ths fora of a aonolithic integratad circuit contained in a houaing bearing: - an idantification aarking consisting of or including (one of) the following coabination(s): CXL 1517 CXL 5584 HN 3866SA HN 3861SA HSH 6819HS-K HSH 6834MS-K olhar idantification markings ralating to devicaa coaplying •ith tha abovaaentioned daacription Digital signal synthesiser of C-MOS tschnology, «ith st least one of the following characteristics: - a) coapriaing randoa-eccesa aaaoriee (RAMs) «ith 8 total atoraga capacity of 16 Kbita, «ith a sampling rata of 22,257 kHz and 44,1 kHz and 2 output channsls, - b) coapriaing 32 or 48 fraquancy ganarators, a clock generetor and en eddraaa generator, in lha fore of e eonolithic integrated circuit contained in a houaing bearing: - an idantificetion aarking consisting of or including (one of) the following coabination(s): a)344 S 8853 b)VC 2375 b)VC 5395 - other idanlification aarkinga ralating to devices cosplying "J 7 CN code TARIC Description Rale of autonoaous duly (X) 569 ex854213S9 «13 578 ex85421399 «14 572 ex85421399 «16 573 ex85421399 «17 574 ex854213S9 «18 «ith the aboveaentienod daacription Signal generator of C-H08 technology, providing eynchronoue pulse gsnerstion for o charged coupled (CCD) ieags eeneor, in the fore of a aonolithic integrated circuit conteined in e housing bearing: - an identificetion aarking coneieting of or including (one of) the following coebination(a): CXD 1838 CXD 1217 LZ 83653 LZ 83N43 LZ 85G52 - other identification aarkings releting to devicee coeplying «ilh the ebovoeentioned deecription Signal processing circuit of C-N08 technology, cepeble of processing vidso-signale froe e charge-coupled (CCD) iaage sensor, in the fore of o eonolithic integreted circuit conteined in e housing beering: - sn idsntificetion eerking coneieting of or including (one of) the follo«ing cosbinstion(s): CXA 1818 CXD 2188 CXD 2158 - other identification aarkinga ralating to devices coaplying with tha abovaaentioned deecription Video procasaing circuit of C-H08 tschnology, providing aspect ratio conversion and intsrlsca conversion for tuainance/chroainancs signsls, in the fore of a aonolithic integrated circuit contsinBd in s housing bssring: - an identification aarkinq consisting of or includinq (one of) the following cosbination(s): CXD 2935 - other identification aarkinga ralating to devices coaplying with the aboveeentioned deecription Encoder/decoder of C-MOS technology, cepabla of encoding, decoding and interfacing aariel signals hsving s rate of 13 Kbits per sscond snd sudio signals hsving B rate of 164 Kbits per sscond, coapriaing an analogua-to-digital convartar, a digital-to-analogua convartar, digital-pulsa-coda-aodulation filters and an acho cancatlation circuit, in tha fori of a aonolithic intagratad circuit containad in a housing bearing: - an identification eerkinq consisting of or includinq (one of) the following coabination(s): VP 22826 other identification aarkinga ralating to devices coaplying with the sbovaeantioned daacription Decoder of C-M08 tachnotogy, for daaodulaling and demultiplexing of stereo aignala, coapriaing an interfece circuit of a digital-to-analogua convartar having an output clock signal of 8,192 or 16,384 MHz, in lha fora of a aonolithic integrated circuit containad in a houeing bearing: - an identification aarkinq conaiating of or including (one of) the following coabination(a): CF 76888 CF 78691 - other identification aerkinga relating to devices coaplying with the aboveaanlionad daacription % CN code TARIC Description Rata of sulonoaouB duly (X) 575 8x85421389 (19 Encoder/decoder of C-H08 technology, for the conversion of data into NRZ ( N o n - B s t u r n - t o - Z B r o) forsst or BLL (Run-Langth-Lisitad) foraal, in tha fore of a aonolithic intagratad circuit containad in a houaing baaring: - an idantificstion sarking consisting of or including (one of) tha following c o s b i n a t i o n ( s ): 61158 CL-8H118 576 sx85421399 «29 577 8x85421399 (21 578 8x85421399 «22 579 ex85421399 «23 588 ex85421399 «24 - othsr idsntification aarkings relating to devices cosplying •ith tha abovaaentioned description Audio dacodsr of C-N08 tachnotogy, capabla of decoding and daaulliplexing audio signsls snd digital dsts, in ths fors of a sonolithic inlsgrstsd circuit conteined in s housing beering: - sn idsntificstion eerking consisting of or including (one of) ths following c o s b i n s t i o n ( s ): C8 8411 CS 8412 - other identification «erkings rslating to devices coaplying •ith tha aboveaenlioned description Adaptive différantiated pulse-code-sodulation circuit of C-MOS tachnotogy, for ancoding/dacoding apaech and data and capable of full or_ half duplex date-transfer, in the fore of a aonolithic integrated circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): BB8P4CH Bt 8118 HT 9125 HT 9126 SC 11368 SC 11362 - other identification esrkings releting to devices coeplying «ith the abovaaentioned description Audio encoder of C-MOS technology, capable of encoding and eulliplexing audio signsls snd digital data, in the fora of a aonolithic integrated circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): CS 8461 CS 8482 - other identification aarkings relating to devices coaplying «ith the aboveaantioned description Encoder/decoder of N-MOS (including H-MOS) technology, for the conversion of data into serial or parallel signets, coaprising an ar i thee t i c logic unit (ALU) and a read only aeaory, non-prograaaabla ( R O M ), in the fora of a aonolithic integrated circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) the following c o m b i n a t i o n ( s ): TMS 38628 TM8 38821 other identification aarkings relating to devices coaplying •ith tha abovaaantionad dascription Phase-locked loop (PLL) clock circuit of C-MOS technology, capable of synchronisation or multiplication of frequencies not exceeding 166 MHz, in the fora of a aonolithic integrated circuit contained in a houaing baaring: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): 74 FCT 3888915 74 FCT 88915 MC 88915 MC 88916 MC 88926 MC 88PL117 ?? CN code TARIC Description Rata of autonomous duty (X) 581 ex85421399 «26 582 6x85421399 «27 583 ex8S421399 «28 584 ex85421399 «29 585 ex85421399 «39 othar idantification aarkinga releting to devicee coeplying «ith the aboveaentionad deecription Clock/cBlandar circuit, in the fora of a aonolithic integreted circuit contained in a houeing baaring: - an identification aarkinq consisting of or including (one of) the following cosbinstionts): 58274 N 3682 M 3663 HC 146818 MCCS 146818 MM 58167 MM 58174 A V 3621 V 3622 V 3623 - other identification eorkinge releting to devicee coeplying •ith the abovaaentioned deecription Address gsnarstor of C-H08 technology, for the eddreee generation of a aourco iaaga and a target iaego during iaage manipulation, in the fore of o aonolithic integreted circuit containad in a housing bssring: - an identification aarking coneieting of or includinq (one of) the following coabination(a): TMC 2382 other identification aarkinga releting to devicee coeplying «ilh the aboveaentionad description Delineetion circuit of C-MOS technology, cepeble of extrecting and inserting asynchronous transfer eoda (ATM) calls froa and into a U na interface signsl, in the fore of e eonolithic integrated circuit contained in a houaing beering: - an identification aarkinq consisting of or including (one of) the following coebination(s): TXC 65156 - other identification markings releting to devices cosplying «ith the aboveaentioned description Modutetor/deaodutator of C-N08 tschnology (C-HOS-Hodea), only for half duplex transfer of iaage telegraphy (facaiaila) at a rate of 366, 2466, 4888, 7286 or 9668 bite par aecond, in the fora of a aonolithic intagratad circuit containad in a housing beering: - en identification marking consisting of or including (one of) the following cosbination(s) : TC 35128 - other identification aarkinga releting to devicee coeplying with the aboveeentioned daacription Modulator/demodulator of C-MOS technology (C-HOS-Hodaa), for full duplex data-transfer at s rets not exceeding 2488 bits per second end for half duplax trsnsfsr of iaage telegrephy (facsiaile) at a rate not axcaading 8688 bits psr sscond, in the fors of a aonolithic intsgrslsd circuit contsinad in a housing bearing: - an identification sarking consisting of or includinq (one of) the following cosbinstion(s): SC 11644 SC 11846 SC 11854 8C 11855 - other identification markings rslating to devices cosplying with the aboveaentionad dascription 8* CN code TABIC Description Rate of autonomous duty (X) 586 ex85421399 6x85421998 (31 (87 Raad channel circuit, providing read/write and aervo deeodulator functione, in the fore of e eonolithic integrated circuit contained in e houeing beering: - en identificetion eerkinq conaiating of or includinq (one of) the following c o a b i n a t i o n ( s ): 32P4738 91C828 CL-8H 3365 587 ex85421399 (32 - other identification eerkings rslating to devices cosplying with the ebovoeentioned description Generstor of C-H08 technology, for a user-definable cursor, in the fore of e eonolithic integreted circuit conteined in a houeing beering: - en identificetion eerking consisting of or including (one of) the following c o e b i n s t i o n ( s ): 81431 other identificetion aarkings rslating to devices coaplying «ith tha abovssantionsd description 588 8x85421399 ex85421499 6x85421998 (33 (62 (68 Saoke daisclor oparating in a teeperature range of -26 *C or aora but not excesding 88*C, in tha fora of a aonolithic integratad circuit contained in a housing basring: - an identification Barking consisting of or including (one of) the following cosbinstion(s): MC 14467 HC 14468 HC 14471 HC 145618 CS 235 V 24216 589 ex85421399 (34 591 ex85421399 (36 592 ex85421399 (37 other identification aarkings releting to devices coaplying •ith the abovaaentioned description. Video-line coeb filter of C-MOS technology, capable of digital signsl luainanca/chroainanca separation, in the fora of a aonolithic intagratad circuit contained in a housing bearing: - an idantificetion Barking consisting of or including (one of) the following coabination(s): CXD 2824 CXD 2636 MC 141626 - other idantificstion aarkings relating to devices coaplying •ith the abovaaentioned daacription Echo end reverberation aodule, coaprising a Bultipliar/Bccuaulalor, two randoa-access aeaories (RAMs) and a read only aaaory, non-programmable (ROM), in the form of a aonolithic intagratad circuit contained in a housing bearing: - an idantification aarking conaiating of or including (one of) tha following combination(s): VC5344 VC5969 - other identification aarkings rslating to devices coaplying •ith tha abovsaanlionad daacription Digitally controlled potentioaatar of C-MOS or N-MOS (including H-MOS) tachnotogy, in tha fora of a monolithic integrated circuit contained in a houaing baaring: - an idantificetion parking consisting of or including (one of) tha following coabination(s): SC 76813 X 9182 X 9183 X 9164 X 9311 X 9312 X 9313 X 9583 X 9C182 X 9C163 X 9C164 X 9C563 other idantification aarkings relating to devices coaplying (0/ CN c o de T A B IC D e s c r i p t i on R a te of a u t o n o a o us duty (X) 593 e x 8 5 4 2 1 3 99 «38 •ith tha a b o v a a e n t i o n ed d e s c r i p t i on 8 x 16-bit d i f f e r e n t i al c r o a a p o i nt « w i t ch of C - H 08 t e c h n o l o g y, c a p a b le of s w i t c h i ng at a f r e q u e n cy of 28 H H z, in the fora of a a o n o l i t h ic i n t e g r a t ed c i r c u it c o n t a i n ed in a h o u e i ng c a r i n g: - an i d e n t i f i c a t i on s a r k i ng c o n a i a t i ng of or i n c l u d i ng (ona o f) tha f o l l o w i ng c o a b i n a t i o n ( s ): MT 8 8 16 595 e x 8 5 4 2 1 3 99 (49 T r e n s s i t t s r / r s c s i v sr of C-MOS t s c h n o l o g y, for tha r e c e p t i on end o t h ar i d a n t i f i c a t i on a s r k i n gs r s l a t i ng to d a v i c ae c o e p l y i ng • i th the a b o v e e e n t i o n ed d a s c r i p t i on t r a n s a i s s i on of data at a spesd of 5 1 , 84 or 4 4 , 7 36 H b i t s / s, c o s p r i s i ng s NRZ ( N o n - R a t u r n - t o - Z s r o) d s t s - f o r e et e n c o d e r, e d e c o d s r, an s d s p t i vs a q u a l i a ar a a a o c i s t ad » i th an a u t o e o t ic g a in c o n t r o l l e r, a r a c e i ve c o n t r ol c i r c u i t, an e e i t t er c o n t r ol c i r c u it snd e clock r e c o v n ry c i r c u i t, in the fore of e a o n o l i t h ic i n t e g r a t ad c i r c u it c o n t a i n ad in a h o u a i ng b e a r i n g: - an i d e n t i f i c a t i on aarking c o n s i s t i ng of or includinq (one o f) the f o l l o w i ng c o a b i n a t i o n ( s ): TXC 8 2 8 28 TXC 62821 596 e x 8 5 4 2 1 3 99 «41 V i d eo n o i se r e d u c t i on circuit of C-MOS t e c h n o l o g y, c o e p r i e i ng o t h er i d e n t i f i c a t i on a a r k i n gs r s l a t i ng to d a v i c as c o a p l y i ng with the a b o v e a e n t i o n ed d e s c r i p t i on inputs for 8-bit c h r o m i n a n ce and l u a i n a n ca s i g n s l s, in ths fora of a a o n o l i t h ic integrated c i r c u it c o n t a i n ad in s h o u s i ng beer ing: - en i d e n t i f i c e t i on aarkinq c o n s i s t i ng of or i n c l u d i ng (one o f) the f o l l o w i ng c o e b i n a t i o n ( s ): CXD 2636 597 e x 8 5 4 2 1 3 99 « 42 FM s t e r eo sound g e n e r a t or of C - N OS t e c h n o l o g y, c o a p r i s i ng s - other i d e n t i f i c a t i on m a r k i n gs r e l a t i ng to d e v i c es c o a p l y i ng with the a b o v e m e nl ioned d e s c r i p t i on p h a se g e n e r e t o r, s tiaer, a r e g i s t e rs array, a bus c o n t r o l l er and at least 1 a c c u m u l a t o r, in the fora of a B o n o l i t h ic i n t e g r a t ed c i r c u it c o n t a i n ed in a h o u s i ng b s s r i n g: - an i d e n t i f i c a t i on marking c o n s i s t i ng of or i n c l u d i ng (one o f) the f o l l o w i ng c o m b i n a t i o n ( s ): VMF 262 VMF 289 598 e x 8 S 4 2 1 3 99 «43 D e c o d er of C - M OS t e c h n o l o g y, c a p a b le of arror c o r r e c t i o n, other i d e n t i f i c a t i on m a r k i n gs r e l a t i ng to d a v i c aa c o a p l y i ng with the a b o v e e e n t i o n ed d e s c r i p t i on c o a p r i s i ng a s e r i al bus and a d e a c r a a b l i ng c i r c u i t, in tha fora of a a o n o l i t h ic integrated c i r c u it c o n t a i n ad in a h o u a i ng beer ing: - an i d e n t i f i c a t i on aarkinq c o n s i s t i ng of or i n c l u d i ng (one o f) the f o l l o w i ng c o m b i n a t i o n ( s ): VES 5 4 53 other i d e n t i f i c a t i on m a r k i n gs r e l a t i ng to d e v i c es c o a p l y i ng with the B b o v e m e n t i o n ed d e s c r i p t i on 22. CN coda TABIC Deecription Rale of autonomous duty (X) 599 ex85421399 (44 668 ex85421399 «45 32 ex85421399 «47 603 ex85421399 (48 Doeodulator of C-H08 technology, coeprieing recaption filters, polyphaoe fillars, a clock synchronisât ion circuit snd an sutoaatic gain controller, in the fore of e eonolithic integreted circuit conteined in e houeing bearing: - en identificetion eerkinq coneieting of or includinq (one of) the following coebination(a): VE8 4133 - other identificetion eorkinge releting to devices complying with tha aboveeentioned deecription Infrered traneeitter/receiver of C-HOS technology, in the fora of a aonolithic integreted circuit contained in a housing baaring: - an idantificetion eerking coneieting of or includinq (one of) the following coobinotion(s); CS 8136 - other identificetion eorkinge relating to devices coaplying with tha aboveeantionad dascription Digitel-to-enelogue convertar of C-MOS technology, with at lasst ona of tha following characteristics: - a) aith a cepecity of 8 bite, with an output buffer amplifier, a eeriol interfece circuit end et least 12 channels, - b) with a capacity of 8 bita, capable of double buffering 8-bit words, - c) with s capacity of 8 bita, capable of converting serial data input towarda 38 output channels, - d) aingla or tripla convartar, with at least one randoe-access aaaory (BAHDAC), having one or eore colour pslette registers, - e) with e dynaaic audio ronge of 99 dB or aore, - f) 8-, 9- or 19-bil vidao convartar, with at least 3 channalo for the separate conversion of colour signals, - g) with a capacity of 16 bita, capable of converting data in coaprising s 16-bit digilel-to-snalogue floating point (era, convartar, and a ahift regieler, in the fore of e aonolithic integrated circuit contained in a housing beering: - en idantification ssrking consisting of or including (one of) tha following cosbinstion(s): s)H 62352P b)0AC 6838 b)DAC 8831 b)DAC 8832 c)N6 88344B d)357868ie d)35788811 d)35788812 d)ATT 26C499 d)ATT 29C491 d)ATT 29C492 d)ATT 29C493 d)ATT 29C497 d)8t445 d)8t451 d ) B U 58 d)8t459 d)Bt468 d)Bt461 d)Bt462 d)Bt463 d)Bt467 d)Bt473 d)Bl475 d)MU 9C9768 d)SC 11482 d)SC 11483 d)SC 11484 d)SC 11485 d)SC 11487 d)SC 11489 d)SC 1582S d)SC 15626 d)TR 9C1719 d)TVP 3929 d)TVP 3638 e)CS 4328 e)CXD 2564 B ) PD 6376 B ) T MS 57618 f)Bt 857 f)CXD 1178 f)CXD 2387R f)CXD 2369 g)VAC 512 g)VAC 513 - othar identificetion Barkings relating to devices coeplying with the ebovoeentioned deecription Anslogue-to-digilet converter, with at laast one of the following characteriatice: - a) 8-bil parallsl convsrlsr of C-MOS tachnotogy, - b) with a cepecity of 16 or 28 bits of C-MOS technology, coeprieing e aynchroniaation circuit, 2 modulators, 2 digital filière, e 4-bit digital-to-analogue converter and an aaplifiar, - c) 16-, 18- or 28-bit starao audio convartar of C-MOS tachnotogy, - d) with a capacity of 16 bita, coaprising a digital filter with a passband of 45,5 kHz at 3 dB, - a) capsbla of driving s liquid crystal (LCD) or tight esitting diode (LED) display with not aora 4 digits, - f) 8-bit vidso convarlsr of C-MOS technology, coaprising a CN coda TAR IC Description Rate of sulonoaous duty (X) synchronising claap circuit, in the fore of a aonolithic integrated circuit containad in a housing baaring: - an idantification aarking consisting of or including (one of) the following coabination(s): a)IDT 7SC48 a)IDT 75C58 a)HP 7683 a)MP 7684 b)C8 5516 b)CS 5528 c)C8 5326 c)C8 5327 c)C8 5328 c)C8 5328 c)CS 5336 or c)CS 5339 c)C8 5349 d)DSP 56ADC16 a)HI 7131 a)HI 7133 B ) I CL 7166 a)ICL 7167 B ) I CL 7116 B ) I CL 7117 a)ICL 7126 a)ICL 7136 a)ICL 7137 s)MAX 136 e)NAX 131 B ) M AX 133 a)MAX 138 a)MAX 138 B ) M AX 146 136 B ) M AX f)CXD 1176 f)CXD 2366 - othar identification aarkinga relating to devicaa coaplying with the aboveeentioned daacription 6 Data «ageentation or reaaaaably circuit of C-MOS tschnology, providing fragssnlstion of 16382 packets of 8- or 16-bit words into calls or providing reassembly of these cells in 16382 packets of 8- or 16-bit words, in the fora of a sonolithic integrated circuit contained in a housing beering: - en idantification aarkinq consisting of or including (one of) the following coabinstion(s): TXC 65581 TXC 85681 - other identification aarkings relating to devices coaplying •ith the Bboveaentionad description Subscriber U na audio-processing circuit (SLAC) of C-MOS technology, coaprising 2 digital signal processors, at least 1 analogue-to-digite I converter and at least 1 digitsl-to-Bnalogue converter, in the fora of a aonolithic integreted circuit contained in a houeing bearing: - an identification marking consisting of or including (one of) the following combinetion(s): Aa 7991 Aa 7985 Aa 79C92 Aa 79C93 Aa 79C84 - other identification aarkings relating to devices coaplying «ith the aboveaentioned description Signet synthesiser of N-MOS (including H-MOS) technology «ith a frequency generetor, a aeaory of 15 instrumental tones, B digi lal-to-analogue converter end a quartz oscillator, in the fora of a aonolithic integreted circuit contained in a housing bear ing: - 8n identification aarkinq consisting of or includinq (one of) the following coabination(s): VM 2413 - other identification aarkings releting to devices coaplying •ith the aboveaentioned description Video processing circuit of C-MOS technology, heving aubpicture display (pictura-in-piclure) functions, in lha fora of a aonolithic integrated circuit contained in a housing baaring: - an identification aarking consisting of or including (one of) the following combi nation(s) : CXD 2631R CXD 2833 - other identification markings relating to devices coaplying •ith the aboveaantioned description 664 ex8S421399 «49 685 ex85421399 «SO 666 6x85421399 «51 697 ex85421399 «52 CN code TABIC Deecription Rate of aulonoaous duly (X) 668 ex85421399 «53 Audio decoder of C-N08 technology, copebla of decoding end decoepraeaing audio signets et a rata par eecond not exceeding 15 Hbita, fn tha fora of • aonolithic integreted circuit conteined in a houaing baaring: - an identification aarkinq coneieting of or including (one of) the following coabination(e): 74 ACT 6358 TN8 328AV126 - other identification aarkings relating lo devicee coeplying with tha abovaeantionad deecription 669 ex8S421399 ex85421998 «54 (21 Clock generetor, in the fora of e eonolithic integreted circuit conteined in a houaing baering: - an idantificetion parking coneieting of or including (one of) the following coebinetion(s): 618 ex85421399 «55 553 ex85421399 «56 554 ex85421399 «57 D4661CL 82 C 492 AV 9128 Bt 438 Bt 438 CXD 1635 CXD 1252 CXD 1255 CV 2254 CV 2255 CV 22ST CV 2291 CVTB891 CV7B992 CV7B893 DP 8531 DP 8532 DP 83241 ICD 2823 ICD 2827 ICO 2828 IC8 1394 IC8 2494 IC8 96C64 IC8 8161 LZ 93F31 LZ 83F33 LZ 83N61 RK 1418 HK 1442 MK 1448 MK 1458 M8M 5547 PCLK 1 PCLK 2 8C 11418 8C 11411 SC 11412 TCK 9862 «D 98 C 61 - other identificetion eorkinge releting to devicee coaplying «ilh the aboveeentioned description Circuit for the recording end reproduction of epeech of C-MOS technology, working et e epeed of 8 Kbite/eec or aore, «ith at laaat'ona of tha follow ing caracterietica: - a) coeprieing en aaplifier end e 18-bit digital-to-analogue converter, - b) coeprieing e eeeory interfece circuit, en encoding/decoding circuit, e centrel processing unit (CPU) inlerfece, - c) coeprieing e 12-bit digitsl-to-snalogue converter, in the fore of e eonolithic integreted circuit contained in a houaing beering: - en identificetion parking consisting of or including (one of) the following coebinetion(s): s)T 6666 s)TC 8836 b)TC 88481 c)H5H6388 - other identificetion eorkinge releting to devices coaplying aith tha aboveeentioned deecription Duel onologue-to-digitol convsrtar end digitel receiver of C-MOS technology, coeprieing en error correction end signal decoding circuit, in the fore of a aonolithic integrated circuit containad in a houeing bearing: - an identification eerking conaiating of or including (ona of) the following coabination(a): AD 6462 other identificetion aarkings rslating to devices cosplying with the ebovoeentioned deecription Deaodulator of C-H08 technology,. cepeble of receiving end deeoduleting s dsts etreoe with s transfer rete of 38 Mbils/s, in the fora of a aonolithic integreted circuit containsd in a houaing bearing: - an identificetion eerking conaiating of or including (one of) the following cosbinstion(s): NDV 9986 #" CN code TAR1C Daacription Rata of a u l o n o a o uB duty (X) other idantification aarkings ralating to devices coaplying «ith tha abovsaenlioned daacription 284b 8x85421481 «81 Vafar, not yat cut inlo chipa, onlu for uaa in Ihe aanufactura of gooda of aubhaading 85421415 to 8 5 4 2 1 4 4 2. 85421475 or 85421486 (a) 284a 8 x 8 5 4 2 1 4 85 «81 Monolithic intagratad circuit not contained in a housing ( c h i p ), onlu for usa in lha aenufaclura of goods of subheading 85421415 to 8 5 4 2 1 4 4 2. 85421475 or 85421486 " (8) 614 8 x 8 5 4 2 1 4 56 «61 615 ex85421458 «82 616 6x85421456 «03 617 6x85421458 «64 618 e x 8 5 4 2 1 4 58 «95 Error correction and dataction unit (ECDU) of bipolar tachnotogy, in tha fora of a aonolithic integrated circuit containad in a houaing baaring: - an idantification aarking consisting of or including (one o f) the following c o m b i n a t i o n ( s ): 2966 54 AS 632 54 AS 634 74 A8 632 74 AS 634 74 A8 6364 74 F 636 74 F 631 74 L8 638 74 LS 631 DP 8488 other identification aarkings ralating to devices coaplying «ith the aboveaantioned daacription Control end/or aanageaent circuil for memories (including b u f f e r s) of bipolar technology, in the form of a aonolithic integrated circuit contained in a housing beering: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): AM 2965 AM 2966 DP 8488 DP 8489 DP 8419 DP 8428 DP 8429 MB 1422 SN 74 S 489 other identification aarkings relating to devices complying aith the aboveeentioned description Control circuit for disc storage units of bipolar technology, in the fore of a aonolithic integrated circuit contained in a housi ng beer i ng: - an identification aarking consisting of or including (one of) the following c o e b i n a t i o n ( s ): AmMPA 1858 other identification markings relating lo devices complying with the aboveeentioned description Controller of bipolar technology, for controlling read/write signals froa aagnetic heads in disc storage units, in the fora of a eonolithic integreted circuit contained in a housing beer ing: - an identification eBrking consisting of or including (one of) the following c o e b i n a t i o n ( s ): 32 R 2826 R 32 R 2821 R 32 R 516 A 32 R 5121 32 R 522 other identification aarkings releting to devices complying with the abovaaentioned description Bus interface circuit of bipolar technology, in the fora of a aonolithic intagratad circuit contained in a housing bearing: - an identification asrkinq consisting of or including (one of) the following c o m b i n a t i o n ( s ): 82 A 283 82 A 284 82 A 285 82 A 383 82 A 364 82 A 385 82 A 436 82 A 442 AM 29821 AM 29822 AM 29823 AM 29824 AM 29825 AM 29826 AM 29843 AM 29844 AM 29845 RVT 121 0< CN coda TARIC Description Rate of autonomous duty (X) 619 8x85421458 «66 636 6x85421458 «88 626 ex85421466 «61 631 ex85421491 «61 632 ex85421491 «63 633 ex85421491 «64 othsr identificetion eorkinge releting to devicee coeplying •ith the ebovoeentioned deecription Anologue-digilet eonolithic integreted circuit of bipoler technology for interfece eignele b e U e sn the herd-diec, sssory unit snd tha central proceeeing unit (CPU), conteinad in s housing beering: - en identification aarking coneieting of or includinq (one of) the following coebinstion(s): AD 581 C - other identificetion aarkinge releting to devices coeplying with the eboveeentioned deecription Power eupply control circuit for a aicrocontroller or aicrocoaputar, of bipoler technology, in the fore of e eonolithic integreted circuit conteined in e houeing beering: - en identificetion aarkinq coneieting of or including (one of) the following coebinetion(e): AN 8369 other identificetion earkings ralating to devices cosplying •ith tha aboveaantioned deecription Control circuit of TTL technology, for the firing of sagnstic print haaeara, in tha fora of a aonolithic intsgrated circuit containad in a houaing beering: - an identification eerkinq consisting of or including (one of) the following cosbination(s): 861379-992 816751-681 - other identificetion earkinga releting to devices cosplying «ith the abovBBantioned description Control circuit of bipolsr technology, cepeble of driving laser diodes or othsr light-ssitting diodss (LEDs), in ths fors of a aonolithic intagrstsd circuit contained in a housing baaring: - an idantification aarking conaiating of or includinq (ona of) tha following coabination(s): IDA 87318 othar idantificstion ssrkings rslating to devices complying with ths sbovBssntionsd dsscription Control circuit of bipolsr tschnology, cspabls of controlling 2 discrets po»«r field-effect trensistor (FET) devices, in the fera of a sonolithic intagratad circuit containad in a housing bear ing: - an idantification aarking conaiating of or including (one of) tha fotlo«inq cosbination(s): 27473 idantification aarkinga ralating to davicaa coaplying tha ebovoeentioned deecription Driver circuit for «rite signsls for sagnalic taps storage units, of bipolsr tschnology, in ths fora of a aonolithic intagratad circuit containad in a houaing baaring: - an idantification aarkinq conaiating of or including (one of) tha follo»ing coabination(a): VT 211 t<r CN coda TABIC Dascription Rate of a u t o n o s o us duty (X) 634 8x85421481 (85 635 ex85421491 (66 636 ex85421491 «87 637 ex85421491 «98 649 6x85421499 «93 641 ex85421499 «94 - othsr idsntificstion Barkings ralating to devices cosplying «ith the B b o v s B s n t i o n ed dascription Control circuit of bipolar technology, capable of driving a PNP po«er transistor, having a 5 V a l e n d b y - p o » e r - r B g u l a l i on and a 2,5 V po«ar output r e f e r e n c e, in the fore of a aonolithic inlsgrslsd circuit containad in a houaing bearing: - an identificetion aarking consisting of or including (one o f) the following c o a b i n a t i o n ( s ): 7615 FB other identification aarkinga ralating to devices coaplying «ith the a b o v a a a n t i o n ad description Control circuit of bipolar tachnotogy, capable of driving 2 p u l B B - c o d e - B o d u t a l i on U n as at a transfer rste not Exceeding 16 N b i t s / s, in ths containsd in s housing b s s r i n g: - sn idsntification sarking consisting of or including (one of) ( o ra of s eonolithic integralsd circuit the following c o a b i n a t i o n ( s ): XRT5675 other identification aarkinga releting to devices coeplying «ith the a b o v e a a n t i o n ed description Interfece and control circuil of bipolar technology, for interfacing a i g n a ls between data processing sachines snd coaxial cable in a local area network ( L A N ), in the fora of a aonolithic integrated circuit containad in a houeing beering: - an identification aarking consisting of or including (one of) the following c o m b i n B t i o n ( s ): AM 7996 DP 8392 other identificetion aarkings relating to devices complying aith the a b o v e a e n t i o n ed description Interface circuit for the synchronisation of data flow froa a disc storage unit, in tha fora of a aonolithic integrated circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) the following c o m b i n e t i o n ( s ): DP 8462 other identification aarkings relating lo devices complying with the a b o v e m e n t i o n ed description Transaillar of bipolar technology, providing e n c o d i n g / c o n v e r s i on of parallel data/commands into serial foraat, in the fora of a aonolithic intagrated circuit contained in a housing b e a r i n g: - an identification aarking consisting of or including (one of) the following c o e b i n e t i o n ( s) : AH 79168 AM 7968 AM 79865 other i d e n t i f i c a t i on aarkings relating to devicee complying with lha a b o v e e e n t i o n ed dascription Receiver of bipolar tachnotogy, providing d e c o d i n g / c o n v e r s i on of serial d a t a / c o m m e n ds into parallel foraat, in the form of a aonolithic integratad circuit contained in a housing beering: - an identification aarkinq consisting of or includinq (one of) the following c o e b i n a t i o n ( s ): AM 79169 AM 7969 AM 79866 rr CN code TARIC DBacription Rats of autonomous duty (X) 642 ex85421499 «65 643 ex85421499 «87 644 ex85421499 «68 645 ex85421499 «99 646 ex85421499 «19 647 8x85421499 «11 othsr identification aarkinge relating to devicee coaplying with the abovaaanlioned deecription Tranaaitter or receiver of bipoler technology, cepeble of serial date coaaunicetion at a rate of 118 Nbite or eore but not exceeding 1,4 Gbile per second, in the fora of a aonolithic integreted circuit contained in a houeing beering: - en identificetion parking coneieting of or including (one of) the following c o e b i n e t i o n ( e ): HDHP 1682 HDHP 1864 other idantificetion eorkinge releting to devicee coeplying with the aboveeentioned deecription Pulse-code-aodulation (PCN) trar. seitter/receiver of bipolar tachnotogy, cspsbls of connecting (toroineting) line retee of 2648 or 8448 Hbite per eecond, in the fore of e eonolithic intagratad circuit conteined in a houeing beering: - an identification aarking coneieting of or including (one of) the following c o a b i n a t i o n ( a ): XRT 5683 XRT 56L85 other identification aarkinge releting to devices cosplying with the abovaaentioned deecription Audio digital-to-enelogue converter of bipoler technology, with a dynaaic ranga of 96 dB or eore, coeprieing en internet voltage reference, in the fore of a aonolithic integreted circuit contained in a houaing beering: - sn identificstion eerking coneieting of or including (one of) the following c o e b i n e t i o n ( s ): PCM 63P other idenlificstion Barkings ralating to devices cosplying with the aboveaentionad daacription 12-bil anelogue-lo-digital converter of bipoler technology, incorporating a voltaga rafersnca snd clock, in the fore of a aonolithic integrated circuit containad in a houeing baaring: - an identification aarking conaiating of or including (ona of) the following c o e b i n e t i o n ( a ): AD 574 A other identification aarkinga releting to devicee coaplying with the aboveaentionad description 9-bit analogue-lo-digital convartar of bipolar tachnotogy, in the fore of a aonolithic integrslad circuit containad in a housing bearing: - en identification asrking consisting of or inctuding (one of) the following c o a b i n a t i o n ( a ): TDC 1649 - other identification aarkings rslating to devicaa coaplying aith ths abovaaantionad daacription 12-bil digilal-lo-analogua convarter of bipoler technology, in the form of a aonolithic integratad circuil contained in a hous i ng bear ing : - an identificetion aarking conaiating of or including (one of) the following c o a b i n a t i o n ( a ): TDC 1812 8S CN code T A R IC Deecription Rale of autonoaous duly (X) 648 8 x 8 5 4 2 1 4 98 «13 - other identificetion eorkinge releting to devices cosplying •ith the ebovoeontionod deecription 6 16-bit digitel-to-enelogue converter of bipoler technology, coaprising an internet voltege référença, in the fore of a eonolithic integreted circuit conteined in e housing bearing: - sn idsntificetion BBrkinq consisting of or including (ona o f) the follo«inq c o e b i n s t i o n ( s ): DAC 712 649 6 x 8 5 4 2 1 4 99 «14 656 ex85421499 (15 651 e x 8 5 4 2 1 4 99 (16 652 B X 8 5 4 2 1 4 99 (17 653 6 x 8 5 4 2 1 4 89 (18 - other identificetion eorkinge releting to devices cosplying •ith the ebovoeentioned deecription Progrsaaabla eeplifior of bipoler technology, for signsls on s digital coeaunicatione bua, in lha fora of aonolithic integrated circuit conteined in e houeing baaring: - en identificetion parking conaiating of or includinq (one of) the following c o a b i n a t i o n ( s ): H8 3182 - other identification esrkings relating lo devices coaplying with ths sbovssantioned description Monolithic integreted circuit (read/write data processor circuit) for ths eepli f i cat i on and conversion of read signals and conversion of writs signals for disc storage units, conlsinsd in a housing bearing: - sn identification sarking consisting of or including (one of) tha following c o a b i n a t i o n ( s ): 32 P 3888 32 P 3613 32 P 548 32 P 541 61347-662 - other identification aarkings relating to devices complying •ith the abovaaentioned description Deaodulator/tone-decoder of bipoler technology for frequency decoding, in the fora of a aonolithic integrated circuit contained in e housing bearing: - sn identificstion marking consisting of or including (one of) the following c o s b i n a t i o n ( s ): XR 2211 - other identification aarkings relating to devices coaplying aith the eboveeentioned description 2-, 4-, 6- or 8-ch8nnal read/write signal generetor for disc storsga units, in tha fora of a aonolithic integrated circuit contained in e housing bearing: - sn identification aarkinq consisting of or including (one of) the following combination(s): 32 R 117 32 R 561 - othar idantificstion aarkings releting to devices complying with ths abovaaentioned daacription Function gsnerstor of bipolsr tschnology for the generation of variable «ove-fores, in tha fora of a aonolithic inlegrated circuit containsd in s housing bearing: - an idantification marking consisting of or including (one of) ths following c o s b i n s t i o n ( s ): XR 2266 XB 8838 >ther i d e n t i f i c a t i on a a r k i n gs r e l a t i ng to d e v i c es c o a p l y i ng CN code TABIC Deecription Rate of o u l o n o a o ua duty (X) 654 8x85421499 «19 655 6x85421499 «26 656 ex85421499 «23 657 ex85421499 «24 658 ex85421499 «25 659 ex85421499 «26 with the eboveoenlioned description Date-synchroniser for tape-reeding units of bipolsr technology, in the fore of e eonolithic integreted circuit conteined in e housing basring: - an identification aarking consisting of or includinq (ona o f) tha following c o a b i n a t i o n ( a ): VT 218 - other identificotion earkinga releting to devicee coeplying «ith the ebovoeentioned deecription Data eynchronieer and encoder/decoder of bipoler technology, in ths fors of s sonolithic integrotad circuit contained in e housing bearing: - sn idantificetion aarking consisting of or includinq (one o f) the following c o s b i n a t i o n ( s ): 32 D 532 32 D 535 32 D 5393 - other identificstion aarkings relating to devicee coeplying «ith the abovaaentioned description Digitise snd dsta-ssparstion circuit of bipolar technology, coaprising a phase-locked loop circuit, in the fore of a aonolithic integrated circuit containad in a houeing beering: - an identification aarkinq consisting of or includinq (ons o f) '. he following combinet ion(s) : SN 28962 - other identification aarkings relating to devices cosplying «ith the abovesentioned description Differential crosspoinl switch of bipolar tachnotogy, capable of switching at a dais rate per second of 868 Kbits, in ths fors of >3 aonolithic integrated circuit contained in e housing bear ing: - an identification marking consisting of or including (ona o f) the following c o m b i n e t i o n ( s ): S 2824 - other identification markings releting to devices coaplying with the aboveeentioned description Decoder of bipolar technology, for chrominance signal decoding, in the fora of a aonolithic integrated circuit contained in a housing bearing: - an identificetion aarking consisting of or including (one o f) the following c o m b i n e t i o n ( s ): M52725FP - other identificetion eerkings releting to devices cosplying with the 8boveaentioned description Clock distribution circuil of bipolar tachnotogy, «ith inputs for tranaiator-transiator logic (TTL) aignsla or saitter-couplad logic (ECL) aignala and outputs for tranaiator-transiator logic (TTL) Bignals, in the fora of a aonolithic integrated circuit contained in a housing beering: - an identification aarking consisting of or including (one o f) the following combination(s ) : 63G9269 64G81I2 MC 188H648 MC 186H641 MC 188H644 MC 18H648 HC 16H641 HC 18H644 /< o CN coda TARIC Daacription Rate of autonomous duty (X) 666 ex85421499 «27 661 ex85421489 «28 662 ex85421499 (29 663 ex85421499 (39 664 ex85421499 (31 638 ex85421499 (32 othar idantificetion aarkinge relating to devices complying «ith the eboveeentionod deecription Traneeitter/receiver of bipoler technology, for bidirectional différentiel buaaa, in the fore of o eonolithic integretad circuit conteined in a houaing beering: - en identificetion eerkinq coneieting of or including (one of) the following coebinetion(e): D8 36277 - other identificetion eorkinge releting lo devices cosplying with the ebovoeentioned deecription Tronsoittar/raceiver of bipoler technology, capable of convsrting data into eeriet or perellel forest snd serial data tranefor et a rata not exceeding 268 aegabytes per second, in the fore of e eonolithic integreted circuit contained in a houeing beering: - en identificetion eerking consisting of or includinq (one of) ths following cosbinstion(s): HC 1688X1451 othsr idsntificstion Barkings relating to devices coaplying «ith the abovaaentioned deecription Transeitter/recaivar of bipolar technology, capable of data transsission over a t«istsd-psir cable, in ths fors of a sonolithic intagratad circuit containad in a housing bearing: - an identification Barking consisting of or includinq (one of) the following cosbinstion(s): As 26LS38 DP 83226 - othsr identification aarkinga ralating to devices coaplying «ith tha sbovasentionsd dascription Prsscslsr of bipolar tachnology, having an input frequency not axcaading 2,8 GHz and a aelecteble 32/33, 64/65, 64/128 or 128/129 divide ratio, in the fora of a aonolithic integrated circuit containad in a housing bearing: - sn identificetion sarking consisting of or including (one of) the following coebinetion(s): MC 12622 MC 12832 HC 12634 MC 12852 HC 12853 MC 12689 SC 12822 - other identification eerkings relating to devices coeplying «ith tha abovaaanlioned description Receiver/lransaitier of Scholtky tachnotogy, for Manchester-coded dsts, in Ihs fora of a aonolithic intagrated circuit containad in a houaing bearing: - an identificetion aarkinq consisting of or including (one of) ths following coabination(a): TMS 38651 TH8 38853 TH8 38854 othar idantification aarkinga ralating to devices coaplying •ith ths sbovBBBntionad dascription Bsdio frsqusncy (BF) transeiller/recaivsr, coaprising 2 aynthaaizara aach «ith a voltaga controlled oaciltator (VCO), 2 aixara and a aarial inlarfaca circuil, in lha fora of a aonolithic intagratad circuit containsd in s housing bearing: - sn idsntificstion sarking consisting of or including (one of) ths following co«bination(s): AD 6431 ?/ CN code TABIC Description Rate of autonoBous duty (X) 665 Bx85421961 (61 666 8x85421981 «82 667 ex85421991 «63 668 6x65421881 «64 669 ex85421901 «95 - othar identification aarkinga ralating to devicaa coaplying •ith the sbovsaentioned description Wafsr, not yat cut into chipa, of gsllius srssnids (GaAs) saaiconductor astsrisl, consisting only of clock snd dats recovery circuits, for U SB in ths ssnufsctura of goods of subhBsding 85421998 contained in a housing beering: - en identification aarking consisting of or including (ona o f) the following c o a b i n a t i o n ( s ): GD 16642 GD 16643 other idantificetion aarkinga ralating to davicaa coaplying with the BbovBBenlioned description (s) Wafsr, not yet cut into chips, of gsllius srssnids (GaAs) BBBJconductor aaterial, conBisting only of eultiplexer circuila, capable of eu 11 i plex i ng 4 data flows into a single data flow, coaprising s phsss-locked loop (PLL) circuit and laser dioda drivers, for usa in the aanufacture of goode of subheading 85421998 containad in a housing bearing: - an identificetion Barking consisting of or including (ona of) the following c o a b i n a t i o n ( s ): GD 16854 - other identification aarkings relating lo devices coaplying with the abovamentionad deecription (a) Wafer, not yet cut into chips, of galtiua arsenide (GaAs) saaiconductor eeterial, consisting only of transaittar/racaivars, providing serial data coaaunication at a rata of 622 Mbits par second, for use in the aanufactura of goods of subhssding 85421998 contained in a housing bear ing: - sn identification aarking consisting of or including (onu of) the following coabination(s): GD 16664 - other identification aarkings relating lo devices coaplying aith the aboveaantioned description (a) Wafer, not yet cut into chips, of galtiua arsenide (GaAs) semiconductor aaterial, consisting only of dual buffers for ECL/TTL level signsls, for use in the sanufeclure of goods of subheeding 85421998 contained in a housing bearing: - en identification sarking consisting of or includinq (one of) the following c o s b i n a t i o n ( s ): GD 16225 - other identificetion markings relating to devices complying with the abovaaentioned description (a) Wafer, not yet cut into chips, of galtiua arsenide (GaAs) semiconductor material, consisting only of multiplexers or demultiplexers, providing differential ECL level data input/output at a rata of 622 Mbils per second and TTL inpul/outpul aignals at a rate of 78 Mbils per sscond, for use in ths ssnufsctura of goods of subhssding 85421998 contained in s housing bearing: - an identification marking consisting of or includinq (ona of) the following combination(s): GD 16131 GD 16132 other identification aarkings relating to devices coaplying «ith the aboveaentioned description (a) CN code TABIC Description Rate of autonomous duty (X) 284c ex8542I991 (12 Wefer, not yet cut into chipe, onlu for U BB in the eenufecture of gooda of eubheeding 85421922 to 85421962. 85421882 or 85421884 (a) 678 ex85421965 (61 671 ex85421965 (82 672 G X 8 5 4 2 1 9 05 «63 673 ex85421S85 «64 674 ex85421905 «65 Control end interfece circuit of BiH08 technology, capsble of controlling eoaeunication batweon a eicroprocaaaor, bus control circuite and a aeaory control circuit, in the fore of a aonolithic integrated circuit not conteined in e houoing (chip), for ueo in the aanufecturo of goode of eubheeding 85421971 conteined in a houeing beering: - en identificetion eerkinq coneieting of or including (one of) the following coebination(a): 16G7432 1667433 5666759 5968761 - other identificetion earkinga releting to devices cosplying with tha ebovaaantionod deecription (s) Bus control circuit of 6iH08 tachnology, in tha fors of s sonolithic integrated circuit not containad in a housing (chip), for usa in the aanufecturo of goode of subhssding 85421971 conlsinsd in s houeing beoring: - en idsntification aarking consisting of or including (one of) the following coebinetion(e): 1667429 1667436 5866755 58G6757 othar identificetion eerkinge rslating to devices cosplying •ith ths ebovoeentioned dascription (a) Maeory control circuit of 6iH08 tachnology, in the fore of a aonolithic intsgrstsd circuit not contained in a housing (chip), for uss in ths aenufacturB of goods of subheading 85424898 containsd in s housing beering: - sn idantificstion sarking consisting of or includinq (one of) ths following cosbinstion(s): 16G7428 16G7463 other identification esrkings rslsting to devices coaplying «ith ths sbovsssntionsd dascription (a) Meaauraaanl circuit of galtiua arsenide (GaAs) saaiconductor material, capable of aaasuring signal propagation tiaes on transaission linee, coaprising 2 ssynchronous counters, 4 coeparalors, s clock generator and an oscillator, in the fors of s aonolithic integrsted circuit not contained in a housing (chip), for usa in ths ssnufsctura of goods of subheading 85421998 conlsinsd in s housing beering: - sn idantificetion Barking consisting of or including (one of) the following coabination(s): GIGA TDR other idantification aarkinga relating to devices coaplying «ith the sbovaeentionad dascription (s) Clock and data recovary circuit of galliua arsenide (GeAs) seeiconduclor aatsrisl, in the fore of a aonolithic integrated circuit not containad in a houaing (chip), for use in the «anufscturs of goods of subhssding 85421998 contained in a houaing baaring: - an idantification Barking consisting of or including (one of) tha following cosbinstion(s): GD 16842 GD 16643 othsr identification eerkings relating to devices coeplying with ths sbovBssntionsd dascription (a) CN coda TARIC Dascription Rata of autonoaous duty (X) 675 8x85421985 «86 676 8 x 8 5 4 2 1 9 85 «67 677 8x85421985 «68 284f ex85421985 «18 693 ex85421972 «91 694 8x85421972 «62 Trsnsaittar/racaiver of gsllius srssnids (GaAs) saaiconductor salarial, providing synchronous/asynchronous data communication at a rats par aacond of 622 Mbits or mora but not exceeding 2,5 Gbits, in ths fors of a aonolithic integrated circuit not containad in a houaing (chip), for uaa in the aanufacture of gooda of eubheeding 85421998 contained in a housing bear ing: - an idantification aarking consisting of or including (one of) the following c o s b i n s t i o n ( s ): GIGA BOA GIGA NATCH - other identification aarkings relating to devices coaplying «ith tha aboveaantioned description (a) Multiplexer of galtiua arsenide (GeAs) semiconductor material, cepabla of aultiplaxing 4 data flows into a singla data flow, coaprising s phase-locked loop (PLL) circuit and laser diode drivers, in ths fora of a aonolithic integrated circuit not containad in a houaing (chip), for uae in the aanufacture of gooda of subheading 85421998 contained in a housing bear ing: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): GD 16854 other identification aarkings relating to devices complying with the aboveeentioned description (a) Divider/detector circuit of gallium arsenide (GaAs) saaiconductor aaterial, capable of synthesizing frequencies in Ihe ranga of 58 MHz to 1788 MHz, comprising e prescaler, a frequency divider end a phase/frequency detector, in the fora of a aonolithic integrated circuit not contained in a housing ( c h i p ), for use in the aanufacture of goods of subheading 85421998 conteined in a housing bearing: - an identification Barking consisting of or including (one of) the following c o a b i n e t i o n ( s ): GIGA FSS other identification aarkings relating to devices coaplying aith the aboveeentioned description (a) Monolithic integrated circuit not contained in a housing ( c h i p ), onlu for use in the aanufacture of goods of subheeding 85421922 to 85421962, 85421982 or 85421984 (a) Flow eater interface of BiMOS technology, coaprising 16 aaplifiers, 3 digiIsl-to-snalogue converters, an a n a l o g u e - t o - d i g i t al converter, filters, a saaple and hold circuit, an oscillator, s phase locked loop (PLL) circuit and a eerial inlerfBce circuit for a eicroprocessor, in the fora of 8 sonolithic integrated circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): AD7S827 - othar identification aarkings relating to devices coaplying with the aboveeentioned description D i g i t a l - t o - a n a l o g ua and analogue-to-digilal converter of BiMOS technology, coapriaing aaapla and hold circuits, in the fora of a aonolithic integrated circuit contained in a housing beering: - en identification aarking consisting of or including (one of) the following c o m b i n s t i o n ( s ): 21-26588 ?Y CN code TARIC Description Rate of autonomous duty (X) 695 8x85421972 «63 699 ex85421992 «92 700 ex85421992 «84 703 ex85421998 «81 764 ex85421998 «63 othsr idantificstion esrkings relating to devices cosplying «ith the eboveoentionod description Circuit of BiH08 technology, for the racording end reproduction of dsts, opereting et e rete not exceeding 112 Hbits/sec, coaprising an encoding circuit, a decoding circuit, en enelogue-to-digitel converter, a digital aquelieer filter and a randoa-acceae eeeory (RAN), in the fore of o eonolithic integreted circuit conteined in e houeing beering: - en identificetion eerking coneieting of or including (one of) tha following coabinationta): 64G6166 (8189294) - other identificetion eorkinge releting to devicee coaplying •ith tha aboveeentioned deecription Driver circuit of gotliua areenide (GaAe) eoeiconductor aaterial, for controlling laaar diodoe or othar light-eaitting diodea ( L E D a ), in tha fore of a eonolithic integretad circuit containad in a houeing beering: - sn identification aarking conaiating of or including (one of) the following coabination(s): 16G875 166876 other identificetion eorkinge releting to devices coaplying with the aboveaentioned deecription Subscriber lins intsrfacs circuit (8LIC) of dielectric isolation technology, «ith en internet progreeeed constant line current, coeprieing a rasiator nat«ork and an oparational amplifier, in the fore of e eonolithic integrated circuit contained in a houaing bearing: - an identification aarking consisting of or including (one of) the following coabination(a): HC 5562 HC 5584 other identification aarkings rslating to devices cosplying «ith ths abovaaentioned dascription Analogua-to-digital aignal convartar, coaprising aeplifiers, digital-to-analogue end oneloguo-to-digitel converters «ith a supply voltege of 12 V (±18 X) end e digital asrial interface •ith an asynchronous racaiver/tranaeitter, in the fore of a aonolithic integreted circuit conteined in a housing bearing: - an identification aarkinq conaiating of or includinq (one of) the following cosbinstion(s): AD 75682 - othsr identification aarkinga releting to devices cosplying «ith ths sbovsBsntionad dascription Frequency aynthaaiaar of BiH08 technology, cepabla of synchronising snd dividing of frsqusnciss, cosprising 1 or 2 phsse-locked loop circuits Bnd 1 or 2 prsscslsrs «ith sn operating frsqusncy of 18 HHz or eore but not exceeding 2,5 GHz, in the fore of e eonolithic integreted circuit contained in a housing bsaring: - an idantification sarking consisting of or includinq (one of) the following coabination(s): MB 1581 HB 1582 HB 1569 HB 1511 HB 1518 other identification eerkings rslating to devices coaplying •ith the ebovoeentioned deacription e r CN code TABIC Deecription Rate of sulonosous duly (X) 765 8x85421998 «94 Encoder/decoder of BiH08 technology, providing data conversion snd seperetion end e dote trenefer rete of 58 Mbils per second, coeprieing e reed pulee detector end e frequency s y n l h s s i s s r / s y n c h r o n i s s r, in the fore of s sonolithic integreted circuit conteined in e houeing beering: - en identificetion eerking coneieting of or includinq (one of) the following c o e b i n e t i o n ( e ): HD 153831 RF 766 ex85421998 «65 767 ex85421998 «16 768 ex85421998 «11 769 ex85421998 «13 718 6x85421988 «16 - other identificetion eorkinge releting to devices coaplying «ith the ebovoeentioned deecription Clock recovery circuit, in the fore of a aonolithic integrated circuit contained in e houeing beering: - en identificetion eerking consisting of or including (one of) the following c o a b i n a t i o n ( s ): DP 83231 - other identification aarkings ralating to devices coaplying « i th the aboveaentioned description Hall affect sensor of BiMOS technology, capable of coseunicating over a 2-«ira bus, in the fors of s aonolithic intagratad circuit containsd in s housing beering: - an identification aarking consisting of or including (one of) the following c o a b i n s t i o n ( s ): UGN 3655U UGS 3655U - other identification aarkings relating to devices complying with the aboveaentionad description Trsnsaitter or receiver of gsllius arsenide (GaAs) saaiconductor aaterial, in the fora of a aonolithic ir. tegrated circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) the following c o m b i n â t i o n ( s ): GA 9611 GA 9812 - other identification aarkings releting to devices coaplying aith the abovaaentioned description D i g i t a l - l o - a n a l o g ua converter of gatliue arsenide (GaAs) semiconductor material, in the form of a aonolithic integrated circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) tha following c o e b i n s t i o n ( s ): TO 6122 - other identification aarkings relating to devices coaplying with the abovsmenlioned description Clock and data recovery circuit of galtiua arsenide (GaAs) semiconductor sstsrial, in ths fors of a aonolithic integrated circuit containad in a houaing baaring: - an identification sarking consisting of or includinq (one of) the following c o s b i n a t i o n ( s ): 16G848 - other identification aarkinga relating to devices coeplying with tha aboveeentioned description ?/ CN code TAR1C Description Rate of autonomous duty (X) 711 ex8S421998 «17 Comparator circuit of gsllius srssnids (GsAs) eeeiconductor aster i B I, for phase end frequency differencee of frequenciee not exceeding 1 GHz, in the fore of e eonolithic integrated circuit contained in s housing bssring: - sn ide ificstion eerkinq consisting of or including (one of) the following coebination(a): 16G844 697 ex85421998 «19 713 ax85421998 «29 714 ex85421998 «22 715 ex85423616 (81 - other identification eorkinge releting to devicee coeplying with the aboveaentioned deecription Transeitier/receiver of BiH08 tschnology, in the fora of a aonolithic integreted circuit conteined in e houeing beering: - an identification aarkinq coneieting of or including (one of) the following coabinetion(a): 74ABT543 CV7B8392 CV7B923 CV7B933 CV7B955 CV7B956 D8 36858 D8 3884 DS 3886 SN 74 BCT 2428 8N 74 BCT 2423 8N 74 BCT 2424 8N 74 BCT 2425 8N 75 LBC 876 - other identification aerkinge releting to devicee coaplying with the aboveeentioned description Quadruple digital-to-analogua convarter «ith e cepecity of 12 bits, of BiMOS technology, in the fore of a eonolithic integrated circuit conteined in e houeing baaring: - an identificetion aarking consisting of or including (ona of) the following combinationts): AD 664 - other identification aarkings rslating to devices coaplying with the aboveeentioned description Clock generator/buffer of galtiua arsenide (GaAs) saaiconductor aaterial, capable of frequency synchronisation or multiplication, in the fora of a aonolithic intagrated circuit contained in a housing bearing: - an identification aarking coneieting of or including (one of) tha following coabination(s): GA 1999 GA 1885 GA 1986 GA 1887 GA 1688 GA 1888 GA 1116 GA 1218 - other identification eerkings relating to devices coaplying with the aboveaentioned deecription Wafer, not yet cut into chipa, of galtiua arsenide (GaAs) sesiconductor material, conaiating only of traneimpedence aaplifiers, opereting at a bandwidth of 988 MHz, having a resistance not exceeding 4 kOha, for uaa in the eenufecture of goods of subheading 85423838 conteined in e housing bearing: - en identification aarking consisting of or including (one of) the following cosbinstion(s): GD 16885 other identification aarkings rslating to devicaa coaplying with the aboveaentioned deecription (a) CN code TABIC Deecription Rate of autonoaous duty (X) 716 6x85423818 «82 717 0x85423616 «83 718 8x85423818 «64 719 ex85423616 «65 728 8x85423818 «86 Vefer, not yet cut into chipa, of gsllius arsenide (GaAs) asaiconductor satsrial, consisting only of laser diode control circuits, providing an output currant in a rangs of 16 sA to 76 aA at a power eupply of -5 V (tl X ), for usa in the aanufacture of goods of eubheoding 85423678 conteined in e housing beering: - en identificetion eerkinq consisting of or includinq (one of) the following c o a b i n a t i o n ( a ): 6D 16877 - other identificetion eorkinge relating to devices coaplying «ith the oboveeentioned description (s) Wsfsr, not yet cut into chips, of gsllius srssnids (GaAs) seeiconductor asteriat, consisting only of seplifiers «ith a typical output po«ar of 25 dBs in a fraquancy range of 1856 HHz to 1959 HHz, coapriaing ridiofraquency (RF) switches, for uaa in tha eenufecture of gooda of subheading 85423838 contained in e housing bearing: - en idsntificstion ssrking consisting of or including (one of) ths following c o e b i n m t i o n ( s ): 60 12833 othsr idsntificstion eerkings releting to devices coaplying «ith tha aboveaantioned description (a) Wafer, not yet cut into chips, of galtiua arsenide (GaAs) saaiconductor aaterial, consisting only of dual aaplifiers «ith a typical gain of 18 dB at a frequency of 1,5 GHz, for use in tha aanufacture of goode of subheading 85423638 contained in a houaing baaring: - en identification aarkinq consisting of or including (one of) the following c o a b i n a t i o n ( s ): GD 18812 other identification aarkings releting to devices coeplying aith the abovaaentioned description (a) 6 «afar, not yet cut into chips, consisting only of aaplifiers «ith an input current not exceeding 88 nA, for use in the aenufecture of goods of subheading 85423836 contained in a housing bearing: - an identification aarking consisting of or including (one of? the following c o a b i n a t i o n ( s ): INA 161 OPA 111 OPA 121 OPA 2111 - othar identification aarkings relating to devices coeplying with the aboveaentioned description (a) Wafer, not yet cul into chips, consisting only of seplifiers with a prograasabla gain factor, for use in the aanufacture of gooda of subhssding 85423838 conteined in a housing bssr ing: - an identification aarking consisting of or including (one of) the following c o m b i n a t i o n ^) : 36866 - othar identification aarkings relating lo devices complying aith tha aboveaantioned description (a) CN code TARIC Description Bate of autonomous duty (X) 721 ex85423616 «87 Wafer, not yet cut into chips, consisting of epeoch circuite of C-MOS technology, for uss in the eenufecture of goode of subheading 85423695 contsinad in a houeing beering: - an identification aarkinq conaiating of or including (one o f) the following c o e b i n a t i o n ( s ): AS 2529 AS 2531 722 ex85423829 «61 723 8x85423628 «62 724 ex85423G29 «63 725 ex8S423828 «84 726 2x85423626 «85 728 ex85423626 «97 737 ex85423638 «61 738 8x85423638 «62 other identification Barkings rststing to devices coeplying aith the abovaaentioned deecription (o) Amplifier, in the fore of a aonolithic integreted enologue circuit not containad in a houaing ( c h i p ), for uee in the aanufacture of producta falling within eubheeding 882148 88 (a) Aaplifier of bipolar tachnology, for tha asp11ficetion of read/writa aignala of thin file eegnetic hoede, in the fore of a aonolithic integrated analogue circuit not conteined in e housing (chip), for use in the ssnufsctura of diec etorege units (8) FM receiver/amplifier of bipoler technology, in the fore of en aonolithic integrated analogua circuit not contained in a housing ( c h i p ), for use in the eanufactura of producta falling within subheeding 96214886 (a) Audio recording/reproducing circuit of C-H08 technology, capable of direct analogue storage of eudio dote, coeprieing an electrically erasable, prograaeabla, reed only eeaory ( E2P S 0 M ), 3 aaplifiers, an autoaatic gain control circuit and 2 filters, in the fora of a aonolithic integrated analogue circuit not contained in a houaing ( c h i p ), for uaa in the aanufacture of clocks and watches (a) Control circuit of C-MOS tachnology, capable of driving inductive snd resistive loads, having 4 outpute with a current of 2 A or eore but not exceeding 7,2 A, in the fore of a monolithic integrated enalogua circuit not containad in a housing (chip), for the aanufactura of aotor control systems (a) Differential aaplifier of bipolar tachnology, «ith a gain not exceeding 375 and 8 noainal input voltaga of 1 eVpp, in ths fora of a aonolithic integratad analogue circuil not conteined in a housing ( c h i p ), for use in the eenufecture of products felling within heading No 847! (a) Microwave aaplifier of bipolar tachnology, «ith a noainal gain of 18 dB at 8,5 GHz or 32 dB at 8,8 GHz or 11 dB at 1 GHz or 22,5 dB at 1 GHz and 32,5 dB at 6,1 GHz or 26 at 1,5 GHz, in the fora of a aonolithic intagrated analogue circuit contained in a hous i ng bear ing: - an identification aarking consisting of or includinq (one of) the following coabination(a) : A-86 A-88 HPMX 3662 MSA 6311 N18 PC 16S2G other identificet ion aarkinga ralating to davicaa coaplying with the aboveeentioned description Quadruple aaplifier of C-MOS tachnology, «ith an input currant not exceeding 26 pA, in the fora of a aonolithic integreted analogue circuil contained in a houaing beering: - an identification aarkinq conaiating of or including (one of) the following combination(a) : LMC 666 other identification aarkings relating to devices cosplying «ilh the abovemenl ioned description Q n CN code TABIC Deecription Rate of autonomous duty (X) 739 6x85423838 «83 746 8x85423838 (84 741 ex85423838 «65 742 ex85423838 «66 743 ex85423838 «87 744 ex8S423838 «68 Aeplifier of bipoler technology, «ith e typicel eupply current not exceeding 1 eA et e voltege of 12 V end e teeperature of 25'C, in the fore of a aonolithic intagratad analogua circuit contained in a houeing beering: - en identificetion eerkinq conaiating of or including (one of) the following coebinetion(s): LH 1884 other idantificetion eorkinge releting to devices cosplying «ith the ebovoeentioned description Aeplifier of bipoler technology, with e typicel opersting frequency of 1,3 GHz, 2,3 GHz or 3 GHz snd a single supply voltege of 5 V, in the fore of s sonolithic integrated analogue circuit conteined in e houeing beering: - en identificetion eerkinq consisting of or including (one of) tha following c o a b i n a t i o n ( s ): C1D C1E C1F C16 C1H C1J other identificetion eorkinge relating to devices coaplying with the aboveaentioned deecription Aeplifier with en off-eet voltege not exceeding 18 aV at 25'C, in tha fore of e eonolithic integreted analogue circuil contained in a houeing bearing: - an identificetion eerkinq consisting of or includinq (one of) ths following cosbinstion(s): LT 1686 LT 1628 HC 33272 HC 33274 OPA 275 OPA 628 TLC2822 TLC27M2 - othsr idsntificstion aarkings relating to devices cosplying •ith the sbovBBBntioned description Aaplifier, in tha fora of a aonolithic integrated anatogue circuit containad in a houaing bearing: - an idantification aarking consisting of or including (one of) tha following coabination(s) : C 65 V 35 - othar identification aarkings relating to devices coaplying •ith the abovaaantionad description Theee devicee ere for use in the aanufacture of products falling •ithin eubhesding 99214868 (a) TrsnsiBpedencs ssplifier, «ith a typical gain of 72,5 dB al a frsqusncy of 758 HHz, in the fors of 8 sonolithic integreted snslogue circuit contained in a housing bearing: - an idantificetion aarking consisting of or including (one of) ths following combination(s): ITA 12318 - othsr idsntificstion markings relating to devices coaplying •ith the abovaaantionad dascription Aaplifier of gelliue arsenide (GaAs) saaiconductor aaterial, opersting «ithin s frsqusncy range of 828 MHz to 2,5 GHz, in the fore of o eonolithic integrated analogue circuit conteined in a houaing baaring: - an identificetion aarking consisting of or including (one of) tha following coabinstion(s): AWT 6969 AWT 1988 8RFIC48K62 s€<X<$ CN cods TABIC D e s c r i p t i on Rats of a u t o n o e o us duty (X) 745 e x 8 5 4 2 3 6 38 *69 746 6 x 8 5 4 2 3 6 36 «16 747 6 x 8 5 4 2 3 8 36 «11 748 e x 8 5 4 2 3 6 39 «12 749 6 x 8 5 4 2 3 9 38 «13 756 e x 8 5 4 2 3 0 38 «14 other i d e n t i f i c e t i on aarkinga relating to devicee c o e p l y i ng •ith the a b o v e a e n t i o n ed d e s c r i p t i on Amplifier «ith s typical gain of 18,5 dB at a frequency of 2 GHz end «ith en output power of 18 dBa (18 B W ), in the fora of o a o n o l i t h ic integreted analogue circuit containad in a houeing b e a r i n g: - an i d a n t i f i c e t i on aarking consisting of or including (one o f) the following c o s b i n a t i o n ( s) : MAR 3SH othsr i d e n t i f i c a t i on Barkings rslating to devicee c o e p l y i ng with the a b o v e a e n t i o n ed d e s c r i p t i on Video aeplifier of bipolar tachnology, with a bandwidth of 268 MHz, c o a p r i s i ng s contrsst control circuit, s coaparator and a voltaga reference circuit, in tha fora of a aonolithic integrated a n e l o g ue circuit containad in a houeing b e e r i n g: - an i d a n t i f i c a t i on aarking consisting of or including (ona o f) the following c o m b i n a t i o n ( a ): LM 1281 - other identification aarkings releting to devices c o a p l y i ng with the a b o v e e e n t i o n ed d e s c r i p t i on Amplifier with an input current not axcaading 88 rA, in the fora of a a o n o l i t h ic integreted analogue circuit containad in a hous i ng beBri ng: - an identifieelion aarkinq consisting of or including (one o f) the following c o m b i n a t i o n ( s ): INA 181 OPA 27 OPA 37 OPA 111 OPA 121 - other identification earkings releting to devices cosplying with the a b o v e e e n t i o n ed d e s c r i p t i on Video amplifier of bipolar technology, providing separate a m p l i f i c a t i on of red, green end blue (RGB) colour aignala, comprising at least s contrast control circuit and a c o a p a r a t o r, in the fora of a aonolithic integrated analogue circuit contained in a housing beering: - en i d e n t i f i c a t i on marking consisting of or includinq (one of) the following c o m b i n a t i o n ( s ): HA 11533NT LM 1282 LM 1283 LM 1285 LM 1288 other identification earkings releting to devices coaplying with the B b o v e m e n t i o n ed d e s c r i p t i on Variable a a p l i f i e rs for the range of frequencies of 18 Hz or aore but not exceeding 39 kHz, aith a gain of 85 dB or aore, in the fore of a aonolithic integrated analogue circuit contained i n a hous ing bear i ng: - an i d e n t i f i e s ! i on aarking consisting of or includinq (one o f) the following c o e b i n a t i o n ( s ): H 5218 - other identification markings relating to davicaa coaplying aith the a b o v e e e n t i o n ed d e s c r i p t i on T h e r e o c o u p le aaplifier for instruaenlation control at t e m p e r a t u r es from 8 to 56'C, incorporating an slsra systsa, in the form of s monolithic integreted analogue circuit contained i n a hous ing bear i ng: - an i d e n t i f i c a t i on marking consisting of or including (ona o f) the foltowing combinationt s ): J CN code TABIC Deecription Rate of autonoaous duty (X) AD 584 AD 595 751 8x85423638 «15 752 ex85423838 (16 753 ex85423638 «17 754 ex85423838 * 18 755 ex85423638 «19 757 ex8S423836 • 21 - othar identification aarkinge releting to devicee coeplying with the abovaaantionad deecription Aeplifier with a progroaaobla gain factor, in the fora of a aonolithic integratad anelogua circuit containad in a houaing beering: - en identificetion eerkinq coneieting of or including (one of) the following coebination(a): P6A 162 P6A 282 P6A 283 other identificetion eorkinge releting to devicee coeplying with the aboveeentioned deecription Logorithaic aaplifier, in tha fore of a aonolithic integrated eneloguo circuit conteined in a houeing beering: - on identificetion aarking consisting of or including (one of) the following coabinotion(o): AD 668 other identificetion eorkinge relating to devices cosplying with the ebovoeentioned deecription Audio eeplifior, with e voltsgs noise density not exceeding 168 nV/Hz st s frequency of 1 kHz, in the fors of a aonolithic intagrsted anelogue circuit conteined in a housing bearing: - an idsntificstion eerking consisting of or including (one of) the following cosbinstion(s): SSM 281? othsr identificetion earkings releting to devices cosplying • ith t!ve aboveeentioned description Variable gein eeplifier, in the fore of a aonolithic integrated analogue circuit conteined in e housing bearing: - an idantification eerking consisting of or including (one of) the following cosbination(s): AD 668 AD 682 other identificetion eorkinge relating to devices coaplying «ith the abovaaantionad dascription Asplifisr for procsssing rssd signsls in s storage unit, in the fore of e eonolithic integreted enalogue circuit contained in a housing bssring: • an identificetion eerking consisting of or including (one of) ths following cosbinstion(s): 1118684-81 - other identificetion eerkinge rslating to devices coaplying a;'1- tha aboveaantioned deecription Intareedieto frequency (IF) or FH aeplifier of bipolar technology, coeprieing e eixer, a receive aignal strength indicstor (B88I), e detector end en oscillator in the fora of a aonolithic integreted analogue circuit contained in a housing bearing: - an idantificetion eerkinq coneieting of or including (one of) the following coabination(s): CXA 1343 CXA 1744B 8A 667D SA 617D /fr*J CN c o de T A B IC D e s c r i p t i on Rale of a u t o n o a o us duly ( X) 758 8 x 8 5 4 2 3 8 38 «22 - othar i d e n t i f i c a t i on aarkinga relating to devicee c o e p l y i ng «ith tha a b o v e a e n t i o n ad d a a c r i p t i on 8 A a p l i f i ar of g a l t i ua a r e e n i de ( G a A s) s e e i c o n d u c l or a a t e r i a l, h a v i ng a n o a i n al gain of 15,4 dB or eore but not e x c e e d i ng 36 dB and a fraquancy ranga of not aora than 8 G H z, in tha fora of a a o n o l i t h ic intagrated enelogue circuit conteined in e h o u e i ng b e a r i n g: - an i d e n t i f i c a t i on aarkinq c o n s i s t i ng of or including (ona o f) the following c o a b i n a t i o n ( s ): 16G871 16G872 16G874 865 HGF 7131 759 8 x 8 5 4 2 3 6 36 «23 Audio a e p l i f i er of bipoler t a c h n o l o g y, «ith a typical gain of - othar i d e n t i f i c a t i on aarkings relating to devicee c o e p l y i ng «ith the a b o v a a a n t i o n ad d a s c r i p t i on 26 dB or aore but not e x c e e d i ng 47 dB in e frequency renge of 28 Hz to 28 k H z, in the fore of e o o n o l i t h ic integreted a n a l o g ua c i r c u il c o n t a i n ad in a houaing b a a r i n g: - an i d e n t i f i c a t i on aarking c o n s i s t i ng of or including (one o f) the following c o a b i n a t i o n ( s ): LM 3875 TA 281S 766 6 x 8 5 4 2 3 6 38 «24 S i n g l e, duel or q u a d r u p le aaplifier operating with a supply - other i d e n t i f i c a t i on aarkings relating to d e v i c es c o s p l y i ng with the a b o v e e e n t i o n ed d e s c r i p t i on current per aaplifier not exceeding 8 «A, in the fora of a a o n o l i t h ic integreted analogue circuit contained in a h o u a i ng b e e r i n g: - en i d e n t i f i c a t i on aarkinq consisting of or including (one o f) the following c o « b i n a t i o n ( s ): 814B 5W61 AD 826 LM 124 LM 224 LM 2992 LM 324 LS 494 LT 1678 LT 1879 LT 1178 LT 1179 MC 14573 MC 14574 MC 14575 MC 3383 MC 3483 MC 3563 OP 292 OP 492 731 e x 8 5 4 2 3 6 36 «25 D i f f é r e n t i el line amplifier, with a typical output currant of - other i d e n t i f i c a t i on markings releting to devices c o a p l y i ng with the a b o v e a e n t i o n ed d e s c r i p t i on 486 aA and a d i f f é r e n t i el p e e k - t o - p e ak output voltage of 48 V, in the fora of a a o n o l i t h ic integrated analogue circuit c o n t e i n ed in a housing bearing: - en i d e n t i f i c a t i on aarkinq c o n s i s t i ng of or including (one o f) the following c o e b i n a t i o n ( s) : AD 815 733 6 x 8 5 4 2 3 8 38 «26 Amplifier of gallium arsenide ( G a A s) seaiconduclor a a t e r i a l, - other i d e n t i f i c a t i on aarkings relating to d e v i c es c o a p l y i ng aith the a b o v e a e n t i o n ed d e s c r i p t i on having a frequency renge of 1,8 6Hz or aore but not e x c e e d i ng 2 GHz end an output power of 126 aW (21 d B a) or 398 aW (26 d B a) at en input power of 1 aW (8 d B a ), in tha fora of a a o n o l i t h ic intagrated analogue circuil containad in a h o u s i ng b e a r i n g: - an i d e n t i f i c a t i on aarking c o n s i s t i ng of or including (ona o f) the following c o e b i n a t i o n ( s) : RFIC 1866 RFIC 1887 other i d e n t i f i c a t i on markings relating lo devices c o m p l y i ng with the a b o v e a e n t i o n ed description. ^ °3 CN code TARIC Deecription Rate of autonomous duty (X) 734 8x85423838 «27 735 6x85423638 «28 766 ex85423858 «61 767 ex85423658 «82 ex85423858 «63 Aeplifier of gelliue ereenide (GeAe) eaaiconductor aaterial, heving a fraquancy ranga of 8. 8 6Hz or aora but not exceeding 16_ GHz and an output power of 355 eW (25. 5 dBa) at en input power of 1. 12 ob* (6. 5 dBe) or an output power of 1. 48 H (31. 7 dBa) at an input power of 18 sW (18 d B s ). in lha fora of o aonolithic integreted enalogue circuit contained in a houaing baering: - an identification eerking coneieting of or including (one of) the following coebinetion(e): BFIC 8994 BFIC 9913 - othar identificetion eorkinge releting to devices cosplying with tho aboveaentionad deecription Trensispsdsnce aaplifier, with a dynaaic ranga of 3,981 U (36 d B a ), opereting at e bondaidth of 188 NHz or aora and having diffarantial outpute aith en effeet voltaga not exceeding 26 eV, in the fora of o eonolithic integreted enotoguo circuit conteined in e houeing beering: - en identification aarkinq consisting of or includinq (one of) the following cosbinstion(s): AD 8615 - other identificetion eorkinge releting to devices coaplying with the ebovoeentioned deecription Voltege ragutstors with a quieocent currant of 75 |iA and 8 drop out voltage of 388 eV et 188 aA, in the fora of a aonolithic integreted enologue circuit conteined in s housing bearing: - an identificetion eerking coneieting of or including (one of) the following cosbinstion(s): LP 2959 LP 2951 HIC 2951 - othsr identificetion Barkings rslating to devices coaplying aith the abovaaentioned description Current end voltege reguletor, opereting on e battery input voltage of 8,95 V or eore but not exceeding 5,5 V or an unregulated input voltego of 7 V or eore but not exceeding 26 V, providing e oelectoble output voltege of 3,3 V (±6,13 V) or 5 V (±8,28 V ), in the fore of e eonolithic integreted analogue circuit contained in a houeing beering: - en identificetion eerkinq coneieting of or includinq (one of) the following coebinetion(s): HAX 717 HAX 718 RAX 718 HAX 728 MAX 721 HAX 722 HAX 723 - other identificetion eorkinge releting to devices cosplying with the ebovoeentioned description Voltege reguletor, providing revsrss bsttary protection, operating with an input voltege not exceeding 66 V and a quieocent current not exceeding 78 sA el zero load or a quiascant currant not exceeding 38 eA st losd current of 1 A, ir the fore of e eonolithic integreted enelogue circuit contained in a housing baering: - en identificetion eerkinq coneieting of or including (one of) the following coebinetion(e): LH 2948 LT 1128 - other idantificstion ssrkings rslating to davices complying with tha abovaaantionad dascription by CN code TABIC Deecription Rate of s u l o n o a o ue duty (X) 769 ax8S4238S8 «64 778 8 x 8 5 4 2 3 8 58 «65 771 8x85423858 «66 772 8x85423856 «97 773 ex8S423858 «68 Adjustable ehunt voltege reguletor, cosprising sn internal voltsgs rafsrancs and divider roeielora «ith a collector (sink) currsnt of 1 sA or sors but not sxceading 166 aA and an initial voltaga rafaranca tolaranca of 8,4 X, in the fore of s aonolithic intagrated anelogua circuit contained in a housing bsaring: - an idsntificstion ssrking consisting of or including (one of) ths following c o s b i n s t i o n ( s ): LT 1431 othsr identificetion esrkings rslating to devices coaplying aith the aboveaentioned description Voltsgs rsgulator, «ith a quiascant currant not exceeding 75 eA and a dropout voltsgs not sxcasding 8,6 V at an output current of 588 or 758 eA, in the fore of a aonolilhic intagratad analogua circuil containad in a houaing baaring: - an idantification aarkinq consisting of or includinq (one o f) the following c o a b i n a t i o n ( s ): P06SRH1 P012RH1 TL7S8M TL7S1M - other identification aarkings relating to devices coaplying aith tha aboveaentioned description Variable voltaga regulator aith a eupply current not exceeding 126 |iA at an output current not exceeding 166 fiA end a dropout voltaga not exceeding 6,85 V at an output current of 125 aA, in the fore of e aonolithic integrated analogue circuit contained in a housing bearing: - ar identification aarkinq consisting of or including (one of) the following c o a b i n a t i o n ( s ): LT 1628 LT 1128 - othar identification aarkings releting to devices complying with the ebove»srttioned description Voltage regulator, having an output voltage of 12 V (i3 %\ a quiescent currsnt not exceeding 18 aA and 8 dropout vottage not exceeding 22 V at an output current of 58 aA, in the fore of a eonolithic integrated analogua circuit contained in a housing bear ing: - an identification aarkinq consisting of or including (one of) the following c o a b i n a t i o n C s ): CS 8189 (7832FB) other identification aarkings relating to devices coeplying aith the aboveeentioned description Voltage regulator with an output voltage of 2,1 V (+2,5 X) or 3 V (±2,5 X) at a noainal output current of 48 aA, in the fore of a aonolithic integratad analogue circuit contained in 8 housing bear ing: - an identification aarkinq consisting of or includinq (one of) the following c o a b i n a t i o n ( s ): 6 C (RH5 RA 36 AA) 1 B (RH5 RA 21 AA) - other identification aarkings releting lo devices coeplying with the aboveeentioned description AQX CN code TAR1C Description Rale of autonoaous duty (X) 774 8x85423858 «69 775 6x85423856 «18 776 6x85423858 «11 777 ex85423858 «12 778 ex85423659 «13 Voltaga reguletor with on input voltege renge of 4,75 V or aore but not exceeding 68 V and • quiescsnt current not exceeding 18 sA, cosprising a 1 A switch circuit and en oscillator with a fixed frsqusncy of 52 kHz, in tha fora of e eonolithic integreted snologue circuit containad in a houeing beering: - en identification aarkinq coneieting of or including (one of) tha following coabination(a): LM 1575 LM 2575 other identification aarkinga relating to devices coeplying with the eboveeentioned deecription Voltage reguletor, heving an output voltege of 1 V or aore but not exceeding 8 V, a typical quieocent current of 488 or 566 |iA, e typicel dropout voltaga af 1T8 aV et an output current of 68 eA, in tha fora of a aonolithic integreted enologue circuil conteined in a houaing baaring: - en identificetion aarking consisting of or includinq (one of) the following coabination(e): TK 114 (R3) TK 115 TK 116 - other identification aarkinga releting to devicee coaplying aith the abovaaentioned deecription Voltage and currant reguletor of bipolar tachnology, capable of generating 3 ouput currente of reepectively 7,5 eA, 58 aA and 756 aA at an ouput voltege of 5 V (15 X ), in the fore of a aonolithic integreted enologue circuit contained in a housing bear ing: - an identification eerkino consisting of or includinq (one of) the following cosbinstionts): 34992 - other identificstion Barkings ralating to devices coaplying with the aboveeentioned deecription Voltage reguletor, heving en output voltege of 3,9 V (+. 3 X ), a typical output currant of 46 aA at an input voltaga of 6 V and a typical operating current of 2,2 «A, in the fore of a eonolithic integreted analogua circuit containad in a housing bear ing: - an identification aarking conaiating of or including (one of) the following coabination(s): SCI 7718V-KA other identification eorkinge releting to devicee coaplying with the aboveeentioned deecription Voltage regulator, with a dropout voltege not exceeding 1,5 V at an output currant of 3 A or eore but not exceeding 9,5 A, in the fora of a aonolithic intagratad analogua circuil contained in a housing bssring: - an identification aarkinq conaiating of or includinq (one of) the following cosbinstionts): LT 1683 LT 1684 LT 1685 LT 1585 - other idantificstion esrkings rslsting to devices cosplying with the sbovementioned description yfoé CN coda TABIC Dsscriplion Rale of aulonosous duty (X) 779 8x85423858 (14 788 8x85423858 (15 781 8x85423858 (16 782 ex85423656 (17 783 8x85423856 (18 Voltsgs rsgulstor, with sn output currsnt of 58 sA st s typical input to output diffarantial voltage of 8,35 V or en output current of 36 eA et e typicel input to output differential voltage of 8,15 V, in the fore of a eonolithic intagrated enologue circuit conteined in e housing bearing: - en identificetion eerking consisting of or includinq (one of) the following c o e b i n e t i o n ( e ): 8 8426 8 8858 other identificetion eorkinge reloting to devices cosplying with the ebovoeentioned deecription Voltage reguletor, with en input voilage not axcaading 6 V, a typical output voltaga of 3,3 V, a quieocent current not exceeding 16 eA end e dropout voltege not exceeding 1,3 V, in the fore of e eonolithic integratad analogue circuit contained in a houaing baering: - en identification parking consisting of or including (one of) the following c o s b i n s t i o n t s ): EZ 1683 EZ 1664 EZ 1685 EZ 1886 - other identification aarkinga relating to devices cosplying with ths sbovemantioned descrip'ion Voltage reguletor, with an input voltaga of 4 V or aore but not axcaading 11 V and a typical output voltage of 12 or 15 V, in tha fora of a aonolithic intagrated analogue circuit contained in a houaing baaring: - an identification aarkinq consisting of or including (one of) the following c o a b i n a l i o n ( s ): MAX 732 HAX 733 other identification aarkings relating to devices coaplying with the abovaaentioned deecription Voltage reguletor with an input voltage range of 3 V or aore but not exceeding 64 V and a quiescent current of 6 aA or eore but not exceeding 8,5 eA, coaprising an internet 1,25 A, 2,5 A, 4 A or 5 A switch circuit, in the fors of s sonolithic integrated analogua circuit contained in a housing beering: - an identification aarking consisting of or includinq (one of) tha following c o a b i n a t i o n ( s ): LT 1878 LT 1871 LT 1874 LT 1876 LT 1178 LT 1171 LT 1172 LT 1271 - other identification aarkings releting to devices coeplying with the abovaaentioned description Voltage reguletor, aith an input voltage of -8^5 V or aore but not exceeding 26 V, a typical output voltage of 5 V, a guiescBnt current not exceeding 15 aA and a dropout voltage not exceading 1,5 V at an output currant of 588 aA, in the fora of e eonolithic integrated analogue circuit contained in a housing bearing: - sn idontifi estion sarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): CS 8148 CS 8141 other identificetion aarkings relating to devices coaplying aith the aboveaentioned description CN cods TARIC Description Rata of aulonoaouE duty (X) 761 8x85423658 «19 783bis 6x85423658 «28 784 8x85423661 «31 785 6x85423661 «82 786 ex85423861 «63 787 ex85423861 «84 Voilage regulator, with an input voltoge of 2,1 V or eore but not exceeding 16 V, e typicel output voltoge of 3, 3,3 or 5 V et a noainal output current of 56 eA end e dropout voltoge not exceeding 225 aV, in the fora of a aonolithic integreted analogua circuit contained in o houeing beering: - an identification eerking coneieting of or including (one of) the following c o a b i n a t i o n ( a ): LP 2988 - other identification eorkinge releting to devicee coeplying •ith the aboveaantionad deecription Switching voltege reguletor, with en input voltege of -15 V or eore but not exceeding 68 V end en output voltoge of 3. 2 V or eore but not axcssdinq 5. 2 V, in tha fore of o sonolithic intsgrstsd snslogue circuit conteined in e houeing beer ing: - sn identification eerkinq coneieting of or includinq (one of) the following c o a b i n a t i o n ( a ): LT 1142 LT 1149 other identificetion aarkinga ralating to davicaa coaplying with the abovaaentioned description Quadruple fuel injector driver eesrtpo«er circuit of BiMOS tachnology, coapriaing a voltage reguletor, en overvollaga detection circuit and an output alalua control circuit, in the fora of a aonolithic intagratad analogue circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( a ): 7168658FSE other identification aarkinga relating to devices cosplying with the aboveaenlionsd daacription Saartpoaer circuit, capabla of controlling DC aotora, in tha fora of a aonolithic intagratsd analogua circuit containad in a housing bearing: - an identification aarking consisting of or including (one of) the following c o s b i n s t i o n t s ): MPC 17A58VM other identification aarkings relating to devices cosplying with the aboveaentioned dascription Seartpower circuit, capable of power supply switching of aeaory cards, in the fora of a aonolithic intagratad analogue circuit contained in a housing bsaring: - an identification aarkinq conaiating of or includinq (ona of) the following c o a b i n a t i o n ( e ): MAX 789 MIC 2557 MIC 2558 other identification earkinga releting to devicee coeplying «ith the abovaaentioned dascription Seartpower circuit, capabla of controlling battsry voltsgs charge, in the fora of a aonolithic intagratad analogue circuit contained in a housing bsaring: - an identification aarkinq consisting of or including (one of) the following c o s b i n s t i o n ( s ): MPC I825VM TOP 288 TOP 281 TOP 282 TOP 263 TOP 284 TOP 214 y^<? CN code TABIC Deecription Rate of autonomous duty (X) 788 8 x 8 5 4 2 3 8 65 (81 789 6x85423865 «82 799 ex85423665 «63 791 ex85423665 «84 792 ex8S423865 «65 - other identificetion eorkinge releting to devices cosplying •ith the ebovoeentioned deecription Tachoeeter or tochoeetor and epeodoeeter control circuit of BiH08 or bipoler technology, coeprieing e voltoge regulating function, in the fore of a aonolithic integreted eixed eneloguo-digilet circuit conteined in a houaing bearing: - en identificetion eerkinq coneieting of or includinq (one of) the following c o a b i n a t i o n ( s ): C8 8199 T 8557G TB 9226N TB 9228N TB 9233N - other identificotion eorkinge releting to devices cosplying with the ebovoeentioned deecription Video control circuit of bipoler tschnology, capable of awithching VUV/BGB signsls snd controlling contrast, brightness and colour, in the fore of e eonolithic intagratad eixed eneloguo-digitel circuit contained in a houaing bearing: - en idantificetion earking consisting of or including (one of) the following c o m b i n a t i o n ^ ): CXA 1839 - other identification aarkings relating to devices coeplying •ith the aboveaentioned description Spsadosalsr and odoeelar drive end control circuit, whether or not heving eeplification functions, coaprising 4 frequency dividers, in ths fors of s sonolithic integrated aixed anetogua-digital circuit contained in a housing bearing: - an idantification aarkinq consisting of or including (one of) the following c o » b i n a t i o n ( s ): TA 8986 TB 9287 TB 9288 TB 9212 TB 9239 - other identification SBrkings releting to devices complying aith the aboveaentioned description Video control circuil of bipolar technology, providing control pulse génération for iaage recording, comprising an amplifier for wrila-aignals and an aaplifier for read-signels, in the form of a aonolithic integreted aixed analogue-digital circuit contained in a housing baering: - an identification aarkinq consisting of or including (one of) the following coebination(s) : TA 8823 - othar identification aarkings releting to devices coeplying aith tha aboveaantioned description Disc atoraga unit controller of C-MOS or BiMOS technology, in tha fora of a aonolithic integrated aixed analogue-digital circuit contained in a housing bearing: - an idantification aarkinq consisting of or including (one of) the following coabination(s) : 1323453 18P9-9963 53G8886 H52896FP (53G7897) PD 16828 other identification esrkings relating to devices complying aith tha abovaaentioned description CN code TABIC Description Rats of a u t o n o s o us duty (X) 793 8x85423865 «66 794 ex85423865 «67 795 ex8S423865 796 ex85423665 «69 797 ex85423865 «16 798 ex85423865 «11 Control circuit of BiMOS tachnology, cepeble of ««itching video signala, «ith 3 video inpute, 3 control outpute end e buffer output, coapriaing 8 claap circuit, in fore of e e o n o l i t h ic intagratad aixed a n a l o g u e - d i g i t al circuit conteined in e houeing bear ing: - an identification aarking c o n e i e t i ng of or including (one o f) the following c o s b i n s t i o n t s ): BA 7821 other identification a a r k i n gs releting to devicee coeplying with the aboveeentioned d e e c r i p t i on Clock recovery circuit of bipoler technology, in the fore of a aonolithic intagrated eixed a n a l o g u a - d i g i t at circuit contained in a houaing bear ing: - an idantificetion aarking coneieting of or includinq (one o f) the following c o a b i n a t i o n ( e ): AD 886 AD 862 - other identificetion aarkings rslating to dsvices cosplying «ith the aboveaentioned description Control circuit of BiMOS technology, capable of ««itching audio signals, «ith 5 audio inputs, 5 control outpute end 3 output buffers, in fore of a aonolithic intagrated eixed analogue-digital circuit containad in a houeing beering: - an identification aarkinq consisting of or including (ona o f) the following c o m b i n a t i o n ( s ): 6A 7632 other identification aarkinge relating to devices cosplying «ith the aboveaentioned description Speedometer, tachometer or odometer drive and control circuit, comprising at least s d i g i t a l - t o - a n a l o g ua convartar and a eultiplexer, in the fore of a aonolithic intagratad aixed analogue-digital circuit containad in a houaing baaring: - an identificetion aarking consisting of or includinq (one of) the following c o m b i n a t i o n ( s ): SA 5775 SA 5777 other identificetion markings relating lo devices cosplying •ith the a b o v e a e n t i o n ed description Temperature control circuil, «ilh s teeperelure sensor snd sn internal voltage reference, in lha fora of a aonolithic integrated aixed 8 n a l o g u e - d i g i t al circuit containad in a houaing bear ing: - an identificetion aarkinq conaiating of or including (one of) the following c o e b i n e t i o n ( a) : TMP 81 other identification aarkings ralating to devicaa coaplying •ith the a b o v e a e n t i o n ed description Video control circuit of BiMOS technology, cepabla of driving a cathode-rey tube, providing horizonlal/var I ical deflection end colour signsl processing, in the fora of a aonolithic intagratad aixed enalogue-digi lei circuit contained in a houaing bearing: - an identification aarking conaiating of or includinq (ona o f) the following c o m b i n a t i o n ( s) : CXA 1848 *o CN code TARIC Deecription Rate of a u t o n o a o us duly (X) 799 ex85423665 «12 ex85423865 «13 35423665 «14 802 ex85423665 «15 803 ex85423B65 «16 other identificetion eorkinge relating to devicaa coaplying «ith tha abovoeontioned description 3-pheee eotor control circuit, cosprising s 9-bit d i g i t e l - t o - e n e l o g ue converter, en 11-bit serial port, «ith a spindle drive current not exceeding 1 A end a voice coil eotor current not exceeding 468 eA, in the fore of a aonolithic integreted eixed enelogue-digitel circuit contained in a housing bssring: - en identificetion eerkinq consisting of or includinq (one of) the following c o e b i n e t i o n ( s ): HA 13544 - other identificetion eerkings rslating to devices cosplying with the aboveeentioned description Bidirectional DC aotor control circuit of bipolar technology, coaprieing e drive current ewitching circuit, in the fora of a aonolithic integrated aixed enalogue-digital circuit contained in a houaing beering: - en idsntificstion sarking consisting of or including (one of) ths following c o s b i n s t i o n t s ): TA 8656P othsr idsntificstion markings relating to devices coaplying •ith the ebovoeentioned description Control circuit, capabla of driving field-effect transistors ( F E T s ), in the fore of e aonolithic intagrated aixed analogua-digitat circuit contained in a housing bearing: - an idantification eerking consisting of or includinq (one of) the following c o e b i n B t i o n ( s ): HAA9P-S1123R other identificetion earkings relating to devices coaplying •ith the aboveaentioned description 3-phase DC eotor control circuit of bipolar technology, coapriaing an oaciltator, power and phase changeover c i r c u i ts and a ring counter, in the fora of a aonolithic integrated eixed analogua-digilet circuit contained in a housing beering: - an identification aarkinq consisting of or includinq (one of) the following coabination(s): AN 8225 other identificetion eerkings relating to devices coaplying •ith the eboveeentionad daacription Circuit for driving linaar aotors or aotors «ilh rotating aras, of C-H08 tachnology, coapriaing a drive current switching circuit and o power fault detection circuit, in the fore of a aonolithic integrated aixed analogue-digital circuit contained in a housing bssring: - sn idantificstion aarking consisting of or including (one of) tha following c o a b i n a t i o n ( s ): 32H6816 5862996 - other identification aarkinga relating to devices coaplying «ith the eboveaantioned description /f^M CN code TABIC Description Rata of a u t o n o B o us duly (X) 884 8 x 8 5 4 2 3 8 65 «17 865 8 x 8 5 4 2 3 8 65 «18 698 e x 8 5 4 2 3 8 65 «19 898 e x 8 5 4 2 3 8 69 «81 869 6 x 8 5 4 2 3 6 69 «82 818 6 x 8 5 4 2 3 8 69 «83 Video control circuit of bipolar tachnology, capable of switching and claeping video signsls, in the fora of a aonolithic intagratad aixad a n a l o g u e - d i g i t al circuit containad in a houaing besring: - sn identificstion sarking consisting of or includinq (ons o f) ths following c o s b i n s t i o n ( s ): CXA 1866 - othsr idsntificstion sarkings relating to davicaa coaplying aith tha abovaaentioned dascription Gain control circuit, capable of controlling and aaplification of raad aignala for a atorage unit, in the fora of a aonolithic integreted aixad analogua-digitel circuit containad in a houaing bearing: - an idantification aarking consisting of or includinq (one of) ths following c o s b i n s t i o n t s ): 1118685-84 othsr identification aarkings relating to devices coaplying with the aboveaentioned description Bjushtess thrB8-phasa_DC aotor control circuit of BiMOS technology, operating at a power supply of 3_ V or aore but not exceeding 5,5 V. in the fora of a eonolithic integrated aixed a n a l o g u e - d i g i t al circuit contained in a housing bearing: " an identification sarking consisting of or including (one of) the following c o s b i n s t i o n t s ): A 8983 PRD 1829 - other identification aarkings relating lo devices coaplying with the aboveaentioned description Control circuit, cepeble of driving inductive or resistive losds, having an output current not exceeding 1,3 A Bt 8 supply voltage not exceeding 28 V, in the fore of 8 aonolithic integrated analogue circuit contained in a housing beering: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): 71884 S6 other ident i ficet ion aarkings retaling to devices coaplying «ith the aboveaentioned description Control circuit, capable of driving inductive and resistive loads having 4 outputs aith a current of 2 A or aore but not exceeding 7,2 A, in the fora of a aonolithic integrated analogue circuit contained in a housing beering: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): 166964 HIP 6682 other identification aarkinga relating lo devicee cosplying with ths sbovssanlionsd description Control circuit of bipolsr tschnology, for driving DC sotors with b r u s h e s, in the fors of s sonolithic integrated analogue circuit contained in a houeing bearing: - an identification aarking consisting of or including (ona of) tha following c o a b i n a t i o n ( s ): 8A 6169 6A 6269 Spfl. CN code TARIC Deecription Rate of autonomous duty (X) 811 ex85423669 «84 812 ex85423669 «65 813 ex85423669 «86 814 ex&5423869 «67 815 ex85423669 «98 other identificetion aarkinge releting to devices cosplying with the ebovoeontioned deecription DC eotor control circuit of bipoler technology, providing sn output current of 2 A ot en output eeturolion voltsge of 3,2 V, coaprisi g 3 TTL inputs, 4 trensislors in s full bridge configuration end en ovorvoltoge ahutdown circuit, in the fore of e eonolithic integreted enalogua circuit contained in e housing beering: - en identificetion parking coneieting of or including (one of) the following c o o b i n e t i o n ( o ): 71864 HB other identificetion aarkinga releting to devicoe coeplying aith the ebovoeentioned deecription Throe-pheee DC aotor control circuit of BiMOS technology, coeprieing o Holt effect threehold detection circuit, in the fore of a aonolithic intagrated analogue circuit conteined in B houeing beering: - en identificetion eerking coneieting of or including (one of) the following c o B b i n a t i o n ( s ): 1323454 - othar identificetion earkings rslsting to dsvices coaplying «ith the ebovoeentioned deecription Circuit for driving lineer ootore or aotors «ith rotating ares, of bipolar tachnotogy, «orking «ith an eupply voltage not exceeding 24 V end en opereting leapereture of -48*C to +125*C, coaprising an ovsrvoltags shutdown circuit and a tharaat ahutdown circuit, in tha fora of a aonolithic integrated analogue circuit containad in a houaing bearing: - an identificetion aarking consisting of or including (one of) the following coabination(s): 34983 other identificetion earkinga relating to devices coaplying «ith tha aboveeentioned deecription Circuit for driving lineer aotors or aotors «ith rotating aras, of bipolar technology, «orking «ith en output voltage of 45 V at an output current of 1,75 A, in the fore of a aonolithic intagrated enologue circuit conteined in a housing bearing: - an identification aarking coneieting of or including (one of) the following cosbination(s): UDN 2917 othsr idsntificstion sarkings relating to devices coaplying with the aboveeentioned dascription Brushlsss thras-phsss DC eotor control circuit of bipolar tachnology, oparating «ith an input currant of 1 |iA and having an input off-sat currant of 9,1 sA st sn input off-sat voltage of 5 aV, coaprieing a tharaat shutdown circuit, in the fora of s aonolithic intagratad analogua circuit contained in a housing bearing: - an identificetion aarkinq coneieting of or includinq (one of) the following coebinetion(s): HA 13499 othar idantification aarkinga ralating to devices coeplying «ith lha abovaaantionad dascription ^ /3 CN code TABIC Description Rale of aulonoeous duty (X) 816 sx85423669 «69 817 8 x 8 5 4 2 3 6 69 «16 818 6x85423869 «11 819 6 x 8 5 4 2 3 8 69 «12 826 ex85423669 «13 Control circuit of bipolsr technology, cspabta of driving solenoids, operating «ilh s power supply current not exceeding 58 aA at a supply voltsgs not sxcasding 7 V and a dissipation rata not axcaading 19 V, in the fore of a aonolithic integrated analogua circuil contained in a housing bsaring: - an identification aarking consisting of or including (one of) the following c o s b i n s t i o n t s ): 71868S6 71613SB - othsr identification earkings relating to devices cosplying «ith ths sbovessntioned description Control circuit of C-H08 tschnology, for sonitoring the voltage of eicroprocsssors, s i c r o c o n l r o H e rs or sicrocoaputsrs, in the fore of e Bonolithic intagrated analogua circuit containad in a houaing baaring: - an idsntificstion sarking consisting of or including (one of) the following c o s b i n s t i o n t s ): DS 1231 DS 1232 H 6686 H 6652 H 6666 H 6661 MN 1388 MN 13881 MN 13862 MN 1381 MN 13811 MN 13812 HN 13821C HN 13822C MN 1382C V 7639 - other identification aarkings relating to devices coeplying with the aboveaentioned description Voltage regulator control circuit, opereting with a supply voltage of 6 V or aore but not exceeding 36 V, providing an output voltage of 5 V (±6,1 V) at en output current of 226 |iA, in fora of B eonolithic integrated enalogue circuit contained in a housing bearing: - an identification aarking consisting of or includinq (one of) the following c o a b i n a t i o n ( s ): LT 1432 - other identification earkings relating lo devices complying with the aboveaentioned description Conlrol circuit of C-MOS technology, cspabta of aeplifying/inverting voltage levets to drive vertical lines of a charge-coupled (CCD) iaage sensor, in the fora of B eonolithic integrated analogue circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): CXO 1267 - other identification earkings relating to devices complying aith the aboveaentioned description Conlrol circuit of bipolar technology, capable of switching video and audio functions, coaprising aaplifiers snd a mixer of luainance and chrominance signals, in fora of a aonolithic integratad analogue circuit containad in a houeing bearing: - an idantification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): CX 1545 CXA 1845 CXA 1855 - other identification aarkings relating to devices complying with the ebovesentioned description A^ CN code TABIC Description Rate of autonomous duty (X) 821 6x85423669 «14 822 8x85423869 «16 823 ex85423869 «17 824 ex8S423869 «IS 827 6x85423878 «61 828 8x85423876 «62 Control circuit, capsbls of racording and reproduction of signels in e video sarvo systss, in tha fora of o aonolithic integreted enalogue circuit containad in a houeing beering: - en identification aarking coneieting of or including (one of) the following coebinotion(e): TA 8823N othsr identification aarkinga ralating to devicee coeplying «ith tha abovaaantionad deecription Dr i va circuit for heads of a atoraga unit, in tha fora of a aonolithic intagratad analogue circuit conteined in a houeing beering: - en identificetion aarking coneieting of or including (one of) the following coebination(s): 1116687-81 other idantificstion eorkinge releting lo devicee coeplying •ith the ebovoeentioned deecription Control circuit of bipoler technology, providing voluee control, in the fore of e aonolithic integreted enologue circuit contained in e houeing beering: - an identificetion eerking coneieting of or including (one of) the fotlosing cosbinstion(s): BA 3574 CXA 1646 CXA 1946 othsr identification eorkinge releting to devices cosplying •ith ths sbovssentionsd dascription Control circuit, cspabta of driving poser field-effect transistors (FETs), in the fore of e eonolithic integrated analogue circuit contained in a houaing baaring: - an identification ssrkinq consisting of or includinq (one of) the following cosbinstionts): 71889SB LTC 1155 other idsntificstion eorkinge releting to devices cosplying with the sbovsssntionsd dsscription Intsrfacs circuit of dislsctric isolstion tachnology, for telephone seta «ith a line voltege not exceeding 265 V, in the fora of a aonolithic intagratad analogua circuit contained in a housing bearing: - an identification aarkinq consisting of or includinq tone of) the following coabinetion(s): LH 1497 - other identification earkinga releting to devicaa coaplying aith lha aboveasntioned deecription Interface end control circuit of C-MOS tachnology, for the generation of graphic ayebole on e cethode-rey tube, in ths fora of a aonolithic integreted enologue circuit contained in a housing bsaring: - an identification aarking conaiating of or including (one of) the following coabination(a): M 1297 - other identification aarkinga releting to devices cosplying «ith the abovaaantionad daacription yr CN code TABIC Deecription Rate of autonoaous duly (X) 829 6x65423878 (63 838 8x85423878 (84 831 8x85423678 (65 832 8x85423876 (86 844 ex85423695 (81 845 6x85423695 (82 Interfece circuit of bipoler technology, cepeble of converting o différentiel input signal into a squsrs wsve output signal of the saaa frequency, coeprieing 4 signal sensor channels and a liaer, in the fora of a eonolithic integreted enologue circuit conteined in e housing bsaring: - an idantificetion eerking coneieting of or includinq (one of) the following c o s b i n s t i o n t s ): 71681AB - other identificetion earkings rslating to devices coaplying with tha aboveeentioned deecription Interfece circuit or interfece circuit «ith control functions, for e locel ereo net«ork ( L A N ), in tha fore of a aonolithic integreted enologue circuil conteined in e housing bearing: - an identificetion eerking consisting of or including (one of) ths following c o s b i n s t i o n t s ): 8HC 83C865 - othsr identification earkings relating to devices coeplying •ith the aboveaentioned daacription Video signsls interface circuit of bipolar technology, capable of interfacing «ith a red, green and blue (BGB) colour signal circuit, coaprising 3 autoeatic white balance adjuslaent circuits, in the fors of s sonolithic integrated analogue circuit contained in a houaing bearing: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): CXA 1624S other identification aarkings relating to devices coaplying with the abovaaentioned description Subscriber line interface circuit ( S L I C ), in the fors of s sonolithic integrated analogue circuit contained in a housing bear ing: - an identification aarkinq consisting of or including (one of) the following c o m b i n a t i o n ( s ): Aa 79M535 Aa 79M574 Aa 79M576 other identification aarkinge relating to devices coaplying with the aboveeentioned description Audio r e c o r d i n g / r a p r o d u c i ng circuil of C-MOS technology, cspsble of direct snslogue storage of audio data, comprising an electrically e r a s a b l e, prograaaabte, read only aeaory (E P R O M ), 3 a a p l i f i e r s, an autoeatic gain control circuit and 2 filters, in lha fora of a aonolithic integrated aixed a n a l o g u e - d i g i t al circuit contained in a housing bearing: - an identification aarking consisting of or including (one of) tha following c o a b i n a t i o n ( s ): ISD 1612A I8D 1816A I8D 1626A ISD 1288 I8D 1218 ISD I486 ISD 2545 ISD 2568 ISD 2575 ISD 2599 other identification aarkings relating to devices coaplying with the a b o v e a e n t i o n ed description Dual-lona e u t t i - f r a q u e n cy (DTHF) generelor of C-HOS technology, capable of decoding 4-bit binary data and generating 16 tone peirs, in the fore of a aonolithic integrated aixed a n a l o g u e - d i g i t al circuil contained in a housing bearing: - an identification asrkinq consisting of or including (one of) the following c o a b i n a t i o n t s ): ^A*é CN code TABIC Description Rate of autonoaous duty (X) TP 5688 846 ex85423895 «63 848 B X 8 5 4 2 3 8 95 «65 549 ex85423895 «86 858 8x85423895 «97 851 ex85423895 - other identification aarkinga roleting to devicee coeplying with the abovaaantionad deecription Signal processing circuit of C-N08 tschnology, providing analogue aignal filtering end gein control, coeprieing e duel-tone suitifrequency (DTHF) treneeitter and a DTHF receiver, and a aodulator/deeoduletor ( R o d e o ), in the fore of e eonolithic integrated sixed snslogus-digitsl circuit conlsinsd in s housing bear ing: - an identification sarking consisting of or includinq (ons o f) the following c o s b i n s t i o n ( s ): SC 11378 othar identification aarkinge relating to davicaa coaplying with the abovaaantionad daacription Local telephone network circuit of C-H08 tachnology, capable of tone generation and of aaitching, aaplifying end decoding eudio signals froa not aore than 2 sxtsrnsl tslephone linee snd froa not aore then 12 internal telephone linee, in the fore of a •onolithic integrated sixsd snslogus-digitsl circuit contained in a housing beer ing: - an identification sarking consisting of or includinq (one of) the following c o s b i n s t i o n t s ): SC 11396 other identification aarkings rslating to devicaa coaplying with the aboveaentioned description Analogue communication circuit, capabla of data conversion and signal transfer, coaprising s serisl input/output port for a digital signal procassor ( D 8 P ), a 16-bit anelogue-to-digitat converter, a 16-bit digital-to-analogua converter end a clock generator, in the fora of a aonolithic integrated aixed analogue-digital circuit contained in a housing bsaring: - an identification aarkinq consisting of or includinq (one of) the following c o a b i n a t i o n t s ): AO 28MSP91 other identification aarkinge ralating to devices cosplying with the aboveeentioned description Encoder/decoder of C-M08 tschnology, for bsss-bsnd and voice-band frequenciee, providing data conversion, cosprising a modulator for digital aignala, anelogue-to-digitel c o n v e r t e r s, digi tal-to-analogua convartars, aaplifiers and f iIters, in the form of a monolithic integreted sixsd snslogus-digital circuit contained in a houaing bearing: - an identification aarking consisting of or including (ona of) the following c o a b i n s t i o n ( s) : AD 7815 other identificstion sarkings ralating to devicaa coaplying aith the aboveaentioned description 16-bit stereo encoder/decoder «ith C-M08 tschnology, hsving sasple rates of 4 kHz or sors but not sxcssding 48 kHz, coaprising a aultiplaxar, a digital-to-analogua convartar, an analogue-to-digital convartar, a auta circuit, a voltage reference circuit, a aicrophona-input, a loudapaaker-output and a headphone-output, in tha fora of a aonolithic integrated aixad analogue-digital circuit containad in a houaing baaring: - an identification aarkinq conaiating of or includinq (one of) the following c o e b i n a t i o n ( s ): /^ CN code TABIC Deecription Rate of autonomous duly (X) AD 1848 C8 4215 852 ex85423895 «99 853 8x85423695 (18 854 8x85423695 «11 855 ex85423895 «12 856 6x85423885 «13 other identificelion eerkings ralating to devices cosplying «ith the aboveaantioned deecription Encoder/decoder with pulee-code-oodulalion filter of C-MOS tschnology, opereting «ith s +5 V singls-po»er supply, cosprising sn snslogua-to-digitsl converter and a digitel-to-enelogue convartar, in tha fora of a aonolithic integreted aixad enologue-digilei circuit contained in a housing beer ing: - en identificetion aarking consisting of or including (one of) the following c o s b i n a t i o n ( s ): HC 145486 THC 129C18 othar idantificetion eerkings rslating to devices cosplying •ith the ebovoeentioned description Encoder/decoder with pulea-coda-eodulation filter of C-MOS tachnology, «ilh a dual-power supply snd hsving s typical diaaipation rate of 58 aW, coapriaing an s n a l o g u e - l o - d i g i t al convartar and a digital-to-analogua converter, in the fora of a eonolithic intagrated aixed analogue-digital circuit contained in a houaing baaring: - an idantification aarking consisting of or includinq (one of) the following c o s b i n a t i o n ( s ): HC 145563 - othar identification aarkings relating lo devices coeplying •ith the aboveaentioned description Adaptive differentiated pulse-code-eodulation circuit of C-NOS technology, for ancoding/dacoding data «ith a data transfer rate of 8, 16, 24, 32 or 64 Kbits per second, in the fors of s sonolithic intagratad aixed analogue-digital circuit contained in a houaing bearing: - an idantification eerkinq consisting of or including (one of) the following combinetion(s): T 7288 other identification aarkings releting to devices coaplying with tha aboveaantionad description Encoder/dacodar with pulsa-coda-eodutalion fillers of C-MOS tachnology, capable of voice digilisstion end reconstruction at B apeed of 64 Kbits/s or aore but not exceeding 2648 Kbits/s, with a eingle power auppty of 5 V, a power dissipation not axcaading 37 aW in operating aode and not exceeding 3 aW in power down «ode, in tha fora of a aonolithic integrated aixed *>'slogua-digitel - an idantificstion sarking consisting of or including (one of) circuit contained in a housing bearing: tha following c o s b i n s t i o n ( s ): 7568 B 7588 B - oths v-1 idsntificstion sarkinga relating lo devices coaplying she aboveeentioned daacription FN receiver of bipoler tschnology, cepabla of operating at an input frequency rage of 268 MHz, «ith an FM sig,nal demodulating function, coapriaing at least 2 mixers, an oscillator, a diode and a Baceivo 8ignal 8lrengh Indicator ( B S S I ), in the fora of a aonolithic integratad aixad analogue-digital circuit contained in a houeing bearing: - an identificetion aarkinq consisting of or including (one of) the folto«inq c o a b i n a t i o n ( s ): HC 13135 HC 13136 J 4 Q CN coda TABIC D e s c r i p t i on î a la of t uio n o i O UB duty (X) 857 e x 8 5 4 2 3 6 95 «14 858 6 x 8 5 4 2 3 6 95 «15 859 e x 8 5 4 2 3 8 95 «16 860 e x 8 5 4 2 3 8 95 «17 861 e x 8 5 4 2 3 6 S5 «18 - other identification aarkings rslating to davicss cosplying •ith ths a b o v e a e n t i o n ed deecription FH-band receiver of BiMOS technology, c o a p r i e i ng a c o a p r a a a i on circuit, a d e c o a p r e a a i on circuil, 2 aixere, 2 p h e e e - l o c k ed loop (PLL) c i r c u i t s, sn inlaraediata frsqusncy (IF) a a p l i f i e r, a receive signsl strangth indicator ( B 8 8 I ), a eeriet interfece circuit end e eupply voltaga detection circuit, in the fore of e aonolithic integreted eixed e n e l o g u e - d i g i t el circuit c o n t a i n ed in e houeing b e a r i n g: - an identification aarking consisting of or includinq (ona o f) tha following c o s b i n a t i o n ( s ): MC 13188 other identification aarkinga relating to devices cosplying «ilh the a b o v e a e n t i o n ed deecription Coaparator of C-MOS technology, cepeble of voltege c o e p e r i s o n, with a p r o p a g a t i on delay of not aora than 12 N S, in ths fors of s sonolithic integrated aixad a n a l o g u a - d i g i t al circuit contained in a houaing beering: - an identification aarkinq conaiating of or includinq (one o f) the following c o a b i n a t i o n ( s ): MAX 921 MAX 922 MAX 923 MAX 924 MAX 931 MAX 932 MAX 933 MAX 934 other identification aarkings relating to devices cosplying «ith the a b o v e a e n t i o n ed description Circuil for c o n n e c t i n g / d i s c o n n e c t i ng busses, in tha fore of s eonolithic integrated aixed a n a l o g u a - d i g i t al circuit contained in a housing bear ing: - en identification marking consisting of or including (ona of) the following c o a b i n a t i o n ( s ): 89F6248 89F7986 TL22I8 other identification aarkings relating to devices cosplying with the a b o v e e e n t i o n ed description Audio and video signsl processing circuit of bipolsr technology, comprising s phase-locked loop (PLL) c i r c u i l, a FM signsl detector, an intermediate frequency (IF) amplifier, a p r e - e m p t i f i e r, a radio frequency (BF) autoeatic gain c o n t r ol aaplifier and a video signet amplifier, in the fore of e monolithic integreted aixed a n a l o g u e - d i g i t al circuil contained i n a hous ing beari ng: - en identification aarkinq consisting of or includinq (one o f) the following c o a b i n a t i o n ( s ): LA 7577 other identification aarkings relating to devices coaplying with the a b o v e a e n t i o n ed description Circuit for speed and angle position e e e e u r e a e n t, of C-MOS technology, coaprising 4 amplifiers, a d e e o d u l e t o r, a c o u n t a r, i voltaga inverter, a latch and a voltaga controlled o a c i l t a t o r, in the fora of a aonolithic intagrated aixed a n a t o q u e - d i g i t al circuil contained in a housing baaring: - an identificetion aarkinq consisting of or includinq (ona of) the following c o m b i n a t i o n ( s ): ROC 19228 other identification markings relating to devices coaplying ? CN coda TABIC Deecription Rale of autonomous duty (X) 862 ex8S42369S (19 863 ex85423895 (28 864 ex85423695 (21 865 ex854238S5 «22 866 ex85423895 «23 867 ex85423095 «24 with the ebovoeentioned description Trsnssitter/receiver of C-H08 technology, providing tine distortion equetizetion end dote conversion, in the fors of a sonolithic integreted eixed snslogue-digitel circuit contained in s housing beering: - en identification aarkinq consisting of or including (one of) the following c o e b i n e t i o n ( s ): TXC 87225 - other identificetion eorkinge releting to devices cosplying with the ebovoeentioned deecription Deeoduletor of BiH08 technology, cepeble of processing encoded dsts froe e oognotic otripo rooder, in the fore of a aonolithic integreted eixed analogua-digitat circuil containad in a housing baering: - en identificetion eerking consisting of or including (one of) the following c o e b i n e t i o n ( s ): H 56716FP - othsr idsntificstion aarkings relating to devices coaplying with tha aboveeentioned description Hodulstor of C-H08 tschnology, hsving s dynaaic range of 123 dB in a bandwidth of 375 Hz or a dynaaic range of 124 dB in a bandwidth of 588 Hz, in tha fora of a aonolithic integreted aixad analogua-digitel circuit contained in a housing beering: - an idantificetion aarking consisting of or including (one of) tha following c o a b i n a t i o n ( s ): CS 5321 CS 5323 - othar idantification eerkings relating to devices coaplying «ith tha aboveaantionad dascription 16-bit digitsl-to-snslogua converter, having a hands free function, in tha fore of a aonolithic integrated aixed analogua-digital circuit contained in a housing bearing: - an idsntificstion aarking consisting of or includinq (one of) tha following c o a b i n a t i o n ( s ): 18485 - othBr idsntification aarkings releting to devices cosplying «ith ths aboveaantioned dascription 6-bit dust anslogua-to-digitsl converter BiMOS technology, coapriaing a voltage reference circuit, in the fore of a aonolithic intagratad aixad analogue-digitsl circuit contained in a houeing beering: - en idantification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): AD 9666 - othar identificetion earkings ralating to devices coeplying with tha aboveeentioned description 4-chonnel 12-bit pulse «idlh «odulalion generator, in the form of a aonolithic intagratad aixed analogue-digital circuit containad in a housing bearing: - an idantification aarking consisting of or including (one of) ths following c o s b i n s t i o n ( s ): M 66242 ^ tt CN c o de T A B IC D e s c r i p t i on Rate of a u t o n o a o us duty (X) 868 8 x 8 5 4 2 3 6 95 *25 - o t h er i d e n t i f i c s t i on a a r k i n ge relating to d a v i c ss c o s p l y i ng • i th ths a b o v e e e n t i o n ed d a a c r i p t i on 6 C i r c u it for d e t a c t i ng p r a - i g n i t i on of an s u l o s o t i vs e n g i n s, c o s p r i s i ng st least 1 aaplifier and 1 b a n d p a ee filtar o p e r e t i ng at a f r a q u a n cy af 1 kHz or sore but not a x c a e d i ng 28 k H z, in the fore of a a o n o l i t h ic integrated aixed a n a l o g u e - d i g i t al c i r c u it c o n t a i n ed in a houaing b e a r i n g: - an i d e n t i f i c a t i on aarkinq c o n s i s t i ng of or includinq (onB o f) the f o l l o w i ng c o a b i n a t i o n ( s ): HIP 9 8 18 HIP 9611 869 8 x 8 5 4 2 3 6 95 «26 H a ll e f f e ct sensor aith d i g i t al signal o u t p u t s, c o e p r i e i ng e - other i d e n t i f i c a t i on a a r k i n gs relating to d e v i c ee c o e p l y i ng • i th the e b o v e e a n t i o n ad d e s c r i p t i on 876 e x 8 5 4 2 3 6 95 «27 d i f f e r e n t i a t or and paak d e t e c t o r, in the fore of e e o n o l i t h ic i n t e g r e t ed eixed a n a l o g u e - d i g i t al circuit c o n t e i n ed in e h o u e i ng bear ing: - 8n i d e n t i f i c a t i on aarkinq c o n s i s t i ng of or includinq (one o f) the f o l l o w i ng c o a b i n a t i o n ( s ): AD 2 2 4 62 - other i d e n t i f i c a t i on e a r k i n gs relating to d e v i c ee c o e p l y i ng aith the a b o v e a e n t i o n ed d e s c r i p t i on A u d io signet p r o c e s s i ng circuit of C-MOS t a c h n o l o g y, o p a r a l i ng at a t y p i c al sypply voltsge of 3 V, c o a p r i a i ng a d u a l - t o ns • u l l i f r e q u e n cy ( D T M F) g e n e r a t o r, mute s w i t c h e s, d i g i t s l ly c o n t r o l l ed signsl a t t e n u a t o rs and p a s s b a nd f i l t e r s, in the fore of a a o n o l i t h ic integrated aixed a n a l o g u e - d i g i t al circuit c o n l e i n ed in a housing bearing: - an i d e n t i f i c e t i on aarkinq c o n s i s t i ng of or includinq (one o f) the following c o m b i n B t i o n (s ) : SA 5753 871 e x 8 5 4 2 3 8 95 «28 T r a n s e i t t e r / r e c e i v er of bipoler t e c h n o l o g y, c o e p r i s i nq sn UHF - other i d e n t i f i c a t i on m a r k i n gs relating to d e v i c aa c o a p l y i ng with tha a b o v e e e n t i o n ed d e s c r i p t i on f r e q u e n cy o s c i l l a t o r, an oscitlstor o p e r a t i ng at a f r a g u e n cy of 117 MHz and an oscillator operating at a f r e g u e n cy of 284 M H z, in the fora of a a o n o l i t h ic integreted aixed a n a l o g u e - d i g i t al c i r c u it c o n t a i n ed in a housing b e a r i n g: - an i d e n t i f i c e t i on aarking c o n s i s t i ng of or including (one o f) the f o l l o w i ng c o m b i n a t i o n ( s ): W 2828 872 e x 8 5 4 2 3 6 95 «29 S e r i a l / p a r a l l el or p a r a l l e l / s e r i al converter for a n a t a o rk aith - other i d e n t i f i c a t i on markings relating to d e v i c es c o a p l y i ng with the a b o v e a e n t i o n ed d e s c r i p t i on an o p t i c a l - f i b re or coaxial cable, in the fora of a s o n o l i t h ic i n t e g r a t ed aixad a n a l o g u e - d i g i t al c i r c u il c o n t a i n ad in a h o u a i ng bear i ng: - an i d e n t i f i c a t i on aarkinq c o n s i s t i ng of or includinq (ona o f) the f o t t o a i nq c o e b i n a t i o n ( s ): 6 4 6 6 1 75 6 4 G 6 1 76 other i d e n t i f i c a t i on markings relating to davicaa c o a p l y i ng aith the B b o v e m e n t i o n ed d e s c r i p t i on yfH J CN code TARIC Deecription Rate of aulonoeous duly (X) 875 6x85423895 «32 - Audio circuit of C-H08 technology, «ith e dyneaic ranga of 76 dB or aora, coapriaing 2 digitel-to-enelogue converters and 2 onalogua-to-digitol convertere, in the fore of a aonolithic integrated aixed analogue-digital circuit contained in e housing beering: - an identification aarkinq coneieting of or including (one of) tha following c o a b i n a t i o n ( e ): AO 1845 AD 1847 AD 1848 CS 4231 C8 4248 876 8x85423695 (33 877 ex85423695 (34 878 6x85423695 «35 879 ex85423695 «36 680 ex85423695 «37 - other identification oerkinge releting lo devices cosplying with the abovaaantionad deecription Voice signsl proceeeing circuit of C-H08 technology, coeprieing on encoding circuit, a decoding circuit, o coapression circuit and a decoepreeeion circuit, in the fore of e eonolithic integrated eixed aneloguo-digitet circuit containad in a housing baering: - an identification aarkinq coneieting of or including (one of) the following coebination(a): AK 2342 AK 2353 TC 35492 TC 35493 - other identificetion eerkingo releting to devices coaplying aith tha aboveeentioned deecription Frequency eynthoeieer, opereting «ilh en input frequency not exceeding 2 GHz end e DC eupply voltege not exceeding 19 V, coeprieing e pheee-locked loop (PLL) circuit end a programmable 14-bit or 28-bit countar, in the fore of e aonolithic integrated aixad enalogue-digital circuit conteinad in a houaing bearing: - en identificetion eerkinq conaiating of or includinq (one of) the following c o s b i n s t i o n t s ): LC 7216 LHX 2326 HC 145158 MC 145162 - othsr idsntification aarkinga ralating to devices coaplying with the aboveaantioned description Psssive decoder of BiM08 technology, cosprising a fixed aatrix, a 7-kHz f i liar, a noiee-roducing circuit and a digital delay circuit, in tha fora of a aonolithic integreted sixed snslogus-digitsl circuit conlsinsd in s housing beering: - sn idsntificstion ssrkinq consisting of or including (one of) the following cosbinstion(s): LV 1888 LV 1611 - othsr idsntificstion ssrkings rslating to devices coaplying •ith ths sbovsssntionsd dascription Mstrix dscodsr, coeprieing en odeptive aatrix circuit, a noise generslor snd sn sutoaetic-batanca control circuit, in the fore of e eonolithic integreted eixed enalogue-digital circuit contained in a houaing baaring: - en identificetion eerking conaiating of or including (one of) the follo«ing coebinetion(o): LA 2715 H 69832P NJH 2177 88H 2125 SSM 2126 - other identificetion eorkinge releting to devices coaplying •ith the ebovoeentioned deecription Video procaaaing circuit of bipolar tachnology, providing discriainetion of aynchroniaetion signals, in the fore of a Bonolithic intagratad aixad analogue-digital circuit contained in a houaing bear ing: - an identification ssrking consisting of or including (one of) the following cosbinstionts): yfZL CN code TARIC Description Rata of a u t o n o m o us duty (X) CXA 1616 954 8 x 8 5 4 2 3 8 95 8 x 8 5 4 2 3 8 99 «38 «62 761 8 x 8 5 4 2 3 8 95 «48 867 e x 8 5 4 2 3 8 95 «41 836 6 x 8 5 4 2 3 8 95 «42 837 e x 8 5 4 2 3 6 95 «43 other identification aarkinga relating to devices coaplying with the abovaaantionad description Video processing circuit, for colour or lusinanca aignals, in ths fora of a aonolithic intagralad aixad a n a l o g u e - d i g i t al or analogue circuit contained in a houaing bearing: - an identification aarking consisting of or including (ona o f) the following c o m b i n a t i o n ^ ): AD 722 CXA 1267 CXA 1268 CXA 1213B8 CXA 1587 CXA 1779P CXA 2666 LC 8997 other identification aarkings relating to devices coaplying aith tha aboveeentioned dascription Fraquancy ayntheaiaer of BiMOS tschnology, coaprising 1 or aora phaae-tockad loop (PLL) circuila and 1 or aora programmable frequency dividers, with sn operating frequency of 26 MHz or aore but not exceeding 2 GHz, in the fora of a aonolithic integreted aixed analogue-digital circuit containad i n a housing beer ing: - an identification aarkinq consisting of or including (one o f) the following c o e b i n s t i o n ( s ): UMA 161SM UMA 1818M LMX 2332 LMX 233S LMX 2336 - other identificet ion aarkings relating to devices coaplying with the a b o v e a e n t i o n ed description Video signal switching circuit, comprising an aeplifier and a mixer of tuainance and chrominance signals, in the fora of a aonolithic integrated aixed analogue-digital circuit contained i n a hous ing bear i ng: - an identification aarkinq consisting of or including (one of) the following c o a b i n a t i o n ( s) : A 29490 - other identification aarkings releting to devices coaplying with the abovaaentioned description Quadrupla 8-bil digital-to-analogue converter with serial input of C-MOS technology, in the fora of a eonolithic integrated aixed a n a l o g u e - d i g i t al circuit contained in a housing bear ing: - an identification aarkinq consisting of or including (one o f) the following c o a b i n a t i o n ( s ): MAX 569 MAX 518 - other identificetion earkings relating lo devices coaplying with the aboveaentioned description 28-bit a n a t o g u a - t o - d i g i l al or digital-to-analogue converter, in the fors of a aonolithic intagrated aixed a n a l o g u e - d i g i t al circuit contsined in a houaing bearing: - an identification aarkinq consisting of or including (one o f) the following c o a b i n a t i o n ( s ): AD 75678 AD 75679 other identification aarkings relating to devices coaplying with the aboveaentioned deecription y1^!> CN code TABIC Deecription Rale of autonomous duty (X) 838 6x85423695 «44 842 ex85423695 «45 843 ex854236S5 ex85423899 «46 «65 893 ex85423899 «01 894 ex85423699 «82 895 ex85423699 «83 Treneoitter/racaivar cepeble of eodulotion/deeoduletion of radio frequency (IF) eignole, coeprieing 5 eixore and 2 progreeeeblo filtere, in the fora of o eonolithic integrated aixed enelogue-digital circuit conteined in e houeing bearing: - en idantificetion aarkinq coneieting of or includinq (one of) the following coebinetion(s): AD 6432 othor identification eorkinge releting to devicee coeplying with tha aboveeentioned deecription Dssodulstor, cepabla of receiving end deeoduleting e dels strsas with a tranafar rate froe 1_8 to 8_5_ Hbite/e, in the fore of a aonolithic integreted eixed enologue-digilel circuit contained in a houaing beering: - on identification aarking coneieting of or includinq (one of) the following coebinetion(a): AD 6461 - other identificetion eorkinge releting to devicee coaplying with the ebovoeentioned deecription Active filter, providing filter type end opereting frequency selection, in the fore of e eonolithic integreted eixed enelogue-digitot or onotoque circuit conteined in a housing baaring: - an identificetion eerkinq coneieting of or includinq (one of) the following coebinetion(e): HAX 274 HAX 275 HAX 288 other identificetion aarkinga releting to devices cosplying tsilh the ebovoeentioned deecription Filter of C-H08 technology, «ith a progrsssabte cut-off frequency of 4,5 HHz or eore but not exceeding 25,2 MHz and a prograeeebte frequency eeplificetion not exceeding 9 dB, in the fore of e eonolithic integreted enologue circuit contained in a houeing beering: - en identificetion eerkinq coneieting of or includinq (one of) the following cosbinstionts): AD 898 - othsr idsntificstion Barkings ralsting to devices coaplying •ith the oboveeentioned deecription Progreeeable filter of bipoler technology, «ith o prograaaable cut-off frequency of 5 HHz or eore but not exceeding 15 MHz and e prograaaabla peek frequency end bendaidth, coeprieing a eeven-pole filter end e differentiotor, in the fore of a aonolithic integreted enologue circuit conteined in o houaing baaring: - an identificetion eerkinq coneieting of or includinq (one of) the following coobinetion(e): 32F8911 32F8812 other identificetion eorkinge releting to devices cosplying •ith the oboveeentioned deecription Anologue signsl sicroprocsssor of bipolsr tschnology, providing sutoeetic gsin control, rssd-signsl procsssing snd generation of head-positioning signsls for aagnetic hoede in disc storage unita, in the fora of a aonolithic integreted enologue circuit conteined in o houoing beering: - en idantification aarkinq coneieting of or includinq (one of) the follo«inq coebinetion(e): 4 1 // CN c o de T A R IC D e s c r i p t i on Rate of s u l o n o e o ue duty ( X) 8N 28961 896 e x 8 5 4 2 3 8 99 «94 M o d u l a t or of b i p o l ar t a c h n o l o g y, o p e r a t i ng in the UHF band, for - othsr i d s n t i f i c s t i on B a r k i n gs rslating to d e v i c es c o s p l y i ng «ith ths a b o v a a e n t i o n ed d a a c r i p t i on tha c o n v e r s i on of audio and video s i g n a l s, in s f r e q u e n cy range of 4 78 H Hz or aore but not e x c e e d i ng 6 38 H H z, in the fore of a a o n o l i t h ic i n l a g r a t ed a n a l o g ue c i r c u it c o n t a i n ed in a h o u s i ng bear ing: - an i d e n t i f i c a t i on aarkinq c o n s i s t i ng of or includinq (one o f) the f o l l o w i ng c o a b i n a t i o n ( s ): ALP 181 CXA 1333 899 0 x 9 5 4 2 3 6 98 (67 A H - b o nd receiver of bipolar t a c h n o l o g y, p r o v i d i ng c o n v e r s i on of - othar i d e n t i f i c e t i on a a r k i n gs relating to d e v i c es c o a p l y i ng aith tha a b o v e e e n t i o n ed d e e c r i p t i on radio f r a q u a n cy ( R F) into dual i n t a r a e d i a te f r e q u e n cy (IF) and d e t e c t i on of audio fraquancy, in the fore of a a o n o l i t h ic integrated a n a l o g ue circuit c o n t a i n ed in a h o u s i ng b e a r i n g: - an i d e n t i f i c a t i on aarkinq c o n s i s t i ng of or including (one o f) the f o l l o w i ng c o a b i n a t i o n ( s ): 3848 998 e x 8 5 4 2 3 8 99 «98 FM-bend r e c e i v e r / d e a o d u l a t or of b i p o l er t e c h n o l o g y, c o a p r i s i ng - other i d e n t i f i c a t i on a a r k i n gs relating to d e v i c es c o e p l y i ng with the e b o v a a e n t i o n ed d e e c r i p t i on 2 c o n v e r s i on s i x e r s, s data sticer and 6 a a p l i f i e r s, in the fore of a a o n o l i t h ic integrated a n a l o g ue circuit c o n t a i n ed in a h o u s i ng b e e r i n g: - an i d e n t i f i c a t i on aerkinq c o n s i s t i ng of or includinq (one o f) the f o l l o w i ng c o a b i n a t i o n ( s ): 1QX6 9 82 8 x 8 5 4 2 3 8 99 «18 S w i t ch unit of b i p o l sr t e c h n o l o g y, for eudio s i g n a l s, h a v i ng a - other i d e n t i f i c e t i on a a r k i n gs releting to d e v i c es c o a p l y i ng with the s b o v e m e n t i o n ed d e s c r i p t i on d i s t o r t i on not e x c e e d i ng 8,885 X, c o a p r i s i ng 2 c o n t r ol u n i ts and 2 a l t e r n a t i ng s w i t c h e s, in the fora of a a o n o l i t h ic integrated a n a l o g ue c i r c u it c o n t a i n ed in a h o u s i ng b e a r i n g: - en i d e n t i f i c e t i on aarking c o n s i s t i ng of or includinq (one o f) the f o l l o w i ng c o m b i n e t i o n ( s ): TK 1 5 8 22 Z 983 6 x 8 5 4 2 3 8 99 «11 S w i t ch u n il of g a l t i ua a r s e n i de ( G a A s) s e a i c o n d u c t or a a t e r i a l, - other identifi estion a a r k i n gs relating to d e v i c es c o m p l y i ng with the a b o v e a e n t i o n ed d e s c r i p t i on with an insertion toss not e x c e e d i ng 1,6 dB at a f r e q u e n cy of 2 G H z, in the fora of a a o n o l i t h ic integrated a n a l o g ue circuit c o n t a i n ed in a h o u s i ng b e a r i n g: - an i d e n t i f i c a t i on aarkinq c o n s i s t i ng of or includinq (one o f) the f o l l o w i ng c o a b i n a t i o n ( s ): SW 239 SW 259 SW 419 other i d e n t i f i c a t i on a a r k i n gs relating to d e v i c es c o m p l y i ng with the s b o v e m e n t i o n ed d e s c r i p t i on / i<r CN code TARIC Description Rate of Bulonoaous duty (X) 964 8x85423699 «12 985 ex85423899 «13 906 ex85423899 «14 907 ex8S423899 «15 908 BX8S423899 «16 909 ex85423899 «17 Audio noiee reduction circuit of bipoler technology, heving en input voltoge not exceeding 18 V, in the fore of a aonolithic intagrated enologue circuit conteinad in a houoing beering: - an idantificetion eerkinq coneieting of or including (one of) tha following coebinetion(e): LM 1894 TK 186S4 othar identificetion eorkinge releting to devicee coeplying «ith the oboveeentioned deecription Monolithic integreted analogue circuit of bipoler technology, for overvoltege protection, conteined in e houoing beering: - an idantificetion aarking coneieting of or including (one of) the follo«ing coebinotion(e): 1515 P8 PI P2 P3 P4 P6 TI8P 1872P3 TI8P 1882 TI8P 2188 TI8P 2299 other idantificetion earkinga releting to devicas coaplying «ith tha aboveeentioned deecription Frequency convertor of gelliue areenide (GsAs) sasiconductor aaterial, for ths convsrsion of frsqusnciss of 19,25 GHz or sore but not exceading 12,75 GHz to frequenciee of 959 MHz or eore but not exceeding 2959 HHz, in the fore of e eonolithic integrated analogue circuit conteined in e houeing beering: - an idantificetion eerkinq consisting of or includinq (one of) the following cosbinstionts): 29876C AKD 12886 AKD 12818 AKD 12811 AKD 12575 AKD 2488 AND 2881T4C FHH S163 - other identification eerkings rslsting to devices cosplying with ths aboveeentioned deecription Vollage-to-frequency convertsr, coaprieing en aeplifier, in the fore of a aonolithic intagrated enologue circuit contained in a housing bearing: - an identificetion eerking coneieting of or including (one of) Ihe following coebinetion(s): VFC32 vFciee vFciei - other identification aarkinga ralating to devices coeplying with the abovaaantionad dascription Frequency convertsr of bipolsr tschnology, «ith s conversion gain of 7 dB, cspebls of convarting sn input frequency of 65,8 KHz into sn output frsqusncy of 888 kHz, in ths fors of s eonolithic intsgrslsd snalogus circuit containad in a housing bear ing: - an identification sarking consisting of or including (ona of) the following coabination(a): 886-6227 other identificetion earkinge releting lo davicaa coaplying with the aboveaantionad daacription Current-to-vollsga convartar «ith an input currant not exceading 186 «A and an output voltaga not axcaading -19 V, in the fora of a eonolithic integrated analogua circuit contained in a housing bsaring: - an identification aarkinq conaiating of or includinq (one of) the following coabination(a): ACF 2191 yJM CN code TABIC Deecription Rate of autonoaous duty (X) 919 0 x 8 5 4 2 3 8 98 (18 911 6x85423899 (19 912 8x85423699 (26 913 6x85423699 «21 914 ex85423699 «22 915 8x85423899 «23 - other identification aarkings relating to devices coaplying «ith the eboveaentioned daacription Convarlar/aeplifier of bipolar technology, «ith en output level of 22 dBe et e frequency of 999 HHz end en input lavel of -6 dBe, in the fore of o eonolithic integreted analogue circuit conteined in e houeing beering: - en identificetion eerkinq conaiating of or includinq (one of) the following coabination(s): HP 3661 - other identification aarkings relating to devices coeplying aith the ebovoeentioned description BH8-convsrlar for coaputing the root aaan aquara (BMS) value of wsve-foraa end converting thia value to en equivalent direct currant or an équivalant direct voltege, in the fore of an eonolithic integratad analogua circuit contained in a housing beering: - en identification aarkinq consisting of or including (one of) the following coebinstion(s): AD 536 A AD 636 AD 637 - other identification aarkings rslating to devices coaplying aith the sboveaantionad description Tesperature tranaducer, in the fora of a aonolithic integreted analogua circuil contained in a houaing bearing: - an idantification marking consisting of or including (one of) the following coabination(s): AD 586 AD 582 - other identification aarkings relating to devices coaplying aith the abovaaantionad description Air pressure sensor, operating aith B pressure range of 28 kPa to 185 kPA, in the fora of a aonolithic integreted analogue circuit contained in a housing beering: - sn identification sarking consisting of or including (one of) the foltoaing coabination(s): MPX 4168A other identification aarkings releting to devices coaplying with tha abovaaantionad daacription leega sensor consisting of s row of photosensitive areas and a aatrix linked to ahift registers, in the fore of a aonolithic integrated analogue circuit contained in a housing bearing: - an identification aarking consisting of or includinq (one of) the following cosbinstion(s): ILX 588 LZ 2619 PD 3573 TCD 183 TCD 185 TCD 133 TCD 141 - othsr idsntification aarkings relating to devices coaplying with the abovaaentioned description Interline charge-coupled (CCD) ieage sensor, in the fora of a aonolithic integrated analogue circuit conteined in a housing bearing: - an idantification aarkinq consisting of or includinq (one of) the following combination(s): ICX 818 ICX 821 ICX 822 ICX 824 ICX 838 ICX 638 PD 3732 ^> CN code TABIC Description Rate of sutonosous duty (X) 916 8x85423699 «24 917 ex85423899 «25 (85423899 «26 919 6x85423699 «27 929 ex85423699 «28 othsr identificstion ssrkings releting to devicee coeplying «ith the ebovBssntionsd dsscription Vidao procsssing circuit of bipoler technology, for signals fros a charge-coupled (CCD) ieoge aeneor*, in tha fore of e eonolithic integreted enologue circuit conteined in o houeing bearing: - an identification aarkinq coneieting of or includinq (one of) the following c o a b i n a t i o n ( s ): AN 2614S AN 2145FHP CXA 1316A0 CXA 1396 CXA 1391 CXA 1392 II 3P69 II 3P81A II 3P82 IB 3P97 II 3V17 or othar idantification aarkings rslsting to devicee coeplying aith the eboveesntionsd dascription Signsl procsssing circuit of C-H08 tschnology, providing dslay of scanning periods for horizontsl iasgs linss of a charge-coupled (CCD) image eanaor, cosprising s clockgenerslor, a ctaap circuit and a ssspls snd hold circuit, in ths fors of s aonolithic intagratad analogua circuit contained in a houaing bear ing: - an identificetion aarkinq conaiating of or includinq (one of) the following combination(s): CXL 1586 LC 89966 H7483A HSM 6965 B8 HSH 7461 B8 other identification aarkinga ralating to davicas coaplying with the sbovementioned daacription Detector for aaplitude peaks in raad/arita aignala of disc storage units, consisting of a differential aeplifier with autoaatic gain conlrol and a praciaion full-way* ractifiar, in the fora of a aonolithic intagratad analogue circuit conteinad in a houBing bearing: - an identification aarkinq consisting of or includinq (one of) the following combination(s): 32P3941 ML 8464 other identification aarkinga ralating to devices cosplying aith the aboveaentionad daacription 5-channel voltege comparator for aonitoring laap-circuiIs, in ths fore of a aonolithic intagratad analogua circuit containad i n a housing bear ing: - an identification aarkinq consisting of or including (one of) the fotloaing c o a b i n a t i o n ( s ): AD 22881 - other identification aarkings rslating to devicaa coaplying aith the aboveeentioned dascription Voltsgs reference circuit providing e typicel output voltage not exceeding 18 V with e drift elope (output voltage temperature c o - e f f i c i e n t) not exceeding 25 ppe/'C, in the fore of a aonolithic intagratad analogue circuit contained in a housing bearing: - an identification sarking consisting of or including (one of) the following c o a b i n a t i o n ( a ): AD 588 AD 688 LT 1821 BEF 182 other identification aarkinga ralating to devices cosplying wilh the aboveaentioned dascription />•?$ CN code TABIC Dascription Bate of autonomous duty (X) 921 8x85423699 (29 Voltage reforenco circuil «ith e rsvsrss breakdown of 1,235 V (14 eV) or 2,5 V (±26 e V ), in the fore of e eonolithic integreted enologue circuit conteined in e houoing baaring: - an identification eerking consisting of or including (one of) the allowing coebinetion(e): LT 1684 922 Bx85423699 (38 923 6x85423889 (31 924 ex85423899 «32 925 6x85423899 «33 - other identificetion esrkings rslating to devices cosplying with the ebovoeentioned deecription Voltege converter end regulator of bipolar tachnology, with a voltsgs looe not exceeding 1,6 V et en output current of 166 sA, opsrsting aith s supply voltsgs rangs of 3,5 V or sore but not excBsding 15 u, in the fore of e eonolithic integrstsd analogue circuit contained in s houaing beering: - on idsntification eerking coneieting of or includinq (one of) the following coobinetion(e): LT 1854 - other identificetion earkings rslating to devices coaplying «ith lha abovaaenlionad description Voltsga convertsr of C-MOS tschnology, cspsble of inverting, doubling, dividing or aultiplying input voltages, opereting at s supply voltsgs rangs of 1,5 V or sors but not exceeding 16 V, in tha fors of s sonolithic integrated analogue circuit contained in e houeing beering: - an idantification aarkinq consisting of or including (one of) the following coebination(s): ICL 7666 HAX 1644 - other identification aarkings relating to devices cosplying with ths sbovassntionsd daacription Voltaga-to-currenl convarter of b i p o Ur technology, with e selectable input voltage renge end e poser supply voltage of 13,5 V or eore but not exceeding 46 V, coaprising a current transsittsr and a voltage reference circuil, in the fora of a Bonolithic integrated analogua circuit contained in a housing bearing: - an idsntificstion aarking consisting of or including (one of) ths following coabination(s): XTB 118 - othar idanlificalion aarkings rslating to devices coaplying with tha abovaaentioned deecription Voltaga convartar of C-MOS tachnology, capable of Iransforaing an input voltage level not exceeding 5 V at an input current not axcaading 8,1 sA into sn output voltsge not exceeding 15 V et an ouput currant not axcaading 1 aA, in the fora of a aonolithic integratad anelogue circuit conteinad in a housing bearing: - sn idsntificstion sarking consisting of or including (one of) ths following cosbinstionts): LB 36683N - other idantificstion aarkings ralating to devices coeplying with tha abovaaantionad dascription J If CN coda TABIC D e s c r i p t i on Rate of aulonosouB duty (X) 926 e x 8 5 4 2 3 6 99 «34 927 e x 8 5 4 2 3 6 99 «35 929 8 x 8 5 4 2 3 6 99 «37 938 ex85423899 «38 931 ex85423899 «39 932 e x 8 5 4 2 3 6 99 «49 Current transailter of bipolsr technology, «ith en output current of 4 eA or aora bul not axcaading 28 eA, in the fore of a Bonolithic intagratad analogue circuit containad in a houeing bear ing: - an i d e n t i f i c e t i on aarking consisting of or including (one o f) the following c o s b i n a t i o n ( s ): XTB 163 XTB 184 - othsr i d s n t i f i c s t i on «srkings rslating to davicaa coaplying «ith the s b o v s s e n t i o n ed description Frsqusncy converter of galtiua arsenide (GsAs) sssiconduclor a a t e r i e t , _ c a p a b le of converting an input frequency of 586 MHz or eore but not exceading 2,5 GHz into an output frequency of 36 MHz or aora but not exceeding 586 MHz, in the fore of a aonolithic integreted analogua circuil contained in e houaing bear ing: - an i d e n t i f i c e t i on aarking consisting of or includinq (ons o f) ths following c o « b i n a t i o n ( s) : TO 9281 TO 9262 TO 9293 - othsr idsntification aarkings ralating to davicaa coaplying aith the a b o v e e e n t i o n ed description Fraquancy converter of bipolar technology, operating aith a frequency renge of 866 MHz lo 968 MHz and aith an input level not axcaeding -6 dBe, in the fore of a aonolithic integrated enalogue circuit contained in a housing bsaring: - an identification aarkinq consisting of or including (one of) the following c o m b i n a t i o n ( s) : CXA 1851N - other identification markings releting to devices coaplying with Ihe e b o v e a e n l i o n ed description 6-chennel DC-to-DC converter of BiMOS technology, in the fora of a aonolithic integrated analogue circuit contained in a housing bearing: - an i d e n t i f i c e t i on sarking consisting of or includinq (one of) the following c o a b i n a t i o n ( s ): M8 3799 - other identification earkings releting to devices coeplying aith the a b o v e a e n t i o n ed description A e p l i f i e r / c o a p a r a t or of bipoler technology, for the a a p l i f i c a l i on and comparison of phBse/fraquency signals fros sensor inputs, in the fors of a Bonolithic integrated analogue circuit conteined in a housing bearing: - 8n i d e n t i f i c a t i on aarkinq consisting of or includinq (one of) the following c o a b i n a t i o n ( s ): CXA 1418 N - other i d e n t i f i c a t i on aarkings relating to devices cosplying with ths a b o v e a e n t i o n ed description Voltage d é t e c t i on circuit, capable of reaatting external c i r c u i t s, in the form of a monolithic integrmted analogue circuit contained in a housing baaring: - an i d e n t i f i c a t i on aarking consisting of or including (one of) the following combinetion(s ) : M 51957 M 51958 //JsD CN code TABIC Deecription Bate of autonosous duty (X) 933 ex85423698 «41 - other identificetion eorkinge releting to devices coeplying «ith the obovoaantioned deecription 8 Half-bridge rectifier, coneieting of 2 field effect trensistors of N08 technology (H08PETe), copoblo of driving inductive or copocitiva loada aith a noainel voltoge of 56 V end a noainal current of 2 A, in tha fora of e eonolithic integreted enologue circuit conteined in e houeing beering: - en identification eerking coneieting of or including (one of) the following coobinotion(e): 8i99560" 934 ex85423899 (42 935 ex85423899 (43 936 ex85423699 (44 937 E X 8 5 4 2 3 9 99 «45 938 ex65423699 «46 - other identification aarkinga releting to devices cosplying with tha abovaaantionad deecription Progreaaable diode orrey, coneieting of 14 individuel diodes end a ractifiar, of galtiua araonide (GsAs) sssiconductor aeteriel, in tha fora of a aonolithic integreted enologue circuit conteined in o houeing beering: - en identification eerking coneieting of or including (one of) the following coobinotion(e): 16G818 16G811 - other identificetion eorkinge relating to devices coaplying with tha oboveeontionod deecription Pheee-locked loop (PLL) deeodulstor, «ith a typical operating fraquancy of 488 HHz, coeprieing en oaciltator and a carrier detector, in the fore of e eonolithic integrated analogue circuit contained in e houeing beering: - en identificetion eerkinq consisting of or including (one of) ths following cosbinstionts): TDA 8812H - othsr idsntificstion ssrkings relating to devices coaplying with the eboveoentioned deecription Acceleretion eeoeureeant circuit, coaprising a capacitif sensor, in the fore of o eonolithic integrated analogue circuit containsd in s housing bssring: - sn idsntificstion sarking consisting of or including (one of) the following coabination(s): ADXL58 - other identificetion eorkinge releting to devices coaplying with the eboveBenlioned deecription Fhotodelector, opereting et e «avalangth of 786 na, in the fora of a aonolithic intagretad anelogue circuit contained in a houeing beering: - en identificetion eerkinq consisting of or includinq (one of) ths following cosbinstion(s): CXA 1753 H 52164 PHD 663 PN 7611 - othsr idsntificstion ssrkings rslating to devices coaplying «ith ths oboveeentioned deecription Hixer/oacillator, «ith a frequency ranga of 48 MHz or «ore but not exceeding 868 MHz, coapriaing a fraquancy bandswitch and an intaraadiote frequency ( IF)-eeplifier, in the fore of a aonolithic intagratad analogue circuit contained in a housing baaring: - an identification aarkinq consisting of or including (one of) tha following combinetion(s): /I & CN code TABIC Deecription Bete of sutonosous duty (X) TDA 5336 939 ex8S423899 (47 848 0x85423699 (48 941 8x85423899 «49 942 6x85423899 «59 943 6x85423699 «51 944 8x85423699 «52 - other identificetion eorkinge releting to devicee coeplying •ith the ebovoeentioned deocription Filter nolsork only coneieting of 16 resistors, 18 cepocitore end 16 diodee, in the fore of o eonolithic integreted enologue circuit conteined in o houeing beering: - on identificetion eerkinq consisting of or includinq (one o f) the following c o e b i n s t i o n ( s ): U8BC 1662 - other identificetion earkings relating to devicee coeplying •ith the ebovoeentioned deecription Ieoletion circuit for error eignels, cosprising en eoplituda eoduletor end en eeplifior, in the fore of e eonolithic integreted enalogue circuit contained in a houeing baering: - en identificetion earkinq consisting of or includinq (one o f) the following cosbinstionts): UC 1981 UC 2961 UC 3981 othar identification aarkings relating to devices cosplying «ith the aboveaentioned description Level indicator circuit, capable of interfacing bel«een s therssl sensor and a display unit, in the fore of a aonolithic integrated analogue circuit contained in a houaing bearing: - an identification aarking consisting of or includinq (one of) the following combination(s): TL 527 - other identification aarkings relating to devices coaplying •ith the aboveaentioned description Tiaer, in tha fora of a aonolithic integrated analogue circuit contained in a housing beering: - an identification aarkinq consisting of or including (one of) the following c o a b i n a t i o n ( s ): NE 555 TS 555 other idantification aarkings relating to devices cosplying •ith ths sbovassntionad dascription Audio compression/decompression circuit, operating at a eupply voltage of 3 V or aore but not exceeding 18 V, in the fore of a aonolithic integreted analogue circuit contained in a houaing bear ing: - an identification aarking consisting of or including (one o f) the following c o s b i n s t i o n t s ): SA 5752 SA 578 - other identification aarkings relating to devices cosplying •ith the aboveeentioned description FH-band racaivar, providing FN-signal deaodulation, coaprising at least e aixer, an intaraadiate frequency (IF) aaplifiar end e liaiter aeplifier, in lha fora of a aonolithic intagrated analogue circuit containad in a housing baaring: - an identification aarkinq consisting of or including (one o f) the following combinetion(s): SA 665 SA 887 SA 617 J3Z- CN code TABIC Deecription Bate of autonoaous duty (X) 946 8x85423899 «54 948 ex85423899 «56 549 ex85423899 «57 958 8x85423899 «58 951 ex85423899 «59 952 ex8S423B99 «68 other identificetion oerkinge releting to devicoe coaplying «ith the oboveaentioned deecription BF-bend receiver of bipoler technology, coeprieing a aixer, a receive eignol atrenglh indicetor (B88I) end a logeritheic/tieiting aeplifier, in the fore of e eonolithic integreted enologue circuit conteined in a houoing bearing: - an idantificetion eerkinq coneieting of or including (one of) the following c o a b i n a t i o n ( a ): AD 668 ether identificetion eorkinge releting to devicee coaplying aith tha aboveeentioned deecription Video eignol diacriainator, in the fore of a eonolithic integreted enologue circuit conteined in e houeing beering: - en identificetion eerkinq coneieting of or includinq (one of) the following c o s b i n s t i o n ( s ): LA 7311 LA 7356 - othsr identificetion eerkings releting to devices cosplying •ith ths sbovsssntionsd dascription Currant braaking del ice, coapriaing an array of 8 field effect traneislors (FETs) of ths N- or P-chsnnsl type, having a typical drain-to-sourcs brsskdo«n-voltsgs of +388 or -386 V, in the form of a aonolithic intagretad anelogue circuit contained in a houaing baering: - en identification aarkinq consisting of or includinq (one of) the following c o s b i n s t i o n t s ): AN6132NAB AP8136NA - othsr idsntificalion aarkings relating to devices complying •ith «ha abovaaantionad dascription F r e q u e n c y - t o - v o l t a ga converter, cosprising s voltege regulator and an output protectad against short-circuit, in the fors of a sonolithic intsgratsd analogua circuit contained in s housing bear ing: - an idantification aarkinq consisting of or includinq (one of) the following c o s b i n s t i o n t s ): 8N29736P1 othsr identificstion ssrkings rslating to devices coaplying with the abovaaentioned daacription SpBBch-tranafer circuit of bipolsr tschnology, in the fors of a sonolithic integrstsd snslogus circuit conteined in a housing bsaring: - an idantification aarkinq consisting of or including (one of) ths following cosbinstionts): HC 34118 othsr idsntificstion ssrkings rslating to devices coaplying •ith the oboveeentioned deecription FH-band raceiver of bipolar tachnology, providing FM-signal daaodulation, coeprieing el lasat a aixer, an intereediale frequency (IF) eeplifier end e lieiler aaplifier, in the fora of a aonolithic integreted analogua circuit contained in a housing baaring: - an idantification aarkinq conaiating of or includinq (one of) tha following coabination(a): CN cods TABIC Description Bate of a u l o n o a o ua duty (X) HC 13156 HC 13158 TA 2827F 955 8 x 8 5 4 2 3 8 89 «63 956 e x 8 5 4 2 3 6 99 «64 254 e x 8 5 4 2 3 6 99 «66 886 e x 8 5 4 2 3 8 99 «67 !3 e x 8 5 4 2 3 8 99 «58 othar idantification aarkinga ralating to devices cosplying with ths s b o v s s s n l i o n sd description Vollags c o a p a r a t o r, opereting within a coaeon voltaga range of -12 V or eore but not exceeding +16 V and e differential voltage renge of -24 V or eore but not exceeding +24 V and a rssponss lise not exceading 2,2 as, in ths fora of a aonolithic integreted o n e l o g uo circuit contained in a housing bearing: - an identificetion eerkinq consisting of or includinq (one o f) the following c o a b i n a t i o n ( a ): EL 2618 LH 119 LH 219 LM 319 LT 1616 T8 3762 other identificetion aarkings relating to davicaa coaplying •ith the e b o v o e e n t i o n ed deecription Phaaa-locked loop (PLL) circuit of bipolar technology, coapriaing an oaciltator and a frequency and/or phase detector, in the fore of e eonolithic integratad analogue circuil containad in a houaing baaring: - an identification aarking consisting of or includinq (one of) the following c o a b i n a t i o n ( s ): N523198P 8N 28967 other identification aarkings relating to devices coaplying with the a b o v e a e n t i o n ed description Circuil cepabla of swithching inductive snd resistive loeds, coaprising not sore than 4 diodes, 2 resistances snd 1 insulated gate bipolar transistor (1G6T) of the N-channet type having a collector-eaitter breakdown voltege of 319 V or aore, operating with a c o n t i n u o us collector current not exceeding 19 A snd aith 8 d i s s i p a t i on rats not Exceeding 166 W, in the fors of a aonolithic intagrated analogue circuit conteined in a houaing bear ing: - an identification aarking consisting of or including (one of) tha following c o a b i n a t i o n ( s) : 14N36GVL 14N48FVL - other identification aarkings relating to devices coeplying with ths a b o v e a e n t i o n ed description Audio signal processing circuit, capable of switching audio signals, c o s p r i s i ng autoaatic level conlrol c i r c u i t s, aaplifiers and eule c i r c u i t s, in the fora of a aonolithic integrated analogue circuit contained in a housing bearing: - an identification aarkinq consisting of or including (one of) the following c o a b i n a t i o n ( s ): LA 7282 - other identification aarkings relating to devices coaplying aith tha a b o v a a e n t i o n ed description <cording and raproducing signats processing circuit, Video in - fora of a aonolithic integrated analogue circuit contained in a housing bsaring: - an idantification aarkinq consisting of or including (ons of) tha following c o m b i n a t i o n ( s ): LA 7437 - other identification markings relating to devices complying aith the a b o v e a e n t i o n ed description CN code TABIC Description Bate of autonoeous duty (X) 885 ex85423699 «69 886 8x85423699 «78 887 exS5423699 «71 ex85423699 «72 Î9G 6*85423399 «73 957 ex8S424818 «61 Intermediate frequency (IF) receiver, opereting et en input frequency renge of 469 kHz to 588 HHz, coaprieing e oixer, aaplifiere, deeoduletore, en eutoeotic gein control detector and an oacilator, in the fora of o eonolithic integreted enologue circuit conteined in e houoing baaring: - on idantification aarkinq conaiating of or includinq (one of) the following c o a b i n a t i o n ( a ): AD 687 - other identificetion eorkinge releting to devicee coeplying with tho ebovoeentioned deecription Frequency converter of gelliue ereonido (GeAe) eeeiconductor material, for the convereion of input froouenciea of 78 HHz or aora but not exceeding 358 NHz to output frequenciee of 1,7 GHz or eore but not exceeding 2,5 GHz, in the fore of e aonolithic integreted enologue circuit conteined in e houeing bear ing: - an idantification eerking coneieting of or includinq (one of) the following c o e b i n o t i o n ( e ): RFIC 1813 BFIC 1814 - other identificetion eorkinge releting to devicee coaplying with the abovaaentioned deecription Switch unit of gelliue ereonido (GeAe) eeeiconductor eeterial, with an opereting frequency renge between 588 HHz end 1286 MHz, in the fore of e oonolithic integreted enalogue circuit containad in a houaing baaring: - an idantification aarkinq consisting of or includinq (one of) the following c o s b i n s t i o n ( s ): RFIC 8983 - other identificstion ssrkings rslating to devices cosplying with the aboveeentioned daacription Graphic displsy equalizer circuil, coaprising 7 passbsnd filters, in tha fora of a sonolithic integrated analogue circuit contained in e houeing beoring: - an identification aarkinq coneieting of or including (one of) the following c o s b i n s t i o n t s ): XR 1896 - other idantification aarkings rslsting to devices coaplying with the aboveeentioned deecription Audio signsl procsssing circuit, providing enhenceeent of non-encodsd sound signals snd phsss/asplituds distortion compensation, in tha fors of « aonolithic integrated analogue circuit contained in e houeing beering: - an identification aarkinq conaiating of or includinq (one of) the following c o e b i n e t : o n ( s ): XR 1871 - other identification aarkinga releting to devicee coeplying with the abovaaantionad dascription Microprocessor of C-M08 tachnology, aith a processing capacity of 32 bite, coneieting of a singla substrats Isyar on which are aounted 2 chipa, ona coapriaing a cantral procasaing unit (CPU) and the othar a aaaory unit, in the fore of a hybrid integrated circuit contained in e housing bsaring: - an identification aarking conaistinq of or including (one of) the following c o m b i n a t i o n ^) : ^x/jr CN code TABIC Deecription Rate of autonoaoue duty (X) 57-86888 57-19488 958 0 x 8 5 4 2 4 8 38 «81 959 0x85424838 «82 968 8x85424839 «83 835 8 x 8 5 4 2 4 8 38 (84 962 ax85424658 (81 963 8x85424956 «82 - othar identificetion eorkinge relating to davicaa coaplying •ith the oboveeentioned deecription 4_-chennel digitel-to-enelogue convertsr, ssch channel hsving e cepecity of 12 bite, in the fore of s hybrid intsgratsd circuit conteined in e houeing beering: - en identificetion earking consisting of or including (one of) the following c o e b i n e t i o n ( a ): AD 399 - other identificetion eorkinge relating to devices cosplying with the oboveeentioned deecription 16-bit digiIsl-lo-snslogus convartsr, in tha fora of a hybrid intsgrstsd circuit contained in e housing bsaring: - an idantificstion sarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): DAC 785 DAC 786 DAC 767 DAC 768 DAC 789 - other identification aarkings relating to devices coaplying •ith the ebovoeentioned description 12-bit enalogua-lo-digital convertsr of C-MOS technology, coaprising s ssapls and hold aaplifier having a dynaaic perforaanca of 1 MHz per aecond or aore, in the fora of a hybrid intagratad circuit containad in a housing bearing: - an idantificetion aarkinq consisting of or including (one of) the following c o a b i n a t i o n ( s ): AD8 112 ADS 117 - other identification aarkinge releting to devices coaplying with the aboveaentioned description 12-bit snalogua-lo-digital converter of bipolar technology, coaprising s voltsgs reference circuit, providing 8 sampling rste of at least 18 MHz, in the fora of a hybrid integrated circuit contained in e houeing bearing: - an identification aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): AD 9842 - other identifieel ion aarkings releting to devices coaplying •ith the aboveaentioned description Aaplifier for the frequency range 28 Hz lo 26886 Hz, in the fora of a hybrid integrated circuit contained in a housing baar ing: - an identification aarking consisting of or including (one, of) the following c o a b i n a t i o n ( s ): 8TK 4641 STK 4151 8T«C 4281 - other identification aarkings rslating lo devices coaplying •ith the abovesentioned description Aaplifier of galtiua arsanide (GaAs) saaiconductor aaterial, opereting within a frequency range of 872 MHz to 965 MHz, with an output poaar not exceeding 1,259 V (31 dBe) and an input power not exceeding 6,81 V (16 d B a ), in the form of a hybrid intagrated circuit contained in a houeing bearing: - an identification marking consisting of or including (one of) the following combination(s): CN code TARIC Description Bets of autonomous duly (X) 964 8x85424656 «63 965 8x85424858 «84 966 6x85424050 «05 967 ex8S424856 «06 968 ex854248S8 «87 5PG612381 FMC 986991-68 FMC 986991-79 HC 5852 othar idantification earkinga reloting to devicee coeplying •ith the abovaaantionad deecription Aaplifiar for a noainel renge of 8 or aora but not exceeding 78 kHz, with an iaolation voltoge of 758 V or aora and o leekege of not eora than 1 pA, in the fore of e hybrid integreted circuit conteined in a houaing beering: - on identificetion eerkinq coneieting of or including (one o f) the following c o a b i n a t i o n ( s ): ISO 186 ISO 162 180 186 180 128 180 121 - other identification eorkinge releting to deviceo coeplying with the oboveeentioned deecription Aaplifier «ith • progreaaable gein fector, in the fore of a hybrid integrated circuit conteined in e houeing beering: - en idantificalion aarkinq conaiating of or includinq (one o f) the following coabination(a) : 3666 G other identification eerkings rslating to devicee coeplying aith the aboveaentionad deecription Aeplifier, operating «ith a eupply voltaga of 28 V, for frequencies of 1625 MHz or eore but not excedding 1645 MHz, in the fora of a hybrid intagratad circuit contained in a houe i ng beer i ng: - an identification aarking conaiating of or including (ona of) the following c o s b i n s t i o n t s ): STM 1645-38 other identificstion ssrkings rslating to devicee coeplying aith the aboveaentioned deecription Aaplifier of bipolar tachnology, operating within a frequency range of 866 MHz to 958 HHz, «ith at least one of the following characterist ics: - a) sn output power of 12,5 U at an input po«er of 166 eV, - b) an output power of 28 9 at an input power of 268 aV, in the fora of a hybrid integreted circuit conteinad in a housing beer ing: - en idantificetion aarkinq coneieting of or including (one of) the following c o a b i n a t i o n t a ): a)PHV 5113 b ) N H. 828-1 b)MHV 826-2 other identification aarkinga ralating to devices cosplying «ith ths aboveaentioned dsecription Aeplifier, operating «ithin a fraquancy range of 68 KHz or aore but not exceeding 476 HHz, «ith an output po«ar not exceading 46 V and an input power of 159 aU or aore, in the fore of a hybrid intagrated circuit containad in a houaing baaring: - an identification aarkinq conaistinq of or includinq (one of) the following c o a b i n a t i o n t e ): BGV 135 BGV 145 BGV 45 other identification aarkings rslsting to dsvicss cosplying «ilh the aboveaentionad daacription ^ ?0 CN coda TABIC Deecription Bate of autonomous duty (X) 969 0x85424858 «88 978 0x85424858 «88 973 8x85424696 «81 974 8x85424696 «62 975 6x85424698 «63 976 8x85424699 «94 Aaplifiar, oparating «ithin a frequency renga of 468 HHz to 476 HHz, «ith an output po«er of 2 U at 6 V and an input power not exceeding 38 aa, in ths fors of s hybrid integreted circuit conteinad in a houoing beering: - on identificetion eerkinq consisting of or includinq (one of) the following c o e b i n e t i o n ( e ): H 88718 - other identificetion eorkinge releting to devices coaplying with tha abovaoontioned deecription Aaplifiar with an input power of 1 «V and an output power not exceeding 3,5 «J al a frequency renge of 888 HHz or aora but not exceeding 9J_5 NHz or et o frequency renge of 1719 HHz or eore but not exceeding 1785 HHz, in the fore of a hybrid integreted circuit conteined in e houeing beering: - en identification eerking consisting of or including (one of) the following c o o b i n e t i o n ( o ): FA 61314 OCPH 9491 other identificetion earkings relating to devices coeplying aith tha aboveeentioned description Dusl cereeic filter, operating within a frequency range of 872 HHz lo 959 HHz, in the fore of a hybrid integrated circuit containad in a houeing bearing: - an idantificetion aarking conaiating of or including (one of) tha following coabination(a) : 7FG6314B - othar identification earkings relating to devices coeplying with the abovaaentioned description Current detsctor, hsving sn input resistance not exceeding 9 Ohs, «ithstanding an isolation AC voltage of 3,75 kV or 4 kV during 1 sinuts, in the fors of a hybrid integrated circuit containad in a houaing baaring: - an identificetion aarking consisting of or including (one of) the following coabination(s) : HF8 113F661A1 HA 91666818 - other identification aarkings relating to devices coaplying with the ebovBeentioned deecription Voltaga reguletor «ith en input voltage not exceeding 1 kV and e fixed output voltage of 41,8 V (±8,5 V ), 162,6 V (ll V) or 124,3 V (ll V ), in tha fora of a hybrid integrated circuit containad in a houaing baaring: - an idantification aarking consisting of or includinq (one of) tha following c o a b i n a t i o n ( a ): 8TB 51482 8TB 51424 8TB 54841 - othar idantification aarkinga relating to devices coaplying •ith tha aboveeentioned description Voltsgs snd currsnt regulator, having an output voltage not axcaading 1 kV at a drive currsnt not Exceeding 9,7 A, coaprising s power trsnsistor and a control circuit with an oaciltator, in the fora of a hybrid integrated circuit contained in o houaing baar ing: - an identification aarkinq consisting of or includinq (one of) tha following c o a b i n a t i o n ( s ): 8 5786 S 6788 S 6799A //J? CN code TABIC Description Bsta of autonosous duty (X) 977 8 x 8 5 4 2 4 6 96 «65 978 6x85424896 «66 979 ex85424898 «87 383 6x85424696 «88 981 ex854246S6 «69 983 6x85424696 «16 other identification aarkings releting to devicee coeplying •ilh the sbovesentioned description Voltsgs rsgulator «ilh a noainal input opereting voltege of 276 V, on input current not exceeding 8 A end on opereting frequency not exceeding 268 kHz, in ths fors of o hybrid integrated circuit containad in a houeing beering: - en idsntificstion ssrking consisting of or including (ons o f) the following c o s b i n s t i o n t s ): MA 2816 MA 2828 MA 2836 othsr idsntificstion ssrkings relating to devicee coeplying «ith the abovBsentioned description Voltege end current regulator, having an input voltoge not exceeding 35 V end e quiescent currsnt not exceeding 168 |tA, coeprieing e field-effect trsnsistor (FET) with e drain current not exceeding 32 A, in the fors of a hybrid integreted circuit containad in a houaing bearing: - an identification aarkinq consisting of or including (ons of) the following c o s b i n s t i o n ( s ): STB M6523 - other identification aarkings relating to devicee coeplying «ith the aboveeentioned description Clock generator, in the fore of a hybrid intagrated circuit contained in a housing bearing: - an identificalion aarking consisting of or including (one of) Ihe following cosbinat!o n ( s ): 64G8211 - other identification earkings relating lo devices cosplying aith the aboveaentioned description Voltage regulating and relay circuit for central locking and alarm system, coaprising a constant voltsgs circuit snd s saspting circuit, in the fors of s hybrid intagratad circuit contained in a housing beering: - en identificetion aarking consisting of or including (one of) the following c o a b i n a t i o n ( s ): BX 6531 BX 6563 - other identification aarkings ralating to davicee coaplying with the aboveaentioned description Trsnseitlar of galtiua arsenide (GaAs) eeeiconductor salarial, operating aith frequencies of 21 GHz or eore but not exceeding 49 GHz, in the fora of a hybrid intagrated circuit contained in 8 houeing baaring: - an identification aarking consiating of or including (ona o f) the following c o a b i n a t i o n ( s ): 371-236 371-3E other identification aarkings ralating to davicaa coaplying aith the aboveaentioned description Aaplifier control circuit, coapriaing digital-to-enelogue converters snd analogue-lo-digital convartara, in ths fors of s hybrid integrated circuil contained in e houeing beering: - an identification aarking consisting of or including (ons o f) the following c o m b i n a t i o n ( s ): AD 55668 /7l? CN code TABIC Deecription Bale of autonomous duty (X) 985 8x85425686 «81 other identificetion aarkinge relating to davicss coaplying •ilh tha aboveeentioned deecription 8iIicon power bridge rectifier, «ilh reversa voltage not exceeding 869 V and an everaga forward currant of 1 A or aora but not exceeding 4 A. in the fore of a aicroesaeebly contained in a houaing 986 6x85425668 (62 Duel eilicon zaner diode, with a zanar voltage of 11 V or eore but not axcaading 13 V and a dieeipetion rata not exceading 286 «V, in tha fora of o oicroesssably contained in a houaing 987 8x85425888 (83 988 6x85425666 (64 989 ex85425( (65 233a ex85425888 «97 997 8x85438996 (31 998 ex85438998 (32 Quintupla fiald-affact traneietor (FET), having a drain-to-eourca breekdown-voltega of 168 V or aore, operating with a continuoue drain currant not exceading 5 A, end «ith a dieeipetion rata not exceeding 35 V, in the fore of a aicroaeaaebly contained in a houeing beering: - on identification eerkinq coneieting of or includinq (one of) the following coobinotion(o): 8LA 5821 - other identificetion eorkinge relating to devicee coaplying with the oboveeentioned deecription 8iI icon diode eeeeebly, coeprieing s diode «ith a reverse recovery tiaa not exceeding 1,5 us, s racurrant peak reverse voltage not exceeding 1588 V end en everaga foraard current not exceeding S A, in the fore of a aicroaaseably contained in a houaing Assssbly for ovorvoltege protection, consisting of an array of 4 diodss, «ith a braokdoon-voltage of 6 V or sore, 8 peek pulse poser of 386 B for 5 overvoltage periods of 26 ys eech, in ths fors of s eicroeeeeebly containsd in a housing of the SMD (Surface aounted device) type Overvoltege aupprassion circuit, cosprising 2 diodes, having ; rsvoree etond-off voltsge not exceeding 4,5 V, a reverse leakage current not exceeding 18 sA, s peek pulse current not sxcsading 38 A end e nooinol capacitance of 56 pF, in the fore of a aicrooeeoably conteined in e housing bearing: - an idantificetion eerking consisting of or including (one of) the following co«binotion(s): V2. 8 V3. 3 V4. 5 - other identification aarkings releting to devices cosplying «ith tha abovaaantionad dascription Asplifier of bipoler technology, operating «ilhin a frequency range of 68 HHz to 88 HHz, «ith en output power of 5 V at an input power of 1 etl, coneieting of active and passive eleaents aounted on o printed circuit, conteinad in a housing bearing: - an identificetion eerkinq consisting of or includinq (one of) the follo«inq cosbinetion(s): MHV 185 XHU 165 othsr identificetion eorkinge relating to devices cosplying with the oboveeentioned deecription Aeplifier of gelliue ereonido (GaAs) seeiconduclor aaterial, oparating with a frequency renge of 1718 MHz to 1785 MHz, with en output power of 3 M at an input power of 1 aU or «ith an input level not exceeding 5 dBa and an output level of 36,8 dBm or eore, coneieting of ective end paaaiva alaeanls aounted on a printed circuit, conteined in e houaing bearing: - an identificetion parking conaiating of or including (one of) the fotlo«ing coabination(«): FHC 1717 PHU 9912 /•</. « CN code T A B IC D e s c r i p t i on Bste of e u t o n o s o us duty (X) 999 6 x 8 5 4 3 8 9 98 «33 othsr i d s n t i f i c s t i on s s r k i n gs rslating to d s v i c ss c o s p l y i ng •ith the o b o v e e e n t i o n ed d e e c r i p t i on Asplifisr of bipolsr tschnology, o p e r e t i ng « i t h in s f r e q u e n cy rangs of 136 HHz to 174 HHz, «ith sn output po»er of 7 H et en input power of 1 «V, c o n s i s t i ng of s c t i vs snd p o e e i ve o l e e e n te eounled on s printed c i r c u i t, c o n t s i n ad in a h o u e i ng b e e r i n g: - an i d a n t i f i c e t i on eerking c o n s i s t i ng of or including (ons o f) the following c o a b i n a t i o n ( s ): MHV 667 1688 8 x 8 5 4 3 8 9 96 «34 Asplifisr of bipolsr tschnology, o p s r s l i ng « i t h in s f r e q u e n cy othar i d e n t i f i c s t i on e a r k i n gs ralating to d e v i c ee c o e p l y i ng «ith the o b o v e a e n l i o n ed d e s c r i p t i on range of 488 MHz to 476 MHz, «ith et leeet one of the f o l l o w i ng character i sii c s: - s) an output poser of 3 V at an input power of 1 eV, - b) an output power of 7 V at an input power of 1 as1, - c) an output power of 26 V at an input power of 158 eV, c o n s i s t i ng of active and psssive e l e s e n ts aounted on a p r i n t ed c i r c u i t, c o n t a i n ed in a housing b e a r i n g: - an i d e n t i f i c a t i on aarkinq c o n s i s t i ng of or includinq (one o f) the following c o a b i n a t i o n ( s ): a)MHV 784 b)MHV 767 c)HHa 726 1661 6 x 8 5 4 3 8 9 99 «35 Amplifier aith an isolation v o l t a ge of 1568 V or eore and other i d e n t i f i c e t i on aarkings relating to davicaa c o a p l y i ng with the a b o v e e e n t i o n ed d e s c r i p t i on with a leakage current not e x c e e d i ng 6,5 »A, c o n a i a t i ng of 2 c a p a c i t o rs and 2 a o n o l i t h ic intagrated c i r c u i te on a printed circuit which is aounted on a plastic c a r r i e r, the whole contained in a housing the exterior d i e e n s i o ns of which do not exceed 8 x 21 em, with not eore than 8 c o n n e c t i o ns and bear ing: - en i d e n t i f i c e t i on aarkinq c o n s i s t i ng of or including (one o f) the following c o m b i n a t i o n ( s) : ISO 122 1662 e x 8 5 4 3 8 9 98 «36 E l e c t r o m a g n e t ic display consisting of 7 e l e c t r o s s g n s t ic c o i U, other i d e n t i f i c a t i on markings relating to d e v i c es c o s p l y i ng with the e b o v e a e n l i o n ed d e s c r i p t i on which by meens of the residual m a g n é t i sa in the stators p r o v i de that the lest indication remains a v a i l a b le (aat a t e t a ), and 7 pivoting t i g h t - r e f l e c t i ng segments eech of which is attached to a bar magnet. The display is c o n t a i n ed in a houaing the e x t e r i or d i m e n s i o ns of which do not exceed 28 x 36 x 58 aa 1883 e x 8 5 4 3 8 9 99 «37 Digital iaage processor unit with a speed of 1 to 58 iaagaa per 1664 B x 8 5 4 3 8 9 98 «38 second, aith s spatial resolution of 512 x 512 p i x e ls or sore and a r a d i o m e t r ic resolution of 16 b i t s, c o a p r i a i ng aupply units and 11 printed c i r c u i ts on which ara aountad intagratad c i r c u i ts and other active snd passive e l e m e n t s, tha «hot» eounled in a frame, for use in the m a n u f a c t u re of c a r d i o d i a g n o a t ic a p p p a r a t us (a) Radio frequency (RF) modulator, o p e r e t i ng with a frequency rBnge of 43 MHz or aore but not e x c e e d i ng 876 M H z, c a p a b le of s w i t c h i ng VHF and UHF signals, c o n s i s t i ng of a c t i va and p a s s i ve elements mounted on a printed c i r c u i t, c o n t a i n ad in a housing /'// CN code TABIC Deecription Bate of autonomous duty (X) 1665 ex85438999 «39 1616 ex8S438996 «44 1612 ex85438999 (46 1613 ex8S438996 (47 1814 ex8S438999 «48 1615 ex85438999 «49 Aeplifier, opereting with o frequency renge of 925 MHz to 966 HHz, with an output. power of 16 » at an input powar of 9,635 V (15,5 d B e ), coneieting of ective end peeeive eloeente eounted on o printed circuit, conteined in a houeing beering: - en identificetion aarkinq coneieting of or including (one of) the following coabination(a): MHV 916 - other identificetion eorkinge releting to devices cosplying with tha abovaaentioned deecription Bectifiar aseeably of power berrier diodee, consisting of 2 diodee with on averago forward current not exceeding 666 A and a repetitive rovoroa peek voltege not oxceeding 48 V, each contained in a housing end connected by o cooeon cathode Piezo-olectric cryetel clock oocillotor with a 'ixsd frequency, within a frequency ranga of 1,8 HHz to 67 HHz, conteined in a houeing bearing: - an identificetion eerking coneieting of or including (one of) the following coobinetion(e): B4698 8 B4866. 8 - othar identificotion eorkinge releting to devices coeplying with tha ebovoeentioned deecription Troneeitter/receiver powered by e received pulse «ith s frsqusncy of 134,2 kHz, cepeble of transe i 11 i ng aessage idsntificstiono with srror corrsclion codes, cosprising a solsnoid, s cspscilor snd sn intsgrstsd circuit, the «hole contained in a hareeticolly seeled glass cspsute Mechanical vibratory gyroscops drivan by a 25 or 26 kHz oscillstor, cosprising s differential aaplifier end a detector circuit, containad in a houaing bearing: - an identificetion aarking consisting of or including (one of) the following cosbination(s): ENC65D - othsr idsntificstion ssrkings releting to devices complying «ilh the oboveeentioned deecription Aeplifier, operoting «ithin e frequency renge of 866 MHz to 966 MHz, «ith ot loeot one of the fol low i ng characteristics: - e) on output po««r of 1,41 V ot on input poaer of 5 aV, - b) an output po«er of 2 U it en input power of 1 B V, - c) an output po»«r of 1,8 ou 3,2 N et an input power not axcaading 2 aU, - d) an output po«ar of 3,5 U at an input poaer of 1 or 166 «V, - e) en output poaer of 6 V at an input power of 168 «V, - f) an output po«ar of 14 M al an input powar of 1 or 166 aU, - g) an output po««r of 7 at at en input powar of 28 aW, - h) en output po««r of 2. 4 or 3,2 N et an input poaer not exceeding 5 so1, - ]_) en output po»er not exceeding 18 V end an input poaer not sxcesding 288 so, - p sn output po««r not sxcssding 25 V snd an input poaer not exceeding 158 ok), conaiating of active end pooeive eleeente eountad on a printed circuit, contained in o houeing beering: - en identificotion eerking consisting of or including (one of) the following coabination(s): a)HHU 9862 b)HH» 883 c)PF 6144 c)PH« 992 d)HH* 953 d)XHU 963 «)8H» 5115 e)XHM 5115 f)HHN 914 f)HHU 915 g)PF 9146 h)PF 6148 i)HHw 918 j)HH« 916 j)HHU 926 j)MHU 927 j)PH« 2965 j)PHV 925 j)SHW 5116 j)XHV 2962 /tn CN cods TABIC Description Bals of sutonosous duty (X) 1916 0 x 8 5 4 3 8 9 96 «56 - othsr idsntification ssrkings releting to devices coaplying •ith the ebovoeentioned description 9 Opto-eleclronic circuit coeprieing one or eora lighl-aaitting diodee (LEDs) and one photodiode «ith eeplifier circuit end en integreted logic goto arrays circuit or one or eore lighl-aaitting diodae (LEDs) snd st Issst 2 photodiodes «ith aaplifiar circuit, containad in a plaetic housing beering: - en identification ssrkinq consisting of or includinq (one of) ths following c o s b i n a t i o n ( s ): HC PL 2486 HC PL 2738 1617 8 x 8 5 4 3 8 9 98 «51 1618 8x85438999 «52 1626 6x85438996 «55 233b ex85438996 «56 993 8x85438998 «57 - other idantificetion Barkings relating to devices cosplying «ith the oboveeentioned deecription Teeperature coapenssting fraquency oscillator «ith a noainal frequency of 12,8 or 13 HHz end opereting et e supply voltsga of 3 V (±8,3 V ), cosprising s printed circuit on «hich ere counted at laast a piazo-alactric crystal and an adjustable capacitor, containad in a houaing «ith not eore then 5 connections snd bsaring: - an identification sarking consisting of or includinq (one of) the following c o s b i n s t i o n t s ): T C X 0 - U1 TXO 2683 - other identification aarkings rslating to devices coaplying with the aboveaentioned description Oscillator, «ilh a centre frequency of 29 GHz or aore but not exceeding 42 GHz, consisting of active and passive elements not sountsd on s substrate, containad in a housing bearing: - an identification aarking consisting of or including (one of) the following c o m b i n a t i o n ( s ): 372-82 372-63 - other identification aarkings releting to devices coaplying with the Bboveaentioned description Voltaga regulator aith an output voltage of 5 V or aore but not exceeding 12 V and a dropout voltage not exceeding 1 V at an output current of 1,5 A, consisting of a poaer transistor and an integrated circuit aounted on a metallic baseplete, contained in a houeing bearing: - an identification aarking consisting of or including (one of) the foltoaing c o a b i n a t i o n ( s ): 3658C 3898C 3126C - other identification aarkings relating to devices coaplying aith the aboveaantioned description Overvoltage suppression asseebty, coaprising 8 diodes, having a raverse stand-off voltage not excaeding 4,5 V, a reverse leakage current not exceeding 16 uA, a peek pulse current not exceeding 36 A and a noainal capacitance of 56 pF, containad in a houeing Aaplifiar, operating aithin a fraquancy range of 1885 MHz to 1978 MHz, aith at leaat one of the following characterialica: - a) an output poaer not excaeding 15 V a^ an input power not exceading 56 eV (17 d B a ), - b) an output power o/_ 1 N or aore at an input power of 2 a« (3 d B « ), consisting of active and passive elements aounted on a printed circuit, contained in a housing bearing: - an identification aarking consisting of or including (one of) the following combination(s) : a)MHV 1815 b)FMC 1819 CN code TABIC Description Bate of sutonosous duly (X) 1821 6x85439696 «18 1821b 6x85439899 1624 ex85459998 1826 8x85489666 1627 ex85489669 1628 ex85489G96 «58 «61 «31 «32 «33 othar identificetion aarkinge releting to devicee coeplying •ilh the oboveeentioned deecription Duel field-effect treneietor (FET) with el leeot one of following cherecterietice: - s) of tho P-chennet type, heving o drein-to-eource breekdown-voltege of -28 V, opereting with a drain-current not exceeding 8,2 A end with o dieeipetion rote not exceeding 2 V, - b) of the N-chennel typo, heving o drein-to-eource breokdoen-voltege of 28 V or eore, opereting with e drain-currant not exceeding 3,5 A end with e dieeipetion rate not exceeding 2 W, conlsinsd in e houeing bearing: - an identificetion eerkinq coneieting of or including (one of) the following coebination(s): 8)9947 8)9953 s)MMDF2C62E e)MMDF2P62HD b)9956 b)9959 b)NHDFlN56E b)HHDF2C82E - other identificetion oorkinge releting to devicee coeplying «ith the oboveeentioned deecription Stainless stsel cethodo in the fore of e plete «ith an hanger bar snd plastic side strips Cell snd batlsry csrbon, in ths fore of rode, «ith a length of 34 aa or aore but not exceeding 168 ee end o dieeeter not exceeding 12 ee Contact iaege eanaor Optical unit, coneieting of o leeerdiodo end e photodiode, operating at a typical «avelength of 635 or 678 ne Infrared aignal receiver unit, coneiating of a photodiode end at least sn ssplifisr in tha fore of o eonolithic integrated circuit, contained in e houeing beering: - an identification eerking conaiating of or including (one of) the following coabination(s): GP1U58XB SBX 1618 - other identificetion eorkinge releting tc devicee coaplying «ith the ebovoeentioned deecription 183b ex8548S668 «35 Opticel unit coneieting of e leeor diode, o photodiode end a lens, operating st s typical «avelength of 1318 or 1558 na, contained in e housing 148 ex85489880 «37 U^niI, consisting of s rssonstor opereting «ithin e frequency range of 1,8 HHz or eore but not exceeding 48 MHz and a capacitor, contained in e houeing 1625 6x85489606 «38 1659 6x85489989 6x91189888 «39 «94 Electronic eeeeebly for e thereel printer heed, coneiating only of conductor alaaanla, integreted circuite end et least 9984 heatar eleeente, the «hole counted on e cereeic eubetrata the exterior dieensions of «hich do not exceed 2 x 51 x 271 •« Clock/cslsndsr circuit, consisting of s printsd circuit on «hich «re sountsd st leoet e quorlz oecillotor snd s sonolithic integreted circuit, tho «hole conteined in e houeing beering: - sn idsntificstion eerking coneieting of or includinq (one of) the following cosbinstion(s): DS 1287 DS 12887A D8 1387 HK 48T62 HK 48T88 HK 48T12 HK 48T18 BTC 63421 BTC 65271 BTC 72423 - other identificetion eerkings rslsling to devicee cosplying with ths sbovs«entioned dsscription JL'1 CN code TABIC Description Bale of sutonosous duty (X) 1831 8x86811618 8x96611899 1632 0x96812868 1633 8x98912668 1634 ex96812888 «18 «19 «18 «28 «38 1835 8x98819999 «19 Isage reverser aade up froa an asseebly of optical fibres Material conaiating of a polerieing file, eupported on ona or bolh aides by trsnspsrsnt sstsrisl Polsrising plsstic fils, consisting of s trsnsparsnl protective fils snd s polsrising sssbrans Polerieing lenticular plastic piste «ith e lenticular array pilch of 8,78 ae, a thickneee not exceeding 8,99 aa and the exterior disensions of «hich do not sxceed 749 x 974 ae Fresnsl lene of plastic, unaountad, «ith a diagonel of aora than 199 ce, for uee in the aanufacture of products falling «ithin heeding 8528 (e) 1836 6x98819898 (26 Beer projection screen, cosprising s Frasnal lens of plastic end s polarizing sheet of plsstic, for usa in the aanufacture of products fslling «ithin subhssding No 8528 (s) 1637 8x98819999 (38 Lens of plastic, unmounted, having a focal length of 3,86 aa (±8,1 mm) and «ith a diaaatar not exceeding 8 aa, for use in the aanufacture of compact disc players (a) 1838 8x98819698 1639 8x96619696 1646 8x96821168 (46 «66 «16 Optical fibre plate, for use in the aanufacture of screens and photocathodes for iaage inlensifiers (a) Prism for the splitting of light, unaounted, for use in the aanufacture of chorgad-couplad iaage (CCD) cameras (a) Adjustable lens unit, having a focal length of 96 mm or more but not excaeding 188 aa and coaprising s combination of between 4 and 8 glass or ssthscrylic lenses aith a diaaeter of 126 aa or aora but not axcaeding 188 mm, aach tana coated on at least one sida with a magnesium fluoride layer, for use in the manufacture of video projectors (a) 1841 8x96621166 «56 Lens unit, hsving a focal length of 75 mm or aore but not exceeding 94 aa, consisting of glass or plastic tenses, «ith a diaaeter of 66 am or more but not exceeding 188 mm 1642 ex99921966 «18 1643 6x99829991 1644 ex96629991 «16 «26 Lens unit, having a focal length of 24,96 aa (±8,1 m m ), a diameter of 16 mm and a length of 16 aa, for use in the aanufacture of products falling within subheading 85172168 ( B) Opticel element comprising an octagonal Fresnel tens, for use in the menufscture of overheed projectors (a) Lens, aounted, having a fixed focel length of 3,8 ae (±6,19 ee) or 8 aa (±6,4 a a ), aith a relative eperture of F2. 6 and a diaaeter not exceeding 33 mm, for use in the manufacture of cherged-coupled (CCD) CBaeres (a) 1845 ex98829899 «18 Optical unit, coaprising 1 or 2 roas of optical glass fibres in the fora of tanses and aith a diaaeter of 8,85 ae or aore but not exceeding 1,15 ae, embedded between 2 pleslic plates 1846 6x98189688 «18 Perls of apparatus for the projection of drawings of circuit patterns on ssnsitised sesiconductor material, only consisting of B plastic membrane aith 8 thickness not exceeding 3 pm end a metallic fraae 1847 96138636 Liquid crystal devices, other than activa aatrix liquid crystal devices 1648 6x96138896 «18 Polarisation insensitive fibre-optic isolstor, operating at a wavelength of 1366, 1486 or 1558 na, contained in a cylindrical houaing 1856 ax96179688 «16 Tharaat printer heed, coaprising st least 7168 heater elements aounted on 2 or aora caraaic supports, the whole conteined in 8 housing the exterior dieensions of which exceed 21 x 39 x 639 aa 6 6 8 6 6 8 6 6 8 6 6 8 8 8 8 8 8 8 8 yWÇ CN coda TABIC Description Bate of aulonoaous duty (X) 1852 8x98213696 «29 Vasculsr protheeie, neither woven nor knitted, of which the Isrgeet opening hee en intornol diooator of not exceeding 8 ee 1653 ex98213699 «39 Heart valves snd parte thereof 971 0x98318839 «18 1854 6x98319696 «18 Accelerotion eeoBuroeent device for autoootivo eirbeqe. cooprieing ective end peeeive aleoente aountad on a printed circuit end e ooneor. the whole containad in a houaing Aeeeebly for o looor align aeneor, in tha fora of a prinlad circuit coaprieing opticel filtere and a cherge-coupled (CCD) iaaga aeneor, the whole conteined in a houeing 1955 6x99328999 «16 Autoaotive eirbog ohock-oenoor, coaprieing a contect cepeble of «•itching s current of 12 A ot a voltage of 38 V, heving e typical contact raoiatance of 88 eohe 1656 6x91161286 «91 1657 8x91169688 ex91149666 «92 «91 1658 6x91169668 «93 Anseebly consisting of s printed circuit on which ore eounled one quertz oscillator, at taeot one welch circuit and, whether or not integreted, et leoet ona capacitor, of a thickneee not exceeding 5 ee, for uee in the eenufecture of products felling «ithin Chspler 81 (a) Asseably consisting of s printed circuit on which ie aounted a «etch circuit or e «etch circuit end o quertz oscillator, of a thickness not exceeding 5 ee, for uee in the eenufecture of products felting «ithin Chapter 81 (e) Asseebly consisting of a printed circuit on «hich ia aounted at least one «etch circuit, o quertz oecitletor end e piezo-electric sound slsssnt, «ith a thickneee exceeding 5 ee, for the eanufacture of producte felling «ithin Chopter 91 (e) 1668 6x96689166 «16 Non-fibrous plsstic psn-tips «ith sn internal channel 1861 ex96139666 «26 Piezo-electric ignition aachaniaa 8 9 6 6 8 6 6 8 8 6 Jit ** ( B) Conlrol of the uss for this special purpose shstl be carried out purauanl to tha relevant C o a a u n i ty p r o v i e i o n s. (b) HowsvBf, ths s u s p e n s i on is not slloaed whera processing is carried out by retail or c a t e r i ng u n d e r t e k i n g s. *1 1. Budget heading concerned: Chapter 12, Article 120 FINANCIAL STATEMENT 2. Title of operation: Proposal for a Council Regulation (EC) temporarily suspending the autonomous Common Customs Tariff duties on certain industrial and agricultural products. 3. Legal basis: Article 28 of the Treaty. 4. Objective of operation: Suspension of Common Customs Tariff duties in respect of the abovementioned products. 5. Prevention and protection measures: The end-use of certain of the products covered by this Council Regulation will be monitored in accordance with Articles 291 to 304 of Commission Regulation (EEC) No 2454/93 laying down provisions for the implementation of the Community Customs Code. 6. Cost of the operation: In order to limit the potential economic problems liable to arise on account of the time-limits set by existing regulations, this Regulation does not specify an expiry date. It will be reviewed, and amended if necessary, every six months, but in this case by means of a new regulation. The costs estimated below are therefore annual costs chargeable to the EC budget (uncollected customs duties). This Regulation covers products which have to date been the subject of three different regulations. Estimating costs is no easy task mainly due to the lack of recent Community statistics and to the arrival of the three new Member States, for which complete economic data is not yet available. the latest available EUROSTAT statistics relating to the last three regulations, In establishing costs, account was taken of: - - Member States' declarations on the use of suspensions and import forecasts, - rhe number of new and renewed suspensions. Based on the figures for the last three years, uncollected duties in respect of the products covered by this Regulation should reach some ECU 1 6 billion (i. e. an increase of 40% per annum since 1993). The true figure is, however, expected to be lower on account of the reduction or abolition of customs duties on a certain number of products under agreements concluded pursuant to Article XXIV. 6: 110 chemical products, currently under suspension, are now zero-rated - a general drop in duty from 14% to 7% on the most widely used integrated circuits - zero-rating for microprocessors and certain types of memory. Estimated annual cost of the current operation In these circumstances, the closest possible estimate of the amount of uncollected duties for the year 1996-97 stands at ECU 1 200 million compared with ECU 1 135 million for the same period the previous year (1 July 1995 to 30 June 1996). The current operation under the proposed Regulation will therefore give rise to an additional loss of resources of around ECU 65 million during the period 1 July 1996 to 30 June 1997. FINANCIAL STATEMENT ANNEX Figures for imports under suspension, based on EUROSTAT statistics, are available for each calendar year until 1994. They can be used to calculate the annual amount of uncollected duties for each of the three areas in question, i. e. chemical, micro-electronic and agricultural products. The figures for 1995, 1996 and 1997 are based on estimates, account being taken of: the average annual percentage rises in each area calculated on the basis of the 1991-94 figures, - - changes in the rate of CCT duties in 1995 and 1996 pursuant to agreements under the GATT and Article XXIV. 6. The amounts of uncollected duty, in ECU millions, are specified in the table below: Year 1993 1994 1995 1996 1997 agricul. microelect. chemicals total 20 471 216 707 26 704 283 27 920 265c) 30 7 8 6a ) , b) 210d> 32 1. 020 260 1. 013 1. 212 1. 026 1. 312 Table 1 Uncollected duty by calendar year The amounts have been calculated on the following basis: 1- agriculture: An average percentage increase of between 2% and 4% in the years 1995 to 1997. 2- microelectronics: An average percentage increase of between 40% and 30% in the years 1995 to 1997. For 1996, the figure calculated in this way has been by: a - ECU 150 million, on account of the zero-rating introduced for microprocessors and certain types of memory falling in CN headings 85 42 11 12 to 85 42 11 68. b - ECU 260 million, on account of the reduction in duties from 14% to 7% on other products of heading 8542. 3- chemicals: An average percentage increase of between 10% and 13% for the years 1995 to 1997. The figure calculated in this way has been reduced by: c - ECU 63 million for the year 1995, on account of the zero-rating of pharmaceutical products and derivatives (GATT). d - ECU 98 million for the year 1996, on account of the zero-rating of chemical products in Chapters 27 to 39 (Article XXIV. 6). JC/O As the regulations in question run from 1 July to 30 June of the following year the figures given for these periods were calculated using the arithmetic mean of two consecutive years (see Table 2). Year 1. 7. 1993-94 1. 7. 1994-95 1. 7. 1995-96 1. 7. 1996-97 chemicals microelect. agricult. 249,5 587,5 23 274 812 26,5 total 860 1112,5 237,5 853 28,5 1119 235 903 32 1170 Table 2 Uncollected duties by "regulation" years Account should also be taken of the accession of the new Member States, which submitted suspension applications in 1995 and 1996. Assuming that the percentage of uncollected duties equates to the number of suspensions granted to these States, a total of ECU 15 million and ECU 30 million in uncollected duties should be added for 1995 and 1996 respectively. The estimated amount of uncollected duty for the periods 1. 7. 95-30. 6. 96 and 1. 7. 96-30. 6. 97 is therefore ECU 1135 million and ECU 1200 million respectively. 45 O ISSN 0254-1475 COM(96) 216 final DOCUMENTS EN 02 Catalogue number : CB-CO-96-227-EN-C ISBN 92-78-04165-3 Office for Official Publications of the European Communities L-2985 Luxembourg yii\

Proposal for a COUNCIL DECISION authorizing the Portuguese Republic to extend until 7 March 1997 the Agreement on mutual fishery relations with the Republic of South Africa

http://publications.europa.eu/resource/cellar/d7cd3d2c-d8e7-43bd-9387-fe07463d33d6

eng

COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 28. 05. 1996 COM(%)231 final Proposal for a COUNCIL DECISION authorizing the Portuguese Republic to extend until 7 March 1997 the Agreement on mutual fishery relations with the Republic of South Africa (presented by the Commission) EXPLANATORY MEMORANDUM On 9 April 1979, the Portuguese Republic Gigned an agreement on mutual fisheries relations with the Republic of South Africa which entered into force on the Game day for an initial period of ten years, and which it was envisaged should subsequently rest in force for an indeterminate period unless it were to be denounced with twelve months notice. Under this fisheries agreement, annual fisheries licences can be granted to vessels flying the Portuguese flag. This was the case since 1989. Article 354 (2) of the Act of Accession of Spain and Portugal Lays down that the rights and obligations for the Portuguese Republic following from fisheries agreements concluded with third countries shall not to be affected during the period for which the provisions of such agreements are provisionally maintained. Under Article 354 (3) of the Action of Accession, the Council, acting by a qualified majority on a proposal from the Commission, is to adopt the decisions appropriate for the continuation of fishing activities resulting from such agreements. This may include prolonging them for periods not exceeding one year. In order to avoid interruption in the fishing activities of the Community vessels concerned, the Decision put forward in this proposal authorises Portugal to extend the fisheries agreement referred to above until 7 March 1997- X. PROPOSAL OF C O U N C IL D E C I S I ON of a u t h o r i z i ng t he P o r t u g u e se R e p u b l ic to e x t e nd u n t il 7 M a r ch 1997 t he A g r e e m e nt on m u t u al fishery r e l a t i o ns with t he R e p u b l ic of S o u th Africa THE COUNCIL OF THE EUROPEAN UNION. Having regard C o m m u n i t y, to the Treaty establishing the European Having Portugal, and regard to the Act of Accession of Spain and in particular Article 354 (3) thereof. Having regard to the proposal from the Commission, fishery the Agreement on mutual Whereas relations between the G o v e r n m e nt of the Portuguese Republic and the G o v e r n m e nt of the Republic of South Africa, signed on 9 April 1979, entered into force on that day for an initial period of 10 years ; whereas the Agreement remains in force for an indeterminate period if il is not denounced by the giving of 12 months" n o t i c e. the rights and obligations laying Whereas Article 354 (2) of the Act of Accession the down that agreements Portuguese concluded with third countries, shall not be affected during the period for which the provisions of such agree ments are provisionally maintained ; flowing, for Republic, fisheries from is to adopt, before Whereas, pursuant to Article 354 {3) of the said Act, the Council fisheries agreements concluded by the Portuguese Republic with third countries, decisions appropriate for the continuation of fishing activities the possibility of prolonging for periods not exceeding one the expiry of therefrom, including resulting the year ; whereas the abovcmenlioned Agreement has been extended until 7 March 1996<'); Whereas, in order to avoid fishing by the C o m m u n i ty vessels concerned being interrupted, it apears appropriate to authorize the Portuguese Republic to renew the Agree ment in question until 7 March 1997, HAS ADOPTED THIS DECISION Article 1 The Portuguese Republic is hereby authorized to extend until 7 March 199 7 the Agreement on mutual fisheiy relations with the Republic of South Africa which entered into force on 9 April 1979. Article 2 This Decision is addressed to the Portuguese Republic. Done at Vor the Council Ihe President O oj No i. "329 tf30. 12. °5p_ 36 ISSN 0254-1475 COM(96) 231 final DOCUMENTS EN 03 15 Catalogue number : CB-CO-96-241-EN-C ISBN 92-78-04473-3 Office for Official Publications of the European Communities L-2985 Luxembourg 4

Propopsal for a COUNCIL DECISION authorizing the Kingdom of Spain to extend until 7 March 1997 the Agreement on mutual fishery relations with the Republic of South Africa

http://publications.europa.eu/resource/cellar/590773c6-9526-4e74-abf6-89b10de7bef3

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 28. 05. 1996 COM(96) 218 final Proposal for a COUNCIL DECISION authorising the Kingdom of Spain to extend until 7 March 1997 the Agreement on mutual fishery relations with the Republic of South Africa (presented by the Commission) EXPLANATORY MEMORANDUM 1. On 14 August 1979, the Kingdom of Spain signed an agreement on mutual fisheries relations with the Republic of South Africa which entered into force on the 8 March 1982 for an initial period of ten years, and which it was envisaged should subsequently rest in force for an indeterminate period unless it were to be denounced with twelve months notice. Under this fisheries agreement, annual fisheries licences can be granted to vessels flying the Spanish flag. This was the case since 1989. 2. Article 167 (2) of the Act of Accession of Spain and Portugal lays down that the rights and obligations for the Kingdom of Spain following from fisheries agreements concluded with third countries shall not to be affected during the period for which the provisions of such agreements are provisionally maintained. Under Article 167 (3) of the Action of Accession, the Council, acting by a qualified majority on a proposal from the Commission, is to adopt the decisions appropriate for the continuation of fishing activities resulting from such agreements. This may include prolonging them for periods not exceeding one year. 3. In order to avoid interruption in the fishing activities of the Community vessels concerned, the Decision put forward in this proposal authorises Spain to extend the fisheries agreement referred to above until 7 March 1997. ± COUNCIL DECISION of authorizing die Kingdom of Spain to extend until 7 March 1997 the Agreement on mutual fishery relations with the Republic of South Africa THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to the Act of Accession of Spain and Portugal, and in particular Article 167 (3) thereof, Having regard to the proposal from the Commission, Whereas relations the Agreement on mutual fishery between the Government of the Kingdom of Spain and the Government of the Republic of South Africa, signed on 14 August 1979, entered into force on 8 March 1982 for an initial period of 10 years ; whereas the Agreement remains in force for an indeterminate period if it is not denounced by the giving of 12 months' notice; Whereas Article 167 (2) of the Act of Accession laying down that the rights and obligations flowing, for the Kingdom of Spain, from fisheries agreements concluded with third countries, shall not be affected during the period for which the provisions of such agreements are provisionally maintained ; Whereas, pursuant to Article 167 (3) of the said Act, the Council is to adopt, before the expiry of the fisheries agreements concluded by the Kingdom of Spain with third countries, decisions appropriate for the continuation of fishing activities resulting therefrom, including the possibility of prolonging for periods not exceeding one year ; whereas the abovementioned Agreement has been extended until 7 March 1996 ('); Whereas, in order to avoid fishing by the Community vessels concerned being interrupted, it appears appro priate to authorize the Kingdom of Spain to renew the Agreement in question until 7 March 1997, HAS ADOPTED THIS DECISION : Article 1 The Kingdom of Spain is hereby authorized to extend until 7 March 1997 the Agreement on mutual fishery relations with the Republic of South Africa which entered into force on 8 March 1982. Ankle 2 This Decision is addressed to the Kingdom of Spain. Done at For the Council The President (')OJ No L 329 of 3 0. 1 2. 1 9 9 5, p. 35 ISSN 0254-1475 COM(96) 218 final DOCUMENTS EN 03 ll Catalogue number : CB-CO-96-229-EN-C ISBN 92-78-04187-4 Office for Official Publications of the European Communities L-2985 Luxembourg k

REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT ON THE ESTABLISHMENT OF A SATELLITE- BASED VESSEL MONITORING SYSTEM FOR COMMUNITY FISHING VESSELS

http://publications.europa.eu/resource/cellar/b11ebae5-a99f-444a-8d52-c5fb93ff30f9

eng

COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 28. 05. 1996 COM(96) 232 final 96/O140(CNS) Proposal for a COUNCIL REGULATION (BO amending Regulation (EEC) No 2847/93 establishing a control system applicable to the Common Fisheries Policy (presented by the Commission) REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT ON THE ESTABLISHMENT OF A SATELLITE-BASED VESSEL MONITORING SYSTEM FOR COMMUNITY FISHING VESSELS EXPLANATORY MEMORANDUM The present proposal for a Council Regulation amende Council Regulation (EEC) No 2847/93 establishing a control system applicable to the Common Fisheries Policy (hereinafter referred to as "Control Regulation"), with a view to require the Member States to establish satellite-based fishing vessel monitoring systems. The 1992 Commission proposal for a new Control Regulation provided for the implementation of a continuous position monitoring system of fishing vessels using satellite communications in order to improve effectiveness of fisheries control. However, at that stage, the Council did not accept the Commission proposal. Instead, in the framework of an overall compromise the Council and the Commission agreed to legal provisions which required: - Member States to carry out pilot projects in order to assess the technology to be used for the purpose of fisheries control, - to postpone a decision, until June 1996, on when, whether and to what extent a continuous position monitoring system shall be implemented for fishing vessels. All Member States concerned have carried out, from July 1994 to December 1995, pilot projects for satellite monitoring, involving up to 350 Community vessels. The implementation of pilot projects have demonstrated that satellite-based continuous monitoring of fishing vessels will greatly improve the effectiveness of fisheries control. The conclusions of the implementation of the pilot projects are reflected in the "Report on the establishment of a satellite-based vessel monitoring system for Community fishing vessels". This report is based on the reports submitted by each Member State. Taking into account the experience obtained, the present proposal for a Council Regulation amending Council Regulation (EEC) No 2847/93, provides for the implementation by Member States of satellite-based continuous monitoring systems for tracking fishing vessels flying their flag and which enable them to communicate to the Member States in which waters they are carrying out their activities, the localisation of its vessels. It is provided that such monitoring applies to I all fishing vessels exceeding a certain lenght whilst this obligation should be implemented gradually in the period 1997-1999. Initially vessels operating in sensitive fisheries should be monitored whilst finally all vessels should be covered. Furthermore, the present proposal contains provisions which shall ensure cooperation between the Member States concerned. Finally, in accordance with Article 3 of Regulation (EEC) No 2847/93, it falls to the Council to adopt a decision before 1 July 1996. PROPOSAL FOR A COUNCIL REGULATION ^£ I © Wofr VJÎ^ amending Regulation (EEC) No 2847/93 establishing a control system applicable to the Common Fisheries Policy THE COUNCIL OF THE EUROPEAN UNION Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission ', Having regard to the opinion of the European Parliament2, whereas fishstocks have been overexploited in recent years and therefore significant efforts on surveillance and control of fishing activities are required to remedy this situation; whereas there is a need to use cost-effective measures and to improve availability and accuracy of effort data, such as by introducing satellite based vessel monitoring systems; whereas, pursuant to Article 3 of Council Regulation (EEC) No 2847/93 4 establishing a control system applicable to the Common Fisheries Policy, the Council can decide for a continuous position monitoring system to be established for Community fishing vessels; O. J. No L 2 6 1, 2 0. 1 0. 1 9 9 3, p. 1 H whereas experience gained in the application of pilot projects carried out by the Member States in accordance with Commission Regulation (EC) No 897/94 5, laying down detailed rules for the application of Council Regulation (EEC) No 2847/93 as regards pilot projects relating to continuous position monitoring of Community fishing vessels, has demonstrated that several satellite-based Vessel Monitoring Systems can be used to determine the position of fishing vessels; whereas satellite-based continuous monitoring of certain categories of Community fishing vessels will improve effort management, surveillance of sensitive areas, crosschecking of logbooks, and monitoring of landings, HAS ADOPTED THIS REGULATION: 1. Article 3 of Council Regulation No 2847/93 is replaced by the following: Article 1 1. Each Member State shall establish a satellite-based vessel monitoring system, hereinafter referred to as "VMS", to monitor the position of Community fishing vessels. "Article 3 The VMS shall apply no later than 1 January 1997 to all Community fishing vessels belonging to at least one of the following categories regardless of their length : vessels operating on the high seas, except in the Mediterranean Sea, vessels operating in the waters of third countries, vessels catching fish for reduction to meal and oil, vessels using driftnets longer than one kilometer, as well as, no later than 1 January 1999, to all other Community fishing vessels exceeding 15 metres in length overall. O. J. No L 1 0 4, 2 3. 0 4. 1 9 9 4, p. 18 r 2. Member States shall ensure that satellite-tracking devices be installed and fully operational on Community fishing vessels flying their flag to which VMS shall apply. The satellite- tracking device shall enable a fishing vessel to communicate by satellite to its flag State, its geographical position and where applicable the effort reports referred to in Article 19b below. In the case of force majeure relevant information shall be communicated by radio via a radio station approved under Community rules for the reception of such information. Member States shall conduct an annual inspection of the satellite-tracking devices installed on board the fishing vessels flying their flag. 3. The masters of the Community fishing vessels to which VMS applies shall ensure that the satellite-tracking devices are at any time fully operational and that the information referred to in paragraph 2 is transmitted. 4. Member States shall establish and operate Fisheries Monitoring Centres, hereinafter referred to as "FMC", which shall monitor fishing activities and fishing effort. The FMC shall be operational no later than 1 January 1997. The FMC of a particular Member State shall monitor the fishing vessels flying its flag, regardless of the waters in which they are operating or the port they are in as well as Community fishing vessels flying the flag of other Member States operating in the waters under the sovereignty or the jurisdiction of that particular Member State. 5. Where its fishing vessels are operating in waters subject to the sovereignty or jurisdiction of another Member State, the flag Member State shall ensure immediate communication of spécifie data related to their position by its FMC to the FMC of the coastal Member State concerned. The flag Member State shall be discharged of this obligation if the fishing vessels flying its flag transmit directly all relevant information to the FMC of the Coastal Member State concerned, on the basis of a protocol to be agreed upon between the flag Member State and the coastal Member State, which shall be transmitted to the Commission. / 6. Each flag Member State shall appoint the competent authorities responsible for the FMC and shall take the appropriate measures to ensure that its FMC has the proper staffing resources and is equipped with computer hard- and software enabling automatic data processing and electronic data transmission. Member States shall provide for back-up and recovery procedures in case of system failure. Member States may operate a joint FMC. 7. The flag Member State shall take the necessary measures to ensure that the data received from its fishing vessels are recorded in computer-readable form for a period of three years. The Commission shall have direct access to these computer files at any time. Due respect shall be given to the prevailing rules concerning data protection. 8. Detailed rules for the implementation of this Article shall be decided in accordance with the procedure laid down in Article 36. " This Regulation shall enter into force on the seventh day following its publication in the Official Journal of the European Communities. Article 2 This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at For the Council The President 1 REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT ON THE ESTABLISHMENT OF A SATELLITE-BASED VESSEL MONITORING SYSTEM FOR COMMUNITY FISHING VESSELS S Table of contents I. Introduction 1. Background 2. The International Context II. The pilot projects 1. Evaluation of the pilot projects The issue of data exchange 2. Legal and Evidential Issues 3. III. The appropriateness of a satellite-based VMS for fishery enforcement and management Annex / INTRODUCTION For many and many generations, the stars have been the sole means of navigation over land and on sea. Still in use today as back-up, celestial navigation has been gradually complemented by other navigation techniques. Over the past decades, the world has seen a revolutionary transition to space- based systems. Satellite navigation is probably one of the better known applications of space technology. Today, satellite-based systems are finding new applications in many other areas including air (traffic control systems, approach and landing systems,. ), road (private transport, truck management,. ), rail and survey sectors. The number of users of these systems and the economic benefits increase continuously, due to liberalisation and privatisation initiatives. The technologies developed in different areas can be applied to fisheries monitoring, control and surveillance, as will be demonstrated hereafter. This report is made in response to a formal obligation pursuant to Article 11 of Commission Regulation (EC) No 897/94 which requires the Commission to present a report to the Council regarding the pilot projects carried out by the Member States relating to the continuous position monitoring of Community fishing vessels^). It is partly based on the final reports of the Member States, which were unfortunately transmitted with delay. () OJ No L 104/18 yto 1. Background In 1992, the Commission proposed that a continuous position-monitoring system using satellite communications should be introduced for fishing vessels, in order to improve the effectiveness of surveillance of fishing activities^). Subsequently, the Council decided that Member States were to carry out pilot projects, in cooperation with the Commission, in order to assess the technology to be used and the vessels to be included in the above mentioned system (as provided for by Article 3 of Council Regulation (EEC) No 2847/93 establishing a control system applicable to the common fisheries policy, of 12 October 1993, hereafter called "the Control Regulation"). Commission Regulation (EC) No 897/94 laid down detailed rules for the pilot projects. Thirteen EU Member States (Belgium, Denmark, Germany, Greece, Spain, France, Ireland, Italy, the Netherlands, Portugal, Finland, Sweden and the United Kingdom) have carried out pilot projects for satellite monitoring, involving up to 350 vessels throughout the Community. Three different, commercially available, satellite-based vessel monitoring systems (Argos, Euteltracs and Inmarsat) were used to track the movements of the participating vessels. Several Member States have tested more than one of these systems. The pilot projects were funded with ECU 10 million from the Community budget. The projects started in July 1994 and were due to end in June 1995. ( ') COM(92) 392 final sM On request of a number of Member States, whose projects were overdue, the projects were prolonged to December 1995. A number of Member States continue to use the systems as a means of improving and developing their understanding of this type of technology for fisheries enforcement and conservation purposes. The pilot projects were coordinated by the European Commission. The Commission regularly organised meetings of the Expert Group Fisheries Control with the national officials in charge in the Member States in order to monitor the progress of the projects. The Commission has also been conducting trials since 1992. It has been using its inspection vessel operating in the Northwest Atlantic Fisheries Organisation (NAFO) Regulatory Area (i. e. international waters off Newfoundland) for this purpose. 2. The International Context The management dilemma in commercial fisheries of reconciling the availability of limited fishery resources with the overcapacity in the catching sector has been compounded by the difficulties enforcement agencies face with monitoring large numbers of vessels spread over immense ocean areas. In recent years, many nations have resorted to technological innovations such as monitoring vessel locations by satellite as a means of improving the enforcement and effectiveness of their fishery management regimes. A number of examples are set out below. /K- In April 1990, an international agreement among the United States of America, Canada and Japan required that satellite monitoring be placed on 100% of the Japanese squid and large-mesh driftnet fishing vessels operating in the North Pacific in 1990. Similar agreements were reached between the U. S. and Korea and the U. S. and Taiwan. The U. S. has monitored the operations of nearly 800 fishing vessels on the high seas. More recently a score of U. S. longliners have been equipped with satellite surveillance devices in the Western Pacific pelagic longline fishery. The U. S. are at present preparing a scheme for two specific fisheries in the New England region (groundfish and scallops). On 1 January 1994, Australia officially implemented its first Vessel Monitoring System in a deep sea Orange Roughy trawl fishery with approximately 30 vessels. Further developments include extending the coverage of the system to Tuna longliners and Northern Prawn fishery trawlers for both position and catch reporting. Since 1 April 1994, New Zealand requires certain categories of vessels to carry and operate vessel monitoring equipment. At present around 200 vessels are equipped. Several other countries worldwide have been conducting trials or are considering doing so: Argentina, Canada, Chile, French overseas territories (French Polynesia and New Caledonia), Indonesia, Iran, Japan, Morocco, Norway, Peru, Russia and Taiwan. Both the United Nations agreement for the implementation of the provisions of the UN Convention on the Law of the Sea of 10 December 1982, relating yfz to the conservation and management of straddling fish stocks and highly migratory fish stocks and the Code of Conduct for Responsible Fisheries make explicit reference to the use of vessel monitoring systems (VMS). The Bering Sea Convention foresees that each contracting party shall require its fishing vessels that fish for pollack in the convention area to use real-time satellite position-fixing transmitters while in the Bering Sea. Other regional organisations such as CCAMLR (Antarctic), ICCAT (Atlantic tuna), FFA (South Pacific) and NAFO (Northwest Atlantic) have also taken interest in the subject. NAFO Contracting Parties will carry out pilot projects involving 35% of the fishing fleet operating in the NAFO Regulatory Area during 1996/1997. On 21-22 November 1995, the Commission organised an International Symposium on Fisheries Enforcement in Madrid, Spain. The aim of the symposium was to consider the use of satellite-based technology for monitoring, control and surveillance. Thirteen Member States, four third countries, the FAO and a score of companies have participated. The symposium resulted in a useful exchange of information among participants. Experience outside the European Union has clearly indicated that although satellite monitoring has not replaced conventional enforcement methods, it has made them more efficient and effective. In particular, it has allowed enforcement agencies to identify problems on a priority basis. Other than the use of satellite technology for enforcement purposes there have been many satellite technology innovations that have helped fishermen to operate more efficiently. These applications have included the Global s* Positioning System (GPS) satellites that have allowed fishing vessels to immediately determine their position, course and speed. Other developments include satellite application of remote sensing to fisheries which has facilitated the precise location of highly productive biological zones of certain stocks. Furthermore, telecommunication satellites have improved inter-vessel communications for some fishing fleets and this saves search times in locating the optimal fishing sites as well as providing additional security in the event of emergency. H. THE PILOT PROJECTS Member States have carried out extensive trials with Vessel Monitoring Systems in the course of their respective projects. Globally, more than 300 Community fishing vessels have been equipped with a blue box (30 Argos, 60 Euteltracs and 175 Inmarsat, in addition to Portugal where MONICAP is operational with over one hundred vessels). In 1995, Finland and Sweden set up a joint pilot project with Denmark. Sweden because of the short time frame of their project did not however succeed in finding voluntary participant vessels. All Member States have tested GPS-INMARSAT. Only some Member States tested ARGOS and/or EUTELTRACS. In a complementary project, Greece has also tried out VHF/DSC data communication, the use of which is more limited to territorial waters. The United Kingdom has conducted trials with Automatic Position Recorders (APR), which store data onboard the fishing vessel without transmitting the information in real-time. M The Annex recapitulates the main facts about each project. J6 1. Evaluation of the Pilot Projects This section summarises the principle findings of the Member State reports and the reflections of the Expert Group Fisheries Control which was convened regularly throughout the duration of the pilot projects. The pilot projects proved the reliability of real-time satellite position monitoring equipment on board fishing vessels and established that this type of technology will greatly enhance the efficiency and effectiveness of the existing aerial, surface and land based resources. Although the pilot projects in the Member States revealed a number of technical problems, they also clearly demonstrate that these could be resolved by a joint approach between the project managers and the system providers. It was particularly evident that satellite-based vessel monitoring technology has evolved considerably during the period of the project. This trend is set to continue. The further development of ready-to-use products as well as the improvement in satellite services will greatly assist the realisation of the full potential of a future operational system. The pilot project demonstrated that the quality, robustness and reliability of vessel equipment had improved significantly during the trial period. Ongoing technological progress will continue to offer new functionalities at a lower cost. Prices of mobile equipment are expected to drop significantly with the advent of low earth orbit satellite systems, and the liberalisation and privatisation policies should diminish telecommunication costs. Computer hard- and software is getting cheaper in general. The principle problem encountered was the loss of data through system failures. This problem ^ occurs however only occasionaly and can be resolved by appropriate back-up and recovery procedures. All Member States reported that the Global Positioning System (GPS), integrated in the ARGOS transponders and used in combination with INMARSAT C, is sufficiently precise for fishery enforcement purposes. The positioning function of Euteltracs is evaluated positively as well. 2. The Issue of Data Exchange A significant number of data exchange trials between Member States have been undertaken during the operational phase of the pilot projects. The trials identified the complexity and difficulties of exchanging position data. However, they also provided valuable information on how data exchange may be improved and how a unique solution or other alternatives may be achieved in an operational system. The data exchange format proposed by Denmark and X. 25 data exchange protocol have been accepted as standards for the purpose of the pilot projects. The X. 25 services available are however not the same in each Member State. A number of Member States failed to exchange position reports on a regular basis. In this regard, the technical effort required to establish and operate reliable and effective data communication procedures during the period of the pilot project has apparently been underestimated by the Member States. From the Commission point of view this was the least successful aspect of the pilot project. S* Direct transmission from the fishing vessel to the coastal state has only been tested by two Member States. It can nevertheless be considered to be a valid alternative for communication by the Flag State to the Coastal State. Member States recognize the need to standardise the data exchange procedures and reflect further on the architecture of the future Community system for satellite monitoring. In that context the issues of inter-operability of different mobile satellite communication and tracking technologies with terrestrial networks will have to be addressed in a comprehensive manner. It should be noted that the issue of data communication between Member States is a general issue that is not limited to satellite tracking applications. 3. Legal and Evidential Issues In their reports Member State did not undertake an elaborate assessment of the legal and evidential issues pertaining to the data acquired from a satellite based vessel monitoring system. The Commission is nevertheless aware that the vessels participated in the pilot projects on a voluntary basis and that many issues such as tampering or misuse of the devices for the purpose of cloning (the unauthorised use of a legitimate unit to mislead the authorities as to the correct location of vessels) or of ghosting (the unauthorised disabling of a unit) will not be fully apparent until the system is mandatory for certain categories of vessels. It is therefore essential that the full onus of responsibility for the installation, operation and maintenance of the operational equipment is placed on the vessel and that it will be illegal to be at sea without an operational unit on board. It is also imperative that there will be a full range of appropriate sanctions, as well as incentives, to ensure A that vessels comply with the regulatory requirements. In general, Member States have widely diverging rules of evidence. The admissibility and evidential value of the data provided by a satellite-based vessel monitoring system could to some extent differ in each Member State, such as is the case with other information, e. g. photographs taken during aerial surveillance flights. In order for VMS to operate effectively, co operation between the competent authorities of the Flag State and the Coastal state is required. This may imply that certain Member States will have to introduce rules under their national law in order to enable the evaluation of evidence obtained by satellite-based VMS. m. THE APPROPRIATENESS OF A SATELLITE-BASED VMS FOR FISHERY ENFORCEMENT AND MANAGEMENT The trials demonstrated that a fully operational system will have many benefits for fisheries enforcement. As noted in the Commission Report on Monitoring the Common Fisheries Policy (l) there are at present many serious shortcomings in the effectiveness and efficiency of enforcement. Satellite monitoring of fishing vessels will improve the control of many areas in the current fisheries regime. In particular it will : - improve effort management by providing high-quality effort (') COM (96) 100 final reports; - - improve the monitoring of closed boxes or sensitive areas; allow a more cost effective deployment of patrol vessels and surveillance aircraft as well as a more efficient use of boarding parties at sea; - allow the verification of logbook data and in some instances the validation of catch area reports; - - assist in the detection of illegal or unauthorised landings; allow the monitoring of the advance notification of landing requirement. The diverse nature of EU fisheries requires a complex management and control structure. However, in the long term a satellite based vessel monitoring system may allow simplification of the regulatory framework. In particular, it may provide an incentive for fishermen to comply with the regulations which in turn may result in a reduction of some of the current obligations such as hail requirements. Satellite-based systems will assist the monitoring of fishing effort and will, if combined with other enforcement tools, improve the recording of quota uptake by vessels. From the Community perspective, a satellite based vessel monitoring system will improve the uniform application of the regulatory framework, enhance cooperation between enforcement agencies and ensure greater transparency of the fishery control and enforcement effort in the Member States. U The pilot projects in the Member States revealed that there are also many advantages for the fishing industry. These include, cheaper communication costs, improved safety features in the event of an emergency, confidential messaging services for catch and market information, and improved access to weather, port, and other information. Furthermore, recent experience in the Member States indicates that fishermen are already investing in satellite telecommunications equipment and services. The encouraging results of the pilot projects conducted by the Member States and developments in international fisheries indicate that it is now appropriate to prepare for an operational scheme applicable to Community fishing vessels. The cost of satellite-based VMS will depend mainly on the number of vessels included in the system. It can further be assumed that Member States will prefer maximum flexibility to develop a national system tailored specifically to their needs and to integrate the system with existing monitoring facilities and operations. The hard- and software purchased for the purpose of the pilot projects may be reused whenever possible. Based on an earlier study, the cost of satellite monitoring, including a control center in each Member State for monitoring a fleet of 10. 000 vessels, over five years, is likely to be of the order of 80 to 100 Mecu. The predominant part will be the mobile equipment on board of each vessel. Expenditure would normally be eligible under Council Decision 95/527/EC on a Community financial contribution towards certain expenditure incurred by Az- the Member States implementing the monitoring and control systems applicable to the Common Fisheries Policy(1). (*) O. J. No L 301, 14. 12. 1995, p. 30 Rectified O. J. No L 302, 15. 12. 1995, p. 45 lJ> SYNOPTIC TABLE (situation on 01. 05. 96) ANNEX Member State Community financial contribution (MECU) Number of vessels Minimum Actual Belgium 0,3 10 21 Denmark 0,9 10 10 Control Centre Satellite System Operational starting date (deadline: 01. 10. 94) Receipt final report (deadline: 29. 02. 96) Remarks Dienst voor Zee- visserij, Oostende Fiskeridirektoratet, Copenhagen INMARSAT March '95 - - Cost of connectivity software shared with INMARSAT April '95 26. 03. 96 Netherlands - Loss of INMARSAT data reports - Difficulties in finding voluntary participants - Developed data exchange format for position reporting Germany Greece Spain 0,4 0,8 3,0 15 22 10 20 Bundesanstalt LE, Hamburg Hellenic Coast Guard, Piraeus 124 124 IGPM, Madrid France 0,9 67 45 CROSSA, Etel INMARSAT October '94 04. 03. 96 - Telecom does not support X. 25 fast select mode INMARSAT October '94 13. 03. 96 for international communications - Tested VHF/DSC in a complementary projet - LES does not support individual polling function March ;94 14. 03. 96 - Developed an extension of the Danish data EUTELTRACS INMARSAT ARGOS EUTELTRACS INMARSAT May '95 19. 03. 96 exchange format for event reporting - Continues to use the system for effort reporting - Eutelsat developed technical solution for the integration of the data flows from the three satellite systems - Continues to use the system for effort reporting - Encryption of position reports - In favour of direct transmission to coastal state - Suggests use of central data routing facility - Not yet operational Ireland 0,7 10 10 Naval Base, Cork EUTELTRACS INMARSAT October '94 Italy 0,5 17 (20) Coast Guard, Rome INMARSAT - - - Member State Community financial contribution (MECU) Number of vessels Minimum Actual Control Centre Satellite System Operational starting date (deadline: 01. 10. 94) Receipt final report (deadline: 29. 02. 96) Remarks Netherlands 0,5 14 41 AID, Kerkrade ARGOS EUTELTRACS INMARSAT Portugal 47 104 IGP, Lisbon INMARSAT October '94 20. 03. 96 - Cost of connectivity software shared with Belgium - Loss of INMARSAT data reports - Previous experience with project "Verre Visserijen" - PTT Telecom does not support X. 25 fast select mode - Portugal did not carry out a specific pilot project, since it had prior experience with MONICAP - Satellite-monitoring is an established means of control under national law ^ A Finland Sweden United Kingdom 0,2 0,2 - 5 3 Department of Fisheries, Helsinki F i s k e r i v e r k e t, Gôteborg INMARSAT INMARSAT After accession After accession 05. 03. 96 - Joint project with Denmark and Sweden 07. 03. 96 - Joint project with Denmark and Finland - No voluntary particioants. - Equipped two Coast Guard vessels and one research vessel 0,9 19 29 MAFF, London DAFS, Edinburgh ARGOS EUTELTRACS INMARSAT September •94 22. 03. 96 (draft provisional) - Full integration of satellite systems through customised monitoring system (CTMS) - No participation of Fisheries Organisations - 18 vessels equipped with Automatic Position Recorders ISSN 0254-1475 COM(96) 232 final DOCUMENTS EN 03 n Catalogue number : CB-CO-96-242-EN-C ISBN 92-78-04484-9 Office for Official Publications of the European Communities L-2985 Luxembourg Z6

REPORT FROM THE COMMISSION TO THE COUNCIL on the production and marketing of hops (1995 harvest)

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 28. 05. 1996 COM(96) 226 final 96/0141 (CNS) REPORT FROM THE COMMISSION TO THE COUNCIL on the production and marketing of hops (1995 harvest) Proposal for a COUNCIL REGULATION (EC) No laying down, in respect of hops, the amount of aid to producers for the 1995 harvest (presented by the Commission) REPORT FROM THE COMMISSION TO THE COUNCIL on the production and marketing of hops (1995 harvest) CONTENTS Chapters 1. Introduction 2. 1995 harvest 2. 1. World situation 2. 1. 1. Production 2. 1. 2. Market trends 2. 2. Community situation 2. 2. 1. Production structure 2. 2. 2. Production 2. 2. 3. Sales and prices 2. 2. 4. Returns 2. 2. 5. Costs 3. The common organization of the market in hops 3. 1. Community policy on the hop market 3. 2. Aid for varietal conversion 4. Conclusions 4 4 4 4 5 6 6 6 7 8 9 10 10 10 12 Table 4 (Community external trade in hops and hop products) is not yet available. 1. INTRODUCTION Article 11 of Regulation (EEC) No 1696/71 requires the Commission to present to the Council an annual report on the production and marketing of hops. The purpose of this report is to provide information on trends in production, prices and demand. This report, the 25th such report presented by the Commission, outlines the main events of the 1995 harvest year. It focuses on the salient facts needed to calculate the amount of aid to producers for the 1995 harvest. The Commission proposes that hop producers should again be granted aid to supplement their incomes. 2. 1995 HARVEST 2. 1. World situation 2. 1. 1. Production Worldwide, the total area under hops was approximately 86 133 ha, of which approximately 68 585 ha belonged to members of the International Hop Growers Convention (IHGC) and Member States of the Community (see Table 1). Production in China and the countries of the former Soviet Union was also substantial, but can only be roughly estimated, as no precise figures are available. The area under hops in IHGC and EEC countries decreased on average by about 0. 7%. The decrease was most marked in Australia (- 6. 9%), the Slovak Republic (- 8. 33%) and Ireland (- 40. 69%). Estimates for the Ukraine point to a reduction of 6. 80%. Portugal (+ 21. 40%) heads the list of the few countries in which there was an increase. The decrease worldwide is about 0. 30%. At around 2 562 412 ztr the 1995 harvest was markedly higher (144 885 ztr or 5. 99%) than in 1994. Quality was better with an alpha acid content of 6. 7% and alpha acid production of 8 584 tonnes. Although the records of the 1993 harvest were not equalled, the 1995 harvest was still considerably higher - in terms of yield - than the average for the last five years. Worldwide there is overproduction of hops in relation to the needs of the breweries. For this reason the member states of the IHGC have proposed that between 5 000 and 10 000 ha should be grubbed. So far this has not been done. Although beer production in Europe has fallen year after year since 1990, this is not so in the case of other continents, especially Asia, and in particular in China, which at present ranks as the world's second-largest beer producer after the United States. Worldwide, beer production is estimated at 1 270 million hectolitres for 1996. Since this volume usually requires 8 255 tonnes of alpha acid for hopping of 5. 9 g/alpha/hl, the quantity of hops produced should in principle exceed requirements (surplus of 329 tonnes). It should be noted that, for hopping of 5. 9 g of alpha acid per hectolitre of beer, breweries need to have around 6. 5 g/hl available, the difference being accounted for by losses in storage and at the hop processing stage. It should be added that less alpha is needed than previously as a result of a trend towards manufacturing less bitter beers, on the one hand, and of constant technological progress on the other. Breweries would appear, however, still to have stocks in hand, enough to cover several months of production. 2. 1. 2. Market trend Prices for German hops were up on the previous harvest, and all the 1995 harvest has been sold. Although they fell, average American prices were still high enough to cover production costs, with the yield being considerably higher than in Europe (2. 05 tonnes/ha as against 1. 43 tonnes/ha) and the alpha acid percentage also significantly higher (9. 37% as against 5. 76%) (see Table 1). 95% of the American harvest has been sold under contract. Contracts signed in advance - although down in terms of quantity - have proved after all to be a good system even though in times of crisis it cannot operate as well as it might (see Tables 2 and 5). A point some members of the IHGC are particularly concerned about is the price-fixing procedure for aromatic varieties based on kilos of alpha rather than on the aroma itself. 2. 2 Community situation 2. 2. 1. Production structure As in agriculture as a whole, structural change in hop-growing has continued. There are now 5 043 farms growing hops in the Community (see Annex, Table A), a 4. 80% fall over 1994. At the same time the average area under hops rose from 5. 2 to 5. 5 ha per farm. More than 300 farms stopped growing hops in Germany. Since accession, Austria has been added to the list of hop-producing Member States. 2. 2. 2. Production The area under hops in the Community was 27 499 ha in 1995, i. e. 149 ha (0. 54%) down on 1994 (see Annex, Table 1), most of it (21 885 ha, or 80%) in Germany. But in that country areas were 45 ha, i. e. 0. 21%, down on 1994. At present, aromatic varieties account for 57. 99% of the area, with Hersbrucker (31. 18% of the aromatic area in spite of a reduction in Germany of 527 ha on 1994) still the most popular. Of the aromatic varieties for which there were large increases in area, the most significant are Hallertauer Tradition (+ 257 ha), Perle (+117 ha) and Spalter Select (+115 ha). Bitter varieties accounted for 41. 37% and other varieties for 0. 63%. The share of bitter varieties was slightly down in 1995 to the benefit of aromatic varieties. Of the bitter varieties Northern Brewer remained far and away the most popular (4 280 ha, which represents a fall on 1994 of 638 ha) followed by Hallertauer Magnum (1 874 ha) and Target (1 541 ha) then Brewer's Gold (1 160 ha). The area under the latter two varieties also fell, by 141 ha and 182 ha respectively. For the bitter varieties the general trend is towards increased production of the super-alpha varieties, which are more in demand on the markets, such as Hallertauer Magnum and Nugget. The area under Nugget rose by 38. 8% on 1994 and the area under Magnum by about 40. 7%. Quantitatively the 1995 harvest was far larger than the 1994 harvest (13. 41%). At 840 085 ztr, average yield was 1. 43 tonnes or 31 ztr per hectare. Quality was average, and alpha acid content was around 5. 76% on average for the Community as a whole for the three types of varieties, giving 2 419 tonnes - 82 kg per hectare - of alpha acid for beer production in 1996. 2. 2. 3. Sales and prices Overall, the average price for hops sold under contract was ECU 197/ztr, ECU 2. 60/ztr up on the 1994 harvest, ranging from ECU 132/ztr in Portugal to ECU 287/ztr in Ireland. Both these countries sold their entire production under contract (see Table 6). The average spot price for hops sold on the free market was down on the preceding year, at ECU 140/ztr as opposed to ECU 149/ztr in 1994, although here too prices differed markedly from one Member State to another, ranging from ECU 116/ztr in Spain to ECU 201/ztr in the United Kingdom. 82% of the 1995 crop was sold under contract (see Annex, Table 5). Belgium was well below this average at 36%. Highest average prices, both under contract and for spot sales, were made by the aromatic varieties (ECU 210/ztr and ECU 157/ztr respectively). The varieties fetching the highest prices were Challenger, Goldings, Hallertauer, Spalter and Tettnanger. Some varieties grown in the United Kingdom, i. e. Fuggles, Progress and WVG, also sold for prices higher than the average for the group, as did Strisselspalt in France, where average contract prices were ECU 222/ztr. The variety of aromatic hops fetching the lowest price was undoubtedly Hersbrucker, which accounted for about 31% of the area for this group of varieties (contract price ECU 187/ztr, spot price ECU 80/ztr). For bitter varieties the average price for sales under contract was ECU 179/ztr and for spot sales ECU 125/ztr, the varieties that fetched the highest prices in this group being Hallertauer Magnum and Northdown. For other varieties, contract prices and spot prices were above the Community average. This was due to the relatively high prices paid for experimental varieties in Austria and the United Kingdom and to the rather high spot prices paid for Zenith in the United Kingdom. Of the eight hop-producing Member States, four sold at prices below the Community average (all varieties taken together), i. e. Belgium, Germany, Spain and Portugal, with a low spot price in Spain (ECU 116/ztr) and a low contract price in Portugal (ECU 132/ztr). The official figures indicate that, of the 840 085 ztr produced in the Community in 1995, only 4 420 ztr (0. 53%) remain unsold. Ireland, Austria and Portugal sold their entire production under contract for an average price of ECU 287/ztr, ECU 274/ztr and ECU 132/ztr respectively (see Table 5), followed by France, which sold 94% of its production under contract for an average price of ECU 217/ztr. Producers were expecting higher prices for sales on the free market. There was a structural deficit of certain varieties in the United Kingdom for the production of English ales. Additional areas were consequently sown with Goldings and Fuggles. The variety which fetched the lowest prices, as it has since the 1993 harvest, is undoubtedly the Hersbrucker aromatic variety, which was previously very popular with the Americans, but is now suffering from a definite slow-down in demand as American purchasing policy has changed to the benefit of other varieties such as Spalter Select and Hallertauer Tradition. While Hersbrucker has been selling for only DM 152/ztr (i. e. ECU 80/ztr) on the free market, the two new aromatic varieties have been fetching around DM 374-388 ztr, i. e. ECU 167-172 ztr, which is still more than the Community average for aromatic varieties. It appears that precontracts for the coming years are being concluded only very hesitantly, for shorter periods, smaller quantities and lower prices than in previous years, since brewers know that they can always find hops on the free market. The way to increase hop prices would be to reduce the hop cultivation area in the world, as the Americans have proposed, and preferably to cut the area producing super-alpha varieties, since the hops market has become a market for alpha products. 2. 2. 4. Returns These were considerably higher than in 1994. The average return per hectare in full production was ECU 6 037 compared to ECU 5 255 in 1994 (+ 14. 88%). At Community level, returns were highest for the aromatic variety group (ECU 6 271 per ha in full production, 10. 39% up on 1994). However, Belgium, France, Austria and the United Kingdom recorded a fall for these varieties. The most profitable aromatic varieties were, for France, Strisselspalt (return of ECU 7 272/ha in full production), and for the United Kingdom Challenger (ECU 7 223/ha in full production), Goldings (ECU 7 614/ha in full production) and WVG (ECU 7 215/ha in full production). The aromatic varieties which produced a lower return in the United Kingdom than the Community average for this group of varieties were Bramling Cross and Fuggles. After Spain, the greatest increase in returns was in Germany (17. 24%), where the return on all aromatic varieties cultivated increased. Returns also increased for the bitter variety group (+ 21. 85%), reaching ECU 5 716/ha in full production, with returns in all producing Member States increasing, in some cases considerably, e. g. Germany (+ 34. 68%), Ireland (+ 17. 82%) and Portugal (+ 83. 26%). In Germany this increase is explained by the sharp increase in returns for Northern Brewer (+ 72. 80%) grown on 4 211 ha, and Brewer's Gold (+ 11. 69%), grown on 1 316 ha. On the whole, contract prices for this group of varieties in Germany increased by 8. 44%. In the case of England, the increase is explained by the fact that contract prices for Target (which covers about 1 242 ha) rose on the preceding year while yield was high at the same time. Contract prices followed the same trend in Belgium, combined with yields considerably up on 1994. In Portugal, increases were due to the fact that part of the area covered by a varietal conversion plan had by now reached the full production stage. Average returns for other varieties, cultivated principally in Germany (95 ha), and to a small extent in Belgium (2 ha), the United Kingdom (68 ha) and Austria (9 ha), rose by 19. 05%. As these varieties are only cultivated on small areas, their impact on overall returns for producers was negligible. 2. 2. 5 Production costs At ECU 9 136/ha, they were very close to those of the previous year (+ 0. 08%). Belgium had the highest production costs (ECU 12 182/ha) and Spain the lowest (ECU 5 667/ha). Fluctuations in individual Member States did not exceed 8. 27% in either direction compared with 1994 levels (see Annex, Table D). 3. THE COMMON ORGANIZATION OF THE MARKET IN HOPS 3. 1. Community policy on the hop market In 1971 a common organization of the market in hops was established by Regulation (EEC) No 1696/71. The aim was to improve product quality and safeguard the standard of living of hop growers. Since it was quite deliberately decided when the market organization was set up to make no special arrangements for external trade or intervention, the Community hop sector is highly exposed to competition on the world market. The essential aspects of the basic Regulation, which were dealt with in greater detail by subsequent, more specific Council and Commission regulations, are rules for the marketing of hops via a certification procedure and a forward contract system, for the recognition and promotion of producer groups, and for trade with non-EEC countries. The Regulation also lays down aid arrangements for Community-grown hops. The Community has two main financial responsibilities in this sector. Firstly, frequent use is made of the arrangements whereby aid per hectare is granted to producers with unsatisfactory returns. For the 1994 harvest year, aid per hectare was granted at a rate of ECU 495 for aromatic varieties, ECU 532 for bitter varieties and ECU 368 for other varieties and experimental varieties. Secondly, special aid is granted under Regulation (EEC) No 2997/87 to encourage growers to convert to varieties more suited to market requirements (see also point 3. 2. ). In addition the Community makes a contribution towards the promotion of newly founded producer groups at the initial stage provided national aid is also granted for this. However, this measure is now of little significance since almost all hop growers in the Community now belong to a recognized producer group. Of course this does not exclude the possibility of new groups being founded in the future as a result of restructuring and reorganization. 3. 2. Aid for varietal conversion The long-standing imbalance between supply and demand for most bitter varieties and the resultant problems for hop growers in certain areas of the Community led the Council to adopt special measures for the hop sector in 1987. 10 Regulation (EEC) No 2997/87 introduced special aid amounting to ECU 2 500/ha - subject to a maximum area of 1 000 ha per Member State - to be granted to recognized producer groups who undertake to implement a plan to convert areas under bitter varieties to aromatic or super-alpha varieties. In June 1989 the Council adopted Regulation (EEC) 1809/89 amending Regulation (EEC) No 2997/87 with a view to increasing the number of growers qualifying for aid under the varietal conversion programme. The amended criteria now allow special aid to be granted throughout the Community and not just in certain areas, as was originally provided for. A further restriction laying down that producer groups could take part in the conversion programme only if their total area did not increase in the period 1986 to 1988 was also lifted. The extension of the duration of the programme from 31 December 1990 as originally provided for to the end of 1995 gives the producer groups more time to implement their conversion plans. A further change was introduced by Regulation (EEC) No 423/95, extending the time limit for implementation of the conversion programme by a further two years, i. e. up to the end of 1996, in the case of Spain, Portugal and Belgium and by one year in the case of the United Kingdom. This amendment became necessary, as far as Spain is concerned, when many hop growers, whose land at the time was involved in a reparcelling project, made it known that they were prepared to take part in the varietal conversion programme. It was not possible to carry out both measures, i. e. reparcelling and subsequent varietal conversion, in the time originally provided for. For the three other Member States the reasons were a shortage of planting stock (Portugal) and bad weather (Belgium and the United Kingdom). The Community varietal conversion programme has been very well received by hop growers. All hop-growing Member States are taking advantage of it with the exception of Ireland. Some of the varietal conversion programmes submitted have been revised several times, above all to comply with requests for further areas to be included (see Annex, Table E). The programmes submitted by the different Member States provide principally for grubbing up the traditional bitter varieties Brewer's Gold and Northern Brewer, with which it is increasingly difficult to compete with American super alpha varieties on the world market, and also, in the case of Germany, grubbing up the aromatic Hersbrucker variety, which is no longer finding market outlets. 11 4. CONCLUSIONS On the basis of the foregoing analysis the Commission proposes that income aid be granted to growers for the 1995 harvest. The average level of aid for producers proposed is lower than for the 1994 harvest for the three groups of varieties. Under Article 12a of Regulation (EEC) No 1696/71 the Commission proposes that the same rate of aid be granted for areas planted with experimental varieties as for 'other varieties". The possibility of granting aid for growing experimental varieties was introduced in 1990 when the Council adopted Regulation (EEC) No 2780/90. The purpose of the aid, which can be granted for land used by growers for the cultivation of experimental varieties in collaboration with a research institute, is to encourage the development of new varieties, which must be continued if hop growing in the Community is to remain competitive. 12 Proposal for a COUNCIL REGULATION (EC) No laying down, in respect of hops, the amount of aid to producers for the 1995 harvest 13 EXPLANATORY MEMORANDUM On the basis of the attached Commission report on the production and marketing of hops from the 1995 harvest it is proposed that the Council adopt the attached proposal for a Regulation setting aid to hop growers for that harvest at the following levels. aromatic varieties bitter varieties other varieties experimental varieties ECU 444/ha ECU 416/ha ECU 298/ha ECU 298/ha. The proposal takes account of changes in returns and production costs in relation to the 1994 harvest for the different variety groups, with experimental varieties receiving the same aid as "other varieties". While average production costs are more or less the same as for the 1994 harvest (a rise of only 0. 08%), average returns per hectare for the three groups of varieties rose to ECU 6 271/ha (+ 10. 39 %), ECU 5 716/ha (+ 21. 85 %) and ECU 5 175/ha (+ 19. 05 %) respectively. The proposal is therefore for a proportionate reduction in the aid for the three groups of varieties. By comparison with the 1994 harvest the average aid rate for all varieties together decreases by 14. 88 % (from ECU 510/ha to ECU 434/ha). The cost of ECU 12. 2 million. the proposal to the EAGGF Guarantee Section is estimated at 14 Proposal for a COUNCIL REGULATION (EC) No of laying down, in respect of hops, the amount of aid to producers for the 1995 harvest THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 1696/71 of 26 July 1971 on the common organization of the market in hops , as amended by the Act of Accession of Austria, Finland and Sweden and by Regulation (EC) No 3290/94 of 22 December 1994 on the adjustments and transitional arrangements required in the agriculture sector in order to implement the agreements concluded during the Uruguay Round of multilateral trade negotiations2, and in particular Article 12(7) thereof, Having regard to the proposal from the Commission3, Having regard to the opinion of the European Parliament, Whereas Article 12 of Regulation (EEC) No 1696/71 provides that aid may be granted to hop producers to enable them to achieve a fair income; whereas the amount of this aid is fixed per hectare and differs according to varieties, taking into account the average return on the areas in full production as compared with the average returns for previous harvests, the current position of the market and trends in costs; O J N oL 175, 4. 8. 1971, p. L OJ No L 349, 31. 12. 1994, p. 105. O J N oC O J N oC 15 Whereas Article 12a of the said Regulation provides that aid to producers may also be granted for areas cultivated with experimental strains in order to facilitate the development of new varieties; Whereas an examination of the results of the 1995 harvest reveals the need to fix aid for groups of varieties of hops cultivated in the Community; whereas aid to producers should also be granted for areas cultivated with experimental strains, HAS ADOPTED THIS REGULATION: Article 1 1. For the 1995 harvest, aid shall be granted to the producers of hops cultivated in the Community for the groups of varieties set out in the Annex as well as for experimental strains. 2. The amount of the aid shall be as set out in the Annex. Article 2 This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at For the Council 16 ANNEX Aid to hop producers for the 1995 harvest Group of varieties Aid in ECU/hectare Aromatic Bitter Other Experimental strains 444 416 298 298 17 TABLE A Number and size of hop-growing farms in the Community 1995 Number of farms Total area under hops (ha) Areas under hops per farm (ha) 1994 ! 1995 1995-1994 1994 1995 1995-1994 1994 1995 1995-1994 90 3. 282 1. 447 153 2 81 31 211 86 3. 122 1. 379 136 2 82 31 205 -4 -160 -68 -17 0 1 0 -6 384 21. 930 1. 156 670 13 238 100 3. 157 374 21. 885 1. 102 670 8 244 121 3. 095 -10,05 -45 -54 -0,29 -5,29 5,71 21,4 -61,72 4,3 6,7 0,8 4,4 6,5 2,9 3,2 15,0 4,3 7,0 0,8 4,9 3,9 3,0 3,9 15,1 0,1 0,3 0,0 0,5 -2,6 0,0 0,7 0,1 Belgium Germany Spain France Ireland Austria Portugal United Kingdom <*? EC 5. 297 5. 043 -254 27. 648 27. 499 -149,24 5,2 5,5 0,2 TABLEB Average prices for selected hop varieties In Germany 1983-2000 Agricultural conversion rates 1st January Hallertauer Tettnanger Hersbrucker Norther Brewer Brewer's Gold DM/Ztr. ECU/Ztr. DM/Ztr. ECU/Ztr. DM/Ztr. ECU/Ztr. DM/Ztr. ECU/Ztr. DM/Ztr. ECU/Ztr. Spot market 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Contract market*) 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Forward c o n t r a c ts 1996 1997 1998 1999 2000 2,65660 2,51457 2,30751 2,30397 2,17266 2,09725 2,07609 2,07609 2,05586 2,05586 1,96992 1,94962 1,94962 2,65660 2,51457 2,30751 2,30397 2,17266 2,09725 2,07609 2,07609 2,05586 2,05586 1,96992 1,94962 1,94962 1,90616 1,90616 1,90616 1,90616 1,90616 316 347 465 308 569 538 515 1. 301 492 477 357 508 546 448 458 457 468 466 473 472 484 491 502 506 510 521 526 531 532 534 530 118,95 138,00 201,52 133,68 261,89 256,53 248,06 626,66 239,32 232,02 181,23 260,56 280,05 168,64 182,14 198,05 203,13 214,48 225,53 227,35 233,13 238,83 244,18 256,86 261,59 267,23 275,95 278,57 279,10 280,14 278,05 500 405 495 330 590 545 546 1. 500 527 508 470 518 544 535 550 546 540 525 527 521 521 524 5?3 529 524 532 555 559 565 567 568 188,21 161,06 214,52 143,23 271,56 259,86 262,99 722,51 256,34 247,10 238,59 265,69 279. 03 201,39 218,73 236,62 234,38 241,64 251,28 250,95 250,95 254,88 254,39 268,54 268,77 272,87 291,16 293,26 296,41 297,46 297,98 170 197 301 226 541 512 410 989 345 327 68 165 152 418 415 403 406 404 403 398 394 377 364 354 355 356 339 337 334 334 335 63,99 78,34 130,44 98,09 249,00 244,13 197,49 476,38 167,81 159,06 34,52 84. 63 77. 96 157,34 165. 04 174,65 176,22 185,95 192,16 191,71 189,78 183. 38 177,05 179. 70 182,09 182,60 177,84 176,80 175,22 175,22 175,75 262 176 245 150 198 337 $01 1358 408 451 144 236 273 380 388 385 410 405 398 378 380 376 358 361 330 353 359 355 354 356 347 98,62 69,99 106,18 65,11 91,13 160,69 144,98 654,11 198,46 219,37 73,10 121,05 140,03 143,04 154,30 166,85 177,95 186,41 189,77 182,07 183,04 182,89 174,14 183,26 169,26 181,06 188,34 186,24 185,71 186,76 182,04 174 108 109 58 141 220 208 1,006 298 300 75 120 133 358 364 352 345 329 299 276 275 256 261 271 271 270 258 252 246 255 216 65,50 42,95 47,24 25,17 64,90 104. 90 100,19 484,56 144,95 145,92 38,07 61. 55 68. 22 134,76 144,76 152,55 149,74 151,43 142,57 132,94 132. 46 124. 52 126. 95 137,57 139,00 138. 49 135,35 132,20 129. 06 133. 78 113,32 *) The prices shown are the average prices specified in contrats signed in previous years for the relevant harvest. TABLE C Return on areas in full production, in ECU/ha*) 1988 1989 1990 1991 1992 1993 1994**) 1995 1995/94 BY VARIETY GROUP Aromatic Bitter Others 5. 586 4. 491 4. 196 5. 562 4. 633 4. 093 5. 663 5. 644 5. 365 5. 854 5. 415 3. 382 5. 339 4. 328 3. 948 4. 908 3. 939 3. 569 5. 681 4. 691 4. 347 6. 271 5. 716 5. 175 10,39% 21. 85% 19,05% BY COUNTRY Belgium Germany Spain France Ireland Austria Portugal United Kingdom 4. 368 5. 238 3. 173 6. 170 5. 943 2. 452 5. 001 3. 995 5. 307 4. 473 5. 572 5. 283 4. 329 4. 577 11. 158 5. 616 4. 456 7. 450 10. 817 3. 322 5. 615 5. 931 5. 456 4. 441 5. 512 7. 901 1. 715 7. 212 6. 602 4. 818 2. 605 6. 320 9. 055 1. 495 5. 404 4. 908 3. 939 3. 569 6. 794 7. 109 1. 203 4. 803 5. 139 4. 935 5. 308 8. 346 6. 519 9. 313 1. 697 6. 548 4. 980 6. 079 4. 578 6. 978 7. 681 7. 620 3. 110 6. 203 -3. 09% 23,18% -13,75% -16,39% 17,82% -18,18% 83. 26% -5,27% BY COUNTRY AND BY VARIETY GROUP Aromatic Bitter Other 1994**) 1995 1995/94 % 1994**) 1995 1995/94 % 1994**) 1995 1995/94 % Belgium Germany Spain France Ireland Austria Portugal United Kingdom 5. 091 5. 250 1. 910 8. 757 3. 980 6. 155 2. 760 7. 258 -21,82 17,24 44,50 -17. 12 9. 249 7. 626 -17. 55 8. 244 6. 890 -16. 42 5. 175 4. 421 5. 311 5. 132 6. 519 1. 697 5. 506 5. 292 5. 954 4. 579 4. 448 7. 681 10. 157 3. 110 5. 688 2,26 34,68 -13,78 -13,33 17,82 83. 26 3,31 2. 443 4. 115 2. 321 5. 694 -4,99 38,37 12. 129 7. 452 -38,56 3. 936 4. 045 2. 77 *)Areas newly planted in 1995 and 1994, were assumed to give 40 % and 65 % respectively of the return on areas in full production. **) Following the introduction of the swith-over mechanisme on 1st February 1995, these figures have been multiplied by 1,207509 in order to allow comparison with the 1995 figures. lO Production costs per hectare - in national currency (M. N. ) and in ECU TABLE D Agricultural Year Fertilizer Insecticide Energie J Costs Buildings"*) Equipment Interest on Labour costs Otl ier Total Change conversion rate ") + ") M. N. ECU M. N. ECU M. N. mom M. N. ECU M. N. ECU M. N. ECU M. N. ECU M. N. WE&m M. N. ECU costs capital costs on 1994 % 40,8337 1994 12. 134 297 34. 357 841 10. 296 :;:::;;;::;:;:;252: 17. 875 438 125. 301 3. 069 40. 462 991 179. 488 4. 396 50. 323 39,5239 1995 11. 323 286 34. 357 869 10. 413 :;!;&«; 18. 700 473 129. 611 3,279 40. 462 1024 186. 282 4713 50. 323 mwm mwtz 470. 236 11516 481. 471 12,182 5,78 1,94962 1994 674 346 1. 954 1002 3. 062 :;:;sl57t; 827 424 3. 219 1. 651 1. 803 925 5. 610 2,877 436 mmM 17. 585 «. 020 1,90616 1995 658 345 1. 750 918 2. 899 ;;:;;:152i: 885 464 3. 272 1717 1. 775 931 5. 760 3. 022 450 mmàê. 17. 449 9. 154 1,49 160,399 1994 83. 000 517 56. 500 352 115. 812 WïÊïk 7. 040 44 68. 125 425 32. 093 200 475. 556 2. 965 60. 000 mmÊÊ. 898. 126 5. 599 165,198 1995 86. 643 { 524 58. 164 352 121. 543 ;:;i:::;sl3l 7. 377 45 71. 346 432 32. 629 198 495. 806 3. 001 62. 660 6,61023 1994 6,61023 1995 1. 3671 s 1. 4861 207 6. 231 943 1. 940 WÊÊÊ\ 3. 061 463 8. 795 1331 3. 952 598 22. 658 3. 428 6. 171 225 5. 388 815 2. 203 piiiisra; 3. 082 466 8. 850 1339 3. 978 602 19. 841 3,002 6. 391 0,80863 1994 1001 124 1. 242 1536 450 ;;:;;:;;;;:;:;556: 450 556 230 284 1. 148 1420 2. 500 3. 092 380 mï#M mmw m:mm wmtm 936. 168 5. 667 1,21 54. 175 5,196 51. 219 7J48 -5,46 6. 500 «. 038 0,829498 1995 100 121 1. 500 1808 518 ;;:;:;;';:;624; 405! 488 250 301 856 1032 2. 600 3. 134 380 wmm 6. 609 7. 967 -0,88 ! 13,7190 1994 6. 585 ! 480 7. 662 i 558 20. 169 Ss::1i47Q; 7. 099 517 21. 487 1566 16. 235 1183 36. 675 2. 673 22. 757 M 6 5 8; 138. 669 10. 108 13,4084 1995 5. 373 ' 401 7. 701 574 21. 220 SS:-:i!;S83: 7. 048 526 21. 256 1585 15. 980 1192 36. 931 2. 754 23. 225 ®m&3£: 138. 734 10. 347 2,36 i 160,399 1994 53. 5201 334 189. 660 1182 92. 000 ;i;S7!3: 36. 000 224 90. 000 561 0 407. 000 2,537 213. 820 165,198 1995 53. 520 ! 324 189. 660 1148 92. 000 :;:;;;;w557; 36. 000 218 90. 000 545. 0 438. 000 2. 651 203. 894 wmm mmm 1082. 000 SJ46 1103. 074 €,677 -1,01 0,7897 1994 263 333 1. 000 1266 262 :;$;I3:332: 843 1067 1. 520 1925 2. 409 3. 051 1. 753 2. 22D 713 WM&& 8. 763 11097 0,856563 1995 289 337 694 810 276 322 885 1033 1. 554 1814 2. 338 2. 730 1. 855 2. 166 828 ®^m 8. 719 10. 179 -8,27 1994 1995 for 1994 = 1. 1. 1995 for 1995 = 1. 1. 1996 Upkeep and amortisation / switch-over 1,207509 9. 130 $. 136 0,07 B D Es Fr Irl Oe P UK EC TABLE E Varietal conversion programmes carried out by the Member States under Regulation (EEC) No. 2997/87 (Situation at March 1996) j. | | i ! Belgium Germany Spain i France Ireland Austria Portugal United Kingdom EC Type of variety to which conversion is to be made Aromatic (ha) Super-Alpha (ha) Total (ha) I 44,31 432,10 125,00 306,90 908,31 222,88 567,90 230,00 45,00 - 121,40 693,10 i j 267,19 1000,00 230,00 170,00 0,00 0,00 121,40 1000,00 1880,28 2788,59 i' 21 TABLE 1 Area under hops, production of hops and alpha acid by producer countries 1995 Area Production I II III Country ha 1994 ha 1995 ha (+/-) 1995/94 Belgium Germany Spain France Ireland Austria Portugal United Kinqdom 384 21. 930 1. 156 670 13 238 100 3. 157 374 21. 885 1. 102 670 8 244 121 3. 095 (ll-l) -10 -45 -54 -0 -5 6 21 -62 IV ha (+/-) 1995/94 HII/I) -2,62% - 0 , 2 1% -4,67% -0,04% -40,69% 2,34% 21,40% -1. 96% V VI VII Zentner 1994 Zentner 1995 Zentner +/- 1995/94 VIII Zentner +/- % 1995/94 Yield IX t/ha Alpha XI Percent 1995 X Production tons 1995 (VI-W ( V MM (VI/M/20) 11. 233 568. 686 41. 366 22. 093 331 6. 316 1. 937 88. 794 12. 069 681. 081 33. 845 22. 075 206 6. 716 2. 533 81. 560 836 112. 395 -7. 521 -18 -125 400 596 -7. 234 7,44% 19,76% -18,18% -0,08% -37. 76% 6. 33% 30,77% -8. 15% 1,61 1,56 1,54 1,65 1,34 1,38 1,04 1. 32 (X/(VI/20)) 7,95% 5,33% 8,27% 2,45% 9 , 7 1% 6,55% 9,47% 8. 71% 48 1. 814 140 27 1 22 12 355 Forecast Area XIII ha 1996 360 21. 800 1. 054 716 8 246 45 3. 023 XIV Change ha 1996-95 (xni-in -14 -85 -48 46 0 2 -77 -72 XII Yield kg/ha 1995 ( I X M 0 00 * Xh 128 83 127 40 130 90 99 115 EC-15 27. 648 27. 499 -149 -0,54% 740. 756 840. 085 99. 329 1 3 , 4 1% 1,43 2. 419 5,76% 82 27. 251 -247 U. S. A. Australia New Zealand Yugoslavia*) Slovenia Czech Republic Slovak Republic Ukraine Poland Bulgaria 17. 164 1. 131 345 576 2. 420 10. 200 1. 200 5. 400 2. 341 645 17. 479 1. 053 355 600 2. 370 10. 070 1. 100 5. 033 2. 401 625 Total IHB (-EC) Total IHB (+EC) 41. 422 69. 070 41. 086 68. 585 Romania Russia**) Argentina China Japan ,_ South Africa 27T7Û 3. 510 461 7. 050 565 720 2. 200 3. 500 461 7. 050 535 640 315 -78 10 24 -50 -130 -100 -367 60 -20 -336 -485 30 -10 0 0 -30 -80 1,84% -6,90% 2,90% 4,17% -2,07% -1,27% -8,33% -6,80% 2,56% -3,10% 676. 395 54. 140 15. 310 14. 100 70. 820 184. 400 21. 000 71. 850 48. 000 10. 430 715. 338 50. 980 15. 129 15. 235 76. 200 198. 260 20. 700 75. 686 65. 290 10. 126 38. 943 -3. 160 -181 1. 135 5. 380 13. 860 -300 3. 836 17. 290 -304 - 0 , 8 1% - 0 , 7 0% 1. 166. 445 1. 907. 201 1. 242. 944 2. 083. 029 76. 499 175. 828 1,38% -0,28% 0,00% 0,00% - 5 , 3 1% -11,11% 34. 540 32. 000 8. 500 340. 000 22. 080 26. 400 40. 000 45. 000 7. 500 340. 000 20. 600 24. 200 5. 460 13. 000 -1. 000 0 -1. 480 -2. 200 5,76% -5,84% -1,18% 8,05% 7,60% 7,52% -1,43% 5,34% 36,02% - 2 , 9 1% 6,56% 9. 22% 15,81% 40,63% -11,76% 0,00% -6,70% -8,33% 2,05 2,42 2,13 1,27 1. 61 0,98 0,94 0,75 1,36 0,81 1. 43 1. 43 0,91 0,64 0,81 2,41 1,93 1,89 3. 351 262 99 30 214 317 31 117 152 35 4. 607 7. 026 100 81 19 935 71 123 9,37% 10,26% 13,09% 3,99% 5,60% 3,20% 3,00% 3,08% 4,67% 6,81% 7. 4 1% 6,75% 5,00% 3,60% 5,07% 5,50% 6,89% 10,17% Total World 86. 393 86. 133 -260 - 0 , 3 0% 2. 417. 527 2. 562. 412 144. 8B5 5,99% 1. 49 8. 584 6,70% 192 248 279 51 90 31 28 23 63 55 106 96 45 23 41 133 133 192 100 17. 880 1. 030 372 600 2. 370 9. 500 1. 000 4. 033 2. 551 505 401 -23 17 0 0 -570 -100 -1. 000 150 -120 39. 841 67. 092 -1. 245 -1. 492 *) Estimates Source: Member States + International Hop Growers' Convention (IHGC) + Horst Report TABLE 2 ESTIMATED FORWARD SALES 1996-2000 Zentner = 50 kg Country 1996 1997 1998 1999 2000 & onwards Belgium Germany Spain France Ireland Austria Portugal United Kingdom 1. 595 431. 779 32. 130 22. 381 170 4. 100 4. 000 58. 294 1. 360 348. 646 32. 160 20. 953 *) 4. 100 4. 600 44. 451 1. 100 260. 898 32. 160 20. 428 *) 4. 000 4. 600 32. 380 500 100 174. 400 113. 318 *) 18. 713 *) 4. 000 *) 22. 720 *) 16. 110 *) 500 *) 17. 840 EC-15 554. 449 456. 270 355. 566 220. 333 147. 868 New Zealand U. S. A. Australia Poland Czech Republic Slovak Republic Slovenia Serbia Hungary Ukraine Bulgaria 13. 332 540. 906 35. 000 45. 000 110. 000 10. 000 50. 000 *) *) *) *) 11. 410 371. 423 25. 000 45. 000 80. 000 10. 000 36. 000 *) *) *) *) 7. 072 303. 284 25. 000 45. 000 60. 000 8. 000 25. 000 *) *) *) *) 3. 247 134. 491 20. 000 45. 000 60. 000 8. 000 15. 000 *) *) *) *) 2. 972 92. 507 *) *) *) 7. 000 10. 000 *) *) *) *) Total IHGC (-EC) Total IHGC (+EC) 804. 238 1. 358. 687 578. 833 1. 035. 103 473. 356 828. 922 285. 738 506. 071 112. 479 260. 347 ^ TABLE 3 HOPS : WORLD BASE SERIES 1973- 1995 YEAR AREA PRODUCTION YIELD GERMANY - PRICE I (ha) 81. 247 82. 083 80. 527 78. 206 79. 262 80. 230 81. 224 86. 348 92. 434 95. 532 92. 688 88. 701 86. 700 85. 699 87. 274 90. 044 91. 653 92. 864 91. 512 91. 503 90. 185 86. 393 86. 133 II (Ztr) 2. 366. 020 2. 223. 520 2. 270. 040 2. 135. 200 2. 355. 920 2. 200. 173 2. 359. 848 2. 378. 772 2. 652. 833 2. 966. 785 2. 651. 851 2. 472. 791 2. 419. 725 2. 372. 455 2. 366. 497 2. 407. 032 2. 435. 121 2. 286. 671 2. 618. 744 2. 478. 345 2. 817. 586 2. 417. 527 2. 562. 412 II (0 iro,05 118. 301 111. 176 113. 502 106. 760 117. 796 110. 009 117. 992 118. 939 132. 642 148. 339 132. 593 123. 640 120. 986 118. 623 118. 325 120. 352 121. 756 114. 334 130. 937 123. 917 140. 879 120. 876 128. 121 VI (t/ha) 11 l/l V VI VII VIII IX (alpha t) (% alpha) V*20/ll*100 (kg/ha) VM000/I DM/Ztr. Contract DM/Ztr. Spot 1,46 1,35 1,41 1,37 1,49 1,37 1,45 1,38 1,43 1,55 1,43 1,39 1,40 1,38 1,36 1,34 1,33 1,23 1,43 1,35 1,56 1,40 1,49 7. 468 6. 627 7. 230 6. 137 7. 066 6. 374 7. 348 7. 046 7. 997 8. 805 7. 543 8. 165 6. 990 7. 528 8. 414 7. 382 7. 549 6. 860 8. 773 7. 913 9. 862 7. 494 8. 584 6,31 5,96 6,37 5,75 6,00 5,79 6,23 5,92 6,03 5,94 5,69 6,60 5,78 6,35 7. 11 6,13 6,20 6,00 6,70 6,39 7,00 6,20 6,70 91,92 80,74 89,78 78,47 89,15 79,45 90,47 81,60 86,52 92,17 81,38 92,05 80,62 87,84 96,41 81,98 82,36 73,87 95,86 86,48 109,35 86,75 99,66 331 331 331 327 319 297 324 341 377 390 405 409 401 410 405 398 387 384 375 367 364 359 371 207 235 221 264 128 290 533 1. 400 606 167 210 191 245 151 301 378 326 1. 190 391 382 133 227 261 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 \ U. S. A. Avg. Price X $ / lb (11b = 453,59 gr) 0,75 0,80 0,83 0,85 0,90 0,90 0,98 1,51 1,51 1,74 1,93 2,10 2,03 1,78 1,51 1,40 1,38 1,47 1,60 1. 74 1,76 1,81 1. 74 Average 86. 889 2. 444. 168 122. 208 1,41 7. 615 6,22 87,60 365 367 1,44 Index 95 (1973= 100) Index 95 (1982 = 100) 106% 108% 108% 102% 115% 106% 108% 112% 126% 232% 90% 86% 86% 96% 97% 113% 108% 95% 156% 100% TABLE 5 Hops production sold and average prices obtained under contract and not under contract 1980-1995 Production Average prices Under Contract 50 kg Under Contract % 2/(2+1) Not under Contract ECU/50 kg Under Contract ECU/50 kg 1 Not under Contract *) 50 kg EC 1980-1995 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 67. 385 154. 754 363. 795 223. 549 195. 478 173. 339 202. 218 161. 850 119. 035 169. 083 70. 306 235. 415 103. 879 390. 867 142. 973 149. 815 723. 983 768. 155 763. 131 744. 142 728. 662 718. 124 667. 937 634. 361 632. 255 641. 429 644. 352 679. 700 622. 778 639. 633 594. 831 685. 850 91% 83% 68% 77% 79% 81% 77% 80% 84% 79% 90% 74% 86% 62% 81% 82% 469 226 65 92 70 92 63 123 159 135 469 165 168 66 123 140 133 163 177 183 190 173 170 168 170 164 167 167 160 158 161 197 B. 1995 1994 1995 1994! 1995 Belgium Germany Spain France Ireland Austria Portugal United Kingdom 7. 699 130. 949 2. 409 1. 204 7. 554 4. 371 550. 122 32. 013 19. 186 206 6. 716 2. 533 70. 705 36% ; 8 1 %' 93% 94% 100% 100% 100% 90% 111 120 52 152 0 0 0 212 119 138 116 143 0 0 0 201 142 | 156! 124 j 206 | 213; 282! 63: 185; 173| 195 ! 144 217 287 274 132 230 Unsold quantities are not included X, Group A/I SURFACE AREA IN HECTARES PRODUCTION (5 kg = 1 Zentner) RETURNS (ECU) TABLE 6: MEMBER STATE RETURNS - HOPS 1995 AVER. PRICE (ECU) 50 KG RETURNS (ECU) ha Aromatic Hops A Total B New C New D Previous to Variety Origin B+C+D 1995 1994 1994 E Full F Production G Yield H Contract I Spot J Not sold K Contract L Spot M Total N Contract O Spot P Total Q FuB Production (B#0,4)+ (C0. 65) + D SOkg/ha F /A F-(H+I) N#H o *i Planted Production S /R T /R M /A M /E M V Aurora OE Bramling Cross UK Challenger B Fuggles Goldings Hallertauer FR UK UK B OE UK B D FR Hallert. Tradition B D FR OE Hersbrucker Spat B D OE Hueller Mailing Perle Progress Saaz Spalter Spalter Select Strisselspalt Tettnanger WVG D OE B D ES OE UK B D D D OE FR D UK TOTAL VARIETY B D AROMATIC ES FR OE UK EC EC EC £C EC EC EC EC EC EC EC EC EC EC EC EC 37 46 22 1 341 394 308 3 80 402 m 50 1. 05S 0 1,105 1 1. 133 3 0 1,137 3 4. 958 10 210 67 0 3. 705 0 39 3. 744 173 2 9 11 165 1. 367 1 1. 368 589 1. 061 106 : 61 13. 663 0 593 235 1. 376 15. 948 - - - 3 8 0 4 12 9 0 39 3* 1 161 0 162 0 251 3 254 0 8 8 0 156 156 30 0 0 2 93 93 17 25 29 8 696 20 0 114 838 1 1 0 0 2 2 20 0 20 2\ 1 42 0 43 1 269 0 270 0 6 & 1 1 0 281 0 5 286 58 0 0 1 260 260 18 17 25 37 43 14 1 335 35Ô 279 3 80 343 48 852 0 9GÛ 0 613 0 0 614 3 4. 944 10 4 9 50 209 66 0 3 268 0 34 3 303 85 2 9 11 162 1. 014 1 1D1S 554 1. 019 52 37 44 17 1 338 295 3 80 372 455 49 944 0 0 *3 1 888 1 0 891 3 4. 951 10 4 , 9 6* 210 67 0 3. 513 0 37 3. 551 135 2 9 1t 163 1. 220 1 1 2 31 572 1. 040J 1. 142 888 399 29 9. 118 $,546 6. 216 59 2312 9. 385 1Ï756 1. 463 26 247 4 27. 7U 30 33. 593 0 8 33631 56 150. 300 254 15*3. 610 6. 368 1. 794 124. 692 4 960 t2S«56 3. 166 61 145 206 3. 498 42. 783 22 42805 19 157 21. 897 801 1. 9801 2 877 0 18 6 127 1. 030 71 12. 090 0 555 228 1. 135 14. 080 76 ' 12. 938 0 575 233 1. 264 15. 085J 2. 068 409. 523 4 19. 191 6. 492 30. 752 468. 029 31 19 19 25 27 28 20 17 29 23 24 29 25 32 25 29 30 0 18 90 16 30 25 W 30 27 0 34 14 25 34 18 37 16 19 21 31 21 31 331 21 19 : 25 30 14 32 28 22 29 1. 142 833 335 29 8. 678 9 0 41 5. 785 59 2. 312 8 636 11. 007 368 21. 640 0 22008 8 26. 938 8 26954 45 129. 390 254 129. 689 3. 906 1. 794 101. 871 4 960 102 635 2. 976 0 145 145 3. 141 37. 756 22 37 778 18. 048 20. 735 1. 754 815 345. 522 4 18. 077 6. 492 28. 661 399. 570 - 55 65 0 434 499 426 0 744 744 1. 095 4. 607 4 5. 706 23 6. 655 11 20. 910 20,321 2462 - 22 821 22. 821 177 61 61 347 5. 027 5027 695 1. 162 225 1. 253 63. 991 0 699 0 2. 061 68. 004 0 0 0 0 6 • 5 0 0 5 S 0 0 0 0 0 0 0 0 Û 0 0 0 & 0 0 0 0 0 0 0 13 0 0 0 10 0 0 0 415 0 290. 296 221. 961 67. 703 8. 286 2. 336. 136 1. 615. 357 12. 766 676. 658 2. 591. 009 67. 260 5. 914. 740 0 £. 982. 000 1. 397 5. 483. 246 0 2. 088 5. 486,741 7. 952 24 165. 254 64. 407 24237,61$ 672. 120 468. 289 0 18. 918. 839 638 265. 782 14. 185259 833. 805 0 30. 047 30,047 866. 751 7. 942. 752 5. 743 7548. 435 4. 004,452 5. 787. 038 507. 435 K + L + (J * 0. 7 • O) 290. 296 0 13. 998 12. 662 0 101. 335 113,908 124. 831 0 0 237. 124 116. 227 1. 317. 211 539 2. 414 1. 110. 237 0 0 1,112. 661 806 1. 667. 394 0 352. 607 0 0 4. 118. 450 0 0 4 1 1 & 4 50 47. 940 11. 477 0 11. 477 99. 941 862. 377 0 862477 110. 369 332. 233 69. 084 235. 959 80. 365 8. 286 2. 438. 452 ::%iSS&085 1. 741. 214 12. 766 676. 658 2. 829. 248 183. 487 7. 231. 951 539 7. 4 1 & 0» 3. 811 6. 593. 483 0 2. 088 &S8&382 8. 758 25. 832. 648 64. 407 « 8 0 S , 8 1* 1. 024. 727 468. 289 0 23. 037. 289 638 265. 782 23. 303. 708 884. 210 11. 477 30. 047 41. 924 968. 708 8. 805. 129 5. 743 6. 810872 4. 160. 902 6. 119. 271 576. 734 1 i 1 '• 0 10 0 415 0 30 455 157. 078 69. 780. 786 638 4. 013. 376 1. 773. 263 8. 105. 702 83. 830. 843 143. 586 9. 860. 451 300. 664 79. 642. 315 0 638 110. 908 0 594. 314 10. 709. 258 4. 170. 312 1. 773. 263 8. 706. 071 94. 590. 204 254 267 202 283 269 3 67 279 215 293 300 39$ 183 273 0 2 72 183 204 0 261 2 04 177 187 254 1*7 172 261 0 186 166 277 187 280 0 207 207 276 210 261 210 222 279 289 193 202 166 222 273 283 210 7. 853 5. 338 4. 737 7. 082 7. 223 5. 895 3. 775 8. 505 7. 614 • •. •tj4 Jj 3. 733 7. 663 5. 282 7 4 69 0 255 196 0 233 7. 816 5. 118 3. 725 7. 082 7. 154 &9SQ- 5. 657 293 0 3. 696 0 8. 505 319 7. 037 #W ; MM 3. 682 106 286 6. 855 129 4. 145 2 51 #,711 3. 682 5. 819 0 4. 641 5J802 106 167 0 0 167 76 80 0 80 143 0 0 180 0 0 180 271 189 0 189 288 172 0 1?2 159 286 307 115 154 0 159 0 288 157 : 1 2. 507 5. 210 6. 253 4. 880 6. 979 0 6. 218 2. 277 6. 794 6. 223 5. 111 6. 924 3. 339 3. 896 5. 871 6. 441 5. 469 «. 440 7. 067 5. 767 5. 420 3. 705 5. 829 2. 277 7. 033 7. 555 6. 326 5. 931 4. 737 7. 423 0 4. 641 TJWff 2. 507 5. 218 6 2 53 121* 4. 888 7. 019 0 6. 558 2. 760 7. 090 6. 563 6. 555 6. 963 3. 339 3. 900 5. 927 7. 216 5. 469 r,2*5 7. 272 5. 884 7. 215 3. 980 6. 155 2. 760 7. 258 7. 626 6. 890 6. 271 Group B/ll SURFACE AREA IN HECTARES PRODUCTION (5 kg = 1 Zentner) RETURNS (ECU) TABLE 6 MEMBER STATE RETURNS - HOPS 1995 (cont'd 1) Bitter Hops Variety Brewer's Gold Bullion Chinook Galena H-3 Leones H-7 Leones Hallertauer Magnum Northdown North. Brewer Nugget * Omega Orion Target Yeoman TOTAL BITTER B D ES FR P UK D B D FR OE UK B FR UK B D ES FR IRL OE P UK A Total B New C New 0 Previous to 1995 1994 1994 B+C+D E Full Production (B*0,4)+ (C*0,65) + D F Production G Yield 50kg/ha F /A Origin B D FR mmmwm D FR FR ES ES B 0 ES FR EC EC EC EC EC 4 1. 140 16 mmmm 47 1 0 737 300 13 1. 850 5 6 1. 874 IRL UK mmm£& B D FR UK 8 360 mmmWt 61 4. 211 6 3 4. 280 8 668 60 27 121 6 84 3 110 182 101 16 0 1. 242 1,541 24 5 44 72 €C EC EC EC : EC I 291 8. 127 1. 102 77 8 0 121 1. 651 11. 376 EC 4 1. 135 15 mmmm 47 1 0 717 300 4 994 0 0 2 1 504 4 2 511 - - - - 0 5 0 18 7 352 1 4 364 - - - - - 5 2 13 0 0 15 0 137 57 2 11 £67 0 24 mmmWt 2 27 0 0 30 3 124 1 6 20 t il 0 19 9 1 10 39 0 0 0 a 22 663 63 5 11 16 780 - 42 7 3 9 «0 2 0 0 2 56 515 20 13 20 33 657 4 1. 138 16 mmmm 47 1 0 730 300 9 1. 424 2 3 1,439 8 348 mmmm 59 4. 194 6 3 4,261 7 542 25 24 108 706 3 110 156 93 15 0 1. 233 1,496 23 5 43 71 115 49. 942 902 2. 047 22 0 29. 293 4. 105 387 51. 367 44 100 51398 206 10. 382 1. 564 134. 807 166 33 136. 570 226 22. 590 400 1. 159 2. 533 281)07 80 3. 993 6. 964 4154 443 1 38413 49. 9-75 702 92 991 1784 258 7. 549 1. 057 69 8 0 108 1. 630 10. 679 9. 957 268. 900 33. 842 2. 884 206 1 2. 533 49. 900 368. 222 0 996 8 330 57 4. 171 6 3 4236 5 407 1 19 91 523 3 110 121 85 13 0 1. 223 1442 22 5 43 70 213 6. 949 1. 018 59 8 0 91 1. 602 9. 940 26 44 58 mmmm 44 28 0 40 14 31 28 9 16 28 27 29 mmmm 26 32 26 13 32 29 34 7 43 21 30 26 36 38 41 27 39 31 32 29 20 23 25 34 33 31 38 27 39 21 30 32 - 27. 895 4. 105 0 40. 039 9 62 40. 110 206 9. 897 581 109. 402 50 33 1t0 066 83 16. 291 35 2533 18 $4* 50 3. 134 2. 502 2 852 310 1 31. 100 36. 765 376 40 578 994 3. 556 202. 234 32. 009 1. 109 206 1 2. 533 41. 659 283. 306 H Contract I Spot J Not sold K Contract L Spot M Total 15 29. 916 589 mw&m 600 22 100 20. 026 106 mmmm 1. 447 - - 2. 028 - 387 11. 328 35 38 11. 788 F - (H+l) 0 0 206 mmmm 0 0 0 -630 0 0 0 0 0 0 N *H O 'l 1. 518 4. 237. 483 58. 619 mWmm 91. 283 3. 523 0 3. 925. 948 679. 619 0 8. 128. 957 1. 495 9. 814 «140,266 7. 449 1. 397. 290 12. 225 mmmmm 106. 276 0 0 214. 833 0 55. 525 1. 877. 937 5. 826 5. 818 1,946,106 K + L + (J ' 0. 7 * O) 8. 967 5. 634. 773 87. 474 mmmmm 197. 559 3. 523 0 4. 094. 064 679. 619 55. 525 10. 006. 894 7. 321 15. 633 10,086,379 AVER. PRICE (ECU) 50 KG N Contract O Spot RETURNS (ECU) ha P Total Planted Q Full Production S /R T /R M /A M /E 101 142 100 mmWfâê 152 157 0 141 166 0 203 166 158 203 75 70 115 mmmm 73 0 0 106 0 144 166 166 151 168 2. 045 4. 943 5. 593 mmmm 4. 203 4. 404 0 5. 555 2. 265 4. 437 5. 409 1. 494 2. 567 6,983 2. 059 4. 950 5. 623 mmmm 4. 203 4. 404 0 5. 612 2. 265 6. 071 7. 025 3. 351 4. 488 7,006 432 WÈmw& 0 53 S::W:!>S:*:;SS 0 0 10 0 10 0 0 54 1. 055 0 1,106 0 0 0 0 •0 0 3. 045 3. 045 0 0 58 66 59. 220 2. 733. 812 mmëm$a& 101. 286 20. 260. 055 8. 598 9. 632 20. 379. 571 14. 686 2. 914. 357 0 5. 513 335. 406 t««fcfiei 9. 865 603. 401 414. 260 535. 640 48. 222 261 5. 257. 459 6. 255,843 65. 608 6. 656 82. 652 154. 916 0 120. 538 mwwiMM 107. 526 3. 638. 501 11. 124 0 3. 757. 1S1 12. 248 862. 487 57. 598 8. 163 0 040. 496 8. 090 109. 507 548. 257 181. 008 16. 863 0 640. 277 1. 366,406 37. 129 6. 633 50. 977 « 4 7 39 59. 220 2. 864. 701 2 923. 921 208. 813 23. 898. 556 20. 454 9. 632 24. 137,454 26. 933 3. 776. 845 63. 852 100. 502 335. 406 4,303537 17. 955 712. 907 962. 517 716. 648 65. 086 261 6. 217. 501 7,962,012 102. 737 13. 289 139. 459 2&&4B5 287 276 mmw$ 174 185 172 292 186 177 179 0 157 132 175: 197 193 166 188 155 261 169 170 175 166 143 15» 0 279 mmW& 109 143 105 0 142 85 137 166 118 0 137 270 127 123 139 127 0 150 136 114 129 144 120 7. 681 7. 968 illi:962- 3. 450 5. 675 3. 257 3. 853 3. 639 3. 405 5. 654 1. 067 3. 735 2. 763 *S8« 5. 792 6. 481 5. 298 7. 096 3. 971 10. 157 5. 006 6,166 4. 293 2. 947 3. 206 3. 551 L. 7. 681 8. 232 ï£!i;22o: 3. 553 5. 699 3. 303 3. 853 5. 664 3. 986 6. 963 2. 539 4. 230 3. 110 & 0 S7 5. 792 6. 481 6. 183 7. 693 4. 331 10. 157 5. 044 5,320 4. 400 2. 947 3. 209 3. 582 0 0 -576 1. 271 0 0 0 3. 156 3. 851 597. 358 36. 771. 176 4. 607. 062 140. 945 59. 220 261 335. 406 8. 093. 420 50. 604. 847 768. 134 8. 173. 006 278. 257 60. 826 0 0 0 819. 882 10. 100. 106 1. 365. 492 44. 944. 181 4. 838. 720 309. 005 59. 220 261 335. 406 9. 269. 504 61. 040. 778 168 182 144 127 287 261 132 194 179 120 123 116 121 0 0 0 161 125 4. 693 5. 530 4. 392 4. 025 7. 681 10. 157 2. 763 5. 616 5. 366 5. 292 5. 954 4. 579 4. 448 7. 681 10. 157 3. 110 5. 688 5. 716 983 25. 405 106 0 26. 494 143 6. 299 346 69 $ 8 58 30 859 4462 1. 302 133 4. 268 10,165 326 52 355 732 6. 401 66. 666 2. 409 505 5. 085 81. 066 Group C/lll SURFACE AREA IN HECTARES PRODUCTION (5 kg = 1 Zentner) RETURNS (ECU) TABLE 6 MEMBER STATE RETURNS - HOPS 1995 (cont'd 2) Total New New Previous ; [iProduction OTHER to 1995 1994 1994 Full : Production jj i (B*0,4)+ !| ! (0*0,65) Ï H Contract Yield j 50kgVha Spot Not sold Contract Spot Total [ ! K + L + AVER. PRICE (ECU) 50 KG RETURNS (ECU) ha N Contract Spot Total [ F u ll Planted Production II Variety Origin B+C+D + D F /A F - (H+l) Il N * H (J • 0,7 * O) S /R T /R M /A M /E ^Record Zenith UK Other incl D experimental OE varieties UK TOTAL OTHERS B 0 OE UK i*s& EC ec EC 2 79! m 16; •I 66! • 9 ii 2! 95 j a! 68$ 1741 2; 77 91 9 i I 29: 2! 86 ; Q| 321 2 |j 78 2 90 9 51 44 | 2 310 23$4f 86 348 j 223 823 1. 394. 44 2. 658 223 909 128 j 152 3. 834 1 ! oj 18 i 201 °! 2! »! 18 ! 2 1| 18; 24 i 18 25 GRAND B_ 373,95! 31 286: 335 12. 069 1. 394! 19. 125 20. 578 681. 081 20 1. 0191 1. 057 33. 845 ! 241 29. 29-j 31 22 25 13 15: 32 31 31 0 2063 2. 0$3 83 303 223 302 ::829:l: 0 2 366 223 385 2. 975 44 247 29*! 45i 405 460 44 292 I 408 744 0 4. 317 4. 317 409 102 37. 189 i 446. 291 4qg,«&j 18. 701 59. 768 65. 600 65. 332 190. 700 0 468. 870 65. 600 84. 033 618. 504 0 0 115] 115 0 0 0 115 115 644 7. 011 0 101. 575 106. 587 4. 317 44. 201 0 102. 220 150. 738 43QJ09 19. 346 66. 780 65. 600 187. 082 319,462 4. 317 513. 071 65. 600 206. 407 785. 541 4. 371 7. 699 754. 436 916. 037 1. 670. 473 550. 122 130. 949 10 107. 020. 832 18. 077. 658 125. 099. 456 32. 013 2. 409 -576 4. 607. 700 278. 257 4. 839. 357 TOTAL D 21 885. 00 ^ ES FR IRL OE P UK 1. 102,00 i 66971 243,71 121,40! T 3. 095,28 1. 366: t 631 j 25] ! -4 oj J31J 614 644 22. 075 19. 186 1. 204 1. 685 4. 154. 321 171. 734 4. 494. 367 206 206 _ 7_ 20 237 91 241 6. 716 28 6. 716 108 ^ 5 33 2 5 33 59. 220 1. 839. 124 335. 406 59. 220 1. 839. 124 335. 406 148; 178 2. 769 2. 944 81. 560 70. 705 7. 554 I 3. 301 16. 283. 155 1. 516. 416 18. 263. 410 ; EC ; 27498,75] 1. 643 1. 707 |_ 24. 148 25. 915 840. 085 685. 850 149. 815 4. 420 135. 054. 193 20. 960. 102 156. 447. 176 Agricultural conversion rate: 1. 1. 1996 0 198 m 225 197 294 216 230: 0 198 294 218 208 173 195 144 217 287 274 132 230 197 98 151 143 215 156 0 251 241 98 151 0 250 202 2. 321 5. 649 2. 321 5. 718 6. 909 4. 174 7. 321 2. 851 3. 527 2. 321 5. 401 7. 321 3. 017 4. 509 6. 909 5. 542 7. 452 3. 879 4,624 2. 321 5. 694 7. 452 4. 045 5. 175 119 4. 467 4. 980 fi 138 116 5. 716 6. 079 4. 391 4. 578 143 6. 711 6. 978 7. 681 7. 6811 7. 546 7. 620 2. 763 3. 110 201 140 5. 900 6. 2031 5. 689 6. 037J FINANCIAL STATEMENT BUDGET HEADING: 181 APPROPRIATIONS: ECU 18 million TITLE: Proposal for a Council Regulation fixing the amount of producer aid in the hops sector for the 1995 harvest. LEGAL BASIS: Article 43 of the Treaty AIMS OF PROJECT: Fixing area aid per hectare for some hop varieties harvested in 1995. 2. 3. 4. 5. FINANCIAL IMPLICATIONS 5. 0. EXPENDITURE - CHARGED TO THE EC BUDGET (REFUNDS/INTERVENTION) - NATIONAL ADMINISTRATION - OTHER 5. 1. REVENUE 5. 0. 1. 5. 1. 1. ESTIMATED EXPENDITURE ESTIMATED REVENUE 5. 2. METHOD OF CALCULATION: PERIOD OF 12 MONTHS million ecu CURRENT FINANCIAL YEAR (96) million ecu FOLLOWING FINANCIAL YEAR (97) million ecu 12. 2 6. 1 6. 1 1998 1999 2000 ha ECU/ha ECU million Aromatic varieties Bitter varieties Other varieties 15 948 11 376 174 27 498 444 416 298 7. 08 4. 73 0. 05 (DT) 11. 87 x 1 030 ECU(B) 12. 2 m 6. 0. 6. 1. 6. 2. 6. 3. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? IS A SUPPLEMENTARY BUDGET NECESSARY? WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/NO YES/NO YES/NO YES/NO OBSERVATIONS: The new measure represents a saving of ECU 2. 7 million over the 1996 budget proposal for the 1995 harvest. 30 ISSN 0254-1475 COM(96) 226 final DOCUMENTS EN 03 Catalogue number ; CB-CO-96-236-EN-C ISBN 92-78-04418-0 Office for Official Publications of the European Communities L-2985 Luxembourg l\

Proposal for a COUNCIL REGULATION (EC) concerning rice imports from the Arab Republic of Egypt

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 24. 05. 1996 COM(96)227 final %/()137(ACC) 96/0138 (ACC) Proposal for a on the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice originating in and coming from Egypt (presented by the Commission) Proposal for a rOTTNÇn. REGULATION (EC) concerning rice imports from the Arab Republic of Egypt (presented by the Commission) EXPLANATORY MEMORANDUM 1. Article 19 of the current Cooperation Agreement between the Community and the Arab Republic of Egypt provides that the Community shall take all necessary measures to ensure that the levy on imports into the Community of rice originating in Egypt is reduced by an amount equal to 25% of the average level of levies applicable during a reference period, within the limits of an annual quantity of 32 000 tonnes. The reduction is accorded on condition that Egypt levy a special export charge equal to that amount and that the charge be reflected in the import price into the Community. Under the agreements concluded within the GAIT Uruguay Round, the levies 2. applied to the product in question were replaced by customs duties on 1 July 1995. This effectively cancels the reduction stipulated in the Cooperation Agreement, and Egypt has therefore asked for the arrangements to be amended. 3. Article 22 of the Cooperation Agreement requires the Community, in the event of any modification of the existing rules, to take appropriate account of Egypt's interests and accord an advantage comparable to that provided for in the Agreement. It is necessary to make provision for the said preferential treatment to continue, taking account of the change in circumstances. Under an arrangement reached with Egypt, customs duties would be reduced by 4. 25% from May within a quota of 32 000 tonnes and the condition dropped. This arrangement, which is aimed at restoring earlier advantages, has been incorporated ni the annexed exchange of letters. The conclusion of this agreement also entails the replacement of Council Regulation (EEC) No 1250/77 by a regulation reflecting the change in circumstances. 5. The Commission proposes that the Council adopt the Decision concerning the conclusion of the exchange of letters negotiated with Egypt and the proposal for a Regulation aimed at implementing the measures agreed in that exchange of letters. I COUNCIL DECISION • of. 1996 S^/o ltf(î\e*) on the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice originating in and coming from Egypt (96/ /EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 113 in conjunction with the first sentence of Article 228(2) thereof, Having regard to the proposal from the Commission, Whereas Article 19 of the Cooperation Agreement between the European Economic Community and the Arab Republic of Egypt1 provides for a reduction in the levy on imports into the Community of rice originating in and coming from that country within the limits of a maximum quantity of 32 000 tonnes a year and on condition that an export levy be collected; whereas the Agreement provides that the Community may modify these arrangements, taking account of Egypt's interests, in the event of any change in its rules; Whereas the Community, in the Uruguay Round agreement on agriculture, has undertaken to replace variable levies with customs duties; whereas this necessitates the modification of the Agreement with Egypt; Whereas the Community has to that end negotiated with the Arab Republic of Egypt an Agreement in the form of an Exchange of Letters modifying the arrangements in question; Whereas this Agreement should be approved, HAS DECIDED AS FOLLOWS: Article 1 The Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice originating in and coming from Egypt is hereby approved on behalf of the Community. The text of the A<>reement is annexed to this Decision. Article 2 O J No L 266. 27. 9. 1978 p i. The President of the Council is hereby authorized to designate the person empowered to sign the Agreement in order to bind the Community. Article 3 The provisions implementing the Agreement, including any surveillance measures, shall in Article 27 of Council be adopted according Regulation (EEC) No 1418/76 of 21 June 1976 on the common organization of the market in rice. " the procedure laid down to Where the application of the Agreement calls for close cooperation with Egypt, the Commission may take all necessary measures to ensure such cooperation. Done at Brussels,. 1996 For the Council The President OJ No 1. 166. 25. 6. 1976. p. l. AGREEMENT in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice originating in and coming from Egypt Letter No 1 ^Brussels, 1996 Sir, I have the honour to refer *to the Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt concerning the arrangements for imports into the Community of rice originating in and coming from Egypt. Under this Agreement the customs duties applicable to imports of rice (CN code 1006) originating in and coming from Egypt shall be those calculated in accordance with Article 12 of Regulation (EEC) No 1418/76 reduced by an amount equal to 25% of the value of the said duties. The application of the reduction in customs duties accorded shall no longer be subject to the collection by Egypt of an export levy on the product. This reduction in customs duties shall be applicable from 1 May 1996. This Agreement shall be approved by the Contracting Parties in accordance with their own procedures. It shall enter into force on 1 May 1996. 1 should be obliged if you would confirm your agreement with the contents of this letter. Please accept, Sir, the assurance of my highest consideration. <®n rhêhalftof'the Council of lihfi JEurepean tUnion Letter No 2 Cairo,. 1996 Sir, I have the honour to acknowledge receipt of your letter of today's date which reads as follows: "I have the honour to refer to the Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt concerning the arrangements for imports into the Community of rice originating in and coming from Egypt. Under this Agreement the customs duties applicable to imports of rice (CN code 1006) originating in and coming from Egypt shall be those calculated in accordance with Article 12 of Regulation (EEC) No 1418/76 reduced by an amount equal to 25% of the value of the said duties. The application of the reduction in customs duties accorded shall no longer be subject to the collection by Egypt of an export levy on the product. This reduction in customs duties shall be applicable from 1 May 1996. This Agreement shall be approved by the Contracting Parties in accordance with their own procedures. It shall enter into force on 1 May 1996. 1 should be obliged if you would confirm your agreement with the contents of this letter. Please accept, Sir, the assurance of my highest consideration. " I have the honour to confirm the agreement of the Government of the Arab Republic of Egypt. Please accept, Sir, the assurance of my highest consideration. On behalf of Republic of Egypt the Arab £ COUNCIL REGULATION (EC) NO. of. concerning rice imports from the Arab Republic of Egypt %/o / i8 (V 0 THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof, Having regard to the proposal from the Commission, Whereas the Contracting Parties have agreed, in an exchange of letters, that the customs duties to be applied to imports of rice (CN code 1006) originating in and coming from Egypt are to be those calculated in accordance with Article 12 of Council Regulation (EEC) No 1418/76 of 21 June 1976 on the common organization of the market in rice1 reduced by an amount equal to 25% of the value of those duties, and that the reduction accorded is no longer to be subject to the collection by Egypt of an export levy on the product; Whereas Regulation (EEC) No 1250/77 concerning imports of rice from the Arab Republic of Egypt should be repealed accordingly/ HAS ADOPTED THIS REGULATION: Article 1 The customs duties on imports of rice (CN code 1006) originating in and coming from Egypt shall be those calculated in accordance with Article 12 of Council Regulation (EEC) No 1418/76 reduced by an amount equal to 25%» of the value of those duties, within the limits of an annual volume of 32 000 tonnes. Article 2 The arrangements for the implementation of this Regulation, including any surveillance measures, shall be adopted in accordance with the procedure laid down in Article 27 of Regulation (EEC) No 1418/76. Regulation (EEC) No 1250/77 is hereby repealed. Article 3 1 2 OJ No L 166, 25. 6. 1976, p. 1. OJ No L 146, 14. 6. 1977, p. 9. > Article 4 This Regulation shall enter into force on the third day following its publication in the Official. Journal of the European Communities. It shall apply from 1 May 1996. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels,. 1996 For the Council BUDGET HEADING: 1000 TITLE: DATE:, APPROPRIATIONS: ECU 864 million Council Decision on the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice originating in and coming from Egypt 3. LEGAL BASIS: Article 113 AIMS OF PROJECT: Updating, in Ihc light ol'the Uruguay Round agreements, the Agreement between the Community and Egypt in respect of the import into the Community of 32 000 tonnes of rice. FINANCIAL IMPLICATIONS 5. 0. EXPENDITURE CHARGED TO THE EC B U D G ET (REFUNDS/INTERVENTION) NATIONAL ADMINISTRATION OTHER 5. 1. R E V E N UE - O WN RESOURCES OF THE EC (LEVIES/CUSTOMS DUTIES) - NATIONAL 5. 0. 1. 5. 1. 1. ESTIMATED EXPENDITURE ESTIMATED R E V E N UE 5. 2. METHOD OF CALCULATION: PERIOD OF 12 MONTHS million ecu CURRENT FINANCIAL YEAR (96) million ecu FOLLOWING FINANCIAL YEAR (97) million ecu 7. 2 2. 4 4. 8 1998 1999 2000 2001 32 000 tonnes x (351 x 1. 8 - 300) ECU/t x 7 5% x 90% = ECU 7. 2 million ECU 351/t = intervention price ECU 300/t = world market price <>. (). 6. 1 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS E N T E R ED IN THE R E L E V A NT CHAPTER OF THE CURRENT BUDGET? CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? IS A SUPPLEMENTARY BUDGET NECESSARY? WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/NO ¥ES/N« V-4-S/NO Y-I^Z-Nt > i OBSERVATIONS: I ! This proposal extends the Agreement between the Community and Egypt. As well as bringing the Agreement into line with the GATT agreements, this decision maintains the preferential treatment currently enjoyed by Egypt. The 25% reduction represents a loss of own resources of ECU 2. 4 million. 3 ISSN 0254-1475 COM(96) 227 final DOCUMENTS EN 03 il Catalogue number : CB-CO-96-238-EN-C ISBN 92-78^04440-7 Office for Official Publications of the European Communitics L-2985 Luxembourg >

Proposal for a COUNCIL DECISION on the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice originating in and coming from Egypt

http://publications.europa.eu/resource/cellar/e3cc581c-6fad-43ae-8462-abe0f32dc015

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 24. 05. 1996 COM(96)227 final %/()137(ACC) 96/0138 (ACC) Proposal for a on the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice originating in and coming from Egypt (presented by the Commission) Proposal for a rOTTNÇn. REGULATION (EC) concerning rice imports from the Arab Republic of Egypt (presented by the Commission) EXPLANATORY MEMORANDUM 1. Article 19 of the current Cooperation Agreement between the Community and the Arab Republic of Egypt provides that the Community shall take all necessary measures to ensure that the levy on imports into the Community of rice originating in Egypt is reduced by an amount equal to 25% of the average level of levies applicable during a reference period, within the limits of an annual quantity of 32 000 tonnes. The reduction is accorded on condition that Egypt levy a special export charge equal to that amount and that the charge be reflected in the import price into the Community. Under the agreements concluded within the GAIT Uruguay Round, the levies 2. applied to the product in question were replaced by customs duties on 1 July 1995. This effectively cancels the reduction stipulated in the Cooperation Agreement, and Egypt has therefore asked for the arrangements to be amended. 3. Article 22 of the Cooperation Agreement requires the Community, in the event of any modification of the existing rules, to take appropriate account of Egypt's interests and accord an advantage comparable to that provided for in the Agreement. It is necessary to make provision for the said preferential treatment to continue, taking account of the change in circumstances. Under an arrangement reached with Egypt, customs duties would be reduced by 4. 25% from May within a quota of 32 000 tonnes and the condition dropped. This arrangement, which is aimed at restoring earlier advantages, has been incorporated ni the annexed exchange of letters. The conclusion of this agreement also entails the replacement of Council Regulation (EEC) No 1250/77 by a regulation reflecting the change in circumstances. 5. The Commission proposes that the Council adopt the Decision concerning the conclusion of the exchange of letters negotiated with Egypt and the proposal for a Regulation aimed at implementing the measures agreed in that exchange of letters. I COUNCIL DECISION • of. 1996 S^/o ltf(î\e*) on the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice originating in and coming from Egypt (96/ /EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 113 in conjunction with the first sentence of Article 228(2) thereof, Having regard to the proposal from the Commission, Whereas Article 19 of the Cooperation Agreement between the European Economic Community and the Arab Republic of Egypt1 provides for a reduction in the levy on imports into the Community of rice originating in and coming from that country within the limits of a maximum quantity of 32 000 tonnes a year and on condition that an export levy be collected; whereas the Agreement provides that the Community may modify these arrangements, taking account of Egypt's interests, in the event of any change in its rules; Whereas the Community, in the Uruguay Round agreement on agriculture, has undertaken to replace variable levies with customs duties; whereas this necessitates the modification of the Agreement with Egypt; Whereas the Community has to that end negotiated with the Arab Republic of Egypt an Agreement in the form of an Exchange of Letters modifying the arrangements in question; Whereas this Agreement should be approved, HAS DECIDED AS FOLLOWS: Article 1 The Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice originating in and coming from Egypt is hereby approved on behalf of the Community. The text of the A<>reement is annexed to this Decision. Article 2 O J No L 266. 27. 9. 1978 p i. The President of the Council is hereby authorized to designate the person empowered to sign the Agreement in order to bind the Community. Article 3 The provisions implementing the Agreement, including any surveillance measures, shall in Article 27 of Council be adopted according Regulation (EEC) No 1418/76 of 21 June 1976 on the common organization of the market in rice. " the procedure laid down to Where the application of the Agreement calls for close cooperation with Egypt, the Commission may take all necessary measures to ensure such cooperation. Done at Brussels,. 1996 For the Council The President OJ No 1. 166. 25. 6. 1976. p. l. AGREEMENT in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice originating in and coming from Egypt Letter No 1 ^Brussels, 1996 Sir, I have the honour to refer *to the Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt concerning the arrangements for imports into the Community of rice originating in and coming from Egypt. Under this Agreement the customs duties applicable to imports of rice (CN code 1006) originating in and coming from Egypt shall be those calculated in accordance with Article 12 of Regulation (EEC) No 1418/76 reduced by an amount equal to 25% of the value of the said duties. The application of the reduction in customs duties accorded shall no longer be subject to the collection by Egypt of an export levy on the product. This reduction in customs duties shall be applicable from 1 May 1996. This Agreement shall be approved by the Contracting Parties in accordance with their own procedures. It shall enter into force on 1 May 1996. 1 should be obliged if you would confirm your agreement with the contents of this letter. Please accept, Sir, the assurance of my highest consideration. <®n rhêhalftof'the Council of lihfi JEurepean tUnion Letter No 2 Cairo,. 1996 Sir, I have the honour to acknowledge receipt of your letter of today's date which reads as follows: "I have the honour to refer to the Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt concerning the arrangements for imports into the Community of rice originating in and coming from Egypt. Under this Agreement the customs duties applicable to imports of rice (CN code 1006) originating in and coming from Egypt shall be those calculated in accordance with Article 12 of Regulation (EEC) No 1418/76 reduced by an amount equal to 25% of the value of the said duties. The application of the reduction in customs duties accorded shall no longer be subject to the collection by Egypt of an export levy on the product. This reduction in customs duties shall be applicable from 1 May 1996. This Agreement shall be approved by the Contracting Parties in accordance with their own procedures. It shall enter into force on 1 May 1996. 1 should be obliged if you would confirm your agreement with the contents of this letter. Please accept, Sir, the assurance of my highest consideration. " I have the honour to confirm the agreement of the Government of the Arab Republic of Egypt. Please accept, Sir, the assurance of my highest consideration. On behalf of Republic of Egypt the Arab £ COUNCIL REGULATION (EC) NO. of. concerning rice imports from the Arab Republic of Egypt %/o / i8 (V 0 THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof, Having regard to the proposal from the Commission, Whereas the Contracting Parties have agreed, in an exchange of letters, that the customs duties to be applied to imports of rice (CN code 1006) originating in and coming from Egypt are to be those calculated in accordance with Article 12 of Council Regulation (EEC) No 1418/76 of 21 June 1976 on the common organization of the market in rice1 reduced by an amount equal to 25% of the value of those duties, and that the reduction accorded is no longer to be subject to the collection by Egypt of an export levy on the product; Whereas Regulation (EEC) No 1250/77 concerning imports of rice from the Arab Republic of Egypt should be repealed accordingly/ HAS ADOPTED THIS REGULATION: Article 1 The customs duties on imports of rice (CN code 1006) originating in and coming from Egypt shall be those calculated in accordance with Article 12 of Council Regulation (EEC) No 1418/76 reduced by an amount equal to 25%» of the value of those duties, within the limits of an annual volume of 32 000 tonnes. Article 2 The arrangements for the implementation of this Regulation, including any surveillance measures, shall be adopted in accordance with the procedure laid down in Article 27 of Regulation (EEC) No 1418/76. Regulation (EEC) No 1250/77 is hereby repealed. Article 3 1 2 OJ No L 166, 25. 6. 1976, p. 1. OJ No L 146, 14. 6. 1977, p. 9. > Article 4 This Regulation shall enter into force on the third day following its publication in the Official. Journal of the European Communities. It shall apply from 1 May 1996. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels,. 1996 For the Council BUDGET HEADING: 1000 TITLE: DATE:, APPROPRIATIONS: ECU 864 million Council Decision on the conclusion of the Agreement in the form of an Exchange of Letters between the European Community and the Arab Republic of Egypt modifying the arrangements for imports into the Community of rice originating in and coming from Egypt 3. LEGAL BASIS: Article 113 AIMS OF PROJECT: Updating, in Ihc light ol'the Uruguay Round agreements, the Agreement between the Community and Egypt in respect of the import into the Community of 32 000 tonnes of rice. FINANCIAL IMPLICATIONS 5. 0. EXPENDITURE CHARGED TO THE EC B U D G ET (REFUNDS/INTERVENTION) NATIONAL ADMINISTRATION OTHER 5. 1. R E V E N UE - O WN RESOURCES OF THE EC (LEVIES/CUSTOMS DUTIES) - NATIONAL 5. 0. 1. 5. 1. 1. ESTIMATED EXPENDITURE ESTIMATED R E V E N UE 5. 2. METHOD OF CALCULATION: PERIOD OF 12 MONTHS million ecu CURRENT FINANCIAL YEAR (96) million ecu FOLLOWING FINANCIAL YEAR (97) million ecu 7. 2 2. 4 4. 8 1998 1999 2000 2001 32 000 tonnes x (351 x 1. 8 - 300) ECU/t x 7 5% x 90% = ECU 7. 2 million ECU 351/t = intervention price ECU 300/t = world market price <>. (). 6. 1 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS E N T E R ED IN THE R E L E V A NT CHAPTER OF THE CURRENT BUDGET? CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? IS A SUPPLEMENTARY BUDGET NECESSARY? WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/NO ¥ES/N« V-4-S/NO Y-I^Z-Nt > i OBSERVATIONS: I ! This proposal extends the Agreement between the Community and Egypt. As well as bringing the Agreement into line with the GATT agreements, this decision maintains the preferential treatment currently enjoyed by Egypt. The 25% reduction represents a loss of own resources of ECU 2. 4 million. 3 ISSN 0254-1475 COM(96) 227 final DOCUMENTS EN 03 il Catalogue number : CB-CO-96-238-EN-C ISBN 92-78^04440-7 Office for Official Publications of the European Communitics L-2985 Luxembourg >

Proposal for a European Parliament and Council Directive amending Council Directives 74/150/EEC, 74/151/EEC, 74/152/EEC, 74/346/EEC, 74/347/EEC, 75/321/EEC, 75/322/EEC, 76/432/EEC, 76/763/EEC, 77/311/EEC, 77/537/EEC, 78/764/EEC, 78/933/EEC, 79/532/EEC, 79/533/EEC, 80/720/EEC, 86/297/EEC, 86/415/EEC and 89/173/EEC relating to the maximum design speed of wheeled agricultural or forestry tractors

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COMMISSION OF THE EUROPEAN COMMUNITIES if * Brussels, 24. 05. 1996 COM(96) 196 final 96/0129 (COD) Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE amending Council Directives 74/150/EEC, 74/151/EEC, 74/152/EEC, 74/346/EEC, 74/347/EEC, 75/321/EEC, 75/322/EEC, 76/432/EEC, 76/763/EEC, 77/311/EEC, 77/537/EEC, 78/764/EEC, 78/933/EEC, 79/532/-. EC, 79/533/EEC, 80/720/EEC, 86/297/EEC, 86/415/EEC and 89/173/EEC relating to the maximum design speed of wheeled agricultural or forestry tractors. (presented by the Commission) EXPLANATORY MEMORANDUM European lype-approval for tractors, which was put in place progressively between 1974 and 1991, consists of a framework directive 74/15Q/EEC, as last amended by directive 88/297/EEC, and twenty-two individual directives. The objective was to create a single type-approval system, in which free circulation within the Community would be achieved. Application of the directives and the whole vehicle type-approval remain optional; in other words their use is at the behest of each manufacturer. If a manufacturer, however, chooses to certify his vehicle in accordance with the directives, Member States are obliged to permit free circulation to the tractors in question. In the last few years the use of the optional European type-approval system by manufacturers has diminished considerably. This is above all because the scope of the framework directive is currently limited to tractors with a maximum design speed of between 6 and 30 km/h. The same maximum design speed is taken to define the scope of the various individual directives. Since a growing number of agricultural and forestry tractors have maximum design speeds in excess of 30 km/h, manufacturers have instead opted to have recourse to national type-approval procedures. As a first step to bring these directives up to date two measures therefore need to be taken. Firstly, the framework directive and the individual directives need to be amended to increase the maximum vehicle speed from 30 to 40 km/h. This increased speed has been chosen following consultation with Member States' and Industry experts. Secondly, the separate braking directive 76/432/EEC needs to be amended in order to introduce new technical prescriptions reflecting the fact that in future tractors will be permitted to run at faster speeds. This latter amendment must be made under the Committee procedure provided for in Article 12 of the framework directive. The Commission will in due course propose further amendments, through the Committee of Adaptation to technical progress, to all other individual directives, in order to complete the process of modernisation of the type-approval system for tractors. Once this process will be completed, the Commission will bring forward a further amendment of the framework directive, in order to take account of the experience gained since its entry into force and to enlarge the scope to include other agricultural vehicles or trailers. It will also introduce, after a certain delay, mandatory European type-approval, as is the case of passenger cars. From this date forward new types of tractors will be type-approved only according to European directives. This provision will apply to all new tractors after a further lapse of time. Finally the Commission wishes to indicate that in the light of this new approach to updating the directives and the conclusions reached at a meeting of Coreper on 19 February 1992, it will propose shortly to withdraw its old proposal (SEC (91) 466 final) aimed at codifying European legislation in the area of the construction characteristics of agricultural tractors. The priority, as indicated above, is to update the directives and make the type-approval system work at European level. It is proposed to return to the issue of codification at a later date. Proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE amending Council Directives 74/150/EEC, 74/151/EEC, 74/152/EEC, 74/346/EEC, 74/347/EEC, 75/321/EEC, 75/322/EEC, 76/432/EEC, 76/763/EEC, 77/31 I/EEC, 77/537/EEC, 78/764/EEC, 78/933/EEC, 79/532/EEC, 79/533/EEC, 80/720/EEC, 86/297/EEC, 86/415/EEC and 89/173/EEC relating to the maximum design speed of wheeled agricultural or forestry tractors. THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 100a thereof. Having regard to the proposal from the Commission,1 Having regard to the opinion of the Economic and Social Committee,2 Whereas the scope of Directive 74/150/EEC on the approximation of the laws of the Member States relating to the type-approval of wheeled or agricultural forestry tractors3, as last amended by Directive 88/297/EEC4, is currently limited to tractors having a maximum design speed of between 6 and 30 km/h; Whereas the maximum design speed of a large number of tractors today exceeds 30 km/h; whereas it has therefore become necessary to amend Directive 74/150/EEC and the separate directives forming part of the European whole vehicle type-approval system of these vehicles, so as to avoid the procedure applying to fewer and fewer vehicles; separate Directives 74/151/EEC5, 74/r52/EEC6, 74/346/EEC7, 74/347/EEC8, Whereas 75/321/EEC9, 75/322/EEC10, 76/432/EEC", 76/763/EEC12, 77/311/EEC13, 77/537/EEC14, 1 2 3 4 5 6 7 8 9 10 OJ No C OJ No C OJNoL 84, of 28. 03. 1974, p. 10 OJ No L 126, of 20. 05. 1988, p. 52 OJ No L 84 of 28. 03. 1974, p. 25 OJ No L 84 of 28. 03. 1974, p. 33 OJ No L 191 of 15. 07. 1974, p. 1 OJ No L 191 of 15. 07. 1994, p. 5 OJ No L 147 of 09. 06. 1975, p. 24 OJ No L 147 of 09. 06. 1975, p. 28 ^ 78/764/EEC15, 78/933/EEC16, 79/532/EEC17, 79/533/EECIK, 80/720/EEC19, 86/297/EEC20, 86/415/EEC21 and 89/173/EEC22, contain a specific definition of their scope in relation to maximum design speed; whereas these Directives also need to be amended under the procedure foreseen in article 12 of Directive 74/150/EEC, so as to avoid their applying to fewer and fewer vehicles; Whereas an appropriate increase in the design speed is from 30 to 40 km/h; Whereas an increase in the maximum design speed used to define the scope of Directive 74/150/EEC and certain individual Directives requires also a change to Directive 76/432/EEC on the approximation of the laws of the Member States relating to the braking devices of wheeled agricultural or forestry tractors23; whereas this change, which is made in a separate act, must enter into force no later than this directive; HAVE ADOPTED THIS DIRECTIVE Article 1 In Article 1(2) of Directives 74/150/EEC, 74/151/EEC, 74/152/EEC, 74/346/EEC, 74/347/EEC, 75/321/EEC, 75/322/EEC, 76/432/EEC, 76/763/EEC, 77/311/EEC, 77/537/EEC, 78/933/EEC, 79/532/EEC, 79/533/EEC, 80/720/EEC, 86/297/EEC, 86/415/EEC and 89/173/EEC, Article 9(2) of Directive 78/764/EEC and Item 1. 5 in the Annex to Directive 74/152/EEC, the words "30 km/h" are hereby replaced by "40 km/h". Article 2 1. Member States shall adopt and publish the measures necessary to comply with this Directive by 1 October 1997 and shall forthwith inform the Commission thereof. They shall apply the measures from 1 March 1998 insofar as Annexes I and II to Directive 76/432/EEC have been amended accordingly. 11 12 13 14 15 16 21 22 23 OJ No L 122 of 08. 05. 1976, p. 1 OJ No L 262 of 27. 09. 1976, p. 135 OJ No L 105 of 28. 04. 1977, p. 1 OJ No L 220 Of 29. 08. 1977. p. 38 OJ No L 255 of 18. 09. 1978, p. 1 OJ No L 325 of 20. 11. 1978, p. 16 OJ No L 145 of 13. 06. 1979, p. 16 OJ No L 146 of 13. 06. 1979, p. 20 OJ No L 194 ef 29. 07. 1990, p. 1 OJ No L 188 of 08. 07. 1996, p. 19 OJ No L 240 of 26. 08. 1988, p. 1 OJNoL 67 of 10. 03. 1989, p 1 OJ No L 122 of 09. 06. 1976, p. 1 2. When Member States adopt these measures, they must contain a reference to this Directive, or be accompanied by such a reference when they arc officially published. The form of (he reference shall be decided by the Member Stales. Article 3 This Directive will enter into force on the twentieth day following its publication in the Official Journal of the European Community. This Directive is addressed to the Member States. Article 4 Done at Brussels, For the European Parliament The President For the Council The President IMPACT STATEMENT ON COMPETITIVENESS AND JOBS Proposal for a Parliament and Council directive amending framework directive 74/150/EEC relating to agricultural or forestry tractors and, accordingly, certain individual directives. I. What is the main justification of the measure? - Harmonisation of national laws, - Improvement of road and passenger safety, - Achievement of the internal market. II. Characteristics of the companies involved, more particularly: do they include a large number of small- and medium-sized businesses? No. - eligible for Member State regional aid? No. - eligible under the European Regional Development Fund? No. III. What obligations are imposed on those companies ? None. IV. What obligations are likely to be imposed indirectly upon those companies via the local authorities? None. V. Do any special measures apply to small- and medium-sized businesses ? No. VI. What is the foreseeable outcome: on company productivity? No negative effect on jobs? No negative effect. VII. Have both sides of industry been consulted? Yes. ISSN 0254-1475 COM(96) 196 final DOCUMENTS EN 03 07 Catalogue number : CB-CO-96-205-EN-C ISBN 92-78-03538-6 Office for Official Publications of the European Ctmmunities L-2985 Luxembourg

Proposal for a COUNCIL REGULATION (EC) fixing the basic and buying-in prices for cauliflowers, peaches, apricots, nectarines, lemons and tomatoes for June 1996

http://publications.europa.eu/resource/cellar/76fd788b-0431-4702-bcdc-3086cbdefb18

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 24. 05. 1996 COM(96) 246 final Proposal for a COUNCIL REGULATION (EC) fixing the basic and buying-in prices for cauliflowers, peaches, apricots, nectarines, lemons and tomatoes for June 1996 (presented by the Commission) EXPLANATORY MEMORANDUM Subject: Draft Council Regulation fixing the basic and buying-in prices for cauliflowers, peaches, nectarines, apricots, lemons and tomatoes for June 1996 Under Article 16(1) of Council Regulation (EEC) No 1035/72, a basic price and a buying-in price must be fixed for each of the products listed in Annex II to that Regulation for each marketing year. Only slack marketing periods at the beginning and at the end of the marketing year are to be disregarded. The Council has not yet, however, decided on the basic and buying-in prices for the products in question for the 1996/97 marketing year and interim protective measures were adopted by the Commission by means of Regulation (EC) No. /96 to fix the prices for cauliflowers for the period 1 to 31 May 1996. In order to ensure continuity of prices and the possibility of intervention measures, pending a decision for the 1996/97 marketing year, the basic price and buying-in prices for cauliflowers, peaches, nectarines, apricots, lemons and tomatoes should be fixed for the period 1 to 30 June 1996. The financial consequences were taken into consideration in January in Volume II of the 1996/97 price package. 1 Proposal for a COUNCIL REGULATION (EC) f i x i ng t he b a s ic and b u y i n g - in p r i c es f or c a u l i f l o w e r s, p e a c h e s, a p r i c o t s, n e c t a r i n e s, lemons and tomatoes f or June 1996 THE COUNCIL OF THE EUROPEAN UNION, apricots and grams net, shall be as follows : tomatoes, expressed in ecus per 100 kilo Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 1035/72 the of 18 May 1972 on market in particular in Article 16 (1) thereof, the c o m m on organization of fruit and vegetables ('), and Having regard to the proposal from the Commission, •V a given crop year Whereas, in accordance with Article 16 (1) of Regulation (EEC) No 1035/72, a basic price and a buying-in price must be fixed for each product in Annex II to that Regu the products lation for each marketing year ; whereas harvested during are marketed from January to December of each year in the case of tomatoes, from May to August of each year in the case of apricots, from May to October of each year in the case oi peaches and nectarines, the following year in the case of cauliflowers and from J u ne the case of lemons ; to May of whereas, however, pursuant to the third subparagraph of Article 16 (1) of Regulation (EEC) No 1035/72, no basic or buying-in price need be fixed for the slack marketing periods at the beginning and end of the marketing year ; the following year in to April of from May Whereas, in order to ensure the continuity of prices for cauliflowers and the possibility of intervention as regards apricots, peaches and nectarines from 1 J u ne 199© and the basic and buying-in tomatoes from 11 J u ne 199ft prices for the products must be fixed for the period 1 to 30 J u ne 199^ pending a decision regarding the \99$/9f' marketing year, HAS ADOPTED THIS REGULATION : Article 1 For the period 1 to 30 J u ne 1995, the basic and buying-in lemons, prices cauliflowers, peaches, nectarines, for Cauliflowers Peaches Nectarines Lemons Apricots Tomatoes : (11 to 20 June) (21 to 30 June) Buying-in price 30,02 33,81 25,78 2809 12^0 11,98 These prices refer respectively to : — packed trimmed cauliflowers of quality class -I, — packed peaches of the Amsden, Cardinal, Charles Ingouf, Dixired, Jeronimo, J. H. Hale, Merril Gemfree, Michelini, Red Haven, San Lorenzo, Springcrest and Springtime varieties of quality class I, size 61-67 m m, — packed nectarines of the Armking, Crimsongold, Early Sun Grand, Fantasia, Independence, May Grand, Nectared, Snow Queen and Stark Red Gold varieties of quality class I, size 61-67 m m, — packed lemons of quality class I, size 53-62 m m, — packed apricots of quality class I of a size over 30 m m, — packed 'round' and 'ribbed' tomatoes of quality class I, size 57-67 m m. Those prices do not include the cost of the packaging in which the product is presented. Article 2 (') OJ No L 118, 20. 5. 1972, p. 1. Regulation as last amended by the 1994 Act of Accession and by Regulation (EQ No 3290/94 (OJ No L 349, 31. 12. 1994, p. 105). This Regulation shall enter into force on 1 J u ne 199/ 3 ^ R e g u l a t i on shall be binding i„ its entirety and directly applicable in all Member Done at Brussels, i For the Council The President H- ISSN 0254-1475 COM(96) 246 final 03 nmnfeer : O&C0-96-254^e$C BBî$92-7§*Q*596-9 Office for Official Publications of the European Communities L-2985 Luxembourg s

OPINION OF THE COMMISSION pursuant to Article 189 b (2) (d) of the EC Treaty, on the European Parliament' s amendments to the Council' s common position regarding the proposal for a EUROPEAN PARLIAMENT AND COUNCIL REGULATION (EC) on novel foods and novel food ingredients

http://publications.europa.eu/resource/cellar/0401bd5e-43ba-41af-845a-1fc842ddc251

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 23. 05. 1996 COM(96) 229 final - COD 426 OPINION OF THE COMMISSION pursuant to Article 189 b (2) (d) of the EC Treaty, on the European Parliament's amendments to the Council's common position regarding the proposal for a EUROPEAN PARLIAMENT AND COUNCIL REGULATION (EC) on novel foods and novel food ingredients AMENDING THE PROPOSAL OF THE COMMISSION pursuant to Article 189 a (2) of the EC Treaty Introduction On 7 July 1992 the Commission presented a proposal for a Council Regulation on novel foods and novel food ingredients. (COM(92)295 final - SYN 426). Further to the opinion of the European Parliament delivered on 27 October 1993, the Commission prepared an amended proposal which was submitted to the Council on 1 December 1993 (COM(93) 631 final - COD 426. On 23 October 1995 the Council adopted a common position by qualified majority. On 12 March 1996, the European Parliament adopted 6 amendments to the common position adopted by the Council on 23 October 1995 in respect of the Commission proposal for a Regulation of the European Parliament and of the Council on novel foods and novel food ingredients. 1 Objectives of the Regulation At present, within the European Union, foodstuffs can generally be placed on the market without any pre-marketing assessment or authorisation. Recently, a new range of raw materials, processes and technologies, including but not only modern biotechnology and genetic modification techniques have emerged. These innovations aim for example at improving the nutritional and dietary aspects of foodstuffs, at promoting greater technical efficiency in production processing or distribution, at reducing the risk of microbiological contamination or at growing crops by using fewer pesticides. In order to ensure consumer protection and to avoid the creation of trade barriers in the internal market, it was felt necessary to create a Community procedure for the placing on the market of "novel foods" resulting from these innovations and to provide for a safety assessment and for precise labelling provisions. The proposal is therefore of major importance, from the point of view of consumer protection and information as well as for smooth functioning of the internal market and the diffusion of new technologies in the agri-food sector. The Commission believes that there is general agreement between the institutions about the urgent need for Community legislation on this issue. O J n °C 190, 29. 7. 1992, p. 3 I Opinion of the Commission In accordance with paragraph 2 (d) of Article 189b of the EC Treaty, the Commission gives the following opinion on these amendments. The Commission agrees with Parliament that the Regulation should be brought into force as soon as possible, and it can therefore give a favourable opinion on amendment 48 which reduces the period for implementation of the Regulation from 12 months to 90 days; The Commission understands the concern expressed by the Parliament in amendment 53 to ensure that food additives, flavours and extraction solvents meet the same level of safety as novel foods, and shares this principle. However, it cannot give a favourable opinion on the wording of amendment 53 since it implies that the exclusion is conditional, requiring specific action to be taken. The Commission would point out that the framework Directive on food additives (89/107/EEC)2 and the Common Position agreed by the Council on 22 December 1995 on a proposal for a regulation of the laying down a Community procedure for European Parliament and the Council flavouring substances intended for use in foodstuffs3 already provide for the same level of safety as for novel foods, including compulsory consultation of the scientific Committee for Food on matters likely to affect public health. In respect of extraction solvents, Directive 83/344/EEC4 already provides for a similarly high level of protection of public health. Amendment 54 provides that the labelling rules of Article 8 apply to novel foods and novel food ingredients which are the subject of the simplified notification procedure. In isolation, this amendment presents no difficulty, since it simply clarifies the intention of the Common Position which is to apply a single coherent set of labelling rules to all categories of novel foods. However, this amendment must also be seen in conjunction with amendment 55 which deletes the word "significant" in Article 8 (1) (a) of the Common Position so that labelling of novel foods will be required in all cases where a novel food is different from the conventionally produced food. It should be recalled that labelling of significant differences is the mirror-image of the application of the internationally recognised scientific principle of "substantial equivalence" on which the Regulation is based. Under the common position, an operator would therefore know that if he can provide evidence that the food or food ingredient is clearly substantially equivalent, then the notification procedure could be used and the product would not 2 3 '1 O J n °L 40, 11. 2. 1989, p. 27 OJ n< C 59, 28. 2. Î 996, p. 37 (). l. n°l. 157,24. 6. 1988, p. 28 5 require any specific labelling. With the new formulation of Amendment 55, the operator cannot be certain that his substantially equivalent product does not present negligible differences. Therefore, the notification procedure may become unusable in practice. The Commission understands the concern of Parliament to ensure that consumers are informed of all differences between novel foods and conventionally produced foods. Nevertheless, the application of a criterion that would lead to special labelling requirements even for novel foods which are substantially equivalent is likely to give rise to practical difficulties. Particularly in the case of fruit and vegetables, climatic and geographical factors such as soil types may have noticeable effects on the properties of the final product. For example, climatic variations from year to year result in differences in the final crop. In such circumstances it may be difficult to decide what are the precise parameters to be used in determining whether a novel food differs from its conventional counterpart. In order to provide meaningful information for the consumer, the Commission considers that a product should only be labelled when it presents characteristics which fall outside of the range of natural variations and which may affect the composition, the nutritional value or effects or the intended use of the products. The Commission is therefore unable to accept these 2 amendments and considers that all possibilities should be explored in order to outline the concept of difference so that it provides more legal certainty for economic operators. The current text of the common position provides that the presence of a genetically modified organism does not need to be indicated on the labelling when this presence is solely due to agricultural characteristics and does not modify the characteristics of the foodstuff itself. This exemption would cover, for example, corn which is genetically modified to increase insect resistance. Amendments 51 and 52 have the effect of deleting this exemption. The Commission does not share the point of view of Parliament that the presence of genetically modified organisms should be indicated on the labelling of the foodstuff concerned in all cases, even when this presence has no effect on the properties of the foodstuff. The purpose of food labelling is to inform consumers about the characteristics of the food. Information about methods of production and agronomic properties is required only where these have an effect on the finished product. Moreover, the introduction of such a provision would make it necessary either to establish separate distribution systems for foods containing GMOs -which would be extremely difficult to implement from practical point of view- or to provide for systematic labelling in all cases that the produce may contain GMOs. Particular problems arise in respect of imports, since none of the Community's major trading partners provide for labelling in such cases, and GMO produce will usually be mixed with conventional produce before shipment to the EU. K In addition, amendment 51 requires the labelling of "an organism genetically modified by genetic engineering methods". The Commission considers that this formulation, implies legal uncertainty, because the concept used is not sufficiently precise and does not correspond to an already existing definition. A clear defimtion for GMO's is provided by Directive 90/220/EC and this is why it is proposed to use it also for labelling of novel foods. On the basis of this analysis, the Commission has incorporated one amendment (n° 48) in its modified proposal. The Commission would, however, emphasise that there is general agreement on the urgent need to establish a satisfactory regulatory framework for novel foods at Community level. To this end the Commission will participate constructively with the institutions in the remaining stages of the institutional decision-making procedure using all available possibilities with a view to resolving the outstanding problems identified above. Amended Proposal for a Regulation of the European Parliament and of the Council on novel foods and novel food ingredients (presented by the Commission pursuant to Article 189 A (2) of the EC Treaty) Current Proposal Amended proposal Article 15,1st paragraph This regulation shall enter into force 12 months following the day of its publication in the Official Journal of the European Communities. This regulation shall enter into force 90 days following its publ'cation in the Official Journal of the European Communities. ISSN 0254-147. S COM(96) 229 final DOCUMENTS EN 10 15 Catalogue number : CB-CO-96-240-EN-C ISBN 92-78-04462-8 Qffke for Official Publications of the European Communities L-2985 Luxembourg ^

Re-examined proposal for a COUNCIL REGULATION (EC) ON HUMANITARIAN AID

http://publications.europa.eu/resource/cellar/d369b75a-b9d4-4f11-8426-40425691db39

eng

r ^ r ^ n i rw HF T HE ^ 1 5 R 0 P » ". AM z^"t\ÏSÏTYÏ i i Brussels, 23. 05. î996 COM(96) 739 fmai 95/0119 (SYN) Re-examined proposal fov a COUNCH. REGULATION (EC) ON HUMANITARIAN AID (presented by the Commission pursuant to Article 189 c (d) of the EC Treaty) EXPLANATORY MEMORANDUM On 31 May 1995 the Commission presented to the Council and Parliament a proposal for a Regulation concerning humanitarian aid aimed at defining the scope of humanitarian action, the arrangements for coordination and the terms of cooperation between the Community, the Member States, international agencies and non-governmental organizations. 1 Based on Article 130w of the Treaty, the proposed Council Regulation concerning humanitarian aid is subject to the cooperation procedure laid down in Article 189c of the Treaty. In accordance with the cooperation procedure, Parliament delivered its opinion on a first reading on 30 November 1995, tabling 23 amendments in all. 2 Under Article 189a(2) of the Treaty, the Commission presented an amended proposal incorporating those amendments that it accepted. 3 On 29 January the Council adopted a common position,4 which the Commission endorsed. 5 Parliament acknowledged receipt of the common position on 16 February. On 21 May, Parliament delivered its opinion on a second reading, adopting two amendments. They concern: (1) the exemption of the operations under the Regulation from taxes, charges and customs duties, and (3) the holding of an annual meeting at which the Commission and its NGO partners would study common strategies. 6 The Commission, in accordance with Article 189c(d) of the Treaty, is now presenting a revised proposal incorporating the amendments accepted. COM (95) 201 final, OJ No C 180, 14. 7. 1995. PE213. 938/fin. COM (95) 721 final, OJ No C 58, 28. 2. 1996. Document 12768/3/95, 29. 1. 1996. SEC(96) 203 final, 7. 2. 1996. PE 217. 665/lln. â The Commission has accepted amendment No 1, adding a new paragraph to Article 5 of the common position. This is a provision found in other development regulations; the difficulties often encountered by relief agencies trying to get aid to its destination make it particularly appropriate in this case. The Commission has not included amendment 3. As for amendment No 3 adding a new paragraph to Article 19 of the common position (see Annex 1 ), the Commission is all in favour of greater cooperation with humanitarian agencies, but does not think it wise to make such an annual meeting obligatory under the Regulation. Re-examined proposal for a COUNCIL RFGULATION (Fr) ON HUMANITARIAN AID Article 5 reads as follows: 5. 1 Community financing under this Regulation shall take the form of grants. 5. 2 ITie operations referred to in this Regulation shall be exempt from tax, levies and customs duty. </ ISSN 0254-1475 COM(96) 239 final DOCUMENTS EN 11 Catalogue number : CB-CO-96-249-EN-C ISBN 92-78-04541-1 Office for Official Publications of the European Communities L-2985 Luxembourg 5"

Amended proposal for a COUNCIL REGULATION (EC) on operations to aid uprooted people (refugees, displaced persons and returnees) in Asian and Latin American developing countries

http://publications.europa.eu/resource/cellar/9f9be6d9-28f2-4721-a4c8-de1b0fd9a0c8

eng

^^ *" "* & it *** I COMMISSION OF THE EUROPEAN COMMUNITIES J j i Brussels,23. 05. 1996 COM(%) 234 final 95/ 0162 (SYN) Amended proposal ibr a COUNCIL KEQULATION (EC) on operations to aid uprooted people (refugees, displaced persons and returnees) in Asian and Latin American developing countries (presented by the Commission pursuant to Article 189 a (2) of the EC-Treaty) EXPLANATORY MEMORANDUM The amended proposal for which the Commission's approval is sought for transmission to the Council and Parliament is based on the original proposal approved by the Commission on 26 June 1996 (COM (95) 297 final - 95/0162 (SYN)) and the amendments approved by Parliament at its February session that the Commission was able to accept. Of the amendments approved by Parliament, the Commission can agree to Amendments 1, 2, 3, 5, 6, 8, 9, 10, 11, 17, 21 (paragraph 1 and the first indent of paragraph 2) and 22 which, it believes, usefully flesh out the proposals and explain the underlying principles. It can also agree to Amendment 4, even though it refers to conflict prevention and the Regulation is designed to deal with the consequences of conflict, and Amendment 7, even though the Regulation applies to situations where the population movement has already taken place. Amendment 12 has been partially incorporated: the Commission agrees to the addition of the word "support" but cannot incorporate the term "returned displaced persons" since this concept is not well defined as regards either the restriction of operations to developing countries (which would prevent the continuation of aid for uprooted people temporarily residing in developed countries) or the reference to longer-term aid. Amendment 13 has also been taken on board, despite the fact that it seems too "idealistic" and not easy to implement with the material and human resources available to the Commission. Moving to Amendment 14, the Commission can agree to some of the proposed improvements regarding the operations that may be financed but not all. In particular, the Commission fully agrees that repatriation should be voluntary but cannot agree to the proposed wording because the effect would be to block all aid to people who might have been repatriated against their will. The principle of voluntary repatriation has thus been included as a recital. For the same reasons the only part of Amendment 15 that has been incorporated is the new definition of displaced persons. Most of Amendment 16 has been incorporated, apart from the reference to rehabilitation, which has not been included because other instruments cover this type of operation, and the new definition of ex combatants, since it is important to be sure of extending aid to the formers members of the armed opposition. The following amendments have been rejected by the Commission. Amendment 18: The provisions on the means available for the implementation of operations would be too restrictive and ill-suited to the need for speed and flexibility in this type of operation since consulting all the partners on the ground, the parliamentary committee and the NGO i Liaison Committee would strain the Commission's human and material resources to a degree that would incompatible with speed and flexibility. Amendment 19: The suppression of prior examination of Commission projects by the committee made up of Member State representatives is simply not realistic in view of the already stated positions of the Member States. Furthermore, the proposal concerning the award of contracts cannot be accepted since it might lead to preferences being accorded to developed non-member countries. Amendment 20: The reasons are: it drops the reference to the ALA Committee, whereas this Committee is the appropriate one in view of the nature of the operations covered by the proposed Regulation; it would make the Commission hold consultations with the authorities, partner organizations and the beneficiaries in the countries receiving assistance before establishing the general guidelines, a requirement that is too restrictive and likely to produce delays in view of the burden it would place on the Commission's human and material resources; it provides that meetings of the Advisory Committee set up under the Regulation should be public, that full minutes sent to Parliament and that a Member of Parliament should take part in these meetings as an observer. Amendment 21: It requires the Commission to submit a detailed annual report and the Commission does not have the human or material resources to do this. Proposal for a Council Regulation No. of. on operations to aid uprooted people (refugees, displaced persons and returnees) in Asian and Latin American developing countries THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 13 Ow thereof, Having regard to the proposal from the Commission, In cooperation with the European Parliament,1 Having regard to the Convention relating to the Status of Refugees of 28 July 1951 adopted by the United Nations Conference on the Status of Refugees and Stateless Persons, the New York Protocol adopted on 31 January 1967 and other resolutions adopted by the United Nations on policy concerning refugees, Having regard to the 1948 Universal Declaration of Human Rights, the 1966 International Covenant on Economic,Social and Cultural Rights, the 1979 Convention on the Elimination of All Forms of Discrimination against Women and the 1989 Convention on the Rights of the Child, Having regard to the Resolution of the European Parliament on assistance to refugees in developing countries adopted on 16 December 19832 and later resolutions, Whereas the Council and Parliament have called for greater efforts on the part of the Community in this respect; Whereas the effectiveness of aid for refugees, displaced persons and returnees is dependent on the coordination of aid at European level and with other aid donors, non-governmental organizations and United Nations agencies; Whereas there is a need to increase efforts aimed at preventing conflict and promoting peaceful solutions to political conflicts or wars that cause population displacements; Whereas there is growing international recognition of the de facto refugee status arising in both generalized and individual situations as defined by the 1984 Cartagena Declaration and in recommendations of the Council of Europe and Parliament; Whereas the status of refugee may arise as a result of persecution of particular social groups and the principle of non-discrimination must be promoted; 1 2 Opinion of. , OJ No. ; Decision of. , OJ No OJ No C 10/279. H Whereas the principle of "non-refoulement" and of true judicial settlement of cases of human rights violations must be enforced; Whereas there must be compliance with the principle by which no refugee or displaced person must ever be forced to return to his country or region of origin and any repatriation or return must correspond to the wishes of the persons concerned; Whereas the specialized bodies and agencies and non-governmental organizations implementing such operations have gained considerable experience in providing assistance to uprooted people; Whereas the Community wishes aid for uprooted people to be provided in such a way as to help them move from subsistence to self-sufficiency; Whereas this type of aid is a prerequisite for development and thus makes a major the Union's cooperation policy objectives under contribution Article 130u of the Treaty; towards achieving Whereas the provision of aid by the European Union does not dispense host governments and donors from the upholding of refugees' human rights in accordance with international conventions; Whereas administrative rules and procedures applicable to cooperation operations to help uprooted people (refugees, displaced persons and returnees) must be laid down, HAS ADOPTED THIS REGULATION: Article 1 The Community shall implement a programme of support and assistance to uprooted people (refugees, displaced persons, returnees and demobilized soldiers) in Asian and Latin American countries to help them in the interim phase between humanitarian aid given in response to a crisis and the provision of rehabilitation or development aid when the situation so allows. Article la The establishment of democratic structures and the promotion of human rights shall be an integral part of aid programmes for uprooted people in Asian and Latin American developing countries. All the groups concerned and the local host communities shall participate fully in the evaluation of needs and the implementation of aid programmes. Aid and funds shall be accorded to vulnerable groups, including women, children, indigenous communities, the disabled and the elderly. The Community shall support, inter alia, the following operations: Article 2 aid for the subsistence, upkeep and settlement of refugees in the host country; 1. 2. aid and support for the local population in the host area to mitigate the impact of the presence of uprooted people; 3. aid for repatriation; 4. aid for the resettlement of refugees and displaced persons in their places of origin or in another place of their choice, including the possibility of settlement in a third country; 5. aid for the temporary or permanent settlement of displaced persons in other regions within their own country; 6. aid for the economic integration in the host country of refugees who cannot or do not wish to return to their country of origin; 7. aid for socio-economic development and social reintegration, including support for conciliation/mediation in the place of return; 8. aid pending the start-up of rehabilitation or development programmes, comprising: attainment of self-sufficiency in food, the provision of shelter, sanitary installations, drinking water and basic health care, including reproductive health, psychological aid, education and basic infrastructure; 9. aid for the demobilization and reintegration of ex-combatants into civilian life; 10. mine-clearance operations where necessary to allow people to move about in safety and settle, resettle or integrate into the social and economic life of the host country or region or country or region to which they return, plus operations to inform people about mines and the safety measures to take; 10a the provision of legal advice and aid to displaced persons wishing to assert their property rights; 10b the repair of damage to the environment caused by major population movements; 10c specific programmes for displaced women aimed at halting sexual violence, supporting teams of women working on the ground and setting up services exclusively for women to aid victims of rape, treat sexually transmitted diseases and run mother-and-child health programmes; lOd aid to keep families together, including programmes to find family members and unify families; 10e aid for the judicial settlement of cases of human rights violations affecting uprooted people. Article 3 1. The beneficiaries shall be uprooted people originating from, or provisionally established in, any of the developing countries of Asia and Latin America. (a) refugees are defined in the Convention relating to the Status of Refugees, which was adopted on 28 July 1951 by the United Nations Conference on the Status of Refugees and Stateless persons, as " any person who, owing to a well-founded fear of being persecuted for reasons of race, religion, nationality, membership of a particular social group or political opinion, is outside the country of his nationality and is unable or, owing to such fear, is unwilling to avail himself of the protection of that country"; (b) "displaced persons" are persons or groups who have fled their place of origin but have remained within the borders of their country for reasons similar to those set out C in the 1951 Convention and who are in need of protection but do not enjoy the status of refugee as defined by that Convention; (c) "returnees" are persons or groups who, having fled their place of origin, then decide of their own free will or because of the situation, to return to their country or region of origin. 2. Aid shall also be available for: (a) the local population of the host country, whose social, economic and administrative resources are drawn on for the reception and assistance of refugees and displaced persons, for the purpose of enabling them to carry out longer term projects designed to bring about the self-sufficiency and integration or reintegration of these persons; (b) demobilized former soldiers of regular armies and members of armed opposition movements, plus their families and grassroots support. (b)a persons in need of international protection because of serious threats to their life, liberty or security arising from persecution, armed conflict or serious disruption of public order. Article 4 Partners in the implementation of specialized and technical assistance may be non-governmental organizations, local organizations, United Nations agencies, international aid organizations, national, regional and local authorities, and other suitable organizations. Article 5 1. The means deployed in implementing operations referred to in Article 2 shall include studies, technical assistance, training and other services, supplies, works, and audits and evaluation and monitoring missions. 2. Community financing may also cover investment expenditure, excluding the purchase of real estate, and running costs, whether in foreign exchange or local currency, in accordance with the requirements of implementing the operation. 3. Systematic efforts shall be deployed to raise a contribution, especially in financial form, from participants or partners who will enjoy the benefits of the operation (countries, local communities, businesses, etc. ) within the limits of what is possible and depending on the nature of the operation. 4. Co-financing shall also be sought, in particular from the Member States and multilateral, regional or other organizations. The necessary measures shall be taken to show that the aid supplied under this Regulation comes from the Community. 5. The Commission shall, in order to ensure the consistency and complementarity of operations financed by the Community and by Member States with a view to maximizing their effectiveness, take all necessary coordination measures, including: (a) the setting-up of an electronic information exchange system on the operations which are or may be financed by the Community and the Member States; (b) on-the-spot coordination of operations through regular meetings and exchanges of information between Commission and Member State representatives in the recipient country. Financial aid under this Regulation shall take the form of grants. Article 6 Article 7 1. The Commission shall be responsible for appraising, approving and managing the operations covered by this Regulation in accordance with the budgetary and other procedures in force, in particular those laid down in the Financial Regulation applicable to the general budget of the European Communities. 2. Decisions relating to grants of more than ECU 5 million for individual operations financed under this Regulation and any changes resulting in an increase of more than 20% in the sum initially approved for such an operation shall be adopted under the procedure laid down in Article 8. 3. All financing agreements or contracts concluded under this Regulation shall provide for the Commission and the Court of Auditors to conduct on-the-spot checks according to the usual procedures laid down by the Commission under the rules in force, in particular those of the Financial Regulation applicable to the general budget of the European Communities. 4. Where the measures or operations are the subject of financing agreements between the Community and the host country, such agreements shall stipulate that the payment of taxes, duties and or other charges is not covered by the Community. 5. Participation in invitations to tender and the award of contracts shall be open on equal terms to all natural and legal persons of the Member States and of the host countries. It may be extended to other developing countries. 6. Supplies shall originate in the Member States, the host country or other developing countries. In exceptional cases, where circumstances warrant, supplies may originate elsewhere. ? Article 8 1. The Commission shall be assisted by an Advisory Committee made up of representatives of the Member States and chaired by the representative of the Commission, namely the ALA Committee set up under Article 15 of Council Regulation No 443/92/EEC adopted on 25 February 1992. 2. The representative of the Commission shall submit to the Committee a draft of the measures to be taken. The Committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter, if necessary by taking a vote. The opinion shall be recorded in the minutes; each Member State shall have the right to ask for its position to be recorded in the minutes. The Commission shall take the utmost account of the opinion delivered by the Committee. It shall inform the Committee of the manner in which its opinion has been taken into account. 3. There shall be an exchange of views once a year on the basis of a report by the Commission representative on the general guidelines for operations in the coming year. Article 9 At the end of each budget year, the Commission shall present a report to Parliament and the Council summarizing the operations financed in the course of that year and evaluating the implementation of this Regulation over that period. The report shall provide detailed information about those with whom contracts have been concluded. The report shall also summarize any independent evaluations of specific operations. Article 10 This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. This Regulation shall be subject to review five years after its entry into force. Done at Brussels, For the Council, The President J ISSN 0254-1475 COM(96) 234 final DOCUMENTS EN 11 Catalogue number : CB-CO-96-246-EN-C ISBN 92-78-04508-X Office for Official Publications of the European Communities L-2985 Luxembourg ^Xo

Amended Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on novel foods and novel food ingredients

http://publications.europa.eu/resource/cellar/57cf4f47-aa52-4958-aee4-d544b2f0e154

eng

COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 23. 05. 1996 COM(96) 229 final - COD 426 OPINION OF THE COMMISSION pursuant to Article 189 b (2) (d) of the EC Treaty, on the European Parliament's amendments to the Council's common position regarding the proposal for a EUROPEAN PARLIAMENT AND COUNCIL REGULATION (EC) on novel foods and novel food ingredients AMENDING THE PROPOSAL OF THE COMMISSION pursuant to Article 189 a (2) of the EC Treaty Introduction On 7 July 1992 the Commission presented a proposal for a Council Regulation on novel foods and novel food ingredients. (COM(92)295 final - SYN 426). Further to the opinion of the European Parliament delivered on 27 October 1993, the Commission prepared an amended proposal which was submitted to the Council on 1 December 1993 (COM(93) 631 final - COD 426. On 23 October 1995 the Council adopted a common position by qualified majority. On 12 March 1996, the European Parliament adopted 6 amendments to the common position adopted by the Council on 23 October 1995 in respect of the Commission proposal for a Regulation of the European Parliament and of the Council on novel foods and novel food ingredients. 1 Objectives of the Regulation At present, within the European Union, foodstuffs can generally be placed on the market without any pre-marketing assessment or authorisation. Recently, a new range of raw materials, processes and technologies, including but not only modern biotechnology and genetic modification techniques have emerged. These innovations aim for example at improving the nutritional and dietary aspects of foodstuffs, at promoting greater technical efficiency in production processing or distribution, at reducing the risk of microbiological contamination or at growing crops by using fewer pesticides. In order to ensure consumer protection and to avoid the creation of trade barriers in the internal market, it was felt necessary to create a Community procedure for the placing on the market of "novel foods" resulting from these innovations and to provide for a safety assessment and for precise labelling provisions. The proposal is therefore of major importance, from the point of view of consumer protection and information as well as for smooth functioning of the internal market and the diffusion of new technologies in the agri-food sector. The Commission believes that there is general agreement between the institutions about the urgent need for Community legislation on this issue. O J n °C 190, 29. 7. 1992, p. 3 I Opinion of the Commission In accordance with paragraph 2 (d) of Article 189b of the EC Treaty, the Commission gives the following opinion on these amendments. The Commission agrees with Parliament that the Regulation should be brought into force as soon as possible, and it can therefore give a favourable opinion on amendment 48 which reduces the period for implementation of the Regulation from 12 months to 90 days; The Commission understands the concern expressed by the Parliament in amendment 53 to ensure that food additives, flavours and extraction solvents meet the same level of safety as novel foods, and shares this principle. However, it cannot give a favourable opinion on the wording of amendment 53 since it implies that the exclusion is conditional, requiring specific action to be taken. The Commission would point out that the framework Directive on food additives (89/107/EEC)2 and the Common Position agreed by the Council on 22 December 1995 on a proposal for a regulation of the laying down a Community procedure for European Parliament and the Council flavouring substances intended for use in foodstuffs3 already provide for the same level of safety as for novel foods, including compulsory consultation of the scientific Committee for Food on matters likely to affect public health. In respect of extraction solvents, Directive 83/344/EEC4 already provides for a similarly high level of protection of public health. Amendment 54 provides that the labelling rules of Article 8 apply to novel foods and novel food ingredients which are the subject of the simplified notification procedure. In isolation, this amendment presents no difficulty, since it simply clarifies the intention of the Common Position which is to apply a single coherent set of labelling rules to all categories of novel foods. However, this amendment must also be seen in conjunction with amendment 55 which deletes the word "significant" in Article 8 (1) (a) of the Common Position so that labelling of novel foods will be required in all cases where a novel food is different from the conventionally produced food. It should be recalled that labelling of significant differences is the mirror-image of the application of the internationally recognised scientific principle of "substantial equivalence" on which the Regulation is based. Under the common position, an operator would therefore know that if he can provide evidence that the food or food ingredient is clearly substantially equivalent, then the notification procedure could be used and the product would not 2 3 '1 O J n °L 40, 11. 2. 1989, p. 27 OJ n< C 59, 28. 2. Î 996, p. 37 (). l. n°l. 157,24. 6. 1988, p. 28 5 require any specific labelling. With the new formulation of Amendment 55, the operator cannot be certain that his substantially equivalent product does not present negligible differences. Therefore, the notification procedure may become unusable in practice. The Commission understands the concern of Parliament to ensure that consumers are informed of all differences between novel foods and conventionally produced foods. Nevertheless, the application of a criterion that would lead to special labelling requirements even for novel foods which are substantially equivalent is likely to give rise to practical difficulties. Particularly in the case of fruit and vegetables, climatic and geographical factors such as soil types may have noticeable effects on the properties of the final product. For example, climatic variations from year to year result in differences in the final crop. In such circumstances it may be difficult to decide what are the precise parameters to be used in determining whether a novel food differs from its conventional counterpart. In order to provide meaningful information for the consumer, the Commission considers that a product should only be labelled when it presents characteristics which fall outside of the range of natural variations and which may affect the composition, the nutritional value or effects or the intended use of the products. The Commission is therefore unable to accept these 2 amendments and considers that all possibilities should be explored in order to outline the concept of difference so that it provides more legal certainty for economic operators. The current text of the common position provides that the presence of a genetically modified organism does not need to be indicated on the labelling when this presence is solely due to agricultural characteristics and does not modify the characteristics of the foodstuff itself. This exemption would cover, for example, corn which is genetically modified to increase insect resistance. Amendments 51 and 52 have the effect of deleting this exemption. The Commission does not share the point of view of Parliament that the presence of genetically modified organisms should be indicated on the labelling of the foodstuff concerned in all cases, even when this presence has no effect on the properties of the foodstuff. The purpose of food labelling is to inform consumers about the characteristics of the food. Information about methods of production and agronomic properties is required only where these have an effect on the finished product. Moreover, the introduction of such a provision would make it necessary either to establish separate distribution systems for foods containing GMOs -which would be extremely difficult to implement from practical point of view- or to provide for systematic labelling in all cases that the produce may contain GMOs. Particular problems arise in respect of imports, since none of the Community's major trading partners provide for labelling in such cases, and GMO produce will usually be mixed with conventional produce before shipment to the EU. K In addition, amendment 51 requires the labelling of "an organism genetically modified by genetic engineering methods". The Commission considers that this formulation, implies legal uncertainty, because the concept used is not sufficiently precise and does not correspond to an already existing definition. A clear defimtion for GMO's is provided by Directive 90/220/EC and this is why it is proposed to use it also for labelling of novel foods. On the basis of this analysis, the Commission has incorporated one amendment (n° 48) in its modified proposal. The Commission would, however, emphasise that there is general agreement on the urgent need to establish a satisfactory regulatory framework for novel foods at Community level. To this end the Commission will participate constructively with the institutions in the remaining stages of the institutional decision-making procedure using all available possibilities with a view to resolving the outstanding problems identified above. Amended Proposal for a Regulation of the European Parliament and of the Council on novel foods and novel food ingredients (presented by the Commission pursuant to Article 189 A (2) of the EC Treaty) Current Proposal Amended proposal Article 15,1st paragraph This regulation shall enter into force 12 months following the day of its publication in the Official Journal of the European Communities. This regulation shall enter into force 90 days following its publ'cation in the Official Journal of the European Communities. ISSN 0254-147. S COM(96) 229 final DOCUMENTS EN 10 15 Catalogue number : CB-CO-96-240-EN-C ISBN 92-78-04462-8 Qffke for Official Publications of the European Communities L-2985 Luxembourg ^

Proposal for a COUNCIL DIRECTIVE amending the list of less-favoured farming areas within the meaning of Directive 75/268/EEC (Ireland)

http://publications.europa.eu/resource/cellar/e3fadad2-2d61-4009-bb79-31d53b3601fd

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 23. 05. 1996 COM(96) 224 final 96/0139 (CNS) Proposal for a COUNCIL DIRECTIVE amending the list of less-favoured farming areas within the meaning of Directive 75/268/EEC (Ireland) (presented by the Commission) EXPLANATORY MEMORANDUM In accordance with Article 2(1) of Council Directive 75/268/EEC the Irish Government has sent the Commission an expanded list of townlands likely to be included on the Community list of less-favoured areas, along with information on the features of each one. The types of area notified to the Commission satisfy the characteristics of the areas referred to in Article 3(4) and (5) of Directive 75/268/EEC, which are: 1. Less-favoured agricultural areas characterized by low soil productivity and low agricultural income (Article 3(4) ); 2. Less-favoured areas with specific handicaps (low number of agricultural parcels, hills, poor ground water balance, coastal islands, etc. ) where agricultural activity must be maintained in order to preserve the countryside (Article 3(5) ). The following criteria on land of low productivity were used to identify each of the areas referred to in Article 3(4): 1. Tilled surface area less than 7. 8%, and 2. Stocking density less than one adult bovine unit per hectare of forage. The concept of economic return from farming appreciably below the average has been defined as: 3. A family farm income per farm worker not exceeding 80% of the national average. Low population density has been defined as: 4. A density not exceeding 27 inhabitants per square kilometre; <> 5. The minimum percentage of the active population employed in agriculture is 30%. As regards the criteria for identifying the areas referred to in Article 3(5), natural conditions unfavourable to production (insularity, excessive ambient salinity, strong winds, low soil potential and poor ground water balance) were chosen, as were the handicaps resulting from the constraints imposed by countryside conservation regulations. These indices when applied increase the UAA in Ireland by 2. 1%. The proportion of less-favoured areas becomes 73% of the country's UAA. Areas with specific handicaps do not exceed 4% of the area of Ireland. The Community contribution to compensatory allowances will be accounted for as part of the overall amount laid down for Objectives 5(a) and 1 of the Structural Funds. 3 Proposal for a COUNCIL DIRECTIVE amending the list of less-favoured farming areas within the meaning of Directive 75/268/EEC (Ireland) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to Council Directive 75/268/EEC of 28 April 1975 on mountain and hill farming and farming certain less-favoured areas1, as last amended by the Act of Accession of Austria, Finland and Sweden, and in particular Article 2(2) thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament,2 Whereas the Government of Ireland has requested, pursuant to Article 2 of Directive 75/268/EEC, that the Community list of less-favoured farming areas be amended in accordance with the Annexes to this Directive; Whereas the new areas for inclusion on the list satisfy the criteria laid down in Directive 85/350/EEC3 for determining the areas within the meaning of Article 3(4) and in Directive 91/466/EEC4 for defining the areas affected by specific handicaps within the meaning of Article 3(5) of Directive 75/268/EEC; Whereas the total surface area of the areas as referred to in Article 3(5) does not exceed 4% of the total surface area of the Member State in question; Whereas the nature and level of the above indices used by the Government of Ireland to define the areas notified to the Commission correspond to the characteristics of the less-favoured areas referred to in Article 3(4) and (5) of Directive 75/268/EEC, HAS ADOPTED THIS DIRECTIVE: Article 1 list of less-favoured farming areas in Ireland contained The in the Annex to Directive 85/350/EEC is supplemented by the lists in Annexes I and II to this Directive. 1 OJNo L 128, 19. 5. 1975, p. l. 2 OJNo 3 OJNo L 187, 19. 7. 1985, p. 1. 4 OJNo L 251, 7. 9. 1991, p. 10. W Article 2 This Directive is addressed to Ireland. Done at Brussels, For the Council The President 5~ / ' r: : "'••• ; -'- '. - :" -' Zonas desfavorecidas tal c o mo se defincn en el apartado 4 del arriculo 3 de la Directîva 75/268/CEE ANEXO J BILAG J. U g u n s t i gt stillcde omrâder, jf. artikel 3, stk. 4, i dirckriv 7 5 / 2 6 8 / E 0F A WHANG J B e n a c h t e i l i g tc Gebiete im Sinne von Artikel 3 Absatz 4 d er Richtlinie 75/268/EWG MeiovEKTiKèç nepioxiç KOT6 TTIV évvoia TOU cpdpou 3 zapaypayoq 4 TTIÇ oSi\yla. <; 75/268/EOK fJAPAPTHMA J ANNEX I Less-favoured a r e as within the meaning of Article 3 (4) of Directive 75/268/EEC ANNEX F J Z o n es défavorisées au tirre ce l'article 3 paragraphe -; de la directive 75/268/CEE ALLEGATO 1 Z o ne s v a n t a g g i a te ai sensi dell'articolo 5, paragrafo 4 délia directiva 75/268/CEE BJJLAGE 1 P r o b l e e m g e b î e d en in de zin van artikel 3, lid -. van Richtlijn 75/268/EEG ANEXO I Z o n as desfavorecidas na acepçâo do n? 4 do artigo 3? da Directiva 75/268/CEE Direkriivin 7 5 / 2 6 8 / Eï Y 3 artiklan A kohdan mukaisc-sti epâsuotuisiksi mààritettyjà alueita LIJTF. 1 El LA G A J M i n d re g y n n a de o m r à d en i cnliphei med a n i k tl 3. 4 i dirckriv 75/268/EEG 6 tïh '. "•:,•• COUNTY CARLOW - DISTRICT ELECTORAL DIVISION TOWNLAND(S) CLONEGALL Monaughrim CRANEMORE OLD LEIGHLIN Bunnagurragh Glebe Moanduff O ld L e i g h l in V COUNTY CORK DISTRICT ELECTORAL DIVISION TOWNLAND(S) ARDAGH Ballydaheen Youghal Park BALLYHOOLAHAN Derrishal BALLYMONEY Derrigra Derrigra West BENGOUR Farranmareen BOHERBOY CANNAWAY Gneeves Keel Kilnahulla Beg Kilnahulla More Laharan East Laharan West Bawnatemple Classes Coolnacarriga Coolnasoon Killinardrish Mahellagh Monallig CASTLECOR Knockballymartin CASTLETOWN Cappeen East Paddock : • * • • # ' • •! COUNTY CORK (continued) DISTRICT ELECTORAL DIVISION CHURCHTOWN CLONMOYLE COOLCLOGH CULLEN TOWNLAND(S) Annagh Bogs Armagh North Annagh South Ballygrace Ballynamuck Burton Park Carrigeen Churchtown Clashellane Coolmore Cregganuacourty Currymount Dunbarry Gurteenroe Gurteenroe Commons Impgane Knockroundaly Leap Moanroe Mountbridget Mountcorbitt Templeconnell Tullig Coolineagh Gortacroghig Garranbaun Killinane Knockaneroe Knockardrahan Ahane Beg Ahane Upper Euglaune DROMORE Glashaboy East GLENVILLE Coom East Coom West Doonpeter Glenville Knockaunalour Knocknacheragh Lyravarrig Mullenaboree <?> COUNTY CORK (continued) DISTRICT ELECTORAL DIVISION TOWNLAND(S) GOWLANE Commeenaplaw Gowlane North Meenahony Rathcoola West GREENVILLE Teereven KILDINAN Coolea Shanavagha KILLEAGH Coom KINNEIGH LISCARROLL Cloonareague Dromidiclogh Dromidiclogh West Altamira Knockardbane Lackeen MACLONEIGH Tooms East MANCH MILFORD MILLTOWN Balteenbrack Behagh Knockaghaduff Manch East Manch Middle Acres Teeracurra Glengarriff Killaree MITCHELSTOWN Cloonlough MONANIMY Ballyduff Ballynageehy Carrigacunna Curraghawaddra Toormore ^ Uo COUNTY CORK (continued) DISTRICT ELECTORAL DIVISION TOWNLAND(S) NAD Nadanuller More NEWMARKET RAHAN SKAGH Copsefield Duarrigle Island Longacre Newmarket Park Rossaeon Scarteen Lower Scarteen Upper Lavally Lower Lavally Upper Rah an Coolcloher South Drominagh North STREAMHILL Castlepook South TEERELTON Teerelton TINCOORA Glen South TULLYLEASE Castlelisheen Cloonsillagh Cooles Sheskin -M COUNTY DUBLIN DISTRICT ELECTORAL DIVISION TOWNLAND(S) RATHCOOLE Badgerhill Calliaghstown Lower Farmersvale Newtown Upper -ASL COUNTY KILDARE DISTRICT ELECTORAL DIVISION BALLYNADRUMNY CARBURY CARRIGEEN TOWNLAND(S) Ballynadrumny Ballynakill Ballyonan Clonuff Garrister Moyvalley Royaloak Ardkill Ballygibbon West Calfstown Carbury Coolavacoose Demesne Derrinturn Haggard Kishawanny Upper Knockcor Tanderagee Ballinacarrick Lower Ballinacarrick Upper Carrigeen Hill Collin Commonstown Coolrake Davidstown Davidstown Demesne Hughstown Newtown Sheriffhill Simonstown East KILMEAGE NORTH Derrymullen KILRAINY Ballinderry Ballinbig Ballycowan Balrinnet Claremount Clonard New Cornamucklagh Derryart Fearavolla Kilglass Killinagh Kilrainy Kilrathmurray Nurney Williamstown ^13 COUNTY KILDARE (continued). DISTRICT ELECTORAL DIVISION LULLYMORE WINDMILL CROSS TOWNLAND(S) Barnaran Derrybrennan Lullybeg Lullymore East Lullymore West Ballyshannon Dreenan Rathmore ACj COUNTY KILKENNY DISTRICT ELECTORAL DIVISION TOWNLAND(S) AGHAVILLER Carrickmerlin CALLAN RURAL Ballyclovan Meadows CASTLECOMER Ballyhimmin Clashduff Upper CLOMANTAGH Clomantagh Upper Clomantagh/Mount Garret DUNKITT Charletown KILFANE Castlegarden KILLAMERY Baunreagh KILMAGANNY Rossenarra KILMAKEVOGE Parkstown Lower MUCKALEE Julianstown MUCKALEE Milltown SCOTSBOROUGH C app ah ay de n Gortnacurragh Lakyle THE ROWER Carranroe Upper TULLAHERIN Kilmanaheen TULLAHOUGHT Bregaun ULLID Ballydaw ,A< COUNTY LAOIS DISTRICT ELECTORAL DIVISION ABBEYLEIX TOWNLAND(S) Ballymullen Clonkeen Curraghacronacon Granafallow Knapton Knocknamoe Poormansbridge Tullyroe -BALLYBROPHY Gortnalee BLANDSFORT Ballypickas Lower Derryfore BORRIS CASTLETOWN CLASH CLONDARRIG Ballytegan Cappagh North Clonreher Clonsoghey Cooltoran Gorteen Knocknagroagh Kyleclon Robert Kyletalesha Rathnamanagh Rossleaghan Ballytarsna Cashel Clashnamuck Knockbrack Cappanacloghy Killeany Springmount Clondarrig Coolnamona Pallas Big Pallas Little Ross X£ COUNTY LAOIS (continued). DISTRICT ELECTORAL DIVISION CLONKEEN CLONMORE DONAGHMORE TOWNLAND(S) Ardlea Ballynamuddagh Clonadacasey Clonaddadoran Clondaughas Clonkeen Fatharnagh Oldtown Rosskelton Ballymullen (Stubber) Ballynakill Brockry Castlefleming (Giles) Castlefleming (Manly) Castlefleming (Stub) Castlefleming (Heath) Clonmore Garrison Garryduff Kilmilan Monamonra Rossmore Ballycoolid Ballyhegadon Glebe Barney and Bealady Beckfield South Castletown Coolfin Donaghmore Dunacleggan Raheen Lower Raheen Upper Raheenphelan Glebe DONORE Clonrud DURROW Clonageera Gurraun Tinwear Aif- COUNTY LAOIS (continued). DISTRICT ELECTORAL DIVISION TOWNLAND(S) ERRILL Ballagharahin Clonmeenwood Errill Knockahaw Knockardagannon North Knockardagannon South Lisduff Li s m u r r a g ha K I L C O KE B e c k f i e ld LUGGACURRAN Guileen MONEENALASSA Ballyglass Ballymullen Ballyquaid Glebe Corporation Land Corporation Land Garranmaconly Newtown or Skirk Raheensheara Rathnaleugh MONEYMORE Keeloge South Springhill O'MORES FOREST Clonagh O'Mores Forest RAHEEN Barnadarrig Bawnaree Clonawoolan Clonbane Cloncough Clondouglas Cloosecullen Coole Derrykearn Derryroe Doon Mountfead Raheen Tarbert Tinnakill ^JS COUNTY LAOIS (continued). DISTRICT ELECTORAL DIVISION TOWNLAND(S) RATHASPIC Gracefield RATHSARAN TRUMRA Barrahill Borraghaun Castlegrogan Coolowley (Mason) Coolowley Plott Eglish Grogan Kyleamullaun Oldtown Rathsaran Glebe Cloncourse Derrybeg Gorteen Trumra ^ COUNTY LIMERICK DISTRICT ELECTORAL DIVISION TOWNLAND(S) ADARE NORTH Clorhane ARDAGH ASKEATON WEST Ardagh Ardvone Ashgrove Cooleronoge Doocatten Dromrahnee Gortnaglogh Ballyclough Ballycullen Baunreagh BROADFORD Barnagarrane CAHERCONLISH EAST Curraghnaboul Pallasbeg CAHERCORNEY Ballinscoola Gortnaskagh Herbertstown (Powell) Kilcullane Moohane COLMANSWELL Fort East Fort Middle Killacolla DUNTRY LEAGUE Ballylooby Ballynamona Corbally Ko COUNTY LIMERICK (continued). DISTRICT ELECTORAL DIVISION GREAN HOSPITAL KILDIMO KILFINNANE KILTEELY KNOCKAINY NEWCASTLE RURAL TOWNLAND(S) Ballynagally Ballytrasna Cloghaderreen Glen Gortnacoolagh Gortnanuv Knockgrean Knocknacrohy Lackanascarry Pallashill Scart Ballinscoola Ballynamona Millfarm Portboy Kildimo Kilmoreen Monanooag Ballygeagoge Ballyriggan Garrynlease Kilfinnane Thomastown Ballyvouden Carricklittle Ballyhaukish Gortacloona Gorteennacreeagh Kilballyowen Knockainy East Knockainy West Ragamus Ballingowan Ballylahiff Churchtown Cullenagh Dooally Dromin (Beesom) Dromin Dungeeha Gortroe Shangarry S(A COUNTY LIMERICK (continued). DISTRICT ELECTORAL DIVISION TOWNLAND(S) TEMPLEBREDON Ballyneety Ballyneety South SIX COUNTY LOUTH DISTRICT ELECTORAL DIVISION TOWNLAND(S) CASTLERING Chanonrock CLONKEEN Annagh Calga Churchtown Crowmartin Clack Greatwood Knockaboys Lagan Mullabane Stormanstown MULLARY ST. PETER'S Drumshallon Hamlinstown Kearneystown Cotierstown Tullyesker TALLANSTOWN Nicholastown £3 COUNTY MEATH DISTRICT ELECTORAL DIVISION ARDNAMULLEN BALLYBOGGAN TOWNLAND(S) Aghagillagh Bogstown or Moydrum Hardwood Ballynakill Cappaboggan Killaskillen Knockersally/Colehill ~C ASTLEJORDAN Kilkeeran CASTLEKEERAN CASTLERICKARD CLOGHBRACK Carnaross Castlepole Killaconin Meenlagh Woodpole Derrinlig Longwood Middleborough Corballis Rathcormick Rathkenna Shanco Woodtown Woodtown West CROSSKEYS Lakefield KlLLACONNIGAN KILLYON Clonygrange Crossanstown Moyfeagher Portlester Ballina Ballyadams Batterstown Bigisland Boraheen Clondalee Beg Clondalee More Derryconnor Inan Newtown or Cloneen £iy COUNTY MEATH (continued). DISTRICT ELECTORAL DIVISION LOUGHAN NOBBER SLANE TOWNLAND(S) Ballynamona Cloonfinnan Cornasaus Curragh Moat Rathbrack Leafin Coalpits Commons Higginstown Knockmooney Mooretown Â<T COUNTY OFFALY DISTRICT ELECTORAL DIVISION AGHANCON BALLINCOR BARNA BIRR RURAL BIRR URBAN CANGORT TOWNLAND(S) Glenacurragh Marymount Tullaroe Ardavagga Ballincor Demesne Cloonaheen Curralanty Galbally Rathcahill Tonagh Aghnagross Coolroe Ballindarra Ballywilliam Boherboy Clonbrone Clonoghil Lower Clonoghil Upper (Part) Coolnagrower Derrinduff Clonoghill Upper (Part) Drumbane Seefin Townparks Cangort Demesne Cangort Park Glebe Kilmurryely CAPPANCUR Danganbeg CLARA Aghamore Ballickmoyler Ballicknahee Cappanamorath Kilbride Kilcollin Kilcoursey Lehinch Lissanisky SL6 COUNTY OFFALY (continued). DISTRICT ELECTORAL DIVISION TOWNLAND(S) DAINGEAN Toberronan Townparks DERRINBOY Ballywilliamreagh DERRYAD DERRYCOOLY DROMOYLE Ballykealy Glenamony Glebe Blackwood Church Hill Corcush Currygurry Derrinvullig Glasshouse Oldtown Rabbitburrow Roscore Demesne Bigwood Clonbeg Dromoyle Irishtown Island DRUMCULLEN Ballynacurrà ETTAGH GEASHILL KILCOLMAN Cloghan Curragh Glebe Heath Killistristane Loughwheelion Srahanbregagh Ballinagar Cappanageeragh Knockballyboy Ballyegan Kilnalacka Rathbeg £%L COUNTY OFFALY (continued). DISTRICT ELECTORAL DIVISION KILLOUGHY TOWNLAND(S) Clonterlough Derrylahan Hollimshill KILLYON Clonbrone RAHAN RATHROBIN Aghalusky Backsteel Ballincloghan Ballindrinan Ballynasrah Cappaloughan Derrynanagh Newtown Raheen Demesne Tullymorerahan Goldsmith's Lot Annaghbrack Glebe Annaghmore Ballynacanty Clondonnell Glebe Clonseer Clonshannagh Cooldorragh Glebe Cormeen Gortacur Killananny Killoughy ROSCOMROE Longford SEIRKIERAN SHINRONE Aghagurty Derrybeg Grange Longford Big Longford Little Ballylonnan Brosna Clareen Cloghirtoyle Derrymacedmond Kilballyskea Moynure Scorduff Tubbrid S$ COUNTY OFFALY (continued). DISTRICT ELECTORAL DIVISION SILVER BROOK TOWNLAND(S) Coleraine Coolnahely Kilclare Kilnacarra Loughaun Tara TEMPLEHARRY Ballintemple ^ COUNTY TIPPERARY DISTRICT ELECTORAL DIVISION TOWNLAND(S) ARDSALLAGH Buffanagh Clonbrogan Curraghscarteen BALLYCAHILL Ballycahill BALLYGIBBON Elmhill Glenahilty Tooreigh Wilton BALLYLUSKY Ringroe BALLYSHEEHAN BORRISOLEIGH CARRIGATOGHER Ballykelly Erry Glascloyne Marshalstown Newpark Sailsquarter Drumtarsna Rathcardan Carrigatogher (Abbott) Carrigatogher (Harding) Carrigatogher (Ryan) Carrigatogher Bog (Abbott) Carrigatogher Bog (Harding) Carrigatogher Bog (Ryan) Lisduff Patrickswell CLOUGHJORDAN Burntwood Little Cappakilleen Garraun Islandwood Stoneyacre CLONEEN Byrneskill CLONOULTY Fana Garranmore io COUNTY TIPPERARY (continued). DISTRICT ELECTORAL DIVISION COOLEAGH DRANGAN DROM TOWNLAND(S) Kilbreedy Kilkennybeg Knockanglass Moglass Moglass Mountaylor Roan Ballyvarra Knockuragh Adamstown Clonismullen Ivyhall Kilclareen Kiltilliha Manna North Rossnamanniff Upper GRAIGUE Sharragh KILCORAN Rossrehill KILLEA Farranacahill KILTINAN Ballynaclera Clare More NEW BIRMINGHAM Derryvélla TEMPLETOUHY Ballinroe TIPPERARY Carrowclogh Rathanny YOUGHALARRA Boolaroe Clareen Curraghtemple Fatthen Gorteennakilla Loughaun Toorfune :H COUNTY WATERFORD DISTRICT ELECTORAL DIVISION BALLYDUFF BALLYIN TOWNLAND(S) Ahaun Ballyduff Flowerhill Gairha Garra East Garra West Knockdaun Ballyrafter Cooladalane Lower Cooladalane Upper Glencribbeen Sruh East Sruh West BALLYLANEEN Rathnaskilloge BALLYSAGGART M O RE Shanavoola CLONEA COMERAGH DUNHILL FOX'S CASTLE Ballynaskeha Beg Cloncoskoran Cushcam Knockahavaun Knocknagrannagh Loughaniska Briska Lower Lyre C r i n a l i sk S a v a g e t o wn Ballyvalloona Carrickarea Drumlohan Faha Fox's Castle Glen East Glen West GEORGESTOWN Ballyvohalane •3EL COUNTY WATERFORD (continued). DISTRICT ELECTORAL DIVISION TOWNLAND(S) GURTEEN Tikincor Lower KEEREEN Cloghbog KILCOCKAN KILMEADAN NEWCASTLE Ballybrack Killeenaghmountain Newport W e st Darrigal Tigroe Ballygarran Knockaderry Lower NEWTOWN Newtown STRADBALLY Carrickahilla TALLOW Glennaglogh Kilcalfmountain 3i COUNTY WESTMEATH DISTRICT ELECTORAL DIVISION ARDNAGLEW BALLYNAGORE CARRICK CASTLETOWN CLOGHAN CLONLOST TOWNLAND(S) Aghuldred Ardnaglew Clonaglin Skeahanagh Aghyrassy Balrath Commeenlonagh Cumminstown Garryduff Knockmore Loughanlewnaght Rahinmore Teernacreeve Toorlisnamore Brackagh Carrick Gaddaghanstown Higginstown Robinstown Walterstown Ballinlaban Cappaduff Gneevebrack Killalea Killard Tullaghanmore Tullaghansleek Ajîpfedaugh Cloghanumera Cooksborough Killynan (Cooke) Macetown Mountrobert Ballycor Balrath East Balrath North Balrath West Clonlost Crosserdree Edmonds town Fennor Killynan (Pratt) Reynella Tevrin èv COUNTY WESTMEATH (continued). DISTRICT ELECTORAL DIVISION TOWNLAND(S) COLLINSTOWN Gillardstown DERRYMORE Ballyhaw Brutonstown Brutonstown Little Derrymore Hydepark Wardenstown DYSART Dysart. ,_ GREENPARK HUNTINGDON Brottonstown Brottonstown Little Drumloose Hanstown Shanonagh Stokestown Strattonstown Tuitestown Balrowan (Rowley) Banagher Cloncullen Clonickilvant Edmonstown Huntingdon Knockmant Knocksimon Lisnabin Porterstown (Cooke) Porterstown (Napper) Rathbrack -is COUNTY WESTMEATH (continued). DISTRICT ELECTORAL DIVISION KILBEGGAN KILLULAGH TOWNLAND(S) Aghamore Ballinderry Big Ballinwire Ballymacmorris Ballyoban Brownscurragh Camagh Coola Demesne/Mearsparkfarm Grangegibbon Greenan Guigginstown Hallsfarm Kilbeggan Kilbeggan North Loughanagore Meadowpark Meeniska Shureen & Ballynasuddery Stonehousefarm Tonaphort Kilbeggan South Ballygillin Battstown Dryders town Gigginstown Graffanstown Hiskinstown Killulagh Lunestown Mulchanstown Williamstown Briscoe Williamstown Rochford KINNEGAD Aghamore Cloncrave Derryboy Kinnegad Monganstown KINTURK Deerpark t>G ; ^ • V ^;<ïiï^^[ •••;w^ ry. COUNTY WESTMEATH (continued). DISTRICT ELECTORAL DIVISION KNOCKDRIN TOWNLAND(S) Brittas Cartron Clonsheever Curraghbrack Drinmore Garraree Kilmaglish Knockalee Loughagar Beg Loughagar More Moneylea Parsonstown Quarry LAUREE Ballinderry Little Brackagh Castle Cloonymurrikin Kilgardan Meeldrum NEWTOWN Ballymachugh PORTLOMAN RAHUGH Ballyedward Balrath Clondardis Clondardis Grangegeeth Johnstown Lugnagullagh Monroe Monroe/Johnstown Mountmurray Parcellstown Piercefield Portloman Scurlockstown Slanebeg Slanemore Wattstown Ardan Atticonor Kiltober Lowerton Monasset Rahugh By COUNTY WESTMEATH (continued). DISTRICT ELECTORAL DIVISION RA HARNEY TULLAGHAN TOWNLAND(S) Channons town Clonreagh Corbally Corbetstown Creggstown Higginstown Joristown Lower Joristown Upper Millerstown Mylestown Priesttown Raharney Sionhill Ballard Ballyboy Ballynaclin Ballyote Slanestown Tullaghan Walshestown North Walshestown South i£ COUNTY WEXFORD DISTRICT ELECTORAL DIVISION TOWNLAND(S) BALLYANNE Ballynacoolagh BALLYNESTRAGH Ballydermot Boleybaun Corcannon Curragh Curraghwood Parkbaun CAHORE Ballywater Lower Cullentra Templederry DRINAGH EDERMINE FORTH GOREY RURAL Gregorystown Hodgesmill Knockruth Ballynacarrig Monavoddagh Ballintlea Coolstuff Garradreen Ballowen Ballyteganpark Barnadown Upper Coolnastudd Moneylawn Lower Moneylawn Upper •^ o COUNTY WEXFORD (continued). DISTRICT ELECTORAL DIVISION TOWNLAND(S) KILCOWAN Grascur Great Longridge Newtown Big Newtown Little KILLANN Askinvillar Lower -RILLINCOOLEY KILLINICK KILNAHUE KILSCORAN KILTEALY Ballyduff Ballyhigh Island Moneyboe Bloomhill Hobbinstown Knockangall Newtown Owenstown Rathmacknee Great Sallystown Shortalstown Ballintlea Grove Great Grove Little Kilmichaelhill Lower Kilmichaelhill Upper Ballymacushin Slad Mocurry West Tomona ^O COUNTY WEXFORD (continued). DISTRICT ELECTORAL DIVISION TOWNLAND(S) MAYGLASS Mountpleasant Ting MONAMOLIN B a l l y d u f f b eg RATHASPICK D e n n i s t o wn H COUNTY WEXFORD (continued). DISTRICT ELECTORAL DIVISION TOWNLAND(S) WELLS Coolharbour 41 COUNTY WICKLOW DISTRICT ELECTORAL DIVISION DUNGANSTOWN (EAST/SOUTH/WEST) KILCOOLE TOWNLAND(S) Ballynagran Ballyvaltron Cranagh Cronakip Ballyhorsey Ballyronan Holywell Killickabawn Tinnapark Demesne KILLISKEY Kellystown NEWCASTLE Ballygarret Bromley Cooladoyle Johnstown Kilpedder West Seaview <e> Z o n as desfavorecîdas tal c o mo se defincn en cl apartado 5 del articulo 3 de la Directiva. 75/268/CEE ANEXO II • - • •BILAGII U g u n s t i gt stillcdc omrâder, jf. artikel 3, stk. 5, i direktiv 7 5 / 2 6 8 / E 0F ANHANG II Benachteiligte Gebiete im Sinne von Arrikel 3 Absatz 5 der Richtlinie 75/268/EWG ~^ nAPAFTHMA II MciovfKTiKÉç 7t£ptojcéç Kara THV é w o ta TOO cpdpoo 3 «apdypaçoç 5 xr\q o8i\yiaq 7 5 / 2 6 8 / E OK ANNEX II Less-favoured areas within the meaning of A r t i de 3 (5) of Directive 75/268/EEC ANNEXE II Zones défavorisées au titre de l'article 5 paragraphe 5 de la directive 75/268/CEE • ' "• ALLEGATG II Zone svantaggiatc ai sensi dcll'articolo 5, paragrafo 5 délia direttiva 75/268/CEE BIJLAGE II P r o b l e e m g e b i e d en in de zin van arrikel 3, lid 5. van Richtlijn 75/268/EEG ANEXO II Zonas desfavorecidas na acepçao do nc. S do artigo 3? da Directiva 75/268/CEE Direkriivin 75/268/ETY 3 artiklan 5 kohdan mukaisesti epasuotuisiksi mààfitcttyja aiueita LIITt II BJLAGA 11 Mindre gynnade o m r à d en i cnlighei nied artikel 3. 5 i direktiv 75/268/EEG 4q COUNTY CORK DISTRICT ELECTORAL DIVISION TOWNLAND(S) BALLYMACKEAN D o w n m a c p a t r i c k / O ld H e ad H^ COUNTY LIMERICK DISTRICT ELECTORAL DIVISION TOWNLAND(S) CRAGGS Ardaneer Churchfield Inchagreenogue Knockardnacorlan Oorla Robertstown Sroolane Sroolane North Sroolane South Stokesfield ^ ï COUNTY LIMERICK (continued). DISTRICT ELECTORAL DIVISION TOWNLAND(S) SHANAGOLDEN SHANID Ballinree Ballynacragga South Parkmore Shanagolden Shanagolden Demesne Ballycormick Clashganniff Moig Moun tdavi d Shanid Lower Shanid Upper H* • COUNTY LOUTH DISTRICT ELECTORAL DIVISION TOWNLAND(S) DUNDALK RURAL Demesne Marshes Lower Marshes Upper Mounthamilton Townparks l\% COUNTY WATERFORD (continued). DISTRICT ELECTORAL DIVISION GLENWILLIAM TOWNLAND(S) Ballyeelinan Ballynagleragh Glenwilliam Kilknockan Liskealty Prap Tonteeheige GRANGE Addrigoole Qq COUNTY WEXFORD - i DISTRICT ELECTORAL DIVISION TOWNLAND(S) BALLYVALDON Ballintubbrid Ballyvoodock Ballyvoodrane Garrynoyle Killeagh Kilmacot Kilnew Kilnew Monanarrig COURTOWN Ballinacarrig Ballycomclone Mucklow Prospect Sb COUNTY WEXFORD (continued). DISTRICT ELECTORAL DIVISION LADY'S ISLAND TOWNLAND(S) Ballare Ballask Ballygarra Barnawheel Birdstown Bohercreen Bunarge Bush Carna Castlepaliser Castletown Chour Churchtown Clougheast Coolcam Cools Cousinstown Crosslands Hilltown Inish ^Lady's Island Loginsherd Moortown Nethertown Nineacres Pullingtown Raheenmore Ring Little Ringsherane Shilbrack Shilmore St Vogues Sumerstown Tedwards Threeacres RATHROE Clonlard Kilbride Shanacloon r-i COUNTY WEXFORD (continued). DISTRICT ELECTORAL DIVISION TACUMSHIN TOWNLAND(S) Balyhiho Churchtown Ecclestown Faythe Fence Sigginstown Tacumshin TEMPLETOWN Ballystraw TOM HAGGARD Ballyboy Ballygullick Butlerstown Grayrobin Littletown Moortown Great Tomhaggard Walshestown 52. FINANCIAL STATEMENT Items for publication in the working papers 1 TITLE OF OPERATION: DRAFT COUNCIL DIRECTIVE AMENDING THE LIST OF LESS-FAVOURED FARMING AREAS WTJHIN THE MEANING OF DIRECTIVE 7 5 / 2 6 8 / E EC (IRELAND) BUDGET HEADING INVOLVED (A) (B) -• Community B2-1000 Objective 1 areas (EAGGF Guidance Section) B1-3805: Ewe premium less-favoured and mountain and hill areas (EAGGF Guarantee Section) frameworks: support in LEGAL BASIS: ARTICLE 43 OF THE TREATY DESCRIPTION OF OPERATION: 4. 1 4. 2 General objective:To accordance with the conditions in force increase the number of less-favoured areas in Penod covered: 1996-99 (period still to run of existing Community Support Frameworks 1994/99) CLASSIFICATION OF EXPENDITURE OR REVENUE (A) Heading B2-1000: EAGGF Guidance Section 5. 1 Non-compulsory expenditure 5. 2 Differentiated appropriations (B) Heading Bl-3805: EAGGF Guarantee Section 5. 1 Compulsory expenditure 5. 2 Non-compulsory appropriations •6 5» TYPE OF FJCPENDITURE OR REVENUE (A) Heading B2-1000: EAGGF Guidance Section Subsidy for joint financing with other sources in the public sector of eligible national expenditure on compensatory allowances pursuant to Article 13 of Council Regulation (EEC) No 2052/88 on differentiation of rates of assistance. The rate of Community part-financing was set at 65% of eligible expenditure in Operational Programme 94. IR. 06. 009 on Agriculture, Rural Development and Afforestation which includes compensatory allowances in less-favoured areas. (B) Heading B1-3805: EAGGF Guarantee Section An aid of ECU 6. 641 green ecus (equivalent to 6. 725 budget ecus) per ewe for producers of sheepmeat in less-favoured areas intended to cover expenditure resulting from the application of Regulation (EEC) No 1323/90 to reduce the effects of the stabilizers. 7 FINANCIAL IMPACT 7. 1 and 7. 2 Method of calculating total cost of operation in 1996 and itemised breakdown of cost (A) Heading B2-1000: EAGGF Guidance Section The proposed increase in the less-favoured areas does not give rise to additional expenditure. the compensatory allowance scheme the 128 000 ha newlv Applying determined by this Directive would result, however, in an increase in the total costs that to be part-financed of ECU 1. 9 million, of which ECU 1. 2 million would have to be borne by the EAGGF Guidance Section (at the rate of 65%) in respect of aid planned for certain types of livestock grazing in the area in accordance with Article 19 of Regulation (EEC) No 2328/91: to Type of livestock LU Aid/LU Eligible sheep Eligible bovine animal (excl. suckler cows) 10 450 x 21 500 x £66/LU = £689 700 £40/LU = £860 000 Total eligible cost: £1 549 700 = ECU 1. 9 million, of which: 0. 65 x 1. 9 = ECU 1. 2 million would have to be borne by the EAGGF Guidance Section. SM Any additional cost, however, would have to be borne by the overall budget allocation for the CSF for Ireland for 1994/99 to cover Objective 1, and in particular the financing plan for the operational programme on Agriculture, Rural Development and Afforestation which has been approved and is operational since 1994. (B) Heading Bl-3805: EAGGF Guarantee Section By agreement with Regulation (EEC) No 1323/90 (as amended by Regulation (EEC) No 363/93), provision is made for a specific aid for the rearing of sheep and goats of 6. 641 green ecus per head. Totar~cost to be bome by the EAGGF Guarantee Section: Number of sheep: 69 700 (10 450 LU) x 6. 641 green ecus/head = 462 877 green ecus (i. e. 468 727 budget ecus). 7. 3 Schedule to. be completed for multiannual operations Application period: 1996-99. 1996 budget 1997 prelim draft budget Commitment appropriations in ECU million INDICATIVE PLAN 1997 1998 1999 2000 and subs, yrs TOTAL pm pm pm pm 0. 5 0. 5 0. 5 0. 5 (A) B2-1000: EAGGF (Guidance) (B) Bl-3805: EAGGF (Guarantee) FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN Articles 23 and 24 of Council Regulation (EEC) No 4253/88 (for the results of measures taken, see annual reports on fraud prevention). sv ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 9. 1 Specific and quantified objectives; target population Specific objectives: In accordance with Article 8(4), (5) and (6) of Council Regulation (EEC) No 2052/88, the specific objectives are set in each OP. The specific objective of this operation is to secure the future of farming through the grant of aid that will make it possible to maintain a minimum level of population needed to ensure the environmental upkeep of these less-favoured areas. Target population: The whole of rural society living in these less-favoured areas of Ireland. 9. 2 Grounds for the operation Need for Com m unity financial aid This operation is included among the Objective 1 priorities which the Structural Funds (principally the EAGGF Guidance Section) must achieve if the general objectives set out in Articles 130a and 130c of the Treaty are to be attained. It has been shown that the payment of aid to top up farm incomes is a decisive factor in the strategy to combat the drift away from less-favoured rural areas and their abandonment. Choice of ways and means These consist of OPs as provided for under Article 12 of Council Regulation (EEC) No 4253/88 which stipulates that "Assistance covered by a Community support framework shall be provided predominantly in the form of a limited number of operational programmes". Main factors of uncertainty which could affect the specific of the operation. results Delays in the administrative, clerical and budgetary' application of the assistance. <Tk 9. 3 Monitoring and evaluation of the operation Monitoring and evaluation of in accordance with Article 6(1) of Regulation (EEC) No 2052/88 and Articles 25 and 26 of the implementing Regulation (EEC) No 4253/88. The results will be appraised in the relevant reports drawn up in accordance with Article 31 of Regulation (EEC) No 4253/88. the operation will be conducted Items for internal information purposes 9. 4 Coherence with financial programming Is the operation incorporated in the DG's financial programming the relevant years? Yes. for To which programming correspond? broader objective defined of the objective does the DG's in the proposed financial operation The development of rural society. 10 ADMINISTRATIVE EXPENDITURE (PART A OF THE BUDGET) This section of the financial statement must be sent to DGs IX and XIX; DG IX will then forward it to DG XIX with its opinion. 10. 1 Will tiie proposed operation Commission staff? If so, how many? involve an increase in the number of 10. 2 Indicate the amount of staff and administrative expenditure involved in the proposed operation. Explain the method of calculation. ^¥ ISSN 0254-1475 COM(96) 224 final DOCUMENTS EN 03 13 Catalogue number : CB-CO-96-234-EN-C ISBN 92-78-04396-6 Office for Official Publications of the European Communities L-2985 Luxembourg 51?

Proposal for a COUNCIL AND COMMISSION DECISION on the conclusion of a Protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States and the Russian Federation (EC/EURATOM/ECSC)

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j i ft '• * A COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 23. 05. 1996 COM(96) 150 final VO/0106 (AVC) Proposal for a COUNCIL AND COMMISSION DECISION on the conclusion of a Protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States and the Russian Federation f EC / EURATOM / ECSC) (presented by the Commission) Explanatory memorandum The Partnership and Cooperation Agreement between the European Communities and their Member States and the Russian Federation signed the 24 June 1994 takes the Agreement on trade and commercial and economic" cooperation concluded by the EEC and Euratom with the Soviet Union on 18 December 1989 a step further for the Communities. The PCA is based on the Treaty establishing the European Coal and Steel Community, the Treaty establishing the European Community, and in particular Article 54 (2), the last sentence of Article 57 (2), and Articles 66, 73 c (2), 75, 84 (2), 99, 100, 113 and 235, in conjunction with Article 228 ( 2) and the second subparagraph of Article 228 (3) thereof, and the Treaty establishing the European Atomic Energy Community, and in particular the second paragraph of Article 101 thereof. Whereas there three new Member States have to be added to the list of contracting Parties and the list of signatories and authentic texts of the Agreements, its Annexes and Protocols, the Final Act and all documents annexed to it, have to be established in Finnish and Swedish. 2. 3. 4. A need arose for a protocol to the text of the Agreement signed on 24 June 1994. The accession to the European Union and thereby to the Eurpean Community of Austria, Finland and Sweden on 1 January 1995 means these three new Member States have to be added to the list of contracting parties and the list of signatories. In light of the above, the Commission proposes that the Council adopt the annexed Decision. I Proposal for a COUNCIL AND COMMISSION DECISION OF on the conclusion of a Protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States and the Russian Federation (EC / EURATOM / ECSC) THE COUNCIL OF THE EUROPEAN UNION, THE EUROPEAN COMMISSION, Having regard to the Treaty establishing the European Coal and Steel Community, Having regard to the Treaty establishing the European Community, and in particular Article 54 (2), the last sentence of Article 57 (2), and Articles 66, 73 c (2), 75, 84 (2), 99, 100, 113 and 235, in conjunction with the second sentence of Article 228 ( 2) and the second subparagraph of Article 228 (3) thereof. Having regard to the Treaty establishing the European Atomic Energy Community, and in particular the second paragraph of Article 101 thereof, Having regard to the assent of the European Parliament, Having regard to the approval of the Council given in accordance with Article 101 of the Treaty establishing the European Atomic Energy Community, Having consulted the ECSC Consultative Committee and the Economic and Social Committee, and with the unanimous assent of the Council, Whereas the Republic of Austria, the Kingdom of Sweden and the Republic of Finland acceded to the European Unions, and thereby to the Communities on January 1, 1995. Whereas there three new Member States have to be added to the list of contracting Parties and the list of signatories and authentic texts of the Agreements, its Annexes and Protocols, the Final Act and all documents annexed to it, have to be established in Finnish and Swedish, HAVE DECIDED AS FOLLOWS: Article 1 The protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States and the Russian Federation introducing the name of the three new Member States - Austria, Finland and Sweden- which joined the European Communities and their Member States on 1. 1 1995 is hereby approved on behalf of the European Community, the European Coal and Steel Community, and the European Atomic Energy Community. The texts of the Protocol and its Annexes arc attached to this Decision. Article 2 The President of the Council shall give the notification provided for in Article 112 (2) of the Agreement on behalf of the European Community. The President of the Commission shall give such notification on behalf of the European Coal and Steel Community and the European Atomic Energy Community. Done at Brussels, (* PROTOCOL to the Agreement on Partnership and Cooperation, establishing a Partnership between the EUROPEAN COMMUNITIES and their Member States, of the one part and the RUSSIAN FEDERATION, of the other part. THE KINGDOM OF BELGIUM THE KINGDOM OF DENMARK THE FEDERAL REPUBLIC OF GERMANY THE HELLENIC REPUBLIC THE KINGDOM OF SPAIN THE FRENCH REPUBLIC IRELAND THE ITALIAN REPUBLIC THE GRAND DUCHY OF LUXEMBOURG THE KINGDOM OF THE NETHERLANDS THE REPUBLIC OF AUSTRIA THE PORTUGUESE REPUBLIC THE REPUBLIC OF FINLAND THE KINGDOM OF SWEDEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND Contracting Parties to the Treaty establishing the EUROPEAN COMMUNITY the Treaty establishing the EUROPEAN COAL AND STEEL COMMUNITY and the Treaty establishing the EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as the "Member States", and of the EUROPEAN COMMUNITY, the EUROPEAN COAL AND STEEL COMMUNITY and the EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as "the Community", of the one part, and the RUSSIAN FEDERATION, of the other part, taking into account the accession of THE REPUBLIC OF AUSTRIA, THE REPUBLIC OF FINLAND and THE KINGDOM OF SWEDEN to the European Union and thereby to the Community on 1 January 1995, have agreed as follows: Article 1 THE REPUBLIC OF AUSTRIA, THE REPUBLIC OF FINLAND and THE KINGDOM OF SWEDEN are Parties to the Agreement on Partnership and Cooperation, establishing a Partnership between the EUROPEAN COMMUNITIES and their Member states, of the one part, and the RUSSIAN FEDERATION, of the other part, signed at Corfu on 24 June 1994, and respectively adopt and take note of, as other Member States of the Community, the texts of the Agreement, as well as of Joint Declaration, Exchanges of Letters, and Declaration by the RUSSIAN FEDERATION annexed to the Final Act signed on the same date. Article 2 The texts of the Agreement, the Final Act and all documents annexed to it are drawn up in the Finnish and Swedish languages. They are annexed to the present protocol and are equally authentic with the texts in the other languages in which the Agreement, the Final Act and the documents annexed to it are drawn up. Article 3 This protocol is drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Russian languages, each ol these texts being equally authentic. Article 4 The protocol will be approved by the Parties in accordance with their own procedures This protocol shall enter into force on the first day of the second month following the day on which the Parties notify each other of the completion of the procedures referred io in the first paragraph. Done at on For For THE KINGDOM OF BELGIUM THE RUSSIAN FEDERATION £ THE KINGDOM OF DENMARK THE FEDERAL REPUBLIC OF GERMANY THE HELLENIC REPUBLIC THE KINGDOM OF SPAIN THE FRENCH REPUBLIC IRELAND THE ITALIAN REPUBLIC THE GRAND DUCHY OF LUXEMBOURG THE KINGDOM OF THE NETHERLANDS THE REPUBLIC OF AUSTRIA THE PORTUGUESE REPUBLIC THE REPUBLIC OF FINLAND THE KINGDOM OF SWEDEN THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND For THE COMMUNITY ~? ISSN 0254-1475 COM(96) 150 final DOCUMENTS EN 11 01 Catalogue number : CB-CO-96-167-EN-C ISBN 92-78-02602-6 Office for Official Publications of the European Communities L-2985 Luxembourg

Communication from the Commission to the Council and the European Parliament - Independent external monitoring and evaluation of community activities in the area of research and technological development

http://publications.europa.eu/resource/cellar/e81d1800-ce07-4767-880a-5a10a6273204

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\s COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 22. 05. 1996 COM(96)220 final COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT INDEPENDENT EXTERNAL MONITORING AND EVALUATION OF COMMUNITY ACTIVITIES IN THE AREA OF RESEARCH AND TECHNOLOGICAL DEVELOPMENT SUMMARY The Commission is continually seeking to demonstrate and enhance the credibility and efficiency of its efforts in relation to evaluation of Community RTD actions. In the light of the recent legislative Decisions on the fourth Framework Programme and the related specific programmes, which prescribe a complex evaluation scheme and an active role for independent external experts in this scheme, the Commission decided to take a fresh look at Community RTD evaluation efforts. The Scientific and Technical Research Committee (CREST) was consulted for advice; subsequently, CREST established an Evaluation Sub-Committee. The Council's Research Group and Atomic Questions Group as well as the European Parliament's Committee on Research, Technological Development and Energy (CERT) have been informed of this development. This Communication summarizes the evaluation required by legislative Decisions and outlines a rationalized approach, taking into account the CREST advice. The approach will produce results in a timely, efficient and cost-effective manner. It concentrates on the continuous monitoring of specific programmes and the Framework Programme and their five-year assessment. Regular reporting will be made once a year, correlated with the publication of the Annual Report requested under Article 130p of the Treaty on European Union. The approach has been introduced on an experimental basis in 1995 and will be reviewed after three years of implementation. The approach builds upon the solid foundation of experience already acquired by the Commission from past evaluations and takes into account a recent initiative on concrete steps towards best evaluation practice in the Commission. The main feature of the approach is a further development towards coherent monitoring and evaluation of Community RTD actions. In particular, the approach: (i) (ii) (iii) (iv) introduces continuous monitoring and develops through programme evaluation to S&T policy evaluation; spells out the implementation principles; involves appropriate assistance from independent external experts; and should produce results in time for discussion on future programme Decisions. The Commission is responsible for the monitoring and evaluation of Community RTD efforts. However, the involvement of outside experts and bodies and the openness of procedures will enhance the independence and transparency of monitoring and evaluation. In addition, a new level of accountability is introduced through publication of the Commission's responses to recommendations produced by the five-year assessment panel of the Framework Programme. This will all enhance the credibility of Community RTD evaluation. Through this Communication, the Commission invites the Council and the European Parliament to take note of this rationalized approach which takes account of the current legislative requirements for monitoring and evaluation. 1. INTRODUCTION The Commission's White Paper "Growth, Competitiveness, Employment", COM(93)700 final, identifies increased RTD effort and its adaptation to new market conditions as one of the key means to improve the industrial and technological performance of Europe. Evaluation - both the evaluation of the programmes (their management, monitoring quality, efficiency of internal procedures, etc. ) and the evaluation of results (increase in scientific and technical knowledge, dissemination and optimization of results, industrial exploitation of RTD results and their relation to innovation processes, measurement of long-term economic and social effects, etc. ) - plays an important role in this regard by contributing to: the efficient implementation of RTD efforts; coherence with all relevant policies; and best use of public resources. The legislative Decisions on the fourth Framework Programme1 and its specific programmes, require the Commission to implement a complex evaluation scheme (see Point 3 below). In this Communication the Commission presents a rationalized approach which will produce results in a timely, efficient and cost-effective manner. 2. EVOLUTION OF COMMUNITY RTD EVALUATION EFFORTS The systematic evaluation of Community RTD activities was confirmed with the Plan of Action of 19832 and has since evolved further3. The use of external experts has been a key feature in promoting the independence of evaluation. In 1993, the Council and the European Parliament invited the Commission to continue to improve the credibility of the evaluation of Community RTD programmes while ensuring its independence. Subsequently, the legislative Decisions on the fourth Framework Programme included additional requirements concerning evaluation. In 1994, the Commission Services involved in the implementation of the Framework Programme, prepared a reflection document as a first step in response to the Council and the European Parliament in this regard. The document was transmitted to CREST, CERT and the European Science and Technology Assembly (ESTA). In 1995, CREST produced advice4 which included the establishment of a CREST Evaluation Sub-Committee. The Research Group and the Atomic Questions Group (Council), as well as CERT (Parliament), have been kept informed of this development. On 21 March 1995 the Commission approved a programme5 for "Sound and Efficient Financial Management (SEM 2000)", divided into three phases: consolidation within the In this document, the term "fourth Framework Programme" comprises Community activities resulting from two Decisions: J^ Decision N° 1110/94/EEC concerning the 4th Framework Programme of the European Community activities in the field of research and technological development and demonstration (1994-1998); and, 2L Decision N° 94/268/Euratom concerning a framework programme of Community activities in the field of research and training for the European Atomic Energy Community (1994-1998). Council Resolution of 28 June 1983 Communication to the Council, concerning a Community Plan of Action relating to the Evaluation of Community Research and Development Activities for the years 1987 to 1991, COM (86) 660 final, 20 November 1986 CREST advice to Council and the Commission on the monitoring and evaluation procedures for Community research programmes; adopted at its meeting of 18 May 1995. Recommendation n° 4 of the Memorandum from the President, Mrs. Gradin and Mr. Liikanen, SEC (95) 1301/4 of 22 July 1995; and Communication to the Commission on Evaluation (concrete steps towards best practice in the Commission). SEC. present framework, reform of financial management culture, and partnership with Member States. In adopting the second phase of this programme the Commission introduced, among other things, the requirement for systematic evaluation for all Community programmes and actions and clarified that it is primarily the responsibility of operational Directorate Generals to carry out the task of evaluation. 3. EXISTING SITUATION The legislative Decisions on the fourth Framework Programme and their specific programmes6 require the Commission (see Table 1): - - For the Framework Programme: - to continually and systematically monitor, with appropriate assistance from independent external experts, the progress in relation to its initial objectives (Articles 4. 1); and to have an external assessment conducted by independent qualified experts into the management of and progress with Community activities carried out during the five years preceding this assessment and communicate the assessment, accompanied by the Commission's comments, to the European Parliament, the Council and the Economic and Social Committee prior to presenting a proposal for the fifth Framework Programme (Article 4. 2); For the Specific Programmes: - to continually and systematically monitor, with appropriate assistance from independent external experts, the progress within the programme (Article 4. 1); to have an external assessment conducted by independent qualified experts of the activities carried out within the domains covered by the programme and their management during the five years preceding this assessment (Article 4. 2); - and, on completion of each specific programme, to provide an independent final evaluation of the results achieved compared with objectives and to forward this evaluation to the European Parliament, the Council and the Economic and Social Committee (Article 4. 3). To implement these legislative requirements with the existing methodology would lead to: i) a need to conduct 2 major evaluation exercises (one mid-way through the fourth Framework Programme and the other on completion), in each case for about 20 programmes; ii) too short a time interval between these 2 evaluations to be able to detect significant progress; iii) final evaluations being required before significant S&T results are achieved and their impacts become apparent; and iv) a requirement to clarify the roles of independent external experts who would provide 'appropriate assistance'. Council Decisions: 94/801/EC or 23 November 1994; 94/572/EC of 27 July 1994; 94/802/EC of 23 November 1994; 94/571/EC of 27 July 1994; 94/803/EC of 23 November 1994; 94/911/EC ofl5 December 1994; 94/804/EC of 23 November 1994; 94/912/EC or 15 December 1994; 94/9I3/EC of. 15 December 1994; 94/805/EC of 23 November 1994; 94/806/EC of 23 November 1994; 94/914/ECof 15 December 1994; 94/915/EC of 15 December 1994; 94/807/EC of 23 November 1994: 94/9 IT/EC of 15 December 1994; 94/916/IIC of 15 December 1994; 94/920/1-ura loin of 15 December 1994; 94/799/Euratom of 8 December 1994; and Council Decisions implemented by the Joint Research Centre: 94/918/EC or 15 December 1994; 94/919/Euratom of 15 December 1994. 4. APPROACH FOR RATIONALIZATION The following outlines a rationalised approach which the Commission intends to implement. It takes into account the CREST advice and, where appropriate, the principles of the SEM 2000 initiative. 4. 1 How to rationalize The CREST advice recognises that the complex evaluation requirements above can in practice be satisfied by a rationalized approach, while avoiding bureaucracy and evaluation for its own sake (see Table 1). Programme monitoring and evaluation requirements will be satisfied by two kinds of actions relating to the Framework Programme and its specific programmes: i) continuous monitoring, with appropriate assistance from independent external experts, involving annual reporting; and ii) five-year assessment mid-way through implementation. This assessment will be conducted by independent external experts and will incorporate the final evaluation under the previous Framework Programme. The final evaluation for any ongoing specific programmme will be incorporated in the subsequent five-year assessment. Thus, the final evaluation (Article 4. 3) will be independent from the five-year assessment (Article 4. 2) for any one programme. These two activities, monitoring and evaluation, are distinct and separate exercises. the Framework Programme, For the Commission's comments, will be communicated to the European Parliament, the Council and the Economic and Social Committee prior to presenting a proposal for the next Framework Programme (Article 4. 2). the five-year assessment, together with Moreover, the CREST advice suggests that the issues to be addressed will include: the consistency of the selection of projects with the objectives of the specific programme and the work programme; the extent to which selected projects or clusters of projects are fulfilling the wider policy objectives of the Community, in particular in areas of relevance to the specific programme concerned; the progress and output of projects against the original targets set; cases where the independent monitoring teams consider the results will have a important impact, or where poor performance requires further particularly examination; the efficiency and transparency of the management of the programme, including the development of calls, the assessment and selection process, contract negotiation and disbursement of funds, as well as internal Commission co-ordination; the use of special measures and support activities (e. g. to support SMEs, improve dissemination of information, etc); the changes that may be needed to the balance of the programme or to the strategy for implementation in the light of experience and changes in the wider environment. The CREST advice further suggests a set of input and output performance indicators for the monitoring and evaluation processes (see Point 5. 1 below). 4. 2 How to maximize benefit An integrated monitoring and evaluation approach, with the assistance of external experts, is outlined below where continuous monitoring reports will in time provide significant supplementary information to the annual report required under Article 130p of the Treaty on European Union7. The five-year assessment of programmes will provide a major input to discussions on future Community RTD activities. In this move to continuous monitoring and five-year assessment, results will be available at the time when decisions have to be taken and it will be possible to have a global overview of the state of implementation at regular intervals. In addition, evaluations will form a 'coherent ensemble'. Lessons from evaluations will be able to be drawn not only for specific programmes, but also for the Framework Programme and the whole Community S&T policy. Appropriate involvement of outside experts and bodies (notably CREST and Programme Committees), and openness of procedures, will enhance the independence and transparency of evaluations whilst recognizing the need to respect confidentiality of certain data. The external experts will discuss their reports with the Programme Managers and the Programme Committees. This process should facilitate implementation of the experts' recommendations. In addition, a new level of accountability is introduced through publishing the Commission's responses to recommendations produced by the five-year assessment panel of the Framework Programme. 5. EXTERNAL MONITORING 5. 1 Specific Programmes The. primary functions of external monitoring will be to assess the progress of programmes in order to assist Programme Managers in adapting specific programmes to developments, and to contribute to the five-year assessment of such programmes. Monitoring will be a quick response mechanism providing an annual picture of programme development. Monitoring will be based on continuous and systematic collection of data by Programme Managers about the progress and results achieved in the specific programmes. With the assistance of CREST, a set of suggested performance programme indicators have been identified which primarily relate to shared-cost programmes under Activity 1 of the fourth Framework Programme. The other specific programmes, such as the dissemination and optimization of results and the thermonuclear fusion, follow different implementation procedures for which different performance indicators may be appropriate. The Joint Research Centre (JRC) participation in specific programmes will be considered like any other participant, while the JRC direct-action activities will be reported on through the "Observations of the Board of Governors on the JRC Annual Report" which will directly constitute an input to the overall Framework Programme monitoring exercise. Treaty on European Union, Article 130p: "At the beginning of each year the Commission shall send a report to the European Parliament and the Council. The report shall include information on research and technological development activities and the dissemination of results during the previous year, and the work programme for the current year. " The relevant and available data for each specific programme contained in the performance indicators will be analyzed by a small panel of independent experts for each specific programme who would provide an external view. The monitoring panels will not duplicate the functions of Programme Committees, nor will they conflict with them, but add an extra dimension, i. e. of independent assessment concerning the overall performance and achievements of each specific programme. The monitoring panels will assess programme output against. programme objectives and against the progress in implementation. Each panel will present the results of its analysis to the relevant Programme Management which will take appropriate actions. 5. 2 Framework Programme The Framework Programme monitoring will assess the year-on-year implementation of the overall programme and will contribute to its five-year assessment. An independent external experts panel will review the outcome of examinations of the specific programmes and assess the overall progress in relation to objectives, priorities and progress in implementation of the entire Framework Programme. In assessing the whole Framework Programme, the contribution to the objective of strengthening the scientific and technological bases of Community industry and encouraging competitiveness at international level, as well as the contribution to the implementation of other Community policies shall be taken into consideration. The panel will present the results of its analysis to the Framework Programme Management which will take appropriate actions. 6. EXTERNAL FIVE-YEAR ASSESSMENTS OF SPECIFIC PROGRAMMES AND FRAMEWORK PROGRAMME For specific programmes and the entire Framework Programme, five-year assessments timed to provide input to discussions on. future legislative decisions on Community RTD activities, will be produced by panels of independent external experts. The annual monitoring reports, detailed above, will provide an input to the five-year assessment which will include a more strategic dimension. (For example, long-term projects which have been developed in successive Framework Programmes may be assessed over a longer time scale. ) These assessments will be ready when the proposal for the next Framework Programme is discussed. The five-year assessments, incorporating the final evaluations under the previous Framework Programme, will include three principal elements, each looking at distinct, but inter-related features: i) ii) assessing relevance, i. e. whether the initial objectives are still valid against evolving S&T, industrial and socio-economic conditions; assessing efficiency, i. e. whether the objectives have been pursued in a cost- effective manner; and, iii) assessing effectiveness, i. e. whether the initial objectives have been achieved: contributions to strengthening the scientific and technological bases and the competitiveness of Community industry, as well as contributions to all relevant Community policies. Special attention will be paid to the development of reliable methodologies for the evaluation of RTD project results. To this end, an ad hoc Working Group has been created which includes representatives from industry. It will recommend, with the help of external contributions, a common methodology to be used for the evaluation of results of RTD projects, particularly those with industrial relevance. The five-year assessments might pay particular attention to the coherence between Community and national S&T policies with a view to enhancing their mutual consistency8. For the specific programmes, as the five year assessment will incorporate the final evaluation of the previous specific programme, the assessment reports will be forwarded to the European Parliament, the Council and the Economic and Social Committee, as required in Article 4. 3 of the relevant Decisions. For the Framework Programme the five-year assessment report, accompanied by the Commission's comments, will be forwarded to the same bodies as above prior to presenting a proposal for the next Framework Programme, as required in Article 4. 2 of the relevant Decision. 7. IMPLEMENTATION The Commission is responsible for the monitoring and evaluation of Community RTD efforts. Appropriate consultation of CREST, Programme Committees and other relevant bodies will be sought. Independent external experts will be contracted to undertake the tasks of monitoring and five-year assessment and preparing reports. Monitoring panels for the specific programmes will normally comprise 3 experts with appropriate experience and stature: one from industry, one from academia, and one with experience of RTD programme evaluation. Monitoring panels for the Framework Programme will normally comprise 6-7 experts, the larger number reflecting the wider scope of their work. A similar balance of industrial, academic and programme evaluation experience will be sought. For the five-year assessments, the panels, while maintaining a minimum number of experts, will be slightly larger than for monitoring. The size of the panels for the specific programme assessments will be determined in relation to the objectives and scope of the respective programmes. A panel of 6-8 experts will be required for the Framework Programme assessment. The five-year assessment panels might include a few experts from the related monitoring panels to ensure continuity between the two different exercises. The experts will be drawn from a variety of backgrounds, appropriate to the programme under consideration, and will be expected to have extensive experience in order to fully examine horizontal issues. Special attention will be paid to ensure the coherence of monitoring and five-year assessment and to maintain the highest possible degree of transparency for the exercise. Regular reporting will be made once a year, correlated with the publication of the Annual Report requested under Article 130p of the Treaty on European Union. Treaty on European Union, Article I30h: "The Community and the Member States shall co-ordinate their research and technological development activities so as to ensure that national policies and Community policy are mutually consistent". 8. TIMING Every effort will be made to implement this scheme as quickly as possible. The 1995 monitoring exercise has been completed. The external experts' reports on the specific programmes and on the overall Framework Programme are available. In respect of the forthcoming five-year assessment, the first panels will be expected to start their work during Spring 1996 with specific programme reports expected by Summer/Autumn 1996 and the report on the overall Framework Programme before the end of the year. The rationalized approach, suggested above, will be reviewed after three years of implementation. 9. CONCLUSIONS The series of regular annual monitoring reports and five-year assessment reports will provide a comprehensive overview of the management of programmes (Framework Programme and specific programmes), their implementation and benefits derived. The involvement of external experts and the openness of procedures will enhance the independence and transparency of monitoring and evaluation. The publication of Commission's responses to recommendations produced by the five-year assessment panel of the Framework Programme will introduce a new level of accountability. Meetings between the experts and Programme Managers and the Programme Committees on the results of monitoring and evaluation will ensure mutual understanding and facilitate the implementation of appropriate recommendations. All these features will further enhance the credibility of Community RTD evaluation efforts. The five-year assessment reports will be given to the European Parliament, the Council and the Economic and Social Committee thus providing input to future legislative decisions on Community RTD activities. Through this Communication, the Commission invites the Council and the European Parliament to take note of this rationalized approach which takes account of the current legislative requirements for monitoring and evaluation. TABLE 1: EXISTING SITUATION vs. SUGGESTED SCHEME 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Y E AR FP 3 : 1990-1994 1. LEGISLATIVE OBLIGATIONS: FP3 Specific programmes Review ! FP3 2) FP4 State of implementation Specific programmes f { FP4 { 2. SUGGESTED SCHEME: FP 4 : 1994-1998 FP 5 : 1998-2002 Final evaluation Final evaluation 5 year assessment h-L Final evaluation Continuous monitoring State of 5 year implementation I assessment n (*) « (*> (*> , Continuous monitoring, reporting at the beginning of each year (*) 5-year assessment, (incl. final evaluation of FP3) approx. period covered: 1991-1995 5-year assessment (incl. final evaluation of FP4) approx. period covered: 1995-1999 JFP3 + F P4 | (+ F P5 +. '. ) { Specificprogramine, j (*) (*) (*) (*) (*) (*) Continuous monitoring, reporting at the beginning of each year (*) Note : arrows indicate the approximate periods during which evaluation reports should be issued. ISSN 0254-1475 COM(96) 220 final DOCUMENTS EN 15 Catalogue number : CB-CO-96-231-EN-C ISBN 92-78-04209-9 Office for Official Publications of the European Communities L-2985 Luxembourg

WRITTEN QUESTION No. 1305/96 by Johanna MAIJ-WEGGEN to the Commission. Arrest of four journalists in Turkey (SUPPLEMENTARY ANSWER)

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25. 2. 98 EN Official Journal of the European Communities C 60/1 I (Information) EUROPEAN PARLIAMENT WRITTEN QUESTIONS WITH ANSWER (98/C 60/01) WRITTEN QUESTION P-1305/96 by Johanna Maij-Weggen (PPE) to the Commission (22 May 1996) Subject: Arrest of four journalists in Turkey Is the Commission aware of the fact that in the night of 3 May, four Turkish journalists on the Turkish 1. weekly (cid:145)Alinteri(cid:146), namely Sabiha Budak, Filiz Uziurk, Mehtap Kuru(cid:231)ay and Incigul Basel, were arrested? Is the Commission aware that Incigul Basel was later taken to a hospital, and that it was there suspected that 2. she had been tortured? 3. Is the Commission aware that the whereabouts of the other three journalists are unknown, and that it has frequently happened in the past that Turkish citizens who have been arrested have subsequently disappeared? 4. Will the Commission now act promptly to ask the Turkish authorities for clarification of these arrests, having regard in particular to Article 10 of the European Convention on Human Rights, which has been transposed into Turkish law and guarantees freedom of expression? Supplementary answer given by Mr Van den Broek on behalf of the Commission (30 May 1997) Following the question from the Honourable Member the Commission wrote to the Turkish authorities for particulars on the facts reported. The Turkish authorities informed the Commission that the four journalists from the daily newspaper (cid:145)Alinteri(cid:146) were released on 17 May 1996. The Human Rights Foundation, Ankara, has confirmed this to the Commission(cid:146)s Representation in the country. (98/C 60/02) WRITTEN QUESTION E-2394/96 by Hiltrud Breyer (V) to the Commission (6 September 1996) Subject: Decision 94/730/EC establishing simplified procedures concerning the deliberate release into the environment of genetically modified plants With reference to the answer to my Written Question E-1651/96 (1) can the Commission answer the following questions: 1. What is the origin of the Member States(cid:146) obligation to provide (cid:145)appropriate public information(cid:146) in the context of simplified procedures too?

FINANCIAL SERVICES: MEETING CONSUMERS" EXPECTATIONS Green Paper

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COMMISSION OF THE EUROPEAN COMMUNITIES a it it <r Brussels, 22. 05. 1996 COM(96) 209 final FINANCIAL SERVICES: MEETING CONSUMERS1 EXPECTATIONS Green Paper (presented by the Commission) EXECUTIVE SUMMARY The creation of the single market for financial services is inevitably having a profound impact on both financial service providers and on all those, including private consumers, who purchase them. The providers are gaining -access to a much wider market and at the same time are being subjected to fiercer competition at home. The buyers of financial services are benefiting from greater competition in terms both of price and service and a wider choice of financial products. This Green Paper considers the specific protection of a particular category of user of financial services - the private consumer - since that category generally needs a higher level of protection than other more experienced or powerful users. Although the financial services directives are targeted primarily at the financial sector they are also concerned with the rights and interests of the consumer. They contain certain provisions that safeguard consumers' rights to correct and complete information, protect their legal interests and provide access to means of redress. Furthermore, all these directives are intended to secure the stability and trustworthiness of the financial services sector, by imposing strict prudential rules and minimum capital requirements. Until the results of the 1996 Studies become available later this year, the Commission's experience of the operation of the single market is, at present, limited. However, a number of problems encountered by consumers have already been identified and need to be examined carefully to see what action can be taken to remedy them. These problems include the refusal to sell financial services to non-residents, the lack of information and the fraudulent activities of unscrupulous intermediaries. It is also quite possible that, in the future, other consumer concerns will become evident. The distance selling of financial services is an area that merits special attention. The directive currently being approved covers distance selling of all goods and services, with the exclusion of financial services. Both the scale and complexity of distance selling are increasing. Although the vast majority of these contracts are currently offered and concluded at domestic level, it is anticipated that cross-border business is also destined to expand rapidly. This is a sector which is still at an embryonic level of development. The Commission is therefore examining whether binding legislation will be required. In order to assess clearly what problems might need to be addressed both generally and in relation to the distance selling of financial services, the Commission invites comments on present and anticipated developments in the cross-border provision of financial services. With the publication of the Green Paper, the Commission intends to stimulate a wide- ranging debate with all interested parties. A hearing will be organised in the next few months to enable interested parties to discuss the issues raised in this Paper. Responses (in writing) to this Green Paper are requested no later than 15 October 1996 to: The Director-General - DG XV European Commission Rue de la Loi 200 B-1049 Brussels Fax: (+32 2) 295. 65. 00 E-mail: John. MOGG(5)DG 15. cec. be a. FINANCIAL SERVICES: MEETING CONSUMERS' EXPECTATIONS Financial services are a crucially important part of the economy of the European Union. Virtually everyone uses financial services: from public authorities, financial institutions, industrial and commercial enterprises of all sizes (whether SMEs or giant corporations) through to non-profit making organisations, households and individual consumers. On 29 June 1995 the Council adopted a common position on the proposal for a directive on the protection of consumers in respect of distance contracts1. At the second reading in the European Parliament on 15 December 1995, an amendment seeking to bring financial services within the scope of the proposal failed to win the necessary majority required for its adoption. Although financial services were included in the original Commission proposal, the Commission, during this debate, accepted the exclusion of financial services, explaining that, given the increasing complexity and diversity of the European financial sector, the consumer protection aspect of the marketing of financial services in general and the particular question of distance selling merited specific consideration. This Green Paper covers a number of consumer policy issues in the financial services sector, including, in particular, the distance selling of financial services. Given their particular needs, it concentrates on some of the concerns of private consumers. Nevertheless, the Commission is aware that not all problems facing consumers may be addressed in the present Green Paper. In Part I, the Commission indicates to what extent the interests of the consumer of financial services have been taken into account in Community legislation. In Part II, a number of concerns that have already become apparent are identified. The final part of this Green Paper considers briefly future trends in the marketing of financial services, including distance selling. The views of interested parties are sought on all these issues, to enable the Commission to undertake further action. [/ 1 OJ No C 288, 30. 10. 1995. FART I - WHAT HAS BEEN ACHIEVED SO FAR? In financial services the Commission's primary objective has been the creation of a single market putting into effect the Treaty principles of free movement of persons, goods, services and capital. That objective has now been largely achieved by the progressive adoption of some 50 directives targeted at the providers of financial services, the Community's banks, insurance companies and securities houses. The single market in financial services is built on the principles of home country control and mutual recognition based on the implementation of agreed minimum standards of prudential supervision. As a result providers of financial services may operate freely across the European Union. This should result in greater competition, increased economies of scale and greater consumer choice. These effects are already becoming apparent notably in the availability of new financial products and of new ways of doing business (for example, in insurance and share trading), as well as in increased cross- border activity. More detailed information on the benefits of the single market will be available later this year, as the Commission, following a request from the Council, is currently undertaking a major review of the impact of the single market legislation, including financial services. This study will contain economic and other data on the effects of the single market on the major economic sectors and industries including the financial services sector. In particular, these data will measure the impact of the single market in terms of the price of different services and products, current and future trends, and in terms of consumer choice. From this viewpoint, the 1996 study will be useful as regards the issue of consumer policy in financial services, but might not provide enough information to answer the specific questions that are raised in this Green Paper. The financial services sector has traditionally been subject to strict regulation and the European Union's 'minimum' standards are far-reaching. Such regulation, the primary objective of which has been to establish the necessary conditions for the free circulation of financial services, has also had the effect of increasing the protection available to the consumer who entrusts his or her money and financial interests to the financial services industry. In safeguarding the financial strength, probity and reliability of the providers of financial services these prudential standards provide valuable protection to the purchasers of those services. The financial services directives have also laid down a number of provisions designed to protect consumer interests in particular areas (for example, law applicable to insurance contracts, redress, right of withdrawal, minimum information, conduct of business principles). Thus, while the financial services directives are targeted essentially at the financial institutions, protecting the interests of consumers has also played an important role. The financial institutions are themselves well aware that a reputation for honesty and good customer service are among the most effective marketing tools in an increasingly competitive market. Various aspects of consumer protection in the field of financial services have been addressed - directly or indirectly - by the existing texts of Community law. In particular those relating to information, legal protection and systems of redress, which together form a basic set of rights established for the benefit of the consumer, are examined in the sections that follow. • Consumer information Given the complexity of financial services, it is essential that the consumer be provided with the necessary information to enable him or her to make an informed decision on whether to purchase a financial service and on the most suitable 'product' to buy. Accordingly, financial services directives contain a number of provisions requiring financial institutions to provide their clients with appropriate information. These provisions apply to the relevant financial contracts without distinction as to how the contract was concluded (face-to-face, at a distance, etc. ). In banking, depositors - including inter alia consumers - must be informed about the deposit-guarantee scheme which is there to protect their deposits and savings. In the field of consumer credit, prior information must be given on credit limits, the cost of the credit (in particular the annual percentage rate of charge - APR) and termination procedures. The proposal for a directive on cross-border credit transfers requires clients to be properly informed, both before and after the transfer is made. In insurance, the policy-holder must be informed before and during the execution of the contract of the essential aspects of the contract (duration, right of cancellation, applicable law, complaint procedures). The information required is more detailed in the field of life assurance than for non-life insurance given the fact that life assurance products generally imply a long term commitment. In the securities and stock exchanges field, a number of the directives are solely concerned with the provision of information, while all of the directives in this area seek to ensure investor protection by means of maximum transparency. Examples are the stock exchange listing and public offer prospectuses, requirements for the information to be supplied to unit holders in collective investment funds and the investment services directive's requirement to publish transaction details to the market. • Legal protection Certain provisions in a number of directives strengthen the consumer's position vis-à-vis the financial institution and protect the consumers" legal interests should something go wrong. In all three sectors, host countries may impose rules they have adopted to protect the interest of the general good. A co-ordinated collective investment fund (UCITS) must respect the marketing and advertising rules laid down by the state where it is seeking to do business, while investment firms must respect the conduct of business rules of the State in which they are providing services. These provisions reflect the case law of the Court of Justice, which has always ruled that the need to protect the recipient of a service may justify limitations on the cross-border provision of services, an example being the prohibition of cold-calling. Accordingly, consumers can be protected by their own domestic set of consumer protection rules, provided that these rules are non discriminatory, necessary, non duplicative and proportionate. The Rome Convention of 19 June 19802 on the law applicable to contractual obligations, which has been ratified by almost all the Member States3, contains specific rules covering all kinds of contracts concluded with consumers. Whenever a contract has been concluded with a consumer further to a solicitation or publicity by the provider, the choice of applicable law made by the parties may not deprive the consumer of the benefit of the "imperative provisions" of his/her own legislation (provisions from which the law of a given country does not allow any derogation in a contract). If no law has been chosen, the applicable law will be that of the country where the consumer is resident. This Convention, which does not cover insurance, constitutes a significant guarantee that the most vulnerable party may benefit from the most protective provisions of the legislation which he or she knows best, even if another law has been chosen in the contract. The fact that the Rome Convention tends towards the application of the law of the country where the consumer has his/her main residence may create a potential conflict with the principle of mutual recognition applicable within the single market, which tends towards the application of the law of the service provider. Where such conflict occurs, the consumer's home state law can take precedence over the law of the supplier provided that it respects the "general good" criteria laid down by the Court of Justice (proportionality, necessity and non-duplication). If these criteria are not fulfilled, the law of the country where the provider is established will apply. In banking, the directive on deposit-guarantee schemes creates a minimum coverage of ECU 20 000 (with a transitional figure of ECU 15 000 for some countries) in case deposits become unavailable. This measure, which is mainly designed to strengthen the stability of the banking system as a whole, nevertheless has significant implications in terms of consumer protection. Directives on consumer credit have laid down minimum requirements such as the need for a written agreement, the possibility that consumers may discharge their obligations before the time fixed, and the formula to calculate the APR. The proposal for a directive on cross-border credit transfers contains clear obligations for banks, such as the prohibition of double charging and the minimum refund of lost transfers, which give legal protection to users (including consumers). The Commission's recommendation on payment systems also contain provisions setting out rights and obligations of card issuers and card holders, including provisions on responsibility in cases of loss, theft or forgery of cards. The insurance directives contain provisions on the determination of the law applicable to a contract. The "standard" situation is that the law applicable will be that of the country where the risk is located, which is usually where the policy-holder is resident. This system ensures that insured persons are normally subject to the set of rules with which they are most familiar and may only lose the protection of their national set of rules if they so decide. Moreover, the life assurance directives have granted subscribers a cooling-off period of 14 to 30 days to enable them to reflect fully on the suitability of the long-term commitment they are proposing to enter into. 2 3 OJNoL266, 9. 10. 1980, p. l. Austria, Finland and Sweden have not yet ratified the Convention. In securities and stock exchanges, the Commission has proposed a mechanism for investor compensation, based on the same principles as the deposit-guarantee directive. When enacted, each Member State will be required to have an investor compensation scheme, providing a minimum level of compensation (at least to the smaller investor) in the event that an investment firm is unable to meet its obligations to its clients. • Systems of redress In banking, Member States must ensure that the depositor's rights to compensation may be the subject of an action by the depositor against the deposit-guarantee scheme. A similar clause is proposed in the investor compensation scheme draft directive. In the area of consumer credit, the consumer has the right to pursue remedies against the grantor of the credit and Member States are required to adopt one of three alternative systems of surveillance, i. e. either to ensure that persons offering credit or arranging for credit obtain official authorisation or that these persons are subject to inspection or monitoring of their activities by an official body, or to promote the establishment of appropriate bodies to receive complaints and to provide information or advice to consumers in this regard. The proposal on cross-border credit transfers requires Member States to ensure that there are adequate and effective means for the settlement of disputes. In legal expenses insurance, the policy-holder must be explicitly informed in the event of a conflict of interest with the insurer, about his or her rights to have the free choice of a lawyer, and to have recourse, if necessary, to an arbitration procedure. Furthermore, the existing Community law in the field of financial services has addressed some aspects that indirectly affect consumer protection. These are the following: • A trustworthy financial services industry One of the main objectives of the financial services directives is to maintain the stability and the trustworthiness of the sector. All directives contribute to this goal. A series of stock market directives - many in fields where no national legislation previously existed - require that all important and price-sensitive information be rapidly supplied to the market. In addition, the directives on money laundering and insider trading have permitted the adoption of common sets of rules to ensure orderly financial markets. Measures in all three sectors require that senior staff and major shareholders of financial firms should be fit and proper persons of recognised probity and professional experience. A recent directive adopted in response to the collapse of the BCCI (Bank of Credit and Commerce International) imposed a further series of requirements to combat fraud. Financial institutions must not form part of a structure that is lacking in transparency and makes supervision more difficult: the head office and registered office must be in the same Member State and auditors must report serious problems to the competent authorities. Reference should also be made to the Community's competition rules, which are of crucial importance in safeguarding the interests of the consumer in the single financial market. • Strong financial institutions The smooth functioning of the mutual recognition and home country control principles, the corner-stones of the single market, is largely dependent on the mutual trust between national control authorities. A sufficient level of confidence could not have been reached without the creation of a harmonised basic set of prudential rules. For users and, in particular, for consumers it means that whatever institution they choose, the same minimum prudential rules will be followed. This is particularly important when financial services such as life assurance imply long term commitments. In all three sectors providers of the relevant financial services are subject to a formal authorisation procedure and to detailed and strict minimum capital requirements both initially and on an on-going basis. Firms that are not authorised may not provide the core services covered by the directives. • A wider choice of financial services and products One of the principal objectives of creating a single market in financial services has been to increase and diversify the choice of financial products offered to users. The principle is quite simple. Based in part on the "Cassis de Dijon" judgement4, any financial service benefiting from mutual recognition may, if it is legally provided in the home country, be offered in the host country, via a branch or on a cross-border basis, even if the service in question does not exist in the latter country or even if domestic institutions may not offer it. As a result, savings and insurance products are already being offered on markets where they were previously unavailable. • The pricing of financial services Users and in particular consumers look to the single market to bring them cheaper as well as better financial services. The financial services directives do not seek to interfere with the free determination of prices. Indeed the only direct intervention in this area has been in the insurance sector, where imposed and approved tariffs have been abandoned. Having removed this obstacle, the insurance directives have opened the way for more competition. Judgement of 20 February 1979, No 120/78, Rewe-Zentral AG, Rec. p. 649. FART II - CONSUMER CONCERNS IN CROSS^BORDERTRANSACTIONS The Community's legislative framework already provides all clients with a certain degree of protection, by imposing rules and obligations on the providers of financial services. However, as stated earlier, the Commission's practical experience of the operation of the single market is still rather limited. This is due in part to the fact that certain of the financial services directives have only recently entered into force. But it is also true that not all of the directives have been implemented in full and on time by the Member States. The Commission is determined to make every effort to ensure that the legislative commitments made by the Member States are fully honoured notably by making available details of each Member State's record in transposing directives into national law and taking legal action to secure the timely and correct implementation of the directives. Apart from the implications deriving from the failure to implement Community legislation in a timely and correct manner, a number of problems encountered by consumers have already been identified and reported to the Commission. The Commission is aware that this list is by no means exhaustive and that other problems are likely to arise in the future. This Green Paper is precisely aimed at focussing the debate on some of the current and future problems in order to elaborate the appropriate action plan to solve them. • The refusal of financial services to non-residents Some consumers have been refused financial services in another Member State on the grounds that they are not resident in or nationals of that State. Such "private" discrimination is deeply resented by European consumers and is apparently in total contradiction with the idea of a single market without frontiers. The Commission has, for example, been informed by many consumers that, in one Member State, a number of insurance companies refused to insure them or granted them less favorable contractual terms on the grounds that, as they came from certain EU countries, they entailed a higher risk for the company than others. The Commission is also aware that, in another Member State, certain credit institutions, allegedly for tax reasons, refuse to offer some banking services (current account, credit card, etc. ) to non residents. The main difficulty in dealing with such situations lies in the fact that, since contractual freedom is an essential principle of contract law, Community law cannot oblige financial institutions to accept clients, be they national or foreign. Consumers suffering discrimination can only address themselves to national courts. This is an important issue which the Commission is monitoring closely in co-operation with the Member States. • Difficulties in providing financial services in another Member State Host countries may still impose their domestic rules adopted in the interest of the general good, or falling within their residual competence (e. g. monetary policy). This may significantly reduce the range of services offered. For example, interest-bearing current accounts are not available in at least one Member State. Limitations of supply caused by the application of the general good clause are a matter of concern. The services of the Commission have published a draft communication5 inviting comments. It details the legal conditions under which general good provisions may still restrict the flow of banking services. A similar exercise is anticipated in relation to the insurance and securities sectors. Legal restrictions related to general good considerations dissuade foreign companies from offering their products abroad, and, by limiting choice, may therefore be detrimental to the consumer. The proportionality of such restrictions with the objective pursued must therefore be demonstrated. In the insurance sector, many complaints refer to difficulties in obtaining compulsory motor insurance cover from insurers based in another Member State. Insurers often justify their refusal on the ground that the system of compulsory motor insurance is too complex. This is partly due to the need to protect both the policy-holder and the victim of an accident. The arrangements put in place to ensure such protection (green card system, compulsory membership of guarantee funds) may make it less attractive to offer cross-border services. Furthermore, the obligation to appoint a fiscal representative and a local claims representative in the country of the risk often entails significant costs. The Commission is currently examining this issue in order to meet these concerns. It will also consider other consumer issues in the insurance sector. • Poor quality of the service offered and lack of information Consumers face difficulties in assessing and fully grasping the increasing variety and complexity of financial services. The Commission has been informed that some financial institutions, sometimes in breach of host country legislation, have offered, on a cross- border basis, complex financial services such as mortgage or consumer credit, without providing the consumers with sufficient information. For example, documents were not made available in the language of the consumer, amortisation tables were missing, and figures were presented in a misleading manner. Although the Commission cannot take any direct action against the companies or their intermediaries, the national authorities can do so in accordance with the terms of the directives and making use of the co operation with other supervisory authorities that has been developed. Draft Commission communication on freedom to provide services and the interest of the general good in the Second Banking Directive (OJ No C 291, 4. 11. 1995, p. 7). 9 Most complaints addressed to the Commission about the lack of information provided to the consumer on prices and conditions, the lack of professional advice and the difficulties in comparing various services are found in the field of banking, where the directives do not themselves impose consumer information requirements (except for consumer credit and - when the current proposal is adopted - for cross-border credit transfers). As a follow-up to its May 1995 report on the operation of the consumer credit directive6, the Commission is examining the current situation regarding customer information (both before and after the signing of a contract) in the credit sector with particular reference to mortgage credit, consumer credit and leasing. With regard to cross-border payments, and in particular cross-border credit transfers, the main problems reported by consumers - lack of full written information on conditions, double charging, excessive execution time and lack of adequate redress procedures - are tackled in the relevant proposal which is currently before Parliament and the Council and which, it is hoped, could be adopted before this Summer. The improvement of cross- border credit transfers and the introduction of a single currency will undoubtedly remove two of the main obstacles affecting the cross-border provision of financial and other services. The market should be more integrated and the existence of a single currency should facilitate comparisons for the consumer. As regards payment cards, user groups appear mainly concerned about the unsatisfactory implementation of the principles contained in the 1988 Commission recommendation on payment systems7, notably the rules defining the responsibility of the parties in the event of loss, theft and copying of a payment card. Consumers also call for greater transparency as regards the conditions for use of a payment card particularly when it is being used in a Member State other than that in which the consumer is resident. The Commission is examining the area of payment cards (including pre-paid cards) and other payment facilities (including home banking and cyber-payments), with a view to promoting an effective single market for such instruments, while also assuring the consumer better legal protection and clear and complete information. The Commission has already held initial consultations with its advisory groups on payment systems, one of which includes consumer representatives. Additional input into this debate is welcomed, with a view to further action. • Intermediaries Cases have been reported of "aggressive", sometimes illegal, actions by unregulated intermediaries, mainly in the field of banking and investment, often causing considerable distress and even hardship. Consumers seeking credit have been proposed seemingly attractive conditions by brokers representing foreign institutions. Such intermediaries took high advance fees, whilst the information given proved to be poor (for example, Commission report on the operation of directive 87/102/EEC for the approximation of the laws, regulations and administrative provisions of the Member States concerning consumer credit (COM(95) 117 final, 11. 5. 1995). Commission recommendation 88/590/EEC concerning payment systems and in particular the relationship between card holder and card issuer (OJ No L 317, 24. 11. 1988, p. 55). 10 credits proved to be much more complicated and expensive than was apparent at first intermediaries sell sight). There have also been other cases where unregulated commodities or commodity derivatives on a cross-border basis. The Commission is examining whether it would be appropriate to bring these instruments (commodities and commodities derivatives) within the scope of Community legislation, thus making such activities subject to authorisation and supervision throughout the Community. With the exception of actions falling within the consumer credit directive8, the activities of unregulated intermediaries are not within the scope of the secondary Community legislation: Member States are therefore free to regulate them as they see fit in order to protect the consumer, provided that they respect the Treaty rules on freedom of establishment and free provision of services. But it is also clear that such intermediaries are in fact often operating in contravention of the existing national laws. Problems of illegal activity and fraud are outside the Community's competence and can only be tackled by the national authorities and national courts. The Commission is, however, currently examining the question of unregulated credit intermediaries to assess what further action of a legislative or non-legislative nature is called for. • Difficulties in the enforcement of financial contracts A large number of complaints and petitions lodged with the Commission and the European Parliament refer to the enforcement of a contract (both national and cross- border) and the interpretation of the terms of the contract. Where the problem relates to the execution or the interpretation of a contract, neither the Commission nor the Parliament has the competence to determine the rights and duties of contracting parties. This remains the responsibility of the national courts. • Lack of harmonisation in taxation Consumers frequently complain that the advantages of "cross-border shopping" (price and contractual terms) can be offset by the fact that the taxation regime remains that of the country where they have their residence. For example, a consumer who, attracted by advantageous price and contractual conditions, subscribes to a life-assurance contract abroad will still be subject to the tax regime of his/her country of residence. The whole operation can therefore become far less attractive. Furthermore, in some countries, this consumer will not be allowed to deduct the premiums for income tax purposes, because the contract has been passed with a non-established company. Indeed the Court of Justice has stated9 that a Member State may refuse the deductibility of life insurance premiums paid to a non-established insurer in order to maintain the coherence of its tax system. However, a recent ruling appears to qualify the scope of that judgement by recognising the right of a borrower to obtain social advantages connected with bank loans even when the loan is contracted with a non-established credit institution10. The consumer credit directive requires Member States to ensure either that persons offering credit or acting as an intermediary are officially authorised or controlled and supervised in their home country, or that there are appropriate channels for consumers to obtain information and make complaints. Judgement of 28 January 1992 in Case No C-204/90 Bachman, ECR 92 p. 249. Judgement of 14 November 1995 in Case No C-484/93 Svensson-Gustavsson (not yet published). 9 10 11 Progress on the tax front has been limited. As long as unanimity is required in the Council on tax questions, there is little prospect of resolving these fiscal obstacles to the operation of the single market for financial services. • Specific problems in the field of compulsory civil liability motor insurance Some of the complaints which have been addressed to the Commission and the European Parliament deal with specific problems encountered by victims involved in a cross-border traffic accident. In addition to those cases referring to the interpretation of the terms of the contract. There are broadly two types of concern. First, there are traffic accidents that fall within the scope of the green card system and the motor insurance directives, i. e. accidents caused by a car visiting another Member State. These arrangements are designed to help victims to obtain compensation and appear to work fairly well. Secondly, there are traffic accidents that are not covered by the green card system, i. e. those suffered by a car, its passengers or any other persons visiting another Member State, and caused by a local vehicle. The problems faced by such victims in obtaining adequate compensation within a reasonable time (distance, language problems, unfamiliar legal and court procedures) have prompted the European Parliament to adopt a resolution asking for specific measures. The Commission has already informed the European Parliament that it is considering appropriate action in order to tackle some of the problems encountered by victims in obtaining compensation. In addition, the Commission is presently examining the compatibility with Community legislation of compulsory uniform "bonus-malus" tarification systems. - 12 wmMmMimMÊ^ÊJSm^Ê^. The single market in financial services is still at a relatively early stage of development. For banking it has been in operation for three years, for insurance one and a half years and only a few months for investment services. It is therefore difficult to draw definitive conclusions at this stage. The 1996 Study currently underway to assess the early results and impact of the single market could reveal gaps to be filled or problems to be resolved. The results of this study will be available later this year. Where gaps or problems are encountered, the Commission will consider what response is called for including, where necessary, new legislation or changes to existing texts. The distance selling of financial services is expanding rapidly. It is an area that merits special attention. A proposal for a directive on distance selling in general has been tabled with a view to laying down simple and clear rules which would apply to all new techniques for selling products and/or services at a distance. In order to deal with this rather specific situation, the Commission's original proposal contained a three-level mechanism: this set out a requirement for prior information before the conclusion of a contract, written confirmation of its content and a cooling-off period of 7 days. After several rounds of discussions within the Community institutions, the Commission decided to support the exclusion of financial services from this directive, as decided by the Council, and committed itself to a specific examination of this matter. A number of issues are to be considered. They include the following. The distance selling of financial products to consumers implies a special need for information. In this context, special attention will be paid to the clarity and adequacy of information given to consumers before and after the conclusion of the contract. The need for written confirmation will be assessed in this context. Another important issue will be the granting of cooling-off periods in financial services. In the field of life assurance, Community law already gives the consumer the right to withdraw from a contract within a specified number of days. It will have to be examined whether the concept of the cooling-off period should be extended to other financial services, such as non-life insurance and certain banking services. It is already accepted in the common position on the proposal for a directive on distance selling that the right of withdrawal cannot operate where the price of goods or services "is dependent on fluctuations in the financial market which cannot be controlled by the supplier" or if performance has begun, with the consumer's agreement, before the end of the seven-day period. Furthermore, the issue of inertia selling (supply without the explicit consent of the customer) is currently not addressed in the existing financial services legislation. Nor is the question of the unsolicited use of certain means of communication at a distance (such as automatic calling machines and facsimile machines) at present covered by the existing financial services legislation. For this reason, it will have to be examined to what extent the offering of financial services to consumers without their prior consent gives rise to particular problems. 13 The scale and complexity of distance selling appear to be rapidly increasing. In the insurance field, distance selling and direct marketing are extending to all classes of non- life and life insurance. In remote banking, the trend is increasingly towards computer banking, with cyber-money and electronic purses already available. In the securities sector computerised trading, the creation of wholly electronic markets with electronic clearing and settlement and remote market access may ultimately revolutionise securities trading. The use of distance selling of financial services is currently offered and concluded primarily at domestic level. However, it is anticipated that cross-border business could expand rapidly, making use of the new opportunities offered by the Information Society. The benefits of the single market for consumers should be enhanced with the advent of new electronic services, given the increased competitive environment and therefore improved choice and value for money that will result. However, such benefits can only come about if all clients - including consumers - and suppliers can place their trust in the underlying regulatory framework. Although the sector is still at an embryonic level of development, the future for European financial services with these new communications possibilities could be very promising and the benefits to consumers could be significant. In order to ensure that these benefits are indeed secured, the Commission, in discussion with interested parties, will continue to follow closely all regulatory and market developments affecting consumers as well as consumers' specific needs in this important field. The Commission wants to encourage innovations in distance selling methods that would benefit consumers, businesses and all other clients. The need for any regulatory action will have to be properly assessed. Financial services, whether or not sold at a distance, are already covered by Community rules which provide consumer protection. In some cases (for example, most of the directives on life and non-life insurance, banking and UCITS), the legislation is already implemented by all Member States and its effects are beginning to be felt. In other cases, however, certain Member States are still implementing the legislation, with the result that its impact (notably in relation to the investment service directive) is still largely unknown. The Commission therefore considers that it is opportune at present to examine the position of consumers with regard to the development of distance selling. This does not mean that action, including the possibility of binding legislation, is ruled out. The Commission is committed to ensuring that consumers of financial services enjoy, when buying at a distance, a level of protection which is equivalent to the one they receive when purchasing other goods and services. In order to assess clearly what problems might need to be addressed and how best to tackle them, the Commission invites comment on the present and anticipated development of distance selling of financial services. This should allow the Commission to assess new market possibilities for the industry concerned and potential risks for the consumer and to consider whether and if so what further initiatives, including legislative action, are called for. 14 CONCLUSION This Green Paper demonstrates that the financial services directives already make some provision for consumer protection. However more may need to be done, given the problems already identified and the expected developments in the cross-border provision of financial services. The Commission also wishes to engage in a wide-ranging debate with all interested parties. It welcomes comment about the issues discussed in this Green Paper, in order to assess the need for further initiatives. Comment should focus on those issues which call for Community action: • • • to what extent are consumer interests already adequately taken care of under information, Community and national law, for example as regards consumer transparency, legal protection and redress mechanisms? to what extent does existing legislation provide an adequate level of consumer protection in the specific case of the distance selling of financial services? are consumer interests or the operation of the single market prejudiced by differing national consumer protection standards? • what are the obstacles preventing consumers from fully benefiting from the single market in financial services? • what other major consumer concerns not dealt with in this Green Paper should the Commission be made aware of? • does the introduction of new technologies and new marketing techniques call for additional consumer protection rules in the area of financial services? Responses to this Green Paper should be made in writing no later than 15 October 1996 to: The Director General - DG XV European Commission Rue de la Loi 200 B- 1049 Brussels Fax: (+32 2) 295. 65. 00 E-mail: John. MOGG(5)DG 15. cec. be In addition, the Commission will be organising a hearing over the next few months to permit interested parties to discuss the issues raised. 15 ISSN 0254-1475 COM(96) 209 final DOCUMENTS EN 09 10 Catalogue number : CB-CO-96-248-EN-C ISBN 92-78-04530-6 Office for Official Publications of the European Communities L-2985 Luxembourg

Proposal for a COUNCIL REGULATION (EC) extending Regulation (EC) No 3066/95 establishing certain concessions in the form of Community tariff quotas for certain agricultural products and providing for the adjustment, as an autonomous and transitional measure, of certain agricultural concessions provided for in the Europe Agreements to take account of the Agreement on Agriculture concluded during the Uruguay Round of multilateral trade negotiations

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 22. 05. 1996 COM(96) 221 final 96/0136 (ACQ Proposal for a COUNCIL REGULATION q y> extending Regulation (EC) No 3066/95 establishing certain concessions in the form of Community tariff quotas for certain agricultural products and providing for the adjustment, as an autonomous and transitional measure, of certain agricultural concessions provided for in the Europe Agreements to take account of the Agreement on Agriculture concluded during the Uruguay Round of multilateral trade negotiations (presented by the Commission) EXPLANATORY MEMORANDUM 1. In accordance with its obligations under the Agreement on Agriculture concluded during the Uruguay Round of multilateral trade negotiations, the Community replaced variable agricultural levies and other agricultural non-tariff barriers with fixed customs duties from 1 July 1995. This threatens to reduce the value of the agricultural concessions accorded under the Europe Agreements (Hungary, Poland, Czech Republic, Slovakia, Bulgaria and Romania), and in particular of preferential access to the Community market for certain agricultural products originating in the countries concerned. In order to smooth the transition to the system applicable from 1 July 1995 and maintain the level of preferences accorded, the agricultural concessions provided for in the Europe Agreements need to be adjusted. 2. At the same time, Articles 76, 102 and 128 of the Act of Accession require Austria, Finland and Sweden to apply, from 1 January 1995, the provisions of the preferential agreements concluded by the Community with certain non-member countries, among them Bulgaria, the Czech Republic, Slovakia, Hungary, Poland •* and Romania. 3. On 6 March 1995 the Council adopted negotiating directives for the conclusion of additional protocols to the Europe Agreements, notably with regard to agricultural products. These negotiating directives provide for the adjustment of the agricultural concessions accorded under the Europe Agreements, taking account not only of the Community's obligations under the Agreement on Agriculture concluded during the Uruguay Round (see paragraph 1 above) but of the consequences of the Act of Accession of Austria, Finland and Sweden (see paragraph 2 above). 4. Once these negotiations have been concluded, interim Additional Protocols relating solely to trade will be applied pending ratification of the Additional Protocols by all the parties concerned. In view of the time available, however, ^ there is no way that the interim Additional Protocols can enter into force on 1 July 1996. 5. On 21 December 1995 the Council adopted a series of autonomous measures aimed at maintaining the level of preferences accorded under the Europe Agreements and taking account of pre-existing agricultural trade arrangements between the new Member States and the associated countries of Central and Eastern Europe. These measures apply until 30 June 1996. 6. This proposal is aimed at extending to 31 December 1996 the measures adopted by the Council on 21 December 1995. COUNCIL REGULATION (EC) No. /. of extending Regulation (EC) No 3066/95 establishing certain concessions in the form of Community tariff quotas for certain agricultural products and providing for the adjustment, as an autonomous and transitional measure, of certain agricultural concessions provided for in the Europe Agreements to take account of the Agreement on Agriculture concluded during the Uruguay Round of multilateral trade negotiations THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 113 thereof, Having regard to the proposal from the Commission, Whereas the measures provided for in Council Regulation (EC) No 3066/95 establishing certain concessions in the form of Community tariff quotas for certain agricultural products and providing for the adjustment, as an autonomous and transitional measure, of certain agricultural concessions provided for in the Europe Agreements to take account of the Agreement on Agriculture concluded during the Uruguay Round of multilateral trade negotiations expire on 30 June 1996; Whereas it was planned to replace those measures with interim Additional Protocols to the Europe Agreements; whereas those Protocols cannot enter into force on 1 July 1996; whereas Regulation (EC) No 3066/95 should therefore be extended to 31 December 1996, HAS ADOPTED THIS REGULATION: OJ No L 328, 30. 12. 1995, p. 31. Article 1 In Article 11 of Regulation (EC) No 3066/95, the second sentence is hereby replaced by the following: "It shall apply from 1 January to 31 December 1996. " Article 2 This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. It shall apply from 1 July 1996. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council The President -T ISSN 0254-1475 COM(96) 221 final DOCUMENTS EN 02 11 03 Catalogue number : CB-CO-96-233-EN-C ISBN 92-78-04231-5 Office for Official Publications of the European Communities L-2985 Luxembourg

REPORT FROM THE COMMISSION TO THE COUNCIL AND TO PARLIAMENT on the rate of utilization of European Investment Bank loans for projects in central and eastern European countries (Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Bulgaria, Latvia, Estonia, Lithuania and Albania) (from 1.7.1995 to 31.12.1995)

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 21. 05. 1996 COM(96) 215 final REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT on the rate of utilization of European Investment Bank loans for projects in: A. central and eastern European countries: Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Bulgaria, Estonia, Latvia, Lithuania and Albania (from 1. 7. 1995 to 31. 12. 1995) B. South Africa (from 15. 6. 1995 to 31. 12. 1995) and C. Latin American and Asian countries with which the Community has concluded cooperation agreements (from 23. 8. 1995 to 22. 2. 1996) A. KKI'ORT FROM THE COMMISSION TO THK COUNCIL AND TO PARLIAMENT on the rate of utilization of European Investment Bank loans for projects in central and eastern European countries (Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Bulgaria, Latvia, Estonia, Lithuania and Albania) (from 1. 7. 1995 to 31. 12. 1995) 1. Introduction Council Decision 93/696/EC of 13 December 1993 (OJNoL321 of 23. 12. 1993) grants in full the Community guarantee to the European Investment Bank (EIB) against losses under loans for projects in central and eastern Europe for a maximum loan ceiling of ECU 3 000 million over an indicative three-year period. in respect of The loan guarantee ceiling includes the provisions adopted investments in Estonia, Latvia and Lithuania in Council Decision 93/166/EC of 15 March 1993. The Council Decision requires the Commission to draw up a six-monthly report on the situation regarding loans signed under the guarantee. The present report covers the period from 1 July to 31 December 1995. 2. EIB lending 2. 1 During the second half of 1995 the Bank signed 13 loans financed out of own resources for a total of ECU 843 million in central and eastern Europe. The list of operations signed during the second half of 1995 and the description of the projects are given in the table below. 2. 2 At 31 December 1995 the loan contracts signed by the Bank under the current mandate amounted to ECU 1 894 million. Operations signed in the period 1 July-31 December 1995 on the basis of the Council Decision of 13 December 1993 (93/696/EC) CENTRAL AND EASTERN EUROPE COUNTRY PROJECT NAME ALBANIA EAST-WEST ROAD CORRIDOR BULGARIA TRANSIT ROADS II CZECH Rep. CZECH E ROADS C'EZ I (POWER PLANT IMPROVEMENTS) - Tranche A - Tranche B HUNGARY TELECOMMUNICATIONS II - Tranche B FINANCIAL SECTOR Global Loan LITHUANIA PORT OF KLAIPEDA DATE OF SIGNATURE 08. 12. 1995 20. 07. 1995 13. 12. 1995 14. 12. 1995 14. 12. 1995 22. 11. 1995 22. 11. 1995 03. 07. 1995 POLAND FINANCIAL SECTOR Global Loan 07. 12. 1995 POLISH RAILWAYS III (PKP III) 18. 12. 1995 SLOVAKIA STATE BANK APEX Global Loan II 18. 07. 1995 ROMANIA CONSTANTA PORT REHABILITATION 18. 12. 1995 HEAT AND POWER REHABILITATION 31. 10. 1995 1 TOTAL ! u_. _„ AMOUNT SIGNED (ECUm) 24 60 60 100 100 50 150 14 100 40 50 35 60 843 DESCRIPTION Rehabilitation and improvement of some 94 km of roads along the main East-West road corridor Rehabilitation and reconstruction of some 900 km of main transit roads Improvements to the road network Installation of desulphurization equipment at six thermal power stations Expansion and modernization of the telecommunications network Financing of industry, infrastructure and tourism projects through selected financial intermediaries Construction of a small container terminal and improvements to the roll-on/roll-off terminal Financing of industry, infrastructure and tourism projects through selected financial intermediaries or direct operations Rehabilitation and upgrading of the first section of the Warsaw-Terespol TEN railway line Financing of term credit operations in industry, tourism and related services, and environmental protection and energy- saving Repair of stonn and accident damage to and completion of breakwaters Rehabilitation and modernization of heat and power production and electricity transmission and distribution facilities B. REPORT FROM THK COMMISSION TO THK COUNCIL AND TO PARLIAMENT on the rate of utilization of European Investment Bank loans for projects in South Africa (from 15. 6. 1995 to 31. 12. 1995) 1. Introduction Council Decision 95/207/EC of 1 June 1995 (OJ No L 13 1 of 15. 6. 1995) grants in full the Community guarantee to the European Investment Bank (EIB) against losses under loans for investment projects in South Africa for a maximum loan ceiling of ECU 300 million over an indicative two-year period. The Council Decision requires the Commission to draw up a six-monthly report on the situation regarding loans signed under the guarantee. The present report covers the period from 15 June to 31 December 1995. 2. EIB lending At 31 December 1995 the EIB signed loans financed out of own resources for a total of ECU 45 million in South Africa. The list of operations signed during the second half of 1995 and the description of the projects are given in the table below. Operations signed in the period 15 June-31 December 1995 on the basis of the Council Decision of 1 June 1995 (95/207/EC) SOUTH AFRICA PROJECT NAME DATE OF SIGNATURE AMOUNT SIGNED (ECUm) DESCRIPTION Development Bank of Southern Africa Infrastructure Global Loan 28. 12. 1995 30 Global loan to provide funds for financing of small and medium-scale projects primarily in the water and sanitation sectors Industrial Development Corporation Global Loan 21. 12. 1995 15 Global loan to provide funds for financing of small and medium-scale projects in the manufacturing, transport, agro-industry, tourism and mining sectors TOTAL 45 (. RKPORT FROM THK COMMISSION TO THK COUNCIL AND TO PARLIAMENT on the rate of utilization of European Investment Bank loans for projects of mutual interest in countries of Latin America and Asia that have concluded cooperation agreements with the Community (from 23. 8. 1995 to 22. 2. 1996) L Introduction Council Decision 93/115/EEC of 15 February 1993 (OJ No L 45 of 23. 2. 1993) grants in full the Community guarantee to the European Investment Bank (EIB) against losses under loans for projects of mutual interest in certain third countries with which the Community has concluded cooperation agreements The Decision sets a limit of ECU 250 million per year, for a three-year period The list of eligible countries is given in the annex. The Council Decision requires the Commission to draw up a six-monthly report on the rate of take-up of loans under the guarantee. The present report covers the period from 23. 8. 1995 to 22. 2. 1996. 2. EIB lending 2. 1 During the second half of the last year of the mandate, the EIB signed loans financed out of own resources for a total of ECU 155 million in Argentina, China and Pakistan. During the same period, the EIB Board of Directors approved a loan of ECU 38 million for a project in Colombia. The list of operations approved and/or signed during the period and the description of the projects are given in the table below. 2. 2 In all, under the mandate which expired on 22 February 1996, the EIB signed loan contracts for a total of ECU 607 million. Loan contracts for the remaining ECU 143 million will be signed shortly. They concern the following projects Country Argentina Brazil Colombia Indonesia^ Pakistan^ Project name/sector "Mercosur road" (transport) "CESAN -Spirito Santo" (water treatment) "Eldorado Airport" (transport) "CLIPAN" (leasing company) "SAI HYDRO" (energy) Total (ECU m) 45 40 38 8 12 (*) Allocated under COM(95)507 of 30. 10. 1995). the "ALA -Global authorization" of ECU 20m (see previous report, Operations signed or approved by the EIB Board of Directors between 23 August 1995 and 22 February 1996 (93/115/EEC) LATIN AMERICA AND ASIA COUNTRY PROJECT NAME ARGENTINA AGUAS ARGENTINAS Date of approval 7. 11. 1995 Date of signature 1. 12. 1995 Amount (ECU m) 70 AELINCO 25. 7. 1995 14. 12. 1995 CHINA COLOMBIA PAKISTAN TOTAL PING HU OIL AND GAS DEVELOPMENT ELDORADO AIRPORT GHAZI-BAROTHA HYDRO POWER 12. 12. 1995 18. 12. 95 12. 12. 1995 12. 12. 1995 Not yet signed 14 12. 1995 55 38 24 193 DESCRIPTION New waste-water collection and treatment facilities in the northern part of Greater Buenos Aires Construction of facilities for the treatment and disposal of hazardous waste in the Province of Buenos Aires Development of Ping Hu oil and gas field. transmission and distribution of gas Build, operate and transfer concession for the second runway at Eldorado Airport Design, engineering work and construction of hydroelectric power station on the river Indus ANNEX List of developing countries in Latin America and Asia with which the Community had concluded cooperation agreements at the time the EIB was given the mandate L LATIN AMERICA Argentina Brazil Chile Mexico Paraguay Uruguay Andean Group (Bolivia, Colombia, Ecuador, Pern, Venezuela) Central American countries (Costa Rica, Guatemala, Honduras, Nicaragua, Panama, Salvador) 2. ASIA Bangladesh China India Macao Mongolia Pakistan Sri Lanka ASEAN Group (Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand) ISSN 0254-1475 COM(96) 215 final DOCUMENTS EN 11 Catalogue number : CB-CO-96-226-EN-C ISBN 92-78-04154-8 Office for Official Publications of the European Communities L-298S Luxembourg 1

REPORT FROM THE COMMISSION TO THE COUNCIL AND TO PARLIAMENT on the rate of utilization of European Investment Bank loans for projects of mutual interest in countries of Latin America and Asia that have concluded cooperation agreements with the Community (from 23.8.1995 to 22.2.1996)

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 21. 05. 1996 COM(96) 215 final REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT on the rate of utilization of European Investment Bank loans for projects in: A. central and eastern European countries: Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Bulgaria, Estonia, Latvia, Lithuania and Albania (from 1. 7. 1995 to 31. 12. 1995) B. South Africa (from 15. 6. 1995 to 31. 12. 1995) and C. Latin American and Asian countries with which the Community has concluded cooperation agreements (from 23. 8. 1995 to 22. 2. 1996) A. KKI'ORT FROM THE COMMISSION TO THK COUNCIL AND TO PARLIAMENT on the rate of utilization of European Investment Bank loans for projects in central and eastern European countries (Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Bulgaria, Latvia, Estonia, Lithuania and Albania) (from 1. 7. 1995 to 31. 12. 1995) 1. Introduction Council Decision 93/696/EC of 13 December 1993 (OJNoL321 of 23. 12. 1993) grants in full the Community guarantee to the European Investment Bank (EIB) against losses under loans for projects in central and eastern Europe for a maximum loan ceiling of ECU 3 000 million over an indicative three-year period. in respect of The loan guarantee ceiling includes the provisions adopted investments in Estonia, Latvia and Lithuania in Council Decision 93/166/EC of 15 March 1993. The Council Decision requires the Commission to draw up a six-monthly report on the situation regarding loans signed under the guarantee. The present report covers the period from 1 July to 31 December 1995. 2. EIB lending 2. 1 During the second half of 1995 the Bank signed 13 loans financed out of own resources for a total of ECU 843 million in central and eastern Europe. The list of operations signed during the second half of 1995 and the description of the projects are given in the table below. 2. 2 At 31 December 1995 the loan contracts signed by the Bank under the current mandate amounted to ECU 1 894 million. Operations signed in the period 1 July-31 December 1995 on the basis of the Council Decision of 13 December 1993 (93/696/EC) CENTRAL AND EASTERN EUROPE COUNTRY PROJECT NAME ALBANIA EAST-WEST ROAD CORRIDOR BULGARIA TRANSIT ROADS II CZECH Rep. CZECH E ROADS C'EZ I (POWER PLANT IMPROVEMENTS) - Tranche A - Tranche B HUNGARY TELECOMMUNICATIONS II - Tranche B FINANCIAL SECTOR Global Loan LITHUANIA PORT OF KLAIPEDA DATE OF SIGNATURE 08. 12. 1995 20. 07. 1995 13. 12. 1995 14. 12. 1995 14. 12. 1995 22. 11. 1995 22. 11. 1995 03. 07. 1995 POLAND FINANCIAL SECTOR Global Loan 07. 12. 1995 POLISH RAILWAYS III (PKP III) 18. 12. 1995 SLOVAKIA STATE BANK APEX Global Loan II 18. 07. 1995 ROMANIA CONSTANTA PORT REHABILITATION 18. 12. 1995 HEAT AND POWER REHABILITATION 31. 10. 1995 1 TOTAL ! u_. _„ AMOUNT SIGNED (ECUm) 24 60 60 100 100 50 150 14 100 40 50 35 60 843 DESCRIPTION Rehabilitation and improvement of some 94 km of roads along the main East-West road corridor Rehabilitation and reconstruction of some 900 km of main transit roads Improvements to the road network Installation of desulphurization equipment at six thermal power stations Expansion and modernization of the telecommunications network Financing of industry, infrastructure and tourism projects through selected financial intermediaries Construction of a small container terminal and improvements to the roll-on/roll-off terminal Financing of industry, infrastructure and tourism projects through selected financial intermediaries or direct operations Rehabilitation and upgrading of the first section of the Warsaw-Terespol TEN railway line Financing of term credit operations in industry, tourism and related services, and environmental protection and energy- saving Repair of stonn and accident damage to and completion of breakwaters Rehabilitation and modernization of heat and power production and electricity transmission and distribution facilities B. REPORT FROM THK COMMISSION TO THK COUNCIL AND TO PARLIAMENT on the rate of utilization of European Investment Bank loans for projects in South Africa (from 15. 6. 1995 to 31. 12. 1995) 1. Introduction Council Decision 95/207/EC of 1 June 1995 (OJ No L 13 1 of 15. 6. 1995) grants in full the Community guarantee to the European Investment Bank (EIB) against losses under loans for investment projects in South Africa for a maximum loan ceiling of ECU 300 million over an indicative two-year period. The Council Decision requires the Commission to draw up a six-monthly report on the situation regarding loans signed under the guarantee. The present report covers the period from 15 June to 31 December 1995. 2. EIB lending At 31 December 1995 the EIB signed loans financed out of own resources for a total of ECU 45 million in South Africa. The list of operations signed during the second half of 1995 and the description of the projects are given in the table below. Operations signed in the period 15 June-31 December 1995 on the basis of the Council Decision of 1 June 1995 (95/207/EC) SOUTH AFRICA PROJECT NAME DATE OF SIGNATURE AMOUNT SIGNED (ECUm) DESCRIPTION Development Bank of Southern Africa Infrastructure Global Loan 28. 12. 1995 30 Global loan to provide funds for financing of small and medium-scale projects primarily in the water and sanitation sectors Industrial Development Corporation Global Loan 21. 12. 1995 15 Global loan to provide funds for financing of small and medium-scale projects in the manufacturing, transport, agro-industry, tourism and mining sectors TOTAL 45 (. RKPORT FROM THK COMMISSION TO THK COUNCIL AND TO PARLIAMENT on the rate of utilization of European Investment Bank loans for projects of mutual interest in countries of Latin America and Asia that have concluded cooperation agreements with the Community (from 23. 8. 1995 to 22. 2. 1996) L Introduction Council Decision 93/115/EEC of 15 February 1993 (OJ No L 45 of 23. 2. 1993) grants in full the Community guarantee to the European Investment Bank (EIB) against losses under loans for projects of mutual interest in certain third countries with which the Community has concluded cooperation agreements The Decision sets a limit of ECU 250 million per year, for a three-year period The list of eligible countries is given in the annex. The Council Decision requires the Commission to draw up a six-monthly report on the rate of take-up of loans under the guarantee. The present report covers the period from 23. 8. 1995 to 22. 2. 1996. 2. EIB lending 2. 1 During the second half of the last year of the mandate, the EIB signed loans financed out of own resources for a total of ECU 155 million in Argentina, China and Pakistan. During the same period, the EIB Board of Directors approved a loan of ECU 38 million for a project in Colombia. The list of operations approved and/or signed during the period and the description of the projects are given in the table below. 2. 2 In all, under the mandate which expired on 22 February 1996, the EIB signed loan contracts for a total of ECU 607 million. Loan contracts for the remaining ECU 143 million will be signed shortly. They concern the following projects Country Argentina Brazil Colombia Indonesia^ Pakistan^ Project name/sector "Mercosur road" (transport) "CESAN -Spirito Santo" (water treatment) "Eldorado Airport" (transport) "CLIPAN" (leasing company) "SAI HYDRO" (energy) Total (ECU m) 45 40 38 8 12 (*) Allocated under COM(95)507 of 30. 10. 1995). the "ALA -Global authorization" of ECU 20m (see previous report, Operations signed or approved by the EIB Board of Directors between 23 August 1995 and 22 February 1996 (93/115/EEC) LATIN AMERICA AND ASIA COUNTRY PROJECT NAME ARGENTINA AGUAS ARGENTINAS Date of approval 7. 11. 1995 Date of signature 1. 12. 1995 Amount (ECU m) 70 AELINCO 25. 7. 1995 14. 12. 1995 CHINA COLOMBIA PAKISTAN TOTAL PING HU OIL AND GAS DEVELOPMENT ELDORADO AIRPORT GHAZI-BAROTHA HYDRO POWER 12. 12. 1995 18. 12. 95 12. 12. 1995 12. 12. 1995 Not yet signed 14 12. 1995 55 38 24 193 DESCRIPTION New waste-water collection and treatment facilities in the northern part of Greater Buenos Aires Construction of facilities for the treatment and disposal of hazardous waste in the Province of Buenos Aires Development of Ping Hu oil and gas field. transmission and distribution of gas Build, operate and transfer concession for the second runway at Eldorado Airport Design, engineering work and construction of hydroelectric power station on the river Indus ANNEX List of developing countries in Latin America and Asia with which the Community had concluded cooperation agreements at the time the EIB was given the mandate L LATIN AMERICA Argentina Brazil Chile Mexico Paraguay Uruguay Andean Group (Bolivia, Colombia, Ecuador, Pern, Venezuela) Central American countries (Costa Rica, Guatemala, Honduras, Nicaragua, Panama, Salvador) 2. ASIA Bangladesh China India Macao Mongolia Pakistan Sri Lanka ASEAN Group (Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand) ISSN 0254-1475 COM(96) 215 final DOCUMENTS EN 11 Catalogue number : CB-CO-96-226-EN-C ISBN 92-78-04154-8 Office for Official Publications of the European Communities L-298S Luxembourg 1

REPORT FROM THE COMMISSION TO THE COUNCIL AND TO PARLIAMENT on the rate of utilization of European Investment Bank loans for projects in South Africa (from 15.6.1995 to 31.12.1995)

http://publications.europa.eu/resource/cellar/e9cf814e-0d5f-4915-9c72-673890150c7c

eng

COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 21. 05. 1996 COM(96) 215 final REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT on the rate of utilization of European Investment Bank loans for projects in: A. central and eastern European countries: Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Bulgaria, Estonia, Latvia, Lithuania and Albania (from 1. 7. 1995 to 31. 12. 1995) B. South Africa (from 15. 6. 1995 to 31. 12. 1995) and C. Latin American and Asian countries with which the Community has concluded cooperation agreements (from 23. 8. 1995 to 22. 2. 1996) A. KKI'ORT FROM THE COMMISSION TO THK COUNCIL AND TO PARLIAMENT on the rate of utilization of European Investment Bank loans for projects in central and eastern European countries (Poland, Hungary, the Czech Republic, the Slovak Republic, Romania, Bulgaria, Latvia, Estonia, Lithuania and Albania) (from 1. 7. 1995 to 31. 12. 1995) 1. Introduction Council Decision 93/696/EC of 13 December 1993 (OJNoL321 of 23. 12. 1993) grants in full the Community guarantee to the European Investment Bank (EIB) against losses under loans for projects in central and eastern Europe for a maximum loan ceiling of ECU 3 000 million over an indicative three-year period. in respect of The loan guarantee ceiling includes the provisions adopted investments in Estonia, Latvia and Lithuania in Council Decision 93/166/EC of 15 March 1993. The Council Decision requires the Commission to draw up a six-monthly report on the situation regarding loans signed under the guarantee. The present report covers the period from 1 July to 31 December 1995. 2. EIB lending 2. 1 During the second half of 1995 the Bank signed 13 loans financed out of own resources for a total of ECU 843 million in central and eastern Europe. The list of operations signed during the second half of 1995 and the description of the projects are given in the table below. 2. 2 At 31 December 1995 the loan contracts signed by the Bank under the current mandate amounted to ECU 1 894 million. Operations signed in the period 1 July-31 December 1995 on the basis of the Council Decision of 13 December 1993 (93/696/EC) CENTRAL AND EASTERN EUROPE COUNTRY PROJECT NAME ALBANIA EAST-WEST ROAD CORRIDOR BULGARIA TRANSIT ROADS II CZECH Rep. CZECH E ROADS C'EZ I (POWER PLANT IMPROVEMENTS) - Tranche A - Tranche B HUNGARY TELECOMMUNICATIONS II - Tranche B FINANCIAL SECTOR Global Loan LITHUANIA PORT OF KLAIPEDA DATE OF SIGNATURE 08. 12. 1995 20. 07. 1995 13. 12. 1995 14. 12. 1995 14. 12. 1995 22. 11. 1995 22. 11. 1995 03. 07. 1995 POLAND FINANCIAL SECTOR Global Loan 07. 12. 1995 POLISH RAILWAYS III (PKP III) 18. 12. 1995 SLOVAKIA STATE BANK APEX Global Loan II 18. 07. 1995 ROMANIA CONSTANTA PORT REHABILITATION 18. 12. 1995 HEAT AND POWER REHABILITATION 31. 10. 1995 1 TOTAL ! u_. _„ AMOUNT SIGNED (ECUm) 24 60 60 100 100 50 150 14 100 40 50 35 60 843 DESCRIPTION Rehabilitation and improvement of some 94 km of roads along the main East-West road corridor Rehabilitation and reconstruction of some 900 km of main transit roads Improvements to the road network Installation of desulphurization equipment at six thermal power stations Expansion and modernization of the telecommunications network Financing of industry, infrastructure and tourism projects through selected financial intermediaries Construction of a small container terminal and improvements to the roll-on/roll-off terminal Financing of industry, infrastructure and tourism projects through selected financial intermediaries or direct operations Rehabilitation and upgrading of the first section of the Warsaw-Terespol TEN railway line Financing of term credit operations in industry, tourism and related services, and environmental protection and energy- saving Repair of stonn and accident damage to and completion of breakwaters Rehabilitation and modernization of heat and power production and electricity transmission and distribution facilities B. REPORT FROM THK COMMISSION TO THK COUNCIL AND TO PARLIAMENT on the rate of utilization of European Investment Bank loans for projects in South Africa (from 15. 6. 1995 to 31. 12. 1995) 1. Introduction Council Decision 95/207/EC of 1 June 1995 (OJ No L 13 1 of 15. 6. 1995) grants in full the Community guarantee to the European Investment Bank (EIB) against losses under loans for investment projects in South Africa for a maximum loan ceiling of ECU 300 million over an indicative two-year period. The Council Decision requires the Commission to draw up a six-monthly report on the situation regarding loans signed under the guarantee. The present report covers the period from 15 June to 31 December 1995. 2. EIB lending At 31 December 1995 the EIB signed loans financed out of own resources for a total of ECU 45 million in South Africa. The list of operations signed during the second half of 1995 and the description of the projects are given in the table below. Operations signed in the period 15 June-31 December 1995 on the basis of the Council Decision of 1 June 1995 (95/207/EC) SOUTH AFRICA PROJECT NAME DATE OF SIGNATURE AMOUNT SIGNED (ECUm) DESCRIPTION Development Bank of Southern Africa Infrastructure Global Loan 28. 12. 1995 30 Global loan to provide funds for financing of small and medium-scale projects primarily in the water and sanitation sectors Industrial Development Corporation Global Loan 21. 12. 1995 15 Global loan to provide funds for financing of small and medium-scale projects in the manufacturing, transport, agro-industry, tourism and mining sectors TOTAL 45 (. RKPORT FROM THK COMMISSION TO THK COUNCIL AND TO PARLIAMENT on the rate of utilization of European Investment Bank loans for projects of mutual interest in countries of Latin America and Asia that have concluded cooperation agreements with the Community (from 23. 8. 1995 to 22. 2. 1996) L Introduction Council Decision 93/115/EEC of 15 February 1993 (OJ No L 45 of 23. 2. 1993) grants in full the Community guarantee to the European Investment Bank (EIB) against losses under loans for projects of mutual interest in certain third countries with which the Community has concluded cooperation agreements The Decision sets a limit of ECU 250 million per year, for a three-year period The list of eligible countries is given in the annex. The Council Decision requires the Commission to draw up a six-monthly report on the rate of take-up of loans under the guarantee. The present report covers the period from 23. 8. 1995 to 22. 2. 1996. 2. EIB lending 2. 1 During the second half of the last year of the mandate, the EIB signed loans financed out of own resources for a total of ECU 155 million in Argentina, China and Pakistan. During the same period, the EIB Board of Directors approved a loan of ECU 38 million for a project in Colombia. The list of operations approved and/or signed during the period and the description of the projects are given in the table below. 2. 2 In all, under the mandate which expired on 22 February 1996, the EIB signed loan contracts for a total of ECU 607 million. Loan contracts for the remaining ECU 143 million will be signed shortly. They concern the following projects Country Argentina Brazil Colombia Indonesia^ Pakistan^ Project name/sector "Mercosur road" (transport) "CESAN -Spirito Santo" (water treatment) "Eldorado Airport" (transport) "CLIPAN" (leasing company) "SAI HYDRO" (energy) Total (ECU m) 45 40 38 8 12 (*) Allocated under COM(95)507 of 30. 10. 1995). the "ALA -Global authorization" of ECU 20m (see previous report, Operations signed or approved by the EIB Board of Directors between 23 August 1995 and 22 February 1996 (93/115/EEC) LATIN AMERICA AND ASIA COUNTRY PROJECT NAME ARGENTINA AGUAS ARGENTINAS Date of approval 7. 11. 1995 Date of signature 1. 12. 1995 Amount (ECU m) 70 AELINCO 25. 7. 1995 14. 12. 1995 CHINA COLOMBIA PAKISTAN TOTAL PING HU OIL AND GAS DEVELOPMENT ELDORADO AIRPORT GHAZI-BAROTHA HYDRO POWER 12. 12. 1995 18. 12. 95 12. 12. 1995 12. 12. 1995 Not yet signed 14 12. 1995 55 38 24 193 DESCRIPTION New waste-water collection and treatment facilities in the northern part of Greater Buenos Aires Construction of facilities for the treatment and disposal of hazardous waste in the Province of Buenos Aires Development of Ping Hu oil and gas field. transmission and distribution of gas Build, operate and transfer concession for the second runway at Eldorado Airport Design, engineering work and construction of hydroelectric power station on the river Indus ANNEX List of developing countries in Latin America and Asia with which the Community had concluded cooperation agreements at the time the EIB was given the mandate L LATIN AMERICA Argentina Brazil Chile Mexico Paraguay Uruguay Andean Group (Bolivia, Colombia, Ecuador, Pern, Venezuela) Central American countries (Costa Rica, Guatemala, Honduras, Nicaragua, Panama, Salvador) 2. ASIA Bangladesh China India Macao Mongolia Pakistan Sri Lanka ASEAN Group (Brunei, Indonesia, Malaysia, Philippines, Singapore, Thailand) ISSN 0254-1475 COM(96) 215 final DOCUMENTS EN 11 Catalogue number : CB-CO-96-226-EN-C ISBN 92-78-04154-8 Office for Official Publications of the European Communities L-298S Luxembourg 1

Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE amending Directive 95/2/EC of the European Parliament and the Council on food additives other than colours and sweeteners

http://publications.europa.eu/resource/cellar/37b8b56b-7943-4368-96c3-b9ed5dd768af

eng

COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 21. 05. 1996 COM(%) 212 final 95/0114 (COD) Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE amending Directive 95/2/EC of the European Parliament and the Council on food additives other than colours and sweeteners (presented by the Commission pursuant to Article 189 a (2) of the EC-Treaty) Explanatory memorandum In response to the opinion of the European Parliament1 delivered on 28 March 1996 on the proposal for a European Parliament and Council Decision amending Directive 95/2/EC of the European Parliament and Council Directive on food additives other than colours and sweeteners COM(95)0177 - 95/0114 (COD)2 and in accordance with the second paragraph of Article 189A of the Treaty establishing the European Economic Community, the Commission has decided to amend the above mentioned proposal. The Commission accepts the amendment concerning: - The modification of the denomination of the substance, which is in accordance with the denomination used in international trade. The Commission does not accept the amendment concerning: the number H408 to be assigned, since ii is not in accordance with the number used in international trade, and does not follow rules by which additives containing the same active principle are indicated by the same E-number completed by an alphabetical subscript. - the additional footnote, which is considered superfluous, because the amendment to Directive 95/2 does not change the strict dispositions concerning babyfoods already contained in Directive 95/2/EC which includes already the prohibition for use of E407a. 1 not yet published 2 O. I C163 29. 6. 95 p 12 - 3 - In response to the opinion of the European Parliament3 delivered on 28 March 1996 on the proposal for a European Parliament and Council Decision amending Directive 95/2/EC of the European Parliament and Council Directive on food additives other than colours and sweeteners COM(95)0177 - 95/0114 (COD)4 and in accordance with the second paragraph of Article 189A of the Treaty establishing the European Economic Community, the Commission has decided to amend the above mentioned proposal as follows: The table in the annex is replaced by the following table: Original proposal Amended proposal E407a Alternatively refined carrageenan E407a Processed Euchema seaweed 3 not yet published 4 OJ CI63 29. 6. 95 p 12 ISSN 0254-1475 COM(96) 212 final DOCUMENTS EN 05 10 Catalogue number : CB-CO-96-224-EN-C ISBN 92-78-04033-9 Office for Official Publications of the European Communities L-2985 Luxembourg

OPINION OF THE COMMISSION pursuant to Article 189 b (2) (d) of the EC Treaty, on the European Parliament' s amendments to the Council' s common position regarding the proposal for a EUROPEAN PARLIAMENT AND COUNCIL DECISION adopting an action programme for Community customs (Customs 2000)

http://publications.europa.eu/resource/cellar/46ae4247-fb50-4c24-a411-b8a2b09e3df4

eng

COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 21. 05. 1996 COM(%) 225 final 95/0087 (COD) OPINION OF THE COMMISSION pursuant to Article 189 b (2) (d) of the EC Treaty, on the European Parliament's amendments to the Council's common position regarding the proposal for a EUROPEAN PARLIAMENT AND COUNCIL DECISION adopting an action programme for Community customs (Customs 2000) AMENDING THE PROPOSAL OF THE COMMISSION pursuant to Article 189 a (2) of the EC Treaty Explanatory memorandum On 16 April 1996, the European Parliament adopted a decision on the common position agreed by the Council with a view to the approval of a European Parliament and Council decision adopting an action programme for Community customs ("Customs 2000"). This decision of the Parliament invites the Council to consent to the 24 amendments voted by the Parliament and to amend its common position accordingly. The Commission has consented, wholly or by indicating that it would suggest a slightly different wording, to the following parliamentary amendments: 1, 2, 3, 4, 5, 7, 8, 9(2), 10, 11(1), 15, 19, 20, 21, 23. The acceptance of these amendments, as set out in this opinion, entails the amendment of the proposal for a European Parliament and Council decision, in implementation of Article 189 A of the EC Treaty. The Commission cannot, on the other hand, accept the other Parliamentary amendments, on the grounds that they appear either superfluous in the light of articles already adopted by the Council in its common position (amendments n° 12, 13, 16, 24) or in contradiction with the principle of subsidiarity or other principles laid down in the EC Treaty (amendments n° 6, 9(1), 11(2), 14, 18, 22, 25). Commission position in conformity with Article 189 B (2d) of the EC Treaty on the decision of the European Parliament in respect of the common position agreed by the Council with a view to adopting a European Parliament and Council decision adopting an action programme for Community customs (Customs 2000) amending the proposal for a decision, in implementation of Article 189 A of the Treaty On 16 April 1996 the European Parliament gave its views, on a second reading, on the Council's common position regarding the proposal for a European Parliament and Council decision adopting an action programme for Community customs ("Customs 2000")1. This common position resulted from the examination carried out on & first reading of the initial proposal for a decision presented by the Commission on 6 April 1995 COM(95) 119 final2, as amended by documents COM(95) 451 final3 and COM(95) 576 final4. The decision adopted by the European Parliament regarding the Council's common position contains 24 amendments to the latter. 1. Amendments bv the European Parliament endorsed bv the Commission, The Commission can accept, in the wording proposed by the European Parliament, amendments n° 1, 3, 5, 7, 9(2), 15, 21, 23. The Commission can also accept, with some changes of wording, amendments n° 2, 4, 8, 10, 11(1), 19, 20. In consequence, the proposal for a decision, as it results from the text of the Council's common position, is amended as follows: 1. 1. Title (amendment 1). The words: Community action programme on customs" are replaced by "action programme for Community customs". 1 Common position (CE) N° 2/96 adopted by the Council on 22 December 1995 - OJ N° C37, 9. 2. 1996, p ll 2 COM(95) 119 final, 6 April 1995 - OJ N° C346, 23. 12. 1995 3 COM(95) 451 final, 5 October 1995 - OJ N° C 327, 7. 12. 1995 4 COM(95) 576 final, 20 November 1995 - OJ N° C 23, 27. 1. 1996 3 1. 2. 1st recital (amendment 2). Between ". the enlargement of the Community to include new States. " and ". and the rapid development of trade between the Community and the rest of the world. ", add: ", the planned extension of the Common Transit procedure to include Poland, the Czech Republic, Hungary and Slovakia. " 1. 3. New recital la (amendment 3). Whereas, although the completion of the internal market eliminated controls on goods at all the internal borders of the Union, substantial differences persist between the home markets of European countries and the European internal market; whereas the further development of the European internal market will result in a genuine home market with open internal borders and a common external border and is therefore a matter of priority; 1. 4. New recital lb (amendment 4). Whereas the strengthening of the common protection of the external borders will promote the development of a European home market of this nature, in which the implementation of the principles contained in the provisions of the Treaty will be totally guaranteed; whereas this must be achieved as soon as possible; 1. 5. 4th recital (amendment 5). The text of the recital is completed by the following:. whereas, however, it is necessary to agree at Community level on the criteria which will determine the level at which the controls will be carried out; 1. 6. 13th recital (amendment 7). The text of the recital is completed as follows: whereas customs officers employed in the customs administrations of the Member States should visibly wear the twelve-star symbol of the European Community; 1. 7. Article 1 new paragraph 4a (amendment 8). For the purposes of this decision, 'customs administration ' means the administration that has the main responsibility for the application of customs rules. 1. 8. New Article la (amendment 9). The Member States shall ensure that Community customs officers visibly wear the twelve- star symbol to remind both European Union citizens and non-Community nationals of the role of such officers, who are carrying out important tasks for the Community. 1. 9. Article 3 new paragraph 7 (amendment 10). Assist the customs administrations of associated countries that wish to accede to 7. the European Union. 1. 10. Article 4 new paragraph 4a (amendment 11(1)). 5 4a. foster in particular the development of targeting and risk analysis techniques and, where appropriate, approximate the frequency of controls at a minimum level; 1. 11. Article 7(2) point 6 (amendment 15). The text is completed as follows: after "developing co-operation with third countries", add: particularly the associated countries of Central and Eastern Europe, " 1. 12. Article 13 new paragraph 5 (amendment 19). The Commission shall examine, in partnership with the Member states, the 5. possibilities for the creation of a common and permanent European school for higher customs studies in order to supplement the training of the customs officers of the Member States. 1. 13. Article 13 new paragraph 6 (amendment 20). The training of customs officers as provided for in the Matthaeus Programme 6. shall be extended to the associated countries of Central and Eastern Europe that wish to accede to the European Union. 1. 14. Article 16(2), 2nd indent (amendment 21). The date of 31 December 2000 is replaced by that of "30 June 1999". 1. 15. Article 16(3), 1st indent (amendment 21). The date of 3 i December 1998 is replaced by that of "30 June 1998". 1. 16. Article 17 new paragraph 3 (amendment 23). 3. The Member States shall take care, in this respect, that the use of the sums retained as the costs of collecting awn resources pursuant to Article 2(3) of Council Decision 88/376 EEC, EURATOM of 24 June 1988 takes the fullest account of the objectives of this Decision. 2. Amendments bv the Parliament that the Commission cannot consent to As it pointed out during the plenary session of the European Parliament, the Commission cannot give support to amendments nc 65 9(1), 11(2), 12, 13, 14, 16, 18, 22, 24 and 25, for the reasons set out below. 2. 1. Amendment 6 This amendment provides for the long-term creation of a single European customs authority, financed from the share of own resources paid back to the Member States in recognition of the cost of collecting the resources. This amendment has no place in the philosophy of the Commission's proposal, which seeks to develop co-operation between national administrations in order to improve their efficiency, without calling into question their individual responsibility for the collection of own resources and the implementation of Community law. 2. 2. Amendment 9(1) This amendment calls on the Commission to present proposals aimed at changing the status of customs personnels in order to make it easier to second officials between the administrations of different Member States. The Commission will encourage the Member states, in the framework of work that will be carried out in implementation of this programme, to develop this kind of practice in relations between administrations, but cannot contemplate presenting proposals in a field which falls under the competence of the Member States. 2. 3. Amendment 11(2) This amendment calls on the Commission to co-ordinate the controls carried out by customs services and to take responsibility for working out a genuine policy on post- clearance checks to be carried out jointly. The Commission cannot approve of such a proposal in this form, as it would be in contradiction with the responsibility of Member States for the implementation of Community law and of the controls associated with it. 2. 4. Amendment 12 This amendment, which concerns the improvement of the recovery of customs duties, has been incorporated in the Council's common position, in Article 6 (Recovery), following an amendment adopted by the European Parliament on first reading. Its adoption thus seems no longer necessary. 2. 5. Amendment 13 This amendment calls on the Commission to ensure that common customs legislation is interpreted appropriately, with due regard for economic processes and in such a way as to avoid excessive administrative formalities. This amendment has been incorporated, in substance, in Article 5(2) of the common position. Its adoption thus seems no longer necessary. 2. 6 Amendment 14 This amendment calls on the Commission to put forward, before 1 January 1996, a binding calendar for the computerization of customs offices and of the Community transit procedure. Although the Commission has already put forward a calendar for the computerization of Community and common transit, which has been endorsed by the Member States, it considers that such a proposal has no place in this action programme. 2. 7. Amendment 16 This amendment, which seeks to emphasize the need to give priority to customs controls carried out before release is given, has been incorporated in substance in Article 8 of the common position. Its adoption thus seems no longer necessary. 2. 8. Amendment 25 This amendment calls on the Commission to put forward proposals aimed at allowing mutual direct access to to information held in the data-banks of other Member States, and to propose the storage of this information in one single data-bank. The Commission considers that the questions raised here will be studied in the framework of the work to be carried out in implementation of the action programme, as one of the possible aspects of the co-ordinated development of compatible computer systems, in order to improve co-operation between administrations and the efficiency of controls. 2. 9 Amendment 18 This amendment calls on the Commission to put forward a report and proposals regarding the harmonization of the powers of customs officials. The common position provides for an examination of the responsibilities of these officials and of the part that they are expected to play in implementing Community law. The amendment envisages going further. What is proposed goes beyond the framework of the action programme and deals with a field that falls under the responsibility of the Member States. 2. 10. Amendment 22 This amendment deals with the financing of the action programme. The Commission considers: that the wording used in the common position makes any detailed account of the sharing of financial responsibility between the Community and the Member States superfluous; that it is not possible to mix up the operating appropriations of part B of the budget and the administrative costs falling under part A; that paying over the receipts from customs penalties to the Community budget has no place either in the framework of the legal basis that has been chosen or in the objectives of the action programme. 2. 11 Amendment 24 This amendment refers to the usefiilness of agreeing memoranda of understanding with business operators. The Commission considers that this point is already made in Article 8(5) of the common position. Its adoption thus seems no longer necessary. ISSN 0254-1475 COM(96) 225 final DOCUMENTS EN 02 Catalogue number : CB-CO-96-235-EN-C ISBN 92-78-04407-5 Office for Official Publications of the European Communities L-2985 Luxembourg S

Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DECISION adopting an action programme for Community customs (Customs 2000)

http://publications.europa.eu/resource/cellar/ed534b96-b9a4-4956-98bb-dc486975ac4d

eng

COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 21. 05. 1996 COM(%) 225 final 95/0087 (COD) OPINION OF THE COMMISSION pursuant to Article 189 b (2) (d) of the EC Treaty, on the European Parliament's amendments to the Council's common position regarding the proposal for a EUROPEAN PARLIAMENT AND COUNCIL DECISION adopting an action programme for Community customs (Customs 2000) AMENDING THE PROPOSAL OF THE COMMISSION pursuant to Article 189 a (2) of the EC Treaty Explanatory memorandum On 16 April 1996, the European Parliament adopted a decision on the common position agreed by the Council with a view to the approval of a European Parliament and Council decision adopting an action programme for Community customs ("Customs 2000"). This decision of the Parliament invites the Council to consent to the 24 amendments voted by the Parliament and to amend its common position accordingly. The Commission has consented, wholly or by indicating that it would suggest a slightly different wording, to the following parliamentary amendments: 1, 2, 3, 4, 5, 7, 8, 9(2), 10, 11(1), 15, 19, 20, 21, 23. The acceptance of these amendments, as set out in this opinion, entails the amendment of the proposal for a European Parliament and Council decision, in implementation of Article 189 A of the EC Treaty. The Commission cannot, on the other hand, accept the other Parliamentary amendments, on the grounds that they appear either superfluous in the light of articles already adopted by the Council in its common position (amendments n° 12, 13, 16, 24) or in contradiction with the principle of subsidiarity or other principles laid down in the EC Treaty (amendments n° 6, 9(1), 11(2), 14, 18, 22, 25). Commission position in conformity with Article 189 B (2d) of the EC Treaty on the decision of the European Parliament in respect of the common position agreed by the Council with a view to adopting a European Parliament and Council decision adopting an action programme for Community customs (Customs 2000) amending the proposal for a decision, in implementation of Article 189 A of the Treaty On 16 April 1996 the European Parliament gave its views, on a second reading, on the Council's common position regarding the proposal for a European Parliament and Council decision adopting an action programme for Community customs ("Customs 2000")1. This common position resulted from the examination carried out on & first reading of the initial proposal for a decision presented by the Commission on 6 April 1995 COM(95) 119 final2, as amended by documents COM(95) 451 final3 and COM(95) 576 final4. The decision adopted by the European Parliament regarding the Council's common position contains 24 amendments to the latter. 1. Amendments bv the European Parliament endorsed bv the Commission, The Commission can accept, in the wording proposed by the European Parliament, amendments n° 1, 3, 5, 7, 9(2), 15, 21, 23. The Commission can also accept, with some changes of wording, amendments n° 2, 4, 8, 10, 11(1), 19, 20. In consequence, the proposal for a decision, as it results from the text of the Council's common position, is amended as follows: 1. 1. Title (amendment 1). The words: Community action programme on customs" are replaced by "action programme for Community customs". 1 Common position (CE) N° 2/96 adopted by the Council on 22 December 1995 - OJ N° C37, 9. 2. 1996, p ll 2 COM(95) 119 final, 6 April 1995 - OJ N° C346, 23. 12. 1995 3 COM(95) 451 final, 5 October 1995 - OJ N° C 327, 7. 12. 1995 4 COM(95) 576 final, 20 November 1995 - OJ N° C 23, 27. 1. 1996 3 1. 2. 1st recital (amendment 2). Between ". the enlargement of the Community to include new States. " and ". and the rapid development of trade between the Community and the rest of the world. ", add: ", the planned extension of the Common Transit procedure to include Poland, the Czech Republic, Hungary and Slovakia. " 1. 3. New recital la (amendment 3). Whereas, although the completion of the internal market eliminated controls on goods at all the internal borders of the Union, substantial differences persist between the home markets of European countries and the European internal market; whereas the further development of the European internal market will result in a genuine home market with open internal borders and a common external border and is therefore a matter of priority; 1. 4. New recital lb (amendment 4). Whereas the strengthening of the common protection of the external borders will promote the development of a European home market of this nature, in which the implementation of the principles contained in the provisions of the Treaty will be totally guaranteed; whereas this must be achieved as soon as possible; 1. 5. 4th recital (amendment 5). The text of the recital is completed by the following:. whereas, however, it is necessary to agree at Community level on the criteria which will determine the level at which the controls will be carried out; 1. 6. 13th recital (amendment 7). The text of the recital is completed as follows: whereas customs officers employed in the customs administrations of the Member States should visibly wear the twelve-star symbol of the European Community; 1. 7. Article 1 new paragraph 4a (amendment 8). For the purposes of this decision, 'customs administration ' means the administration that has the main responsibility for the application of customs rules. 1. 8. New Article la (amendment 9). The Member States shall ensure that Community customs officers visibly wear the twelve- star symbol to remind both European Union citizens and non-Community nationals of the role of such officers, who are carrying out important tasks for the Community. 1. 9. Article 3 new paragraph 7 (amendment 10). Assist the customs administrations of associated countries that wish to accede to 7. the European Union. 1. 10. Article 4 new paragraph 4a (amendment 11(1)). 5 4a. foster in particular the development of targeting and risk analysis techniques and, where appropriate, approximate the frequency of controls at a minimum level; 1. 11. Article 7(2) point 6 (amendment 15). The text is completed as follows: after "developing co-operation with third countries", add: particularly the associated countries of Central and Eastern Europe, " 1. 12. Article 13 new paragraph 5 (amendment 19). The Commission shall examine, in partnership with the Member states, the 5. possibilities for the creation of a common and permanent European school for higher customs studies in order to supplement the training of the customs officers of the Member States. 1. 13. Article 13 new paragraph 6 (amendment 20). The training of customs officers as provided for in the Matthaeus Programme 6. shall be extended to the associated countries of Central and Eastern Europe that wish to accede to the European Union. 1. 14. Article 16(2), 2nd indent (amendment 21). The date of 31 December 2000 is replaced by that of "30 June 1999". 1. 15. Article 16(3), 1st indent (amendment 21). The date of 3 i December 1998 is replaced by that of "30 June 1998". 1. 16. Article 17 new paragraph 3 (amendment 23). 3. The Member States shall take care, in this respect, that the use of the sums retained as the costs of collecting awn resources pursuant to Article 2(3) of Council Decision 88/376 EEC, EURATOM of 24 June 1988 takes the fullest account of the objectives of this Decision. 2. Amendments bv the Parliament that the Commission cannot consent to As it pointed out during the plenary session of the European Parliament, the Commission cannot give support to amendments nc 65 9(1), 11(2), 12, 13, 14, 16, 18, 22, 24 and 25, for the reasons set out below. 2. 1. Amendment 6 This amendment provides for the long-term creation of a single European customs authority, financed from the share of own resources paid back to the Member States in recognition of the cost of collecting the resources. This amendment has no place in the philosophy of the Commission's proposal, which seeks to develop co-operation between national administrations in order to improve their efficiency, without calling into question their individual responsibility for the collection of own resources and the implementation of Community law. 2. 2. Amendment 9(1) This amendment calls on the Commission to present proposals aimed at changing the status of customs personnels in order to make it easier to second officials between the administrations of different Member States. The Commission will encourage the Member states, in the framework of work that will be carried out in implementation of this programme, to develop this kind of practice in relations between administrations, but cannot contemplate presenting proposals in a field which falls under the competence of the Member States. 2. 3. Amendment 11(2) This amendment calls on the Commission to co-ordinate the controls carried out by customs services and to take responsibility for working out a genuine policy on post- clearance checks to be carried out jointly. The Commission cannot approve of such a proposal in this form, as it would be in contradiction with the responsibility of Member States for the implementation of Community law and of the controls associated with it. 2. 4. Amendment 12 This amendment, which concerns the improvement of the recovery of customs duties, has been incorporated in the Council's common position, in Article 6 (Recovery), following an amendment adopted by the European Parliament on first reading. Its adoption thus seems no longer necessary. 2. 5. Amendment 13 This amendment calls on the Commission to ensure that common customs legislation is interpreted appropriately, with due regard for economic processes and in such a way as to avoid excessive administrative formalities. This amendment has been incorporated, in substance, in Article 5(2) of the common position. Its adoption thus seems no longer necessary. 2. 6 Amendment 14 This amendment calls on the Commission to put forward, before 1 January 1996, a binding calendar for the computerization of customs offices and of the Community transit procedure. Although the Commission has already put forward a calendar for the computerization of Community and common transit, which has been endorsed by the Member States, it considers that such a proposal has no place in this action programme. 2. 7. Amendment 16 This amendment, which seeks to emphasize the need to give priority to customs controls carried out before release is given, has been incorporated in substance in Article 8 of the common position. Its adoption thus seems no longer necessary. 2. 8. Amendment 25 This amendment calls on the Commission to put forward proposals aimed at allowing mutual direct access to to information held in the data-banks of other Member States, and to propose the storage of this information in one single data-bank. The Commission considers that the questions raised here will be studied in the framework of the work to be carried out in implementation of the action programme, as one of the possible aspects of the co-ordinated development of compatible computer systems, in order to improve co-operation between administrations and the efficiency of controls. 2. 9 Amendment 18 This amendment calls on the Commission to put forward a report and proposals regarding the harmonization of the powers of customs officials. The common position provides for an examination of the responsibilities of these officials and of the part that they are expected to play in implementing Community law. The amendment envisages going further. What is proposed goes beyond the framework of the action programme and deals with a field that falls under the responsibility of the Member States. 2. 10. Amendment 22 This amendment deals with the financing of the action programme. The Commission considers: that the wording used in the common position makes any detailed account of the sharing of financial responsibility between the Community and the Member States superfluous; that it is not possible to mix up the operating appropriations of part B of the budget and the administrative costs falling under part A; that paying over the receipts from customs penalties to the Community budget has no place either in the framework of the legal basis that has been chosen or in the objectives of the action programme. 2. 11 Amendment 24 This amendment refers to the usefiilness of agreeing memoranda of understanding with business operators. The Commission considers that this point is already made in Article 8(5) of the common position. Its adoption thus seems no longer necessary. ISSN 0254-1475 COM(96) 225 final DOCUMENTS EN 02 Catalogue number : CB-CO-96-235-EN-C ISBN 92-78-04407-5 Office for Official Publications of the European Communities L-2985 Luxembourg S

96/354/EC: Council Decision of 20 May 1996 concerning the conclusion of the Cooperation Agreement between the European Community and the Kingdom of Nepal

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L_1996137EN. 01001401. xml 8. 6. 1996    EN Official Journal of the European Communities L 137/14 COUNCIL DECISION of 20 May 1996 concerning the conclusion of the Cooperation Agreement between the European Community and the Kingdom of Nepal (96/354/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 113 and 130y, in conjunction with the first sentence of Article 228 (2) and the first subparagraph of Article 228 (3) thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament (1), Whereas, under Article 130u of the Treaty, Community policy in the sphere of development cooperation shall foster the sustainable economic and social development of the developing countries, their smooth and gradual integration into the world economy and the campaign against poverty in those countries; Whereas the Community should approve, for the attainment of its aims in the sphere of external relations, the Cooperation Agreement between the European Community and the Kingdom of Nepal, HAS DECIDED AS FOLLOWS: Article 1 The Cooperation Agreement between the European Community and the Kingdom of Nepal is hereby approved on behalf of the Community. The text of the Agreement is attached to this Decision. Article 2 The President of the Council shall, on behalf of the Community, give the notification provided for in Article 22 of the Agreement. Article 3 The Commission, assisted by representatives of the Member States, shall represent the Community in the Joint Commission provided for in Article 15 of the Agreement. Article 4 This Decision shall be published in the Official Journal of the European Communities. Done at Brussels, 20 May 1996. For the Council The President P. BERSANI (1)  OJ No C 141, 13. 5. 1996

Proposal for a COUNCIL DIRECTIVE amending Directives 71/118/EEC, 72/462/EEC, 85/73/EEC, 91/67/EEC, 91/492/EEC, 91/493/EEC, 92/45/EEC and 92/118/EEC as regards the organization of veterinary checks on products entering the Community from third countries

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 20. 05. 1996 COM(96) 170 final 96/0109 (CNS) 96/0110 (CNS) Proposal for a COUNCIL DIRECTIVE laying down the principles governing the organization of veterinary checks on products entering the Community from third countries Proposal for a COUNCIL DIRECTIVE amending Directives 71/118/EEC, 72/462/EEC, 85/73/EEC, 91/67/EEC, 91/492/EEC, 91/493/EEC, 92/45/EEC and 92/118/EEC as regards the organization of veterinary checks on products entering the Community from third countries (presented by the Commission) EXPLANATORY MEMORANDUM Council Directive 90/675/EEC, laying down the principles governing the organization of veterinary checks on products entering the Community from third countries , introduces arrangements for a new system of veterinary checks for products entering the Community from third countries. With the establishment of the Internal Market, it has been all the more necessary to fix common principles governing the organization of checks and the movement inside the Community of products from third countries given that internal border checks were to be abolished. Since the entry into force of Directive 90/675/EEC, experiences have been gained and developments have taken place with regard to the implementation of the Directive which together with reasons of transparency calls for a modification of the Directive. For all products of animal origin imported from third countries harmonized conditions are in the process of being completed; therefore one single checking regime should be applied and in any case the provisions for the bilateral agreements should be abolished for which there is no need. In a system of veterinary checks on products of animal origin, it is not necessary to have a separate identity check, since such a check should primarily be part of the physical check. For products arriving at the Community border, without having the Community as final destination, strict rules are established to ensure that these products will leave the Community. Measures are laid down for consignments which have been introduced into the territory of the Community without being presented for veterinary checks. Measures are also laid down for the re-entry of Community consignments which have been refused by a third country. Article 1 includes the whole text of the Directive and the modifications are underlined to improve readability of the text. In addition, a table of correspondence is laid down in an Annex to the modified Directive. (1) OJ No L 373, 31. 12. 1990, p. 1. Directive as last amended by Directive 95/52/EC ( O J N o L 2 6 5, 8. 11. 1995, p. 16). Proposal for a COUNCIL DIRECTIVE 9 6 / 0 1 09 (CNS) laying down the principles governing the organization of veterinary checks on products entering the Community from third countries THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission(1), Having regard to the opinion of the European Parliament^, Having regard to the opinion of the Economic and Social Committee(3), Whereas the animal products or products of animal origin and plant products subject to checks intended to prevent the spread of contagious or infectious animal diseases are listed in Annex II to the Treaty; Whereas laying down principles at Community level on the organization of veterinary checks on products coming from third countries helps to safeguard supplies and ensure market stability while also harmonizing the measures necessary to ensure the protection of animal and public health; Whereas the establishment of the Internal Market has accentuated the need to lay down common principles for the veterinary checks, given that internal border checks have been abolished; Whereas, since Directive 90/675/EEC of 10 December 1990 laying down the principles governing the organization of veterinary checks on products entering the Community from third countries(4) took effect, developments have taken place in the application of the Directive and new experiences have been encountered; whereas in the interests of transparency, the Directive should be amended; Whereas harmonized conditions for all products of animal origin imported from third countries into the Community should be established; whereas for that reason a single checking scheme for these products should be applied and the requisite adjustments made; Whereas in the new system of veterinary checks only a documentary and physical check need to be carried out; whereas for that reason the identity check needs to be abolished; Whereas rules must be laid down whereby consignments which have been introduced into the Community without being presented will undergo the veterinary checks at a border inspection post; ( i) (2) (3) (4) OJNo C OJ No C OJNo C OJ No L 373, 31. 12. 1990, p. 1. Directive as last amended by Directive 95/52/EC (OJ No L 265, 8. 11. 1995, p. 16). Whereas Member States, in certain cases, may impose additional requirements for products to be imported; whereas the Member State of arrival has to take account of these extra national requirements when making checks; Whereas with regard to the transhipment by sea or air of products with a final destination in the Community clear rules should be laid down on where to carry out the checks; whereas for that reason the checks should, in principle, be carried out at the border inspection post of destination; Whereas Community legislation requires certain products to be monitored from arrival in the Community to the place of destination to safeguard public and animal health; whereas for that reason strict rules must be laid down; Whereas strict rules should be established to ensure that products arriving at the Community border without having the Community as final destination will leave the Community; Whereas those products which comply with Community requirements for importation should be separated from those which do not; whereas to take account of these differences separate checking systems should be laid down; Whereas the supply of products of animal origin for the crew and passengers of sea and air transport is of considerable commercial importance in the Community; whereas those products often do not comply with Community requirements; whereas for that reason strict rules should be laid down to safeguard public and animal health; Whereas a Community product which is refused by a third country and which is returned to the Community should be regarded as no longer fulfilling the Community requirements; whereas for that reason strict rules in that regard should be laid down to safeguard public and animal health; Whereas extra safeguards should be laid down with a view to the prevention of fraud and to provide for harmonized measures on fraudulent operations and irregularities; Whereas Directive 90/675/EEC has been substantially amended on several occasions; whereas, on the occasion of the new amendments required, it is thus advisable for the sake of clarity and rationality to repeal and replace that Directive, HAS ADOPTED THIS DIRECTIVE: Article 1 Veterinary' checks on products from third countries introduced into one of the territories as referred to in Annex I shall be carried out by the Member States in accordance with this Directive. Article 2 I. For the purposes of this Directive, the definitions contained in Article 2 of Council Directives 89/662/EEC(5) and 90/425/EEClo), respectively, shall apply as necessary. (5) W OJ No L 395, 30. 12. 1989, p. 13. Directive as last amended by Directive 92/118/EEC (OJ No L 62, 15. 3. 1992, p. 49). OJ No L 224, 18. 8. 1990, p. 29. Directive as last amended by Directive 92/118/EEC. 4 In addition: (a) "products" means products of animal origin referred to in Directives 89/662/EEC and 90/425/EEC including by-products of animal origin not covered by Annex II to the Treaty, or, in the circumstances described in Article 18 fresh fish landed immediately from a fishing vessel; certain plant products; (b) "documentary check" means the examination of the veterinary certificate(s) or veterinary document(s), or other document(s) accompanying a consignment; (c) "physical check" means the verification of the consistency between the veterinary certificated) or veterinary document(s) or other document(s) provided for by veterinary legislation and the product; a check of the product itself, which may include checks on packaging and temperature and also sampling and laboratory testing; (d) "declarant" means any physical or legal person who presents products for introduction into one of the territories set out in Annex I; (e) "consignment" means a quantity of products of the same type, covered by the same veterinary certificate(s) or veterinary document(s), or other document(s) provided for by veterinary legislation, conveyed by the same means of transport and coming from the same third country or part of such country; (f) "border inspection post" means any inspection post, designated and approved in accordance with Article 6, for the carrying out of veterinary checks on products arriving at the border of one of the territories referred to in Annex I from third countries; (g) "import" means clearance by customs for release for free circulation; (h) "import conditions" means veterinary requirements on products to be imported, as laid down in Community legislation; (i) "competent authority" means the central authority of a Member State, empowered to carry out veterinary or zootechnical checks, or any authority to which it has delegated such powers. CHAPTER I ORGANIZATION AND EFFECTS OF CHECKS Article 3 Member States shall ensure that consignments from third countries shall not be introduced into one of the territories referred to in Annex I without having undergone the required veterinary checks. 2. Member States shall ensure that consignments are introduced into one of the territories referred to in Annex I only via a border inspection post. On arrival in one of the territories set out in Annex I, each consignment shall be conveyed direct to the nearest border inspection post in order to undergo there, without delay, the required veterinary checks. 3. Member States shall ensure that declarants are obliged to give prior notification of details of the consignment to the veterinary staff of the border inspection post to which the products are to be submitted. 4. Customs authorities shall only allow the intended customs-approved treatment or use of the consignments, in accordance with the certificate referred to in Article 5(1). 5. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. Article 4 1. Each consignment shall be subject to veterinary checks in the border inspection post referred to in Article 3(2) by staff of the competent authority acting under the responsibility of the official veterinarian. to in Article 3(3) 2. For each consignment the official veterinarian shall, on the basis of the information to referred Council Decision 92/438/EEC(7) on computerization of veterinary import procedures. Furthermore, for each consignment intended for import into one of the territories referred to in Annex I hereto, he shall consult the database referred to in Annex II to Decision 92/438/EEC. the database in Annex I referred consult to 3. Each consignment shall be subject to a documentary check irrespective of the customs-approved treatment or use, in order to establish: (a) that the information in the veterinary certificate(s) or veterinary document(s) or other document(s) corresponds to the information referred to in Article 3(3); (b) in the case of imports, that the particulars contained in the veterinary certificate(s) or veterinary document(s) or other document(s) afford the guarantees required. 4. The official veterinarian shall, where so required by this Directive, carry out a physical check on the basis of a representative sample of the consignment in order to: (a) check that the products correspond to the accompanying veterinary certificateds) or veterinary document(s) or other document(s) and bear any stamps or marks required by veterinary legislation; (b) check that the products are in a fit state to be used for the purpose specified in the accompanying certificate or document; (c) perform any laboratory tests which have to be carried out on the spot; (d) take any official samples required and have them analysed as soon as possible. 5. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. (7) OJ No L 243, 25. 8. 1992, p. 27. Decision as amended by the Act of Accession of Austria, Finland and Sweden. Article 5 1 After completion of the required veterinary checks, the official veterinarian shall issue for the consignment of products concerned a certificate certifying the checks and recording the intended place of destination. 2 The document referred to in paragraph 1 shall accompany the consignment: as long as the consignment remains under customs supervision; or the case of in in Directive 89/662/EEC. or until the first centre or organization of destination as referred to in Directive 90/425/EEC- the first establishment as referred imports, until to 3. If the consignment is split, paragraph 1 shall apply to each part. 4. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. 1. Border inspection posts must be: Article 6 (a) located in the immediate vicinity of the point of entry into one of the territories referred to in Annex I, and in an area which is designated or approved by the customs authorities in accordance with Article 38(l)(a) of Council Regulation (EEC) No 2913/92(8); However, where necessitated by geographical constraints (such as unloading wharf, railway station, passes) a border inspection post at a certain distance from the point of introduction may be tolerated. (b) placed under the authority of an official veterinarian, who shall be effectively responsible for the checks. The official veterinarian may be assisted by specially trained auxiliary staff. He shall ensure that all updating of the data bases indicated in the third indent of Article 1(1) of Decision 92/438/EEC is carried out. (c) - proposed by the Member State; inspected by the Commission in collaboration with the competent authority of the Member State; approved in accordance with the procedure referred to in Article 26. 2. A list of approved border inspection posts shall be established and published by the Commission. 3. Pending the adoption of the list under paragraph 2. the list currently in force shall remain applicable. 4. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. OJ No L 302, 19. 10. 1992, p. 1. Regulation as amended by the Act of Accession of Austria, Finland and Sweden. Article 7 1 • Each consignment intended for import into one of the territories referred to in Annex I shall be accompanied by the original veterinary certificate(s) or original veterinary document(s) or other original document(s) as required by veterinary legislation. The original certificate(s) or document(s) shall remain at the border inspection post. 2. Each consignment of products from a third country intended for import into one of the territories referred to in Annex I shall be subject to a physical check. 3. Customs authorities shall not allow the importation of consignments of products unless - without prejudice to the customs regulations and to the special provisions to be adopted in accordance with Article 17 - proof has been supplied both that the relevant veterinary checks have been carried out with satisfactory results and paid for, and that the relevant certificate has been issued in accordance with Article 5. 4. If the consignment complies with the import conditions, the official veterinarian shall provide the person concerned with an authenticated copy of the original certificate(s) or document(s) and issue a certificate certifying that the consignment complies with those conditions in accordance with Article 5(1). 5. Trade in the products referred to in Directives 89/662/EEC and 90/425/EEC and allowed into one of the territories referred to in Annex I to this Directive shall be conducted in accordance with the rules laid down in the said Directives, in particular in Chapter II thereof. 6. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. 1. Where: Article 8 products are intended for a Member State or an area having specific requirements, samples have been taken but the results are not known when the means of transport leaves the border inspection post, imports authorized for specific cases are involved, additional information must be given to the competent authority of the place of destination by means of the ANIMO network. 2. Each consignment of products referred to in the first and third indents of paragraph 1 and destined for another Member State shall undergo the documentary and physical check at the border inspection post situated in the territory of the Member State where the products are introduced, to verify in particular whether the products concerned comply with the rules of the Member State or area of destination. 3. Member States shall ensure that in the case of products referred to in the first and third indents of paragraph 1 and introduced into a Member State other than the Member State of destination, all measures shall be taken to ensure that consignment involved reaches the intended Member State of destination. Products which are tq_. be monitored pursuant to Community legislation from the border inspection post of arrival to the establishment at the place of destination, shall be forwarded under the following conditions: the consignments in question are forwarded between the border inspection post of arrival and the establishment at the place of destination, under supervision of the competent authority in leakproof vehicles or containers sealed by the competent authorities; the products shall undergo in the establishment at the place of destination the treatment referred to in the relevant Community legislation; the official veterinarian at the border inspection post concerned shall inform the official veterinarian at the place of destination via the ANIMO network. Member States shall submit to the Commission the list of approved establishments as referred the relevant Community Legislation. the products concerned following to above for The Commission shall adopt a list of approved establishments and shall arrange the communication of the up to date list to the Member States. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referredjo in Article 26. Article 9 By way of derogation from Article 3(2), in the case of consignments intended for import into one of the territories set out in Annex I and arriving at a border inspection post of a port or airport in one of the territories set out in Annex I, the physical check shall be carried out in the border inspection post of destination, provided that the transport takes place by sea or air. The following procedures shall be carried out in the border post referredjo in Article 3(2): (a) (b) (c) If the consignment is not unloaded, the competent authority may carry out random documentary checks of the products, on the basis of the original veterinary certificate or veterinary document or other document, or an authenticated copy of them If a documentary check has been carried out the competent authority shall issue the certificate referred to in Article 5(1) certifying the results of this check, for the benefit of the authorities in the port or airport of destination. Ifjhe consignment is transhipped from one aircraft to another or from one vessel to another within the customs area of the same port or airport, the competent authority shall be informed and may carry out a documentary check of the products on the basis of the same documents referred to in paragraph (a). If_thie j:onsignment is unloaded and stored temporarily under supervision of the competent authority in the customs area of the port or airport to be forwarded to another border inspection post by sea or air transport, the competent authority shall carry out a documentary check of the products on the basis of the same documents as are referred to in paragraph (a); in exceptional cases which may present a risk to pub]IC or animal health or when irregularities are suspected, a physical check may be carried out; Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. Article 10 1. At the request of a Member State, accompanied by the requisite substantiating information, or acting on its own initiative, the Commission may, in accordance with the procedure referred to in Article 26. determine that physical checks are to be less frequent, under certain conditions and in the light in particular of the results of previous checks, with respect to certain products from certain third countries or regions or certain establishments in third countries offering satisfactory guarantees as regards checks at the point of origin on products intended for import into one of the territories referred to in Annex I. 2. The Commission shall take into account the following criteria for granting derogations: (a) the guarantees offered by the third country in question with respect to compliance with Community requirements; (b) the health situation of animals in the third country concerned; (c) information on the general health situation in the country; (d) nature of the measures applied by the third country for monitoring and combatting disease; (e) structures, powers, independence and competence of the veterinary or other competent services; (f) compliance with the minimum standards laid down by Community law with regard to production hygiene; (g) rules on the authorization of certain substances and compliance with the requirements set out in Council Directive 96/. /EC('"; (h) outcome of the Community inspection visits; (i) outcome of the import controls carried out; (j) the type of product or products. 3. Without prejudice to paragraph 1. reductions in the frequency of physical checks may also be determined with regard to a third country pursuant to a bilateral veterinary agreement. Article 11 1 A Member State shall, on behalf of all Member States through which the transit will take place, authorize the transit of consignments from one third country to another third country provided that such a transit has been previously authorized by the official veterinarian of the border inspection post of the Member State where the consignment first arrives at one of the territories referred to in Annex I. 2. The authorization is subject to the following conditions: (a) consignments presented for inspection post shall be accompanied by the original veterinary certificate(s) or veterinary document(s) or other document(s), or by authenticated copies; transit at the border (<••» OJ NoL 10 (b) to undergo the consignment of products must be presented in the said border inspection post in order the documentation relates to the consignment being presented. In exceptional cases which may present a public health or animal health risk or when irregularities are suspected, physical checks are to be carried out. the documentary check and the verification that Derogation from the documentary and physical check may be given by the competent authority for sea and air transport where the consignment: is not unloaded; or is transhipped from one plane to another or from one boat to another within the customs area of the same port or airport; or is unloaded and stored temporarily under control of the competent authority in the customs area at the port or airport; (c) in the case of passage through consignment shall: the territories referred to in Annex I, such be sent under customs supervision to the point of exit from the Community, together with the document required under paragraph 2(a) and the document required under Article 5(1), certifying the border inspection post where the consignment will leave the Community; be transported, without the products being unloaded or split after leaving the border inspection post of arrival under the supervision of the competent authorities in vehicles or containers sealed by the competent authorities; the only handling authorized during transport shall be that carried out at the border inspection post into or out of one of the territories referred to in Annex I; leave the Community via a border inspection post. (d) The official veterinarian who authorizes the transport shall inform the competent authority of the border inspection post of exit via the ANIMO network. All expenditure incurred pursuant to this Article shall be chargeable to the declarant or his representative, without indemnification by the Member State. the exchange of the application of this Article, in particular Detailed rules for information between the border inspection post of entry and of exit, shall be adopted in accordance with the procedure referred to in Article 26. Article 12 Consignments coming from a third country and destined for a free zone, a free warehouse or a customs warehouse shall undergo in the border inspection post as referred to in Article 3(2) a documentary and a physical check in order to ensure that the products comply with the import conditions. to Article 16, Member States may allow on Without prejudice territory. consignments which the declarant declares to the competent authority, pursuant to Article 3(3), to be presented for storage in a free zone, a free warehouse or a customs warehouse in accordance with Regulation (EEC) No 2913/92, and which do not comply with the import conditions; any customs warehouse used shall be enclosed and the entry and exit points shall be subject to permanent control. their 11 Such zones and warehouses shall be approved by the competent authority for the storage of the products as defined in Article 2(2)(a). The zones and warehouses shall be under the permanent supervision of an official veterinarian. 3. The allowance provided for in paragraph 2 shall be subject to the following conditions: consignments arriving at the Community border shall be accompanied by the original veterinary certificate(s), veterinary document(s) or other document(s) or bv authenticated copies or by official customs documents, or other relevant certificate(s) or document(s); consignments shall undergo a documentary check at the border inspection post of arrival, including a verification that the documentation relates to the consignment being presented. In exceptional cases involving a public health or animal health risk. or when irregularities are suspected, a physical check shall be carried out; consignments shall be sent, under customs supervision, together with the document mentioned in the first indent and with the document required under Article 5(1). specifying the free warehouse, free zone, or customs warehouses concerned, or in the case of consignments leaving the Community the border inspection post where the consignment will leave the Community, or in the case referred to in paragraph 4 specifying the place where the consignment will leave the Community; the consignments in question shall be subsequently forwarded under such conditions to ensure that transport is carried out, without the goods being unloaded, under the supervision of the competent authoriries in leakproof vehicles or containers sealed by the competent authorities; the competent authority which authorizes the transport shall inform the competent authority of the place of destination via the ANIMO network; the identity of the consignment shall be permanently monitored and shall be supervised by the official veterinarian. 4. In addition, operators who supply, to sea and air transport, operating internationally, products as referred in Article 2(2)(a) which are intended for consumption by the crew and passengers: (a) shall be subject to prior registration by the competent authority; (b) shall keep a register in which such deliveries are recorded; (c) shall report the arrival and dispatch of products in a zone or a warehouse as referred to in paragraph 2; (d) shall keep for at least three years the register referred to in (b). 5. Member States shall ensure that the consignments, before entering a zone or warehouse as referred to in paragraph 2, undergo a documentary check and, if necessary, where there are grounds for suspicion, a physical check. 6. All expenditure incurred pursuant to this Article shall be chargeable to the declarant or his representative, without indemnification by the Member State. 7. Member States shall submit to the Commission the list of approved free zones, free warehouses and customs warehouses as referred to in paragraph 2. The Commission shall adopt a list of approved zones and warehouses, and shall arrange for its publication in the Official Journal of the European Communities. 12 8. Detailed rules for the application of this Article,Jn pajrticular the_ control procedures to be carried out on the arrival and on the departure of consignments to and from such zone or warehouse, the transport of consignments between such zones or such warehouses, the form of storage of the products and the handling allowed, shall be adopted in accordance with the procedure referred to in Article 26. Article 13 1 Products for which the customs-approved treatment or use under Regulation (EEC) No 2913/92 is other than as provided for in Articles 7. 11 and 12 of this Directive, shall undergo, where appropriate, a physical check in order to ensure that they comply with the import conditions. 2. Detailed rules for the application of this Article shall be adopted, where necessary, in accordance with the procedure referred to in Article 26. Article 14 1 The re-importation of a Community consignment refused by a third country may be authorized only by the Member State where the veterinary certificate has been issued, and provi!de_d_that: the products in question have to undergo in the border inspection post of arrival the documentary, and where necessary, a physical check; the consignment returns to that Member State and that, if transport across another Member State is involved, it has been previously authorized by the official the veterinarian of consignment first arrives into one of the territories of the Community referred to in Annex I, on behalf of all Member States the consignment will transit. the Member State where inspection post of through which the border 2 3 4 5 In circumstances envisaged in paragraph 1, the products in question shall be forwarded under such conditions as ensure that transport is carried out under customs supervision by means of leakproof means of transport, identified and sealed by the competent authority so that the seals will be broken whenever the container is opened in the Member State where the veterinary certificate has been issued. The official veterinarian which authorizes the transport shall inform the competent authority in the place of destination via the ANIMO network. All expenditure incurred pursuant to this Article shall be chargeable to the declarant or his representative, without indemnification by the Member State. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. 1 This Chapter shall not apply to products which: Article 15 (a) form part of travellers' personal luggage and are intended for their personal consumption in so far as the quantity does not exceed a quantity to be defined in accordance with paragraph 3 and provided that the products come from a third country or part of a third country appearing on the list adopted in accordance with Community rules, being a country from which importation is not prohibited; 13 (b) are sent as small packages to private persons, provided that the products are not being imported by way of trade, in so far as trie quantity sent does not exceed a quantity to be defined in accordance with paragraph 3 and provided that the products come from a third country or part of a third country appearing on a list drawn up in accordance with Community rules, being a country from which importation is not prohibited; (c) are on board means of transport operating internationally and are intended for consumption by the crew and passengers, provided that they are not introduced into one of the territories referred to in Annex I. Where such products or their kitchen waste are unloaded, they must be destroyed. It is not, however, necessary to destroy products when they are transferred, directly from one means of transport operating internationally to another at the same port and under customs supervision; (d) where quantities not exceeding a figure to be fixed in accordance with paragraph 3 are involved, have undergone heat treatment in a hermetically sealed container to an Fo value of 3. 00 or more and: (i) form part of travellers' personal luggage and are intended for their personal consumption; (ii) are sent as small packages to private persons, provided that the products are not being imported by way of trade; ( e) a re sent as trade sam pies. _p„royided th at _th ey. _are not _ I n ten ded_jbr. human consumption and will not come into contact with any ruminating animal, swine, poultry or; horses. Paragraph 1 shall not affect the rules applicable to fresh meat and meat products in accordance with Article 1(2) of Council Directive 72/462/EEC10'. In accordance with the procedure laid down in Article 26, the Commission shall set the weight limits for the different products liable to be covered by the derogations referred to in paragraph 1. Article 16 Consignments which have been introduced into one of the territories of the Commmunity without being presented for veterinary checks in accordance with the requirements of Articles 3 and 4, shall be seized and the competent authority shall decide either to destroy them in accordance with paragraph 2(b) or to re-dispatch them in accordance wi. th paragraph 2(a). Where the checks referred to in this Directive show the competent authority that the the import conditions, or where such checks reveal an product does not satisfy irregularity, the declarant or his representative, shall decide either: the competent authority, in consultation with (a) to re-dispatch the product outside the territories referred to in Annex I from the same border inspection post to a named destination approved by the competent authority of the third country concerned, within a time limit to be set by the competent national authority, where veterinary inspection and health requirements so allow. ( 1 0, OJ No L 302, 31. 12. 1972, p. 28. Directive as amended by the Act of Accession of Austria, Finland and Sweden. 14 In this case, the official veterinarian of the border inspection post must: activate the information procedure provided for in the first indent of Article 1(1) of Decision 92/438/EEC, under arrangements to be defined by the Commission in accordance with the procedure provided for in Article 26, invalidate the veterinary certificate^ or document(s) accompanying the rejected products; or (b) if re-dispatch is impossible, to destroy the products in these facilities provided for that purpose in accordance with Council Directive 90/667/EEC''} which are nearest to the border inspection post. 3• Paragraph 2 shall not apply where an authorization has been given by the competent in accordance with authority Directive 90/667/EEC. provided that there is no risk for human and animal health. the use of products to permit in order 4. The declarant or his representative or the person in charge of the consignment shall be liable for the costs incurred in the process of re-dispatching or destroying the consignment or using the product for other purposes. Furthermore, where an irregularity has been found to be the result of negligence or a deliberate action, the competent authority shall impose on the declarant a financial penalty of at least 20% of the customs value of the product. 5. The provisions of Decision 92/438/EEC shall apply. 6. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. Article 17 The Commission, in accordance with the procedure referred to in Article 26, shall on the basis of the plans referred to in the second paragraph, adopt the rules applicable to imports into certain parts of the territories referred to in Annex I, to take account of the natural constraints specific to these territories in particular their remoteness from a mainland part of the Community territory. To that end France and Greece shall submit a plan to the Commission setting out, in the particular case of the French Overseas Departments and of certain islands and groups of islands, the nature of the checks to be carried out on imports into those regions of products originating in third countries taking into account the natural geographical constraints specific to these territories. These plans must specify the checks carried out to prevent products introduced into these territories being redispatched under any circumstances to other parts of Community territory. (!,) OJ No L 363, 27. 12. 1990, p. 51. Directive as amended by the Act of Accession of Austria, Finland and Sweden. 15 Article 18 1. The Commission, in accordance with the procedure referred to in Article 26, shall draw up a list of plant products covered by Article 2(2)(a) second indent which, in particular on account of their subsequent destination, may give rise to the risk of spreading infectious or contagious animal diseases and on that account are to be subjected to the veterinary checks laid down by this Directive, and in particular those provided for in Article 4, in order to verify the origin and planned destination of such plant products. The following shall be adopted in accordance with the same procedure: the animal health conditions which third countries must comply with and the guarantees which must be offered in particular the nature of any processing to be required in the light of their animal health situation;, a list of the third countries which, in the light of the guarantees, may be authorized to export to the Community the plant products referred to in the first paragraph; any specific inspection procedures, in particular with reference to sampling which may be applied to these products, especially in the case of imports in bulk. 2. Fresh fish immediately landed from a fishing vessel flying a third-country flag shall in accordance with Council Regulation (EC) No 1093/94( 2) - and before it can be imported into any of the territories referred to in Annex I - undergo the checks laid down in respect of fish immediately landed by fishing vessels flying the flag of a Member State. 3. In accordance with the procedure referred to in Article 26, derogations may be granted from the provisions of Article 6(1 )(b) and, as regards the staff responsible for carrying out the checks, those of Article 4(1) for border inspection posts where fishery products are presented as referred to in Council Directive 91/493/EECU}. Article 19 Without prejudice to the provisions of this Chapter, the official veterinarian or the competent authority shall, where it is suspected that veterinary legislation has not been complied with or there is doubt as to the identity of a product, carry out any veterinary checks it deems appropriate. Article 20 1. Austria shall have a period of three years from the date of entry into force of the Accession Treaty to introduce the checking system provided for in this Chapter. During that transitional period, Austria shall apply the measures which will be determined before the date of entry into force of the Accession Treaty in accordance with the procedure laid down in Article 26. These measures shall ensure that all the necessary checks are carried out as close as possible to the Community's external frontier. 2. Finland shall have a period of two years from the date of entry into force of the Accession Treaty to introduce the checking system provided for in this Chapter During that transitional period, Finland shall apply the measures which will be determined before the date of entry into force of the Accession Treaty, in accordance with the procedure laid down in Article 26. These measures shall ensure that all the necessary checks are carried out as close as possible to the Community's external frontier. (12) (13) OJ No L 121, 12. 5. 1994, p. 3. OJ No L 268, 24. 9. 1991, p. 15. Directive as amended by Directive 95/71/EC (OJ No L 332, 30. 12. 1995, p. 40). 16 CHAPTER II SAFEGUARD PROVISIONS Article 21 1. in the territory of a third country, a disease in Council If, Directive 82/894/EEC(14), a zoonosis or other disease or phenomenon liable to present a serious threat to animal or public health manifests or spreads itself, or if any other serious animal health or public health reason so warrants, in particular in the light of the findings of its veterinary experts, the Commission shall, acting on its own initiative or at the request of a Member State, adopt one of the following measures without delay and depending on the gravity of the situation: referred to suspend imports from that part or all of the third country concerned, and where appropriate from the third country of transit; set special conditions in respect of products coming from part or all of the third country concerned. 2. If one of the checks provided for in this Directive indicates that a consignment of products is likely to constitute a danger to animal or human health, the competent veterinary authority shall immediately take the following measures: it shall seize and destroy the consignment; it shall immediately inform the other border inspection posts and the Commission in accordance with of Decision 92/438/EEC. the findings and of the origin of the products, 3. In the case provided for in paragraph 1, the Commission may take provisional protective measures in respect of products covered by Articles 11 and 12. 4. Representatives of the Commission may make an immediate visit to the third country concerned. 5 Within ten working days, the Standing Veterinary Committee shall have the matter referred to it, pursuant to the terms of Article 25, with a view to the extension, amendment or repeal of the measures provided for in paragraphs 1 and 3. The procedure provided for in Article 25 may also be used for adopting the necessary decisions, including those relating to intra-Community movement of products and to transit. 6. Decisions to modify, repeal or extend measures decided on by virtue of paragraphs 1, 2, 3 and 5 shall be taken in accordance with the procedure laid down in Article 25. 7. Detailed rules for the application of this Chapter shall be adopted, where necessary, in accordance with the procedure laid down in Article 26. (14) OJ No L 378, 31. 12. 1982, p. 58. Directive as amended by the Act of Accession of Austria, Finland and Sweden. 17 CHAPTER III INSPECTION Article 22 1. Veterinary experts from the Commission may, in conjunction with the competent national authorities and whenever uniform application of the requirements of this Directive renders it necessary, verify that the border inspection posts approved in accordance with Article 6 satisfy the criteria listed in Annex II. 2. Veterinary experts from the Commission may, in conjunction with the competent authorities, make on-the-spot checks. 3. A Member State in whose territory an inspection is made shall provide the veterinary experts from the Commission with any assistance they may require in the performance of their tasks. 4. The Commission shall inform the Member States of the outcome of the checks. 5. Where the Commission deems that the outcome of checks so justifies, it shall review the situation within the Standing Veterinary Committee. It may adopt the necessary decisions in accordance with the procedure referred to in Article 25. 6. The Commission shall monitor developments; in the light of such developments and in accordance with the procedure referred to in Article 25, it may amend or repeal the decisions referred to in paragraph 5. 7. Detailed rules for the application of this Article shall be adopted, where necessary, in accordance with the procedure referred to in Article 26. Article 23 I. Where, on the basis of the checks carried out at the point where the products are marketed, a competent authority of a Member State considers that this Directive is not being complied with at a border inspection post referred to in Article 6, or in a customs warehouse, free zone or free warehouse referred to in Article 12 of another Member State, it shall contact the competent central authority of that Member State without delay. The latter shall take all the necessary measures and inform the competent authority of the first Member State of the nature of the checks made, the decisions taken and the reasons for such decisions. If the competent authority of the first Member State believes the measures are insufficient it shall examine, with the competent authority of the Member State in question, the possible ways and means of remedying the situation, where necessary by visiting the Member State in question. Where the checks referred to in the first subparagraph show repeated non-compliance with this Directive, the competent authority of the Member State of destination shall inform the Commission and the competent authorities of the other Member States. The Commission may, at the request of the competent authority of the Member State of destination or on its own initiative, and taking account of the type of infringements complained of: send an inspection team to the Member State in question in conjunction with the competent national authorities; 18 request the competent authority to step up the checks carried out at the border inspection post, customs warehouse, free zone or free warehouse in question. Pending the Commission's findings, the Member State attacked must, at the request of the Member State of destination, step up checks at the border inspection post, customs warehouse, free zone or free warehouse concerned. The Member State of destination may, for its part, intensify checks on products coming from these sources. At the request of one of the two Member States concerned - where the irregularities are confirmed by the inspection referred to in the first indent of the fifth subparagraph - the Commission must, in accordance with the procedure referred to in Article 25, take the appropriate measures. These measures must be confirmed or reviewed as soon as possible in accordance with the same procedure. 2. Rights of appeal available under the laws in force in the Member States against decisions by the competent authorities shall not be affected by this Directive. Decisions taken by the competent authority and the reasons for such decisions shall be notified to the operator concerned by such decisions, or to his representative. If the operator concerned or his representative so requests, the said decisions and reasons shall be forwarded to him in writing, together with details of the rights of appeal available to him under the law in force in the Member State performing the checks, and also the procedure and time-limits applicable. 3. The detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. Article 24 1 Each Member State shall draw up a programme for the exchange of officials empowered to carry out the checks on products coming from third countries. 2 The Commission and the Member States shall coordinate the programmes referred to in paragraph 1 within the Standing Veterinary Committee. 3. Member States shall take all the measures necessary to allow implementation of the programmes resulting from the coordination referred to in paragraph 2. 4 Each year, in the Standing Veterinary Committee, the implementation of programmes shall be reviewed on the basis of reports drawn up by the Member States. 5. Member States shall take into account the experience gained in order to improve and develop the programmes on exchanges. 6 A financial contribution from the Community may be granted in order to promote the efficient development of exchange programmes. Detailed rules for the Community's financial contribution and the estimated amount to be charged to the Community budget are laid down in Council Decision 90/424/EEC(n). 7. Detailed rules for the application of paragraphs 1, 4 and 5 shall be adopted where necessary, in accordance with the procedure referred to in Article 26. (15) OJ No L 224, 18. 8. 1990, p. 19. Decision as last amended by Decision 94/370/EC (OJNo L 168, 2. 7. 1994, p. 31). 19 CHAPTER IV GENERAL PROVISIONS Article 25 reference the Where Standing Veterinary Committee set up by Council Decision 68/361/EEC(U)) shall take decisions in accordance with the rules established in Article 17 of Directive 89/662/EEC. the procedure provided this Article, is made for in to Article 26 reference Where the the procedure Standing Veterinary Committee shall take decisions in accordance with the rules established in Article 18 of Directive 89/662/EEC. this Article, is made defined in to Article 27 Annex II to this Directive may be supplemented in accordance with the procedure referred to in Article 26. Article 28 This Directive shall be without prejudice to obligations arising from customs rules. Article 29 Member States, in particular Austria and Finland, may make use of the Community financial assistance provided for in Article 38 of Decision 90/424/EEC for the implementation of this Directive. Article 30 Directive 90/675/EEC is repealed with effect from 1 January 1997. References to the Directive repealed in the first paragraph shall be construed as references to this Directive and shall be correlated in accordance with the table set out in Annex III. Article 31 1. Member States shall adopt and publish the laws, regulations and administrative this Directive before provisions necessary 1 January 1997; they shall forthwith notify the Commission thereof. the provisions of to comply with They shall apply those provisions as from 1 January 1997. When Member States adopt these provisions, these shall contain a reference to this Directive or shall be accompanied by such reference at the time of their official publication. The procedure for such reference shall be adopted by Member States. 2. Member States shall communicate to the Commission the texts of the main provisions of national law which they adopt in the field covered by this Directive. (16) OJ No L 255, 18. 10. 1968, p. 23 20 This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Communities. Article 32 This Directive is addressed to the Member States. Article 33 Done at Brussels, For the Council The President 21 ANNEX I 1. The territory of the Kingdom of Belgium. 2. The territory of the Kingdom of Denmark with the exception of the Faroe Islands and Greenland. 3. The territory of the Federal Republic of Germany. 4. The territory of the Kingdom of Spain with the exception of Ceuta and Melilla. 5. The territory of the Hellenic Republic. 6. The territory of the French Republic. 7. The territory of Ireland. 8. The territory of the Italian Republic. 9. The territory of the Grand Duchy of Luxembourg. 10. The territory of the Kingdom of the Netherlands in Europe. 11. The territory of the Portuguese Republic. 12. The territory of the United Kingdom of Great Britain and Northern Ireland. 13. The territory of the Republic of Austria. 14. The territory of the Republic of Finland. 15. The territory of the Kingdom of Sweden. 22 ANNEX II In order to obtain Community approval, border inspection posts must have: the staff necessary to check the documents (public health and animal health certificates or any other document laid down by Community legislation) accompanying the products; sufficient numbers, in relation to the quantity of products dealt with by the border inspection post, of veterinary and auxiliary staff specially trained to carry out checks that products correspond to the accompanying documents and systematic physical checks of each product consignment; sufficient staff to take and process random samples of product consignments presented at a given border inspection post; sufficiently large premises at the disposal of the staff responsible for carrying out veterinary checks; appropriate premises and facilities for taking and processing the samples for the routine checks laid down in Community rules (microbiological standards); the services of a specialized laboratory situated near the border inspection post and able to carry out special tests on the samples taken at that post; premises and cold stores permitting the storage of part-consignments taken for testing and products whose release for free circulation has not been authorized by the veterinary officer responsible for the border inspection post; appropriate equipment permitting the rapid exchange of information, in particular with other border inspection posts, (through the computerized system provided for in Article 20 of Directive 90/425/EEC or the Shift project). 23 Table of correspondence Directive 90/675/EEC Directive ANNEX III Article 1. 1 Article 1. 2 Article 2. 1 Article 2. 2(a) Article 2. 2(b) Article 2. 2(c) Article 2. 2(d) Article 2. 2(e) Article 2. 2(f) Article 2. 2(g) Article 2. 2(h) Article 3. 1 Article 3. 2 Article 3. 3 Article 3. 4 Article 4. 1 Article 4. 2 Article 4. 3 Article 4. 4 Article 4. 5 Article 5. 1 Article 5. 2 Article 5. 3 Article 5. 4 Article 6. 1 (a) and (b) Article 6. 1 (c) Article 6. 2 Article 6. 3 Article 6. 4 Article 7. 1 Article 7. 2 Article 7. 3 Article 7. 4 Article 7. 5 Article 7. 6 Article 8. 1 Article 8. 2 Article 8. 3 Article 8. 4 Article 8. 5 Article 9 Article 10 (1) and (2) Article 10. 3 Article 11. 1 Article 11. 2(a) Article 1. 1 Article 1. 2 Article 2. 1 Article 2. 2(a) Article 2. 2(b) Article 2. 2(d) Article 2. 2(f) Article 2. 2(g) Article 2. 2(h) Article 4. 4 Article 4. 6 Article 8. 1(a) and 8. 2 last subparagraph Article 4. 1 last subparagraph and Article 8. 2(d) Article 4. 1 first subparagraph Article 8. 2(a), (b) and (c) Article 8. 3 first subparagraph Article 10. 1 second indent Article 10. 1 first indent Article 10. 2 Article 9. 1 and 9. 2 Article 9. 3 and 9. 4 except last subparagraph Article 9. 5 Article 10. 2 third indent Article 8. 1(b) Article 3 Article 10. 1 first indent Article 10. 3 Article 10. 2 Article 4. 5 Article 4. 6 Article 8. 4 Article 8. 3 second subparagraph Article 12. 1(b) 24 Table of correspondence (continued) Directive 90/675/EEC Directive Article 12. 1(c) Article 13. 2 Article 13. 3 Article 5 and Article 6 Article 7. 1 Article 7. 1 last indent Article 7. 1 second indent Article 5. 1 and Article 6. 1 Article 6. 4 Article 6. 2 Article 7. 2 Article 13 Article 14. 1(i) - (iv) Article 14. 1(i) - (iv) Article 16. 1(a) Article 16. 1(b) Article 16. 2 Article 16. 3 Article 16. 5 Article 16. 4 Article 17 Article 18 Article 15 Article 19 Article 20 Article 21 Article 22 Article 23 Article 24 Article 25 Article 26 Article 31 Article 33 ANNEX I ANNEX II Article 11. 2(b) Article 11. 2(c) first indent Article 11. 2(c) second inden Article 11. 2(c) third indent Article 11. 2(d) Article 11. 3 Article 11. 4 Article 12. 1 Article 12. 2 Article 12. 3 first indent Article 12. 3 second indent Article 12. 3 third indent Article 12. 3 fourth indent Article 12. 3 fifth indent Article 12. 3 sixth indent Article 12. 4 Article 12. 5 Article 12. 6 Article 12. 7 Article 12. 8 Article 13 Article 14 Article 15. 1(a) - (d) Article 15. 1(e) Article 15. 2 Article 15. 3 Article 16. 1 Article 16. 2(a) Article 16. 2(b) Article 16. 3 Article 16. 4 Article 16. 5 Article 16. 6 Article 17 Article 18 Article 19 Article 20 Article 21 Article 22 Article 23 Article 24 Article 25 Article 26 Article 27 Article 28 Article 29 Article 30 ANNEX I ANNEX II 25 Proposal for a COUNCIL DIRECTIVE amending Directives 71/118/EEC, 72/462/EEC, 85/73/EEC, 91/67/EEC, 91/492/EEC, 91/493/EEC, 92/45/EEC and 92/118/EEC as regards the organization of veterinary checks on products entering the Community from third countries 26 EXPLANATORY MEMORANDUM Council Directive 90/675/EEC, laying down the principles governing the organization of veterinary checks on products entering the Community from third countries , introduces arrangements for a new system of veterinary checks for products entering the Community from third countries. With the establishment of the Internal Market it has been all the more necessary to fix common principles governing the organization of checks and the movement inside the Community of products from third countries given that internal border checks were to be abolished. Since the entry into force of Directive 90/675/EEC experiences have been gained and developments have taken place with regard to the implementation of the Directive which together with reasons of transparency calls for a modification of the Directive. The proposed modifications in the above mentioned Directive has consequences for the text of a number of existing Directives. For that reason these Directives must be brought into line with the modifications provided for in Directive 90/675/EEC. (1) OJ No L 373, 31. 12. 1990, p. 1. Directive as last amended by Directive 95/52/EC ( O J N o L 2 6 5, 8. 11. 1995, p. 16). 27 Proposal for a COUNCIL DIRECTIVE 9 6 / 0 1 10 (CNS) amending Directives 71/118/EEC, 72/462/EEC, 85/73/EEC, 91/67/EEC, 91/492/EEC, 91/493/EEC, 92/45/EEC and 92/118/EEC as regards the organization of veterinary checks on products entering the Community from third countries THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission0}, Having regard to the opinion of the European Parliament^, Having regard to the opinion of the Economic and Social Committee^, Whereas for the sake of clarity and rationality, Council Directive 90/675/EEC(4), which laid down the principles governing the organization of veterinary checks on products entering the Community from third countries, was repealed and replaced by Directive 96/. /ECp); Whereas the replacement of Directive 90/675/EEC by Directive 96/. /EC has consequences for the existing texts of the following Council Directives: Directive 71/118/EEC of 15 February 1971 on health problems affecting the production and placing on the market of fresh poultry meat((>. Directive 72/462/EEC of 12 December 1972 on health and veterinary inspection problems upon importation of bovine, ovine, caprine animals and swine, fresh meat or meat products from thud countries1'\ Directive 85/73/EEC of 29 January 1985 on the financing of health inspections and controls of fresh meat and poultry meafM, Directive 91/67/EEC of 28 January 1991 concerning the animal health conditions governing the placing on the market of aquaculture animals and products(0), OJ No C 0. 1 No C 0. 1 No C OJ No L 373, 31. 12. 1990, p. 1. Directive as last amended by Directive 9S/52 EC (OJ No L 265, 8. 11 1995, p. 16). OJ No L OJ No L 55, 8. 3. 1971, p. 23. Directive as (OJ No L 368, 31. 12. 1994, p. 10). OJ No L 302, 31. 12. 1972, p. 28. Directive as amended by the Act of Accession of Austria, Finland and Sweden. OJ No L 32,5. 2 1985, p. 14. Directive as (OJ No L 78, 28. 3. 1996, p. 30). OJ No L 46, 19. 2. 1991, p. 1 Directive as (OJ No L 243, 11. 10. 1995, p. I). last amended by Directive 94/65/EC last amended by Directive 96/17/EC last amended by Directive 95/22 EC 28 Directive 91/492/EEC of 15 July 1991 laying down the health conditions for the production and the placing on the market of live bivalve molluscs(10), Directive 91/493/EEC of 22 July 1991 laying down the health conditions for the production and the placing on the market of fishery products00, Directive 92/45/EEC of 16 June 1992 on public health and animal health problems relating to the killing of wild game and the placing on the market of wild-game meat(12), Directive 92/118/EEC of 17 December 1992 laying down animal health and public health requirements governing trade in and imports into the Community of products not subject to the said requirements laid down in specific Community rules referred to in Annex A(I) to Directive 89/662/EEC and, as regards pathogens, to Directive 90/425/EEC(13). Whereas for that reason, those Directives should be brought into line with the text of Directive 96/. /EC, HAS ADOPTED THIS DIRECTIVE: Article 1 1. Directive 71/118/EEC is amended as follows: (a) in Article l4B2(a), the second sentence is deleted; (b) in Article 17, the second subparagraph is deleted. 2. Directive 72/462/EEC is amended as follows: (a) in Article 31a, "Article 17 of Directive 90/675/EEC" is replaced by "Article 17 of Directive 96/. /EC"; (b) Article 31 is deleted. 3 Directive 85/73/EEC is amended as follows: in Article 3(1), "Article 20 of Directive 90/675/EEC" is replaced by "Article 22 of Directive 96/. /EC". 4 Directive 91/67/EEC is amended as follows: (a) Article 23 is replaced by the following: rim UD ( i :j ( H) OJ No L 268, 24. 9. 1991, p. 1. Directive as amended by the Act of Accession of Austria, Finland and Sweden. OJ No L 268, 24. 9. 1991, p. 15. Directive as amended by Directive 95/71/EC (OJ No L 332, 30. 12. 1995, p. 40). OJ No L 268, 14. 9. 1992, p. 35! Directive as amended by the Act of Accession of Austria, Finland and Sweden. OJ No L 62, 15. 3. 1993, p. 49. Directive as Decision 96/103/EC (OJ No L 24, 31. 1. 1996, p. 28). last amended by Commission 29 "Article 23 "The principles and rules laid down in Directives 91/496/EEC and 96/. /EC shall apply, with particular reference to the organization of and follow-up to the checks to be carried out by the Member States and the safeguard measures to be implemented"; (b) Article 24 is deleted. Directive 91/492/EEC is amended as follows: the second subparagraph of Article 10 is deleted. Directive 91/493/EEC is amended as follows: (a) in the second subparagraph of Article 10, "Article 18(3) of Directive 90/675/EEC" is replaced by "Article 18(2) of Directive 96/. /EC"; (b) Article 12(2) is deleted. Directive 92/45/EEC is amended as follows: (a) Article 17(2) is deleted; (b) Article 19(2) is deleted. Directive 92/118/EEC is amended as follows: (a) in the second subparagraph of Article 12( 1 ), "Article 8(2) of Directive 90/675/EEC" is replaced by "Article 4(4) of Directive 96/. /EC"; (b) Article 12(2) is deleted. Article 2 Member States shall adopt and publish provisions necessary 1 January 1997; they shall forthwith notify the Commission thereof. the laws, regulations and administrative this Directive before the provisions of to comply with They shall apply those provisions as from 1 January 1997. When Member States adopt these provisions, these shall contain a reference to this Directive or shall be accompanied by such reference at the time of their official publication. The procedure for such reference shall be adopted by Member States. Member States shall communicate to the Commission the texts of the main provisions of national law which they adopt in the field covered by this Directive. 30 This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Communities. Article 3 This Directive is addressed to the Member States. Article 4 Done at Brussels, For the Council The President 31 ISSN 0254-1475 COM(96) 170 final DOCUMENTS EN 03 Catalogue number : CB-CO-96-202-EN-C ISBN 92-78-03494-0 Office for Official Publications of the European Communities L-2985 Luxembourg 32

Proposal for a Council Decision concerning the placing on the market of genetically modified maize (Zea mays L.) with the combined modification for insecticidal properties conferred by the Bt-endotoxin gene and increased tolerance to the herbicide glufosinate ammonium pursuant to Council Directive 90/220/EEC

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 20. 05. 1996 COM(96) 206 final Proposal for a COUNCIL DECISION concerning the placing on the market of genetically modified maize (Zea mays L. ) with the combined modification for insecticidal properties conferred by the Bt-endotoxin gene and increased tolerance to the herbicide glufosinate ammonium pursuant to Council Directive 90/220/EEC (presented by the Commission) EXPLANATORY MEMORANDUM 1. 2. 3. 4. 5. 6. In accordance with Article 11 of Directive 90/220/EEC, the French authorities received a notification (réf. C/F/94/11-03) concerning the placing on the market of maize (Zea mays L. ) which has been genetically modified to include pesticide properties (conferred by the Bt-endotoxin gene) and improved tolerance of the herbicide glufosinate ammonium. In accordance with Article 12 of the Directive, the competent French authority forwarded the dossier to the Commission with a favourable opinion. The competent authorities of certain other Member States (A, B, D, DK, I, S and UK) raised objections regarding specific points, including labelling, the effects on human health of the non-expressed (3-Iactamase gene, the environmental impact of using herbicides on plants and the possible development of resistance to the Bt- toxin. The Commission must therefore take a decision in accordance with the procedure laid down in Article 21 of Directive 90/220/EEC. A proposal for a decision on the measures to be taken was sent for opinion to the Committee set up by Article 21 of the Directive. The Committee has not delivered an opinion, which means that, in accordance with Article 21 of Directive 90/220/EEC, the Commission must, without delay, submit to the Council a proposal relating to the measures to be taken. The Council must act by a qualified majority. The same Article stipulates that if, on the expiry of a period of three months from the date of referral to the Council, the latter has not acted, the proposed measures must be adopted by the Commission. ft- THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to Council Directive 90/220/EEC of 23 April 1990 on the deliberate release into the environment of genetically modified organisms,1 and in particular Article 13 thereof, Having regard to the proposal from the Commission, Whereas Articles 10 to 18 of Directive 90/220/EEC lay down a Community procedure enabling the competent authority of a Member State to give consent to the placing on the market of products consisting of genetically modified organisms; Whereas a notification concerning the placing on the market of such a product has been submitted to the competent authority of a Member State (France); Whereas the competent authority of France subsequently forwarded the dossier to the Commission with a favourable opinion; whereas the competent authorities of other Member States raised objections to the said dossier; Whereas, therefore, pursuant to Article 13(3), the Commission had to take a decision in accordance with the procedure laid down in Article 21 of the Directive; Whereas, having examined each objection in light of the provisions of Directive 90/220/EEC and analyzed the information supplied in the dossier, the Commission reached the following conclusions: • • • • The applicant provided information on all the newly introduced genes, and not only those expressed. The risk assessment took account of all the introduced genes whether expressed or not. Assessment was also made in this case of the risks from the presence of the non-expressed (3-lactamase gene with a bacterial promoter. In the case of products intended for use as human food or animal feed, the assessment under Directive 90/220/EEC determines whether risk genetic modification harmful result effects for human health and the environment. toxic or liable any in to is is no reason There into maize will have any adverse effects on human health or environment. introduction of to believe these genes the that the Possible development of resistance to the truncated CrylA(b) protein in insects cannot be considered an adverse environmental effect, as existing agricultural means of controlling such resistant species of insects will still be available. OJ L 117, 8. 5. 1990, p. 15. Directive as last amended by Commission Directive 94/15/EC (OJ L 103, 22. 5. 1994, p. 20). -2 - There are no safety grounds for mentioning on the label that the product has been obtained by genetic modification techniques. • The label should indicate that the plants have increased tolerance to the herbicide glufosinate ammonium; Whereas authorization of chemical herbicides and assessment of how their use impacts on human health and the environment are governed by Council Directive 91/414/EEC of July 1991 concerning the placing of plant protection products on the market,2 and not by Council Directive 90/220/EEC; Whereas the product under consideration has been notified for unrestricted use, including human food and animal feed; Whereas this decision does not exclude the application, in compliance with Community law, of Member State provisions on human food or animal feed safety to the extent that they are not specifically related to the genetic modification of the product or its components; Whereas Article 11(6) and Article 16(1) of Directive 90/220/EEC provide additional safeguards if new information on risks of the product becomes available; Whereas the Committee set up by Article 21 of Directive 90/220/EEC and consulted by written procedure on 8 March 1996 has not delivered an opinion on the measures laid down in a draft Commission decision, OJ L 230, 19. 08. 1991, p. 1. Directive as last amended by Directive 93/43/EC (OJ L 227, p. 31). -3 - HAS ADOPTED THIS DECISION: Article 1 1. Without prejudice to other Community legislation and subject to the conditions set out in paragraphs 2 and 3, the French authorities shall give consent to the placing on the market of the following product, notified by Ciba-Geigy Limited (Ref. C/F/94/11-03), in accordance with Article 13 of Directive 90/220/EEC. The product consists of inbred lines and hybrids derived from a maize (Zea mays L. ) line (CG 00256-176) which has been transformed using plasmids containing: (i) (ii) one copy of the bar gene, from Streptomyces hygroscopisus, (encoding a phosphinothricin acetyltransferase), under the regulation of the 35S promoter and the 35S terminator from the cauliflower mosaic virus (CaMV); two copies of a synthetic truncated gene encoding an insect control protein representing the active portion of the CrylA(b) 8-endotoxin, from Bacillus thuringiensis subsp. kurstaki strain HD1-9 and containing intron # 9 from the maize phosphoenolpyruvate carboxylase gene; the first copy is under the regulation of a promoter from the maize phosphoenolpyruvate carboxylase gene and the CaMV 35S terminator, and the second copy under the regulation of a promoter derived from a maize calcium-dependent protein kinase gene and the CaMV 35S terminator; (iii) the prokaryotic gene bla (coding for a j3-lactamase conferring resistance to ampiciilin) under prokaryotic promoter. 2. 3. This consent covers any progeny derived from crosses of this product with any traditionally bred maize. Without prejudice to other labelling required by Community legislation, the label of each package of seeds shall indicate that the product: protects itself against corn borers* and, has increased tolerance to the herbicide glufosinate-ammonium. - 4- This Decision is addressed to the Member States. Article 2 Done at Brussels, For the Council ISSN 0254-1475 COM(96) 206 final DOCUMENTS EN 03 15 Catalogue number : CB-CO-96-216-EN-C ISBN 92-78-03901-2 Office for Official Publications of the European Communities L-2985 Luxembourg

Proposal for a COUNCIL DIRECTIVE laying down the principles governing the organization of veterinary checks on products entering the Community from third countries

http://publications.europa.eu/resource/cellar/337a038b-bafc-41f9-96d2-8b01bd4215b0

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 20. 05. 1996 COM(96) 170 final 96/0109 (CNS) 96/0110 (CNS) Proposal for a COUNCIL DIRECTIVE laying down the principles governing the organization of veterinary checks on products entering the Community from third countries Proposal for a COUNCIL DIRECTIVE amending Directives 71/118/EEC, 72/462/EEC, 85/73/EEC, 91/67/EEC, 91/492/EEC, 91/493/EEC, 92/45/EEC and 92/118/EEC as regards the organization of veterinary checks on products entering the Community from third countries (presented by the Commission) EXPLANATORY MEMORANDUM Council Directive 90/675/EEC, laying down the principles governing the organization of veterinary checks on products entering the Community from third countries , introduces arrangements for a new system of veterinary checks for products entering the Community from third countries. With the establishment of the Internal Market, it has been all the more necessary to fix common principles governing the organization of checks and the movement inside the Community of products from third countries given that internal border checks were to be abolished. Since the entry into force of Directive 90/675/EEC, experiences have been gained and developments have taken place with regard to the implementation of the Directive which together with reasons of transparency calls for a modification of the Directive. For all products of animal origin imported from third countries harmonized conditions are in the process of being completed; therefore one single checking regime should be applied and in any case the provisions for the bilateral agreements should be abolished for which there is no need. In a system of veterinary checks on products of animal origin, it is not necessary to have a separate identity check, since such a check should primarily be part of the physical check. For products arriving at the Community border, without having the Community as final destination, strict rules are established to ensure that these products will leave the Community. Measures are laid down for consignments which have been introduced into the territory of the Community without being presented for veterinary checks. Measures are also laid down for the re-entry of Community consignments which have been refused by a third country. Article 1 includes the whole text of the Directive and the modifications are underlined to improve readability of the text. In addition, a table of correspondence is laid down in an Annex to the modified Directive. (1) OJ No L 373, 31. 12. 1990, p. 1. Directive as last amended by Directive 95/52/EC ( O J N o L 2 6 5, 8. 11. 1995, p. 16). Proposal for a COUNCIL DIRECTIVE 9 6 / 0 1 09 (CNS) laying down the principles governing the organization of veterinary checks on products entering the Community from third countries THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission(1), Having regard to the opinion of the European Parliament^, Having regard to the opinion of the Economic and Social Committee(3), Whereas the animal products or products of animal origin and plant products subject to checks intended to prevent the spread of contagious or infectious animal diseases are listed in Annex II to the Treaty; Whereas laying down principles at Community level on the organization of veterinary checks on products coming from third countries helps to safeguard supplies and ensure market stability while also harmonizing the measures necessary to ensure the protection of animal and public health; Whereas the establishment of the Internal Market has accentuated the need to lay down common principles for the veterinary checks, given that internal border checks have been abolished; Whereas, since Directive 90/675/EEC of 10 December 1990 laying down the principles governing the organization of veterinary checks on products entering the Community from third countries(4) took effect, developments have taken place in the application of the Directive and new experiences have been encountered; whereas in the interests of transparency, the Directive should be amended; Whereas harmonized conditions for all products of animal origin imported from third countries into the Community should be established; whereas for that reason a single checking scheme for these products should be applied and the requisite adjustments made; Whereas in the new system of veterinary checks only a documentary and physical check need to be carried out; whereas for that reason the identity check needs to be abolished; Whereas rules must be laid down whereby consignments which have been introduced into the Community without being presented will undergo the veterinary checks at a border inspection post; ( i) (2) (3) (4) OJNo C OJ No C OJNo C OJ No L 373, 31. 12. 1990, p. 1. Directive as last amended by Directive 95/52/EC (OJ No L 265, 8. 11. 1995, p. 16). Whereas Member States, in certain cases, may impose additional requirements for products to be imported; whereas the Member State of arrival has to take account of these extra national requirements when making checks; Whereas with regard to the transhipment by sea or air of products with a final destination in the Community clear rules should be laid down on where to carry out the checks; whereas for that reason the checks should, in principle, be carried out at the border inspection post of destination; Whereas Community legislation requires certain products to be monitored from arrival in the Community to the place of destination to safeguard public and animal health; whereas for that reason strict rules must be laid down; Whereas strict rules should be established to ensure that products arriving at the Community border without having the Community as final destination will leave the Community; Whereas those products which comply with Community requirements for importation should be separated from those which do not; whereas to take account of these differences separate checking systems should be laid down; Whereas the supply of products of animal origin for the crew and passengers of sea and air transport is of considerable commercial importance in the Community; whereas those products often do not comply with Community requirements; whereas for that reason strict rules should be laid down to safeguard public and animal health; Whereas a Community product which is refused by a third country and which is returned to the Community should be regarded as no longer fulfilling the Community requirements; whereas for that reason strict rules in that regard should be laid down to safeguard public and animal health; Whereas extra safeguards should be laid down with a view to the prevention of fraud and to provide for harmonized measures on fraudulent operations and irregularities; Whereas Directive 90/675/EEC has been substantially amended on several occasions; whereas, on the occasion of the new amendments required, it is thus advisable for the sake of clarity and rationality to repeal and replace that Directive, HAS ADOPTED THIS DIRECTIVE: Article 1 Veterinary' checks on products from third countries introduced into one of the territories as referred to in Annex I shall be carried out by the Member States in accordance with this Directive. Article 2 I. For the purposes of this Directive, the definitions contained in Article 2 of Council Directives 89/662/EEC(5) and 90/425/EEClo), respectively, shall apply as necessary. (5) W OJ No L 395, 30. 12. 1989, p. 13. Directive as last amended by Directive 92/118/EEC (OJ No L 62, 15. 3. 1992, p. 49). OJ No L 224, 18. 8. 1990, p. 29. Directive as last amended by Directive 92/118/EEC. 4 In addition: (a) "products" means products of animal origin referred to in Directives 89/662/EEC and 90/425/EEC including by-products of animal origin not covered by Annex II to the Treaty, or, in the circumstances described in Article 18 fresh fish landed immediately from a fishing vessel; certain plant products; (b) "documentary check" means the examination of the veterinary certificate(s) or veterinary document(s), or other document(s) accompanying a consignment; (c) "physical check" means the verification of the consistency between the veterinary certificated) or veterinary document(s) or other document(s) provided for by veterinary legislation and the product; a check of the product itself, which may include checks on packaging and temperature and also sampling and laboratory testing; (d) "declarant" means any physical or legal person who presents products for introduction into one of the territories set out in Annex I; (e) "consignment" means a quantity of products of the same type, covered by the same veterinary certificate(s) or veterinary document(s), or other document(s) provided for by veterinary legislation, conveyed by the same means of transport and coming from the same third country or part of such country; (f) "border inspection post" means any inspection post, designated and approved in accordance with Article 6, for the carrying out of veterinary checks on products arriving at the border of one of the territories referred to in Annex I from third countries; (g) "import" means clearance by customs for release for free circulation; (h) "import conditions" means veterinary requirements on products to be imported, as laid down in Community legislation; (i) "competent authority" means the central authority of a Member State, empowered to carry out veterinary or zootechnical checks, or any authority to which it has delegated such powers. CHAPTER I ORGANIZATION AND EFFECTS OF CHECKS Article 3 Member States shall ensure that consignments from third countries shall not be introduced into one of the territories referred to in Annex I without having undergone the required veterinary checks. 2. Member States shall ensure that consignments are introduced into one of the territories referred to in Annex I only via a border inspection post. On arrival in one of the territories set out in Annex I, each consignment shall be conveyed direct to the nearest border inspection post in order to undergo there, without delay, the required veterinary checks. 3. Member States shall ensure that declarants are obliged to give prior notification of details of the consignment to the veterinary staff of the border inspection post to which the products are to be submitted. 4. Customs authorities shall only allow the intended customs-approved treatment or use of the consignments, in accordance with the certificate referred to in Article 5(1). 5. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. Article 4 1. Each consignment shall be subject to veterinary checks in the border inspection post referred to in Article 3(2) by staff of the competent authority acting under the responsibility of the official veterinarian. to in Article 3(3) 2. For each consignment the official veterinarian shall, on the basis of the information to referred Council Decision 92/438/EEC(7) on computerization of veterinary import procedures. Furthermore, for each consignment intended for import into one of the territories referred to in Annex I hereto, he shall consult the database referred to in Annex II to Decision 92/438/EEC. the database in Annex I referred consult to 3. Each consignment shall be subject to a documentary check irrespective of the customs-approved treatment or use, in order to establish: (a) that the information in the veterinary certificate(s) or veterinary document(s) or other document(s) corresponds to the information referred to in Article 3(3); (b) in the case of imports, that the particulars contained in the veterinary certificate(s) or veterinary document(s) or other document(s) afford the guarantees required. 4. The official veterinarian shall, where so required by this Directive, carry out a physical check on the basis of a representative sample of the consignment in order to: (a) check that the products correspond to the accompanying veterinary certificateds) or veterinary document(s) or other document(s) and bear any stamps or marks required by veterinary legislation; (b) check that the products are in a fit state to be used for the purpose specified in the accompanying certificate or document; (c) perform any laboratory tests which have to be carried out on the spot; (d) take any official samples required and have them analysed as soon as possible. 5. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. (7) OJ No L 243, 25. 8. 1992, p. 27. Decision as amended by the Act of Accession of Austria, Finland and Sweden. Article 5 1 After completion of the required veterinary checks, the official veterinarian shall issue for the consignment of products concerned a certificate certifying the checks and recording the intended place of destination. 2 The document referred to in paragraph 1 shall accompany the consignment: as long as the consignment remains under customs supervision; or the case of in in Directive 89/662/EEC. or until the first centre or organization of destination as referred to in Directive 90/425/EEC- the first establishment as referred imports, until to 3. If the consignment is split, paragraph 1 shall apply to each part. 4. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. 1. Border inspection posts must be: Article 6 (a) located in the immediate vicinity of the point of entry into one of the territories referred to in Annex I, and in an area which is designated or approved by the customs authorities in accordance with Article 38(l)(a) of Council Regulation (EEC) No 2913/92(8); However, where necessitated by geographical constraints (such as unloading wharf, railway station, passes) a border inspection post at a certain distance from the point of introduction may be tolerated. (b) placed under the authority of an official veterinarian, who shall be effectively responsible for the checks. The official veterinarian may be assisted by specially trained auxiliary staff. He shall ensure that all updating of the data bases indicated in the third indent of Article 1(1) of Decision 92/438/EEC is carried out. (c) - proposed by the Member State; inspected by the Commission in collaboration with the competent authority of the Member State; approved in accordance with the procedure referred to in Article 26. 2. A list of approved border inspection posts shall be established and published by the Commission. 3. Pending the adoption of the list under paragraph 2. the list currently in force shall remain applicable. 4. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. OJ No L 302, 19. 10. 1992, p. 1. Regulation as amended by the Act of Accession of Austria, Finland and Sweden. Article 7 1 • Each consignment intended for import into one of the territories referred to in Annex I shall be accompanied by the original veterinary certificate(s) or original veterinary document(s) or other original document(s) as required by veterinary legislation. The original certificate(s) or document(s) shall remain at the border inspection post. 2. Each consignment of products from a third country intended for import into one of the territories referred to in Annex I shall be subject to a physical check. 3. Customs authorities shall not allow the importation of consignments of products unless - without prejudice to the customs regulations and to the special provisions to be adopted in accordance with Article 17 - proof has been supplied both that the relevant veterinary checks have been carried out with satisfactory results and paid for, and that the relevant certificate has been issued in accordance with Article 5. 4. If the consignment complies with the import conditions, the official veterinarian shall provide the person concerned with an authenticated copy of the original certificate(s) or document(s) and issue a certificate certifying that the consignment complies with those conditions in accordance with Article 5(1). 5. Trade in the products referred to in Directives 89/662/EEC and 90/425/EEC and allowed into one of the territories referred to in Annex I to this Directive shall be conducted in accordance with the rules laid down in the said Directives, in particular in Chapter II thereof. 6. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. 1. Where: Article 8 products are intended for a Member State or an area having specific requirements, samples have been taken but the results are not known when the means of transport leaves the border inspection post, imports authorized for specific cases are involved, additional information must be given to the competent authority of the place of destination by means of the ANIMO network. 2. Each consignment of products referred to in the first and third indents of paragraph 1 and destined for another Member State shall undergo the documentary and physical check at the border inspection post situated in the territory of the Member State where the products are introduced, to verify in particular whether the products concerned comply with the rules of the Member State or area of destination. 3. Member States shall ensure that in the case of products referred to in the first and third indents of paragraph 1 and introduced into a Member State other than the Member State of destination, all measures shall be taken to ensure that consignment involved reaches the intended Member State of destination. Products which are tq_. be monitored pursuant to Community legislation from the border inspection post of arrival to the establishment at the place of destination, shall be forwarded under the following conditions: the consignments in question are forwarded between the border inspection post of arrival and the establishment at the place of destination, under supervision of the competent authority in leakproof vehicles or containers sealed by the competent authorities; the products shall undergo in the establishment at the place of destination the treatment referred to in the relevant Community legislation; the official veterinarian at the border inspection post concerned shall inform the official veterinarian at the place of destination via the ANIMO network. Member States shall submit to the Commission the list of approved establishments as referred the relevant Community Legislation. the products concerned following to above for The Commission shall adopt a list of approved establishments and shall arrange the communication of the up to date list to the Member States. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referredjo in Article 26. Article 9 By way of derogation from Article 3(2), in the case of consignments intended for import into one of the territories set out in Annex I and arriving at a border inspection post of a port or airport in one of the territories set out in Annex I, the physical check shall be carried out in the border inspection post of destination, provided that the transport takes place by sea or air. The following procedures shall be carried out in the border post referredjo in Article 3(2): (a) (b) (c) If the consignment is not unloaded, the competent authority may carry out random documentary checks of the products, on the basis of the original veterinary certificate or veterinary document or other document, or an authenticated copy of them If a documentary check has been carried out the competent authority shall issue the certificate referred to in Article 5(1) certifying the results of this check, for the benefit of the authorities in the port or airport of destination. Ifjhe consignment is transhipped from one aircraft to another or from one vessel to another within the customs area of the same port or airport, the competent authority shall be informed and may carry out a documentary check of the products on the basis of the same documents referred to in paragraph (a). If_thie j:onsignment is unloaded and stored temporarily under supervision of the competent authority in the customs area of the port or airport to be forwarded to another border inspection post by sea or air transport, the competent authority shall carry out a documentary check of the products on the basis of the same documents as are referred to in paragraph (a); in exceptional cases which may present a risk to pub]IC or animal health or when irregularities are suspected, a physical check may be carried out; Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. Article 10 1. At the request of a Member State, accompanied by the requisite substantiating information, or acting on its own initiative, the Commission may, in accordance with the procedure referred to in Article 26. determine that physical checks are to be less frequent, under certain conditions and in the light in particular of the results of previous checks, with respect to certain products from certain third countries or regions or certain establishments in third countries offering satisfactory guarantees as regards checks at the point of origin on products intended for import into one of the territories referred to in Annex I. 2. The Commission shall take into account the following criteria for granting derogations: (a) the guarantees offered by the third country in question with respect to compliance with Community requirements; (b) the health situation of animals in the third country concerned; (c) information on the general health situation in the country; (d) nature of the measures applied by the third country for monitoring and combatting disease; (e) structures, powers, independence and competence of the veterinary or other competent services; (f) compliance with the minimum standards laid down by Community law with regard to production hygiene; (g) rules on the authorization of certain substances and compliance with the requirements set out in Council Directive 96/. /EC('"; (h) outcome of the Community inspection visits; (i) outcome of the import controls carried out; (j) the type of product or products. 3. Without prejudice to paragraph 1. reductions in the frequency of physical checks may also be determined with regard to a third country pursuant to a bilateral veterinary agreement. Article 11 1 A Member State shall, on behalf of all Member States through which the transit will take place, authorize the transit of consignments from one third country to another third country provided that such a transit has been previously authorized by the official veterinarian of the border inspection post of the Member State where the consignment first arrives at one of the territories referred to in Annex I. 2. The authorization is subject to the following conditions: (a) consignments presented for inspection post shall be accompanied by the original veterinary certificate(s) or veterinary document(s) or other document(s), or by authenticated copies; transit at the border (<••» OJ NoL 10 (b) to undergo the consignment of products must be presented in the said border inspection post in order the documentation relates to the consignment being presented. In exceptional cases which may present a public health or animal health risk or when irregularities are suspected, physical checks are to be carried out. the documentary check and the verification that Derogation from the documentary and physical check may be given by the competent authority for sea and air transport where the consignment: is not unloaded; or is transhipped from one plane to another or from one boat to another within the customs area of the same port or airport; or is unloaded and stored temporarily under control of the competent authority in the customs area at the port or airport; (c) in the case of passage through consignment shall: the territories referred to in Annex I, such be sent under customs supervision to the point of exit from the Community, together with the document required under paragraph 2(a) and the document required under Article 5(1), certifying the border inspection post where the consignment will leave the Community; be transported, without the products being unloaded or split after leaving the border inspection post of arrival under the supervision of the competent authorities in vehicles or containers sealed by the competent authorities; the only handling authorized during transport shall be that carried out at the border inspection post into or out of one of the territories referred to in Annex I; leave the Community via a border inspection post. (d) The official veterinarian who authorizes the transport shall inform the competent authority of the border inspection post of exit via the ANIMO network. All expenditure incurred pursuant to this Article shall be chargeable to the declarant or his representative, without indemnification by the Member State. the exchange of the application of this Article, in particular Detailed rules for information between the border inspection post of entry and of exit, shall be adopted in accordance with the procedure referred to in Article 26. Article 12 Consignments coming from a third country and destined for a free zone, a free warehouse or a customs warehouse shall undergo in the border inspection post as referred to in Article 3(2) a documentary and a physical check in order to ensure that the products comply with the import conditions. to Article 16, Member States may allow on Without prejudice territory. consignments which the declarant declares to the competent authority, pursuant to Article 3(3), to be presented for storage in a free zone, a free warehouse or a customs warehouse in accordance with Regulation (EEC) No 2913/92, and which do not comply with the import conditions; any customs warehouse used shall be enclosed and the entry and exit points shall be subject to permanent control. their 11 Such zones and warehouses shall be approved by the competent authority for the storage of the products as defined in Article 2(2)(a). The zones and warehouses shall be under the permanent supervision of an official veterinarian. 3. The allowance provided for in paragraph 2 shall be subject to the following conditions: consignments arriving at the Community border shall be accompanied by the original veterinary certificate(s), veterinary document(s) or other document(s) or bv authenticated copies or by official customs documents, or other relevant certificate(s) or document(s); consignments shall undergo a documentary check at the border inspection post of arrival, including a verification that the documentation relates to the consignment being presented. In exceptional cases involving a public health or animal health risk. or when irregularities are suspected, a physical check shall be carried out; consignments shall be sent, under customs supervision, together with the document mentioned in the first indent and with the document required under Article 5(1). specifying the free warehouse, free zone, or customs warehouses concerned, or in the case of consignments leaving the Community the border inspection post where the consignment will leave the Community, or in the case referred to in paragraph 4 specifying the place where the consignment will leave the Community; the consignments in question shall be subsequently forwarded under such conditions to ensure that transport is carried out, without the goods being unloaded, under the supervision of the competent authoriries in leakproof vehicles or containers sealed by the competent authorities; the competent authority which authorizes the transport shall inform the competent authority of the place of destination via the ANIMO network; the identity of the consignment shall be permanently monitored and shall be supervised by the official veterinarian. 4. In addition, operators who supply, to sea and air transport, operating internationally, products as referred in Article 2(2)(a) which are intended for consumption by the crew and passengers: (a) shall be subject to prior registration by the competent authority; (b) shall keep a register in which such deliveries are recorded; (c) shall report the arrival and dispatch of products in a zone or a warehouse as referred to in paragraph 2; (d) shall keep for at least three years the register referred to in (b). 5. Member States shall ensure that the consignments, before entering a zone or warehouse as referred to in paragraph 2, undergo a documentary check and, if necessary, where there are grounds for suspicion, a physical check. 6. All expenditure incurred pursuant to this Article shall be chargeable to the declarant or his representative, without indemnification by the Member State. 7. Member States shall submit to the Commission the list of approved free zones, free warehouses and customs warehouses as referred to in paragraph 2. The Commission shall adopt a list of approved zones and warehouses, and shall arrange for its publication in the Official Journal of the European Communities. 12 8. Detailed rules for the application of this Article,Jn pajrticular the_ control procedures to be carried out on the arrival and on the departure of consignments to and from such zone or warehouse, the transport of consignments between such zones or such warehouses, the form of storage of the products and the handling allowed, shall be adopted in accordance with the procedure referred to in Article 26. Article 13 1 Products for which the customs-approved treatment or use under Regulation (EEC) No 2913/92 is other than as provided for in Articles 7. 11 and 12 of this Directive, shall undergo, where appropriate, a physical check in order to ensure that they comply with the import conditions. 2. Detailed rules for the application of this Article shall be adopted, where necessary, in accordance with the procedure referred to in Article 26. Article 14 1 The re-importation of a Community consignment refused by a third country may be authorized only by the Member State where the veterinary certificate has been issued, and provi!de_d_that: the products in question have to undergo in the border inspection post of arrival the documentary, and where necessary, a physical check; the consignment returns to that Member State and that, if transport across another Member State is involved, it has been previously authorized by the official the veterinarian of consignment first arrives into one of the territories of the Community referred to in Annex I, on behalf of all Member States the consignment will transit. the Member State where inspection post of through which the border 2 3 4 5 In circumstances envisaged in paragraph 1, the products in question shall be forwarded under such conditions as ensure that transport is carried out under customs supervision by means of leakproof means of transport, identified and sealed by the competent authority so that the seals will be broken whenever the container is opened in the Member State where the veterinary certificate has been issued. The official veterinarian which authorizes the transport shall inform the competent authority in the place of destination via the ANIMO network. All expenditure incurred pursuant to this Article shall be chargeable to the declarant or his representative, without indemnification by the Member State. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. 1 This Chapter shall not apply to products which: Article 15 (a) form part of travellers' personal luggage and are intended for their personal consumption in so far as the quantity does not exceed a quantity to be defined in accordance with paragraph 3 and provided that the products come from a third country or part of a third country appearing on the list adopted in accordance with Community rules, being a country from which importation is not prohibited; 13 (b) are sent as small packages to private persons, provided that the products are not being imported by way of trade, in so far as trie quantity sent does not exceed a quantity to be defined in accordance with paragraph 3 and provided that the products come from a third country or part of a third country appearing on a list drawn up in accordance with Community rules, being a country from which importation is not prohibited; (c) are on board means of transport operating internationally and are intended for consumption by the crew and passengers, provided that they are not introduced into one of the territories referred to in Annex I. Where such products or their kitchen waste are unloaded, they must be destroyed. It is not, however, necessary to destroy products when they are transferred, directly from one means of transport operating internationally to another at the same port and under customs supervision; (d) where quantities not exceeding a figure to be fixed in accordance with paragraph 3 are involved, have undergone heat treatment in a hermetically sealed container to an Fo value of 3. 00 or more and: (i) form part of travellers' personal luggage and are intended for their personal consumption; (ii) are sent as small packages to private persons, provided that the products are not being imported by way of trade; ( e) a re sent as trade sam pies. _p„royided th at _th ey. _are not _ I n ten ded_jbr. human consumption and will not come into contact with any ruminating animal, swine, poultry or; horses. Paragraph 1 shall not affect the rules applicable to fresh meat and meat products in accordance with Article 1(2) of Council Directive 72/462/EEC10'. In accordance with the procedure laid down in Article 26, the Commission shall set the weight limits for the different products liable to be covered by the derogations referred to in paragraph 1. Article 16 Consignments which have been introduced into one of the territories of the Commmunity without being presented for veterinary checks in accordance with the requirements of Articles 3 and 4, shall be seized and the competent authority shall decide either to destroy them in accordance with paragraph 2(b) or to re-dispatch them in accordance wi. th paragraph 2(a). Where the checks referred to in this Directive show the competent authority that the the import conditions, or where such checks reveal an product does not satisfy irregularity, the declarant or his representative, shall decide either: the competent authority, in consultation with (a) to re-dispatch the product outside the territories referred to in Annex I from the same border inspection post to a named destination approved by the competent authority of the third country concerned, within a time limit to be set by the competent national authority, where veterinary inspection and health requirements so allow. ( 1 0, OJ No L 302, 31. 12. 1972, p. 28. Directive as amended by the Act of Accession of Austria, Finland and Sweden. 14 In this case, the official veterinarian of the border inspection post must: activate the information procedure provided for in the first indent of Article 1(1) of Decision 92/438/EEC, under arrangements to be defined by the Commission in accordance with the procedure provided for in Article 26, invalidate the veterinary certificate^ or document(s) accompanying the rejected products; or (b) if re-dispatch is impossible, to destroy the products in these facilities provided for that purpose in accordance with Council Directive 90/667/EEC''} which are nearest to the border inspection post. 3• Paragraph 2 shall not apply where an authorization has been given by the competent in accordance with authority Directive 90/667/EEC. provided that there is no risk for human and animal health. the use of products to permit in order 4. The declarant or his representative or the person in charge of the consignment shall be liable for the costs incurred in the process of re-dispatching or destroying the consignment or using the product for other purposes. Furthermore, where an irregularity has been found to be the result of negligence or a deliberate action, the competent authority shall impose on the declarant a financial penalty of at least 20% of the customs value of the product. 5. The provisions of Decision 92/438/EEC shall apply. 6. Detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. Article 17 The Commission, in accordance with the procedure referred to in Article 26, shall on the basis of the plans referred to in the second paragraph, adopt the rules applicable to imports into certain parts of the territories referred to in Annex I, to take account of the natural constraints specific to these territories in particular their remoteness from a mainland part of the Community territory. To that end France and Greece shall submit a plan to the Commission setting out, in the particular case of the French Overseas Departments and of certain islands and groups of islands, the nature of the checks to be carried out on imports into those regions of products originating in third countries taking into account the natural geographical constraints specific to these territories. These plans must specify the checks carried out to prevent products introduced into these territories being redispatched under any circumstances to other parts of Community territory. (!,) OJ No L 363, 27. 12. 1990, p. 51. Directive as amended by the Act of Accession of Austria, Finland and Sweden. 15 Article 18 1. The Commission, in accordance with the procedure referred to in Article 26, shall draw up a list of plant products covered by Article 2(2)(a) second indent which, in particular on account of their subsequent destination, may give rise to the risk of spreading infectious or contagious animal diseases and on that account are to be subjected to the veterinary checks laid down by this Directive, and in particular those provided for in Article 4, in order to verify the origin and planned destination of such plant products. The following shall be adopted in accordance with the same procedure: the animal health conditions which third countries must comply with and the guarantees which must be offered in particular the nature of any processing to be required in the light of their animal health situation;, a list of the third countries which, in the light of the guarantees, may be authorized to export to the Community the plant products referred to in the first paragraph; any specific inspection procedures, in particular with reference to sampling which may be applied to these products, especially in the case of imports in bulk. 2. Fresh fish immediately landed from a fishing vessel flying a third-country flag shall in accordance with Council Regulation (EC) No 1093/94( 2) - and before it can be imported into any of the territories referred to in Annex I - undergo the checks laid down in respect of fish immediately landed by fishing vessels flying the flag of a Member State. 3. In accordance with the procedure referred to in Article 26, derogations may be granted from the provisions of Article 6(1 )(b) and, as regards the staff responsible for carrying out the checks, those of Article 4(1) for border inspection posts where fishery products are presented as referred to in Council Directive 91/493/EECU}. Article 19 Without prejudice to the provisions of this Chapter, the official veterinarian or the competent authority shall, where it is suspected that veterinary legislation has not been complied with or there is doubt as to the identity of a product, carry out any veterinary checks it deems appropriate. Article 20 1. Austria shall have a period of three years from the date of entry into force of the Accession Treaty to introduce the checking system provided for in this Chapter. During that transitional period, Austria shall apply the measures which will be determined before the date of entry into force of the Accession Treaty in accordance with the procedure laid down in Article 26. These measures shall ensure that all the necessary checks are carried out as close as possible to the Community's external frontier. 2. Finland shall have a period of two years from the date of entry into force of the Accession Treaty to introduce the checking system provided for in this Chapter During that transitional period, Finland shall apply the measures which will be determined before the date of entry into force of the Accession Treaty, in accordance with the procedure laid down in Article 26. These measures shall ensure that all the necessary checks are carried out as close as possible to the Community's external frontier. (12) (13) OJ No L 121, 12. 5. 1994, p. 3. OJ No L 268, 24. 9. 1991, p. 15. Directive as amended by Directive 95/71/EC (OJ No L 332, 30. 12. 1995, p. 40). 16 CHAPTER II SAFEGUARD PROVISIONS Article 21 1. in the territory of a third country, a disease in Council If, Directive 82/894/EEC(14), a zoonosis or other disease or phenomenon liable to present a serious threat to animal or public health manifests or spreads itself, or if any other serious animal health or public health reason so warrants, in particular in the light of the findings of its veterinary experts, the Commission shall, acting on its own initiative or at the request of a Member State, adopt one of the following measures without delay and depending on the gravity of the situation: referred to suspend imports from that part or all of the third country concerned, and where appropriate from the third country of transit; set special conditions in respect of products coming from part or all of the third country concerned. 2. If one of the checks provided for in this Directive indicates that a consignment of products is likely to constitute a danger to animal or human health, the competent veterinary authority shall immediately take the following measures: it shall seize and destroy the consignment; it shall immediately inform the other border inspection posts and the Commission in accordance with of Decision 92/438/EEC. the findings and of the origin of the products, 3. In the case provided for in paragraph 1, the Commission may take provisional protective measures in respect of products covered by Articles 11 and 12. 4. Representatives of the Commission may make an immediate visit to the third country concerned. 5 Within ten working days, the Standing Veterinary Committee shall have the matter referred to it, pursuant to the terms of Article 25, with a view to the extension, amendment or repeal of the measures provided for in paragraphs 1 and 3. The procedure provided for in Article 25 may also be used for adopting the necessary decisions, including those relating to intra-Community movement of products and to transit. 6. Decisions to modify, repeal or extend measures decided on by virtue of paragraphs 1, 2, 3 and 5 shall be taken in accordance with the procedure laid down in Article 25. 7. Detailed rules for the application of this Chapter shall be adopted, where necessary, in accordance with the procedure laid down in Article 26. (14) OJ No L 378, 31. 12. 1982, p. 58. Directive as amended by the Act of Accession of Austria, Finland and Sweden. 17 CHAPTER III INSPECTION Article 22 1. Veterinary experts from the Commission may, in conjunction with the competent national authorities and whenever uniform application of the requirements of this Directive renders it necessary, verify that the border inspection posts approved in accordance with Article 6 satisfy the criteria listed in Annex II. 2. Veterinary experts from the Commission may, in conjunction with the competent authorities, make on-the-spot checks. 3. A Member State in whose territory an inspection is made shall provide the veterinary experts from the Commission with any assistance they may require in the performance of their tasks. 4. The Commission shall inform the Member States of the outcome of the checks. 5. Where the Commission deems that the outcome of checks so justifies, it shall review the situation within the Standing Veterinary Committee. It may adopt the necessary decisions in accordance with the procedure referred to in Article 25. 6. The Commission shall monitor developments; in the light of such developments and in accordance with the procedure referred to in Article 25, it may amend or repeal the decisions referred to in paragraph 5. 7. Detailed rules for the application of this Article shall be adopted, where necessary, in accordance with the procedure referred to in Article 26. Article 23 I. Where, on the basis of the checks carried out at the point where the products are marketed, a competent authority of a Member State considers that this Directive is not being complied with at a border inspection post referred to in Article 6, or in a customs warehouse, free zone or free warehouse referred to in Article 12 of another Member State, it shall contact the competent central authority of that Member State without delay. The latter shall take all the necessary measures and inform the competent authority of the first Member State of the nature of the checks made, the decisions taken and the reasons for such decisions. If the competent authority of the first Member State believes the measures are insufficient it shall examine, with the competent authority of the Member State in question, the possible ways and means of remedying the situation, where necessary by visiting the Member State in question. Where the checks referred to in the first subparagraph show repeated non-compliance with this Directive, the competent authority of the Member State of destination shall inform the Commission and the competent authorities of the other Member States. The Commission may, at the request of the competent authority of the Member State of destination or on its own initiative, and taking account of the type of infringements complained of: send an inspection team to the Member State in question in conjunction with the competent national authorities; 18 request the competent authority to step up the checks carried out at the border inspection post, customs warehouse, free zone or free warehouse in question. Pending the Commission's findings, the Member State attacked must, at the request of the Member State of destination, step up checks at the border inspection post, customs warehouse, free zone or free warehouse concerned. The Member State of destination may, for its part, intensify checks on products coming from these sources. At the request of one of the two Member States concerned - where the irregularities are confirmed by the inspection referred to in the first indent of the fifth subparagraph - the Commission must, in accordance with the procedure referred to in Article 25, take the appropriate measures. These measures must be confirmed or reviewed as soon as possible in accordance with the same procedure. 2. Rights of appeal available under the laws in force in the Member States against decisions by the competent authorities shall not be affected by this Directive. Decisions taken by the competent authority and the reasons for such decisions shall be notified to the operator concerned by such decisions, or to his representative. If the operator concerned or his representative so requests, the said decisions and reasons shall be forwarded to him in writing, together with details of the rights of appeal available to him under the law in force in the Member State performing the checks, and also the procedure and time-limits applicable. 3. The detailed rules for the application of this Article shall be adopted in accordance with the procedure referred to in Article 26. Article 24 1 Each Member State shall draw up a programme for the exchange of officials empowered to carry out the checks on products coming from third countries. 2 The Commission and the Member States shall coordinate the programmes referred to in paragraph 1 within the Standing Veterinary Committee. 3. Member States shall take all the measures necessary to allow implementation of the programmes resulting from the coordination referred to in paragraph 2. 4 Each year, in the Standing Veterinary Committee, the implementation of programmes shall be reviewed on the basis of reports drawn up by the Member States. 5. Member States shall take into account the experience gained in order to improve and develop the programmes on exchanges. 6 A financial contribution from the Community may be granted in order to promote the efficient development of exchange programmes. Detailed rules for the Community's financial contribution and the estimated amount to be charged to the Community budget are laid down in Council Decision 90/424/EEC(n). 7. Detailed rules for the application of paragraphs 1, 4 and 5 shall be adopted where necessary, in accordance with the procedure referred to in Article 26. (15) OJ No L 224, 18. 8. 1990, p. 19. Decision as last amended by Decision 94/370/EC (OJNo L 168, 2. 7. 1994, p. 31). 19 CHAPTER IV GENERAL PROVISIONS Article 25 reference the Where Standing Veterinary Committee set up by Council Decision 68/361/EEC(U)) shall take decisions in accordance with the rules established in Article 17 of Directive 89/662/EEC. the procedure provided this Article, is made for in to Article 26 reference Where the the procedure Standing Veterinary Committee shall take decisions in accordance with the rules established in Article 18 of Directive 89/662/EEC. this Article, is made defined in to Article 27 Annex II to this Directive may be supplemented in accordance with the procedure referred to in Article 26. Article 28 This Directive shall be without prejudice to obligations arising from customs rules. Article 29 Member States, in particular Austria and Finland, may make use of the Community financial assistance provided for in Article 38 of Decision 90/424/EEC for the implementation of this Directive. Article 30 Directive 90/675/EEC is repealed with effect from 1 January 1997. References to the Directive repealed in the first paragraph shall be construed as references to this Directive and shall be correlated in accordance with the table set out in Annex III. Article 31 1. Member States shall adopt and publish the laws, regulations and administrative this Directive before provisions necessary 1 January 1997; they shall forthwith notify the Commission thereof. the provisions of to comply with They shall apply those provisions as from 1 January 1997. When Member States adopt these provisions, these shall contain a reference to this Directive or shall be accompanied by such reference at the time of their official publication. The procedure for such reference shall be adopted by Member States. 2. Member States shall communicate to the Commission the texts of the main provisions of national law which they adopt in the field covered by this Directive. (16) OJ No L 255, 18. 10. 1968, p. 23 20 This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Communities. Article 32 This Directive is addressed to the Member States. Article 33 Done at Brussels, For the Council The President 21 ANNEX I 1. The territory of the Kingdom of Belgium. 2. The territory of the Kingdom of Denmark with the exception of the Faroe Islands and Greenland. 3. The territory of the Federal Republic of Germany. 4. The territory of the Kingdom of Spain with the exception of Ceuta and Melilla. 5. The territory of the Hellenic Republic. 6. The territory of the French Republic. 7. The territory of Ireland. 8. The territory of the Italian Republic. 9. The territory of the Grand Duchy of Luxembourg. 10. The territory of the Kingdom of the Netherlands in Europe. 11. The territory of the Portuguese Republic. 12. The territory of the United Kingdom of Great Britain and Northern Ireland. 13. The territory of the Republic of Austria. 14. The territory of the Republic of Finland. 15. The territory of the Kingdom of Sweden. 22 ANNEX II In order to obtain Community approval, border inspection posts must have: the staff necessary to check the documents (public health and animal health certificates or any other document laid down by Community legislation) accompanying the products; sufficient numbers, in relation to the quantity of products dealt with by the border inspection post, of veterinary and auxiliary staff specially trained to carry out checks that products correspond to the accompanying documents and systematic physical checks of each product consignment; sufficient staff to take and process random samples of product consignments presented at a given border inspection post; sufficiently large premises at the disposal of the staff responsible for carrying out veterinary checks; appropriate premises and facilities for taking and processing the samples for the routine checks laid down in Community rules (microbiological standards); the services of a specialized laboratory situated near the border inspection post and able to carry out special tests on the samples taken at that post; premises and cold stores permitting the storage of part-consignments taken for testing and products whose release for free circulation has not been authorized by the veterinary officer responsible for the border inspection post; appropriate equipment permitting the rapid exchange of information, in particular with other border inspection posts, (through the computerized system provided for in Article 20 of Directive 90/425/EEC or the Shift project). 23 Table of correspondence Directive 90/675/EEC Directive ANNEX III Article 1. 1 Article 1. 2 Article 2. 1 Article 2. 2(a) Article 2. 2(b) Article 2. 2(c) Article 2. 2(d) Article 2. 2(e) Article 2. 2(f) Article 2. 2(g) Article 2. 2(h) Article 3. 1 Article 3. 2 Article 3. 3 Article 3. 4 Article 4. 1 Article 4. 2 Article 4. 3 Article 4. 4 Article 4. 5 Article 5. 1 Article 5. 2 Article 5. 3 Article 5. 4 Article 6. 1 (a) and (b) Article 6. 1 (c) Article 6. 2 Article 6. 3 Article 6. 4 Article 7. 1 Article 7. 2 Article 7. 3 Article 7. 4 Article 7. 5 Article 7. 6 Article 8. 1 Article 8. 2 Article 8. 3 Article 8. 4 Article 8. 5 Article 9 Article 10 (1) and (2) Article 10. 3 Article 11. 1 Article 11. 2(a) Article 1. 1 Article 1. 2 Article 2. 1 Article 2. 2(a) Article 2. 2(b) Article 2. 2(d) Article 2. 2(f) Article 2. 2(g) Article 2. 2(h) Article 4. 4 Article 4. 6 Article 8. 1(a) and 8. 2 last subparagraph Article 4. 1 last subparagraph and Article 8. 2(d) Article 4. 1 first subparagraph Article 8. 2(a), (b) and (c) Article 8. 3 first subparagraph Article 10. 1 second indent Article 10. 1 first indent Article 10. 2 Article 9. 1 and 9. 2 Article 9. 3 and 9. 4 except last subparagraph Article 9. 5 Article 10. 2 third indent Article 8. 1(b) Article 3 Article 10. 1 first indent Article 10. 3 Article 10. 2 Article 4. 5 Article 4. 6 Article 8. 4 Article 8. 3 second subparagraph Article 12. 1(b) 24 Table of correspondence (continued) Directive 90/675/EEC Directive Article 12. 1(c) Article 13. 2 Article 13. 3 Article 5 and Article 6 Article 7. 1 Article 7. 1 last indent Article 7. 1 second indent Article 5. 1 and Article 6. 1 Article 6. 4 Article 6. 2 Article 7. 2 Article 13 Article 14. 1(i) - (iv) Article 14. 1(i) - (iv) Article 16. 1(a) Article 16. 1(b) Article 16. 2 Article 16. 3 Article 16. 5 Article 16. 4 Article 17 Article 18 Article 15 Article 19 Article 20 Article 21 Article 22 Article 23 Article 24 Article 25 Article 26 Article 31 Article 33 ANNEX I ANNEX II Article 11. 2(b) Article 11. 2(c) first indent Article 11. 2(c) second inden Article 11. 2(c) third indent Article 11. 2(d) Article 11. 3 Article 11. 4 Article 12. 1 Article 12. 2 Article 12. 3 first indent Article 12. 3 second indent Article 12. 3 third indent Article 12. 3 fourth indent Article 12. 3 fifth indent Article 12. 3 sixth indent Article 12. 4 Article 12. 5 Article 12. 6 Article 12. 7 Article 12. 8 Article 13 Article 14 Article 15. 1(a) - (d) Article 15. 1(e) Article 15. 2 Article 15. 3 Article 16. 1 Article 16. 2(a) Article 16. 2(b) Article 16. 3 Article 16. 4 Article 16. 5 Article 16. 6 Article 17 Article 18 Article 19 Article 20 Article 21 Article 22 Article 23 Article 24 Article 25 Article 26 Article 27 Article 28 Article 29 Article 30 ANNEX I ANNEX II 25 Proposal for a COUNCIL DIRECTIVE amending Directives 71/118/EEC, 72/462/EEC, 85/73/EEC, 91/67/EEC, 91/492/EEC, 91/493/EEC, 92/45/EEC and 92/118/EEC as regards the organization of veterinary checks on products entering the Community from third countries 26 EXPLANATORY MEMORANDUM Council Directive 90/675/EEC, laying down the principles governing the organization of veterinary checks on products entering the Community from third countries , introduces arrangements for a new system of veterinary checks for products entering the Community from third countries. With the establishment of the Internal Market it has been all the more necessary to fix common principles governing the organization of checks and the movement inside the Community of products from third countries given that internal border checks were to be abolished. Since the entry into force of Directive 90/675/EEC experiences have been gained and developments have taken place with regard to the implementation of the Directive which together with reasons of transparency calls for a modification of the Directive. The proposed modifications in the above mentioned Directive has consequences for the text of a number of existing Directives. For that reason these Directives must be brought into line with the modifications provided for in Directive 90/675/EEC. (1) OJ No L 373, 31. 12. 1990, p. 1. Directive as last amended by Directive 95/52/EC ( O J N o L 2 6 5, 8. 11. 1995, p. 16). 27 Proposal for a COUNCIL DIRECTIVE 9 6 / 0 1 10 (CNS) amending Directives 71/118/EEC, 72/462/EEC, 85/73/EEC, 91/67/EEC, 91/492/EEC, 91/493/EEC, 92/45/EEC and 92/118/EEC as regards the organization of veterinary checks on products entering the Community from third countries THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission0}, Having regard to the opinion of the European Parliament^, Having regard to the opinion of the Economic and Social Committee^, Whereas for the sake of clarity and rationality, Council Directive 90/675/EEC(4), which laid down the principles governing the organization of veterinary checks on products entering the Community from third countries, was repealed and replaced by Directive 96/. /ECp); Whereas the replacement of Directive 90/675/EEC by Directive 96/. /EC has consequences for the existing texts of the following Council Directives: Directive 71/118/EEC of 15 February 1971 on health problems affecting the production and placing on the market of fresh poultry meat((>. Directive 72/462/EEC of 12 December 1972 on health and veterinary inspection problems upon importation of bovine, ovine, caprine animals and swine, fresh meat or meat products from thud countries1'\ Directive 85/73/EEC of 29 January 1985 on the financing of health inspections and controls of fresh meat and poultry meafM, Directive 91/67/EEC of 28 January 1991 concerning the animal health conditions governing the placing on the market of aquaculture animals and products(0), OJ No C 0. 1 No C 0. 1 No C OJ No L 373, 31. 12. 1990, p. 1. Directive as last amended by Directive 9S/52 EC (OJ No L 265, 8. 11 1995, p. 16). OJ No L OJ No L 55, 8. 3. 1971, p. 23. Directive as (OJ No L 368, 31. 12. 1994, p. 10). OJ No L 302, 31. 12. 1972, p. 28. Directive as amended by the Act of Accession of Austria, Finland and Sweden. OJ No L 32,5. 2 1985, p. 14. Directive as (OJ No L 78, 28. 3. 1996, p. 30). OJ No L 46, 19. 2. 1991, p. 1 Directive as (OJ No L 243, 11. 10. 1995, p. I). last amended by Directive 94/65/EC last amended by Directive 96/17/EC last amended by Directive 95/22 EC 28 Directive 91/492/EEC of 15 July 1991 laying down the health conditions for the production and the placing on the market of live bivalve molluscs(10), Directive 91/493/EEC of 22 July 1991 laying down the health conditions for the production and the placing on the market of fishery products00, Directive 92/45/EEC of 16 June 1992 on public health and animal health problems relating to the killing of wild game and the placing on the market of wild-game meat(12), Directive 92/118/EEC of 17 December 1992 laying down animal health and public health requirements governing trade in and imports into the Community of products not subject to the said requirements laid down in specific Community rules referred to in Annex A(I) to Directive 89/662/EEC and, as regards pathogens, to Directive 90/425/EEC(13). Whereas for that reason, those Directives should be brought into line with the text of Directive 96/. /EC, HAS ADOPTED THIS DIRECTIVE: Article 1 1. Directive 71/118/EEC is amended as follows: (a) in Article l4B2(a), the second sentence is deleted; (b) in Article 17, the second subparagraph is deleted. 2. Directive 72/462/EEC is amended as follows: (a) in Article 31a, "Article 17 of Directive 90/675/EEC" is replaced by "Article 17 of Directive 96/. /EC"; (b) Article 31 is deleted. 3 Directive 85/73/EEC is amended as follows: in Article 3(1), "Article 20 of Directive 90/675/EEC" is replaced by "Article 22 of Directive 96/. /EC". 4 Directive 91/67/EEC is amended as follows: (a) Article 23 is replaced by the following: rim UD ( i :j ( H) OJ No L 268, 24. 9. 1991, p. 1. Directive as amended by the Act of Accession of Austria, Finland and Sweden. OJ No L 268, 24. 9. 1991, p. 15. Directive as amended by Directive 95/71/EC (OJ No L 332, 30. 12. 1995, p. 40). OJ No L 268, 14. 9. 1992, p. 35! Directive as amended by the Act of Accession of Austria, Finland and Sweden. OJ No L 62, 15. 3. 1993, p. 49. Directive as Decision 96/103/EC (OJ No L 24, 31. 1. 1996, p. 28). last amended by Commission 29 "Article 23 "The principles and rules laid down in Directives 91/496/EEC and 96/. /EC shall apply, with particular reference to the organization of and follow-up to the checks to be carried out by the Member States and the safeguard measures to be implemented"; (b) Article 24 is deleted. Directive 91/492/EEC is amended as follows: the second subparagraph of Article 10 is deleted. Directive 91/493/EEC is amended as follows: (a) in the second subparagraph of Article 10, "Article 18(3) of Directive 90/675/EEC" is replaced by "Article 18(2) of Directive 96/. /EC"; (b) Article 12(2) is deleted. Directive 92/45/EEC is amended as follows: (a) Article 17(2) is deleted; (b) Article 19(2) is deleted. Directive 92/118/EEC is amended as follows: (a) in the second subparagraph of Article 12( 1 ), "Article 8(2) of Directive 90/675/EEC" is replaced by "Article 4(4) of Directive 96/. /EC"; (b) Article 12(2) is deleted. Article 2 Member States shall adopt and publish provisions necessary 1 January 1997; they shall forthwith notify the Commission thereof. the laws, regulations and administrative this Directive before the provisions of to comply with They shall apply those provisions as from 1 January 1997. When Member States adopt these provisions, these shall contain a reference to this Directive or shall be accompanied by such reference at the time of their official publication. The procedure for such reference shall be adopted by Member States. Member States shall communicate to the Commission the texts of the main provisions of national law which they adopt in the field covered by this Directive. 30 This Directive shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Communities. Article 3 This Directive is addressed to the Member States. Article 4 Done at Brussels, For the Council The President 31 ISSN 0254-1475 COM(96) 170 final DOCUMENTS EN 03 Catalogue number : CB-CO-96-202-EN-C ISBN 92-78-03494-0 Office for Official Publications of the European Communities L-2985 Luxembourg 32

Commission Regulation (EC) No 902/96 of 20 May 1996 concerning the classification of certain goods in the combined nomenclautre

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L_1996122EN. 01000101. xml 22. 5. 1996    EN Official Journal of the European Communities L 122/1 COMMISSION REGULATION (EC) No 902/96 of 20 May 1996 concerning the classification of certain goods in the combined nomenclautre THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common Customs Tariff (1), as last amended by Commission Regulation (EC) No 586/96 (2), and in particular Article 9, Whereas in order to ensure uniform application of the combined nomenclature annexed to the said Regulation, it is necessary to adopt measures concerning the classification of the goods referred to in the Annex to this Regulation; Whereas Regulation (EEC) No 2658/87 has set down the general rules for the interpretation of the combined nomenclature and those rules also apply to any other nomenclature which is wholly or partly based on it or which adds any additional subdivision to it and which is established by specific Community provisions, with a view to the application of tariff and other measures relating to trade in goods; Whereas, pursuant to the said general rules, the goods described in column 1 of the table annexed to the present Regulation must be classified under the appropriate CN codes indicated in column 2, by virtue of the reasons set out in column 3; Whereas it is acceptance that binding tariff information issued by the customs authorities of Member States in respect of the classification of goods in the combined nomenclature and which do not conform to the rights established by this Regulation, can continue to be invoked, under the provisions in Article 12 (6) of Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (3), for a period of three months by the holder, Whereas the measures provided for in this Regulation are in accordance with the opinion of the Tariff and Statistical Nomenclature Section of the Customs Code Committee, HAS ADOPTED THIS REGULATION: Article 1 The goods described in column 1 of the annexed table are now classified within the combined nomenclature under the appropriate CN codes indicated in column 2 of the said table. Article 2 Binding tariff information issued by the customs authorities of Member States which do not conform to the rights established by this Regulation can continue to be invoked under the provisions of Article 12 (6) of Regulation (EEC) No 2913/92 for a period of three months. Article 3 This Regulation shall enter into force on the 21st day following its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 20 May 1996. For the Commission Mario MONTI Member of the Commission (1)  OJ No L 256, 7. 9. 1987, p. 1. (2)  OJ No L 84, 3. 4. 1996, p. 18. (3)  OJ No L 302, 19. 10. 1992, p. 1. ANNEX Description of goods Classification (CN) code Reason (1) (2) (3) 1. Clutch release mechanism with only one end-stop for automotive clutches of lightweight design, having a steel-plate guide sleeve incorporating a ball thrust bearing and a steel plate outer casing which may have spring-steel strips, snap-on connectors or metal throw-out pins attached. 8708 93 10 or 8708 93 90 Classification is determined by the provisions of general rules 1 and 6 for the interpretation of the combined nomenclature and the wording of CN codes 8708, 8708 93, 8708 93 10 (for the industrial assembly) and 8708 90 90. 2. Clutch release mechanism with only one end-stop for automotive clutches of lightweight design, comprising a guide sleeve or sliding sleeve of aluminium or cast iron and a metal ring incorporating a ball thrust bearing. 8708 93 10 or 8708 93 90 Classification is determined by the provisions of general rules 1 and 6 for the interpretation of the combined nomenclature nad the wording of CN codes 8708, 8708 93, 8708 93 10 (for the industrial assembly) and 8708 93 90. 3. Lawn-mowers consisting of the following essential parts presented together:   Classification is determined by the provisions of general rules 1 and 6 for the interpretation of the combined nomenclature, note 2 to Chapter 87 and the wording of CN codes 8701, 8701 90, 8701 90 11 as well as 8433, 8433 19 and 8433 19 90. (a) small tractor powered by a motor of up to 18 kW fitted with a hydraulic system (power take-off) to which various accessories can be connected; 8701 90 11 (b) cutting device as interchangeable equipment, designed to be connected to the power take-off on the tractor. 8433 19 90 4. Ferro-alloy (ferro-silicon) containing by weight approximately 40 % of iron, approximately 47 % of silicon, approximately 5 % of magnesium and a total of approximately 8 % of calcium, aluminium and rare earth metals. 7202 29 00 Classification is determined by the provisions of general rules 1 and 6 for the interpretation of the combined nomenclature, Note 1 (c) and subheading Note 2 to Chapter 72 and the wording of CN codes 7202 and 7202 29 00. 5. Electrical apparatus in a compact assembly comprising: (a) a telephone set incorporating an answering machine (tape recording apparatus), and (b) a fax machine with sending/receiving equipment, scanning, recording and answering devices for the transmission (telefaxing) of text, images and graphics via the telephone system. The telephone set with answering and the fax machine are not intended to work at the same time 8517 21 00 Classification is determined by the provisions of general rules 1, 3c and 6 for the interpretation of the combined nomenclature, Note 3 of Section XVI (for component (a)) and the wording of CN codes 8517, 8517 21 and 8517 21 00. Neither component (a) nor component (b) gives the whole its essential character

Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DECISION adopting a programme of Community action on healht monitoring in the context of the framework for action in the field of public health

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 15. 05. 1996 COM(96) 222 final 95/0238 (COD) Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DECISION adopting a programme of Community action on health monitoring in the context of the framework for action in the field of public health (presented by the Commission pursuant to Article 189 a (2) of the EC-Treaty) EXPLANATORY STATEMENT Amended proposal for a European Parliament and Council decision adopting a programme of Community action on health monitoring in the context of the framework for action in the field of public health (1997-2001) 1. 2. 3. 4. 5. The initial proposal for a European Parliament and Council decision adopting a programme of Community action on health monitoring was adopted by the Commission on 16 October 1995. The Economic and Social Committee1 and the Committee of the Regions2 delivered favourable opinions on this initial Commission proposal. In light of the European Parliament's opinion after its first reading on 17 April 1996, an amended proposal for a decision was submitted by the Commission in accordance with Article 189A of the Treaty. The text incorporates essentially two types of amendments: amendments that clarify or broaden the recitals amendments that clarify and broaden the actions covered by the programme. In particular, a feasibility study of a health observatory has been included, and an Annex (II) has been added, containing a list of potential domains in which the health indicators may be established. The European Parliament adopted 44 amendments when it voted on 17 April 1996, of which 28 were acceptable in toto (12, 16-18, 20, 23, and 29) or in part (1, 3, 4, 6-11, 13, 19, 25, 33-40, and 42) by the Commission. The amendments which are not acceptable by the Commission can be divided into 5 groups: amendments that pose legal problems because they do not conform with the wording or intent of Art. 129 (15, 21, 31), or because they are inconsistent with the analogous provisions of the other public health programmes (43, 46, 47) amendments that propose changes which fall outside the scope of the proposed programme (2, 32) amendments that propose a less flexible wording than that proposed by the Commission and/or which unduly limite-the scope of the proposed programme (5, 14, 30, and 45) amendments that are covered elsewhere (26-28) one amendment (22) that would result in difficulties over budgetary matters. 1 Opinion delivered on 27 March 1996. 2 Opinion delivered on 18 January 1996. Amended proposal for a European Parliament and Council decision adopting a programme of Community action on health monitoring in the context of the framework for action in the field of public health COM(95) 449 AMENDED PROPOSAL THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the treaty establishing the European Community, and in particular Article 129 thereof, Having regard to the proposal from the Commission1, Having regard to the opinion of the Economic and Social Committee2, Having regard to the opinion of the Committee of the Regions3, Acting in according with the procedures referred to in Article 189b of the Treaty, 1. Whereas, in accordance with point (o) of Article 3 of the Treaty, Community action must the include a contribution of Community towards the achievement of a high level of health protection; whereas Article 129 expressly provides for Community competence in this field, in particular by encouraging cooperation between if necessary, lending support to their action; the Member States and, collection, 2. Whereas the Council, in its resolution4 of 27 May 1993 on future action in the field of public health, considered that and improved distribution of health data, as well as an improvement and compatibility of available data, are essential for the preparation of future programmes; analysis quality the in i 2 3 4 OJNo. OJNo. OJ No. OJNo. C 174, 25. 6. 1993, p. l for 3. Whereas, the European Parliament, in its resolution on public health policy after Maastricht5, has stressed the importance of having sufficient and relevant information the development of as a basis Community actions in the field of public health; whereas the it Commission to collect and examine health data from the Member States in order to assess the effects of public health policies, as well as the impact of other policies, on in the European the state of health Community. called on for 3. Whereas, the European Parliament, in its report on public health policy after Maastricht5, has stressed the importance of having sufficient and relevant information the development of as a basis Community actions in the field of public health; whereas the European Parliament called on the Commission to collect and examine health data from Member States and analyse trends and assess the effects of public health policies, as well as the impact of other policies; in the Commission, health6, on identified standardisation 4. Whereas its Communication of 24 November 1993 on the framework for action in the field of increased public and cooperation collection of comparable/compatible data on health, and the promotion of systems of health monitoring and surveillance as a prerequesite for the establishment of a framework for supporting Member States' policies and programmes; and whereas the area of health monitoring, including health data and indicators, has been identified as a priority area for proposals on multi- annual Community programmmes in the field of public health; OJ No. C 329, 6. 12. 1993, p. 375 COM(93) 559 final OJNo. C 329, 6. 12. 1993, p. 375 and invited indicators used 5. Whereas in its resolution of 2 June 1994, the Council7 indicated that the collection of health data should be the accorded priority Commission to present relevant proposals; whereas the Council considered that data and include measures relating to the quality of life of the population, accurate assessments of health needs, estimations of the avoidable deaths from the prevention of diseases, socio-economic factors in health among different population groups, and, where appropriate and if the Member States judge it necessary, health aid, medical practices, and the impact of reforms; should level 6. Whereas health monitoring at the Community is essential for the planning, monitoring, and assessment of Community actions in the field of public health, and the monitoring and assessment of the health impact of other Community policies; 6a. (new) Whereas on the basis, inter alia, of knowledge of the facts of public health in Europe, obtained by setting up a Community health monitoring system, it will be possible to monitor public health trends and define public health priorities and objectives; 7. Whereas health monitoring, in this context, encompasses the establishment of the Community collection, dissemination, and analysis of Community health data and indicators; indicators, health OJNo. C 165, 17. 6. 94, p. 1 in 8. Whereas its Decision on the framework programme for priority actions in the field of statistical information 1993 to 1997 the Council8 has identified under the heading "health and safety" analysis of mortality and morbidity by cause as one of the fields of priority actions under the sectoral programmes for social policy, for economic cohesion and social consumer protection; and 9. Whereas the Council9 in its Decision adopting a specific programme on research and technological development, including demonstration, in the field of biomedicine and health (1994-1998) identified a specific and research comparison of European health data, including nutritional data, the Member States, and whereas this was taken research work the in up programme; coordination relevant from task on should 10. Whereas health monitoring at enable level Community measurements of health status, trends and determinants to be carried out, facilitate the planning, monitoring and evaluation of Community programmes and actions, and provide Member States with health information supporting the development and evaluation of their health policies; 11. Whereas, in order to give full effect to requirements and expectations in this area a Community health monitoring system should be developed, comprising the establishment of health indicators and the collection of health data, a network for transmission and sharing of health data and indicators, and a capacity for analysis and dissemination of health information; OJNo. L219, 28. 8. 93, p. 1 OJNo. L361, 31. 12. 94, p. 40 to options 12. Whereas and available possibilities for developing the various parts of a Community health monitoring system should be carefully assessed with respect performance, the desired flexibility and the costs and benefits involved; whereas a Community health the monitoring system should definition of sets of Community health indicators and the collection of the data necessary for the establishment of such indicators; include from should draw 13. Whereas, Community health data and indicators readily available European data and indicators, such as those held by Member States or transmitted by international them organisations, so as to avoid unnecessary duplication of work; to a Community 14. Whereas health monitoring system would benefit from the establishment of a network, the backbone of which relies on telematics, for the collection and distribution of Community health data and indicators; a Community 15. Whereas health monitoring system should be capable of encouraging and assisting in the production of analyses of health status, trends, and health the Community, and in the availability and dissemination of health information; throughout problems that of including 12. Whereas available options and possibilities for developing the various parts of a Community health monitoring enhancing system, existing capabilities and/or setting up an observatory, should be examined with respect to the desired performance, and the costs and benefits involved; and whereas a flexible system is required which can incorporate features which are valuable at present while adapting to new requirements or other priorities; whereas a Community health monitoring system should include the definition of sets of Community health indicators and the collection of the data necessary for the establishment of such indicators; 13. Whereas Community health data and indicators should draw from existing European data and indicators, such as those held by Member States and/or transmitted by international them organisations, so as to avoid unnecessary duplication; to 13a. (new) Whereas the situation with regard to the collection of data varies from Member State to Member State: the Community health 14. Whereas monitoring system would benefit from being based on a network, the backbone of which the collection and distribution of Community health data and indicators; telematics, relies on for 15. Whereas the health monitoring system should provide material for regular reports on health status in the European Community, analyses of trends, and health problems, and assist in the availability and dissemination of health information; 15a. (new) Whereas importance must be attached to cooperation in the field of health and occupational health and safety, from which a picture of the prevalence of occupational diseases and accidents at work can be built up; 16. Whereas it is necessary to ensure the respect of legislative provisions on data protection, and the implementation of appropriate confidentiality and security arrangements; 16. Whereas overriding considerations in the development of a Community health monitoring system are the respect of legislative provisions on data protection, and the implementation of appropriate confidentiality and security arrangements; 17. Whereas a multiannual programme should be launched within the context of the framework for action in the field of public health, in order to permit the development of a Community health monitoring system and of appropriate mechanisms for its evaluation; 18. Whereas, by reason of its scale and effects, Community action in support of health monitoring enables the desired objectives to be reached more effectively; the 19. Whereas policies and programmes formulated and implemented at Community level, in particular those undertaken in the context of the framework for action in the field of public health, should be compatible with targets and objectives of Community action on health monitoring; whereas the implementation of Community actions on health monitoring should be coordinated with and take account of relevant research activities under the Community's Framework Programme for Research and Technological Development; whereas projects on telematics applications in the health field under the Community's RTD Framework must be closely coordinated with Community actions on health monitoring; whereas actions under the Community's framework programme for statistical information, the Community telematic projects field of the in closely coordinated with interchange of data between administrations (IDA) and G-7 health-related projects must be the implementation of Community actions on the work health monitoring; whereas undertaken by the specialised European agencies, such as the EMCDDA and the European Environment Agency, should be taken into account; 20. Whereas cooperation in this area with the competent international organisations and with third countries should be fostered; it is important the 21. Whereas Commission ensure implementation of the programme in close cooperation with the Member States; that point of view, 20a. (previously recital 23) Whereas, from an operational the investments made in the past both in terms of the development of Community networks and cooperation with international organisations competent in this field should be safeguarded and further developed; 21. Whereas it is important that the Commission implement this programme in close cooperation with the Member States; 22. Whereas an agreement on a "modus vivendi" between the European Parliament, the Commission the Council concerning measures implementing acts adopted in accordance with the procedure laid down in Article 189b of the EC Treaty was reached on 20 December 1994; and 23. Whereas, from an operational point of view, the investments made in the past both in terms of the development of Community networks and cooperation with international organisations competent in this field should be safeguarded and further developed; 23. Deleted 10 24. Whereas at present data are insufficiently comparable, and unnecessary duplication of effort should be avoided by the joint development of methodologies, comparison and conversion criteria and techniques, progressively harmonized data collection surveys, questionnaires or parts thereof, and content specifications for health information to be shared using in particular a telematics network; tools such as 24. Whereas unnecessary duplication of effort should be avoided by the joint development of methodologies, comparison and conversion criteria and techniques, progressively harmonised data collection tools such as surveys, questionnaires or parts thereof, and content specifications for health information to be shared using in particular a telematics network; 25. Whereas, in order to increase the value and impact of the programme, a continuous assessment of the measures undertaken should be carried out, with particular regard to their effectiveness and the achievement of objectives both at national and Community and, where the necessary adjustments appropriate, should be made; level framework constituting 26. Whereas this Decision lays down, for the entire duration of the programme, a financial the principal point of reference, within the meaning of point 1 of the Declaration of the European Parliament, the Council and Commission of 6 March 1995, for the budgetary authority during the annual budgetary procedure; 27. Whereas this programme must be of in order to allow five-year duration sufficient to be for implemented to achieve the objectives set, actions time HAVE DECIDED AS FOLLOWS: Article 1 Establishment of the programme 1. A programme of Community action on health monitoring, hereinafter referred to as "this programme", is hereby adopted for the period 1 January 1997 to 31 December 2001 within the framework for action in the field of public health. 11 is to 2. The aim of this programme establish a Community health monitoring system which allows the measuring of health status, trends and determinants throughout the Community, facilitates the planning, monitoring, and evaluation of Community programmes and actions, and provides Member States with appropriate health information to make comparisions and their national health policies. to support programme 3. The actions to be implemented under this specific objectives are set out in the Annex under the headings: their and The actions to be 3. implemented under this programme and their specific objectives are set out in Annex 1 under the headings: A. B. C. Establishment of Community health indicators Development of a Community-wide network for sharing health data Analyses and reporting Article 2 Implementation ensure 1. The Commission implementation, in close cooperation with the Member States, of the actions set out in the Annex in accordance with Article 5. shall ensure 1. The Commission implementation, in close cooperation with the Member States, of the actions set out in Annex I in accordance with Article 5. shall 2. The Commission shall cooperate with institutions and organisations active in the field of health monitoring. Article 3 Budget total appropriation for 1. The implementation of this programme for the period referred to in Article 1 shall be ECU 13. 8 Million. 12 The Commission shall ensure that there is consistency and complementarity between actions to be implemented under this programme and other relevant Community programmes and initiatives, including the statistical framework programme information, the projects in the field of interchange of data between telematic administrations, framework the and programme for research and technological development the in particular and telematics applications of the latter. for of 1. The Commission shall be assisted by a Committee an advisory nature. composed of two members designated by each Member State and chaired by a the Commission, representative hereinafter referred to as "the Committee". of 2. The annual appropriations shall be established by the Budgetary Authority in accordance with the financial perspectives. Article 4 Consistency and complementarity including The Commission and the Member States shall ensure that there is consistency and complementarity between actions to be implemented under this programme and other relevant Community programmes and framework initiatives, programme for statistical information, the projects telematic interchange between of framework and administrations, programme for research and technological development the in particular and telematics applications of the latter. field of data the the the in Article 5 Committee 1. The Commission shall be assisted by a Committee composed of two members designated by each Member State and chaired by a representative of the Commission, hereinafter referred to as "the Committee". 2. The representative of the Commission shall submit to the Committee draft measures concerning, in particular: (a) the Committee's rules of procedure; (b) annual work an programme indicating the priorities for action; 13 (c) including the arrangements, criteria, and and procedures selecting for this financing projects under programme, those cooperation with involving international organisations competent in the field of public health and participation of the countries mentioned in Article 6(2); (d) the evaluation procedure; (e) (f) (g) the arrangements for reporting, conversion, and harmonisation of the data; the arrangements for the definition and selection of indicators; the arrangements for the content specifications necessary for the development and operation of the relevant networks. 3. In addition, the Commission may consult the Committee on any other matter implementation of this concerning the programme. The representative of the Commission shall submit to the Committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairperson may lay down according to the urgency of the matter, if necessary by taking a vote. The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its opinion recorded in the minutes. The Commission shall take the utmost account of the opinion delivered by the Committee. It shall inform the Committee of the manner in which its opinion has been taken into account. 14 4. The representative of the Commission shall keep the Committee regularly informed about: financial assistance granted under this programme (amounts, duration, breakdown, and recipients); proposals initiatives and or Commission Community the implementation of programmes in other policy areas which are relevant to the achievement of the objectives of this programme, with a view to ensure the consistency and complementarity required under Article 4. Article 6 International cooperation and with 1. In the course of implementing this programme, cooperation with non-member countries international organisations competent in the field of public health, in particular the World Health Organization and the Organization and for Economic Cooperation Development fostered and shall be implemented in accordance with Article 5. and with In the course of implementing this 1. third cooperation with programme, countries international organisations competent in the field of public health, in particular the World Health Organization and the Organization and for Economic Cooperation Development, fostered and shall be implemented in accordance with Article 5. to relating the Additional Protocols 2. This programme shall be open to participation by the associated countries of Central and Eastern Europe (CCEE), in accordance with the conditions laid down the in Association Agreements to participation in Community programmes to be concluded with those countries. This programme shall be open to participation by Cyprus and Malta on the basis of additional appropriations in accordance with the same rules as those applied to the in accordance with EFTA countries, procedures those countries. to be agreed with 15 Article 7 Monitoring and evaluation 1. The Community, taking into account the reports drawn up by the Member States and with the participation, where necessary, of independent experts, shall ensure that an evaluation the actions undertaken. is made of into these incorporate 2. The Commission shall submit to the European Parliament and the Council an interim report halfway through, and a final report on completion of this programme. It shall reports information on Community financing in the on various complementarity with the other actions referred to in Article 4, as well as the results of the evaluations. It shall also send the Economic and Social them Committee and the Committee of the Regions. action fields and to of ANNEX ANNEX I SPECIFIC OBJECTIVES AND ACTIONS A. OF E S T A B L I S H M E NT C O M M U N I TY H E A L TH INDICATORS Objective: To establish Community health indicators by a critical review of existing health data and indicators, and develop appropriate methods for the collection and of progressively harmonised health data. comparable 16 1. Carrying out an identification, review and critical analysis of existing health indicators and data at the European and Member States' level in order to identify their relevance, quality and coverage with regard to the establishment of Community indicators. for the monitoring 2. Creation of a set of Community health indicators, including a sub-set of core indicators of Community programmes actions in public health, and a sub-set of background indicators for the monitoring of other Community policies programmes and actions, and for providing Member States with common measures for making comparisons. and/or 3. Development of the routine collection of comparable progressively harmonised data in the Member States, including support for the elaboration of data dictionaries, and the establishment of appropriate conversion methods and rules. Creation of a set of Community 2. health indicators, including a sub-set of core indicators for the monitoring of Community programmes actions in public health, and a sub-set of background indicators for the monitoring of other Community policies programmes and actions, and for providing Member States with common measures for making comparisons. Details of these indicators are given in Annex II to this programme. of to the collection of 4. Contributing the supporting comparable data by elaboration including Community-wide surveys in support of Community policies, or modules or agreed forms of words for questions in existing surveys. surveys 5. Foster co-operation with international organizations competent in the field of European health data and indicators and networks for the exchange of health data covering specific areas in public health, in order to enhance comparability of data. 17 and cost-effectiveness 6. Support for the assessment of the of feasibility developing standardised health resource statistics with the aim of including them in a future Community health monitoring system. B. D E V E L O P M E NT OF A COMMUNITY-WIDE NETWORK FOR SHARING HEALTH DATA Objective: To enable the establishment of effective and reliable transfer and sharing of health data and indicators using telematic interchange of data as the principal means. 7. Encourage and support the development of a network for sharing health data, mainly using telematic interchanges and a system of distributed databases, in particular by the establishment of data specifications and of procedures with the access, retrieval, regard confidentiality and security for the different types of information to be included in the system. the to assessment of the feasibility and cost- effectiveness of developing standardised health resource statistics with the aim of including them in the Community health monitoring system. Encouragement of and support for 7. the development of a network for transferring and sharing health data, mainly using telematic interchanges and a system of distributed databases, in particular by the establishment of data specifications and of procedures with regard to the access, retrieval, confidentiality and security for the different types of information to be included in the system. C. ANALYSES AND REPORTING Objective: To develop methods and tools necessary for analysis and reporting, and support analyses and reporting on health trends, status, determinants, and the effect of policies on health. 18 8. Encourage the development of a capacity for analyses, including comparative and predictive methodologies and tools, the testing of hypotheses and models and the and evaluation outcomes. of health scenarios 8. Encouragement of and support for the development of a capacity for analyses, enhancing existing capabilities, and for feasibility for possible new structures, comparative and predictive methodologies and tools, the testing of hypotheses and models and the evaluation of health scenarios and outcomes. studies 9. Support for the analysis and evaluation of the impact of Community actions and programmes in public health. for of the production and 10. Support dissemination other and reports information material on health status and trends, health determinants and the impact on health of other policies. the Support 9. analysis,. for preparation, and dissemination of reports evaluating the impact of Community action and programmes in the field of public health. for the Support preparation. 10. production and dissemination of reports and other information material on health status and trends, health determinants and the impact on health of other policies. ANNEX II Non-Exhaustive list of domains in which health indicators may be established under the Community health monitoring system Health Status 1. Life expectancy: - life expectancy at certain ages - health expectancies 2. Mortality: - overall - causes of death - disease-specific survival 3. Morbidity: - disease-specific morbidity - co-morbidity 4. Functioning and quality of life: self-perceived health - - physical disability - activity limitations - functional status/ability - health-related work loss 19 - mental health 5. Anthropometric characteristics B. Life Style and Health Habits Illicit drug consumption 1. Tobacco consumption 2. Alcohol consumption 3. 4. Physical activities 5. Diet 6. Sexual behaviour 7. Other health promotion-related activities C. Living and working conditions 1. Employment/unemployment: - occupation 2. Work environment: - accidents - exposure and substances other to carcinogenic dangerous - occupational health 3. Housing conditions 4. Home and leisure activities: - accidents at home - leisure 5. Transport: - automobile accidents 6. External environment: - air pollution - water pollution - other types of pollution - radiation to carcinogenic - exposure and dangerous substances outside the work environment other D. Health Protection 1. Sources of financing 2. Facilities / Manpower 20 - Health resource utilisation - Health care personnel Cost / Expenditure - In patient care - Out patient care - Pharmaceutical products Consumption / uses - In patient care - Out patient care - Pharmaceutical products Health promotion and disease prevention £. Demographic and Other Social Factors 1. Gender 2. Age 3. Civil status 4. Region of residence 5. Education 6. Income 7. Population subgroups 8. Health insurance status F. Miscellaneous 1. Product safety 2. Others 21 ISSN 0254-1475 COM(96) 222 final DOCUMENTS EN 05 Catalogue number : CB-CO-96-232-EN-C ISBN 92-78-04220-X Office for Officiai Publications of the European Communities L-2985 Luxembourg 2<L

COMMISSION REPORT ON THE CONSTRUCTION-PRODUCTS DIRECTIVE

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* *,. * it I COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 15. 05. 19% COM(%) 202fwal COMMISSION REPORT ON THE CONSTRUCTION-PRODUCTS DIRECTIVE COMMISSION REPORT ON THE CONSTRUCTION-PRODUCTS DIRECTIVE Introduction The aim of the 1988 Construction-Products Directive1 is to ensure the free movement of all construction products throughout the Union. The Directive covers a very significant area of EU industrial activity: 1. 8 million businesses operate in this sector, with a turnover representing almost 10% of Community GNP. Admittedly, 97% of these firms have fewer than 20 employees and are active mainly in regional markets. Article 23 of the Directive requires the Commission to report on the operation of the Directive by 31 December 1993 at the latest and, where necessary, to submit proposals for appropriate amendments. In an earlier communication, the Commission announced that this examination would be postponed as measures implementing the Directive still needed to be adopted. Decisions taken in 1994 and 1995 have produced a more complete framework for us to assess more effectively both the operation of the Directive and the need for greater efficiency in its implementation. The Group of experts on legislative and administrative simplification, better known as the Molitor Group, believes the report should be presented as soon as possible (cf. extract in annex). Council Directive 89/106/EEC of 21 December 1988 on the approximation of laws, regulations and administrative provisions of the Member States relating to construction products. (OJ L 40, 11. 2. 1989, p. 12). II. Current situation The Construction-Products Directive provides a general. legal framework for producing European technical specifications. The removal of barriers to trade essentially depends upon the adoption of these specifications, namely the harmonised standards (i. e. specifications adopted by the CEN or Cenelec under a Commission mandate) and the European technical approvals, the latter being granted for products for which no harmonised or national standards exist. 2 To this day, no technical specifications have yet been adopted, with the result that no construction products bear the CE logo. The Molitor Group has criticized this situation in its report and has thus stressed the non-operational nature of such a Directive. It must be said that standards and technical approvals require implementing decisions to be taken, the prior adoption of which certainly requires a long time. The process is slow because the Directive's scope is so broad (covering all construction products, from cement to pipes, from sanitary installations to telegraph poles) and because certain technical aspects are not perceived in the same way by Member States. Work carried out in recent years has made it possible to clarify the approach needed. Thus, the Commission has recently been able to adopt: documents interpreting the essential requirements3 (in January 1994); a Decision classifying products in respect of fire behaviour tests (in June 1994); The Construction-Products Directive is original in providing for two types of technical specifications: harmonized standards, adopted by the CEN/Cenelec, as in the case of other "new approach" Directives; European technical approvals, adopted by the European Organization for Technical Approval. The specific field covered by each of these specifications is provided for by the Directive. The existence of "documents interpreting essential requirements" is another original feature of the Directive. They aim to provide a link between essential requirements concerning construction projects and features which have to be taken into consideration by the technical specifications for products. the first finalised mandates instructing the CEN and Cenelec to devise harmonised standards for certain families of products; (heat-insulating products, doors, windows, shutters, gates and related building hardware, membranes, precast normal/lightweight/autoclaved aerated concrete products) (in October 1994); Decisions on the conformity checking for those same product families (in May 1995); decisions on conformity checking and mandates for three new product families (in October 1995). A great many other decisions are being prepared for other product families (masonry products, pipes, etc. ). In order to have products All these measures represent significant progress. bearing the CE logo, however, such decisions need to be incorporated into technical approvals or standards. We must bear in mind that harmonised standards will not be available for a significant number of products for at least five years. This is because: (a) for most construction products, trade barriers result from the lack of harmonised tests for fire behaviour or resistance. For the Directive to work properly, standardization must be preceded by an approximation of the basic regulations in this area. This approximation is linked to the functioning of the Directive even if legally it has to take place through regulations on works not directly covered by the products Directive. Approximation will therefore require political commitment. If that commitment is not forthcoming the work will be very slow, delaying the adoption of harmonised standards even further; (b) the implementing decisions - particularly standardization mandates - have hitherto been adopted for only 7 product families out of a total of at least 40. The Molitor Group considers the drafting of these documents to be excessively slow. The Member States' tendency to require that standardization mandates include all the essential aspects of their national regulations is making each drafting process take as much time as it would the Commission to adopt a Directive for each product family. Normally, the implementation of a 'new approach' Directive should imply that standardization mandates refer to nothing other than the essential requirements; (c) the operative part of the Directive is such that there can be no harmonised standard until all the requirements and required characteristics - deriving from the essential requirements - for a particular product have been harmonised. Thus for doors the existence of a harmonised "door" standard presupposes, inter alia, a common approach to test methods for fire, wind, heat and shock proofing, watertightness, airtightness, etc. The date on which the last standard for a specific test is adopted is thus the date on which the harmonised standard becomes available; (d) the Directive does provide for an alternative to harmonised standards: European technical approval. Technical approval may be granted to products for which standards are unlikely to be available, i. e. innovative products. Thus it can only be used as a supplement to standardization; (e) a final difficulty is that the Directive can only be applied if standards exist. But the adoption of standards depends on the good will of the standardizes. In addition, those involved in standardization feel there is too large a gap between their priority task of producing the standards required by the market (i. e. quality requirements) and the too-narrow vision of the harmonised standards, which include only those aspects which need to be compulsory. The forwarding of the first mandates has already revealed that this is a real problem. It is vital, therefore, that the standardization bodies should commit themselves and take account of the priorities relating to the mandates when planning and executing their tasks. III. Consultations and questions It can be seen from the above that technical harmonization, which is the aim of the Directive, will only be achieved as a result of a slow and gradual process. Prior to drafting this report, the Commission consulted the Member States and the representatives of industry within the Standing Committee on Construction on 27 September 1995. The contributions received stress that the results regarding work so far achieved have been positive and encouraging, but also acknowledge that there will be difficulties in applying the Directive properly. Virtually all the parties agree that the correct response would be to speed up the implementation work on the Directive and clarify a number of questions about which there is still uncertainty, such as those currently arising from the lack of technical specifications. IV. The options The fact that a Directive adopted in 1988 is only being implemented gradually and slowly cannot be regarded as wholly satisfactory. It is necessary to reflect on the ways and means of increasing efficiency in this respect, namely by ( 1 ) a commitment from the Member States in the following three areas: (a) in the area of fire regulations, harmonised standards cannot be adopted until common tests have been adopted to assess a product's fire behaviour. The Commission has taken a first step in this direction by defining product classes in this area. It still has to define the necessary tests for each of these classes. The technical work is flagging. Political impetus is needed; (b) in the area of works regulations, a lot of work has been carried out on a voluntary basis, in the form of Eurocodes in order to draw up common codes on works structures. Effective harmonization of the products used in these works presupposes a commitment from the Member States to take account of the Eurocodes in their national regulations; (c) the transitional period preceding during the adoption of harmonised standards, Member States ought to work to facilitate the mutual recognition of tests on products in a systematic manner. A more active policy on mutual recognition should deal with those cases where construction products are refused on the grounds that, although they have been checked in the country of origin, the country of destination refuses to become aware of or recognize their conformity; (2) changes adapted to needs in applying the Directive: (a) simplifying the decision-making procedures This could cover decisions on the checking and certification of conformity and standardization mandates; standardization mandates: it should be stressed that the drafting of standards does not presuppose that standardization mandates take account of all of the requirements of the national regulations. What is more, these mandates are only contracts asking experts to draft specifications. A return to more general and less specific mandates will enable them to be adopted and applied in a more flexible manner; themselves to applying consistently for decisions on the certification of product conformity, all parties should commit the methodology devised for exercising a choice between the two main options, manufacturer's declaration and certification. Also, if several product families were grouped together in a single. decision, this would avoid the need for taking forty different implementing decisions (and thus a great deal of red tape); (b) enlightened implementation of the Directive owing to the new approach _ It is not advisable to defer implementation of the Directive until all of the requirements established for a product have been harmonised. The test methods for a number of those requirements need still to be developed. Any such method of procedure would push any tangible results of the standardization activities as a whole into the distant future. Where there are no harmonised standards and technical approvals, a producer has first of all the right to demand application of the principle of mutual recognition by invoking the provisions of the Treaty on the free movement of goods as interpreted by the Court of Justice in its case law, subject to justified restrictions pursuant to Article 36 (consumer protection, safety and health). Secondly, producers should be given greater scope to declare that a product meets the essential Community requirements on the basis of the existing interpretative documents, even if not all of the harmonised standards are available yet. This opportunity should not only make access to the CE logo easier for manufacturers, but also allow the Community to concentrate its activities on the essential harmonised standards, thus avoiding tendencies towards over-regulation and the imposing of excessive burdens on manufacturers. V. Conclusions The implementation of the Directive gives rise to difficulties. To overcome them: the Commission should undertake to clarify the detailed rules for implementing the Directive, speed up the work and draw up a suitable work plan; the Member States should avoid insisting on a multitude of detailed rules in the implementing provisions; the European Committee for Standardization should commit itself to actually putting in place a programme to develop harmonised standards. In view of the scope thus offered for improving the way in which the Construction- Products Directive is applied, the Commission does not consider it appropriate to propose amending the Directive at this stage. It will, however, monitor the situation very closely over the next two years. At the end of that period, it reserves the right to propose any amendments deemed necessary on the basis of the prevailing situation. Moreover, use could be made of these two years by the relevant departments, to deliberate, in conjunction with the Standing Committee on Construction, on the functioning of the internal market as regards construction products. ANNEX MOLITOR GROUP CONSTRUCTION PRODUCTS CONSTRUCTION PRODUCTS 16. At the beginning of 1994, the Atkins Report stressed the importance of the building sector for Europe's competitiveness. "Construction is an industry in which Europe can beat the world. But there is a danger of failing to grasp the opportunities and allowing the markets in Europe and the quality of construction to decline. There is still much that can be done to make the industry stronger and to remove some of its weaknesses and to improve the built environment of Europe". Competitiveness in the construction industry the could be European Union. free movement of products within improved by the effective Directive 89/106/EEC, amended in 1993 and hereinafter referred to as the Construction- Products Directive, aims to remove impediments to the free movement of products due to differences: in standards, testing and certification of conformity procedures, or in the national laws on construction products. 18. The Construction-Products Directive is one of the "new approach" Directives. It lays down the essential requirements applicable to building structures as a whole and not to the various construction products: * * * * * * mechanical strength and stability safety in the event of fire hygiene, health and the environment safety in use protection against noise energy saving and heat insulation. 19. This means that Member States can only authorize access to the market of those construction products possessing the qualities such that the construction work in which they are used satisfies the essential requirements of the Directive. 20. In contrast to the other "new approach" Directives, the essential requirements of the Construction-Products Directive have been embodied in interpretative documents. The latter serve as a basis for drafting European harmonised standards or other technical specifications established at European level, or for the establishment or conferring of European technical approval or for the recognition of national technical specifications. 21. The CEN (European Committee for Standardization) is responsible for drafting European harmonised standards relating to construction products. To be able to use the CE logo, the product must conform to the European technical specifications, which are: * * * European harmonised standards (European bodies: CEN, Cenelec); European technical approvals (European body: EOTA); recognized national technical specifications. The CE logo indicates that products conform to the European technical specifications that apply to them. To certify this, conformity procedures have to be applied. In principle, two methods are possible: 1. a statement of conformity provided by the manufacturer, 2. a certificate of conformity issued by a notified body. 22. Although the Construction-Products Directive was adopted in 1988 and its transposition was set at 27 June 1991 at the latest, seven years later the building industry is still not able to use the CE logo for construction products. There are several reasons for this stagnation: the drafting of mandates conferred on the CEN for the drawing up of harmonised standards takes too long. Only four of the 80 documents needed have so far been finalised and progress is therefore much too slow; in contrast to the other "new approach" Directives, the Construction-Products Directive does not enable manufacturers to use the CE logo directly for products which meet the essential requirements of the Directive. The CE logo can only be affixed if the product meets the harmonised European technical specifications. In practice, this means that manufacturers cannot use the CE logo since there arc no harmonised technical specifications. 23. For the time being, the new approach does not work in the construction-products sector. As long as there are no harmonised standards or other technical specifications, there will be no free movement of construction products. These products must still satisfy differing national requirements, which is detrimental to the competitiveness of the European construction industry. Proposal 11 10 The drafting of European harmonised standards for construction products should he speeded up. In the meantime, the Commission must put forward proposals to achieve the review these aims while completing and implementing as quickly as possible provided for in Article 23 of the Construction Products Directive (89/106/EEC), and/or enabling manufacturers to sell their products in other Member States. 11 ISSN 0254-1475 COM(96) 202 final DOCUMENTS EN ©2 10 08 Catalogue number : CB-CO-96-218-EN-C ISBN 92-78-03967-5 Office for Official Publications of the European Communities L-2985 Luxembourg \%

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND THE REGIONS - The competitiveness of subcontracting in the textile and clothing industry in the European Union

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 15. 05. 1996 COM(96) 210 final COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS The competitiveness of subcontracting in the textile and clothing industry in the European Union CONTENTS 1. Introduction 2. Situation of subcontracting in the European textile and clothing industry 3. Factors for improving competitiveness 4. Action to promote the competitiveness of subcontracting in Europe 4. 1 Multisectoral programmes and instruments 4. 2 Community action in support of subcontracting 4. 3 Promotion of the competitiveness of subcontracting in the textile and clothing industry 5. Conclusions 3 4 6 7 7 9 10 13 d 1. INTRODUCTION Small subcontracting firms working for local or distant manufacturers make up a large proportion of the textile and clothing industry in the European Union, varying from 10% to 60% depending on the Member State. These subcontracting activities are spread between a web of thousands of small businesses, often taking the form of cottage industries, which play an essential role as a source of employment and income, particularly in certain regions. The latest estimates suggest that subcontracting employs 650 000 people, of whom around 200 000 are home-based. Approximately 150 000 undeclared workers must be added to this. This accounts for a considerable proportion (approximately one third) of all jobs in the textile and clothing industry in the European Union. Subcontracting is highly labour-intensive and an extremely important source of jobs. However, these firms suffer from certain structural weaknesses. They have to cope with far-reaching changes and the adjustment strategies adopted by their customers (industrial manufacturers and distributors), on which they often depend heavily. They are also vulnerable to competition from low-wage countries. Finally, a series of cultural and psychological barriers have given rise to underinvestment in training and innovation and difficulties in building strategies tailored to the changes and with access to the markets. Small subcontractors, in particular, have extremely lean management structures unwilling to take action not connected directly with running the firm. In a climate of major industrial change and fiercer international competition, strengthening the competitiveness of subcontracting is essential in order to maintain significant industrial activity in Europe, bearing in mind the close links existing within the textile and clothing industry. While the bulk of the efforts to adjust must be left to the skills and capacities of the firms themselves, the public authorities must contribute towards creating an environment conducive to making the firms more competitive and capitalizing on the advantages stemming from completion of the internal market. The objective of this communication is to propose a package of measures and a structure for supporting the efforts made by subcontractors in the textile and clothing industry to improve their competitiveness. The Commission, assisted by a Group representing the industry, could play a promoting and organizational role to ensure complementarity and synergies between the various levels and partners. Dissemination of information and of best practices, in the context of the competitive advantages of the industry, and strengthening of industrial cooperation are the two lines of action to be given priority. The action envisaged consists, in particular, of intangible investment to implement a work programme initiated with the collaboration of both management and workers. 3 Accordingly, in December 1992 the first subcontracting forum was held in Madrid, followed by several sectoral conferences. In 1994 a study on subcontracting in the clothing industry analysed the importance and structure of subcontracting, identified the difficulties encountered by finishers and manufacturers and studied the competitiveness strategies needed in order to find solutions in the form of redeployment and the measures taken by the public authorities and firms. In March 1994 the European Commission organized a European forum on subcontracting in the clothing industry in Brussels, attended by over 200 representatives of the industry. This provided an opportunity to exchange information on the programmes in progress or being prepared and on the action best suited to the needs of the subcontracting sector (finishers, industrial manufacturers and distributors). In the wake of these moves, a series of pilot projects has been launched to test the viability of the action envisaged. At the same time, five round tables have been organized in various Member States (Belgium, France, Italy, Greece and Portugal) to examine the suitability of the programme in the field. The entire exercise has been carried out in close collaboration with management and labour. To this end, a steering committee has been set up, bringing together representatives of the Commission departments concerned, the relevant trade associations, including small businesses, and the trade unions. Depending on the subjects discussed, various independent experts have also been asked to contribute. On 28 March 1996, the Industry Council asked the Commission to present it with a communication on the position of subcontracting in the European textile and clothing industry. 2. SITUATION OF SUBCONTRACTING IN THE EUROPEAN TEXTILE AND CLOTHING INDUSTRY Subcontracting involves all the areas in the textile and clothing industry, but is particularly widespread in the finishing and made-up articles sectors (knitweaiVclothing). It covers a multitude of undertakings, including large numbers of small firms, many of them located in rural regions where they offer local employment, mainly for women, and thereby make a considerable contribution to local prosperity. Subcontracting firms vary widely in terms of size, areas of activity, development and relations within the industry. It is a relatively unknown world from the statistical point of view. With the cooperation of the firms concerned the Commission has launched a statistics programme to fill at least some of the gaps. Subcontracting today is subject to a series of constraints stemming from the major structural and cyclical changes affecting the entire textile and clothing industry. The firms face a market with increasing outside competition, stagnant demand in Europe and big changes in consumer preferences. To develop subcontracting and keep it profitable, a shift in the comparative advantages of these activities is required, principally by using flexible, quick response systems and harnessing know-how. In particular, subcontractors in the textile and clothing industry face: (a) (b) (c) (d) Internationalization of production and, in particular, relocation to low-wage countries, which are the basic competition facing subcontractors. The relocation of making-up activities to these countries has been accentuated by transfers of orders by leading manufacturers. A number of third countries have attained high standards of sophistication and quality, while transport costs and times have fallen. Flexible relocation is increasingly within the reach major distributors who take decisions on the basis of an in depth analysis of all the relevant economic factors, both positive and negative. Such distributors also have the capacity to control complex logistics, information and management systems for relocated plants. The greater influence of distributors (specialist chain stores, department stores, Initially, subcontracting benefited from this. However, more rational etc. ). management of major distribution structures the development of mass distribution, has stepped up the pressure on prices. Moreover, in response to less predictable demand, distributors have attempted to reduce their commitment at the start of the season and increased their mid-season orders for restocking and responding to demand. Consequently, subcontractors for made-up articles are forced to accept the risk of rapid response to more flexible demand across the product range and renewal of collections at prices competitive at world levels. in Europe, particularly This situation is reflected in the new regulation on outward processing traffic1 which aims at keeping relocation of production within certain limits and under equitable conditions to enable undertakings in the Community to develop and promote industrial cooperation. Subcontractors can also benefit from these measures in order to keep competitive by cutting their costs. the complex demand has fallen as a result of The cost of managing computerization and the introduction of new sophisticated management and organization methods. However, labour costs remain fairly high (75% to 80%) because of the seasonal, irregular workload which requires more flexible use of working time. Some operators have turned to clandestine work to cut costs and satisfy the needs for lean production. There are an estimated 150 000 clandestine workers (20% of the regular workforce). According to the study mentioned earlier, every year these activities cost, in unpaid taxes, an amount equal to the support paid to the textile and clothing industry in the EU. In view of the pressure which they exert on prices, these practices provide no lasting protection for jobs or for the competitiveness of the undertakings. They are opposed by the workers' associations and cannot be tolerated by the public authorities. Council Regulation (EC) No 3036/94, OJ L 322, 15. 12. 1994. Today, four rationales dictate subcontractors' operating strategies, namely: (a) costs, based on low labour costs and direct competition with low-wage countries; (b) (c) (d) response and flexibility, drawing advantages from competitive speed of response to demand in phase with the diversification and volatility of demand and distribution trends; expertise and know-how, on the niches of the market where know-how, experience, learning or specialization offer significant competitive advantages; service, where finishers offer manufacturers added services such as cooperation in design, coordination of subcontracting networks, fabric purchases, etc. logistical support, In some regions, particularly in Northern European countries, response, service and flexibility are the predominant concern under the pressure exerted on prices by developments on the distribution side. In others, by contrast, the situation is less uniform, with costs the overriding rationale for approximately one-third of subcontracting in Europe, the same share as response and flexibility. The remaining third is divided equally between expertise and service. Subcontracting based purely on cost considerations is the area which faces the biggest challenges and will continue to do so. In particular, the gap between costs in Europe and in certain of its trading partners is too wide to preserve competitive advantages on this point, particularly in the case of bottom-of-the-range products. By contrast, Europe still holds other competitive advantages allowing productivity improvements, particularly in terms of qualifications, service, better use of flexible logistics, style and product quality. Another major challenge faces small subcontractors in particular. These are an important source of jobs, but often they are compartmentalized into their regional markets and find it difficult to seize the opportunities created by the opening-up of the markets and by the changes in demand, technology and the industry. 3. FACTORS FOR IMPROVING COMPETITIVENESS The steady loss of comparative advantages on labour costs, in comparison with low-wage countries, has triggered adjustments in the subcontracting sector in Europe to realign the competitive advantages of its activities. The greatest successes in this area have been with the development of intangible investment and industrial cooperation in particular. The competitiveness factors related with intangible investment have developed in step with trends on the markets and in demand. In terms of flexibility and response, production has been reorganized by using just-in-time and rapid-response methods combined with all-round vocational training. In addition, quality, innovation, know- how and service have assumed growing importance in firms' strategy. Use of information technologies appears an extremely important means of improving the competitiveness of firms in this sector, including subcontractors. In practice, these technologies are an appropriate means of meeting the needs imposed on firms by the reorganization of production, the changes in consumer behaviour and, more generally, the development and globalization of markets. For small subcontractors in particular, these technologies provide a faster, cheaper means of organizing contacts and reducing some of the handicaps of distance, making it easier to participate in activity or information networks and in restructuring the industry. However, to develop and strengthen these factors in competitiveness greater efforts are needed on dissemination of information and training. The first thing is to overcome the psychological, cultural and willingness barriers in order to demonstrate the advantages of the reforms within firms and to whet the appetite for training on the part of workers and managers alike. Modern means of communication, with appropriate assistance, would then allow specific schemes tailored to finishers' availability. Subcontractors should also be able to benefit fully from the single European market or to acquire an international dimension. Cooperation between firms should enable them to find complementary strengths which would contribute to more competitive positioning of subcontracting activities within the textile and clothing industry, by developing and consolidating clusters and activity and information networks, organizing ways of harnessing know-how, promotion measures and access to non-Union markets. Moreover, successful cooperation between manufacturers and finishers has shown that this area is also a major means of strengthening competitive advantages and stability, not only for subcontracting but also for the industry as a whole. The measures taken by the Union as part of its general competitiveness policy, the policies to support industrial adjustment and a more offensive commercial policy should encourage the essential synergies and act as a catalyst for decentralized moves and projects at national and European levels. 4. ACTION TO PROMOTE THE COMPETITIVENESS OF SUBCONTRACTING IN EUROPE 4. 1 MULTISECTORAL PROGRAMMES AND INSTRUMENTS Several of the Community programmes and instruments under the existing policies can be used by subcontractors to support the action taken by the private sector to improve its competitiveness. A budget of ECU 141 billion, in 1992 prices, has been allocated to action financed by the Structural Funds from 1994 to 1999 (to which ECU 4,724 billion for the new Member States must be added). Funding can be provided for subcontracting under the action programmes for industry in the Community support frameworks and the Member States' single programming documents and under the Community initiatives. In the objective 1 regions with a heavy concentration of textile and clothing firms, the existing industrial programmes offer great potential, both in terms of resources and of the measures planned to improve industrial competitiveness. To this end, the follow-up to the programmes provides an opportunity to make the action on subcontracting more effective, by acting on the conclusions of this communication. In the case of the objective 2 regions, the Member States will be submitting the new 1997- 1999 programmes to the Commission for approval soon. Consequently, this would give the competitiveness of objective 2 regions an opportunity subcontracting (for which a Community contribution of in ECU 8 billion, in 1992 prices, is planned). include action on their programmes to The Community initiatives consist, in particular, of: PME, which was allocated a budget of ECU 1 billion for 1994 to 1999 to encourage small businesses to adapt to the requirements of the single market and international competition; the RETEX programme for modernization and conversion of regions dependent on the textile and clothing industry which has a budget of 522 million ECU for the period 1994-1997. The extension of this programme to 1999 is being considered. ADAPT, with a budget of ECU 1. 4 billion (in 1994 prices) for 1994 to 1999, to encourage the workforce to adapt to industrial changes by means of innovatory transnational projects. An additional ECU 170 million is planned to finance action on the information society, an area of particular interest for developing relations between manufacturers and subcontractors. Furthermore , the LEONARDO programme worth 620 million ECU, aims to promote quality and innovative capacity in the area of professional training on a trans-national basis, supporting pilot projects, exchange programmes, studies and analyses. In addition, the financing from the European Social Fund takes account of the special difficulties which small businesses have in improving their staffs qualifications and with in-house training in general. Encouragement has been given to improve the quality of the outside training available and to develop distant learning methods in order to provide more efficient, more flexible training. Between 1994 and 1999 some ECU 6 billion from the Social Fund could go towards promotion of a more systematic approach to continuing vocational training. The action for the new objective 4 in turn offers a more effective response to subcontracting firms' training needs. In particular, objective 4 encourages diagnosis of firms' needs for training and requalification in their specific environment and provides a means of defining a strategy to organize training and run continuing training schemes. To this end, it also encourages action on transfers of technology and professional experience from big businesses to their small suppliers. In the fourth framework programme on research and technological development, more has been done to make it easier for small businesses to participate in the Community research programmes and to gain access to the results. In particular, in the field of Industrial Technology and Materials (Brite Euram IH) more than 60 research projects are underway, most involving SMEs within the sector. A targeted research programme2 consisting of networks of R&D projects in the textile/clothing sector is in progress. Various other financial instruments (EIB global loans, the "PME facility" interest-rate subsidy mechanism and the European Investment Fund) are available to support action by small businesses in various fields. Finally, measures have been taken to promote cooperation between small businesses, such as the BC-Net and BRE networks for seeking potential partners and the Europartenariat and INTERPRISE programmes for direct contacts as well as local inter regional initiatives like subcontracting promotion centres. The Council approved in 1995 a special budget line of 400M ECU to support the modernisation and restructuring of the Portuguese textile and clothing industry This programme will be implemented over the period 1995-1999 and incorporates measures which will help the subcontracting sector become more competitive. 4. 2 COMMUNITY ACTION IN SUPPORT OF SUBCONTRACTING The action taken in support of subcontracting has been concerned principally with creating a favourable environment for subcontracting in the context of the single market and information and communication between manufacturers and subcontractors. improving 4. 2. 1 Creating a favourable environment for subcontracting (a) Statistics programmes to improve information on subcontracting The object of this exercise is to supply regular information on trends in subcontracting. It is coordinated by Eurostat in collaboration with the national statistics institutes and the relevant trade organizations. (b) Practical guide to the legal aspects of subcontracting the improve contractual relations between manufacturers and subcontractors, To Commission has published a practical guide outlining the main legal issues arising in this connection and examining the legislation in force in the Member States on subcontracting relations. The guide will be updated to take account of legislative developments in Member States and to extend the comparative analysis to Austria, Finland and Sweden. The targeted research project(Tofa/ Quality Textiles)gxou^ the projects in 4 clusters: "Advance Processing Machinery", "Innovation in Processing Techniques", "Modelling and Planning", "Monitoring and Control". (c) Code of practice In collaboration with UNICE (Union of Industrial and Employers' Confederations of Europe) and trade associations, in order to improve relationships between manufacturers and purchasers, the Commission has started the elaboration of a Code of Practice setting out standards of good practice in quality, certification and periods for payment. 4. 2. 2 Improving subcontractors information and communication between manufacturers and (a) Multilingual sectoral terminology A preliminary series of glossaries of multilingual sectoral terminology has been published to deal with language problems connected with international subcontracting. These are now being brought up to date, with the cooperation of workers and employers to take account of the technical advances in the sector and the development of the single market. (b) Networking of data bases on subcontracting In 1994 the Commission launched the SCAN (Subcontracting Assistance Network) project to improve the accessibility, regularity and quality of information on subcontracts by means of interconnection and interoperability of subcontracting exchanges and data bases in Europe. (c) Directory of intermediary agencies for subcontracting This Directory was published for the first time in 1992 and updated in 1994. It provides an overview of all agencies representing undertakings interested in subcontracting. 4. 3 PROMOTION OF THE COMPETITIVENESS OF SUBCONTRACTING IN THE TEXTILE AND CLOTHING INDUSTRY In response to the conclusions of the forum on subcontracting in the clothing industry, held in Brussels in March 1994, the Commission, in cooperation with the two sides of the industry and with technical support from independent experts, has promoted a series of studies to assess the impact and feasibility of certain support measures to make the industry more competitive. The general lines of action considered were tested in the field by five round tables in Belgium, France, Greece, Italy and Portugal. These covered four fields: (a) Information In essence, the action envisaged forms part of the Commission's general programme. In addition, a user guide to European Union financing programmes targeted, in particular, on small businesses in this sector, was published recently. 10 (b) Cooperation between manufacturers and subcontractors Improvement of the channels of communication between manufacturers and subcontractors is broadly considered a key means of promoting competitiveness and further progress in the situation of subcontractors. It helps to bring this sector out of its isolation. The work done so far has focused on technical relations, particularly on three means of communication: the manufacturer's technical file, which should offer a clear, comprehensible definition of the characteristics of the product to be made; technical glossaries bringing together the corresponding terms in different languages; electronic data interchange (EDI) covering the broader needs for the firms' activities. These instruments were considered useful by the undertakings questioned and by representatives of the industry, who stressed the support which they would lend for creating an environment conducive to participation in the single market. (c) Training In the clothing industry, several areas of training have been identified and studied with regard to the qualifications required in the light of developments in the international environment, on the markets and in the situation of the industry. 3 Particular attention must be paid to the qualifications on business management strategies, on logistics and flow management, on international relations and human relations (motivation, communication, etc. ), and the flexibility and versatility of the entire workforce. Generally, the qualifications required by subcontracting firms are no different from those required by the industry as a whole. Nevertheless, there are certain specific problems connected with the limited availability of staff and lack of time, insufficient information, fragmentation and other difficulties which entrepreneurs experienced in attending or releasing their staff to attend training courses. A first step in this area would, therefore, be the development of awareness campaigns to demonstrate the benefits of training and, generally, of firms' adaptability, in conjunction with ways of restoring the competitive advantages essential to their future. The next essential step would then be to offer training geared to subcontractors* specific problems, tailored to the conditions in which such firms operate (distant learning and in-house training) and at an acceptable cost. Study on employment and qualification needs in the European clothing industry, sponsored by the Commission and conducted by the Institut Français de la Mode (IFM). 11 The Community and national training programmes offer opportunities to make progress in these fields. Nevertheless, proper synergies must be developed between the Commission, the national authorities, representatives of both sides of the industry and the firms themselves in order to take the action necessary. (d) Promotion The partners' thoughts on activities to promote subcontracting centre principally on events such as fairs. The feasibility study sponsored by the Commission, in collaboration with the two sides of the industry, stressed the importance of developing effective promotion instruments and also a wide variety of needs and opinions, particularly on the possible establishment of a European subcontracting fair for the textile and clothing industry. Firms' interest in this type of promotion depends, naturally, on the predominant thrust of their marketing strategies (national, Community or international market). Trade fairs specifically on subcontracting already exist in France, Italy and, more recently, Greece. A similar event has been announced in Spain. Clearly, it is up to the private sector to establish and develop events of this type. The Commission supports the coordinating efforts made by the industry in this field and, in particular, the establishment of a computerized network for collaboration between subcontracting fairs in Europe. The Commission is also considering the possibility of supporting the "inverted trade shows" between purchasers and subcontractors. Furthermore, promotion activities should include participation by these firms in fairs organised in the framework of different activities in the textile and clothing industry. Nevertheless, it must be borne in mind that participation in such fairs is limited in comparison with the number of subcontracting firms in operation. Further thought is therefore needed on other means of promoting subcontracting, which would be more permanent, open to a larger number of businesses and capable of harnessing the advantages of the European dimension. 12 5. CONCLUSIONS European subcontractors are at the heart of the textile and clothing industry. They face crucial challenges. Their growth and greater competitiveness will shape the future of the entire industry. Experience shows that firms' efforts to adapt allows subcontracting to remain competitively placed in the context of the European textile and clothing industry, particularly if they continue to develop means of offering greater quality, innovation, reliability and flexibility. Various programmes and multisectoral instruments under the national and Community policies could be used by subcontracting firms. It would be particularly important to secure greater participation by small firms in programmes and action to support the efforts to improve competitiveness associated with intangible investment (quality, innovation, training, etc. ). However, in view of certain characteristics of subcontracting (very diversified, fragmented activities and cultural and psychological barriers), further efforts must be made on awareness- raising and information by the trade associations and public authorities. subcontractors cooperation between International to harness potential complementary strengths on both the Community and export markets should be considered carefully by the industry and encouraged and supported by the public authorities. Partnership agreements between operators in the textile and clothing industry, particularly between manufacturers and subcontractors, should likewise be encouraged. Further efforts must be made to promote coordination of action and synergies at regional, national and European levels. The Commission can play a promoting and coordinating role. However, the effectiveness of this process will depend on the participation of subcontracting firms. Sometimes it has proved difficult to ensure that they are represented, because of the highly varied fragmented nature of their activities. Under these circumstances, the Commission proposes organizing a permanent Group on subcontracting in the textile and clothing industry, bringing together European and national representatives of the industry and of the trade unions. This Group will examine developments and priorities in the sector, impact on with particular attention competitiveness and employement, the impact and effectiveness of individual measures, programmes and multisectoral instruments, means of increasing the involvement of small firms in particular and the need for any supplementary support measures targeted on the specific requirements of subcontractors in the textile and clothing industry. the economic situation and the to 1 2> TABLE 1 Employment in subcontracting in Europe (1992) Belgium Germany Ireland Greece Italy Spain Netherlands France Portugal United Kingdom Denmark Total 46 000 188 000 7 000 14 000 304 000 139 000 18000 116000 98 000 141 000 8000 1 080 0002 35 000 230 000 15 000 60 000 370 000 180 000 15 000 180 000 130 000 230 000 10 000 1 455 0002 5000 40 000 5000 35 000 : 195 000. -90 000 6 000 90 000 60 000 120 000 3000 650 0002 No of jobs Textiles' Clothing of which subcontracting in the clothing sector Source: Mercer Management Consulting 1. 2. Knitwear and hosiery are included under clothing. Excluding undeclared or clandestine jobs. TABLE 2 Clandestine employment in the clothing industry1 (1992) Belgium Germany Ireland Greece Italy Spain Netherlands France Portugal No of jobs 7 000 6 000 2 000 12 000 39 000 20 000 10 000 20 000 20 000 Source: Mercer Management Consulting 1. Estimates by Mercer Management Consulting for which the European Commission is not responsible. United Kingdom 14 000 Denmark Total 150 000 TABLE 3 Breakdown of subcontracting jobs in Europe Total workforce: 650 000* Italy United Kingdom France Spain Portugal Germany Greece Netherlands Belgium Ireland Denmark 30% 18% 14% 14% 9% 6% 5% 1% 1% 1% 1% Source: Mercer Management Consulting * Excluding undeclared or clandestine workers TABLE 4 Breakdown by size of establishment and number of jobs in subcontracting* (1992) France Portugal Germany Noof establishments Noof employees 10 50 150 300 800 800 5 500 7 600 5 000 10 000 15 000 15 000 16 000 8 000 20 000 90 000 Noof establishments 5 35 70 210 320 3 500 4 140 500 + 200-500 100-200 50-100 20-50 10 20 0-10 Total Noof employees Noof establishments Noof employees 2 000 8 000 9 000 13 000 10 000 18 000 60 000 6 15 150 550 1 500 2 168 2000 2000 10 000 16 000 10 000 ] j 40 000 j Source: Mercer Management Consulting * Excluding undeclared or clandestine workers A' TABLE 5 Overriding factors in subcontracting in Europe' (percentage of jobs) Costs Response and flexibility Marginal work Service Expertise and know-how <> Portugal Greece Belgium Ireland Netherlands France Denmark Germany Spain 65% 15% - - 20% 60% 30% 5% - 5% 40% 30% 5% 15% 10% 40% 20% 5% 25% 10% 40% 40% - 20% ~ 30% 30% 10% 20% 10% - 80% - 20% - 5% 55% 5% 25% 10% 30% 40% 10% 10% 10% Italy 30% 30% 10% 10% 20% United Kingdom 20% 25% European average 32% 33% - 50 %2 5% 6% 16% 13% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 1. 2. Including clandestine work, which is divided between costs and response and flexibility A large proportion of jobs downstream from services have been included under costs. Source: Mercer Management Consulting TABLE 6 Primary problems mentioned by subcontractors Germany Belgium Denmark Spain France United Kingdom Greece Ireland Italy Netherlands Portugal Payment delays/risk Imprecise orders Development of customer portfolio Lack of protection in the event of any downturn in activity Lack of contract ^ Lack of aid for modernization Social legislation Language problems O ^9 O O e • 0 0 O O o o O o ^p O o e ^ © ^A ^p ^m ^ • ^ e A O e Q ^% • Problems frequently mentioned in the surveys 9 Source: Mercer Management Consulting questionnaire Financial Sheet Budgetary line B5-4110 Industrial Competition policy of the European Union 1. TITLE OF THE ACTION: PROMOTION OF THE COMPETITIVENESS OF THE SUBCONTRACTING TEXTILE AND CLOTHING INDUSTRY 2. 3. CONCERNED BUDGET LINE: B5-4110 LEGAL BASIS: Communication from the Commission to the Council on the implementation of a Community action programme in favour of the competitiveness of the European industry COM(95)319. 4. DESCRIPTION OF ACTION : 4. 1. General objective: of the action To support the efforts of improving the competitiveness of subcontracting in textile/clothing in areas of information, training, co-operation, promotion. The action is included in the framework of the action programme on the competitiveness of the European industry. 4. 2. Period covered by the action: 3 years, i. e. 1996/1997/1998. 5. CLASSIFICATION OF RECEIPTS AND EXPENDITURE 5. 1. DNO 5. 2. CD 5. 3. Types of receipts aimed at No purpose 6. TYPE OF RECEIPTS AND EXPENDITURE subsidy for co-financing together with other sources from the public or private sector: Co-financing of initiatives undertaken by the public sector as well as by professional associations. Others: The Commission has the intention to ask for the realisation of operational tools (e. g. technical file of production) that will be at the disposition of the economic operators. 1 <r 7. FINANCIAL IMPACT 7. 1. Mode of calculation for cost of the action for 1996 fiscal year (connection between individual costs and the total cost) 4 pilot project related to 4 areas quoted beneath 7. 2. Breaking down by elements of action Breaking down Budget 96 CE in MioEcus APB97 Technical file of fabrication Promotion of specialised fairs Diagnosis finishers Projects for management training TOTAL 0,075 0,075 0,15 Var. in% 0,13 0,12 0,25 66,7 ^3 8. 9. - DISPOSITIONS FOR ANTT-FRAUD FORESEEN (AND RESULTS OF THEIR IMPLEMENTATION) Contract ELEMENTS OF ANALYSIS COSTS-EFFICIENCY 9. 1. Specific quantitative objectives, population aimed at Specific objectives : the Commission envisage to finance 4 pilot projects in order to improve the attractiveness of intellectual investments in the small and medium size firms of the sector by the creation of a favourable environment for subcontracting in textile and clothing. These firms, isolated from their economic environment have neither the capacity, nor the time necessary to participate in multi sectoral actions. The measures aim the improvement of a) their relations with the finishers b) entrepreneurs' information of the solvency and the perspectives of their firms, c) the promotion and evaluation of the participation at fairs and at similar manifestations and d) the improvement of the level of management training of finishers through the logistics adapted to their level of knowledge and time. - Population aimed at : 9. 2. The subcontracting firms of the European union. Justification of the action - Necessity of Community budget intervention For reasons of cultural and economic compartmentalisation, the subcontracting firms have difficulties to start this kind of action and to utilise the Community means - Choice of intervention mode * advantages compared to alternative measures (comparative advantages) Decrease the costs of the starting up of the envisaged actions. * analysis of similar actions, possibly carried out at Community or national level It has been noted that a series of Community actions have not attracted the interest of small and medium sized firms, in particular not the subcontracting firms. In most of the cases these actions are expensive and are not adapted to the specific needs of their structure (size, lack of management structure, staff training etc. ). - Main uncertainties that could affect the specific results of the action. The non mobilisation of the subcontracting small and medium sized firms in order to use these tools. 9. 3. Follow up and assessment of the action - Indicators of performance * indicators of output (measure of activities displayed) * indicators of the impact according the objectives Increased use of the actions foreseen in the Community programmes, among the small and medium sized firms. 2 o -Modes and periodicity of the planned assessment Unit m/E/4 has the intention to assess the situation in 1998. —Valuation of obtained results The envisaged assessment here beneath leads to a written report and a re-assessment of the situation. 10. Administrative expenditures (part A of section III of General Budget). The effective mobilisation of necessary administrative resources will result from the annual decision of the Commission on the allocation of resources, including in particular supplementary staff and capital that have been granted by the budget authority. 10. 1 Impact on the number of jobs: NONE. Type of employment staff to allocate to the adminis tration of the action permanent employment temporary employment of which duration 3 years by appeal to supplement tary resources by use of existing resources within the DG yes 1 A 1 A IB Temporary civil servants or officials Other resources Total For the supplementary resources, indicate according to which pace their disposal would be necessary. 2 persons 1 person 3 years 3 years yes yes no no no no no 10. 2 Global financial impact of supplementary human resources :NONE. Sums Mode of calculation Civil servants Temporary officials Other resources Total 1 j The sums state the total cost of supplementary employment for the total duration the action if this one is at a determined duration, for 12 month if the duration is undetermined. 10. 3 Increase of other expenditures following the running of the action SUMS BUDGETARY LINE MODE OF CALCULATION A0-2500 32. 000 ECU* meeting expenses Two meetings a year of the Working group of 20, experts from professional associations from member states. (2X16. 000 ECU) * These sums correspond to expenditures for 12 month z-*\ ISSN 0254-1475 COM(96) 210 final DOCUMENTS EN 10 08 Catalogue number : CB-C0-96-223-EN-C ISBN 92-78-04022-3 Office for Official Publications of the European Communities L-2985 Luxembourg Z. ^

Commission' s Recommendation for the Broad Guidelines of the Economic Policies of the Member States and the Community

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 15. 05. 1996 COM(96)211 final Commission's Recommendation for the Broad Guidelines of the Economic Policies of the Member States and the Community drawn up in conformity with article 103 (2) of the Treaty establishing the European Community EUROPEAN COMMISSION Commission's Recommendation for the Broad Guidelines of the Economic Policies of the Member States and the Community drawn up in conformity with article 103 (2) of the Treaty establishing the European Community I. BROAD ECONOMIC POLICY GUIDELINES FOR THE COMMUNITY AND THE MEMBER STATES II. EXPLANATORY MEMORANDUM 11. 1. PROGRESS REPORT ON THE 1995 BROAD ECONOMIC POLICY GUIDELINES 11. 2. ECONOMIC OUTLOOK A&- - Il - Table of contents I. BROAD ECONOMIC POLICY GUIDELINES FOR THE COMMUNITY AND THE MEMBER STATES 1. 1. Main objectives and general guidelines 1 1 1. 2. Macroeconomic policy mix conducive to growth, employment and convergence 2 1. 3. Price and exchange rate stability 1. 4. Sound public finances 1. 5. Better functioning of product and service markets 1. 6. Fostering employment and labour market reforms II. EXPLANATORY MEMORANDUM 11. 1 Progress report on the implementation of the 1995 Broad Economic Policy Guidelines 11. 1. 1. Introduction 11. 1. 2. Price and exchange rate stability 11. 1. 3. Sound public finances 11. 1. 4. Competitiveness 11. 1. 5. Employment and the labour market 11. 2. Economic outlook 11. 2. 1. Growth prospects tl. 2. 2. Employment trends H. 2. 3. Convergence 3 5 7 8 10 10 10 13 16 21 23 26 26 28 29 4i> I. Broad Economic Policy Guidelines for the Community and the Member States 1. 1. Main objectives and general guidelines Contrary to expectations prevailing at the time of the adoption of the 1995 Broad Economic Policy Guidelines, the Community's economy experienced a marked slowdown in economic activity over the last twelve months and a renewed rise in unemployment. Whereas inflation declined broadly as anticipated and price convergence strengthened, progress towards sounder public finances proceeded at an insufficient pace and was made more difficult by the economic downturn. As a result, the Community did not succeed in making significant progress towards realising important economic objectives such as those stipulated in Article 2 of the Treaty, namely the promotion of sustainable, non-inflationary growth and a high level of employment. This failure to reduce the gap between aspirations for and the realisation of economic and social well-being is the major cause of the present less confident mood in the Community. Nonetheless, the Community enjoys quite favourable economic fundamentals. Inflation is historically low and contained, interest rates are falling, exchange rates are progressively being brought into line with underlying conditions, world trade is expanding at a healthy pace and investment profitability has been improving and, in overall terms, is noticeably higher than in the second half of the 1980s. However, rising long-term interest rates in 1994, the currency turmoil in the spring of 1995, persistent structural weaknesses and deteriorating confidence have prevented these fundamentals from asserting themselves during 1995 and early 1996. With the impact of the first two factors progressively fading out, allied with an end to destocking, expectations centre on a rebound in economic activity in the second half of this year. The pace of the expected recovery will mainly be determined by the extent to which the policy mix becomes more conducive to growth and succeeds in restoring confidence. The opportunities offered by the expected recovery should be fully seized upon to accomplish the necessary degree of convergence in order to ensure a successful transition to Economic and Monetary Union on 1 January 1999. Meeting these challenges will primarily require a macroeconomic policy strategy geared towards growth and stability. Appropriate structural initiatives in both the goods and A L services markets and in the area of labour market reform should accompany and reinforce a durable rebalancing of the macroeconomic policy-mix. In essence, therefore, the present Guidelines corroborate and augment the policy recommendations outlined in previous exercises. If this strategy does not yet seem to deliver satisfactory results in the Community at large, this is because it has been implemented with insufficient vigour and credibility. All actors are therefore encouraged to conduct their economic policies with a view to contributing to the achievement of the objectives of the Community (Article 102a of the Treaty), to demonstrate with action what has been promised since more than two years and to co-ordinate better their economic policies. The latter is not only a Treaty obligation (Article la) but also a practical obligation made all the more critical by the increased integration of the economies of the Member States. It should be underlined that the present guidelines constitute not only the logical dénouement of the analyses undertaken in the context of the Commission's 1996 Annual Economic Report but also take into account the opinions prepared by the European Parliament and the Economic and Social Committee on the latter report. 1. 2. Macroeconomic policy mix conducive to growth, employment and convergence Achieving the Community objectives in terms of growth, employment and convergence will continue to require the establishment of a stable, investment-enhancing, short and medium-term macroeconomic policy mix, characterised by: (i) a stability-oriented monetary policy; (ii) sustained efforts to consolidate the public finances in most Member States consistent with the timetable and the objectives of the Treaty; and (iii) nominal wage trends consistent with the price stability objective as well as real wage developments consistent with the conditions for strengthening employment-creating investment. To relaunch the recovery process and to strengthen medium-term growth and job-creation, a durable détente of the macroeconomic policy mix is essential. The more the stability task of monetary policy is facilitated by appropriate budgetary measures and wage developments, the more monetary conditions, including exchange rates and long-term interest rates, will be favourable to growth and employment. In such a context, monetary policy can contribute substantially, in accordance with the spirit of Article 105(1) of the -3 - Treaty, to the achievement of the Community's objectives as laid down in Article 2 of the Treaty. High and sustained economic growth over the medium term, driven by capacity-expanding investment is essential: (i) to reduce significantly and durably the Community's unacceptably high level of unemployment and to combat the spread of social exclusion; (ii) to make the necessary improvement in the competitiveness, and in particular the productivity, of the Community economy compatible with the safeguarding, in the context of an open market economy, of the basic social values which characterise the Union; and (iii) to ensure the lasting success of Economic and Monetary Union in which stability, competitiveness and employment must be assured concurrently. Responsibility for bringing about the desired détente of the macroeconomic policy mix is assumed by three different groups of actors (central banks, national governments and the social partners). Efficient co-ordination between actors and between countries is essential in order to ensure policy consistency. The Commission will intensify its dialogue with the social partners on macroeconomic issues and invite the EMI to participate in these meetings. The social dialogue itself should also be intensified, where possible and according to prevailing traditions, at the national level. To reinforce both the credibility of the macro-economic policy framework and the efficiency of the co-ordination process within the Community, Member States should present updated and politically strengthened convergence programmes. These programmes should clearly demonstrate that the planned policy measures to improve convergence go hand in hand with the promotion of growth and employment in the medium term. The Commission and the Council will assess their consistency at the Community level with a view to a tightening-up of the surveillance of economic policies under Article 103(3) of the Treaty. 1. 3. Price and exchange-rate stability The achievement and maintenance of a stable macroeconomic environment is a precondition for achieving sustained medium-term growth. For this purpose, and given that inflation in the Community on average is expected to fall to 2XA per cent this year, the Community should aim to keep it at this low level and to make further progress towards reaching 2 per cent. - 4- At present, ten of the Member States already respect the objective established in previous guidelines exercises of a rate of inflation1 of no more than 2 to 3 percent as a step towards price stability and in the United Kingdom inflation is close to 3 per cent. In the seven countries (Belgium, Germany, France, Luxembourg, the Netherlands, Austria and Finland) where inflation is below 2 per cent and in Denmark and Ireland, where it is just above 2 per cent, the anti-inflation credibility of the monetary policy framework is generally firmly established and the task is to consolidate this performance over the medium term. In Sweden, where inflation has recently come down significantly, and the United Kingdom, policies should aim at maintaining and, where appropriate, reinforcing anti-inflationary policies. Those countries where inflation is expected to be between 3 and 5 per cent in 1996 (Spain, Portugal and Italy), should endeavour to reduce inflation further to below 3 per cent by 1997. Spain and Portugal should persevere with their existing policies with a view to achieving the desired inflation range in the near future. In Italy, the conduct of fiscal policy will in essence dictate the pace of progress with regard to the establishment of exchange rate credibility and in anchoring low inflation expectations. Despite visible progress in Greece over recent years, it is evident that efforts must be continued and enhanced. In this regard, emphasis should be placed in particular on the maintenance of the corrective fiscal policy stance operated over the last two years as well as continuing with the prudent monetary and exchange rate policies evident since the early 1990s. As stressed in the previous Guidelines, all Member States must continue to treat their exchange-rate policies as a matter of common interest within the framework of the European Monetary System and, where appropriate, its exchange rate mechanism. The exchange rate movements in early 1995 pointed to the need for several Member States to put their overall policy framework on a more credible footing. Policies credibly and resolutely geared towards a rebalancing of the policy mix and achieving price stability, as recommended in the present Guidelines, will not only be conducive to an appropriate alignment of exchange rates within the Community but also at the world level. For countries which are not currently participating in the exchange rate mechanism, these policies would also contribute to creating the conditions, where appropriate, for such participation. As measured by the 12 month average of the annual change in the interim indices of consumer prices 1. 4. Sound public finances Some, but only limited, progress towards fiscal consolidation was made last year in the Community. Slippages relative to announced budgetary targets only partially reflected the adverse impact of the growth slowdown. Insufficient credibility of budgetary policies contributed importantly to the currency turbulence in the spring of 1995, sapped economic confidence and led to doubts in financial markets regarding the likelihood of a successful realisation of the Community's single currency goal. Meanwhile, a large number of countries have taken significant steps to consolidate their public finances in 1996 and, in many cases, also in 1997. Nevertheless, the still unsatisfactory state of the public finances in the Community should lead Member States to review and, where necessary, to strengthen their fiscal consolidation plans. Credible, pre- announced and socially balanced efforts to reduce high budgetary imbalances will allow for a revival in confidence, for the transformation of the expected recovery into a durable, job- creating, medium-term, growth process and for a sound transition to EMU on 1 January 1999. While the economic conditions are presently less favourable than anticipated at the time of the adoption of the 1995 Guidelines, a further delay in the inevitable consolidation process is not a justifiable option. Any postponement risks provoking an adverse financial market reaction and would aggravate the consolidation task in future years. In the present circumstances, a policy of allowing the automatic stabilisers to work is therefore largely inappropriate in the vast majority of Member States. Progress made in reducing structural budget deficits this year will of course persist and reinforce consolidation when cyclical conditions improve. Moreover, the adverse near-term growth impact of credible reductions in budget deficits is likely to be limited provided that the appropriate Hanking conditions, in both the monetary and structural area, are set in place. On the basis of the adjustment measures decided up until early-May 1996, the net borrowing of general government in the Community as a whole is likely to fall to just below VA per cent of GDP in 1997, which compares with a deficit of 5 per cent in 1995. Virtually all Member States should aim at lowering the budget deficit to, at most, 3 per cent of GDP in 1997, as a step towards the objective of close to balance in the medium term. In this respect, it is encouraging that several countries have recently announced and are implementing substantial measures to redress budgetary imbalances. As regards the individual Member States, 12 of the 14 Member States with convergence programmes (the exception being Luxembourg) are committed to reducing their deficits to 3 per cent of GDP or below by 1996 or 1997 at the latest. Two of these countries -6- (Denmark and Ireland) already respect the 3 per cent budget deficit reference value and they should consequently move towards the achievement of more ambitious medium-term targets. As regards the remaining ten countries, the additional effort needed to respect the 3 per cent reference value is undoubtedly feasible and should be pursued vigorously. Within this group, several countries (Germany, France, Austria, Finland, Sweden) have this year announced substantial measures or reinforcements with a view to achieving a reduction in their budget deficits to 3 per cent of GDP or less in 1997. These countries, as with the Netherlands, should resolutely implement their programmes of fiscal consolidation and, if necessary, strengthen them in order to ensure that their objectives are fully met. In Belgium both the impact of weaker-than-anticipated output growth on tax revenues and social transfers and the non-recurrent nature of some of the measures previously taken require supplementary efforts to respect the 3 per cent reference value in 1997. The Belgian government is firmly committed to specifying the necessary measures during the preparation of its 1997 budget in June-July of 1996. In the United Kingdom, substantial reductions in the budget deficit are expected to continue over the next two years mainly as a result of planned expenditure restraint. But to respect the convergence programme targets, further action is needed both to compensate for the fiscal slippage in 1995 and an expected less rapid budgetary improvement in the short run which is partly due to lower Finally, in Spain and Portugal, a determined growth than previously predicted. implementation of the budgetary component of the convergence programmes is required, with special attention to be given in Spain to a re-evaluation of the social security system. With regard to the two remaining Member States, Italy needs to introduce significant measures to achieve and improve upon the planned budgetary consolidation which remains the central policy priority in terms of restoring market confidence. Action should primarily focus on the fight against tax evasion, on greater budgetary discipline of local authorities and on improved efficiency of the public administration. As regards Greece, sustained efforts on a wide range of fronts, most notably a continuation of the existing privatisation initiatives, an expansion of the tax base and current expenditure reductions, are all required. Although the extent, timing and design of consolidation measures need to be tailored to country-specific conditions, some general principles have been identified in previous Guidelines exercises. These include: (i) restraining expenditure increases, as opposed to further increases in the overall tax burden, is widely regarded as a more credible and efficient option. Among the issues which should be addressed are the need to place pension provisions on a sustainable - 7- footing, to curb the rise in health care costs and to reduce distortionary and costly subsidies, (ii) re-directing, to the greatest extent possible, government spending towards productive activities such as investment in infrastructure, human capital and active labour market measures, while not endangering the necessary reduction in budget deficits; (iii) improving the efficiency of public services through inter alia more flexible management practices, better incentives for public employees, and in some cases increased use of privatisation and user-fees to the extent that Member States judge it compatible with their objectives; (iv) ensuring that a reduction in the overall tax burden, which is desirable in most Member States, is conditional upon initially putting the budget deficit on a firm downward path. In the interim, however, Member States stand to gain from a broadening of the tax base and a modification in tax structures so as to reduce the tax burden on labour. In particular, reductions in non-wage labour costs at the lower-end of the wage scale should be considered. 1. 5. Better functioning of product and service markets To foster growth, and thus employment, whilst maintaining low inflation, it is essential that action on the macro side is added to by measures aimed at ameliorating the functioning of product and service markets in general and at generating higher competition and a more flexible functioning of the price mechanism in particular. This will essentially require a further reinforcement of competition policies and a curbing of state aids in full respect of the objectives of Article 130a of the Treaty concerning economic and social cohesion. It is also crucial to fully exploit the internal market potential in an open and competitive environment through the transposition into national law and effective enforcement of single market legislation. In sectors where transposition is lagging behind, a particular effort is needed to present all necessary proposals to national parliaments before the end of 1996. To enhance the Community's competitiveness, measures aimed at promoting innovation, at favouring the emergence of the information society and at achieving a working environment more conducive to initiative and to the development of SMEs should be swiftly implemented. ' Of course, in these areas the individual Member States largely hold the key. However, the potency and effectiveness of national actions, which are essential, can be significantly added to via co-ordination and appropriate actions at the Community level. At this level, among the wide range of activities currently being pursued, specific attention should be given to a number of recent proposals of the Commission. Action to remove the remaining obstacles to the effective implementation of the TENs projects - 8- should be initiated. Further work is also needed to ease the impediments currently hampering the development of the SME sector. A more co-ordinated R & D effort is required both at the level of the Member States themselves and between the latter and specific EC-funded research programmes. The Commission will also pursue its policy to improve competition in EU-markets. Finally, to increase the job-creating potential of environmental policies, these policies should - to a greater extent than at present - rely on market-based instruments, including fiscal ones, both at the national and Community levels. 1. 6. Fostering employment and labour market reforms More than 2'/2 years after the publication of the Commission's While Paper on Growth, Competitiveness and Employment and with the Essen employment strategy set in place for some time, the Community finds itself with a dismal employment record over the period in question. Although the expected recovery will lead to renewed job creation and will reverse the current upward trend in unemployment, it is likely that more than 17 million people will still be unemployed in 1997 in the Community. Assuring a sustained and significant improvement in employment and unemployment requires not only durable, high, economic growth and efficient product and service markets, but also a broad range of labour market reforms. Eliminating existing rigidities as well as ensuring a more efficient operation of labour markets is at the heart of national efforts to ensure both a tension-free and stronger medium-term expansion and a more employment-creating growth pattern. Member States have been making efforts to reform their labour markets. They are encouraged to intensify their actions while ensuring both equity and efficiency in the social protection system. The implementation of policies aimed at improving the occupational and regional mobility of the labour force and at enhancing the efficiency of employment services should reduce bottlenecks which could lead to an early end to the growth process. Suitable policies should be conducted in order to adapt the whole educational system — including vocational training ~ both to the needs of markets and to the improvement of human capital, thereby fostering the growth potential of the economy. In this respect, priority should be given to enhancing the employability of young people, women and the unemployed, in particular low skilled, inexperienced labour, and to reducing skill mismatchs on the labour market by providing training better fitted to the changing needs of the labour market. A higher labour-content of growth should be favoured by the maintenance of appropriate average wage trends and in some cases by a larger wage differentiation according to qualifications, regions and, to some extent, sectors and firms. A reduction in the labour costs of low-productivity jobs, either through direct wage developments (e. g. by introducing entry wages in appropriate cases) or through a targeted reduction in non-wage labour costs, should increase the incentives to the employment of low-skilled labour. Such measures should be compatible with Community competition policy. Adaptations, at the firm level, of working-time and work organisation will also act in this direction. Finally, the promotion of local and regional initiatives in the field of new services containing a high labour-intensive dimension, such as those identified in the Communication from the Commission on a European strategy for encouraging local development and employment initiatives, should also be encouraged. All the above elements are featured in the Community's common employment strategy, initiated at the Essen European Council and refined subsequently at both the Cannes and Madrid Councils. The procedures adopted at these European Councils need to be made more efficient. In this respect, Member States' multi-annual employment programmes must be developed further, to make them more effective instruments in the area of labour market policy. Furthermore, the Commission's initiative to mobilise all actors around the top priority of fighting unemployment is aimed at making maximum use of the existing instruments at the level of the Union. •10- IL EXPLANATORY MEMORANDUM 11. 1 Progress report on the implementation of the 1995 Broad Economic Policy Guidelines II. 1. 1. Introduction In conformity with the Maastricht Treaty, Broad Economic Policy Guidelines were adopted in December 1993, July 1994 and again in July 1995. Following mandates from the European Council, the implementation of the 1993 Guidelines was assessed in December 1994. The execution of the 1994 Guidelines was examined on two separate occasions, once in December, and again in June 1995. This document reviews, following a request from the Cannes-European Council, the progress made in implementing the 1995 Broad Economic Policy Guidelines2 since their adoption by the EcoFin Council in July of last year. In an attempt both to streamline the surveillance procedures and to present the necessary information and analysis for the adoption of the new guidelines, an assessment of the past guidelines will henceforth form an integral part of the Commission's explanatory memorandum. Such an assessment constitutes a valid test of the degree of commitment of the individual Member States to shared policy responsibilities. Because of the medium-term orientation of economic policies, this report examines trends evident since the adoption of the first guidelines Recommendation in 1993. The policy issues raised in the 1995 Guidelines were addressed against a background where the economic recovery process, which commenced towards the second half of 1993, had apparently become firmly established. The pace and composition of the economic expansion in 1994 had given rise to optimism that growth rates of the order of 3 per cent could be realised in both 1995 and 1996. Since then, however, there has been a marked slowdown in growth. An extended analysis of the factors behind the slowdown was presented in the Commission's 1996 Annual Economic Report with only the key points of that analysis being summarised here. The quarterly rates of GDP growth of the order of VA to 4 percent (annualised rate) witnessed throughout most of 1994 decelerated to around 2 percent in the second and third quarters of 1995 culminating in virtual stagnation in the last quarter of last year. This lower than expected output performance was reflected in adverse labour market developments. The An initial review of the 1995 guidelines took place in December 1995. 11 - moderate rise in overall employment in the Community since the middle of 1994 came to a standstill towards the end of 1995. Particularly in the countries which were hardest hit by a worsening in their competitive position following the exchange rate crisis of spring 1995, employment trends turned markedly negative. But also in several other countries, the economic slowdown brought employment gains to a halt. In sum, employment is estimated to have grown by only Vi a per cent last year in the Community as a whole. Apart from the fading of the initial impulse from stockbuilding, the significant slowdown during 1995 essentially reflected two adverse developments in financial markets. Firstly, the marked rise in long-term interest rates on world and Community financial markets during 1994 appear to have exerted a stronger-than-expected restraining influence on companies' and households' spending decisions in 1995. The rise in yields varied considerably across EC Member States, reflecting inter alia their economic performance, policy stance and credibility. In particular, long-term interest rates rose significantly more in countries whose public finances were not yet perceived by the'markets as having been put on a clearly sustainable downward path. Table 1 Nominal interest rates (per cent) Dec. Dec. April Jan. April Dec. Dec. April Jan. April 1993 1994 1995 1996 1996 1993 1994 1995 1996 1996 Short-term1 Long-term2 B DK D GR E F IRL I NL A P FIN S UK 7. 2 7. 3 6. 1 5. 4 6. 2 5. 3 19. 9 17. 9 8. 9 6. 5 6. 3 8. 6 5. 6 5. 8 11. 7 5. 9 7. 7 5. 3 8. 2 5. 9 6. 3 9. 0 5. 4 4. 8 10. 5 5. 7 8. 2 6. 4 5. 3 6. 9 4. 6 17. 2 9. 4 7. 7 6. 8 10. 8 4. 7 4. 5 10. 8 6. 0 8. 9 6. 7 3. 6 4. 4 3. 5 14. 6 8. 9 4. 7 5. 4 9. 9 3. 3 3. 7 8. 5 4. 2 8. 4 6. 4 3. 3 4. 0 3. 3 14. 1 7. 8 3. 9 5. 1 9. 4 2. 9 3. 0 7. 6 3. 9 6. 6 6. 0 6. 6 6. 2 5. 7 8. 3 5. 8 8. 8 5. 7 9. 0 6. 3 8. 3 8. 8 7. 5 7. 9 8. 8 7. 1 11. 5 12. 1 8. 1 8. 6 11. 9 7. 6 7. 6 11. 5 10. 3 10. 7 8. 5 7. 8 8. 7 13. 0 7. 2 7. 4 12. 1 9. 4 11. 5 8. 4 6. 5 7. 0 5. 9 9. 5 6. 5 7. 2 10. 2 5. 9 6. 2 9. 4 7. 0 8. 3 7. 4 EUR 6. 9 6. 6 7. 2 5. 8 5. 3 (6. 8) (90) (8. 9) 7. 3 6. 7 7. 3 6. 4 9. 3 6. 5 7. 6 10. 1 6. 4 6. 5 9. 2 7. 5 8. 4 8. 1 7. 6 ' Three-month money market rate. 2 Yield on benchmark 10 year bonds, unless for EUR until April 1995 where data refer to yields on government bonds. Source: Commission's Spring 1996 forecasts. Secondly, and perhaps more importantly, the currency turmoil in the spring of 1995 had a significant impact on the economies of the appreciating as well as the depreciating countries. It was triggered by a marked weakening of the US-dollar in the wake of the Mexican Peso crisis. But the subsequent sizeable and abrupt movements between EC currencies seem to reflect the deeper, underlying, problem of the lack of credibility of -12 national budgetary consolidation plans and structural reforms and/or perceived risks of renewed inflationary tensions in a number of individual Member States. In Germany and the countries whose currencies are closely linked to the DM, the appreciation of the exchange rate implied a considerable tightening of overall monetary conditions, in spite of an easing in short-term interest rates, and a Table 2 worsening of competitiveness and industry profitability. This in turn had knock-on effects on investment and led to a marked deterioration in business confidence. On the other hand, in countries whose currencies depreciated significantly, the short-term boost to export market shares was to some extent offset by lower growth on export markets, and by rising interest rates and the erosion of consumer purchasing power from higher inflation on the home market. Furthermore, at the level of the Community as a whole, si/. eable and abrupt intra-Community exchange rate movements jeopardise the proper functioning of the internal market, leading inevitably to suboptimal resource allocation. N o m i n al e f f e c t i ve e x c h a n ge r a t es Index, August 1992 = 100 Dec. 1993 Dec. 1994 April 1995 Jan. 1996 April. 1996 99. 9 100. 5 100. 8 87. 5 78. 4 103. 3 102. 2 103. 1 82. 9 78. 2 107. 9 105. 9 107. 2 109. 3 106. 8 106. 7 82. 9 77. 1 80. 2 80. 6 100. 9 102. 4 106. 3 106. 7 92. 8 75. 1 94. 5 72. 7 93. 3 63. 2 94. 3 71. 8 104. 6 105. 4 104. 9 80. 9 80. 2 106. 0 94. 6 73. 9 102. 6 "Î04. 3 109. 0 107. 0 105. 8 101. 5 102. 8 107. 3 105. 5 104. 2 8/7 8?. 5 74 6 887 88. 3 915 77. 5 87. 1 90. 2 96. 8 73. 0 83. 2 80. 4 89. 6 95. 8 83. 2 82. 1 89. 3 91. 1 84. 8 82. 4 84. 6 83. 6 B DK D GR E F IRL 1 NL A P FIN S UK EUR 78. 2 80. 2 Source: Commission. The above developments point to the need for increased policy co-ordination at the international level. They also clearly highlight the adverse impact on growth, employment and confidence of insufficient actions in those policy areas, directly under Member States' own responsibility, needed to further rebalance the policy-mix as recommended in the 1995 Broad Economic Policy Guidelines. The progress review given below follows the four broad headings used in the Council Recommendation namely: price and exchange rate stability; sound public finances; competitiveness and employment and the labour market. //. 1. 2. Price and exchange rate stability - 1 3- stability ~ The 1995 Guidelines reaffirmed the objective, set in the 1993 and 1994 exercises, of a rate of inflation of no more than 2 to 3 percent, as a step towards price stability, adding that this target was likely to be achieved in the majority of Member States in 1996. Chart 1 10 INFLATION Interim indices of consumer prices* (March 1996 - average over 12 months) Range indicated jn the Guidelines o B DK D GR E F IRL I L NL A P FIN S UK " Interim Indices of Consumer Prices represent the first stage of a process towards Community harmonisation of national CPI calculations I t M t. M Indation has been on a steady downward Irend in (he Community since 1991 with the rate of increase of the deflator of private consumption falling from around 5/4 percent to a little over 3 percent last year, with most Member States. achieving the inflation objective already in 1995. As regards developments so far in 1996, consumer price inflation in the Community in March of this year, as measured by the 12 month average of the annual change in the interim indices of consumer prices (IICPs)3, stood at 2. 9 percent. In ten of the Member States, inflation was within the range indicated by the Guidelines and in the majority of them the rate of inflation even stood at below 2 per cent. In the United Kingdom, inflation was close to 3 per cent. Of the remaining Member States, Portugal has come relatively close to the range in recent months. In Spain and Italy, inflation is falling visibly following last year's blip which reflected the combined impact of their currency depreciations and increases in indirect taxes. Finally, further marked progress was achieved last year in Greece but the disinflation process seems to have lost momentum in recent months. However, this development is related to exogenous factors. This relatively encouraging inflation performance since the adoption of the Guidelines reflects the combined impact of several forces. It incorporates not only influences such as a persistent, and even widening, negative output gap and subdued raw material price developments but also structural improvements in such areas as central bank independence, wage behaviour and competition. The notable success in bringing inflation down in several Member States and appropriate actions by the monetary authorities in countries whose currencies depreciated, has led to an enhanced credibility of anti-inflationary policies. Wage developments were fairly moderate last year broadly moving in line with 3 These IICPs represent the first stage of a process towards harmonisation of CPI calculations The IICPs and the subsequent HICPs (Harmonised Indices of Consumer Prices), which will commence in January 1997, will be used in the context of the evaluation of compliance with the Maastricht inflation criterion -14 price increases in most Member States, with nominal compensation of employees per head accelerating mildly to 3lA percent in the Community as a whole. This figure compares with an annual average rate of increase of close to 6 percent over the period 1991-93. Real unit labour costs contributed to improved profitability by declining by about I pel cenl or more in many Member States and by 1. 3 per cent in the Community as whole, thereby respecting the Guidelines recommendation. Table 3 Inflation developments (% change pa. ) Private consumption deflator Nominal compensation of employees per head Real unit labour costs 1993 1994 1995 1993 1994 1995 1993 1994 1995 3. 1 0. 3 3. 9 13. 7 5. 5 2. 2 1. 7 5. 4 7. 0 2. 3 3. 4 7. 1 4. 2 5. 7 3. 5 4. 1 3. 0 1. 7 2. 7 10. 8 4. 9 1. 8 2. 7 4. 6 24 2. 4 3. 0 5. 2 1. 3 3. -1 2. 5 3. 2 1. 5 1. 8 2. 0 9. 3 4. 6 1. 6 2. 5 5. 7 20 1. 1 2. 2 4. 2 1. 1 27 2. 6 3. 0 3. 3 1. 6 4. 3 10. 1 6. 5 2. 2 4. 9 3. 7 5. 2 3. 1 4. 6 9. 1 1. 0 4. 4 4. 3 4. 0 4. 8 3. 6 3. 2 11. 9 3. 1 2. 1 3. 2 3. 0 3. 4 2. 3 3. 1 5. 2 3. 5 5. 4 3. 5 3. 2 1. 9 3. 3 3. 8 12. 5 2. 4 2. 4 3. 1 5. 2 3. 9 3. 0 3. 8 4. 6 5. 3 3. 0 3. 1 3. 5 -0. 4 -1. 5 -0. 1 -0. 4 -0. 5 0. 1 -1. 7 -24 -?{•> 06 03 0. 8 -6. 6 -1. 4 -2. 6 -1. 0 -0. 7 -3. 0 -2. 6 1. 3 "* -3. 4 -1. 9 -2. 0 -40 -0. 9 -2. 5 0. 6 -1. 4 -2. 9 -1. 1 -2. 4 - 1 5' 0. 5 -0. 7 1. 9 -2. 6 -0. 3 -2. 6 -3. 1 08 -0 1 -0. 3 -3. 5 -0. 4 -2. 4 -1. 0 -2. 5 -1. 3 B DK D GR E F IRL 1 L NL A P FIN S UK EUR Source: Commission's Spring 1996 forecasts. Nevertheless, in some countries wage trends were disappointing; not only in those where the disinflation process has not yet been completed but also for instance in Germany where wage settlements were relatively high compared with the stated inflation objective of the monetary authorities. Together with the appreciation of the DM, these wage agreements contributed to the erosion of competitiveness and profitability in the internationally exposed sectors. In Italy, wage costs accelerated in 1995 but the rate of increase remained slightly below inflation. Continued vigilance is necessary to avoid the development of a wage-price spiral which, if it were allowed to get hold, would raise the future costs of achieving price stability. In Finland, wages rose significantly in both nominal and real terms in 1995. However, due to the moderate two-year incomes policy agreement, the rise in wages and salaries will decelerate substantially in 1996 and 1997. Exchange rate stability — Following the exchange rate turmoil of Spring 1995, a broad degree of stability slowly began to re-emerge over the months to September 1995. Among the factors contributing to this process was a strengthening of the US dollar in the months -15- through to August, a monetary easing by the Bundesbank in March and reinforced efforts at budgetary consolidation in several Member States. This benign situation was to some extent interrupted in September with a renewal in exchange rate volatility amongst European currencies. The factors responsible for this re-emergence of tensions included a renewed weakening of the dollar and specific economic and political factors in a number of Community countries allied to a resumption of concerns with regard to the prospects for EMU. However, despite this interruption, calm has returned to the markets with the currency movements in the period 1994-95 having been largely reversed in the early months of this'year. The currencies of Greece, Italy and the United Kingdom have continued to be outside the ERM. Of the three new Member States, only Austria entered the ERM at the beginning of 1995. Developments in relation to short- and long-term interest rates in 1-995 in part reflected the tensions on the foreign exchange markets. The Bundesbank cut the discount rate on four occasions since March 1995 against the background of slow money supply growth and better inflation prospects in Germany, thereby providing most other Member States with the necessary room to follow suit. Having widened sharply amid the exchange rate tensions in the spring, short-term interest rate differentials with respect to corresponding rates in Germany narrowed in most Member States in the course of 1995. The pace of narrowing in differentials has varied among Member States and has in most cases reflected developments in their exchange rates against the DM. Significant differentials remain in several Member States where financial markets remain concerned at the credibility of anti- inflation and/or budgetary policies. At the long end of the market, the sustained decline in interest rates in 1995 (following the increase in 1994) was sharply reversed in the early months of this year. The recent rise across the Community largely reflects spillover effects from developments in the United States, where evidence of buoyancy in the economy has been seen as heightening the possibility of a monetary tightening by the Federal Reserve. As with short-term interest rates, the trend in differentials between Germany and other Member States has been generally downward, although substantial differentials persist in some Member States where exchange rate credibility remains closely tied to inflation and/or budgetary developments. II. 1. 3. Sound public finances -16- Many countries came out of recession in 1993 with serious budgetary imbalances. The need for urgent action in this area was recognised in the earlier Guidelines exercises. Unfortunately, many Member States, despite the relatively good economic conditions prevailing in 1994 and early 1995, had not made substantial inroads into their budgetary problems at the time of last year's Guidelines exercise. The public finance objectives of the 1995 Guidelines were that in the short run Member States should not only rely on the positive benefits which were expected from the workings of the automatic stabilisers to improve their budgetary positions but that they must also take full advantage of all the growth opportunities to step up fiscal consolidation by reducing structural deficits. Member States were urged to reduce their budget deficits to below 3 percent of GDP as soon as possible. Any additional room for manoeuvre provided by stronger than expected growth or a more favourable interest rate evolution was recommended to be used to accelerate the process of budgetary consolidation. Developments in 1995 ~ In overall terms, the budgetary position of a large majority of the Member States registered some progress in 1995. However, the degree of improvement was insufficient given both the extent of the fiscal difficulties to be surmounted and the official commitments to do more. The sharp cyclical slowdown experienced in some Member States over the course of the year, and especially in the last quarter of 1995, obviously made progress towards sounder public finances more difficult. However, fiscal slippages in several countries were a clear factor behind the overall insufficient improvement in the underlying budgetary positions, as measured by the Commission services estimates of the cyclically-adjusted budget balances. In fact, general government net borrowing in the Community in 1995 came down by only half of a percentage point to a still unacceptably high level of 5 percent of GDP, which is substantially higher than the figure anticipated at the time of the drafting of the Guidelines in May of last year. Of the budgetary adjustment which took place, roughly half of the improvement was due to non-cyclical factors; the estimated reduction in the cyclically- adjusted budget deficit (lA of a percentage point ) was smaller than expected earlier. At the level of actual budget deficits, ten of the fifteen Member States have registered some progress in 1995, varying from gains of lA a percentage point m the case of Portugal to nearly 3 percentage points in Greece. Nine of these ten countries also registered an improvement in their structural deficits. The exception was Finland where the widening in the adjusted deficit was mainly explained by the timing of tax repayments. Four countries, namely Denmark, Greece, Italy and Sweden, achieved improvements in their cyclically- •17- adjusted deficits of between 1 and 3 percentage points. All the latter four Member States, with the exception of Denmark, still have deficits well above the 3 per cent of GDP reference value at the start of 1996. Belgium, Spain, France and the United Kingdom achieved discretionary reductions of the order of a XA to VA of a percentage point. Table 4 B DK D GR E F IRL 1 L NL A P FIN S UK EUR Actual and cyclically-adjusted general government budget balances (per cent of GDP) Actual budget balance (level) Change in actual budget balance* Change in cyclically- adjusted balance' 1993 1994 1995 1993 1994 1995 1993 1994 1995 -6. 7 -3. 9 -3. 5 -14. 2 -7. 5 -6. 1 -2. 4 -9. 6 1. 8 -3. 2 -4. 3 -7. 1 80 -123 -7. 8 -6. 2 -5. 3 -3. 5 -2. 5 -12. 1 -6. 9(2) -5. 8 -2. 0 -9. 0 2. 2 -3. 2 -4. 5 -5. 8 -6. 3 108 6. 8 -5. 5 -4. 5 -1. 4 -3. 5 -9. 2 ^. 2(2) -5. 0 -2. 4 -7. 1 0. 3 -3. 4 -6. 2 -5. 4 -5. 6 -8. 1 6. 0 -5. 0 0. 4 -1. 0 -0. 7 -1. 9 -3. 3 -2. 0 0. 1 0. 0 1. 0 0. 7 -2. 2 -3. 7 -2. 2 -4. 5 -1. 5 -1. 1 1. 4 0. 4 1. 0 2. 1 0. 6 0. 3 0. 4 0. 6 0. 4 -0. 0 -0. 2 1. 3 17 1b 1. 0 0. 8 0. 8 2. 1 -1. 0 2. 9 0. 7 0. 8 -0. 4 1. 9 -1. 9 -0. 2 -1. 7 0. 4 0. 7 2. 7 0. 8 0. 5 2. 6 -0. 7 1. 0 -0. 9 -1. 1 -0. 4 1. 3 1. 4 2. 3 -1. 4 -2. 2 0. 7 -1. 7 -1. 5 0. 2 1. 2 -1. 3 0. 8 2. 2 0. 7 -0. 4 -0. 5 0. 4 0. 1 -0. 3 -0. 5 1. 8 0 3 03 0 1 0. 3 0. 5 1. 6 -0. 9 2. 6 0. 4 0. 5 -2. 0 1. 3 -2. 0 -0. 2 -1. 6 0. 2 12 1. 1 0. 6 0. 3 1) Commission services estimates. A "+" indicates an improvement; a "-" indicates a deterioration in the budget balance. 2) This time series includes social security contributions still on a cash basis. Preliminary accounting on an accruals basis by national sources shows figures of -6. 2 per cent of GDP for 1994 and -5. 8 per cent of GDP for 1995. The time series will be updated on an accruals basis once certain issues concerning the correct application of statistical definitions have been clarified. Source: Commission's Spring 1996 forecasts. The five remaining countries experienced a worsening in both their actual and cyclically- adjusted budget deficits. As regards cyclically-adjusted budget balances, deteriorations of around a VA of a percentage point were registered in the Netherlands, VA of a percentage point in Germany and between VA and 2/4 percentage points in Ireland, Luxembourg and Austria. In the case of Germany, the overrun was partly due to unexpected revenue weakness. In Ireland, against a background of strong growth, policy appears to have been pro-cyclical although special factors, such as the social security settlement were also at play. Despite some slippage, Luxembourg, as with Ireland, still respects the Maastricht budgetary reference value. Finally, in Austria although the new government is tackling the problem, it is clear that there was a serious budgetary deterioration in 1995. Efforts to reverse the structural deterioration which occurred last year are appropriate in all these five Member States but are especially necessary in those countries with cyclically-adjusted deficits in excess of 3 per cent of GDP. -18- On a more positive note, the bulk of the fiscal adjustmeni which took place over (he hist two years was centred on the spending side, with the share of government expenditure in GDP falling by about 1% percentage points in the Community as a whole, though remaining above 50 per cent of GDP. A drop in the government spending ratio was a common trend amongst a large majority of Member States. Furthermore, in all countries, with the exception of Portugal, there was a decline in non-interest expenditure. Table 5 1 I B DK D GR E F IRL 1 L NL A P FIN S UK Receipts, expenditures and interest payments of general government (in % of GDP) Receipts Expenditure (of which) Interest payments 1993 1994 1995 1993 1994 1995 1993 1994 1995 49. 6 58. 3 4 65 34. 4 42. 0 49. 3 38. 9 47. 4 45. 0 53. 1 49. 4 36. 3 53. 8 60. 3 35. 9 50. 4 5 88 46. 8 35. 8 41. 0 48. 9 39. 5 45. 2 44. 6 50. 8 48. 1 38. 0 54. 6 59. 6 36. 4 4 99 5 83 4 63 36. 8 39. 9 49. 3 37. 3 44. 8 41. 6 48. 6 46. 9 39. 4 52. 8 59. 5 37. 6 56. 3 62. 2 50. 0 48. 5 49. 5 55. 5 41. 3 57. 0 43. 2 56. 3 53. 7 43. 4 61. 9 72. 6 43. 7 52. 5 5 56 62 3 4 93 48. 0 47. 9 54. 7 41. 6 54. 2 42. 4 54 1 52. 6 43. 8 60. 9 70. 4 43. 2 51. 4 5 44 59. 7 49. 8 46. 0 46. 0 54. 3 39. 7 51. 8 41. 3 51. 9 53. 1 44. 8 58. 4 67. 6 43. 6 50. 8 10. 5 78 33 12. 8 5. 2 3. 7 6. 7 12. 1 0. 4 6. 4 4. 3 6. 7 4. 6 6. 2 2. 9 5. 5 10? 7 1 34 142 5 1 3. 8 5. 9 10. 7 0. 4 6 1 4 1 5. 8 5. 1 68 3. 3 5. 3 9? 67 3. 8 12. 9 5. 4 3. 7 5. 2 11. 2 0. 3 5. 8 4. 3 5. 8 5. 4 7. 1 3. 7 5. 4 EUR 46. 2 45. 9 45. 7 Source: Commission's Spring 1996 forecasts. As regards government receipts, a moderate decline was noticeable in the Community as a whole and in several Member States. A rather marked drop in the proportion of government receipts to GDP occurred in the Netherlands, Austria and Luxembourg over the last two years. Conversely, the tax burden showed a rising tendency in Greece, France, Portugal and the United Kingdom. The insufficient degree of progress in Table 6 reducing the Community's government budget deficits was reilccted in the average debt/GDP ratio figures for the Community which increased in 1995 by three percentage points to over 71 percent. While the inclusion in the German figure of the unification-related debt take-over by the Gerrrian federal government, essentially the Treuhand-anstalt, was clearly an important factor in explaining the increase for the Community as a whole, it should be noted that the debt-to- GDP ratio continued to worsen in a total o( 9 Member States in 1995. In Luxembourg and Finland the debt ratio B DK D GR E F IRL 1 L NIL A P FIN S UK Gross government debt (pot cent of GOP) 1993 Level Level 1994 1995 Annual Change Level Annual Change 137. 9 80. 1 48. 2 111. 8 60. 5 45. 4 97. 5 119. 4 62 81. 1 6 28 6 72 57. 3 76. 0 48. 5 136. 0 76. 0 50. 4 110. 4 63. 1 48. 3 91. 1 125. 6 5. 9 77. 6 65. 0 70. 0 59. 5 79. 3 50. 2 -1. 9 -4. 1 +2. 2 -1. 4 +2. 6 + 29 -6. 4 +6. 2 -0. 3 -3. 5 + 22 + 28 +2. 2 +3. 3 + 17 1337 71. 9 58. 1 111. 5 6 57 5 24 85. 5 1248 59 7 90 6 94 71 6 ' 59. 6 7 99 5 40 -2. 3 -4. 1 +7. 7 + 1. 1 + 26 +4. 1 -5. 6 - 08 0. 0 + 1 4 +4. 4 + 1 6 0. 0 + 06 +3. 8 EUR 66. 2 6 8 2' +2. 0 71 2 +3. 0 Source: Commission's Spring 1996 forecasts. did not change, whereas Denmark, Belgium, Ireland and Italy managed to reduce their debt ratios by between almost 1 and 6 percentage points. Finally, it should be stressed that rising debt ratios in a majority of Member States at a time of overall budgetary improvement demonstrates the need for an intensification of fiscal retrenchment efforts. In overall terms therefore, the Table 7 contribution of discretionary fiscal consolidation has been less than had been hoped for in 1995. This failure to fully realise earlier expectations is disappointing given that the importance of making steady progress towards meeting the fiscal convergence criteria has been publicly acknowledged by Member States in their national convergence programmes. It is also disappoint ing given the extent of the fiscal divergence which continues to persist, as reflected in the LcoFin Council decisions with regard to the existence of Treaty-defined Government deficits in 1995: Convergence programme (CP) projections and latest Commission (COM) forecasts Date CP(a) COM 6/92 (6/94) 11/94 11/93 6/94 7/94 3. 8(4. 3) 3. 0 2 to 3 107 5. 9 11/93 (7/95) 4. 2/4. 1 (5. 0) 6/94 9/92 (6/95) 10/94 5/95 11/93 (10/94) 9/95 6/95 3/95 <3 4. 7(7. 5) 3. 7 4% 3 V. (b) 5. 8) 5. 3 9. 0 3 V (C) 45 1. 4 3. 5 9. 2 6. 1 5. 0 2. 4 7. 2 34 6. 2 5. 4 5. 6 8. 1 6. 0 B DK D GR E F IRL I NL A P FIN S UK a) Figures in brackets are revised official targets, not submitted as convergence programmes at Community level b) Average for 1995-97 c) Financial year 1995/96 Source Commission's Spring 1996 forecasts -20- excessive deficits. Budgetary outlook — The crucial task facing a large number of countries is to continue to make progress towards putting their public finance positions onto a firmer footing. With regard to actual budget deficits, the vast majority of countries are forecast to reduce their deficits in 1996. Nevertheless, on the basis of concrete measures announced so far and the more prolonged than expected pause in the recovery, progress would appear insufficient when compared with the targets set both in the Guidelines and in national convergence programmes. Only 3 Member States (Denmark, Ireland and Luxembourg) are now likely to have deficits below the 3 percent reference value this year compared with an expectation of 7 countries at the time of the adoption of the 1995 Guidelines. Since the adoption of the Guidelines in July 1995, almost all the Member States have announced new budget proposals for 1996 and, in some cases, for 1997. These proposals all aim for further reductions in government deficits this year and next, to 3 per cent of GDP or below by 1997 at the latest in all countries except Greece and Italy. Particularly sizeable packages of adjustment measures were announced by the governments in Belgium in September 1995 (tax increases and expenditure cuts), Finland in September 1995 (expenditure cuts in 1996 and 1997, Italy in September 1995 (measures to fight tax evasion, increases in social security contributions and cuts in transfers to non-government institutions), France in August 1995 (fiscal measures to reduce the central government deficit), in November 1995 (fundamental reform of the social security system) and in May 1996 (expenditure cuts and restoration of social security account), by the newly formed government in Austria in April 1996 (expenditure cuts, tax increases and reform measures aimed at the pension system) and by the German government also in April 1996 (expenditure cuts). Slower economic growth, on average in 1996, than expected when most of these budget plans were drawn up is making deficit reduction more difficult this year. Several Member States have already announced additional measures (e. g. freezes on certain expenditure items in Germany and France ) to offset some of the slippage caused by the impact of the weaker growth on tax revenues and social transfers, and others are likely to do so in the coming months. Provided that all the measures which have been decided are fully implemented by the respective Member States then a substantial correction of underlying budgetary positions is in prospect. However, it must be reiterated that, while these measures are clearly welcome, -21 - in a number of cases they are still insufficient in relation to both the size of the problem to be addressed and the targets set in national convergence programmes. 11. 1. 4. Competitiveness The 1995 Guidelines reiterated the importance of implementing reforms aimed at strengthening the underlying growth forces and enhancing the dynamism and competitiveness of the Community economies. It is clear that'the major onus is on the individual Member States to provide the conditions in which a truly competitive environment can be established and sustained. This can only be done by correctly focusing economic, fiscal and social policies in order to ensure that they continue to remain consistent with the Member States objectives in this area. These national efforts need however to be complemented and reinforced by action at the Community level. At the Community level, the importance of fully exploiting the opportunities provided by the internal market needs to be continuously stressed. As of April 1996, the global rate of transposition of internal market Directives was 89. 7 percent. Denmark has the highest rate of transposition (96. 6 %) followed by the Netherlands, the United Kingdom, Luxembourg and Spain. The sectors which continue to present the most problems in terms of the implementation of White Paper directives are public procurement, insurance and intellectual and industrial property. Action on the competitiveness front is being intensified in the context of the Commission's recent proposal for a Confidence Pact for Employment to reinforce efforts in the particular areas of research and development, Trans-European networks and in encouraging dynamic small and medium-sized enterprises (SMEs). This initiative by the Commission reinforces the actions already taken in the Community in a large number of areas dealing with competitiveness. The Community has continued its efforts over the last number of years to complement the single market initiative by setting in place an effective competition framework to ensure the successful operation and efficiency of Member State enterprises. The following are the most important developments: • The Commission presented important initiatives in the area of telecommunications last year with the objective to ensure a greater liberalisation of the regulatory framework. Such liberalisation is crucial to the Community's ambitions in relation to the Information Society. The implementation of full competition in telecommunications -22 markets affects the competitiveness of the whole Community economy. The Commission also presented initiatives concerning the Community's postal services. Competition policy has also been taking on growing importance in boosting the competitiveness of the Community's industries. In 1995, the Commission has reviewed the Community frameworks for aids to SMEs, to shipbuilding and to R&D. Action has been undertaken in the area of legislative and administrative simplification The Competitiveness Advisory Group, consisting of high level experts and industrialists, presided over by Mr Ciampi, was nominated by the Commission and presented a report to the Madrid European Council in December 1995. The Madrid European Council took note of a Commission report on the key role that could be played by SMEs as a potentially important sector for generating growth and employment opportunities. The Commission's report, however, pointed out that these SMEs needed support through specific measures and a business-environment favourable for the development of SMEs. The Council therefore asked the Commission to make proposals to realise SMEs potential, to improve their competitive position and to encourage them in their business activities both in Europe and internationally. The Commission, in response, approved on 20 March 1996 a proposal for a new Multi- annual Programme for SMEs for 1997-20004 which has been submitted to the Council. Some progress was also achieved last year with regard to Trans-European networks (TENs) in the transport, telecommunications and energy sectors. The Madrid European Council urged Member States to give top priority to the effective implementation of TEN projects and asked the EcoFin Council to take the necessary decisions to complement the financial resources currently earmarked for these networks. Community actions in the context of the Structural and Cohesion Funds, aimed at bolstering the physical and human capital of the weaker Community regions, continue to make an important contribution to the balanced development of all areas. Finally, environmental protection initiatives are being actively pursued by the Community internally and at the level of international fora. To increase the job-creating potential of environmental policies, the Madrid European Council emphasised that such policies should be based upon market instruments, including fiscal instruments. Document COM(96) 98 final of 20 March 1996. //. 1. 5. Employment and the labour market -23 The 1995 Guidelines emphasised the crucial role to be played by more active and more efficient labour market policies in achieving both a high rale of economic growth over many years and in increasing the capacity of that growth to generate jobs. As discussed in section 1, growth trends in 1995 were generally disappointing, with the pace of output expansion being insufficiently high to generate a substantial increase in employment. But provided that resolute progress will be made in further rebalancing the macro-economic policy framework, the Community could progressively move towards a sustained, employment-creating, growth path. One vital element of the Community's strategy for job creation is the importance of increasing the number of jobs associated with a given level of output ("the employment content of growth"). It should be noted, however, that it is difficult to assess whether underlying progress is being made in this area on the basis of observations for only a short period of lime. This is because measured labour productivity varies considerably over the economic cycle, reflecting the lagged response of employment to changes in economic growth. Nevertheless, the available evidence seems to indicate that there has been some improvement in the employment content of growth in a few countries, but no significant change in the majority of countries or for the Community average. Table 8 Growth, employment and productivity Real GDP growth (% pa. ) Employment (% p. a. ) Labour productivity (% pa. ) 74-85 86-90 91-95 Memo f995 74-85 86-90 91-95 Memo 1995 74-85 86-90 91-95 Memo 1995 1. 8 2. 0 1. 7 25 1. 9 2. 2 3. 8 2. 8 1. 8 1. 9 2. 2 2. 2 2. 7 1. 8 1. 4 2. 0 2. 3 3. 6 3. 0 1. 4 3. 4 19 4. 5 3. 2 4. 6 3. 0 4. 6 3. 1 3. 0 5. 1 3. 4 2. 3 3. 3 33 2. 8 4. 5 1. 3 2. 0 18 13 1. 4 1. 1 4. 8 1. 1 2. 4 1. 9 2. 0 1. 1 -0. 8 0. 1 1. 2 1. 3 2. 2 1. 3 1. 9 2. 6 1. 9 20 3. 0 2. 2 8. 6 3. 0 3. 2 2. 4 1. 8 2. 5 4. 2 3. 0 2. 4 2. 5 2. 0 0. 9 -0. 3 0. 5 -0. 2 10 -1. 4 0. 1 0. 1 0. 9 0. 5 -0. 1 0. 7 -0. 4 0. 3 0. 8 -0. 2 0. 0 18 0. 7 1. 1 0. 3 1. 5 0. 9 3. 3 0. 8 1. 0 0. 6 3. 1 1. 9 0. 7 1. 1 0. 2 1. 0 1. 8 13 2. 1 1. 5 -0. 4 -0. 4 0. 0 0. 9 -0. 4 -0. 1 1. 5 -1. 0 2. 7 0. 7 1. 1 -0. 4 -3. 6 -2. 2 -1. 2 -0. 5 1. 0 08 0. 4 1. 5 -0. 3 0. 9 2. 7 1. 2 3. 8 -0. 4 2. 5 1. 4 -0. 1 -0. 6 2. 2 1. 6 0. 6 0. 6 15 0. 3 2. 1 1. 5 19 16 3. 4 2. 1 3. 7 1. 8 1. 2 2. 0 1. 6 26 2. 4 1. 0 1. 6 20 0. 5 3. 0 1. 9 1. 2 19 1 0 1. 2 2. 4 3. 6 2. 4 1. 5 1. 2 2. 2 3. 9 3. 2 1. 2 1. 5 1. 9 0. 6 3. 0 1. 7 2. 4 26 0. 7 1. 8 12 3. 3 2. 3 -0. 3 1. 2 0. 9 1. 5 29 2. 3 2. 4 20 1. 1 0. 5 1. 6 1. 1 22 1 1 03 1. 0 4. 6 3. 4 0. 7 1. 0 1. 9 3. 1 2. 0 1. 4 1. 8 1. 9 06 0. 6 B DK D GR E F IRL NL A P FIN S UK EUR USA JAP Source: Commission's Spring 1996 forecasts. -24- In Spain, labour market reforms introduced in the most recent years seem to have contributed to a very strong employment growth in 1995 (2. 7 per cent against a background of 3 per cent GDP growth) and this is expected to continue in 1996. Also in France, the Netherlands and to a lesser extent Belgium, recent measures seem to have contributed to a somewhat more favourable employment response to growth in 1995 than would have been expected on the basis of historical trends. For Denmark the favourable employment response may be partially due to the active labour market policies pursued. Essentially reflecting buoyant economic activity, Ireland experienced very strong employment growth in 1995 for the second consecutive year. In contrast, the employment performance in Germany has been hampered by a continuing shake-out in the country's large manufacturing industries under the pressure of a deterioration in international cost competitiveness, while significant job losses have been experienced in Italy in those service sectors increasingly exposed to competitive pressures and hurt by several years of very weak domestic consumption growth. The Guidelines also underlined the importance of both the 5 priority areas identified by the Essen European Council and of the latter's call to Member States to implement this strategy by preparing multi-annual programmes spelling out their policy intentions in this area. By providing a coherent presentation of the existing or planned national measures for the implementation of the strategy, these programmes should become an important instrument for monitoring and assessing progress in implementing labour market policies. To ensure their effectiveness, they should be better coordinated with the convergence programmes, indicating that the achievement of convergence, growth and employment is inextricably linked. Some changes in their present content and format will also be required, including national targets for specific measures and greater emphasis on medium and longer-term issues. The first assessment of the progress achieved in implementing the Community's employment strategy was presented in a joint report from the EcoFin and Social Affairs Councils and the Commission to the Madrid European Council. The report highlighted and commended the major efforts deployed by the Member States since Essen, in particular the acceptance by countries of the necessity of adopting an integrated approach based on the link between macroeconomic and structural employment policies. However, it also stressed that if a decisive improvement in the Community's employment situation was to be realised then an additional impetus would have to be given to labour market reforms in the Member States. A range of measures were singled out in the report as being essential to the strengthening of national initiatives in relation to employment reforms. On the basis of the recommendations contained in the joint report, the Madrid European Council urged Member States to prioritise a number of areas of action in their multi-annual employment -25- programmes. On the basis of the programmes and a set of indicators, the joint effort to improve both the employment situation and the effectiveness of measures will be assessed at the Community level. Finally, since Madrid the debate on labour market reform has centred on, and is encapsulated in, the proposal of the Commission President for a Confidence Pact for Employment. The Pact is intended to give substance to the Madrid Council's affirmation that the objective of job creation remains the key policy priority for the European Union over the coming years. The macroeconomic and structural policy framework of the pact will be based on the strategy developed in the present and previous Guidelines with the relevant Community instruments also being used to engender dynamism, growth and employment. The Pact aims at arriving at concrete policy commitments involving the Social Partners with measures specifically related to employment creation. 26- 11. 2. Economie outlook The worsening economic climate in late 1995 and early 1996 has complicated the task of making progress towards the objectives of reducing unemployment and restoring sound public finances in the Community. However, a recovery in economic activity is expected to take place in the second half of 1996 and in 1997. This will lead to renewed job creation and reverse the current upward trend in unemployment. But in order to achieve a significant and durable reduction of unemployment, it is necessary to maintain strong growth of economic activity over a sustained period and to make further progress in the area of structural reform. 11. 2. 1. Growth prospects The recent economic slowdown, job insecurity and uncertain income prospects have sapped confidence among consumers. Business confidence has suffered from large unwarranted shifts in exchange rates, from the absence of clear signs of a pick-up in final demand and from persistent structural weaknesses. Nevertheless, signs are emerging that the decline in confidence has come to a halt and demand may be picking up again in a number of countries. Consequently, economic activity in the Community is expected to bottom out in the course of the first half of this year. On the basis of sound supply-side fundamentals (in Table 9 particular low inflation and relatively strong average Real G DP investment profitability) and more favourable monetary and financial conditions, the Community economy is expected to see a recovery in the second half of 1996, reinforced by the end of the ongoing stock adjustment. The expansion is expected to gradually strengthen in 1997. In the Commission services' latest Economic Forecasts, economic growth in the Community as a whole is expected to be around 1 lA per cent this year followed by growth of around 2'/2 per cent in 1997. The upswing is expected to be driven by relatively strong extra- B DK D GR E F IRL 1 L NL A P FIN S UK (Real annual percentage change) 1 9 93 1994 1995 1996 1997 -1. 6 1. 5 -1. 2 -1. 0 -1. 2 -1. 5 3. 1 -1. 2 0. 0 0. 2 0. 4 -1. 2 -1. 2 -2. 2 2. 2 2. 2 4. 4 2. 9 - 1. 5 2. 1 2. 7 6. 7 2. 1 3. 3 2. 7 3. 0 1. 0 4. 0 2. 6 3. 8 1. 9 2. 6 1. 9 2. 0 3. 0 2. 2 8. 6 3. 0 3. 2 2. 4 1. 8 2. 5 4. 2 3. 0 2. 4 1. 1 1. 3 0. 5 2. 0 2. 0 1. 0 5. 6 1. 8 2. 6 1. 8 0. 7 2. 3 3. 0 1. 2 2. 4 2. 3 2. 7 1. 8 2. 5 2. 9 2. 1 4. 9 2. 7 3. 0 2. 5 1. 1 2. 8 3. 6 2. 0 3. 0 2. 4 Community exports, a renewed strengthening of EUR 0. 6 2. 8 2. 5 1. 5 capital formation and continued moderate but Source: Commission's Spring 1996 Forecasts. gradually accelerating private consumption. - 27 - In Germany, France and a number of neighbouring countries, the adverse effects of the strong currency appreciation in spring 1995 will gradually subside, partly due to a significant reversal of the initial currency overshooting. Aided furthermore by a considerable reduction in interest rates and an expected restoration of confidence, activity is expected to pick up during 1996, strengthening into 1997. In Italy, Sweden, Spain and other countries, a continued rebalancing of the macroeconomic policy-mix, which has helped their currencies regain, to varying degrees, lost ground, is likely to help lower short- and long-term interest rates and spur confidence, thereby supporting a recovery in domestic demand no later than the second half of 1996 while reducing the reliance on exports for growth. In the United Kingdom, the recent easing of monetary conditions, improvements in the housing market and a favourable competitive position should sustain continued, non- inflationary growth. Nevertheless, the economic outlook remains subject to substantial uncertainties. In countries whose currencies appreciated in 1995 the effects of competitiveness losses have not yet been fully overcome, and in most countries whose currencies depreciated in 1994- 95 interest rate differentials relative to the DM remain relatively high. In the current apprehensive climate and given high unemployment, the positive response of business and consumer spending to improved monetary and financial conditions and to the reduction in fiscal imbalances could be weaker or take place later than normal. Furthermore, if progress towards sounder public finances and structural reform were to be hampered by rising social and political resistance, this would undermine the credibility of stated economic policy objectives and might add to doubts amongst some observers as to whether a sufficient number of Member States would be ready to participate in EMU at the starting date of 1 January 1999. Such developments would likely lead to an increase in long-term interest rates and could create a risk of tensions in foreign exchange markets. This would have severe implications for the chances of a renewed and sustained recovery and job creation. However, some of the uncertainties surrounding the outlook may also point in a positive direction. Since the Community is currently enjoying favourable underlying economic fundamentals and the rebalancing of the policy-mix is expected to continue, the revival in economic activity could surprise in a positive manner once confidence is restored. 11. 2. 2. Employment trends 28 Employment -- Given the anticipated weak expansion of economic activity in early 1996, employment trends are expected to remain weak in the months ahead. However, provided economic growth picks up as forecast, job creation should turn positive again in the course of the second half of 1996 and gain momentum in 1997. Overall employment is forecast to grow by a meagre lA of a per cent this year and by V* of a per cent next year. B DK D Table 10 been have 9. 9 6. 8 8. 3 9. 8 5. 8 9. 4 (percent per year) -0. 1 0. 0 -0. 8 0. 7 0. 7 -0. 1 0. 4 1. 5 -0. 3 10. 1 6. 1 9. 3 (% of labour force) Unemployment rate Labour market prospects Employment growth 1995 1996 1997 1995 1996 1997 Not all Member States are expected to share in this modest pick-up in job creation in 1996. In Germany and Austria, employment is expected to fall considerably. If this prediction holds true, 1996 will be the fifth consecutive year of job losses in Germany where the economy is beset by a high relative cost level. In most other Member States, the expectations of job growth revised likewise downwards. In Belgium, Denmark, France and Portugal, employment is now expected to stagnate or fall this year. On the other hand, employment creation is expected to remain relatively strong (1 per cent or more) in Greece, Spain, Ireland, Luxembourg, the Netherlands, Finland and the United Kingdom. On current growth assumptions, employment is forecast to pick up more widely in 1997. But with significant job shake-outs expected to continue in the manufacturing sector, employment growth is expected to remain negative in Germany and, due to low economic growth, also in Austria. Source: Commission's Spring 1996 Forecasts. 9. 0 22. 1 11. 7 9. 1 22. 5 11. 7 9. 1 22. 9 11. 5 14. 4 11. 8 2. 9 15. 0 8. 3 8,0 12. 8 11. 7 2. 9 17. 2 9. 2 8. 8 16. 3 8. 8 8. 4 3. 8 -0. 4 2. 5 1. 4 -0. 1 -0. 6 1. 0 -1. 0 -0. 1 1. 4 -0. 4 0. 5 IRL I L 1. 7 0. 6 0. 9 7. 2 4. 6 7. 4 2. 2 1. 6 0. 6 0. 9 2. 7 1. 2 2. 3 0. 2 1. 7 7. 3 4. 0 7. 2 GR E F 1. 2 1. 5 0. 6 1. 0 1. 4 0. 0 1. 7 0. 4 2. 6 2. 1 1. 0 1. 0 7. 0 5. 1 7. 2 NL A P 11. 8 3. 0 S UK 13. 4 10. 8 EUR 10. 9 10. 9 FIN 0. 6 0. 6 0. 2 Unemployment trends — Against the background of sluggish job growth in the Community in 1996-97, unemployment is expected to rise further in the coming months, before starting to head downwards slowly in the course of the second half of 1996. For the year as a whole, the unemployment rate is expected to remain unchanged at last year's level of almost 11 per cent of the civilian labour force. Next year, it may decline slowly to \(?A per cent on average, possibly reaching WA per cent by the end of the year. The trends in unemployment in the individual Member States are largely a reflection of the expected employment trends. This year, the jobless rate is expected to rise significantly - 2 9- (by Vi a percentage point or more) in Germany and Austria although relative to the Community average joblessness remains relatively low in the latter country. Belgium, France and Portugal may also see a deterioration and the slow growth of employment is sufficient only to stabilise unemployment in Italy. On the other hand, unemployment is likely to continue falling in six Member States. This includes the three countries which are hardest hit by high unemployment (Ireland, Finland and Spain) although the level of joblessness continues to be extremely high in these countries. In all three, the impact of strong employment growth on the jobless figures is partly off-set by a significant increase in the labour force. The most positive developments are expected in the United Kingdom and Denmark where a further reduction of around Vj a percentage point is expected to bring the unemployment rate to a level significantly below the Community average. In 1997, the level of unemployment is forecast to fall to varying degrees in all Member States except three countries. In Germany and France, the jobless rate is likely to stabilise and in Austria it may rise further. For the Community at large, recent growth and unemployment trends have been disappointing. Progress towards the objectives stated in Article 2 of the Treaty, namely the promotion of sustainable, non-inflationary growth and a high level of employment, have not been adequate. And recent as well as prospective developments has cast doubts on the feasibility of achieving the objectives set out in the Commission's 1993 White Paper on Growth, Competitiveness and Employment of creating 15 million additional jobs and cutting unemployment by half (relative to its 1994 level) by the year 2000. Therefore, resolute efforts in both the macroeconomic and the structural fields aimed at strengthening sustainable job creation must be undertaken. 11. 2. 3. Convergence Price stability — Progress in reducing inflation in the Community and in the Member States is expected to continue this year and next. Average inflation in the Community, as measured by the deflator of private consumption, is expected to fall to some 2!/2 per cent this year and stay slightly below that level in 1997. The outlook for low and falling inflation is due not only to the recent widening and the expected persistence of a negative output gap in the Community economy, but also to the reinforced anti-inflation credibility of the economic policy framework. This credibility is well established in Germany and in the countries whose currencies are closely linked to the 30- 1996 Prices B DK D 8. 3 3. 6 1. 8 9. 3 4. 6 1. 6 GR E F 1. 7 3. 9 2. 6 (Annual percentage change) 1997 _, 2. 4 1. 6 Price and w a ge trends1 1997 TT 3. 6 2. 4 1995 TT 1. 8 2. 0 Nominal wages per head 1995 "TT 3. 3 3. 8 1 9 96 To* 1. 8 1. 6 DM. In a number of other countries, monetary Table 11 policy has been conducted with considerable success with the aim of bringing inflation down to a pre-set target. In Italy, Sweden, Spain and Portugal, anti-inflation credibility has been enhanced by the establishment of central bank independence and in Finland by significant moves towards that goal. In these countries, the conduct of fiscal policy has a particularly important role low inflation expectations and in maintaining the In all of them, a credibility of the currency. determined anti-inflationary stance of monetary policy combined with more credible efforts to place the public finances on a sound footing has, at various times, led to a significant appreciation of their currencies from previous lows. This is likely to further help the process of disinflation and, in turn, should facilitate a gradual relaxation of the monetary policies which have been restraining domestic demand in these countries. ' Private consumption deflator and nominal compensation Source: Commission's Spring 1996 Forecasts. in anchoring per employeo, respectively. to play 11. 1 3. 8 2. 3 12. 5 2. 4 2. 4 3. 0 3. 8 4. 6' 2. 3 4. 1 1. 7 FIN S UK 2. 5 2. 9 4. 0 5. 0 4. 8 3. 8 1. 9 3. 0 4. 6 1. 5 2. 5 2. 5 1. 0 1. 7 2. 7 2. 0 1. 6 3. 0 4. 0 4. 5 3. 6 4. 0 5. 2 3. 6 1. 1 2. 2 4. 2 7. 0 3. 2 1. 6 3. 1 5. 2 3. 9 4. 0 5. 4 3. 5 1. 1 2. 7 2. 6 2. 5 5. 7 2. 0 2. 4 3. 5 2. 1 9. 6 3. 6 2. 5 5. 3 3. 0 3. 1 1. 9 2. 1 3. 1 NL A P EUR IRL 2. 6 3. 0 3. 2 2. 4 3. 4 3. 5 In the Community as a whole and in the majority of Member States the rise in nominal compensation per employee is expected to remain compatible with the need to lock in low inflation and promote job creation. On average, nominal wages are expected to increase by about VA per cent this year and slightly less next year, against the background of an expected inflation rate of around 2]A per cent per year. Real wage costs arc likely to continue expanding at a rate below productivity growth, thereby contributing to a further rise in overall business profitability. In some low-inflation countries, particularly in Germany, relatively subdued demand and the competitiveness losses associated with currency appreciation have limited the extent to which labour costs can be passed on to prices, implying a significant squeeze on profit margins in the exposed sectors. Obviously, wage trends cannot adjust instantaneously to movements in exchange rates and in cases of clear overshooting, a market-induced correction of exchange rates is certainly the most desirable option. Still, in order to safeguard the country's competitive position and its attractiveness for private sector investment, it is essential to contain pay settlements whilst at the same time implementing measures to enhance productivity and employment. - 31 - Conversely, in some depreciating countries, especially Italy, real wages are expected to recover some of the ground lost over previous years. In these countries, there is a risk that workers will seek to catch up too rapidly on previous years' losses in purchasing power through higher pay claims thereby fuelling a price/wage spiral. Instead, continuing adequate wage behaviour in combination with credible fiscal rectitude should engender an appreciation of these currencies, thereby lessening (imported) inflationary pressures. Such a policy mix was successfully implemented in Sweden last year. But in 1996, the rate of nominal wage increases in Sweden is forecast to rise significantly despite the expected deceleration in consumer prices. This wage behaviour risks being in conflict with the stability objective and docs not appear to adequately reflect the need to maintain and create jobs. Moreover, allied with the considerable appreciation of the Krona, it may threaten its external competitive position. Inflation (deflator of private consumption) is expected to stay below 3 per cent in 1996-97 in the countries which already satisfy this goal. And in the seven countries where inflation did not exceed 2 percent last year (Belgium, Denmark, Germany, France, Luxembourg, Netherlands and Finland) it is expected to remain below that value this year and next (with the possible exceptions of Denmark and Luxembourg). The 1995 Broad Guidelines contained a recommendation that countries with an inflation rate in the range of 2 to 3 per cent should aim at progressing towards or below 2 per cent. In this regard, some progress is expected to take place in 1996 (Ireland, Austria and Sweden) but, at least on current forecast assumptions, less so in 1997 (due to a possible upward movement in Denmark, Ireland, Luxembourg and Sweden). Visible progress is expected to take place in the four countries where inflation currently exceeds 3 percent. Assuming continued efforts, inflation in Spain and Portugal is likely to approach the upper limit of the Guidelines objective (3 per cent) by 1997. Against the background of a marked slowing in import price increases and no further indirect tax increases, consumer price inflation in Italy is expected to decelerate to VA per cent in 1997. In Greece, with more determined efforts, especially on the budgetary front, it should be possible to reduce inflation further than the 7 per cent currently anticipated for 1997. Budgetary outlook for 1996-97 — A large number of Member States have taken significant steps to consolidate their public finances in 1996 and, in many cases, also in 1997. According to the Commission services' estimates of cyclically-adjusted fiscal balances, present budget plans imply a reduction in the underlying fiscal deficit of the order of % of a percentage point of Community GDP in 1996 and, on currently known policies, a further VA a percentage point in 1997. Nevertheless, in the latest forecasts of the 32- Commission services, which take into account slower growth than previously foreseen, the outlook is for a considerably smaller reduction in the general government net borrowing in the Community in 1996 than had previously been envisaged. The average fiscal deficit is expected to be reduced by lA a percentage point to just below 4!/2 per cent of Community GDP in 1996 (versus VA per cent of GDP forecast in Autumn 1995). The Economic Forecasts include a scenario for 1997 on the basis of measures which have already been adopted or announced in sufficient detail. This does not include general policy intentions for which specific measures are not yet known. The forecasts take into account the economic policy packages announced in detail during April and early May by the German, French, Austrian and Swedish governments. However, they do not incorporate the planned adjustment measures recently announced by the Belgian government for 1997 because the measures to be taken were not known in sufficient detail at the time of the elaboration of the forecasts. In addition to those mentioned, a number of other Member countries are expected to take measures to improve their budgetary position between now and 1997. On the basis of currently known measures, and aided by improving cyclical conditions and low interest rates, the scenario for 1997 points to a reduction in the average actual budget deficit to VA per cent of GDP next year. Table 12 Table 13 A c t u al a nd cyclically-adjusted - G e n e r al g o v e r n m e nt g r o ss d e bt general g o v e r n m e nt budget balances (percent of GDP) (percent of GDP) Actual balance Level Cycl. adj. balance Annual change1 1995 1996 1997 1995 1996 B DK D GR E F IRL NL A P FIN S UK -4. 5 -1. 4 -3. 5 -9. 2 6. 23 - 5. 0 -2. 4 -7. 1 0. 3 -3. 4 -6. 2 -5. 4 -5. 6 -8. 1 -6. 0 -3. 2 -0. 9 -3. 9 -8. 1 -4. 8 -4. 2 -2. 0 -6. 3 0. 7 -3. 5 -4. 6 -4. 4 -3. 3 5. 2 -4. 4 -3. 7 -0. 6 0. 5 1. 6 -2. 9 -0. 9 -6. 9 -3. 7 -3. 0 -1. 6 -5. 2 2. 6 0. 4 0. 5 -2. 0 1. 3 0. 3 -2. 0 -2. 9 -3. 1 -3. 7 -1. 6 -3. 1 -3. 7 -0. 2 -1. 6 0. 2 -1. 2 1. 1 0. 6 0. 3 EUR -5. 0 -4. 4 -3. 4 19971 -0. 9 -0. 2 1. 2 0. 8 0. 7 0. 9 0. 6 0. 8 -0. 6 0. 4 2. 0 0. 5 0. 7 1. 5 0. 3 0. 8 1. 8 1. 0 0. 3 1. 0 1. 5 1. 1 0. 3 0. 8 0. 4 0. 2 2. 2 0. 9 1. 5 2. 8 1. 5 0. 9 Level Annua! change 1995 1996 1997' 1996 19971 B DK D GR E F IRL I L NL A P FIN S UK 133. 7 132. 2 130. 6 71. 9 58. 1 71. 0 61. 5 687 62. 4 111. 5 111. 8 111. 4 65. 7 52. 4 85. 5 124. 8 5. 9 79. 0 69. 4 71. 6 59. 6 799 54. 0 67. 8 56. 1 68. 0 57. 8 81. 3 77 3 124. 5 122. 8 6. 2 79. 4 72. 4 72. 2 62. 5 80. 8 555 6. 8 787 739 718 632 796 562 EUR 71. 2 73. 9 74 3 -1. 5 -0. 9 3. 4 0. 3 2. 1 3. 7 -4. 2 -0. 3 0. 3 0. 4 3. 0 0. 6 2. 9 0 9 1. 5 2/ -1. 6 -2. 3 0. 9 -0. 4 0. 2 1. 7 -4. 0 -1. 7 0. 9 -07 1. 5 -0. 4 0. 7 -1. 2 0 7 0. 4 ' Based on currently announced measures. ' Based on currently announced measures. Source: Commission's Spring 1996 Forecasts. 1 A positive number denotes an improvement in the cyclically-adjusted balance. 3 This time series includes social security contributions still on a cash basis. Preliminary accounting on an accruals basis by national sources shows figures of • 5. 8% of GDP for 1 9 9 5. The time series will be issues updated on an accruals basis once certain concerning statistical definitions have bet::i clarified. the correct application of Source: Commission's Spring 1 996 Forecasts. 33 The expected degree of budgetary improvement is insufficient to halt (he rise in the average gross debt-to-GDP ratio in the Community, which is projected to increase by almost 3 percentage points to 74 per cent of GDP this year before roughly stabilising at that level in 1997. In 1996, debt ratios are expected to rise in all Member Slates except four (Belgium, Denmark, Ireland and Italy) but in 1997 debt ratios are expected to stabilise or fall in about two thirds of the Member States. All countries except Germany and the Netherlands are forecast to reduce their actual deficits in 1996, but progress is generally expected to fall short of the targets set both in national convergence programmes and in the 1995 Guidelines. Only 3 Member States (Denmark, Ireland and Luxembourg) are expected to have actual deficits below the 3 percent reference value this year. Particularly large reductions in the budget deficit (close to 1 percentage of GDP or more) are expected this year in Belgium, France, Greece, Spain, Italy, Austria, Portugal, Finland, Sweden and the United Kingdom. In the "unchanged policy" scenario for 1997, Germany, France, the Netherlands and Finland would join the group of countries with deficits below the Maastricht reference value and Austria and Sweden are expected to come very close to this value. In a number of countries, where further measures have not yet been disclosed in sufficient detail the additional effort required to reach the 3 per cent reference value would be of the order of VA percent of GDP (Belgium, Spain, Portugal, and the UK). Only in Italy and in Greece is the deficit expected to exceed the reference value by a wider margin in the current scenario with the deficit forecast at 5lA and 7 percent of GDP, respectively. * * Faced with an unsatisfactory growth and employment performance, there is an urgent need to relaunch the recovery process in the Community. The challenge facing policy-makers is to generate a renewed strengthening of confidence and job creation over the short-run while enhancing the conditions for stronger growth and employment over the medium term. This requires both the provision of a supportive macroeconomic policy framework, entailing a sound rebalancing of the macroeconomic policy mix, and intensified efforts in structural policies to reduce unemployment and enhance the Community's competitiveness. The Commission's 1996 Annual Economic Report gave a detailed analysis of the available policy options in the current situation. Furthermore, the Commission has received opinions of the European Parliament and the Social and Economic Committee on this report and 34 discussed it with the Social Partners. Against this background, the Recommendation for the 1996 Broad Economic Policy Guidelines sets out the policies which are necessary for achieving the Community's objectives in terms of growth, employment and convergence. 31) ISSN 0254-1475 COM(96) 211 final DOCUMENTS EN 10 Catalogue number : CB-CO-96-237-EN-C ISBN 92-78-04429-6 Office for Official Publications of the European Communities L-2985 Luxembourg

Re-examined proposal for a COUNCIL DIRECTIVE laying down for certain road vehicles circulating within the Community the maximum authorised dimensions in national and international traffic and the maximum authorised weights in international traffic

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if it COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 14. 05. 1996 COM(96) 208 final - 486 SYN Re-examined proposal for a COUNCIL DIRECTIVE LAYING DOWN FOR CERTAIN ROAD VEHICLES CIRCULATING WITHIN THE COMMUNITY THE MAXIMUM AUTHORISED DIMENSIONS IN NATIONAL AND INTERNATIONAL TRAFFIC AND THE MAXIMUM AUTHORISED WEIGHTS IN INTERNATIONAL TRAFFIC (presented by the Commission pursuant to Article 189 c (d) of the EC Treaty) Re-examined proposal for a COUNCIL DIRECTIVE LAYING DOWN FOR CERTAIN ROAD VEHICLES CIRCULATING WITHIN THE COMMUNITY THE MAXIMUM AUTHORISED DIMENSIONS IN NATIONAL AND INTERNATIONAL TRAFFIC AND THE MAXIMUM AUTHORISED WEIGHTS IN INTERNATIONAL TRAFFIC On 14 March 1996 the European Parliament amended the Common Position adopted by the Council on 8 December 1995 on the above-mentioned proposal. The three amendments of the Parliament are annexed. Under Article 189C, subparagraph (d) of the EC Treaty the Commission has reexamined its proposal and has decided to accept Amendment No. 1. As regards amendments 2 and 3 Article 4(6) of the proposal states "Member States may allow vehicles or vehicle combinations used for goods transport and registered or put into circulation before the implementation of this Directive to circulate in their territory until 31 December 2006 with dimensions exceeding those bid down in points 1. 1, 1. 2, 1. 4 to 1. 8,4. 2 and 4. 4 of Annex I by virtue of differing national provisions or methods of measurement. " Given that this article can allow existing registered vehicles and vehicle combinations to continue to operate until the end of 2006 the Commission does not feel that amendments 2 and 3 seeking additional derogations are appropriate. In particular, to allow derogations beyond 2006 jeopardises the objective of harmonisation and also has negative consequences for manufacturers adapting their production to meet the Directive. Amendments 2 and 3 are, thus, not acceptable to the Commission. The Commission, therefore, proposes to amend the Common Position by the inclusion of a new recital 15a, as follows: Common position of the Council Revised Proposal Recital 15a (new) Whereas, to prevent excessive road damage and to ensure manoeuvrability, when authorizing and using vehicles preference should be given to pneumatic or equivalent suspension rather than mechanical suspension, certain maximum axle loads should not be exceeded, and the vehicle must be capable of turning through 360' within certain limit values for the path followed; EUROPEAN PARLIAMENT 27 February 1996 A4-0044/1 AMENDMENT 1 tabled by the Committee on Transport and Tourism RECOMMENDATION FOR SECOND READING Rapporteur: Mr Wijsenbeek (A4-0044/96) MAXIMUM DIMENSIONS OF ROAD VEHICLES Common position of the Council (C4-0004/96 - 00/0486(SYN)) Common position of the Council Amendment (Amendment 1) Recital 15a (new) Whereas, tP Prevent excessiye road damage and to ensure manoeuvrability. when authorising gn<a using vehicles preference should be given tP pneumatic or equivalent suspension rather than mechanical suspension, certain maximum axle loads should not be exceeded, and the vehicle must be capable of turning through 3$Q° within certain limit values for the path followed; EUROPEAN PARLIAMENT 27 February 1996 A4-0044/2 AMENDMENT 2 tabled by the Committee on Transport and Tourism RECOMMENDATION FOR SECOND READING Rapporteur: Mr Wijsenbeek MAXIMUM DIMENSIONS OF ROAD VEHICLES Common position of the Council (C4-0004/96 - 00/0486(SYN)) (A4-0044/96) Common position of the Council Amendment (Amendment 2) Article 4(6a) (new) fchg Before ens! _oJ £&. £he_ transitional period referred to in paragraph 6. the Commission shall report on anv exemptions promoted bv developments which it should be possible 4& grant even after il December 2006 and, if necessary, put forward proposals thereon. EUROPEAN PARLIAMENT 12 March 1996 A4-0044/3 AMENDMENT 3 by Mr Wijsenbeek, on behalf of the ELDR group RECOMMENDATION FOR SECOND READING by Mr Wijsenbeek MAXIMUM AUTHORIZED WEIGHTS AND DIMENSIONS FOR CERTAIN ROAD VEHICLES (A4-0044/96) Common position of the Council C4-0004/96 - 00/0486(SYN) Common position of the Council Amendment (Amendment 3) Recital 14 Whereas the maximum authorized width of 2,50 m for vehicles intended for the carriage of goods can leave insufficient internal space for the efficient loading of pallets, which has given rise to the application of different tolerances beyond that level in the legislation of the Member States concerning domestic traffic; whereas a general adaptation to the current situation is therefore necessary in order to provide for clarity in technical requirements, bearing in mind the road safety aspects of these characteristics; Whereas the maximum authorized width of 2,50 m for vehicles intended for the carriage of goods and the maximum lengths laid down in point 1. 1 of Annex I can leave insufficient internal space for the efficient loading of pallets, which has given rise to the application of different tolerances beyond that level in the legislation of the Member States concerning domestic traffic; whereas a general adaptation to the current situation is therefore necessary in order to provide for clarity in technical requirements, bearing in mind the road safety aspects of these characteristics; € ISSN 0254-1475 COM(96) 208 final DOCUMENTS EN 87 Catalogue number : CB-CO-96-219-EN-C ISBN 92-78-03978-0 Office for Official Publications of the European Commimities L-2985 Luxembouig V

Amended proposal for a COUNCIL DECISION adopting a multi- annual Community programme to stimulate the development of a European multimedia content industry and to encourage the use of multimedia content in the merging information society (INFO2000)

http://publications.europa.eu/resource/cellar/9b4ecdc4-4bfb-4e99-a305-1b0f41f67822

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 14. 05. 19% COM(96) 188 final 95/0156 (CNS) Amended proposal for a COUNCIL DECISION adopting a multi-annual Community programme to stimulate the development of a European multimedia content industry and to encourage the use of multimedia content in the merging information society (INFO 2000) (presented by the Commission pursuant to Article 189 a (2) of the EC-Treaty) Explanatory memorandum 1. Introduction 1. 1 On 30 June 1995 the Commission adopted a proposal for a Council Decision adopting a multi-annual Community programme to stimulate the development of a European multimedia content industry and to encourage the use of this multimedia content in the emerging information society (INFO 2000) (COM(95) 149 final). This proposal was transmitted to the Council on 30 June 1995. 1. 2 The Council reached a political agreement on this proposal on 27 November 1995. 1. 3 The ESC delivered its opinion at the meeting on 20-21 December 1995 (ESC(95) 1455). 1. 4 The European Parliament adopted its opinion on 28 March 1996. That opinion contains 52 amendments to the original text presented by the Commission. 1. 5 The Commission can accept 24 of these amendments, of which 16 in whole and 8 in part. It cannot accept the remaining 28 amendments. 1. 6 The reasons for which the Commission has adopted this position on the amendments are set out in paragraph 3 below. The text of the amended proposal is given in Annex 1 (right-hand column) as compared with the text of the original proposal (left-hand column). 2. Object of the proposal The proposal concerns the establishment of a multi-annual Community programme, called INFO 2000, aimed at stimulating the development of a European multimedia content industry and encouraging the use of this multimedia content in the emerging information society. The three long-term strategic objectives of the programme are: • • to facilitate the development of the European information content industry; to optimise the contribution of new information services to growth, competitiveness and employment in Europe; to optimise the contribution of the advanced professional, social and cultural development of the citizens of Europe. information services to the • 3. Position of the Commission on the amendments presented by the European Parliament 3. 1 Amendments accepted as they stand The Commission accepts Amendments 4, 6, 8, 9, 15, 17, 20, 22, 27, 28, 33, 34, 39, 44, 47 and 51. Amendment 4 adds a new recital rightly underlining respect for linguistic pluralism. Amendment 6 is useful in that it adds a new recital to the effect that the measures under the programme must help, in particular, to reduce the risks of exclusion. Amendment 8 specifies that cinema and television are included in the audiovisual sector. Amendment 9 stresses the synergy to be achieved between the INFO 2000 programme and other Community programmes or initiatives. Amendment 15 extends the Commission's responsibility to the granting of financial aid. Amendment 17 redefines the field of application of the comitology procedure set out in Article 5, by deleting the breakdown of the budgetary expenditure and introducing a more precise wording as regards third countries or international organisations. the participation of bodies from Amendment 20 is a technical improvement to the wording employed. Amendment 22 is useful in pointing out that the organisations entrusted with awareness and information campaigns work in a European and international network. Amendment 27 is an improvement to the title of Action Line 2 (Multimedia exploitation of public sector information). Amendment 28 adds some useful remarks on public sector information. Amendment 33 specifies the fields concerned by the pilot projects conducted under activity 2. 2. Amendment 34 improves upon the wording of the original text to express the same idea. Amendment 39 rightly reiterates the importance of the coordinated approach adopted in the pilot projects conducted under the IMPACT programme. Amendment 44 rightly insists on particular encouragement for the development of the measures aimed at developing and multimedia services exchanging good practice. for SMEs amongst Amendment 47 rightly points out that education must devote more attention to Europe's cultural and linguistic heritage and to the multimedia aspect. Amendment 51 improves upon the wording. 3. 2 Amendments which the Commission can accept in part or subject to modification. This concerns Amendments 1, 5, 7, 21, 30, 37, 38 and 50. Amendment 1 makes a useful addition in the form of a new recital reiterating the principles of equality, accessibility and low cost, with regard to certain basic services, which must be respected in the provision of multimedia services. The Commission cannot, however, accept the words "and in some cases free provision", which it regards as too all-embracing. Amendment 5 can be accepted in principle, in that the interests of the public certainly merit special attention. Nevertheless, in order to preserve the consistency of the text of the recitals, it is preferable to add the words "and the interests of the public" at the end of recital 11. It is not within the remit of INFO 2000 to settle the questions raised by Amendment 7. Nevertheless, the Commission agrees with the spirit of the proposed recital and will devote particular attention to the level of implementation of the programme, so as to ensure that the measures taken under the programme are compatible with the policy guidelines expressed by Parliament. The amendment is therefore acceptable if reworded as follows: "Whereas it is necessary to devote particular attention, at the level of implementation of the programme, to the risks of abuse of multimedia content in such pernicious areas as racism, illegal pornography and other criminal activities;" Amendment 21 is acceptable as regards the first two parts, in that it makes useful additions. In the third part, however, while the remarks about encouraging the development of demand amongst certain user groups is acceptable, the reference to certain categories (women, the disabled, associations, NGOs) is too specific in this context. Amendment 30 is acceptable except for the first point ("and the potential offered by women in the subsequent development of such technologies") and the last point ("The Commission will assist the Member States. "). The first point confuses the general and the particular and makes it difficult to grasp the real imperatives of the Green Paper. The last point seems hardly compatible with the principle of subsidiarity and would require financial resources not provided for in the proposed budget. Amendment 37 is acceptable provided the specific reference to the United States is deleted. The first two parts of Amendment 38 provide useful rewordings and additions. As regards the second last change (development of new software packages), the Commission cannot accept this addition for the reasons set out for Amendment 45. Lastly, in the case of the final change, the proposed measure duplicates the measures taken under the Green Paper on copyright and neighbouring rights in the information society. Amendment 50 is welcome, in that it proposes that the support received for the products emanating from a project receiving financial support should be acknowledged. The inclusion of the European Union flag, however, is not acceptable, since it could create ambiguity by giving the impression of a quality label. 3. 3 Amendments which the Commission cannot accept: This concerns Amendments 2, 3, 10, 11, 12, 13, 14, 16, 18, 19, 23, 24, 25, 26, 29, 31, 32, 35, 36, 40, 41, 42, 43, 45, 46, 48, 49 and 52. Amendment 2 raises the risk of duplication with other programmes, in particular the Telematics Applications programme, in that it states that the actions should support the development of applications serving the purposes of health, education, training and regional planning. A new recital giving special treatment to associations and NGOs, as proposed in Amendment 3. is not justified in the light of the general nature of the recitals. Contrary to Amendment 10. the Commission considers that adapting the individual projects to developments in the market is essentially a matter for the partners in each project. On the other hand, the Commission must ensure that the proposed programme adapts to developments in the market, in particular by updating the criteria for calls for proposals. Amendment 11. which lays down a principle of strict reciprocity in implementing the programme in cooperation with third countries or international organisations, seems too specific. There is no such statement in other Community programmes. Amendment 12 is unacceptable to the Commission as the proposed text is not in line with the standard text set out in Annex II, point 2. A, of the Joint Declaration of the European Parliament, the Council and the Commission of 6 March 1995 concerning the incorporation of financial provisions into legislative acts. However, the Commission accepts the introduction of a recital and a provision adapted to and in conformity with the aforementioned Declaration. Amendment 13 is not in line with the Commission's general policy on the point in question. Amendment 14 increases the annual budgetary resources by reducing the duration of the programme. The Commission shares the view that the programme requires substantial budgetary resources in order to achieve its objectives. However, the budgetary consequences of the proposed amendment are incompatible with the overall financial planning and conflict with the financial outlook in heading 3. For these reasons the Commission cannot accept the amendment. The Commission nevertheless welcomes the support it demonstrates for its position vis-à-vis the Council on the budget for the programme. Amendment 16 does not appear to introduce any additional elements over and above what is already provided for in the financial statement and Annex 3. At the technical level, it would also be preferable to make a general reference to the Financial Regulation (instead of the specific reference to Article 57) and to bring the terminology of the amendment into line with that used in Article 57 of the Financial Regulation. Amendment 18 does not introduce any new element over and above the current practice and regulations. Amendment 19. setting 30 September 1997 as the date for submission of the evaluation report, is undesirable. The deadline is too short and will reduce the value of the mid-stage evaluation report, as it will take into consideration only the results obtained over the first twelve months, and that is an inadequate reference period. Moreover, because of their procedural complexity, there is a risk that the arrangements for appointing the independent experts will result in a further reduction in the reference period. Amendment 23 adds a function which lies outside the tasks of the organisations in the network and which is largely undertaken through other channels. Amendment 24 adds nothing useful, since the present wording does not exclude the organisations mentioned. Amendment 25 makes a statement which concerns action 4. 3 rather than action 1. 1. Although the Commission largely welcomes the substance of the amendment, it considers that this aspect is covered by the present wording of action 4. 3. The Commission considers that action 1. 2 must be maintained, in contrast to the objective of Amendment 26. Its proposed deletion appears to be inspired more by budget considerations than by genuine reasons of justification or problems of implementation. The Commission considers the elements of Amendment 29 of relevance to the debate which will take place on the Green Paper on access to, dissemination and exploitation of public-sector information. However, it would be better not to be too prescriptive as regards the Green Paper. Amendment 31. concerning an information system on information, adds a statement which is of little use, as it is already included in the notion of a directory. Amendment 32 proposes a wording which is too specific as regards women's interests and too restrictive as regards the concept of an electronic public space (virtual reality), which should not be limited to the directories aspect. The new wording of the title of Action Line 3. 1, as proposed by Amendment 35. is not fundamentally different from that proposed by the Commission. The Commission prefers to retain the initial wording for reasons of consistency with its position on Amendments 38, 40 and 45. Amendment 36 is redundant in relation to Amendment 8 and makes a superfluous and unbalanced statement. the production of multimedia Amendment 40 deletes the three fields identified as being of strategic importance, in which information content must be stimulated. Coordination structures are already covered by action 1. 2. Finally, the emphasis placed on multimedia products which are easily adaptable from one Member State to the other is in the wording of section 3. 1 (multilingual and already adequately expressed multicultural European approach). The first change (risk of diversity in the range of products) introduced by Amendment 41 relates more to the discussions of the public or private information circles. The second element (particular attention to be devoted to small producers) seems largely redundant in view of the preceding sentence in the text of point 3. 1. Amendment 42 proposes a mechanism which the Commission cannot accept for the implementation of Action Line 3. 1. However, the Commission considers the idea interesting and worthy of a more detailed study which can be undertaken under the proposed Action Line 4. 1. The Commission considers that the particular attention to be devoted to the legal conditions for transferring information public sector information to the private sector, as set out in Amendment 43. should be dealt with under Action Line 2 and not at the specific level of Action Line 3. 2. Amendment 45 aims to establish a new Action Line 3 relating to the development of new software packages. This measure is not part of INFO 2000, since it is covered by the fourth framework programme of research and development (IT, ACTS, Telematics). Amendment 46 is not acceptable, as the text of the preamble is not in line with the proposed measures. Amendment 48 proposes a new breakdown of the budget which the Commission cannot accept. The Commission is aware of the need to increase the resources for Action Line 3 at the expense of Action Line 1 and can agree with the thrust of the proposed change. However, the Commission considers that the proposed percentage spread is too restrictive. The Commission therefore proposes the following breakdown:. i-i«*w. ,Vi. ^P - action line 1 (stimulating demand and raising awareness): 20-30%, - action line 2 (exploiting Europe's public sector information): 18-23%, - action line 3 (triggering European multimedia potential): 43-55%, - action line 4 (support actions): 7-12%. Amendment 49 cannot be accepted for the following reasons. It is not desirable to replace "call for proposals" with "call for tender" in point 3 of Annex III, since this point concerns shared-cost projects for which the Community's financial contribution will not be more than 50% of the cost of the project. As regards point 4, the Commission's text aims to allow the cofinancing of projects submitted in the form of unsolicited proposals, outside the formal framework of a call for proposals. The amendment does not cover this eventuality and should be rejected. Amendment 52 introduces an unacceptable procedural complexity. 4. Conclusion The Commission recommends that the Council approve the amended proposal contained in Annex. Original proposal Modified proposal THE COUNCIL OF THE EUROPEAN UNION, THE COUNCIL OF THE EUROPEAN UNION, Having regard the European Community, and in particular Article 130 paragraph 3 thereof, the Treaty establishing to Having regard the European Community, and in particular Article 130 paragraph 3 thereof, the Treaty establishing to Having regard to the proposal from the Commission Having regard to the proposal from the Commission (1). Having regard to the opinion of the European Parliament @)t Having regard to the opinion of the European Parliament @), Having regard to the opinion of the Economic and Social Committee @) Having regard to the opinion of the Economic and Social Committee @) Whereas the European content industry can make a significant contribution to the stimulation of growth, to the strengthening of competitiveness and to the development of employment in the Community, as indicated "Growth, competitiveness, employment - The challenges and ways forward into the 21st century" W, the White Paper on in Whereas the European content industry can make a significant contribution to the stimulation of growth, to the strengthening of competitiveness and to the development of employment in the Community, as indicated "Growth, competitiveness, employment - The challenges and ways forward into the 21st century" (4), the White Paper on in Whereas the European Council at Brussels on 10-11 December 1993 decided, on the basis of that White Paper, to implement an action plan, consisting of concrete measures at both Union and Member States level, information infrastructures and new applications, for which new content is required; notably with respect to Whereas the European Council at Brussels on 10-11 December 1993 decided, on the basis of that White Paper, to implement an action plan, consisting of concrete measures at both Union and Member States level, information infrastructures and new applications, for which new content is required; notably with respect to OJN° OJN° OJN° 'Growth, competitiveness, employment (1) (2) (3) (4) The challenges and ways forward into the 21st century', COM(93)700 final of 5. 12. 1993, Chapter 5A The information society'. (1) OJN°C 250, 26. 9. 1995, p. 4 (2) OJ N° (3) OJN°C82, 19. 3. 1996, p. 36 (4) 'Growth, competitiveness, employment - The challenges and ways forward into the 21st century', COM(93)700 final of 5. 12. 1993, Chapter 5A The information society'. 3 Whereas the European Council at Corfu on 24-25 June 1994 took note of the Recommendations of the High Level Group on the information society as presented in the report "Europe and the global information society"^); and underlined that the Community and Member States have an important role to play in bringing about the information society by giving political impetus, by creating a clear and stable regulatory and legal framework and by setting an example in areas which come under their aegis; Whereas the European Council at Corfu on 24-25 June 1994 took note of the Recommendations of the High Level Group on the information society as presented in the report "Europe and the global information society" w); and underlined that the Community and Member States have an important role to play in bringing about the information society by giving political impetus, by creating a clear and stable regulatory and legal framework and by setting an example in areas which come under their aegis; Whereas the Commission's action plan " Europe's Way to the Information Society - An Action Plan"(6) recognises the importance of content and stipulates that the Commission will propose ways to stimulate the creation of favourable conditions for content providers to adapt their skills and products to the to stimulate new multimedia environment and increased usage of new information services; Whereas the Commission's action plan " Europe's Way to the Information Society - An Action Plan"(6) recognises the importance of content and stipulates that the Commission will propose ways to stimulate the creation of favourable conditions for content providers to adapt their skills and products to the to stimulate new multimedia environment and increased usage of new information services; Whereas the Council on 28 September 1994 (7) underlined the particular urgency of the need to enhance the global competitiveness of the European content industry, taking account of the cultural diversity and of the impact of these products on society; Whereas the Council on 28 September 1994 (7) underlined the particular urgency of the need to enhance the global competitiveness of the European content industry, taking account of the cultural diversity and of the impact of these products on society; Whereas the European Council at Essen on 9-10 December 1994 underlined importance of content in bringing about the information society; the Whereas the European Council at Essen on 9-10 December 1994 underlined importance of content in bringing about the information society; the Whereas the Council Resolution on Culture and Multimedia (**) 0n 3-4 April 1995 underlined the importance of multimedia the development of the content industry and improving access of citizens to cultural heritage, as well as the catalysing role of Member States and the Union in the creation, production and distribution of high quality cultural multimedia programmes; facilitating for Whereas the Council Resolution on Culture and Multimedia (8) on 3. 4 April 1995 underlined the importance of multimedia the development of the content industry and improving access of citizens to cultural heritage, as well as the catalysing role of Member States and the Union in the creation, production and distribution of high quality cultural multimedia programmes; facilitating for to 'Europe and the global information society the European Council', (5) - Recommendations Brussels, 26 May 1994. (6) ' Europe's Way to the Information Society - An Action Plan'. (7) 9561/94 (Press 197), 28 September 1994. Conclusions of the 1787th Council meeting COM(94)347 final of 19 July 1994 'Europe and the global information society - the European Council', (5) Recommendations to Brussels, 26 May 1994. (6) COM(94)347 final of 19 July 1994 ' Europe's Way to the Information Society - An Action Plan'. (7) Conclusions of the 1787th Council meeting 9561/94 (Press 197), 28 September 1994. /Jo the contribution of new Whereas the three long-term strategic objectives of the Union's content policy shall be to facilitate the development of the European content industry; to optimise information services to growth, competitiveness and employment in Europe; and to maximise the contribution of advanced information services to the professional, social and cultural development of the citizens of Europe; the contribution of new Whereas the three long-term strategic objectives of the Union's content policy shall be to facilitate the development of the European content industry; to optimise information services to growth, competitiveness and employment in Europe; and to maximise the contribution of advanced information services to the professional, social and cultural development of the citizens of Europe; Whereas the there are numerous barriers development of a European multimedia content industry and market, which are hindering the transition towards an information society; to Whereas the there are numerous barriers development of a European multimedia content industry and market, which are hindering the transition towards an information society; to Whereas the Community needs to build on the strong competitive position it has in some content sectors and whereas its competitive position needs to be strengthened in other content sectors; Whereas the Community needs to build on the strong competitive position it has in some content sectors and whereas its competitive position needs to be strengthened in other content sectors; Whereas the needs of users of information services, particularly in small and medium-sized enterprises and in the less favoured regions of the Community, merit special attention; Whereas the needs of users of information services, particularly in small and medium-sized enterprises and in the less favoured regions of the Community, and the public and their interests merit special attention; Whereas the provision of multimedia services should respect the principles of equal access and the low cost of certain basic services and should contribute to the cohesion of, in particular, the geographically disadvantaged regions of Europe; Whereas provision should be made for measures to encourage the participation of small and medium- sized enterprises (SMEs) in this programme; Whereas provision should be made for measures to encourage the participation of small and medium- sized enterprises (SMEs) in this programme; Whereas the different rates of development in the provision and use of information services in the Member States deserve special consideration, having regard to the internal cohesion of the Community and the risks associated with a two-tier information society; Whereas the different rates of development in the provision and use of information services in the Member States deserve special consideration, having regard to the internal cohesion of the Community and the risks associated with a two-tier information society; Whereas Community actions undertaken concerning the content of information should respect the Union's multilingual character and encourage initiatives to adapt the content of multimedia information in the languages of the Member States; (8) Audiovisual/Culture Council session nr 1841 of 3-4 April 1995, Council document 6072/95 of 24 March 1995 (8) Audiovisual/Culture Council session nr 1841 of 3-4 April 1995, Council document 6072/95 of 24 March 1995 nn Whereas the measures under the programme must help to reduce the risks of exclusion of unskilled or underskilled workers, the emergence of a dual society, the widening of disparities between regions and the increased isolation of the individual; Whereas particular attention should be paid, when implementing the programme, to the risk of abuse of multimedia content in such pernicious areas as illegal pornography and other criminal racism, activities; Whereas policy actions under this programme aiming at strengthening the position of the European content industry will be complementary to other content actions, particularly those related to the audiovisual sector (9); Whereas policy actions under this programme aiming at strengthening the position of the European content industry will be complementary to other content actions, particularly those related to the audiovisual sector (9); Whereas any content policy actions must be complementary to other ongoing national and Community initiatives, as outlined notably in the Commission's action plan "Europe's Way to the Information Society - An Action Plan", and shall be performed the Commission's education (1 0), training (n) , RDT (1 2) and SME (l-*) policies and initiatives; in synergy with Whereas any content policy actions must be complementary to other ongoing national and Community initiatives, as outlined notably in the Commission's action plan 'Europe's way to the information society - an action plan', and shall be performed in synergy with programmes in the Fourth Framework (programmes concerned with advanced technology, technology, advanced communications services and telematics) and with the Commission's education (11), training (12), cultural and SME (13) policies and initiatives, and with the Structural Funds; Programme (10) in services television Council Decision 93/424/EEC of 22 July (9) 1993 on an action plan for the introduction of advanced Europe; COM(94)523 of 8 February 1995 'Politique Audio visuelle. Créer un environnement favorable à l'essor l'industrie européenne des des entreprises de 1996-2000)'; Council programmes Directive 1989 (OJ N° L 298, 'Television without frontiers' 17. 10. 1989, p. 15). (MEDIA2 89/552/EEC 3 October of (10) COM(93)708 final of 3 February 1994. (11) Council Decision of 6 December 1994 (OJ Nc L340, 29. 12. 1994, p. 8). / )£ (9) Council Decision 93/424/EEC of 22 July 1993 on an action plan for the introduction of advanced television services in Europe; COM(94)523 of 8 February 1995 'Politique Audio-visuelle. Créer un environnement favorable à l'essor des entreprises de l'industrie européenne des programmes (MEDIA2 1996-2000)'; Council Directive 89/552/EEC of 3 October 1989 'Television without frontiers' (OJ N° L298, 17. 10. 1989, p. 15). (10) Fourth Framework Programme of the European Community activities in the field of research and technological development and demonstration (1994 to 1998), adopted by the Decision N° 1110/94/EC of the European Parliament and of the Council of 26 April 1994 (OJN°L 126, 18. 5. 1994, p. l) (11) COM(93)708 final du 3 février 1994. to adapting in due course it, where appropriate, Whereas progress of this programme should be continuously and systematically monitored with a view to developments in the multimedia content market; should be an whereas independent evaluation of the the background to provide programme so as information needed the in order objectives for subsequent content policy actions; whereas at the end of this programme there shall be a final evaluation of results obtained compared with the objectives set out in this Decision; there the progress of to determine to adapting in due course it, where appropriate, Whereas progress of this programme should be continuously and systematically monitored with a view to developments in the multimedia content market; should be an whereas independent evaluation of the the background to provide programme so as information needed the in order objectives for subsequent content policy actions; whereas at the end of this programme there shall be a final evaluation of results obtained compared with the objectives set out in this Decision; there the progress of to determine Whereas the actions in this programme will not in any way prejudice the competition rules of the Community; Whereas the actions in this programme will not in any way prejudice the competition rules of the Community; it may be appropriate co-operation in Whereas international with international organisations and third countries for the purpose of implementing this programme; to engage activities Whereas the activities which may prove useful in international international cooperation with organizations and third countries for the purpose of implementing this programme should be undertaken with due regard to the criterion of mutual advantage; Whereas it is necessary to fix the duration of the programme; Whereas it is necessary to fix the duration of the programme; HAS ADOPTED THIS DECISION HAS ADOPTED THIS DECISION and technological Fourth Framework Programme of (12) the European Community activities in the field of research and to 1998), adopted by the demonstration (1994 Decision N° 1110/94/EC of the European Parliament and of the Council of 26 April 1994 (OJ N° L 126, 18. 5. 1994, p. l) (13) COM(94) 207 final of 3 June 1994 development (12) Council Decision of 6 December 1994 (OJ Nc L340, 29. 12. 1994, p. 8). (13) COM(94) 207 final of 3 June 1994 43 Article 1 Article 1 A programme is hereby adopted with the following objectives: A programme is hereby adopted with the following objectives: • Stimulate demand for, and use of, multimedia content, • Create favourable conditions for the development of the European multimedia content industry, • Contribute to the professional, social and cultural development of the citizens of Europe. • Stimulate demand for, and use of, multimedia content, • Create favourable conditions for the development of the European multimedia content industry, • Contribute to the professional, social and cultural development of the citizens of Europe. Article 2 Article 2 In order to attain the objectives referred to in Article 1, the following actions shall be undertaken under the guidance of the Commission, in accordance with the action the detailed implementation arrangements set out in Annex III: in Annex I and lines • stimulating demand and raising awareness, • exploiting Europe's public sector information, • triggering European multimedia potential, • support actions. In order to attain the objectives referred to in Article 1, the following actions shall be undertaken under the guidance of the Commission, in accordance with the action lines the detailed implementation arrangements set out in Annex III: in Annex I and • stimulating demand and raising awareness, • making good use by the multimedia industry of information held by the public sector, • triggering European multimedia potential, • support actions. Article 3 Article 3 The programme shall cover a period of four years from 1 January 1996 to 31 December 1999. The programme shall cover a period of four years from 1 January 1996 to 31 December 1999. Article 4 Article 4 1. The Commission shall be responsible for the implementation of the programme. 1. The Commission shall be responsible for the implementation of the programme and for the decisions to grant Community financial aid to the projects selected. 2. The procedure laid down in Article 5 shall apply to: 2. The procedure laid down in Article 5 shall apply to: • the work programme, • the breakdown of the budgetary expenditure, • the content of calls for proposals, • the measures for programme evaluation, • any departure from the rules set out in Annex III, • participation in any project by legal entities from third countries and international organisations. • the work programme, • the content of calls for proposals, • the measures for programme evaluation, • any departure from the rules set out in Annex III, •consideration information the facilitating the participation in any project by legal entities from international third countries and organizations. objective of Article 5 Article 5 an 1. The Commission shall be assisted by a committee the nature of representatives of the Member States and chaired by the representative of the Commission. composed advisory of an 1. The Commission shall be assisted by a committee the nature of representatives of the Member States and chaired by the representative of the Commission. composed advisory of /)V| 2. The Commission representative shall submit to the committee a draft of measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter concerned, if necessary by taking a vote. 2. The Commission representative shall submit to the committee a draft of measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter concerned, if necessary by taking a vote. 3. The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its position recorded in the minutes. 3. The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its position recorded in the minutes. 4. The Commission shall take the utmost account of the opinion delivered by the committee. It shall inform the committee of the manner in which its opinion has been taken into account. 4. The Commission shall take the utmost account of the opinion delivered by the committee. It shall inform the committee of the manner in which its opinion has been taken into account. Article 6 Article 6 to At the mid-term and at the end of the programme, the European the Commission shall submit Parliament, the Council, the Economic and Social Committee and the Committee of the Regions, once the committee referred to in Article 5 has examined it, an evaluation report drawn up by independent experts on the results obtained in implementing the action lines referred to in Article 2. The Commission may present, on the basis of those results, proposals for adjusting the orientation of the programme. At the mid-term and at the end of the programme, to the European the Commission shall submit Parliament, the Council, the Economic and Social Committee and the Committee of the Regions, once the committee referred to in Article 5 has examined it, an evaluation report drawn up by independent experts on the results obtained in implementing the action lines referred to in Article 2. The Commission may present, on the basis of those results, proposals for adjusting the orientation of the programme. Article 7 Article 7 support in this programme may be open, Participation normally without the financial Community, to legal entities established in third countries and to international organisations, where the such participation contributes effectively implementation of the programme and taking into account the principle of mutual benefit. by to in the programme may be open, Participation without financial support from the Union budget, to legal entities established in third countries and to international organizations, where such participation contributes effectively to the implementation of the programme and taking into account the principle of mutual benefit. Article 8 Article 8 This Decision is addressed to the Member States. This Decision is addressed to the Member States. Done at Brussels, For the Council The President Done at Brussels, For the Council The President /ir ANNEXI ANNEX I ACTION LINES FOR INFO2000 ACTION LINES FOR INFO2000 ACTION LINE 1: Stimulating demand and raising awareness ACTION LINE 1: Stimulating demand and raising awareness Lack of awareness of the potential of the new multimedia information products and services is an important factor constraining demand. This action line contributes to redressing that situation by adding a European dimension to awareness and user-group activities taking place at the national or regional level. Specific attention will be given to favouring demand development in less-favoured and peripheral regions of the Union. Lack of awareness of the potential of the new multimedia information products and services is an important factor constraining demand. This action line contributes to redressing that situation by adding a European dimension to awareness and user-group activities taking place at the national or regional level. These awareness-raising activities must also extend to members of the public who could easily be sidelined on account of their personal or social circumstances. Specific attention will be given to encouraging demand development with certain user groups and in less-favoured and peripheral regions of the Union. 1. 1. Creating new markets by raising awareness at the European level with specific user groups 1. 1. Creating new markets by raising awareness at the European level with specific user groups Under the IMPACT programme a network of organisations in the Member States has been created that have a responsibility for conducting awareness campaigns in relation to new and information information services. In different Member States this role is performed by different organisations like chambers of commerce, professional organisations or public bodies. By working in a European network these organisations are able to add a European dimension to their activities. Under INFO2000 this successful formula will be continued and extended. The involvement of the Community in the network as a catalyst and a co ordinator adds value to the individual activities and puts these activities in a clear European context. Apart from financial support for specific activities with a European dimension the Commission will encourage and experience, the use of common communication and information facilities, and co-operation between the various organisations in joint projects. of know-how exchange the Under the IMPACT programme a network of organisations in the Member States has been created that have a responsibility for conducting awareness campaigns in relation to new and information information services. In different Member States this role is performed by different organisations like chambers of commerce, professional organisations or public a European/international network these organisations are able to add a European/international dimension to their activities. working bodies. By in Under INFO2000 this successful formula will be continued and extended. The involvement of the Community in the network as a catalyst and a co ordinator adds value to the individual activities and puts these activities in a clear European context. Apart from financial support for specific activities with a European dimension the Commission will encourage and experience, the use of common communication and information facilities, and co-operation between the various organisations in joint projects. of know-how exchange the The organisations in the network will perform the following tasks: The organisations in the network will perform the following tasks: • provide access to information collections and catalogues across the European Union; • demonstrate and facilitate access to the European information highways; • advise users on the possible sources for satisfying their multimedia content needs, both nationally and internationally; • provide access to information collections and catalogues across the European Union; • demonstrate and facilitate access to the European information highways; • advise users on the possible sources for satisfying their multimedia content needs, both nationally and internationally; s\G organise co-ordinated European • campaigns at the national or regional level; • stimulate the training of users. awareness organise co-ordinated European • campaigns at the national or regional level; • stimulate the training of users. awareness The main target groups for the actions will be small and medium-sized companies and libraries. The actual selection of specific target groups will be left to the national and regional organisations concerned, since they are closest to the target groups. companies, medium-sized The main target groups for the actions will be small libraries, and documentation centres and contact points and information desks. On the basis of these criteria, the national and regional organizations concerned, since they are closest to these target groups, will carry out the actual selection. Following a call for proposals a total of 30 to 50 organisations will be selected to participate in the network. Selection criteria will include knowledge of the local information market, affinity with the target groups foreseen and readiness to work in a European network. Actions which aim to stimulate women's interests in new information services are encouraged. Following a call for proposals a total of 30 to 50 organisations will be selected to participate in the network. Selection criteria will include knowledge of the local information market, affinity with the target groups foreseen and readiness to work in a European network. Actions which aim to stimulate women's interests in new information services are encouraged. (EICs), (ISPO), The network will co-operate with other relevant national organisations. It will liaise closely with other EU supported bodies and networks that have a complementary mission, such as the Information the European Society Project Office the Business Co Information Centres the Value Relay operation Network (BC-NET), the University Enterprise Training Centres and Partnerships (UETPs). Organisations from these networks could be selected in the call for proposals. Efforts will be made to avoid parallel or overlapping networks. Synergy and spin-offs will be sought with other awareness activities performed under the 4th the Framework and Advanced Communication Services and Telematics applications programmes. programme such as Technologies research (EICs), (ISPO), The network will co-operate with other relevant national organisations. It will liaise closely with other EU supported bodies and networks that have a complementary mission, such as the Information the European Society Project Office the Business Co Information Centres the Value Relay operation Network (BC-NET), the University Enterprise Training Centres and Partnerships (UETPs). Organisations from these networks could be selected in the call for proposals. Efforts will be made to avoid parallel or overlapping networks. Synergy and spin-offs will be sought with other awareness activities performed under the 4th the Framework and Advanced Communication Services and Telematics applications programmes. programme such as Technologies research 1. 2. Encouraging clusters of pan-European users 1. 2. Encouraging clusters of pan-European users and such services products A flourishing demand side is important for the development of a healthy market for advanced information as multimedia. In view of the rapid changes taking place in the information market, regular dialogue between suppliers and users can smooth the transition process. In general the supply side tends to be better organised than the user side, both at the national and at the European level. In two of the three sectors that compose the multimedia industry - information technology and telecommunications - the user side is increasingly organising itself both at the national and at the European level. and such services products A flourishing demand side is important for the development of a healthy market for advanced information as multimedia. In view of the rapid changes taking place in the information market, regular dialogue between suppliers and users can smooth the transition process. In general the supply side tends to be better organised than the user side, both at the national and at the European level. In two of the three sectors that compose the multimedia industry - information technology and telecommunications - the user side is increasingly organising itself both at the national and at the European level. ^ of the influence is fragmented. Historically, In the third sector of the multimedia industry - the content industry - the demand side is much less organised and the relationship between the content providers and the users has been indirect, i. e. through intermediaries. the new However, under communication networks this situation is changing. The need relations between suppliers and users is increasingly being felt in the level, content professional organisations and sector organisations are beginning to address the issue. However, for a successful development of the European multimedia content market it is important that groupings of users also emerge at the European level. the national industry to develop direct also. At sector of the influence is fragmented. Historically, In the third sector of the multimedia industry - the content industry - the demand side is much less organised and the relationship between the content providers and the users has been indirect, i. e. through intermediaries. the new However, under communication networks this situation is changing. The need relations between suppliers and users is increasingly being felt in the level, content professional organisations and sector organisations are beginning to address the issue. However, for a successful development of the European multimedia content market it is important that groupings of users also emerge at the European level. the national industry to develop direct also. At sector The actions foreseen under INFO2000 aim to stimulate this process by providing incentives for co operation and exchange of experience between the national user groups, thereby encouraging groupings. emergence Specific of European to address key user measures will be tailored problems, for example quality assurance and questions of liability. The network of awareness organisations will be used to analyse the situation in individual Member States and will play a catalytic role in bringing about pan-European user groups. ACTION LINE 2: Exploiting Europe's public sector information The actions foreseen under INFO2000 aim to stimulate this process by providing incentives for co operation and exchange of experience between national user groups, the thereby encouraging groupings. emergence Specific of European to address key user measures will be tailored problems, for example quality assurance and questions of liability. The network of awareness organisations will be used to analyse the situation in individual Member States and will play a catalytic role in bringing about pan-European user groups. ACTION LINE 2: Making good use by the multimedia industry of information held by the public sector Europe's public sector information is a hidden resource to be exploited. The public sector collects and produces vast amounts of information, much of which is of interest to individuals and businesses, and which can be the raw material for value-added information services produced by the private sector content industry. Official statistical services either at regional, national or European level are an example. Europe's public sector information is a substantial resource to be made use of by the multimedia industry. The public sector collects and produces vast amounts of information, which can be the raw material for value-added information services for the benefit of individuals and businesses. Official statistical services either at regional, national or European level are an example. Three sets of actions will be particularly helpful in supporting this public sector role and in exploiting its potential at European level: Three sets of actions will be particularly helpful in supporting this public sector role and in exploiting its potential at European level: • developing policies to access and exploit public sector information, • linking directories of European public sector information, • making use of content resources in the public sector. • developing policies to access and exploit public sector information, • linking directories of European public sector information, • making use of content resources in the public sector. Particular attention will be given to access from the peripheral regions of the Union. improving Particular attention will be given access from the peripheral regions of the Union. to improving 2. 1. Developing policies European public sector information to access and exploit 2. 1. Developing policies European public sector information to access and exploit A % to transition In the Member States, rules for access to public sector information are very different or in some cases do not exist at all. As the the information society progresses, this situation could become a barrier to full participation by individuals and businesses across Europe and may become the opportunities. cause Therefore, the taken at European level to develop policies which facilitate access to and exploitation of public sector held information, in particular as regards information resources of European interest. distributed to be initiatives need of unevenly to transition of unevenly In the Member States, rules for access to public sector information are very different or in some cases do not exist at all. As the the information society progresses, this situation could become a barrier to full participation by individuals and businesses across Europe and may become the opportunities. cause Therefore, the taken at European level to develop policies which facilitate access to and exploitation of public sector held information, in particular as regards information resources of European interest. Particular attention will be given to the legal conditions for transferring public sector information to the private sector, in order to preserve and safeguard the public sector's rights on information which it collects and produces. distributed to be initiatives need The Commission will produce, in close collaboration with Member States and market actors, a Green Paper analysing the different the situation Member States, the relative position of the EU in a the various possibilities for global context and convergence of national approaches. To lay the foundations for this Green Paper, studies comparing national situations will be undertaken and exchanges of national experience will be encouraged. in in The Commission will produce, in close collaboration with the Member States and market actors, a Green Paper analysing the different the situation Member States, the relative position of the EU in a global context and the various possibilities for convergence of national approaches. To lay the foundations for this Green Paper, studies comparing national situations will be undertaken and exchanges of experience will be encouraged. In this context, the experience that emerges following the Commission Communication on universal service should be taken into account. On the basis of the Green Paper, the Commission will submit proposals to ensure the convergence of national proposals and the rules governing access to public sector information. It should be noted that the development of the information information systems of libraries and services will promote the use of content, since these services themselves produce important information about information) by (secondary recording the materials produced in a variety of areas. to strengthen information 2. 2. Linking directories of European public sector information 2. 2. Linking directories of European public sector information In a number of Member States practical initiatives are being taken to improve access to public sector information. In the European information society it must be ensured that the relevant public sector information becomes more easily accessible to all European individuals and businesses that may have an interest in such information. In a number of Member States practical initiatives are being taken to improve access to public sector information. In the European information society it must be ensured that the relevant public sector information becomes more easily accessible to all European individuals and businesses that may have an interest in such information. The Commission will support initiatives to produce directories of European public sector information to a common format, so that they can be interlinked and easily accessed from any point in Europe. The Commission will support initiatives to produce directories of European public sector information to a common format, so that they can be interlinked and easily accessed from any point in Europe. /)2> directories Following a call for proposals, pilot projects for the of production that information incorporate the above characteristics will be supported. These pilot projects may address the transnational interconnection of existing national or regional the collaborative production of new directories. Pilot projects based on public/private partnerships and applying multilingual solutions will be particularly encouraged. information directories as well as directories Following a call for proposals, pilot projects for the of production that information incorporate the above characteristics will be supported. These pilot projects shall make it a priority to address the transnational interconnection of existing national or information directories and the collaborative production of new directories, depending particularly on their degree of economic and social usefulness. Pilot projects applying multilingual solutions will be particularly encouraged. regional 2. 3. Making use of content resources in the public sector 2. 3. Making use of content resources in the public sector Europe is blessed with a rich stock of what might be called "information collections" under public sector control, for instance in museums, libraries, copyright and patent deposit systems, educational and training bodies, historical archives and architectural and industrial objects. These information collections need to be exploited if Europe is to build on these cultural and economic assets commercially and if Europe is to realise the potential of advanced technologies in support of public sector services. They are central to the Union's strength in the global information their commercial and strategic potential has already been underlined by a scries of deals transferring control over some of them to private companies, not all of which have been European. society and Most of these information collections are still in increasingly being analogue form but they are digitised. The INFO2000 programme aims at mobilising these digital collections for exploitation by the private sector. Europe is blessed with a rich stock of what might be called "information collections" under public sector control, for instance in museums, libraries, copyright and patent deposit systems, educational and training bodies, historical archives and architectural and industrial objects. These information collections need to be exploited if Europe is to build on these cultural and economic assets commercially and if Europe is to realise the potential of advanced technologies in support of public sector services. They are central to the Union's strength in the global information their commercial and strategic potential has already been underlined by a series of deals transferring control over some of them to private companies, not all of which have been European. society and The INFO2000 programme aims to facilitate the transfer of these information collections to digital form as well as their valorisation and exploitation. To this end the Commission will support the creation of European information inventories of digital collections and stimulate their interconnection across the EU. This involves defining a common standard format for such inventories as well as integrating them with trading systems. Support for the creation of inventories and their integration with intellectual property rights trading systems will be provided on the basis of calls for proposals. Related standards and specifications will be developed through studies and through task groups composed of the actors involved. intellectual property rights To this end the Commission will support the creation of European information inventories of digital collections and stimulate their interconnection across the EU. This involves defining a common standard format for such inventories as well as integrating them with trading systems. Support for the creation of inventories and their integration with intellectual property rights trading systems will be provided on the basis of calls for proposals. Related standards and specifications will be developed through studies and through task groups composed of the actors involved. intellectual property rights ACTION multimedia potential LINE 3: Triggering European ACTION multimedia potential LINE 3: Triggering European do The transition from "scribe to screen" is rapidly and fundamentally changing the structure of the content industry and the roles of the different players within it. Internationalisation and multimedia are key words in this respect. Content itself and new ways of creating, packaging, distributing and marketing it are increasingly becoming the key drivers behind these changes. these changes and exploiting is primarily that the Coping with opportunities the emerge responsibility of the industries concerned. However, apart from a limited number of large corporations that operate on a global scale, the present day content sector in Europe is mainly made up of small and medium size companies. These have difficulty in dealing with a rapidly developing international multimedia market and the speed with which the changes take place. In addition the initial cost of producing high quality multimedia titles is high and the European market fragmented through cultural and linguistic barriers. The critical mass needed to recoup initial investments is therefore much more difficult to reach. The transition from "scribe to screen" is rapidly and fundamentally changing the structure of the content industry and the roles of the different players within it. Internationalisation and multimedia are key words in this respect. Content itself and new ways of creating, packaging, distributing and marketing it are increasingly becoming the key drivers behind these changes. The development of new software packages and new computerized in conjunction with the Community programmes on information technologies, is essential if multimedia authors are to create attractive and user-friendly products the best possible conditions of productivity which make full use of the true potential of the multimedia industry. resources, in The rich cultural and linguistic diversity of Europe can be used as a means of strengthening European competitiveness. the emerge these changes and exploiting is primarily that industries concerned, the Coping with the opportunities the responsibility of present-day content sector is made up not only of large corporations that operate on aglobal scale and are expected to play a determining role in the development of the multimedia industry but also of a large number of small and medium-sized companies which are often inventive and dynamic but often have limited financial resources for the high initial investment needed to produce and distribute high- quality multimedia titles. Hence the purpose of INFO2000 is to establish the conditions to achieve real synergy in industrial terms between the large multimedia corporations and small businesses. This industrial policy must also seek to the specific needs of a culturally and meet linguistically fragmented European multimedia market. puts European multimedia This publishers, traditionally used to operating in a national or regional setting, at a disadvantage compared with their competitors from other parts of the world. Exploitation of the single market potential will become vital for global competitiveness. puts European multimedia This publishers, traditionally used to operating in a national or regional setting, at a disadvantage compared with their competitors from other parts of the world. Exploitation of the single market potential will become vital for global competitiveness. This action line aims at mitigating these comparative disadvantages the emerging multimedia market by: for European producers in • catalysing high quality European multimedia content, favouring a practical approach • multimedia rights • developing and exchanging best business practice to trading to favour This action line aims at creating the best possible environment the multimedia industry in Europe and mitigate the comparative disadvantages of the European market by: the development of the stimulating production multimedia products, incorporating characteristics of language and culture, • favouring a practical approach multimedia rights • developing and exchanging best business practice of European specific trading the to Zs\ 3. 1 Catalysing high quality European multimedia content services The production of high quality European multimedia content will be stimulated in three strategic areas: economic exploitation of Europe's cultural heritage, business for SMEs, and geographic information. Under the IMPACT programme pilot actions in these areas have illustrated the problems connected with a pan-European approach and have laid the foundations for further actions under INFO2000. the economic benefits, Multilingual interactive multimedia products can build on the wealth of available European content, while overcoming language barriers and other limitations of national and regional markets. Apart strong European from business activity in this area is likely to contribute to the safeguarding of cultural identity and linguistic diversity. the public's understanding of European cultural diversity across the Member States and regions. increase It will also 3. 1 Stimulating multimedia products, characteristics of language and culture the production incorporating of European the specif c The production of high quality European multimedia content will be stimulated in three strategic areas : economic exploitation of Europe's cultural heritage, for SMEs, and geographic business information. Impact programme have revealed the importance of a co ordinated approach to implementing these objectives in a pan-European context. Pilot actions under services the the economic benefits, Multilingual interactive multimedia products can build on the wealth of available European content, while overcoming language barriers and other limitations of national and regional markets. Apart strong European from business activity in this area is likely to contribute to the safeguarding of cultural identity and linguistic diversity. the public's understanding of European cultural diversity across the Member States and regions. increase It will also In the areas indicated above - European cultural heritage, business services for SMEs and geographic information - calls for proposals will be launched to provide support to the initial and pre-commcrcial phases content of pan-European multimedia developments. The support given should help the companies concerned overcome the specific barriers with respect to multilingual and multicultural (re)use of content and to trans-national co-operation. These initial phases would include product definition, partner identification, cross-licensing negotiation, planning of co-operative distribution etc. up to and including the production of a prototype. Support will be given to projects that demonstrate the feasibility of a trans-European multilingual and multicultural approach, contain a risk element, exert a strong catalytic effect on the market and imply add-on substantial user incentives can be provided to encourage participation by small and medium sized companies and organisations from less favoured and peripheral regions. involvement. Special In the areas indicated above - European cultural heritage, business services for SMEs and geographic information - calls for proposals will be launched to provide support to the initial and pre-commercial phases of pan-European multimedia content developments. The support given should help the companies concerned overcome the specific barriers with respect to multilingual and multicultural (re)usc of content and to trans-national co-operation. These initial phases would include product definition, partner identification, cross-licensing negotiation, planning of co-operative distribution etc. up to and including the production of a prototype. the Info 2000 programme will promote The development of multimedia products that are easily adaptable from one Member State to the other, in both linguistic and cultural terms. Support will be given to projects that demonstrate the feasibility of a trans-European multilingual and multicultural approach, contain a risk element, exert a strong catalytic effect on the market and imply substantial user involvement. Special add-on incentives can be provided to encourage participation by small and medium sized companies and organisations from less favoured and peripheral regions. The calls for proposals will be co-ordinated closely with the Community programmes RAPHAËL and the Integrated Programme in favour of SMEs and the craft sector, as well as with the sectoral policy actions in the areas of Trade, Tourism and Social Economics. The calls for proposals will be co-ordinated closely with the Community programmes RAPHAËL and the Integrated Programme in favour of SMEs and the craft sector, as well as with the sectoral policy actions in the areas of Trade, Tourism and Social Economics. 3. 2. Trading multimedia intellectual property rights 3. 2. Trading multimedia intellectual property rights LI Historically, the management of rights is organised by sector (text, sound, image, video etc. ) and by country. With the dawning of the multimedia age this situation is increasingly becoming a barrier to the development of multimedia content markets, as the time and effort that has to be spent on identifying and acquiring the different rights increases steeply with the number of data types involved and the number of countries where right holders are located. Small companies and new media start-ups suffer most from the present system as they may wish to re use existing material. Historically, the management of rights is organised by sector (text, sound, image, video etc. ) and by country. With the dawning of the multimedia age this situation is increasingly becoming a barrier to the development of multimedia content markets, as the time and effort that has to be spent on identifying and acquiring the different rights increases steeply with the number of data types involved and the number of countries where right holders are located. Small companies and new media start-ups suffer most from the present system as they may wish to re use existing material. The development of pan-European multimedia content often requires input from various Member States. Effective and efficient mechanisms for trading multimedia rights at the European level are therefore essential for the European multimedia content industry. the development of The development of pan-European multimedia content often requires input from various Member States. Effective and efficient mechanisms for trading multimedia rights at the European level are therefore essential for the European multimedia content industry. the development of trading of multimedia A call for proposals will be launched inviting proposals for pilot projects that lay the foundations rights for cross-border electronically. In addition, studies will be launched to determine how different intellectual property rights trading systems for multimedia in Europe can work together. As an aid to small and medium sized companies practical tools will be developed on best practices to acquire, exploit and protect multimedia rights. The actions will build on the relevant research and technological development activities under the Fourth Framework Programme. trading of multimedia A call for proposals will be launched inviting proposals for pilot projects that lay the foundations rights for cross-border electronically. In addition, studies will be launched to determine how different intellectual property rights trading systems for multimedia in Europe can work together. As an aid to small and medium sized companies practical tools will be developed on best practices to acquire, exploit and protect multimedia rights. The actions will build on the relevant research and technological development activities under the Fourth Framework Programme. Although the difficulty of reaching consensus should term, not be underestimated, legal harmonisation requirements may be necessary. longer of rationalisation and the in Although the difficulty of reaching consensus should term, not be underestimated, legal harmonisation requirements may be necessary. longer of rationalisation and the in 3. 3. Developing and exchanging best practice 3. 3. Developing and exchanging best practice Actions will be supported that aim at developing and exchanging best business practice in the multimedia content industry at the European level. Such actions will include descriptions of business processes and models relevant to the content industry, such as procedures for intellectual property acquisition and content asset valuation and management, and exchange of experiences with multimedia consumer panels to test and evaluate multimedia products and services. Actions will be supported that aim at developing and exchanging best business practice in the multimedia content industry at the European level. In particular, the development of multimedia services which could support the operations of SMEs should be promoted. Such actions will include descriptions of business processes and models the content industry, such as procedures for intellectual property acquisition and management, and exchange of experiences with multimedia consumer panels to test and evaluate multimedia products and services. asset valuation relevant content and to These activities will be implemented by means of a combination of studies, workshops, seminars and publications. The relevant organisations the European content industry will be closely involved. in These activities will be implemented by means of a combination of studies, workshops, seminars and publications. The relevant organisations the European content industry will be closely involved. in 4. Support actions 4. Support actions Z 3 The programme support actions aim at amplifying the effects of the core actions of the programme by addressing a number of horizontal issues relevant for the programme as a whole. The programme support actions aim to underpin the core goals of the programme and to reinforce the effects of its principal measures. These measures take account of the importance of developing a legislative context that encourages harmonization and standardization. 4. 1. Observing and analysing content market the multimedia 4. 1. Observing and analysing content market the multimedia At regular intervals senior experts from the content industry, from user communities and from Member States will be convened to monitor, analyse and discuss the impact of multimedia on the content the industry and on information value chain. When organising these meetings modern multimedia and communication facilities will be used where possible. the different information actors in At regular intervals senior experts from the content industry, from user communities and from Member States will be convened to monitor, analyse and discuss the impact of multimedia on the content the industry and on information value chain. When organising these meetings modern multimedia and communication facilities will be used where possible. the different information actors in aspects regulatory The composition of the meetings will reflect the various segments of content creation, distribution and use within the European Union, as well as the many (e. g. personal data protection) affecting the content dimension. They will thus serve as a focus for discussion, exchange of experience and co-operation between the various sectors of the content industry, between European and national policy makers, and between the supply and user sides of the content market. aspects regulatory The composition of the meetings will reflect the various segments of content creation, distribution and use within the European Union, as well as the many (e. g. personal data protection) affecting the content dimension. They will thus serve as a focus for discussion, exchange of experience and co-operation between the various sectors of the content industry, between European and national policy makers, and between the supply and user sides of the content market. The meetings will focus on: The meetings will focus on: international developments • long-term scenarios, updated whenever justified by major in markets, technologies, industries and policies • key issues of common interest to market actors from different sectors and from different Member States, such as legal aspects and quality assurance • and recommendations to the industries, administrations and users to overcome them • of recommendations on orientations and priorities. INFO2000, making development to market execution obstacles the • long-term scenarios, updated whenever justified by major in markets, international developments technologies, industries and policies • key issues of common interest to market actors from different sectors and from different Member States, such as legal aspects and quality assurance • and recommendations to the industries, administrations and users to overcome them • of recommendations on orientations and priorities. INFO2000, making development to market execution obstacles the Studies will be carried out to monitor changes in the European and global content markets and provide in- depth analysis of key issues. Studies will be carried out to monitor changes in the European and global content markets and provide in- depth analysis of key issues. 4. 2. Spreading the use of multimedia content standards 4. 2. Spreading the use of multimedia content standards Standards for the structuring and presentation of information, and standards for content encoding, including terminology, are essential in order to facilitate and publications, and to enable the exploitation, access, maintenance and re-use of content. documents exchange the of Harmonization of standards is particularly relevant to the provision of advanced information services to European end-users. Standards for the structuring and presentation of information, and standards for terminology, content are including the exchange of essential in order to facilitate documents and publications, and the to enable exploitation, access, maintenance and re-use of content. encoding, z If The work started in this domain under the IMPACT programme will be continued and extended. Actions will be supported that raise awareness of and stimulate the use of existing content standards through workshops and electronic fora and by publishing reports on paper and electronically. The work started in this domain under the IMPACT programme will be continued and extended. Actions will be supported that raise awareness of and stimulate the use of existing content standards through workshops and electronic fora and by publishing reports on paper and electronically. 4. 3. Encouraging skills development at European level 4. 3. Encouraging skills development at European level In order to stimulate skills development, the relevant European associations will be encouraged to develop and implement measures to equip the European content providers with the necessary skills to enter the age of multimedia and interactivity. Actions to be supported will normally be based on a three-staged approach: inter-activity. In order to stimulate skills development, the relevant European associations will be encouraged to develop and implement measures to equip the European content providers with the necessary skills to enter the age of multimedia and In education too, greater attention must be devoted to the European cultural and linguistic heritage, so that at a later stage more use can be made of products and services provided by the content industry. In European technological education greater attention must be devoted to multi-media aspects. Actions to be supported will normally be based on a three- staged approach: • identification of the most urgent training needs • development of pilot courses test effectiveness and efficiency of the proposed actions • launching of the activities in the relevant parts of the content industry and in the educational and training systems. the to • identification of the most urgent training needs • development of pilot courses test effectiveness and efficiency of the proposed actions • launching of the activities in the relevant parts of the content industry and in the educational and training systems. the to The first two steps could be supported under INFO2000. The third step would fall within the remit of programmes and LEONARDO, thus achieving important multiplier effects. like SOCRATES The first two steps could be supported under INFO2000. The third step would fall within the remit of programmes and LEONARDO, thus achieving important multiplier effects. like SOCRATES to The content industry will be extensively consulted in order identify urgent needs and key areas. Representatives of universities and vocational training establishments will be closely associated with these initiatives. The role of the Community will mainly consist of stimulating, co-ordinating and enabling this process. The content industry will be extensively consulted in order to identify urgent needs and key areas. Representatives of universities and vocational training establishments will be closely associated with these initiatives. The role of the Community will mainly consist of stimulating, co-ordinating and enabling this process. cs ANNEX H ANNEX II INDICATIVE BREAKDOWN OF EXPENDITURE INDICATIVE BREAKDOWN OF EXPENDITURE 1. Stimulating demand and raising awareness 30- 40% 1. Stimulating demand and raising awareness 20- 30% 2. Exploiting Europe's public sector information 18- 23% 2. Making good use by the multimedia industry of information held by the public sector 18-23% 3. Triggering European multimedia potential 33- 45% 3. Triggering European multimedia potential 43- 55% 4. Support actions 7-12% 4. Support actions 7-12% Total 100% Total 100% This breakdown docs not exclude the fact that a project could relate to several activities. This breakdown does not exclude the fact that a project could relate to several activities. U ANNEX m ANNEX III THE MEANS FOR IMPLEMENTING INFO2000 THE MEANS FOR IMPLEMENTING INFO2000 1. The Commission will implement the programme in accordance with the technical content specified in Annex I. 1. The Commission will implement the programme in accordance with the technical content specified in Annex I. 2. The programme will be executed through indirect action and wherever possible on a shared-cost basis. The Community's financial contribution for shared- cost projects shall normally not exceed 50% of the cost of lower the project, with progressively participation the nearer the project is to the market place. Special add-on incentives can be provided to encourage participation by SMEs and less favoured regions. 2. The programme will be executed through indirect action and wherever possible on a shared-cost basis. The Community's financial contribution for shared- cost projects shall normally not exceed 50% of the cost of lower the project, with progressively participation the nearer the project is to the market place. Special add-on incentives can be provided to encourage participation by SMEs and less favoured regions. in close consultation with 3. The selection of shared-cost projects will normally be based on the usual procedure of calls for proposals published in the Official Journal of the European Communities. The content of the calls for proposals will be defined the relevant experts and according to the procedure referred to in Article 5 of the Decision. The main criterion for supporting projects through calls for proposals will be their potential contribution to achieving the programme. Implementation procedures will accommodate the interests of all kinds of market operators and facilitate their participation in the programme. the objectives of in close consultation with 3. The selection of shared-cost projects will normally be based on the usual procedure of calls for proposals published in the Official Journal of the European Communities. The content of the calls for proposals will be defined the relevant experts and according to the procedure referred to in Article 5 of the Decision. The main criterion for supporting projects through calls for proposals will be their potential contribution to achieving the programme. Implementation procedures will accommodate the interests of all kinds of market operators and facilitate their participation in the programme. the objectives of 4. The Commission may also implement a more flexible funding scheme than the call for proposals in order to provide incentives for the creation of partnerships, involving SMEs and organisations in less favoured regions, or for other exploratory activities in different segments of the multimedia content market. This scheme might be operated on a permanent basis. in particular 5. The Commission will make provision for considering in exceptional cases unsolicited project proposals which involve a particularly promising and significant multimedia market development, a highly innovative approach or an exceptional technology or methodology, and which cannot be submitted within the normal call for proposals procedure. The objective of avoiding market distortion will be maintained. 4. The Commission may also implement a more flexible funding scheme than the call for proposals in order to provide incentives for the creation of partnerships, involving SMEs and organisations in less favoured regions, or for other exploratory activities in different segments of the multimedia content market. This scheme might be operated on a permanent basis. in particular 5. The Commission will make provision for considering in exceptional cases unsolicited project proposals which involve a particularly promising and significant multimedia market development, a innovative approach or an exceptional highly technology or methodology, and which cannot be submitted within the normal call for proposals procedure. The objective of avoiding market distortion will be maintained. 6. The detailed arrangements for the procedures referred to under points 4 and 5 will be implemented through the consultative committee procedure (type I) and the Commission's financial regulations. They will be published in the Official Journal of the European Communities. in accordance with 6. The detailed arrangements for the procedures referred to under points 4 and 5 will be implemented through the consultative committee procedure (tjpe I) and the Commission's financial regulations. They will be published in the Official Journal of the European Communities. in accordance with £~r 7. Projects fully financed by the Commission within the framework of study and services contracts will be implemented through calls for tenders in accordance with the Commission's Financial Regulations. Transparency will be achieved by publishing the work programme and circulating trade associations and other interested bodies. to it actions this programme; preliminary 8. For the implementation of the programme the Commission will also undertake preparatory, accompanying and support activities designed to achieve the general objectives of the programme and the specific aims of each action line. This includes activities such as: studies and consultancy in support of in preparation of future activities; measures aimed at facilitating participation in the programme as well as facilitating access to the results produced under the programme; publications and activities for the dissemination, promotion and exploitation of results; analysis of possible socio-economic consequences associated with support activities such as observation and analysis of the multimedia content market, spreading the use of multimedia content standards, and encouraging skills development at European level. the programme; and 7. Projects fully financed by the Commission within the framework of study and services contracts will be implemented through calls for tenders in accordance with the current financial provisions. Transparency will be achieved by publishing the work programme and circulating it to trade associations and other interested bodies. actions this programme; preliminary 8. For the implementation of the programme the Commission will also undertake preparatory, accompanying and support activities designed to achieve the general objectives of the programme and the specific aims of each action line. This includes activities such as: studies and consultancy in support of in preparation of future activities; measures aimed at facilitating participation in the programme as well as facilitating access to the results produced under the programme; publications and activities for the dissemination, promotion and exploitation of results; analysis of possible socio-economic consequences associated with support activities such as observation and analysis of the multimedia content market, spreading the use of multimedia content standards, and encouraging skills development at European level. the programme; and 9. Participation in this programme by international organisations may be financed, in exceptional cases, on the same basis as that of legal entities established in the Community. 9. Participation in this programme by international organisations may be financed, in exceptional cases, on the same basis as that of legal entities established in the Community. 10. A11 projects receiving financial support under the INFO2000 programme will be required to display an acknowledgement of the funding received. 2<g ISSN 0254-1475 COM(96) 188 final DOCUMENTS EN 15 10 Catalogue number : CB-CO-96-196-EN-C ISBN92-78-03164-X Office for Official Publications of the European Communities L-2985 Luxembourg Z9

Proposal for a COUNCIL DECISION concluding the Agreement for scientific and technical cooperation between the European Community and the State of Israel

http://publications.europa.eu/resource/cellar/9995312f-1167-4ee1-9483-877c779c0e8c

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 14. 05. 1996 COM(96) 205 final 96/0134 (CNS) Proposal for a COUNCIL DECISION concluding the Agreement for scientific and technical cooperation between the European Community and the State of Israel (presented by the Commission) EXPLANATORY MEMORANDUM Subject : Proposal for a Council Decision concluding the Agreement for scientific and technical cooperation between the European Community and the State of Israel 1. On 29 September 1994, the Council authorized the Commission to negotiate an Agreement for scientific and technical cooperation between the European Community and the State of Israel. The results of these negotiations were approved by the Commission on 14 December 1995 (COM(95)664) and transmitted to Council (letter from Commissioner Fischler, dated 15 December 1995) proposing that the Council : decide that the Agreement be signed on behalf of the Community, and authorize the President of the Council to appoint the persons duly empowered to sign on behalf of the Community. 3. On 18 March 1996, the Council decided that the Agreement be signed on behalf of the Community. Signing took place in Brussels, on 25 March 1996. In the light of the above-mentioned considerations, the Commission proposes that the Council, after consultation of the European Parliament : conclude the attached Agreement for scientific and technical cooperation between the European Community and the State of Israel; and give notification to the Israeli authorities that the procedures necessary for the entry into force of the Agreement have been completed on the part of the European Community. Z Proposal for a COUNCIL DECISION concluding the Agreement for scientific and technical cooperation between the European Community and the State of Israel THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 130m, in conjunction with Article 228(2), first sentence, and the first subparagraph of Article 228(3) thereof, Having regard to the proposal from the Commission ('), Having regard to the Opinion of the European Parliament (2), WHEREAS the European Community and Israel are pursuing specific research programmes in areas of common interest; WHEREAS on the basis of past experience under the 1975 Cooperation Agreement between the European Communities and Israel, both sides have expressed a desire to establish a deeper and broader framework for the conduct of collaboration in science and technology; WHEREAS the State of Israel, on the one hand, and the European Community and its Member- States, on the other hand, have signed a Euromediterranean association agreement providing for the negotiation of a cooperation agreement in the field of science and technology; WHEREAS by its Decision of 29 September 1994, the Council authorized the Commission to negotiate an agreement for scientific and technical cooperation between the European Community and the State of Israel; WHEREAS by its Decision of 18 March 1996, the Council decided that the Agreement for scientific and technical cooperation be signed on behalf of the European Community3; WHEREAS the Agreement for scientific and technical cooperation was signed on 25 March 1996; WHEREAS the Agreement for scientific and technical cooperation between the EC and the State of Israel should be approved, 1 O. J. N° 2 O. J. N° 3 O. J. N' 3 HAS DECIDED AS FOLLOWS : The Agreement for scientific and technical cooperation between the European Community and the State of Israel is hereby approved. The text of the Agreement is attached to this Decision. Article 1 Article 2 Pursuant to Article 13 of the Agreement, the President of the Council shall give notification that the procedures necessary for the entry into force of the Agreement have been completed on the part of the European Community. Done at For the Council The President ON SCIENTIFIC AND TECHNICAL COOPERATION BETWEEN AGREEMENT THE EUROPEAN COMMUNITY AND THE STATE OF ISRAEL S THE COUNCIL OF THE EUROPEAN UNION, acting on behalf of the European Community (hereinafter "the Community"), of the one part, and THE GOVERNMENT OF THE STATE OF ISRAEL, acting on behalf of the State of Israel (hereinafter "Israel"), of the other part, hereinafter referred to as the "Parties", CONSIDERING the importance of scientific and technical research for Israel and the Community and their mutual interest in cooperating in this matter in order to make better use of resources and avoid unnecessary duplication; WHEREAS Israel and the Community are currently implementing research programmes in fields of common interest; WHEREAS Israel and the Community have an interest in cooperating on these programmes to their mutual benefit; CONSIDERING the interest of both Parties in encouraging the mutual access of their research entities to research and development activities in Israel on the one hand, and to the Community's framework programmes for research and technological development on the other; WHEREAS, for this purpose, it is desirable that a framework be established to encompass the full extent of cooperation between Israel and the Community in the field of research; WHEREAS the State of Israel, on the one hand, and the European Community and its Member States, on the other hand, have negotiated an agreement providing for the negotiation of a cooperation agreement in the field of science and technology; WHEREAS, by Decision No 11 10/94/EC, the European Parliament and the Council of the European Union adopted a Framework Programme of European Community activities in the field of research and technological development and demonstration (1994-1998), hereinafter called the "Fourth Framework Programme"; WHEREAS, without prejudice to the relevant provisions of the Treaty instituting the European Community, this Agreement and any activities entered into under it will in no w ay affect the powers vested in the Member States to undertake bilateral activities with Israel in the fields of science, technology, research and development, and to conclude, where appropriate, agreements to that end, HAVE AGREED AS FOLLOWS: 3 ARTICLE 1 1. Research entities established in Israel may participate in all the specific programmes of the Fourth Framework Programme. 2. Israeli scientists or research entities may participate in the activities of the Joint Research Centre. 3. Research entities established in the Community may participate in research programmes and projects in Israel in themes equivalent to those of the programmes of the Fourth Framework Programme. 4. "Research entities" as referred to in this Agreement, shall include inter alia: universities, research organizations, industrial companies, including small and medium-sized enterprises, or individuals. ARTICLE 2 Cooperation may take the following forms: participation of research entitles established in Israel in the implementation of al specific programmes adopted under the Fourth Framework Programme, in accordance with the terms and conditions laid down in the "rules for the participation of undertakings, research centres and universities in research, technological development and demonstration activities of the European Community", % financial contribution by Israel to the budgets of the programmes adopted for the implementation of the Fourth Framework Programme on the basis of the ratio of Israel's GDP to that of the Member States of the European Union, participation of research entities established in the Community in Israeli research projects and their results, in accordance w i th the terms and conditions applying in Israel in every case; research entities established in the Community participating in Israeli research projects within research and development programmes shall cover their o wn costs, including their relative share of the project's general management and administrative costs, regular discussions on the orientations and priorities of research policies and planning in Israel and the Community, discussions on cooperation prospects and development, timely provision of information concerning the implementation of RTD programmes in Israel and the Community, and concerning the results of work undertaken within the framework of cooperation. ARTICLE 3 Cooperation may be achieved by the following means: participation in Community programmes or subprogrammes or joint research activities, and notably in shared cost research contracts, concerted actions, coordination activities, including thematic networks, education and training activities, studies and assessments, joint meetings, visits and exchanges and research workers, engineers and technicians, regular, sustained contacts between programme or project managers, - participation of experts in seminars, symposia and workshops. ARTICLE 4 « Cooperation may be adapted and developed at any time by mutual agreement between the Parties. 40 ARTICLE 5 Research entities established in Israel, participating in Community research programmes, shall, as regards ownership, exploitation and dissemination of information and intellectual property arising from such participation, have the same rights and obligations as those of research entities established in the Community, subject to Annex A. Research entities established in the Community, taking part in Israeli research projects within research and development programmes, shall, as regards ownership, exploitation and dissemination of information and intellectual property arising from such participation, have the same rights and obligations as those of Israeli research entities in the project in question, subject to Annex C. ARTICLE 6 A joint committee shall be established, to be called the "EC-Israel Research Committee' whose functions shall include: reviewing and evaluating the implementation of this Agreement, examining any measure of a nature to improve and develop cooperation, ^T7 regularly discussing the future orientations and priorities of research policies and research planning in Israel and the Community, and the prospects for future cooperation, ensuring the proper implementation of this Agreement. The committee, which shall be composed of representatives of the Commission and of Israel, shall adopt its rules of procedure. It shall meet, at the request of the Parties, at least once a year. Extraordinary meetings shall be held at the request of one or the other of the Parties. ARTICLE 7 1. Excluding the first budgetary year of implementation of the Community's Fourth Framework Programme (hereinafter "the first year"), Israel's financial contribution deriving from participation in the implementation of the specific programmes shall be established in proportion to, and in addition to, the amount available each year in the general budget of the Communities for commitment appropriations to meet the Commission's financial obligations stemming from work to be carried out in the forms necessary for the implementation, management and operation of these programmes. />e 2. The proportionality factor governing Israel's contribution shall be obtained by establishing the ratio between Israel's gross domestic product, at market prices, and the sum of gross domestic products, at market prices, of the Member States of the European Union. This ratio shall be calculated on the basis of the latest statistical data from the International Bank for Reconstruction and Development, available at the time of publication of the preliminary draft budget of the European Communities. 3. The rules for financial participation by the Community are set out in Annex IV of Decision No 1110/94/EC of the European Parliament and of the Council, of 26 April 1 9 9 4. 4. The rules governing Israel's financial contribution are set out in Annex B. ARTICLE 8 1. Israeli representatives will participate in the programme management committees of the Fourth Framework Programme. These committees shall meet without the presence of Israeli representatives at the time of voting and otherwise only in special circumstances. Israel will be informed. 2. Participation as referred to in paragraph 1, of this Article shall take the same form, including procedures for receipt of information and documentation, as that applicable to participants from Member States. AZ ARTICLE 9 1. Without prejudice to the provisions of Article 5, research entities established in Israel participating in the Fourth Framework Programme shall have the same contractual rights and obligations as entities established in the Community, taking into account the mutual interests of the Community and Israel. 2. For Israeli research entities, the terms and conditions applicable for the submission and evaluation of proposals and those for the granting and conclusion of contracts under Community programmes shall be the same as those applicable for contracts concluded under the same programmes w i th research entities in the Community, taking into account the mutual interests of the Community and Israel. 3. Israeli experts shall be taken into consideration, alongside Community experts, in the selection of evaluators or referees under the Community's RTD programmes. 4. The financial coordinator of a project involving partners from both Israel and the Community must be established in a Member State of the European Union or in an EFTA State, Contracting Party to the Agreement on the European Economic Area. The scientific coordinator of such a project may be established in Israel. 5. Without prejudice to the provisions of Article 5, research entities established in the Community participating in Israeli research projects within research and development programmes shall have the same contractual rights and obligations as Israeli entities, subject to Annex C, taking into account the mutual interests of the Community and Israel. A ^ 6. For research entities from the Community, the terms and conditions applicable for the submission and evaluation of proposals and those for the granting and conclusion of contracts for projects within Israeli research and development programmes shall be equivalent to those applicable for contracts concluded under the same research and development programmes w i th research entities in Israel, subject to Annex C, taking into account the mutual interests of the Community and Israel. ARTICLE 10 Each Party undertakes, in accordance w i th its o wn rules and regulations, to facilitate the movement and residence of research workers participating, in Israel and in the Community, in the activities covered by this Agreement. ARTICLE 11 Annexes A, B and C form an integral part of this Agreement. ARTICLE 12 1. This Agreement is hereby concluded for the duration of the Fourth Framework Programme. AC 2. Subject to paragraph 1, either of the Contracting Parties may terminate this Agreement at any time upon twelve months' notice. Projects and activities in progress at the time of termination and/or expiry of this Agreement shall continue until their completion under the conditions laid d o wn in this Agreement. 3. Should the Community decide to revise one or more Community programmes, this Agreement may be terminated under mutually agreed conditions. Israel shall be notified of the exact content of the revised programmes within one week of their adoption by the Community. The Parties shall notify one another, within one month after the adoption of the Community decision, of any intention to terminate this Agreement. 4. Where the Community adopts a new multi-annual framework programme for research and development, this Agreement may be renegotiated or renewed under mutually agreed conditions. ARTICLE 13 This Agreement shall be approved by the Parties in accordance w i th their existing procedures. It shall enter into force on the date on which the Parties shall notify each other of the completion of the procedure? necessary for this purpose. ^Ç, ARTICLE 14 This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of the State of Israel. ARTICLE 1 5 This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Hebrew languages, each of these texts being equally authentic. For the Government of the State of Israel For the Council of the European Union •i} ANNEX A PRINCIPLES ON THE ALLOCATION OF INTELLECTUAL PROPERTY RIGHTS I. Ownership, allocation and exercise of rights 1. The contractual arrangements agreed on by the participants under the rules set out to implement Article 130j of the Treaty establishing the European Community, shall address, in particular, the ownership and use, including publication, of information and intellectual property (IP) to be created in the course of joint research, taking into account the aims of the joint research, the relative contributions of the participants, the advantages and disadvantages of licensing by territory or for fields of use, requirements imposed by applicable laws, dispute settlement procedures, and other factors deemed appropriate by the participants. The rights and obligations concerning the research generated by visiting researchers, if any, in respect of IP shall also be addressed in the said arrangements. 2. In the implementation of this Agreement, as regards participation in the Fourth Framework Programme, information and IP shall be exploited in conformity w i th the mutual interests of the Community and Israel, and the contractual arrangements shall provide accordingly. In the case of information and IP generated in the execution of a project pursuant to the Fourth Framework Programme, the contractual arrangements shall provide also for the rights specified in Article 5 of the Agreement to be granted only concerning information and IP arising after the effective date of Israel's financial contribution. At 3. Information or IP created in the course of joint research and not addressed in the contractual arrangements shall be allocated, according to the principles set out in the contractual arrangements, including dispute settlement. Where no binding decision is reached by the agreed dispute resolution technique chosen by participants, such information or IP shall be owned jointly by all the participants involved in the joint research from which the information or IP results. Failing agreement on exploitation, each participant to w h om this provision applies, shall have the right to use such information or IP for his o wn commercial exploitation w i th no geographical limitation. 4. Each Party shall ensure that the other Party and its participants may have the rights to IP allocated in accordance w i th the principles set out in Section I of this Annex 5. While maintaining the conditions of competition in areas affected by the Agreement, each Party shall endeavour to ensure that rights acquired pursuant to this Agreement and arrangements made under it are exercised in such a way as to encourage in particular: (i) the dissemination and use of information created, disclosed, or otherwise made available, under the Agreement; and (ii) the adoption and implementation of international standards. II. International conventions IP belonging to the Parties or to their participants shall be accorded treatment consistent with the relevant international conventions, including the TRIPS Agreement of the GATT-WTO, the Berne Convention (Paris Act 1971), and the Paris Convention (Stockholm Act 1967). A3 ANNEX B FINANCIAL RULES GOVERNING THE FINANCIAL CONTRIBUTION OF ISRAEL REFERRED TO IN ARTICLE 7 OF THIS AGREEMENT 1. Determination of the financial participation 1. 1. The Commission of the European Communities shall communicate to Israel, and shall inform the EC-Israel Research Committee, together w i th relevant background material, as soon as possible, and at the latest on 1 September, of each financial year: (a) the amounts in commitment appropriations, in the statement of expenditure of the preliminary draft budget of the European Communities corresponding to the Fourth Framework Programme; (b) the estimated amount of the contributions derived from the preliminary draft budget, corresponding to the participation of Israel in the Fourth Framework Programme. Nonetheless, in order to facilitate internal budgetary procedures, the Commission services shall provide corresponding indicative figures at the latest on 30 May of each year. 1. 2. As soon as the general budget has been finally adopted the Commission shall communicate to Israel the above amounts \n the statement of expenditure corresponding to the participation of Israel. Zo 2. Payment procedures 2. 1. The Commission shall issue, at the latest on 1 January and 15 June of each financial year, a call for funds to Israel corresponding to its contribution under this Agreement. These calls for funds shall provide, respectively, for the payment: - of six-twelfths of Israel's contribution not later than 20 January, - and six-twelfths of its contribution not later than 15 July. However, the six-twelfths, to be paid not later than 20 January are calculated on the basis of the amount set out in the statement of revenue of the preliminary draft budget: the regularization of the amount thus paid shall occur w i th the payment of the six-twelfths not later than 1 5 July. 2. 2. The contributions of Israel shall be expressed and paid in ECUs. 2. 3. Israel shall pay its contribution under this Agreement according to the schedule in paragraph 2. 1 above. Any delay in payment shall give rise to the payment of interest at a rate equal to the one-month interbank offered rate (IBOR) in ECU as quoted by the International Swap Dealers' Association on the page ISDA of Reuters. This rate shall be increased by 1,5% for each month of delay. The increased rate shall be applied to the entire period of delay. However, the interest shall be due only if the contribution is paid more than thirty days after the scheduled payment dates mentioned in paragraph 2. 1 above. 2 A 2. 4. Travel costs incurred by Israeli representatives and experts for the purposes of taking part in the work of the committees referred to in Articles 8 and 9 of this Agreement and those involved in the implementation of the Fourth Framework Programme shall be reimbursed by the Commission on the same basis as and in accordance w i th the procedures currently in force for the representatives and experts of the Member States of the European Union. 3. Conditions for the implementation 3. 1. The financial contribution of Israel to the Fourth Framework Programme in accordance with Article 7 of the Agreement shall normally remain unchanged for the financial year in question. 3. 2. The Commission, at the time of the closure of the accounts relating to each financial year (n), within the framework of the establishment of the revenue and expenditure account, shall proceed to the regularization of the accounts with respect to the participation of Israel, taking into consideration modifications which have taken place, either by transfer, cancellations, carry-overs, decommitments, or by supplementary and amending budgets during the financial year. This regularization shall occur at the time of the second payment for the year n+ 1. Further regularizations shall occur every year until July 2 0 0 2. Payments by Israel shall be credited to the Community programmes as budget receipts allocated to the appropriate budget heading in the statement of revenue of the general budget of the European Communities. ^^ The financial regulation applicable to the general budget of the European Communities shall apply to the management of the appropriations. 4. Information At the latest on 31 March of each financial year (n + 1), the statement of appropriations for the Fourth Framework Programme related to the previous financial year (n), shall be prepared and transmitted to Israel for information, according to the format of the Commission's revenue and expenditure account. l 2> ANNEX C 1. The participation of research entities established in the Community in projects of Israeli research and development programmes shall require the joint participation of at least one Israeli research entity. Proposals for such participation shall be submitted jointly w i th the Israeli research entity/ies. 2. The rights and obligations of research entities established in the Community participating in Israeli research projects within research and development programmes, and the terms and conditions applicable for the submission and evaluation of proposals and for the granting and conclusion of contracts in such projects, shall be subject to Israeli laws, regulations and government directives governing the operation of research and development programmes, as well as national security constraints where applicable, as applicable to Israeli participants and assuring equitable treatment, taking into account the nature of the cooperation between Israel and the Community in this field. 3. Depending on the nature of the project, proposals may be submitted to: (i) The Office of the Chief Scientist in the Ministry of Industry and Trade. Except for projects in the field specified in (ii) below, there are no predefined fields for projects in this research and development programme. Projects may be submitted in any field of industrial research and development; 2M (ii) The Office of the Chief Scientist in the Ministry of Industry and Trade for proposals in the fields of pre-industrial projects within the framework of academic institutions; (iii) The Ministry of Science and the Arts, for strategic research in the fields of Electro-optics, Micro-electronics, Biotechnology, Information Technology; (iv) The Ministry of Agriculture - The Fund for the Encouragement of Agricultural Research; (v) The Ministry of Energy in the fields of Energy and Earth Sciences; (vi) The Ministry of Health in the field of medical research. Israel shall regularly inform the Community and Israeli research entities of current Israeli programmes and participation opportunities for research entities established in the Community. 4. Any contractual arrangements between research entities established in the Community and Israeli entities, and/or between research entities established in the Community and Israeli government bodies shall take account of the provisions of this Annex. 2. s Hecho en Bruselas, el veinticinco de marzo de mil novecientos noventa y seis. Udfaerdiget i Bruxelles den femogtyvende marts nitten hundrede og seks og halvfems. G e s c h e h en neunzehnhundertsechsundneunzig. zu B r ù s s el am f ù nf u n d z w a n z i g s t en M â rz Eyive oriq BpuCeXXeq, OTIC, SÎKOOI névre MapTiou x ^a ewiaKÔoia evevf]vra éÇi Téoaepa. Done at Brussels on the twenty-fifth day of March in the year one thousand nine hundred and ninety-six. Fait à Bruxelles, le vingt-cinq mars mil neuf cent quatre-vingt-seize. Fatto a Bruxelles, addi' venticinque marzo millenovecentonovantasei. Gedaan te Brùssel, de vijfentwintigste maart negentienhonderd zesennegentig. Feito em Bruxelas, em vinte e cinco de Marco de mil novecentos e noventa e seis. Tehty Brysselissâ kahdentenakymmenentenâviidentenà pâivânâ maaliskuuta vuonna tuhatyhdeksànsataayhdeksânkymmentâkuusi. Som skedde i Bryssel den tjugofemte mars nittonhundranittiosex. 25 ov *nmy. "rircnn ]0"»3 cmnV 'n o vs Vo^33 mwn. çrcn o'wri rnxo wn *|Vx on» wvwi1? zç Por la Comunidad Europea For Det Europaeiske Faellesskab Fur die Europaische Gemeinschaft Ra Tnv EupconatKf) KoivÔTnra For the European Community Pour la Communauté européenne Per la Comunità europea Voor de Europese Gemeenschap Pela Comunidade Europeia Euroopan yhteisôn puolesta Pâ Europeiska gemenskapens vàgnar U^V rv-^M Wiw ni^m nbwan DW:I \ilk\ r'^^ H JOINT DECLARATION "On the occasion of the signing of the Agreement on scientific and technical cooperation the European Community and the State of Israel hereby confirm that the reference in Annex A, point 1,1 to "the rules set out to implement Article 130j of the Treaty establishing the European Community" makes the possible access by Israeli or Community entities to results emanating from projects pursuant to other international agreements to which either the Community or Israel are a party, contingent upon agreement of the other party or parties to such other international agreements". For the European Community For the Government of Israel *? FINANCIAL STATEMENT Title of operation International scientific cooperation: Agreement on scientific and cooperation with Israel technical Budget heading involved The travelling expenses of European experts and of EC officials on mission will be charged to the specific budget headings of the programmes of the Community RTD framework programme/EC part. Israel's participation: Chapter 60 (revenue), Articles B6-451 and B6-541 (expenditure) Israel's contribution to the framework programme budget will be proportionate to its GNP vis-à-vis that of the Union (see point 7. 1. 1). 3. Legal basis Decision 1110/94/EC of the Parliament and the Council of 26 April 1994. 4. Description of operation 4. 1 Specific objectives The essential aim is to stimulate RTD cooperation between the EC and Israel at the level of framework programme research programmes. 4. 2 Period covered 1996-98. Renewal arrangements are laid down in Article 12 of the Agreement. 5. Classification of expenditure 5. 1 Non-compulsory expenditure 5. 2 Differentiated appropriations 5. 3 Type of revenue involved: participation by a non-member country in the specific programmes of the framework programme in question. 29 6. Type of expenditure or revenue - Expenditure Participation in shared-cost actions: impossible to predict payments to Israel before the Agreement is implemented. 100% subsidy. (Missions in Israel by Commission officials and European experts; organization of workshops, seminars and meetings in Europe and Israel. ) - Revenue Participation by a non-member country framework programme in question. in the specific programmes of the 7 Financial impact 7. 1 Method of calculating total cost of operation (estimate) 7. 1. 1 Israel's contribution to the EC budget (estimate) GDP Israel (1993)1 = GDP EUR15 (1993)2 = % ratio - 1. 05% ECU 54. 628 billion ECU 5 184 billion EC budget 4th f. p: 1996-98 (3 years): ECU 9. 149 billion2 per year 1996 = ECU 2. 837 billion 1997 = ECU 3. 166 billion 1998 = ECU 3. 146 billion 1. 05% of which = ECU 96. 1 million (1996-98) 7. 1. 2 Expenditure on management of the Agreement (estimate) (a) Travel expenses per year EC experts' missions to Israel within the framework of 16 programmes covering the four activities: Figures provided by the International Bank for Reconstruction and Development. As a result of the enlargement and in response to the Common Position of the Council of 30. 11. 1995, the Commission has submitted a Communication to Parliament to mark its agreement to (1994-1998); SEC(95)2117 final COD(95)0092 of 7. 12. 1995. increase of 6,5 % of framework programme the proposed the 4th 3o 16 sectors x 3 projects per sector x 2 EUR experts per project = 96 experts/7 nights prices per mission: 1 return journey (around ECU 1 800) hotel expenses (ECU 100 x 7) + ECU 250 per diem x 7 ECU 1 800 ECU 700 ECU 1 750 Total ECU 4 250 total cost for 96 missions Total ECU 408 000 + 10%> margin ECU 448 800 (b) EU officials' missions to Israel (DGs I, III, VI, VII, XII, XIII, XIV, XVII) 16 missions per year (management of the agreement as a whole) (2 per DG) + 16 missions per year (1 official/programme) total: 32 missions per year - return journey Brussels-Tel Aviv cost business class Oct 95: BF 70 470 = ECU 1 815* x 32 ECU 58 080 frate in Sep 95: ECU 1 = BF 38. 8) - nights in hotel: 3 nights (ECU 100/night) = ECU 300 x 3£CU 9 600 ECU 67 680 + 10% margin ECU 74 450 Total Total 2a + 2b = ECU 448 800 + ECU 74 450 Total ECU 523 250 (c) Workshops/seminars 2/year (estimate)BF 300 000: 38. 8 = 7 732 + 10% margin = ECU 8 505 Total 2(a)(b) (c) ECU 523 250 8 505 ECU ECU 531 755 or ECU 0. 53 million/year 14 Overview: 1996 budget (ECU million - constant ecus 1995) 1997 1998 idem idem Expenditure: Experts' missions EC officials' missions Workshops 0. 53 0. 448 0. 074 0. 008 TOTAL 0. 53 7. 2 Itemized breakdown of cost Israel's financial contribution will be allocated to the various specific programmes of the framework programme in proportion to their budgets. 7. 3 Indicative schedule of appropriations (see 7. 1. 2) (Amounts expressed in constant ECU million 1995) Payment appropriations 1996 1997 1998 1999+ TOTAL Commitment appropriations 1996 1997 1998 TOTAL 0. 40 0. 10 0. 40 0. 53 0. 53 0. 53 1. 590 0. 40 0. 50 0. 03 0. 10. 0. 40 0. 53 0. 03 0. 13 0. 16 0. 53 0. 53 0. 53 1. 590 8. Fraud prevention measures There are many administrative and financial controls at each stage of the signature and implementation of research contracts. Among these controls are the following : At the stage prior to the conclusion Initial selection of proposals based on the scientific merit of the project and on the realism of research costs relative to the content, duration of the project and its potential implications. Analysis of financial details submitted by the proposers in the contract negotiation form. 3e After signature of the contract Examination of expenditure at a number of levels (financial officer, scientific officer) before payment. Internal audit performed by the Financial Controller. On-site audit, which should allow the detection of errors and other irregularities by examination of supporting documents. In order to improve the efficiency of these controls, the Commission services have established an audit unit which coordinates all controls taking place. These controls are carried out either by members of this audit unit or by audit firms with which the Commission has concluded a contract, under the supervision of personnel from this audit unit. On the spot inspections made by the Financial Controller of the Commission and by the Court of Auditors of the European Union. Elements of cost-effectiveness analysis 9. 1 Specific objectives, target population Specific objectives: The Agreement should enable Israel and the Community to derive mutual benefit from the scientific and technical progress achieved through their reciprocal research programmes, with participation by the Israeli scientific community and industry in Community research programmes and independent and non-subsidized participation in Israeli research activity by bodies established in the Community. Beneficiaries in the EU and Israel will be the scientific communities, industry and the population generally, thanks to the direct and indirect impact of cooperation. 9. 2 Grounds for the operation Community funding is indispensable as the planned cooperation forms part of the implementation of the framework programme, including the budget section: participation by Israel in the specific programmes and administrative expenditure by the European side (missions by experts and EU officials; organization of seminars in the EC and Israel). Budgetary arrangements will be based on the type of cooperation proposed (association of a non-member country in specific programmes of Community research); the arrangements are similar to those used for research programme association agreements between the Community and the EFTA States. 33 one general element of uncertainty is the extent to which Israel will actually take part in the specific programmes and how this will affect the budget. 93 Monitoring and evaluation of the operation The cooperation Agreement will be regularly evaluated by the relevant Commission departments and will be subject to one joint Community-Israel evaluation each year. Evaluation will cover: (a) Performance indicators: number of proposals put forward by Israel per specific programme compared with the number of proposals selected for funding under the programme; number of proposals put forward by Israel compared with the number of proposals selected for funding under the framework programme; number of proposals put forward under the specific programmes of the framework programme compared with the relative share (1%) of Israel's participation in those programmes; number of Israeli proposals selected for funding in the specific programmes of the framework programme compared with its relative participation in those programmes. (b) Gathering information: On the basis of data on the specific programmes of the framework programme. (c) Overall evaluation: At the end of the 4th framework programme the Commission will evaluate all cooperation activities covered by the Agreement. (d) Corrections: Through information to the relevant partners on both sides on practical arrangements for taking part in the specific programmes of the framework programme. The information will be passed on in accordance with the recommendations of the Joint Cooperation Committee. 10. Impact on administrative expenditure The Commission is not requesting any additional posts for the management of the Agreement. No officials are being specifically assigned to manage the Agreement. It will be managed by the staff authorized for the fourth framework programme. 3V ISSN 0254-1475 COM(96) 205 final DOCUMENTS EN 11 15 Catalogue number : CB-CO-96-215-EN-C ISBN 92-78-03890-3 Office for Official Publications of the European Communities L-2985 Luxembourg ^r

96/351/EC: Council Decision of 14 May 1996 concerning the conclusion of the Cooperation Agreement between the European Community and the Socialist Republic of Vietnam

http://publications.europa.eu/resource/cellar/bba73abb-00d4-472b-b979-8315d538cc1d

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L_1996136EN. 01002801. xml 7. 6. 1996    EN Official Journal of the European Communities L 136/28 COUNCIL DECISION of 14 May 1996 concerning the conclusion of the Cooperation Agreement between the European Community and the Socialist Republic of Vietnam (96/351/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 113 and 130y, in conjunction with the first sentence of Article 228 (2) and the first subparagraph of Article 228 (3) thereof, Having regard to the proposal from the Commission (1), Having regard to the opinion of the European Parliament (2), Whereas, under Article 130u of the Treaty, Community policy in the sphere of development cooperation shall foster the sustainable economic and social development of the developing countries, their smooth and gradual integration into the world economy and the campaign against poverty in those countries; Whereas the Community should approve, for the attainment of its aims in the sphere of external relations, the Cooperation Agreement between the European Community and the Socialist Republic of Vietnam, HAS DECIDED AS FOLLOWS: Article 1 The Cooperation Agreement between the European Community and the Socialist Republic of Vietnam is hereby approved on behalf of the Community. The text of this Agreement is attached to this Decision. Article 2 The President of the Council shall, on behalf of the Community, give the notification provided for in Article 20 of the Agreement. Article 3 The Commission, assisted by representatives of the Member States, shall represent the Community in the Joint Commission provided for in Article 14 of the Agreement. Article 4 This Decision shall be published in the Official Journal of the European Communities. Done at Brussels, 14 May 1996. For the Council The President E. GUZZANTI (1)  OJ No C 12, 17. 1. 1996, p. 4. (2)  OJ No C 47, 19. 2. 1996, p. 25

Proposal for a COUNCIL REGULATION (EC) extending the provisional anti-dumping duty on imports of polyester staple fibres originating in Belarus

http://publications.europa.eu/resource/cellar/41b26335-db97-4464-a4c6-827d624071d7

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 13. 05. 1996 COM(96) 207 final Proposal for a COUNCIL REGULATION (EC) extending the provisional anti-dumping duty on imports of polyester staple fibres originating in Belarus (presented by the Commission^ Explanatory Memorandum 1. Commission Regulation (EC) N° 394/96 of 4 March 1996 imposed a provisional anti-dumping duty on imports of polyester staple fibres originating in Belarus. 2. Since the examination of the facts in this case has not yet been completed, the Commission informed the exporter concerned of its intention to propose an extension of the validity of the provisional duty. The exporter raised no objections to this proposal. 3. Accordingly, pursuant to Article 11(5) of Council Regulation N° 2423/88, the Commission hereby submits a proposal for a Council Regulation extending the validity of the provisional anti-dumping duty on imports of polyester staple fibres originating in Belarus for a further period of two months. COUNCIL REGULATION (EC) Nc of. extending the provisional anti-dumping duty on imports of polyester staple fibres originating in Belarus THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) N° 384/96 of 22 December 1995 on protection against dumped imports from countries not members of the European Community1, and in particular Article 23 thereof, Having regard to Council Regulation (EEC) N° 2423/88 of 11 July 1988 on protection against dumped or subsidized imports from countries not members of the European Economic Community2, and in particular Article 11 thereof, Having regard to the proposal from the Commission, Whereas Commission Regulation (EC) N° 394/96-1 of 4 March 1996 imposed a provisional antidumping duty on imports of polyester staple fibres originating in Belarus; Whereas examination of the facts has not yet been completed and the Commission has informed the exporter known to be concerned of its intention to propose an extension of the validity of the provisional duty for an additional period of two months; Whereas the exporter have raised no objections, HAS ADOPTED THIS REGULATION: 1 O. J. N° L 56, 06. 03. 19%, p. 1. 2 O. J. N° L209, 2. 8. 1988, p. 1. Regulation as last amended by Regulation (EC) N° 522/94 (OJ N° L 66, 10. 3. 1994, p. 10) 3 QJ. N° L 54, 05. 03. 1996, p. 10 Article 1 The validity of the provisional anti-dumping duty on imports of polyester staple fibres originating in Belarus imposed by Commission Regulation (EC) N° 394/96 is hereby extended for a period of two months and shall expire on 7 September 1996. The duty shall cease to apply if, before this date, the Council adopts definitive measures or the proceeding is terminated pursuant to Article 9 of Regulation (EC) N° 384/96. Article 2 This Regulation shall enter into force on the day following its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels The Council ÏSSN 02^. •:-:"• COM(96) 207 final EN m u Catalogue number ; CB-CO-96-217-EM-C ISBN 92-78-03912-8 Office for Official Publications of the European Communities L-298S Luxembourg

Proposal for a decision of the Council amending the basic Decision relating to the Leonardo programme to include Turkey among the beneficiary countries

http://publications.europa.eu/resource/cellar/c0a1e1b4-b2a6-4db9-86ff-953871f2e3c2

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 13. 05. 1996 COM(96) 199 final %/OI3()(COD) %/()13l (COD) 96/0132 (SYN) Proposal for a Decision of the European Parliament and of the Council amending the basic Decision relating to the Socrates programme to include Turkey among the beneficiary countries Proposal for a Decision of the European Parliament and of the Council amending the basic Decision relating to the third phase of the Youth for Europe programme to include Turkey among the beneficiary countries Proposal for a decision of the Council amending the basic Decision relating to the Leonardo programme to include Turkey among the beneficiary countries (presented by the Commission) Explanatory memorandum The Council Decision of 6 December 1994 establishing the Leonardo programme and the Parliament and Council Decisions of 14 March 1995 setting up the Socrates programme and the Youth for Europe programme (third phase) pave the way for opening up these programmes to the associated countries but make no mention of the Republic of Turkey. At the Association Council meeting held in Luxembourg on 30 October 1995, Turkey asked to be allowed to participate in European programmes open to other associated countries, notably the Leonardo, Socrates, and Youth for Europe programmes in the field of education, training and youth. In response, the Council said it would continue looking at Turkey's requests in a constructive spirit and would let it know the outcome of its examination as soon as possible. The Commission considers that against the background of the final phase of the EC- Turkey customs union which entered into force on 31 December 1995, Turkey's participation in these programmes is in the Community's interest. Turkey's participation will enable beneficiaries in the Community, in particular students, university staff and young people, to establish closer links with their opposite numbers in Turkey in the fields in these of education, programmes will help strengthen democracy and respect for human rights in that country. training and youth. Furthermore, Turkey's participation Turkey's financial contribution would be made in the same way as for the other associated countries, i. e. either through a direct contribution from Turkey or by using funds earmarked for financial cooperation with Turkey (or a combination of the two). In the latter case, the Commission will in due course propose that the budgetary authority create a new budget item, with a legal basis, financed from the said funds for financial cooperation. financial assistance programme (ECU 375 million) linked to the entry into force of the agreement on customs union and Turkey's share in the context of the MEDA programme. The size of the budget item will depend on the outcome of negotiations with Turkey for an agreement on the budget necessary for its participation. That cooperation comprises a Accordingly, the Commission recommends to the Council that it adopt an amendment to the basic Decisions relating to these programmes so that the Republic of Turkey can be included among the beneficiary states. * Proposal for a Decision of the European Parliament and of the Council 96/0130 (COD) amending the basic Decision relating to the Socrates programme to include Turkey among the beneficiary countries THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 126 and 127 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, Having regard to the opinion of the Committee of the Regions, Acting in accordance with the procedure referred to in Article 189b of the Treaty, Having regard to Decision No 819/95/EC of the European Parliament and of the Council of 14 March 1995 establishing the Community action programme Socrates, Whereas Turkey is an associated country whose links with the Community have been substantially bolstered with the entry into force of the final phase of customs union; Whereas the economic and trade links instituted by the customs union should be strengthened by closer cooperation in the field of education, training and youth, HAVE DECIDED AS FOLLOWS: Article 1 The second sentence of Article 7(3) of Decision 819/95/EC of the European Parliament and of the Council of 14 March 1995 shall be replaced by the following: "This programme shall be open to the participation of Cyprus and Malta on the basis of additional appropriations in accordance with the same rules as apply to the EFT A countries and Turkey following procedures to be agreed with the countries in question. " Article 2 This Decision shall enter into force on the day of its publication in the Official Journal of the European Communities. 3 Proposal for a Decision of the European Parliament and of the Council 96/0i 31 (COD) amending the basic Decision relating to the third phase of the Youth for Europe programme to include Turkey among the beneficiary countries THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 126 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, Having regard to the opinion of the Committee of the Regions, Acting in accordance with the procedure referred to in Article 189b of the Treaty, Having regard to Decision No 818/95/EC of the European Parliament and of the Council of 14 March 1995 adopting for Europe programme, third phase of the Youth the Whereas Turkey is an associated country whose links with the Community have been substantially bolstered with the entry into force of the final phase of customs union; Whereas the economic and trade links instituted by the customs union should be strengthened by closer cooperation in the field of education, training and youth, HAVE DECIDED AS FOLLOWS: Article 1 The second sentence of Article 7(4) of Decision 818/95/EC of the European Parliament and of the Council of 14 March 1995 shall be replaced by the following: " This programme shall be open to the participation of Cyprus and Malta on the basis of additional appropriations under the same rules as apply to the EFJA countries and Turkey, in accordance with procedures to be agreed on with those countries. " Article 2 This Decision shall enter into force on the day of its publication in the Official Journal of the European Communities. 1+ Proposai for a decision of the Council %/OI32 (SYN) amending the basic Decision relating to the Leonardo programme to include Turkey among the beneficiary countries THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 127 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, Having regard to the opinion of the Committee of the Regions, Acting in accordance with the procedure referred to in Article 189c of the Treaty, Having regard to Decision No 94/819/EC of the European Parliament and of the Council of 6 December 1994 establishing an action programme for the implementation of a European Community training policy, Whereas Turkey is an associated country whose links with the Community have been substantially bolstered with the entry into force of the final phase of customs union; Whereas the economic and trade links instituted by the customs union should be strengthened by closer cooperation in the field of education, training and youth, HAVE DECIDED AS FOLLOWS: Article 1 Article 9(2) of Decision 94/819/KC of 6 December 1994 shall be replaced by the following: "This programme shall be opened up to the participation of Cyprus and Malta on the basis of additional appropriations in accordance with the same rules as those applied to the EFT A countries and Turkey, in accordance with procedures to be agreed on with those countries. " Article 2 This Decision shall enter into force on the day of its publication in the Official Journal of the European Communities. FINANCIAL STATEMENT BUDGET HEADING B7-4035 TITLE OF OPERATION Turkish participation in a number of Community programmes Appropriations authorized 1996 Commitments 1 Payments 2 Appropriations requested 1997 Commitments Payments 4 3 ECU million % variation Commitments 5-3/1 Payments 6-4/2 LEGAL BASIS The Commission will ask the budgetary authority to create this specific budget heading, which will be given a legal basis. DESCRIPTION OF OPERATION 4. 1 Overall objective In the final phase of creation of the EC-Turkey customs union, which started on 31 December 1995, Turkey's participation in these programmes will be in the Community's interest. Beneficiaries of the programmes in the Community, especially students, academics and young people, will be able to establish closer links with their Turkish counterparts in the iields in the of education, training and youth. programmes will also help to strengthen democracy and the observance of human rights in Turkey itself. Turkey's participation The Community programmes of obvious interest to Turkey are those aimed at enhancing human resources: Socrates, Leonardo, Youth for Europe III. These programmes are designed to help build up a large open area for education and vocational training and develop high quality education, in particular through exchanges in the widest sense of the term. 4. 2 Period covered Indefinite CLASSIFICATION OF EXPENDITURE OR REVENUE 5. 1 Non-compulsory expenditure 5. 2 Differentiated appropriations 5. 3 Type of revenue involved: none TYPE OF EXPENDITURE OR REVENUE 100% grant Grant aid for cofmancing Should the operation prove to be an economic success, is there provision for all or part of the Community contribution to be reimbursed? Will the proposed operation cause any change in the level of revenue? If so, what sort of change and what type of revenue is involved? FINANCIAL IMPACT Turkey will make its financial contribution in the same way as other associated countries, namely by making a direct contribution or by allocating funds provided for financial cooperation (or a mix of the two). 7. 1 Itemised breakdown of cost Breakdown 1996 budget PDB 1997 % variation EC/ECU million TOTAL 8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN All contracts, agreements and legal undertakings entered into by the Commission provide for the possibility of on-the-spot checks by the Commission itself or the Court of Auditors. In addition, on the beneficiaries' side, operations must be accompanied by reports and financial statements, which are then evaluated in terms of the activities carried out and the eligibility of the expenditure in accordance with the objectives of Community expenditure. The anti-fraud provisions of the basic budgetary headings are applicable following adjustments for Turkey's situation. 9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 9. 1 Quantifiable specific objectives and target population - Specific objectives: links with the overall objective Turkey's participation in these programmes will enable Community participants in these programmes , above all students, academics and young people, to establish closer links with their Turkish counterparts. Furthermore, one of the aims of closer relations with Turkey, which are in the process of being created thanks to customs union, is to ensure that Turkey is continues on the path of greater democratization, stricter observance of fundamental human rights and a greater role for civil society in the country's development. Cooperation in the fields of education, training and youth will further this process. Target population: distinguish as applicable for each objective; indicate the end-beneficiaries of the intermediaries involved. financial contribution and the Community's Mainly students, academics and young people The intermediaries will usually be teaching establishments, above all universities and other institutions of higher education. 9. 2 Grounds for the operation - Need for Community financial aid For reasons of economies of scale and economic and social cohesion and, above all, because the EU is a catalyst for the aid that the Member States could offer individually. - Choice of ways and means Spin-offs Closer economic relations with Turkey: economic and social development Main factors of uncertainty which could affect the specific results of the operation 9. 3 Monitoring and evaluation of the operation Performance indicators * number of students, academics and young people involved in the programmes 8 * the extent to which Turkey's image is enhanced in the European Union and vice versa * the establishment of sounder and more numerous links between Turkish and EU citizens * the EU's influence on the career of the Turkish participants Details and frequency of planned evaluations The projects will be monitored and evaluated at regular intervals by both the implementing agency and the Commission. Assessment of the results obtained The method of assessment used for basic budget headings will also be used for this heading, with the necessary adjustments for the situation of Turkey. STATEMENT RELATING TO SMALL AND MEDIUM-SIZED ENTERPRISES (SME) The opening of the programmes to Turkey will have a positive effect on SME owing to the numerous contacts that can be made and developed, chiefly in the field of vocational training. AD ISSN 0254-1475 COM(96) 199 final DOCUMENTS EN 11 M Catalogue number : CB-CO96-208-EN-C ÏSBN92-78-CB571-8 Office for Official Publications of the European Communities L-29S5 Luxembourg 4t

Amended proposal for a COUNCIL REGULATION (EC) on the common organization of the market in fruit and vegetables

http://publications.europa.eu/resource/cellar/b0d7690d-d9ba-446b-838b-7e21099f3fe2

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* -A. "&' vr "if if <P DEMISSION OF THE EUROPEAN COMMUNITIES Brussels, 13. 05. 19% COM<%) 177 iinaS 96/0120(CNS) Proposal for a COUNCIL REGULATION (EC) introducing a Community aid scheme for producers of certain citrus fruits (presented by the Commission) Amended proposal for a COUNCIL REGULATION (EC) on the common organization of the market in fruit and vegetables (presented by the Commission pursuant to Articie 189 a (2) of the EC-Treaty) EXPLANATORY MEMORANDUM Re: Proposal for a Council Regulation introducing a Community aid scheme for producers of certain citrus fruits At the Council meeting of 10 November 1995, the Commission undertook to complete as soon as possible its proposals for aid to producers of certain citrus fruit, in the spirit of the declaration by the joint Council of 20 September 1993. In the communication from the Commission to the Council and Parliament of 27 July 1994, the Commission analysed the present situation in the sector of fresh and processed citrus fruits. Following the line taken in that communication, the Commission proposes a two-fold objective: on the production side, to prevent continued systematic recourse to processing as an alternative outlet for fruit originally destined for the fresh market, on the processing industry side, to enable the industry to move into new products (freshly squeezed juice and pasteurized juice), the only products where the Community has any chance of being competitive in relation to third countries. In order to attain these objectives, the Commission is envisaging a flexible system based on processing contracts, signed by processors and producers' organizations. The price of the raw materials, which must meet certain minimum conditions, will be freely established as a function of supply and demand. Flat-rate aid will be granted to producers' organizations for raw material supplied to the industry, in order to: support producers' incomes, facilitate negotiations with the industry, and promote the concentration of production through producers' organizations. To ensure that recipients of the aid take a responsible attitude to their output, the aid is adjusted whenever the thresholds are exceeded. X Proposal for a COUNCIL REGULATION (EC) No. /96 of introducing a Community aid scheme for producers of certain citrus fruits THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament, Having regard to the opinion of the Economic and Social Committee, Whereas the present situation in the citrus fruit industry continues to be marked by serious difficulties in the disposal of Community production; whereas these difficulties are attributable mainly to the varietal aspects of production, production surpluses and marketing conditions for fresh and processed citrus fruit; Whereas the Community supply of oranges, mandarins and lemons continues to keep pace with demand on the market in fresh fruit for some varieties of products; whereas production of Clementines has increased considerably in recent years to the extent that surpluses are being created; whereas satsumas, which are being replaced by clémentines on the market in fresh fruit, are also in surplus; whereas a system of support for producers should, therefore, provide an incentive for the disposal of the citrus fruit concerned with a view to their processing into juice and segments; Whereas it seems appropriate to implement this system by means of contracts concluded between processors and producers' organizations in order to ensure, firstly, regular supplies for processing industries and, secondly, effective checks on the products to be delivered; whereas the system should guarantee supplies to consumers at reasonable prices and quality; Whereas, in order to encourage producers to present their products for processing rather than withdrawal, provision should be made for the grant of an aid to producers' organizations which deliver citrus fruit to the processing industries; whereas the amounts of the aid should be established for a transitional period of five years after which they should be a fixed sum; whereas those amounts should be calculated on the basis of the ratio existing in 1995/96 between the financial compensation and the minimum price and be subject to an annual gradual reduction over the transitional period, except in the case of satsumas and clémentines, in order to meet the general objectives of the common organization of the market in fresh products; 3 Whereas the production of citrus fruit features structural shortcomings in terms of marketing which are demonstrated by the excessive dispersal of supply; whereas therefore individual producers who deliver all their citrus fruit for processing through producers' organizations should qualify under the system; whereas for that reason and in order to ensure equality of treatment with the fresh products sector, provision should be made for the amount of the aid to be reduced; whereas for the same structural reasons, it would be justified to grant an increase in the aid for producers' organizations which conclude a contract for more than one year and in respect of minimum quantities; Whereas the quantities that may be withdrawn from the market are limited by the rules governing fresh products; whereas in cases where production is rising, steps should be taken to prevent systematic recourse to processing as an alternative outlet; whereas the fixing of a maximum quantity for processing, the overrunning of which would entail a reduction in the aid in the following marketing year, would seem to be an appropriate measure to that end; whereas maximum limits should be laid down based on the average quantity eligible for financial compensation during a reference period, HAS ADOPTED THIS REGULATION: Article 1 A Community aid scheme for producers' organisations which deliver for processing certain citrus fruits harvested in the Community is hereby established. The scheme shall cover: (a) oranges, mandarins, clémentines and lemons processed into juice; (b) satsumas and clémentines processed into segments. Article 2 1. 2. 3. The scheme referred to in Article 1 shall be based on contracts between, on the one hand, producers' organizations recognized or provisionally admitted under Regulation (EC) No /96 and, on the other, processors or legally constituted associations or unions of processors. Such contracts shall be concluded before a specified date and for a minimum duration determined in accordance with the procedure laid down in Article 45 of Regulation (EC) No /96. They must specify the quantities to which they relate, the phasing of deliveries to processors and the prices to be paid to producers' organizations. Once they have been concluded, contracts shall be sent to the authorities in the Member States concerned responsible for carrying out qualitative and quantitative checks on: (a) products delivered to processors by producers' organizations; (b) the actual processing of the quantities delivered. V Article 3 1. 2. Aid shall be granted to producers' organizations for the quantities delivered for processing under the contracts referred to in Article 2. The amount of the aid referred to in paragraph 1 shall be that fixed in Table 1 of the Annex hereto. However: (a) where the contract referred to in Article 2(1) covers more than one marketing year and a minimum quantity of citrus fruit, to be determined in accordance with the procedure laid down in Article 45 of Regulation (EC) No /96, the amount of the aid referred to in paragraph 1 shall be that indicated in Table 2 of the Annex hereto; (b) for quantities delivered under the provisions of Article 4, the amount of the aid referred to in paragraph 1 shall be that indicated in Table 3 of the Annex hereto. 3. The aid shall be paid by the Member States to producers' organizations which apply therefor as soon as the inspecting authorities of the Member State in which processing is undertaken have established that the products covered by the contracts have been delivered to the processing industry. The amount of the aid received by producers' organisations shall be paid to associated producers. Article 4 Producers' organizations shall pass on the benefit of the aid scheme defined in this Regulation to individual producers who are not members of any such organizations who undertake to market through them their entire output of citrus fruit intended for processing and who pay a subscription to cover the extra management costs borne by the organization because of the application of this provision. Where paragraph 1 is applied, (a) (b) the amount of the aid received by the producers' organization shall be paid to the individual producer concerned; the quantities supplied by individual producers may not be included in the multiannual contracts referred to in Article 3(2)(a). Article 5 Processing thresholds shall be established for oranges, for lemons, and for mandarins, clémentines and satsumas taken together^ as follows: oranges lemons mandarins, clémentines and satsumas 1 209 000 tonnes 444 000 tonnes 265 000 tonnes. X If, in the course of a given marketing year, the quantities of oranges, of lemons, and of mandarins, satsumas and clémentines delivered for processing under the scheme provided for in this Regulation exceed the processing thresholds established in paragraph 1, the aid fixed in accordance with Article 3(2) for the products in question shall be reduced for the following marketing year by 1% per tranche of the processing threshold overrun. Overrun tranches shall be equal to 1% of the level of each threshold fixed in paragraph 1. However, in the case of oranges and lemons, any overrun of the processing threshold shall be fixed, for a given marketing year, on the basis of a period of twelve consecutive months, staggered in relation to the said marketing year. Article 6 Detailed rules for the application of this Regulation, and in particular monitoring measures and penalties, the marketing years, the minimum characteristics of the raw materials delivered for processing and the financial consequences of exceeding the threshold shall be adopted in accordance with the procedure laid down in Article 45 of Regulation (EC) No /96. Article 7 The measures provided for in this Regulation shall be regarded as intervention intended to stabilize the agricultural markets within the meaning of Article 3 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy1. They shall be financed by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF). Regulations (EEC) No 1035/77 and (EC) No 3119/93 are hereby repealed. Article 8 Article 9 This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. It shall apply from the 1996/97 marketing year. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council 1 OJ No L 94, 2 8. 4. 1 9 7 0, p. 13 ANNEX AMOUNTS OF THE AID REFERRED TO IN ARTICLE 3(1) 1996/97 marketing year 1997/98 marketing year 1998/99 marketing year 1999/2000 marketing year ECU/100 kg net 2000/2001 and subsequent marketing years 9,36 10,03 11,31 8,92 7,34 9,25 9,75 10,71 8,92 7. 74 9,14 9,47 10,31 8,92 8,13 9,03 9,20 9,51 8,92 8,52 8,92 8,92 8,92 8,92 8,92 Table 1 Lemons Oranges Mandarins Clementines Satsumas Table 2 1996/97 marketing year 1997/98 marketing year 1998/99 marketing year 1999/2000 marketing year V Lemons Oranges Mandarins Clementines Satsumas 10,76 11,54 13,00 10,26 8,44 10,64 11,22 12,31 10,26 8,90 10,51 10,90 11,63 10,26 9,35 10,38 10,58 10,94 10,26 9,80 Table 3 Lemons Oranges Mandarins Clementines Satsumas 1996/97 marketing year 1997/98 marketing year 1998/99 marketing year 1999/2000 marketing year 8,42 9,03 10,17 8,03 6,61 8,32 8,78 9,64 8,03 6,96 8,22 8,53 9,10 8,03 7,32 8,13 8,28 8,56 8,03 7,67 ECU/300 kg net 2000/2001 and subsequent marketing years 10,26 10,26 10,26 10,26 10,26 saxegsss P 'ii n. i. M. ,, i. i. ' ECU/100 kg net 2000/2001 and subsequent marketing years 8. 03 8,03 8,03 8,03 8,03 ilAli LUU. » llllJLU_l. Lljm-LLJl _•• ' f r == FINANCIAL STATEMENT BUDGET HEADING: 1503 Date: APPROPRIATIONS: ECU 208 million TITLE: Proposal for a Council Regulation introducing a Community aid scheme for producers of certain citrus fruits. LEGAL BASIS: Article 43 of the Treaty AIMS: Reform of the rules governing the processing of certain citrus fruit alongside the reform of the common market organization in fresh and processed fruit and vegetables 5. FINANCIAL IMPLICATIONS: 5. 0. EXPENDITURE - CHARGED TO THE EC BUDGET (REFUNDS/INTERVENTION) - NATIONAL AUTHORITIES - OTHER 5. 1. REVENUE - OWN RESOURCES OF THE EC (LEVIES/CUSTOMS DUTIES) - NATIONAL 5. 0. 1. 5. 1. 1. ESTIMATED EXPENDITURE ESTIMATED REVENUE 5. 2. METHOD OF CALCULATION: See Annex. PERIOD OF 12 MONTHS (ECU million) CURRENT FINANCIAL YEAR (96) (ECU million) FOLLOWING FINANCIAL YEAR (97) (ECU million) 184. 1 1998 1999 2000 2001 ECU 181. 6 m ECU 179. 2 m ECU 177. 0 m ECU 174. 5 m 6. 0. 6. 1. 6. 2. 6. 3. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? WILL A SUPPLEMENTARY BUDGET BE NECESSARY? WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/N© YES/Wi ¥6S/NO YES/NQ OBSERVATIONS ? Citrus fruits I. Processed quantities- statistics and analysis (t) 89/90 90/91 91/92 92/93 93/94 94/95 Thresholds Tranches average for 5 marketing years 440848 386740 337729 473704 501490 474264 443889 444000 1302730 827983 1462609 1158254 1041507 1331979 1208618 1209000 88309 37585 36965 86530 75758 55797 51657 40653. 59613 40833 91143 57463 60000 58000 143364 155834 149142 146163 125994 146223 147000 4440 12090 600 580 1470 2012836 1483280 2091807 1631958 1781650 2064033 1915806 1918000 Lemons Oranges Mandarins Clementines Satsumas Total citrus fruit 2. Quantities used for the calculations and forecast trend (t) 1995/96 (Preliminary draft budget 1996) Quantities used PO - annual 1996/97 PO - multiannual 67% Non- associated producers 33% 1997/98 PO - annual PO - multiannual Non-associated producers 69% 31% 75% 25% 72% 28% 450000 444000 1150000 1209000 50000 50000 60000 58000 160000 147000 223110 607523 30150 29145 73868 74370 202508 10050 9715 24623 146520 398970 19800 19140 48510 220579 600631 29808 28814 73030 85781 233579 11592 11206 28400 137640 374790 18600 17980 45570 1860000 1918000 963795 321265 632940 952862 370558 594580 PO-annual 1998/99 PO- multiannual 71% 1999/2000 2000/01 Non- associalcd producers 29% PO - annual PO - multiannual 73% Non- associated producers 27% PO - annual multiannual PO - 75% Non- associated producers 25% 68% 32% 63% 37% 60% 40% 214363 583705 28968 28002 70972 100877 274685 13632 13178 33398 128760 204196 350610 556019 17400 27594 16820 26674 42630 67605 119924 326551 16206 15666 39705 119880 199800 133200 326430 544050 362700 16200 27000 15660 26100 18000 17400 39690 66150 44100 111000 302250 15000 14500 36750 926010 435770 556220 882088 518052 517860 863100 575400 479500 A dynamic trend has been assumed for the situation, both in response to the probable trend in concentration of supplies and given the prospect that aids will increase- the proportion due to PO's will increase gradually and, within that figure, the percentage of multiannual contracts will also increase. The assumption with regard to quantitiesis based on complete realization of the thresholds and compliance with them. Lemons Oranges Mandarins Clementines Satsumas Total citrus fruit Lemons Oranges Mandarins Clementines Satsumas Total Citrus fruit Note: 9 Citrus fruits Fixed aids (ECU/t) Aid to processors - ECU/t Marketing year 1995/96 - ex reform Lemons Oranges Mandarins Clementines Satsumas IWV% 104,8 111,0 133,0 95,3 48,3 Note: The aids were fixed by Regulation (EEC) No 3318/93 for satsumas (for three marketing years), by Regulation (EC) No 1604/95 for lemons and by Regulation (EC) No 2803/95 for the other citrus fruits. a. Aid to PO's - with annual contracts (ECÙ/t) 1996/97 1997/98 1998/99 1999/2000 2000/01 Lemons Oranges Mandarins Clementines Satsumas 93,6 100,3 113,1 89,2 73,4 92,5 97,5 107,1 89,2 77,4 91,4 94,7 101,1 89,2 81,3 90,3 92,0 95,1 89,2 85,2 89,2 89,2 89,2 89,2 89,2 b. Aid to PO's - with multiannual contracts (ECU/t) 1996/97 1997/98 1998/99 1999/2000 2000/01 Lemons Oranges Mandarins Clementines Satsumas 107,6 115,4 130,0 102,6 84,4 106,4 112,2 123,1 102,6 89,0 105,1 109,0 116,3 102,6 93,5 103,8 105,8 109,4 102,6 98,0 102,6 102,6 102,6 102,6 102,6 c. Aid to PO's - with non-associated producers (ECU/t) 1996/97 1997/98 1998/99 1999/2000 2000/01 Lemons Oranges Mandarins Clementines Satsumas 84,2 90,3 101,7 80,3 66,1 83,2 87,8 96,4 80,3 69,6 82,2 85,3 91,0 80,3 73,2 81,3 82,8 85,6 80,3 76,7 80,3 80. 3 80,3 80,3 80,3 Note: The aids given here are those which are listed in the Annex to the draft Regulation. xCo Citrus fruit 4. 1 Cost per marketing year (ECU million) (broken down into PO's - with annual or multiannual contracts - and non-associated producers) 95/96 9é/97 97/98 ex reform Amraal Multwmnuul Non-associated Annual Mtriliiwmtial Noa-aswiciated producers producers 47,2 127,7 6,7 4,8 7,7 194,0 20>? 60,9 3,4 2,6 5,4 93,3 1,0 23,4 1,3 1,0 2,1 35,7 12,3 36,0 2,0 1,5 3,2 55,1 20,4 58,6 3,2 2,6 5,7 90,4 9,1 26,2 1,4 1,1 2,5 40,4 11,5 32,9 1,8 1,4 3,2 50,8 Lemons Oranges Mandarins Clementines Satsumas Total («itrus fruit 4. 2 Cost per marketing year (ECU million) (broken down into PO's - with annual or multiannual contracts - and non-associated producers) 1998/99 1999/2000 2000/01 Annual Multiannual Non- Annual Multiannual Annual Multiannual Non- associated producers 12,5 34,5 1,8 1,6 3,9 54,3 9,7 27,0 1,4 1,3 3,0 42,4 17,8 48,5 2,4 2,3 5,9 77,0 13,7 37,2 1,8 1,8 4,5 59,0 Non- associated producers 8,9 24,3 1,2 1,2 2,9 38,5 associated producers 10,6 29,9 1,6 1,4 3,1 46,6 10,6 29,9 1,6 1,4 3,1 46,5 18,4 51,1 2,6 2,4 5,8 80,3 Lemons Oranges Mandarins Clementines Satsumas Total citrus fruit 19,6 55,3 2,9 2,5 5,8 86,1 5. Cost per budget (ECU million) 1996 47,2 127,7 6,7 4,8 7/7 194,0 1997 41,2 120,3 6,7 5,1 10/7 184,1 1991 1999 2000 2001 41,0 117,7 6,4 5,2 U£ 181,6 40,8 115,1 6,1 5,2 \2$ 179,2 40,6 112,7 5,8 5,2 12/7 177,0 40,4 110,0 5,5 5,3 13,4 174,5 Lemons Oranges Mandarins Clementines Satsumas Total citrus fruit Note: Traditionally,expenditure for the processing of citrus fruit is charged to the financial year which corresponds to the second half of the marketing year. svt - Itj _ EXPLANATORY MEMORANDUM On 4 October 1995 the Commission presented the Council with two proposals for Regulations on the common organization of the markets in: fruit and vegetables, products processed from fruit and vegetables. At the Council meeting of 10 November 1995, the Commission undertook to send the Council a proposal for a new scheme introducing aid to the producers of certain citrus fruits. Under this new scheme, there is no lower limit on the price the processor must pay the producer. The former proposal needs to be adapted to take this into account. ~AZ Amended proposal for a Council Regulation on the common organization of the market in fruit and vegetables This proposal was presented by the Commission to the Council on 4 October 1995. /96 As a consequence of the presentation of the proposal for a Council Regulation (EC) No introducing a system of aid to producers of certain citrus fruits, the proposal on the common organization of the market in fruit and vegetables now requires the following amendments: Arfafc \$ 1. Paragraph 2(a) is replaced by the following: M(a) to finance market withdrawals on the terms of paragraph 3". 2. In paragraph 3: the introductory part of the first subparagraph is replaced by the following: "3. Use of the operational fund to finance withdrawals shall be permissible only if an operational programme has been approved by the competent national authorities. Financing shall take one of the following forms:"; point (c) is deleted; the second subparagraph is replaced by the following: "Member States may set a maximum on the compensation or supplements thus decided, at a level which shall not exceed the maximum withdrawal prices applying in the 1995/96 marketing year in accordance with Article 16(3a), Articles 16a and 16b and the first indent of Article 18(l)(a) of Regulation (EEC) No 1035/72. " stY ISSN 0254-1475 COM(96) 177 final DOCUMENTS EN 03 Catalogue number : CB-CO-96-186-EN-C ISBN 92-78-03054-6 Office for Officiai Publications of the European Communities L-2985 Luxembourg yii

Proposal for a Decision of the European Parliament and of the Council amending the basic Decision relating to the third phase of the Youth for Europe programme to include Turkey among the beneficiary countries

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 13. 05. 1996 COM(96) 199 final %/OI3()(COD) %/()13l (COD) 96/0132 (SYN) Proposal for a Decision of the European Parliament and of the Council amending the basic Decision relating to the Socrates programme to include Turkey among the beneficiary countries Proposal for a Decision of the European Parliament and of the Council amending the basic Decision relating to the third phase of the Youth for Europe programme to include Turkey among the beneficiary countries Proposal for a decision of the Council amending the basic Decision relating to the Leonardo programme to include Turkey among the beneficiary countries (presented by the Commission) Explanatory memorandum The Council Decision of 6 December 1994 establishing the Leonardo programme and the Parliament and Council Decisions of 14 March 1995 setting up the Socrates programme and the Youth for Europe programme (third phase) pave the way for opening up these programmes to the associated countries but make no mention of the Republic of Turkey. At the Association Council meeting held in Luxembourg on 30 October 1995, Turkey asked to be allowed to participate in European programmes open to other associated countries, notably the Leonardo, Socrates, and Youth for Europe programmes in the field of education, training and youth. In response, the Council said it would continue looking at Turkey's requests in a constructive spirit and would let it know the outcome of its examination as soon as possible. The Commission considers that against the background of the final phase of the EC- Turkey customs union which entered into force on 31 December 1995, Turkey's participation in these programmes is in the Community's interest. Turkey's participation will enable beneficiaries in the Community, in particular students, university staff and young people, to establish closer links with their opposite numbers in Turkey in the fields in these of education, programmes will help strengthen democracy and respect for human rights in that country. training and youth. Furthermore, Turkey's participation Turkey's financial contribution would be made in the same way as for the other associated countries, i. e. either through a direct contribution from Turkey or by using funds earmarked for financial cooperation with Turkey (or a combination of the two). In the latter case, the Commission will in due course propose that the budgetary authority create a new budget item, with a legal basis, financed from the said funds for financial cooperation. financial assistance programme (ECU 375 million) linked to the entry into force of the agreement on customs union and Turkey's share in the context of the MEDA programme. The size of the budget item will depend on the outcome of negotiations with Turkey for an agreement on the budget necessary for its participation. That cooperation comprises a Accordingly, the Commission recommends to the Council that it adopt an amendment to the basic Decisions relating to these programmes so that the Republic of Turkey can be included among the beneficiary states. * Proposal for a Decision of the European Parliament and of the Council 96/0130 (COD) amending the basic Decision relating to the Socrates programme to include Turkey among the beneficiary countries THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 126 and 127 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, Having regard to the opinion of the Committee of the Regions, Acting in accordance with the procedure referred to in Article 189b of the Treaty, Having regard to Decision No 819/95/EC of the European Parliament and of the Council of 14 March 1995 establishing the Community action programme Socrates, Whereas Turkey is an associated country whose links with the Community have been substantially bolstered with the entry into force of the final phase of customs union; Whereas the economic and trade links instituted by the customs union should be strengthened by closer cooperation in the field of education, training and youth, HAVE DECIDED AS FOLLOWS: Article 1 The second sentence of Article 7(3) of Decision 819/95/EC of the European Parliament and of the Council of 14 March 1995 shall be replaced by the following: "This programme shall be open to the participation of Cyprus and Malta on the basis of additional appropriations in accordance with the same rules as apply to the EFT A countries and Turkey following procedures to be agreed with the countries in question. " Article 2 This Decision shall enter into force on the day of its publication in the Official Journal of the European Communities. 3 Proposal for a Decision of the European Parliament and of the Council 96/0i 31 (COD) amending the basic Decision relating to the third phase of the Youth for Europe programme to include Turkey among the beneficiary countries THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 126 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, Having regard to the opinion of the Committee of the Regions, Acting in accordance with the procedure referred to in Article 189b of the Treaty, Having regard to Decision No 818/95/EC of the European Parliament and of the Council of 14 March 1995 adopting for Europe programme, third phase of the Youth the Whereas Turkey is an associated country whose links with the Community have been substantially bolstered with the entry into force of the final phase of customs union; Whereas the economic and trade links instituted by the customs union should be strengthened by closer cooperation in the field of education, training and youth, HAVE DECIDED AS FOLLOWS: Article 1 The second sentence of Article 7(4) of Decision 818/95/EC of the European Parliament and of the Council of 14 March 1995 shall be replaced by the following: " This programme shall be open to the participation of Cyprus and Malta on the basis of additional appropriations under the same rules as apply to the EFJA countries and Turkey, in accordance with procedures to be agreed on with those countries. " Article 2 This Decision shall enter into force on the day of its publication in the Official Journal of the European Communities. 1+ Proposai for a decision of the Council %/OI32 (SYN) amending the basic Decision relating to the Leonardo programme to include Turkey among the beneficiary countries THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 127 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, Having regard to the opinion of the Committee of the Regions, Acting in accordance with the procedure referred to in Article 189c of the Treaty, Having regard to Decision No 94/819/EC of the European Parliament and of the Council of 6 December 1994 establishing an action programme for the implementation of a European Community training policy, Whereas Turkey is an associated country whose links with the Community have been substantially bolstered with the entry into force of the final phase of customs union; Whereas the economic and trade links instituted by the customs union should be strengthened by closer cooperation in the field of education, training and youth, HAVE DECIDED AS FOLLOWS: Article 1 Article 9(2) of Decision 94/819/KC of 6 December 1994 shall be replaced by the following: "This programme shall be opened up to the participation of Cyprus and Malta on the basis of additional appropriations in accordance with the same rules as those applied to the EFT A countries and Turkey, in accordance with procedures to be agreed on with those countries. " Article 2 This Decision shall enter into force on the day of its publication in the Official Journal of the European Communities. FINANCIAL STATEMENT BUDGET HEADING B7-4035 TITLE OF OPERATION Turkish participation in a number of Community programmes Appropriations authorized 1996 Commitments 1 Payments 2 Appropriations requested 1997 Commitments Payments 4 3 ECU million % variation Commitments 5-3/1 Payments 6-4/2 LEGAL BASIS The Commission will ask the budgetary authority to create this specific budget heading, which will be given a legal basis. DESCRIPTION OF OPERATION 4. 1 Overall objective In the final phase of creation of the EC-Turkey customs union, which started on 31 December 1995, Turkey's participation in these programmes will be in the Community's interest. Beneficiaries of the programmes in the Community, especially students, academics and young people, will be able to establish closer links with their Turkish counterparts in the iields in the of education, training and youth. programmes will also help to strengthen democracy and the observance of human rights in Turkey itself. Turkey's participation The Community programmes of obvious interest to Turkey are those aimed at enhancing human resources: Socrates, Leonardo, Youth for Europe III. These programmes are designed to help build up a large open area for education and vocational training and develop high quality education, in particular through exchanges in the widest sense of the term. 4. 2 Period covered Indefinite CLASSIFICATION OF EXPENDITURE OR REVENUE 5. 1 Non-compulsory expenditure 5. 2 Differentiated appropriations 5. 3 Type of revenue involved: none TYPE OF EXPENDITURE OR REVENUE 100% grant Grant aid for cofmancing Should the operation prove to be an economic success, is there provision for all or part of the Community contribution to be reimbursed? Will the proposed operation cause any change in the level of revenue? If so, what sort of change and what type of revenue is involved? FINANCIAL IMPACT Turkey will make its financial contribution in the same way as other associated countries, namely by making a direct contribution or by allocating funds provided for financial cooperation (or a mix of the two). 7. 1 Itemised breakdown of cost Breakdown 1996 budget PDB 1997 % variation EC/ECU million TOTAL 8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN All contracts, agreements and legal undertakings entered into by the Commission provide for the possibility of on-the-spot checks by the Commission itself or the Court of Auditors. In addition, on the beneficiaries' side, operations must be accompanied by reports and financial statements, which are then evaluated in terms of the activities carried out and the eligibility of the expenditure in accordance with the objectives of Community expenditure. The anti-fraud provisions of the basic budgetary headings are applicable following adjustments for Turkey's situation. 9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 9. 1 Quantifiable specific objectives and target population - Specific objectives: links with the overall objective Turkey's participation in these programmes will enable Community participants in these programmes , above all students, academics and young people, to establish closer links with their Turkish counterparts. Furthermore, one of the aims of closer relations with Turkey, which are in the process of being created thanks to customs union, is to ensure that Turkey is continues on the path of greater democratization, stricter observance of fundamental human rights and a greater role for civil society in the country's development. Cooperation in the fields of education, training and youth will further this process. Target population: distinguish as applicable for each objective; indicate the end-beneficiaries of the intermediaries involved. financial contribution and the Community's Mainly students, academics and young people The intermediaries will usually be teaching establishments, above all universities and other institutions of higher education. 9. 2 Grounds for the operation - Need for Community financial aid For reasons of economies of scale and economic and social cohesion and, above all, because the EU is a catalyst for the aid that the Member States could offer individually. - Choice of ways and means Spin-offs Closer economic relations with Turkey: economic and social development Main factors of uncertainty which could affect the specific results of the operation 9. 3 Monitoring and evaluation of the operation Performance indicators * number of students, academics and young people involved in the programmes 8 * the extent to which Turkey's image is enhanced in the European Union and vice versa * the establishment of sounder and more numerous links between Turkish and EU citizens * the EU's influence on the career of the Turkish participants Details and frequency of planned evaluations The projects will be monitored and evaluated at regular intervals by both the implementing agency and the Commission. Assessment of the results obtained The method of assessment used for basic budget headings will also be used for this heading, with the necessary adjustments for the situation of Turkey. STATEMENT RELATING TO SMALL AND MEDIUM-SIZED ENTERPRISES (SME) The opening of the programmes to Turkey will have a positive effect on SME owing to the numerous contacts that can be made and developed, chiefly in the field of vocational training. AD ISSN 0254-1475 COM(96) 199 final DOCUMENTS EN 11 M Catalogue number : CB-CO96-208-EN-C ÏSBN92-78-CB571-8 Office for Official Publications of the European Communities L-29S5 Luxembourg 4t

Proposal for a Decision of the European Parliament and of the Council amending the basic Decision relating to the Socrates programme to include Turkey among the beneficiary coutries

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 13. 05. 1996 COM(96) 199 final %/OI3()(COD) %/()13l (COD) 96/0132 (SYN) Proposal for a Decision of the European Parliament and of the Council amending the basic Decision relating to the Socrates programme to include Turkey among the beneficiary countries Proposal for a Decision of the European Parliament and of the Council amending the basic Decision relating to the third phase of the Youth for Europe programme to include Turkey among the beneficiary countries Proposal for a decision of the Council amending the basic Decision relating to the Leonardo programme to include Turkey among the beneficiary countries (presented by the Commission) Explanatory memorandum The Council Decision of 6 December 1994 establishing the Leonardo programme and the Parliament and Council Decisions of 14 March 1995 setting up the Socrates programme and the Youth for Europe programme (third phase) pave the way for opening up these programmes to the associated countries but make no mention of the Republic of Turkey. At the Association Council meeting held in Luxembourg on 30 October 1995, Turkey asked to be allowed to participate in European programmes open to other associated countries, notably the Leonardo, Socrates, and Youth for Europe programmes in the field of education, training and youth. In response, the Council said it would continue looking at Turkey's requests in a constructive spirit and would let it know the outcome of its examination as soon as possible. The Commission considers that against the background of the final phase of the EC- Turkey customs union which entered into force on 31 December 1995, Turkey's participation in these programmes is in the Community's interest. Turkey's participation will enable beneficiaries in the Community, in particular students, university staff and young people, to establish closer links with their opposite numbers in Turkey in the fields in these of education, programmes will help strengthen democracy and respect for human rights in that country. training and youth. Furthermore, Turkey's participation Turkey's financial contribution would be made in the same way as for the other associated countries, i. e. either through a direct contribution from Turkey or by using funds earmarked for financial cooperation with Turkey (or a combination of the two). In the latter case, the Commission will in due course propose that the budgetary authority create a new budget item, with a legal basis, financed from the said funds for financial cooperation. financial assistance programme (ECU 375 million) linked to the entry into force of the agreement on customs union and Turkey's share in the context of the MEDA programme. The size of the budget item will depend on the outcome of negotiations with Turkey for an agreement on the budget necessary for its participation. That cooperation comprises a Accordingly, the Commission recommends to the Council that it adopt an amendment to the basic Decisions relating to these programmes so that the Republic of Turkey can be included among the beneficiary states. * Proposal for a Decision of the European Parliament and of the Council 96/0130 (COD) amending the basic Decision relating to the Socrates programme to include Turkey among the beneficiary countries THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Articles 126 and 127 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, Having regard to the opinion of the Committee of the Regions, Acting in accordance with the procedure referred to in Article 189b of the Treaty, Having regard to Decision No 819/95/EC of the European Parliament and of the Council of 14 March 1995 establishing the Community action programme Socrates, Whereas Turkey is an associated country whose links with the Community have been substantially bolstered with the entry into force of the final phase of customs union; Whereas the economic and trade links instituted by the customs union should be strengthened by closer cooperation in the field of education, training and youth, HAVE DECIDED AS FOLLOWS: Article 1 The second sentence of Article 7(3) of Decision 819/95/EC of the European Parliament and of the Council of 14 March 1995 shall be replaced by the following: "This programme shall be open to the participation of Cyprus and Malta on the basis of additional appropriations in accordance with the same rules as apply to the EFT A countries and Turkey following procedures to be agreed with the countries in question. " Article 2 This Decision shall enter into force on the day of its publication in the Official Journal of the European Communities. 3 Proposal for a Decision of the European Parliament and of the Council 96/0i 31 (COD) amending the basic Decision relating to the third phase of the Youth for Europe programme to include Turkey among the beneficiary countries THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 126 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, Having regard to the opinion of the Committee of the Regions, Acting in accordance with the procedure referred to in Article 189b of the Treaty, Having regard to Decision No 818/95/EC of the European Parliament and of the Council of 14 March 1995 adopting for Europe programme, third phase of the Youth the Whereas Turkey is an associated country whose links with the Community have been substantially bolstered with the entry into force of the final phase of customs union; Whereas the economic and trade links instituted by the customs union should be strengthened by closer cooperation in the field of education, training and youth, HAVE DECIDED AS FOLLOWS: Article 1 The second sentence of Article 7(4) of Decision 818/95/EC of the European Parliament and of the Council of 14 March 1995 shall be replaced by the following: " This programme shall be open to the participation of Cyprus and Malta on the basis of additional appropriations under the same rules as apply to the EFJA countries and Turkey, in accordance with procedures to be agreed on with those countries. " Article 2 This Decision shall enter into force on the day of its publication in the Official Journal of the European Communities. 1+ Proposai for a decision of the Council %/OI32 (SYN) amending the basic Decision relating to the Leonardo programme to include Turkey among the beneficiary countries THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 127 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, Having regard to the opinion of the Committee of the Regions, Acting in accordance with the procedure referred to in Article 189c of the Treaty, Having regard to Decision No 94/819/EC of the European Parliament and of the Council of 6 December 1994 establishing an action programme for the implementation of a European Community training policy, Whereas Turkey is an associated country whose links with the Community have been substantially bolstered with the entry into force of the final phase of customs union; Whereas the economic and trade links instituted by the customs union should be strengthened by closer cooperation in the field of education, training and youth, HAVE DECIDED AS FOLLOWS: Article 1 Article 9(2) of Decision 94/819/KC of 6 December 1994 shall be replaced by the following: "This programme shall be opened up to the participation of Cyprus and Malta on the basis of additional appropriations in accordance with the same rules as those applied to the EFT A countries and Turkey, in accordance with procedures to be agreed on with those countries. " Article 2 This Decision shall enter into force on the day of its publication in the Official Journal of the European Communities. FINANCIAL STATEMENT BUDGET HEADING B7-4035 TITLE OF OPERATION Turkish participation in a number of Community programmes Appropriations authorized 1996 Commitments 1 Payments 2 Appropriations requested 1997 Commitments Payments 4 3 ECU million % variation Commitments 5-3/1 Payments 6-4/2 LEGAL BASIS The Commission will ask the budgetary authority to create this specific budget heading, which will be given a legal basis. DESCRIPTION OF OPERATION 4. 1 Overall objective In the final phase of creation of the EC-Turkey customs union, which started on 31 December 1995, Turkey's participation in these programmes will be in the Community's interest. Beneficiaries of the programmes in the Community, especially students, academics and young people, will be able to establish closer links with their Turkish counterparts in the iields in the of education, training and youth. programmes will also help to strengthen democracy and the observance of human rights in Turkey itself. Turkey's participation The Community programmes of obvious interest to Turkey are those aimed at enhancing human resources: Socrates, Leonardo, Youth for Europe III. These programmes are designed to help build up a large open area for education and vocational training and develop high quality education, in particular through exchanges in the widest sense of the term. 4. 2 Period covered Indefinite CLASSIFICATION OF EXPENDITURE OR REVENUE 5. 1 Non-compulsory expenditure 5. 2 Differentiated appropriations 5. 3 Type of revenue involved: none TYPE OF EXPENDITURE OR REVENUE 100% grant Grant aid for cofmancing Should the operation prove to be an economic success, is there provision for all or part of the Community contribution to be reimbursed? Will the proposed operation cause any change in the level of revenue? If so, what sort of change and what type of revenue is involved? FINANCIAL IMPACT Turkey will make its financial contribution in the same way as other associated countries, namely by making a direct contribution or by allocating funds provided for financial cooperation (or a mix of the two). 7. 1 Itemised breakdown of cost Breakdown 1996 budget PDB 1997 % variation EC/ECU million TOTAL 8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN All contracts, agreements and legal undertakings entered into by the Commission provide for the possibility of on-the-spot checks by the Commission itself or the Court of Auditors. In addition, on the beneficiaries' side, operations must be accompanied by reports and financial statements, which are then evaluated in terms of the activities carried out and the eligibility of the expenditure in accordance with the objectives of Community expenditure. The anti-fraud provisions of the basic budgetary headings are applicable following adjustments for Turkey's situation. 9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 9. 1 Quantifiable specific objectives and target population - Specific objectives: links with the overall objective Turkey's participation in these programmes will enable Community participants in these programmes , above all students, academics and young people, to establish closer links with their Turkish counterparts. Furthermore, one of the aims of closer relations with Turkey, which are in the process of being created thanks to customs union, is to ensure that Turkey is continues on the path of greater democratization, stricter observance of fundamental human rights and a greater role for civil society in the country's development. Cooperation in the fields of education, training and youth will further this process. Target population: distinguish as applicable for each objective; indicate the end-beneficiaries of the intermediaries involved. financial contribution and the Community's Mainly students, academics and young people The intermediaries will usually be teaching establishments, above all universities and other institutions of higher education. 9. 2 Grounds for the operation - Need for Community financial aid For reasons of economies of scale and economic and social cohesion and, above all, because the EU is a catalyst for the aid that the Member States could offer individually. - Choice of ways and means Spin-offs Closer economic relations with Turkey: economic and social development Main factors of uncertainty which could affect the specific results of the operation 9. 3 Monitoring and evaluation of the operation Performance indicators * number of students, academics and young people involved in the programmes 8 * the extent to which Turkey's image is enhanced in the European Union and vice versa * the establishment of sounder and more numerous links between Turkish and EU citizens * the EU's influence on the career of the Turkish participants Details and frequency of planned evaluations The projects will be monitored and evaluated at regular intervals by both the implementing agency and the Commission. Assessment of the results obtained The method of assessment used for basic budget headings will also be used for this heading, with the necessary adjustments for the situation of Turkey. STATEMENT RELATING TO SMALL AND MEDIUM-SIZED ENTERPRISES (SME) The opening of the programmes to Turkey will have a positive effect on SME owing to the numerous contacts that can be made and developed, chiefly in the field of vocational training. AD ISSN 0254-1475 COM(96) 199 final DOCUMENTS EN 11 M Catalogue number : CB-CO96-208-EN-C ÏSBN92-78-CB571-8 Office for Official Publications of the European Communities L-29S5 Luxembourg 4t

Proposal for a COUNCIL REGULATION (EC) introducing a Community aid scheme for producers of certain citrus fruits

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* -A. "&' vr "if if <P DEMISSION OF THE EUROPEAN COMMUNITIES Brussels, 13. 05. 19% COM<%) 177 iinaS 96/0120(CNS) Proposal for a COUNCIL REGULATION (EC) introducing a Community aid scheme for producers of certain citrus fruits (presented by the Commission) Amended proposal for a COUNCIL REGULATION (EC) on the common organization of the market in fruit and vegetables (presented by the Commission pursuant to Articie 189 a (2) of the EC-Treaty) EXPLANATORY MEMORANDUM Re: Proposal for a Council Regulation introducing a Community aid scheme for producers of certain citrus fruits At the Council meeting of 10 November 1995, the Commission undertook to complete as soon as possible its proposals for aid to producers of certain citrus fruit, in the spirit of the declaration by the joint Council of 20 September 1993. In the communication from the Commission to the Council and Parliament of 27 July 1994, the Commission analysed the present situation in the sector of fresh and processed citrus fruits. Following the line taken in that communication, the Commission proposes a two-fold objective: on the production side, to prevent continued systematic recourse to processing as an alternative outlet for fruit originally destined for the fresh market, on the processing industry side, to enable the industry to move into new products (freshly squeezed juice and pasteurized juice), the only products where the Community has any chance of being competitive in relation to third countries. In order to attain these objectives, the Commission is envisaging a flexible system based on processing contracts, signed by processors and producers' organizations. The price of the raw materials, which must meet certain minimum conditions, will be freely established as a function of supply and demand. Flat-rate aid will be granted to producers' organizations for raw material supplied to the industry, in order to: support producers' incomes, facilitate negotiations with the industry, and promote the concentration of production through producers' organizations. To ensure that recipients of the aid take a responsible attitude to their output, the aid is adjusted whenever the thresholds are exceeded. X Proposal for a COUNCIL REGULATION (EC) No. /96 of introducing a Community aid scheme for producers of certain citrus fruits THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 43 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament, Having regard to the opinion of the Economic and Social Committee, Whereas the present situation in the citrus fruit industry continues to be marked by serious difficulties in the disposal of Community production; whereas these difficulties are attributable mainly to the varietal aspects of production, production surpluses and marketing conditions for fresh and processed citrus fruit; Whereas the Community supply of oranges, mandarins and lemons continues to keep pace with demand on the market in fresh fruit for some varieties of products; whereas production of Clementines has increased considerably in recent years to the extent that surpluses are being created; whereas satsumas, which are being replaced by clémentines on the market in fresh fruit, are also in surplus; whereas a system of support for producers should, therefore, provide an incentive for the disposal of the citrus fruit concerned with a view to their processing into juice and segments; Whereas it seems appropriate to implement this system by means of contracts concluded between processors and producers' organizations in order to ensure, firstly, regular supplies for processing industries and, secondly, effective checks on the products to be delivered; whereas the system should guarantee supplies to consumers at reasonable prices and quality; Whereas, in order to encourage producers to present their products for processing rather than withdrawal, provision should be made for the grant of an aid to producers' organizations which deliver citrus fruit to the processing industries; whereas the amounts of the aid should be established for a transitional period of five years after which they should be a fixed sum; whereas those amounts should be calculated on the basis of the ratio existing in 1995/96 between the financial compensation and the minimum price and be subject to an annual gradual reduction over the transitional period, except in the case of satsumas and clémentines, in order to meet the general objectives of the common organization of the market in fresh products; 3 Whereas the production of citrus fruit features structural shortcomings in terms of marketing which are demonstrated by the excessive dispersal of supply; whereas therefore individual producers who deliver all their citrus fruit for processing through producers' organizations should qualify under the system; whereas for that reason and in order to ensure equality of treatment with the fresh products sector, provision should be made for the amount of the aid to be reduced; whereas for the same structural reasons, it would be justified to grant an increase in the aid for producers' organizations which conclude a contract for more than one year and in respect of minimum quantities; Whereas the quantities that may be withdrawn from the market are limited by the rules governing fresh products; whereas in cases where production is rising, steps should be taken to prevent systematic recourse to processing as an alternative outlet; whereas the fixing of a maximum quantity for processing, the overrunning of which would entail a reduction in the aid in the following marketing year, would seem to be an appropriate measure to that end; whereas maximum limits should be laid down based on the average quantity eligible for financial compensation during a reference period, HAS ADOPTED THIS REGULATION: Article 1 A Community aid scheme for producers' organisations which deliver for processing certain citrus fruits harvested in the Community is hereby established. The scheme shall cover: (a) oranges, mandarins, clémentines and lemons processed into juice; (b) satsumas and clémentines processed into segments. Article 2 1. 2. 3. The scheme referred to in Article 1 shall be based on contracts between, on the one hand, producers' organizations recognized or provisionally admitted under Regulation (EC) No /96 and, on the other, processors or legally constituted associations or unions of processors. Such contracts shall be concluded before a specified date and for a minimum duration determined in accordance with the procedure laid down in Article 45 of Regulation (EC) No /96. They must specify the quantities to which they relate, the phasing of deliveries to processors and the prices to be paid to producers' organizations. Once they have been concluded, contracts shall be sent to the authorities in the Member States concerned responsible for carrying out qualitative and quantitative checks on: (a) products delivered to processors by producers' organizations; (b) the actual processing of the quantities delivered. V Article 3 1. 2. Aid shall be granted to producers' organizations for the quantities delivered for processing under the contracts referred to in Article 2. The amount of the aid referred to in paragraph 1 shall be that fixed in Table 1 of the Annex hereto. However: (a) where the contract referred to in Article 2(1) covers more than one marketing year and a minimum quantity of citrus fruit, to be determined in accordance with the procedure laid down in Article 45 of Regulation (EC) No /96, the amount of the aid referred to in paragraph 1 shall be that indicated in Table 2 of the Annex hereto; (b) for quantities delivered under the provisions of Article 4, the amount of the aid referred to in paragraph 1 shall be that indicated in Table 3 of the Annex hereto. 3. The aid shall be paid by the Member States to producers' organizations which apply therefor as soon as the inspecting authorities of the Member State in which processing is undertaken have established that the products covered by the contracts have been delivered to the processing industry. The amount of the aid received by producers' organisations shall be paid to associated producers. Article 4 Producers' organizations shall pass on the benefit of the aid scheme defined in this Regulation to individual producers who are not members of any such organizations who undertake to market through them their entire output of citrus fruit intended for processing and who pay a subscription to cover the extra management costs borne by the organization because of the application of this provision. Where paragraph 1 is applied, (a) (b) the amount of the aid received by the producers' organization shall be paid to the individual producer concerned; the quantities supplied by individual producers may not be included in the multiannual contracts referred to in Article 3(2)(a). Article 5 Processing thresholds shall be established for oranges, for lemons, and for mandarins, clémentines and satsumas taken together^ as follows: oranges lemons mandarins, clémentines and satsumas 1 209 000 tonnes 444 000 tonnes 265 000 tonnes. X If, in the course of a given marketing year, the quantities of oranges, of lemons, and of mandarins, satsumas and clémentines delivered for processing under the scheme provided for in this Regulation exceed the processing thresholds established in paragraph 1, the aid fixed in accordance with Article 3(2) for the products in question shall be reduced for the following marketing year by 1% per tranche of the processing threshold overrun. Overrun tranches shall be equal to 1% of the level of each threshold fixed in paragraph 1. However, in the case of oranges and lemons, any overrun of the processing threshold shall be fixed, for a given marketing year, on the basis of a period of twelve consecutive months, staggered in relation to the said marketing year. Article 6 Detailed rules for the application of this Regulation, and in particular monitoring measures and penalties, the marketing years, the minimum characteristics of the raw materials delivered for processing and the financial consequences of exceeding the threshold shall be adopted in accordance with the procedure laid down in Article 45 of Regulation (EC) No /96. Article 7 The measures provided for in this Regulation shall be regarded as intervention intended to stabilize the agricultural markets within the meaning of Article 3 of Council Regulation (EEC) No 729/70 of 21 April 1970 on the financing of the common agricultural policy1. They shall be financed by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (EAGGF). Regulations (EEC) No 1035/77 and (EC) No 3119/93 are hereby repealed. Article 8 Article 9 This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. It shall apply from the 1996/97 marketing year. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council 1 OJ No L 94, 2 8. 4. 1 9 7 0, p. 13 ANNEX AMOUNTS OF THE AID REFERRED TO IN ARTICLE 3(1) 1996/97 marketing year 1997/98 marketing year 1998/99 marketing year 1999/2000 marketing year ECU/100 kg net 2000/2001 and subsequent marketing years 9,36 10,03 11,31 8,92 7,34 9,25 9,75 10,71 8,92 7. 74 9,14 9,47 10,31 8,92 8,13 9,03 9,20 9,51 8,92 8,52 8,92 8,92 8,92 8,92 8,92 Table 1 Lemons Oranges Mandarins Clementines Satsumas Table 2 1996/97 marketing year 1997/98 marketing year 1998/99 marketing year 1999/2000 marketing year V Lemons Oranges Mandarins Clementines Satsumas 10,76 11,54 13,00 10,26 8,44 10,64 11,22 12,31 10,26 8,90 10,51 10,90 11,63 10,26 9,35 10,38 10,58 10,94 10,26 9,80 Table 3 Lemons Oranges Mandarins Clementines Satsumas 1996/97 marketing year 1997/98 marketing year 1998/99 marketing year 1999/2000 marketing year 8,42 9,03 10,17 8,03 6,61 8,32 8,78 9,64 8,03 6,96 8,22 8,53 9,10 8,03 7,32 8,13 8,28 8,56 8,03 7,67 ECU/300 kg net 2000/2001 and subsequent marketing years 10,26 10,26 10,26 10,26 10,26 saxegsss P 'ii n. i. M. ,, i. i. ' ECU/100 kg net 2000/2001 and subsequent marketing years 8. 03 8,03 8,03 8,03 8,03 ilAli LUU. » llllJLU_l. Lljm-LLJl _•• ' f r == FINANCIAL STATEMENT BUDGET HEADING: 1503 Date: APPROPRIATIONS: ECU 208 million TITLE: Proposal for a Council Regulation introducing a Community aid scheme for producers of certain citrus fruits. LEGAL BASIS: Article 43 of the Treaty AIMS: Reform of the rules governing the processing of certain citrus fruit alongside the reform of the common market organization in fresh and processed fruit and vegetables 5. FINANCIAL IMPLICATIONS: 5. 0. EXPENDITURE - CHARGED TO THE EC BUDGET (REFUNDS/INTERVENTION) - NATIONAL AUTHORITIES - OTHER 5. 1. REVENUE - OWN RESOURCES OF THE EC (LEVIES/CUSTOMS DUTIES) - NATIONAL 5. 0. 1. 5. 1. 1. ESTIMATED EXPENDITURE ESTIMATED REVENUE 5. 2. METHOD OF CALCULATION: See Annex. PERIOD OF 12 MONTHS (ECU million) CURRENT FINANCIAL YEAR (96) (ECU million) FOLLOWING FINANCIAL YEAR (97) (ECU million) 184. 1 1998 1999 2000 2001 ECU 181. 6 m ECU 179. 2 m ECU 177. 0 m ECU 174. 5 m 6. 0. 6. 1. 6. 2. 6. 3. CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? CAN THE PROJECT BE FINANCED BY TRANSFER BETWEEN CHAPTERS OF THE CURRENT BUDGET? WILL A SUPPLEMENTARY BUDGET BE NECESSARY? WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? YES/N© YES/Wi ¥6S/NO YES/NQ OBSERVATIONS ? Citrus fruits I. Processed quantities- statistics and analysis (t) 89/90 90/91 91/92 92/93 93/94 94/95 Thresholds Tranches average for 5 marketing years 440848 386740 337729 473704 501490 474264 443889 444000 1302730 827983 1462609 1158254 1041507 1331979 1208618 1209000 88309 37585 36965 86530 75758 55797 51657 40653. 59613 40833 91143 57463 60000 58000 143364 155834 149142 146163 125994 146223 147000 4440 12090 600 580 1470 2012836 1483280 2091807 1631958 1781650 2064033 1915806 1918000 Lemons Oranges Mandarins Clementines Satsumas Total citrus fruit 2. Quantities used for the calculations and forecast trend (t) 1995/96 (Preliminary draft budget 1996) Quantities used PO - annual 1996/97 PO - multiannual 67% Non- associated producers 33% 1997/98 PO - annual PO - multiannual Non-associated producers 69% 31% 75% 25% 72% 28% 450000 444000 1150000 1209000 50000 50000 60000 58000 160000 147000 223110 607523 30150 29145 73868 74370 202508 10050 9715 24623 146520 398970 19800 19140 48510 220579 600631 29808 28814 73030 85781 233579 11592 11206 28400 137640 374790 18600 17980 45570 1860000 1918000 963795 321265 632940 952862 370558 594580 PO-annual 1998/99 PO- multiannual 71% 1999/2000 2000/01 Non- associalcd producers 29% PO - annual PO - multiannual 73% Non- associated producers 27% PO - annual multiannual PO - 75% Non- associated producers 25% 68% 32% 63% 37% 60% 40% 214363 583705 28968 28002 70972 100877 274685 13632 13178 33398 128760 204196 350610 556019 17400 27594 16820 26674 42630 67605 119924 326551 16206 15666 39705 119880 199800 133200 326430 544050 362700 16200 27000 15660 26100 18000 17400 39690 66150 44100 111000 302250 15000 14500 36750 926010 435770 556220 882088 518052 517860 863100 575400 479500 A dynamic trend has been assumed for the situation, both in response to the probable trend in concentration of supplies and given the prospect that aids will increase- the proportion due to PO's will increase gradually and, within that figure, the percentage of multiannual contracts will also increase. The assumption with regard to quantitiesis based on complete realization of the thresholds and compliance with them. Lemons Oranges Mandarins Clementines Satsumas Total citrus fruit Lemons Oranges Mandarins Clementines Satsumas Total Citrus fruit Note: 9 Citrus fruits Fixed aids (ECU/t) Aid to processors - ECU/t Marketing year 1995/96 - ex reform Lemons Oranges Mandarins Clementines Satsumas IWV% 104,8 111,0 133,0 95,3 48,3 Note: The aids were fixed by Regulation (EEC) No 3318/93 for satsumas (for three marketing years), by Regulation (EC) No 1604/95 for lemons and by Regulation (EC) No 2803/95 for the other citrus fruits. a. Aid to PO's - with annual contracts (ECÙ/t) 1996/97 1997/98 1998/99 1999/2000 2000/01 Lemons Oranges Mandarins Clementines Satsumas 93,6 100,3 113,1 89,2 73,4 92,5 97,5 107,1 89,2 77,4 91,4 94,7 101,1 89,2 81,3 90,3 92,0 95,1 89,2 85,2 89,2 89,2 89,2 89,2 89,2 b. Aid to PO's - with multiannual contracts (ECU/t) 1996/97 1997/98 1998/99 1999/2000 2000/01 Lemons Oranges Mandarins Clementines Satsumas 107,6 115,4 130,0 102,6 84,4 106,4 112,2 123,1 102,6 89,0 105,1 109,0 116,3 102,6 93,5 103,8 105,8 109,4 102,6 98,0 102,6 102,6 102,6 102,6 102,6 c. Aid to PO's - with non-associated producers (ECU/t) 1996/97 1997/98 1998/99 1999/2000 2000/01 Lemons Oranges Mandarins Clementines Satsumas 84,2 90,3 101,7 80,3 66,1 83,2 87,8 96,4 80,3 69,6 82,2 85,3 91,0 80,3 73,2 81,3 82,8 85,6 80,3 76,7 80,3 80. 3 80,3 80,3 80,3 Note: The aids given here are those which are listed in the Annex to the draft Regulation. xCo Citrus fruit 4. 1 Cost per marketing year (ECU million) (broken down into PO's - with annual or multiannual contracts - and non-associated producers) 95/96 9é/97 97/98 ex reform Amraal Multwmnuul Non-associated Annual Mtriliiwmtial Noa-aswiciated producers producers 47,2 127,7 6,7 4,8 7,7 194,0 20>? 60,9 3,4 2,6 5,4 93,3 1,0 23,4 1,3 1,0 2,1 35,7 12,3 36,0 2,0 1,5 3,2 55,1 20,4 58,6 3,2 2,6 5,7 90,4 9,1 26,2 1,4 1,1 2,5 40,4 11,5 32,9 1,8 1,4 3,2 50,8 Lemons Oranges Mandarins Clementines Satsumas Total («itrus fruit 4. 2 Cost per marketing year (ECU million) (broken down into PO's - with annual or multiannual contracts - and non-associated producers) 1998/99 1999/2000 2000/01 Annual Multiannual Non- Annual Multiannual Annual Multiannual Non- associated producers 12,5 34,5 1,8 1,6 3,9 54,3 9,7 27,0 1,4 1,3 3,0 42,4 17,8 48,5 2,4 2,3 5,9 77,0 13,7 37,2 1,8 1,8 4,5 59,0 Non- associated producers 8,9 24,3 1,2 1,2 2,9 38,5 associated producers 10,6 29,9 1,6 1,4 3,1 46,6 10,6 29,9 1,6 1,4 3,1 46,5 18,4 51,1 2,6 2,4 5,8 80,3 Lemons Oranges Mandarins Clementines Satsumas Total citrus fruit 19,6 55,3 2,9 2,5 5,8 86,1 5. Cost per budget (ECU million) 1996 47,2 127,7 6,7 4,8 7/7 194,0 1997 41,2 120,3 6,7 5,1 10/7 184,1 1991 1999 2000 2001 41,0 117,7 6,4 5,2 U£ 181,6 40,8 115,1 6,1 5,2 \2$ 179,2 40,6 112,7 5,8 5,2 12/7 177,0 40,4 110,0 5,5 5,3 13,4 174,5 Lemons Oranges Mandarins Clementines Satsumas Total citrus fruit Note: Traditionally,expenditure for the processing of citrus fruit is charged to the financial year which corresponds to the second half of the marketing year. svt - Itj _ EXPLANATORY MEMORANDUM On 4 October 1995 the Commission presented the Council with two proposals for Regulations on the common organization of the markets in: fruit and vegetables, products processed from fruit and vegetables. At the Council meeting of 10 November 1995, the Commission undertook to send the Council a proposal for a new scheme introducing aid to the producers of certain citrus fruits. Under this new scheme, there is no lower limit on the price the processor must pay the producer. The former proposal needs to be adapted to take this into account. ~AZ Amended proposal for a Council Regulation on the common organization of the market in fruit and vegetables This proposal was presented by the Commission to the Council on 4 October 1995. /96 As a consequence of the presentation of the proposal for a Council Regulation (EC) No introducing a system of aid to producers of certain citrus fruits, the proposal on the common organization of the market in fruit and vegetables now requires the following amendments: Arfafc \$ 1. Paragraph 2(a) is replaced by the following: M(a) to finance market withdrawals on the terms of paragraph 3". 2. In paragraph 3: the introductory part of the first subparagraph is replaced by the following: "3. Use of the operational fund to finance withdrawals shall be permissible only if an operational programme has been approved by the competent national authorities. Financing shall take one of the following forms:"; point (c) is deleted; the second subparagraph is replaced by the following: "Member States may set a maximum on the compensation or supplements thus decided, at a level which shall not exceed the maximum withdrawal prices applying in the 1995/96 marketing year in accordance with Article 16(3a), Articles 16a and 16b and the first indent of Article 18(l)(a) of Regulation (EEC) No 1035/72. " stY ISSN 0254-1475 COM(96) 177 final DOCUMENTS EN 03 Catalogue number : CB-CO-96-186-EN-C ISBN 92-78-03054-6 Office for Officiai Publications of the European Communities L-2985 Luxembourg yii

Opinion of the European Monetary Institute Consultation by the Finnish Ministry of Finance under Article 109f (6) of the Treaty establishing the European Community and Article 5.3 of the Statute of the EMI on draft legislation establishing the statute of the Bank of Finland (CON/96/05)

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13th May 1996 OPINION OF THE EUROPEAN MONETARY INSTITUTE CON/96/05 Consultation by the Finnish Ministry of Finance under Article 109f (6) of the Treaty establishing the European Community and Article 5. 3 of the Statute of the EMI on draft legislation establishing the statute of the Bank of Finland. 1 On 10th April 1996 the EMI received from the Finnish Ministry of Finance a request for consultation on draft legislation establishing the Statute of the Bank of Finland (“the Act”). The documentation submitted for consultation comprises an explanatory memorandum accompanying the draft (“the Memorandum”), the Act itself and, in addition, a draft amendment of paragraph 4 of Section 4 of the Currency Act (358/93), addressing a reallocation of competences on currency matters within the decision-making bodies of the Bank of Finland (“the Amendment Act”). All documentation has been received in the English language, translated by the consulting authority, and the present opinion is issued on the basis of such translation. 2 The objective of the Bank of Finland is defined in Section 2 of the Act as follows: “to safeguard the value of money”. Article 2 of the ESCB Statute stipulates that: “(cid:1). (cid:2) the primary objective (cid:1). (cid:2) shall be to maintain price stability”. Although the EMI has received clarification from the Bank of Finland that the present wording of Section 2 of the official version of the Act reflects an identical objective to the one expressed in Article 2 of the ESCB Statute, which clarification has been duly noted, the importance of this provision mandates legal clarity and full consistency between the Act and the Treaty. 3 Section 8 of the Act is purported to introduce into domestic law the content of Article 104 of the Treaty. To avoid any potential discrepancy with that Treaty article and with Council Regulation (EC) n. 3603/93 of 13. 12. 1993, the language of Section 8 may be considered further before the enactment of the Act. EUROPEAN MONETARY INSTITUTE 2 4 Article 109e(5) of the Treaty states that “During the second stage, each Member State shall, as appropriate, start the process leading to the independence of its central bank. ” Independence of national central banks is a significant element of central banks qualifying to become an integral part of the ESCB, which needs to be accomplished before the date of establishment of the ECB and is a prerequisite to participation in monetary union. Independence may, however, be achieved through different measures, taking into account different institutional traditions in the various Member States. The Act, namely if amended as suggested in the following, is one example of several possible alternatives for a legislative framework which would further the degree of central bank independence, although additional adaptations for Stage Three may be necessary as anticipated below. (a) The Act under review mentions, in Section 1, that “The Bank of Finland [. ] is an independent institution [. ]”. The EMI welcomes such an initial legal statement, which gives a basis to Section 5, second paragraph, and may inspire the interpretation of other sections of the Act. The EMI moreover welcomes the disappearance in the Act of some sections of the current Statute which might have been seen as inconsistent with the basic principle of central bank independence required for by the Treaty. (b) Sections 12 to 14 of the Act refer to a Parliamentary Supervisory Council, a body foreseen in constitutional provisions and characterised in Section 11 as one of the Governing Bodies of the Bank of Finland. Being integrated by members of parliament, it has to be defined as a political organ. The Treaty requirement of independence in decision-making applies not only vis-à-vis Government but also in relation to any other political body, and therefore it would not be achieved if the Parliamentary Supervisory Council would have the possibility of interfering in any manner with the decisions of the Board on monetary matters. The permanency of a political body within the internal structure of the Bank would be consistent with the required level of independence to the extent that statutory tasks by such a body could not interfere with the required autonomy of the decision-making process of the central bank with respect to monetary policy issues. The EMI notes that the new list of tasks vested in the Parliamentary Supervisory Council does not explicitly include monetary powers. The EMI reads the draft text of the Act, and in particular Section 16, as implying that the list of tasks vested in the Parliamentary Supervisory Council through Section 13 is exhaustive, and draws the conclusion that the EUROPEAN MONETARY INSTITUTE 3 supreme decision-making body of the Bank in monetary matters would be the Board. Hence, Sections 6 and 7 of the Act would have to be read as implying that the exclusive responsibility for monetary policy decisions is vested with the Board. This interpretation is coincident with the explanations contained in the Memorandum. Provided that the supervisory powers of the Parliamentary Supervisory Council are limited to the tasks listed in Section 13, and further provided that these supervisory powers are without prejudice to the exclusive competence of the Board as regards monetary matters, this aspect of the projected legal architecture for the Bank of Finland would not appear to be incompatible with the letter and the spirit of the Treaty. (c) Sections 12 and 15 of the Act are drafted in a manner which does not explicitly preclude the appointment of a member of the Parliamentary Supervisory Council as member of the Board. Simultaneous membership of both the Parliamentary Supervisory Council and the Board could result in a situation where a conflict of interest may possibly arise which may hinder the required independence of the Board on monetary policy matters. (d) The second paragraph of Section 5 of the Act reads: “In carrying out its tasks related to monetary policy, the Bank of Finland may not seek or take instructions concerning its activities”. The EMI interprets the Act as providing for the exclusive responsibility of the Board on “tasks related to monetary policy”. The Board, as supreme decision- making body on monetary policy matters, should not seek nor take instructions from the Parliamentary Supervisory Council, nor from any other internal or external body or institution. Moreover, the requirement of central bank independence as specified by the Treaty addresses not only institutional independence of central banks and its decision- making bodies as collective organs, but also the personal independence of the members of such organs. To achieve more legal clarity and full consistency with Article 7 of the ESCB Statute, the language of Section 5 may be considered further before the enactment of the Act. The first paragraph of Section 5 imposes on the Bank of Finland the obligation to “cooperate with the Council of State and other authorities. ” In order to enhance the overall importance of independence and of the prohibitions contained in the second paragraph of that Section 5, it may be suggested to change the order of the two paragraphs of Section 5 and subject the obligation to cooperate with political bodies to the prohibition of seeking and taking instructions. EUROPEAN MONETARY INSTITUTE 4 (e) Under Section 13, first paragraph, indent (2), of the Act, the Parliamentary Supervisory Council is entitled to discharge the liability of the Board. To secure the independence of the Board on monetary policy decisions, it would be advisable to state that the discharge of liability of the Board cannot be refused by the Parliamentary Supervisory Council in relation to the conduct of monetary policy. (f) Section 18 of the Act provides for the compulsory dismissal of Board members, vesting upon the President of the Republic the authority for such dismissals. Article 34 of the Constitution of Finland specifies that the decisions of the President are adopted “in the Council of State on the basis of a presentation by the competent Minister”, and that such decisions require the countersignature of the presenting Minister. The institutional independence of the Bank and the personal independence of the Board members would be enhanced if such a presentation by the Minister either included a formal opinion or if it could only be effectuated upon an initial motion of the Board of the Bank of Finland. Furthermore, it is noted that the Act does not explicitly recognise the right to have the dismissal directly reviewed by a domestic court, unless this right already arises from the legislation referred to in Section 18 of the Act, or as a result of Section 40 of the Act, or otherwise due to general legislation regarding judicial safeguards in the area of administrative law. (g) The Act does not define eligibility criteria for members of the Board, nor place any limitations on other professional activities of Board members. Neither Treaty nor the ESCB/ECB Statute specifies such criteria and limitations, but these may be seen as the necessary consequence of the Treaty requirement of personal independence, which implies the avoidance of possible conflicts of interests between the Bank and other bodies, and of potential situations of external dependency. 5 The statistical regime is addressed in Sections 3 and 38 of the Act. It would be advisable that in Section 3, second paragraph, third indent of the Act the word “collection” is introduced between “provide for the” and “compilation and”. 6 The Finnish Currency Act was issued on 16th April 1993. The Amendment Act proposes to alter Article 4 of the Currency Act with the expressed purpose according to the Memorandum of substituting the Board for the Parliamentary Supervisory Council as the competent body to EUROPEAN MONETARY INSTITUTE 5 make proposals to the Council of State on the external value of the markka. The EMI welcomes this amendment as a provision which will enhance the powers of the Board as a body whose decision-making powers are not subject to political control. 7 The EMI would like to draw the attention on the fact that, according to Article 108 of the Treaty, the compatibility of the statutes of a NCB must be ensured “at the latest at the date of the establishment of the ESCB”, and that this compatibility will already be assessed in the EMI and the European Commission reports drawn up on the basis of Article 109j(1). The EMI notes that the Act is exclusively purported to adapt the statute of the Bank for Stage Two of EMU, and that it is recognised that there is a need to introduce further adaptations to allow the Bank in Stage Three “to become an integral part of the ESCB”. Although at this stage the EMI has not arrived at final conclusions on the scope of these further amendments, it may be foreseen that Sections 4, 7, 18, 19, 29, 30, 35 and 38 of the Act, as well as the mechanism for the determination of the external value of the Finnish markka and the Currency Act, might in all likelihood require further adaptations. In addition, the EMI wishes to make the following specific comments as regards other statutory requirements for the integration of the Bank in the ESCB: (a) The second paragraph of Section 5, concerning the prohibition to seek or take instructions related to monetary policy, will have to be amended for Stage Three, to avoid patent incompatibilities between the national legislation and Treaty provisions, in particular with Article 14. 3 of the ESCB/ECB Statute, and to include within its scope all ESCB tasks to which Articles 3 to 6 of the ESCB/ECB Statute refers. (b) Section 9 of the Act permits exceptionally the Bank of Finland to grant credit without adequate collateral. This provision would be, in Stage Three, inconsistent with Article 18. 1, second indent, of the ESCB Statute, which does not contemplate that possibility. Therefore, and in accordance with Article 108 of the Treaty, this provision would require to be amended for the Bank of Finland to become an integral part of the ESCB. It is matter of internal consideration whether the application of this principle is to be anticipated in Stage Two. 8 The EMI has no objection to its opinion being made public. - - - - - - -

Proposal for a COUNCIL REGULATION (EC) amending Council Regulation (EEC) No 684/92 on common rules for the international carriage of passengers by coach and bus

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 10. 05. 1996 COM(96) 190 final 96/0125 (SYN) REPORT ON THE APPLICATION OF COUNCIL REGULATION (EEC) No 684/92 OF 16 MARCH 1992 ON COMMON RULES FOR THE INTERNATIONAL CARRIAGE OF PASSENGERS BY COACH AND BUS (Presented by the Commission) Proposal for a COUNCIL REGULATION (EC) amending Council Regulation (EEC) No 684/92 on common rules for the international carriage of passengers by coach and bus (presented by the Commission) REPORT ON THE APPLICATION OF COUNCIL REGULATION (EEC) No 684/92 OF 16 MARCH 1992 ON COMMON RULES FOR THE INTERNATIONAL CARRIAGE OF PASSENGERS BY COACH AND BUS CONTENTS A. B. INTRODUCTION CONTENT OF REGULATION 684/92 Types of services (1) Regular services (2) Special regular services (3) Shuttle services (4) Occasional services (5) Own-account transport operations (6) Authorization procedure C. PROBLEMS OF APPLICATION AND INTERPRETATION 1. Scope of the Regulation in relation to third countries 2. The concept of the various services (a) Own-account transport operations (b) Urban carriage in frontier areas (Article 2(1. 2)(d)) (c) Regular services and shuttle services without accommodation 3. Procedure and time limits for granting the authorization 4. Reasons for rejecting the application (Article 7(4)(a) and (b)) D. ACTION BY THE COMMISSION - ARBITRATION (Article 7(6)) E. F. G. RELATIONS WITH NATIONAL EXPERTS AND THE TRADE EXTERNAL RELATIONS AGREEMENTS BETWEEN THE MEMBER STATES (Article 18 of the Regulation) H. TRANSPORT DOCUMENTS I. STATISTICS ON THE NUMBER OF AUTHORIZATIONS GRANTED BY THE MEMBER STATES A. INTRODUCTION Council Regulation 684/92 of 16 March 1992 on common rules for the international carriage of passengers by coach and bus, which was adopted in the run-up to completion of the internal market, laid down the conditions for applying the principle of the freedom to provide" services in the field of carriage of passengers by road and reduced to a minimum the administrative procedures involved for carriers, enabling them to become more competitive. Article 20 of Regulation 684/92 states that the Commission must report to the Council on the application of the Regulation before 1 July 1995. Before 1 January 1996, the Commission must present a proposal for a Regulation on the simplification of procedures, including - in the light of the report's conclusions - the abolition of authorizations. This report gives effect to the provisions of Article 20. B. CONTENT OF REGULATION 684/92 Regulation 684/92 on common rules for the international carriage of passengers by coach and bus constitutes the general legal framework for international carriage of passengers by coach and bus in all the Member States of the Community and, following the entry into force of the EEA Agreement, the countries of the European Economic Area. It introduced the principle of the freedom to provide services in this sector, replacing the regulations that had been in force since the end of the 1960s and beginning of the 1970s. In practice, this means that carriers are permitted to carry out international transport services between Member States without discrimination on grounds of nationality or place of establishment, if they: the conditions laid down in accordance with Community rules on are authorized in the State of establishment to undertake carriage by coach and bus; satisfy admission to the occupation of road passenger transport operator; meet legal requirements on road safety as far as the standards for drivers and vehicles are concerned. An undertaking established in one Member State may thus carry out transport services between other Member States. Types of services The Regulation defines the various passenger transport services as follows and specifies for each of them the conditions of market access: (1) Regular services Regular services are services which provide for the carriage of passengers at specified intervals along specified routes, passengers being taken up and set down at predetermined stopping points. This type of service is open to all, subject, where appropriate, to compulsory reservation. Regular services are subject to authorization in accordance with a procedure laid down in Article 7 of the Regulation. This procedure is much faster and more flexible than the arrangements under the previous rules. The authorization of the country of transit (whose territory is crossed without passengers being picked up or set down) was abolished and replaced by a simple notification of the application, with the possibility for the authorities of the country of transit to submit comments. In addition, the Regulation sets out in Article 7(4) six reasons for which an application for authorization may be rejected. However, the application of the provisions of Article 7(4) has given rise to a number of interpretation problems, which are dealt with in a special section below. (2) Special regular services Special regular services are regular services which provide for the carriage of specified categories of passengers to the exclusion of other passengers, notably the carriage of workers between home and work, school pupils and students to and from their educational institution, soldiers and their families between their state of origin and the area of their barracks and urban carriage in frontier areas. All these cases of special regular services are exempt from authorization provided that they are covered by a contract concluded between the organizer and the carrier. (3) Shuttle services Shuttle services as defined in Article 2(2) are services organized to carry groups of passengers assembled in advance by means of repeated outward and return journeys from a single area of departure to a single area of destination. These groups, made up of passengers who have completed the outward journey, are carried back to the place of departure in the course of a subsequent journey. "Area of departure" and "area of destination" mean the place where the journey begins and the place where the journey ends together with localities within a radius of 50 km. Outside the areas of departure and destination, groups may be picked up and set down respectively at up to three different places. The conditions of market access differ according to whether or not these services include accommodation: shuttle services without accommodation are subject to authorization, while those with accommodation are exempt from authorization. (4) Occasional services Occasional services are services falling neither within the definition of a regular service nor of a shuttle service. These services are described in Article 2(3. 1) and the Annex to the Regulation. The same Article provides for the category of residual occasional services, namely any service which does not fall within the definition of occasional services contained in the Regulation. Only this latter category is subject to authorization. (5) Own-account transport operations Article 2(4) of the Regulation also determines the conditions applicable to own-account transport operations. These operations, which an undertaking carries out for its own employees or a non-profit-making body for its members in connection with its social objective, are exempt from authorization and subject instead to a system of certificates in accordance with models determined by the Commission provided that: the transport activity is only an ancillary activity for the undertaking or body; the vehicles used are the property of that undertaking or body or have been obtained on deferred terms by them or have been the subject of a long-term leasing contract and are driven by a member of staff of the undertaking or body. (6) Authorization procedure Article 7 of the Regulation lays down the authorization procedure. Authorizations are issued in agreement with the competent authorities of all the Member States in whose territories passengers are picked up or set down. However, the actual authorization document is issued by the authorizing authority, i. e. the competent authority of the Member State in whose territory the place of departure is situated (one of the termini of the service) and where the application was submitted, unlike the system under the previous rules according to which the competent authorities of the Member States concerned issued an authorization to each undertaking of its nationality participating in the pool. C. PROBLEMS OF APPLICATION AND INTERPRETATION The competent authorities of the Member States are responsible for the practical application of the Regulation. In this context, the national authorities have sometimes encountered difficulties in interpreting several of its provisions. As a result, since Regulation 684/92 was adopted and entered into force, the competent authorities of several Member States and the representatives of the professional associations have asked the Commission departments for clarification of certain provisions. The Commission departments gave their legal interpretation of the questions raised without prejudice to any other future position of the Commission, stating that it was for the Court of Justice to give binding legal interpretations of Community law pursuant to Article 177 of the EC Treaty. The following are the main problems of application and interpretation of the Regulation: 1. Scope of the Regulation in relation to third countries The question of the scope of the Regulation has arisen in connection with the authorization of coach services to third countries. Article 1(2) states: "In the event of carriage from a Member State to a third country and vice-versa, this Regulation shall apply to the part of the journey on the territory of the Member State of picking up or setting down, after conclusion of the necessary agreement between the Community and the third country concerned". The Commission departments considered that this provision could be interpreted a contrario as meaning that the Regulation applies to transit through Member States to a third country in the event that there is no picking up or setting down of passengers. The problem arose in this context of the transit authorization required by the authorities of certain Member States whose territory is crossed with no picking up or setting down of passengers in the case of a regular service to a third country. Such transit authorizations may be required only from non-Community operators or where the service is provided by an undertaking established in the Community in conjunction with a firm located in a third country. The Commission departments considered that Regulation 684/92 does not apply in such a case according to Article 1(1) and (2), and the competent authorities of the Member States of transit could require a transit authorization, in conformity with the general principles of the Treaty. The Commission departments also interpreted Regulation 684/92 as meaning that passenger transport services between two Member States which involve transit on a closed-door basis through a third country, i. e. with no scope for picking up or setting down passengers, are to be considered as intra-Community transport and hence subject to the provisions of Regulation 684/92. If transit via a third country is on an open-door basis, i. e. passengers can be picked up or set down, this service is both intra-Community, since the place of departure and the final destination are within the European Community, and a service from a Member State to a third country and vice-versa (given the intermediate destinations and stops in the country of transit) within the meaning of Article 1(2) of Regulation 684/92. In this case, Community legislation applies to the intra-Community part of the service, and bilateral agreements between the Member States and the transit country plus the ASOR Agreement apply (if an occasional service is involved) to the picking up and setting down of passengers going to or coming from the third country, pending the conclusion of the necessary agreement between the Community and the third country in question. However, the application of Community rules and the ASOR Agreement to occasional services between two Member States involving transit on an open-door basis through a third country may give rise to problems, since the two sets of rules are not liberalized to the same degree. If the service in question has not been deregulated under the ASOR Agreement, an authorization from the third country of transit could be necessary for the part of the journey made on its territory. For example, an occasional service between Germany and Italy liberalized under the terms of Regulation 684/92 which picks up or sets down passengers in Switzerland will require authorization from the latter, since such picking up or setting down of passengers has not been not liberalized under the terms of the ASOR Agreement. To sum up, the bilateral agreements continue to apply in relations between Community countries and third countries, albeit subject to the obligation pursuant to Article 1(3) of Regulation 684/92 that Member States must endeavour to adapt such bilateral agreements with the principle of non-discrimination between Community carriers. to ensure compliance with third countries in order Finally, the ASOR Agreement applies between the Community, Turkey and Switzerland, since the remaining contracting parties have become members of the Community or parties to the EEA Agreement. 2. The concept of the various services (a) Own-account transport operations Own-account transport operations are regulated in Article 2(4) and Article 13 of Regulation 684/92. In response to a request from the authorities of one Member State, the Commission departments considered the case of a private individual using his or her own bus for a family holiday in another Member State. They found that this does not in principle comply with the definition of "own-account transport operation" within the meaning of the Regulation and consequently the exemption from authorization is not applicable. However, this would clearly be a disproportionate, excessively bureaucratic approach. A solution has been considered; the journey in question, which is entirely unconnected with any form of economic activity, does not come within the scope of the Regulation. The individual in question is neither an own-account carrier nor a carrier for hire or reward (Article 1). Hence this transport operation is governed solely by the provisions of the Member States applicable to the carriage of passengers. After consultation, the Commission departments decided that transport operations by a public transport undertaking which, on the occasion of a study trip, carries its own employees, should be considered as an own-account transport operation, since in this case the carriage of its own employees is merely a one-off, ancillary, non-profit-making activity which meets the conditions of Article 2(4) of Regulation 684/92. The concept of a non-profit-making body also covers non-commercial organizations using vehicles for social objectives manned by volunteer drivers. 1 (b) Urban carnage in frontier areas (Article 2(1. 2)(d) ) The Regulation regards urban carriage in frontier areas as a special regular service, the latter being defined as a service which provides for the carriage of specified categories of passengers to the exclusion of other passengers, in so far as such services are operated under the conditions specified in Article 2(1. 1). Urban carriage in frontier areas is thus characterized by its "urban", "frontier" nature, and by the fact that certain categories of passengers are carried to the exclusion of others. The Regulation does not define urban carriage in frontier areas. It merely provides that the competent authorities of the Member States concerned must act together to smooth the way for such services since, under Article 4(2) of the Regulation, they are exempt from authorization if they are covered by a contract concluded between the organizer and the carrier. The Commission departments therefore considered that a transport service is to be regarded as urban carriage in frontier areas if it meets the conditions set out above and is carried out in a conurbation situated in two or more Member States. (c) Regular services and shuttle services without accommodation Declaration of the Council and the Commission entered in the minutes of the meeting at which Regulation 684/92 was adopted. Regulation 684/92 defined several conditions for international passenger services by coach and bus, in particular regular services and shuttle services. The main differences between the two categories of service are the following: - - regular services transport individual travellers, whereas shuttle services carry previously assembled groups of passengers; in the case of shuttle services without accommodation, the groups of passengers must be brought back to the place of departure in the course of a subsequent journey, although in the framework of regular services the passengers are not obliged to purchase the return ticket. There are, therefore, a number of similarities between shuttle services and regular services, such as the relative regularity of shuttle services (. by means of repeated outward and return journeys. ) and the fact that the stops and timetables are determined in advance. It is because of these similarities that Article 4 of the Regulation has specified the same conditions of market access for shuttle services without accommodation and regular services. The authorization procedure is also the same for the two services, as are the reasons for rejection of an application for authorization set out in Article 7(4). 3. Procedure and time limits for granting authorization (a) The case of "undertakings associated" for the purpose of operating a regular service or a shuttle service without accommodation the Regulation revealed a problem concerning The application of the determination of the authorizing authority in the case of an association of undertakings for the operation of a regular passenger transport service by coach. Article 6(1) states very clearly that "applications for authorization shall be submitted to the competent authorities of the Member State in whose territory the place of departure is situated, hereinafter referred to as the "authorizing authority". In the case of regular services, the "place of departure" shall mean one of the termini". It is clear that regular services have two termini. The Regulation does not give any other indication to the effect that one of the termini of regular services takes precedence over the other from the point of view of submission and issue of the authorization. In practice, the decision to submit an application for a regular passenger service by coach in the one or other terminus is at the discretion of the undertakings concerned. In those circumstances, the Commission departments took the view that they could not accept the interpretation given by certain Member States and certain undertakings according to which the Member State on whose territory the undertaking "that manages" is established or the Member State in which the service originates is to be considered as the place of departure. The Regulation does not define the concept of "association of undertakings", so a number of approaches could be envisaged according to the possibilities offered by the various legal systems of the Member States. The Regulation does not require an association to be constituted formally, in the legal sense of the term. However, an agreement between all the enterprises in the association on the joint operation of the regular service is a minimum requirement. As-regards the method of designating the undertaking managing the operation of a regular service or a shuttle service without accommodation in the case of an association of undertakings where there is no agreement between the various members of the association, it is the responsibility of the association to reach agreement on designating the managing party. Authorization of the service could be delayed until such time as the managing undertaking is designated. The Commission departments were asked to comment on the interpretation that each undertaking belonging to the association is its "own managing party", which they rejected as being in conflict with the wording and the objective of the second paragraph of Article 5(1). The second paragraph of Article 5(1) of Regulation 684/92 states that "In the case of undertakings associated for the purpose of operating a regular service or a shuttle service, the authorization shall be issued in the names of all the undertakings. It shall be given to the undertaking that manages the operation and copies shall be given to the others. The authorization shall state the names of all the operators". Consequently Regulation 684/92 is based on the criteria of "one service, one authorization" or "one authorization for each service". They also considered that there was nothing to support the idea of the managing party having additional rights or advantages compared with the other holders of the authorization in the association. The Commission departments found that the procedure according to which undertakings applying for authorization to operate a service in association with others submit their application in parallel in their respective Member States and authorization is granted to each member of the association by its own national administration after the details have been jointly agreed, is incompatible with Articles 5 and 7 of the Regulation. (b) Article 7(2) of the Regulation states that the competent authorities of the Member States whose agreement has been requested for the authorization of a regular service have a period of two months within which to notify their decision. This period is calculated from the date of receipt of the request for an opinion. These authorities alone are aware of the exact date of receipt of the request. Efficient administration requires that this date should not be unduly far removed from the date in the request for an opinion. The solution proposed by the Commission departments is to send immediately, on receipt of the request for an opinion, an acknowledgement of receipt showing the exact date on which the request was received. The two-month period would be calculated from that date. (c) The competent authorities of Member States whose agreement is requested for the establishment of a regular coach service must notify the authorizing authority of their decision within two months from the date of receipt of the request for an opinion. If, after this time limit expires, the authorizing authority has received no reply, the authorities consulted are deemed to have given their agreement and the authorizing authority may then grant the authorization. Article 7(1) requires the authorizing authority to forward to the competent authorities of all the Member States in whose territories passengers are picked up or set down a copy of the application and of any other relevant documentation. It is often the case that the authorities of the Member States in which passengers are picked up or set down request additional information and that the two-month time limit referred to above expires before such information is provided. The Commission departments suggested on the basis of consultations with certain Member States that the authorizing authority should: - forward all the relevant information and documentation together as soon as the matter is referred to the authorities of the other Member States in accordance with Article 7(1); supply the additional information requested without delay, provided that the request for such information is justified and not merely a delaying tactic. The checks necessary for applying this Regulation (e. g. Article 7(4)(a) and (b)) must be carried out within the time limits laid down in Article 7(2) and (3). The Commission departments considered that, if the authorizing authority fails to forward the documents in good time or if an unjustified request is made by the authorities whose agreement is needed, the procedure for reaching agreement laid down in Article 7(1) and (2) has not enabled the authorizing authority to decide on the application and the matter may be referred to the Commission in accordance with Article 7(6). (d) Finally, in accordance with Article 7(6), if the procedure for reaching the agreement referred to in paragraph 1 does not enable a decision to be taken, the matter may be referred to the Commission within three months of the date of submission of the application by the transport undertaking. The matter may no longer be validly referred to the Commission on expiry of this period, as has been the case on several occasions. 4. Reasons for rejecting the application (Article 7(4)(a) and (b) (a) The competent authorities of one Member State raised a problem concerning Article 7(4)(a), first indent, which states that the application for authorization may be rejected if the applicant is unable to provide the service that is the subject the of the application with equipment directly available to him, since Regulation does not require the applicant to give an account of the equipment at his direct disposal. Article 6(3) of the Regulation states that persons applying for authorization shall provide any further information which they consider relevant or which is requested by the authorizing authority. In this context, the Commission departments suggested to applicants for authorization that they should supply the authorizing authority motu proprio with all necessary information to enable it to judge whether the equipment directly available is sufficient to perform the service which is the subject of the application. (b) Article 7(4)(b)(i) states that the application for a new authorization may also be rejected "if it is shown that the service in question would directly compromise the existence of regular services already authorized, except in cases in which the regular services in question are carried out only by a single carrier or group of carriers". Consequently, the request for new authorizations may be refused if there are already two other services operating on this'route, but proof must still be supplied that the new service would directly compromise the existence of the regular services already authorized. It is up to the competent authorities to provide this proof, rather than for the undertaking making the application to prove the existence of a new clientele. Consequently, the grounds for rejection laid down in Article 7(4)(b)(i) of Regulation 684/92 cannot be automatically and systematically invoked whenever it is discovered that two services have already been authorized for a given link. (c) The refusal of authorization on the grounds that the new service might directly compromise the existence of regular services already authorized pursuant to Article 7(4)(b)(i) has posed one of the thorniest problems of interpretation, since the Regulation does not provide clear criteria for deciding what it means. The Commission departments stressed that, for the purposes of defining this concept, account had to be taken of the principle of maintaining the economic and financial balance of regular services already authorized, so that it was necessary to ascertain whether the entry into the market of a similar new service would disturb the economic and financial balance of the undertakings in relation to the investments in the operation of the regular service in question, putting in jeopardy the very existence or economic survival of the services already authorized. (d) According to the information available to the Commission, no request for authorization has ever been rejected on the grounds stated in (b)(ii) of Article 7(4). 2 However, the concept of a "comparable rail service on the direct 10 sections concerned" in that provision was the subject of a joint declaration by the Council and Commission entered in the minutes of the Council meeting which finally adopted Regulation 684/92. According to this declaration, a "comparable rail service on the direct sections concerned" may be interpreted as a comparable service in terms of fares, frequency and duration of journey. The expression "direct sections" must be construed in the geographical sense and, in keeping with the criteria concerning comparability with rail services, does not exclude a change of vehicles or possible connections involving changes of platform. The request for new authorizations may be rejected if a comparable rail service would be seriously affected by the establishment of the new coach service, but it is necessary to provide actual proof. It is for the competent authorities to provide this proof, rather than for the undertaking making the application to prove the existence of a new clientele. Consequently, the mere fact that a comparable rail service exists for a given link cannot automatically and systematically be taken as justification for rejecting an authorization. D. ACTION BY THE COMMISSION - ARBITRATION Article 7(6) Article 7(6) of Regulation 684/92 provides that, if the procedure for reaching agreement between the competent authorities of all the Member States in whose territories passengers are picked up or set down does not enable the authorizing authority to decide on an application, the mattermay be referred to the Commission within three months of the date of submission of the application. After consulting the Member States concerned, the Commission has to take a decision within six weeks, which takes effect within 30 days of its notification to the Member States concerned. Article 14 of Regulation 517/72 already provided for the possibility of referral to the Commission in the event of disagreement between the competent authorities, although it did not specify any time limit for this procedure. The Commission took several decisions in the framework of that Regulation. Regulation 684/92, by contrast, sets very strict, short time limits. The Commission was asked to intervene officially on three occasions, but was obliged to refrain from taking a formal decision since referral in all cases was made outside the period of three months from the date of submission of the application for authorization. In spite of this, the Commission departments have always been willing, in the spirit of Article 7(6) of Regulation 684/92, to examine together with the parties concerned how an agreement might be reached, notably by organizing meetings with the responsible officials of the national administrations of the parties concerned. In some cases the Commission proposed a course of action which was accepted by the parties. Two cases referred to the Commission were satisfactorily solved, leading to an authorization issued 11 by the authorizing authority. In one case only which was still outstanding when this report was drafted, the Commission's good offices did not lead to an arrangement between the parties. The future amendment of the Regulation should allow longer time limits for referral to the Commission pursuant to Article 7(6). The Commission departments also received complaints regarding unsatisfactory application of the Regulation owing to interpretation problems on the part of the national administrations. E. RELATIONS WITH NATIONAL EXPERTS AND THE TRADE The Commission departments attach great importance to relations with the national experts responsible for applying the Regulation to international transport by coach and bus and with the trade. Meetings with the national experts have been organized annually since the entry into force of the Regulation, in July 1992, July 1993, September 1994 and in June 1995. The aim of these meetings was to gain first-hand knowledge of the problems and difficulties encountered by the national authorities responsible for implementing the Regulation in practice, and to notify all the Member States of the interpretations of the various provisions of the Regulation by the Commission departments. These exchanges of view were considered fruitful by both sides and the suggestions made by the experts have been taken into account for the purposes of amending the Regulation, particularly as regards the simplification of procedures. In addition, relations with all the national and European professional associations have been intensified; two meetings were organized with the representatives of these associations in January 1994 and September 1994 with a view to finding out the operators' problems in connection with implementation of the Regulation. The trade was also consulted at European level in September 1995 on the subject of the proposal for amendments to the Regulation. F. EXTERNAL RELATIONS As already discussed in connection with the scope of the Regulation vis-à-vis third countries, Regulation 684/92 applies in the event of carriage from a Member State to a third country and vice versa, to the part of the journey on the territory of the Member State of picking up and setting down, after conclusion of the necessary agreement between the Community and the third country in question. Article 1(3) states that "pending the conclusion of agreements between the Community and the third countries concerned, this Regulation shall not affect provisions relating to the carriage referred to in paragraph 2 contained in bilateral agreements concluded by Member States with those third countries. However, Member States shall endeavour to adapt those agreements to ensure compliance with the principle of non-discrimination between Community carriers". 12 When the Regulation was finally adopted, the Council and Commission declared that they would take the appropriate measures in conformity with the provisions of the Treaty with a view to concluding any agreements that might prove necessary between the Community and third countries for the purposes of uniform application of the Regulation. The Commission, for its part, noted with regret that the text adopted by the Council did not permit significant progress towards ensuring the freedom of services in links between Member States and third countries. The Commission, in order to comply with the obligations incumbent upon it under the Treaty, presented a recommendation for a Council Decision in December 1992 on the opening of negotiations between the Community and certain third countries in the field of carriage of goods and passengers by road. At its meeting of 7 December 1995 the Council adopted a negotiating mandate for the Commission concerning the opening of negotiations on occasional international passenger services by coach and bus. In addition, the Council decided on 14 March 1995 to authorize the Commission to negotiate an agreement between the European Community and the Swiss Confederation in the field of road and air transport which includes the carriage of passengers by coach and bus. The negotiations with Switzerland are in progress. Regulation 684/92 applies to Norway, Iceland and Liechtenstein as parties to the Agreement on the European Economic Area. Following the accession of Austria, Sweden and Finland to the Community and the application of Regulation 684/92 to the European Economic Area, the ASOR Agreement3 in fact only applies to occasional services between the Member States of the Community and Switzerland and Turkey. G. AGREEMENTS BETWEEN THE MEMBER STATES (Article 18 of the Regulation) Article 18 of the Regulation states that "Member States may conclude bilateral and multilateral agreements on the further liberalization of the services covered by this Regulation, in particular as regards the authorization system and the simplification or abolition of control documents". On the basis of this provision, the Member States of the Community and of the European Economic Area agreed to waive the obligation to carry a set of translations of the journey form in all Community languages on board the vehicle carrying out a transport service exempt from authorization. Agreement on the International Carriage of Passengers by Road by means of Occasional Coach and Bus Services, signed in Dublin on 26 May 1982. 13 Pursuant to Article 11(2), the control document consists of a journey form and a set of translations of the journey form. Article 15(1) requires the control document to be carried on the vehicle and to be presented at the request of any authorized inspecting officers. The Commission will take account of this agreement with a view to making the necessary amendments to the current text of the Regulation. In addition, the Committee of Ministers of the Benelux Economic Union adopted a Decision on 20 December 1994 laying down certain rules applicable to regular services, shuttle services and occasional services within the Benelux area. Among other things, these rules concern the possibility of granting provisional authorization for regular services without the prior agreement of the host State under certain conditions, the derogation from the condition of a group previously assembled in the case of shuttle and occasional services and exoneration from authorization for residual occasional services. H. THE TRANSPORT DOCUMENTS In implementation of Article 5(4), Article 6(2), Article 11(6) and Article 13(3), the Commission on 1 July 1992, after consulting the Member States, adopted a Regulation laying down detailed rules for the application of Council Regulation (EEC) No 684/92 as regards documents for the international carriage of passengers,4 which contains the model of a control document and rules governing its use, the model of applications for authorization, of the authorization itself and of the certificates. This Regulation applies simultaneously with the basic regulation, i. e. from 1 June 1992, although Article 11 provides for the possibility of using the models of the documents laid down in former Regulations 1016/68 and 1172/72 for a transitional period until 31 December 1993 on condition that they are ' amended, legibly, indelibly and appropriately insofar as it is necessary, in order to conform to the provisions of Regulation 684/92. The objective of this Article was to enable the Member States to print and distribute the new documents and use up stocks of old documents. Despite this additional period, however, some Member States have had difficulties in issuing the new documents at national level. In response to requests from the professional associations in the sector of international carriage of passengers by coach and bus and by the national experts, the Commission on 25 October 1993 adopted Regulation 2944/93 amending Commission Regulation (EEC) No 1839/92 with regard to control documents for shuttle services with accommodation and for occasional services,5 none of which are subject to authorization. Two significant changes were made to the new journey forms: 1. The model control document for shuttle services with accommodation and for occasional services was standardized, whereas the previous system had two separate journey forms. Commission Regulation 1839/92, OJ No L 187, 7. 7. 1992, p. 5. O J N o L 2 6 6, 27. 10. 1993, p. 2. 14 The "pictogram" system on the lines of the ASOR model journey form was introduced to make it simpler and easier to use and check by the competent officials. I STATISTICS ON THE NUMBER OF AUTHORIZATIONS GRANTED BY THE MEMBER STATES. In order to assess the extent to which Regulation 684/92 is being applied, it has to be borne in mind that to a very large extent it favours international passenger transport services not subject to authorization, i. e. occasional services. It is thus difficult to quantify this part of the Regulation given that no prior official steps are necessary. By contrast, the table below shows the number of authorizations granted by the Member States for each of the categories of international passenger transport services still subject to authorization. These figures include all the authorizations granted since the entry into force of Regulation 684/92. These figures supplied by the Member States clearly show that the number of regular services created under the present system has significantly increased, with new routes being offered that often serve peripheral areas of the Community and so promote the mobility of its citizens. However, the table also shows that certain categories of services subject to authorization provided for by the present legislation, namely shuttle services without accommodation and special regular services, are not particularly attractive to the transport undertakings. Consequently the Commission makes provision in its proposal for a Regulation amending Regulation 684/92 for abolishing the shuttle category of services and liberalizing all special regular services. Given the small number of authorizations granted for the latter by Member States, this is unlikely to disrupt the market for international coach services. Furthermore, the current legislation has a category of residual occasional services for all services that cannot be classified in the other categories. The Spanish authorities alone have granted 80 authorizations to this category, but its use is nonetheless insignificant, since the very same services can be classed in the occasional services category specified in Article 2(3. 1)(b) of Regulation 684/92. 15 TABLE ON THE NUMBER OF AUTHORIZATIONS GRANTED BY THE MEMBER STATES Number of authorizations issued under Regulation N ° 684/92 Member State (M. S. ) Regular Service Special Regular Service Shuttle Service without accommodation Residual Occasional Service Own-Account Service Situation on Belgium Denmark France Germany Greece Italy 19 22 100 76 12(3) 17 1(1) 0 0 10 0 0 Ireland 51 (4. 1) 0 (4. 2) Luxembourg Netherlands Portugal Spain 5 12 17 3 0 0 6(1. 2) 4(1. 3) 31. 12. 1994 0 5. 5. 1995 83 (1. 2) 19. 5. 1995 0 0 0 0 52 0 31. 1. 1995 27. 2. 1995 9. 3. 1995 14. 2. 1995 No answer received 17. 1. 1995 31. 3. 1995 10. 1. 1995 1 0 8(2) 1 0 0 0 0 80(5) 1 0 0 0 0 0 ' 0 0 0 0 ""* 16 Member State (M. S. ) Regular Service Special Regular Service Shuttle Service without accommodation 1 0 0 0 1 0 0 0 United Kingdom 5 0 0 1 New M. S. Austria Finland Sweden EEA Iceland Norway Residual Occasional Service 16 0 0 0 0 0 0 0 Own-Account Service Situation on 20. 2. 1995 • 16. 3. 1995 22. 2. 1995 21. 06. 1995 (1) (1. 2) (1. 3) (2) (3) (4. 1) (4. 2) (5) With the exception of a specific case of carriage of workers, all the other new special regular services were in the categories defined in Article 2(1. 2) and can be organized on the basis of an agreement concluded between the carrier and the organizer of the carriage. Non-liberalized own-account service. Liberalized own-account service. All services with the UK. 16 authorizations requested and four of them have been rejected. Regular service including special regular services defined in Article 2(1. 2). Special regular services other than those defined in Article 2(1. 2). The occasional residual services authorized are combined air/coach services that could have been included in Article 2(3. l)(b) of Regulation 684/92 and are therefore exempt from authorization. 17 PROPOSAL FOR A COUNCIL REGULATION amending Council Regulation (EEC) No 684/92 on common rules for the international carriage of passengers by coach and bus EXPLANATORY MEMORANDUM A. BACKGROUND 1. 2. The first joint action in the field of the international carriage of passengers by coach and bus dates from the 1960s, when Council Regulation No 117/66/EEC of 28 July 1966 on the introduction of common rules for the international carriage of passengers by coach and bus1 was adopted. In conformity with Articles 7 and 8 of this Regulation, common rules for regular services were laid down by Council Regulation 516/72/EEC of 28 February 1972,2 and common rules for shuttle services by Council Regulation 517/72/EEC of 28 February 1972. 3 The provisions of these two Regulations remained in force until the adoption of Council Regulation (EEC) No 684/92/EEC of 16 March 1992. 4 The latter instrument constitutes the authoritative legal framework for the international carriage of passengers by coach and bus. It lays down the conditions for applying the principle of the freedom to provide services in this sector and applies to all Member States of the Community and, following the entry into force of the EEA Agreement, the countries of the European Economic Area. In practice, it enables carriers to provide international transport services between Member States without discrimination on grounds of nationality or place of establishment, provided that they are authorized in the State of establishment to undertake carriage by coach and bus; meet the conditions laid down in accordance with Community rules on admission to the occupation of road passenger transport operator; meet the legal requirements on road safety as far as the standards for drivers and vehicles are concerned. In addition, the Regulation defines the different transport services and determines for each of them the conditions of market access. Shuttle services with accommodation, most occasional services, practically all special regular services and own-account transport operations do not require authorization. By contrast, all regular services and shuttle services without accommodation, residual occasional services, certain special regular services and certain own-account OJ, 9. 8. 1966, p. 2688. OJ L67, 20. 3. 1972, p. 13. OJ L67, 20. 3. 1972, p. 19. OJ L74, 20. 3. 1992, p. 1. transport operations are still subject to authorization. The procedure for the granting of authorizations has been simplified and, in the event of authorization being rejected, the precise reasons must be given. 4. Article 20 of Regulation 684/92 states that the Commission must report to the Council on its application before 1 July 1995. Before 1 January 1996, the Commission must present to the Council a proposal for a Regulation on the simplification of procedures including - in the light of the report's conclusions - the abolition of authorizations. 5. In response to these provisions, the Commission has drafted a new proposal for a regulation making the following amendments: abolition of the category of international shuttle services abolition of the category of residual occasional services liberalization of all occasional services liberalization of all special regular services and own-account transport operations improved wording of the definition of occasional services introduction of the Community coach licence restoration of competition between regular coach and bus services and regular rail services by deleting point (ii) of Article 7(4)(b) extension of certain time limits. B. JUSTIFICATION OF THE MEASURE AT COMMUNITY LEVEL !• Subsidiarity and proportionality (a) What are the objectives of the proposed measure with regard to the Community's obligations? This proposal aims to continue the liberalization process initiated at Community level in the field of international carriage of passengers by coach and bus. It thus reflects the progress made in completing the internal market. The fundamental objective is to implement the freedom to provide services in the transport sector by eliminating unjustified and/or excessive restrictions, in particular any discrimination against the service provider on grounds of nationality or establishment in a Member State other than that in which the service is to be provided. (b) Does competence for the proposed measure lie solely with the Community or is it shared with the Member States? This is a measure for which the Community has exclusive competence (Article 75(l)a of the Treaty). (c) What forms of action are open to the Community (recommendation, financial support, legislation, mutual recognition, etc. )? 2q This proposal sets out to amend Council Regulation (EEC) No 684/92 and thus it, too, takes the form of a Council regulation. It lays down common rules for the international carriage of passengers by coach and bus in order to prevent distortion of competition. Since a regulation is binding in all its parts and directly applicable in all Member States of the Community, it is the only legal instrument conceivable. (d) Is it absolutely necessary to adopt uniform rules or would a Directive establishing general principles and leaving implementation to the Member States be sufficient? As mentioned in (f) above, this proposal amends an existing regulation and must therefore itself take the form of a regulation. Moreover, the sector in question requires the international carriage of passengers by coach and bus to be carried out under the same conditions using the same control documents. A directive would therefore not be the appropriate instrument. H- Economic advantages of continuing the harmonization process The economic arguments in favour of greater harmonization and liberalization of the rules on international carriage of passengers by coach and bus are as follows: the new proposal for a regulation aims to simplify and clarify the current provisions. Consequently, it abolishes the "shuttle" category by assimilating shuttle services without accommodation to regular services, and shuttle services with accommodation to occasional services. In addition, the proposal aims to restore competition between regular coach and bus services and regular rail services by deleting point (ii) of Article 7(4)(b), and harmonizes and further simplifies the administrative procedures. The new standards will introduce greater flexibility and the more appropriate criteria will open up new markets. The abolition of the restrictions maintained by the current Regulation will enable the transport undertakings to optimize the management of their activities and the profitability of their vehicle fleets. It is also worth noting that, since the entry into force on 1 July 1994 of the Agreement on the European Economic Area, the application of Regulation 684/92 concerns a total population of 370 million inliabitants. It thus offers new opportunities to operators of coach and bus services. These new opportunities may generate new jobs in the transport industry. In order to avoid any distortion of competition, the proposal for a regulation lays down identical conditions of market access for transport undertakings from the European Community and the European Economic Area in conformity with the non-discrimination requirement, so avoiding imbalances between those countries which restrict access to their national market as regards non-residents and those which open it up completely to other carriers. C. EXAMINATION OF THE ARTICLES Article 1 3Q Article 1 of the proposal amends Article 2 of Regulation 684/92 as follows: Urban carriage in frontier areas Regulation 684/92 considers urban carriage in frontier areas as a special regular service, which in turn is defined as a service providing for the carriage of specified categories of passengers to the exclusion of other passengers, insofar as such services are operated under the conditions specified in Article 2(1. 1). Urban carriage in frontier areas is therefore characterized by its "urban", "frontier" quality, and by the fact that certain categories of passengers are carried to the exclusion of others. In actual fact, urban services in frontier areas should be considered as a special case of regular services rather than of special regular services, since urban services in frontier areas must be accessible to all and not only to certain categories of passengers to the exclusion of others. Additional vehicles Article 2(1. 3) of Regulation 684/92 provides that the operation of additional vehicles for existing regular services is governed by the same rules as these regular services, i. e. it is subject to authorization. Such a procedure would not appear to be justified, since Article 10 of the Regulation requires service operators to take all measures to guarantee a transport service that fulfils the standards of continuity, regularity and capacity. Where necessary owing to the growth in demand, the carrier is obliged to operate additional vehicles on the service. This obligation could not be fulfilled if the operator had to follow the authorization procedure, which takes a minimum of three months. The proposed amendment provides for abolition of the authorization obligation for the this amendment will give the operation of additional vehicles. Consequently, undertakings greater flexibility, particularly during periods of increased demand. Shuttle services The proposal for a regulation provides for abolition of the concept of shuttle services. This is justified for several reasons: 1. 2. 3. According to the information available to the Commission departments, this concept does not exist in Member States' internal legislation. The report on the implementation of Regulation 684/92 shows that scarcely any authorizations have been granted for shuttle services without accommodation. There are several similarities between shuttle services without accommodation and regular services, such as the relative regularity of shuttle services (. by means of repeated outward and return journeys. ) and the fact that they also have predetermined stopping points and timetables. It is because of these similarities that Article 4 of the Regulation has stipulated the same conditions of access to the market for both shuttle services without accommodation and regular services. The authorization procedure is the same for the two services, as are the reasons for rejection of the application for authorization set out in Article 7(4). 4i? 4. By contrast, shuttle services with accommodation could be considered as occasional services. For one thing, the conditions of market access and the control document are currently the same. Abolishing the shuttle category of services would greatly simplify the nomenclature of passenger "transport services by coach and bus. These would be classed as regular services, special regular services, occasional services and own-account transport operations. This classification coincides with that used in the legislation of most Member States. Occasional services The concept of occasional services has been considerably simplified. These services are currently defined by default, i. e. those which do not come into the category of regular services or special regular services. The list of these services in Article 2(3. 1) of Regulation 684/92 and in the Annex is deleted. Some elements characterizing occasional services have been included in the definition, but as a guide. Consequently, in order to distinguish between an occasional service and a regular or special regular service, it is necessary to stipulate that the occasional service does not meet the criteria laid down in the Regulation for those two services. As the report on the implementation of Regulation 684/92 shows, the number of authorizations granted by Member States for residual occasional services is insignificant. Abolition of the concept of residual occasional service is therefore justified. Occasional services remain exempt from authorization. By contrast, the organization of parallel or temporary services comparable to existing regular services and serving the same clientele as the latter is subject to authorization according to the procedure laid down in the Regulation. The objective of this provision, which is already contained in Article 2(1. 3) of the current text of Regulation 684/92, is to avoid unfair competition with regular services on the part of "false occasional services", i. e. occasional services exempt from authorization which in practice are regular services. Own-account transport operations The definition of own-account transport operations has been supplemented by an explicit reference to their non-commercial character, which is, moreover, an essential feature of this type of service. Article 2 No comment. Article 3 Article 3 of the proposal introduces a new Article 3a which contains an important innovation in the sector of international carriage of passengers by coach and bus. This 5q to carriers meeting is the "Community licence", which is issued by the competent authorities of the State of in Article 3(1) of establishment Regulation 684/92 and is based on a model contained in the annex to the Regulation. At present, each Member State draws up its own model authorization for international carriage, although the qualitative criteria for operation of these services are laid down by Regulation 684/92. the conditions laid down The Community licence will facilitate checks made outside the State of establishment, particularly in the case of occasional services, since these are exempt from authorization and currently operated under cover of a journey form which provides information on the service, but very little on the carrier involved. The Community licence will be the proof that the carrier is authorized in the State of establishment to undertake international carriage by coach and bus, and that the undertaking in question meets the conditions of access to the profession of road passenger transport operator pursuant to the Community directives. 5 The Community licence will replace the current document(s) issued by the competent authorities of the State of establishment attesting that the carrier is admitted to the market in international carriage of passengers by road. Article 4 Article 4 of the proposal amends Article 4 of Regulation 684/92 as regards the arrangements for market access as follows: All occasional services are exempt from authorization, unlike the system under Regulation 684/92 according to which residual occasional services have to be authorized. As the report on the application of Regulation 684/92 shows, Member States issued only an insignificant number of authorizations for residual occasional services. The latter category has therefore been abolished. All special regular services and urban carriage in frontier areas are exempt from authorization if they are covered by a contract concluded between the organizer and the carrier. Article 2(1. 2) of Regulation 684/92 in conjunction with Article 4 requires special regular services to be authorized with the exception of those listed in points (a), (b), (c) and (d) of Article 2(1). In practice, the number of special regular services subject to authorization pursuant to Regulation 684/92 is very limited, as can also be seen from the report on application of the Regulation. Abolition of the authorization requirement for these services is therefore justified. Regular services remain subject to authorization. Article 5 Council Directive 74/562/EEC, OJ L 308, 19. 11. 1974, p. 23, as last amended by Council Directive 89/438/EEC, OJ L 212, 22. 7. 1989, p. 101. No comment. Article 6 Article 6 of the proposal amends Article 5 of Regulation 684/92 with regard to additional vehicles. No comment on paragraphs 1 to 4. A new paragraph 5 is inserted. Article 1(3) of the proposal for an amendment provides for the abolition of the authorization obligation for the operation of additional vehicles. The proposed amendment to Article 6 requires the carrier who makes additional vehicles available to the operator of the regular service to carry the following documents on the vehicle: a true copy of the Community licence of the carrier providing the additional vehicle; a copy of the equivalent contract or document between the operator of the regular service and the carrier providing the additional vehicle; a copy of the authorization of the regular service. This new system will clarify the difference between the concept of "the use of additional vehicles" and "subcontracting". As already discussed, the use of additional vehicles is justified by the temporary or seasonal growth in demand such that the holder of the authorization would be unable to meet the carriage obligation with the vehicles at his or her direct disposal. A carrier who makes vehicles available to the holder of the authorization for the regular service through a hire contract, for example, is not named in the authorization document since the regular service is operated on behalf of the authorization holder and for a very specific period. The subcontractor, by contrast, is a transport undertaking which becomes responsible for the operation of the regular service on a permanent basis under the terms laid down by the Regulation and by the authorization. The subcontractor must be approved by the authorities involved in issuing the authorization and must figure in the authorization as the undertaking which operates the service on a subcontracting basis, and not as an undertaking which might be chosen from a list at a given moment to provide an ad hoc service. Article 7 Article 7 of the proposal amends Article 6 of Regulation 684/92 concerning the submission of applications for authorization of regular services. 7c? No comment on paragraph 1. Paragraph 3 of that Article specifies that persons applying for authorization shall provide any further information which they consider relevant or which is requested by the authorizing authority. This provision was developed by Article 7 of Commission Regulation 1839/92 laying down detailed rules for the application of Council Regulation (EEC) No 684/92 as regards documents for the international carriage of passengers. This Article stipulates the information which must be supplied by the applicant for the authorization, in particular the timetable, fare scales, evidence that the applicant meets the conditions applicable in the State of establishment to the international carriage of passengers by coach or bus, information regarding the type and volume of traffic expected and a map showing the route and stopping points. The proposed amendment concerns the requirement to draw up a plan with operational details of the regular service in order to satisfy the Community legislation on driving and rest periods6 and to supply a copy of the Community licence for the international carriage of passengers by road for hire or reward laid down in Article 3a. The obligation to draw up an operational plan for the regular service is all the more justified as it requires the carrier to organize stops in line with the Community legislation on driving and rest periods. It therefore concerns a prior check of compliance with this legislation, the fundamental objective of which is to ensure maximum road safety. Article 8 Article 8 of the proposal amends Article 7 of Regulation 684/92 on the authorization procedure for regular services. 1. It concerns, firstly, extending all the time limits laid down in that Article, since they have proved too short in practice: the period for referral to the Commission pursuant to Article 7(6) will be four months instead of three from the date of submission of the application; the period within which the Commission decides on a referral is ten weeks instead of six. 2. The second important amendment to Article 7(2) of the Regulation concerns the exact date from which the two-month period is calculated. This Article stipulates that the competent authorities of the Member States whose agreement has been requested regarding the issuing of an authorization for a regular service have two months within which to notify the authorizing authority of their decision. This period is calculated from the date of receipt of the request for an opinion. Only the authority whose opinion has been sought knows the exact date of receipt. Council Regulation (EEC) No 3820/85 and 3821/85 of 20 December 1985, OJ L 370, 31. 12. 1985, p. l. 8« 3. 4. The problem can be solved by sending immediately on receipt of the request for an opinion an acknowledgement of receipt showing the exact date on which the request was received. The two-month period would be calculated from the date shown on the acknowledgement. Efficient administration requires that the date in the acknowledgement of receipt should not be too far removed from the date shown in the request for an opinion. The current wording of Article 7(5) states that "the authorizing authority may refuse applications only on the basis of reasons compatible with this Regulation". This provision should be applicable not only to the authorizing authority, which is the authority that must formally grant the authorization, but also to the competent authorities of all Member States on whose territories passengers are picked up or set down and who participate in the construction of the agreement necessary to grant the authorization. This is the objective of Article 8(5) of the draft amendment. The draft amendment provides for deleting point 4(b)(ii) of Article 7 according to which: "The application may be rejected: (ii) if it is shown that the said service would seriously affect the viability of a comparable rail service on the direct sections concerned. " Deleting this provision is justified from the point of view of the principle of freedom of competition between the various transport modes. Furthermore, according to the available information, no authorization has been rejected for this reason. In addition, the wording in 4(a) and (b) "An application may be rejected if :. " has been replaced by the phrase "Authorization shall be granted unless:. ". The purpose of this amendment is to limit as far as possible the discretionary powers of the national administrations when they state reasons for refusing applications. Authorization will have to be granted if none of the reasons for rejection specified by the Regulation can be advanced. The first, second and third indents of point (4)(a) and subparagraphs (i) and (iii) of point (4)(b) have been incorporated in full from the text of Regulation 684/92 in the interests of greater clarity of Article 7(4). *r Article 9 No comment Article 10 No comment Article 11 Article 11 of the proposal amends Article 11 of Regulation 684/92. 9* According to Article 11(2) of Regulation 684/92, the control document consists of a journey form and a set of translations of the journey form. Article 15(1) requires the control document to be carried on the vehicle and presented at the request of any authorized inspecting officer. The objective of this amendment is to abolish the obligation to carry the set of translations of the journey form on the vehicle. On the basis of Article 187 of Regulation 684/92 the Member States of the Community and of the European Economic Area have agreed to waive the requirement for the set of translations of the journey form in all Community languages to be carried on a vehicle undertaking a transport service exempt from authorization. Article 12 This Article deletes Article 12 of Regulation 684/92 according to which "within the framework of an international shuttle service with accommodation, or an international occasional service, a carrier may carry out occasional services (local excursions) in a Member State other than that in which it is established (. )". In practice, this provision enables non-resident carriers to carry out strictly national services under certain conditions. This issue has already been solved in the framework of Council Regulation (EEC) No 2454/92 laying down the conditions under which non-resident carriers may operate national road passenger transport services within a Member State. Pursuant to Article 3 of this Regulation, permission to operate cabotage transport operations in the form of non-regular services will be restricted to closed-door tours until 31 December 1995. After that date, all cabotage transport operations will be authorized for all non-regular services. Consequently, since the entry into force of Regulation 2454/92, cabotage in the form of "local excursions" as referred to in Regulation 684/92 has been liberalized to a much greater extent than provided for in Article 12 of the latter. This provision has thus become obsolete. Any carrier wishing to undertake a cabotage operation following an international service will be able to do so under the conditions set out in the cabotage Regulation. Article 13 Article 13 of the proposal deletes Article 13(2) of Regulation 684/92. The objective of this amendment is to exempt from authorization aU services for own account and not only those listed in Article 2(4) of Regulation 684/92. Article 18 of the Regulation states that "Member States may conclude bilateral and multilateral agreements on the further liberalization of the services covered by this Regulation, in particular as regards the authorization system and the simplification or abolition of control documents". 10 a Article 14 No comment Article 15- Article 15 of the proposal amends the second paragraph of Article 19 of Regulation 684/92. This amendment concerns the penalties that Member States must adopt to implement the Regulation. These penalties must be effective, proportionate and dissuasive. The wording of the current proposal is taken from the model proposed in the Annex to the Commission Communication to the Council and European Parliament on the role of penalties legislation implementing Community (COM(95)162 final). internal market in Article 16 Article 16 of the proposal concerns the deletion of the Annex to Regulation 684/92 containing the description of certain occasional services exempt from authorization. This description is now redundant since the proposal liberalizes all occasional services. Articles 17, 18 and 19 No comment. 1 1* PROPOSAL FOR A COUNCIL REGULATION amending Council Regulation (EEC) No 684/92 on common rules for the international carriage of passengers by coach and bus THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 75, paragraphe 1, thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, In cooperation with the European Parliament, Whereas, in accordance with Article 75(l)(a) of the Treaty, the establishment of a common transport policy entails, inter alia, laying down common rules applicable to the international carriage of passengers by road; Whereas the definition of the various international coach and bus services should be simplified; Whereas international coach and bus services may be classed as regular services, special regular services and occasional services; whereas, therefore, the concept of shuttle service may be abolished; Whereas a system of market access exempt from authorization should be introduced for all occasional services, special regular services and all own-account transport operations; Whereas regular services should continue to be subject to authorization; Whereas intermodal competition should be preserved; whereas, therefore, the railways should no longer have priority in the context of the establishment of a coach or bus service; Whereas, in order to facilitate the inspection of transport operations, the international carriage of passengers by road for hire or reward should be subject to a Community licence conforming to a harmonized model; Whereas the time limits involved in the procedure for the issue of authorizations should be made more flexible; Whereas Member States must take the necessary measures to implement this Regulation, in particular as regards effective, proportionate and dissuasive penalties; Whereas the application of this Regulation must be monitored on the basis of a report to be presented by the Commission, 12A HAS ADOPTED THIS REGULATION: Article I Article 2 of Regulation 684/92 is amended as follows: (1) A new subparagraph is added to point 1. 1: "Regular services operated within a conurbation situated in two or more Member States shall be designated "urban carriage in frontier areas ". " (2) Paragraph (d) of point 1. 2 is deleted. (3) In point 1. 3 the words "additional vehicles and" are deleted. (4) Point 2 relating to shuttle services is deleted. (5) Point 3. 1 is replaced by the following: "Occasional services are services meeting neither the definition of a regular service nor the definition of a special regular service, and which are that they carry groups of passengers characterized above all by the fact previously assembled, or that they are organized at the request of the customer, or comprise accommodation or other non-ancillary tourist services in the course of the journey or at thie place of destination, or are organized on the occasion of special events, or comprise an empty journey in the course of the outward or return journey or are organized for the purpose of carrying out tours. The organization of parallel or temporary services comparable to existing regular services and serving the same public as the latter shall be subject to authorization in accordance with the procedure laid down in Section II of this Regulation". (6) Point 3. 2 is deleted. (7) Point 4 is replaced by the following: "Own-account transport operations are those carried out for non-commercial purposes, notably by an undertaking for its own employees or by a non profit-making body for the transport of its members in connection with its social objective provided that: - the transport activity is only an ancillary activity for the undertaking or body, - the vehicles used are the property of that undertaking or body or have been obtained on deferred terms by them or have been the subject of a long-term leasing contract and are driven by a member of the staff of the undertaking or body. " (1) The first indent of Article 3(1) of Regulation 684/92 is amended as follows: Article 2 13 "- is authorized in the State of establishment to undertake carriage by means of regular services, special regular services or occasional services by coach and bus". A new Article 3a is added in Regulation 684/92: Article 3 "Article 3a Community licence 1. Any carrier meeting the criteria laid down in Article 3(1) must hold a Community licence issued by the competent authorities of the State of establishment in accordance with the model in the Annex to this Regulation. 2. 3. 4. 5. 6. 7. 8. The competent authorities of the State of establishment shall issue the holder with the original of the Community licence, which shall be kept by the transport undertaking, and the number of certified true copies corresponding to the number of vehicles at the disposal of the holder of the Community licence, either in full ownership, or in another form, notably by virtue of an instalment-purchase contract, a hire contract or a leasing contract. The Community licence shall be established in the name of the carrier and shall be ^on-transferable. A certified true copy of the Community licence shall be carried on the vehicle and shall be presented at the request of any authorized inspecting officer. The Community licence shall be issued for a period of five years which shall be renewable. The Community licence referred to in paragraph 2 shall replace the document issued by the competent authorities of the State of establishment certifying that the carrier has access to the market for the international carriage of passengers by road. When an application for a licence is submitted, and at the latest five years after its issue and at least every five years subsequently, the competent authorities of the State of establishment shall verify whether the carrier meets or continues to meet the conditions laid down in Article 3(1). Where the conditions laid down in Article 3(2) are not met, the competent authorities of the State of establishment shall reject the issue or renewal of the Community licence by means of a reasoned decision. The competent authorities shall withdraw the Community licence where the holder: no longer meets the conditions laid down in Article 3(1) 14* has supplied inaccurate information regarding the data required for the issue of the Community licence. 9. In the event of serious infringements or of minor and repeated infringements of the regulations relating to transport, the competent authorities of the State of establishment of the carrier who has committed the offence may take action involving in particular the temporary and/or partial withdrawal of the true copies of the Community licence. These penalties shall be determined on the basis of the gravity of the offence committed by the holder of the Community licence and in the light international of the total number of true copies the holder has for transport operations. 10. Member States shall guarantee the right of the applicant for, or holder of a Community licence to appeal against a decision by the competent authorities of the State of establishment to reject or withdraw this licence. 11. Member States shall inform the Commission no later than 31 January of every year of the number of carriers holding a Community licence as at 31 December of the previous year and of the number of certified true copies corresponding to the number of vehicles in circulation on that date ". f Article 4 1. Article 4 of Regulation 684/92 is replaced by the following: "1. Occasional services as defined in Article 2(3. 1) shall not require authorization. 2. Special regular services defined in Article 2(1. 2) and the urban carriage in frontier areas defined in the second subparagraph of Article 2(1. 1) shall not require authorization if they are covered by a contract concluded between the organizer and the carrier. 3. Empty journeys by vehicles in connection with the transport operations referred to in paragraphs 1 and 2 shall likewise not require authorization. 4. Regular services as defined in the first subparagraph of Article 2(1. 1) shall require authorization in accordance with Articles 5 to 10. 5. Arrangements for own-account transport operations are set out in Article 13. " Article 5 1. The title of Section II of Regulation 684/92 is amended as follows: "Regular services subject to authorization. " Article 5 of Regulation 684/92 is amended as follows: Article 6 15* 1. 2. 3. 4. 5. In the second subparagraph of paragraph 1, the words "or a shuttle service" are deleted. In paragraph 2 the words "and accommodation" are deleted. two years for shuttle services without In paragraph 3(d) the words "for regular services" are deleted. In paragraph 5 the words "and shuttle services without accommodation" are deleted. A new paragraph 6 is inserted: "6. In the case of additional vehicles being used for existing regular services, a copy of the corresponding contract or document between the operator of the regular service and the carrier providing the additional vehicles and a copy of the authorization of the regular service must be carried on the vehicle. A carrier providing additional vehicles must hold the Community licence provided for in Article 3(a). A true copy of the Community licence must be carried on the additional vehicle. " Article 6 of Regulation 684/^2 is amended as follows: Article 7 1. 2. Paragraph 1 is replaced by the following text: "Applications for authorization of regular services shall be submitted to the competent authorities of the Member State in whose territory the place of departure is situated, hereinafter referred to as the "authorizing authority". The place of departure shall mean "one of the termini of the service". " Paragraph 3 is replaced by the following text: "Persons applying for authorization shall provide any further information which they consider relevant or which is requested by the authorizing authority, in particular an operational plan of the regular service for the purpose of complying with Community legislation on driving and rest periods and a copy of the Community licence for international carriage of passengers by road for hire or reward provided for in Article 3(a). " Article 8 Article 7 of Regulation 684/92 is replaced by the following text: 1. "Authorizations shall be issued in agreement with the competent authorities of all the Member States in whose territories passengers are picked up or set down. The authorizing authority shall forward to such authorities - as well as to the competent authorities of Member States whose territories are crossed without 16A passengers being picked up or set down - a copy of the application, together with copies of any other relevant documentation, and its assessment. The competent authorities of the Member States whose agreement has been requested shall notify the authorizing authority of their decision on the application within two months. This time limit shall be calculated from the date of receipt of the request for an opinion that is shown in the acknowledgement of receipt which the authorities concerned must send to the authorizing authority. The acknowledgement of receipt must conform to a model drawn up by the Commission after consultation of the Member States. If within this period, the authorizing authority has received no reply, the authorities consulted shall be deemed to have given their agreement and the authorizing authority shall grant the authorization. The authorities of the Member States whose territories are crossed without passengers being picked up or set down may notify the authorizing authority of their comments within the time limits laid down in the first subparagraph. Subject to paragraphs 7 and 8, the authorizing authority shall take a decision on the application within three months of the date of submission of the application by the carrier. Authorization shall be granted unless: (a) the applicant is unable to provide the service that is the subject of the application with equipment directly available to him; (b) in the past the applicant has not complied with national or international legislation on road transport and in particular the conditions and requirements relating to authorizations for international road passenger services or has committed serious breaches of legislation in regard to road safety, in particular with regard to the rules applicable to vehicles and driving and rest periods for drivers; (c) in the case of an application for renewal of authorization, the conditions of authorization have not been complied with; (d) it is shown that the service in question would directly compromise the existence of regular services already authorized, except in cases in which the regular services in question are carried out only by a single carrier or group of carriers; (e) it appears that the operation of services covered by the application is aimed only at the most lucrative of the services existing on the links concerned. The fact that an operator offers lower prices than are offered by other road transporters or the fact that the link in question is already operated by other road carriers may not in itself constitute justification for rejecting the application. 17-9 5. 6. 7. 8. 9. The authorizing authority and the competent authorities of all the Member States involved in the procedure to reach agreement provided for in paragraph 1 may refuse applications only on the basis of reasons compatible with this Regulation". If the procedure for reaching the agreement referred to in paragraph 1 does not enable the authorizing authority to decide on an application, the matter may be referred to the Commission within a the time limit of four months calculated from the date of submission of the application by the carrier. After consulting the Member States concerned, the Commission shall within ten weeks take a decision which shall take effect within thirty days of the notification of the Member States concerned". The Commission decision shall continue to apply until such time as agreement is reached between the Member States concerned. Having completed the procedure laid down in this Article, the authorizing authority shall inform all the authorities referred to in paragraph 1 of its decision, sending them a copy of any authorization; the competent authorities of the transit Member States may indicate that they do not wish to be so informed. " Article 9(4) of Regulation 6^4/92 is deleted. Article 9 Article 10 The title of Section III of Regulation 684/92 is amended as follows: "Occasional services and other services exempt from authorization". Article 11 Article 11 of Regulation 684/92 is amended as follows: 1. 2. The following is deleted from paragraph 2: "and a set of translations of the journey form". The following is deleted from paragraph 3: "and shuttle services with accommodation". 3. Point (c) of paragraph 4 is deleted. Article 12 of Regulation 684/92 is deleted. Article 12 18* Article 13(2) is deleted. Article 13 Article 14 Article 14 of Regulation 684/92 is amended as follows: 1. 2. The following is deleted from the first subparagraph of paragraph 1 : "or a shuttle service". The following is deleted from the last indent of paragraph 1: "and, in the case of passengers who have paid for accommodation, the total price of the accommodation". including accommodation, and details of journey, the The second paragraph of Article 19 of Regulation 684/92 is amended as follows: Article 15 "Member States shall adopt measures relating in particular to the means of carrying out checks and the system of penalties applicable to infringements of the provisions of this Regulation, and take all the measures necessary to ensure that those penalties are applied. The penalties thus provided for shall be effective, proportionate and dissuasive. Member States shall notify the relevant measures to the Commission not later than 31 December 1996, and shall notify any subsequent changes as soon as possible. They shall ensure that all such measures are applied without discrimination as to the nationality or place of establishment of the carrier. " The Annex to Regulation 684/92 is deleted. Article 16 Article 17 Member States shall, before 31 December 1996 and after consulting the Commission, adopt the measures necessary for the implementation of this Regulation and notify such measures to the Commission. Article 18 The Commission shall report to the Council before 31 December 1999 on the application of this Regulation. 19* Article 19 This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Communities. It shall apply from 1 June 1996. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council 20^ * ANNEX EUROPEAN COMMUNITY (a) (Heavy-duty paper, blue - dimensions DIN A4) (First page of the licence) (Text in the official language(s) or one of the official languages of the Member States issuing the licence) Distinctive symbol of the country8 State issuing the licence Designation of the competent authority or body LICENCE No. for the international carriage of passengers by coach and bus for hire or reward The holder of this licence9 is authorized to carry out international carriage of passengers by road for hire or reward in the territory of the Community under the conditions laid down by Council Regulation (EEC) No 684/92 of 16 March 1992, as amended by Regulation. and in accordance with the general provisions of this licence. Comments: This licence is valid from to Issued in , on 8 9 10 Distinctive symbol of the country: (B) Belgium, (DK) Denmark, (D) Germany, (GR) Greece, (E) Spain, (F) France, (IRL) Ireland, (I) Italy, (L) Luxembourg, (NL) Netherlands, (P) Portugal, (UK) United Kingdom, (FIN) Finland, (A) Austria, (S) Sweden. Full name or business name of the carrier. Signature and stamp of the competent authority or body issuing the licence. 2U General provisions 1. 2. is licence This. amending Council Regulation (EEC) No 684/92 on common rules for the international carriage of passengers by coach and bus. to Council Regulation issued pursuant This licence is issued by the competent authorities of the State of establishment of the carrier for hire or reward who: is authorized in the State of establishment to undertake carriage by means of regular services, special regular services or occasional services by coach and bus; satisfies the conditions laid down in accordance with Community rules on admission to the occupation of road passenger transport operator in national and international transport operations; meets legal requirements on road safety as far as the standards for drivers and vehicles are concerned. 3. It permits the international carriage of passengers by coach and bus for hire or reward on all transport links for journeys carried out in the territory of the Community: where the place of departure and place of destination are situated in two different Member States, with or without transit through one or more Member States or third countries, from a Member State to a third country and vice versa, with or without transit through one or more Member States or third countries, between third countries crossing the territory of one or more Member States in transit, 4. 5. and empty journeys in connection with transport operations under the conditions laid down by Regulation 684/92 as amended by Regulation. This licence is personal and non-transferable. It may be withdrawn by the competent authorities of the Member State of issue where the carrier has in particular: failed to meet all the conditions to which use of the licence was subject; supplied inaccurate information regarding the data required for the issue or renewal of the licence. 22 * 6. 7. 8. The original of the licence must be kept by the transport undertaking. A certified true copy of the licence must be carried on the vehicle carrying out an international transport operation. The licence must be presented at the request of any inspecting officer. The holder must, on the territory of each Member State, comply with the laws, regulations and administrative measures in force in that State, particularly with regard to transport and traffic. 23 BUSINESS IMPACT ASSESSMENT IMPACT OF THE PROPOSAL ON BUSINESS WITH SPECIAL REFERENCE TO SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs) Title of the proposal: Council Regulation on common rules for the international carriage of passengers by coach and bus. Proposal 1. Taking account of the subsidiarity principle, why is Community legislation necessary in this area and what are its main aims? The Community legislation is based on Article 75(1 )a of the Treaty. Its provisions confer on the Community the competence to define common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States. In addition, the principle of the freedom to provide transport services implies the elimination of any discrimination against the service provider on grounds of nationality or place of establishment. Furthermore, the proposal responds to the provisions of Article 20 of Council Regulation (EEC) No 684/92 of 16 March 1992 on common rules for the international carriage of passengers by coach and bus, which states in Article 20 that the Commission must submit to the Council before 1 January 1996 a proposal for a regulation on the simplification of procedures including - in the light of the report's conclusions - the abolition of authorizations. The impact on business 2. Who will be affected by the proposal? Which sectors of business? Carriers of passengers by coach and bus for hire or reward and for own account, authorized in their State of establishment to exercise the profession of road passenger transport operator in the field of international transport. Does the proposal affect SMEs more than large businesses? The proposal affects all undertakings, irrespective of their size. Nevertheless, approximately 80% of road transport undertakings are SMEs. Are there particular areas of the Community where these businesses are found? The proportion of SMEs is relatively high in the southern countries of Europe. 3. What will business have to do to comply with the proposal? 24 * In order to benefit from this proposal, which introduces greater flexibility into the provision of transport services, a transport undertaking must be authorized in a Member State in conformity with the relevant Community legislation to exercise the profession of road passenger transport operator in the field of international transport. 4. What economic effect is the proposal likely to have? On employment? The proposal concerns a more liberal system of market access. It therefore opens up new prospects in the field of coach travel and in the medium term will generate new employment in the sector. On investment and the creation of new businesses? Businesses will benefit from the internal market of the European Union and the European Economic Area with a total population of 370 million inhabitants. This large market will doubtless call for new investment on the part of existing firms and the creation of other businesses in the field of coach travel. On the competitive position of businesses? Through the introduction of a more liberal system, access to the passenger transport market will be easier throughout the European Union and the European their services where Economic Area. Operators will be able to offer opportunities present themselves. There is no question that a large single market functioning according the undertakings concerned, and also to citizens who will have a better choice of transport mode owing to greater competition. to uniform rules offers better possibilities to 5. Does the proposal contain measures to take account of the specific situation of SMEs (reduced or different requirements, etc. )? No. Consultation 6. List the organizations which have been consulted about the proposal and outline their main views: A consultation meeting on the new proposal for a Council Regulation amending Regulation (EEC) No 684/92 on common rules for the international carriage of passengers by coach and bus took place on 8 September 1995. The IRU (International Road Union) and EUROCHAMBRES were present. The two organizations declared their support for a simplification of the rules in the new regulation to avoid possible interpretation problems. They welcomed the proposal to abolish, firstly, the "residual occasional service" category, which will simplify the definition of the remaining services and, secondly, the "shuttle service" category, by assimilating shuttle services without accommodation to regular services and those with accommodation to occasional services. 25* In addition, the professional organizations agreed with the Commission's proposal to restore competition between regular coach and bus services and regular rail services. The Commission proposal to provide for a more flexible approach in the case of additional vehicles for operators when demand shows a sudden increase was welcomed, as was the introduction of a "Eurolicence" for coach services as a quality symbol. The Commission took account of the views of the professional organizations consulted in preparing its proposal for a new instrument to amend the common rules on international carriage of passengers by coach and bus. 26- ISSN 0254-1475 COM(96) 190 final DOCUMENTS EN 07 11 06 Catalogue number : CB-CO-96-198-EN-C ISBN 92-78-03186-0 Office for Official Publications of the European Communities L-2985 Luxembourg

REPORT ON THE APPLICATION OF COUNCIL REGULATION (EEC) No 684/92 OF 16 MARCH 1992 ON COMMON RULES FOR THE INTERNATIONAL CARRIAGE OF PASSENGERS BY COACH AND BUS

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 10. 05. 1996 COM(96) 190 final 96/0125 (SYN) REPORT ON THE APPLICATION OF COUNCIL REGULATION (EEC) No 684/92 OF 16 MARCH 1992 ON COMMON RULES FOR THE INTERNATIONAL CARRIAGE OF PASSENGERS BY COACH AND BUS (Presented by the Commission) Proposal for a COUNCIL REGULATION (EC) amending Council Regulation (EEC) No 684/92 on common rules for the international carriage of passengers by coach and bus (presented by the Commission) REPORT ON THE APPLICATION OF COUNCIL REGULATION (EEC) No 684/92 OF 16 MARCH 1992 ON COMMON RULES FOR THE INTERNATIONAL CARRIAGE OF PASSENGERS BY COACH AND BUS CONTENTS A. B. INTRODUCTION CONTENT OF REGULATION 684/92 Types of services (1) Regular services (2) Special regular services (3) Shuttle services (4) Occasional services (5) Own-account transport operations (6) Authorization procedure C. PROBLEMS OF APPLICATION AND INTERPRETATION 1. Scope of the Regulation in relation to third countries 2. The concept of the various services (a) Own-account transport operations (b) Urban carriage in frontier areas (Article 2(1. 2)(d)) (c) Regular services and shuttle services without accommodation 3. Procedure and time limits for granting the authorization 4. Reasons for rejecting the application (Article 7(4)(a) and (b)) D. ACTION BY THE COMMISSION - ARBITRATION (Article 7(6)) E. F. G. RELATIONS WITH NATIONAL EXPERTS AND THE TRADE EXTERNAL RELATIONS AGREEMENTS BETWEEN THE MEMBER STATES (Article 18 of the Regulation) H. TRANSPORT DOCUMENTS I. STATISTICS ON THE NUMBER OF AUTHORIZATIONS GRANTED BY THE MEMBER STATES A. INTRODUCTION Council Regulation 684/92 of 16 March 1992 on common rules for the international carriage of passengers by coach and bus, which was adopted in the run-up to completion of the internal market, laid down the conditions for applying the principle of the freedom to provide" services in the field of carriage of passengers by road and reduced to a minimum the administrative procedures involved for carriers, enabling them to become more competitive. Article 20 of Regulation 684/92 states that the Commission must report to the Council on the application of the Regulation before 1 July 1995. Before 1 January 1996, the Commission must present a proposal for a Regulation on the simplification of procedures, including - in the light of the report's conclusions - the abolition of authorizations. This report gives effect to the provisions of Article 20. B. CONTENT OF REGULATION 684/92 Regulation 684/92 on common rules for the international carriage of passengers by coach and bus constitutes the general legal framework for international carriage of passengers by coach and bus in all the Member States of the Community and, following the entry into force of the EEA Agreement, the countries of the European Economic Area. It introduced the principle of the freedom to provide services in this sector, replacing the regulations that had been in force since the end of the 1960s and beginning of the 1970s. In practice, this means that carriers are permitted to carry out international transport services between Member States without discrimination on grounds of nationality or place of establishment, if they: the conditions laid down in accordance with Community rules on are authorized in the State of establishment to undertake carriage by coach and bus; satisfy admission to the occupation of road passenger transport operator; meet legal requirements on road safety as far as the standards for drivers and vehicles are concerned. An undertaking established in one Member State may thus carry out transport services between other Member States. Types of services The Regulation defines the various passenger transport services as follows and specifies for each of them the conditions of market access: (1) Regular services Regular services are services which provide for the carriage of passengers at specified intervals along specified routes, passengers being taken up and set down at predetermined stopping points. This type of service is open to all, subject, where appropriate, to compulsory reservation. Regular services are subject to authorization in accordance with a procedure laid down in Article 7 of the Regulation. This procedure is much faster and more flexible than the arrangements under the previous rules. The authorization of the country of transit (whose territory is crossed without passengers being picked up or set down) was abolished and replaced by a simple notification of the application, with the possibility for the authorities of the country of transit to submit comments. In addition, the Regulation sets out in Article 7(4) six reasons for which an application for authorization may be rejected. However, the application of the provisions of Article 7(4) has given rise to a number of interpretation problems, which are dealt with in a special section below. (2) Special regular services Special regular services are regular services which provide for the carriage of specified categories of passengers to the exclusion of other passengers, notably the carriage of workers between home and work, school pupils and students to and from their educational institution, soldiers and their families between their state of origin and the area of their barracks and urban carriage in frontier areas. All these cases of special regular services are exempt from authorization provided that they are covered by a contract concluded between the organizer and the carrier. (3) Shuttle services Shuttle services as defined in Article 2(2) are services organized to carry groups of passengers assembled in advance by means of repeated outward and return journeys from a single area of departure to a single area of destination. These groups, made up of passengers who have completed the outward journey, are carried back to the place of departure in the course of a subsequent journey. "Area of departure" and "area of destination" mean the place where the journey begins and the place where the journey ends together with localities within a radius of 50 km. Outside the areas of departure and destination, groups may be picked up and set down respectively at up to three different places. The conditions of market access differ according to whether or not these services include accommodation: shuttle services without accommodation are subject to authorization, while those with accommodation are exempt from authorization. (4) Occasional services Occasional services are services falling neither within the definition of a regular service nor of a shuttle service. These services are described in Article 2(3. 1) and the Annex to the Regulation. The same Article provides for the category of residual occasional services, namely any service which does not fall within the definition of occasional services contained in the Regulation. Only this latter category is subject to authorization. (5) Own-account transport operations Article 2(4) of the Regulation also determines the conditions applicable to own-account transport operations. These operations, which an undertaking carries out for its own employees or a non-profit-making body for its members in connection with its social objective, are exempt from authorization and subject instead to a system of certificates in accordance with models determined by the Commission provided that: the transport activity is only an ancillary activity for the undertaking or body; the vehicles used are the property of that undertaking or body or have been obtained on deferred terms by them or have been the subject of a long-term leasing contract and are driven by a member of staff of the undertaking or body. (6) Authorization procedure Article 7 of the Regulation lays down the authorization procedure. Authorizations are issued in agreement with the competent authorities of all the Member States in whose territories passengers are picked up or set down. However, the actual authorization document is issued by the authorizing authority, i. e. the competent authority of the Member State in whose territory the place of departure is situated (one of the termini of the service) and where the application was submitted, unlike the system under the previous rules according to which the competent authorities of the Member States concerned issued an authorization to each undertaking of its nationality participating in the pool. C. PROBLEMS OF APPLICATION AND INTERPRETATION The competent authorities of the Member States are responsible for the practical application of the Regulation. In this context, the national authorities have sometimes encountered difficulties in interpreting several of its provisions. As a result, since Regulation 684/92 was adopted and entered into force, the competent authorities of several Member States and the representatives of the professional associations have asked the Commission departments for clarification of certain provisions. The Commission departments gave their legal interpretation of the questions raised without prejudice to any other future position of the Commission, stating that it was for the Court of Justice to give binding legal interpretations of Community law pursuant to Article 177 of the EC Treaty. The following are the main problems of application and interpretation of the Regulation: 1. Scope of the Regulation in relation to third countries The question of the scope of the Regulation has arisen in connection with the authorization of coach services to third countries. Article 1(2) states: "In the event of carriage from a Member State to a third country and vice-versa, this Regulation shall apply to the part of the journey on the territory of the Member State of picking up or setting down, after conclusion of the necessary agreement between the Community and the third country concerned". The Commission departments considered that this provision could be interpreted a contrario as meaning that the Regulation applies to transit through Member States to a third country in the event that there is no picking up or setting down of passengers. The problem arose in this context of the transit authorization required by the authorities of certain Member States whose territory is crossed with no picking up or setting down of passengers in the case of a regular service to a third country. Such transit authorizations may be required only from non-Community operators or where the service is provided by an undertaking established in the Community in conjunction with a firm located in a third country. The Commission departments considered that Regulation 684/92 does not apply in such a case according to Article 1(1) and (2), and the competent authorities of the Member States of transit could require a transit authorization, in conformity with the general principles of the Treaty. The Commission departments also interpreted Regulation 684/92 as meaning that passenger transport services between two Member States which involve transit on a closed-door basis through a third country, i. e. with no scope for picking up or setting down passengers, are to be considered as intra-Community transport and hence subject to the provisions of Regulation 684/92. If transit via a third country is on an open-door basis, i. e. passengers can be picked up or set down, this service is both intra-Community, since the place of departure and the final destination are within the European Community, and a service from a Member State to a third country and vice-versa (given the intermediate destinations and stops in the country of transit) within the meaning of Article 1(2) of Regulation 684/92. In this case, Community legislation applies to the intra-Community part of the service, and bilateral agreements between the Member States and the transit country plus the ASOR Agreement apply (if an occasional service is involved) to the picking up and setting down of passengers going to or coming from the third country, pending the conclusion of the necessary agreement between the Community and the third country in question. However, the application of Community rules and the ASOR Agreement to occasional services between two Member States involving transit on an open-door basis through a third country may give rise to problems, since the two sets of rules are not liberalized to the same degree. If the service in question has not been deregulated under the ASOR Agreement, an authorization from the third country of transit could be necessary for the part of the journey made on its territory. For example, an occasional service between Germany and Italy liberalized under the terms of Regulation 684/92 which picks up or sets down passengers in Switzerland will require authorization from the latter, since such picking up or setting down of passengers has not been not liberalized under the terms of the ASOR Agreement. To sum up, the bilateral agreements continue to apply in relations between Community countries and third countries, albeit subject to the obligation pursuant to Article 1(3) of Regulation 684/92 that Member States must endeavour to adapt such bilateral agreements with the principle of non-discrimination between Community carriers. to ensure compliance with third countries in order Finally, the ASOR Agreement applies between the Community, Turkey and Switzerland, since the remaining contracting parties have become members of the Community or parties to the EEA Agreement. 2. The concept of the various services (a) Own-account transport operations Own-account transport operations are regulated in Article 2(4) and Article 13 of Regulation 684/92. In response to a request from the authorities of one Member State, the Commission departments considered the case of a private individual using his or her own bus for a family holiday in another Member State. They found that this does not in principle comply with the definition of "own-account transport operation" within the meaning of the Regulation and consequently the exemption from authorization is not applicable. However, this would clearly be a disproportionate, excessively bureaucratic approach. A solution has been considered; the journey in question, which is entirely unconnected with any form of economic activity, does not come within the scope of the Regulation. The individual in question is neither an own-account carrier nor a carrier for hire or reward (Article 1). Hence this transport operation is governed solely by the provisions of the Member States applicable to the carriage of passengers. After consultation, the Commission departments decided that transport operations by a public transport undertaking which, on the occasion of a study trip, carries its own employees, should be considered as an own-account transport operation, since in this case the carriage of its own employees is merely a one-off, ancillary, non-profit-making activity which meets the conditions of Article 2(4) of Regulation 684/92. The concept of a non-profit-making body also covers non-commercial organizations using vehicles for social objectives manned by volunteer drivers. 1 (b) Urban carnage in frontier areas (Article 2(1. 2)(d) ) The Regulation regards urban carriage in frontier areas as a special regular service, the latter being defined as a service which provides for the carriage of specified categories of passengers to the exclusion of other passengers, in so far as such services are operated under the conditions specified in Article 2(1. 1). Urban carriage in frontier areas is thus characterized by its "urban", "frontier" nature, and by the fact that certain categories of passengers are carried to the exclusion of others. The Regulation does not define urban carriage in frontier areas. It merely provides that the competent authorities of the Member States concerned must act together to smooth the way for such services since, under Article 4(2) of the Regulation, they are exempt from authorization if they are covered by a contract concluded between the organizer and the carrier. The Commission departments therefore considered that a transport service is to be regarded as urban carriage in frontier areas if it meets the conditions set out above and is carried out in a conurbation situated in two or more Member States. (c) Regular services and shuttle services without accommodation Declaration of the Council and the Commission entered in the minutes of the meeting at which Regulation 684/92 was adopted. Regulation 684/92 defined several conditions for international passenger services by coach and bus, in particular regular services and shuttle services. The main differences between the two categories of service are the following: - - regular services transport individual travellers, whereas shuttle services carry previously assembled groups of passengers; in the case of shuttle services without accommodation, the groups of passengers must be brought back to the place of departure in the course of a subsequent journey, although in the framework of regular services the passengers are not obliged to purchase the return ticket. There are, therefore, a number of similarities between shuttle services and regular services, such as the relative regularity of shuttle services (. by means of repeated outward and return journeys. ) and the fact that the stops and timetables are determined in advance. It is because of these similarities that Article 4 of the Regulation has specified the same conditions of market access for shuttle services without accommodation and regular services. The authorization procedure is also the same for the two services, as are the reasons for rejection of an application for authorization set out in Article 7(4). 3. Procedure and time limits for granting authorization (a) The case of "undertakings associated" for the purpose of operating a regular service or a shuttle service without accommodation the Regulation revealed a problem concerning The application of the determination of the authorizing authority in the case of an association of undertakings for the operation of a regular passenger transport service by coach. Article 6(1) states very clearly that "applications for authorization shall be submitted to the competent authorities of the Member State in whose territory the place of departure is situated, hereinafter referred to as the "authorizing authority". In the case of regular services, the "place of departure" shall mean one of the termini". It is clear that regular services have two termini. The Regulation does not give any other indication to the effect that one of the termini of regular services takes precedence over the other from the point of view of submission and issue of the authorization. In practice, the decision to submit an application for a regular passenger service by coach in the one or other terminus is at the discretion of the undertakings concerned. In those circumstances, the Commission departments took the view that they could not accept the interpretation given by certain Member States and certain undertakings according to which the Member State on whose territory the undertaking "that manages" is established or the Member State in which the service originates is to be considered as the place of departure. The Regulation does not define the concept of "association of undertakings", so a number of approaches could be envisaged according to the possibilities offered by the various legal systems of the Member States. The Regulation does not require an association to be constituted formally, in the legal sense of the term. However, an agreement between all the enterprises in the association on the joint operation of the regular service is a minimum requirement. As-regards the method of designating the undertaking managing the operation of a regular service or a shuttle service without accommodation in the case of an association of undertakings where there is no agreement between the various members of the association, it is the responsibility of the association to reach agreement on designating the managing party. Authorization of the service could be delayed until such time as the managing undertaking is designated. The Commission departments were asked to comment on the interpretation that each undertaking belonging to the association is its "own managing party", which they rejected as being in conflict with the wording and the objective of the second paragraph of Article 5(1). The second paragraph of Article 5(1) of Regulation 684/92 states that "In the case of undertakings associated for the purpose of operating a regular service or a shuttle service, the authorization shall be issued in the names of all the undertakings. It shall be given to the undertaking that manages the operation and copies shall be given to the others. The authorization shall state the names of all the operators". Consequently Regulation 684/92 is based on the criteria of "one service, one authorization" or "one authorization for each service". They also considered that there was nothing to support the idea of the managing party having additional rights or advantages compared with the other holders of the authorization in the association. The Commission departments found that the procedure according to which undertakings applying for authorization to operate a service in association with others submit their application in parallel in their respective Member States and authorization is granted to each member of the association by its own national administration after the details have been jointly agreed, is incompatible with Articles 5 and 7 of the Regulation. (b) Article 7(2) of the Regulation states that the competent authorities of the Member States whose agreement has been requested for the authorization of a regular service have a period of two months within which to notify their decision. This period is calculated from the date of receipt of the request for an opinion. These authorities alone are aware of the exact date of receipt of the request. Efficient administration requires that this date should not be unduly far removed from the date in the request for an opinion. The solution proposed by the Commission departments is to send immediately, on receipt of the request for an opinion, an acknowledgement of receipt showing the exact date on which the request was received. The two-month period would be calculated from that date. (c) The competent authorities of Member States whose agreement is requested for the establishment of a regular coach service must notify the authorizing authority of their decision within two months from the date of receipt of the request for an opinion. If, after this time limit expires, the authorizing authority has received no reply, the authorities consulted are deemed to have given their agreement and the authorizing authority may then grant the authorization. Article 7(1) requires the authorizing authority to forward to the competent authorities of all the Member States in whose territories passengers are picked up or set down a copy of the application and of any other relevant documentation. It is often the case that the authorities of the Member States in which passengers are picked up or set down request additional information and that the two-month time limit referred to above expires before such information is provided. The Commission departments suggested on the basis of consultations with certain Member States that the authorizing authority should: - forward all the relevant information and documentation together as soon as the matter is referred to the authorities of the other Member States in accordance with Article 7(1); supply the additional information requested without delay, provided that the request for such information is justified and not merely a delaying tactic. The checks necessary for applying this Regulation (e. g. Article 7(4)(a) and (b)) must be carried out within the time limits laid down in Article 7(2) and (3). The Commission departments considered that, if the authorizing authority fails to forward the documents in good time or if an unjustified request is made by the authorities whose agreement is needed, the procedure for reaching agreement laid down in Article 7(1) and (2) has not enabled the authorizing authority to decide on the application and the matter may be referred to the Commission in accordance with Article 7(6). (d) Finally, in accordance with Article 7(6), if the procedure for reaching the agreement referred to in paragraph 1 does not enable a decision to be taken, the matter may be referred to the Commission within three months of the date of submission of the application by the transport undertaking. The matter may no longer be validly referred to the Commission on expiry of this period, as has been the case on several occasions. 4. Reasons for rejecting the application (Article 7(4)(a) and (b) (a) The competent authorities of one Member State raised a problem concerning Article 7(4)(a), first indent, which states that the application for authorization may be rejected if the applicant is unable to provide the service that is the subject the of the application with equipment directly available to him, since Regulation does not require the applicant to give an account of the equipment at his direct disposal. Article 6(3) of the Regulation states that persons applying for authorization shall provide any further information which they consider relevant or which is requested by the authorizing authority. In this context, the Commission departments suggested to applicants for authorization that they should supply the authorizing authority motu proprio with all necessary information to enable it to judge whether the equipment directly available is sufficient to perform the service which is the subject of the application. (b) Article 7(4)(b)(i) states that the application for a new authorization may also be rejected "if it is shown that the service in question would directly compromise the existence of regular services already authorized, except in cases in which the regular services in question are carried out only by a single carrier or group of carriers". Consequently, the request for new authorizations may be refused if there are already two other services operating on this'route, but proof must still be supplied that the new service would directly compromise the existence of the regular services already authorized. It is up to the competent authorities to provide this proof, rather than for the undertaking making the application to prove the existence of a new clientele. Consequently, the grounds for rejection laid down in Article 7(4)(b)(i) of Regulation 684/92 cannot be automatically and systematically invoked whenever it is discovered that two services have already been authorized for a given link. (c) The refusal of authorization on the grounds that the new service might directly compromise the existence of regular services already authorized pursuant to Article 7(4)(b)(i) has posed one of the thorniest problems of interpretation, since the Regulation does not provide clear criteria for deciding what it means. The Commission departments stressed that, for the purposes of defining this concept, account had to be taken of the principle of maintaining the economic and financial balance of regular services already authorized, so that it was necessary to ascertain whether the entry into the market of a similar new service would disturb the economic and financial balance of the undertakings in relation to the investments in the operation of the regular service in question, putting in jeopardy the very existence or economic survival of the services already authorized. (d) According to the information available to the Commission, no request for authorization has ever been rejected on the grounds stated in (b)(ii) of Article 7(4). 2 However, the concept of a "comparable rail service on the direct 10 sections concerned" in that provision was the subject of a joint declaration by the Council and Commission entered in the minutes of the Council meeting which finally adopted Regulation 684/92. According to this declaration, a "comparable rail service on the direct sections concerned" may be interpreted as a comparable service in terms of fares, frequency and duration of journey. The expression "direct sections" must be construed in the geographical sense and, in keeping with the criteria concerning comparability with rail services, does not exclude a change of vehicles or possible connections involving changes of platform. The request for new authorizations may be rejected if a comparable rail service would be seriously affected by the establishment of the new coach service, but it is necessary to provide actual proof. It is for the competent authorities to provide this proof, rather than for the undertaking making the application to prove the existence of a new clientele. Consequently, the mere fact that a comparable rail service exists for a given link cannot automatically and systematically be taken as justification for rejecting an authorization. D. ACTION BY THE COMMISSION - ARBITRATION Article 7(6) Article 7(6) of Regulation 684/92 provides that, if the procedure for reaching agreement between the competent authorities of all the Member States in whose territories passengers are picked up or set down does not enable the authorizing authority to decide on an application, the mattermay be referred to the Commission within three months of the date of submission of the application. After consulting the Member States concerned, the Commission has to take a decision within six weeks, which takes effect within 30 days of its notification to the Member States concerned. Article 14 of Regulation 517/72 already provided for the possibility of referral to the Commission in the event of disagreement between the competent authorities, although it did not specify any time limit for this procedure. The Commission took several decisions in the framework of that Regulation. Regulation 684/92, by contrast, sets very strict, short time limits. The Commission was asked to intervene officially on three occasions, but was obliged to refrain from taking a formal decision since referral in all cases was made outside the period of three months from the date of submission of the application for authorization. In spite of this, the Commission departments have always been willing, in the spirit of Article 7(6) of Regulation 684/92, to examine together with the parties concerned how an agreement might be reached, notably by organizing meetings with the responsible officials of the national administrations of the parties concerned. In some cases the Commission proposed a course of action which was accepted by the parties. Two cases referred to the Commission were satisfactorily solved, leading to an authorization issued 11 by the authorizing authority. In one case only which was still outstanding when this report was drafted, the Commission's good offices did not lead to an arrangement between the parties. The future amendment of the Regulation should allow longer time limits for referral to the Commission pursuant to Article 7(6). The Commission departments also received complaints regarding unsatisfactory application of the Regulation owing to interpretation problems on the part of the national administrations. E. RELATIONS WITH NATIONAL EXPERTS AND THE TRADE The Commission departments attach great importance to relations with the national experts responsible for applying the Regulation to international transport by coach and bus and with the trade. Meetings with the national experts have been organized annually since the entry into force of the Regulation, in July 1992, July 1993, September 1994 and in June 1995. The aim of these meetings was to gain first-hand knowledge of the problems and difficulties encountered by the national authorities responsible for implementing the Regulation in practice, and to notify all the Member States of the interpretations of the various provisions of the Regulation by the Commission departments. These exchanges of view were considered fruitful by both sides and the suggestions made by the experts have been taken into account for the purposes of amending the Regulation, particularly as regards the simplification of procedures. In addition, relations with all the national and European professional associations have been intensified; two meetings were organized with the representatives of these associations in January 1994 and September 1994 with a view to finding out the operators' problems in connection with implementation of the Regulation. The trade was also consulted at European level in September 1995 on the subject of the proposal for amendments to the Regulation. F. EXTERNAL RELATIONS As already discussed in connection with the scope of the Regulation vis-à-vis third countries, Regulation 684/92 applies in the event of carriage from a Member State to a third country and vice versa, to the part of the journey on the territory of the Member State of picking up and setting down, after conclusion of the necessary agreement between the Community and the third country in question. Article 1(3) states that "pending the conclusion of agreements between the Community and the third countries concerned, this Regulation shall not affect provisions relating to the carriage referred to in paragraph 2 contained in bilateral agreements concluded by Member States with those third countries. However, Member States shall endeavour to adapt those agreements to ensure compliance with the principle of non-discrimination between Community carriers". 12 When the Regulation was finally adopted, the Council and Commission declared that they would take the appropriate measures in conformity with the provisions of the Treaty with a view to concluding any agreements that might prove necessary between the Community and third countries for the purposes of uniform application of the Regulation. The Commission, for its part, noted with regret that the text adopted by the Council did not permit significant progress towards ensuring the freedom of services in links between Member States and third countries. The Commission, in order to comply with the obligations incumbent upon it under the Treaty, presented a recommendation for a Council Decision in December 1992 on the opening of negotiations between the Community and certain third countries in the field of carriage of goods and passengers by road. At its meeting of 7 December 1995 the Council adopted a negotiating mandate for the Commission concerning the opening of negotiations on occasional international passenger services by coach and bus. In addition, the Council decided on 14 March 1995 to authorize the Commission to negotiate an agreement between the European Community and the Swiss Confederation in the field of road and air transport which includes the carriage of passengers by coach and bus. The negotiations with Switzerland are in progress. Regulation 684/92 applies to Norway, Iceland and Liechtenstein as parties to the Agreement on the European Economic Area. Following the accession of Austria, Sweden and Finland to the Community and the application of Regulation 684/92 to the European Economic Area, the ASOR Agreement3 in fact only applies to occasional services between the Member States of the Community and Switzerland and Turkey. G. AGREEMENTS BETWEEN THE MEMBER STATES (Article 18 of the Regulation) Article 18 of the Regulation states that "Member States may conclude bilateral and multilateral agreements on the further liberalization of the services covered by this Regulation, in particular as regards the authorization system and the simplification or abolition of control documents". On the basis of this provision, the Member States of the Community and of the European Economic Area agreed to waive the obligation to carry a set of translations of the journey form in all Community languages on board the vehicle carrying out a transport service exempt from authorization. Agreement on the International Carriage of Passengers by Road by means of Occasional Coach and Bus Services, signed in Dublin on 26 May 1982. 13 Pursuant to Article 11(2), the control document consists of a journey form and a set of translations of the journey form. Article 15(1) requires the control document to be carried on the vehicle and to be presented at the request of any authorized inspecting officers. The Commission will take account of this agreement with a view to making the necessary amendments to the current text of the Regulation. In addition, the Committee of Ministers of the Benelux Economic Union adopted a Decision on 20 December 1994 laying down certain rules applicable to regular services, shuttle services and occasional services within the Benelux area. Among other things, these rules concern the possibility of granting provisional authorization for regular services without the prior agreement of the host State under certain conditions, the derogation from the condition of a group previously assembled in the case of shuttle and occasional services and exoneration from authorization for residual occasional services. H. THE TRANSPORT DOCUMENTS In implementation of Article 5(4), Article 6(2), Article 11(6) and Article 13(3), the Commission on 1 July 1992, after consulting the Member States, adopted a Regulation laying down detailed rules for the application of Council Regulation (EEC) No 684/92 as regards documents for the international carriage of passengers,4 which contains the model of a control document and rules governing its use, the model of applications for authorization, of the authorization itself and of the certificates. This Regulation applies simultaneously with the basic regulation, i. e. from 1 June 1992, although Article 11 provides for the possibility of using the models of the documents laid down in former Regulations 1016/68 and 1172/72 for a transitional period until 31 December 1993 on condition that they are ' amended, legibly, indelibly and appropriately insofar as it is necessary, in order to conform to the provisions of Regulation 684/92. The objective of this Article was to enable the Member States to print and distribute the new documents and use up stocks of old documents. Despite this additional period, however, some Member States have had difficulties in issuing the new documents at national level. In response to requests from the professional associations in the sector of international carriage of passengers by coach and bus and by the national experts, the Commission on 25 October 1993 adopted Regulation 2944/93 amending Commission Regulation (EEC) No 1839/92 with regard to control documents for shuttle services with accommodation and for occasional services,5 none of which are subject to authorization. Two significant changes were made to the new journey forms: 1. The model control document for shuttle services with accommodation and for occasional services was standardized, whereas the previous system had two separate journey forms. Commission Regulation 1839/92, OJ No L 187, 7. 7. 1992, p. 5. O J N o L 2 6 6, 27. 10. 1993, p. 2. 14 The "pictogram" system on the lines of the ASOR model journey form was introduced to make it simpler and easier to use and check by the competent officials. I STATISTICS ON THE NUMBER OF AUTHORIZATIONS GRANTED BY THE MEMBER STATES. In order to assess the extent to which Regulation 684/92 is being applied, it has to be borne in mind that to a very large extent it favours international passenger transport services not subject to authorization, i. e. occasional services. It is thus difficult to quantify this part of the Regulation given that no prior official steps are necessary. By contrast, the table below shows the number of authorizations granted by the Member States for each of the categories of international passenger transport services still subject to authorization. These figures include all the authorizations granted since the entry into force of Regulation 684/92. These figures supplied by the Member States clearly show that the number of regular services created under the present system has significantly increased, with new routes being offered that often serve peripheral areas of the Community and so promote the mobility of its citizens. However, the table also shows that certain categories of services subject to authorization provided for by the present legislation, namely shuttle services without accommodation and special regular services, are not particularly attractive to the transport undertakings. Consequently the Commission makes provision in its proposal for a Regulation amending Regulation 684/92 for abolishing the shuttle category of services and liberalizing all special regular services. Given the small number of authorizations granted for the latter by Member States, this is unlikely to disrupt the market for international coach services. Furthermore, the current legislation has a category of residual occasional services for all services that cannot be classified in the other categories. The Spanish authorities alone have granted 80 authorizations to this category, but its use is nonetheless insignificant, since the very same services can be classed in the occasional services category specified in Article 2(3. 1)(b) of Regulation 684/92. 15 TABLE ON THE NUMBER OF AUTHORIZATIONS GRANTED BY THE MEMBER STATES Number of authorizations issued under Regulation N ° 684/92 Member State (M. S. ) Regular Service Special Regular Service Shuttle Service without accommodation Residual Occasional Service Own-Account Service Situation on Belgium Denmark France Germany Greece Italy 19 22 100 76 12(3) 17 1(1) 0 0 10 0 0 Ireland 51 (4. 1) 0 (4. 2) Luxembourg Netherlands Portugal Spain 5 12 17 3 0 0 6(1. 2) 4(1. 3) 31. 12. 1994 0 5. 5. 1995 83 (1. 2) 19. 5. 1995 0 0 0 0 52 0 31. 1. 1995 27. 2. 1995 9. 3. 1995 14. 2. 1995 No answer received 17. 1. 1995 31. 3. 1995 10. 1. 1995 1 0 8(2) 1 0 0 0 0 80(5) 1 0 0 0 0 0 ' 0 0 0 0 ""* 16 Member State (M. S. ) Regular Service Special Regular Service Shuttle Service without accommodation 1 0 0 0 1 0 0 0 United Kingdom 5 0 0 1 New M. S. Austria Finland Sweden EEA Iceland Norway Residual Occasional Service 16 0 0 0 0 0 0 0 Own-Account Service Situation on 20. 2. 1995 • 16. 3. 1995 22. 2. 1995 21. 06. 1995 (1) (1. 2) (1. 3) (2) (3) (4. 1) (4. 2) (5) With the exception of a specific case of carriage of workers, all the other new special regular services were in the categories defined in Article 2(1. 2) and can be organized on the basis of an agreement concluded between the carrier and the organizer of the carriage. Non-liberalized own-account service. Liberalized own-account service. All services with the UK. 16 authorizations requested and four of them have been rejected. Regular service including special regular services defined in Article 2(1. 2). Special regular services other than those defined in Article 2(1. 2). The occasional residual services authorized are combined air/coach services that could have been included in Article 2(3. l)(b) of Regulation 684/92 and are therefore exempt from authorization. 17 PROPOSAL FOR A COUNCIL REGULATION amending Council Regulation (EEC) No 684/92 on common rules for the international carriage of passengers by coach and bus EXPLANATORY MEMORANDUM A. BACKGROUND 1. 2. The first joint action in the field of the international carriage of passengers by coach and bus dates from the 1960s, when Council Regulation No 117/66/EEC of 28 July 1966 on the introduction of common rules for the international carriage of passengers by coach and bus1 was adopted. In conformity with Articles 7 and 8 of this Regulation, common rules for regular services were laid down by Council Regulation 516/72/EEC of 28 February 1972,2 and common rules for shuttle services by Council Regulation 517/72/EEC of 28 February 1972. 3 The provisions of these two Regulations remained in force until the adoption of Council Regulation (EEC) No 684/92/EEC of 16 March 1992. 4 The latter instrument constitutes the authoritative legal framework for the international carriage of passengers by coach and bus. It lays down the conditions for applying the principle of the freedom to provide services in this sector and applies to all Member States of the Community and, following the entry into force of the EEA Agreement, the countries of the European Economic Area. In practice, it enables carriers to provide international transport services between Member States without discrimination on grounds of nationality or place of establishment, provided that they are authorized in the State of establishment to undertake carriage by coach and bus; meet the conditions laid down in accordance with Community rules on admission to the occupation of road passenger transport operator; meet the legal requirements on road safety as far as the standards for drivers and vehicles are concerned. In addition, the Regulation defines the different transport services and determines for each of them the conditions of market access. Shuttle services with accommodation, most occasional services, practically all special regular services and own-account transport operations do not require authorization. By contrast, all regular services and shuttle services without accommodation, residual occasional services, certain special regular services and certain own-account OJ, 9. 8. 1966, p. 2688. OJ L67, 20. 3. 1972, p. 13. OJ L67, 20. 3. 1972, p. 19. OJ L74, 20. 3. 1992, p. 1. transport operations are still subject to authorization. The procedure for the granting of authorizations has been simplified and, in the event of authorization being rejected, the precise reasons must be given. 4. Article 20 of Regulation 684/92 states that the Commission must report to the Council on its application before 1 July 1995. Before 1 January 1996, the Commission must present to the Council a proposal for a Regulation on the simplification of procedures including - in the light of the report's conclusions - the abolition of authorizations. 5. In response to these provisions, the Commission has drafted a new proposal for a regulation making the following amendments: abolition of the category of international shuttle services abolition of the category of residual occasional services liberalization of all occasional services liberalization of all special regular services and own-account transport operations improved wording of the definition of occasional services introduction of the Community coach licence restoration of competition between regular coach and bus services and regular rail services by deleting point (ii) of Article 7(4)(b) extension of certain time limits. B. JUSTIFICATION OF THE MEASURE AT COMMUNITY LEVEL !• Subsidiarity and proportionality (a) What are the objectives of the proposed measure with regard to the Community's obligations? This proposal aims to continue the liberalization process initiated at Community level in the field of international carriage of passengers by coach and bus. It thus reflects the progress made in completing the internal market. The fundamental objective is to implement the freedom to provide services in the transport sector by eliminating unjustified and/or excessive restrictions, in particular any discrimination against the service provider on grounds of nationality or establishment in a Member State other than that in which the service is to be provided. (b) Does competence for the proposed measure lie solely with the Community or is it shared with the Member States? This is a measure for which the Community has exclusive competence (Article 75(l)a of the Treaty). (c) What forms of action are open to the Community (recommendation, financial support, legislation, mutual recognition, etc. )? 2q This proposal sets out to amend Council Regulation (EEC) No 684/92 and thus it, too, takes the form of a Council regulation. It lays down common rules for the international carriage of passengers by coach and bus in order to prevent distortion of competition. Since a regulation is binding in all its parts and directly applicable in all Member States of the Community, it is the only legal instrument conceivable. (d) Is it absolutely necessary to adopt uniform rules or would a Directive establishing general principles and leaving implementation to the Member States be sufficient? As mentioned in (f) above, this proposal amends an existing regulation and must therefore itself take the form of a regulation. Moreover, the sector in question requires the international carriage of passengers by coach and bus to be carried out under the same conditions using the same control documents. A directive would therefore not be the appropriate instrument. H- Economic advantages of continuing the harmonization process The economic arguments in favour of greater harmonization and liberalization of the rules on international carriage of passengers by coach and bus are as follows: the new proposal for a regulation aims to simplify and clarify the current provisions. Consequently, it abolishes the "shuttle" category by assimilating shuttle services without accommodation to regular services, and shuttle services with accommodation to occasional services. In addition, the proposal aims to restore competition between regular coach and bus services and regular rail services by deleting point (ii) of Article 7(4)(b), and harmonizes and further simplifies the administrative procedures. The new standards will introduce greater flexibility and the more appropriate criteria will open up new markets. The abolition of the restrictions maintained by the current Regulation will enable the transport undertakings to optimize the management of their activities and the profitability of their vehicle fleets. It is also worth noting that, since the entry into force on 1 July 1994 of the Agreement on the European Economic Area, the application of Regulation 684/92 concerns a total population of 370 million inliabitants. It thus offers new opportunities to operators of coach and bus services. These new opportunities may generate new jobs in the transport industry. In order to avoid any distortion of competition, the proposal for a regulation lays down identical conditions of market access for transport undertakings from the European Community and the European Economic Area in conformity with the non-discrimination requirement, so avoiding imbalances between those countries which restrict access to their national market as regards non-residents and those which open it up completely to other carriers. C. EXAMINATION OF THE ARTICLES Article 1 3Q Article 1 of the proposal amends Article 2 of Regulation 684/92 as follows: Urban carriage in frontier areas Regulation 684/92 considers urban carriage in frontier areas as a special regular service, which in turn is defined as a service providing for the carriage of specified categories of passengers to the exclusion of other passengers, insofar as such services are operated under the conditions specified in Article 2(1. 1). Urban carriage in frontier areas is therefore characterized by its "urban", "frontier" quality, and by the fact that certain categories of passengers are carried to the exclusion of others. In actual fact, urban services in frontier areas should be considered as a special case of regular services rather than of special regular services, since urban services in frontier areas must be accessible to all and not only to certain categories of passengers to the exclusion of others. Additional vehicles Article 2(1. 3) of Regulation 684/92 provides that the operation of additional vehicles for existing regular services is governed by the same rules as these regular services, i. e. it is subject to authorization. Such a procedure would not appear to be justified, since Article 10 of the Regulation requires service operators to take all measures to guarantee a transport service that fulfils the standards of continuity, regularity and capacity. Where necessary owing to the growth in demand, the carrier is obliged to operate additional vehicles on the service. This obligation could not be fulfilled if the operator had to follow the authorization procedure, which takes a minimum of three months. The proposed amendment provides for abolition of the authorization obligation for the this amendment will give the operation of additional vehicles. Consequently, undertakings greater flexibility, particularly during periods of increased demand. Shuttle services The proposal for a regulation provides for abolition of the concept of shuttle services. This is justified for several reasons: 1. 2. 3. According to the information available to the Commission departments, this concept does not exist in Member States' internal legislation. The report on the implementation of Regulation 684/92 shows that scarcely any authorizations have been granted for shuttle services without accommodation. There are several similarities between shuttle services without accommodation and regular services, such as the relative regularity of shuttle services (. by means of repeated outward and return journeys. ) and the fact that they also have predetermined stopping points and timetables. It is because of these similarities that Article 4 of the Regulation has stipulated the same conditions of access to the market for both shuttle services without accommodation and regular services. The authorization procedure is the same for the two services, as are the reasons for rejection of the application for authorization set out in Article 7(4). 4i? 4. By contrast, shuttle services with accommodation could be considered as occasional services. For one thing, the conditions of market access and the control document are currently the same. Abolishing the shuttle category of services would greatly simplify the nomenclature of passenger "transport services by coach and bus. These would be classed as regular services, special regular services, occasional services and own-account transport operations. This classification coincides with that used in the legislation of most Member States. Occasional services The concept of occasional services has been considerably simplified. These services are currently defined by default, i. e. those which do not come into the category of regular services or special regular services. The list of these services in Article 2(3. 1) of Regulation 684/92 and in the Annex is deleted. Some elements characterizing occasional services have been included in the definition, but as a guide. Consequently, in order to distinguish between an occasional service and a regular or special regular service, it is necessary to stipulate that the occasional service does not meet the criteria laid down in the Regulation for those two services. As the report on the implementation of Regulation 684/92 shows, the number of authorizations granted by Member States for residual occasional services is insignificant. Abolition of the concept of residual occasional service is therefore justified. Occasional services remain exempt from authorization. By contrast, the organization of parallel or temporary services comparable to existing regular services and serving the same clientele as the latter is subject to authorization according to the procedure laid down in the Regulation. The objective of this provision, which is already contained in Article 2(1. 3) of the current text of Regulation 684/92, is to avoid unfair competition with regular services on the part of "false occasional services", i. e. occasional services exempt from authorization which in practice are regular services. Own-account transport operations The definition of own-account transport operations has been supplemented by an explicit reference to their non-commercial character, which is, moreover, an essential feature of this type of service. Article 2 No comment. Article 3 Article 3 of the proposal introduces a new Article 3a which contains an important innovation in the sector of international carriage of passengers by coach and bus. This 5q to carriers meeting is the "Community licence", which is issued by the competent authorities of the State of in Article 3(1) of establishment Regulation 684/92 and is based on a model contained in the annex to the Regulation. At present, each Member State draws up its own model authorization for international carriage, although the qualitative criteria for operation of these services are laid down by Regulation 684/92. the conditions laid down The Community licence will facilitate checks made outside the State of establishment, particularly in the case of occasional services, since these are exempt from authorization and currently operated under cover of a journey form which provides information on the service, but very little on the carrier involved. The Community licence will be the proof that the carrier is authorized in the State of establishment to undertake international carriage by coach and bus, and that the undertaking in question meets the conditions of access to the profession of road passenger transport operator pursuant to the Community directives. 5 The Community licence will replace the current document(s) issued by the competent authorities of the State of establishment attesting that the carrier is admitted to the market in international carriage of passengers by road. Article 4 Article 4 of the proposal amends Article 4 of Regulation 684/92 as regards the arrangements for market access as follows: All occasional services are exempt from authorization, unlike the system under Regulation 684/92 according to which residual occasional services have to be authorized. As the report on the application of Regulation 684/92 shows, Member States issued only an insignificant number of authorizations for residual occasional services. The latter category has therefore been abolished. All special regular services and urban carriage in frontier areas are exempt from authorization if they are covered by a contract concluded between the organizer and the carrier. Article 2(1. 2) of Regulation 684/92 in conjunction with Article 4 requires special regular services to be authorized with the exception of those listed in points (a), (b), (c) and (d) of Article 2(1). In practice, the number of special regular services subject to authorization pursuant to Regulation 684/92 is very limited, as can also be seen from the report on application of the Regulation. Abolition of the authorization requirement for these services is therefore justified. Regular services remain subject to authorization. Article 5 Council Directive 74/562/EEC, OJ L 308, 19. 11. 1974, p. 23, as last amended by Council Directive 89/438/EEC, OJ L 212, 22. 7. 1989, p. 101. No comment. Article 6 Article 6 of the proposal amends Article 5 of Regulation 684/92 with regard to additional vehicles. No comment on paragraphs 1 to 4. A new paragraph 5 is inserted. Article 1(3) of the proposal for an amendment provides for the abolition of the authorization obligation for the operation of additional vehicles. The proposed amendment to Article 6 requires the carrier who makes additional vehicles available to the operator of the regular service to carry the following documents on the vehicle: a true copy of the Community licence of the carrier providing the additional vehicle; a copy of the equivalent contract or document between the operator of the regular service and the carrier providing the additional vehicle; a copy of the authorization of the regular service. This new system will clarify the difference between the concept of "the use of additional vehicles" and "subcontracting". As already discussed, the use of additional vehicles is justified by the temporary or seasonal growth in demand such that the holder of the authorization would be unable to meet the carriage obligation with the vehicles at his or her direct disposal. A carrier who makes vehicles available to the holder of the authorization for the regular service through a hire contract, for example, is not named in the authorization document since the regular service is operated on behalf of the authorization holder and for a very specific period. The subcontractor, by contrast, is a transport undertaking which becomes responsible for the operation of the regular service on a permanent basis under the terms laid down by the Regulation and by the authorization. The subcontractor must be approved by the authorities involved in issuing the authorization and must figure in the authorization as the undertaking which operates the service on a subcontracting basis, and not as an undertaking which might be chosen from a list at a given moment to provide an ad hoc service. Article 7 Article 7 of the proposal amends Article 6 of Regulation 684/92 concerning the submission of applications for authorization of regular services. 7c? No comment on paragraph 1. Paragraph 3 of that Article specifies that persons applying for authorization shall provide any further information which they consider relevant or which is requested by the authorizing authority. This provision was developed by Article 7 of Commission Regulation 1839/92 laying down detailed rules for the application of Council Regulation (EEC) No 684/92 as regards documents for the international carriage of passengers. This Article stipulates the information which must be supplied by the applicant for the authorization, in particular the timetable, fare scales, evidence that the applicant meets the conditions applicable in the State of establishment to the international carriage of passengers by coach or bus, information regarding the type and volume of traffic expected and a map showing the route and stopping points. The proposed amendment concerns the requirement to draw up a plan with operational details of the regular service in order to satisfy the Community legislation on driving and rest periods6 and to supply a copy of the Community licence for the international carriage of passengers by road for hire or reward laid down in Article 3a. The obligation to draw up an operational plan for the regular service is all the more justified as it requires the carrier to organize stops in line with the Community legislation on driving and rest periods. It therefore concerns a prior check of compliance with this legislation, the fundamental objective of which is to ensure maximum road safety. Article 8 Article 8 of the proposal amends Article 7 of Regulation 684/92 on the authorization procedure for regular services. 1. It concerns, firstly, extending all the time limits laid down in that Article, since they have proved too short in practice: the period for referral to the Commission pursuant to Article 7(6) will be four months instead of three from the date of submission of the application; the period within which the Commission decides on a referral is ten weeks instead of six. 2. The second important amendment to Article 7(2) of the Regulation concerns the exact date from which the two-month period is calculated. This Article stipulates that the competent authorities of the Member States whose agreement has been requested regarding the issuing of an authorization for a regular service have two months within which to notify the authorizing authority of their decision. This period is calculated from the date of receipt of the request for an opinion. Only the authority whose opinion has been sought knows the exact date of receipt. Council Regulation (EEC) No 3820/85 and 3821/85 of 20 December 1985, OJ L 370, 31. 12. 1985, p. l. 8« 3. 4. The problem can be solved by sending immediately on receipt of the request for an opinion an acknowledgement of receipt showing the exact date on which the request was received. The two-month period would be calculated from the date shown on the acknowledgement. Efficient administration requires that the date in the acknowledgement of receipt should not be too far removed from the date shown in the request for an opinion. The current wording of Article 7(5) states that "the authorizing authority may refuse applications only on the basis of reasons compatible with this Regulation". This provision should be applicable not only to the authorizing authority, which is the authority that must formally grant the authorization, but also to the competent authorities of all Member States on whose territories passengers are picked up or set down and who participate in the construction of the agreement necessary to grant the authorization. This is the objective of Article 8(5) of the draft amendment. The draft amendment provides for deleting point 4(b)(ii) of Article 7 according to which: "The application may be rejected: (ii) if it is shown that the said service would seriously affect the viability of a comparable rail service on the direct sections concerned. " Deleting this provision is justified from the point of view of the principle of freedom of competition between the various transport modes. Furthermore, according to the available information, no authorization has been rejected for this reason. In addition, the wording in 4(a) and (b) "An application may be rejected if :. " has been replaced by the phrase "Authorization shall be granted unless:. ". The purpose of this amendment is to limit as far as possible the discretionary powers of the national administrations when they state reasons for refusing applications. Authorization will have to be granted if none of the reasons for rejection specified by the Regulation can be advanced. The first, second and third indents of point (4)(a) and subparagraphs (i) and (iii) of point (4)(b) have been incorporated in full from the text of Regulation 684/92 in the interests of greater clarity of Article 7(4). *r Article 9 No comment Article 10 No comment Article 11 Article 11 of the proposal amends Article 11 of Regulation 684/92. 9* According to Article 11(2) of Regulation 684/92, the control document consists of a journey form and a set of translations of the journey form. Article 15(1) requires the control document to be carried on the vehicle and presented at the request of any authorized inspecting officer. The objective of this amendment is to abolish the obligation to carry the set of translations of the journey form on the vehicle. On the basis of Article 187 of Regulation 684/92 the Member States of the Community and of the European Economic Area have agreed to waive the requirement for the set of translations of the journey form in all Community languages to be carried on a vehicle undertaking a transport service exempt from authorization. Article 12 This Article deletes Article 12 of Regulation 684/92 according to which "within the framework of an international shuttle service with accommodation, or an international occasional service, a carrier may carry out occasional services (local excursions) in a Member State other than that in which it is established (. )". In practice, this provision enables non-resident carriers to carry out strictly national services under certain conditions. This issue has already been solved in the framework of Council Regulation (EEC) No 2454/92 laying down the conditions under which non-resident carriers may operate national road passenger transport services within a Member State. Pursuant to Article 3 of this Regulation, permission to operate cabotage transport operations in the form of non-regular services will be restricted to closed-door tours until 31 December 1995. After that date, all cabotage transport operations will be authorized for all non-regular services. Consequently, since the entry into force of Regulation 2454/92, cabotage in the form of "local excursions" as referred to in Regulation 684/92 has been liberalized to a much greater extent than provided for in Article 12 of the latter. This provision has thus become obsolete. Any carrier wishing to undertake a cabotage operation following an international service will be able to do so under the conditions set out in the cabotage Regulation. Article 13 Article 13 of the proposal deletes Article 13(2) of Regulation 684/92. The objective of this amendment is to exempt from authorization aU services for own account and not only those listed in Article 2(4) of Regulation 684/92. Article 18 of the Regulation states that "Member States may conclude bilateral and multilateral agreements on the further liberalization of the services covered by this Regulation, in particular as regards the authorization system and the simplification or abolition of control documents". 10 a Article 14 No comment Article 15- Article 15 of the proposal amends the second paragraph of Article 19 of Regulation 684/92. This amendment concerns the penalties that Member States must adopt to implement the Regulation. These penalties must be effective, proportionate and dissuasive. The wording of the current proposal is taken from the model proposed in the Annex to the Commission Communication to the Council and European Parliament on the role of penalties legislation implementing Community (COM(95)162 final). internal market in Article 16 Article 16 of the proposal concerns the deletion of the Annex to Regulation 684/92 containing the description of certain occasional services exempt from authorization. This description is now redundant since the proposal liberalizes all occasional services. Articles 17, 18 and 19 No comment. 1 1* PROPOSAL FOR A COUNCIL REGULATION amending Council Regulation (EEC) No 684/92 on common rules for the international carriage of passengers by coach and bus THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 75, paragraphe 1, thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the Economic and Social Committee, In cooperation with the European Parliament, Whereas, in accordance with Article 75(l)(a) of the Treaty, the establishment of a common transport policy entails, inter alia, laying down common rules applicable to the international carriage of passengers by road; Whereas the definition of the various international coach and bus services should be simplified; Whereas international coach and bus services may be classed as regular services, special regular services and occasional services; whereas, therefore, the concept of shuttle service may be abolished; Whereas a system of market access exempt from authorization should be introduced for all occasional services, special regular services and all own-account transport operations; Whereas regular services should continue to be subject to authorization; Whereas intermodal competition should be preserved; whereas, therefore, the railways should no longer have priority in the context of the establishment of a coach or bus service; Whereas, in order to facilitate the inspection of transport operations, the international carriage of passengers by road for hire or reward should be subject to a Community licence conforming to a harmonized model; Whereas the time limits involved in the procedure for the issue of authorizations should be made more flexible; Whereas Member States must take the necessary measures to implement this Regulation, in particular as regards effective, proportionate and dissuasive penalties; Whereas the application of this Regulation must be monitored on the basis of a report to be presented by the Commission, 12A HAS ADOPTED THIS REGULATION: Article I Article 2 of Regulation 684/92 is amended as follows: (1) A new subparagraph is added to point 1. 1: "Regular services operated within a conurbation situated in two or more Member States shall be designated "urban carriage in frontier areas ". " (2) Paragraph (d) of point 1. 2 is deleted. (3) In point 1. 3 the words "additional vehicles and" are deleted. (4) Point 2 relating to shuttle services is deleted. (5) Point 3. 1 is replaced by the following: "Occasional services are services meeting neither the definition of a regular service nor the definition of a special regular service, and which are that they carry groups of passengers characterized above all by the fact previously assembled, or that they are organized at the request of the customer, or comprise accommodation or other non-ancillary tourist services in the course of the journey or at thie place of destination, or are organized on the occasion of special events, or comprise an empty journey in the course of the outward or return journey or are organized for the purpose of carrying out tours. The organization of parallel or temporary services comparable to existing regular services and serving the same public as the latter shall be subject to authorization in accordance with the procedure laid down in Section II of this Regulation". (6) Point 3. 2 is deleted. (7) Point 4 is replaced by the following: "Own-account transport operations are those carried out for non-commercial purposes, notably by an undertaking for its own employees or by a non profit-making body for the transport of its members in connection with its social objective provided that: - the transport activity is only an ancillary activity for the undertaking or body, - the vehicles used are the property of that undertaking or body or have been obtained on deferred terms by them or have been the subject of a long-term leasing contract and are driven by a member of the staff of the undertaking or body. " (1) The first indent of Article 3(1) of Regulation 684/92 is amended as follows: Article 2 13 "- is authorized in the State of establishment to undertake carriage by means of regular services, special regular services or occasional services by coach and bus". A new Article 3a is added in Regulation 684/92: Article 3 "Article 3a Community licence 1. Any carrier meeting the criteria laid down in Article 3(1) must hold a Community licence issued by the competent authorities of the State of establishment in accordance with the model in the Annex to this Regulation. 2. 3. 4. 5. 6. 7. 8. The competent authorities of the State of establishment shall issue the holder with the original of the Community licence, which shall be kept by the transport undertaking, and the number of certified true copies corresponding to the number of vehicles at the disposal of the holder of the Community licence, either in full ownership, or in another form, notably by virtue of an instalment-purchase contract, a hire contract or a leasing contract. The Community licence shall be established in the name of the carrier and shall be ^on-transferable. A certified true copy of the Community licence shall be carried on the vehicle and shall be presented at the request of any authorized inspecting officer. The Community licence shall be issued for a period of five years which shall be renewable. The Community licence referred to in paragraph 2 shall replace the document issued by the competent authorities of the State of establishment certifying that the carrier has access to the market for the international carriage of passengers by road. When an application for a licence is submitted, and at the latest five years after its issue and at least every five years subsequently, the competent authorities of the State of establishment shall verify whether the carrier meets or continues to meet the conditions laid down in Article 3(1). Where the conditions laid down in Article 3(2) are not met, the competent authorities of the State of establishment shall reject the issue or renewal of the Community licence by means of a reasoned decision. The competent authorities shall withdraw the Community licence where the holder: no longer meets the conditions laid down in Article 3(1) 14* has supplied inaccurate information regarding the data required for the issue of the Community licence. 9. In the event of serious infringements or of minor and repeated infringements of the regulations relating to transport, the competent authorities of the State of establishment of the carrier who has committed the offence may take action involving in particular the temporary and/or partial withdrawal of the true copies of the Community licence. These penalties shall be determined on the basis of the gravity of the offence committed by the holder of the Community licence and in the light international of the total number of true copies the holder has for transport operations. 10. Member States shall guarantee the right of the applicant for, or holder of a Community licence to appeal against a decision by the competent authorities of the State of establishment to reject or withdraw this licence. 11. Member States shall inform the Commission no later than 31 January of every year of the number of carriers holding a Community licence as at 31 December of the previous year and of the number of certified true copies corresponding to the number of vehicles in circulation on that date ". f Article 4 1. Article 4 of Regulation 684/92 is replaced by the following: "1. Occasional services as defined in Article 2(3. 1) shall not require authorization. 2. Special regular services defined in Article 2(1. 2) and the urban carriage in frontier areas defined in the second subparagraph of Article 2(1. 1) shall not require authorization if they are covered by a contract concluded between the organizer and the carrier. 3. Empty journeys by vehicles in connection with the transport operations referred to in paragraphs 1 and 2 shall likewise not require authorization. 4. Regular services as defined in the first subparagraph of Article 2(1. 1) shall require authorization in accordance with Articles 5 to 10. 5. Arrangements for own-account transport operations are set out in Article 13. " Article 5 1. The title of Section II of Regulation 684/92 is amended as follows: "Regular services subject to authorization. " Article 5 of Regulation 684/92 is amended as follows: Article 6 15* 1. 2. 3. 4. 5. In the second subparagraph of paragraph 1, the words "or a shuttle service" are deleted. In paragraph 2 the words "and accommodation" are deleted. two years for shuttle services without In paragraph 3(d) the words "for regular services" are deleted. In paragraph 5 the words "and shuttle services without accommodation" are deleted. A new paragraph 6 is inserted: "6. In the case of additional vehicles being used for existing regular services, a copy of the corresponding contract or document between the operator of the regular service and the carrier providing the additional vehicles and a copy of the authorization of the regular service must be carried on the vehicle. A carrier providing additional vehicles must hold the Community licence provided for in Article 3(a). A true copy of the Community licence must be carried on the additional vehicle. " Article 6 of Regulation 684/^2 is amended as follows: Article 7 1. 2. Paragraph 1 is replaced by the following text: "Applications for authorization of regular services shall be submitted to the competent authorities of the Member State in whose territory the place of departure is situated, hereinafter referred to as the "authorizing authority". The place of departure shall mean "one of the termini of the service". " Paragraph 3 is replaced by the following text: "Persons applying for authorization shall provide any further information which they consider relevant or which is requested by the authorizing authority, in particular an operational plan of the regular service for the purpose of complying with Community legislation on driving and rest periods and a copy of the Community licence for international carriage of passengers by road for hire or reward provided for in Article 3(a). " Article 8 Article 7 of Regulation 684/92 is replaced by the following text: 1. "Authorizations shall be issued in agreement with the competent authorities of all the Member States in whose territories passengers are picked up or set down. The authorizing authority shall forward to such authorities - as well as to the competent authorities of Member States whose territories are crossed without 16A passengers being picked up or set down - a copy of the application, together with copies of any other relevant documentation, and its assessment. The competent authorities of the Member States whose agreement has been requested shall notify the authorizing authority of their decision on the application within two months. This time limit shall be calculated from the date of receipt of the request for an opinion that is shown in the acknowledgement of receipt which the authorities concerned must send to the authorizing authority. The acknowledgement of receipt must conform to a model drawn up by the Commission after consultation of the Member States. If within this period, the authorizing authority has received no reply, the authorities consulted shall be deemed to have given their agreement and the authorizing authority shall grant the authorization. The authorities of the Member States whose territories are crossed without passengers being picked up or set down may notify the authorizing authority of their comments within the time limits laid down in the first subparagraph. Subject to paragraphs 7 and 8, the authorizing authority shall take a decision on the application within three months of the date of submission of the application by the carrier. Authorization shall be granted unless: (a) the applicant is unable to provide the service that is the subject of the application with equipment directly available to him; (b) in the past the applicant has not complied with national or international legislation on road transport and in particular the conditions and requirements relating to authorizations for international road passenger services or has committed serious breaches of legislation in regard to road safety, in particular with regard to the rules applicable to vehicles and driving and rest periods for drivers; (c) in the case of an application for renewal of authorization, the conditions of authorization have not been complied with; (d) it is shown that the service in question would directly compromise the existence of regular services already authorized, except in cases in which the regular services in question are carried out only by a single carrier or group of carriers; (e) it appears that the operation of services covered by the application is aimed only at the most lucrative of the services existing on the links concerned. The fact that an operator offers lower prices than are offered by other road transporters or the fact that the link in question is already operated by other road carriers may not in itself constitute justification for rejecting the application. 17-9 5. 6. 7. 8. 9. The authorizing authority and the competent authorities of all the Member States involved in the procedure to reach agreement provided for in paragraph 1 may refuse applications only on the basis of reasons compatible with this Regulation". If the procedure for reaching the agreement referred to in paragraph 1 does not enable the authorizing authority to decide on an application, the matter may be referred to the Commission within a the time limit of four months calculated from the date of submission of the application by the carrier. After consulting the Member States concerned, the Commission shall within ten weeks take a decision which shall take effect within thirty days of the notification of the Member States concerned". The Commission decision shall continue to apply until such time as agreement is reached between the Member States concerned. Having completed the procedure laid down in this Article, the authorizing authority shall inform all the authorities referred to in paragraph 1 of its decision, sending them a copy of any authorization; the competent authorities of the transit Member States may indicate that they do not wish to be so informed. " Article 9(4) of Regulation 6^4/92 is deleted. Article 9 Article 10 The title of Section III of Regulation 684/92 is amended as follows: "Occasional services and other services exempt from authorization". Article 11 Article 11 of Regulation 684/92 is amended as follows: 1. 2. The following is deleted from paragraph 2: "and a set of translations of the journey form". The following is deleted from paragraph 3: "and shuttle services with accommodation". 3. Point (c) of paragraph 4 is deleted. Article 12 of Regulation 684/92 is deleted. Article 12 18* Article 13(2) is deleted. Article 13 Article 14 Article 14 of Regulation 684/92 is amended as follows: 1. 2. The following is deleted from the first subparagraph of paragraph 1 : "or a shuttle service". The following is deleted from the last indent of paragraph 1: "and, in the case of passengers who have paid for accommodation, the total price of the accommodation". including accommodation, and details of journey, the The second paragraph of Article 19 of Regulation 684/92 is amended as follows: Article 15 "Member States shall adopt measures relating in particular to the means of carrying out checks and the system of penalties applicable to infringements of the provisions of this Regulation, and take all the measures necessary to ensure that those penalties are applied. The penalties thus provided for shall be effective, proportionate and dissuasive. Member States shall notify the relevant measures to the Commission not later than 31 December 1996, and shall notify any subsequent changes as soon as possible. They shall ensure that all such measures are applied without discrimination as to the nationality or place of establishment of the carrier. " The Annex to Regulation 684/92 is deleted. Article 16 Article 17 Member States shall, before 31 December 1996 and after consulting the Commission, adopt the measures necessary for the implementation of this Regulation and notify such measures to the Commission. Article 18 The Commission shall report to the Council before 31 December 1999 on the application of this Regulation. 19* Article 19 This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Communities. It shall apply from 1 June 1996. This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, For the Council 20^ * ANNEX EUROPEAN COMMUNITY (a) (Heavy-duty paper, blue - dimensions DIN A4) (First page of the licence) (Text in the official language(s) or one of the official languages of the Member States issuing the licence) Distinctive symbol of the country8 State issuing the licence Designation of the competent authority or body LICENCE No. for the international carriage of passengers by coach and bus for hire or reward The holder of this licence9 is authorized to carry out international carriage of passengers by road for hire or reward in the territory of the Community under the conditions laid down by Council Regulation (EEC) No 684/92 of 16 March 1992, as amended by Regulation. and in accordance with the general provisions of this licence. Comments: This licence is valid from to Issued in , on 8 9 10 Distinctive symbol of the country: (B) Belgium, (DK) Denmark, (D) Germany, (GR) Greece, (E) Spain, (F) France, (IRL) Ireland, (I) Italy, (L) Luxembourg, (NL) Netherlands, (P) Portugal, (UK) United Kingdom, (FIN) Finland, (A) Austria, (S) Sweden. Full name or business name of the carrier. Signature and stamp of the competent authority or body issuing the licence. 2U General provisions 1. 2. is licence This. amending Council Regulation (EEC) No 684/92 on common rules for the international carriage of passengers by coach and bus. to Council Regulation issued pursuant This licence is issued by the competent authorities of the State of establishment of the carrier for hire or reward who: is authorized in the State of establishment to undertake carriage by means of regular services, special regular services or occasional services by coach and bus; satisfies the conditions laid down in accordance with Community rules on admission to the occupation of road passenger transport operator in national and international transport operations; meets legal requirements on road safety as far as the standards for drivers and vehicles are concerned. 3. It permits the international carriage of passengers by coach and bus for hire or reward on all transport links for journeys carried out in the territory of the Community: where the place of departure and place of destination are situated in two different Member States, with or without transit through one or more Member States or third countries, from a Member State to a third country and vice versa, with or without transit through one or more Member States or third countries, between third countries crossing the territory of one or more Member States in transit, 4. 5. and empty journeys in connection with transport operations under the conditions laid down by Regulation 684/92 as amended by Regulation. This licence is personal and non-transferable. It may be withdrawn by the competent authorities of the Member State of issue where the carrier has in particular: failed to meet all the conditions to which use of the licence was subject; supplied inaccurate information regarding the data required for the issue or renewal of the licence. 22 * 6. 7. 8. The original of the licence must be kept by the transport undertaking. A certified true copy of the licence must be carried on the vehicle carrying out an international transport operation. The licence must be presented at the request of any inspecting officer. The holder must, on the territory of each Member State, comply with the laws, regulations and administrative measures in force in that State, particularly with regard to transport and traffic. 23 BUSINESS IMPACT ASSESSMENT IMPACT OF THE PROPOSAL ON BUSINESS WITH SPECIAL REFERENCE TO SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs) Title of the proposal: Council Regulation on common rules for the international carriage of passengers by coach and bus. Proposal 1. Taking account of the subsidiarity principle, why is Community legislation necessary in this area and what are its main aims? The Community legislation is based on Article 75(1 )a of the Treaty. Its provisions confer on the Community the competence to define common rules applicable to international transport to or from the territory of a Member State or passing across the territory of one or more Member States. In addition, the principle of the freedom to provide transport services implies the elimination of any discrimination against the service provider on grounds of nationality or place of establishment. Furthermore, the proposal responds to the provisions of Article 20 of Council Regulation (EEC) No 684/92 of 16 March 1992 on common rules for the international carriage of passengers by coach and bus, which states in Article 20 that the Commission must submit to the Council before 1 January 1996 a proposal for a regulation on the simplification of procedures including - in the light of the report's conclusions - the abolition of authorizations. The impact on business 2. Who will be affected by the proposal? Which sectors of business? Carriers of passengers by coach and bus for hire or reward and for own account, authorized in their State of establishment to exercise the profession of road passenger transport operator in the field of international transport. Does the proposal affect SMEs more than large businesses? The proposal affects all undertakings, irrespective of their size. Nevertheless, approximately 80% of road transport undertakings are SMEs. Are there particular areas of the Community where these businesses are found? The proportion of SMEs is relatively high in the southern countries of Europe. 3. What will business have to do to comply with the proposal? 24 * In order to benefit from this proposal, which introduces greater flexibility into the provision of transport services, a transport undertaking must be authorized in a Member State in conformity with the relevant Community legislation to exercise the profession of road passenger transport operator in the field of international transport. 4. What economic effect is the proposal likely to have? On employment? The proposal concerns a more liberal system of market access. It therefore opens up new prospects in the field of coach travel and in the medium term will generate new employment in the sector. On investment and the creation of new businesses? Businesses will benefit from the internal market of the European Union and the European Economic Area with a total population of 370 million inhabitants. This large market will doubtless call for new investment on the part of existing firms and the creation of other businesses in the field of coach travel. On the competitive position of businesses? Through the introduction of a more liberal system, access to the passenger transport market will be easier throughout the European Union and the European their services where Economic Area. Operators will be able to offer opportunities present themselves. There is no question that a large single market functioning according the undertakings concerned, and also to citizens who will have a better choice of transport mode owing to greater competition. to uniform rules offers better possibilities to 5. Does the proposal contain measures to take account of the specific situation of SMEs (reduced or different requirements, etc. )? No. Consultation 6. List the organizations which have been consulted about the proposal and outline their main views: A consultation meeting on the new proposal for a Council Regulation amending Regulation (EEC) No 684/92 on common rules for the international carriage of passengers by coach and bus took place on 8 September 1995. The IRU (International Road Union) and EUROCHAMBRES were present. The two organizations declared their support for a simplification of the rules in the new regulation to avoid possible interpretation problems. They welcomed the proposal to abolish, firstly, the "residual occasional service" category, which will simplify the definition of the remaining services and, secondly, the "shuttle service" category, by assimilating shuttle services without accommodation to regular services and those with accommodation to occasional services. 25* In addition, the professional organizations agreed with the Commission's proposal to restore competition between regular coach and bus services and regular rail services. The Commission proposal to provide for a more flexible approach in the case of additional vehicles for operators when demand shows a sudden increase was welcomed, as was the introduction of a "Eurolicence" for coach services as a quality symbol. The Commission took account of the views of the professional organizations consulted in preparing its proposal for a new instrument to amend the common rules on international carriage of passengers by coach and bus. 26- ISSN 0254-1475 COM(96) 190 final DOCUMENTS EN 07 11 06 Catalogue number : CB-CO-96-198-EN-C ISBN 92-78-03186-0 Office for Official Publications of the European Communities L-2985 Luxembourg

Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL REGULATION (EC) amending Council Regulation (EEC) No 2913/92 establishing the Community Customs Code

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 10 05 1996 COM(96) 184 final 95/0182 (COD) Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL REGULATION (EC) amending Council Regulation (EEC) No 2913/92 establishing the Community Customs Code (presented by the Commission pursuant to Article 189 a (2) of the EC-Treaty) EXPLANATORY MEMORANDUM Following the adoption on 14 February 1996 of the first reading opinion of the European Parliament on the proposal for a European Parliament and Council Regulation amending Council Regulation (EEC) No 2913/92 establishing the Community Customs Code, and in accordance with Article 189a of the Treaty, the Commission considers it appropriate to amend its initial proposal, as contained in COM(95) 335 final. The Commission accepts the European Parliament's proposals in substance. Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL REGULATION (EC) amending Council Regulation (EEC) No 2913/92 establishing the Community Customs Code Initial proposal Amended proposal ARTICLE 1(16) Article 212a (Regulation (EEC) 2913/92 Where the customs rules provide relief from import or export duties such relief shall also apply in cases where a customs debt is incurred pursuant to Articles 202 to 205, 210 or 211 where the declarant produces evidence that the other the application of for conditions relief have been satisfied. Where the customs rules provide relief from import or export duties such relief shall also apply in cases where a customs debt is incurred pursuant to Articles 202 to 205, 210 or 211 where the declarant produces evidence that the other the application of conditions relief have been satisfied, without prejudice applicable penalties. anv for to ARTICLE 2a (new) Article 2a The Customs Code as amended by this Regulation shall be published annually its implementing provisions. together with 5 ISSN 0254-1475 COM(96) 184 final DOCUMENTS EN 02 Catalogue number : CB-CO-96-193-EN-C ISBN 92-78-03131-3 Office for Official Publications of the European Communities L-2985 Luxembourg

OPINION OF THE COMMISSION pursuant to Article 189 b (2) (d) of the EC Treaty on the European Parliament's amendments to the Council's common position regarding the proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE ON INVESTOR COMPENSATION SCHEMES

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i COMfvliSSiON Ur i Ht t U K O P t AN UOMMUNli IfcS *. ^ w ^. ft** Brussels, 08. 05. 1996 COM(96) 169 final - COD 47 OPINION OF THE COMMISSION pursuant to Article 189 b (2) (d) of the EC Treaty on the European Parliament's amendments to the Council's common position regarding the EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE proposal for a ON INVESTOR COMPENSATION SCHEMES OPINION OF THE COMMISSION pursuant to Article 189 b (2) (d) of the EC Treaty on the European Parliament's amendments to the Council's common position regarding the proposal for a EUROPEAN PARLIAMENT AND COUNCIL DIRECTIVE ON INVESTOR COMPENSATION SCHEMES 1. STAGE REACHED IN THE PROCEDURE a) On 22 September 1993 the Commission adopted a proposal for a Council Directive on investor compensation schemes1. This proposal was forwarded to the Council on 22 October 1993. The Council forwarded this text to Parliament and to the Economic and Social Committee and on 14 January 1994 began its own examination of the proposal. b) The Economic and Social Committee unanimously adopted an opinion on the Commission proposal at its 312th Plenary Session on 26 January 19942. c) The European Parliament adopted the legislative resolution embodying the opinion of Parliament on the Commission proposal at its sitting on 19 April 19943. d) The European Monetary Institute delivered an opinion on this proposal on 28 July 1995. c) On 13 December 1994 the Commission adopted an amended proposal4 in the light of its consultation of Parliament and of the Economic and Social Committee. 0 On 23 October 1995 the Council adopted the common position which is the subject of this communication. g) In the plenary session of 14 December 1995 the President of the Parliament acknowledged receipt of the common position. 1 COM(93)381 final, OJ N" C 321, 27. 1 1. 1993, p. 15 2 O J N °C 127, 7. 5. 1994, p. I 3 OJN° 128, 9. 5. 1994, p. 80 1 COM(94) 585 final, OJ N"C 382, 31. 12. 1994, p. 27 2 h) On 12 March 1996 the European Parliament adopted unanimously eight amendments to the common position5. In accordance with the procedure described in Article 189 b (2) of the Treaty, the Commission has to deliver an opinion on these amendments. 2. POSITION TAKEN BY THE COMMISSION REPRESENTATIVE AT THE PLENARY SITTING The Commission representative rejected all the eight amendments. 3. COMMISSION OPINION ON THE AMENDMENTS VOTED BY THE EUROPEAN PARLIAMENT a) Purpose of the amendments Amendment N° 1 (Recital N° 16) Its aim is to eliminate the "export-ban" clause. Amendment N° 2 (Article 2. 2,1st indent) Its aim is twofold. On the one hand, the rapporteur considers that schemes should compensate investors not only when the investment firm is in financial difficulties, but in all circumstances On the other hand, the rapporteur considers that the schemes should have the same power as the competent authorities to determine when investors must be compensated. Amendment N° 3 (Article 2. 2, 2nd indent) Its aim and scope is similar to that of amendment N° 2. The only difference is thai the reference is to a judicial authority rather than to competent authorities. Amendment N° 4 (Article 2. 4) It seeks to ensure that the value, to be stipulated by the scheme, of the securities belonging to investors will be their market value. Amendment N° 5 (Article 5. 2) The twelve months' notice to exclude a firm from a scheme is considered too long, it is considered more appropriate to have immediate exclusion. cxt not yet published in the Official Journal Amendment N° 6 (Article 7. 1, 2nd subparagraph) The same objective as amendment N° 1. Amendment N° 7 (Article 7. 2, 2nd paragraph) The same as amendment N" S but applying to the case of branches which have become members of a scheme of a host Member State in order to top-up their coverage. Amendment N° S (Article 9. 2) Its aim is to start counting the three months' period to compensate investors from the date the investment firm has been considered unable to meet its obligations (if the eligibility and the amount of the claim have been established). b) Need for consistency with the Deposit Guarantee Schemes Directive (DGSD^ The text of the common position is very similar to that of the DGSD. The Commission initial proposal differs in several aspects from the final text of the DGSD because when it was adopted (22. 9. 93) the DGSD was still under negotiation. The DGSD was adopted on 30. 5. 94 by co-decision (after passing through the conciliation committee). This means that the DGSD reflects both Council and Parliament's opinion on compensation schemes. The need for consistency between the proposal and the DGSD has been stressed not only by the Council and the Commission. It has also been requested by the Parliament6, by the ECOSOC7, and by Industry representatives (the Banking Federation of the EU). The need for legislative coherence between the proposal and the DGSD is particularly evident in the case of credit institutions because Article 2. 3 of the common position allows them to belong to just one scheme to comply with both directives. Lack of consistency may produce undesirable distortions. c) Commission position For the Commission, the concern for consistency with the DGSD is an important argument, in addition to those developed below, to reject amendments N° 1, 2, 3, 5, 6 and 7. 6 Section B-2. Report A3-0209/94. First Reading. I'oint 3. 3 of the ECOSOC opinion (CES 98. 94) Amendments N° 1 and 6 (not acceptable) The text in the common position is equivalent to that in Recital N° 14 and in Article 4. 1 of the DGSD. The elimination of the export-ban clause, whereby branches in host Member States will not be allowed to otïer a higher protection than that offered by domestic scheme(s), would in principle increase the competition between, and presumably the efficiency of, the investment firms. This is in line with the philosophy underlying the single market. However, it may also produce unwanted volatility and instability in the financial markets. To strike a balance between a higher degree of competition and a higher degree of volatility is not easy "a priori". That is why it seems advisable to establish a short transitory period (in this case until 31. 12. 99) to watch developments closely. Amendments N° 2 and 3 (not acceptable) The text in the Common Position is equivalent to that in Articles I. 3. i and 1. 3. ii of the DGSD. Parliament proposes to go back to Article 2. 2 of the initial Commission proposal. On the one hand, during the discussions in the Council with the Member States it became clear that only investment firms in financial difficulties should trigger the intervention of the scheme because if the investment firm is still financially sound it would be up to it to repair the damage caused to investors. Therefore the wording in the common position would cover, in practice, all common causes (fraud, etc. ) for compensation. On the other hand, it seems more prudent to leave it up to the competent authorities (or judicial authorities) alone to decide when the scheme should intervene. This, in addition, will eliminate the risk of having disputes in case both the authorities and the scheme were allowed to make such a decision. Amendment N° 4 (not acceptable) Parliament proposes to go back to the concept of "market" value inserted in Article 2. 4 of the initial proposal. In the DGSD there is nothing equivalent because securities are not covered there. The concept of market value seems in principle attractive, and useful in some specific cases, but often in practice it may be very difficult to apply. In some cases there are several markets for the same instrument. In others, when securities are highly illiquid, the market value is unavailable. Frequently, there is no organised market for the relevant security. In the case of some derivatives (futures and options) the contracts may have already expired. Given these difficulties, with the use of market value as a general rule, it seems more advisable to give Member States some leeway to devise the precise methods to calculate the most appropriate value in each situation. Amendments N° 5 and 7 (not acceptable) The text in the common position is equivalent to that in Articles 3. 3 and 4. 4 of the DGSD. Parliament proposes to go back to Article 5 of the initial Commission proposal. In the case of amendment N° 5, the immediate exclusion of an investment firm from a scheme will not be to the benefit of the current investors because it will entail the immediate removal of the authorization (the European passport) of the investment firm and therefore it will have to cease immediately its operations. In the case of amendment N° 7, it does not produce the removal of the authorization but it will deprive investors of an extra coverage ("top-up") in case they had to be compensated. Amendment N° 8 (not acceptable) Parliament proposes to go back to the text in Article 10 of the initial Commission proposal. The text in Article 10 of the DGSD is not directly applicable here because "investment" in relation to "deposit" is a less standardised and more sophisticated activity. The text proposed by Parliament does not carry, in practice, any real additional protection to investors because the compensation is still conditional on the fact that the "eligibility and the amount of the claim have been established" and experience shows that in the case of securities it takes a long time (sometimes years) to determine the precise liabilities. EUROPEAN PARLIAMENT 5 March 1996 A4-0047/1 AMENDMENT 1 tabled by the Committee on Legal Affairs and Citizens' Rights RECOMMENDATION FOR SECOND READING Rapporteur: Mr Janssen Van Raay (A4-0047/96) INVESTOR-COMPENSATION SCHEMES Common position of the Council (C4-0523/95 - 00/0471(COD)) Common position of the Council Amendment (Amendment 1 j Recital 16 Deleted than those 16. Whereas market disturbances could be caused bv branches of investment firms established in Member States other than their Member States of origin which offer levels of cover offered bv higher investment firms authorized in their host Member States; whereas it not appropriate that the level or scope of cover offered by compensation schemes should become an instrument of competition; whereas it is therefore necessary, at least during an initial period, to stipulate that neither the level nor the scope of cover offered by a home Member State's scheme to investors at branches located in another Member State should exceed the maximum level or scope offered bv the corresponding scheme in the host Member State; whereas any market disturbances should be reviewed after a number of years, on the basis of the experience acquired and in the light of developments in the financial sector; f PE 197. 378/1 Or. en EUROPEAN PARLIAMENT 5 March 1996 A4-0047/2 AMENDMENT 2 tabled by the Committee on Legal Affairs and Citizens' Rights RECOMMENDATION FOR SECOND READING Rapporteur: Mr Janssen Van Raay (A4-0047/96) INVESTOR-COMPENSATION SCHEMES Common position of the Council (C4-0523/95 - 00/0471(COD)) Common position of the Council Amendment (Amendment 2) Article 2(2), 1st subparagraph, 1st indent the competent authorities have determined that in their view an investment firm appears, for the time being, for reasons directly financial related circumstances, to be unable to meet its obligations arising out of investors' claims and has no early prospect of being able to do so, or its to the competent authorities or investor-compensation scheme have determined that in their view an investment firm appears, for the time being, to be unable to meet its obligations arising out of investors' claims and has no early prospect of being able to do so, or PE 197. 378/2 Or. en EUROPEAN PARLIAMENT 5 March 1996 A4-0047/3 AMENDMENT 3 tabled by the Committee on Legal Affairs and Citizens' Rights RECOMMENDATION FOR SECOND READING Rapporteur: Mr Janssen Van Raay (A4-0047/96) INVESTOR-COMPENSATION SCHEMES Common position of the Council (C4-0523/95 - 00/0471(COD)) Common position of the Council Amendment (Amendment 3) Article 2(2), 1st subparagraph, 2nd indent a judicial authority has made a ruling, for reasons directly related to an investment firm's financial circumstances. which has the effect of suspending investors' ability to make claims against it, a judicial authority or investor- compensation scheme has made a ruling which has the effect of suspending investors' ability to make claims against it, r tm~ 378/3 Or. en EUROPEAN PARLIAMENT 5 March 1996 A4-0047/4 AMENDMENT 4 tabled by the Committee on Legal Affairs and Citizens' Rights RECOMMENDATION FOR SECOND READING Rapporteur: Mr Janssen Van Raay (A4-0047/96) INVESTOR-COMPENSATION SCHEMES Common position of the Council (C4-0523/95 - 00/0471(COD)) Common position of the Council Amendment (Amendment 4) Article 2(4) 4. The amount of an investor's claim shall be calculated in accordance with the legal and contractual conditions, in particular those concerning set off and counter claims, that are applicable to the assessment, on the date of the determination or ruling referred to in paragraph 2, of the amount of the money or the value of the instruments belonging to the investor which the investment firm is unable to pay or return. 4. The amount of an investor's claim shall be calculated in accordance with the legal and contractual conditions, in particular those concerning set off and counter claims, that are applicable to the assessment, on the date of the determination or ruling referred to in paragraph 2, of the amount of the money or the market value of the instruments belonging to the investor which the investment firm is unable to pay or return. 4 PE 197. 378/4 Or. en EUROPEAN PARLIAMENT 5 March 1996 A4-0047/5 AMENDMENT 5 tabled by the Committee on Legal Affairs and Citizens' Rights RECOMMENDATION FOR SECOND READING Rapporteur: Mr Janssen Van Raay (A4-0047/96) INVESTOR-COMPENSATION SCHEMES Common position of the Council (C4-0523/95 - 00/0471(COD)) Common position of the Council Amendment (Amendment 5) Article 5(2) 2. If those measures fail to secure compliance on the part of the investment firm, the scheme may, where national law permits the exclusion of a member, with the express consent of the competent authorities exclude the investment firm from membership of the scheme. The coverage of money or instruments belonging to investors and held by the investment firm or branch thereof at the date of exclusion shall be maintained for twelve months from the date of exclusion. 2. If those measures fail to secure compliance on the part of the investment firm, the scheme may, where national law permits the exclusion of a member, with the express consent of the competent authorities, give not less than twelve months notice of its intention of excluding the investment firm from membership of the scheme. The scheme shall continue to provide cover under the second subparagraph of Article 2(2) in respect of investment business transacted during that period. If, on expiry of the period of notice, the investment firm has not its obligations. the compensation scheme mav. again having obtained the express consent of the competent authorities, proceed to exclusion. met 41 PE 197. 378/5 Or. en EUROPEAN PARLIAMENT 5 March 1996 A4-0047/6 AMENDMENT 6 tabled by the Committee on Legal Affairs and Citizens' Rights RECOMMENDATION FOR SECOND READING Rapporteur: Mr Janssen Van Raay (A4-0047/96) INVESTOR-COMPENSATION SCHEMES Common position of the Council (C4-0523/95 - 00/0471(COD)) Common position of the Council Amendment (Amendment 6) Article 7(1), 2nd subparagraph Deleted Until 31 December 1999. neither the level nor the scope, including the percentage, of the cover provided for may exceed the maximum level or scope of the cover offered by the corresponding compensation scheme within the territory of the host Member State. Before that date the Commission shall draw up a report on the basis of the experience acquired in applying this subparagraph and shall consider the need to continue those provisions. If appropriate, the Commission shall submit a proposal for a Directive to the European Parliament and the Council, with a view to the extension of their validity. •\i PE 197. 378/6 Or. en EUROPEAN PARLIAMENT 5 March 1996 A4-0047/7 AMENDMENT 7 tabled by the Committee on Legal Affairs and Citizens' Rights RECOMMENDATION FOR SECOND READING Rapporteur: Mr Janssen Van Raay (A4-0047/96) INVESTOR-COMPENSATION SCHEMES Common position of the Council (C4-0523/95 - 00/0471(COD)) Common position of the Council Amendment (Amendment 7) Article 7(2), 2nd paragraph If those measures fail to ensure that the branch meets the obligations referred to in this Article, after an appropriate period of notice of not less than 12 months the compensation scheme may, with the consent of the competent authorities which issued the the authorization, branch. business transacted before the date of exclusion shall continue to be covered after that date by the compensation scheme of which the branch was a voluntary member. Investors shall be informed of the withdrawal of the supplementary cover and of the date on which it takes effect. Investment exclude If those measures fail to ensure that the branch meets the obligations referred to in this Article, the compensation scheme may, with the consent of the competent authorities which issued the authorization, exclude the branch. Investment business transacted before the date of exclusion shall continue to be covered after that date by the compensation scheme of which the oranch was a voluntary member. Investors shall be informed of the withdrawal of the supplementary cover and of the date on which it takes effect. ft PE 197. 378/7 Or. en EUROPEAN PARLIAMENT 5 M a r ch 1 9 96 A 4 - 0 0 4 7 /8 AMENDMENT 8 tabled by the Committee on Legal Affairs and Citizens' Rights RECOMMENDATION FOR SECOND READING Rapporteur: Mr Janssen Van Raay (A4-0047/96) INVESTOR-COMPENSATION SCHEMES Common position of the Council (C4-0523/95 - 00/0471(COD)) • Common position of the Council Amendment (Amendment 8) Article 9(2), 1st subparagraph 2. The scheme shall be in a position to pay an investor's claim within three» months of the establishment of the eligibility and the amount of the claim. 2. The scheme shall be in a position to pay an investor's claim within three months of the date of the determination or ruling referred to in Article 2(2) if the eligibility and the amount of the claim have been established. j. PE 197. 378/8 Or. en ISSN 0254-1475 COM(96) 169 final DOCUMENTS v. «. ». 01 10 09 Catalogue number : CB-CO-96-180-EN-C ISBN 92-78-02856-8 Office for Official Publications of the European Communities L-2985 Luxembourg •is

OPINION OF THE COMMISSION pursuant to Article 189 b) (2) (d) of the EC Treaty, on the European Parliament' s amendments to the Council' s common position regarding the proposal for a EUROPEAN PARLIAMENT AND COUNCIL DECISION adopting a programme of Community action on the prevention of drug dependence within the framework for action in the field of public health (1996-2000)

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* ** I COMMISSION OF THE EUROPEAN COMMUNITIES * ** I Brussels, 08. 05. 1996 COM(%) 201 final 96/0128 (COD) OPINION OF THE COMMISSION pursuant to Article 189 b (2) (d) of the EC Treaty, on the European Parliament's amendments to the Council's common position regarding the proposal for a EUROPEAN PARLIAMENT AND COUNCIL DECISION adopting a programme of Community action on the prevention of drug dependence within the framework for action in the field of public health (1996-2000) AMENDING THE PROPOSAL OF THE COMMISSION pursuant to Article 189 a (2) of the EC Treaty COMMISSION OPINION, delivered in accordance with Article 189b(2)(d) of the EC Treaty, on the European Parliament amendments to the Council common position relating to the proposal for a European Parliament and Council Decision adopting a programme of Community action on the prevention of drug dependence within the framework for action in the field of public health (1996-2000), amending the Commission proposal in accordance with Article 189a(2) of the EC Treaty In its Communication of 24 November 1993 the Commission outlined a framework for future action at Community level towards attaining the health protection objectives laid down by Articles 3(o) and 129 of the Treaty establishing the European Community, following the entry into force of the Treaty on European Union. In initiating action under Article 129 the Community has to address the issue of preventing disease and protecting health. Drug dependence is the only scourge specifically mentioned in Article 129, and the Commission considered that its prevention was a priority for Community action and should be made the subject of a specific programme. This programme is also a key element of the Europoean Union action plan to combat drugs. This first Community action programme for the prevention of drug dependence is designed to support Member States' actions and to step up European cooperation at each stage of the prevention process (boosting awareness of the drugs phenomenon, identifying risk situations, counselling and guidance, medical and social assistance), with a view to preventing drug use, helping users to quit, reducing the mortality rate, reducing the risks arising from drug use and combating marginalisation. The specific activities envisaged are compatible with, and complementary to, other activities proposed within the public health framework. The Commission adopted its Decision on 21 June 1994 and transmitted the proposed Decision to the European Parliament and the Council on 22 August 19941. The Economic and Social Committee2 adopted its opinion on 22 February 1995. The ESC supports the programme and the approach proposed by the Commission in its Communication and its proposal for a Decision. It recommends that adequate resources be spread over a long period and emphasises the need to support the evaluation of ongoing research and existing practices, the promotion of innovative programmes, and exchanges of information and experience. 1 2 OJ No C 257, 14 9. 1994 OJ No C 110, 2. 5. 1995 i- à- V- The Committee of the Regions3 adopted its opinion on 16 November 1994. The Committee supports the Commission proposal. It feels in particular that more resources should be earmarked for education and drug demand reduction and emphasises the importance of activities aimed at young addicts and groups who are difficult to reach, and activities geared towards modifying risk behaviour, rehabilitation, and the informing of regional and local communities. The European Parliament4 adopted its opinion at the first reading on 20 September 1995, proposing 56 amendments to the Commission proposal. These amendments seek to extend and add detail to the proposed decision, in particular by laying stress on: the importance of strategies to reduce the damage caused by drug abuse, as a complement to the strategies aimed at primary prevention; the need for the programme to fit within a strategy of combating social exclusion, and to take account of the social factors linked to drug use; the need for a series of actions in the areas of information, education, training and research, placing the accent on young persons and high-risk groups and listing the specific activities to be developed within the framework of other Community policies. The Commission accepted 21 of the 56 amendments proposed by Parliament, either in full or in part. On 23 November 1995 the Commission adopted an amended proposal taking account of the aforementioned Parliament amendments5. On 20 December 1995 the Council unanimously adopted a common position with a view to adopting the Decision in question. The Commission was unable to accept this common position and entered reservations concerning the following points: Article 3 (Budget): The Council wanted to reduce the overall budget for the five- year programme from MECU 28. 5 to MECU 27. The Commission entered a reservation on this proposed reduction, especially since the common position provided both for more actions and for larger-scale actions than had the Commission's original proposal. Article 5 (Comitology): The Council wanted to introduce a dual, "mixed" procedure as regards the role of the Committee set up to assist the Commission in implementing the programme. This procedure, similar to that set up for the three programmes recently adopted on the basis of Article 129 (Health promotion; O J N O C 2 1 0, 14. 8. 1994 O J N O C 2 6 9, 16. 10. 1995 COM (95) 579 final S AIDS; Cancer), assigns the Committee "administrative" competence in six areas of activity, and "advisory" competence in a number of others. The Commission entered a reservation concerning this approach, affirming its preference for a purely advisory committee, and asked for a statement to this effect to be entered, in anticipation of the second reading by Parliament. - Annex (Actions to be implemented under the programme): The common position takes on board most of the amendments made by the Commission to its initial proposal in response to the Parliament amendments. The amendments not included in the Council's common position chiefly concern: - the attention to be given to utilisation of the other Community policies and programmes (Action b of the Commission proposal); the inventorising of organisations involved in the care of drug addicts (Action d(3) of the Commission proposal); the recitals highlighting the value of a multidisciplinary approach (9b and 15b) and listing the partner organisations for the implementation of the programme (16a). In view of the importance attached by Parliament to these aspects, the Commission entered a reservation concerning their non-inclusion in the Council common position. On 16 April 1996 the European Parliament adopted 23 amendments to the Council common position. The Commission's opinion concerning each of these amendments is given in the Annex. The Commission points out that in accordance with Article 189b(3) of the Treaty if, within three months of receiving the Parliament amendments, the Council, acting by a qualified majority, approves all of the amendments, it shall amend its position accordingly and adopt the act in question; however, the Council shall act unanimously on the amendments on which the Commission has delivered a negative opinion. If the Council does not approve the act in question, the President of the Council, in agreement with the President of the European Parliament, shall forthwith convene a meeting of the Conciliation Committee. £ ANNEX6 Amendment No 3: Commission opinion: partially accepted. The Commission can accept this amendment in part and link it up with the preceding recital, provided the wording concerning the objectives of a multidisciplinary approach is made more general; Amendment No 4: Commission opinion: rejected. The text of the common position already refers to the impact of drug dependence on the health of individuals. Amendment No 5: Commission opinion: rejected. Defining the objectives of drug addiction policy falls outside the scope of this programme. Amendment No 6: Commission opinion: accepted partially. The reference to drug dependence as a sickness which can be prevented and treated confirms the wisdom of tackling this scourge from a public health prospective, as provided for in Article 129. Amendment No 7: Commission opinion: accepted partially. This amendment describes the objective of the programme more precisely, and the Commission accepts it provided that it mentions narcotics and psychotropic substances only (these being illicit drugs) and that, as regards the abuse of alcohol and pharmaceutical products, it takes account of the initiatives implemented in the context of the Community action programme on health promotion. Amendment No 8: Commission opinion: rejected. The recommendation in this amendment lies outside the scope of the programme. It is the responsibility of the national authorities to distinguish, if they so wish, between soft and hard drugs. Amendment No 9: Commission opinion: rejected. The recommendation in this amendment lies outside the scope of this programme. The spirit of this amendment is reflected more specifically in the statement of the programme's objective (amendment 7). Amendment No 10: Commission opinion: accepted partially. The Commission can partially accept this amendment if it is worded in a more general way, identifying the prison environment as one of the priority environments for preventive action. Amendment No 11: Commission opinion: rejected. The numbering of the amendments corresponds to the numbering of the Recommendation for second reading - Doc. A4-93 EP 198. 341, and to the position of the amendments in relation to the text of the common position. 9- The measures envisaged in this amendment lie outside the scope of the programme. Amendment No 12: Commission opinion: accepted. A horizontal question: the amendment corresponds to the texts of the decisions on the three programmes recently adopted on the basis of Article 129 (Cancer; Health promotion; AIDS). Amendment No 13: Commission opinion: rejected. This amendment does not take account of the principle of subsidiarity; it contains a very specific and restrictive reference to certain categories of organisations, which, moreover, are covered by amendment 15. Amendment No 15: Commission opinion: accepted. This amendment adds a non-exhaustive reference to the types of organisation which could participate in the implementation of the programme. Amendment No 17: Commission opinion: accepted partially. A horizontal question: the Commission can accept the first part of the amendment, which corresponds to the texts of the decisions on the three programmes recently adopted on the basis of Article 129. Amendment No 18: Commission opinion: rejected. The EDMC's tasks and operating methods are laid down in the Regulation establishing the EDMC and cannot be modified through this programme. Amendment No 19: Commission opinion: rejected. The Commission has entered general reservations concerning the comitology approach proposed in the common position and cannot accept this amendment since it implies acceptance of the Council's position. Amendment No 21: Commission opinion: rejected. The Commission has entered general reservations concerning the comitology approach proposed in the common position and cannot accept this amendment since it implies acceptance of the Council's position. Additionally, the reference to the informing of the European Parliament was made by means of a declaration when the decisions were taken on the three other programmes recently adopted in the public health framework. Amendment No 23: Commission opinion: rejected. The action envisaged by this amendment falls outside the scope of the programme. Amendment No 24: Commission opinion: rejected. The Commission considers that the areas of activity covered by this amendment are already covered by the Council text. Amendment No 26: Commission opinion: partially accepted. The Commission can accept a reference to the relatives and guardians of drug addicts provided this is worded in general terms, as follows: "measures to assist persons living 2 with them". The financing of projects to provide training or employment for drug addicts falls outside the scope of this programme. Amendment No 27: Commission opinion: accepted partially. The Commission can accept a non-exhaustive mention of the relevant environments for reaching out to young people. The Commission considers that involving young people in the prevention actions is covered by the Council text. Support for programmes to teach young people social skills falls under the scope of the health promotion action programme. Amendment No 28: Commission opinion: accepted partially. The Commission can accept a reference to promoting recourse to the expertise of persons liable to come into contact with groups of potential users. Amendment No 29: Commission opinion: rejected. The action envisaged by this amendment partially overlaps with the provisions relating to the objective and implementation of the programme. Amendment No 31: Commission opinion: accepted partially. This amendment assimilates into the programme's palette of measures the promotion of multidisciplinary cooperation for prevention purposes, which tallies with the approach defined during the discussions on drug demand reduction in the context of the European Union Action Plan to Combat Drugs. ? AMENDED PROPOSAL FOR A EUROPEAN PARLIAMENT AND COUNCIL DECISION ADOPTING A PROGRAMME OF COMMUNITY ACTION ON THE PREVENTION OF DRUG DEPENDENCE WITHIN THE FRAMEWORK FOR ACTION IN THE FIELD OF PUBLIC HEALTH (1996-2000) (presented by the Commission in accordance with Article 189a(2) of the EC Treaty) Lv COUNCIL COMMON POSITION MODIFICATIONS PROPOSED Having regard to the Treaty establishing the European Community, and in particular Article 129 thereof, Having regard to the proposal from the Commission1, Having regard to the Opinion of the Economic and Social Committee2, Having regard to the Opinion of the Committee of the Regions3, Acting in accordance with the procedure laid down in Article 189b of the Treaty4, (1) Whereas drug dependence has grown alarmingly in the Member serious States implications for the health of individuals and the welfare of the general public; and has (1) (2) (3) (4) of OJNoC257, 14. 9. 1994, p. 4. OJNoC 110, 2. 5. 1995, p. 8. OJ No C 210, 14. 8. 1995, p. 88. the European Opinion Parliament of 20 September 1995, Council common position of 20 December 1995 (OJ No C269, 16. 10. 1995, p. 65) and the European Decision of (OJ No C 37, Parliament of 9. 2. 1996, p. 1) (not yet published in the Official Journal). /( (2) Whereas, in creating in 1985 a Committee of Inquiry into the problem of drugs in the Member the European States of the European Community, its Parliament in depth the desire to study factors which trigger drug demand and enable drugs to continue being produced and distributed; demonstrated (3) W h e r e as in i ts this resolutions concerning problem1 European the Parliament formulated a series of in proposals with a view, particular, to Community action on the prevention of drug dependence; (4) Whereas the European Council, at its meeting in Dublin on 25 and 26 June 1990, "stressed the responsibility of each Member State to develop an appropriate drug reduction programme" and "considered that effective action by each Member State, supported by joint action the of Community, should be a main priority over the coming years"; the Twelve demand and (1) OJ No C 172, 2. 7. 1984, p. 130. OJNoC283, 10. 11. 1986, p. 79. OJ No C 47, 27. 2. 1989, p. 51. OJNoC 150, 15. 6. 1992, p. 42. IL (5) Whereas the actions undertaken at Community level on the basis of C o u n c il R e s o l u t i o n s, conclusions and declarations relating to the prevention of drug in particular dependence, and emphasis subsequent placed by the European Council, in Rome on 14 and meeting 15 December 1990, the European Plan to Combat Drugs, have helped the to Member States' efforts; sustain the on to (6) Whereas in to its the Council, Resolution of 2 June 19941, in response the Commission communication of 24 November 1993 on a framework for action in the field of public health, included drug dependence among the priority areas for Community action for which the Commission was invited to bring forward proposals for action; (7) Whereas Regulation established (EEC) No 302/932 a European Monitoring Centre on Drugs and Drug Addiction to provide the Community and the Member States with reliable and i n f o r m a t i on c o m p a r a b le concerning and drug addiction; drugs (1) (2) O J N oC 165, 17. 6. 1994, p. 1. O J N o L 3 6, 12. 2. 1993, p. 1. (J by (8) Whereas the declaration on the occasion of the entry into force of the Treaty on European Union adopted the European Council, meeting in Brussels on 29 October 1993, emphasized the Treaty provides "a that s t r u c t u r ed i n s t i t u t i o n al framework, so that in particular greater control can be achieved over those of society's problems that run across frontiers, such as drugs (. )"; (9) Whereas the problems associated with the drugs phenomenon are such that they require a fully coordinated and global strategy, as the European Council, meeting in Brussels on 10 and 11 December 1993; stated by (10) Whereas drug dependence is the only scourge expressly referred to in the provisions of the Treaty dealing with public health and is for therefore a Community action within the framework for action in the field of public health set out by the Commission; priority (11) Whereas this programme is one of the essential components of the Commission communication to the European Parliament and the Council of 23 June 1994 on a European Union Action Plan to combat drugs (1995-1999), on which the Council commented in its conclusions of 2 June 1995; 9a. (New) Whereas a multidisciplinary approach should in particular ensure that the social and personal the phenomenon are taken into account: implications of 10a. (New) Whereas drug dependence is a sickness which can be prevented and treated: <<< for (12) Whereas, by reason of its scale and effects, Community action to encourage the support prevention of drug dependence will make a better contribution to achieving the desired objectives, which the come within framework of Article 129 of the Treaty, in particular the second of paragraph 1 subparagraph thereof; (13) Whereas cooperation with the international competent organizations and with non-member countries should be strengthened; (14) Whereas clear objectives a multiannual programme should be launched for with Community action, and priority measures should be selected, as well as appropriate mechanisms for the evaluation of such action, with a view to preventing drug dependence and the associated problems; (15) Whereas the programme should have the objective of helping to combat drug dependence by preventing dependence linked to and the use of narcotics and substances psychotropic associated use of other products for the purposes of drug addiction; (16) Whereas is a need to there improve knowledge of the phenomenon of drugs and drug t h e ir d e p e n d e n ce and 15. Whereas the programme should have as its objective to contribute to the enhancement of awareness of the use of narcotics and psychotropic substances and the associated use of other products the purposes of drug for addiction, improve to recognition of risk situations, early detection, counselling and advice, health and social support, with a view to preventing drug use, facilitating the cessation of drug use, lowering the mortality rate, risks of infection by agents of infection and reducing marginalisation: reducing and the rr consequences, and of the ways and means of preventing drug addiction and the associated risks; (17) Whereas there is a need both for general preventive action and for preventive measures focusing on specific groups, target and particularly marginal groups, while avoiding stereotypes of drug users; the young (18) Whereas it is important that the 17a. (New) Whereas the prison environment is one of for the priority preventive action: environments e n s u re C o m m i s s i on implementation this of programme in close cooperation with the Member States; whereas, to that end, provision should be to made ensure that Member States are fully involved in implementing the programme; a procedure for the (19) Whereas a "modus vivendi" b e t w e en E u r o p e an Parliament, the Council and the the Commission implementing measures for acts adopted in accordance with the in laid procedure Article 189b of the Treaty was concluded on 20 December 1994; concerning down (20) Whereas, from an operational point of view, the investment made in previous years should be safeguarded and developed; (21) Whereas, possible however, duplication of effort should be avoided by the promotion of the exchange of experience and by the joint development of basic the information modules health general training education public, and for for for IL members of the health-care professions, which may be targeted on specific groups; (22) Whereas the objectives of this programme and of the actions undertaken to implement it form part of the health protection requirements referred to in the third paragraph of Article 129(1) of the Treaty and as such form a constituent the Community's other policies; part of a impact (23) Whereas, in order to increase the the of value and continuous programme, assessment of the measures undertaken should be carried out, with particular regard to their effectiveness and the achievement of objectives both at national level and Community level, and, where appropriate, the necessary adjustments should be made; (24) Whereas thi s Deci si on 1 ay s down, a constituting for the entire duration of the financial programme, framework the principal point of reference, within the meaning of point 1 of the Declaration of the European Parliament, the Council and Commission of 6 March 1995, for the budgetary authority during the annual budgetary procedure; (25) Whereas this programme should run for five years in order to allow sufficient time for actions to be implemented to achieve the objectives set, HAVE DECIDED AS FOLLOWS: Article 1 Establishment of the programme f+ referred 1. A programme of Community action on the prevention of drug dependence, "the hereinafter programme", shall be adopted for the period 1 January 1996 to 31 December 2000 within the framework for action in the field of public health. as to 2. The objective of the programme shall be to help in combating drug dependence, in particular by encouraging cooperation between the Member States, supporting their action and promoting coordination between their policies and programmes with a view to preventing dependence linked to the use of narcotics and and associated use of other products for the purposes of drug addiction. psychotropic substances 3. The actions to be implemented under the programme specific and objectives are set out in the Annex under the following headings: their A. B. Data, research, evaluation Information, health education and training. Article 2 Implementation The Commission shall ensure the 1. implementation, in close cooperation with the Member States, of the actions set out in the Annex, in accordance with Article 5. The Commission shall cooperate 2. with the institutions and organizations which are active in the field of drug demand reduction. The Commission shall cooperate 2. with the institutions and organizations which are active in the field of drug demand reduction; in particular, it shall encourage the participation implementation of the programme by public non private (NGOs). governmental organisations volunteers and therapy or social welfare communities. bodies, and in a take the measures 3. The Member States are called upon judge to necessary to coordinate and organize the implementation of this programme at national level. they Article 3 Budget (i) 1. The financial framework for the implementation of the programme for the period referred to in Article 1 shall be ECU 27 million. 2. The annual appropriations shall be authorized by the budgetary authority within financial limits of the perspective. the (1) The Commission maintains a reservation this Article. concerning f? Article 4 Consistency and complementarity and that there shall ensure 1. The Commission and the Member States is complementarity consistency between actions to be implemented under this programme and other relevant Community programmes and initiatives, "SOCRATES", including "LEONARDO DA VINCI" and "Youth for Europe (III)" programmes and the research and biomedical health programme under the Community's framework programme for research. the 1. The Commission shall ensure that there is consistency and complementarity between actions to be implemented under this programme and other relevant Community programmes and initiatives, including "SOCRATES", "LEONARDO DA VINCI" and "Youth for Europe (III)" programmes and the health biomedical research and the Community's programme under framework programme for research. the 2. The Commission shall also ensure that the activities implemented take into account the work of the European Monitoring Centre for Drugs and Drug Addiction (EDMC). It shall also ensure, together with the Member States, that the Community's priorities and needs are the taken EDMC's programmes. into due account in 3. The Commission and the Member States shall ensure consistency with the European Union's Action Plan to combat drugs. Article 5 Committee (i) 1. Commission shall be assisted by a Committee consisting of two members designated by each Member State and chaired by the representative of the Commission. (1) The Commission maintains a reservation this Article. concerning 2a representative submit shall the 2. The Commission the Committee a draft of the measures to be taken concerning: of to the Committee's (a) procedure; rules of (b) (c) an annual work programme indicating for action; the priorities including the arrangements, criteria and for selecting and procedures the financing projects under programme, those involving cooperation with international organizations having responsibility in the field of public health and participation of the countries in Article 6(2); referred to (d) the evaluation procedure; (e) (f) a r r a n g e m e n ts t he dissemination and results; for transfer of the the arrangements for cooperating and with organizations in Article 2(2). institutions referred to The Committee shall deliver its opinion on the draft measures referred to above within a time limit which the Chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148(2) of the Treaty in the case of decisions which is required to adopt on a proposal from the the Commission. representatives of the Member States within the Committee shall be weighted in the manner set out in that Article. The Chairman shall not vote. The votes of the Council The Commission shall adopt measures immediately. apply which shall li However, if these measures are not in accordance with the opinion of the Committee, they shall be communicated by to the Council the Commission forthwith. In that event: - - shall defer the Commission application of the measures which it has decided upon for a period of two months from the date of such communication, the Council, acting by a qualified majority, may take a different decision within the time limit referred to in the first indent. 3. In addition, the Commission may consult the Committee on any other matter concerning the implementation of the programme. The representative of the Commission shall submit to the Committee a draft of the measures The to be Committee shall deliver its opinion on the draft within a time limit which the Chairman may lay down according to the urgency of the matter, if necessary by taking a vote. taken. The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its opinion recorded in the minutes. The Commission shall take the utmost account of the opinion delivered by the Committee. the Committee of the manner in which its opinion has been taken into account. inform shall It 4. The Commission representative shall keep the Committee regularly informed about: - programme financial assistance granted under (amounts, this and duration, beneficiaries), breakdown ?z proposals Commission or Community initiatives and the implementation of programmes in other areas which are directly relevant to the achievement of the objectives of the programme, with a view to ensuring the consistency and complementarity referred to in Article 4. Article 6 International cooperation In the course of implementing the with cooperation and with countries organizations having in the field of public and encouraged in accordance with the 1. programme, non-member international responsibility shall health implemented procedure laid down in Article 5. be the Commission shall In particular, cooperate with the Council of Europe's Pompidou Group, with international intergovernmental organizations such as the World Health Organization (WHO), the United Nations Educational, S c i e n t i f ic C u l t u r al a nd the O r g a n i z a t i on ( U N E S C O ), International Labour Organization (ILO) and with the United Nations International Drug Control Programme (UNIDCP). those 2. The programme shall be open to participation by the associated countries of Central and Eastern Europe (ACCEE) in accordance with the conditions laid down in the Additional Protocols to the Association Agreements, to be concluded with concerning countries, participation in Community programmes. The programme to participation by Cyprus and Malta on the basis of additional appropriations in accordance with the same rules as those applied in accordance with procedures to be agreed with those countries. the EFTA countries, shall be open to l> Article 7 Monitoring and evaluation States 1. The Commission, taking into account the reports drawn up by the the Member participation, where necessary, of independent experts, shall ensure that an is made of the actions evaluation undertaken. and with 2. The Commission shall submit to the European Parliament and the Council an interim report halfway through the programme and a final report on completion thereof. The Commission shall incorporate into those reports the results of the evaluations. It shall also send the reports to the Economic and Social Committee and the Committee of the Regions. a CH ANNEX PROGRAMME OF COMMUNITY ACTION ON THE PREVENTION OF DRUG DEPENDENCE A. DATA. RESEARCH. EVALUATION Objective To the improve knowledge of phenomenon of drugs and drug dependence and its consequences and of means and methods of preventing drug dependence and the risks relating thereto, in particular by using the information supplied by the EDMC and the possibilities offered by existing Community programmes and instruments. Actions 1. Help identify the data a n a l y s ed to be c o l l e c t e d, and disseminated for the purposes of the programme, including data on polysubstance dependence. implementation 2. Exploit the data most useful for the the in programme, on p a r t i c u l ar regular of communication of the work of the EDMC. the basis of a 3. Help develop a strategy in particular for research on the prevention of drug dependence, to improve knowledge as regards the impact in the public health sphere of policies targeting drug users and on the effects of drugs and the use of appropriate for preventive purposes. techniques 4. Support studies and pilot projects s o c i o - e c o n o m i c, the on V a nd s o c i o - c u l t u r al factors psycho-sociological associated with drug dependence, including in target groups. the exchange 5. Support studies and actions and promote of experience on ways and means of the risks associated preventing in dependence, with particular for: drug - preventing, in drug-dependent pregnant women, the effects of drugs on the foetus and the risks of transmitting infections to the child, - reducing the risks associated with the injection of drugs, - making an assessment of accompanying health measures, substitution in programmes, particular - evaluating methods and programmes for prevention and risk the management of drug-dependent prisoners. reduction in 6. Encourage the exchange of information and experience on preventing drug addiction relapses, including the rehabilitation of drug users. the of exchange Encourage information and experience on preventing drug addiction relapses, including the rehabilitation of drug users, and on ways of assisting persons living with them: B. I N F O R M A T I O N. H E A L TH EDUCATION AND TRAINING Objective Objective Contribute to improving information, training aimed at education and preventing drug dependence and the information, Contribute to improving at training and education preventing drug dependence and the aimed U associated risks, people young vulnerable groups. in particular for particularly and associated risks, in particular for young people in the relevant environments (for example home, school, university and leisure time) and particularly vulnerable groups. (a) Information and health education Actions 7. Support schemes to evaluate the effectiveness of information and health education campaigns and carry out regular public opinion surveys via Eurobarometer to monitor changes in Europeans' attitudes towards drugs. 8. Organize further European Drug Prevention Weeks on the basis of previous experience. 9. Help identify, test and develop the best information and educational tools and methods target for groups, and in particular: - encourage use of the information tailored to particular environments or circles, taking account of changes in patterns of use and products used, and of t he p h e n o m e n on polysubstance dependence, of - support schemes to adapt to messages the needs and specific features of particularly vulnerable groups, - support the development of telephone help line services and feasibility of consider introducing a single telephone number for such services in all Member States. the Vr 10. Help to define guidelines on the prevention of drug abuse and foster the selection and use of teaching methods and materials, in particular within the context of the European network of health-promoting schools, in order to develop attitudes in young people which will enable them to avoid drugs and drug addiction; support integrated projects, programmes and other drug prevention initiatives in places frequented by children and young people, with the participation wherever possible of parents and those concerned. 10. Help to define guidelines on the prevention of drug abuse and foster the selection and use. of teaching methods and materials, in particular within the context of the European network of health-promoting schools, in order to develop attitudes in young people which will enable them to avoid drugs and drug integrated support addiction; projects, programmes and other drug prevention in places initiatives frequented by children and young the participation people, with wherever possible of parents and those concerned; promote recourse to the expertise of persons liable to come into contact with groups of potential users. 11. Encourage exchanges of experience on initiatives aimed at coordination between all those involved in the provision of education. improving 12. Support schemes for advising teachers, families and those responsible for young people on the early detection of the use of drugs and the action to take. 13. In cooperation with the EDMC and the Council of Europe, if need be, the encourage extension of the European network of "test towns", so as to promote technical cooperation on the ways and means used by these towns to reduce drug demand. 14. Support exchanges of experience, particularly on a cross-border basis, regional concerning local prevention initiatives. Support exchanges U of experience on prevention models and practices involving towns in different Member States which are particularly the problem of affected by drugs. (b) Training and teachers 15. Promote initiatives to improve the drug prevention aspect of vocational training programmes those for responsible for young people and encourage exchanges of students training for the social and health-care professions, including exchanges under other Community programmes. 16. Support the development of further-training programmes, teaching materials and modules for those likely to come into contact with drug users and groups at risk, in including social work, particular health-care, police and other law-enforcement professionals. 16. Support the development of further-training programmes, teaching materials and modules for those likely to come into contact with drug users and groups at risk, including in particular social work, other police health-care, professionals; law-enforcement m u l t i d i s c i p l i n a ry p r o m o te to cooperation with preventing drug dependence. view and a 21-\c ISSN 0254-1475 COM(96) 201 final DOCUMENTS EN 05 Catalogue number : CB-C0-96-213-EN-C ISBN 92-78-03868-7 Office for Official Publications of the European Communities L-2985 Luxembourg 1A

FOURTEENTH ANNUAL REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT ON THE COMMUNITY' S ANTI-DUMPING AND ANTI-SUBSIDY ACTIVITIES (1995)

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COMMISSION OF THE EUROPEAN COMMUNITIES * •k it A Brussels, 08. 05. 1996 COM(96) 146 final FOURTEENTH ANNUAL REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT ON THE COMMUNITY'S ANTI-DUMPING AND ANTI-SUBSIDY ACTIVITIES ( 1 9 9 5) (14th Annual Report to Parliament - 1995) C O N T E N TS 1. INTRODUCTION 2. GENERAL OVERVIEW-MEASURES IN FORCE 3. INITIATIONS OF ANTI-DUMPING AND ANTI-SUBSIDY INVESTIGATIONS 3. 1. Overview 3. 2. Cases 1. 2. 3. 4. 5. Footwear with textile uppers from the P. R. China and Indonesia Footwear with leather or synthetic uppers from the P. R. China, Indonesia and Thailand Disposable flint lighters from the Philippines and Mexico 3. 5" microdisks from Canada, Indonesia, Macao and Thailand Sacks and bags of polyethylene and polypropylene from India, Indonesia and Thailand Furfuryl alcohol from the P. R. China and Thailand Video cassette recorders from South Korea and Singapore and key components thereof from South Korea 8. Polyester yarn from Malaysia Hydraulic excavators weighing more than six tonnes from South Korea 9. 10. Unalloyed, unwrought zinc from Kazakhstan, Poland, Russia, Ukraine 6. 7. and Uzbekistan PET video film from South Korea 11. 12. Wood pallets from Poland 13. 14. Glyphosate from the P. R. China 15. Certain sections of iron or steel from the Czech Republic and Hungary Ring binder mechanisms from the P. R. China and Malaysia Page 1 1 2 2 2 2 3 3 4 4 5 5 6 6 7 8 8 8 9 10 A Page PROVISIONAL MEASURES 4. 1. Overview 4. 2. Cases 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 10 10 11 11 Sodium carbonate (soda ash) from the U. S. A. 12 Microwave ovens from the P. R. China, S. Korea, Thailand and Malaysia 14 Persulphates from the P. R. China 16 Refractory chamottes from the P. R. China Powdered activated carbons from the P. R. China 17 Butt-welded tube or pipe fittings from the P. R. China, Croatia and Thailand 18 19 Coumarin from the P. R. China 20 Bicycles from Indonesia, Malaysia and Thailand 22 Microdisks from Malaysia, Mexico and the U. S. A. 23 Grain-oriented electrical steel sheet from Russia 24 Unwrought magnesium from Russia and Ukraine 26 26 26 26 27 29 30 31 32 32 32 32 32 33 33 33 34 35 5. DEFINITIVE MEASURES 5. 1. Overview 5. 2. Cases 1. 2. Furfuraldehyde from the P. R. China Colour television receivers from Malaysia, the P. R. China, S. Korea, Singapore and Thailand Ammonium nitrate fertilizer from Russia Sodium carbonate (soda ash) from the U. S. A. Ferro-silico-manganese from Brazil, Russia, S. Africa and Ukraine Persulphates from the P. R. China 3. 4. 5. 6. 6. TERMINATIONS WITHOUT MEASURES 6. 1. Overview 6. 2. Cases 1. 2. 3. 4. 5. 6. Colour television receivers from Turkey Watch movements from Malaysia and Thailand Ammonium nitrate fertilizer frorm Lithuania Butt-welded tube or pipe fittings from Slovakia and Taiwan Parts for disposable lighters from Japan Ferro-silico-manganese from Georgia ' £ ANTI-DUMPING AND ANTI-SUBSIDY INVESTIGATIONS - REVIEWS AND REOPENING OF INVESTIGATIONS 7. 1. Overview 1. 2. 3. 4. 5. Expiry reviews i) Photocopiers from Japan Interim reviews "Newcomer" reviews "Absorption" reviews "Circumvention" reviews 8. SUSPENSION OF MEASURES 9. MONITORING OF UNDERTAKINGS 10. REFUNDS 11. COURT OF FIRST INSTANCE 11. 1. Overview 11. 2 New cases 11. 3 Judgements rendered 1. 2. 3. 4. 5. Ball bearings : judgement of 2 May 1995 Outer rings of tapered roller bearings (cups) : judgement of 14 July 1995 Electronic weighing scales : judgement of 14 September 1995 Paint brushes : judgements of 18 September 1995 Potassium chloride (potash) : judgement of 28 September 1995 12. ANTI-SUBSIDY INVESTIGATIONS OF THIRD COUNTRIES CONCERNING IMPORTS FROM EU. MEMBER STATES 12. 1 U. S. A. 1. 2. Pasta Steel 12. 2. Argentina 1. 2. Canned peaches Olive oil 12. 3 Mexico Beef Pork 1. 2. ^ Page 35 35 36 36 37 37 38 38 38 39 39 40 40 40 41 41 42 43 44 45 46 46 46 46 47 47 47 47 47 47 Page 48 48 48 49 49 49 49 49 50 50 50 50 50 50 50 50 50 12. 4 Canada 1. 2. 3. Sugar Pasta Canned ham and luncheon meat 12. 5 Israel 1. Pasta and baked goods 12. 6 New Zealand 1. Spaghetti and baked beans 12. 7 Australia 1. 2. Diesel-fuelled generators Canned tomatoes 12. 8 Bolivia 13. GATTAVTO ISSUES 13. 1 Dispute settlement proceedings GATTAVTO panel proceedings requested by the Community i) Lead and bismuth steel bars ii) Flat-rolled steel products 1. 2. GATTAVTO proceedings requested by third countries against the Community i) Audio cassettes ii) Cotton yarn 51 51 51 14. PROPOSAL FOR A NEW BASIC REGULATION 15. PERSONNEL AND ADMINISTRATION 51 51 d FOURTEENTH ANNUAL REPORT1 OF THE COMMISSION ON THE COMMUNITY'S ANTI-DUMPING AND ANTI-SUBSIDY ACTIVITIES2 1. INTRODUCTION This report is submitted to the European Parliament following its Resolution of 16 December 1981 on the Community's anti-dumping activities3, and the more recent report of the European Parliament's Committee on External Relations on the anti-dumping policy of the European Community4. The report concentrates mainly on the Community's activities during 1995, but for the purpose of comparison, the number of anti-dumping and anti-subsidy investigations initiated and concluded by the Community in the years 1991 to 1995, together with a breakdown of the type of measures taken, are summarized in Table 1 below. For 1995, a concise commentary on each case opened, each provisional and definitive measure taken, and each case terminated without measures, is given in sections 3, 4, 5 and 6 of this report. 2. GENERAL OVERVIEW - MEASURES IN FORCE At the end of 1995, the Community had 147 measures in force, 10 of which were in the form of undertakings where no residual duty was in application. Of these 147 measures, 129 were original measures and 17 were maintained following a review in accordance with article 15 of Council Reg. (EEC)No. 2423/88. It is, however, very important to note that these measures affect only 0. 83% of the total of imports to the Community. Of all of the measures in force at the end of 1995, 56 or 38. 3% of the total were imposed against the then state trading countries5, including the P. R. China with 30 measures. Since 1991, measures have been imposed in respect of Central and Eastern European countries (CEECs) in only 11 cases altogether. The other countries most involved since 1991 were Japan with 12 measures, S. Korea with 9, Turkey with 7 and Taiwan with 6. Previous reports were given in COM(83)519 final/2; COM(84)721 final; COM(86)308 final; COM(87)178 final; COM(88)92 final; COM(89)106 final; COM(90)229 final; SEC(91)92 final; SEC(91)974 final; SEC(92)716 final; COM(93)516 final; COM(95)16 final and COM (95)309 final In accordance with Council Reg. (EEC)No. 2423/88, OJ L 209 of 02. 08. 1988, replaced by Council Reg. (EC)No. 3283/94, OJ L 349 of 31. 12. 1994 ; and Commission Decision No. 2424/88/ECSC, OJL 209 of 02. 08. 88. OJno. C l l, 18. 01. 82, p. 37 PE 141. 178/fin of 30. 11. 1990, rapporteur Mr. Gijs DE VRIES With regard to the then CSSR, Hungary, Poland, Bulgaria and Romania these figures only include measures taken when these countries were classified as state traders. They also include measures applied against individual CIS Republics since the dissolution of the USSR. TABLE 1 Anti-dumping and anti-subsidy investigations during the period 1 January 1991 - 31 December 1995 1991 1992 1993 1994 1995 Investigations in progress at the beginning of the period Investigations initiated during the period Investigations in progress during the period Investigations concluded by : - imposition of definitive duty - acceptance of price undertakings - determination of no dumping - determination of no subsidisation - determination of no injury - other reasons Total investigations concluded during the period Investigations in progress at the end of the period Provisional duties imposed during the period 59 20 79 19 3 1 - 6 4 33 46 19 46 39 85 16 - 1 - 4 7 28 57 18 57 21 78 19 - 1 - 1 6 27 51 16 51 43 94 19 2 5 - 1 2 29 65 25 65 33 98 13 -' - - 4 4 21 77 21 A« A more realistic measurement of the impact of anti-dumping measures is, however, the trade value of the product concerned, and this, clearly, varies enormously depending on the product sector. The biggest trade values are generated by high-technology, high added value products, such as electronics, where economies of scale are primordial. On these terms, the measures against Japan take first place, representing 26. 9% of the total trade value affected by all measures. At the same time, imports into Japan from the Community of the equivalent products were practically zero. 3. INITIATIONS OF ANTI-DUMPING AND ANTI-SUBSIDY INVESTIGATIONS 3. 1. OVERVIEW In 1995, 33 investigations were initiated involving imports from 18 countries. The People's Republic of China featured most prominently, with 5 initiations, closely followed by Indonesia, South Korea and Thailand with 4 initiations apiece. Details of these initiations are given in Annex A. In the five-year period from 1991 to 1995, 156 investigations were initiated involving imports from 38 countries. The countries most involved were the People's Republic of China with 26 investigations, Thailand with 12, S. Korea with 10 and The Indonesia, Japan, Malaysia and Russia with 8 investigations each. investigations initiated over the last five years are broken down by country of export in Annex F. The sectors most involved in these investigations during the period 1991 - 1995 were those of electronics, chemicals and textiles, with 35, 26 and 22 initiations respectively. Indeed, in 1995, the largest number of initiations took place in the electronics sector, which has also featured strongly in the four previous years. A breakdown by product sector is given in Annex G. A summary of each investigation opened in 1995 can be found below. 3. 2. CASES 3. 2. 1. Footwear with textile uppers from the P. R. China and Indonesia The notice of initiation of an anti-dumping proceeding was published on the 22 February 1995 with regard to imports into the Community of certain footwear with textile uppers originating in the People's Republic of China and Indonesia. The proceeding was initiated following a complaint lodged by the European footwear Confederation of Footwear Manufacturers on behalf of national federations whose members allegedly represent a major proportion of Community production. The complaint contained evidence of significant dumping based, in the case of Indonesia, on a comparison of prices charged for export to the Community with domestic prices of the like product in Indonesia, and in the case of the PR. China, on the basis of a comparison of export prices with the domestic prices charged for the like product in Thailand, the latter being considered to be an appropriate analogue market for China. With regard to injury, it was alleged that the market share of these two countries had increased from 25. 2% to 44. 3% between 1990 and 1993, and that this increase in market share was accompanied by substantial price undercutting. It was further claimed that the market share of the Community industry, together with its profits and production had decreased significantly. In addition, decreases in employment and plant closures were alleged. 3. 2. 2. Footwear with leather or synthetic uppers from P. R. China. Indonesia and • Thailand The notice of initiation of a proceeding was published on the 22 February 1995 with regard to footwear with leather or synthetic uppers originating in the P. R. China, Indonesia and Thailand. The complaint had also been lodged by the European Confederation of Footwear Manufacturers on behalf of national footwear federations, whose members allegedly represent a major proportion of Community production. The complaint contained evidence of significant dumping based on a comparison of the prices charged for export to the Community and domestic prices of the like product in Indonesia and Thailand, the latter being considered an appropriate reference country for China. With regard to injury, it was alleged that the market share of the three countries concerned increased from 7% in 1990 to 20. 6% in 1993 and that this market share increase was accompanied by substantial price undercutting. The consequent impact on the Community industry is alleged to be decreased production and employment, together with decreasing profitability and plant closures. 3. 2. 3. Disposable flint lighters from the Philippines and Mexico The notice of initiation of an anti-dumping proceeding was published on 18 March 1995 with regard to imports of gas-fuelled, non-refillable pocket flint lighters originating in the Philippines and in Mexico, following two complaints lodged by several Community producers allegedly acting on behalf of a major proportion of Community production. The complaints contained evidence of significant dumping based on a comparison of export prices to the Community with domestic prices in the Philippines and in Mexico. With regard to injury, it was alleged that the Filipino exporters' market share had substantially increased, from 0. 6% in 1989 to more than 5% in 1993, and that the Mexican exporters' share, starting from zero in 1989, had reached 6% in 1993. It was furthermore alleged that this increase had been achieved by low export prices undercutting those of the Community industry, which caused the latter to lose market share, face price depression and incur financial losses. 3. 2. 4. 3. 5" Microdisks from Canada. Indonesia. Macao and Thailand The* notice of initiation of an anti-dumping proceeding was published on 6 April 1995 with regard to imports of 3. 5" microdisks originating in Canada, Indonesia, Macao and Thailand, following a complaint lodged by the Committee of European Diskette Manufacturers (DISKMA), which was also the complainant in three prior proceedings; the first involved Japan, Taiwan and the People's Republic of China (definitive duties in October 1993); the second, Hong Kong and South Korea (definitive duties September 1994); the third, Malaysia, Mexico and the United States (provisional duties in October 1995 - see Section 4. 2. 10 of this report). The complaint contained evidence of substantial dumping based on a comparison between export prices to the Community and normal values constructed for each of the countries concerned on the basis of average and typical production costs in Canada, plus a reasonable profit margin. For Indonesia, Macao and Thailand, adjustments were made to reflect differences in production costs. With regard to injury, it was claimed that imports from the countries concerned had increased significantly both absolutely and in terms of market share. It was further alleged that the volumes and prices of the imported products had had a negative impact on the Community industry's prices, which, together with other effects, had adversely and substantially affected the industry's financial situation. 3. 2. 5. Sacks and bags of polyethylene and polypropylene originating in India. Indonesia and Thailand The notice of initiation of an anti-dumping proceeding was published on 13 April 1995 with regard to imports of bags and sacks made of polyethylene or polypropylene originating in India, Indonesia and Thailand, following a complaint lodged by the European Association fbr Textile Polyolefins (EATP). The product allegedly being dumped is woven sacks and bags of a kind used for a packaging of goods, not knitted or crocheted, obtained from a polyethylene or polypropylene strip or the like of woven fabrics weighing 120gr/m2 or less. The complaint contained evidence of significant dumping based on a comparison cf normal value established on the basis cf constructed value with the export price of the product concerned to the Community. With regard to injury, it was alleged that the three countries cited significantly increased their imports in absolute terms and in terms of market share. The volume and prices of the imported products have had a negative impact on the quantities sold and price • charged by the Community producers, which has, in turn, had a substantial adverse impact on the financial situation of the Community industry. 3. 2. 6. Furfuryl alcohol originating in the PR. China and Thailand The notice of initiation of an anti-dumping proceeding was published on 19 April 1995 concerning the imports into the E. U. of furfuryl alcohol originating in the People's Republic of China and Malaysia. The complaint was lodged by Quaker Oats Chemicals (Q. O. ), allegedy acting on behalf of a major proportion of Community industry. The produuct concerned is furfuryl alcohol (FAA), which is a chemical commodity belonging to the compound family called "furans". It is mainly used in the resin manufacturing industry and, in a higher purity state, in the pharmaceutical industry. The complaint contained evidence of significant dumping based on a comparison of export prices of the product concerned to the Community and the constructed normal value in Thailand, the latter also being considered as an appropriate analogue country for the People's Republic of China. With regard to injury, it was alleged that the combined market share of the two countries concerned had risen from slightly over 0% in 1988 to 18. 9% in 1991. The complainant estimated that the market share of the two countries cited reached 16. 1% in 1993 and projected that this share would reach 28. 9% in 1994. It was, furthermore, claimed that Community prices were being signficantly undercut and that an overall price suppression was taking place. The complaint claimed that, as a consequence, the Community industry was suffering reduced capacity utilization and declining sales. 3. 2. 7. Video cassette recorders originating in South Korea and Singapore and key components thereof originating in South Korea The notice of initiation of an investigation was published on 25 April 1995 with regard to imports of video cassette recorders (VCRs) from S. Korea and Singapore and certain key components thereof (i. e. scanners and video heads) originating in S. Korea. The complaint was lodged by the Direct Remedy against Unfair Merchandise Committee (DRUM). The complaint contained evidence of significant dumping. The allegation of dumping for VCRs was based on a comparison of normal values based on to the domestic prices with the export prices of the product concerned Community. The allegation of dumping for key components was based on comparing constructed normal values with constructed export prices of the products concerned. With regard to injury, it was alleged that VCR imports from S. Korea and Singapore increased significantly in absolute terms and in terms of market share, and that this increase was accompanied by substantial price undercutting. The volume and prices of imported VCRs were claimed to have had a negative impact on the quantities sold and prices charged by the Community producers, which, together with other effects, have had a substantial adverse effect on the financial situation of the Community industry. For key components, the complainant provided evidence that imports from S. Korea increased significantly and that the volume and prices of the imported products has had a negative impact on the quantities sold and prices charged by In combination with other effects this has had a the Community producers. substantial adverse effect on the financial situation of the Community industry. 3. 2. 8. Polyester yarn from Malaysia The notice of initiation of an anti-dumping proceeding was published on 19 April 1995 with regard to imports into the EU of polyester yarn originating in Malaysia, following a complaint lodged by the International Rayon and Synthetic Fibres Committee (CIRFS). The product allegedly being dumped is polyester textured filament yarn (PTY), which is used both in the weaving and knitting sectors. The complaint contained evidence of significant dumping based on a comparison between the domestic prices in Malaysia and export prices to the Community. With regard to injury, it was claimed that imports from Malaysia increased significantly in absolute terms and in terms of market share. It was further alleged that the volume and prices of the imported products have had a negative impact on the quantitites sold and prices charged by the Community producers which, together with other effects, such as reduction in sales and profits, have had a significant adverse impact on the state of the Community industry. 3. 2. 9. Hydraulic excavators weighing more than six tonnes from South Korea The notice of initiation of an anti-dumping proceeding was published on 12 May 1995 with regard to imports of hydraulic excavators weighing more than 6 tonnes originating in the Republic of Korea, following a complaint lodged by the Committee for European Construction Equipment ( CECE), allegedly acting on behalf of a major proportion of Community production. tracklaying and other hydraulic The products concerned are self-propelled excavators weighing more than six tonnes and having a 360° revolving superstructure. The complaint contained evidence of significant dumping on the basis of a comparison of normal value established on domestic prices with the export prices of the product concerned to the Community. With regard to injury, it was alleged, and evidence was provided, that imports from the Republic of Korea increased significantly in absolute terms and in terms of market share. It was further alleged that the volume and prices of the imported products had had a negative impact on the quantities sold and prices charged by the Community producers, which, together with other effects, had had a substantial adverse impact on the financial situation of the Community industry. 3. 2. 10. Unalloyed, unwrought zinc from Kazakhstan. Poland. Russia. Ukraine and Uzbekistan This anti-dumping proceeding was initiated on 9 June 1995 following a complaint lodged by Eurometaux (Association Européenne des Métaux Non-Férreux). - The product allegedly being dumped is unalloyed, unwrought zinc, identifiable as super high grade, SHG, (with a minimum zinc content of 99. 995%), high grade, HG, (with a minimum zinc content of 99. 9%) and good ordinary brand, GOB, (with a minimum zinc content of 98. 5%). The allegation of dumping is derived from a comparison of normal value established on the basis of domestic prices in Poland with the export prices of the product concerned to the Community. On this basis, substantial dumping margins are alleged for Poland. In view of the fact that Kazakhstan, Russia, Ukraine and Uzbekistan are non- market economy countries, normal value was established on the basis of the price in Poland as an appropriate market-economy third country for the purpose of establishing normal value. The allegation of dumping for the non-market economy countries is based on a comparison of normal value for each country, as set out above, with the export prices of the product concerned for each country when sold for export from Kazakhstan, Russia, Ukraine and Uzbekistan to the Community. On this basis, the dumping margins calculated are allegedly substantial. The complainant alleged, and provided evidence, that imports from Kazakhstan, Poland, Russia, Ukraine and Uzbekistan had increased significantly in absolute terms and terms of market share. It was further alleged that the volume and prices of the imported products had, among other consequences, a negative impact on the quantities sold and the prices charged by the Community producers, resulting in a substantial adverse effect on the financial situation of the Community industry. 3. 2. 11. PET video film from the Republic of Korea On 14 June 1995, the notice of initiation of an anti-dumping proceeding was published with regard to imports into the E. U. of PET video film originating in the Republic of Korea. The complaint had been lodged by Hoechst Diafoil GmbH, Rhône-Poulenc Films and Teijin-Dupont Films, three companies allegedly representing 100% of Community production. PET video film is a special type of polyester-based film used in the manufacture of video tape. The allegation of dumping contained in the complaint was based on a comparison of normal value established on the basis of Korean domestic prices with the export prices of the product concerned to the Community. With regard to injury, the complainants claim that imports from Korea had increased from 200 tonnes in 1990 to 5,800 tonnes in 1994, whilst the share of the Community market held by these imports increased from 1% to approximately 16. 1% during the same period. The low level of price of the Korean products allegedly had a depressing effect on the prices of the Community industry, which decreased substantially even though the cost of the main raw materials used to manufacture PET video film strongly increased in 1993 and 1994. The consequent impact on the Community industry was claimed to be felt in the form of lost market segments in an expanding market, unsatisfactory rates of capacity utilization and very unsatisfactory financial results. 3. 2. 12. Wood pallets from Poland An anti-dumping proceeding concerning the import into the E. U. of flat pallets of wood originating in Poland was initiated on 13 July 1995, subsequent to a complaint lodged by Anton Heggenstaller AG of Germany, and supported by the European Federation of Pallet and Wood Packaging Manufacturers (FEFPEB). The complaint contained evidence of substantial dumping based on a comparison of constructed normal value in Poland with export prices to the Community. The evidence of injury alleged in the complaint showed a significant increase in absolute terms and in terms of market share of the Polish imports. The prices at which these products were sold on the Community market allegedly had a negative impact on the quantities sold and the prices charged by the Community producers. This proceeding is characterized by the large number of exporters in Poland, as well as of Community producers, requiring recourse to sampling techniques. 3. 2. 13. Certain sections of iron or steel from the Czech Republic and Hungary The notice of initiation of an anti-dumping proceeding was published on 14 July 1995 with regard to imports into the E. U. of certain sections of iron or non-alloy steel originating in the Czech Republic and Hungary, following a complaint lodged by the European Confederation of Iron and Steel Industries (EUROFER), allegedly acting on behalf of producers representing a major proportion of Community production. The products concerned are certain U- or I-sections (ECSC) of iron or non-alloy steel, not further worked than hot-rolled, hot-drawn or extruded, of a height of 80mm more but not exceeding 300mm. The complaint contained evidence of significant dumping on the basis of a comparison of constructed normal value in the Czech Republic and Hungary with the export prices of the product concerned to the Community. With regard to injury, it was alleged, and evidence was provided, that imports from the Czech Republic and Hungary increased significantly in absolute terms and in terms of market share. It as further alleged that the volume and prices of the imported products had had a negative impact on the quantities sold and prices charged by the Community producers, resulting in a substantial adverse effect on the financial situation of the Community industry. 3. 2. 14. Glyphosate from the P. R. China The notice of initiation was published on 13 October 1995 with regard to imports of glyphosate from the People's Republic of China. The complaint was lodged by Monsanto Europe SA/NV with the support of Cheminova Agro A/S. Glyphosate is used as a herbicide in the Community. Glyphosate is also used extensively in non-crop situations, such as industrial and municipal applications. It is also a very popular herbicide for use by the home-owner. The complaint contained evidence of significant dumping. In view of the fact that the People's Republic of China is a non-market economy country, the complainant proposed that normal value be established on the basis of the price or the constructed value in a market economy third country. For this purpose the complainant chose Brazil. The allegation of dumping was based on a comparison of normal value as set out above, with the export prices of the product concerned to the Community. With regard to injury, it was alleged that glyphosate imports from the People's Republic of China increased significantly in absolute terms and in terms of market share, and that this increase was accompanied by substantial price undercutting. The volume and prices of imported glyphosate were claimed to have had a negative impact on the quantities sold and prices charged by the Community producers, which, together with other effects, have had a substantial adverse effect on the financial situation of the Community industry. 3. 2. 15. Ring binder mechanisms from the PR. China and Malaysia The notice of initiation of an antidumping proceeding was published on 28 October 1995 with regard to imports of certain ring binder mechanisms originating in Malaysia and the People's Republic of China, following a complaint by two Community producers said to represent about 90% of the Community production. The products concerned are ring binder mechanisms used as fittings for loose-leaf binders or files, but excluding lever arch mechanisms, and consisting of two or more round, arched or D-shaped sturdy metal rings. With regard to Malaysia, the complaint contained evidence of significant dumping established by comparing export prices to the Community to a constructed normal value based on the estimated production costs in Malaysia plus a profit margin. Since the People's Republic of China is a non-market economy country; the complaint presented evidence of significant dumping based on a comparison between Chinese export prices to the Community and the constructed normal value in Malaysia, which was claimed to be the most appropriate analogue country. With regard to injury, it was alleged that the market share of the two exporting countries increased from 26% in 1991 to 39% in 1994, and that the prices at which the imports came into the Community undercut those charged by the Community producers by between 24% and 58% for the Chinese products, and between 14% and 54%) for those of Malaysian origin, despite a decrease in the Community's industry prices by up to 70% over the last 4 years. This is claimed to have had a deleterious effect on the financial situation of the Community producers. This proceeding is the first to be initiated under the new provisions concerning time limits in antidumping investigations. 4. PROVISIONAL MEASURES 4. 1. OVERVIEW Provisional measures may be taken where the preliminary examination shows that dumping or a subsidy exists, that there is sufficient evidence of injury caused thereby, and that the interests of the Community call for intervention. Provisional duties have, under Council Regulation (EC) No. 2423/88, a normal period of validity of four months, which may, under certain circumstances, be extended for a further two months. Council Regulation (EC) No. 3283/94, which came into force on 1 January 1995 and governs all new investigations initiated after that date, provides that provisional duties may be imposed for six months and extended for a further three months, or they may be imposed for a nine-month period. However, they may only be extended or imposed for a nine-month period where exporters representing a significant percentage of the trade involved so request, or do not object upon notification by the Commission. 10 During 1995, 21 provisional duties were imposed. As shown in Table 1, this figure compares to 25 in 1994 and 16 in 1993. These provisional measures cover a wide range of product types and origins. Details of the provisional duties imposed in 1995 are given in Annex B, whilst this section of the report gives a summary of each of these cases. 4. 2. CASES 4. 2. 1 Sodium carbonate (soda ash) from the U. S. A. On 13 April 1995, a provisional anti-dumping duty was imposed on imports into the Community of sodium carbonate (soda ash) originating in the United States of America. The proceeding had been initiated on 6 August 1993, following a complaint lodged by the European Chemical Industry Council (CEFIC). Dumping Dumping margins ranged from 0. 1% to 14. 3%. For non cooperators, the highest dumping margin found, 14. 3%, was considered appropriate. Normal values for six of the seven American producers were determined on the basis of the profitable sales on the domestic market in accordance with Article 2(3)(a) of Regulation (EEC) N° 2423/88. For one exporter, the volume of sales on the domestic market in the ordinary course of trade was less than 5% of the volume of exports of the product to the Community since most sales were made to related parties. Therefore, the normal value was constructed in accordance with Article 2(3)(b)ii of the basic Regulation. Export prices were in general established on the prices actually paid or payable for the product sold for export to unrelated parties in the Community. Where there were sales to related parties in the Community, export prices were constructed in accordance on the basis of the prices at which the imported product was first resold to independent buyers in the Community. Injury With regard to injury, it was found that the volume of imports into the Community rose substantially, representing an increase in market share from 0. 8% in 1990 to 8. 3% in the first half of 1993, whereas the market share of the Community industry decreased from 96% to 88% over the same period. After examination of all the elements affecting the Community industry, the Commission concluded that the latter was suffering material injury, characterised mainly by the decline in market share, the deterioration of financial results and employment cutbacks. The prevailing situation had also forced the Community 11 producers to reduce production and production capacity and in some cases to shut down plants. As far as causation was concerned, it was established that the injury suffered by the Community industry coincided with the increase of the dumped imports from the USA. With regard to other factors, it was concluded that the dumped imports from the USA, taken in isolation, had, via their increased market penetration and price undercutting of up to 15% caused injury which had to be regarded as material. Community interest After examining the various interests involved, and in particular the position of the major processing industry, the glass industry, it was established that the adoption of the measures would re-establish fair competition by eliminating the injury caused by dumping. Furthermore, the impact of the anti-dumping duties on the prices of glass was considered to be minimal. Accordingly, it was concluded that to leave the Community soda ash industry without protection against this unfair competition would not be in the interest of the Community and that the Community interest called for the imposition of anti dumping measures. Measures The level of injury suffered was in some cases lower than the dumping margins found. Therefore, the anti-dumping duties imposed were based on the lower level found for each company, ranging from 5. 4% to 14. 3%, with the exception of one company to which no duty was applicable. See section 5. 2. 4. below with regard to definitive measures taken in this case. 4. 2. 2. Microwave ovens from the P. R. China. S. Korea. Thailand and Malaysia On 8 July 1995, provisional anti-dumping duties were imposed on imports into the Community of microwave ovens originating in the People's Republic of China, the Republic of Korea, Thailand and Malaysia. The investigation had been initiated on 18 December 1993 following a complaint lodged by the Groupement Interprofessionnel des Fabricants d'Appareils Electroménagers. Dumping Dumping margins ranged from 4. 8% to 32. 8% for the cooperating producers in Korea, and were 31. 7% for the cooperating Malaysian producer, 20. 3% for the Thai cooperating producer and 20. 8% for the P. R. China. Given the high level of non-cooperation for microwave ovens originating in Thailand, a residual duty of 31. 8% was imposed, based on the highest weighted average dumping margin found for the cooperating producer with regard to an individual microwave oven segment. 12 The Republic of Korea was selected as an analogue country for the determination of normal value for the P. R. China. Normal values for Thailand and Malaysia were constructed on the basis of the costs of manufacturing of the cooperating producers plus a reasonable amount for selling, general and administrative expenses and profit based on the profitable sales of the Korean producers, as none of the Malaysian and Thai companies concerned had domestic sales. For the Korean producers who had sufficient domestic sales in the ordinary course of trade on their domestic market, normal value was either based on the price actually paid or payable for comparable models, or constructed for those models exported which were not comparable to models sold on their domestic market by using the costs of manufacturing of the exported models plus the selling, general and administrative expenses and profit of the producers concerned. For the Korean producer who had sufficient domestic sales to permit a proper comparison, but where it was found that those sales were not in the ordinary course of trade, normal value was constructed by using its costs of manufacturing plus its selling, general and administrative expenses and a reasonable margin for profit established as the average of other Korean companies which had profitable sales on the domestic market. For the Korean producer which had no domestic sales on the Korean market, normal value was constructed by using its manufacturing costs, while selling, general and administrative expenses and profit were established as the average of other Korean producers which had profitable sales on the domestic market. Export prices were either based on prices actually paid or payable for the products sold for export to unrelated parties in the Community, or constructed on the basis of the prices at which the imported ovens were resold to the first independent buyer. This was done where sales were made via related parties in the Community, which was the case for a number of Korean producers. In order to permit a fair comparison between the normal values and the export prices, allowance was made for all factors affecting price comparability. Injury and causation After examining all the elements affecting the Community industry, the Commission concluded that the latter was suffering material injury, particularly visible in the form of deteriorating financial results which turned into substantial and increasing losses and in the form of a decrease in market shares. Import prices were found to have undercut the prices charged by the Community producers by margins ranging from 21% to 40%. As far as causation was concerned, it was established that the injury suffered by the Community industry coincided with an increase in volume and market share of 13 the low priced dumped imports. No other major factors were identified that could have caused the injury suffered by the Community industry. Community interest With regard to Community interest, it was considered that the adoption of measures was necessary in order to re-establish effective competitive conditions on the Community market and to eliminate the injurious effects of the dumped imports which might jeopardize the viability of the production of microwavee ovens by the complaining industry. The dumped imports would also directly affect suppliers of components and spare parts, and could indirectly affect the whole sector of household appliances. Measures Since the level of injury found exceeded the dumping mai gins, the provisional duties were imposed at the level of the latter. For Korea, the provisional duties imposed ranged from 4. 8% to 32. 8%, the provisional duty for the cooperating Malaysian producer was 31. 7%, 20. 3% for the Thai cooperating producer and 20. 8%) for the P. R. China. As explained above, a residual duty of 31. 8% was imposed for non-cooperating Thai producers. 4. 2. 3. Persulphates from the P. R. China On 17 July 1995, a provisional anti-dumping duty was imposed on imports into the Community of persulphates originating in the People's Republic of China. The investigation had been initiated on 2 March 1994, subsequent to a complaint lodged by the European Chemical Industry Council (CEFIC) representing the totality of Community producers. The Commission found that the three different types of persulphates (ammonium, sodium, potassium) should be treated as one single product because the three different types are perfectly interchangeable. The Commission also concluded that persulphates produced in tne Community and the reference countrry, Japan, were alike to pei sulphates produced in the People's Republic of China, persulphates of the^e origins being identical on a type-by-type basis in their chemical composition and in their applications. Dumping As the People's Republic of China is a non-market economy country, the determination of normal value had to be based on market economy country. The complainant suggested the USA as reference country. However, the producer in the USA refused to co-operate with the Commission. The Commission then contacted to other known producers of persulphates in Taiwan, Turkey, Japan, India and Mexico. Producers in Turkey and Japan agreed to co-operate with the Commission. The total production of persulphates by the sole producer in Turkey was found to be limited. On the other hand, Japan was found to be the second 14 largest producer of persulphates in the world, and the presence of two independent producers was likely to ensure competition on the Japanese market. All three types of persulphates were produced in Japan using the same manufacturing process as in the People's Republic of China. Based on information submitted by the two Japanese companies willing to co-operate with the Commission, normal value was established on the basis of the net selling price at which the like product was sold in Japan. Export prices for co-operating exporters were established on the basis of sales to unrelated importers actually paid or payable for the products sold for export to the Community by the co-operating exporters. The Commission decided to establish export prices for the non-cooperating exporters on the basis of the export prices of the two cooperating exporters, in accordance with Article 7 (7) (b) of Council Regulation (EEC) No 2423/88. The dumping margin established on this basis, expressed as a percentage of the CIF Community frontier import price, was 110. 1%. Injury With regard to injury, it was found that imports had increased from 1. 454 tonnes in 1989 to 3. 367 tonnes in 1993. The share of the Community market held by the Chinese exporters increased from 7. 4% in 1989 to 18. 1% in 1993. During the same period, quantities sold by the Community industry dropped from 15. 081 tonnes to 12. 287 tonnes, whilst its market share dropped from 76. 6% to 65. 3%. Profitability for the Community producers decreased substantially, while one of them suffered heavy financial losses. Based on these elements, the Commission concluded, for the purpose of its preliminary findings, that the Community industry had suffered material injury. Community interest With regard to Community interest, it was concluded that it was in the interest of the Community to adopt measures aimed at eliminating the injury caused to the Community industry by dumped imports of persulphates from the People's Republic of China. Indeed, the cost of persulphates as an oxidizing agent forms an extremely small part of the overall cost of the end-users. Under these circumstances it would not be in the interest of the Community to expose ifself to the risk of total shutdown of an entire industry for the benefit of short-term advantages for end-users of persulphates. The injury margin established being below the dumping margin found, the provisional duty was imposed at the level of the latter, i. e. 83. 3%. 15 4. 2. 4. Refractory chamottes from the P. R. China The notice of initiation of an anti-dumping proceeding was published on 15 April 1993, covering imports into the Community of certain types of refractory chamottes originating in the P. R. China. A provisional anti-dumping duty was imposed on 30 July 1995. Dumping Since the People's Republic of China is a state trading country, normal value had to be based on the conditions of a market economy country (analogue country). In this case, the domestic prices in the U. S. A. were used as a basis for normal value. As no cooperation was obtained from any Chinese exporter or related importer, the export prices were established on the basis of the export prices contained m EUROSTAT statistics. The dumping margin thus established amounted to 28. 4 %. Injury In terms of market share, the imports from the People's Republic of China rose from 31. 4 % in 1989 to 46. 5 % in the investigation period, whilst the market share of the Community industry fell from 57. 1 % to 40. 2 % over the same period. The investigation furthermore showed the existence of continued and systematic price undercutting which amounted to 4 %. The injury was reflected in a significant decrease of sales quantities, market share, production capacity, level of employment and profitability including the incurrence of a financial loss in the investigation period. Community interest It was established that the Community industry, due to its proven reserves of raw material and its location close to its clients, was in a position to ensure, in the long run, reliable supply to the user industry. Its maintenance was therefore considered to be in the interest of the users. Consequently, it was considered that measures had to be taken in order to protect the Community industry from unfair trading practices which threatened its viability. On the other hand, it was considered that, firstly, the measures would probably lead to a price increase and would thus have an impact on the production costs of the user industry and that, secondly, the measures should not result in a withdrawal of the Chinese exporters from the Community market. It was concluded, therefore, that the measures should be limited to a level necessary to remove the injury to the Community industry. 16 Measures Therefore, a variable provisional anti-dumping duty was imposed on the basis of a minimum price of 75 ECU per tonne, this being equivalent to an increase of 10 % of the average import price found in the investigation period. 4. 2. 5. Powdered activated carbons from the P. R. China On 15 August 1995, a provisional anti-dumping duty was imposed on imports into the Community of powdered activated carbons originating in the People's Republic of China. The proceeding had been initiated on 2 March 1994 following a complaint lodged by the Council of European Chemical Industries (CEFIC), representing a major proportion of Community production. Dumping A dumping margin of 71. 5% was established for all Chinese exports to the Community. The normal value was based on domestic prices in the USA which was considered to be an appropriate analogue country for this product. Injury It was found that Chinese imports had increased their market share of the Community market from 4. 1% in 1990 to 11. 4% during the investigation period (1993). The prices at which these imports were sold on the Community market were found to have undercut the prices charged by the Community industry by 23. 5%. It was, furthermore, established that the Community industry had suffered losses in production, sales, and market share, which led to a decrease in employment and resulted in increasing financial losses. Community interest It was considered that the short-term price advantages gained by users of powdered activated carbons from the dumped prices had to be seen against the background of the longer term effects of not restoring fair competition. Furthermore, it was clear that unless measures were taken, the viability of the Community industry might be at risk. As, in addition, the effect of any anti dumping measures on PAC users could not be significant, it was concluded that it was in the interest of the Community to remove the injury suffered by the Community industry through the effects of Chinese dumping and to restore fair competition by the imposition of a provisional anti-dumping duty. 17 Measures As the injury elimination level was lower than the dumping margin established, the provisional duty for Chinese PAC imports was set at the level of the former, i. e. 66. 8% of the net free-at-Community frontier price before duty. 4. 2. 6. Butt-welded tube or pipe fittings from the P. R. China. Croatia and Thailand On 3 October 1995, provisional anti-dumping duties were imposed on imports into the Community of tube or pipe fittings originating in the P. R. China, Croatia and Thailand. The proceeding had been initiated in February 1994 with regard to these three countries, as well as the Slovak Republic and Taiwan, subsequent to a complaint lodged by the Defence Committee of the EEC Steel Butt-Welded Fittings Industry. Dumping Since the P. R. China is a state-trading country, normal value had to be based on the conditions of a market economy country. In this case, domestic prices as well as constructed values in Thailand were used as a basis for normal value. For Croatia, it was found to be neceessary to establish normal value on the basis of the facts available. With regard to Thailand, normal value was based on domestic prices, and for certain product types either sold at a loss or not sold at all on the domestic market, on constructed value, calculated by adding costs of production and a reasonable amount for profit. Export prices for all producers and exporters in the thr. e countries were determined on the basis of sales to independent importers in the Community. On this basis, dumping margins were provisionally established at a level of 58. 6% for the P. R. China and Croatia, and between 39. 5% and 63. 4% for the three Thai exporters. Injury With regard to injury, the investigation revealed that the cumulated market share of the exporting countries concerned rose from 2. 5% in 1989 to 14. 3% during the investigation period. The imports were made at prices which undercut those of the Community industry by between 21. 3% and 40. 7%. As a result, the Community industry suffered a decline in production and sales volume, and a loss of market share, and was unable to introduce price increases to cover rising production costs. Their financial results deteriorated as a consequence. Community interest In assessing the Community interest, it was established that, in view of the substantial financial losses incurred by the Community producers, not to take anti dumping measures would aggravate the situation and threaten the viability of the Community industry. With regard to the prices of the products concerned, it was 18 considered that the imposition of anti-dumping duties would have a limited effect on the end user industries. The investigation therefore concluded that it was in the Community's interest to remove the injury caused to the industry and to restore fair competition by the imposition of provisional anti-dumping measures. Measures Since, in the case of the sole Croatian producer and one of the Thai producers, the injury margin was lower than the dumping margin found, the duty for these producers was based on this lower level. In all other cases, the provisional duty was limited to the dumping margins established. The duty rates were, therefore, 58. 6% for the P. R. China and 38. 4% for Croatia. For Thailand, provisional duties ranged from 39. 5% to 58. 9%. 4. 2. 7. Coumarin from the PR. China Provisional anti-dumping duties were imposed on 7 October 1995 on imports into the Community of coumarin originating in the People's Republic of China. The investigation had been initiated on 20 May 1994, following a complaint lodged by the European Chemical Industry Council, on behalf of Rhône-Poulenc, the sole Community producer of coumarin. Dumping The dumping margin calculated for these imports was in excess of 50%. The normal value was based on domestic sales prices in the U. S. A. , the only market economy country in which it was possible to find a coumarin producer willing to co-operate. Furthermore, it was established that the U. S. A. could be considered to be an appropriate analogue country. Export prices were established on the basis of the prices actually paid by importers of coumarin in the Community. In order to allow a fair comparison between normal value and export prices, normal value was based on selling prices at distributor level in the U. S. A. , and it was adjusted downwards to take into account differences in physical characteristics. Further adjustments were made for all other factors affecting price comparability, i. e. ocean freight, insurance and credit costs. Injury With regard to the injury, it was found that imports from the P. R. of China increased their market share by 66% between 1990 and the investigation period, in a market which shrank by about 10% over the same period. This result was obtained by a systematic price undercutting policy. During the investigation period in particular, the prices of imports from P. R. of China undercut those of the Community producer by 28. 7%. 19 The Community producer, which tried to maintain the level of its prices in order to cover its production costs, saw its sales on the Community market cut by half and its market share reduced by more than 50%. Consequently the production costs per unit of the Community producer increased considerably and it recorded heavy losses from 1992 until the investigation period. Community interest The Commission considered that it was not in the Community interest to risk the shutting down of the sole coumarin plant in the Community, in view of its heavy consequences on employment; in this case, not only the people directly involved in the production of coumarin would lose their jobs, but also those employed in other linked production processes, which would become uncompetitive. The Commission also found that the impact of the duty on the prices of the perfume compounds containing coumarin would be negligible. Measures Since the dumping margin exceeded the level of injury, the anti-dumping duty was based on the latter. A provisional antidumping duty of 3479 ECU per tonne was therefore imposed on imports of coumarin from the P. R. of China. 4. 2. 8. Bicycles from Indonesia. Malaysia and Thailand On 14 October 1995, provisional anti-dumping duties were imposed on imports of bicycles from Indonesia, Malaysia and Thailand. The proceeding had been initiated on 3 February 1994, following a complaint lodged by the European Bicycle Manufacturers Association (EBMA). This was the second complaint involving bicycles. The first, concerning imports from Taiwan and the People's Republic of China, had been initiated in October 1991 and was concluded with the imposition of a definitive anti-dumping duty of 30. 6% on imports from the People's Republic of China in September 1993. With regard to imports from Taiwan, that proceeding was terminated without measures in September 1993. Dumping Dumping margins for co-operating producers ranged from 0. 4% to 22. 8% in Indonesia, from 25. 2% to 38. 3% in Malaysia and from 13. 2% to 41. 9% in Thailand. For non-co-operating producers in each of the three countries, a' dumping margin based pn the weighted average of the highest dumping margins found for bicycle models exported to the Community was considered appropriate. Those duty rates were 29. 0% for Indonesia, 41. 5% for Malaysia and 48. 8% for Thailand. For two Indonesian companies which did not sufficiently co-operate in the investigation, provisional dumping margins were based on the arithmetic average of the highest dumping margin found for a co-operating company in Indonesia and the rate established for non-cooperating producers. That rate was 25. 9%. 20 Normal values for a number of models of bicyles exported from Indonesian and Thai producers could be based on verified domestic sales prices. For the rest of models exported from Ii? ionesia, Malaysia and Thailand, bicycle models sold domestically were technically too different, not sold in sufficient quantities or sold at a loss. Consequently, normal values were constructed on the basis of verified manufacturing costs plus a reasonable amount for selling, general and administrative expenses and profits. Export prices for all three countries were based on prices actually paid or payable for products for export to unrelated parties in the Community. Injury The aggregated market share of dumped imports from Indonesia, Malaysia and Thailand increased form 4. 4% in 1990 to 6. 8% in 1993, whilst the share of the Community producers fell from 42. 0% in 1990 to 33. 5% in 1993. The prices of dumped imports significantly undercut prices of the Community industry by up to over 40%. Contrary to positive expectations for recovery, based upon the decline of imports from the People's Republic of China, sales, turnover and production decreased substantially, resulting in a significant loss of market share, a lower capacity utilization, smaller employment figures and a deterioration of the financial situation. As regards causation, it was found that imports from India, South Korea and Vietnam, as well as sales from non-cooperating Italian companies, also increased. A customs investigation co-ordinated by DG XXI revealed that bicycles reported in EUROSTAT as coming from Vietnam actually originated in China. As regards prices, the Commission had no evidence that Indian or South Korean bicycles, or bicycles produced by non-cooperating Italian producers, were sold at prices as low as those from the countries under investigation. It could not be ruled out that imports from India, South Korea or Vietnam or sales by non-cooperating Italian producers may have contributed to the difficult state of the Community industry. However, it was concluded that, given the substantial increase of import volumes from Indonesia, Malaysia and Thailand and the considerable degree of price undercutting, those imports, taken in isolation, had caused material injury to the Community industry. Community interest Having examined the various interests involved, it was felt that the imposition of provisional measures would re-establish fair competition by eliminating the injurious effects of dumping practices from Indonesia, Malaysia and Thailand, and would afford to the Community industry the opportunity of maintaining competitive production. Furthermore, it was considered to be in the Community interest to adopt provisional anti-dumping duties in order to prevent further injury being caused by the dumped imports during the remainder of the investigation. 21 Measures Undercutting margins for all co-operating producers were higher than the provisional dumping margins. Therefore, provisional duties were imposed at the level of the dumping margins. 4. 2. 9. Microdisks from Malaysia. Mexico and the U. S. A. On 16 October 1995, provisional anti-dumping duties were imposed on imports into the Community of 3. 5" microdisks originating in Malaysia, Mexico and the USA. The proceeding had been initiated on 2 September 1994, following a lodged by the Committee of European Diskette Manufacturers complaint (DISKMA). This was the third complaint involving 3. 5" microdisks lodged by DISKMA. In the first, concerning imports from Japan, Taiwan and the People's Republic of China, definitive anti-dumping duties were imposed in October 1993; the second involved Hong Kong and South Korea, with the imposition of definitive duties in September 1994. Dumping It proved unnecessary to establish whether dumping existed for co-operating producers in Mexico and the US, as the injury margins for these producers were found to be de minimis. For Malaysia, dumping margins ranged from 26. 8% to 46. 4%. A large proportion of exports from each of the countries concerned was not covered by the investigation (32% for Malaysia, 65% for Mexico and 40% for the US). In addition, Eurostat data showed that the prices of the exports of non- cooperating producers in each country were greatly below those of producers which had cooperated, and undercut Community industry prices by large margins. In the light of these factors, dumping margins for non-cooperating producers were established on the basis of the highest dumping margin found or the dumping margin alleged by the complainant, whichever was the higher. The resultant margins were 46. 4% for Malaysia, and 44% for Mexico and the USA. For Malaysia, normal value for one cooperating producer was established on the basis of the price actually paid in the ordinary course of trade for domestic sales of the product concerned. As the domestic ^ales of the other cooperating producer were insufficient to permit a proper comparison, normal value was calculafed on the basis of the verified costs of production for the producer concerned plus a reasonable amount for selling, general and administrative expenses, and profit. Export prices for Malaysia were generally established on the basis of the price actually paid or payable for the product sold for export to unrelated parties in the Community. Where there were sales to related parties in the Community, as was the case for one co-operating producer, export prices were constructed in accordance with Article 2(9) of Regulation (EC) No 3283/94, on the basis of the price at which the imported product was first resold to independent buyers in the Community. 22 Injury After examination of all the elements affecting the Community industry, the Commission concluded that the latter was suffering material injury. Although certain quantitative indicators, such as production, sales and capacity utilisation showed positive development, due in large measure to the expansion of the market, the benefit of this positive movement was totally offset by the low levels of prices, which remained below the threshold necessary for the generation of profits adequate to finance the investment needed to allow the Community industry to keep pace with the swiftly changing conditions prevailing in the area of information technology. Despite expanding consumption, for example, the Community industry's prices fell by 44% between 1990 and July 1994. Community interest After weighing the various interests involved, it was concluded that the adoption of measures would re-establish fair competition by eliminating the injury caused by dumping, and allow the Community industry an opportunity to maintain and develop its presence in a rapidly changing sector of technological importance. In addition, the component supply industry would derive a degree of security from the continued viability of the Community industry. Measures The Commission imposed provisional measures at the level of the lower of the price undercutting margins or the dumping margins. For Malaysia, provisional duties ranged from 13% to 46. 4%, and, for Mexico and the USA, from 0% to 44%. 4. 2. 10. Grain-oriented electrical steel sheet from Russia On 20 October 1995, a provisional anti-dumping duty was imposed on imports of certain grain-oriented electrical sheets originating in Russia. The investigation had been initiated on 20 May 1994, following a complaint lodged by EUROFER. (European Federation of Iron and Steel Industries) allegedly acting on behalf of a major proportion of Community production. The product concerned is grain oriented cold-rolled sheets and strips of silicon- electrical steel with a width of more than 500 mm, which are used for electromagnetic appliances and in installations such as power and distribution transformers. The product concerned is an ECSC product. Dumping Russia being a non-market economy country, Brazil was selected as analogue country. Normal value was calculated on the basis of the weighted average 23 domestic selling price of the like product sold for consumption on the Brazilian market. Since all export transactions were found to have been dumped, the export price was calculated on the basis of the weighted average selling price actually paid or payable for all export transactions to the Community On the basis of this approach, a substantial dumping margin was determined at the provisional stage, amounting to 73. 46%). Injury With regard to injury, the investigation determined that the imports concerned had substantially increased, reaching a market share of 7. 4% in 1993 and in the first four months of 1994, up from 0. 7% in 1990. These imports were made at prices which undercut those of the Community producers by up to 28%. The Community industry suffered losses of sales and market share, and was forced to depress its prices, factors which together led to a decline in profits and, in the end, to financial losses. Community interest With regard to the Community producers, the investigation showed that the substantial increase in the of dumped imports had already caused a significant deterioration of their situation and that, in the absence of protective measures, this situation would continue or even be aggravated. As grain-oriented electrical sheets are used mainly in the electrotechnical industry for the production of a wide variety of industrial and other appliances used in sensitive areas like defence, transport and power distribution, it was considered to be in the interest of the Community to preserve its own steady, reliable and high quality sources of supply. With regard to the end users, it was considered that, even if the imposition of anti dumping measures were to result in a certain increase in the price of the steel sheets in question, such an effect would be counterbalanced by the maintenance of a continued supply of high quality products from sources within the Community. Measures As the dumping margin found was greater than the level of injury caused by the , dumping, the provisional duty was set at the level of the injury margin, i. e. 43,2 %. 4. 2. 11 Unwrought magnesium from Russia and Ukraine On 23 December, a provisional anti-dumping duty was imposed on imports into the Community of unwrought magnesium originating in Russia and the Ukraine. The proceeding had been initiated on 15 January 1994, following a complaint lodged by the Liaison Committee for Ferro-Alloy Industries (Euroalliages). 24 Dumping Dumping margins of 55% and 64% were established for Russia and Ukraine respectively. As these countries are both considered to be non-market economies, the normal value had to be based on a market economy country. The complainants had suggested Japan, which the Commission considered not to be comparable to Russia and the Ukraine with regard to access to raw materials and technology used. A producer in the U. S. A. decided not to cooperate in the proceeding, whilst one producer in Canada who was willing to cooperate was found not to have sufficiently representative domestic sales. Norway was finally selected as reference country for both Russia and the Ukraine, a choice justified by the fact that the production plants in Russia and the Ukraine were set up during the existence of the USSR and used the same production technology. Though the Norwegian producer was found to have substantial domestic sales, normal value was constructed as it was established that this producer had not made profitable sales of the product concerned in sufficient quantities during the investigation period. Export prices and volumes for Russia were determined on the basis of all the export transactions reported by one of the Russian producers and on the basis of the sales transactions reported by the other producer as having been made to its related company located in Switzerland. Export prices and volumes for Ukraine were determined by taking into consideration all sales transactions for which the shipping address was a customer located in the Community. Injury With regard to injury, it was found that cumulated imports from Russia and the Ukraine had increased from 2. 000 metric tonnes in 1991 to 6. 000 metric tonnes in the investigation period, corresponding to an increase in market share from 4% in 1991 to 20% during the investigation period. In comparison, the Community industry's market share fell from 17% to 7% over the same period. Furthermore, the prices of the imports were found to have continually decreased, undercutting those of the Community industry, which were already depressed, by between 30% and 40% during the investigation period. In addition, the Community industry's substantially reduced production and sales volume, the decrease in capacity utilization and the increase in stocks led to significant financial losses during the investigation period, despite efforts to reduce costs. Based on these elements, the Commission concluded, for the purposes of its preliminary findings, that the Community industry had suffered material injury. Community interest In this regard, it was noted that, without remedial action, the viability of the Community industry would have been threatened, a consequence of which had already been foreshadowed by the fact that one Community producer had already ceased production. With respect to the competition situation, it was found to be unjustified to conclude that the imposition of measures would have the consequence of eliminating Russian and Ukrainian exporters from the Community 25 market in view of the presence of other exporters who were not dumping. No users of unwrought magnesium submitted information relating to the possible effect of anti-dumping measures on their situation, though it could be assumed that they had benefitted, in the short term, from the low prices of dumped imports. Due to the relatively small percentage of total production costs represented by unwrought magnesium in its main applications, it was concluded that the effect on the users, if any, of imposing measures would be very limited. It was, therefore, deemed to be in the interest of the Community to ensure the viability of the sole Community producer and consequently to impose anti-dumping measures. Measures As the injury elimination margin was found to be higher than the dumping margin, the measures were imposed on the basis of the latter. The measures took the form of a variable duty based on a minimum price of ECU 2. 735 for Russia and ECU 2. 701 for Ukraine in order to enable the exporters to maximize their returns while at the same time ensuring that injurious dumping is eliminated. 5. DEFINITIVE MEASURES 5. 1. OVERVIEW Definitive measures may be taken where the facts as finally established during the investigation show that there is dumping or subsidization, that injury is caused thereby, and that the interests of the Community call for intervention. Definitive anti-dumping or countervailing duties are imposed by t^e Council, acting by simple majority on a proposal submitted by the Commission after consultation of the Member States. As shown in Table 1, definitive duties were imposed in 1995 in 13 cases. Though rather less than in previous years, it reflects the fact that all but one of the provisional duties imposed in 1995 were published in the second half of the year, and as such, can be valid for up to six months. The definitive duties imposed again cover various product sectors and origins. Whilst details of these duties can be found in Annex C, a summary of each case is given below. 5. 2. CASES 5. 2. 1 Furfuraldehyde from the P. R. China On 21 January 1995 the Council imposed a definitive antidumping duty on imports into the Community of furfuraldehyde originating in the P. R. China. The investigation had been initiated in July 1993, and a provisional duty imposed on 21 July 1994. 26 Dumping A dumping margin of 62,6% was established for the Chinese exports. The normal value was calculated on the basis of domestic sale prices in Argentina , which was considered to be an appropriate analogue country. Export prices were determined on the basis of actual prices to independent importers in the Community. In order to allow a fair comparison between normal value and export prices, allowances were made for all factors affecting price comparability. Injury After a further analysis, the Commission decided to include in the assessment of injury the imports from a third country, which had been formerly excluded on the grounds that these imports occurred in a captive market. On this basis, it was found that imports from the P. R. China had increased from 13. 7% in 1992 to 15. 7% during the investigation period. The prices of these imports were found to have undercut those of the Community producer by 24%, and and to have decreased by more than 30% during the investigation period. In this larger market context, it was established that the Community producer managed to maintain its market share at a level of around 6%, by dint of dropping its sales prices by 36% between 1991 and the investigation period. However, as the market shrank, the complainant suffered a considerable decline in sales and production volumes which, cumulated with the price depression, resulted in heavy financial losses. Community interest The Council considered that it would not be in the Community interest to risk the disappearance of the sole remaining producer left in the Community of a product which has a strategic importance in the oil refining sector. The Council also found that the impact of an increase in the price of furfuraldehyde on the price of the end product would be negligible. Measures Since the dumping margin found exceeded the level of injury, the anti-dumping duty was based on the latter. A definitive anti-dumping duty was imposed which took the form of a fixed amount of 352 ECU per tonne. 5. 2. 2. Colour television receivers from Malaysia, the P. R. China. S. Korea. Singapore, and Thailand On the 01. 04. 95, definitive anti-dumping duties were imposed on imports into the Community of CTVs from the five countries referred to above. The proceeding 27 was initiated on the 25 November 1992 following a complaint from SCAN, representing several large Community producers. Provisional duties were imposed on the 1 October 1994. Origin In the case of several exporters, the origin of their CTV exports was found to be different to the origin declared to the Customs authorities on importation into the Community. This finding was especially marked in the case of exports made from Turkey and was one of the principal determining factors which led the Commission to terminate the proceeding in respect of Turkey. A separate summary of the Commission's decision is outlined below (section 6. 2. 5. ) Dumping For technical reasons which would have required numerous adjustments to the domestic selling prices charged in each of the exporting market economy countries, normal values for these countries were based instead on constructed values. These normal values were constructed by adding to the reported manufacturing costs of the models exported to the Community, the weighted average SG&A costs incurred on the domestic markets of these countries. To these production costs was added an amount for profit corresponding to the average profit earned on CTV sales on the domestic markets. Because the P. R. China is a non-market economy country, normal value was based on constructed value in Thailand, which was considered to be an appropriate analogue country. Export prices were constructed for some exports from S. Korea, Thailand and Singapore on the basis of the prices charged to the first independent customer in the Community, as these exports had been imported by related parties and the CIF price was, therefore, a transfer price. In order to establish a fair basis for comparison between domestic and export prices, allowances were made, where appropriate, for all factors affecting price comparability, e. g. differences in conditions of sale such as different credit terms, duty drawback claims on exported models, transport and other direct selling costs. The dumping margins found ranged from 2. 3% to 25. 1% for Malaysia, 14. 7% to 33. 6% for Thailand, 0% to 24. 6% for Singapore, 13. 4% to 17. 9% for S. Korea. A single margin of 25. 6% was established for the P. R. China, while a zero dumping margin was established for two Turkish companies assembling CTVs of S. Korean origin. Injury Between 1989 and the end of the investigation period, imports from the countries concerned increased by almost 135%, from 2. 04 million units in 1989 to 4. 8 28 million units. This import surge was accompanied by a parallel increase in market share, which increased from 9. 9% to 19. 6% over the same period, whilst sales by the Community industry fell by 6% in terms of volume and the corresponding market share declined fi n 36% to 28%. Injury calculations were based on the weighted average margin of price undercutting found in France, Germany, Greece, Italy, Spain and the U. K. The margins of price undercutting found at the provisional stage were confirmed and injury elimination levels were calculated as follows, up to 23. 4% for Malaysia, up to 29. 89% for Thailand, up to 23. 68% for Singapore, up to 54% for S. Korea and 58. 7% for the P. R. China. The Community industry was found to have suffered injury with declines in production, capacity utilization, sales, market share, prices and employment. The Commission found that, notwithstanding the possible negative impact of other factors on the Community industry, dumped imports from the countries concerned, with the exception of Turkey, had materially injured the Community industry. Community interest It was considered that the restoration of fair trading practices would neither prevent producers in third countries or other established producers in the Community competing on the Community market, nor reduce diversity of supply. The anticipated remédiai effects of the measures were expected to take the form of a redistribution in the market shares held by the competing elements on the Community market, with any price increases being limited by the nature of the measures imposed and the number of competitors on the Community market. Measures The definitive duties imposed were equivalent to the lower of the price undercutting margins found and ranged from 0% in the case of CTVs of S. Korean origin assembled in Turkey to 17. 9% for S. Korea, from 2. 3% to 23. 4% for Malaysia, from 0% to 23. 6% for Singapore, from 3% to 29. 8% for Thailand, and a single duty of 25. 6% for the People's Republic of China. 5. 2. 3. Ammonium nitrate fertilizer from Russia In June 1994, the Commission announced the initiation of an anti-dumping imports into the Community of ammonium nitrate proceeding concerning originating in Lithuania and Russia, and commenced an investigation. Dumping The investigation revealed that imports from both Russia and Lithuania had been dumped. The investigation period was April 1993 - March 1994. Since these countries w jre both non-market economies, normal value was based on profitable 29 domestic sales of ammonium nitrate in Poland, which was chosen as analogue country. The dumping margins established were 31. 3 ECU/tonne for Russia and 21 ECU/tonne for Lithuania. Injury Between 1990/91 and 1993/94, the Community industry lost market share and sales, and suffered a steep fall in production and selling prices. A profit of 15. 6% on sales in 1990/91 deteriorated to a loss of 6. 8% by 1993/94. The Community industry was therefore found to have suffered material injury. The market share of imports from Russia increased from 0. 3% in 1990/91 to 7. 3%, and undercut the price of the Community producers by 6 ECU per tonne, even after a quality adjustment. Russian imports were therefore found to have caused material injury to the Community industry. Community interest The need to re-establish a situation of fair competition by protecting the Community industry from injurious dumping was considered to outweigh any small increase in fertiliser prices to farmers which may result from the measure. Measures Imports from Lithuania, however, in view of their much lower and declining market share (3. 2%) and their slightly higher price, were not considered to have caused material injury, and the proceeding was terminated with regard to Lithuania (see section 6. 2. 1). Consequently, a definitive anti-dumping duty was imposed only on imports of ammonium nitrate from Russia, in the form of a variable duty. The minimum price of 102. 9 ECU per tonne was based on the injury threshold, which was just below the dumping margin. In view of this finding, the UK regional anti-dumping measure against imports from Russia (a quantitative undertaking set at 100. 000 tonnes per year) was therefore be repealed, while the equivalent regional measure concerning imports from Lithuania remained in force. 5. 2. 4. Sodium carbonate (soda ash) from the U. S. A. Provisional duties were imposed on this product from the U. S. A. on 13 April 1995 (see section 4. 2. 1. above). At the definitive stage, these duties were adjusted subsequent to a recalculation of the underselling margins. The level of duties imposed at the definitive stage thus ranged from 2. 5% to 13. 9%, with the exception of one company to which no duty was applicable. 30 5. 2. 5. Ferro-silico-manganese from Brazil. Russia. S. Africa and Ukraine On 6 October 1995, definitive anti-dumping duties were imposed on imports of ferro-silico-manganese originating in Brazil, Russia, S. Africa and Ukraine. The investigation had been initiated on 4 August 1993, and provisional duties were imposed on 19 December 1994. Dumping The dumping margins definitively established were 54. 2% for Russia, 43. 9% for Ukraine, 36. 1% for Brazil, and 45. 3% and 48. 3% for the cooperating producers in South Africa. Since Russia and Ukraine are non-market economies, the normal value for these countries was based on the normal value calculated for Brazil. With regard to Brazil, only two companies cooperated in the investigation and, since one was a subsidiary of the other, it was considered appropriate to calculate one dumping margin for the group. The normal value for Brazil was accordingly based on an average of the data submitted by both producers. It was determined on a monthly basis in order to offset inflation, and recourse was had to domestic sales or to a constructed value where prices did not permit recovery of all costs in the ordinary course of trade. For the South African producers, normal value was based on domestic sales in the ordinary course of trade. Export prices were those charged to independent importers or constructed where, as in the case of one South African producer, sales were made to a related importer in the Community. In comparing the normal value with the export prices, due allowances were made for differences in physical characteristics and selling expenses affecting price comparability. Injury With regard to injury, it was found that the cumulated market share of the countries cited increased from 15. 4% in 1989 to 29. 7% during the investigation period, whilst prices of these imports continuously decreased, undercutting those of the Community industry. The consequent impact on the Community industry was a loss in market share, price depression and a deterioration of the financial results of this industry, leading to heavy losses. Community interest With regard to Community interest, it was considered that the need to preserve a Community presence in this sector outweighed the limited impact that the measures would have on the end users, the steel producers. Measures Definitive duties were imposed at the level of the dumping margins found, in the form of variable duties, which amounted to the difference between the net free-at- 31 Community frontier price, before duty, and minimum prices of 504 ECU/tonne for Russiaa, 492 ECU/tonne for Ukraine, 485 ECU/tonne for Brazil and 500 ECU/tonne for South Africa. The cooperating Ukrainian and South African exporters offered undertakings which were considered to be acceptable by the Commission, and were therefore excluded from the scope of the duty. However, due to the immediate withdrawal of its undertaking, the imports of one South African company were made subject to registration. 5. 2. 6. Persulphates from the P. R. China Provisional duties were imposed on this product from the P. R. China on 17 July 1995 (see section 4. 2. 3 above). At the definitive stage, having considered the arguments presented, particularly with regard to quality differences and like product, the provisional duty level of 83. 3% was confirmed at the definitive stage. 6. TERMINATIONS WITHOUT MEASURES 6. 1. OVERVIEW Investigations are concluded without measures when no dumping or injury is found or for other reasons, such as the withdrawal of the complaint. In 1995, eight investigations were concluded without measures, 4 of which due to findings of no injury, 3 due to the withdrawal of the complaint and one because the products exported were found not to have the origin of the exporting country. The ratio of investigations terminated without measures to the total number of investigations concluded over the last five years has remained relatively steady, at about one-third. Details of the investigations terminated without measures are given in Annexes D and E, and a short summary of each case is given below. 6. 2. CASES 6. 2. 1. Colour television receivers from Turkey On 1st April 1995, the Commission terminated the anti-dumping proceeding in respect of imports into the Community of colour television receivers originating in Turkey. The proceeding had been initiated on 25 November 1992 following a complaint from SCAN, representing several large Community producers. Dumping The dumping investigation established that the vast majority of the televisions exported from Turkey originated in either South Korea or the Community itself. In addition, it was established that a number of practices which were likely to favour the dumping of colour televisions from Turkey had been, or were in the process of being, phased out by the Turkish government. 32 In the light of the above and the absence of any new evidence, the Commission saw no reason to amend its provisional finding that there were insufficient elements to justify the imposition of measures on CTVs exported from Turkey and accordingly, terminated the proceeding. 6. 2. 2. Watch movements from Malaysia and Thailand In May 1994, the Commission imposed a provisional anti-dumping duty on imports into the Community of watch movements originating in Malaysia and Thailand. Shortly after the imposition of this provisional duty, the sole Community producer, which was the complainant industry in this proceeding, went into receivership. In October 1994, the Commission was informed that the Community producer concerned had been taken over by another company. Given this change of circumstances with regard to the Community industry, the Commission examined whether this factor might lead to a change in its findings as set out in the provisonal Regulation. In this regard, the Commisison noted that, since the take-over of the sole Community producer, the new owners of the company had explicitly requested that the proceeding not be pursued. In these circumstances, the Commission concludued that the proceeding shsould be terminated without the imposition of protective measures. A Decision to that effect was published in the Official Journal on 1 June 1995. 6. 2. 3. Ammonium nitrate fertilizer from Lithuania In June 1994, the Commission announced the initiation of an anti-dumping proceeding concerning imports into the Community of ammonium nitrate originating in Lithuania and Russia. The investigation revealed that imports from Lithuania had been dumped. As Lithuania is a non-market economy country, normal value was based on profitable domestic sales of the like product in Poland, which was chosen as analogue country. The dumping margin was established at 21 ECU/tonne for Lithuania. Imports from Lithuania, however, in view of their small and declining market share ((3. 2%) and their slightly higher price, were not considered to have caused material therefore considered unnecessary to impose anti-dumping measures on Lithuania, and the proceeding was consequently terminated on 23 August 1995. industry. It was the Community injury to 6. 2. 4. Butt-welded tube or pipe fittings from Slovakia and Taiwan The notice of initiation of an anti-dumping proceeding with regard to imports into the Community of butt-welded tube or pipe fittings from, inter alia, Slovakia and 33 Taiwan was published on 3 February 1994, subsequent to a complaint lodged by the Defence Committee of the EEC Steel Butt-Welded Fittings Industry. Dumping Since the sales made by the companies concerned on their domestic markets in Slovakia and Taiwan were found to have been made at a loss, normal values were constructed by adding a reasonable profit margin to the cost of production. Export prices for both countries were established on the basis of actual prices paid or payable by independent importers in the Community. The comparison of normal values with export prices showed dumping margins of 25. 2% for Slovakia and between 49. 9% and 54. 4% for the Taiwanese exporters. Injury It was found that the volume and market shares of the imports from Taiwan and Slovakia were sharply declining. It was therefore considered that they were not contributing industry. Accordingly, protective measures were deemed unnecessary, and the Decision terminating the investigation with regard to Slovakia and Taiwan was published on 3 October~1995. injury suffered by the Community the material to 6. 2. 5. Parts for disposable lighters from Japan On 7 October 1995, the Commission terminated the anti-dumping proceeding with regard to imports into the Community of parts fo<* gas-fuelled, non-refillable pocket lighters originating in Japan. The investigation had been initiated on 1st August 1991 During the course of the investigation, the Commission found that, subsequent to the complaint being lodged, the pattern of trade had changed insofar as parts of lighters were no longer exclusively sourced in Japan. Since doubts existed in relation to the actual origin of the parts in question, an additional investigation was carried out in order to determine the real origin of the goods. This investigation did not reveal any misdeclaration in respect of origin but, given the long period of time which it required, during which the anti-dumping investigation was suspended, the Commission considered it appropriate to verify whether the resumption of the latter investigation was warranted. Questioned in that market the complaining Community producers admitted this respect, developments since the initiation of the proceeding had resulted in imports of parts of gas-fuelled, non-refillable pocket lighters originating in Japan being no longer as injurious They to them as they were when the complaint was lodged. consequently withdrew their complaint. 34 6. 2. 6. Ferro-silico-manganese from Georgia The anti-dumping proceeding concerning imports of ferro-silico-manganese from Georgia was terminated without measures on 14 October 1995. The proceeding was initiated in Aaugust 1993 with regard to imports from Russia, Ukraine, Georgia, Brazil and South Africa, subsequent to a complaint lodged by the Liaison Committee of Ferro-Alloy Industries (Euroalliages). Provisional duties were imposed on the other countries involved on 19 December 1994. At that time, the imports from Georgiaa were excluded from the scope of the measures on the grounds that their negligible volume could not be considered to be contributing to the injury suffered by the Community industry. At the definitive stage, this finding was contested by neither the Community industry nor the other exporters. the proceeding with regard to Georgia. The Commission therefore formally terminated 7. ANTI-DUMPING AND ANTI-SUBSIDY INVESTIGATIONS - REVIEWS AND REOPENING OF INVESTIGATIONS 7. 1. OVERVIEW Anti-dumping or countervailing measures, including price undertakings, may be subject, under the new basic legislation, to 5 types of review during their lifetime : • Article 11 (2) provides for the expiry of anti-dumping measures after five years unless an expiry review demonstrates that they should be maintained in their original form ; • Article 11(3) provides for the interim review of measures during their validity period on the initiative of the Commission, at the request of a Member State or, at least one year after the imposition of the definitive measure, following a request from an interested party ; • Article 11(4) allows for a review to be carried out for the purpose of determining individual margins of dumping for new exporters in the exporting country subject to measures who have not exported the product during the investigation period and who can fulfill certain other criteria ("newcomer review"), • Article 12 provides that an investigation may be reopened, where the Community industry submits sufficient information showing that measures have led to no movement, or insufficient movement, in resale prices in the Community, to examine whether the measure has had an effect on those prices ("absorption review") ; • Article 13 provides for the reopening of an investigation where sufficient information is submitted to show that circumvention of measures is taking place, that the remedial effects of the duty are being undermined, and that there is evidence of dumping in relation to the normal values previously established. 35 Circumvention is defined as a change in the pattern of trade between third countries and the Community which stems from a practice, process or work for which there is insufficient due cause or economic justification, other than the imposition of the duty. The above-mentioned reviews continue to represent a major part of the work of the Commission's anti-dumping unit. In the period from 1991 to 1995, as well as in the single year 1995, review investigations represented over 40% of all investigations opened. Between 1991 and 1995, a total of 108 review investigations were initiated, 35 of which were "sunset" or expiry reviews, 60 of which were interim reviews (including 14 "newcomer" reviews), 4 of which were "absorption" reviews, and 9 under article 13 of the new basic regulation concerning circumvention. In about half of the cases initiated under the "sunset" provisions, the measures were allowed to expire following the review, whilst for the other half, measures were continued, mainly in amended form. In this respect, it should be noted under the provisions for expiry review contained in the new regulation, measures may either be maintained or repealed, but not amended. In 1995, a total of 26 reviews were initiated. Of these, 10 were interim reviews (including one "newcomer" review), 7 were expiry reviews and 9 were opened the review the new provisions on circumvention. Details of according investigations and of the results of review investigations concluded in 1995 can be found in Annexes G, H and J-M, whilst Table 2 provides statistical information, for the years 1991-1995. to 7. 1. 1. EXPIRY REVIEWS Since the "sunset", or expiry, provision of the basic legislation came into force in 1985 (art. 15 of the previous basic regulation, art. 11(2) of the current regulation), a total of 251 measures have been allowed to expire automatically. In 1995, 11 measures were allowed to expire automatically under article 11(2), and one measure was, in addition, allowed to expire following a "sunset"" review. In two further cases, measures were continued in an amended form. The references for all these measures are set out in Annexes H, L and P. By way of example, a summary of one important expiry review investigation is Riven below. o i) Plain paper photocopiers from Japan In October 1995, the Council decided to maintain the definitive anti-dumping duty on imports of plain paper photocopiers (PPCs) originating in Japan further to a review of those measures initiated in August 1992. The review found that the existing anti-dumping duty had been effective in significantly reducing the volume of imports of PPCs originating in Japan. The 36 TABLE 2 Reviews of Arti: dumping and anti-subsidy investigations during the period 1 January 1991 - 31 December 1995 1991 1992 1993 1994 1995 Reviews in progress at the beginning of the period Reviews opened during the period Reviews in progress during the period Investigations concluded by : - imposition of definitive duty in lieu of price undertaking - amendment of definitive duty - suspension of definitive duty - acceptance of price undertaking in lieu of definitive duty - amendment of price undertaking - repeal or expiry of definitive duty - repeal or expiry of price undertaking - no change of the measures in force Total reviews terminated during the period Reviews in progress at the end of the period Provisional duties imposed during the reviews Duties imposed as a result of violation of undertaking Measures suspended without review 21 16 37 1 3 - - 5 4 2 - 15 22 - 21 27 48 1 11 - - 1 5 - - 18 30 - 30 22 52 1 17 - 1 1 7 1 2 30 22 2 20 17 37 1 10 - - - 2 - - 13 24 2 24 26 50 - 6 - - - 7 1 2 16 34 4 4 3 remaining import volumes, however, still represented 26 percent in volume. Those imports were substantially dumped and sold at prices in the Community which significantly undercut those of the Community industry for comparable models. Furthermore, the dumped imports had become particularly injurious in that they consisted, to a much larger degree than before, of large PPCs which used to be sold mainly and profitably by the Community industry. The degree of undercutting on large PPCs was found to be twice that of small PPCs. As a result, the Community industry lost a large part of its market share of large PPCs to the dumped imports from Japan and profitability declined considerably. On the whole, in was found that the Community industry could not be said to be in a better position than at the time of the original investigation, when the Council determined that material injury existed. The Council thus decided to maintain the existing anti-dumping duty at its rates already in force (which vary between 7. 2 percent and 20 percent) for a further period of two years (taking into account the exceptionally long duration of the review procedure), and to extend the product scope of the duty to include PPCs capable of operating at a speed of more than 75 copies per minute of A4 size paper. The maintenance of measures at their existing level and their extension to PPCs over 75 copies per minute was deemed necessary, but also sufficient, to counteract the injurious effects of dumping, especially on large PPCs. The limitation of the new measures to two years instead of the usual five years was considered justified by the exceptional length of the review investigation during which the existing duty had remained in force. 7. 1. 2. INTERIM REVIEWS Since 1991, 61 reviews have been initiated under the provisions for interim reviews (art. 14 of the previous basic regulation, art. 11(3) of the current regulation). Following review, 23 measures were repealed and 43 were allowed to continue, mainly in amended form. In 1995, 9 reviews were initiated under article 11(3). During 1995, and subsequent to review investigations, 7 measures were repealed and 4 allowed to continue in amended form. Details of these reviews can be found in Annexes H, I, L, M, and N. 7. 1. 3. "NEWCOMER" REVIEWS The principle of granting reviews to new exporters is enshrined in article 11(4) of the new basic regulation. Such reviews had also been carried out in the past for the benefit of exporters which are subject to residual duties but which were not investigated in the original investigation because they had not yet exported to the Community. New exporters need to provide sufficient evidence that they have no links with any party involved in the original investigation, and that they have exported to the Community since the investigation period, or have an irrevocable contractual obligation to do so. When a review for a new exporter is initiated, 37 the duties are suspended for the duration of the investigation, whilst imports from that company are made subject to registration. Since the Commission carried out the first review of this type in 1990, 15 investigations have been initiated, one of which was in 1995. Also in 1995, one measure was allowed to remain in place unamended as a result of a newcomer review. 7. 1 A "ABSORPTION" REVIEWS The possibility of "absorption" reviews, which deal with situations where the exporters directly or indirectly bear the cost of the duty and thereby increase the dumping margin, was incorporated into the basic legislation of 1988 under article 13(11), and enshrined in article 12 of the 1994 basic legislation. Since 1988, six such reviews have been initiated, though none was initiated in 1995, Two "absorption" review investigations were terminated in 1995, where additional duties were imposed in one case (electronic weighing scales from Singapore) and no further action was taken in the other (electronic weighing scales from Japan). References can be found in Annexes I and L. 7. 1. 5. "CIRCUMVENTION" REVIEWS in circumstances where The possibility of investigations being re-opened evidence is brought that anti-dumping measures are being circumvented was introduced by article 13 of the new basic regulation. In 1995, investigations were opened with regard to 9 countries where it was alleged that practices intended to circumvent anti-dumping measures was taking place. These investigations are listed in Annex H. 8. SUSPENSION OF MEASURES Article 14(4) of the new basic regulation provides, for the first time, for the temporary suspension of measures in cases where market conditions have temporarily changed to an extent that injury would be unlikely to resume as a result of the suspension. Measures may be reinstated if the reason for the suspension is no longer applicable. In 1995, this article was applied for the first time, and measures were suspended in three cases. Details are given in Annex 0. 38 9. MONITORING OF UNDERTAKINGS Undertakings are accepted by the Commission where it is found that such a measure constitutes an appropriate solution, in particular eliminates the effect of injurious dumping, and where it can be effectively monitored. In line with the Declaration of the Essen Summit of November 1994 regarding the Union's relations with Eastern Europe, the possibility of concluding a anti-dumping investigation by accepting undertakings instead of imposing duties has to be examined in all cases involving countries of Central and Eastern Europe. Undertakings also constitute the primary solution in regional cases. Except for the latter, it is the practice of the Commission and Council to combine the acceptance of undertakings with the imposition of definitive residual duties. Most undertakings accepted by the Commission take the form of price undertakings, but some quantitative undertakings are also in force at the present time. Given that the respect of undertakings is not controlled by the customs authorities, effective monitoring by the Commission is of particular importance. The monitoring of undertakings begins with the reports submitted by the companies concerned to the Commission's services. The frequency of these reports varies between one and four per year depending on the terms of the undertaking. These reports are then checked against the undertaking itself and against the import statistics published by EUROSTAT. Further information may be requested if necessary. Regular inspections are made at the premises of the companies concerned to ensure compliance with the terms of the undertaking. During these visits, the Commission's services have wide powers to inspect the company's accounts, invoices and any other relevant information. If the reports fail to be submitted on time, if the terms of the undertaking are violated or if the company withdraws its undertaking, the Commission may, in accordance with Article 8 of the Basic Regulation, impose duties on the product after having given interested parties an opportunity to comment. In 1995, undertakings were accepted from one or more companies in the framework of several anti-dumping investigations. Four definitive duties were imposed in 1995 following the withdrawal of an undertaking by the exporters. These measures concerned imports of tungsten ores and concentrates, tungstic oxide and acid, and tungsten carbide and fused tungsten carbide originating in the P. R. China, and artificial corundum originating in Russia. Details of these measures are given in Annex J. 10. REFUNDS A refund of anti-dumping duties paid is granted in individual cases where the importer brings evidence to the effect that those duties were, in fact, higher than the dumping margin established in respect of the goods concerned. 39 In 1995, one decision was rendered with regard to requests for refund^. This decision declared inadmissible a request for the refund of anti-dumping duties paid on imports of espadrilles originating in the P. R. China. This decision was motivated by the fact that insufficient information had been provided with regard to normal value and export prices in order to enable the Commission to calculate the actual dumping margin. Other refund requests were withdrawn during the course of the year. 11. COURT OF FIRST INSTANCE 11. 1. OVERVIEW A list of the anti-dumping and anti-subsidy cases before the Court of First Instance is given in Annex P. It shows the cases which were still pending at the beginning of 1995, in addition to the five new cases brought during the year. Judgements were rendered in five cases, summaries of which are given below. In addition, one case was removed from the register. 11. 2 NEW CASES The nine new cases brought during the year concerned : the annulment of duties imposed on the grounds that they create a monopoly position for the community producer7 the annulment of a decision not to grant refunds of anti-dumping duties paid, and challenging the Commission's inclusion of those duties as a cost8 ; the extent of the scope of the product subject to measures in relation to that which formed the basis of the injury determination9 ; a challenge to the amendment of anti-dumping duties in respect of one country and their repeal in respect of another10 ; a challenge to the initiation of proceedings1 ' ; and a challenge to the initiation of review proceedings12 ; the annulment of provisional duties13, the profit used for calculating impose anti-dumping measures15. threshold14 and, the failure injury the to At the end of 1995, 15 cases were still pending in front of the Court of First Instance. An appeal lodged by the Commission against a judgement of the Court of First Instance was also pending in front of the Court of Justice, as well as one lodged by Blackspur DIY against a judgement of the Court of First Instance. 6 OJ No L 229, 26. 9. 95. p. 10. 7 Case T - 2/95, OJ C54, 04. 03. 95 Case T- 78/95, OJ C 119, 13. 05. 95 Case T - 97/95, OJ C 159, 24. 06. 95 Case T - 121/95, OJ C 189, 22. 07. 95 Case T-l34/95, OJ C 229, 02. 09. 95 Case T-192/95, OJ C 351, 30. 12. 95 Case T - 208/95, OJ C 351, 30. 12. 95 14 Case T-210/95, OJC31,03. 02. 96 15 Case T - 212/95, OJ C 64, 02. 03. 96 40 11. 3. JUDGEMENTS RENDERED The Court of First Instance delivered judgements in 1995 in seven cases : 11. 3. 1. Ball-bearings : judgement of 2 May 199516 - Cases T-163/94 and T-165/94, NTN Corporation and Koyo Seiko v. Council The applications in these cases were lodged by two companies manufacturing ball-bearings in Japan, and whose exports to the Community were subject to anti dumping duties of 3. 2% (NTN) and 5. 5% (Koyo), until, as a result of a review investigation, those duties were increased to 11. 6% and 13. 7% respectively. The applicants had put forward several pleas contesting the regulation extending and increasing the definitive duties as a result of the review, which had taken 41 months to complete, and during which the measures would otherwise ' have expired after the normal five-year period. These pleas concerned the abnormal length of time taken to carry out the review; the allegation that the Council had failed to establish injury to the Community industry and did not correctly determine the possible effects of the expiry of the existing measures; the fact that the measures were imposed in the absence of any finding of injury or threat of injury, and of any likelihood of recurrence of material injury; an alleged misuse of powers on the ground that the Council was aware that there was neither injury nor a threat of injury to the Community industry; and the level of anti-dumping duties imposed. With regard to the pleas on absence of injury or threat of injury, the Court noted that the Council's decision to modify the duties subsequent to review was based on the view that the dumped imports threatened to cause material injury to the Community industry, it being clear that the contested regulation contained no evidence of actual material injury, and that the removal of the existing anti dumping measures could lead to a recurrence of material injury. In the light of the above, the Court found that the Council's conclusion in the contested regulation that the dumped imports threatened to cause material injury to the Community ball-bearing industry was wrong in law and in fact. In this respect, the Court further found that the general result of the errors of fact made by the Council was to show trends contrary to the true evolution of the market. With regard to the plea that the review investigation was not completed within a reasonable time, the Court held that the one year period mentioned in the basic regulation had to be considered as a guideline rather than a mandatory time-limit. However, in view of the Community institutions' familiarity with the ball-bearings sector, going b k to 1976, and the fact that other investigations in respect of this sector had been completed in far less time, the Court, considered that the Council could not rely on its arguments relating to the complexity of the data to be collected and examination of the profitability of Community production to justify such a long period. 16 Cases T-163/94 andT 165/94, OJ C 159, 24. 06. 95 41 Consequently, the Court ruled that Article 1 of the contested regulation should be annulled in so far as it affected the applicants, and deemed it unnecessary to rule on their other pleas. 11. 3. 2. Outer rings of tapered roller bearings (cups) : judgement of 14 July 199517 - Case T-166/94, Koyo Seiko v. Council The applicant is a manufacturer of, inter alia, outer rings of tapered roller bearings (cups) in Japan, the import of which into the Community were subjected to a definitive anti-dumping duty in January 1993. Though the parties agreed that cups are a separate product which may be the subject of a separate anti-dumping proceeding, the applicant claimed that there was, in the present case, no competition between the cups of different producers since, in practice, it was impossible to assemble the cups of one producer with the other components of another producer's tapered roller bearings. Therefore, the import of dumped cups could not cause injury different from the injury caused by the import of dumped complete tapered roller bearings. In this respect, the Court held that the Community institutions were correct to concentrate their analysis on the cup as a separate product since, in addition to the technical distinction that exists between a cup and a complete TRB, the cups were sold and invoiced separately from the other components of the TRB. The Court further held that the existence of competition between cups from different producers did not merely depend upon their degree of interchangeability but that, since the product as a whole could be replaced by another, any advantage derived from one of the components of that product was likely to influence the consumer's choice. By the same token, undercutting the price of the cup was indeed likely to injure the Community producers of cups. The applicant further contested the Community institutions' right to limit their investigation into injury to only one part of the Community market though, as in this case, the parties had agreed that the French, German and United Kingdom producers represented a major proportion - 80% - of Community production. The Court held that the institutions' practice of taking only a representative part of the Community market in order to investigate the impact of dumped imports the unity of that market, provided that the did not infringe the principle of representative nature of the sample was sufficiently demonstrated. The Spanish and Italian markets, which were closed to imports as a result of national protective measures, were considered to be atypical in comparison with the Community market for cups as a whole. The Court therefore held that the institutions were right in regarding the sample taken to be representative of the Community market as a whole, both as regards price differences and as regards sales and market shares. 17 Case T-166/94, OJ C 268, 14. 10. 95 42 insufficiently The applicant had further complained that the Council had investigated whether or not imports of cups from third countries other than Japan might have contributed to the injury caused to the Community industry. Although all parties had recognized that the term "small quantities" used in the regulation imposing provisional duties, and referring to imports of cups from third countries other than Japan, was incorrect, the Court considered that the content of the provisional regulation as a whole had to be interpreted by reference to the entire reasoning adopted by the institutions in order to establish whether other reasons likely to have affected the injury found were investigated, and whether such factors had been taken into account. In this respect, the Court noted that the Community institutions at least investigated whether the import of cups from third countries other than Japan might have contributed to the injury suffered by the Community industry. It further noted that the applicant had never disputed that the Community institutions had correctly determined the injury in terms of the profitability of the Community industry, in spite of its claims that manifest errors of appraisal were committed. Consequently, since the injury was determined in terms of the Community producers' profitability, it was not unreasonable for the Community institutions to consider that the import of cups originating from related companies could not have had an effect on the profitability of the Community producers. Indeed, the aim of any producer being to increase the profitability of its business, the decision to import cups from related companies either in order to sell them directly and separately on the Community market, or in order to incorporate them into complete TRBs with the objective of reducing the cost price and thus increasing profitability, could not have resulted in a loss in profits and could not therefore have constituted a cause of injury. The Court therefore held that the Community institutions had correctly considered that the import of cups from third countries other than Japan could not have affected the profitability of the Community industry, and did not therefore have to be taken into account in order to determine the injury caused by the dumped Japanese imports. The application was dismissed. 11. 3. 3. Electronic weighing scales : judgement of 14 September 199518 - Case T-171/94, Descom Scales Manufacturing Co. Ltd. v. Council The applicant is a producer of electronic weighing scales in S. Korea, being jointly owned by Dailim Scales of Seoul, S. Korea and Ishida Scales, Kyoto, Japan. The product concerned, on which an anti-dumping duty of 26. 7% was imposed in October 1993, is an electronic weighing scale for use in the retail trade, manufactured by Descom, and marketed in Korea by Dailim and in the rest of the world by Ishida. Ishida Europe Ltd. , a wholly-owned subsidiary of Ishida 18 Case T-171/94, OJ C 286, 28. 10. 95 43 Japan, marketed the scales in Europe via three independent buyer/distributors, and invoiced the latter via Descom and Ishida Japan. The applicant challenged the Commission and Council's finding that the export price of its product was unreliable because Ishida Europe incurred selling expenses for the product which were normally borne by an importer. The Community institutions had constructed the export price on the basis of the price invoices to the three importers, from which were deducted the average general expenses of Ishida Europe and a reasonable profit. The applicant argued that none of the conditions for constructing the export price given in the basic regulation had been met. The Court noted that Ishida Europe, Ishida Japan and Descom were, indeed connected undertakings, that the scales produced by Descom were sold through the intermediary of Ishida Europe, which also handled customers' orders, and that Ishida Europe was established in the Community, the formalities for exporting the products from Japan being carried out by Descom and not by Ishida Europe. The Court further noted that the unit price for the product paid by one of the three independent buyers to Ishida Europe did not correspond to the price invoiced to the latter by Ishida Japan. The Court therefore held that, in the circumstances mentioned above, and bearing in mind the association between Ishida Europe and Descom, the price paid by the three independent buyers could not be used as the export price. As to the applicant's claim that their rights of defence were infringed, in that the Commission failed at the time the facts were verified to inform the applicant of its decision to reject its claim for adjustments to salesmen's salaries, and failed to provide a written note of the verification made, the Court held that the basic regulation did riot lay down any obligation to draw up a report after each verification in the course of an investigation. The Court further noted that the regulation provides that exporters and importers may request to be informed of the essential facts and considerations on which the recommended measures are based, and that the Commission may give that information either orally or in writing as it considers appropriate. The application was therefore dismissed. 11. 3. 4 Paint brushes : judgements of 18 September 199519 - Case T-167/94, Detlef Nolle v. Council and Commission - Case T-168/94, Blackspur DIY Ltd. and others v. Council and Commission The applicants are importers into Germany and the U. K. of paint, distemper, varnish and similar brushes originating in the People's Republic of China, which had been subject to anti-dumping duties in March 1989. Following the judgement of the Court of Justice (Case C-16/90, see 10th Annual Report, section 6. 2. 4. ) which declared invalid the regulation imposing definitive 19 Cases T-167/94 and 168/94, OJ C 286, 28. 10. 95 44 anti-dumping duties and collecting the provisional duties, the applicants lodged claims for compensation for the damage allegedly incurred by reason of the adoption of that regulation. The Court dismissed the applications for compensation, and ordered applicants to pay the costs. Blackspur DIY subsequently lodged an appeal. the 11. 3. 5. Potassium chloride (potash) : judgement of 28 September 199520 - Case T-164/94, Ferchimex S. A. v. Council Ferchimex S. A. , the applicant, is an official importer of potash from Russia and Belarus into the Community, and was involved, in that capacity, in the anti dumping proceeding which resulted in the imposition of definitive duties on imports into the Community of potassium chloride originating in Belarus, Russia and Ukraine. The applicant argued that normal value had been wrongly determined, that the assessment of injury was illegal since no account had been taken of the role played by the complainants, and that the Commission failed to notify the authorities in Russia, Belarus and Ukraine of the proceeding. With regard to the first plea, the Court held that the determination of normal value fell within the wide discretion enjoyed by the institutions in analysing complex economic situations. In view of the fact that Canada had, in this case, to be regarded as an appropriate reference country, and of the efforts made by the Commission to obtain information from sources other than a Canadian producer with links to Community producers, the Court concluded that the Commission had had no alternative but to use information emanating from that company. It was also considered reasonable for this information to have been used in conjunction with information on prices on the U. S. market in view of the fact that the Canadian market had been found to be too small to be representative. The Court also held that no provision in the basic regulation obliged the Commission, on opening the proceeding, to inform the parties of the method by which normal value was to be calculated. With regard to the plea that the assessment of injury was illegal since no account was taken of the role played by the complainants, the Court considered that the Council had not exceeded the limits of the discretion conferred on the institutions by deciding not to exclude the complainants who had imported from the definition of Community industry in view of the small proportion represented by those imports. As far as concerned the plea that the Commission had failed to notify the authorities in Russia, Belarus and Ukraine of the anti-dumping proceeding, the Court held that nothing in the basic regulation, nor any general principle, obliged 20 Case T-164/94, OJ C 315, 25. 11. 95 45 the Commission to repeat a notification made to a state to any states which may succeed it. Indeed, in assuming the rights and obligations of the state which they succeed, those states had to take anti-dumping proceedings as they found them. In view of the above, the Court dismissed the action. 12. ANTI-SUBSIDY INVESTIGATIONS OF THIRD COUNTRIES CONCERNING IMPORTS FROM E. U. MEMBER STATES 12. 1. U. S. A. 12. 1. 1. Pasta On 1 June 1995, the US initiated an anti-dumping and CVD investigation concerning imports of pasta from Italy. The subsidies alleged with regard to Italy are Community export refunds and structural funds, and Italian Government incentives, mostly concerning the Mezzogiorno region. On 26 June 1995, the ITC made a positive preliminary injury finding. On 10 October 1995, the DOC imposed provisional countervailing duties of up 10. 67% on imports of pasta from Italy. For most exporters, the duties do not exceed 4%. The DOC carried out verification visits to the Commission, the Government of Italy and the exporters between 26 October and 10 November 1995. There were also parallel anti-dumping investigations concerning Italy, in which preliminary findings were due on 15 December 1995. The Commission has held several rounds of consultations with the US under Article 13 of the Subsidies Agreement. It plans to make a further submission on the non-actionability of regional schemes and on injury, and will hold further consultations with the US before the final decision is taken by the DOC in early 1996. 12. 1. 2 Steel In October 1995, the DOC completed the administrative review in the CVD case concerning lead and bismuth steel products from the UK. The duties were assessed at between 2. 68 and 20. 33%. The DOC also imposed definitive countervailing duties on imports of seamless pipes and oil country tubular goods from Italy. 46 12. 2. Argentina 12. 2. 1 Canned Peaches On 31 January 1995, Argentina initiated a CVD case concerning canned peaches from the EU. The Commission prepared a submission on behalf of the Community with regard to the subsidy and injury aspects of the case. It emphasised in particular the decline in exports to Argentina in 1994 and the consequent lack of injury caused by EC exports. Argentina has now terminated its preliminary investigation and is due to make a finding shortly with regard to this case. The Community's final submission was sent on 5 December 1995. 12. 2. 2. Olive oil On 22 September 1995, Argentina investigation concerning olive oil from the EU without measures. terminated the countervailing duty 12. 3 Mexico 12. 3. 1. Beef On 3 June 1994, Mexico announced the imposition of a definitive countervailing duty of 45. 74% on imports of frozen beef from the EC. Following the intervention of the Commission, a review request was submitted in November 1995, on the basis that export subsidies have now been eliminated and imports have been negligible over the past year. Mexico will decide in the near future whether or not to initiate a review. 12. 3. 2. Pork On 22 November 1994, Mexico opened an anti-subsidy investigation concerning imports of certain pork products from Denmark. The market share of Danish imports was only 1% and no evidence had been presented concerning the situation of the domestic industry. Nevertheless, Mexico imposed a provisional countervailing duty on 12 June 1995, having rejected all the information supplied by the Commission on the grounds that the Community had no legal basis to act on Denmark's behalf. The Commission protested strongly to Mexico at this serious procedural violation and at the lack of evidence to justify provisional measures. Following consultations, Mexico has now agreed (subject to a domestic legal challenge from the petitioner) to recognize the authority of the Community in these matters and to consider the information presented by the Commission. The Commission has argued against imposing definitive measures, since there seems 47 to be no threat of injury and the export refund of the main pork products has been abolished. Mexico should make a decision by the end of the year, although this timetable may be delayed by domestic legal problems. 12. 4 Canada 12. 4. 1. Sugar On 17 March 1995, Canada concerning imports of refined sugar from the EU. initiated a countervailing duty investigation On 7 July 1995, Canada imposed a provisional countervailing duty on imports from the EU. The Commission held consultations with Canada in Geneva on 25 September 1995, emphasising the lack of injury and the over-estimation of the subsidy amount, and written submissions were made to both Revenue Canada and the CITT. On 5 October 1995, Revenue Canada confirmed its definitive subsidy finding against the EU, setting the countervailing duty at 50. 79 ECU per 100 kg (about 138% ad valorem). On 6 November 1995, the CITT found that imports from the EU were threatening injury to. the domestic industry. In a parallel anti-dumping case, Canada made a definitive dumping finding against UK, Germany, Netherlands and Denmark. As the level of the countervailing duty was higher than the dumping, no extra dumping duty will be collected. Consultations under the Subsidies Agreement were held with Canada on 14 December 1995, in order to clarify the issues of the amount of subsidy and the threat of injury finding, neither of which seem satisfactory. In particular, imports from the Community account for only about 1 % of the Canadian market and have declined sharply in recent years. 12. 4. 2. Pasta On 30 August 1995, Canada initiated an anti-dumping and countervailing duty case concerning pasta from Italy. The Commission, assisted by the Italian authorities, replied to Revenue Canada's questionnaire and verification took place in October 1995. At that stage, the countervailing investigation concerned only export refunds, and the Commission had already pointed out in consultations that these had not been granted since June 1995, and would be unlikely to be granted in the foreseeable future. investigation, and on 20 Canada, however, maintained November 1995 extended it (at the petitioner's request) to include all the Italian its countervailing 43 national programmes examined in the US case. The Commission requested Canada the exclusion of a number of programmes found by the US to be either non- countervailable or not used, but Canada refused this request. The Commission therefore asked for immediate consultations in Geneva under the Subsidies Agreement in view of the lack of pre-consultations and the apparent lack of sufficient evidence for this new investigation. 12. 4. 3. Canned ham and luncheon meat On 21 March 1995, Canada decided, following an expiry review, to maintain the countervailing measures on canned ham from Denmark and the Netherlands and luncheon meat from the EU. 12. 5. Israel 12. 5. 1. Pasta and baked goods On 26 July 1995, the Commission was notified by Israel of countervailing duty complaints concerning imports of pasta from Italy and baked goods from the EU. Consultations on this matter were held with the Ministry of Industry and Trade in Jerusalem of 31 August 1995. The investigation concerning baked goods (countervailing only) was opened on 14 September 1995 and the Commission has made a submission on this matter, expressing concern about the calculation of the subsidy amount and the standing of the complainant. The lack of evidence contained in the complaint was also raised. With regard to pasta, the investigation (CVD and anti-dumping) was opened on 1 October 1995. The Commission made a full submission by 15 December 1995. 12. 6 New Zealand 12. 6. 1. Spaghetti and baked beans On 2 and 9 October 1995, New Zealand notified the Commission of the receipt of two countervailing duty compaints concerning imports from Italy of spaghetti and baked beans in tomato sauce respectively, on the basis of CAP subsidies and regional aid to the south of Italy. Consultations on both cases under Article 13. 1 of the Subsidies Agreement were held in Geneva on 24 October 1995. At these consultations, the Commission pointed out that in both cases the Italian market share was only 1% and that many of the regie. 1 schemes were non-actionable. A decision on initiation is still awaited from New Zealand. 49 12. 7. Australia 12. 7. 1. Diesel-fuelled generators On 27 October 1995, Australia notified the Commission of a CVD complaint on imports of diesel fuelled generators from UK. The only exporter is in Northern Ireland, and the alleged subsidy is the Selective Financial Assistance scheme. The Commission, with help from the UK authorities, presented information to attempt to show that this is a non-actionable regional scheme under Article 8. 2(b). Australia, however, decided to initiate an investigation on 12 December 1995. 12. 7. 2. Canned tomatoes On 18 October 1995, Australia initiated a review of the amount of subsidy in the countervailing case concerning canned tomatoes from Italy and Spain. The Commission submitted factual information in this regard. 12. 8 Bolivia In June 1995, following the Commission's intervention, Bolivia terminated the CVD case concerning wheat from Germany and Denmark without measures. 13. GATT ISSUES 13. 1 DISPUTE SETTLEMENT PROCEEDINGS 13. 1. 1 GATTAVTO panel proceedings requested by the Community i) Lead and bismuth steel bars This panel agreed with the Community, in October 1994, that countervailing duties imposed by the US on these products exported from France, Germany and the UK were not in conformity with the (then in force) 1979 Subsidies Code. The report has been discussed on at least two occasions by the Tokyo Round Committee on Subsidies and Countervailing Measures, but the US has refused to agree to its adoption by the Committee. This Committee remains in operation throughout 1996 for the purpose of pending dispute settlement proceedings, and the report may still be discussed before it. ii) Flat-rolled steel products The Community had originally requested the establishment of this panel to deal with imposition of countervailing duties by the US on these products exported 50 from the Community. The proceedings were subsequently suspended in December 1994 and remain so. 13. 1. 2. GATTAVTO panel proceedings requested by third countries against the Community i) Audio-cassettes The establishment of this panel had been requested by Japan, which alleged that anti-dumping duties imposed by the Community on imports of audio-cassettes from Japan were not in conformity with the (then in force) 1979 Anti-Dumping Code. The panel issued a report in April 1995. On most issues, it found Japan's allegations to be unfounded; however, it criticised the Community on one issue concerning the calculation of the dumping margin. The report has been examined once by the GATT Anti-Dumping Committee, which has not yet concluded on the contents of the report. ii) Cotton yarn The establishment of this panel had been requested by Brazil, which alleged that anti-dumping duties imposed by the Community on imports of cotton yarn from Brazil were not in conformity with the (then in force) 1979 Anti-Dumping Code. The panel issued a report in July 1995. It found the allegations by Brazil to be unfounded in their entirety, and confirmed that the Community's actions were in conformity with international rules. Brazil agreed to the adoption of the report by the Tokyo Round Anti-Dumping Committee in October 1995. 14. PROPOSAL FOR A NEW BASIC REGULATION Following the publication of the new basic regulation (Council Reg. no. (EC) 3283/94) on 31 December 1994, it came to the Commission and Council's attention that a number of modifications were required in the texts which had been published in some of the Community languages. These modifications were of a purely technical nature, and did not entail changes in the substance of the text which had, of course, been agreed during and subsequent to the Uruguay Round negotiations. In order to amend the various linguistic versions of the text, and to produce versions in each of the Community languages which are considered to be satisfactory, the most appropriate solution appeared to be the adoption of a new consolidated text (also incorporating two substantive amendments made earlier in 1995 to the current basic regulation), which would replace regulation 3283/94. The European Parliament was consulted on, and approved, the final revised text. Publication of the amended basic regulation took place on 15. PERSONNEL AND ADMINISTRATION Thanks to the support of the European Parliament, the Commission was able to obtain the projected reinforcement of staff for 1995. Of the 59 new posts allocated to the anti dumping/anti-subsidy services, 4 were foreseen for the translation services and 55 for DG 51 I. The anti-dumping/anti-subsidy services of DG I therefore numbered 199 members of staff at the end of 1995, including external personnel. The extensive recruitment campaign started in 1994 by DG I was intensified in 1995. All of the candidates who had been successful in open competitions and who appeared to possess the necessary qualifications and experience, a total of 400 people, were interviewed by the anti-dumping/anti-subsidy services during the course of 1995, and selections made throughout the year. Almost all of the posts allocated in 1995 were filled during that budgetary year, and the remainder will be filled at the beginning of 1996. Of those recruited during 1995, 25 have already joined the anti-dumping/anti-subsidy services, swelling the ranks of the new officials recruited in 1994. At the end of the year, the European Parliament decided on the second and final block of posts destined for the anti-dumping/anti-subsidy services. Of the 59 new posts granted for the budgetary year 1996, 54 will be for DG I. This final block of posts will make up the full contingent of staff for the anti-dumping/anti-subsidy services, in accordance with the increased staffing requirements arising from the decision to introduce legal deadlines in respect of anti-dumping and anti-subsidy proceedings (Council Regs. (EC)Nos. 521/94 and 522/94). In June 1995, the Commission approved the new organigramme of the anti-dumping/anti- subsidy services within DG I. This formalized the separation of proceedings into dumping investigations on the one hand, and injury investigations on the other. Since this decision was taken, DG I's anti-dumping/anti-subsidy services have been divided into two distinct directorates, each one being responsible for one of the two aspects of the proceedings. In view of the amendments and nominations required to render the new structure effective, it became fully operational only in December 1995. 52 LIST OF ANNEXES A. Anti-dumping and anti-subsidy investigations initiated during the period 1 January to 31 December 1995 B. Provisional duties imposed during the anti-dumping and anti-subsidy investigations during the period 1 January - 31 December 1995 C. Investigations concluded by the imposition of definitive duties during the period 1 January - 31 December 1995 D. Investigations concluded on a finding of no injury during the period 1 January - 31 December 1995 E. Investigations concluded for other reasons during the period 1 January - 31 December 1995 F. Investigations initiated by country of export during the period 1 January 1991 - 31 December 1995 G. Investigations initiated by product sector during the period 1 January 1991 to 31 December 1995 H. Reviews of anti-dumping and anti-subsidy measures opened during the period 1 January - 31 December 1995 I. Review of anti-dumping and anti-subsidy measures concluded by the amendment of definitive duties during the period 1 January - 31 December 1995 J. Review of anti-dumping and anti-subsidy measures concluded by the imposition of definitive duties in lieu of price undertakings during the period 1 January - 31 December. 1995 K. Provisional duties imposed during review investigations during the period 1 January - 31 December 1995 L. Review investigations resulting in no change in the measures in force during the period 1 January -31 December 1995 M. Reviews of anti-dumping and anti-subsidy measures concluded by the repeal of definitive duties during the period 1 January - 31 December 1995 N. Reviews of anti-dumping and anti-subsidy measures concluded by the repeal of undertakings during the period 1 January - 31 December 1995 O. Anti-dumping measures suspended during the period 1 January - 31 December 1995 P. Anti-dumping and anti-subsidy measures which expired during the period 1 January - 31 December 1995 Q. Anti-dumping and anti-subsidy cases before the Court of First Instance in 1995 R. Anti-dumping and anti-subsidy measures in force as at 31 December 1995 <5b ANNEXA ANTI-DUMPING AND ANTI-SUBSIDY INVESTIGATIONS INITIATED DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Country of origin OJ reference Footwear (textile) P. R. China C45, 22. 02. 95 Footwear (textile) Indonesia C45, 22. 02. 95 Footwear (leather) P. R. China C45, 22. 02. 95 Footwear (leather) Indonesia C45, 22. 02. 95 Footwear (leather) Thailand C45, 22. 02. 95 Disposable lighters Philippines C67, 18. 03. 95 Disposable lighters Microdisks (3. 5") Microdisks (3. 5") Microdisks (3. 5") Microdisks (3. 5") Polyethylene/poly propylene sacks Polyethylene/poly propylene sacks Polyethylene/poly propylene sacks Furfuryl alcohol Furfuryl alcohol Polyester yarn Video cassette recorders Video Cassette recorders Mexico Canada Indonesia Macao Thailand India Indonesia Thailand C67, 18. 03. 95 C84, 06. 04. 95 C84, 06. 04. 95 C84, 06. 04. 95 C84, 06. 04. 95 C92, 13. 04. 95 C92, 13. 04. 95 C92, 13. 04. 95 P. R. China C95, 19. 04. 95 Thailand Malaysia S. Korea C95, 19. 04. 95 C95, 19. 04. 95 C104, 25. 04. 95 Singapore C104, 25. 04. 95 5^ ANNEX A (continued) ANTI-DUMPING AND ANTI-SUBSIDY INVESTIGATIONS INITIATED DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Key components of video cassette recorders Hydraulic excavators (> 6 tonnes) Unwrought unalloyed zinc Unwrought unalloyed zinc Unwrought unalloyed zinc Unwrought unalloyed zinc Unwrought unalloyed zinc Pet video film Wooden pallets Country of origin OJ reference S. Korea C104, 25. 04. 95 S. Korea CI 17, 12. 05. 95 Kazakhstan C143, 09. 06. 95 Poland C143, 09. 06. 95 Russia C143, 09. 06. 95 Ukraine C143, 09. 06. 95 Uzbekistan C143, 09. 06. 95 S. Korea C147, 14. 06. 95 Poland C178, 13. 07. 95 Iron or steel sections Czech Republic C180, 14. 07. 95 Iron or steel sections Glyphosate Ring binder mechanisms Ring binder mechanisms Hungary P. R. China P. R. China Malaysia C180, 14. 07. 95 C266, 13. 10. 95 C 284, 28. 10. 95 C 284, 28. 10. 95 55 ANNEXB PROVISIONAL DUTIES IMPOSED DURING ANTI-DUMPING AND ANTI-SUBSIDY INVESTIGATIONS DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Disodium carbonate (soda ash) Country of origin U. S. A. Microwave ovens P. R. China Microwave ovens S. Korea Microwave ovens Thailand Microwave ovens Malaysia Persulphates P. R. China Refractory chamottes P. R. China Powdered activated P. R. China carbon Butt-welded tube or pipe fittings PR. China Butt-welded tube or pipe fittings Croatia Regulation OJ reference L83, 13. 04. 95 LI56, 07. 07. 95 L156,07. 07. 95 L156,07. 07. 95 LI56,07. 07. 95 L169, 19. 07. 95 L179,29. 07. 95 L192, 15. 08. 95 L234, 03. 10. 95 L234,03. 10. 95 Com. Reg. (EC) No. 823/95 10. 04. 95 Com. Reg. (EC) No. 1645/95 05. 07. 95 Com. Reg. (EC) No. 1645/95 05. 07. 95 Com. Reg. (EC) No. 1645/95 05. 07. 95 Com. Reg. (EC) No. 1645/95 05. 07. 95 Com. Reg. (EC) No. '1748/95 17. 07. 95 Com. Reg. (EC) No. 1878/95 28. 07. 95 Com. Reg. (EC) No. 1984/95 10. 08. 95 Com. Reg. (EC) No. 2318/95 27. 09. 95 Com. Reg. (EC) No. 2318/95 27. 09. 95 5t ANNEX B (continued) PROVISIONAL DUTIES IMPOSED DURING ANTI-DUMPING AND ANTI-SUBSIDY INVESTIGATIONS DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Butt-welded tube or pipe fittings Country of origin Thailand Coumarin P. R. China Bicycles Indonesia Bicycles Malaysia Bicycles Thailand Microdisks (3. 5") Malaysia Microdisks (3. 5") Mexico Microdisks (3. 5") U. S. A. Grain-oriented electrical Russia steel sheet Unwrought magnesium Russia Unwrought magnesium Ukraine Regulation OJ reference L234, 03. 10. 95 L239,07. 10. 95 L248, 14. 10. 95 L248, 14. 10. 95 L248, 14. 10. 95 L249, 17. 10. 95 L249, 17. 10. 95 L249, 17. 10. 95 L 252, 20. 10. 95 L 312, 23. 12. 95 L 312, 23. 12. 95 Com. Reg. (EC) No. 2318/95 27. 09. 95 Com. Reg. (EC) No. 2352/95 06. 10. 95 Com. Reg. (EC)No. 2414/95 13. 10. 95 Com. Reg. (EC)No. 2414/95 13. 10. 95 Com. Reg. (EC)No. 2414/95 13. 10. 95 Com. Reg. (EC)No. 2426/95 16. 10. 95 Com. Reg. (EC)No. 2426/95 16. 10. 95 Com. Reg. (EC)No. 2426/95 16. 10. 95 Com. Dec. 2450/95/ECSC 19. 10. 95 Com. Reg. (EC)No. 2997/95 20. 12. 95 Com. Reg. (EC)No. 2997/95 20. 12. 95 c& ANNEXC INVESTIGATIONS CONCLUDED BY THE IMPOSITION OF DEFINITIVE DUTIES DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Country of origin Regulation OJ reference Furfuraldehyde P. R. China Televisions (colour) Televisions (colour) Televisions (colour) Televisions (colour) Televisions (colour) Ammonium nitrate fertilizer Sodium carbonate (soda ash) Malaysia P. R. China S. Korea Singapore Thailand Russia U. S. A. Ferro-silico-manganese Brazil Council Reg. (EC) No. 95/95 16. 01. 95 Council Reg. (EC) No. 710/95 27. 03. 95 Council Reg. (EC) No. 710/95 27. 03. 95 Council Reg. (EC) No. 710/95 27. 03. 95 Council Reg. (EC) No. 710/95 27. 03. 95 Council Reg. (EC) No. 710/95 27. 03. 95 Council Reg. (EC) No. 2022/95 16. 08. 95 Council Reg. (EC) No. 2381/95 10. 10. 95 Council Reg. (EC)No. 2413/95 06. 10. 95 L15, 21. 01. 95 L73, 01. 04. 95 L73, 01. 04. 95 L73, 01. 04. 95 L73, 01. 04. 95 L73, 01. 04. 95 L198, 23. 08. 95 L244, 12. 10. 95 L248, 14. 10. 95 <ol ANNEX C (continued) INVESTIGATIONS CONCLUDED BY THE IMPOSITION OF DEFINITIVE DUTIES DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Country of origin Regulation OJ reference Ferro-silico-manganese Russia Ferro-silico-manganese S. Africa1 Ferro-silico-manganese Ukraine Peroxodisulphates P. R. China Council Reg. (EC)No. 2413/95 06. 10. 95 Council Reg. (EC)No. 2413/95 06. 10. 95 Council Reg. (EC)No. 2413/95 06. 10. 95 Council Reg. (EC)No. 2961/95 18. 12. 95 L248, 14. 10. 95 L248, 14. 10. 95 L248, 14. 10. 95 L308, 21. 12. 95 Includes the acceptance of certain undertakings 5e! ANNEX D INVESTIGATIONS CONCLUDED ON A FINDING OF NO INJURY DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Country of Decision origin OJ reference Ammonium nitrate fertilizer Lithuania Com. Dec. 95/344/EC 03. 08. 95 L198,23. 08. 95 Butt-welded tube or pipe fittings Slovakia Butt-welded tube or pipe fittings Taiwan Com. Reg. (EC) No. 2318/95 27. 09. 95 Com. Reg. (EC) No. 2318/95 27. 09. 95 L234, 03. 10. 95 L234, 03. 10. 95 Ferro-silico- manganese Georgia Com. Dec. 95/418/EC 26. 07. 95 L248, 14. 10. 95 ANNEXE INVESTIGATIONS CONCLUDED FOR OTHER REASONS DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Country of Decision origin OJ reference Televisions (colour) Turkey Com. Dec. 95/92/EC 20. 03. 95 L73, 01. 04. 95 Watch movements Malaysia Watch movements Thailand Com. Dec. 95/187/EC 31. 05. 95 Com. Dec. 95/187/EC 31. 05. 95 L121, 01. 06. 95 L121, 01. 06. 95- Parts for Japan disposable lighters Com. Dec. 95/406/EC 05. 10. 95 L239, 07. 10. 95 W ANNEX F INVESTIGATIONS INITIATED BY COUNTRY OF EXPORT DURING THE PERIOD 1 JANUARY 1991 - 31 DECEMBER 1995 Country of origin 1991 1992 1993 1994 1995 Belarus Brazil Bulgaria Canada China R. P. Croatia Czech Republic Egypt Georgia Hong Kong Hungary India Indonesia Japan Kazakhstan Korea S. Lithuania Macao Malaysia Mexico Pakistan Philippines Poland Romania Russia Singapore Slovakia South Africa Taiwan Thailand Tunisia Turkey Turkmenistan Ukraine USA USSR Uzbekistan Yugoslavia 20 39 21 43 33 & ANNEX G INVESTIGATIONS INITIATED BY PRODUCT SECTOR DURING THE PERIOD 1 JANUARY 1991 TO 31 DECEMBER 1995 Product 1991 1992 1993 1994 1995 Chemical and allied Textiles and allied Wood and paper Electronics Other mechanical engineering Iron and Steel (EEC & ECSC) Other metals Other 4 - 1 5 6 - - 10 - - 13 5 1 - 7 4 - 2 3 17 - 3 43 3 - 72 5 8 5 1 3 6 4 4 1 7 5 7 20 39 21 43 33 <. % ANNEX H REVIEWS OF ANTI-DUMPING AND ANTI-SUBSIDY MEASURES OPENED DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 S. Korea C105, 26. 04. 95 Japan S. Korea C181, 15. 07. 95 C181, 15. 07. 95 Silicon metal P. R. China C193, 27. 07. 95 Product Country of origin Disposable lighters Thailand Japan Japan Ball bearings >30mm Ball bearings (mini) Colour television receivers DRAMs DRAMs Potassium chloride Belarus Potassium chloride Russia Potassium chloride Ukraine P. R. China Colour television receivers Tungsten ores and concentrates OJ reference C67, 18. 03. 95 C71, 23. 03. 95 C71, 23. 03. 95 C201, 05. 08. 95 C201, 05. 08. 95 C201, 05. 08. 95 C203, 08. 08. 95 P. R. China C244, 21. 09. 95 Tungsten carbide and P. R. China C244, 21. 09. 95 fused tungsten carbide Tungstic oxide and acid P. R. China C244, 21. 09. 95 EPROMS Japan C262, 07. 10. 95 Polyethylene/polypropylene P. R. China C271, 17. 10. 95 sacks CH ANNEX H (continued) REVIEWS OF ANTI-DUMPING AND ANTI-SUBSIDY MEASURES OPENED DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Country of origin OJ reference Microdisks (3. 5") 2 Canada Microdisks (3. 5") 2 Hong Kong Microdisks (3. 5") 2 India Microdisks (3. 5") 2 Indonesia Microdisks (3. 5") 2 Macao L252, 20. 10. 95 L252, 20. 10. 95 L252, 20. 10. 95 L252, 20. 10. 95 L252, 20. 10. 95 Microdisks (3. 5") -'- Malaysia L252, 20. 10. 95 Microdisks (3. 5") 2 Philippines Microdisks (3. 5") 2 Singapore Microdisks (3. 5") 2 Thailand Synthetic fibres of polyester India L252, 20. 10. 95 L252, 20. 10. 95 L252, 20. 10. 95 L262, 01. 11. 95 2 Circumvention investigation Cc; ANNEX I REVIEWS OF ANTI-DUMPING AND ANTI-SUBSIDY MEASURES CONCLUDED BY THE AMENDMENT OF DEFINITIVE DUTIES DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Country of origin Urea Russia Polyester yarns Indonesia (man-made staple) Ball bearings^3) (mini) Thailand Ferro-silicon Brazil Photocopiers Japan Electronic weighing Singapore scales Document OJ reference Council Reg. (EC) No. 477/95 16. 01. 95 Council Reg. (EC) No. 1168/95 22. 05. 95 Council Reg. (EC) No. 1169/95 22. 05. 95 Council Reg. (EC) No. 1171/95 22. 05. 95 Council Reg. (EC) No. 2380/95 02. 10. 95 Council Reg. (EC)No. 2937/95 20. 12. 95 L49, 04. 03. 95 LI 18, 25. 05. 95 LI 18, 25. 05. 95 LI 18, 25. 05. 95 L244, 12. 10. 95 L307, 20. 12. 95 (3) Definitive countenailing duty on indirect imports. Includes acceptance of undertakings on direct imports from Thailand. See Commission Decision 95/180/EC, OJ C 118, 25. 05. 95. ANNEX J REVIEWS OF ANTI-DUMPING AND ANTI-SUBSIDY MEASURES CONCLUDED BY THE IMPOSITION OF DEFINITIVE DUTIES IN LIEU OF PRICE UNDERTAKINGS DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Country of Document OJ reference Tungsten ores <4> and concentrates P. R. China Tungstic oxide (4) and acid P. R. China Tungsten carbide and fused tungsten carbide (4) P. R. China Artificial (4) corundum Russia Council Reg. (EC) No. 610/95 20. 03. 95 Council Reg. (EC) No. 610/95 20. 03. 95 Council Reg. (EC) No. 610/95 20. 03. 95 Council Reg. (EC) No. 709/95 27. 03. 95 L64, 22. 03. 95 L64, 22. 03. 95 L64, 22. 03. 95 L73, 01. 04. 95 W Duty imposed as a result of withdrawal of undertaking. ANNEX K PROVISIONAL DUTIES IMPOSED DURING REVIEW INVESTIGATIONS DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Monosodium glutamate Country of origin Indonesia Monosodium glutamate S. Korea Monosodium glutamate Taiwan Monosodium glutamate Thailand Document OJ reference Com. Reg. (EC) No. 1754/95 18. 07. 95 Com. Reg. (EC) No. 1754/95 18. 07. 95 Com. Reg. (EC) No. 1754/95 18. 07. 95 Com. Reg. (EC) No. 1754/95 18. 07. 95 LI 70, 20. 07. 95 LI 70, 20. 07. 95 LI 70, 20. 07. 95 L170,20. 07. 95 ANNEXL REVIEW INVESTIGATIONS RESULTING IN NO CHANGE IN THE MEASURES IN FORCE DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Lighters (disposable) Country of origin P. R. China Regulation OJ reference Council Reg. (EC) No. 1006/95 03. 05. 95 L101, 04. 05. 95 Electronic weighing Japan scales Com. Dec. 95/478/EC L274, 17. 11. 95 14. 11. 95 & ANNEX M REVIEWS OF ANTI-DUMPING AND ANTI-SUBSIDY MEASURES CONCLUDED BY THE REPEAL OF DEFINITIVE DUTIES DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Country of origin Urea C. S. S. R. Aspartame Japan Aspartame U. S. A. Welded tubes of iron ex-Yugoslavia or non-alloy steel Welded tubes of iron Romania or non-alloy steel Welded tubes of iron Turkey or non-alloy steel Welded tubes of iron Venezuela or non-alloy steel Decision OJ reference Council Reg. (EC) No. 477/95 16. 01. 95 Council Reg. (EC) No. 1936/95 03. 08. 95 Council Reg. (EC) No. 1936/95 03. 08. 95 Council Reg. (EC)No. 2962/95 18. 12. 95 Council Reg. (EC)No. 2962/95 18. 12. 95 Council Reg. (EC)No. 2962/95 18. 12. 95 Council Reg. (EQNo. 2962/95 18. 12. 95 L49, 04. 03. 95 L186, 05. 08. 95 LI86, 05. 08. 95 L308, 21. 12. 95 L308, 21. 12. 95 L308, 21. 12. 95 L308, 21. 12. 95 ANNEX N REVIEWS OF ANTI-DUMPING AND ANTI-SUBSIDY MEASURES CONCLUDED BY THE REPEAL OF UNDERTAKINGS DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Country of Decision origin OJ reference Ammonium nitrate Russia fertilizer Com. Dec. 95/345/EC 03. 08. 95 L198, 23. 08. 95 ll ANNEXO ANTI-DUMPING MEASURES SUSPENDED DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Country of origin Decision DRAMs Japan DRAMs S. Korea EPROMs Japan Com. Dec. 95/197/EC 08. 06. 95 Com. Dec. 95/197/EC 08. 06. 95 Com. Dec. 95/272/EC 14. 07. 95 Publication L126, 09. 06. 95 LI26, 09. 06. 95 L165, 15. 07. 95 H ANNEXP ANTI-DUMPING AND ANTI-SUBSIDY MEASURES WHICH EXPIRED DURING THE PERIOD 1 JANUARY - 31 DECEMBER 1995 Product Country of origin Type of measure Potassium^6) permanganate Former Czechoslovakia Certain welded^7) tubes of iron or non-alloy steel Former Yugoslavia Duty Duty OJ reference^ L42, 16. 02. 90 L91, 06. 04. 90 Methenamine^ Bulgaria Undertakings L104, 24. 04. 90 Methenamine(8) Former Czechoslovakia Undertakings L104, 24. 04. 90 Methenamine(8) Poland Undertakings L104, 24. 04. 90 Methenamine(8) Romania Undertakings L104, 24. 04. 90 Certain photo albums^9) Certain photo albums(9) Ferroborort10) Oxalic acid^11) Ball bearings^12) (mini) S. Korea Undertakings L138, 31. 05. 90 Hong-Kong Undertakings L138, 31. 05. 90 Japan Brazil Duty L187, 19. 07. 90 Undertakings L184, 17. 07. 90 Thailand Duty L281, 12. 10. 90 (5) The OJ reference is to the imposition of the measure. <6> Notice of expiry was published in OJ C 40, 17. 02. 95 (7) Notice of expiry was published in OJ C 77, 29. 03. 95 (8> Notice of expiry was published in OJ C 100, 22. 04. 95 (9) Notice of expiry was published in OJ C 124, 20. 05. 95 <10> Notice of expiry was published in OJ C 176, 11. 07. 95 <n> Notice of expiry was published in OJ C 201, 05. 08. 95 (,2> Notice of expiry was published in OJ C 258, 03. 10. 95 ANNEX 0 ANTI-DUMPING AND ANTI-SUBSIDY CASES BEFORE THE EUROPEAN COURT OF FIRST INSTANCE IN 1995 CaseT 159/94 Ajinomoto Co. Inc. v. Council CaseT 160/94 The Nutrasweet Company v. Council CaseT 161/94 Sinochem Heilongjiang v. Council CaseT 162/94 NMB France Sari and Others v. Commission CaseT 163/94 NTN Corporation v. Council <13> CaseT 164/94 Ferchimex S. A. v. Council(14> CaseT 165/94 Koyo Seiko v. Council (13) CaseT 166/94 Koyo Seiko v. CounciK15> Case T 167/94 Detlef Nolle v. Council and Commission*16) CaseT 168/94 Blackspur DIY and others v. Council and Commission (i6) CaseT 170/94 Shanghai Bicycle Corporation Group v. Council CaseT 171/94 Descom Scales Manufacturing v. Council(17> Case T 172/94 Rima v. Council 18> CaseT 155/94 Climax Paper Converters Ltd v. Council Case T 224/94 Ferchimex S. A. v. Council CaseT 2/95 Industrie des Poudres Sphériques (IPS) v. Council CaseT 78/95 NMB France Sari, NMB Minebea GmbH, NMB (UK) Ltd, and NMB Italia Sri v. Commission Case T - 97/95 Sinochem National Chemicals Import and Export Corporation v. Council CaseT-121/95 European Fertilizer Manufacturers' Association v. Council Case C - 245/95 P Commission v. Court of First Instance*19* <13) Judgement rendered on 02. 05. 95, OJ C 87, 08. 04. 95 <34> Judgement rendered on 28. 09. 95, OJ C 315, 25. 11. 95 <15) Judgement rendered on 14. 07. 95, OJ C 268, 14. 10. 95 (16> Judgement rendered on 18. 09. 95, OJ C 286, 28. 10. 95 <17> Judgement rendered on 14. 09. 95, OJ C 286, 28. 10. 95 <18) Removed from register, OJ C 87, 08. 04. 95 (19> Appeal lodged with Court of Justice ANNEX O (continued) Case C - 362/95 P Blackspur v. Court of First Instance*19) Case T - 134/95 Dysan Magnetics and Others v. Commission Case T - 192/95 Hitachi and Others v. Commission Case T - 208/95 Miwon Co. Ltd. v. Commission CaseT-210/95 European Fertilizer Manufacturers Association (EFMA) v. Council CaseT -212/95 Association de Fabricantes de Cemento de Espana (Oficemen) v. Commission }s ANNEX R ANTI-DUMPING AND ANTI-SUBSIDY MEASURES IN FORCE AS AT 31st DECEMBER 1995 Product Origin Measure Regulation/Dec. Publication Ammonium nitrate Lithuania undertaking Com. Dec. 94/293/EC OJ L 129 (UKreg. ) 13. 04. 94 duties Council Reg. (EC)No. 2022/95 16. 08. 95 21. 05. 94,p. 24 OJ L 198 23. 08. 95,p. 1 undertakings Com. Dec. 91/512/EEC OJ-L 275 23. 7. 91 02. 10. 91,p. 27 fertilizer Russia Artificial corundum C. S. S. R. Hungary Poland Brazil Yugoslavia Russia Ukraine duties Council Reg. (EEC)No. 2552/93 13. 09. 93 Council Reg. (EC)No. 709/95 27. 03. 95 Council Reg. (EC)No. 2556/94 19. 10. 94 Council Reg. (EC)No. 709/95 27. 03. 95 OJ L 235 18. 09. 93,p. 1 OJ L 73 01. 04. 95,p. 1 OJ L 270 21. 10. 94,p. 27 OJ L 73 01. 04. 95,p. 1 21. 06. 91 Council Reg. (EEC)No. 1251/91 13. 5. 91 Council Reg. (EEC)No. 2685/90 17. 9. 90 OJ L 119 14. 5. 91,p. 35 OJ L 256 20. 9. 90,p. 1 OJ L 247 22. 09. 94,p. 29 OJ L 247 22. 09. 94,p. 1 Asbestos cement Turkey pipes undertakings Com. Dec. 91/392/EEC OJ L 209 ' 31. 7. 91,p. 37 Audio tapes in cassettes Japan S. Korea duties Ball bearings (miniature) Japan duties Thailand undertakings Com. Dec. 94/639/EC (countervailing)03. 08. 94 duties (CVD) Council Reg. (EC)No. 2271/94 19. 09. 94 P. R. China duties Ball bearings (>30mm) Japan duties Council Reg. " (EEC)No. 2849/92 OJ L 286 01. 10. 92,p. 2 Barium chloride P. R. China duties 28. 09. 95 Council Reg. (EEC)No. 541/91 4. 3. 91 Bicycles P. R. China duties * Council Reg. Calcium metal P. R. China Russia duties Car radios S. Korea duties Cotton yarn Brazil Turkey duties duties Turkey duties Dihydrostrepto- P. R. China duties mycin D R A M's** Japan undertakings undertaking duties S. Korea duties undertakings OJ L 60, 7. 3. 91,p. 1 OJ L 228, 09. 09. 93,p. 1 OJ L 270, 21. 10. 94,p. 27 (EEC)No. 2474/93 08. 09. 93 Council Reg. (EC)No. 2557/94 19. 10. 94 Council Reg. (EEC)No. 2306/92 04. 08. 92 OJ L 222 07. 08. 1992,p. 8 Council Reg. (EEC)No. 738/92 23. 3. 92 Council Reg. (EC)No. 3203/93. 22. 11. 93 Council Reg. (EC)No. 1828/94 25. 07. 94 Council Reg. (EEC)No. 3836/91 19. 12. 91 Commission Reg. (EEC)No. 165/90 23. 1. 90 Commission Dec. 92/494/EEC 12. 10. 92 Council Reg. (EEC)No. 2112/90 23. 7. 90 OJ L 82 27. 3. 92,p. 1 OJ L 289 24. 11. 93,p. 1 OJ L 182 27. 07. 94,p. 3 OJ L 362 31. 12. 91,p. 1 OJ L 20 25. 1. 90,p. 5 OJ L 299 15. 10. 92,p. 43 OJ L 193 25. 7. 90,p. 1 OJ L 66 Council Reg. (EEC)No. 611/93 15. 03. 93 Com. Dec. 93/157/EEC OJ L 66 04. 03. 93 18. 03. 93,p. 1 18. 03. 93,P. 37 * Duties suspended by Commission Decision no. 95/197/EC, OJ no. L 126, 09. 06. 95, p. 58 Tpr Electrolyte capacitors Japan duty Electronic weighing scales S. Korea Taiwan duty Japan duty S. Korea Singapore duty Singapore additional duty EPROM's* Japan duties Council Reg. (EEC)No. 3482/92 30. 11. 92 Council Reg. (EC)No. 1384/94 13. 06. 94 Council Reg. (EEC)No. 993/93 26. 04. 93 Council Reg. (EEC)No. 2887/93 20. 10. 93 Council Reg. (EC)No. 2937/95 20. 12. 95 Council Reg. (EEC)No. 577/91 04. 03. 91 OJ L 353 03. 12. 92,p. 1 OJ L 152 18. 06. 94,p. 1 OJ L 104 29. 4. 93,p. 4 OJ L 263 22. 10. 93,p. 1 OJ L 307 20. 12. 95,p. 30 OJ L 65, 12. 03. 91, p. l undertakings Com. Dec. 91/131/EEC OJ L 65, Espadrilles P. R. China duties Ethanolamines U. S. A. duties 11. 03. 91 Com. Dec. 93/538/93 18. 10. 93 12. 03. 91 OJ L 262, 21. 10. 93,p. 64 Council Reg. (EEC)No. 1812/91 24. 6. 91 Council Reg. (EC)No. 229/94 01. 02. 94 OJ L 166, 2 8. 6. 91, p. 1 OJ L 28, 02. 02. 94,p. 40 Ferrochrome (low-carbon) Kazakhstan duties Russia Ukraine Council Reg. (EEC)No. 2717/93 28. 09. 93 OJ L 246 02. 10. 93,p. 1 Ferrosilicon Brazil Russia Kazakhstan Ukraine Iceland* Norway* Venezuela duty Council Reg. (EC)No. 3359/93 02. 12. 93 OJ L 3 02 0 9. 1 2. 9 3 , p. l suspended according to Council Regulation (EC)no. 5/94) Egypt undertaking Commission Reg. 92/331/EEC 30. 06. 92 OJ L 1 83 0 3. 0 7. 9 2 , p. 40 Suspended on 15. 07. 95, L 165, p. 26 }X Poland Egypt duty Poland undertaking S. Africa P. R China duty Council Reg. (EEC)No. 3642/92 14. 12. 92 Commission Dec. 92/572/EEC 14. 12. 92 Council. Reg. (EC)No. 621/94 17. 03. 94 OJ L 369 18. 12. 92,p. l OJ L 369 18. 12. 92,p. 32 OJ L 77 19. 03. 94,p. 48 * Ferro-silico- manganese duty Russia Ukraine Brazil S. Africa Fluorspar P. R. China duties Furazolidone P. R. China duties Furfuraldehyde P. R. China duties Glutamic acid (monosodium glutamate) duties Indonesia Korea Taiwan Thailand undertakings Isobutanol Russia duties Lighters (disposable) duties Japan P. R. China S. Korea Thailand Council Reg. (EC)No. 2413/95 06. 10. 95 OJ L 248 14. 10. 95,p. l Council Reg. (EC)No. 486/94 04. 03. 94 Council Reg. (EC)No. 2674/94 OJ L 62 05. 03. 94, p. 1 OJ L 285 04. 11. 94, p. 1 Council Reg. (EC)No. 95/95 16. 01. 95 Council Reg. (EEC)No. 2455/93 2. 9. 93 Commission Dec. 93/497/EEC 30. 07. 93 Council Reg. (EC)No. 721/94 29. 03. 94 Council Reg. (EEC)No. 3433/91 25. 11. 91 OJ L 15 21. 01. 95, p. 11 0J-L 225 04. 09. 93, p. 1 OJ L 225 04. 09. 93,p. 35 OJ L 87 31. 03. 94,p. 3 OJ L 326, 28. 11. 91,p. l Thailand undertaking Com. Dec. 91/604/EEC OJ L 326, 25. 10. 91 28. 11. 91,p. 31 P. R. China duties Linear tungsten halogen lamps Japan duty Magnesia (deadburned! P. R. China duty Magnesium oxide P. R. China duty (caustic magnesite) Council Reg. (EC)No. 1006/95 03. 04. 95 Council Reg (EEC)No. 117/91 16. 01. 91 Council Reg. (EC)No. 3386/93 06. 12. 93 OJ L 101, 04. 05. 95,p. 38 OJ L 14, 19. 01. 91, p. 1 OJ L 306, 11. 12. 93,p. 16 Council Reg. (EEC)No. 1473/93 14. 06. 93 OJ L 145, 17. 06. 93,p. 1 h Microdisks Japan Taiwan P. R. China duties Council Reg. (EEC)No. 2861/93 18. 10. 93 OJ L 262 21. 10. 93, p. 4 Hong Kong S. Korea duties Outer rings of TRBs (cups) Japan duties Oxalic acid India P. R. China duties Peroxidisul- phates P. R. China duty Photo albums P. R. China duty Council Reg. (EC)No. 2199/94 09. 09. 94 Council Reg. (EEC)No. 55/93 08. 01. 93 Council Reg. (EEC)No. 3434/91 25. 11. 91 Council Reg. (EC)No. 2961/95 18. 12. 95 Council Reg. (EC)No. 3664/93 22. 12. 93 OJ L 236 10. 09. 94, p. 2 OJ L 9 15. 01. 93,p. 7 OJ L 326 28. 11. 91,p. 6 OJ L 308 21. 12. 95,p. 61 OJ L 333 31. 12. 93,p. 67 Pig iron (haematite) Brazil Poland Russia Ukraine duties Com. Dec. (EC) No. l751/94/ECSC OJ L 182 16. 07. 94,p. 37 Plain paper Japan duty photocopiers Council Reg. (EC)No. 2380/95 02. 10. 95 OJ L 244 12. 10. 95,p. l Polyester fibres Turkey and yarns undertaking (countervailing] Com. Dec. 91/511/91 23. 09. 91 OJ L 272, 28. 9. 91,p. 92 Council Reg. (EEC)No. 3905/88 12. 12. 88 Council Reg. (EEC)no. 830/92 30. 03. 92 OJ L 347 16. 12. 88,p. 10 OJ L 88 03. 04. 92,p. l Council Reg. (EEC)No. 3308/90 15. 11. 90 Council Reg. (EEC)No. 2346/93 23. 08. 93 OJ L 318 17. 11. 90,p. 2 OJ L 215 25. 08. 93,p. l Polyester fibres Taiwan Turkey (synthetic) duties Polyester yarns duties Taiwan Indonesia P. R. China Turkey Polyolefin woven P. R. China duties bags additional duties tt Potassium chloride Belarus Russia Ukraine duties Council Reg. (EC)No. 643/94 21. 03. 94 OJ L 80 24. 03. 94,p. 1 Potassium P. R. China duty permanganate Seamless steel tubes duty Hungary Poland Croatia undertakings Council Reg. (EC)No. 2819/94 17. 11. 94 OJ L 298 19. 11. 94, p. 32 Council Reg. (EEC)No. 1189/93 14. 05. 93 ComDec93/260/EEC 14. 05. 93 OJ L 120 15. 05. 93,p. 34 OJ L 120 15. 05. 93,p. 42 Semi-finished products of alloy steel Brazil Turkey duty undertaking ComDecl775/92/ECSC OJ L 182 30. 06. 92 02. 07. 92,p. 23 Sheets and plates Slovenia duty of iron or steel Silicon carbide Macedonia Montenegro Serbia Russia Poland P. R. China Ukraine Com. Dec. 2297/92/ECSC 31. 07. 92 OJ L 221 06. 08. 92,p. 36 duties Council Reg. (EC)No. 821/94 12. 04. 94 OJ L 94 13. 04. 94,p. 21 Silicon metal P. R. China duty additional duty Brazil duty Council Reg. (EEC)No. 2200/90 27. 7. 90 Council Reg. (EEC)No. 1607/92 22. 6. 92 (EEC)No. 2305/92 04. 08. 92 OJ L 198 28. 7. 90, p. 57 OJ L 170 25. 6. 92, p. 1 OJ L 222 07. 08. 92,p. l Sisal twine Brazil undertakings (binder and baler) Com. Dec. 93/521/EEC OJ L 25l 03. 09. 93 08. 10. 93 Sodium carbonate U. S. A. duties (soda ash) Synthetic tex- Romania duties tile fibres of Taiwan Turkey polyester Serbia Montenegro FYR Macedonia Council Reg. (EC)No. 2381/95 10. 10. 95 Council Reg. (EEC)No. 3017/92 19. 10. 92 OJ L 244 12. 10. 95,p. 32 OJ L 306 22. 10. 92,p. 1 11 India S. Korea duties Council Reg. (EEC)No. 54/93 08. 01. 93 OJ L 9, 15. 01. 93,p. 2 & Televisions (colour) Malaysia P. R. China S. Korea Singapore Thailand duties Council Reg. (EC)No. 710/95 27. 03. 95 OJ L 73 01. 04. 95,p. 3 Televisions S. Korea duties (small-screen colour) P. R. China duties Hong-Kong Television Japan duties camera systems Thermal paper Japan duties undertakings Tungsten carbide P. R. China duties and fused tungsten carbide duties Tungsten ores P. R. China duties and concentrates duties Tungstic oxide P. R. China duties and acid duties Council Reg. (EEC)No. 1048/90 25. 04. 90 Council Reg. (EEC)No. 2093/91 15. 07. 91 Council Reg. (EC)No. 1015/94 29. 04. 94 OJ L 107 27. 4. 90,p. 56 OJ L 195 18. 7. 91,p. l OJ L 111 30. 04. 94,pl06 Council Reg. (EEC)No. 729/92 16. 03. 92 Com. Dec. 92/177/EEC 16. 03. 92 OJ L 81 26. 03. 92,p. l OJ L 81 26. 03. 92,p. 22 Council Reg. (EEC)No. 2737/90 24. 09. 90 Council Reg. (EC)No. 610/95 20. 03. 95 Council Reg. (EEC)No. 2735/90 24. 09. 90 Council Reg. (EC)No. 610/95 20. 03. 95 Council Reg. (EEC)No. 2736/90 24. 09. 90 Council Reg. (EC)No. 610/95 20. 03. 95 OJ L 264 27. 09. 90,p. 7 OJ L 64 22. 03. 95,p. l OJ L 264 27. 09. 90,p. l OJ L 64 22. 03. 95,p. l OJ L 264 27. 09. 90,p. 4 OJ L 64 22. 03. 95,p. l OJ L 174 4. 7. 90,p. 27 OJ L 306 6. 11. 90,p. 21 Typewriter ribbons P. R. China undertakings Com. Regulation duties (EEC)No. 1937/90 Council Reg. (EEC)No. 3200/90 5. 11. 90 V\ Urea Venezuela duties Russia duties Urea ammonium nitrate Bulgaria Poland duties Council Reg. (EEC)No. 2835/91 23. 9. 91 Council Reg. (EC)No. 477/95 16. 01. 95 Council Reg. (EC)No. 3319/94 22. 12. 94 OJ L 272 28. 9. 91,p. 10 OJ L 4 9 04. 03. 95,p. l OJ L 350 31. 12. 94,p. 20 undertakings Com. Dec. 94/825/EC OJ L 350 12. 12. 94 31. 12. 94,p. 115 Video cassette tapes Hong Kong South Korea duties Council Reg. (EEC)No. 1768/89 19. 6. 89 OJ L 174 22. 6-. 89,p. l Hong Kong undertakings Com. Dec. 89/376/EEC 19. 6. 89 OJ L 174 22. 6. 89,p. 30 P. R. China duties Welded tubes of iron or steel Romania duties Council Reg. (EEC)No. 3091/91 21. 10. 91 OJ L 293 24. 10. 91,p. 2 Council Reg. (EEC) No. 868/90 2. 4. 90 OJ L 91 6. 4. 90, p, Turkey Venezuela undertakings Com; Dec. 90/166/EEC 2. 4. 90 Council Reg. (EEC) No. 898/91 8. 4. 91 duties OJ L 91 6. 4. 90,p. 36 OJ L 91 12. 4. 91,p. l Welded wire mesh Yugoslavia undertakings Com. Dec. 91/256/EEC 14. 5. 91 OJ L 123 18. 5. 91,p. 54 85 ISSN 0254-1475 COM(96) 146 final DOCUMENTS EN 02 Catalogue number : CB-CO-96-150-EN-C ISBN 92-78-02436-8 Office for Official Publications of the European Communities L-2985 Luxembourg v°

Amended proposal for a EUROPEAN PARLIAMENT AND COUNCIL DECISION adopting a programme of Community action on the prevention of drug dependence within the framework for action in the field of public health (1996-2000)

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* ** I COMMISSION OF THE EUROPEAN COMMUNITIES * ** I Brussels, 08. 05. 1996 COM(%) 201 final 96/0128 (COD) OPINION OF THE COMMISSION pursuant to Article 189 b (2) (d) of the EC Treaty, on the European Parliament's amendments to the Council's common position regarding the proposal for a EUROPEAN PARLIAMENT AND COUNCIL DECISION adopting a programme of Community action on the prevention of drug dependence within the framework for action in the field of public health (1996-2000) AMENDING THE PROPOSAL OF THE COMMISSION pursuant to Article 189 a (2) of the EC Treaty COMMISSION OPINION, delivered in accordance with Article 189b(2)(d) of the EC Treaty, on the European Parliament amendments to the Council common position relating to the proposal for a European Parliament and Council Decision adopting a programme of Community action on the prevention of drug dependence within the framework for action in the field of public health (1996-2000), amending the Commission proposal in accordance with Article 189a(2) of the EC Treaty In its Communication of 24 November 1993 the Commission outlined a framework for future action at Community level towards attaining the health protection objectives laid down by Articles 3(o) and 129 of the Treaty establishing the European Community, following the entry into force of the Treaty on European Union. In initiating action under Article 129 the Community has to address the issue of preventing disease and protecting health. Drug dependence is the only scourge specifically mentioned in Article 129, and the Commission considered that its prevention was a priority for Community action and should be made the subject of a specific programme. This programme is also a key element of the Europoean Union action plan to combat drugs. This first Community action programme for the prevention of drug dependence is designed to support Member States' actions and to step up European cooperation at each stage of the prevention process (boosting awareness of the drugs phenomenon, identifying risk situations, counselling and guidance, medical and social assistance), with a view to preventing drug use, helping users to quit, reducing the mortality rate, reducing the risks arising from drug use and combating marginalisation. The specific activities envisaged are compatible with, and complementary to, other activities proposed within the public health framework. The Commission adopted its Decision on 21 June 1994 and transmitted the proposed Decision to the European Parliament and the Council on 22 August 19941. The Economic and Social Committee2 adopted its opinion on 22 February 1995. The ESC supports the programme and the approach proposed by the Commission in its Communication and its proposal for a Decision. It recommends that adequate resources be spread over a long period and emphasises the need to support the evaluation of ongoing research and existing practices, the promotion of innovative programmes, and exchanges of information and experience. 1 2 OJ No C 257, 14 9. 1994 OJ No C 110, 2. 5. 1995 i- à- V- The Committee of the Regions3 adopted its opinion on 16 November 1994. The Committee supports the Commission proposal. It feels in particular that more resources should be earmarked for education and drug demand reduction and emphasises the importance of activities aimed at young addicts and groups who are difficult to reach, and activities geared towards modifying risk behaviour, rehabilitation, and the informing of regional and local communities. The European Parliament4 adopted its opinion at the first reading on 20 September 1995, proposing 56 amendments to the Commission proposal. These amendments seek to extend and add detail to the proposed decision, in particular by laying stress on: the importance of strategies to reduce the damage caused by drug abuse, as a complement to the strategies aimed at primary prevention; the need for the programme to fit within a strategy of combating social exclusion, and to take account of the social factors linked to drug use; the need for a series of actions in the areas of information, education, training and research, placing the accent on young persons and high-risk groups and listing the specific activities to be developed within the framework of other Community policies. The Commission accepted 21 of the 56 amendments proposed by Parliament, either in full or in part. On 23 November 1995 the Commission adopted an amended proposal taking account of the aforementioned Parliament amendments5. On 20 December 1995 the Council unanimously adopted a common position with a view to adopting the Decision in question. The Commission was unable to accept this common position and entered reservations concerning the following points: Article 3 (Budget): The Council wanted to reduce the overall budget for the five- year programme from MECU 28. 5 to MECU 27. The Commission entered a reservation on this proposed reduction, especially since the common position provided both for more actions and for larger-scale actions than had the Commission's original proposal. Article 5 (Comitology): The Council wanted to introduce a dual, "mixed" procedure as regards the role of the Committee set up to assist the Commission in implementing the programme. This procedure, similar to that set up for the three programmes recently adopted on the basis of Article 129 (Health promotion; O J N O C 2 1 0, 14. 8. 1994 O J N O C 2 6 9, 16. 10. 1995 COM (95) 579 final S AIDS; Cancer), assigns the Committee "administrative" competence in six areas of activity, and "advisory" competence in a number of others. The Commission entered a reservation concerning this approach, affirming its preference for a purely advisory committee, and asked for a statement to this effect to be entered, in anticipation of the second reading by Parliament. - Annex (Actions to be implemented under the programme): The common position takes on board most of the amendments made by the Commission to its initial proposal in response to the Parliament amendments. The amendments not included in the Council's common position chiefly concern: - the attention to be given to utilisation of the other Community policies and programmes (Action b of the Commission proposal); the inventorising of organisations involved in the care of drug addicts (Action d(3) of the Commission proposal); the recitals highlighting the value of a multidisciplinary approach (9b and 15b) and listing the partner organisations for the implementation of the programme (16a). In view of the importance attached by Parliament to these aspects, the Commission entered a reservation concerning their non-inclusion in the Council common position. On 16 April 1996 the European Parliament adopted 23 amendments to the Council common position. The Commission's opinion concerning each of these amendments is given in the Annex. The Commission points out that in accordance with Article 189b(3) of the Treaty if, within three months of receiving the Parliament amendments, the Council, acting by a qualified majority, approves all of the amendments, it shall amend its position accordingly and adopt the act in question; however, the Council shall act unanimously on the amendments on which the Commission has delivered a negative opinion. If the Council does not approve the act in question, the President of the Council, in agreement with the President of the European Parliament, shall forthwith convene a meeting of the Conciliation Committee. £ ANNEX6 Amendment No 3: Commission opinion: partially accepted. The Commission can accept this amendment in part and link it up with the preceding recital, provided the wording concerning the objectives of a multidisciplinary approach is made more general; Amendment No 4: Commission opinion: rejected. The text of the common position already refers to the impact of drug dependence on the health of individuals. Amendment No 5: Commission opinion: rejected. Defining the objectives of drug addiction policy falls outside the scope of this programme. Amendment No 6: Commission opinion: accepted partially. The reference to drug dependence as a sickness which can be prevented and treated confirms the wisdom of tackling this scourge from a public health prospective, as provided for in Article 129. Amendment No 7: Commission opinion: accepted partially. This amendment describes the objective of the programme more precisely, and the Commission accepts it provided that it mentions narcotics and psychotropic substances only (these being illicit drugs) and that, as regards the abuse of alcohol and pharmaceutical products, it takes account of the initiatives implemented in the context of the Community action programme on health promotion. Amendment No 8: Commission opinion: rejected. The recommendation in this amendment lies outside the scope of the programme. It is the responsibility of the national authorities to distinguish, if they so wish, between soft and hard drugs. Amendment No 9: Commission opinion: rejected. The recommendation in this amendment lies outside the scope of this programme. The spirit of this amendment is reflected more specifically in the statement of the programme's objective (amendment 7). Amendment No 10: Commission opinion: accepted partially. The Commission can partially accept this amendment if it is worded in a more general way, identifying the prison environment as one of the priority environments for preventive action. Amendment No 11: Commission opinion: rejected. The numbering of the amendments corresponds to the numbering of the Recommendation for second reading - Doc. A4-93 EP 198. 341, and to the position of the amendments in relation to the text of the common position. 9- The measures envisaged in this amendment lie outside the scope of the programme. Amendment No 12: Commission opinion: accepted. A horizontal question: the amendment corresponds to the texts of the decisions on the three programmes recently adopted on the basis of Article 129 (Cancer; Health promotion; AIDS). Amendment No 13: Commission opinion: rejected. This amendment does not take account of the principle of subsidiarity; it contains a very specific and restrictive reference to certain categories of organisations, which, moreover, are covered by amendment 15. Amendment No 15: Commission opinion: accepted. This amendment adds a non-exhaustive reference to the types of organisation which could participate in the implementation of the programme. Amendment No 17: Commission opinion: accepted partially. A horizontal question: the Commission can accept the first part of the amendment, which corresponds to the texts of the decisions on the three programmes recently adopted on the basis of Article 129. Amendment No 18: Commission opinion: rejected. The EDMC's tasks and operating methods are laid down in the Regulation establishing the EDMC and cannot be modified through this programme. Amendment No 19: Commission opinion: rejected. The Commission has entered general reservations concerning the comitology approach proposed in the common position and cannot accept this amendment since it implies acceptance of the Council's position. Amendment No 21: Commission opinion: rejected. The Commission has entered general reservations concerning the comitology approach proposed in the common position and cannot accept this amendment since it implies acceptance of the Council's position. Additionally, the reference to the informing of the European Parliament was made by means of a declaration when the decisions were taken on the three other programmes recently adopted in the public health framework. Amendment No 23: Commission opinion: rejected. The action envisaged by this amendment falls outside the scope of the programme. Amendment No 24: Commission opinion: rejected. The Commission considers that the areas of activity covered by this amendment are already covered by the Council text. Amendment No 26: Commission opinion: partially accepted. The Commission can accept a reference to the relatives and guardians of drug addicts provided this is worded in general terms, as follows: "measures to assist persons living 2 with them". The financing of projects to provide training or employment for drug addicts falls outside the scope of this programme. Amendment No 27: Commission opinion: accepted partially. The Commission can accept a non-exhaustive mention of the relevant environments for reaching out to young people. The Commission considers that involving young people in the prevention actions is covered by the Council text. Support for programmes to teach young people social skills falls under the scope of the health promotion action programme. Amendment No 28: Commission opinion: accepted partially. The Commission can accept a reference to promoting recourse to the expertise of persons liable to come into contact with groups of potential users. Amendment No 29: Commission opinion: rejected. The action envisaged by this amendment partially overlaps with the provisions relating to the objective and implementation of the programme. Amendment No 31: Commission opinion: accepted partially. This amendment assimilates into the programme's palette of measures the promotion of multidisciplinary cooperation for prevention purposes, which tallies with the approach defined during the discussions on drug demand reduction in the context of the European Union Action Plan to Combat Drugs. ? AMENDED PROPOSAL FOR A EUROPEAN PARLIAMENT AND COUNCIL DECISION ADOPTING A PROGRAMME OF COMMUNITY ACTION ON THE PREVENTION OF DRUG DEPENDENCE WITHIN THE FRAMEWORK FOR ACTION IN THE FIELD OF PUBLIC HEALTH (1996-2000) (presented by the Commission in accordance with Article 189a(2) of the EC Treaty) Lv COUNCIL COMMON POSITION MODIFICATIONS PROPOSED Having regard to the Treaty establishing the European Community, and in particular Article 129 thereof, Having regard to the proposal from the Commission1, Having regard to the Opinion of the Economic and Social Committee2, Having regard to the Opinion of the Committee of the Regions3, Acting in accordance with the procedure laid down in Article 189b of the Treaty4, (1) Whereas drug dependence has grown alarmingly in the Member serious States implications for the health of individuals and the welfare of the general public; and has (1) (2) (3) (4) of OJNoC257, 14. 9. 1994, p. 4. OJNoC 110, 2. 5. 1995, p. 8. OJ No C 210, 14. 8. 1995, p. 88. the European Opinion Parliament of 20 September 1995, Council common position of 20 December 1995 (OJ No C269, 16. 10. 1995, p. 65) and the European Decision of (OJ No C 37, Parliament of 9. 2. 1996, p. 1) (not yet published in the Official Journal). /( (2) Whereas, in creating in 1985 a Committee of Inquiry into the problem of drugs in the Member the European States of the European Community, its Parliament in depth the desire to study factors which trigger drug demand and enable drugs to continue being produced and distributed; demonstrated (3) W h e r e as in i ts this resolutions concerning problem1 European the Parliament formulated a series of in proposals with a view, particular, to Community action on the prevention of drug dependence; (4) Whereas the European Council, at its meeting in Dublin on 25 and 26 June 1990, "stressed the responsibility of each Member State to develop an appropriate drug reduction programme" and "considered that effective action by each Member State, supported by joint action the of Community, should be a main priority over the coming years"; the Twelve demand and (1) OJ No C 172, 2. 7. 1984, p. 130. OJNoC283, 10. 11. 1986, p. 79. OJ No C 47, 27. 2. 1989, p. 51. OJNoC 150, 15. 6. 1992, p. 42. IL (5) Whereas the actions undertaken at Community level on the basis of C o u n c il R e s o l u t i o n s, conclusions and declarations relating to the prevention of drug in particular dependence, and emphasis subsequent placed by the European Council, in Rome on 14 and meeting 15 December 1990, the European Plan to Combat Drugs, have helped the to Member States' efforts; sustain the on to (6) Whereas to in its the Council, Resolution of 2 June 19941, in response the Commission communication of 24 November 1993 on a framework for action in the field of public health, included drug dependence among the priority areas for Community action for which the Commission was invited to bring forward proposals for action; (7) Whereas Regulation established (EEC) No 302/932 a European Monitoring Centre on Drugs and Drug Addiction to provide the Community and the Member States with reliable and i n f o r m a t i on c o m p a r a b le concerning and drug addiction; drugs (1) (2) O J N oC 165, 17. 6. 1994, p. 1. O J N o L 3 6, 12. 2. 1993, p. 1. (J by (8) Whereas the declaration on the occasion of the entry into force of the Treaty on European Union adopted the European Council, meeting in Brussels on 29 October 1993, emphasized the Treaty provides "a that s t r u c t u r ed i n s t i t u t i o n al framework, so that in particular greater control can be achieved over those of society's problems that run across frontiers, such as drugs (. )"; (9) Whereas the problems associated with the drugs phenomenon are such that they require a fully coordinated and global strategy, as the European Council, meeting in Brussels on 10 and 11 December 1993; stated by (10) Whereas drug dependence is the only scourge expressly referred to in the provisions of the Treaty dealing with public health and is for therefore a Community action within the framework for action in the field of public health set out by the Commission; priority (11) Whereas this programme is one of the essential components of the Commission communication to the European Parliament and the Council of 23 June 1994 on a European Union Action Plan to combat drugs (1995-1999), on which the Council commented in its conclusions of 2 June 1995; 9a. (New) Whereas a multidisciplinary approach should in particular ensure that the social and personal the phenomenon are taken into account: implications of 10a. (New) Whereas drug dependence is a sickness which can be prevented and treated: <<< for (12) Whereas, by reason of its scale and effects, Community action to encourage the support prevention of drug dependence will make a better contribution to achieving the desired objectives, which the come within framework of Article 129 of the Treaty, in particular the second of paragraph 1 subparagraph thereof; (13) Whereas cooperation with the international competent organizations and with non-member countries should be strengthened; (14) Whereas clear objectives a multiannual programme should be launched for with Community action, and priority measures should be selected, as well as appropriate mechanisms for the evaluation of such action, with a view to preventing drug dependence and the associated problems; (15) Whereas the programme should have the objective of helping to combat drug dependence by preventing dependence linked to and the use of narcotics and substances psychotropic associated use of other products for the purposes of drug addiction; (16) Whereas is a need to there improve knowledge of the phenomenon of drugs and drug t h e ir d e p e n d e n ce and 15. Whereas the programme should have as its objective to contribute to the enhancement of awareness of the use of narcotics and psychotropic substances and the associated use of other products the purposes of drug for addiction, improve to recognition of risk situations, early detection, counselling and advice, health and social support, with a view to preventing drug use, facilitating the cessation of drug use, lowering the mortality rate, risks of infection by agents of infection and reducing marginalisation: reducing and the rr consequences, and of the ways and means of preventing drug addiction and the associated risks; (17) Whereas there is a need both for general preventive action and for preventive measures focusing on specific groups, target and particularly marginal groups, while avoiding stereotypes of drug users; the young (18) Whereas it is important that the 17a. (New) Whereas the prison environment is one of for the priority preventive action: environments e n s u re C o m m i s s i on implementation this of programme in close cooperation with the Member States; whereas, to that end, provision should be to made ensure that Member States are fully involved in implementing the programme; a procedure for the (19) Whereas a "modus vivendi" b e t w e en E u r o p e an Parliament, the Council and the the Commission implementing measures for acts adopted in accordance with the in laid procedure Article 189b of the Treaty was concluded on 20 December 1994; concerning down (20) Whereas, from an operational point of view, the investment made in previous years should be safeguarded and developed; (21) Whereas, possible however, duplication of effort should be avoided by the promotion of the exchange of experience and by the joint development of basic the information modules health general training education public, and for for for IL members of the health-care professions, which may be targeted on specific groups; (22) Whereas the objectives of this programme and of the actions undertaken to implement it form part of the health protection requirements referred to in the third paragraph of Article 129(1) of the Treaty and as such form a constituent the Community's other policies; part of a impact (23) Whereas, in order to increase the the of value and continuous programme, assessment of the measures undertaken should be carried out, with particular regard to their effectiveness and the achievement of objectives both at national level and Community level, and, where appropriate, the necessary adjustments should be made; (24) Whereas thi s Deci si on 1 ay s down, a constituting for the entire duration of the financial programme, framework the principal point of reference, within the meaning of point 1 of the Declaration of the European Parliament, the Council and Commission of 6 March 1995, for the budgetary authority during the annual budgetary procedure; (25) Whereas this programme should run for five years in order to allow sufficient time for actions to be implemented to achieve the objectives set, HAVE DECIDED AS FOLLOWS: Article 1 Establishment of the programme f+ referred 1. A programme of Community action on the prevention of drug dependence, "the hereinafter programme", shall be adopted for the period 1 January 1996 to 31 December 2000 within the framework for action in the field of public health. as to 2. The objective of the programme shall be to help in combating drug dependence, in particular by encouraging cooperation between the Member States, supporting their action and promoting coordination between their policies and programmes with a view to preventing dependence linked to the use of narcotics and and associated use of other products for the purposes of drug addiction. psychotropic substances 3. The actions to be implemented under the programme specific and objectives are set out in the Annex under the following headings: their A. B. Data, research, evaluation Information, health education and training. Article 2 Implementation The Commission shall ensure the 1. implementation, in close cooperation with the Member States, of the actions set out in the Annex, in accordance with Article 5. The Commission shall cooperate 2. with the institutions and organizations which are active in the field of drug demand reduction. The Commission shall cooperate 2. with the institutions and organizations which are active in the field of drug demand reduction; in particular, it shall encourage the participation implementation of the programme by public non private (NGOs). governmental organisations volunteers and therapy or social welfare communities. bodies, and in a take the measures 3. The Member States are called upon judge to necessary to coordinate and organize the implementation of this programme at national level. they Article 3 Budget (i) 1. The financial framework for the implementation of the programme for the period referred to in Article 1 shall be ECU 27 million. 2. The annual appropriations shall be authorized by the budgetary authority within financial limits of the perspective. the (1) The Commission maintains a reservation this Article. concerning f? Article 4 Consistency and complementarity and that there shall ensure 1. The Commission and the Member States is complementarity consistency between actions to be implemented under this programme and other relevant Community programmes and initiatives, "SOCRATES", including "LEONARDO DA VINCI" and "Youth for Europe (III)" programmes and the research and biomedical health programme under the Community's framework programme for research. the 1. The Commission shall ensure that there is consistency and complementarity between actions to be implemented under this programme and other relevant Community programmes and initiatives, including "SOCRATES", "LEONARDO DA VINCI" and "Youth for Europe (III)" programmes and the health biomedical research and the Community's programme under framework programme for research. the 2. The Commission shall also ensure that the activities implemented take into account the work of the European Monitoring Centre for Drugs and Drug Addiction (EDMC). It shall also ensure, together with the Member States, that the Community's priorities and needs are the taken EDMC's programmes. into due account in 3. The Commission and the Member States shall ensure consistency with the European Union's Action Plan to combat drugs. Article 5 Committee (i) 1. Commission shall be assisted by a Committee consisting of two members designated by each Member State and chaired by the representative of the Commission. (1) The Commission maintains a reservation this Article. concerning 2a representative submit shall the 2. The Commission the Committee a draft of the measures to be taken concerning: of to the Committee's (a) procedure; rules of (b) (c) an annual work programme indicating for action; the priorities including the arrangements, criteria and for selecting and procedures the financing projects under programme, those involving cooperation with international organizations having responsibility in the field of public health and participation of the countries in Article 6(2); referred to (d) the evaluation procedure; (e) (f) a r r a n g e m e n ts t he dissemination and results; for transfer of the the arrangements for cooperating and with organizations in Article 2(2). institutions referred to The Committee shall deliver its opinion on the draft measures referred to above within a time limit which the Chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148(2) of the Treaty in the case of decisions which is required to adopt on a proposal from the the Commission. representatives of the Member States within the Committee shall be weighted in the manner set out in that Article. The Chairman shall not vote. The votes of the Council The Commission shall adopt measures immediately. apply which shall li However, if these measures are not in accordance with the opinion of the Committee, they shall be communicated by to the Council the Commission forthwith. In that event: - - shall defer the Commission application of the measures which it has decided upon for a period of two months from the date of such communication, the Council, acting by a qualified majority, may take a different decision within the time limit referred to in the first indent. 3. In addition, the Commission may consult the Committee on any other matter concerning the implementation of the programme. The representative of the Commission shall submit to the Committee a draft of the measures The to be Committee shall deliver its opinion on the draft within a time limit which the Chairman may lay down according to the urgency of the matter, if necessary by taking a vote. taken. The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its opinion recorded in the minutes. The Commission shall take the utmost account of the opinion delivered by the Committee. the Committee of the manner in which its opinion has been taken into account. inform shall It 4. The Commission representative shall keep the Committee regularly informed about: - programme financial assistance granted under (amounts, this and duration, beneficiaries), breakdown ?z proposals Commission or Community initiatives and the implementation of programmes in other areas which are directly relevant to the achievement of the objectives of the programme, with a view to ensuring the consistency and complementarity referred to in Article 4. Article 6 International cooperation In the course of implementing the with cooperation and with countries organizations having in the field of public and encouraged in accordance with the 1. programme, non-member international responsibility shall health implemented procedure laid down in Article 5. be the Commission shall In particular, cooperate with the Council of Europe's Pompidou Group, with international intergovernmental organizations such as the World Health Organization (WHO), the United Nations Educational, S c i e n t i f ic C u l t u r al a nd the O r g a n i z a t i on ( U N E S C O ), International Labour Organization (ILO) and with the United Nations International Drug Control Programme (UNIDCP). those 2. The programme shall be open to participation by the associated countries of Central and Eastern Europe (ACCEE) in accordance with the conditions laid down in the Additional Protocols to the Association Agreements, to be concluded with concerning countries, participation in Community programmes. The programme to participation by Cyprus and Malta on the basis of additional appropriations in accordance with the same rules as those applied in accordance with procedures to be agreed with those countries. the EFTA countries, shall be open to l> Article 7 Monitoring and evaluation States 1. The Commission, taking into account the reports drawn up by the the Member participation, where necessary, of independent experts, shall ensure that an is made of the actions evaluation undertaken. and with 2. The Commission shall submit to the European Parliament and the Council an interim report halfway through the programme and a final report on completion thereof. The Commission shall incorporate into those reports the results of the evaluations. It shall also send the reports to the Economic and Social Committee and the Committee of the Regions. a CH ANNEX PROGRAMME OF COMMUNITY ACTION ON THE PREVENTION OF DRUG DEPENDENCE A. DATA. RESEARCH. EVALUATION Objective To the improve knowledge of phenomenon of drugs and drug dependence and its consequences and of means and methods of preventing drug dependence and the risks relating thereto, in particular by using the information supplied by the EDMC and the possibilities offered by existing Community programmes and instruments. Actions 1. Help identify the data a n a l y s ed to be c o l l e c t e d, and disseminated for the purposes of the programme, including data on polysubstance dependence. implementation 2. Exploit the data most useful for the the in programme, on p a r t i c u l ar regular of communication of the work of the EDMC. the basis of a 3. Help develop a strategy in particular for research on the prevention of drug dependence, to improve knowledge as regards the impact in the public health sphere of policies targeting drug users and on the effects of drugs and the use of appropriate for preventive purposes. techniques 4. Support studies and pilot projects s o c i o - e c o n o m i c, the on V a nd s o c i o - c u l t u r al factors psycho-sociological associated with drug dependence, including in target groups. the exchange 5. Support studies and actions and promote of experience on ways and means of the risks associated preventing in dependence, with particular for: drug - preventing, in drug-dependent pregnant women, the effects of drugs on the foetus and the risks of transmitting infections to the child, - reducing the risks associated with the injection of drugs, - making an assessment of accompanying health measures, substitution in programmes, particular - evaluating methods and programmes for prevention and risk the management of drug-dependent prisoners. reduction in 6. Encourage the exchange of information and experience on preventing drug addiction relapses, including the rehabilitation of drug users. the of exchange Encourage information and experience on preventing drug addiction relapses, including the rehabilitation of drug users, and on ways of assisting persons living with them: B. I N F O R M A T I O N. H E A L TH EDUCATION AND TRAINING Objective Objective Contribute to improving information, training aimed at education and preventing drug dependence and the information, Contribute to improving at training and education preventing drug dependence and the aimed U associated risks, people young vulnerable groups. in particular for particularly and associated risks, in particular for young people in the relevant environments (for example home, school, university and leisure time) and particularly vulnerable groups. (a) Information and health education Actions 7. Support schemes to evaluate the effectiveness of information and health education campaigns and carry out regular public opinion surveys via Eurobarometer to monitor changes in Europeans' attitudes towards drugs. 8. Organize further European Drug Prevention Weeks on the basis of previous experience. 9. Help identify, test and develop the best information and educational tools and methods target for groups, and in particular: - encourage use of the information tailored to particular environments or circles, taking account of changes in patterns of use and products used, and of t he p h e n o m e n on polysubstance dependence, of - support schemes to adapt to messages the needs and specific features of particularly vulnerable groups, - support the development of telephone help line services and feasibility of consider introducing a single telephone number for such services in all Member States. the Vr 10. Help to define guidelines on the prevention of drug abuse and foster the selection and use of teaching methods and materials, in particular within the context of the European network of health-promoting schools, in order to develop attitudes in young people which will enable them to avoid drugs and drug addiction; support integrated projects, programmes and other drug prevention initiatives in places frequented by children and young people, with the participation wherever possible of parents and those concerned. 10. Help to define guidelines on the prevention of drug abuse and foster the selection and use. of teaching methods and materials, in particular within the context of the European network of health-promoting schools, in order to develop attitudes in young people which will enable them to avoid drugs and drug integrated support addiction; projects, programmes and other drug prevention in places initiatives frequented by children and young the participation people, with wherever possible of parents and those concerned; promote recourse to the expertise of persons liable to come into contact with groups of potential users. 11. Encourage exchanges of experience on initiatives aimed at coordination between all those involved in the provision of education. improving 12. Support schemes for advising teachers, families and those responsible for young people on the early detection of the use of drugs and the action to take. 13. In cooperation with the EDMC and the Council of Europe, if need be, the encourage extension of the European network of "test towns", so as to promote technical cooperation on the ways and means used by these towns to reduce drug demand. 14. Support exchanges of experience, particularly on a cross-border basis, regional concerning local prevention initiatives. Support exchanges U of experience on prevention models and practices involving towns in different Member States which are particularly the problem of affected by drugs. (b) Training and teachers 15. Promote initiatives to improve the drug prevention aspect of vocational training programmes those for responsible for young people and encourage exchanges of students training for the social and health-care professions, including exchanges under other Community programmes. 16. Support the development of further-training programmes, teaching materials and modules for those likely to come into contact with drug users and groups at risk, in including social work, particular health-care, police and other law-enforcement professionals. 16. Support the development of further-training programmes, teaching materials and modules for those likely to come into contact with drug users and groups at risk, including in particular social work, other police health-care, professionals; law-enforcement m u l t i d i s c i p l i n a ry p r o m o te to cooperation with preventing drug dependence. view and a 21-\c ISSN 0254-1475 COM(96) 201 final DOCUMENTS EN 05 Catalogue number : CB-C0-96-213-EN-C ISBN 92-78-03868-7 Office for Official Publications of the European Communities L-2985 Luxembourg 1A

Amended proposal for a COUNCIL DECISION establishing a Community action programme in the field of civil protection

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COMMISSION OF THE EUROPEAN COMMUNITY CO I | I ! A. * ^ "* w * *" in * Brussels,08. 05 1996 COM(%)2l9 final 95/ 0098 (CNS) Amended proposal for a COUNCIL DECISION establishing a Community action programme in the field of civil protection (presented by the Commission pursuant to Article 189 a (2) of the EC-Treaty) EXPLANATORY MEMORANDUM Pursuant to Article 189 (a) paragraph 2 of the EC Treaty, the Commission submits an amended proposal for a Council Decision establishing a Community action programme in the field of civil protection. The amended proposal takes account of a number' of amendments from the European Parliament, adopted at its April 1996 Plenary Session. Several amendments aim at clarifying the nature and the objectives of the proposed action programme. Most of them are incorporated in the amended proposal (recitals 2a; 4; 6; 8; art. 3, 2(b); annex: points A. l and 2; annex: point B), namely amendments 2 (second part), 3, 4 (second part), 6, 7, 11, 20 (second and third parts), 21 (first part) and 23 (first part). Because the original Commission's proposal takes into account the progressive setting up of the Community cooperation in the field of civil protection, the amendments 2 (first part) and 4 (first pari) arc not accepted. Amendment 1, referring to the Fifth Action programme, in fact duplicates with recital 3 of the original proposal and is therefore not accepted. scope of the programme by bringing positive Some other amendments enlarge the additional elements to the objectives as well as the criteria for actions to be developed. These amendments - namely amendments 8, 9, 10 (with the exception of the reference to cessation or closure of the activity or installation which are not part of the programme), 12, 13, 15 (first part), 22 (second part), 23 (fourth and fifth parts) - are integrated in the amended proposal (art. 1; art. 3, 2(a), (c) and (d); art. 3, 4; Annex: point A. 3 and point B). However, amendment 8 (third part) which adds the coordination of regional and subregional potential when combating major disaster cannot be accepted. Indeed, the Community action programme does not aim at coordinating but at supporting efforts which are developed within the Member States. In the same spirit, amendment 22 (first part) cannot be accepted because the objective of the Community simulation exercises is not to evaluate but to back up progress in national civil protection systems. Several amendments aim at introducing a reference to the specificity of the Union's isolated and ultraperipheral regions and to the role to be played by organizations or bodies specializing in the civil protection domain. These amendments (amendments 5, 14 (part 1 and 2), 15 (part 2), 21 (part 4) and 23 (part 2) - are partly incorporated in the amended proposal (recitals 4a and 5; art. 3, 3; Annex: point A. 2 and point B) because they bring a new and to the action programme. However, amendment 14 part 3 cannot be accepted: this amendment requests the Commission to investigate the possibility of presenting a scheme of specific measures for these regions in conjunction with third countries. Such specific measures are not envisaged in the frame of the proposed action programme, except when this is requested in the context of the opening of Community programmes on the basis of Europe Agreements or relevant Additional Protocols thereto. important dimension As far as amendment 25 is concerned, the possibility for a Non Governmental Organization (NGO) to request the Commission's support for the mechanisms set up by a NGO in case of a disaster inside or outside of the Union cannot be accepted because such organizations have not been notified as competent authorities (Resolution of the Council and of the representatives of the governments of the Member States, meeting within the Council of 8 July 1991 on improving mutual aid between Member States in the event of natural or technological disaster - OJ n° C 198 of 27. 7. 1991, p 1-3). Amendments referring to comitology and changing in this respect the original proposal of the Commission (amendments 16, 17, 18, 27 and 28) are not acceptable because they are not in accordance with the Council Decision of 13 July 1987 laying down the procedures for the exercise of implementing powers conferred on the Commission (OJ - L 197 of 18. 7. 1987, p. 33-35) or because they intend to limit these powers. As far as the evaluation of the implementation of the action programme is concerned, amendment 19 (second part) and amendment 31 (first part) can be accepted (art. 5) because it is considered that the transmission of this evaluation also to the European Parliament improves the process. The fact that this evaluation will be transmitted for information to the Committee mentioned in article 4 is considered as sufficient as far as transparency is concerned. Article 31 (part 2) is therefore not accepted. As far as the rhythm of evaluation is concerned (amendment 19 - part 1), the original proposal foreseeing a rhythm of three years is maintained. Finally, some amendments concern the action programme. Amendment 21 (part 5) is not accepted nor 23 (part 3) because they request 100% funding while it is considered that a shared cost approach contributes to increase the co- responsibility of partners. Amendment 24 (part 2) can be accepted (Annex: point C). financial aspects of Amended proposal for a COUNCIL DECISION establishing a Community action programme in the field of civil protection (presented by the Commission pursuant to Article 189 a paragraph 2 of the EC Treaty) Commission proposal Amended proposal Recital 2 a (new) Whereas a better consideration for the environmental aspects can contribute to prevent many disasters, in particular natural disasters such as floods: Recital 4 of the establishment Whereas a Community action programme will help to develop cooperation in the field even more effectively; whereas such a programme should be based to a large extent on experience already gained in this field; of the establishment Whereas a Community action programme will help to develop cooperation in this field even more effectively the resolutions adopted since 1987: whereas such a programme should be based to a large extent on and should further develop experience already gained in this field; further develop and Recital 4 a (new) Whereas the geography, landscape and social and economic characteristics of the Union's isolated and ultraperipheral regions affect and impede the bringing in of aid and means in cases of major risk: Recital 5 to action prepare involved those Whereas in civil responsible for and and environmental protection emergencies in the Member States is important, in order to increase their degree of preparedness; other to other action prepare involved those Whereas in civil responsible for and and environmental protection emergencies in the Member States is important, in order to increase their degree of preparedness; whereas organizations or bodies other than public authorities play often a major role in civil protection and should therefore be given the possibility to take part in the programme: Recital 6 Whereas it is also important to undertake action targeted at the general public so as to protect to help European citi/ens themselves more effectively; Whereas it is also important to undertake practical action targeted at the general public so as to help European citizens to protect themselves more effectively and with greater solidarity in the event of any disaster or emergency and increase their regards shared environmental protection and awareness of health hazards which could arise from specific disasters, such as the accidental release of toxic materials: whereas such action corresponding support activities in the Member States: responsibility should as Recital 8 Whereas in accordance with the principle of subsidiarity, Community cooperation supplements national policies in the field of civil protection and environmental emergencies in order to make them more effective; whereas pooling of experience and mutual assistance will help to reduce the loss of human life and economic and environmental damage the Community; throughout Whereas, in accordance with the principle of subsidiarity, Community cooperation supplements national policies in the field of civil protection and environmental emergencies in order to make them more effective; whereas pooling of experience and mutual assistance will help to reduce the loss of human life and economic and environmental damage the Community, thus making more tangible the goals of social cohesion, solidarity and European citizenship: throughout Article of civil protection, emergencies, A Community action programme in the including field environmental is hereby established. The action making up the programme and for granting Community financial support are set out in the Annex. the arrangements of civil protection, emergencies, A Community action programme in the including field environmental is hereby established. The action making up the programme and for granting Community financial support are set out in the Annex. This action seeks, inter alia, to enhance exchanges of experiences at all levels. the arrangements Article 3, 2 a) b) c) to increasing This individual action shall be selected primarily on the basis of the following criteria: (a) contribution the degree of preparedness of those involved in civil protection in the Member States, in order to increase their ability to an emergency; (b) c o n t r i b u t i on techniques response: pilot projects; improving of and methods respond to to (ç) contribution to public information, education and awareness, so as to help citizens to protect themselves more effectively. 2. This individual action shall be selected primarily on the basis of the following criteria: (a) contribution to the prevention of natural and technological disasters: inter alia by introducing the risks of disaster in the environmental impact assessment and taking any preventive measures required and by studying the causes of disasters and publishing the results of these studies: (b) contribution to increasing the degree of preparedness of those primarily responsible for and most directly involved in civil protection in the Member States at all levels, in order to increase their ability to respond to an emergency; and procedures by m e a ns (c) contribution to improving means and methods of forecasting and of techniques r e s p o n se of demonstration and pilot projects; (d) contribution to public information, education and awareness, so as to help citizens to protect themselves more effectively and show a greater sense of shared responsibility. Article 3, 3 3. Each action individual be implemented in close cooperation with the local national, authorities concerned. regional shall or shall action national, individual be Each implemented in close cooperation with the local authorities concerned and particularly and with ultraperipheral regions. the Union's regional isolated or Article 3, 4 4. Each action shall take account of the results of the Community and national research in the relevant fields. 4. Each action shall take account of the results of the Community and national research in the relevant fields and of those techniques which best safeguard the environment. Article 5 Every three years the Commission shall evaluate implementation of the action programme and shall inform the committee referred to in Article 4 accordingly. Every three years the Commission shall evaluate implementation of the action programme and shall inform the European Parliament and the committee referred to in Article 4 accordingly. Annex: point A (1) A. Action contributing to increasing the degree of preparedness of those involved in civil protection A. Action contributing to increasing the degree of preparedness of those involved in civil protection 1. Training 1. Training Organization of (mainly self-tuition) workshops bringing together high-level experts from the Member each discipline, the mutual sharing of experience by means of in-depth discussions of their methods, techniques and means with a view to: permitting, within States the conditions increasing their degree of preparedness; creating establishment of permitting more cooperation between Member States case of emergency. the network operational in a effective human for Maximum Community financial contribution: 75% of the total cost of the action, with a ceiling of 62. 500 ECU per action. Organization of (mainly self-tuition) workshops bringing together high-level experts, technical specialists and technicians from the Member States permitting, within each discipline, the mutual sharing of experience by means of discussions in specific terms of their methods, techniques and means with a view to: Maximum Community financial contribution: 75% of the total cost of the action, with a ceiling of 62. 500 ECU per action. increasing their degree of preparedness; creating the conditions for the establishment of a human network permitting more effective operational cooperation between Member States in case of emergency. Annex: point A (2) 2. Exchange of experts 2. Exchange of experts and technicians Organization of exchanges of Member State experts enabling them to follow short training courses in another Member State run by a training body or another civil protection department. Organization of the secondment to another Member State of one or more trainers who are particularly qualified to present certain training courses or modules. 100% of the experts' travel and subsistence expenses and the costs of the coordinating system for an initial period of two years (1995-1996). T h e r e a f t e r, t he financing of experts' travel and subsistence expenses will be limited to 75%. Organization of exchanges of Member State experts, technicial specialists and technicians enabling them to follow short training courses in another Member State run by a training body or another civil protection department, with particular attention to the services responsible for dealing with disasters in the isolated and ultraperipheral regions. Organization of the secondment to another Member State of one or more trainers who are particularly qualified to present certain training courses or modules. 100% of the experts' travel and subsistence expenses and the costs of coordinating the system for an initial period of two years (1995-1996),. T h e r e a f t e r, t he financing of experts' travel and subsistence expenses will be limited to 75%. 10 Annex: point A (3) 3. Community simulation exercises 3. Community simulation exercises These exercises are to compare methods and to back up progress in national civil protection systems. intended intended These exercises are to compare methods and to back up progress in national to civil protection systems with a view improving, inter alia, the effectiveness and speed of response in case of disasters. t he from Maximum Community financial contribution: of 5 0 % participation costs of observers the other Member States t he i n v i t ed organizing State, the cost of organizing the associated workshops, preparing the exercise, the final report, etc. by f from Maximum Community financial contribution: t he 5 0 participation costs of observers the other Member States invited the organizing State, the cost of organizing the associated workshops, preparing the exercise, the final report, etc. by Annex: point B B. Projects contributing to improving techniques and methods of response: B. Projects contributing to improving techniques and methods of response. Pilot projects Pilot projects to increase the Member Projects designed States' response capacity. These projects are aimed mainly at improving means, techniques and procedures. Their scope should be such as to interest all or several Member States. Maximum Community financial contribution: 50% of the total cost of each project. Projects designed to increase the capacity for and speed of response of the officials most directly involved in the initial stages of crises in the different regions of Member States. These projects are aimed mainly at improving means, techniques and procedures also in the isolated and ultraperipheral regions. Their scope should be such as to interest all or several Member States by giving them the maximum follow-up publicity and demonstration the Union for their implementation. throughout Maximum Community financial contribution: 50% of the total cost of each project. The greatest possible encouragement should be g i v en multinational projects. to 11 Annex: point C C. Action contributing to improving public information, education and awareness, so as to protect themselves more effectively10 to help citizens C. Action contributing to improving public information, education and awareness, so as to help citizens to protect themselves more effectively10 Maximum Community financial contribution: 50% of the total cost of the action. Action encouraging exchanges of experience between Member States, regions and local authorities in the field of initiatives to improve public information, education and awareness, so as to help citizens to protect themselves more effectively. The idea is to build on the work done by the Member States and to enable the authorities and other organizations concerned to benefit in other Member States. The target group is the general public, focusing in particular on schoolchildren and young people receiving initial vocational training. similar experience from regions and Action encouraging exchanges of experience between Member States, local authorities in the field of initiatives to improve public information, education and awareness, so as to help citizens to protect themselves more effectively. The idea is to build on the work done by the Member States and to enable the authorities and other organizations concerned to benefit from similar experience in other Member States. The target group is the general public, in particular on schoolchildren and focusing young people vocational training. receiving initial Maximum Community financial contribution: 50% of the total cost of the action. Distribution of exhibitions. information and travelling 100%) financing Distribution of exhibitions. information and travelling Up to 100%) financing 10 The Community action in the field of public health is excluded from this programme (cf. in particular the Commission communication and proposal for a European Parliament and Council Decision adopting a programme of Community action on health promotion, information, education and training within the framework of the action in the field of public health, OJ n° C 252, 9. 9. 1994, p. 3) (*) (*) This proposal has been adopted on 29 March 1996 fOJ n° L 95. 16. 4. 1996. p. 1) 12 ISSN 0254-1475 COM(96) 219 final DOCUMENTS EN 14 05 Catalogue number : CB-CO-96-230-EN-C ISBN 92-78-04198-X Office for Official Publications of the European Communities L-2985 Luxembourg J*

Commercial Communications in the Internal Market - Green paper from the Commission

http://publications.europa.eu/resource/cellar/ece1a7f9-a4a7-472c-86d6-d6b4470639fc

eng

COMMISSION OF THE EUROPEAN COMMUNITIES + * + ir * -it fc Brussels, 08. 05. 1996 COM(96) 192 final • '* Commercial Communications in the Internal Market Green paper from the Commission. Contents Executive summary Introduction Part I. Commercial communications in the European Community Summary Internal Market Objectives Meeting other Community Objectives Part II. Evaluation of the need for Community action Summary Reasons for existing or new Internal Market barriers Threats to the coherence of Community measures Part III. Evaluation of the specific areas for Community action Summary A Preliminary Review The need for a further review of potential regulatory barriers The need for an early notification mechanism Part IV. Proposals for consultation Summary A methodology to deliver a more uniform assessment Improved Co-ordination and Information at the European level Footnotes Working Document of the Services. 1 4 4 4 11 17 17 17 20 21 21 21 29 32 33 33 33 37 39 A working document of the Services is provided separately. This sets out in detail the research findings on which this Green paper is based. It is in two parts. The first assesses how regulatory impacts on the European Market for Commercial Communications can be evaluated and the second consists of a set of national regulatory tables for each of the Member States. A<i EXECUTIVE SUMMARY Objective. In November 1992 the Commission decided to review its future policy approach in the field of commercial communications. The Commission decided that this review should be made public in the form of a Green Paper. Its aim is to seek the views of the European Parliament, the Member States and interested circles on proposals which have the objective first, of ensuring that any future initiative undertaken at the Community level is coherent with other Community policies or actions and secondly, of developing an approach which will help the Commission to evaluate possible problems of compatibility of certain national measures with Community Law. Scope. The term commercial communications covers all forms of advertising, direct marketing, sponsorship, sales promotions and public relations promoting products and services (packaging is not included for the reasons outlined in the introductory section). As the Information Society evolves, new forms of commercial communications will undoubtedly assume greater importance in this field. Preliminary key findings. As preparation for this Green Paper, a comprehensive review of the relevant legislation in each Member State, a full market analysis and surveys have been undertaken. The detailed results of these reviews are included in an associated Working document. ^ Five principal conclusions can be drawn from these analyses. (1) Cross-border commercial communication services in the Internal Market are a growing phenomenon. (2) At present, differing national regulations could create obstacles for companies wanting to offer such services across national borders and also create problems for consumers seeking redress against unlawful cross-border commercial communication services. (3) For the future some of these divergences between the regulatory frameworks of Member States could give rise to barriers as more commercial communication services will circulate across borders. (4) The risk of such regulatory differences giving rise to barriers may be accentuated with the advent of the new services developed in the Information Society. (5) The availability of information about regulatory measures and market developments is becoming increasingly important at national and Community level. siL A new approach towards Commercial Communications policy. Based on these preliminary results the Green Paper outlines certain basic policy orientations on which reactions from interested parties are sought. (1) Existing regulations may have to be reviewed where they are shown to hamper cross frontier activity. Differences in national regulations could give rise to problems of offering commercial communication services across national borders. Indeed, a number of potential regulator)' barriers to trade of such services between Member States were identified in the surveys. The principle of freedom to provide services guarantees that a Member State cannot restrict services emanating from another Member State unless such restrictions fulfil certain specific conditions. A restriction may arise as a result of the additional application of national rules to persons providing services established in the territory of another Member State who already have to satisfy the requirements of that State's legislation. Such restrictions could be justified under Article 59 only if the application of the national legislation is justified by overriding reasons relating to the public interest and if it is proportionate to these or if the requirements embodied in that legislation are not already satisfied by the rules imposed on those persons in the Member State in which they are established (mutual recognition). Therefore, in this legal context it has to be examined to. which extent the potential barriers to trade in commercial communication services are admissible under Community law and in particular whether they fulfil the condition of proportionality. Part III of the Green Paper defines three categories of potential barriers to cross frontier commercial communication services identified from the responses to the preliminary review resulting from the survey: Category (a) Restrictions that involve an absolute ban on certain types of marketing activity. Category (b) Restrictions that limit marketing activities but without going as far as to ban their use. Category (c) Restrictions that relate to certain specific product categories or types of service. The detailed review launched by this Green Paper may eventually lead to the dismantling of national measures for which it can be demonstrated that they are incompatible with Community law. It may also allow for proposals for secondary Community legislation where necessary. (2) The potential development of new barriers within the Internal Market needs to be tackled. New regulatory problems could emerge as the market in cross frontier commercial communication grows. The challenge is therefore to ensure that a high quality, appropriate and coherent legal framework can develop in a changing environment. Over-regulation and an over- reliance on infringement procedures (Article 169) must be avoided. This could be achieved by AO introducing an early warning system to identify new regulatory developments. In addition increased co-operation between the regulatory authorities in the Member States and with the Commission may prevent new barriers to occur. (3) Future National and Community measures must be developed in conformity with both Internal Market and other Community objectives. Any policy designed to meet particular public interest concerns needs to be defined with great precision so that any proposed regulatory measures can be precisely targeted to achieve their underlying policy objectives. Failure to do so could result in potentially counterproductive effects. Proposals for consultation. Based on the results of the surveys and on the orientations above the Commission invites comments from all interested parties on the following proposals. I. To improve the proportionality assessment of any future regulatory action in the field of commercial communications, the Commission proposes a methodology. With such an assessment methodology, Community initiatives could be precisely targeted at specific public interest objectives: any potential spill-over into other policy fields could be identified and minimised at an early stage. At the national level the methodology could be useful to assess the legality of possible barriers to commercial communications activities. II. Better co-ordination and information at a European level is needed. The Commission proposes to establish a committee of representatives from the Member States to consider the activities that fall within the scope of commercial communications. The committee will examine broad issues which should assist the transparency of the Commission's approach. The Committee could help safeguard the coherence of future national initiatives in the field of commercial communications allowing for solutions to be found which would help ensure compatibility with Community law. In its early meetings particular attention will be paid to sales promotions and sponsorship as commercial communications' activities that were identified in the surveys as causing the most difficulties. The majority of respondents to the survey called on the Commission to provide better information regarding the regulatory picture throughout the Community. The Commission proposes that a central contact point be established within the Commission responsible for particular enquiries about its Commercial Communications policies. In addition the contact point will collect and make available information about the Commission's overall approach through the co-ordination and development of improved policy information communications channels in this domain. At NOTICE TO THE READER The Commission wishes to hold an open consultation: in addition to the European Parliament and the Member States, any individual, firm, body or authority may comment on the analysis and proposals presented in this Green paper. This is a twin-track consultation process whereby, not only European federations and associations representing consumers and industry, but also individual interested parties and national associations can make their views known. The Commission wishes to receive comments on the analysis and the proposals made in this Green paper by the 30th October 1996? /<L INTRODUCTION. In November 1992 the Commission decided that it should prepare a Green Paper to consider its overall appraisal of policy making in the field of Commercial Communications. The Commission's strategic programme "Making the Most of the Internal Market" * recognised the specific role that commercial communications play in the development of the European area without internal frontiers. The Commission's policy on the Information Society^ brought out the importance of developing a coherent policy for the European Information Society service industries. Commercial communications can be defined as: "All forms of communication seeking to promote either products, services or the image of a company or organisation to final consumers and/or distributors. " The term includes all forms of advertising, direct marketing, sponsorship, sales promotions and public relations. It also covers the use of such commercial communication services by all goods and service industries as well as public and semi-public bodies, charities and political organisations-*. Packaging is not included. ^ This does not imply that problems do not arise in this field and does not therefore preclude consideration by the Commission of the regulatory framework existing in this domain. Within this service sector, the following two general types of service may be identified: (i) The range of services offered by the commercial communications industry ("suppliers"^. Suppliers include advertising agencies, direct marketing companies (all forms), sales promotion designers, media buyers, sponsorship agents, public relations companies. Other services are supplied by "specialised suppliers" such as market research companies, advertising film producers, mailing list brokers. The services of both kinds of supplier are provided to clients ("users") interested in making such communications to the public or to a part thereof. (ii) The range of delivery services offered by "carriers" of commercial communications. The providers of these services cover a wide range of organisations including the media (TV, radio and printed word), organisers of sports and cultural events, postal and telecommunication service providers, billboard site operators etc. , and may work for both suppliers and users. The Commercial Communications Sector It is not possible to put precise figures on the operations of the whole commercial communications service sector. Its importance, on the other hand, is manifest. Limited data are available for a number of activities: in 1993 advertising expenditure reached ECU 45,557 million in the European Union; the market for direct marketing was worth ECU 26,760 million7; and the total turnover for public relations companies was ECU 1,800 million5. The total number of / I employees in the sector is again difficult to estimate, not only because it is a highly fragmented sector, but also because many involved in this field work on an independent or freelance basis. Figures advanced range between 155,000 and 250,000 for the Union as a whole. ** In addition to the employment generated within the various parts of the sector itself, many more jobs within the marketing departments of users should be added to this total. The economic importance of the sector in terms of both output and employment is therefore considerable. In the modern industrial and service economies of the Union, commercial communications serve the role of promoting brand identities and informing potential clients, by strengthening the market presence and the desired 'positioning' of the brand or company, and providing in appropriate detail, information on the product or service offered. Commercial communications can be a powerful factor in the integration of national markets. Successful trans-border branding strategies within the Internal Market underpin international trade by ensuring consumers in export markets are kept informed of products and services being offered by suppliers in the exporting Member State. At present, in a number of areas, the marketing of goods and services is handled exclusively by local agents or subsidiaries of the brand owner. But, in future, as existing trans-border media expand, and new, more effective trans-border communication channels are opened, it seems highly probable that more and more brand owners will seek to communicate directly across borders with their consumers. It should be remembered that commercial communications are not, as is often implied, the only means by which goods and services are marketed. They are in fact one of the four elements in a company's set of marketing tools - its "marketing mix". ( The others are: the product or service itself, its distribution and its price). The marketing mix is determined by the branding strategy, which in turn reflects the type of market in which the manufacturer or service provider operates. Six types of branding markets have been identified^, each with its typical marketing mix and combination of commercial communication tools adapted to the relevant competitive environment. The relative need for targeting, the competitive power of distributors, and the types of consumer values attached to the brand all help to shape the mix of commercial communications used. The Commission's Study programme. Given the wide scope of commercial communications, the Commission decided to launch two analyses during 1993 and 1994. The first was a comparative study of national regulations in the field of commercial communications^. The second was an economic/market analysis of commercial communications and branding strategies. ^ In addition to these two studies, in order to check whether regulatory divergences were creating barriers in the Internal Market, the Commission undertook two further surveys in which the views of interested parties were canvassed^. One of these^ was aimed at the collection of detailed written information on the effects of the Internal Market on companies' commercial communication activities and on any obstacles that the companies could identify. ^This also canvassed the views of consumer associations on problems that consumers had or might be expected to experience with the growth of cross-border commercial communication services. More than 300 detailed replies were received, and the evidence they provide has been extensively drawn on in Parts I and III of this Green paper. The second^survey was carried out by MRB International Ltd and was conducted by fax/telephone. This was done with the express purpose of avoiding a situation in which the only respondents to the "call for written comment" were companies committed to achieving an Internal Market for commercial communications or consumer associations focusing on European rather than national or regional issues^7. During this period another independent study unrelated to the current Green paper was launched by the Commission on the "Future of Media and Advertising". This concluded that the development of new media would require a review of the existing European regulatory framework in the field of advertising. Organisation of the Green paper. This Green Paper is organised in four parts. Part I sets out the role of the Community in the field of commercial communications. In Part II the Commission argues the need for action. Part III provides a preliminary review of specific areas where that action could be taken. Part IV draws certain conclusions on which comment is invited. The accompanying 'Working Document of the Services' supplies the detailed analysis on which the proposals made in the Green Paper are based. Part I of the Working Document uses economic and business principles to explain the role of commercial communications in the Internal Market in the framing of a reliable impact analysis. Part II of the Document provides a detailed comparative review, in tabular form, of national laws and the objectives they seek to meet. PART I. COMMERCIAL COMMUNICATIONS IN THE EUROPEAN COMMUNITY. Summary Commercial communication services fall within the scope of Internal Market law, notably that concerning the free movement of services. An evaluation of how they will develop in the Internal Market and a review of the survey results show that benefits of the Internal Market are not being fully enjoyed as a result of regulatory differences across the Member States. Moreover, the advent of the Information Society will result in an increase in cross border commercial communications. Since the Community's role is not limited to the Internal Market but has other policy objectives, there is a brief description of these and their bearing on commercial communications. Respondents are asked to give their views on each of these points. INTERNAL MARKET OBJECTIVES Internal Market law. Commercial communications and the free movement of goods In certain circumstances commercial communication activities could benefit from the application of Article 30 of the EC Treaty relating to the free movement of goods. The Court's recognition of the indirect economic link between commercial communication services and the sale of goods is clearly explained in the Oosthoek's Uitgeversmaatschappij judgement concerning the restriction of a sales promotion by a Belgium firm into the Dutch market. The Court stated that this measure led to a measure equivalent to a quantitative restriction as follows: " Legislation which restricts or prohibits certain forms of advertising and certain means of sales promotion may, although it does not directly affect imports, be such as to restrict their volume because it affects marketing opportunities for the imported products. The possibility cannot be ruled out that to compel a producer either to adopt advertising or sales promotion schemes which differ from one Member State to another or to discontinue a scheme which he considers to be particularly effective may constitute an obstacle to imports even if the legislation in question applies to domestic products and imported products without distinction. "' °. In GB-INNO^ where the restriction bore on the content of advertising leaflets distributed in Luxembourg by a Belgian retailer, the Court made the link to Article 30 by way of the reminder that the free movement of goods across frontiers also depended upon the free movement of people. Since the banning of advertising directed at individuals from a neighbouring State would deprive them of the incentive to cross the border it would therefore limit the possibilities for the goods to cross the same border. This judgement shows that the informational role of commercial communications is recognised in law. It also shows that restrictions in advertising related to goods are to be assessed under Article 30. This informational benefit was stressed in the "Yves Rocher" judgement^. In deciding that price comparisons were not misleading, the Court remarked that such advertising practices could be considered as: ". extremely useful to enable the consumer to make his choice in full knowledge of the facts. " Restrictions on commercial communications may therefore be open to challenge under Article 30 of the Treaty. In Keck and Mithouard2^ the Court imposed certain limits on the application of Article 30, in that it held that Article 30 would not apply to national measures prohibiting or restricting "certain selling arrangements"2-2 provided such measures apply to all relevant traders operating within the national area and so long as they affect in the same manner, in law or in fact, the marketing of domestic products and of those from other Member States. This case has been followed by a number of other cases in which the same line has been taken by the Court. 2-* In order to decide whether Article 30 applies, an examination of restrictions on commercial communications should therefore be undertaken on a case by case basis. Commercial communications and free movement of services The freedom to provide services is guaranteed by Articles 59 and 60 of the EC Treaty. Within the meaning of these articles as interpreted by the Court 2^, commercial communication activities involve the provision of different "services" which can be classified according to whether they are provided by the suppliers (e. g. advertising agencies), the carriers (e. g. media) or the specialist suppliers (e. g. list brokers). All these services could be provided on a trans-border basis and against remuneration. The Court has already held that advertising is a service2-5. For example, in a recent judgement, concerning "cold-calling" (unsolicited telephone advertising),2^ it ruled that the prohibition of this practise: "deprives the operators concerned of a rapid and direct technique for marketing and for contacting potential clients in other Member States. It can therefore constitute a restriction on the freedom to provide cross-border services. "^ The principle of freedom to provide services guarantees that a Member State cannot restrict services emanating from another Member State unless such restrictions fulfil certain specific conditions. Therefore, if these conditions are not fulfilled, such services only fall under the legislation of the Member State from where the provider of services is established (country of origin legislation). 2^ However, restrictions on the freedom to provide services can, subject to certain conditions, be justified. Here, the Court draws a clear distinction between discriminatory and non-discriminatory measures. Discriminatory measures are compatible with Community law only if they can be brought within the scope of the exemptions contained in Article 56 of the Treaty, namely; public policy, public security, or public health; and if they comply with the principle of proportionality. Non-discriminatory measures may arise as a result of the additional application of national rules to persons providing services established in the territory of another Member State who already have to satisfy the requirements of that State's legislation. Such restrictions could be justified under Article 59 only if they are justified by overriding reasons relating to the public interest and if the requirements embodied in the restrictive measures are not already satisfied by the rules imposed on those persons in the Member State in which they are established (mutual recognition). 29 'Overriding reasons relating to the public interest' (henceforth referred to as "public interest objectives") include: the protection of workers-**?; the protection of consumers-*7; the protection of intellectual property^2; the protection of fair trading; the conservation of the national historic and artistic heritage; the widest possible dissemination of knowledge of the artistic and cultural heritage of a country-*-*; professional rules designed to protect recipients of services-**; the protection of pluralism-*-5 and linguistic policy-***. In addition restrictions on the free movement of services cannot be imposed merely because of the existence of such public interest objectives: in order to be justified under Community law they must furthermore be proportionate to these pursued objectives. The Court has specified the meaning of proportionality: "it is settled case law that requirements imposed on the providers of services must be appropriate to ensure achievement of the intended aim and must not go beyond that which is necessary in order to achieve that objective"-*7. In other words, it must not be possible to obtain the same result by less restrictive rules. 38 It cannot be excluded that the ECJ will extend its reasoning in the Keck case (see above) to Article 59. At this stage, it is not possible, however, to state in general terms what would be the precise impact of such an extension, since much will depend on the type of service involved. Commercial communications and freedom of expression. Commercial communications could benefit from the principle of freedom of expression as enshrined in Article 10(1) of the European Convention of Human Rights (ECHR) and in Article 19 of the International Covenant on Civil and Political Rights (henceforth referred to as the UN Covenant). Indeed, commercial communication services include opinions, information or ideas and therefore may benefit from the freedom to hold opinions and to receive and impart information and ideas without interference by public authority and regardless of frontiers. Interference by public authorities can be justified if it complies with the conditions set out in paragraph 2 of Article 10 of the ECHR or Article 19 of the UN "Covenant". In this context the specific nature of commercial communications is accounted for through the application of the principle of proportionality. The European Commission and Court of Human Rights and the United Nations Human Rights Committee-*^ have recognised that commercial communications can benefit from freedom of expression as thus defined*^ As regards the links between, on the one hand Article 10 ECHR and Article 19 of the UN Covenant and, on the other hand, the EC Treaty, restrictions on the free movement of services should be interpreted in the light of Article 10 of the ECHR*7 and Article 19 of the UN Covenant*2. Internal Market secondary legislation. Wherever the application of the principles of free movement enshrined in the Treaty is not sufficient to remove restrictive barriers (e. g. where national restrictive measures are justified under Community law,) secondary legislation is necessary. The aim of this legislation is to establish an equivalent level of protection of the relevant public interest objectives (e. g. consumer protection, protection of minors, protection of public health ) in order to remove the legal barriers resulting from disparities between national regulations. A certain number of existing directives are relevant to commercial communications. They concern inter alia misleading advertising*-*, foodstuffs**, protection*7 and television broadcasts*^. Potential Internal Market benefits. financial services*-*, medicinal products***, data The Internal Market offers a significant potential for individuals and organisations involved in commercial communications. However, the Commission's surveys*^ indicated that these opportunities could not always be fully exploited in practice. Five categories of benefits are identified from these surveys : those to the suppliers, to the users, to the carriers, to the consumers and to the self-regulatory bodies. For the suppliers of commercial communication services, the very nature of the Internal Market implies that any service lawfully provided in the country of establishment, should in principle be freely available to other users in other Member States, without the need to verify in each instance whether it is compatible with the regulatory provisions of these host countries. The likely reduction that this would bring about in the costs of complying should assist service providers in extending their activities beyond their national borders. In so doing, they increase competition within the Internal Market, stimulating yet more efficient provision of commercial communication services. The increased efficiencies may come from exploiting new economies of scale or scope, that become attainable because of the increase in market size, or, simply by re organising and reviewing existing methods revealed as inefficient in the light of the new competition. Given that there are scarce creative services at the core of advertising and direct marketing services; suppliers trading in more than one country appear to have an interest in drawing on centrally based creative teams. The survey-tO results. The survey results show that service suppliers are seeking to operate across the Internal Market but are confronted by a significant number of barriers (other than those of a cultural nature). 23% of respondents, when asked to respond spontaneously about problems in providing trans- border services, placed regulatory problems high on their list of "very serious" barriers (30 % cultural and 13% economic). Moreover, when prompted, 99% of respondents identified specific regulatory difficulties. 40% of respondents noted that the only way to tackle the problem was either to adapt at the local level, or undertake totally different campaigns in each country. Respondents were unanimous in considering that it is far less costly to offer effective large scale commercial communications services in the U. S. A. than in Europe. The users of commercial communications (whether manufacturers of major branded goods or services or small or medium sized enterprises trying to break into new markets) could benefit from efficiencies achieved in the commercial communications business, the extent varying according to the type of marketing mix which they use. Branding strategies will inevitably be sector -but not country- specific. This explains why, in principle, users seek to apply the same branding strategies and mixes of commercial communications when they trade in a new national market. Although the way of applying the strategy might have to be adapted to local culture, its underlying core values, messages and commercial communication tools should preferably be similar and consistent, and its planning needs to remain centralised at the headquarters of the company. For this reason, users are likely to be keen to develop trans-border campaigns within the Internal Market and will benefit from a greater choice of service providers. This choice can help them to achieve a better quality of service at a more reasonable price ma, perhaps to grow sufficiently to benefit from economies of scale or scope. In addition, three types of cost savings could result; (i) First, legal search costs are reduced. The lesser the regulatory divergence, the less need there will be for the user to check each set of national regulations. Another reason why legal costs can be significant is that branding investments are vulnerable to any adverse publicity that might arise as a result of legal actions. (ii) Secondly, marketing costs are reduced as firms are allowed to standardise campaigns across markets. (iii) Third, distribution costs will fall. Commercial Communications are used as competitive weapons between manufacturers and retailers. If regulatory divergence prevents manufacturers from effectively using this competitive tool in their negotiations with importing retailers then they will have to pay relatively more to access the relevant retail chain. The efficient operation of the Internal Market would redress such an imbalance. Planning and overall strategy for the Internal Market are increasingly co-ordinated centrally. This is for two reasons: Efficiency: planning, designing and executing different national campaigns push up costs cutting competitiveness since potential synergies of a co-ordinated trans-border campaign are lost. The need to maintain brand credibility throughout Europe: the increasing ease with which information flows freely across national borders means that differing national campaigns conveying potentially conflicting messages could undermine the company's competitive position. The survey results. There are a multitude of trans-border commercial communication services across a number of borders rather than across the whole Union. Subject to cultural and regulatory limitations, companies are increasingly attempting to use similar strategies for their non-domestic markets. When users were asked which of the three types of problems (cultural, regulatory or economic) were the most serious in impeding trade, 24% named cultural and 19% regulatory, while a further 11% mentioned structural economic problems. (Only 13% stated they had no problems, and 23% said that it was not possible to identify which of the three was the most significant. ) When prompted to consider a whole range of such difficulties, 92% felt that they had encountered cultural difficulties (a heading which, for them, covered issues such as business. ethics or distribution techniques including regulatory restrictions. ) In addition to tackling these cultural differences, when prompted, 88% of the users (with no differences from one Member State to another) claimed that regulatory differences and restrictions were adding to their difficulties in conducting cross-border commercial communication services. Regulatory problems were associated with all forms of commercial communications, the most serious relating to sales promotions, direct marketing and sponsorship. The media and other carriers (including cultural and sports events organisers) also benefit from the Internal Market. Improved efficiency in the European commercial communications business should allow for growth of this media sales business, particularly across borders. The survey results. When carriers were asked to respond spontaneously, culture was deemed to be the key concern in terms of Internal Market problems. Nevertheless, 45% highlighted the existence of regulatory barriers and 30% believed such barriers to be the most serious. 35% thought that the differences directly affected the level of their businesses but 60% recognised that they affected that of their clients. Interestingly, although the users and suppliers indicated reliance on the Press when communicating abroad, it was the TV and radio operators who stated they received the most "imports" of trans-border commercial communications. (This probably reflects the Press's tendency to rely on national media buyers; this could be indicative of their underestimating the amount of advertising revenues that originate from non-domestic markets). 80% of respondents sold advertising space to users of commercial communications in other Member States and 60% carried advertisements that had been launched in other Member States. Most of the operators expected more trans-border commercial communications in the future but especially in "non- classical advertising" and particularly in "below the line activities. " -*7 Consumers stand to gain as intra-Community trade increases and fragmentation effects are reduced. Lower marketing costs and a more competitive business environment are likely to be passed on to consumers in greater choice and more competitive pricing. Individuals, businesses or other professionals should be able to make better informed decisions over a wider choice of promoted goods and services. The Internal Market regulatory approach should lead to more effective direct redress from the country where the service originated when such communications infringe laws and codes. The survey results. For consumer associations (of which ten responded), although cultural problems were not deemed to be insignificant, the key concerns related to inaccurate translations that could mislead consumers in the non-domestic market. Consumer associations recognise the opportunities of an Internal Market, but are clearly concerned that it is not operating effectively as a result of differences in regulation which prevent effective redress for consumers in host countries and, as a consequence, call for stricter harrnonisation. The call for tighter regulations stemmed from a feeling that it was impossible for consumers to achieve protection from harmful commercial communication services originating abroad. This again confirmed their view that the Internal Market is not currently offering the benefits they would expect to see. Community law. does not affect the distribution of competences between authorities and self- regulatory bodies. It alldws self-regulators to continue their regulatory function at the national level but it also implies that like public authorities they need to account for Internal Market principles when seeking to control commercial communication services coming from other Member States. The survey results. The views expressed by self-regulatory authorities differed from all other respondents. Ten responded indicating that trans-border problems arose particularly in the area of direct mail (where it was not always clear to them where action should be taken) and also with pan- European TV and Press campaigns. Here it was felt that a lack of understanding of "culture" tended to be the key problem. Unlike the other respondents (who tended to highlight the differences in regulations, rather than their restrictive nature) these respondents felt that laws were generally too restrictive, and that more should be left to self-regulation. However, most felt that advertisers should be better "educated" about cultural divergence, and tended to believe that there was no need to standardise codes across the Community. The advent of the Information Society. Broadly, the advent of the Information Society has four implications for commercial communication services. First, the new digital communication infrastructures represent a new carrier for such services, which allows for the fusion of direct marketing techniques with creative advertising skills. 10 Forecasts of current marketing activity over the Internet vary widely but they all predict significant growth. -*-2 Users will certainly use these new carriers and commercial communication tools to complement their existing methods. Secondly, speed of transmission and targeting possibilities will greatly facilitate trans-border commercial communications. All these services will be offered point to point, in principle on a transfrontier basis. Unlike postal direct marketing, such interactivity is practically instantaneous. In comparison with existing video text or teleshopping services, the creative potential of multimedia tools is highly promising, if still expensive to run. Cultural resistance is likely to be relatively low because the communication will be of a totally new international form. Thirdly, they will lead to an integration of commercial communication services with distance retailing, allowing for interactive distance shopping, which is likely to revolutionise the whole concept of teleshopping •*•*; indeed suppliers are already investing in such concepts as interactive on-line sales catalogues and shopping malls. Finally, the operators of other new Information Society services will seek out certain new commercial communication (e. g. interactive advertising) services to offer in order to make their services affordable (in practice, commercial communications will underwrite the other new services). These new developments in commercial communications will sharpen the need to resolve existing trans-border regulatory problems. The nature of these new networks increases the need for a regulatory framework based on Internal Market principles and, more specifically, where possible and appropriate, based on country of origin control. This can best be demonstrated with the example of the Internet. Once a message has been sent on the Internet it can be received instantaneously anywhere in the world. A regulation based on country of origin control will enhance the possibility of tracking down offenders. The existing regulatory approach could prove to be increasingly ineffective for consumers as well as providing insufficient security for users, who realise that branding investments are the most vulnerable to adverse publicity. Both factors would reduce the potential demand and supply of new on-line interactive commercial communication services. Not only would this weaken the competitiveness of European business, it could undermine the development of the European Information Society infrastructures. Although they are clearly of importance to this activity both now and in the future, the Internal Market principles are not the only Community objectives that could be applied in the field of commercial communications. MEETING OTHER COMMUNITY OBJECTIVES. Other objectives established by the EC Treaty, notably public health (Article 129) and consumer protection (Article 129a) can influence commercial communications. In the remainder of this Part of the Green Paper these and other relevant Community objectives are briefly reviewed. Consumer protection policy Article 129A of the Treaty clearly requires the Community to deal with the whole range of consumer issues, not just those related to the Internal Market. Such an obligation implies careful consideration of subsidiarity at all stages so that appropriate solutions are adopted. With the advent of the Information Society, it is possible that effective consumer protection may require increased trans-national regulatory co-operation. For those regulatory areas that fall beyond the remit of the Internal Market the globalisation of supply which the information society heralds calls for a comparable adjustment of the regulatory system. This adaptation will be of crucial importance to consumers* willingness to participate: the Commission and the Member States must address these issues. In this context, attention should be drawn to the fact that all measures based on Article 129A can take a minimal nature, i. e. such that Member States may adopt stricter provisions to ensure a higher level of consumer protection. Industrial Policy The EC Treaty incorporates legal bases for implementing industrial policy to "ensure that the conditions necessary for the competitiveness of the Community's industry" exist (Article 130(1)). Article 130(2) adds that in order to attain these objectives the Member States "shall consult each other in liaison with the Commission and, where necessary, shall co-ordinate their action". The Commission is ^assigned the specific duty to "take any useful initiative to promote such co ordination". To support their national action, the Community will generally help to achieve this objective of improving competitiveness by taking horizontal measures under a series of common policies (on research, cohesion, vocational training, networks and foreign trade). The Council may also, ruling unanimously on a proposal from the Commission, "decide specific measures destined to support actions taken by Member States in order to attain stated objectives" according to Article 130, paragraph 1 of the Treaty. -5^ Since efficient commercial communication services would generally, by improving marketing efficiency, assist industry in meeting these competitive goals, they could be covered by initiatives in this field. Competition Policy, In general commercial communication "suppliers", "users" and "carriers" activities are all covered by the competition rules of the EC Treaty. Given the competitive role of commercial communications in the Internal Market, anticompetitive agreements in the meaning of Article 85(1) of the Treaty, which restrict the freedom of the parties to supply, to carry, to use or to buy such communications are prohibited. Nevertheless, anticompetitive agreements on commercial communications can be granted an exemption if they satisfy the conditions set out in Article 85(3) of the Treaty. An example, which also illustrates the direct relevance of commercial communications in the market relationship 12 between manufacturers and distributors, is clause 8(b) of Article 3 of the Commission regulation on the application of Article 85(3) of the Treaty to certain categories of motor distribution and servicing agreements. This clause allows manufacturers to prohibit dealers from soliciting customers for contract goods or corresponding goods, outside their territory, by personalised advertising. Protection of Public Health. Article 129 of the Treaty calls upon the Community to contribute to a high level of health protection, particularly by preventive action. It is to address the major health scourges and particularly mentions the fight against drugs. The Treaty stipulates that health protection requirements shall be an integral part of other Community policies. This obligation is also valid for Community action in the field of commercial communications. Central to the Commission's role in the implementation of Article 129 is the obligation to liaise with the Member States in the co-ordination of their policies and programmes concerning prevention, including drug prevention, investigation and analysis of causes and modes of transmission of health scourges, health information and health education. In its Framework of Action in public health, the Commission has foreseen eight programme proposals, of which three on - Cancer - AIDS and other Communicable Diseases, and - Health promotion have already been adopted. Two proposals currently under discussion in the Council and the European Parliament, on - drugs, and - health monitoring. The Commission intends to put forward three further proposals shortly on: - pollution-related diseases, - rare diseases, - accidents and injuries. In addition, the Commission publishes annual reports on the integration of health requirements in other Community policies on the Health status in the Community. It has also put forward a Communication on Surveillance Network for Communicable Diseases. General public health policy, particularly concerning health information and promotion, generates a number of commercial communication-related measures, particularly in Member 13 States. The Commission has put forward a draft Directive on tobacco which proposed to ban advertising for tobacco and tobacco products under certain circumstances. In the framework of the public health programmes, major Community-wide campaigns such as European Cancer Week are organised. On Member State level, there are numerous other public health campaigns. Although funded by the State these are commissioned from commercial communication service providers. Likewise, public health considerations have lead Member States to require health warnings to be placed on commercial communications that promote certain products. The use or commercial communication related measures in this area can be expected given the key role of health information and education. Audiovisual Policy. The Community's Audiovisual Policy has two main goals: - to put in place and ensure the working of a true "European Audiovisual Area", in particular by ensuring the free movement of broadcast services; and - to strengthen the competitiveness of the European film and television production industries. Both objectives are pursued taking full account of the specific cultural aspects of the audiovisual sector. Audiovisual Policy is implemented through two types of Community instrument. These are, on the one hand, legal measures such as the "Television without frontiers" Directive and on the other, financial support initiatives such as the MEDIA II programme. The "Television without frontiers" Directive (Council Directive 89/552/EEC "on the co ordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities") is the cornerstone of the legal arrangements for the "European Audiovisual Area". Its primary objective is to create the legal framework conditions needed to ensure the free movement of broadcast services and thereby to encourage their development throughout the Community-^. Free movement is ensured through the following mechanisms: - Each broadcaster can only be subject to the law of the Member State under whose jurisdiction it comes (that of the place where it is established) and must comply with a minimum set of common rules (the "co-ordinated fields"), - Member States must ensure freedom of reception and may not hinder the re transmission of broadcasts from other Member States for reasons that fall within the co-ordinated fields. As one of the co-ordinated fields is television advertising and sponsorship, this Directive is of particular relevance to the area of commercial communications. Advertising and sponsorship are integral parts of, and constitute the main source of funding for, many television broadcasts 14 whether they emanate from public or private broadcasters. The full implementation of this Directive, based as it is on the "country of origin" principle which is the only workable way in which transnational broadcasting can be developed, is therefore of fundamental importance for the development of commercial communications. In turn, the maximisation of the resources broadcasters earn through advertising and sponsorship revenues will contribute significantly to the attaining of Audiovisual Policy's other main goal i. e. the development of the film and TV programme production industries. The economic inter-linking of these sectors- broadcasting, commercial communications and programme production - means that the development of effective Audiovisual and Commercial Communication policy instruments is in the interest of all three of them. The Directive is currently being up-dated and clarified. In the Commercial Communications services sector, one of the main objectives of this review is to liberalise the rules that apply to teleshopping. Otherwise the 1989 rules on advertising and sponsorship have proved robust and have provided a suitable framework for the development of television advertising and sponsorship while providing a satisfactory level of consumer protection. The Commission has therefore proposed to leave them largely unchanged. It has also proposed to strengthen the "country of origin" principle established by the Directive by clarifying the rules on how jurisdiction is determined. Cultural Policy. In the area of cultural policy, the Commission has recognised how commercial communications can act as an important additional source of revenue to State funds and therefore again, cultural policy could have an impact on such services. In its 1992 Communication-5** the Commission made clear that although the basic responsibility for culture and its main source of financing remain with the authorities in the Member States, the complementary role of sponsorship must not be neglected. The Community has looked with interest at the question of sponsorship and initial attempts have been made to try out the network approach-57. More generally, and with an eye to the frontier-free area, the Community might: improve information on incentives to finance the arts in the Member States, given their diversity and complexity; promote the exchange of information and the highlighting of original initiatives for making optimum use of cultural resources (structural, economic or human) in the Member States and encourage sponsorship and promote meetings between creative artists, project promoters and sponsors without in any way interfering with respective individual freedoms. 15 Internal Market objectives: Invitation to comment. The Commission would welcome views on the role, both now and in the future, of Internal Market principles in the field of commercial communications. In particular, further information is sought on the nature of any Internal Market barriers, actual or potential, that respondents have encountered or identified. Given the expected increase in cross- frontier commercial communications, the Commission is interested in hearing of new commercial communication services (in pilot or commercialised form) and any new kinds of Internal Market barrier that may be appearing. Other Policy Objectives. The Community's role could clearly develop over time as trans-border commercial communications assume greater prominence, following the advent of the Information Society. Given the need to apply the principle of subsidiarity^^, the Commission welcomes views on the implications of this expected growth in cross border communications which could give rise to increased Community involvement in relation to the other policy objectives enshrined in the Treaty of the Union. 16 P A RT II. EVALUATION OF T HE NEED FOR COMMUNITY ACTION Summary The survey results suggest that the Internal Market objective for commercial communications may not be met at the current time. Various reasons explain why national measures diverge substantially from each other and are potential barriers to cross frontier activity. These sources of divergence can be expected to persist as commercial communications across borders expand with the advent of the Information Society. There is a risk of inconsistent regulatory responses explaining why Community action may be needed. Respondents are requested to provide their views on the need for Community action. REASONS FOR EXISTING OR NEW INTERNAL MARKET BARRIERS. The existing regulatory environment is based on differing national legal traditions: National measures in the area covered by this Green Paper derive from three main families of law; unfair competition law, consumer protection law: and specific legislation for the protection of the wider public interest. The disparity of aims pursued by the Member States, reflects, in part, their differing emphasis on these sources of national law. -^ (i) Unfair competition Law^ The objective of these laws**' is to prevent abuses of the commercial and industrial freedom to compete. Thus, for example, all Member States tend strictly to control, and often prohibit, commercial communications that cause confusion or disparagement (libel and slander), or that exploit or dilute the reputation of competitors (for example, unauthorised use of trademarks). By contrast, the treatment of comparative advertising ( which entails the comparison of products or services with the same products or services offered by another competitor) differs between the Member States. It tends to be most tightly controlled (often entailing bans) in those countries where the definition of "truthful" or "misleading" is most limited in scope. Unfair competition legislation has developed in different ways across the Community, into either a broader law of market behaviour (Denmark. Finland. Sweden) or commercial practices (Belgium) or alternatively, sections of the original unfair competition law have been separated and developed independently (e. g. Portuguese and Spanish advertising laws or the consumer protection laws of Greece). Certain Member States' legislation is based mainly on unfair competition law. Some indeed are tightening their laws. Sweden, for example, is attempting to reinstate the concept of the protection of competitors. (ii) Consumer Protection Law This relatively recent branch of law^ is becoming the source of new regulations in relation to commercial communications in some Member States (Sweden and Greece). The link between these laws and those of unfair competition needs to be kept in mind, since in many instances the laws seek to protect consumers by regulating competition between manufacturers and retailers. Consumer protection law applies to: misleading advertising; improper influencing of the consumer; undercutting; discounts; "free gifts"; and promotional offers. A number of these areas 17 are also covered by Unfair Competition law, which may lead to a conflict of interests between the two objectives; for example comparative advertising may be seen as providing useful information for consumers, but will be seen as undesirable from the point of view of those competitors who are shown to be promoting less advantageous products or services. (Hi) Specific legislation for the protection of the wider public interest. Certain laws have come into being which seek to protect interests of society rather than those of the hypothetical final consumer. These laws have a wide scope, although they may also be product-specific. They include the protection of fundamental human rights, as laid down in the European Convention of Human Rights*5-5 (such as the right to freedom of thought, conscience and religion, the right to respect for private life, etc. ) and extend in addition into the following categories: protection of public health and safety; protection of minors; protection of pluralism in the media; protection from anti-social behaviour (this would cover issues such as taste and decency, and those general laws and self-regulatory codes which seek to safeguard human dignity and prohibit discrimination on grounds of race, sex or nationality); protection of culture and of national spiritual heritage, notably in Greece (within the context of the broadly defined Consumer Protection Law), and in France and Belgium, where specific measures concerning language exist. Specific product laws have been developed with these categories in mind. For example, the various restrictions on the advertising of food , dangerous products (e. g. firearms) and those on commercial communications relating to pharmaceuticals and on medical and para medical services fall under public health and safety as would restrictions on tobacco and alcohol advertising. A variety of differing types and levels of national measures result. The choice of instrument by a Member State will depend on both its regulatory tradition and its current political priorities. The measures taken by the Member States clearly follow a wide range of national policy objectives. These already coincide with some of the public interest objectives recognised under Community law. A scrutiny of current national measures^ leads to three conclusions: (i) Member States justify their legislative initiatives in different ways Similar types of measures in different Member States which deal with the same activity are justified under different public interest objectives. For example, measures concerning misleading advertising relate to several different public interest objectives: consumer protection (the United Kingdom and Ireland); consumer protection and the protection of Industrial Property rights (IPR) (Denmark, France, Austria, Belgium, Luxembourg, Germany, the Netherlands, Greece); consumer protection, the protection of IPR and the protection of professional ethics (Finland); consumer protection, the protection of IPR and the protection of minors (Spain, Sweden and Italy); consumer protection, the protection of IPR and the protection of public health (Italy). Within the Member States, different emphasis is given to the two main objectives A) 18 of consumer and IPR protection; those with a strong tradition of unfair competition law tend to frame laws on misleading advertising from within a perspective of IPR protection. (ii) The level of restriction tends to reflect the objective pursued. According to the objective pursued, the level of restriction-can vary significantly between Member States. For example, sponsorship restrictions are justified under several different public interest objectives across the Member States. Although many seek the protection of pluralism (all except Finland, Luxembourg, Belgium and Austria), others pursue; consumer protection (in Sweden, Finland, the United Kingdom, the Netherlands, Belgium and Austria); the protection of minors (Sweden, the United Kingdom, Ireland, Italy and Spain); the protection of public health (Italy, the United Kingdom, Sweden, Denmark, Germany, France, and the Netherlands); IPR protection (Austria, Belgium, and Sweden) and the protection of public morality (the United Kingdom). The restriction itself varies both in scope of application and degree of restriction. For example, the protection of pluralism leads to a wide application (e. g. all TV/radio programmes) but a limited degree of restriction (i. e. clear identification). By contrast the protection of public health leads to narrowly defined ranges of application (e. g. tobacco or alcohol sponsors) and very high degrees of restriction (including total bans). (iii) Account has to be taken on how a measure may have spillover effects into other objectives. A measure directed at one objective may encroach on and even contradict other objectives. Thus, at a general level, a Member State which feels strongly that commercial communications are unduly influencing consumer's behaviour may regulate the activity restrictively, even though it recognises that this might have adverse effects on competition. The reverse situation may also occur. National regulators are continually having to balance the achievement of one objective with the effects, both direct and indirect, that the relevant measure may have on other policy areas. In view of the variety of legal traditions, and the divergences in priorities and political choices, it is hardly surprising that when commercial communications cross a border they can be confronted with a regulatory framework utterly unlike that of the country from which they originate. This may hinder or make less attractive the exercise of fundamental Internal Market freedom s. ^ A risk of future Internal Market barriers. The Information Society will bring new forms of commercial communications into the market. In response changes in national legislation could lead to re-fragmentation of the Internal Market. Furthermore, given that these communications will tend to be of a cross-border nature, existing regulatory differences which have not posed problems to date could become new Internal Market barriers. Again therefore preventive Community action at a Community level may be required. 19 THREATS TO THE COHERENCE OF COMMUNITY MEASURES. As shown immediately above, commercial communications are covered by various legal viewpoints and a wide range of public interest objectives depending on the relevant Member State. Given the increasingly transborder nature of commercial communication services, these differing regulatory approaches will increasingly confront each other. In the future, at the Community level, this confrontation could lead to pressure to propose Community actions each seeking to pursue one of these public interest objectives in isolation without giving due consideration to the other policies. Such actions, whatever their legality, could be questionable in terms of coherence and efficiency, in particular when they may disproportionately prevent the development of the commercial communications services. For example, in the interests of preventing consumers from being unduly influenced (consumer protection) there might be a call for a ban on all sales promotions and advertising on new on-line services. Since the development of on-line services will largely depend on sales promotions (discounts, concessionary offers, etc. ) and advertising, unconditional assent to this call for consumer protection would have harmful effects on the industrial policy of seeking to develop new Information Society services. If there is to be coherence, all relevant objectives must be taken into account. Internal Market Objectives. Invitation to comment. Analysis of the sources and nature of national laws, together with awareness of the increasingly cross-border nature of commercial communications reveals the reasons why the efficient operation the Internal Market in this field could be impaired. Without a common understanding of the role of commercial communications this problem could worsen with the advent of the Information Society. The Commission therefore concludes that it needs to take action in this respect. Views on this conclusion are requested in the light of the preceding analysis. Other Policy Objectives. The Commission believes that the development of cross-border commercial communications and differing national priorities in their regulation will lead to pressure for it to take action, subject to the application of subsidiarity, to meet the other policy objectives for which it has competence. In order to ensure coherence in its overall approach to this field, it therefore again considers that it must take steps to ensure that its overall policy remains coherent. Respondents views are requested on the need for Community action in the other policy areas listed in this section. 20 PART III. EVALUATION OF SPECIFIC AREAS FOR COMMUNITY ACTION Summary A preliminary comparative review of the disparities between regulations identified as posing possible Internal Market problems suggests that any Community action must be undertaken on a case-by-case basis following a thorough examination of the proportionality of measures. A list of priority areas requiring attention needs to be drawn up and steps must be taken to prevent new barriers from arising, in particular as a result of the Information Society. A PRELIMINARY REVIEW. The legal reviews and survey results indicate that a number of measures dealing with specific types of commercial communications vary considerably across Member States particularly in respect of type and degree of restriction. Measures run from total bans through restricted or limited bans to no bans whatever. This unevenness, and the Internal Market problems that it could give rise to are best illustrated by the following preliminary review of key types of bans and/or restrictions on commercial communication services. The Commission wishes to stress that the purpose of this preliminary review is to provide a general description of the existing regulatory framework in the Union and the problems that interested parties perceive within it. In this manner the Commission wishes to stimulate debate and encourage respondents to provide further views and information to help it focus on key problem areas. The survey results do not prejudge the Commission's position as to the question of whether these identified barriers are restrictions within the meaning of Article 59 or whether they infringe the latter. It will be subsequent to the responses to the Green Paper that the Commission will be able to consider, on a case by case basis, whether there are obstacles to the functioning of the free frontier area; whether these obstacles are compatible with the Treaty and whether secondary legislation could be needed to address such restrictions under either Articles 30 or 59 of the EC Treaty. Likewise in the preliminary review that follows, due reference is given to Community secondary legislation in the form of existing and/or proposed Directives. Again, it should be noted that the views of respondents are not to be taken to be those of the Commission at the current stage of the launching of this consultative process. Ci) Misleading Advertising: The wide differences in national measures in this area are reflected in the Directive on misleading advertising^. Certain differences remain between Member States, which to some extent may be explained by the directive's minimal harmonisation or by its definition of "misleading", which some survey respondents claim is lacking in precision. But the different degrees of restriction arise too from different national definitions of "misleading". In Member States where the definition is narrow, advertising may be banned which, in another Member State, would precisely be seen as informative advertising. Survey results suggest that these 21 differences in interpretation across a number of Member States are creating real barriers to the flow of advertising services. Measures which regulate the advertising of the professions (such as lawyers and doctors) seek to protect the consumer from being misled. They vary from a total ban on advertising, often- imposed by self regulation, as for example in the United Kingdom in respect of barristers^7 and Belgium, to limited restrictions in other countries such as in France, where Bar Associations forbid advertising by individuals, but not by the profession as a whole. Survey respondents claim that such differences prevent trans-border commercial communications. This problem will become more widespread as the possibilities for offering such services at a distance increase with the advent of the Information Society. Numerous users of commercial communications also complain that they cannot use comparative advertising in certain Member States, and are therefore forced to redesign entirely their commercial communication campaigns in those territories. The complaints focus on Germany, Belgium, France and the Netherlands. On this, the Commission has proposed that comparative advertising should be permitted as long as it is based on objective comparisons that are not used to denigrate the trademark or reputation of a competitor^. At the level of the Council, political agreement on this proposed directive was reached in November 1995 and the formal adoption of a Common Position by the Council is expected imminently. Cii) Price advertising: discounts, undercutting etc. A wide divergence in degrees of restriction characterises this area. For examlpe, Germany, under its rebate law (Gesetz Ober Preisnachlasse (RabattG)), limits cash discounts to "end" consumers to 3%, and the advertising of special offers is also restricted. Austria, Belgium, and Italy also have relatively strict regimes (often limited bans), whilst France has limited restrictions. Other Member States generally permit price advertising, subject to restrictions linked to the general Misleading Advertising provisions and those against anti-competitive practices such as dumping. The Scandinavian countries, whose legal tradition is far more closely linked to consumer protection than to legislation on unfair competition, tend to^ encourage such advertising. For example, Swedish law promotes comparative price advertising between traders. A large proportion of respondents felt that the measures were so disparate that they effectively prevented any form of trans-border campaign using this technique. A number of specific examples were given, such as the extremely detailed and different regulations on trading stamps" and discounts in Greece, Portugal, Spain and Italy, and the effective ban on "three for the price of two" campaigns in those countries with very low value thresholds, such as Germany and Denmark. 22 (iii) Intrusive advertising: telephone/mail advertising Measures in respect of "cold-calling" (unsolicited telephone advertising) vary in degree of restriction from no specific measures (Spain) to limited bans (e. g. in Denmark, where cold- calling is only permitted for books, subscriptions to newspapers and periodicals, and insurance contracts, although resulting orders are not legally binding), through to total bans (e. g. in Germany, where telephone solicitation is not allowed even if individuals are first informed in writing). In respect of direct mail, the Netherlands (through a self regulatory code) and Italy have the most restrictive measures (often bans). The Council has recently reached a common position on a proposed Directive in respect of distance contracts^ which harmonises consumer protection provisions, to allow for the development of trans-frontier distance sales techniques. However, Member States may apply stricter provisions in the interest of consumer protection. Another relevant Directive has recently been adopted by the Council70, on data protection. It will allow the free circulation of personal data, essential for the efficient operation of the European direct marketing business, on the basis of a common set of rules protecting individual privacy. In particular individuals are guaranteed the right to "opt out" of the use of their data for marketing purposes. Respondents to the survey specifically identified the problem of differing regulations, which they claimed put obstacles in the way of effective trans-border direct marketing. Consumer interests highlighted the problems arising from non-domestic direct mail offers. Civ) Intrusive advertising: promotional gifts/offers and prize competitions The measures relating to promotional gifts and offers again differ greatly in form and restrictive effect. In Germany the practice is heavily restricted. In France "free of charge" gifts are banned; couponing (for example "money off next purchase" offers) are regulated in a less restrictive manner. Belgium bans all tie-in offers (for example, the possibility of buying a product/service at a reduced price after making a commitment to future purchases), whereas in the Netherlands (through self regulatory codes) such offers are permitted, although subject to restrictions7^. Denmark has similar provisions requiring that promotions be of low value, and that the gift must be closely associated with the product purchased (as in the Dutch system7-2), although couponing is permitted. Sweden and Finland have a less restrictive approach to this activity, although there are restrictions in relation to alcohol. The remaining Member States have more liberal approaches towards sales promotions, but even here certain peculiarities exist, such as (a) the manner in which all such promotions in Italy have to be agreed to by the Ministry of Finance and (b) the specific regulation on trading stamps/coupons found in the United Kingdom. As with promotional offers, there tend to be significant differences in relation to prize competitions. These range from broad bans, for example, in Denmark, Belgium and Finland where games of pure chance (lotteries) are generally prohibited, and bans on lotteries without State permits (e. g. in the Netherlands or in Italy, where the Ministry of Finance must be notified 23 before any lottery is launched), to restricted bans such as bans on games involving stakes or requiring purchase for participation (e. g. France and Germany). Other detailed restrictions relate to the types and values of prizes7-*. The survey results for both sets of activities made reference to the very marked differences in regulations across the Community, and the barriers created. The common complaint from the detailed commentaries was that it was impossible to run any form of trans-border competition because of the very detailed and different nature of prize and lottery rules, (v) General media and "carrier" restrictions The levels of restriction vary significantly in relation to television advertising from no advertising (for example, the BBC in the United Kingdom) or an advertising monopoly (in Belgium-Flanders and Denmark) through to those Member States (such as Greece and Portugal) who have copied the provisions of the "Television Without Frontiers directive" (TVWF)7^ ; i. e. a maximum of 15% daily and 20% of advertising spots per hour. This directive provides for a minimal harmonisation clause which allows Member States to apply stricter or more detailed rules to the broadcasters under their jurisdiction. For broadcasters, the Directive has the advantage of ensuring that they only have to comply with the advertising measures applicable in the Member State of their establishment. It is clear, however, from the survey results that the adoption of stricter measures by the Member States is seen as creating barriers to the free movement of audiovisual advertising as such. Respondents to the survey, representing a wide variety of interests, raised both specific and general points. In general, divergence of national practices was seen as problematic, and certain States were criticised for being over restrictive. Supply restrictions, such as certain monopoly situations were criticised (e. g. Denmark and Belgium-Flanders). Extreme variations in the permitted advertising time were felt to lead to problems in planning and executing trans-border media buying campaigns. Apparent restrictions on the sales of airtime into neighbouring "overspill" markets (into which the signal either naturally falls or is retransmitted by cable) were felt to be a regulatory problem. Teleshopping operators criticised the classification of their programmes as advertisements. Likewise the producers of "infomercials" (i. e. short promotional product presentations) objected to the fact that broadcasters cannot sell them "downtime" (i. e. programming periods which are either replaced by the test card or have very low audience ratings) because of their categorisation as advertisements. Specific points were made about restrictions, particularly in France, preventing certain sectors from using TV advertising. (vi) General sponsorship restrictions Such restrictions apply to both TV and event sponsorship. Restrictions in this area are often detailed and disparity between the Member States is large. Aspects of sponsorship tightly controlled (or indeed banned) in some countries are treated not as requiring regulation at all in others. The difference extends as far as the applicable tax regime. The TVWF directive lays down certain conditions on sponsoring TV programmes (Article 17), which have been 24 supplemented in many cases by the Member States either by legislation or through self regulatory codes. Respondents to the survey were concerned about the lack of information on the relevant codes or laws, in view of the significant divergence of measures. The general opinion was that, although certain measures were necessary, the differing, and sometimes diametrically opposed measures, created problems. In events sponsorship, the Netherlands was singled out as having restrictive measures (often such activities were effectively banned), whilst for broadcasting the United Kingdom and Denmark were felt to be restrictive. (vii) Product restrictions: commercial communications for tobacco Particularly restrictive regimes were felt to exist in: France which only permits advertising at the point of sale, and bans all reference to trademarks/brands in other product/service categories; Finland, which permits advertising only in foreign publications not specifically linked to tobacco issues; Italy, which only allows for references to brands/trademarks when they are used to promote other product/service lines; Sweden and Ireland, which only permit advertising in certain publications. All Member States have a ban on TV7-5 , and radio advertising (except Spain and the United Kingdom where radio advertising is permitted). TV sponsorship is also banned in all the Member States. A ban is also apllied to radio sponsorship in most Member States. Measures on the Press differ across Member States. In Belgium there is a targeted ban on such advertising in publications aimed at children. In Germany a more general provision prohibits any advertising of tobacco that would incite children to smoke. Likewise, in the United Kingdom, publications aimed at children cannot carry such advertising, and there are voluntary agreements on limitations on outdoor advertising in the neighbourhood, for example, of schools. Most countries also have strict restrictions on the content of permissible advertising. A Commission proposal76, which would harmonise national approaches by imposing a ban for all direct and indirect advertising of tobacco products, is currently under discussion in the Council. , Respondents to the survey did not dispute the need for control, but questioned the spread of restrictions into media and forms of direct marketing not aimed at young people. Certain respondents criticised in particular the broad definition of "indirect advertising" which by including brand diversification prevents the use of internationally licensed brands to launch new non-tobacco products and services. (viii) Product restrictions: commercial communications for alcoholic beverages Three groups of countries can be distinguished. The first group consists of those countries with stringent rules. In Sweden and Finland, spirits and non-light beers cannot be advertised in periodicals or on radio and television. Class II 25 beer77 can be advertised in print but not on audio-visual media. Direct advertising and outdoor advertising are banned. Denmark allows such advertising only in the press. In addition, restrictive measures are found in France and Austria. A second group of Member States (the United Kingdom, the Netherlands, Spain and Portugal) place restrictions (often bans, imposed or voluntary,) on the content and style of TV advertising of spirits (in the Netherlands this covers all alcoholic beverages). Such measures are, however, less restrictive than those in operation in the first group of Member States. (The United Kingdom has recently lifted its voluntary ban on advertising spirits on TV. ) Finally, Member States of the third group generally permit the advertising of alcohol, subject to conditions (on content of such advertising or the audience for whom it is intended). Article 15 of Directive 89/552 harmonised rules on television advertising for alcoholic beverages. A Council Resolution75 requested interested parties to submit views on how to limit and reduce disparities in the other media. The Amsterdam Group7^ responded to this by calling for greater co-operation through self-regulation. Many detailed responses to the survey expressed concern at the extent to which these differences are creating new barriers. It was felt that trans-border campaigns would be legally hazardous, under present conditions. Specific complaints were aimed at measures affecting the advertising of spirits in the audiovisual media, which were said to cause a shift on to price competition, which favoured cheaper "own-label" domestic brands. The spread of restrictive measures was also of concern; radio stations said that restrictions on beer advertising in Germany could reduce their total advertising revenue by 10%. The effect on sports sponsorship was also raised, in the context of bans in France and the Netherlands. (ix) Product restrictions: commercial communications to children The strictest rules are found in Sweden (where advertising, and sponsorship of programmes aimed at children below the age of 12, is prohibited) and in Greece (where TV advertising of toys to children is banned between 7. 00 a. m. and 10. 00 p. m. is banned). Generally there are specific (often differing) measures aimed at ensuring that children are not excessively influenced by advertising (mainly related to the content or standard of such advertising). Provisions also apply to sponsorship of sports events. At the Community level, the rules on TV advertising are co-ordinated to the extent needed to ensure the free circulation of television broadcasts by Article 16 of the TVWF directive. Generally, the survey results highlighted the variations between Member States, and the problems resulting from the method of applying local copy clearance to such advertising. Specific problems were raised in relation to bans on toy advertising in general, and for specific types of toys (in Germany and Denmark). Concerns were expressed about the manner in which such restrictions reduce sponsorship and advertising revenues for children's programmes, and also about the restrictions on the use of sales promotions (merchandising). 26 (x) Product restrictions: commercial communications for food products None of the Member States prohibits such commercial communications, but there are wide differences in the complexity of codes or laws that regulate the contents of such advertising, particularly with respect to claims. Certain differences in approach are interesting, the first being Member States extending labelling measures into advertising ( notably Germany, Austria, the United Kingdom, Ireland and the Netherlands) and those that limit them to "pack" display (i. e. restrictions that relate only to the packaging of products). These countries sometimes have restrictive content provisions; for example, in Belgium, references to health/illness are banned in such advertising. Community legislation in this area includes the directive on the labelling, presentation and advertising of foodstuffs50. However, the scope of the harmonisation is limited given that Article 15 of this Directive makes it clear that the text applies only to national rules on labelling and presentation and, to commercial communications. The Council Directive on infant formulae5^ contains a minimal clause in in spite of its title, not to provisions relating relation to provisions taken by the Member States in relation to advertising for such products. The survey results have highlighted the barriers resulting from diverse restrictions on baby foods in general. Specific problems highlighted in the replies include; measures requiring the same information content that is imposed "on-pack" to be used for commercial communications (respondents suggest that this prevents the use of common visuals in cross border campaigns); problems relating to very diverse self-regulatory codes and laws for baby foods; very significant differences that cause problems for advertising of confectionery products (for example, requiring additional images of toothbrushes which means that a separate TV advertisement needs to be produced in the relevant country). (xi) Product restrictions: commercial communications for pharmaceuticals: National restrictive measures in this area are complex, but certain general points arise; a group of Member States ban non-prescribed (over the counter : OTC) pharmaceuticals advertising on audiovisual media (including Belgium and Denmark); another group requires pre-notification for OTC advertising (Sweden, Italy and France); and a third group prohibits sales promotions, for these products (including Belgium and France). Respondents complained that, because the lists of prescription drugs and those on the national insurance lists are not the same from one Member State to another, it was only possible to advertise those OTC drugs that were not on either list on a pan-European basis. In addition, specific problems related to information "tag" messages (warning messages about the product), that varied across the Member States. Spain and Germany were stated to have strict requirements, that extended the required length of TV advertisements by up to 25%. Media respondents also stated that these restrictions dissuaded potential advertisers. The length of time required for copy clearance was also raised as a problem. The prohibition of the use of umbrella brands (these are corporate or product type 27 brands which are applied to both non-prescribed and prescribed pharmaceuticals) by some Member States was criticised as it results in the obligation to launch a completely new brand (involving considerable expense). The directive on the advertising of medicinal products for human u s e^ harmonises this matter by banning the advertising of prescribed pharmaceuticals, and of those containing psychotropic or narcotic substances. Member States are permitted to ban the advertising of pharmaceuticals that could be reimbursed under State insurance schemes. Advertising for non-prescribed pharmaceuticals is subject to the need for market authorisation of the relevant product. Prescribed pharmaceuticals may only be advertised in media aimed at medical professionals, whereas OTC pharmaceuticals may be advertised but are subject to stringent conditions. As regards, the rules on TV advertising, these are co-ordinated to the extent needed to ensure the free circulation of television broadcasts by Article 14 of the TVWF directive. (xii) Product restrictions: commercial communications for financial services Although measures in this sector are generally restrictive, there are significant differences between each of the Member States. For example, the details required in relation to financial service "products" differ greatly. These provisions are extremely detailed, being contained both in laws and in self-regulation. Community legislation tends to concern the right to establish branches and offer services in the other Member States. However the directives in this area allow Member States to impose their differing national rules justified by the "general good" on the commercial communications of such companies. (For example; Article 41 of both the third life insurance5-* and third non-life insurance directives5^, Article 44(2) of the Council Directive on the co-ordination of laws, regulations and administrative provisions relating to the undertakings for collective investment in transferable securities (UCITS)5-5 and Article 21(1) of the Second Banking Directive56). From the survey responses, it was clear that the disparity between the measures prevented the development of trans-border commercial communications services. Copy clearance (pre-vetting of Press and TV advertisements) is required in some Member States (e. g. in Italy prior approval by the national supervisory commission for businesses and the stock exchange (CONSOB) is required for investment advertising, including advertising of financial products and in the UK it is an offence in the Financial Services Act of 1986 to issue an investment advertisement which has not been approved by an authorised person) and not in others. It was suggested that the intricacy of detail of the relevant laws and codes was making their interpretation difficult and thus resulting in inconsistencies between positions taken in specific cases. This was said to lead to significant legal uncertainty as to what could or could not be undertaken in this market. (xiii) Restrictions on commercial communications for reasons related to societal values This area covers such diverse subjects as political advertising and issues of "taste and decency". In relation to all these areas, both the levels of restriction and the measures themselves vary enormously across the Member States. For example, political advertising in the United Kingdom 28 is banned for audiovisual media (this applies to both advertisers, and advertising content). This ban stems from a self regulatory code. However, it does not apply to the press or to outdoor advertising. In Finland, by contrast, political advertising is permitted on television. Article 12 of the Television Directive (89/552/EC) was considered to incorporate the essential features of the rules generally accepted in the Member States by the circles concerned. It was not, therefore, considered necessary to ban advertising for any sector or issue (other than for tobacco and prescription drugs) but rather to apply controls on its content and standard. Respondents to the survey covered many different issues. With respect to Sex discrimination the use of the female body in advertising is strictly controlled in certain Member States (such as the United Kingdom, the Netherlands, Spain and Denmark). In respect of sanitary products and contraceptives, restrictions differ in relation to showing the product, and the timing of such advertising. Political advertising is strictly controlled on audiovisual media in relation to political parties. However, respondents raised the issue of wide interpretations of "political" advertising in certain Member States which prevented charities and pressure groups from advertising (such as the United Kingdom and Germany). As for the protection of the professional ethics of commercial communications respondents were concerned that certain regulations (notably self-regulatory codes) in the area of taste and decency were, in their application, seeking to achieve another objective, viz. the "good repute" or "professional image" of the commercial communications (notably advertising) industry. This was felt to make regulation diverge from country to country such that it became difficult to create trans-border campaigns. The difference in measures affecting public relations was highlighted, despite the existence of an agreement between national PR trade associations to a common international code. For reasons of language/cultural protection certain Member States were identified as imposing language restrictionsthat created Internal Market barriers (notably Belgium and France). The key finding arising from this preliminary review is that there is a growing divergence between certain Member States in the way in which they develop their national regulatory frameworks. It has shown how Member States, when regulating commercial communications, pursue a wide range of policy objectives which, at times, rely on approaches that are not entirely coherent or indeed contradictory with those adopted by other countries. This leads to different types of regulatory measures as well as differing levels of restriction and the laws and codes may be applied in such a way as to impede the flow of cross border commercial communications. T HE NEED FOR A FURTHER REVIEW OF POTENTIAL REGULATORY BARRIERS. What is the impact of the significant variations between national commercial communication regulations on the functioning of the Internal Market? Specific national restrictions, in themselves, are not at issue. Instead the concern is the application of these restrictions to services originated in other Member States. Intervention at Community level could rely on the i. 29 efficient application of the existing Community law which safeguards the free movement of goods and services within the Internal Market. Alternatively action at Community level could involve harmonisation where the restrictions are justified and therefore create legal barriers within the area without frontiers. The preliminary regulatory review indicates that potential Internal Market barriers arise from the existence of non-discriminatory rather than discriminatory measures based on nationality. To the extent that such measures give rise to impediments of free movement, their compatibility with Internal Market law depends principally on the nature of the objectives these pursue and on the proportionality of the presumed restrictions. Given that the safeguarding of general interest objectives is the key aim of these measures, any assessment of the need for Community action therefore will normally focus on the application of the principle of proportionality. However, the range of potential actions in this field is very wide: the assessment of proportionality therefore requires a case by case approach. Two joint Community actions could nevertheless be required to assist this step by step approach. First it would be useful to have a framework on which the assessment of the proportionality of measures in the field of commercial communications field might be based. A proposal for such a framework is made in Part IV. Second, a more extensive review of the types of measures that could give rise to problems in terms of proportionality would be useful. From the preliminary review three types of national measures have been identified as needing to feature in this review: Category I: Regulatory bans. Certain Member States ban particular types or content of commercial communications which are permitted in others. Such measures could give rise to a problem of disproportionality if applied to services originating in another Member State. Regulatory bans might include: • Regulations banning the use of discounts, loyalty premia and other price discounting forms of commercial communications. These relate to introductory or other price promotional offers (e. g. 10% off), package offers (e. g. "three for the price of two") or loyalty offers (whereby repeat purchase allows the consumer to benefit (for example with coupons) from a price reduction on a subsequent purchase). • Regulations banning the use of concessionary gifts. These cover "free gifts" which are given with the purchase of a product or independently. • Regulations banning broadcasters from selling overspill audiences to media buyers and advertisers. This kind of ban is found within TV/radio licensing procedures and applied to "overspill audiences" which are audiences in neighbouring markets that fall within the footprint of a transmission or via re transmission over a cable network. • Regulations banning the use of certain media by specific categories of advertisers in order to preserve pluralism in other media. Such regulations typically seek to divert certain 30 advertising revenues away from Television to support other media such as the regional press. • Regulations leading to bans in the use of commercial communications for the professions. • Regulations banning advertising on teleshopping channels or on-line services for reasons of protection of pluralism. These typically seek to ensure that TV advertising revenues are not adversely affected. • Measures banning the use of foreign languages in commercial communications. Category II: Horizontal regulatory limitations. Some Member states have chosen to apply strict limitations on general forms of commercial communications. These include: • Regulations limiting the use of discounts, loyalty premiums and other price discounting forms of commercial communications. • Regulations limiting the value and nature of concessionary gifts. • Regulations limiting advertising to children. • Regulations limiting the content of teleshopping or on-line services for reasons of protection of pluralism. • Regulations on media buying limiting the possibilities for cross-border media buying services. • Regulations on misleading advertising limiting competitive advertising. • Regulations limiting the use of brand diversification. • Regulations (other than fiscal) limiting the sponsorship of both events and audio-visual programmes. Category III: Specific regulatory limitations. A number of Member States have applied strict limitations on specific sector or product/service related forms of commercial communications. • Regulations limiting advertising by professions which could severely hamper their provision especially when using the new on-line techniques being developed in the Information Society. • Regulations limiting non-prescribed pharmaceuticals advertising. These measures appear, in certain cases, to prevent the effective use of umbrella brands across borders. • Regulations limiting alcohol advertising. • Regulations limiting commercial communications related to baby foods other than infant formulae. 31 • Regulations limiting commercial communications associated with TV advertising of retailing. • Regulations limiting the use of commercial communications by the financial services sector. T HE NEED FOR AN EARLY NOTIFICATION MECHANISM. Since the advent of the Information Society will lead to an increase in cross border forms of commercial communications that could incite regulatory reactions it could be appropriate to put into place a mechanism aimed at avoiding that a re fragmentation of the Internal Market takes place. A communication proposing a regulatory transparency mechanism for Information Society services will explain how a notification system for such services could help detect and, where necessary, diffuse the pressure to regulate. Such a mechanism could in particular involve an obligation for the Member States to notify their draft legislation (including that pertaining to commercial communication services) to all other Member States and to the Commission for possible reactions. Any problems that are identified could then be analysed in terms of their compatibility with Community law. Invitation to comment. The Commission would wish to receive views and additional information on the regulatory situation in the various areas of commercial communications covered in this preliminary review. The Commission would welcome views on the scope of this proposed review. In particular, the Commission asks respondents to draw its attention to additional Internal Market problems they may be experiencing in this domain and to identify those which require urgent examination. 32 PART IV. PROPOSALS FOR CONSULTATION. Summary. Two proposals are made for improving the Commission's ability to assess the proportionality of national measures that could pose Internal Market problems. The proposals are also intended to help the Commission to ensure that its own proposals are coherent with other policies and proportionate to the problems being tackled. The first proposes the application of a methodology designed to assist the Commission's assessment of proportionality and is intended to combine recognised jurisprudence with a detailed impact analysis. It would only be a tool for a case by case assessment and would be neither an automatic nor mandatory assessment system. The second proposal comprises a set of elements which seek to improve co-ordination and information exchange between the Commission, Member States and interested parties. The effect of the application of these measures could lead, where necessary, to the Commission proposing secondary legislation at a later stage. The previous parts of this Green paper have demonstrated the need, for an efficient assessment of proportionality so that the Community, once a restriction on transborder services has been identified, on a case by case basis, can accurately assess (i) the compatibility of national regulations with Internal Market principles and (ii) the coherence and proportionality of its own initiatives. (This latter requirement also corresponds with the obligation to apply the principle of proportionality as enshrined in Article 3B§3 of the Treaty of the European Union. ) Furthermore, it is evident that for Community intervention to be of the highest quality in this rapidly evolving field the dialogue with all interested parties must be improved. The Commission therefore invites comments on the following proposals: A METHODOLOGY TO DELIVER A MORE UNIFORM ASSESSMENT. According to the case-law of the Court57, the proportionality test requires :first, the verification of the appropriateness of the national restrictive measure vis à vis the pursued objective i. e. // must be such as to guarantee the achievement of the intended aim; secondly, testing that the national restrictive measure does not go beyond that which is necessary in order to achieve that objective; the Court adds that, in other words, the same result cannot be obtained by less restrictive rules. The jurisprudence of the Court has not, as yet, provided more precisely defined elements that would allow the assessment of the proportionality of national or Community measures. The Commission believes that, in the absence of such precision, it would be helpful to develop a methodology which could help to appreciate the proportionality and coherence of national or Community measures in the field of commercial communications. However, it is important to underline that the Commission is not proposing an automatic and obligatory assessment system: rather a number of criteria are suggested which could contribute towards the evaluation of the proportionality of a measure. Indeed, criteria could help in achieving greater transparency and improving the quality of a proposal. This methodology is aimed to be a useful "tool" for policy making. For that reason, it should be stressed that if it is favourably responded to, the Commission would propose that it is applied where useful to enhance efficient policy-making. 33 This methodology could help Member States in designing coherent measures. The same analytical framework could be used for assessing coherence of proposed Community legislation. The proposed methodology would comprise essentially of two steps. First, the main characteristics of the measure could be identified in accordance with specific defined criteria. In turn, these characteristics could be used in assessing the proportionality of the measure or proposal. The approach would thus focus on the set of indices on which the final decision regarding proportionality could be taken rather than on the decision as such. It does not prejudge the outcome. Step 1. The assessment methodology to characterise the measure. The objective of this first step is not to make the proportionality test as such but to set out a complete "picture" of the characteristics of the measure. The aim is not to identify restrictions but to provide a factual overview of all possible effects of a measure in the market in particular on activities that the measure is meart to regulate. The five identified key assessment criteria are as follows: Assessment criterion A. What is the potential "chain reaction" caused by the measure? Essentially this criterion involves an examination of the potential market reactions to a measure. For commercial communications the relevant market forces are centred on three, inter-linked, • groups of economic actors (users, suppliers and carriers)55. Together they make up what can be referred to as the "commercial communications chain" which links the user to the final receiver or viewer of the commercial communications. In any commercial communications activity all three groups will be involved either directly or indirectly. Hence, the assessment must, systematically, cover the linkages between these three groups. The assessment of the reaction through this chain (the "chain reaction") comprises two elements: (i) the identification of the key group that the measure is intended to affect and (ii) the identification of the most likely reactions within the commercial communications chain to the existing or proposed regulatory measure. These factors are fully examined in the Working Document. Within each group of economic actors the following issues will need to be considered: The impact on the user group requires an estimation of the probable type of reaction of users that could result from a restriction applied to a particular form of commercial communications. Of-course each and every sector or firm might be expected to react differently. However, as explained in the Working document (see Table 1 of Part 1), it is possible to identify six typical branding strategies from which logical strategic reactions by users to restrictions on one or other form of commercial communications can be defined. The impact on the suppliers' group requires the assessment of (i) the ease with which different forms of commercial communication services can be combined or substituted for each other, (ii) 34 the scale effects that could be threatened by a measure and (iii) the location of these economies of scale/scope possibilities within the commercial communications sectors (See Table 2 of Part 1 of the Working document). The resulting potential loss of scale or scope economies and substitution effects can then be used to first, measure how the restriction on the targeted type of commercial communications might spill over into the demand for other commercial communication services and, secondly, to assess whether the restriction is such that it reduces the efficiency of the targeted service provision and makes it more costly. Such changes in demand and/or costs of supply would lead to follow-on reactions at the levels of users and carriers. The impact at the level of the "carriers" group requires evaluation of how a commercial communications regulatory measure on a media or cultural/sporting event will effect the behaviour of that carrier. This will depend on the commercial reactions that it will adopt in order to compensate for the resulting restriction (see Table 3 of Part 1 of the Working document). The chain reaction will thus be assessed and the overall impact on the final receiving group (the general public, minors, consumers, etc. ) can be evaluated. Assessment criterion B. What are the Objectives of the measure? It is necessary to identify and specify the target objective of the measure. In addition all other indirectly implied objectives must be considered. For a national measure such identification permits the evaluation of whether the legal principles of proportionality and non-duplication are met. For any proposed Community regulatory action the identification of objectives allows the appropriate legal basis to be determined and permits compliance with the principles of subsidiarity and proportionality to be checked. Any proposed action justified on public interest grounds will almost certainly be targeted at a particular group (minors, consumers, the general public, competitors, distributors etc. ). This group needs to be specified together with the objective which the measure (at national or Community level) is seeking to achieve. The chain reaction needs to be used to identify which target (receiving) group will in practice benefit from the national measure or the proposed Community regulatory action and consequently which kind of objective is actually being pursued. Assessment criterion C. Is the measure linked to the objective? The specifications, definitions, distinctions, criteria etc. that are used to determine the content of the proposed measure should be directly linked to its objective. If they were not, the measure could be presumed to be arbitrary. It would therefore be essential to have access to information regarding: analysis undertaken prior to the measure being adopted; its explanatory memorandum 35 ; the justification of its content ; the context within which it was adopted and all other data on relevant decisional factors. Assessment criterion D. Does the measure affect other objectives? The proposed measure could work against another general interest or Community objective. To measure this the indicator of selectivity could be helpful (i. e. whether the measure is precisely targeted at the objective pursued). The less specific the measure the greater the risk of counter productive effects. The application of the chain reaction of the measure will help assess both the selectivity and therefore adverse effects of the measure. By identifying unwanted potential market reactions a direct check on possible negative effects on other policy objectives can be drawn. (See Table 4 of Part 1 of the Working document). Assessment criterion E. Efficiency of the measure. The final criterion is designed to test whether the specific type and the degree of restriction of the measure are able to achieve the objective. The chain reaction assessment should be used to determine how the target group is affected and whether the key reactions might work against the pursued objective. More detailed information could be collected to allow for an assessment of the level of restriction beyond which the negative reactions would be likely to outweigh the desired reactions. Step 2. Applying the results of the assessment to the decision on proportionality and/or coherence. By knowing the key characteristics of the measure, these five criteria will allow a relevant authority to be in a better position to assess its proportionality and coherence. In relation to national measures, the characterisation of the chain reaction assessment criterion (A) could demonstrate that the objectives met by the measure differ from that or those which are implied (according to assessment criterion (B)): Should these analyses reveal that the objective sought is missed and no other recognised public interest objective can be identified, the measure could be incompatible with Community law. With regard to whether the measure is "appropriate" , the evaluation of the chain reaction (assessment criterion A), "the link with the objective" (assessment criterion C) and "counter productivity" (assessment criterion D) will help to appreciate whether this property has been met. For example, a relevant authority could come to the conclusion that a measure is somewhat loosely linked to the objective, has no counterproductive effect and is relatively efficient. As regards the "level of restriction" part of the proportionality evaluation, the "efficiency" assessment criterion (E) will be crucial in determining whether the level of restriction is really necessary for achieving the intended aim. Finally, as regards the "alternative measures test" &9 the application of the five assessment criteria to competing measures will allow for the identification of the least restrictive measure. In relation to Community regulatory actions, the characterisation of the measure with the five assessment criteria would also assist in avoiding incoherence, in particular counter productivity 36 vis à vis other Community objectives. This should be achieved, when choosing between two measures, by actively seeking and giving preference to that measure which avoids counter productive effects on other Community objectives. Concerning proportionality, the choice should be made in favour of the measure with the lesser restrictive effect on the targeted economic group. In some cases, of course, it may be impossible to avoid using a measure which is incoherent with other objectives or measures. In such cases, the methodology proposed will provide the Commission with a tool assisting it in justifying the proposal. I M P R O V ED CO-ORDINATION AND INFORMATION AT T HE EUROPEAN LEVEL The survey respondents have called for improved information exchange and communication between themselves, the Commission and national regulatory bodies. The analysis of regulations has also shown the differences in approaches between Member States which could give rise to a growing number of European level regulatory problems as commercial communications increasingly cross borders. It follows that improved co-ordination and information exchange at the European level is required if Commercial Communications are to achieve the beneficial roles in the Internal Market and the Information Society that have been set out earlier in this Green Paper. To meet this objective the Commission would propose the following: The Commission proposes to establish a committee to consider commercial communications issues in particular to safeguard an effective dialogue with and between the Member States. This committee would not, obviously, limit the powers of initiative of the Commission, but would assist the Commission in making its actions more transparent through discussing commercial communication issues on the basis of the proposed assessment methodology developed above. In this manner the Committee could help safeguard the coherence of policy initiatives and avoid, where possible, the need to act through the infringement procedure of the Treaty. It would also act as the forum for administrative co-operation in the field of commercial communications in particular allowing for an exchange of information on issues relating to new developments in this field. Given the global nature of the Information Society it would also consider how the Community approach for commercial communications in the European Community could be promoted at the international level^. The Committee would be chaired by a representative of the Commission and would consist of representatives from the Member States' authorities, where necessary, accompanied by representatives of self-regulatory bodies. The Commission would periodically report to this committee on relevant information. At the Commission's request the committee would convene meetings on specific issues. The first series of meetings of the Committee would consist of an exchange of views on sales promotions and sponsorship that were identified in the surveys as those forms of cross border commercial communication services facing the greatest difficulties. More generally, the Committee would begin to consider how existing commercial communications regulations may impact on the development of electronic commerce. 37 The Commission also recognises that although market data are easily found for certain commercial communication services (e. g. national advertising statistics) other information (for example on cross-border commercial communications in general, direct marketing, sales promotion and sponsorship services) required for efficient policy appraisal are at times not collected or difficult to have speedy access to. Given that certain commercial (notably in the field of media buying and market research), academic and consumer interests collate and work with the relevant market information and that these would have an interest in regulatory data, they should be encouraged to participate in the European commercial communications policy process in so far as their inside knowledge would enhance the effectiveness of this policy. The Commission will therefore seek to improve exchange of data between these various organisations and the national and European regulatory authorities. Interested parties are also calling for a single contact point able to provide help in identifying which Directorate General is responsible in the Commission for particular enquiries regarding its Commercial Communication policies. A co-ordination/contact point is needed to maintain a general overview of activities and developments in this area. In order to meet these objectives the contact/co-ordination point could rely on an on-line commercial communications contact network. This would complement the existing commercial communications newsletter^. The network would encourage the development of two-way contacts between interested parties and the Commission. In this manner the Commission's work could have a direct source of information when required. The management and resources required for such an on-line communications network will be the subject of a feasibility study which the Commission has launched. The Commission would welcome views on: Invitation to comment. The proposed assessment methodology. The proposal to improve co-ordination and information. 38 Reference to be inserted when this document will have been registered. Confidentiality: Unless they clearly specify otherwise, replies to this consultation received by the Commission will not be treated in confidence and may therefore be disseminated outside the Commission. Persons to contact: Further information should be requested from and/or responses should be sent to Ms Margot Frohlinger, Head of Unit E/5 (The Media, Commercial Communication and Unfair Competition) in Directorate General DGXV (Internal Market and Financial Services) on (+ 32-2) 295 93 50 or 296 01 10, or Mr Jean Bergevin, on (+32-2) 295 16 39 or 296 01 10. Fax: 295 77 12. The postal address is: European Commission, DGXV E-5, C-107 8/59, 200 rue de la Loi, B-1049 Brussels. The E-mail address is : E5@ dgl5. cec. be If you wish to receive another language version of the Green Paper please fax your request to Ms hauler, Ms Van de Vorle or Ms Volon on 295 77 12 or write or e-mail to the above addresses specifying the language you would prefer. 3 4 •> 6 7 8 9 '0 11 "Making the most of the Internal Market": Strategic Programme. Communication from the Commission to the Council 22. 12. 93 COM(93) 632 final. Europe's way to the Information Society. An Action Plan. Communication from the Commission; 9. 8. 94 COM(94) 347final. This definition covers all forms of remunerated commercial communication services irrespective of the nature of the paying company or organisation. Thus, for example, a political advertising campaign would be included whereas party TV political broadcasts imposed by law and for which political parties or organisations do not pay would be excluded. This is because (i) packaging and labelling regulations should be kept separate from non-pack commercial communication regulations and (ii) the pack is typically part of the in-house manufacturing process rather than a part of that element of the marketing mix which is sub contracted to a specialist service provider as is the case for the commercial communication activities covered by this Green Paper. In the same manner, sales representatives have also been excluded from the scope of this review. EAAA: European Advertising Agencies'Association. CERP: Comité européen des relations publiques. For 1991, the EAAA estimated 155,000 were employed in the European Community. Other sources mention a figure of 266,088 employed in advertising and direct marketing in the same year in only eight of the Member States (B, DK, D, E(1990), F, Eir(1988), Lux, NL) (Eurostat, Mercure). For Belgium and Germany this figure includes only the number of employees. A Eurostat study of 1994 on the advertising sector reports that in 1993 the 15 largest European agency networks together employed around 40,000 people in the whole of Europe. CERP estimates 6,282 employees and 13,670 freelance consultants were active in the public relations sector in 1993. See Part 1 of the accompanying Working document. The Max Planck Institute was commissioned to provide the Commission with detailed country reports for all fifteen Member States. These examined the source and nature of national restrictive measures. They were then summarised in a comparative study by the consultants. This comparative report (in German) is available from the Commission's services. (The national regulatory tables provided in Part II of the Working document are based on this study. These tables classify and compare existing national measures according to their national policy objectives and the , Community general interest objectives that they seek to safeguard). 12 This was undertaken by the Commission's services and is reproduced in Part I of the Working document. 39 '•* ï4 The results of these are summarised in a publication available from the Commission's services. This was an open postal "call for comment" sent out by the services of the Commission. *•* Five questionnaires were sent out to the five groups of interested parties, viz. : "users" of commercial communications, "suppliers" of commercial communications, "carriers" (media and other carriers of such services), consumer associations and relevant self-regulatory bodies. A detailed analysis of the breakdown of these responses has been provided in the first issue of a Journal sponsored by the Commission entitled "Commercial Communications" which is available on request from the Commission's services. Some 2,785 questionnaires were issued directly by the Commission: in addition numerous Trade Associations duplicated copies to send to their members. 16 *' 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 The detailed results of these surveys (in English) are available on request from the Commission. 5,200 users, 530 suppliers, 47 carriers , 15 national self-regulatory bodies and 27 consumer associations were contacted. Of these 532 users, 132 suppliers, 20 carriers, 10 self-regulatory bodies and 10 consumer associations responded. C-286/81 Re Oosthoek's Uitgeversmaatschappij 1982 (4) ECR 4575 of 15. 12. 82. C-362/88 GB-1NN0-BM v Confederation du commerce Luxembourgeois 1990 (2) ECR 1-667 of 7. 3. 1990. » C-126/91 Scutzverbandgegen Unwesen in de Wirtschafrt e. V. v Yves Rocher GmbH 1991 (3) 1 - 2361 of 18. 5. 93. Case C-267 and C-268/91 Re Bernard Keck and Daniel Mithouard 1993 (7) ECR 1-6097 of 24. 11. 93. C-267 and C-268/91 of 24. 11. 93, Paragraph 16 cited above. For example: C-292/92 Ruth Hùnermunde e. a. v Landesapothekerkammer Baden-Worttemberg 1993 (8) ECR 1-6787 of 15. 12. 93 ; Société d'Importation Edouard Leclerc-Siplec v TF1 Publicité S. A. and M6 Publicité 1995 ECR 1-179 of 9. 02. 95. C-352/85 Bond van Adverteerdeers (vereniging) v The Netherlands 1988 (2) ECR 2085 of 26. 04. 1988 In this case the Court explained that for the application of free movement of services it is necessary first to identify the services in question, secondly to consider whether the services are transfrontier in nature for the purposes of Article 59 of the Treaty and lastly, to establish whether the services in question are services normally provided for remuneration within the meaning of Article 60 of the Treaty. (Paragraph 12). See, for example; C-l55/73 Re Guiseppe Sacchi 1974 (1) ECR 409 of 30. 04. 1974, C-52/79 Procureur du Roi v. Marc JVC Debauvee and Others 1980 ECR 833 of 18. 03. 1980. C-384/93 AI pine Investments BVv. Minister van Financiën ECR 833 of 10. 05. 95. Op cit, Paragraph 28. See "Commission interpretative Communication concerning the free movement of services across frontiers " OJC 334, 9. 12. 93. C-288/89 Stichting Collectieve Antennevoorziening Gouda and Others v Commissariat voor de Media. "Mediawet Case" 1991 (1) ECR 4007, paragraph 13. C-279/80 Re Alfred John Webb 1981 ECR 3305, paragraph 19; Joined Cases 62/81, 63/81 Seco SA and Desquenne and Giral SA v Etablissement d'Assurance contre la Vieillesse et l'Invalidité 1982 (1) ECR 223, paragraph 14; C-l 13/89 Rush Portuguesa Lda v Office National d'Immigration 1990 (2) ECR 1-1417, paragraph 18. C-220/83 Commission v France 1986 (4) ECR 3663, paragraph 20. C- 62/79 S. A. Compagnie Générale pour la Diffusion de la Television Coditel and Others (1980) ECR 881, paragraph 15. Case C-180/89 Commission v Italy 1991 (2) ECR 1-709, paragraph 20; Case C-l54/89 Commission v France 1991 (2) ECR 1-659, paragraph 17; Case C-l98/89 Commission v Greece 1991 (2) ECR I- 72 7, paragraph 21. 40 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 Joined Cases 110 , 111/78 Ministère Public and Chambre Syndicale des Agents Artistiques et Impresarii de Belgique, A. S. B. L. v Willy van Wesemael and Others "Van Wesemael Case" 1979 (1) ECR 35, paragraph 28. C-288/89, cited above, in note 29 paragraph 23. C-379/87 Anita Groener v Minister for Education and City of Dublin Vocational Committee 1989 (4) ECR 3967 (28. 11. 1989). C-384/93 Alpine Investments BV. para 45, cited above in note 15. C-288/89 cited above in note 29, paragraph 15. Communications Nos 359/1989 and 385/1989 Ballantyne Davidson Mclntyre, decision of 31. 3. 93. CCPR/C/47/D/359/1989 and 385/1989/Rev. 1. See cases markt intern Veralg GmbH and Klaus Beerman, Series A No 165, 20. 11. 89 and Groppera Radio AG and others V. Switzerland - Series A no. 173 of 28. 03. 90 In recent case law, it appears that the European Commission of Human Rights considers that there is no doubt that advertising is protected by Article 10. In two recent decisions on the admissibility of Applications to the European Court of Human Rights, under the ECHR, the Commission took the view that a restriction on advertising would fall under Article 10 ECHR (Decision of September 5 1991 re Application no. 16632/90 (Colman v. UK) andDecision of December 2 1991 re Application no. 15450/89 (Cosado Coca v. Spain)). C-260/89 Elleniki Radiophonia Tiléorassi AE v Dimotiki Etaireia Pliroforissis and Sotiros Kouvelas 1991 ECR 1-2925 of 18. 06. 91, Paragraphs 41-44. In the light ofC 4/73 J. N old, Kohlen v BaustoffgroBhandlung v Commission "The Nold Case" 1974 (1) ECR 491 paragraph 13. Council directive 84/450/EEC of 10. 9. 84 relating to the approximation of the laws, regulations and administrative provisions of the Member States concerning misleading advertising. Council directive 79/112/EEC, of 18. 12. 78, on the approximation of the laws of the Member States relating to the labelling, presentation and advertising of foodstuffs for sale to the ultimate consumer, OJ No L 33, 1979. Council Directive 92/96/EEC of 10. 11. 92, on the co-ordination of laws, regulations and administrative provisions relating to direct life assurance and amending Directives 79/267/EEC and 90/619/EEC (third life assurance Directive), OJ No L 360, 1992. Council Directive 92/49/EEC of 18. 6. 1992, on the co-ordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/35'/'/EEC (third non-life insurance Directive), OJ No L 228, 1992. Council directive 85/611/EEC of 20. 12. 85 on the co-ordination of laws, regulations and administrative provisions relating to the undertakings for collective investment in transferable securities, OJ No L 375, 1985. Second Council Directive of 15. 12. 89, on the co-ordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions and amending Directive 77/780/EEC. OJ No L 386, 1989. Council directive 92/28/EEC, of 31. 3. 92, on the advertising of medicinal products for human use, OJNo LI 13, 1992. Directive of the European Parliament and the Council 95/46/EEC of 24. 10. 95 on the protection of individuals with regard to the processing of personal data and on the free movement of such data. Council directive 89/552/EEC of 3. 10. 89, on the co-ordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities. OJ No L 298, 1989. MRB International were asked to approach a representative sample of each of the five audiences that were mailed the "call for comment. " All the "users" covered by this survey were offices of companies who traded across borders and who had control over a significant proportion of marketing budgets for commercial communications in their non-domestic markets. 41 5" 5* 5* 5 3 *4 55 56 5' 5° 59 60 61 62 63 6^ 6^ 66 67 68 69 This and following introduction; more extensive summaries of the results are provided available from the Commission. summaries are drawn from the results of both surveys described in a separate in the document "Below the line" refers to commercial communication services media space. Thus, the term covers all forms of commercial communications that do not involve the purchase of except for advertising. As an example Forrester Research expects purchases over the Internet 1994 to $6. 9 billion by 2000. to grow from $240 million in See Part 1 of the Working document. For further information, see COM(94) 319 final. the same basic aims, such as the "cable and Other Directives are complementary and pursue satellite" copyright Directive adopted in 1993 and the transmission standards Directive adopted in 1985. for Community cultural action" Communication to the "New prospects Council, the European Parliament and the Economic and Social Committee, COM(92) 149 final of 29. 4. 92. the Commission from European Committee on business, the arts and culture (CEREC) (operational since March 1991). The principle does not apply to Internal Market measures because powers under Article 100 A, so only the issue of proportionality arises (Article 3B(3)). the Community has exclusive This is shown in the commissioned regulatory review. Copies, in German, of this comparative study will be made available on request. The report was undertaken by Professor Schricker of the Max (Vergleichende Planck Institute (Munich) for the Commission. In addition to the comparative report Analyse "Commercial der Communication" in den Mitgliedstaaten der EWG sowie in Finnland, Norwegen, Osterreich, der Schweiz und Schweden) seventeen more detailed country reports were prepared for the Commission covering each of the Member States as well as Norway and Switzerland. Selbstkontrollregelungen im Bereich gesetzlichen und der In Anglo-Saxon within the context of the Law of "Tort". law the term unfair competition is rarely found but these objectives are pursued industrial This branch of law dates back to the middle of the nineteenth century. Following revolution, rules relating to trades were replaced with laws that would prevent abuses of the newly established commercial and industrial freedom to compete. the U dates back to the I960's and 1970's in most Member States. ECHR: signed in Rome on 4 November 1950 and ratified by all the Member States. See Country Tables provided in the accompanying working document. This has been indicated by the survey results summarised in Part I. in recitals this directive proposed Council Directive 84/450/EEC of 10. 9. 84, relating to the approximation regulations and administrative provisions of the Member States concerning misleading advertising. OJ No L that at a later stage both unfair advertising 250, 1984. Although and comparative advertising should be considered by the Community, is of the belief that the very wide span and lack of agreement on the term "unfair" would prevent any useful intiatives on horizontal action being accomplished national certain more narrowly defined regulations might encompass comparative advertising has been addressed as explained forms of commercial interpretation in in the text. communications of "unfair". Meanwhile, in this domain. This does not exclude specific the Commission that certain of the laws, their Solicitors are now permitted to advertise in the United Kingdom. Article 3 bis. Proposed revision of directive 84/450/EEC on misleading advertising comparative advertising. to account for Common Position (EC) No 19/95 of 29. 6. 95 with a view to adopting of consumers in respect of distance contracts. OJ No C 288, 30. 10. 95. the Directive on the protection 42 70 '* '* 73 74 '5 76 77 78 79 80 81 82 83 84 85 86 87 55 89 Directive of the European Parliament and the Council 95/46/EEC of 24. 10. 95 on the protection of individuals with regard to the processing of personal data and on the free movement of such data. Obviously, such practices, if used in a manner to restrict competition, could fall foul of Article 86 of the Treaty. This was recognised as a justified restriction by the ECJ in the Oosthoek judgement (see footnote 18 above). In its Schindler Judgement (Case C-275/92, (1994) ECR 1-1039) the ECJ ruled that bans on the cross-border promotion of "major" (in this case State or regional State) lotteries could be justified because of the need to protect social order and to prevent fraud. Council directive 89/552/EEC of 3. 10. 89, on the co-ordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities. OJNoL298, 1989. The Television Without frontiers directive (89/552/EEC) harmonised the ban on TV tobacco advertising and TV sponsorship which already existed across the Member States at the time of its adoption. Modified Proposal for a Council Directive on the Advertising of Tobacco Products (COM (91) Final - SYN 194). This refers to beer with an alcohol content of above 1. 8 and up to 2. 8% and fermented apple juice (cider). Resolution 86/C184/02 of the Council of Health Ministers of the European Community on Alcohol Abuse. An association of 14 of Europe's major companies in the alcoholic drinks sector. Directive 79/112/EEC, of 18. 12. 78, on the approximation of the laws of the Member States relating to the labelling, presentation and advertising of foodstuffs for sale to the ultimate consumer, OJ No L 33, 1979. Directive 91/321/EEC of 14. 5. 91 Directive 92/28/EEC, of 31. 3. 92, on the advertising of medicinal products for human use, OJ No L 113, 1992. Council Directive 92/96/EEC of 10. 11. 92, on the co-ordination of laws, regulations and administrative provisions relating to direct life assurance and amending Directives 79/267/EEC and 90/619/EEC (third life assurance Directive), OJ No L 360, 1992. Council Directive 92/49/EEC of 18. 6. 92, on the co-ordination of laws, regulations and administrative provisions relating to direct insurance other than life assurance and amending Directives 73/239/EEC and 88/357/EEC (thirdnon-life insurance Directive), OJNoL228, 1992. Council Directive 85/611/EEC of 20. 12. 85, OJ No L 3 75, 1985. Second Council Directive of 15 December 1989, on the co-ordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions and amending Directive 77/780/EEC. OJ No L 386, 1989. See Section I. See definitions in the Introduction. This final assessment is similar to the previous one. It differs only in so far as the measure used for evaluation is not the specific restrictive measure under assessment as such but another alternative measure which could result in a less restrictive effect: The objective of this step is therefore not to analyse the restrictive measure but to identify other appropriate measures that could meet the objective whilst being less restrictive. 90 In this respect, when proposing initiatives, the Commission and the Member States should always give due regard to the trade liberalisation commitments taken in the GATS Treaty and their application by the WTO. 43 91 The Commission has already launched the newsletter on commercial communications to begin to develop these contacts. By relying on an independent editor and giving equal weight to information and views from the Commission's services and interested parties, this newsletter encourages participants to draw to the attention of the Commission, the problems arising within the Internal Market for commercial communications. The newsletter was launched before this Green paper so that interested parties could learn of the proposed new policy approach. "Commercial Communications" is a bi-monthly publication. Enquiries on this newsletter should be made to the Editor (Fax (00 44) 1 273 772727). 44 ISSN 0254-1475 COM(96) 192 final DOCUMENTS EN 10 Catalogue number : CB-CO-96-221-EN-C ISBN 92-78-04000-2 Office for Official Publications of the European Communities L-2985 Luxembourg

PROTECTING THE COMMUNITY' S FINANCIAL INTERESTS - THE FIGHT AGAINST FRAUD - ANNUAL REPORT 1995

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 08. 05. 1996 COM(96) 173 final PROTECTING THE COMMUNITY'S FINANCIAL INTERESTS THE FIGHT AGAINST FRAUD ANNUAL REPORT 1995 (presented by the Commission) CONTENTS INTRODUCTION CHAPTER 1: PROGRESS ON THE HORIZONTAL LEGAL INSTRUMENT IN 1995 (FIRST PILLAR AND TITLE VI) Section 1: INTRODUCTION AND ASSESSMENT Section 2: 1. 2. Section 3: 1. 2. 3. FIRST-PILLAR ACTIVITIES - IMPROVING THE COMMUNITY'S LEGISLATIVE FRAMEWORK Regulation on the protection of the Community's financial interests The proposal for a Regulation concerning on-the-spot checks and inspections TITLE VI ACTIVITIES - MAKING THE VARIOUS NATIONAL LAWS MORE COMPATIBLE WITH ONE ANOTHER The Convention Additional Protocol to the Convention on the protection of the European Communities' financial interests (second instrument) - on judicial cooperation Protocol on corruption amongst officials Section 4: DEVELOPMENTS CONCERNING ORGANIZED FINANCIAL CRIME CHAPTER 2: DEVELOPMENTS IN THE REGULATORY FRAMEWORK IN 1995 Section 1: OWN RESOURCES Page 5 8 8. 10 10 12 13 13 15 17 18 20 20 Section 2: Section 3: 1. 2. 3. AGRICULTURE CUSTOMS Customs transit arrangements The Customs 2000 project Chemical substances frequently used for the illicit manufacture of narcotics ("precursors") Section 4: ADMINISTRATIVE COOPERATION CHAPTER 3: THE OTHER INSTITUTIONS Section 1: THE EUROPEAN PARLIAMENT 2 ,. 20 23 23 26 27 27 29 29 Section 2: THE COUNCIL Section 3: THE COURT OF AUDITORS Section 4: THE COURT OF JUSTICE CHAPTER 4: THE MEMBER STATES Single section 1: NATIONAL REPORTS ON THE MISUSE OF 30 31 31 33 COMMUNITY RESOURCES - APPLICATION OF ARTICLE 209a33 Methods used 33 Implementation of the first paragraph of Article 209a of the EC Treaty: state of play Implementation of the second paragraph of Article 209a of the EC Treaty: state of play Avenues to be explored. 36. 37 34 1. 2. 3. 4. CHAPTER 5: COOPERATION AND PARTNERSHIP Section 1: SEMINARS, CONFERENCES AND EXCHANGES OF OFFICIALS Section 2: THE ADVISORY COMMITTEE FOR THE COORDINATION OF FRAUD PREVENTION Section 3: PARTNERSHIP WITH SPECIALIST DEPARTMENTS IN THE MEMBER STATES Section 4: MUTUAL ADMINISTRATIVE ASSISTANCE IN CUSTOMS MATTERS BETWEEN THE COMMUNITY AND NON- MEMBER COUNTRIES CHAPTER 6: INVESTIGATIONS 41 41 43 44 45 47 Section 1 : MAJOR ORGANIZED TRANSNATIONAL FRAUD CASES. 49 Section 2: MAJOR FRAUDS RELATING TO ORIGIN AND PREFERENTIAL AGREEMENTS Industrial goods Textiles Fishery products 2. 1 2. 2 2. 3 Section 3: OTHER FRAUD IN AGRICULTURE Section 4: 4. 1 4. 2 OTHER FRAUDS IN RELATION TO STRUCTURAL POLICIES European Social Fund (ESF) European Regional Development Fund (ERDF) 60 6i 63 66 67 74 74 75 Section 5: 5. 1 OTHER FRAUD IN RELATION TO DIRECT EXPENDITURE Research. 76 76 3 5. 2 5. 3 5. 4 Energy European Development Fund (EDF) Environment/Medspa programme (Italy) CHAPTER 7: STATISTICS AND ANALYSES Section 1: THE SITUATION IN 1995 Section 2:. TRENDS Section 3: TRANSIT Section 4: RECOVERY Section 5: ANALYSING LEGISLATION CHAPTER 8: ANTI-FRAUD APPROPRIATIONS Section 1: IMPLEMENTATION OF THE 1995 BUDGET Section 2: 1996 APPROPRIATIONS ANNEX GLOSSARY 76 77 77 78 78 80 81 82 83 97 97 97 104 105 INTRODUCTION 1995 was particularly notable for the substantial progress achieved at legislative level with the adoption of two basic texts, one concerning checks and administrative penalties (a horizontal regulation) and the other on penal protection of Community finances (a convention). In the operational area, the investigations undertaken at the Commission's initiative with the national authorities show more and more clearly that the Commission can provide an added value in combatting fraud on the ground. This momentum results from the anti-fraud strategy put in place in 1994 which focuses on four priority areas: - - - - reinforcing the presence on the ground; exploiting intelligence and strengthening the partnership between the Commission and the Member States; improving the Community legislative framework; securing greater compatibility between national legislations with regard to punitive measures to deter fraud on a scale commensurate with the problem to be tackled. In addition, valuable progress was made in all these areas in 1995. Following the proposals1 on legal protection for the Community's financial interests presented by the Commission in 1994 and considered in the first part of the report, the Council adopted a Regulation to establish a consistent and effective system of penalties to punish those responsible for fraud once it is detected and deter such activity in the future, and signed an international Convention which, for the first time, introduced a common definition of the concept of irregularity and fraud. These texts aim for a better protection of the Community's financial interests, the principle contained in article 209a of the EC treaty, and are a response to the frequently expressed public concern to see fraud and waste of Community funds put down with the greatest severity, and constitute a vital legal basis for the development of future work in that field. The on-the-spot inspection arrangements and the penalty systems applied by the Commission and the Member States must be improved and strengthened accordingly. Although substantial progress has been made in the legislative field, experience has shown, from the Commission's point of view, that the legal means contained in the treaty are not sufficient given the amounts involved and the degree of protection required for a budget of the size of the Union. This is why the Commission considered that their reinforcement, at the time of the Inter-Governmental Conference (IGC), was necessary. The Cannes European Council of 26-27 June 1995 and the Madrid European Council of 15-16 December 1995 emphasized in particular topics related to the protection of the Community's financial interests and the fight against fraud in the Community. It has therefore taken the initiatives required to include the question on the agenda of the IGC which begins in March 1996. The horizontal regulation defines very broadly the concept of irregularity. This concept covers both simple omission due to error or negligence which is likely to have a harmful effect on the Communities' budget and intentional and deliberate acts which correspond for their part to the more restrictive concept of fraud as defined in the penal convention. The investigations presented in the second part of the report refer to cases in which the Commission participated. They only involve irregularities of particular interest at Community level whose intentional or deliberate nature has not yet necessarily been demonstrated. These irregularities cannot therefore all be considered as cases of fraud in the penal sense of the term. This also applies to the data featured in the statistical part of the report. This "post-operational" stage is just as vital. The closing chapters of the report give an analysis of the data compiled in the field and in carrying out the procedures, which makes it possible to map out trends in large-scale fraud and distinguish which sectors are the most affected, so that the Community framework in which the financial provisions are decided on can be adapted accordingly. The major trends are clear : the number of fraud cases detected is still rising (+/- 15%) while the total amount involved is tending to stabilize. Half this total concerns investigations in-hand under Commission coordination, in close cooperation with the Member States. The number of these investigations in increasing. The scale of the amounts at stake illustrates how the launching of in-depth inquiries in cooperation with specialized departments in the Member States as soon as fraud is suspected can reveal the existence of networks, often criminal, operating with highly sophisticated techniques. A rapid administrative and judicial operational response is vital if all prospects of recovering sums diverted or evaded are to be preserved. In statistical terms, on the side of expenses administered by the Member States (agricultural expenditure and structural policies), the fraud detected in 1995 is represented by a global amount of in the region of 383 million ECU, that is 0. 6% of the finance allocated. Concerning direct expenditure, managed by the services of the Commission (contracts concluded with beneficiaries in the Member States), this amount is in the region of 28 million ECU, that is 0. 3% of benefits paid. On the income side, fraud amounts to in the region of 735 million ECU (in the area of Traditional Own Resources), that is 3. 6% of the income collectable under this hçading in 1995. This amount represents the duties and taxes evaded, principally during commercial operations (trade) between non-Member countries and the Community. The Member States are the principal financial losers. In effect, balance (of income and expenditure) is one of the fundamental principles of the Community budget, which implies that each loss in the matter of Customs duties and agricultural levies, for example, is made up by the increase of direct contributions of Member States under the heading of the 'Fourth Resource', founded on the GNP of Member States, known still as the 'balancing income'. Globally and schematically, it is possible to point out that fraud on the Community budget, cases known, recognised, that is to say prosecuted or under investigation, do not go beyond 1. 4% of the Community budget. The Member States have shown that the system of detection functions ; the Commission, for its part, has largely devoted itself, with the participation of specialised national services, to the triggering off of detailed enquiries from the first stages of suspicion of irregularity or The Commission is continuing to develop its partnership with the Member States. With their assistance it has embarked on a wide-ranging exercise to make the management of Community appropriations more efficient. The initiative, which goes by the name SEM 2000 (standing for Sound and Efficient Management), encompasses three stages, of which the first two involved the Commission improving the standard of its own financial management. The last stage aims to bring about improvements in the management of Community resources by the Member States and will lead to greater transparency on the one hand and greater security on the other for the benefit of taxpayers. This new stage is being conducted in the same spirit of partnership as were the anti-fraud activities proper, even if it goes beyond the confines of the fight against fraud. It will in any event have a definite impact on the policy for preventing and fighting fraud. Therefore, analysis of legislation, mentioned in chapter 8 of this report, forms a major part of the SEM 2000 initiative. In this context, the important work done by the Member States in producing their reports on national measures to combat waste and misappropriation of Community resources deserves special mention. The Commission carried out a comparative analysis of the reports which clearly brings out the problems and questions which have to be dealt with by joint action. At the same time, again using the Member States' reports, it reviewed the application of the "assimilation" principle set out in the new Article 209a of the EC Treaty. A comparative summary paper was submitted to the Council which, in taking note of it, called on the institutions and the Member States to press on with their efforts in the fields in que^ion, in particular by striving to establish an equivalent level of protection for the Community's financial interests throughout the Community. In 1995 the Commission also restructured its fraud prevention department (SG/UCLAF - Unit for the coordination of fraud prevention) by regrouping its anti-fraud activities into this operational and multi-disciplinary structure2 to enable it to fulfil its role independent of the services with authorizing responsibilities and to achieve the global, integrated approach defined for the protection of the Community's financial interests. Decision of 16 February 1995 - See SEC (95) 249, Commission Communication of 10 February 1995 on the organization of fraud prevention within the Commission. 7 CHAPTER 1 : PROGRESS ON THE HORIZONTAL LEGAL INSTRUMENT IN 1995 (FIRST PILLAR AND TITLE VI) Section 1: INTRODUCTION AND ASSESSMENT One of the most important events in 1995 was the completion of the work begun in 1994 on legislation to protect the Community's financial interests. This work also laid the foundations for the Commission's new proposals. The combination of the Commission's efforts and political will at the highest level, produced some very real and practical results. 3 The Commission worked on the premise that, as well as bolstering the preventive aspects of the checks and other measures designed to protect the Community's financial interests, it also needed to devise a set of uniform administrative and criminal penalties. * A first layer of protection was needed in the form of Community administrative penalties. There were already penalties for irregularities concerning the common agricultural policy but these had to be extended to other areas to ensure uniform protection across the Union. This could only be done through Community law. Accordingly, the Commission proposed a horizontal Community instrument establishing a special legal framework for Community administrative sanctions covering every section of the Community budget. A framework regulation on the protection of the Community's financial instruments was duly adopted by the Council on 18 December 1995 (Regulation (EC, Euratom) No 2988/95)/ 4 This Regulation is the product of the Commission's first set of legislative initiatives relating to the first pillar. The general horizontal legal framework which it provides for confirms the Community administrative penalty, in accordance with the case law of the Court of Justice of the European Communities, as a key element in the systems developed to protect the Community's financial interests. 5 The initial proposal for the Regulation on the protection of the Community's financial interests, presented by the Commission in July 1994, contained general rules for Community measures and controls as well as Community administrative A Commission proposal (Draft Treaty for the common rules on the protection under criminal law of the Community's rinancial instruments) has been before the Council since 1976. See Chapter 1, Section 6 of the 3 J ,4 Annual Report on the Fight Against Fraud (COM(95) 98). OJL 312, 23. 12. 1995 The Commission, in close cooperation with the Member States, conducted a comparative study into the way irregularities concerning the application of the common customs code are punished. On the basis of the findings, which are now being analysed, the Commission will decide whether legislation is required, on the basis of Regulation No 2988/95, for example, to protect the Community's financial interests. 8 sanctions. 6 For the sake of expediency, the Council opted, at this stage, for Community administrative penalties and general control measures in order to be sure of achieving political results in the first half of 1995. "On-the-spot checks and controls", it was decided, were to be provided for in a separate Community legal instrument. 7 However, with the exception of VAT, which the Council excluded from the scope of the Regulation, the comprehensive, horizontal approach the Commission favoured in its proposal has largely been retained. The Regulation applies to all expenditure and all traditional own resources. The Community has opted unequivocally for the horizontal approach, which is now a distinctive feature of legislative initiatives in the fight against fraud. It makes for a far more consistent legal framework for measures to protect the Community's financial interests. It has also created a certain momentum, as the Council demonstrated when it asked the Commission to put forward proposals for Community administrative penalties covering all sections of the Community budget. The Regulation is the first Community instrument containing a broad definition of what constitutes an irregularity - a definition which has been lacking for some years. A second layer of protection is required in the form of national criminal penalties. These are the only types of penalties which, by their exemplary and transparent nature, provide effective, dissuasive and proportionate protection against the most serious of offences in accordance with European case law. The Commission has therefore presented a proposal aimed at reducing the inconsistencies between the laws on fraud in the various Member States. 8 Such discrepancies provide a breeding ground for international fraud, which can easily develop into large-scale financial crime and even organized crime. On 26 July 1995, the Council, acting on a Commission initiative, adopted a Convention on the protection of the European Communities' financial interests with the intention of improving the compatibility of national criminal laws. 9 The Convention aims to achieve this by formulating a common definition of fraud and of other serious offences which damage the Community's financial interests. This constitutes a major step forwards for the Union; fraud affecting the Community budget is to be made into a specific criminal offence, with appropriate penalties, in each of the Member States. OJ C 216, 6. 8. 1994. See Chapter 1, Section 6 of the 1994 Annual Report on the Fight Against Fraud. See Article 10 of Council Regulation (EC, Euratom) No 2988/95 The features which makes the various systems incompatible were highlighted in a study carried out by a group of researchers, led by Professor Delmas-Marty in 1993. See the 1993 Annual Report on the Fight Against Fraud (COM(94) 94 final) OJ C 316, 27. 11. 1995, p. 48 The Commission based its proposal for the Convention on Article K. 3 of the Treaty on European Union (Title VI of the Union Treaty - cooperation in the fields of justice and home affairs). 10 This approach is without prejudice 10 the Community's powers and does not prevent it from acting within the scope of the first pillar - which Parliament feels is the preferred option with regard to the Community budget. In terms of the quantity and quality of the work which the institutions put into it, the Convention can be seen as an important milestone. It marks the completion of the first stage in accordance with the conclusions of the European Council of Cannes and, at the same time, calls for further action. 11 It illustrates the special problems involved in protecting the Community's financial interests and, in so doing, promotes the creation of tailor-made cooperation structures in the field of criminal justice. The negotiation of these two instruments highlighted the difficulty linked to adopting legislation on the basis of Article 235 and of Title VI. Given the problem of the relationship between the EC treaty and Title VI of the TEU on questions concerned with the fight against fraud, the Commission intends to suggest the legal base for the protection of the introduction of a more operational Community's financial interests. Section 2: FIRST-PILLAR ACTIVITIES - IMPROVING THE COMMUNITY'S LEGISLATIVE FRAMEWORK 1. Regulation on the protection of the Community's financial interests The adoption of Council Regulation (EC, Euratom) No 2988/95 on the protection of the Community's financial interests was an important step forwards in the process of improving the Community's legal framework and tailoring it to the requirements of its overall anti-fraud strategy - a process which the Commission began in 1994. As far as penalties are concerned, the comprehensive, horizontal approach finally prevailed. This was the approach favoured by the Commission in the proposal it advanced in July 1994. A twin-track approach was adopted to the question of on-the-spot controls and checks. For the main traditional checks carried out by the Member States, some_ general obligations were set out;12 the task of harmonizing checks, to ensure a comparable level of stringency across the Community was then left to sectoral Community legislation or even national legislation. For the checks carried out by the Commission, the Regulation does lay down certain rules,13 though some more detailed provisions concerning Proposal for a Council Act establishing the Convention, OJ C 216, 6. 8. 1994. The second recital is quite explicit on this matter, calling for ''another legal instrument" to complement the first "in such a way as to improve the effectiveness of protection under criminal law of the European Communities' financial interests. Article 8 of the Regulation. Article 9 of the Regulation 10 procedures were removed from the initial Commission proposal and will appear instead in a separate instrument for which the Commission will put forward a proposal to the Council at a later date. 14 The main achievement of the Regulation is that it creates a basic legal framework for the formulation of uniform Community administrative penalties with the same force throughout the European Union. The penalties can be set for fraud relating to any area of Community policy where they are required and for which there is a legal basis. The Regulation is entirely in keeping with the Commission's approach to administrative penalties in relation to agricultural policy, which the Court of Justice has always upheld, e. g. in 199215 and, more recently, in 1995. 16 These basic ground rules, preserving the acquis communautaire, were the subject of heated debate at the very highest level within the Council before eventually receiving unanimous support from the Member States. This result gives the Commission. the go- ahead to maintain the existing policy with respect to agriculture and to extend Community administrative penalties to other areas. The Regulation confirms the effectiveness of the system of penalties already in place for the common agricultural policy and draws on the impetus provided by the Council's call for the introduction of Community administrative penalties in areas other than agriculture. In practical terms, the Regulation is the first piece of Community legislation to give a broad definition of conduct which prejudices proper application of Community financial legislation. It also establishes the concept of "abuse of rights", describes the measures and penalties available and identifies the people who can be held liable. All of the above apply to irregularities affecting all sections of the Community budget. The introduction of the concept of abuse of rights*fills a major gap in Community law. From now on, those "attempting to obtain benefits contrary to the objectives of the relevant Community legislation may have their entitlement to subsidies or exemption from customs duties withdrawn. The Regulation provides for a limitation period of four years for the imposition of penalties. This is a compromise solution balancing the need to protect the Community's financial interests effectively and the principle of legal certainty. The four-year limitation the rules governing the financial management of the period in no way affects Community's revenue and expenditure as it applies only to penalties and not to debt- recovery. Another of the Regulation's main features is its list of penalties, with specific provision for fines, other financial penalties and other types of penalties that the Commission has traditionally imposed in the past. Article 10 of the Regulation Case 240/90 Germany v Commission of the European Communities [1992] ECR 1-5383 (judgment given on 27 October 1992). Case C 104/94 Cereal Italia Sri (judgment given on 12 October 1995) 16 11 The relationship between national criminal-law procedures and Community administrative law is made explicit. A good balance, which respects the principle of proportionality, has been found. The principle of the primacy of Community law is left intact and the Regulation ensures that financial penalties are fair, whether they are provided for by Community law or national criminal law. The acquis communautaire is preserved in that administrative financial penalties relating to agricultural matters are expressly excluded from the suspension arrangements. With regard to other matters, the suspension mechanism comes into operation only when criminal proceedings are initiated; it is not triggered by proceedings initiated by the administrative authorities with a view to imposing national penalties or by out-of-court settlements. Owing to the very tight schedule set by the European Council, much hard work was done at the beginning of 1995, with Parliament examining the proposal and drafting amendments in accordance with the consultation procedure. Parliament delivered its opinion on the Commission proposal on 15 March 1995. 17 In view of the link between the provisions on administrative penalties and criminal law, and the importance of providing for a special mechanism in the section on on-the-spot Commission checks, the Presidency felt the need to finalize agreement on a joint approach. This involved making a certain number of amendments to the initial proposal on which Parliament was to be consulted again. This agreement was reached on 29 June 1995. Parliament duly issued a second opinion when the Council negotiations were over. 18 The Council finally adopted the Regulation on 18 December 1995 after it had discussed Parliament's amendments. As a result of the political views expressed, particularly within the ad hoc group of the Budget Committee, the Council did not accept Parliament's amendments. The Commission, however, took account of the amendments, most of which have been incorporated into the new proposal on on-the-spot checks. 2. The proposal for a Regulation concerning on-the-spot checks and inspections The Commission proposal19 is a response to the Council's call for a separate draft regulation concerning on-the-spot checks and inspections. The Commission did not opt for harmonization or amendment of the existing sector-based Community provisions granting powers to Commission inspectors. Instead, it chose a horizontal approach more specifically geared towards combating fraud and detecting irregularities, leaving the existing sector-based legislation on checks and inspections untouched. The proposal gives a clear definition of what constitutes an on-the-spot inspection and establishes who can be checked. It also lays down rules governing the powers and duties of Commission inspectors and, lastly, it contains provisions aimed at bolstering the legal force of the inspectors' findings. 17 18 19 Resolution of 15 March 1995, OJ C 89, 10. 4. 1995 Resolution of 30 November 1995. , OJ C 339, 18. 12. 1995. Proposal adopted on 20 December 1995 (COM(95) 690 final) 12 The Regulation provides a legal basis for checks and inspections aimed at detecting fraud. It is not concerned with checks carried out by the Commission services to ensure that Community regulations are being properly implemented by the Member States. If adopted, the Regulation will make it significantly easier to set up and carry out inspections concerned specifically with combating fraud. It will be particularly valuable in cases of major complex or cross-border frauds where the extent to which one Member State can act is limited. The Commission's desire to work closely with the Member States in combating fraud is the cornerstone of the new horizontal approach, which relies on full cooperation between the Commission and the Member States with regard to on-the-spot checks and inspections. To summarize, the Regulation will complement and rationalize existing arrangements, introducing greater clarity and uniformity and enhancing their effectiveness. It will also place partnership between the Member States and the Commission on a more official footing. It is designed to achieve the aim spelled out in the second paragraph of Article 209a of the EC Treaty regarding the assistance the Commission is required to give the Member States with the task of protecting the Communities' financial interests. 20 Lastly, the Regulation goes a long way towards establishing some kind of methodology for anti-fraud inspections. It is intended to meet the requirements laid down by the Madrid European Council, held on 15 and 16 December 1995, which stressed the need for a regulation to be adopted as soon as possible, before June 1996. Section 3: TITLE VI ACTIVITIES - MAKING THE VARIOUS NATIONAL LAWS MORE COMPATIBLE WITH ONE ANOTHER. 1. The Convention As part of the new anti-fraud strategy it adopted in 1994, the Commission also presented a proposal for a Council Act21 establishing a Convention relating to the criminal-law aspects of the protection of the Communities' financial interests, on the basis of Article K. 3(2) under Title VI of the Treaty on European Union. Parliament recommended an approach based on the first pillar for measures aimed at protecting the Community budget. While the Commission did not necessarily disagree, it preferred for the sake of expediency and for reasons connected with the scope of the proposed measures, to use the intergovernmental procedures associated with Title VI. These procedures are even more familiar to central administrations of Justice Ministries, which are becoming more aware of the issues surrounding protection of the Communities' financial interests and the obligations on the Member States and the institutions. In opting for the intergovernmental approach, the Commission enhanced the credibility of the new Maastricht provisions without giving the impression that the Community pillar was inadequate. 20 21 See also Chapter 4, single section, point 3, page 36. O JC 216, 6. 8. 1994 13 The resolution adopted by the Council on 1 December 1994 identified the issues most urgently requiring attention if legislation protecting the Community's financial interests through national criminal law is to be passed as quickly as possible. 22 In view of the difficulties the negotiators encountered with the third pillar, the Council of 9 and 10 March 1995 decided to limit the scope of the instrument. It would set out only to provide a definition of fraud and settle the criminal liability of the people involved, the penalties and jurisdiction. The Cannes European Council, held in June 1995, was able to reach an agreement on the matter and, on 26 July 1995, an act establishing the Convention for the protection of the Communities' financial interests was signed. Other instruments supplementing the Convention were to be passed as soon as possible. 23 The Convention as adopted by the Council does not contain all the elements in the Commission's initial proposal. 24 However, it goes a long way towards ensuring a uniform level of protection throughout the Community, in accordance with the express wishes of the Madrid European Council. The adoption of a common definition of fraud, combined with provisions requiring the Member States to incorporate the definition into their own body of criminal law brings the Community much closer to its objective of an equivalent level of protection in all Member States. The Convention marks a major step forwards in the campaign to protect the Community's financial interests; every Member State is now required to punish fraud with appropriate criminal penalties. It also does much to approximate in a specific area the Member States' criminal-law provisions, which is an appropriate response to the problem of financial crime, particularly international fraud. The most important, and undoubtedly the most conspicuous change for the better is the adoption of a definition of fraud affecting both revenue and expenditure in the Community budget. The idea of creating a specific offence - the Commission's preferred solution - was rejected in favour of new offences based on the definition contained in the Convention. The Member States can choose whether to create a specific offence of fraud against the Community's financial interests or to make it an offence under the laws criminalizing fraud in general. The Convention also requires Member States to make serious fraud involving more than ECU 50 000 an extraditable offence, punishable by imprisonment. The Convention confirms that persons with the power to take decisions within a business should be made criminally liable, albeit in accordance with the principles defined in national law. It also lays down very basic rules for judicial cooperation in cases where the Community's financial interests are at stake. These include rules on centralization of the prosecution and on the aut dedere aut judicare (extradite or prosecute) principle. 22 23 24 OJ C 355, 14. 12. 1994, see also Chapter 1, Section 6. 2 and Chapter 2, Section 3 of the 1994 Annual Report on the Fight Against Fraud (notably judicial cooperation, laundering, responsibility of legal persons, corruption). The supplement took the form of the Protocol described at point 2 of this Section. See also the second recital of the Council Act establishing the Convention (OJ C 316, 27. 11. 1995, p. 45). See Chapter 1, Section 6. 2 of the 1994 Annual Report on the Fight Against Fraud. 14 The Convention gives the Court of Justice the jurisdiction provided for by Article K. 3(2)(c) of the Treaty on European Union. The minimalist approach taken by the Member States is not the approach sketched out by the Commission in its initial proposal and does not give the Court the power to decide on all the questions of interpretation concerning the Community budget which the Convention is sure to raise. The Commission feels that this situation must be rectified by conferring jurisdiction on the Court of Justice. Detailed procedures are laid down for the transposition into national criminal law of the obligations imposed by the Convention on the Member States, which are required to inform the Commission of the relevant provisions. The Commission is given the task of monitoring and assessing the transposai measures25 and reporting to the Council on the progress made in incorporating the Convention into national criminal law. Failure to ratify and transpose the Convention swiftly would effectively wipe out the progress made so far, make the agreement reached by the heads of state and government redundant and disable the instruments associated with Title VI - a fate which some are only too happy to predict. 2. Additional Protocol to the Convention on the protection of the European Communities' financial interests (second instrument) - on judicial cooperation The Commission proposal of 20 December 1995 for a Protocol to the Convention on the protection of the European Communities' interests26 is another of the Commission's initiatives currently in the Council's hands. The Protocol was drafted at the request of the Madrid European Council, echoing an earlier demand, in the actual Council Act establishing the Convention, for an instrument to supplement it. The Commission proposal contained certain elements which had figured in the original proposal from June 1994 but which had not been included in the final version of the Convention signed on 26 July 1995 for reasons connected with the timetable set by the Council. The purpose of the proposal for the Protocol is to lay down rules for judicial cooperation and joint investigations into cases of suspected multi- or transnational fraud. In practical terms, the intention is to flesh out the principle of centralization of procedures, laid down in the Convention. The proposal also attempts to put into practice the Council Resolution of 1 December 1994 which was concerned in particular with money laundering27 and the liability of legal persons. Since the form of the instrument supplementing the Convention was not specified, the Commission opted for a protocol. From the legal point of view, the Protocol has the same status and binding force as the Convention since it will be adopted by the same procedures, i. e. those provided for by Title VI of the Treaty on European Union and notably ratification by national parliaments. 25 26 27 See the Commission's anti-fraud work programme for 1996, doc COM (96) 17 final. COM(95) 693 final. Document published in OJ C 83, 20. 3. 1996. See Chapter 1, Section 6. 3. 2 of the 1994 Annual Report on the Fight Against Fraud. 15 As far as content is concerned, the Protocol complements the Convention by providing: an appropriate legal response (liability of legal persons and appropriate penalties, definition of laundering of profits from fraud affecting the Community budget and creation of a specific offence); the procedural aspects, to enhance the effectiveness of national instruments at Union level (judicial cooperation, centralization of procedures and establishment of a common register of prosecutions). The criminal liability of legal persons is an issue of fundamental importance and the Commission does not underestimate the problems associated with it. The principle is not an established legal concept in all Member States, though most of them are familiar with the idea under another guise. The introduction of the concept is a major legal innovation, aimed at ensuring that businesses and other organizations involved in defrauding the Community can be prosecuted. It will also ensure that it is not only the senior management or less important people who feel the full force of the law while the company or organization continues to operate without being penalized for actions which can be attributed to its organizational structure and which it has unlawfully benefited from. The Protocol also requires that the Member States make laundering the proceeds of fraud a criminal offence and contains provisions which address the issue of judicial cooperation and procedural questions. The experience gathered by the national inspectorates and the inadequacy of existing laws28 would indicate that there is an urgent need for legislation to deal with the problems which are now arising (connected with the special nature of the Community budget and the rise in financial crime etc. ) The Convention merely set out a few basic principles for judicial cooperation, which the Protocol now amplifies with more detailed rules. In cases of international fraud or a complex web of interrelated fraud, the Protocol provides for centralization of the prosecution by conferring priority jurisdiction on a principal authority on the basis of objective criteria. The rules on mutual assistance and judicial cooperation enable the legal authorities to contact one another and to submit direct requests for mutual assistance to one another, making the procedure far more simple and putting the second paragraph of Article 209a of the EC Treaty into practice. Unlike the Convention, the Protocol also confers on the Court of Justice the power to give preliminary rulings on matters for interpretation. Given that the Council Act establishing the Convention called for an instrument complementing it to be adopted as soon as possible, the Italian Presidency made the drawing up of the Protocol one of its priorities for 1996. The Commission is doing its best to facilitate the process as the proposal goes through the specialized bodies within the Council. 28 Many of the national reports produced in connection with the assessment of implementation of Article 209a of the EC Chapter (see Chapter 4, single section, page 33) mentioned the need for effective judicial cooperation. Current arrangements are based on international legislation dating back to the 1950s, when Europe had no common policies or shared resources, and financial crime was carried out by individuals or gangs, not organized networks capable of maintaining an outward appearance of legality, as today. 16 3. Protocol on corruption amongst officials Corruption was one of the points dealt with in the Council resolution (Justice) of 1 December 1994. A draft Treaty, drawn up by the Commission, was sent to the Council on 10 August 1976 but discussions have never got off the ground. In view of the speed with which the Spanish Presidency presented its own proposal in June 1995,29 the Commission refrained from putting forward yet another one to avoid a plethora of proposals and measures all dealing with corruption. Instead, it preferred to retain the existing draft treaty and make an active contribution to the preparatory work in the Council on the basis of its own studies into the matter. In so doing, it hoped to ensure that the problem of corruption affecting the Community's financial interests was given due attention without falling into the trap of focusing the text exclusively on corruption amongst Community officials and forgetting about corruption amongst national civil servants. Thanks to the work done in the Council, the Madrid European Council, held on 15 and 16 December 1995, was able to reach a consensus which is apparent from the conclusions it drew. This certainly represents a step forward. The main aim of the instrument is to fili in the gaps in existing criminal law on corruption (acts and omission) having a link with protection of the Community's financial interests which, by their nature, are international and may involve both Community and national officials. The purpose of the Protocol is to make up for the shortcomings of the Member States' domestic legislation by assimilating officials of the European Community to national officials under criminal law, while taking account of the immunity conferred by the Protocol on the Privileges and Immunities of the Communities. The principle of assimilation was laid down in the 1976 proposal for a draft treaty, from which the current definition of a "European official", as it appears in the Council draft, was also taken, with a few changes. The Protocol provides for an offence covering both acts and omissions in the interests of a rapprochement of the various concepts found in the Member States' legislation. Members of Community institutions will be assimilated to their political counterparts at national level rather than to officials, as they are under the criminal law of certain Member States. The authorities in a Member State may claim jurisdiction for criminal cases involving European officials employed by a Community institution established on its territory. The rules on the jurisdiction of the Court of Justice follow the minimalist approach taken by the Council as regards the Convention. It is expected that the Protocol will be adopted in the first half of 1996 when Parliament has been consulted, a process started by the Spanish Presidency in December 1995. In accordance with Article K. 6 of the Treaty on European Union, Parliament must be consulted on the principal aspects of the Council's activities covered by Title VI. 29 Spain is very eager to address this issue, which it considers to be of central importance. 17 Section 4: DEVELOPMENTS CONCERNING ORGANIZED FINANCIAL CRIME The Council signed the Convention on the protection of the European Communities financial interests on 26 July 1995 and, in so doing, signalled that the fight was on against the organized criminal networks that are often behind multinational or transnational fraud against Community resources spanning several countries. This approach is a response to the hard facts on the ground and reflects the experience of the Commission and the specialized national departments with the investigations they have conducted. 30 This experience is also shared by several Member States. The national reports submitted by the Member States concerning implementation of Article 209a of the EC Treaty, as requested by the Council, revealed that certain national authorities, particularly in France, Denmark and Italy, were well aware of the involvement of organized criminal networks in setting up scams to defraud the Community budget. 31 The basic issues are clear: organized crime has gone international, jeopardizing not only the security of individual Member States but also the protection of common interests which cannot be safeguarded by isolated action on the part of national anti-fraud units. Moreover, criminal networks actually thrive on the differences between the criminal justice systems in different countries and the discrepancies between the penalties applied in the Member States. This means that to protect the common good and safeguard financial interests, there is a need not only to bring the criminal law systems of the Member States closer together to agree on a definition of the offence of "fraud against the Community", but also to adopt legal instruments that facilitate judicial cooperation between Member States and discourage judicial self-sufficiency in favour of Community solidarity. In this way more uniform levels of protection and prevention could be achieved. 32 The tools which the Member States have at their disposal for judicial cooperation on cross-border financial crime are no longer up to the task. Financial crime has become increasingly international, because it is easier to get away with undetected. It takes an enormous amount of time and effort to gather together sufficient evidence to crack known crime networks. Hence the need for a Community-level approach to ensure the requisite cooperation and coordination. The criminal organizations involved often have considerable means at their disposal. Their financial power in particular is used for the purposes of corruption to circumvent 30 31 32 See the 1994 annual report on the fight against fraud, Chapter 5, Section 1 regarding cross-border fraud. Member States also sent the Council various contributions, which were used to draw up a report on organized crime in the European Union. The Italian Presidency has undertaken to pursue the issues raised in the report and will soon produce a report on financial crime covering 1995. See conclusions of the inquiry on meat carousel in the annual report for 1994, chapter 5, section 1. 2. 2. 18 international legislation. This is particularly the case with the Community transit regulations should be strengthened, especially as regards arrangements, where the sensitive products,33 to prevent the evasion of customs duties and levies, which make up a considerable portion of the Communities' traditional own resources. 34 This also affects national budgets to a considerable extent. To a certain extent, these practices entailed little risk for the perpetrators, since the organization of the criminal networks involved is tight and mechanical and the financial gain is out of all proportion to any legal penalties that may be incurred. The more astute villains have used, and continue to use, sophisticated systems to escape prosecution, for example by using companies that often seem to operate within the law, but are actually set up as fronts in areas where crime prevention is more lax. Nowadays economic and financial systems are geared up for speed and efficiency in international trade35 and could obviously not do without this flexibility. However, when the rules are being abused for criminal purposes, the response needs to be equally, speedy and efficient. Financial interests cannot be protected by using instruments that date from the 1950s, when European integration did not have common policies covered by a single budget and when trade and financial flows were a fraction of what they are today. 36 33 34 35 36 See Chapter 2, Section 3 on customs, page 23, and Chapter 6, Section 1, point 1. 14, on cigarette smuggling, page 58. This type of fraud is particularly common and varied, ranging from cigarette smuggling (see Chapter 6, Section 1, point 1. 14, page 58 to shipping carousels involving alcohol and agricultural products and anti-dumping duty fraud (see Chapter 6, Section 1, page 49 and Section 3, page 67). In terms of revenue, 2% of the fraud cases discovered account for 66% of the amounts at stake; on the expenditure side, 8% of the cases account for 74% of the amounts at stake. These figures lend further support to the Commission's belief that fraud against the Community is not a question of petty pilfering, but of large-scale organized financial crime. For example, the international SWIFT network can transfer funds between banks in many countries in a matter of seconds. As regards judicial assistance and cooperation between the Member States, although the 1959 Strasbourg convention is adequate for dealing with certain types of one-off crimes, it is quite unsuitabi ""or dealing with international economic crime, let alone protecting the financial interest of the European Communities. 19 CHAPTER 2: DEVELOPMENTS IN THE REGULATORY FRAMEWORK IN 1995 This chapter is intended to give an account of developments in Community legislation in 1995 aimed at simplifying the regulatory framework and making legislative provisions with financial impact as fraud-resistant as possible. There were considerable developments in agriculture and customs, for example in the transit procedure. In the area of structural policies, significant progress was achieved in 1994 with the tightening up of sectoral regulations and the adoption of Regulations (EC) Nos 1681/94 and 1831/94 on irregularities and the recovery of sums wrongly paid under the Structural Funds and the Cohesion Fund. The Commission has been working hard on putting the finishing touches on the implementation of these regulations, which are still applied in different ways from one Member State to another. 37 Section 1: OWN RESOURCES The Commission proposal to amend Council Regulation (EEC, EURATOM) No 1552/89 implementing Council Decision 88/376/EEC, EURATOM on the system of the Communities' own resources38 has yet to be formally adopted by the Council. The proposal aims to improve the reporting procedure, under which the Member States provide the Commission with information on cases of fraud and irregularities they have uncovered, by increasing both the level of detail of information submitted and the frequency of submission of reports, in line with what is already in force in the area of expenditure. The Commission will then be better placed to keep tabs on the recovery of amounts involved in fraud and irregularities. On 17 November 1995 the Council agreed on a common position on the amendments to be adopted, and this was presented to the European Parliament under the conciliation procedure. - Agreement was reached under this procedure, which means that the regulation should be adopted sometime in the first quarter of 1996. Section 2: AGRICULTURE One of the main objectives of the prevention side of the anti-fraud strategy adopted by the Commission in March 1994 was to review and improve agricultural legislation containing financial provisions. 39 Following on from its 1995 work programme,40 the Commission has continued to pursue these aims with the following results: 37 38 39 40 For example, by organizing training for the relevant staff from the national authorities. See Chapter 5, Section 1, page 41. See the annual report on the fight against fraud for 1994, Chapter 1, Section 1. The Commission's Anti-Fraud Strategy, Work Programme for 1994, COM(94) 92 final. Commission's Work Programme for 1995, Section 6. 4, COM(95) 26 final. 20 Council Regulation (EEC) No 4045/89,41 which concerns scrutiny by Member States of transactions financed by the Guarantee Section of the European Agricultural Guidance and Guarantee Fund, needed further tightening up with specific provisions in the following areas: strengthening of mutual assistance procedures between Member States (under Article 7 of the Regulation referred to above): discussions are under way in Commission working groups on a proposal for a regulation and on joint courses of action when commercial documents are inadequate or come from companies based outside the Community; standardization of documents and reports submitted by Member States with a view to harmonizing scrutiny: on 19 December 1995 the Commission adopted Regulation (EC) No 2992/9542 amending Regulation (EEC) No 1863/9043 laying down detailed rules for the application of Council Regulation (EEC) No 4045/89; The Commission further tightened up the implementing provisions for Council Regulation (EEC) No 386/9044 as regards physical checks at the time of export of agricultural products receiving refunds. This regulation was amended by Council Regulation (EC) No 163/94. 45 Commission Regulation (EC) No 3122/9446 lays down the criteria to be used by the Member States in applying risk analysis techniques to devising fraud prevention strategies for agricultural products receiving refunds. It came into force on 1 January 1995. Commission Regulation (EC) No 2221/9547 covers physical checks and the selection of samples to be analysed at the time of export of agricultural products qualifying for refunds. It came into force on 1 January 1996. As regards Community agricultural products exported to non-member countries with export refunds, the Commission is currently undertaking a full consolidation of Commission Regulation (EEC) No 3665/87. 48 The work will be completed in 1996 and will incorporate the results of work carried out previously. 41 42 43 44 45 46 47 48 OJ L 388, 30. 12. 1989. Subsequently amended by Council Regulation No 3094/94 (OJ L 24, 29. 01. 1994) and Council Regulation No 3235/94 (OJ L 338, 28. 12. 1994). See the annual report on the fight against fraud for 1994. OJL 312, 23. 12. 1995. OJ L 170, 3. 7. 1990. OJ L 42, 16. 2. 1990. OJ L24, 29. 1. 1994. O JL 330, 21. 12. 1994. O JL 224, 21. 9. 1995. O JL 351, 14. 12. 1987. 21 Commission Regulation (EC) No 2949/9449 amends Article 11. It came into force on 1 April 1995 and lays down a system of fines and penalties applicable on the basis of amounts wrongly paid. Commission Regulation (EC) No 2955/9450 amends Articles 18 and 44 as regards the approval of specialized international control and supervisory agencies authorized to issue certificates of arrival and release for consumption in non-member countries. This regulation came into force on 1 January 1995 and states that the power to grant approval lies with the Member States. At the same time the adoption of this regulation also made it possible to lay down criteria for approval procedures that may be used by the Member States. It was also stipulated that an up-to-date list of the agencies approved by the Member States would be periodically published in the C series of the Official Journal of the European Communities. The Commission also set about revising Article 15 to counter the diversion of agricultural products which have been exported from the Community (with payment of refunds) and subsequently reintroduced, having been processed and having qualified for reduced import duties, on the basis of preferential agreements concluded with the non-member countries concerned (overseas countries and territories and ACP countries). The revised text makes the exporter liable for repayment of any refund wrongly paid out for the products. Commission Regulation (EC) No 1384/9551 amending Regulation (EEC) No 3665/87 concerns differentiated refunds, in particular the introduction of a system of penalties for changing the destination where the actual rate of refund is less than the rate fixed in advance. This is to avoid any irregular advance fixing of the destination to obtain higher rates of refund. Council Regulation (EC) No 1469/9552 provides for measures to be taken with regard to certain beneficiaries of operations financed by the Guarantee Section of the EAGGF who present a risk of non-reliability (the "blacklist" regulation). It is now possible to compile a list of traders, whether individuals or companies, who have been ill intentioned or particularly negligent. The Member States may impose tighter controls on these traders or other measures, which may go as far as suspension of payments or temporary exclusion from them. The Commission proposal for detailed provisions implementing this regulation is currently being adopted. 49 50 51 52 Amending Regulation (EEC) No 3665/87 as regards the recovery of amounts wrongly paid and sanctions (OJ L 310, 3. 12. 1994). Amending Regulation (EEC) No 3665/87 (OJ L 312, 6. 12. 1994). OJ L 134, 20. 6. 1995. OJL 145, 29. 6. 1995. 22 As regards the Community co-financing arrangements for stepping up controls by Member States, the Commission has drawn up a report on the state of play as regards implementation of the current arrangements with a view to formulating new proposals to resolve the shortcomings of the previous regulation. 53 A draft has already been produced and should be adopted by the Council in 1996. It provides for control operations in the Member States to be co-financed on the basis of cost- effectiveness studies on each of the projects the Member States are to submit to the Commission each year. Section 3: CUSTOMS 1. Customs transit arrangements On 29 March 1995 the Commission adopted a communication on fraud involving the transit procedure. 54 The objectives of the communication include making traders who work with the system, and in particular those who stand as guarantors for the principal, more aware of the sort of risks they should avoid taking in the course of their work, since the Commission is in any circumstances unable to authorize postponement of the payment of customs debts. Not only is there is no legal provision for this, but the Commission is actually duty-bound to protect the Community's own resources. The Commission communication puts forward specific measures to tighten control procedures and to improve and computerize transit procedures. Rather than describing once again the fraud methods used or the particular types of fraud,55 this section is intended to report in detail on the state of play as regards the measures put forward in this important Commission communication. Procedures: Action was taken on several of the measures in 1995. Changes to the provisions guaranteeing Community transit and common transit operations56 for sensitive goods. 57 All transit operations must be covered by a guarantee required to cover the amount of the customs duties and other taxes which would be payable in the event of the T document not being discharged. There are three types of guarantee under the Community and common transit arrangements: comprehensive, flat-rate and single-operation. The comprehensive guarantee is the most flexible arrangement for traders, since it is good for a series of operations by the same principal over a given period. The amount of the guarantee is calculated on the basis of criteria 53 54 55 56 57 Council Regulation (EEC) No 307/91, OJ L 37, 9. 2. 1991. COM(95) 108 final. See the annual report on the fight against fraud for 1994, Chapter 1, Section 5. The common transit procedure is an extension of the Community transit arrangements to cover the countries of the European Free Trade Area (EFTA) under a convention signed in 1987. Cigarettes, agricultural products, butter, milk powder, alcohol, sugar, meat and textiles. 23 laid down in the regulations and it covers only a very small portion of the customs duties (and other taxes) due on the operations. Under Article 360 of Commission Regulation (EEC) No 2454Z93,58 Member States may request the agreement of the Commission to the temporary prohibition of the use of the comprehensive guarantee for operations involving products where there is an exceptionally high risk of fraud. To date the Commission has issued two decisions on prohibiting the use of the comprehensive guarantee:59 one at the request of Spain for the transportation of cigarettes and one at the request of Germany for the transportation of certain agricultural products (live cattle, frozen beef and veal, milk, cream, butter, cheese, bananas, alcoholic beverages and other products containing alcohol, sugar, rye and wheat). Stricter eligibility criteria for traders to use comprehensive guarantees were also approved by the Customs Code Committee (transit section) and incorporated into the regulations at the beginning of 1996. The provisions governing the flat-rate guarantee (calculated in multiples of ECU 7 00060) were altered to increase the guarantee for products where the risk is greater to 100 % of the duties and taxes concerned for products for which the prohibition of the use of the comprehensive guarantee applies. Accelerated discharge procedure for sensitive goods (Community and common transit and TIR61). This procedure was devised as an administrative arrangement (whereby a copy of the transit document can be sent to the office of departure on the same day that the goods are presented at the office of destination). These provisions have also been integrated into the regulations. For the TIR system Resolution No 49 of 3 March 199562 introduced accelerated discharge procedures by fax, which came into effect on 1 September. Measures concerning transportation, travelling time (Community transit and TIR) and mandatory routing (TIR). These measures concern the transport of goods: as a rule, traders are free to choose any route to reach the office of destination. They may even change the 58 59 60 61 62 OJ L 253, 11. 10. 1993. This regulation lays down certain implementing provisions for Council Regulation (EEC) No 2913/92 setting up the Community customs code (OJ L 302, 19. 10. 1992). Commission Deci^. jn No 95/521/EC of 28. 11. 1995 at the request of Spain (which came into force on 1. 4. 1996), OJ L 299, 12. 12. 1995, and Commission Decision No 96/37/EC of20. 12. 1995 at the request of Germany (which came into force on 1. 3. 1996), OJ L 10, 13. 1. 1996. Article 367 of Commission Regulation (EEC) No 2454/93. The TIR system, which was laid down in a 1975 convention, governs the international carriage of goods by road. Council Decision No 95/285/EC of 24. 7. 1995 adopting this resolution, OJ L 181, 1. 8. 1995. 24 office of destination, for example in the event of resale to a different consignee. The only obligation is to present the goods together with the transit document at the office of destination. But now offices of departure are entitled to impose mandatory routes and may also prohibit changing the office of destination for operations involving sensitive goods. For the TIR system Resolution No 49 referred to above also allows time limits and compulsory routes to be imposed in the case of sensitive goods (measures that take effect immediately). A further measure involves excluding traders from using the TIR system if they repeatedly commit serious irregularities (Article 38 of the convention). Certain other measures were not able to be taken in 1995. They include :. Adopting, in the framework of the common transit arrangements, of different provisions adopted at Community level concerning guarantees. The adoption of this measure requires a consensus amongst the contracting parties. This was not possible in 1995 as Switzerland refused to adopt the banning of the use of the comprehensive guarantee for the transport of cigarettes. Calculation of the comprehensive guarantee on the basis of 100% (instead of 30% at present) of the duties and taxes at stake with the amount per guarantee certificate limited. Establishment of the obligation on the part of the customs office of departure to set a stricter time limit for presentation of the "T" document at the office of destination. Establishment of the financial liability of persons other than the principal, in particular the transporter. Establishment of the obligation to lodge a guarantee for goods in transit transported by sea. Establishment of the obligation to present proof of the Community status of goods transported by sea. Early Warning System A further important measure involves the implementation of an advance notification system for sensitive goods (operations under the Community transit, common transit and TIR arrangements). The office of departure notifies the office of destination immediately that goods have been placed under a particular scheme. This gives offices of destination the time to investigate the stated consignees. This means that they immediately know when goods have not been presented and can notify the office of departure accordingly. In the case of the TIR arrangements, an advance notification system has been in operation since 1 July 1994. The Commission is carrying out significant improvements to the system, with the aim of speeding up further the submission of information. 25 Computerization of the transit system The Commission, computerization of the system with three objectives in mind : the Member States and the EFTA countries embarked on to make the transit procedures work more effectively and efficiently for Customs services; to improve prevention and detection of fraud; to. make transit operations more fluid, safer and quicker for economic operators; As stated in the Commission communication, national and community investment costs are estimated at respectively ECU 13 million and ECU 10 "million over five years. Although it is obvious that computerization will not totally wipe out fraud, it is safe to assume that the cost of the project will soon be recouped. Task Force The Commission has set up a Community Transit Task Force to monitor closely the implementation of the reinforcements and improvements to the system on the basis of the comprehensive analysis of the system already carried out. 2. The Customs 2000 project On 4 April 1995 the Commission adopted a proposal for a European Parliament and Council decision63 adopting a Community customs action programme, to run from 1 January 1996 to 31 December 2000, to develop and expand on the pilot operation launched in 1994. 64 The programme, called Customs 2000, is designed to improve openness in the application of Community customs law and cooperation between customs authorities in the Member States so as to improve the overall performance of customs procedures and make controls at the Union's external borders more uniform. The programme must ensure that trade can flow as smoothly as possible in the internal market, as well as improving the recovery of duties and providing greater protection of the Community's financial interests. This is to be achieved through operations to combat customs fraud, as part of the Commission's overall anti-fraud policy, focusing on the following areas: * taking maximum advantage of existing legislative provisions and, where necessary, amending them; improving the collection and exploitation of information at Community level, making the fullest use of information technology and increasing the use of computer systems by customs departments; eliminating obstacles that impede swift action and effective cooperation by customs investigators, particularly as regards their investigative powers; ensuring that effective penalties are applied; 63 64 COM(95) 119 final. See the annual report on the fight against fraud for 1994, Chapter 1, Section 4. 26 conducting and expanding coordinated operations, in particular Community investigation and inspection visits to non-member countries; developing cooperation with non-member countries, in particular the associated countries of Central and Eastern Europe, and with the relevant international organizations and professional circles; ensuring that irregularities are followed up. 3. Chemical substances frequently used for the illicit manufacture of narcotics ("precursors") Arrangements for Community action on the control of precursors is covered by Council Regulation (EEC) No 3677/90. 65 The Commission has made sure that the practical measures needed to implement this regulation have also been extended to the new Member States. It is also planning to organize training courses on how to use the Community PREXCO66 database. Community action in this area has been on the increase. 67 Under the mutual assistance arrangements in 1995 the Commission notified the Member States of 36 cases, compared with 7 in 1994 On 24 September the Commission was given a negotiating brief by the Council to discuss the implementation of precursor control agreements with the 34 member countries of the Organization of American States. On this basis negotiations were immediately launched with the five member countries of the Andean Pact. 68 The negotiations were rapidly completed, which meant that the Community was able to adopt and sign the agreements on 18 December 1995. Section 4: ADMINISTRATIVE COOPERATION The Commission continued to follow up its contacts with the other Community institutions regarding its 1992 proposal for a regulation on mutual assistance in the areas of customs and agriculture. The proposal improves on and updates the corresponding provisions of Council Regulation (EEC) No 1469/8169 and provides a legal basis for the setting up of a database to hold the information exchanged under the CIS (customs information system) in cases where primary responsibility lies with the Community. 70 , 65 66 67 68 69 70 OJ L 357, 20. 12. 1990. Under Article 7 of this regulation, the provisions of Regulation (EEC) No 1468/81 on mutual assistance between Member States in the areas of customs and agriculture apply here mutatis mutandis. Precursor Exportation Control On 1 June 1995 responsibility for operations in this area was transferred from DG XXI (customs and indirect taxation) to the Secretariat-General's fraud prevention unit, UCLAF. Bolivia, Colombia, Ecuador, Peru and Venezuela. OJL 144, 2. 6. 1981. See the annual report on the fight against fraud for 1994, Chapter 1, Section 4. and Chapter 2, Section 1. 2. 3. 27 Concerning the Customs Information System, the Member States have adopted, in the Title VI context, the convention on the use of information systems in the field of customs and reached an agreement on the provisional application of this convention between some of the Member States. The convention still has to be ratified in the Member States and the central database which will be the nucleus of the project will not be created until the new mutual assistance regulation is in force. 71 A common position on the regulation was adopted by the Council in December 1994 and transmitted to the European Parliament in July 1995. The latter has not yet taken a position on the text. At intergovernmental level, a convention drawn up on the basis of Article K. 3 of the Treaty on European Union on the use of information technology for customs purposes was signed on 26 July 1995. 72 Among other things, the convention provides the legal basis for including in a database information to help in combating illicit trafficking in narcotics and other restricted products. The database is to be set up following adoption of the regulation repealing Regulation (EEC) No 1468/81 governing the areas of Community responsibility. Since the extension of the network to include the new Member States, there are now 323 SCENT/CIS73 terminals installed at departments designated by the Member States at administrative headquarters and at large ports and airports. As a computerized tool the network may be used for data on both Community and non-Community matters. 71 72 73 See Chapter 1, section 4 of the 1994 Annual Report on the Fight Against Fraud. OJ C 316, 27. 11. 1995, p. 33. CIS is a component of SCENT (System customs enforcement network). 28 CHAPTER 3: THE OTHER INSTITUTIONS Each of the other Community institutions, in its particular sphere, has continued to develop its own ideas or activities, aiming, like the Commission, to achieve the sort of progress in the fight against fraud which Europe's citizens and taxpayers wish to see. The importance of relentlessly pursuing the fight against fraud has been emphasized at the highest political level. Member States in particular are being urged to act, but the Community institutions must also respond. Responsibility for achieving results in this field does not, therefore, rest with the Commission alone. Seen in this light, the development of effective cooperation between the institutions is an important element which more than justifies the decision to devote a separate chapter of this report to the anti-fraud activities of the European Parliament, the Council and the Court of Auditors in 1995. Section 1: THE EUROPEAN PARLIAMENT The European Parliament is responsible for monitoring the use of Community funds. In its capacity of budgetary authority, Parliament discharges this institutional responsibility to the full, acting through the intermediary of its Committee on Budgetary Control and bolstered by its democratic legitimacy. It is primarily through the work of this Committee that Parliament closely follows all matters relating to the fight against fraud and the protection of the Community's financial interests, taking specific initiatives in these areas whenever it sees fit. In addition to its normal activity of questioning the European institutions and monitoring the budget, and as a way of introducing the appropriate political dimension into its action, Parliament organized a public hearing on the fight against fraud in the European Union budget,74 as it had done in 1993. This tackled three themes: corruption and organized crime involving the European Union budget, recovery of misappropriated funds, and the legal protection of the European Union's financial interests - legislation, investigation and prosecution procedures. Parliament also exercised the new power of inquiry conferred on it by the Treaty on European Union, using it for the first time in connection with the fight against fraud and, particularly, the Community transit procedures, a subject which Parliament had already worked on and discussed, notably in its Committee on Budgetary Control. A temporary committee of inquiry to examine the critical state of transit procedures was set up by a decision adopted on 13 December 1995. This is the first such committee to be set up by Parliament on the basis of Article 138(c) of the EC Treaty. It has 17 members and will report to Parliament within 12 months of the publication of the decision. 75 Finally, the European Parliament has announced an inter-parliamentary conference (to which members of national parliaments will be invited), organized on the initiative of its President and dealing with fraud affecting the European Communities' budget, to be held on 23 and 24 April 1996, to coincide with the IGC. 74 75 On 29 and 30 May 1995. It was published in OJ C 7, 12. 1. 1996. 29 Section 2: THE COUNCIL The Council achieved some particularly gratifying results as regards the protection of the Community's financial interests in 1995. The demands made by the Essen European Council in December 1994 were at least partly met. The national reports and the Commission's comparative study (presented in Madrid76) and the adoption of legislation (in Cannes and Madrid) represent the first step towards establishing the legal foundations essential to the effective protection of Community finances. Firstly, the Regulation on the protection of the Community's financial interests was adopted on the basis of the Commission's proposal for legislation on checks and Community administrative measures and penalties in all areas of the budget. 77 The Council will continue its efforts to introduce legislation on checks to complement this provision. The Madrid European Council called for this aspect to be dealt with as soon as possible, and in any event by the end of the first half of 1996. 78 Secondly, once its working parties and coordinating committees had examined the Commission's Title VI proposals,79 the Council adopted a convention for the protection under criminal law of the Community's financial interests on 26 July 1995. 80 Because of the strategic importance of the political message to be conveyed to Europe's citizens, it proved impossible to conclude the debate on the draft convention on the protection of the Community's financial interests in the time envisaged by the Council and the Commission. A supplementary protocol is currently under discussion, which would harmonize penalties for corruption among national and European officials and staff of Community and national institutions and agencies. Thirdly, the Council will continue to examine and analyse the national reports on the application of Article 209(a) of the EC Treaty and on the measures taken to combat waste and the misuse of Community financial resources. The summary prepared by the Commission at its request is an interim report which will serve as a basis for continued analysis, drawing on the Council's conclusions. 76 77 78 79 80 See Chapter 4, single section, page 33. See Chapter 1, section 2, point 1, page 10. The Council has delegated work on this topic to its Budget Committee (see 1994 annual report on The Fight Against Fraud, chapter 4, section 3). This specialist body has been prominent since the introduction of the Commission's annual anti-fraud report in preparing the political impetus articulated by the Council in specific conclusions which have been instrumental in securing substantial progress in 1995. See the chapter and section of the 1994 annual report on The Fight Against Fraud referred to above. The working party on criminal law and Community law was particularly active in 1995, producing significant practical results. See Chapter 1, section 3, page 13. 30 The Madrid European Council accordingly concluded that over and above the principle of assimilation embodied in the first paragraph of Article 209a of the EC Treaty,81 it is the duty of both Member States and the Community institutions to ensure an equivalent level of protection of Community finances throughout the Union. * * * The need for continued efforts to equip the Community with effective means of protecting its finances and ensuring effective penalties for serious financial fraud was strongly emphasized at the Madrid European Council, and indeed the subject of fraud and the protection of the Community's financial interests merited a section of its own in the final conclusions. Section 3: THE COURT OF AUDITORS In the course of carrying out its traditional tasks of examining the legality and regularity of revenue and expenditure and ensuring sound financial management by the Communities, the Court of Auditors, the body responsible for auditing the Communities' finances, has had ample opportunity to reflect on the problem of fraud in the Community budget. In its annual report on the 1994 budget,82 the Court defined its role in this area, reiterating that prime responsibility for the prevention, detection and investigation of fraud rested with the authorities which manage and supervise the implementation of the Communities' financial policies. Cooperation with the Commission is particularly important in this respect, for the Commission has to achieve the highest possible degree of transparency in all its expenditure and revenue operations and at the same time lay down clear and precise rules on the specific subject of fraud prevention and the exchange of information between the specialized departments of the two institutions. Procedures to strengthen co-operation between the Court of Auditors and the Commission are currently being studied. Section 4: THE COURT OF JUSTICE The Court of Justice of the European Communities has always had a vital part to play in the area of protecting the Community budget. The importance of that role has recently been made fully evident with the handing down of a number of decisive judgments. The judgment of 21 September 198983 laid the foundations for Member States' obligations towards the Community budget, which are now set out in the first and second paragraphs of Article 209a of the EC Treaty, i. e. the principle that they must take the same measures 81 82 83 See Chapter 4, single section, point 2, page 34. OJ C 303, 14. 11. 1995. Case 68/88 Yugoslav maize. 31 to counter fraud affecting the financial interests of the Community as they take in relation to their own financial interests, with details of how they should work together to this end. These principles have since been confirmed by the Court in the judgment given on 14 July 1994 in Milchwerke Kôln/ Wuppertal v HZA Koln/Rheinau*4 In other cases referred to in this report,85 particularly in Chapter 1, the Court gave detailed judgments on the lawfulness of Community administrative penalties imposed in the area of the common agricultural policy and recognized the Commission's power to impose such penalties in its implementing legislation (judgments of 27 October 199286 and 12 October 1995). 87 These judgments confirmed the Commission's power to impose penalties including the temporary exclusion of an operator from entitlement under an aid arrangement and payment of an amount greater than the amounts wrongly received or evaded. 88 Judicial review is indeed central to the issue and must be confirmed by the Title VI instruments relating to the protection of the Community's financial interests under criminal law. Although Article 8 of the Convention of 26 July 1995 on the protection of the European Communities' financial interests confers contentious jurisdiction on the Court and allows the Commission to refer matters to it (in relation to Articles 1 and 10 of the Convention), the question of competence to give preliminary rulings remains in abeyance. 89 The Commission attached to its proposal for an additional protocol to the Convention on the protection of the European Communities' financial interests90 an Article 17 providing, among other things, for jurisdiction to give preliminary rulings on the interpretation of the protocol. The Council's working party on the Court of Justice responsible for these matters is at present negotiating on the question of the Court's jurisdiction to give preliminary rulings under the Europol convention. The Commission's view is that at the very least any result of these negotiations must be extended to the Convention on the protection of the European Communities' financial interests, given the pivotal role assigned to the Court in specifying the obligations borne by the Member States in relation to combating fraud. 84 85 86 89 90 Case C-352/92. See also the 1992 report on the fight against fraud, Title I, Section 2. 8. Case 240/90. Case 104/94. Article 5 of Council Regulation (EC, Euratorp) No 2988/95 on the protection of the European Communities' financial interests). When the convention was signed, several of the delegations tabled declarations whereby ratification at a late date would be subject to the conferring on the Court of Justice of powers to give preliminary rulings on the Europol and CIS conventions and the convention on protection for the financial interests of the Community. See Chapter 1, Section 3, point 2, page 15. 32 CHAPTER 4: THE MEMBER STATES The inclusion of Member States' anti-fraud activities in the Commission's annual report is a natural development designed to strengthen the partnership between national authorities, which carry out considerable field work, and the Commission, which is bound by its responsibility for the budget to monitor the proper use of Community funds. 91 The fight against fraud is primarily the responsibility of the Member States but it is a matter of concern to everyone. There were several developments in 1995 concerning the separation of responsibilities, which led to concrete action at the highest political level. Between the Essen European Council in December 1994 and the Madrid European Council in December 1995, fifteen national reports on measures taken to combat wastefulness and the misuse of Community funds were produced. This is the subject of the first section of this chapter. Single section: NATIONAL REPORTS ON THE MISUSE OF COMMUNITY RESOURCES - APPLICATION OF ARTICLE 209a In its conclusions of 11 July 1994 the Council (Ecofin) asked the Commission to report on Member States' implementation of Article 209a of the EC Treaty by the end of 1995 at the latest. 92 The Essen European Council (9 and 10 December 1994) called on the Member States to submit reports on the measures they were implementing to combat wastefulness and the misuse of Community resources. The Cannes European Council (26 and 27 June 1995) took note of the Member States' reports and requested the Commission to prepare a comparative summary, which was presented at the Madrid Council (15 and 16 December 1995). 1. Methods used The comparative summary, based on the national reports, takes stock of progress in implementing Article 209a of the EC Treaty on protection of the Community's financial interests and does a round-up of the measures taken by the Member States to combat the misuse of Community resources. To ensure that the national reports followed a standard pattern so that a proper comparison of the national systems could be made, the Commission devised a general layout for the reports as requested by the Council and this was approved by the Council 91 92 It should not be forgotten that around 80% of Community budget expenditure passes through national treasury departments. O J C 2 9 2, 20. 10. 1994. 33 (Ecofin) on 20 February 1995. By and large the Member States adhered to the proposed layout. Even so there were considerable differences between the reports, since some Member States tended to stress recent developments in their legal set-up or regulations, while others concentrated more on the organization of their inspection departments. Overall, despite the short deadlines, the efforts made by those who compiled the nationa- reports enabled the Commission to produce the required summary and report. 93 To satisfy the Council's request, the Commission also set out the avenues to be explored with a view to devising operations to step up the fight against fraud and wastefulness, so as to ensure that the Community's financial interests are properly protected. 2. Implementation of the first paragraph of Article 209a of the EC Treaty: state of play The first paragraph of Article 209a of the EC Treaty reads: 'Member States shall take the same measures to counter fraud affecting the financial interests of the Community, as they take to counter fraud affecting their own financial interests''. This is known as the 'assimilation principle'. This writes into the Treaty the rule enunciated by the Court of Justice in Case C-68/88 [1989] ECR 2965 (judgment given on 21. 9. 1989), specifying the scope of the first paragraph of Article 5. The national reports reveal that the Member States apply Article 5 of the EC Treaty, as interpreted by the Court, in conjunction with Article 209a of the Treaty. Most of them accordingly cover both the measures they have taken to treat fraud against the Community's interests in the same way as fraud against their own financial interests and the effectiveness of their systems of penalties for infringements of Community law. 2. 1 Legal instruments Preventive measures received little attention. The Member States tended to have separate systems of penalties for revenue (covered by tax and customs law) and expenditure (with minor variations depending on the category). In the case of revenue the extent to which the system of penalties has been assimilated can be assessed by comparing the system which the Member States apply to Community revenue (traditional own resources) and the system they apply to their own revenue (VAT, excise duties); In the case of expenditure certain Member States have a specific offence of fraud involving subsidies, which also covers Community financing. The comparison revealed discrepancies between the systems applied to revenue and expenditure regarding the effectiveness of the legal measures taken. This means that the objective for certain Member States should be to tighten up the level of protection. Two things are immediately clear: 93 See the summary report entitled "Comparative Analysis" and the recapitulative document, COM(95)556 final. 34 the comparative analysis revealed that only part of the necessary data had been collected, which means that additional information is needed, particularly as regards prevention; the difference between the approaches taken to revenue and expenditure raises the problem of the consistency and effectiveness of operations, since it fails to reflect the fact that the techniques of organized financial crime vary according to the area of activity, but are broadly similar as between revenue and expenditure. 2. 2 Administrative organization Departmental organization as described in the national reports shows that special structures capable of dealing with own resources as a whole either already exist or are being set up. As regards the monitoring of agricultural expenditure, the national payment agencies are basically designed to achieve the quantitative targets set by Community rules. There is a predominance of independent arrangements for trade-related measures (export refunds) as there is for revenue controls (note in particular the role of special bodies and of the national audit bodies). The Structural Funds are subject to control procedures applied by the authorities responsible for implementing the Community programmes, in particular at local level. The summary analysis shows that most of the agencies are experienced and that the effectiveness of their controls has been proven at the level of national finances (customs duties, taxation). More generally, the public accounting rules that protect national finances in all the Member States are also applied to Community expenditure, most of which is channelled through the national budgets. However, there is a lower level of protection of the Community's interests than in the case of revenue. Since the controls are the responsibility of the management agencies, which are unfamiliar with techniques for combating large-scale fraud, they tend to be of the traditional audit and account checking kind and are, therefore, not necessarily the most effective way of detecting large-scale embezzlement and organized crime. One way of significantly increasing the level of protection of Community resources would be to have special anti-fraud controls carried out by specialists at national level grouped into structures with far-reaching powers of investigation and working independently of the management agencies. 2. 3 Results Only half of the reports provided actual figures relating to the inspections carried out and the administrative and legal action taken. In any case, the figures given need to be approached with some caution. This is a sensitive area, and all sorts of interpretations are conceivable: it may be that statistical notification methods have improved (which is a good thing in itself), or that the anti-fraud departments have been more active, or that fraud itself has been on the upsurge. This is doubtless why few Member states provided detailed statistics or offered analyses or commentaries in a directly usable form. There was no identification of risk areas and the sort of data in standardized form that would need to be examined to arrive at proper Community-wiae typologies was unfortunately not provided. 35 The national reports do not provide enough information to assess the level of assimilation of recovery procedures for misappropriated funds. 94 In all but a few cases, there is no mention of instruments relating primarily to public creditors (including Community ones). There is no description of the procedures and no mention of the links between finance departments and investigation departments. Furthermore, for the purposes of cross-border operations there should be greater use of the opportunities offered by mutual assistance in the areas of customs and agriculture. 3. Implementation of the second paragraph of Article 209a of the EC Treaty: s t a te of p l ay The second paragraph of Article 209a of the EC Treaty, which is intended to step up cooperation, reads as follows: 'Without prejudice to other provisions of this Treaty, Member States shall coordinate their action aimed at protecting the financial interests of the Community against fraud. To this end they shall organize, with the help, of the Commission, close and regular cooperation between the competent departments of their administrations. ' This new provision supplements the duties laid down in the first paragraph of the same article. It is intended to create the necessary conditions for stepping up the fight against organized crime targeted at Community finances. This will require the introduction of close and regular cooperation arrangements between the departments involved. With this particular end in mind the Commission set up COCOLAF, the Advisory Committee for the Coordination of Fraud Prevention. 95 The information provided by the Member States shows that considerable use is made of non-Community administrative cooperation and assistance instruments. These instruments are designed to protect national finances, but more structured cooperation arrangements are needed to achieve the level of protection required for Community finances under Article 209a of the EC Treaty and to resolve the difficulties currently encountered (particularly as regards the time taken to reply). The implementation of more comprehensive cooperation on enforcement to tackle cross-border fraud committed by organized crime rings is a particular aim of Article 209a of the EC Treaty. The discrepancies between the Member States' judicial arrangements that showed up in the reports are a serious risk and highlight the need for direct and prompt cooperation. Some of the reports also mention police cooperation, without making a clear distinction between it and judicial cooperation. The value of administrative cooperation in this area right from the initial investigation stage is made clear (information exchange between the Member States and with the Commission). Some very practical suggestions are also put forward on stepping up enforcement cooperation, such as the possibility of conferring comparable powers on national investigators. 94 95 See Chapter 6, section 4, page 74. See Chapter 5, section 2, page 43. 36 The national reports make it clear that, although the Community instruments for administrative cooperation and mutual assistance are not totally neglected, their full potential is not exploited. Some of the reports even referred to certain difficulties that can slow down investigations and enforcement proceedings, such as administrative, legal and technical differences which hamper the movement of information between Member States. 4. Avenues to be explored There are many, but it has not proved possible to achieve the initial aim of this exercise, which was to discover whether there was a correlation between the measures and means intended to protect national finances and those intended to protect the Community's financial interests. It was not possible to produce a proper comparative analysis of the results of the fight against national and Community fraud owing to a lack of sufficiently detailed data. So although the principle of "assimilation" was clearly demonstrated, it is trickier to draw any conclusions on exactly how far this has progressed in the Union. Analysis of the arrangements in place (instruments, organization) reveals that by and large Community revenue is better protected than Community expenditure and that on the expenditure side agricultural expenditure appears to be scrutinized more closely than expenditure under the Structural Funds. Be that as it may, as our inquiries and analyses currently stand, there are insufficient grounds for concluding that there is 100% equivalence. In addition, protection of financial interests differs according to the Member State. There needs to be ongoing evaluation of the practical steps taken to ensure that the Community's financial management is really transparent and that its financial interests are protected beyond any doubt. This leads to the thought that the principle of assimilation must be completed by the concept of equivalent protection throughout the Community. With this in mind, the Commission has put a series of avenues to be explored at the end of each descriptive section in the summary report to the Council. One set of considerations concerns the assimilation principle. Apart from the problems inherent in having one approach for protecting revenue and another different one for monitoring the proper use of expenditure, there is a need to adopt measures that are up to the job. This means measures that are effective and that deter crime rings specializing in financial crime. The same applies to prevention, which it was not possible to analyse sufficiently on the basis of the national reports. This realization points to the need for a clear policy of administrative penalties in the area of expenditure. Penalties of this type already exist at national level. Obviously they are independent, but they could be added to the Community administrative penalties that are provided for, in the area of agriculture for example. The horizontal Commission regulation adopted by the Council lays down 37 a legal basis that should serve as a reference framework, for example, for introducing effective penalties on the expenditure side generally. 96 In the same vein, the transposai into national legislation of the convention on the protection of the Community's financial interests should provide the legal basis the Member States need to create a specific offence of fraud against the Community budget. 97 In this context, it makes sense for companies that enjoy the benefit of Community funds to incur the penalties in the event of fraud. There should be greater equivalence of penalties between the Member States, so as to avoid creating areas of lighter enforcement and deflecting business towards the "softer" Member States. A second set of considerations concerns the organization of national inspection arid anti-fraud departments. Specialist investigation services should obtain the necessary powers to carry out their tasks in an increasingly difficult context. Moreover, the development of multidisciplinary structures with wide-ranging investigative powers should be highlighted. There are numerous examples: Belgium's OCDEFO (Central Office for the Prevention of Organized Economic and Financial Crime) consists of operational staff specializing in customs and taxation as well as prosecution staff and police officers. Italy's Guardia di Finanza is also on its way to becoming a key instrument of a policy laid down at the highest level by the Interministerial Committee for the Prevention of Community Fraud. 98 This list is far from exhaustive, but these examples serve to show that there is an interesting trend which is significant in that it takes account of the special nature of Community fraud prevention work (lengthy large-scale investigations that require the services of experts in different fields). A third set of considerations concerns the results of anti-fraud work. Reducing the risk of fraud involves extracting the maximum benefit from intelligence gathered in the field. For example, the national reports showed that the Member States had become aware that fraud was no respecter of national boundaries and had taken measures accordingly. Fraud involves such a vast amount of information that more detailed knowledge of the results of anti-fraud work is needed right from the initial investigation stage to recovery and the ordering of penalties. This means that national practices should be made more similar at Community level. The same applies to controls, which should be made comparable throughout 96 97 98 See Chapter 1, section 2, page 10. See Chapter 1, section 3, page 13. This Committee was set up, in the spirit of Article 209a of the EC Treaty and answers to the Prime Minister's own department for the coordination of Community policies, to which the operational unit of the Guardia di Finanza established by Decree of the Prime Minister dated 11 June 1994 is attached. 38 the Community, recovery rules, administrative penalties and the rules governing their imposition. Several of the national reports reveal the enduring desire for simpler Community regulations. The Commission feels the same way, and the action it is taking on this subject is designed to ensure that fraud is not facilitated by excessively complex regulations. The last set of considerations concerns cooperation arrangements. A number of the national reports acknowledge the need to develop them. This may provide scope for solving the problems mentioned in connection with the operation of the mutual assistance mechanisms. There is also a need to improve the operational links between the various departments responsible for prosecuting the perpetrators of serious and complex fraud, for example by building up personal contacts and exchanges of officials. As regards cooperation at the enforcement stage, the information provided in the national reports reveals just how urgent it is for the national authorities to have effective arrangements to meet the need to protect the Union's finances: this will involve more fluid information exchanges between the national enforcement authorities and the relevant Commission departments, increasing the means and powers available to fraud investigators and, in the area of criminal law, taking the measures needed to implement the Convention on the protection by the criminal law of the Community's financial interests as quickly as possible. In the same vein, emphasis was placed on the need to adapt the information systems for the Community mutual assistance mechanisms. Certain cooperation arrangements put forward by the reports should be explored and built on (such as action to be taken on cross-checking of goods in free circulation). Mutual assistance on recovering debts owed to the Community needs to be made more efficient, regardless of which budget area is affected. The Advisory Committee for the Coordination of Fraud Prevention meets regularly to assess the strengths and weaknesses of the arrangements and plan any necessary alterations. The analysis carried out by the Commission is the first stage in an ambitious programme to tackle fraud simultaneously from all sides, encompassing all aspects of anti-fraud activity including prevention, enforcement and administrative and judicial cooperation. Maximum use must be made of both the national and Community intelligence set-ups, in line with the actual risks and circumstances encountered. Operations devised at the highest political level become credible only when concrete progress is made in all areas relating to the protection of the Community's financial interests. 39 The next stages in the programme will involve putting these new initiatives into effect and progress will be reported on at forthcoming European Council meetings. As stressed by the Madrid European Council, Community finances cannot be effectively protected unless the policies implemented are supervised in a comparable way throughout the Community. Both the institutions and the Member States are working towards this end. 40 CHAPTER 5: COOPERATION AND PARTNERSHIP As in previous years, this Chapter describes the fraud prevention seminars held by the Commission, either on its own initiative or at the request of the Member States. In addition to these seminars, contacts with the specialist departments at national level may take the form of bilateral meetings or consultations within the appropriate institutional framework, namely the Advisory Committee for the Coordination of Fraud Prevention. In 1995 this Committee organized its work so as to provide an overall view of fraud prevention policy. The Member States, for their part, are continuing to adapt their specialized departments to the interdisciplinary and multisectoral dimension of Community fraud. Contacts with the Commission are on an ever-larger scale and initiatives have been launched in various areas. Some examples are given in this Chapter (see Section 3 below). Section 1: SEMINARS AND EXCHANGES OF OFFICIALS Since SG/UCLAF was set up in 1988, a large number of general seminars have been held to spread awareness of the coordinated action taken by this Unit and the Commission's other specialist departments. These seminars have dealt with a wide range of topics which have now been brought to the attention of almost all the departments concerned in the Member States. It was essential to ensure that working methods (inspections and investigations in the field) were adapted to the Community dimension of fraud. Just as the economic context is constantly changing, so too are the fraud mechanisms employed. Initially, therefore, the aim of the general seminars held by the Commission was to acquaint the competent officials with the characteristic features of transnational Community fraud. These general seminars (other than those held for the new Member States) were followed in 1995 by special-subject seminars. In accordance with its work programme, the Commission continued to hold special training courses for the officials responsible at national level for the prevention of fraud against the Community budget. In 1995 general training courses were held for officials from the new Member States: in Brussels two awareness-raising seminars were held for a small number of senior officials ( for Swedish, Finnish and Austrian officials); seminars were also held in the Member States for larger groups of officials (in Finland and in Sweden). 99 The officials concerned belonged to the tax inspectorates, customs, audit offices, police and judicial authorities. Another of the Commission's priorities is to provide specialist training for departments and bodies engaged in the fight against economic and financial crime, 99 A seminar will be held in Austria in the first quarter of 1996. 41 including prosecution and other legal action (on-the-spot intervention teams, administrative and legal authorities, etc. ). To this end, special training courses were held in Brussels in 1995: for senior officials in the Danish police; for inspectors in the ECD (a branch of the Dutch Ministry of Economic Affairs); for inspectors in Italy's Guardia di Finanza. Five seminars were held in the Member States: in Portugal, a seminar on the Structural Funds100 for officials of the IGAT (the Inspectorate-General for the National Administration); in Cologne (Germany), a seminar for prosecutors dealing with economic crimes, including fraud to the detriment of the Community finances; in Barcelona (Spain), a seminar on the Cohesion Fund; in Deauville (France), a seminar for members of the Police Judiciaire (criminal investigation department); and in Athens (Greece), a seminar for officials responsible for management, surveillance and the prosecution of irregularities in the field of the structural policies. By holding these different types of training courses the Commission hopes to develop direct and fruitful cooperation with the national bodies concerned. 101 Direct contact between Community officials and those responsible for day-to-day fraud prevention is seen by the Commission as a way of ensuring mutual understanding and trust. A similar aim is pursued by the "workshops",102 where preparations are made for enquiries or multisectoral investigations. As part of the grander pre-membership strategy, the Community is also holding information seminars and meetings in the countries of Central and Eastern Europe and is thus establishing contact with economic enforcement officials, with whom it will soon be cooperating on the prosecution of fraud. The first such information seminar, which dealt with operational cooperation and the exchange of data, was held in Brussels on 10 and 11 July 1995 and was attended by eight customs inspectors from the Czech Republic (with whom the Commission had already worked on certain special investigations). In line with its policy since 1994, the seminars which the Commission plans to hold in the near future will be on a smaller scale (the most effective format) and will take a more specialized approach. Lastly, fourteen seminars were held in 1995 under the Matthaeus programme (a Community action programme for the training of customs officials organized by DG XXI), seven of which were particularly concerned with the prevention of customs fraud. Similarly, eleven seminars were held under the Matthaeus Tax programme. 103 Three were held specially for the officials responsible for VAT and excise duties in the three new 100 101 102 103 In 1996 particular attention will be given to training in this particular area and in that of the Cohesion Fund. See Section 3 of this Chapter. These working groups, which study specific cases, provide an excellent opportunity to exchange views on the problems encountered and the solutions to be applied. Generally speaking, these solutions involve closer judicial cooperation or call for resources which may or may not be available (it may be recommended that the Commission define new legal bases). The purpose of this programme is to improve administrative cooperation and develop mutual understanding as Member States implement the single market in the field of indirect taxation. Control measures to prevent fraud are essential in this area. 42 Member States and dealt with the Community rules governing these matters. Officials from the Member States explained the operation of the single market and shared their know-how by outlining their control systems and mechanisms. These Matthaeus and Matthaeus Tax programmes also lead to exchanges of officials between the Customs administrations of the Member States (390 in 1995) and between the administrations responsible for fiscal questions (118 officials in 1995). There were also sixty exchanges between Member States under a scheme to develop audit methods for the scrutiny of company accounts. Section 2: THE ADVISORY COMMITTEE FOR THE COORDINATION OF FRAUD PREVENTION The activities of the Advisory Committee expanded considerably in 1995. Drawing on the experience gained in 1994,104 the Commission, which chairs the Committee, and the delegations from the Member States continued their deliberations on various subjects relating to the protection of the Community's financial interests, with special reference to the Commission's anti-fraud programme for 1995 and its 1994 annual report. In 1995 the Committee held three plenary meetings: on 1 February, on 31 May and 1 June (two days) and on 4 October. The usefulness of the Committee's work was emphasized by the Council in its conclusions of 19 June and 27 November 1995 on the fight against fraud, particularly as regards the monitoring of the Commission's anti-fraud programme, the scrutiny of the 1994 annual report, and the follow-up to the national reports and the Commission's comparative analysis of the aspects covered by the EC Treaty. 105 In addition to the scrutiny of the abovementioned reports, the Committee's meetings were mainly concerned with the development of legal and operational means of achieving more effective fraud prevention. The Committee provided a forum where Member States could obtain information direct from Commission staff. Wide-ranging discussions were held on matters relating to the regular flow of information between Member States and between the specialized national departments and the Commission (UCLAF) (particularly as regards the notification of irregularities discovered by the Member States in the field of the Structural Funds and the Cohesion Fund). The nature and tasks of the various sectoral committees dealing with fraud prevention were confirmed. The bodies dealing with each specific area are thus the Committee for Mutual Assistance, the Advisory Committee on Own Resources (ACOR) and the Standing Committee on Administrative Cooperation in the field of Indirect Taxes. These Committees may comprise subcommittees or "technical" working parties, which are attended by experts from the Member States and by representatives of the Commission departments whose activities have repercussions on fraud prevention. Mention may be 104 105 The Advisory Committee was set up by a Commission decision of 23 February 1994. See the annual report on the fight against fraud for 1994, cited above. See Chapter 4, single section, page 33. 43 made of the SCENT/CIS Working Party (which answers to the Committee for Mutual Assistance), the sub-group on irregularities in the agricultural sector, the various working parties on data processing and accounts, the ACOR sub-group on recovery and the anti-fraud sub-group of the Standing Committee on Administrative Cooperation in the field of Indirect Taxes. Section 3: PARTNERSHIP WITH SPECIALIST DEPARTMENTS IN THE MEMBER STATES The Commission's annual report for 1994 mentioned the contacts established between the UCLAF and certain specialized bodies in the Member States. These contacts, which are frequently informal, form part of the overall policy pursued by the Commission under its fraud prevention programme. Know-how is exchanged at meetings where the emphasis is placed on operational, aspects (directly measurable in terms of results) of the fraud investigations conducted under the partnership arrangements. Training courses, special-subject seminars and similar events also provide opportunities which the Commission earnestly and discreetly endeavours to exploit. The contacts established in 1995 were constructive and positive, the Commission having cooperated throughout the year with each of the national departments responsible for the detection, prosecution and prevention of fraud committed in the Member States to the detriment of the Community budget. These were primarily the customs departments concerned with frauds involving complex transactions in the trade in products requiring a significant degree of co-ordination which is carried out using procedures well established at Union level. They also included the financial control departments coming under the Ministries for Economic and Financial Affairs (such as the Inspection Générale des Finances in France and the IGAE106 in Spain), the national inspectorates for various sectors (including the social sector) and criminal investigation departments in cases requiring prosecution in the courts (national police and gendarmerie), e. g. organized financial crime. One example is the Belgian OCDEFO (Central Office for the fight against Economic and Financial Crime). 107 This body works under the auspices of the Ministry of Justice. Investigators are placed at its disposal by the Belgian gendarmerie, the Belgian CID and the Comité Supérieur de Contrôle. Since each of these bodies has its own traditions and its own approach, the aim is (in the words of the report) to place new police methods and a spirit of enterprise at the disposal of law enforcement. The OCDEFO carries out operational enquiries in those areas of the Community budget which are directly affected by large-scale fraud. It also investigates money laundering, serious tax offences, stock-exchange offences and serious social fraud. 106 107 Intervention General de la Administration del Estado. OCDEFO published its first report, which covered 1994, in November 1995. 44 To the same end Italy's Guardia di Finanza has set up a special unit for the prevention of Community fraud. 108 It aims to provide an appropriate response to the need to implement the first paragraph of Article 209a of the EC Treaty, which is concerned with equivalent protection of the Community's financial interests. The Guardia di Finanza is a multidisciplinary body which deals with market intervention as well as own resources and the Structural Funds. It has all the necessary means for carrying out exhaustive controls in all parts of Italy. The Italian Government intends this special unit to be responsible chiefly for the centralized management of control operations targeting offences against the EC budget. Since the essential purpose of the unit is to pursue a long-term objective, the ongoing nature of its work must be emphasized. In Spain the Guardia Civil has the task of protecting and monitoring the State's tax interests and is responsible for taking the necessary steps to prevent any type of smuggling on land or sea. Combining its roles of administrative police force and criminal investigation department, the Guardia Civil has the capacity to carry out all sorts of investigations, from simple administrative enquiries to the prosecution and prevention of elaborate offences perpetrated by transnational criminal organizations. Section 4: MUTUAL ADMINISTRATIVE ASSISTANCE IN CUSTOMS MATTERS BETWEEN THE COMMUNITY AND NON-MEMBER COUNTRIES In line with the briefs obtained from the Council for the negotiation of agreements containing protocols on mutual assistance in the Customs field, the Commission held further talks with several non-member countries with a view to strengthening the Community's arrangements for the prevention of customs fraud. In 1995 agreements containing such protocols were initialled or signed with Tunisia (signed on 17 July), Morocco (initialled on 16 November), Israel (initialled on 20 November and interim agreement signed on 18 December), Slovenia (signed on 17 July 1995) and the Trans-Caucasian republics (Armenia, Azerbaijan, Georgia, signed on 15 and 19 December 1995). Pending the entry into force of the agreements signed with most of the CIS countries, interim agreements on mutual administrative assistance on customs matters falling within the Community's sphere of competence were signed with Belarus (June), Kyrgyzstan (9 February), Moldova (2 October), Russia (17 July) and Ukraine (1 June). On 1 January 1995 the free trade agreements signed with the Baltic States in 1994 came into force. Moreover, the Europe Agreements signed with the Czech Republic, Slovakia, Romania and Bulgaria entered into force on 1 February 1995, thus extending mutual assistance beyond the confines of the Community. 108 Known as the "Nucleo Spéciale per la repressione delle frodi comunitarie". 45 Negotiations continued with the Faroes, Jordan, Egypt, Lebanon, South Africa, the United States, Canada and South-Korea. Lastly, the European Parliament approved the conclusion of an agreement on customs union between the Community and Turkey. This agreement, which also includes a protocol on mutual assistance, entered into force on 1 January 1996. 46 CHAPTER 6: INVESTIGATIONS The need for protection for the Community's financial interests becomes clearer with events on the ground every year that passes. The range of forms of delinquent conduct is such that two different types of fraud can be distinguished. The first is fraud (or irregularity) which could be described as individual forms of conduct by economic operators seeking to use their competitive position on international markets to boost their market share to the maximum, often interpreting the rules in ways that are at the limit of what is lawful. Such cases may often be national in scale, in which case the Commission's operational task is to support the Member States in their inspection and investigation work by giving them the added benefit of its experience of the methods in force at the Community level, depending on the cases involved and any difficulties which arise. Then comes conduct which is deliberately fraudulent in intent and organized in a thoroughly businesslike way. There are criminal aspects to this type of fraud which need to be looked at in the broad sense. Such fraud is committed either by individuals who, because of the very nature of their activities, intentionally organize their activities in ways commonly described as major financial crime or organized crime and whose ability to mobilize substantial resources, particularly money, is far from negligible. There is also a transnational aspect to it, and there may well be a congeries of individual offences committed in several Member Slates (the multinational aspect) but linked to each other with a single, probably covert, decision-maker behind them. These can have a devastating effect on the credit of the Community, its institution and the Member States. The Commission's job here is to take unmistakable and vigorous action against this nuisance, in collaboration with the Member States' investigation services. It has accordingly decided to reorganize its internal structure so that a single, independent and specialized department is responsible for providing the requisite support to national authorities that do not have this type of structure. Investigating and detecting fraud is not, of course, an end in itself. The need is for tougher enforcement measures against major crime and for equivalent criminal penalties in all Member States for serious fraud against the Community budget; the scale and complexity of the problem demand an immediate response that will be have the maximum deterrent effect. That is why, in the context of the Council's work,109 the Commission's paramount wish is that the Member States should reach agreement on implementing an appropriate penal policy. As soon as an investigation strays beyond national frontiers, the Member States' scope for action is m limited, procedures are lengthy, not to say never-ending, and the grounds for the Commission to act become abundantly obvious, especially when it comes to the target it has set itself of successfully establishing effective legal cooperation between the national authorities responsible for investigating cases. The fact is that fraud on this scale is invariably transnational. The higher the financial stakes, the more sophisticated the methods applied. The networks behind it exploit the smallest loopholes to take advantage of ongoing developments and adjust efficiently by 109 See Chapter 1, Section 4, page 18. 47 setting up the requisite structures and establishing circuits for the exchange of information and money in arid sometimes even outside the territory of the European Union. The difficulties facing the Member States and the Commission are innumerable and have to do with the peculiarities of this type of organized financial crime as it hides behind an appearance of legality to conceal its main objective, which is to loot the Community's coffers. It seeks to exploit to the full the weaknesses generated by the combined operation of Community rules and the national legislation governing their application, in order to attack sectors identified as vulnerable and more difficult to monitor where the potential gains are very high compared with the risks, which are still only minor in the absence of a proper penal response. One of the main areas under attack is that of Community transit, where, when fraud is detected, the application of the guarantee system to the principal is still not widespread enough. 1 w Organized crime is also active in other types of fraud against the Community budget, particularly fraud involving the origin and value of products exported from certain third countries to the Community, and the preference arrangements. Inspections carried out on the spot show that fraud by some operators in these areas involves several Member States and entails making identical resources available over a single period. The defence systems some of these operators set up also presuppose a high degree of preparation and collusion between suppliers in third countries and importers. In some cases, evidence has come to light that there are organizations, generally based outside the Community, which have accomplices in several countries and are capable of supplying certificates of origin that are either false, or genuine but drawn up in the names of front companies; these can be used by buyers in the Community to have goods released for free circulation without having to pay the normal customs or anti-dumping duties on them. In other cases, the initiative in carrying out the fraud has come from within the Community itself. For instance, European companies, fully aware of the circumstances, have non-originating raw materials delivered to assembly or processing firms and import the finished products under certificates of preferential origin which they know full well have been wrongly obtained. In both such cases, the true origin of the goods is, at least on the surface, "laundered" away by completing the customs formalities. The consignees can market the goods in the Community through the lawful distribution channels without having to run the risks or face the extra costs associated with illicit selling. * * See Chapter 2, Section 3, point 1, page 23. 48 This chapter is, logically enough, structured to take account of these findings. As the rise in the number of transnational fraud cases discovered has shadowed the development in import-export dealings between the Community countries and with third countries, it is reasonable to group all the sectors concerned under one heading which identifies these particular cases. The statistics speak for themselves: Of 12 000 cases notified by the Member States between 1991 and 1995 and affecting traditional own resources and expenditure financed by the EAGGF Guarantee Section, 120 (or 1% of the total) by themselves account for more than 50% of the total budgetary impact. It has also emerged that 3% of the total number of cases notified by the Member States involve individual amounts of more than ECU 1 million, which represents altogether more than two thirds of the overall sum notified (in evaded duties and expenditure diverted or unduly received). the 273 cases under Of the Commission, 20% involved sums of more than ECU 100 000, and in half of them the amounts involved were more than ECU 1 million. investigation co-ordinated by Fraud cases involving organized crime are few and far between, but their effect on the budget is considerable. The Commission therefore focuses particular efforts on such cases because it is in these areas, where fraud is being organized from one or more countries, where there is greatest need of active support from the Community. The illustrative character, financial impact and variety of the investigations reported in this chapter are a sign of the need for both the national and Community anti-fraud agencies to keep up the alert on all fronts. Section 1: MAJOR ORGANIZED TRANSNATIONAL FRAUD CASES This section describes a number of inquiries which have involved the carrying out of a considerable number of on-the-spot controls in partnership with the Member States. In some of them, carried out in 1995, a large number of investigations were made on the spot in partnership with the Member States. They brought to light major fraudulent practices involving milk products, cereals and rice, olive oil, beef, tobacco, sugar and wine products. A specific paragraph is devoted to cigarette smuggling (a matter being dealt with by a special task force in the Commission), the European Social Fund (structural policies) and tourism (direct expenditure). The inquiries mentioned in this section have sometimes lead to missions of enquiry spread out over several years. 111 The departments responsible in the Member States, working in conjunction with the Commission, made great efforts to detect fraud rings. Major fraud circuits have been brought to light, many of them operated by organized crime networks. These are complex transnational or multinational frauds involving a number of Member 111 Indeed, certain cases have been mentioned for the first time in the earlier annual reports, in particular those of 1993 and 1994. 49 States and certain non-member countries. The response has been to establish close cooperation between the departments concerned in Member States and the authorities in the non-member countries. 1. 1 Refined sugar 112 It was established that 1 375 tonnes of C sugar, which were removed from export procedures to Eastern Europe and never actually left Italian territory, were used for domestic wine production. The same investigation further revealed that some 1 243 tonnes of non-C sugar were later used for sweetening wine. Of the 65 people accused of smuggling, irregular use of sugar in wine production, tax offences and forgery, 38 were remanded in custody. The Asti Public Prosecutor's Office informed the Commission of the progress of judicial proceedings in Italy in this case in 1995. The Italian authorities still have to ascertain whether other offences were committed resulting in losses for the Community budget. 1. 2 Exports of cheese, meat and milk products 113 These products were diverted to Greece although they were declared for export to Jordan, Bulgaria and Lebanon with payment of refunds. Investigations revealed that the fraud was the work of organized financial crime professionals using networks of companies in Denmark, Germany, Cyprus and Greece, whose names changed regularly but whose role was always the same: to claim to be exporting outside the Community with payment of refunds. The firms operated through various supply channels and also used different means and methods of transport to escape detection. Forged certificates for release for consumption in non-member countries were produced in support of the applications for export refunds from the Community. In reality the customs documents declaring that the products had reached their destination were forgeries, as the products were reexported to the Community and released for free circulation in Greece. Investigations are continuing in the Member States concerned, as other companies involved in the scheme have been identified. An administrative cooperation mission went to Bulgaria to collect further evidence. Criminal proceedings have been initiated against four people, one in Denmark, one in Germany and two in Greece. 112 113 See the annual reports on the fight against fraud for 1993, Chapter 4, Section 1. 1, and for 1994, Chapter 5, Section 2. 2. 1. See the annual report on the fight against fraud for 1994, Chapter 5, Section 1. 1. 4. 50 Steps have been taken to recover ECU 5 million in wrongly paid refunds from suppliers, and the customs duties and agricultural levies evaded in Greece since 1989 total around ECU 9 million. 1. 3 Imports of milk pov. er and butter into the Community 114 During inquiries carried out in the Community in 1991 and 1992 concerning the removal from the Community transit arrangement of some 200 consignments of milk powder being carried from Belgium to Spain under cover of customs documents drawn up in Antwerp, Spanish investigators undertook checks at Spanish companies exporting milk powder in order to determine where the products were coming from. They found that certain companies were purchasing milk powder, via intermediaries, from a firm claiming to be importing a chemical product declared to be coming from the Czech and Slovak Republics. In the course of administrative cooperation missions in the Czech and Slovak Republics in 1994 and 1995 under the protocol on mutual assistance, it was found that 30 consignments of milk powder (720 tonnes) and some 200 consignments of frozen butter (5 000 tonnes) exported from these countries in 1992, 1993 and 1994 had been covered by a false declaration of product in^Spain. The products falsely declared were respectively milk powder and frozen butter. The agricultural levies evaded in Spain are estimated at around ECU 15. 7 million. During an administrative cooperation mission in Austria in 1994 it was found that large quantities of butter and milk powder originating in Eastern Europe were being processed in Austria (under the inward processing arrangements). This processing involved adding a minimum percentage (less than 1%) of prepared cultuie mediums (micro-organisms) to the raw material, enabling them to be imported into the Community under a customs heading carrying no import duties. The goods were then exported to the Community, where they were released for free circulation (in Italy, Germany and Spain) under tariff headings for which no agricultural levy was applied. When the goods were cleared through customs, the operators presented genuine tariff papers issued by the German authorities on the basis of erroneous information. Tests carried out ex post showed that the tariff classification requested was not the right one. Over 20 000 tonnes of milk powder and over 6 000 tonnes of butter were wrongly declared in this way. The duty evaded comes to over ECU 66 million. See the ai,:. ual report on the fight against fraud for 1994, Chapter 5, Section 1. 1. 1, 51 1. 4 Removal of milk powder and butter from the Community transit arrangements115 The investigations into the Spanish companies were initiated at the request of the Commission following the discovery of purchases of milk powder outside the usual marketing channels. In December 1995 the Spanish authorities questioned four members of an organized gang making up a network of European companies irregularly bringing milk powder into Spain from Estonia. The firms involved diverted from the Community external transit arrangements to the internal market 650 tonnes of milk powder originating in Estonia and intended for Morocco. Included in this smuggling network were two Spanish companies based in Vic and Montornes del valles whose officers were charged with offences. Additional investigations by specialized departments in the Member State concerned are continuing to determine what role was played by certain Dutch, French and German companies. The investigations already completed in Germany, the Netherlands and Spain suggest that the cost to the Community is around ECU 650 000. The Spanish authorities are investigating other similar fraudulent operations involving an estimated ECU 1 million. These inquiries are being coordinated by the Commission, which is also helping with the preparation of criminal proceedings. 1. 5 Removal of sugar from the Community transit or TIR arrangements 116 In June 1994 the German authorities informed the Commission about a case of fraud involving the dispatch of sugar originating in the Czech Republic and Poland to non-member countries (Morocco and Angola) in transit through the Community. The goods, which were carried by Czech and Polish haulage companies under the TIR convention, were supposed to have left the Community in Spain or Portugal. In actual fact the goods remained in Spain and Portugal, after customs documents with forged stamps were presented. As the sugar was not exported out of the Community, the customs duties suspended under the transit arrangements became payable. A total of 19 000 tonnes of sugar, covered by some 950 TIR carnets, was exported in this way from Poland and the Czech Republic by some 150 different haulage companies. The Spanish and Portuguese authorities confirmed that the fraud had taken place, in that the sugar dispatched was not presented at the customs offices concerned. The financial impact is some ECU 9 million. Judicial proceedings are in progress in the countries concerned both in the Community and elsewhere. 1 See the annual report on the fight against fraud for 1994, Chapter 5, Section 1. 1. 1. See the annual report on the fight against fraud for 1994, Chapter 5, Section 1. 1. 3. 52 1. 6 Meat carousel 117 This operation involved imports of live cattle from Eastern Europe to Italy under the inward processing arrangements followed by re-exports of low-quality cuts and offal to Malta. After being stored in Malta the goods were brought back into the Community. The investigations which the Italian authorities, in collaboration with the Commission, have now completed reveal that when the containers from Malta and bound for Eastern Europe were passing through Italy the contents were removed and were then exported with refunds, along with other products from the internal market, to various non-member countries. The financial impact of this matter was finally put at ECU 18. 5 million in evaded levies and ECU 24 million in wrongly paid export refunds. Working jointly with the Italian authorities, the Commission sent a mission to Gabon, the main destination for the diverted products, which were systematically declared for export as "pieces of meat from the hindquarters of adult male bovine animals". Evidence was found on the spot that most of the products reaching their destination were low-quality cuts from the front quarters of the animal. The refund papers were discharged only because the Gabonese entries for home use carried the general description "beef. In a number of cases it was shown that the Gabonese import declaration carried a clear description of the real nature of the meat. In those cases the exporter got an agency of an international security company to replace this compromising original by an import certificate describing the goods simply as "chilled beef. Examination of the business and transport papers which it ought to have carried out before making out the certificate would have enabled it to describe the goods in accordance with the reality. Criminal charges have been brought against 119 people for conspiracy, fraud against the Community budget, smuggling, tax evasion, forgery and corruption. 42 people have already been convicted and assets worth around ECU 30 million have been confiscated. Because of the seriousness of the case the Commission and the Italian State have both asked the judge directing the preliminary investigation in Turin to join a civil action to the criminal proceedings. 1. 7 Imports of butter-based food products118 Investigations continued in 1995 in this case involving imports of butter-based food products originating in Hungary and the Czech Republic. The products were declared as "sauce" (or liquid butter) when imported into Italy and San Marino, with the result that the duties due were not paid. 117 See the annual report on the fight against fraud for 1994, Chapter 5, Section 2. 2. 2. See the annual report on the fight against fraud for 1994, Chapter 5, Section 1. 1. 2. 53 Criminal charges have been brought against the importer in Italy. The San Marino authorities are responsible for recovering the arrears on the products imported into San Marino. The recovery procedure is still in progress in respect of the duty owed. It was established that the goods were processed in part into butteroil and re-exported from the Community with payment of refunds. Although butteroil does qualify for refunds, the amount may under no circumstances exceed the amount of import levies paid. All the destinations of the consignments to the Community have been traced. The Member States have been asked to recover the difference between refunds paid and import levies charged. The amounts have not yet been determined. The Italian authorities' investigations have further revealed that the same network was behind the irregular imports of 4 000 tonnes of Hungarian butter, declared as a cocoa-based preparation to evade customs duties and agricultural levies. This product was then sold, mainly in France, as Italian butter. Investigations are continuing in France and Italy with a view to determining the ultimate destination of these products and the exact amount of the wrongly paid refunds. Organized crime networks were found to be involved in all these cases. As more than one Member State was concerned, it was soon apparent that administrative action at national level alone would not put an end to the fraud. Judicial cooperation between Member States is more necessary than ever, if only to implement concerted action, the only effective way of bringing the perpetrators to justice. 1. 8 Removal of Czech butter from the Community transit arrangements This case concerns the irregular removal from the Community transit procedure (document Tl) in Italy of butter originating in the Czech Republic and being carried from Denmark to non-member countries (Egypt, Hungary, Slovenia, etc. ) without payment of customs duties. The Italian authorities seized three consignments of butter being carried by lorry from Denmark; the destination shown on the transport documents was clearly forged. It has not yet been possible to identify with certainty the consignor and intermediaries involved, but it has been established that a Swiss resident placed most of the orders, which were sent from the Czech Republic via Denmark to non-member countries and then invoiced to front companies in the Bahamas, the Virgin Islands or Switzerland. The investigations coordinated by the Commission following this initial discovery further demonstrated that between 31 March 1994 and 27 September 1995, 46 of the 91 consignments which transited through Denmark and were declared as being re-exported to non-member countries were covered by forged declarations of unloading. Most of the customs offices through which the goods were leaving the Community were in Italy (Trieste, Naples, etc. ). The customs documents were discharged by means of forged stamps. The goods were then illegally brought back into the Community without the customs duties and agricultural levies being paid. 54 The investigations are continuing to determine whether export refunds were also paid on this butter. The investigations launched by the Commission probably put a stop to this traffic. However, since 27 September 1995, three new consignments of Czech butter bound for Portugal (again under the Community transit arrangements) have attracted the attention of the Swedish authorities in Malmô. Two of these consignments were illegally unloaded and the third was seized by the Portuguese authorities (on the basis of information supplied by the Commission). Large amounts of customs duties and agricultural levies are involved. On over 2 700 tonnes of butter they will come to some ECU 6 million. The person behind this fraud is also suspected of being responsible for other illegal consignments of butter and sugar from the United Kingdom and the Netherlands which were discovered in the past by Italian investigators. This case shows how quickly criminal organizations can adapt, once they have seen that customs officers in some Member States have their eyes open for consignments of this kind, and then find other ways of concealing their illicit trade (e. g. by operating via Denmark and Sweden). 1. 9 Removal of beef from the Community transit arrangements During the investigations on the diversion of refined sugar,119 it was found that a number of containers of beef from Argentina were unloaded in Rotterdam and placed under the external Community transit arrangements (Tl documents) for carriage to Croatia. The customs documents were discharged in Nice, France, where a local transit agent issued new transit documents which were then discharged by means of forged Italian customs stamps. The beef was released onto the Italian market without payment of customs duties. The customs investigations into this transit agent revealed that there had been many other similar operations with consignments unloaded in the French port of Le Havre. When it entered the Community, the beef belonged to two British companies which sold it to Italian and German customers, who claimed to have bought it in good faith on the internal market. The investigations in Italy showed that this was not entirely true. Some 700 tonnes of beef was ECU 3 million. involved and the duty evaded totalled around Judicial proceedings are in progress in France and Italy. 19 See the annual report on the fight against fraud for 1993, Chapter 4, Section 1. 1. 55 1. 10 Removal of bananas from the Community transit arrangements Bananas from South America were unloaded in various northern ports in the Community. They were placed under the Community transit arrangements for carriage by road to non-member countries. This operation is covered by Tl documents (all taxes and duties being suspended). On the basis of information supplied by the Belgian and German customs, investigations, coordinated by the Commission, were carried out by specialized departments in these two countries. They brought to light a major operation involving the irregular introduction of bananas into Italy without payment of customs duties and agricultural levies. The Italian authorities discovered in particular that a total of 290 consignments of bananas from South America had been smuggled into Italy. That represents some ECU 15 million in evaded duties. Eight suspected smugglers were arrested and charged with forging customs documents. Their personal assets have been seized. Additional enquiries are in progress to determine whether consignments of the same type have also been sent to other Member States. 1. 11 Fictitious exports of wine to non-member countries A close watch was kept on two ships suspected of being involved in fictitious exports of wine to non-member countries. Inquiries by Commission departments in Italy, France, Greece and Slovenia brought the following irregularities to light: Some of the wine carried by these ships was exported by French, Italian and Greek firms with payment of export refunds. These consignments were intended for Croatia, Slovenia, Bosnia and Romania but were not placed on the market at destination. They were placed under a special customs arrangement, similar to inward processing, referred to on the documents presented as proof that it had been released onto the local market; another part of the consignment was never unloaded but diverted to Switzerland, for which no export refund is payable. In this case forged evidence of entry for home use was presented so that refunds were paid; the remainder of the wine turned out to be a substitute product which did not satisfy the quality requirements to be eligible for refunds. The Italian and Greek authorities have started judicial proceedings against the firms involved. The Commission is collaborating with the judicial authorities examining the cases. Joint action by the Commission and the Member States has produced the following results: ECU 2 million was recovered for fictitious exports of wine (which failed to reach its destination); 56 ECU 1. 8 million was not paid as the paying agencies had been alerted to the fraud; recovery procedures are in progress for refunds totalling ECU 3 million. Further inquiries are being made. 1. 12 European Social Fund: FLATHUS programme The inquiry initiated by the Commission in November 1994 in the new German Lander focused on the transnational part of the FLATHUS programme. 120 Inquiries, which continued in 1995, into a vocational training programme for young workers in the new Land of Thuringen revealed irregularities. Community funds were being diverted by the head of a Danish training institute with the complicity of a German national official. The investigations have so far brought to light two fraudulent practices: 1. Before 1993 the head of the institute in question had secured exclusive rights over most of the transnational training operations. Subsequently he had obliged subcontractors (in France, Ireland and the United Kingdom), by means of a second contract, to pay part of the agreed amount either to a bank account in Luxembourg in his own name or to a. subsidiary of a German technical assistance association in Belgium. 2. From 1993 onwards fictitious invoices were issued for services allegedly performed for the programme. Cooperation and coordination of inquiries between the Commission and the national administrative and judicial authorities gave rise to suspicions that ESF subsidies were being used irregularly. After conducting searches the German judicial authorities obtained hard evidence and a German official was arrested. Inquiries are still in progress in the Member States concerned. 1. 13 Tourism121 (direct expenditure) After the matter was referred to the Belgian and French authorities in 1994, the Commission sent the results of the inquiries to the Greek authorities on 13 March 1995 under the second paragraph of Article 209a of the EC Treaty. Research and inquiries into all aspects of tourism policy since it was set up in 1989 have required constant coordination by anti-fraud departments and the active assistance of judicial departments in the Member States concerned. 120 121 FLATHUS: FôrdermaBnahmen des Landes Thuringen mit Unterstùtzung des Europâischen Sozialfonds (Programme for the promotion of the Land Thuringen with support from the European Social Fund). See the annual report on the fight against fraud for 1994, Chapter 5, Section 5. 4. 57 The procedures set in motion in Belgium and France revealed, in addition to the diversions of Community funds detected in 1994, large secret payments to members of Commission staff in return for the award of grants. The necessary investigations were conducted on Commission premises in Brussels, the Commission's immunity from legal proceedings, the inviolability of its documents, buildings and archives and its right to business confidentiality were waived. On the basis of the findings in France and Belgium five people were taken into custody (two Commission officials and three recipients of grants). On the basis of the internal audit of the authorizing departments, the Commission began disciplinary proceedings against the head of unit managing the policy in question and a temporary staff member. The head of unit was removed from his post on 22 June 1995 and the temporary staff member was dismissed on 28 July 1995. At the same time orders were issued for the recovery of ECU 1. 4 million from 15 recipients on the basis of initial controls. The specific features of fraud organized both inside and outside the Commission require the continuation of close collaboration between the Commission's anti-fraud coordination departments and the authorities of the Member States in order to provide evidence of responsibilities. Closer judicial cooperation in this new area should make it possible to bring all those involved in such types of fraud before the Courts. 1. 14 Cigarette smuggling Task Forces122 are being set up to combat fraud in particularly sensitive areas. This is because many complex and highly elaborate fraud networks have been found to be operating in specific sectors with the result that missions are constantly being sent out, notably to non-member countries. Task forces are a reflection of the Commission's determination, under its strategic work programme, to develop operational cooperation between Member States and with non-member countries and to assign a maximum of resources to tackling major cases of fraud which frequently have a substantial financial impact on the Community budget. The Commission set up a first task force (or task group) in 1994 to combat cigarette smuggling, as perpetrated by organized gangs. 123 This group is made up of officials from the Commission and representatives of investigation departments in Member States. The role and essential task of this group is to work out an overall strategy, to assess the information available, to circulate it within the group so that it can be processed and 122 123 These are made up of experts from the Member States and the Commission in a particularly sensitive area of trade. Their role is to share information common to a number of fraud files. They are to be distinguished from ad hoc groups of investigators (Commission and Member States) handling a specific case and internal Commission task forces (TAFI, transit, tax evasion, etc. ). See the annual report on the fight against fraud for 1994, Chapter 4, Section 3. 1. 1. 58 exploited by the departments directly concerned, which can then select, coordinate and become involved in correctly targeted international operations. Within this framework a homogeneous strategy has been set up, to apply at Community level and based on administrative, operational and technical cooperation. This illustrates the response to the fact that the 'other side' is an organization operating not just Community-wide but sometimes even world-wide. Combating fraud of this kind demands an organized, structured response constructed on an ad hoc basis to correspond to the case in hand. A number of operations mounted jointly with the Member States, involving international investigations, have led to the identification and discovery of a number of major smuggling routes, in particular involving transport and illegal trade in cigarettes in the southern Member States. Some of these operations are in progress; an important feature is investigations on the ground in which the Task Group is fully involved alongside the Member States and which have led to the dismantling of large smuggling networks and the identification of the associated administrative networks. Investigations coordinated by the Commission in Denmark, Portugal and Spain identified a stock of 92 million cigarettes illegally diverted during the transit procedure from Denmark to Portugal. The procedure was discharged by means of forged stamps intended as proof that the cigarettes had been through Portuguese customs. The customs duties evaded total some ECU 15 million124. Recovery procedures are in progress. Similar investigations uncovered a stock of some 102 million cigarettes (with ECU 13 million in evaded duty) which had been diverted from Finland and Sweden to Spain. The duty is in the process of being recovered. Judicial investigations are being conducted in Spain and Portugal with a view to indicting the main offenders. Other investigations into the fraudulent reimportation into the Community of cigarettes initially bound for non-member countries were carried out in Austria, Germany, the Netherlands, Greece and Italy. These were part of wider operations designed to breach the UN embargo on former Yugoslavia. Some 120 million cigarettes were seized in Germany, Italy and the Netherlands. Two aircraft suspected of being used to circumvent the UN sanctions were seized by the Dutch authorities. The information compiled in the course of these inquiries is directly connected with the result of investigations being conducted at the same time in another Member State where 130 million cigarettes have been seized and those responsible for this smuggling, which involves over a billion cigarettes and lost resources of around ECU 100 million, are being prosecuted. Other inquiries are being coordinated by the Commission, in particular in France, Spain, Ireland and the United Kingdom (100 million cigarettes seized and around ECU 10 124 All the amounts quoted on this case also include an estimate of the national resources involved. 59 million in resources lost); another case has been uncovered in Spain (450 million cigarettes and ECU 45 million in lost revenue). Additional inquiries are in progress in Portugal after 76 lorry-loads of cigarettes bound for Eastern Europe failed to turn up at the exit customs offices in Germany, the procedure having been discharged by forged German customs stamps (the duties involved come to around ECU 76 million). A further seven lorries bound for Switzerland likewise failed to reach their destination (amounts involved: around ECU 7 million). Eight containers belonging to the same organization were seized in Portugal. The Commission is showing that by conducting and coordinating such operations through the Task Group it can reasonably hope to secure all guarantees of long-term results, as the information compiled at various levels reveals the modus operandi of the criminal organization thus helping to identify the authors and put them out of action. Similarly the determination to take administrative and judicial action is designed to produce a significant improvement in cooperation with the authorities in non-member countries. This determination is now beginning to bear fruit. it is indispensable for cooperation between Member States and Clearly the Commission to be legitimized not only in practice but also by unequivocal legislative instruments giving the Commission the power to add value both at the investigation stage and at the prosecution stage. It is high time that the judicial cooperation instruments conceived in a different environment and now visibly obsolete be replaced by something more appropriate. 125 Section 2: MAJOR PREFERENTIAL AGREEMENTS126 FRAUDS RELATING TO ORIGIN AND The measures and privileges accorded in the framework of targeted commercial policies which are subject to misappropriation mainly concern the preferential agreements but also anti-dumping duties and textile agreements (quantitative limits). Frauds committed in these different sectors are increasingly complex and often involve several of these provisions at the same time. The inquiries presented in this section represent typical examples of the complexity of these frauds not only in their financial aspect where the consequences for the Community budget in cases of evaded customs duties can be very weighty but also in their economic implications in cases of misappropriations which distort the conditions laid down in the commercial policies defined between the Community and non-member countries. 125 126 See Chapter 1, section 4, beginning at page 18. Preferential schemes include the autonomous GSP (Generalized System of Preferences) and all Preferential schemes include the autonomous C concessionary schemes set up by agreements with non-member countries. 60 2. 1 Industrial goods 2. 1. 1 Computer diskettes - Macao In May 1995 representatives from the Commission and two Member States took part in an administrative cooperation mission to Macao to check the origin of more than 200 million diskettes imported from there since July 1993. On-the-spot investigations revealed that the diskettes had been exported from Macao under cover of certificates of non-preferential origin,127 although they could not have been assembled there. The diskettes must have been imported from China under a false description and re-exported from Macao. This trade had continued right up until the arrival of the mission in Macao and involved a total of some 126. 6 million diskettes. The other 73. 9 million diskettes had been produced locally, but production consisted merely of assembling semi-finished products supplied by Chinese factories (the same factories which supplied the re-exported diskettes), using Japanese, Korean and American components. In these circumstances, anti-dumping duties applicable to diskettes of Chinese origin will have to be paid on all these goods, falsely declared to be of Macao origin. The amount of own resources at stake runs to ECU 18. 7 million for the period from July 1993 to April 1995. 2. 1. 2 Computer diskettes - Thailand the In March 1995 a Community delegation, consisting of representatives from Commission and the two Member States chiefly concerned, carried out an administrative cooperation mission to determine the origin of more than 50 million diskettes imported from Thailand since August 1993. * Initial investigations revealed that around 5. 4 million diskettes, declared as originating in Thailand, but actually shipped from Hong Kong, had been imported using false in subsequent certificates of non-preferential Thai origin. investigations showed that these goods, which were not sent from Thailand, had been manufactured in China and re-exported via Hong Kong. They should therefore have been subject to anti-dumping duties applicable to diskettes of Chinese origin. Evidence gathered On-the-spot inquiries also revealed that nearly 44. 8 million diskettes which had actually been exported from Thailand under cover of certificates of preferential origin issued by the relevant authorities were not eligible for preferential treatment, either because they had previously been imported into Thailand (24. 1 million units), or because of the value of the imported components used in assembly in Thailand (20. 7 million units). 127 Certificates of preferential origin are issued by the authorities of the exporting country so that goods can be imported into the Community at a reduced (or zero) rate of customs duty. These certificates are binding on the customs authorities at the office of entry into the Community. These certificates are presented to the Community customs authorities (offices of entry), to obtain the benefits of the preferential system. Certificates of non-preferential origin are also issued by the authorities of the exporting country, to define the origin of goods for whatever purpose may be required. 61 In view of the assembly conditions in Thailand and the origin of the components used to assemble finished products re-exported from Thailand, customs duties will also be applied to the diskettes imported into the Community under cover of certificates of preferential origin. The amount of own resources evaded comprises ECU 617 000 in customs duties for 44. 8 million diskettes and ECU 4 170 000 in anti-dumping duties for imports totalling 50. 2 million diskettes. A few months after the mission, the Thai authorities acknowledged that the certificates of preferential origin had been wrongly issued. It may therefore be possible to recover the customs duties evaded using false descriptions of preferential origin, but recovery of the anti-dumping duties which are economically of greater significance than the abuse of preferences accorded requires additional investigations to be carried out to determine the real (non-preferential) origin of the goods. 2. 1. 3 Bicycles from Vietnam the In April 1995 a Community delegation, consisting of representatives from Commission and the Member States chiefly concerned, undertook an administrative cooperation mission to check the origin of 523 241 bicycles exported from Vietnam using certificates of preferential origin since April 1992. The bicycles had been assembled in Vietnam using imported components supplied by a Hong Kong firm, which also exported Chinese bicycles to the Community. Despite facing a number of difficulties - the importer in Vietnam tried to prevent access to stocks of components and documents - the mission was able to prove that all the materials had been imported from China and Hong Kong and that the certificates of preferential origin issued for these products since 1992 were incorrect. The amount of customs duties evaded runs to ECU 6. 85 million. In view of the circumstances in which the products were finally assembled, anti-dumping duties totalling ECU 9. 78 million may be payable. At the end of the mission, the Vietnamese authorities, which afforded the Community mission all the assistance it required, acknowledged that the certificates of preferential origin had been wrongly issued. They have now put a stop to these practices. The Commission has identified exports of this kind to France (the principal Member State involved), the United Kingdom, Belgium, Germany and Denmark. * * * This information was established following inquiries carried out in non-member countries jointly by the member States and the Commission. The latter is committed to carrying out inquiries of this kind because, without results or findings on the ground, no concrete result is possible. In this regard, it should be noted that other missions planned for 1995, at the Commission's initiative or at the request of Member States, had to be postponed because of a lack of cooperation on the part of the non-member countries concerned, 62 namely Indonesia and Malaysia (computer diskettes) and the Philippines (satellite broadcasting receivers). Since these delays may jeopardize the subsequent establishment of the own resources entitlements at stake, the Commission has urged all the Member States concerned to take guarantee measures. In addition to false declarations of origin, it has been established that frauds aimed at evading payment of anti-dumping duties were committed by groups or linked companies by means of false declarations of value, covered by false documents or invoices issued by companies established in tax havens. The Commission has notified the Member States, under Council Regulation (EEC) No 1468/81 (mutual administrative assistance), of certain findings which gave rise to the establishment in 1995 of import and antidumping duties evaded by means of false declarations affecting the tariff classification, origin or value of goods. On the basis of this information alone, the Member States have established that duties amounting to an overall figure of ECU 5. 7 million were evaded, including ECU 3. 85 million of anti-dumping duties, resulting from false declarations of the value of potassium imports. It is worth stressing that formal transmission of information to the Commission by the Member States is vital for its monitoring of the results of investigations and recovery of 128 own resources. 2. 2 Textiles 2. 2. 1 Honduras Doubts arose as to the true origin of tee-shirts imported into the Community which were declared as originating in Honduras. A Community administrative cooperation mission went to Honduras in May 1995 to work with the local authorities on checking the validity of more than 1 200 certificates of preferential origin apparently issued in Honduras and submitted since 1991 on import into the Community (particularly in the Netherlands and, to a lesser extent, Germany and Belgium). It was found that 1 188 of these certificates were entirely false and that the imported goods in question had never been on Hondluran territory, but had in fact been loaded in various Asian ports (particularly in China) and shipped direct to the Community. Another 52 certificates had actually been issued by the Honduras authorities, but for products which had not been manufactured there under the terms of the GSP (General System of Preferences) rules of origin. All the certificates concerned have therefore been cancelled by the Honduran authorities. The amount of duties evaded comes to more than ECU 2 million, relating to more than 12 million items of clothing. 128 See 1994 Report, Chapter 1, Section 1 and Chapter 6, Section 3. 1. 63 Armed with this information, the Member States concerned can now initiate proceedings to recover the duties evaded. Investigations are continuing into the true origin of the goods which were not manufactured in Honduras in order to charge the quantities concerned (more than 10 million items, mainly tee-shirts) to the quotas of the country of actual origin (probably China). 2. 2. 2 Nepal In July 1995 the Commission organized an administrative cooperation mission to Nepal to work with the relevant Nepalese authorities on checking the validity of more than 500 GSP certificates of origin supposedly issued there, which were submitted on the import of textile goods into the Community. The investigation revealed that 45 of these certificates of origin, concerning more than 10 million items, had been falsified. The goods covered by these certificates had never been on Nepalese territory, but had been imported into the Community direct from the Far East. Inquiries continue to establish the true origin of the goods described on the false certificates and to obtain economic compensation with regard to the non-member countries concerned (situated in the Far East). It was also established that 153 other certificates of origin had been wrongly issued for products manufactured in Nepal in breach of the Community's GSP rules of origin. Although the manufacturers, who also exported the goods in question, had made written statements on the matter, the Nepalese authorities had not deemed it necessary to cancel the offending certificates. They were therefore formally requested in writing to check once more the validity of the certificates and inform the Commission of their findings, within the prescribed time-limit. In the Commission's view, the only possible outcome is that the certificates be declared invalid. Serious doubts have arisen as to the legality of a further 285 certificates of origin. They have been sent to the Nepalese authorities for ex post checks. The amount of own resources at stake in connection with the fake or wrongly issued certificates comes to ECU 2 million. 2. 2. 3 Laos A Community delegation to Laos in November 1995, made up of representatives from the Commission and five Member States (France, Germany, Denmark, the Netherlands and the United Kingdom) found that 300 certificates of origin presented on the import into the Community of around 4 million items of clothing had been forged: they had not been issued by the Laos authorities. At the same time, 2 700 other certificates of preferential origin (concerning 22 million items) had been wrongly issued for goods which did not meet the criteria applicable under the GSP. The delegation's findings were endorsed by the Laos authorities, which confirmed in writing that all the goods inspected were ineligible for preferential treatment on import into the Community. The certificates of origin were either fake or issued in error. 64 However, as a less-developed country, Laos may ask for a derogation from the Community's GSP rules of origin. The authorities have therefore requested permission to continue to use fabrics imported from other Asian countries for manufacture. The Member States concerned now have the necessary information at their disposal to pursue investigations into Community importers and recover the customs duties involved. The amount of own resources at stake comes to nearly ECU 7 million. However, further investigations will be necessary to identify the true origin of the products imported into the Community using the false certificates (about 4 million items) so as to obtain a charge on the quantitative limits of this country. 2. 2. 4. Textiles from China129 Consultations were held with China in 1995 with a view to charging certain quantities of textiles imported illegally between 1990 and 1993 to the quantitative limits applicable under its textiles agreement with the Community. Investigations had confirmed that the goods in question were of Chinese origin. They had been imported into the Community either as contraband (evading the transit arrangements) or as goods supposedly originating in other countries. China has agreed that 13 778 000 items may be charged to its quantitative limits for 1995. This quantity corrresponds to about 20% of the Chinese quota for the year 1995, for the category "textile 4" (tee-shirts etc. ). 2. 2. 5 Textile goods from the United Arab Emirates (TJAE)130 Investigations have covered a number of different cases and circuits. In January 1995 Commission representatives visited the UAE to work out new methods of cooperation for identifying the true origin, as opposed to the declared origin, of a large number of consignments of textile goods from the UAE to the Community. In July the Commission sent the UAE authorities, as agreed, a list supplied by the Member States concerned so that the UAE could launch the appropriate preliminary investigations. This list contains details of more than 1 300 consignments covering around 80 million products, including tee-shirts corresponding approximately to the quota for China for 1995 or to 150% of the quota for India for. the same year. However, by October on-the-spot investigations had hardly begun and no findings were yet available. The Commission therefore reminded the UAE authorities of their obligations in this respect. On the basis of negotiating briefs approved by the Council, Commission representatives * held discussions with the UAE authorities in Abu Dhabi in October 1995 on the conclusion of a bilateral agreement on trade in textile goods, which would, among other 129 130 See 1994 Report, Chapter 5, Section 3. 2. 1. See 1994 Report, Chapter 5, Section 3. 2. 1. 65 things, establish a system for inspecting exports of textiles from the UAE (licences, etc. ). The agreement was initialled on 11 November 1995. 2. 3 Fishery products 2. 3. 1 Salt cod from Iceland A Community delegation, consisting of representatives from the Commission and the Member State concerned, visited Iceland in April 1995 as part of an administrative cooperation mission to check the preferential origin of consignments of salt cod. The investigations revealed that several local firms had used fish originating in Russia in the manufacture of products which were then exported to the Community, contrary to the agreement between the Community and Iceland on preferential tariff treatment. The own resources at stake amount to ECU 1 million. Other firms importing salt cod from Russia had obviously learned lessons from the investigations into the "shrimps" case,131 as they had re-exported the finished products manufactured using ingredients not originating in Iceland to non-member countries only, thereby justifying the certificates issued for the products exported to the Community. The Icelandic authorities have declared the inapplicable certificates of preferential origin invalid and have launched recovery proceedings against the importers concerned. 2. 3. 2 Canned tuna from Ecuador Following Community missions to Ecuador in March and October 1994 the five Member States concerned have begun proceedings to recover the customs duties evaded, totalling ECU 11 million. After the investigations in Ecuador, a Community mission visited the United States to gather evidence that importers in three Member States were fully aware that they were carrying out illegal imports. 131 See 1992 Report. 66 These Community missions in non-member countries are organized either at the request of one or more Member States or at the Commission's initiative (the Commission handles relations with such countries). The aim is to seek for all evidence that may help as-' îrtain whether exported goods are in a lawful position as regards origin and then gather evidence to determine the scope of the fraud and the damage it has caused. Clearly this is the first stage, still upstream of the heavy burden of investigation work needed to provide an assurance that the rules of origin and the various preference schemes are being properly applied and to prove what diversions are taking place. In any event, where there is failure to abide by the terms of preferential arrangements established by agreements or on an autonomous basis, the Member State will obviously have to proceed to recover amounts due by way of Community revenue. Moreover, on the basis of findings and reports of Community missions, the national authorities will have to pursue inquiries to ascertain whether the fraud was intentional and come to the proper conclusions as regards penalties, especially in cases of fraud within the definitions of the Convention for the protection of the Community's financial interests that must be referred to the criminal courts. The Commission will do all that is necessary in 1996 to act in response to the the form of a current situation and will propose a political communication concerning preferential schemes as has been done for transit arrangements. initiative in Section 3: OTHER FRAUDS IN AGRICULTURE This section covers a selection of inquiries affecting a large variety of measures (export refunds, various types of production aid), showing that investigations are being carried out into a growing number of sectors. Some of these cases have been found to reflect errors of interpretation of Community rules, but in others there has been deliberately fraud fraudulent mechanisms. intent, the methods used in such cases revealing sophisticated 67 3. 1 Exports of sugar to Sweden In August 1995 the Swedish authorities reported a case of possible commercial speculation involving sugar, which had taken place just before Sweden's accession to the European Union. 132 A Swedish company, whose main line of business is not trading in sugar, stocked around 25 000 tonnes of sugar in two warehouses. Inquiries in Sweden revealed that 22 000 tonnes of this sugar, which had been exported from Germany and France to Sweden in the last two months of 1994, were re-exported in 1995 to Germany and Greece. Some ECU 6. 5 million was paid in export refunds in Germany, Belgium and France. Further investigations are in progress in a number of Member States to determine whether the export refunds paid were not claimed a second time after the sugar was reimported into the Community. 3. 2 Imports of rice into Sweden (taxation of surplus stocks) An inquiry was conducted in Sweden concerning the possible taxation of surplus rice stocks when Sweden joined the European Union. Trade statistics supplied by the Swedish authorities showed an increase in rice imports of around 73 000 tonnes in 1994 in relation to average annual imports from 1991 to 1993. Five firms were inspected and were found to have large stocks of rice. All five explained that the price of rice per kilo was likely to double in the event of Sweden joining the (between October and in European Union, hence December 1994), the main purpose being to satisfy demand on the domestic market before the price increase. increase imports their the Commission departments asked the Swedish authorities to examine surplus stocks over the three preceding years on a case-by-case basis along with all accounting and commercial documents available, in particular documents relating to stockkeeping and invoicing (purchases and sales). 3. 3 Imports and re-exports of olive oil (Italy and Austria") The Commission received information about imports into Italy of 1 091 tonnes of virgin olive oil, originating in Tunisia, and exported direct to Austria on 29 December 1994. This quantity was therefore imported into Austria before its accession to the European Union and was thus taxable as surplus stock. Within the framework of Commission Regulation (EC) No 3108/94 on transitional measures to be adopted on account of the accession of Austria, Sweden and Finland in respect of trade in agricultural products (OJ L 328, 20. 12. 1994). 68 The Commission's inquiries revealed that 802 440 kg of olive oil had been re-exported from Austria to Italy. At the Commission's request the Austrian authorities levied a tax of ECU 846 537 on the surplus stock. As the Austrian exporter is now bankrupt, there are doubts about whether this tax will be recovered. As regards the 802 440 kg of olive oil reimported into Italy, the Commission asked the Italian authorities to ensure, in accordance with the rules applying in such cases, that no application for consumption aid was made. Investigations in Italy revealed that this aid had in fact been granted. The Italian authorities have taken all the appropriate measures to recover the amount paid. The lesson to be learned from these three cases concerning Sweden and Austria is that only systematic physical checks conducted by the local authorities under the existing rules are capable of detecting irregularities in transactions of this kind (import/export of "temporarily sensitive" products). 3. 4 Imports of frozen beef tongue originating in Argentina in Argentina was Inquiries in France, Italy and Portugal revealed that at least 450 tonnes of frozen beef tongue originating the Community between September 1993 and December 1994. This meat was accompanied by forged health certificates. When the copies of the authentic certificates archived by the relevant departments in Argentina were examined, it was found that the destination of the meat, which did not qualify for entry into the Community, was Angola, via Lisbon (17 containers). imported into Because of health restrictions on imports of offal originating in various countries in South America, fraud of this kind poses a real threat for animal health (spread of foot and mouth disease). The financial risk is also substantial since, in the event of infection, the Member States and the Community will have to bear the cost of combating the disease. The matter has been referred to the Portuguese judicial authorities. 3. 5 Exports of Swiss Emmental Emmental, gruyère and Sbrinz cheese are entitled to a reduced level of duty on import into the Community, provided the minimum price rule is respected. Producers of these Swiss cheeses must go through the USF (Swiss Cheese Union) to obtain the guaranteed price (on the Swiss market) and a document certifying that the minimum price is respected (IMA. 1) for the purposes of export to the Community. For years, however, large quantities of Emmental cheese have been exported to companies in France, Germany and Italy; the USF has been certifying that prices charged by the exporting companies were below the minimum price. But the USF has then been refunding direct to the Community importers part of the selling price corresponding to the difference between the Community market price and the price charged by the exporters. Hence the minimum import price was no longer applied. 69 The Commission sent a mission to Berne in May 1995 with the agreement of the Swiss Federal Authorities. The initial findings enabled the Italian authorities to begin investigations of the main importers in Italy. The present indications are that at least ECU 13 million in customs duties have been evaded. Similar inquiries are currently nearing completion in Germany and France. The German customs have sent the files On four importers in Konstanz to the judicial authorities. The duties evaded in this specific case are estimated at ECU 1. 2 million. French customs, for their part, have informed four other importers that procedures have been set in motion for the recovery of some ECU 3. 9 million. 3. 6 Advance financing of export refunds for meal A team of inspectors went to Spain to visit firms which received this type of advance financing in 1995. The stocks of durum wheat and meal were checked against the quantities declared for advance financing by operators with due allowance for exports in the meantime. Two of the three firms inspected were found to have been involved in fraud. In the first the "missing" quantity was 17 719 tonnes of durum wheat, and for the second 28 998 tonnes of durum wheat and 616 tonnes of meal were missing. These quantities were totally unrelated to what was declared for advance financing and also to the storage capacity on site. The inadequacy of the physical controls by national authorities enabled certain unscrupulous operators to make false declarations and thus receive undue advance payments (around ECU 1. 49 million) and also to distort the rules of competition in their favour. These facts confirm the Commission's view that in a case of this type where the amount of aid involved is directly linked to the quantity of products, it is essential that physical checks be carried out to avert any attempt at fraud. 3. 7 Exports of rice from the United Kingdom to Sweden The British authorities informed the Commission of a case of fraud involving a quantity of rice exported to Sweden under the inward processing arrangements. It had been declared as "unmilled rice", whereas after sampling and testing it was found to be broken rice (a product of inferior quality to what had been declared). These exports133 were by a British subsidiary of a Dutch company. Incorrect declarations had been made allowing an equivalent quantity of rice to be imported from non-member countries (under the same customs references) without payment of customs duties. 133 A system of export ahead of inward processing arrangements. 70 The financial loss to the Community is around ECU 5 million (traditional own resources). The Commission is coordinating the procedures for recovering the evaded revenue (Netherlands and United Kingdom). 3. 8 Olive oil The Commission collaborated with the public prosecutor's office at the court of Vasto in Italy in a case concerning the sweetening of olive oil which adversely affected the Community budget. The fraud began in 1990 after a Roman trading and export company took over an olive oil producing company. The scheme is as follows: the production company has stocks of olive oil, olive-residue oil and seed oil. 134 It sells seed oil to other companies in return for the purchase of olive oil. In actual fact no products are transferred, but fictitious purchase and sales invoices are issued (false transport documents are also produced and false invoices are issued by transport companies involved in the fraud ring). The main protagonists admitted that the oil sold was never pure (mixtures of olive oil, olive-residue oil, seed oil and palm oil) and thus did not qualify for payment of the refunds received for the exports by the parent company. The cost to the Community was a total of ECU 2 million, ECU 1. 3 million in consumption aid and ECU 0. 7 million in wrongly paid export refunds. Recovery procedures are now in progress. Four people have been convicted. 3. 9 Diversion of butter and milk powder This case concerns the export, with refunds, of butter and milk powder from the United Kingdom, allegedly to Poland but in fact to Spain. The suspected fraudsters guaranteed the exporter the goods at the prices in force for non-member countries. The exporter was given forged Polish import documents to support the application for export refunds. It is estimated that around 150 lorry-loads were diverted between October 1993 and May 1994, corresponding to a total of some ECU 3. 3 million in wrongly paid refunds. The products were probably sold in Spain below the market price and for a substantial profit. 134 Olive-residue oil is obtained by chemical processes from organic matter (or waste) remaining after olives (the fruit) have been pressed. Seed oil is a generic term (soya oil, sunflower oil, etc. ). The largest refunds are paid on exports of olive oil (they are very small for olive-residue oil). 71 In June 1994 seven people were arrested. Six of them are to appear in court early in 1996. The inquiries coordinated by the Commission were carried out in Spain, Poland and Germany and evidence was collected in response to a request for judicial assistance. The wrongly paid refunds were recovered. 3. 10 Imports of beef at a reduced rate of duty Under the GATT135 the Community adopts an annual Community reduced-rate tariff quota. To qualify for this facility operators must present a GATT import licence to the Community customs office of import. These licences may be transferred within the limits of the overall quantities authorized. Investigations had to be conducted in various Member States into fraudulent imports of frozen beef from outside the Community accompanied by fake GATT certificates (showing the Spanish Ministry of Foreign Trade as the issuer). Judicial investigations in Italy into cases of forgery, conspiracy, smuggling and obtaining by deception revealed that a criminal organization had sold 46 fake GATT certificates covering goods exceeding by over 55% the total quota awarded to Spain, where the beef was imported. The Community lost some ECU 5. 4 million in own resources. Three people are in custody in Italy and an international arrest warrant was executed in Spain on an Argentinian national suspected of masterminding the sale of the forged certificates. 3. 11 Stocks of tobacco in Italy and Greece On the basis of information received by the Commission, inquiries into tobacco intervention stocks in Italy and Greece were made in late 1995. The question of the eligibility and classification of certain lots in stock in Greece had This concerned around 11% of total stocks worth an estimated been raised. ECU 9 million. The Commission finally decided to withdraw this proportion from sale. 3. 12 Sugar quotas in the United Kingdom On the basis of information sent in by the British authorities, an inquiry was conducted in the United Kingdom into commercial operations concerning the system of sugar quotas for the 1992/93 sugar year. It was found that a large number of irregularities had taken place concerning the application of the sugar market rules,136 with a serious financial impact on the Community budget. 135 136 General Agreement on Tariffs and Trade, which was replaced in 1995 by the World Trade Organization. Council Regulation (EEC) No 1785/81: OJ L 177, 1. 7. 1981. 72 Initial findings are that some 16 500 tonnes of sugar were declared for export on the basis of forged licences. 137 The monetary compensatory amounts (MCA) were claimed and obtained (ECU 500 000). The financial consequences for failure to comply with the provisions governing C sugar are being established. The inquiries are continuing, in particular into storage costs for 1992/93 and other years. The latest information suggests that the false declaration of sugar stocks for the year in question will have resulted in around ECU 2 million in aid being wrongly paid to the operator. 3. 13 Aid for casein production in the Netherlands On the basis of information received, the Commission began inquiries into aid for the production of casein in the Netherlands. Following initial investigations an irregularity concerning some ECU 3 million was established for failure to comply with the specific procedures for the processing of certain types of caseinate as laid down in the Community rules. ,3* This financial correction will be applied in the clearance of accounts procedure. Other developments are expected on the basis of the results of the inquiries, notably into the use of certain chemicals in the manufacture of caseinate and the application of the rules concerned. 139 3. 14 Sales of milk outside the quotas in the United Kingdom This case received wide press coverage in the United Kingdom and was investigated jointly by the Commission and the UK authorities. The initial findings reveal that milk outside the quotas, on which no supplementary levy was therefore paid,140 was sold in North West England. A number of people appeared in court and were fined. The UK authorities currently estimate the financial impact at around ECU 1. 5 million. Recovery procedures will be set in motion. Inquiries are continuing, notably in Northern Ireland, into manipulations concerning the fat content of milk delivered (1994/95 marketing year), the main result being that the supplementary levy was unduly reduced. The inquiries must also determine whether or not there was a failure to declare certain consignments under the quota regulations. The national authorities have started specific procedures for failure to comply with the fat content for the products delivered. The Commission expects to have the findings of this inquiry in 1996. 137 138 139 140 Licences for sugar intended for export to the world market without payment of refunds. Council Regulation (EEC) No 2921/90: OJ L 279, 11. 10. 1990. Council Regulation (EEC) No 2921/90 cited above; Council Directive 83/417/EEC: OJ L 237, 26. 8. 1983. Council Regulation (EEC) No 3950/92: OJ L 405, 31. 12. 1992. 73 3. 15 Skimmed milk powder in Italy and the Netherlands Following production of a report by the Dutch authorities the Commission began an inquiry into a case concerning compound animal feed containing milk powder. This product, which was manufactured in Italy, was destroyed in the Netherlands. Around 1 200 tonnes, for which a Community subsidy would appear to have been paid, was destroyed on the instructions of a Dutch subsidiary of the Italian company which received the Community premium. The Community rules141 provide that payment of aid is dependent on the actual incorporation of milk powder in the feed preparation and also on the feeding of the product to the animals in question; there is thus an obligation for the feed to be consumed. This was clearly not the case here as the products were declared to be unfit for animal consumption in the Netherlands. The aid wrongly paid must therefore be recovered from the manufacturer concerned. In the early stages of the inquiry it became clear that there were serious problems with controls to be undertaken in the Member States concerned. The Commission is expecting this case to be tied up in the first half of 1996. Section 4: OTHER FRAUDS IN RELATION TO STRUCTURAL POLICIES 4. 1 European Social Fund (ESF) Most of the structural policies cases currently under investigation by the Commission concern the ESF. 4. 1. 1 As part of an operation to settle old ESF cases, the Commission sent a mission to Portugal in March 1995 to inspect vocational training courses presented by a promoter, involving considerable sums of money. The inspection revealed large-scale, fraudulent over-invoicing of services rendered by subcontractors (non-existent accounting documents, etc. ), punishable under Portuguese criminal law. The prosecuting authorities (Circulo Judicial de Anadia) have ordered a judicial inquiry. 4. 1. 2 In another major judicial inquiry, now before the courts in Lisbon, a trade union federation and some of its leaders and subcontractors have been indicted for diverting Community and national subsidies worth ECU 1. 5 million (cases dating from 1988 and 1989). The fraudsters had presented artificially inflated expenditure and failed to organize training courses. The Commission has decided to join a civil claim to the criminal proceedings. 141 Commission Regulation (EEC) No 1725/79: OJ L 199, 26. 7. 1979. 74 Since the same promoter is involved in the first and second Community Support Frameworks,142 the Commission has carried out on-the-spot inspections to ensure that the measures it presented have been implemented in accordance with the applicable rules. 4. 1. 3 An investigation was launched into the activities of a British firm in connection with technical assistance in the social field. The Commission suspected that the contract was being misapplied. Inspections revealed that supporting documents in respect of costs incurred were missing and that certain operations had been paid for twice. The contract is worth ECU 1. 73 million. 4. 2 European Regional Development Fund (ERDF) 4. 2. 1 On scrutinizing the administration of the French département of Var in 1994-95, the Provence-Alpes-Côte d'Azur regional audit body discovered over-invoicing involving more than ECU 5 million in connection with the supply of equipment to encourage technical innovation (ERDF co-financing totalling ECU 38 million under the Renaval programme for the conversion of shipbuilding areas from 1990 to 1993). The judicial inquiries currently in progress suggest that local councillors received under-the-counter payments totalling at least ECU 0. 5 to 1 million in exchange for falsifying public contracts. Further research by the investigating departments should reveal whether the practices followed in this département are widespread or constitute an isolated case. 4. 2. 2 Irregularities in the Liège district in Belgium, relating to the Objective 2 (1992- 93), Résider143 (1990-92) and Konver144 (1993) programmes were detected in 1995 following inspection missions by the Commission in April and August 1994 and by the European Court of Auditors in November 1994. Following these inspections, the Commission suspended all financial support for the project in question pending final conclusions on the case, in accordance with Article 24(1) of Council Regulation (EEC) No 4253/88,145 proposing that a significant amount be recovered and several million ECU be decommitted, and asking the Member State concerned to submit its comments. Implementation is i under way. 142 143 144 145 Community Support Frameworks are drawn up by the Commission in consultation with the 'ccc > - mired Member State and regions concerned, defining priorities for action, the financial n and the various forms of intervention. Conversion of steel-making areas. Diversification of regions dependent on military activities. OJ L 374, 13. 12. 1988, as amended by Council Regulation (EEC) No 2082/93 (OJ L 193, 13. 7. 1993). 75 Section 5: OTHER FRAUD IN RELATION TO DIRECT EXPENDITURE Operational activities in this field, which covers expenditure managed and audited directly by the Commission, were stepped up in 1995. Investigations have covered a significant number of cases in all sectors of activity. 5. 1 Research 5. 1. 1 Acting on the basis of remarks by the Court of Auditors in a sectoral letter to the Member of the Commission responsible for information and telecommunications technologies, the Commission inspected a group of firms in Belgium and the United Kingdom which received funds allocated under the RACE programme. 146 It was found that the main beneficiary had systematically produced false statements of expenditure, inflated by an estimated ECU 500 000, in some cases using invoices for fictitious services. The firms' directors had also deliberately carried out legal, accounting and financial operations designed to create the illusion of co-financing which did not in fact exist. The Commission terminated contracts still in progress as quickly as possible, drew up appropriate recovery orders and referred the matter to the competent legal authorities in Belgium so that criminal proceedings could be brought against the perpetrators of the fraud. 5. 1. 2 A systematic anti-fraud investigation was launched as a result of an analysis of the JOULE I and II/APAS-RENA programmes147 and a critical examination of their administration by the authorizing departments. The initial results of inspections in Germany confirm the existence of irregularities and suggest that fraud has indeed been committed in this sector, bearing out the findings of the administering departments. 5. 2 Energy Following an investigation by the prosecuting authorities in Oristano (Sardinia), a request has been made for six persons to be committed for trial on charges of diverting aid granted by the Commission and the Sardinian regional authorities for the construction of a new, innovative wind-power plant costing an estimated ECU 1. 25 million. The firms involved had in fact converted an existing plant and used the funds for purposes other than those specified in the contract. 146 RACE - "Research and development programme in advanced communication technologies for Europe". JOULE - "Joint opportunities for unconventional or long-term energy supply". 76 5. 3 European Development Fund (EDF) The Commission and the Senegal Ministry of Finance discovered that large amounts of aid had been diverted from their proper purpose which was to help small businesses in the Saint Louis region boost their activity and create jobs. Initial estimates put the amount involved at between ECU 2 and 4 million. In the legal proceedings currently under way in Senegal a consultant is accused of diverting some of the funds for his own personal profit. 5. 4 Environment/Medspa programme (Italy) 148 It has proved impossible to implement the payment order drawn up in 1994 against the Italian firm which benefited from a Medspa project, because of the machinations of the firm's directors. The Commission is considering the possibility of referring the matter to the Italian police with a view to criminal proceedings against those responsible. 148 See 1994 Report, Chapter 5, Section 5. 1. 77 CHAPTER 7 : STATISTICS AND ANALYSES The objective of intelligence gathering is to collect the maximum amount of relevant information, to combine all accessible sources of information and to give a structured form to available information. The purpose of this is to detect as many cases of fraud as possible and follow such cases up in administrative, financial and criminal terms (enforcement). The exercise might culminate in amendments to existing Community legislation or the drawing up of future legislation (prevention). The Commission's first source of information is to be found in the reports received from Member States under the sectoral rules in force. 149 Another very important source is the exchange of information in the framework of mutual administrative assistance. 150 The freephone number set up in November 1994 is another important source. 151 During its first twelve months of operation,152 the Commission received more than 4 000 calls. Around two hundred of these led to further investigations being carried out. Some of the calls prompted a formal enquiry involving amounts of more than ECU 30 million. In others, the information received was used by the Commission to cross-check information from other sources. Likewise, access to different databases, both Community and international, and in particular international trade databases, allows this type of cross checking to be carried out, suspicious transactions to be detected and on-the-spot investigations to be better targeted. The Commission is currently developing an integrated information system which will take account of these different information sources. This system is based on a new version of the IRENE database, which merges two previously separate databases: "IRENE" (for cases of fraud reported by the Member States) and "pre-IRENE" (for cases under joint investigation by the Commission and the Member States). Furthermore, this new database will set up a direct link with "Mutual administrative assistance" messages, where these refer to cases with an impact on the Community budget. The new database (IRENE 95) will not be a mere database recording information on fraud cases but a management tool. Analysis of the data will facilitate the identification of risk factors that make fraud against the Community budget possible or easier. Section 1 : THE SITUATION IN 1995 In 1995 the Member States and the Commission detected more than 4. 750 cases in all of- the different budget areas combined. The sums involved came to more than ECU 1. 100 149 150 151 152 Council Regulations (EEC) Nos 1552/89 (own resources), 595/91 (EAGGF Guarantee Section) and 4253/88 (Structural Funds). Council Regulation (EEC) No 1468/81. Numbers are listed country by country in the Annex. Initially limited to twelve Member States. The new Member States have since been connected. See also Chapter 2, Section 2. 4 of the 1994 Annual Report on the Fight Against Fraud. 78 million. This represents a significant increase in the number of cases but a more modest increase in the budgetary impact of those cases (see Table 1). These figures include, on the one hand, the cases formally notified by the Member States in the framework of their regulatory obligations, and on the other hand, the cases initiated by the Commission and cases dealt with in cooperation with the Member States. The second category of cases includes the cases which arise from an exchange of information between the investigative services of the Member States and the Commission or from coordination in the framework of "mutual assistance". The number of cases in this latter category continues to increase and these enquiries represent more and more significant sums (in 1995 more than 50 % of the budgetary value of irregularities, see Table 2). The figures in Tables 1 and 2 concerning cases notified by the Member States in the area of traditional own resources only have been extrapolated for the whole year in order to allow a uniform overview of the general situation. This extrapolation is based on the figures notified for the first half year as well as those indications already available for the second half year. Regulation (EEC, EURATOM) no 1552/89, at present, only requires the Member States to notify cases once per half year and therefore the statistics for the second semester of 1995 are not yet finalised. For the first half year only, the Member States notified 1. 146 cases with a budgetary impact of ECU 132 million (see Table 3). In the realm of EAGGF Guarantee Section expenditure (see Table 4) the Member States have notified 1. 754 cases with a budgetary impact of ECU 214 million. This amount is significantly less than previous years. On the other hand the budgetary impact of the cases dealt with by the Commission in cooperation with the Member States has continued to increase significantly. If one includes these cases the budgetary impact rises to ECU 316 million. The biggest increase in terms of the numbers and amounts involved is in relation to structural measures (see Table 5). Although the number of cases notified by the Member States remains low it has increased significantly in comparison with notifications made in the past due to the recent putting in place of the Commission regulations in this area. This explains also the high number of cases in comparison with 1994 which the Commission has obtained knowledge of through other information sources. The total amount involved is ECU 67 million, of which ECU 23 million relates to enquiries initiated by the Commission. A significant increase can also be noticed in the number of cases in the area of direct expenditure (see Table 6). In this area there are no cases notified by the Member States as this is expenditure managed by the Commission. For the first three budgetary areas mentioned above Table 7 gives a division of the cases notified by the Member States and those dealt with by the Commission by sub-area. This allows a better evaluation of the incidence of irregularities in these areas. The number of cases notified and the amounts concerned naturally vary greatly from Member State to Member State (see Table 8). Given that the amount of traditional own resources that has to be collected by each Member State varies greatly as a function of its position in relation to the Community's external trade, and that there are significant differences between the expenditure on the Community budget between individual Member States, it is necessary to examine the figures for the number of cases uncovered 79 and their budgetary impact in the context of the relative position of each Member State with regard to own resources and expenditure. On average and taking all sectors together, a case of fraud or irregularity notified by a Member State involves an amount of approximately ECU 130. 000. Only 1,5 % of notified cases involve more than ECU 1 million. The average budgetary impact of cases under investigation by the Commission, on the other hand, is ECU 1,6 million. This reflects a deliberate choice by the Commission to concentrate its efforts on combatting organised or sophisticated fraud. Such fraud, the origin of which is often characterised by the participation of persons or firms operating from one or many countries is difficult for the Member States to identify without the active support which can only be given at the Community level. Section 2 : TRENDS Whereas in previous years the number of irregularity and fraud cases, and their budgetary implications rose steadily, in 1995 there was a certain stabilisation of the total amount involved. The number of cases uncovered increased nonetheless by about 15 % compared to 1994 while the amounts remained practically identical. At the same time the Community budget grew by nearly 9 %. in traditional own resources have The evolution within the four important budget areas identified in Section 1 is very different. The amounts involved in the EAGGF Guarantee expenditure area have gone down while the amounts involved increased significantly. Nevertheless prudence is necessary in drawing conclusions in relation to trends based only on variations between one year and another. A very limited number of highly spectacular cases uncovered during any given year can have a major impact on the global figures for that year. The date of detection, and communication of an important and complex case of irregularity is always uncertain. For example 1994 was remarkable for the number of very important cases in the EAGGF-Guarantee expenditure area (7 cases among the 1. 610 notified by the Member States represented more than ECU 200 million or half of the total amount). Another marked change is the number of cases (and notably the budgetary impact of those cases) which were dealt with by the Commission, in cooperation with the Member States, which has increased significantly. Principally this reflects progress achieved in operational activity through the concentration of the efforts of the specialised services of the Member States and of the Commission on the most important and sensitive cases identified through more efficient and better targetted controls. This is encouraging, even though overall in this area, the position remains unsatisfactory. For the first time, in 1995 the notifications in the area of EAGGF Guarantee expenditure show a considerable reduction in the amounts involved compared to 1994. This could be the first reflection of the reform of the Common Agricultural Policy (CAP). It is in fact necessary to consider the general evolution of the EAGGF Guarantee expenditure in 1995, in particular in two sectors in which high levels of irregularity were recorded in 1994 (export refunds for cereals and consumption aid for olive oil) where expenditure was reduced sharply in 1995. Expenditure on export refunds (all products combined) went from ECU 8. 159 million in 1994 to ECU 7. 802 million in 1995. Olive oil consumption aid went from ECU 613 million in 1994 to ECU 263 million in 1995. On the other hand, 80 direct aid (including set-aside) went from ECU 10. 552 million in 1994 to ECU 13. 506 million in 1995. The budgetary impact of irregularities uncovered by the Member States or the Commission in the area of traditional own resources continues, however, to rise. This is due for the main part to the results of greater efforts by the investigation services of the Member States and the Commission, achieved through a better targetting of sectors at high risk (products subject to high levels of taxes and excise duties or high import duties). Customs duties on industrial products remain the most affected. Whereas in 1994 there were more cases involving customs duties than those involving agricultural levies (45 % against 30 %), the proportion was inverted in 1995 in favour of the latter (39 % against 30 %). For the amounts involved evaded customs duties represented nearly 54 % of the total in 1995 against only 39 % in 1994 (see Table 7). This reflects in the first instance the growing number of cases of fraudulent importation of cigarettes detected. The Task Force which has been created by the Commission with the services of the Member States has allowed the identification of irregularities with considerable budgetary impact (see Table 9). In the area of structural actions, the number of cases uncovered and their budgetary impact has also grown. This is due, in the first instance, to the entry into force of detailed provisions for the notification by Member States as well as the putting in place of appropriate investigation structures with the Commission. The number of cases notified is highest in the ESF but the EDRF expenditure concerned is the most significant (56 % of the total budgetary impact) which reflects the greater financial importance of this fund. Section 3 : TRANSIT In March 1995 the Commission addressed a Communication to the European Parliament and the Council in which it set out a realistic picture of the situation in the transit area, noted the shortcomings of the current system and identified short-term and long-term solutions. 153 The loss of own resources and other charges during the period 1990 to 1995 was estimated to be at least ECU 975 million for the Community and the Member States. The loss of own resources alone was estimated to be ECU 409 million on the basis of cases notified by the Member States either in conformity with Regulation (EEC, EURATOM) no. 1552/89 or in the framework of Regulation (EEC) no. 1468/81 on mutual assistance. Cigarettes are the product that is by far the most concerned by cases of irregularity and fraud in the transit area (in the period 1990 to 1995 the cases involving these products represented 47 % of the amounts involved). Next come milk products, live animals and meat (see Table 10). Given the very high rates of taxes and excise duties applicable (or import duties due on such goods) these products are considered as "sensitive". The Member States and the Commission have put in place a computerised system to allow the rapid exchange of information in these cases (early warning system154) under an administrative agreement. 153 154 See chapter 2, section 3, point 1, page 23. See chapter 2, section 3, point 1, page 25. Section 4 : RECOVERY The situation regarding recovery in the areas of traditional own resources and EAGGF Guarantee remains unsatisfactory. This is of particular concern in that this is an area where the Member States have an interest which is at least as important as that of tl • Community to see an improvement in the situation as regards its impact on the budget. The problems are significant, notably the slowness of internal administrative procedures in the Member States and the high percentage of cases in which the economic operators concerned contest recovery decisions before national courts. Moreover the figures set out in Table 11 to 13 may underestimate the real efforts of the Member States to the extent that the latter do not systematically notify the Commission of amounts recovered, in particular in the area of traditional own resources. The United Kingdom, in particular, supplied figures showing that the recovery rate for traditional own resources (see table 11) is clearly higher than the figure arrived at using data from the computer base. These figures, which are provided each quarter on a global basis, do not enable the updating of individual cases which represent the basis used for the production of statistics on recovery of traditional own resources. The adoption of the new regulation on this subject in 1996 should resolve this problem. The recovery of customs duties is a particularly difficult area. Indeed questions are invariably asked, as to the reasons why a customs debt has arisen and the way in which responsibilities in carrying through the recovery process are determined. In order to tackle these difficulties the Commission has put in place a specific measure to allow decisions to be taken more quickly in this area, and above all within the time limits needed to avoid recovery being legally barred. An interservice working group has been charged with the examination of contentious dossiers, with bringing together all the necessary elements and with presenting the appropriate conclusions. To judge the effectiveness of the procedures set up by the member States, the situation needs to be looked at with a degree of detachment. It would thus seem more proper to analyse the situation as regards recovery of the amounts involved by taking the cases notified in the years prior to the period covered by the annual review. Tables 11 to 13 therefore describe the position with respect to cases notified between 1992 and 1994 in detail and sum up the overall situation as regards older cases. In 1995, there were still a very large number of old cases pending (in some cases they went back as far as the 1970s). On 31 December 1995, in the area of the EAGGF Guarantee Section alone, 1. 169 cases notified in 1991 or earlier were still open; legal proceedings were under way in 419 cases. Two Member States (Italy and Germany) brought more than 90 % of all legal proceedings. As announced at the 20 October 1995 meeting of the committee of the Irregularities and Mutual Assistance Group, the Commission, working with the Member States, will do its best to find a way of closing the older cases on which no progress is likely to be made and on which a decision as to whether the amount at issue is irrecoverable or chargeable to the Member State needs to be taken. While there exists in the area of EAGGF Guarantee the possibility to hold a Member State responsible for any negligence in the recovery of amounts concerned by irregularities and to charge the amounts that ought to, and could have been, recovered to 82 the Member State involved (in a procedure known as the "clearance of accounts") this possibility is not explicitly provided for at this stage in the other budgetary areas. The worrying situation which exists in the area of traditional own resources makes all the more important the reflection on the extension of the principles of the clearance of accounts procedure to the c ier budgetary areas as advocated by the Madrid European Council in December 1995. Section 5 : ANALYSING LEGISLATION As part of its "sound financial management" initiative, the Commission took a number of decisions designed to ensure that any new legislative initiative with substantial budgetary implications is subjected to prior examination as to any fraud risk it might involve and to any measures which will guarantee effective protection of the Community's financial interests. In the Illrd phase of this exercise, which is being carried out together with the Member States, the question has been put in the same spirit, as to how to avoid the situation where changes to Commission proposals which arise during Council negotiations could increase the risk of fraud. Furthermore, on the basis of available data concerning cases of irregularity detected in the past, the Commission will each year draw up a list of rules to be reviewed from the point of view of providing more effective protection for the Community's financial interests. This work should reinforce the partnership that is indispensible in this area to achieve a more systematic use of acquired experience. Priority will be given to rules which : have substantial budgetary implications such that non-compliance will confer added benefits on the economic operators concerned; are highly complex and difficult to supervise; have been identified in Court of Auditors reports or the Irene and pre-Irene data bases as being especially vulnerable to fraud. In this context and following the findings established in 1995, the Commission proposes to examine, inter alia, the rules on time limits applied to securities in the customs code, import duties and export refunds in the beef and veal sector, the staffing of the Community wine sector supervisory corps,155 the olive oil production aid system and articles 23 and 24 of Regulation (EEC) No 4253/88. The Commission is also studying, in partnership with the Member States and in the context of the Illrd phase of SEM 2000, other improvements which could contribute to a reduction in the risk of irregularities. They involve, for example, the question of a clearer definition of the eligibility criteria for expenditure in the area of Structural Funds and the audit and control systems put in place for indirect expenditure managed by the Member States. Council K gulation (EEC) No 2048/89, OJ L 202, 14. 07. 1989. 83 TABLE 1 ALL SECTORS 1992 -1995 TOTAL IMPACT of IRREGULARITIES formally communicated by Member States and inquiries held by the Commission together with Member States NUMBER of CASES 1995 WÊMmM AMOUNTS in MILLION ECU I 1992 I 1993 I 1994 _j 1995 "1. 146 (*). 403 204 I IliiillllllPlli: (*) O wn Resources : including estimation for the second hatf of 1995. 1. 200 1. 100 1. 000 900 800 700 600 500 400 300 200 100 UCLAF F/2 TAB1. XLS 19/04/96 TABLE 2 ALL SECTORS 1992-1995 1. IRREGULARITIES FORMALLY COMMUNICATED (#) by MEMBER STATES 2. INQUIRIES HELD by the COMMISSION together with MEMBER STATES 1992 1993 1994 1995 1992 1993 1994 1995 NUMBER of CASES 4. 500 "2 4. 400 4. 300 ~ 4100~ 4. 100^ 4. 000 3. 750 ~ 3. 500~ 3. 250 ~ 3. 000 ~ 2. 750~ 2. 500 2. 250 2. 000 ~ 1. 750~ 1. 500 ~ 1-2S0~ 1. 000~ 800~~ 600~ 400~ 200~ 750 700 650 " S00~ 550~ S00~ 450 ~ 400 350~ 300~ 250 ~ 200 3927 2. 533 2. U6 4,396 O • ^^ 4. 500 ~ 4. 400 " 4. 300 ~ 4J00~ 4. 100~ 4. 000 ~ 3. 750 " 3. 500 " 3-250~ i t 3. 000 ~ 2. 750 ~ 2. 500 ~ 2. 250 " 2 000 ~ 1. 7S0~ 1. 500~ 12S0~ 1. 000~ eoo~ 6oo~ 400 200~ 362 WmosMM] 1992 1993 1994 1995 1992 1993 1994 1995 AMOUNTS in MILLION ECU 711 572 (*) 750 700 " 650 ~ too' 550 ~ 500 ~ 450 ~ 400~ 350~ 300~ 250~ 200~ 403 204 574 "1 376 -fl U Cases detected and communicated formally by the Member States on the basis of the regulations, in force during the year indicated in the sectors Traditional Own Resources , EAGGF-Guarantee and Structural Actions. ## Inquiries of the Commission- in cooperation with the specialized services from the Member states vhich allowed to identify an irregularity and to evaluate its financial impact during the year indicated. (') Own Resources : including estimation (or the second hn!( of 1995. 85 T A B LE 3 TRADITIONAL OWN RESOURCES 1992-1995 1. IRREGULARITIES FORMALLY 2. INQUIRIES HELD by COMMUNICATED (#) by MEMBER STATES the COMMISSION together " with MEMBER STATES NUMBER of CASES 1992 | 1993 I 1994 | 1995 2. 600 2. 400 Z9O0 2200 2100 2. 000 1. 9O0 1. 000' 1. 700' 1. 6O0' 1. SO0\ 1. 400' 1. 300' 1. 200' 1. 100- 1. 000- 900- SOO- 700- 6O0- 500- 400- 3O0- 200' 100- 120 lllilllil = 1992 1993 1994 1995 1992 | 1993 I 1994 | 1995 AMOUNTS in MILLION ECU soo 475 450 42S' 400 376 350 325 900 275 250 225 200' 175 160 125 100 76 soo" 47S~ 450~ 425~ 400~ 37S~ 3S0~ 325 300~ 275 2SO~ 22S~ 200~ 175~ 150 125" 100 75 60 25' • \iQw& 1Ç1 95 289 u*w'-?: (#) on the basis of Regulation (CEE) 1552/89 I communications for the first half of 1995 JJIJJIIIIIH estimation for the second half of 1995 86 421 ;:::::::::::::::::::;:::::v:::::::::;::::::::::: ~ ::?S:ï:-jïï$SS§-S:-?S:5ï :ï:S-:::::::-:v:::::::::::::¥:vSSï | v. -. •. •. •. •. •. •. •••. •. •••. •. •. •. >•••. •. •••. •• j : — — TABLE 4 EAGGF-GUARANTEE 1992-1995 1. IRREGULARITIES FORMALLY COMMUNICATED (#) by MEMBER STATES INQUIRIES HELD by the COMMISSION together with MEMBER STATES 1992 1993 1994 1995 1992 1993 1994 1995 NUMBER of CASES 1. 754 — —= 1. Û1Ù i 2. 000 1. 900 1. 800 1. 700 ; 1. 600 1. 500' 1. 400' 1. 300 ; 1. 200' 1. 100' 1. 000 ; 900 \ 800' 700 ; 600] 500 \ 400 \ 300" 200" 100" 1. 284 1,02$ 99 1992 1993 1994 1995 1992 I 1993 | 1994 | 1995 AMOUNTS in MILLION ECU 417 300 214 109 (#) based on Regulation (EEC) 595/91 500 475 450 425 400 ' 375 ' 350 ' 325 ' 300 ' 275' 250 ' 225 ' 200' ITS' ISO' 125 ' 100 ' 7S' 50 ' 25 ' — 87 102 2. 000 ~ 1. 900 ~ 1. 300 ~ 1. 700 ~ 1. 600 ~ 1. 500 " 1. 400 " 1. 300 _ 1. 200 Z 1. 100 " 1. 000 _ 900 Z soo~ 700 Z 600 Z 500 Z 400 Z 300 Z 200 Z 100~ ~ soo - ~ 475 460 425 400 375 350 325 300 275 250 225 200 175 150 125 100 75 SO 25 '_ T A B LE 5 STRUCTURAL ACTIONS 1992 - 1995 1. IRREGULARITIES FORMALLY 2. INQUIRIES HELD by COMMUNICATED (#) by MEMBER STATES the COMMISSION together with MEMBER STATES 1992 1993 1994 1995 1992 1993 1994 1995 NUMBER of CASES 200 190' ieo' 170' 160' ISO' 140 ' 130' 120~ 110' 100' 40 35 ' 30 ' 25 ' 20 ' 15' 10 ' s' 200 1tO~ rso' 170' 160' no' 140 ' 130" 120" 110' 100' 194 = ^ 79 âSeat otoif? 112 = M AMOUNTS in MILLION ECU 1992 1993 1994 1995 1992 I 1993 | 1994 | 1995 - — 23 44 1 so 4S' 40' 3S' 30 ' 25 ' 20' is' 10 ' s' 2entc ,Mft ^ 1* (*) before regulation (EEC) 1681/94 and 1831/94 came into force. # Cases formally communicated by Member States based on regulations (EEC) 1681/94 and 1831/94 88 TABLE 6 DIRECT EXPENDITURE (*) INQUIRIES held by the COMMISSION (**) NUMBER of CASES AMOUNTS in MILLION ECU (*) see CHAPTER <S, section 5 (**) w i th the assistance of Member States' s e r v i c e s. 89 19/04/96 TABLE 7 DISTRIBUTION of the irregularities revealed in 1995 Irregularities communicated officially by Member States and inquiries held by the Commission together with Member States. TRADITIONAL OWN RESOURCES 1995 TRADITIONAL OWN RESOURCES 1995 ÏS TRADITIONAL OWN RESOURCES 1995: amounts subdivision of the figures in table 3 EAGGF- GUARANTEE 1995 EAGGF GUARANTEE 1995 cases EAGGF GUARANTEE 1995 amounts subdivision of the figures in table 4 STRUCTURAL FUNDS 1995 STRUCTURAL FUNDS 1995 cases S T R U C T U R AL FUNDS 1995 amounts EAGGF- GUIDANCE 16% subdivision of the figures in table 5 90 ALL SECTORS IRREGULARITIES communicated officially by Member States in 1995 TRADITIONAL (*) OWN RESOURCES AMOUNTS communicated Amounts x 1. 000 ECU BELGIQUE DANMARK DEUTSCHLAND ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND ÔSTERREICH PORTUGAL SUOMI /FINLAND 'SVERIGE UNITED KINGDOM TOTAL CASES communicated 54 8 558 9 22 121 15 73 0 110 2 18 \ \ 1 2 155 1. 148 CO Ô CO o ) ONLY FIRST 6 MONTHS of 1995 22. 419 1. 213 39. 548 1. 603 3. 342 28. 754 613 22. 123 0 11. 600 33 2. 103 25 38 10. 456 143. 870 AMOUNTS communicated EXPENDITURES EAGGF - GUARANTEE CASES communicated 35 39 349 151 116 65 20 416 0 154 10 132 0 48 219 1,754 1. 613 3. 524 69. 228 10. 838 17. 681 3. 769 214 82. 716 0 9. 679 381 7. 247 0 67 7. 148 214. 106 EXPENDITURES STRUCTURAL ACTIONS CASES communicated AMOUNTS communicated 0 0 12. 691 2. 597 20. 149 0 0 4. 443 0 0 0 2. 576 0 0 1. 960 44. 416 21 58 46 5 13 44 7 194 H > CO r~ m 00 TABLE 9 " TASK GROUP CIGARETTES " CIGARETTES SMUGGLING 1995 Member State Cigarettes SEIZED FINLAND SWEDEN AUSTRIA / ITALY UNITED KINGDOM GREECE SPAIN BELGIUM DENMARK / SPAIN/ PORTUGAL IRELAND FRANCE/UK GERMANY NETHERLANDS ITALY EU Total 4. 650. 000 6. 750. 000 11. 450. 000 13. 000. 000 20. 000. 000 40. 000. 000 51. 540. 000 60. 000. 00Q 167. 534. 600 374. 924. 600 Cigarettes Involved 35. 000. 000 80. 000. 000 426. 650. 000 450. 000. 000 REVENUE Implications (*) for MEMBER STA TES and OWN RESSOURCES in ECU 3. 000. 000 10. 000. 000 50. 000. 000 45. 000. 000 57. 350. 000 92. 000. 000 8. 888. 665 15. 000. 000 450. 000. 000 45. 000. 000 1. 000. 000. 000 1. 097. 810. 000 3. 688. 810. 000 100. 000. 000 110. 580. 000 387. 468. 665 (+) ESTIMATED AMOUNTS CIGARETTES SMUGGLING 1995 - • Cigarettes SEIZED • Cigarettes Involved Q Revenue Implications in ECU 1 000. 000. 000 800. 000. 000 «00 000. 000 :±:mi 92 IRREGULARITIES concerning TRANSIT from 1990 until 1995 included (*). AMOUNTS concerning TRADITIONAL OWN RESOURCES TABLE 10 IRREGULARITIES TRANSIT CIGARETTES 48% OTHER PRODUCTS. 11% TEXTILES 1% /££& I MILLION l PRODUCT LIVE ANIMALS beef/ pork/sheep ECU 33 BEEFMEAT and PORKMEAT 33 Ul MILK PRODUCTS butter/cheese/milkpowder 63 BANANAS 15 CEREALS 5 SUGAR 18 TEXTILES 5 OTHER PRODUCTS 46 CIGARETTES 191 MILK PRODUCTS 15% j TOTAL 409 C) Irregularities communicated under regulation (EEC) 1552/89 and 1468/81 IVE ANIMALS 8% BEEFMEAT and PORKMEAT 8% RECOVERY Situation on 31-12-1995 TRADITIONAL OWN RESOURCES TABLE 11 Situation as to cases(*) notified PRIOR to 1992 AMOUNTS X 1. 000 ECU AMOUNT notified (**) AMOUNT still TO BE RECOVERED^; in TOTAL [PENDING INCQURT\% of Q amount n o t if BELGIQUE DANMARK DEUTSCHLAND ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND(+) ÔSTERREICH PORTUGAL FINLAND/SUOMI SVERIGE UNITED KINGDOM (++) TOTAL 8. 593 3. 476 122. 737 1. 336 2. 410 27. 564 270 4. 186 41 6. 030 # 699 # # 24. 228 201. 570 3. 606 2. 017 118. 716 1. 336 1. 647 21. 010 93 4. 186 41 5. 612 134 0 65. 730 819 260 55 0 3. 719 0 2. 676 4=2/1 42% 58% 97% 100% 68% 76% 34% 100% 100% 93% 322 202 46% 18. 175 176. 761 73. 595 75% 88% 97. 943 7. 005 127. 985 2. 162 13. 267 80. 895 12. 038 98. 620 89 9. 323 # 2. 716 # # 72. 606 524. 649 Regulation (EEC) 1552/89 Situation as to cases(*) notified in 1992+1993+1994 AMOUNT notified (**) 5 AMOUNT still TO BE RECOVERED <—t In TOTAL PENDING IN COURT % of the «mount notlf. 8 recovered effectively 6 6. 555 2. 952 6. 075 0 1. 615 957 6. 118 639 46 125 7=5-6 91. 388 4. 053 121. 910 2. 162 11. 652 79. 938 5. 920 97. 981 43 9. 198 50. 624 204 24^685 2. 037 2. 803 452 0 92. 991 0 5. 090 9 "7/5 93% 58% 95% 100% 88% 99% 49% 99% 48% 99% 677 2. 039 1. 172 75% 2. 260 28. 019 70. 346 496;630 658 180. 716 97% 95% (*]| Cases officially communicated to tho Commission (**) Amounts as originally notified or corrected at a later stage (•) The Netherlands declared In 1995 having recovered>ca. 58 Million ECU in cases referring to 1993 and 1994 Involving cigarettes. (+•) The United Kingdom informed the Commission that the recovery rate is higher than resulting from the Uk communications on irregularities In the database, those communications not being updated. (+4. +) -j-he recovery rates are quoted under restriction. Untlll the new regulation has been agreed upon -which Is to be adopted In near future - member states are not obliged to Inform the Commission # * not applicable about the recovery of the amounts notified TABLE 12 RECOVERY Situation on 31-12-1995 EAGGF-GUARANTEE Situation as to cases(*) notified PRIOR to 1992 Regulation (EEC) 595/91 Situation as to cases(*) notified in 1992+1993+1994 AMOUNTS AMOUNT AMOUNT still TO BE RECOVERED (~+, AMOUNT r e c o v e r ed AMOUNT still TO BE R E C O V E R E D ^; notified '(**)' in TOTAL PENDING IN COURT U1 X 1. 000 ECU BELGIQUE DANMARK DEUTSCHLAND ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND ÔSTERREICH PORTUGAL SUOMI /FINLAND SVERIGE UNITED KINGDOM TOTAL , 1 14. 570 23. 252 155. 868 784 2. 486 29. 248 13. 945 409. 108 0 27. 980 # 1. 146 # # 24. 042 2 4. 510 13. 258 30. 510 253 1. 242 10. 696 7. 316 393. 283 0 16. 607 3 2. 550 11. 011 23. 543 0 0 8. 891 2. 228 149. 210 0 3. 471 496 0 11. 196 702. 429 489. 367 492 201. 396 (*) Cases officially communicated (**) Amounts as originally notified or corrected at a later stage to the Commission • /o of the amount notified 4 = 2/1 3 1% 57% 20% 32% 50% 37% 52% 96% 59% 43% 47% 70% notified (**) effectively in TOTAL PENDING IN COURT s 16. 593 9. 101 62. 150 82. 914 79. 607 491404 2. 992 460. 606 0 17. 204 # 14. 327 # # 22. 405 817,303 6 990 4. 829 9. 949 56. 409 1. 951 14. 877 1. 870 90. 063 0 9. 684 7=5-6 15. 603 4. 272 52. 201 26. 505 77. 656 34. 527 1. 122 370. 543 0 7. 520 8 43 1. 029 2. 951 0 212 6. 474 0 114. 445 0 0 1. 153 13. 174 2. 187 10. 524 202. 299 11. 881 615. 004 189 127. 530 /o of the amount notified 9 = 7/5 94% 47% 84% 32% 98% 70% 38% 80% 44% 92% 53% 75% M * not applicable RECOVERY SITUATION on 31-12-1995 STRUCTURAL FUNDS Situation as to cases notified PRIOR to 1992 Situation as to cases notified in 1992+ 1993+ 1994 AMOUNTS X 1. 000 ECU AMOUNT notified (*) AMOUNT still to be recovered PENDING COURT IN amount notified (*) recovered effectively AMOUNT still to be recovered 4 "(1-2-3) % of the amount originaly notified BELGIQUE DANMARK DEUTSCHLAND ELLAS ESPANA FRANCE IRELAND ITALIA LUXEMBOURG NEDERLAND ÔSTERREICH PORTUGAL SUOMI SVERIGE UNITED KINGDOM TOTAL. 0 13 19 111 72 945 58 0 0 562 # 0 # 0 13 12 35 60 945 23 0 0 444 # 0 # 0 0 0 0 0 944 0 0 0 45 # 0 # # 420 2. 200 # 356 1. 888 # 79 1. 068 0 105 239 2874 397 0 0 1477 0 0 # 430 # # 72 5. 594 0 73 29 72 12 0 0 0 0 0 # 238 # # 0 424 0 32 210 2802 385 0 0 1477 0 0 192 '0 97% 100% 72 5;170 100% dm BE DK DE OR ES FR IE IT LU NL AT PT Fl SE GB k) original amount to be recovered after correction(s) # = not applicable CO o o > CO f- m CO CHAPTER 8: ANTI-FRAUD APPROPRIATIONS Section 1: IMPLEMENTATION OF THE 1995 BUDGET The budgetary authority adopted ECU 132. 618 million in anti-fraud (commitment) appropriations totalled ECU 88. 233 million. for 1995. The appropriations available after transfers156 This figure does not include the appropriations at heading B5. 800 (Cooperation in the field of justice and home affairs) which were used in 1995 to finance projects put forward by the Member States under Title VI of the Union Treaty. Much of this is to go to national government departments under the Community's various support and technical assistance policies. Some of the policies are strictly defined in rules governing individual sectors, particularly in agriculture, while others are more flexibly defined by way of the granting of subsidies to support monitoring and investigative work by the specialist departments in the Member States. All of them have to comply with the Commission's self-imposed requirement for sound financial management. Details of how the 1995 appropriations were used are given in Table 14. Section 2: 1996 APPROPRIATIONS The budgetary authority adopted appropriations of ECU 92. 165 million for 1996 (including the amounts entered in the reserve). 157 The volume of appropriations is down on 1995, especially as regards Part B of the budget. The decline is partly the result of the evolution of heading B 1. 360 (ECU 29 million at the heading, ECU 15 million in reserve), as 1995 was, except in the new Member States, the last year of operation of certain cofinancing programmes provided for by Regulations (EEC) Nos 307/91 (reinforcement of controls over certain areas of EAGGF Guarantee Section expenditure) and 3508/92 (integrated management and accounting system). Article B2. 150 is a new heading. It regroups the distinct antifraud appropriations for the structural policies (headings B2-101, B2-111, B2-121 and B2-131). The establishment of a new Title B5. 9 (Measures to combat fraud) and an Article B5-910 (General measures to combat fraud) in the budget subsection for Consumer protection, internal market, industry and trans-European networks was called for by the European Parliament. They cover expenditure incurred by the Commission in technical support by SG/UCLAF to the Member States in agriculture and traditional own resources and expenditure generated by the checks carried out by the Unit to prevent undue payments and losses of revenue from own resources. 158 156 157 158 Internal transfers submitted to the budgetary authority. These amounts cannot yet be used but they are expected to become usable in the course of the year (after establishment of antifraud budgets). In 1995 this expenditure was covered by Article B2-519. 97 Tables 15 and 16 give a detailed breakdown of antifraud appropriations for 1996. 98 IMPLEMENTATION OF APPROPRIATIONS, 1995 Table 14 TITLE MEASURES FINANCED APPROPRIATIONS AVAILABLE AFTER TRANSFERS APPROPRIATIONS COMMITTED PERCENT-AGE USED BUDGET HEADING A-2554 A-3530 A-3531 Conferences, congresses and meetings in connection with the activities of the associations of European lawyers for the protection of the financial interests of the Community Unit to coordinate action against fraud Controls, studies, analyses in connection with the fight against fraud A-3532 Fraud suppression in the textile sector (TAFI) Seminars, meetings and training schemes in the Member States 260. 000 259. 605 99,9 - Meetings, symposiums, investigations - Data bases - Information - Reg. (EEC) No 4045/89 - Legal seminars and studies - Customs, VAT seminars - Investigations and missions - Other seminars - Report on combating fraud - Analyses - Data processing and data bases - Grants - Conciliation body (EAGGF) - SCENT - Seminars, investigations - Grant - Cofinancing of a research unit - Textile booklets 200. 000 3. 308. 000 800. 000 100 98 93 199. 999 85. 615 24. 834 90. 000 3 244. 018 470. 000 112. 904 90. 000 414. 800 516. 246 31. 000 9. 598 718. 120 418. 000 438. 350 25. 000 740 000 188. 799 200. 000 300. 000 51. 201 TOTAL TO BE CARRIED OVER 4. 568. 000 4. 443. 622 99 BUDGET HEADING TITLE MEASURES FINANCED APPROPRIATIONS AVAILABLE AFTER TRANSFERS APPROPRIATIONS COMMITTED PERCENT-AGE USED A-355 B1-360 B2-101 B2-111 B2-121 B2-131 o o CARRYOVER European documentation, coordination and study network to control cross- border crime and fraud Measures to combat fraud affecting the European Agricultural Guidance and Guarantee Fund, Guarantee Section Establishment of a foundation in Dutch law (legal structure of the network) involving 5 countries: D, I, GR, L, NL - Reg. (EEC) No 307/91 & Reg. (EC) No 3235/94 - Reg. (EC) No 165/94 (remote sensing) - Reg. (EEC) No 3508/92 (SIGC) & Reg. (EC) No 3235/94 4. 568. 000 400. 000 65 000 000 4. 443. 622 62. 500 16 62. 060. 000 10. 000. 000 8. 700. 000 43. 360. 000 Measures to combat fraud affecting the European Agricultural Guidance and Guarantee Fund, Guidance Section Grants Measures to combat fraud affecting the Financial Instrument for Fisheries Guidance Measures to combat fraud affecting the European Regional Development Fund Measures to combat fraud affecting the European Social Fund Grants Grants TOTAL TO BE CARRIED OVER 200. 000(*) 10. 000 50. 000(*) 300. 000(*) 200. 000(*) - 30. 000 19. 000 70. 718. 000 66,625. 122 95. 5 5 - 10 9. 5 (*) The corresponding appropriations were entered in reserve B0-40 with a token entry against each heading. The transfer of these appropriations to their headings was subject to a decision by the budgetary authority, on the basis of a report by the Commission (SG/UCLAF). The decision was taken in July 1995; as the appropriations were made available late, it was therefore not possible to make the best use of them in 1995. BUDGET HEADING TITLE MEASURES FINANCED APPROPRIATIONS AVAILABLE AFTER TRANSFERS APPROPRIATIONS COMMITTED PERCENT-AGE USED CARRYOVER 70. 718. 000 66. 625. 122 B2-5110 Inspection in agriculture 12. 715. 000 - Inspection and analyses - Olive oil agencies B2-519 Campaign against fraud in agriculture 1. 650. 000C*) o B5-3051 B6-910 B7-530 Matthaeus and Matthaeus Tax programmes (vocational training for. customs officials and indirect taxation officials) Actions to combat fraud in the area of research (shared-cost) Measures to combat fraud in the cooperation sector - Studies, analyses, inspection - Grants - Consultant's fees - Matthaeus - Matthaeus Tax 3. 000. 000 50. 000 100. 000 12. 668. 864 168. 864 12. 500. 000 764. 387 149. 387 590. 000 25. 000 3. 000. 000 2. 290. 570 709 430 42. 000 - 99,6 46,4 100 84 - TOTAL TO BE CARRIED OVER 88. 233. 000 83. 100. 373 94,2 (*) The corresponding appropriations were entered in reserve B0-40 with a token entry against each heading. The transfer of these appropriations to this heading was subject to a decision by the budgetary authority, on the basis of a report by the Commission (SG/UCLAF). The decision was taken in July 1995; as the appropriations were made available late, it was tliereforc not possible to make the best use of them in 1995. ANTI-FRAUD APPROPRIATIONS, 1996 BUDGET Table 15 TITLE AMOUNT (in ECU) ITEM A-2554 Conferences, congresses and meetings in connection with the activities of the associations of European Lawyers for the protection of the financial interests of the Community A-3530 Unit to coordination action against fraud A-3531 Controls,l studies, analysis in connection with the fight against fraud A-3532 Combating fraud in the textile sector (TAF1) A-355 B1-3 60 European documentation, coordination and study network to control cross-border crime and fraud Monitoring and preventive measures concerning the European Agricultural Guidance and Guarantee Fund, Guarantee Section B2-150 Action against fraud in the field of structural action B2-301 Measures to combat fraud affecting the Cohesion Fund B2-511 Inspection in agriculture B5-3051 Matthaeus and Matthaeus Tax programmes (vocational training for customs officials and indirect taxation officials) 290 000 200 000 4 000 000 800 000 350 0001 29 000 0002 750 000 300 000 15 500 0003 3 200 000 B5-910 General measures to combat fraud 4 175 000 B6-910 B7-650 Actions to combat fraud in the areas of research (shared- cost) Measures to combat fraud in the cooperation sector 50 000 50 000 These appropriations are all entered against Chapter A0. 10 of the budget (reserve, Part A of the budget). An appropriation of ECU 15 million has been entered in reserve BO-40. An appropriation of ECU 13 million has been entered in reserve BO-40. — 102 TABLE 16 ANTI-FRAUD BUDGET 1996 Subdivision by domaines Domaine 1. EAGGF - GUARANTEE 2. STRUCTURAL FUNDS + COHESION FUND 3. AGRICULTURAL CONTROL MEASURES 4. TRAINING for TAX and CUSTOMS officers 5. COORDINATION and GENERAL ACTIONS for FIGHT AGAINST FRAUD ~~ I budget post B1-360 B2-150 / B2-301 B2-511 B5-3051 A2554/'A-353/A-355> | B-910/B6-910/B7-650 TOTAL ANTI-FRAUD BUDGET 1996 M I L L I ON E CU 44,00 1,05 28,50 3,20 9,92 J 86,67 COORD. + GENERAL ACTIONS FIGHT AGAINST FRAUD 1 1% TRAINING for TAX and CUSTOMS officers 4% AGRICULTURAL CONTROL MEASURES 33% EAGGF- GUARANTEE 5 1% STRUCTURAL FUNDS COHESION FUND 1% 103 19/04/96 ANNEX: FREEPHONE NUMBERS IN THE MEMBER STATES Austria Belgium 06605845 080012426 Denmark 80018495 Finland France 0800112595 05917295 Germany 0130820595 Greece Ireland Italy 008003212595 1800553295 16788495 Luxembourg 08003595 Netherlands 060224595 Portugal 0505329595 Spain Sweden 900993295 020791695 United Kingdom 0800963595 104 EEC : European Economic Community GLOSSARY EC : European Community (term used since the entry into force of the treaty on European Union) IGC : Intergovernmental Conference SEM 2000:. Commission. programme to improve by the year 2000 the management of Community appropriations (Sound and Efficient Management) SG/UCLAF or UCLAF : Unité de Coordination de la Lutte AntiFraude (Directorate featuring in the Staff organisation of the Commission's Secretariat General) - in English, Unit for the Coordination of fraud prevention OJ : Official Journal of the European Communities (OJ L: series L, OJ C: series Q TIR : Transport International Routier - in English: International Road Transport SCENT : System for a Customs Enforcement NeTwork CIS : Customs Information System VAT : Value Added Tax COCOLAF: ÇOmité Consultatif pour la coordination dans le domaine de la Lutte AntiFraude (French acronym), in English: Advisory committee for the coordination of fraud prevention * TAFI : Textile Antifraud Initiative GSP : Generalized system of preferences GATT : General Agreement on Tariffs and Trade ESF : European Social Fund ERDF : European Regional Development Fund CSF : Community support framework EDF : European Development Fund IRENE. IRregularités, ENquêtes, Exploitation - irregularities, investigations, exploitation EAGGF: European Guarantee and Guidance Fund (guarantee section: EAGGF- Guarantee, guidance section: EAGGF-Guidance) FIFG: ' Financial Instrument for Fisheries Guidance _ 105 ISSN 0254-1475 COM(96) 173 final DOCUMENTS EN 09 Catalogue number : CB-CO-96-220-EN-C ISBN 92-78-03989-6 Office for Official Publications of the European Communities L-2985 Luxembourg

Amended proposal for a Council Regulation (EURATOM, EC) concerning the provision of assistance to economic reform and recovery in the New Independent States and Mongolia

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 08. 05. 1996 COM(96) 213 final 95/0056 (CNS) Amended proposal for a Council Regulation (EURATOM, EC) concerning the provision of assistance to economic reform and recovery in the New Independent States and Mongolia (presented by the Commission pursuant to Article 189 a (2) of the EC-Treaty) EXPLANATORY MEMORANDUM The Commission submitted to the Council a proposal for a new Tacis regulation in early 1995, on which no compromise could be reached. A new proposal was presented by the Italian Presidency, and finally, an agreement could be recorded on 29 January 1996. The Council re-consulted the European Parliament on this new proposal on 5 February 1996, and Parliament adopted its opinion on 19 April 1996. The Commission accepted 27 out of 36 amendments proposed by Parliament, and is now bound to present a modified Commission proposal consisting of the compromise proposal for a new Tacis Regulation as agreed upon by the General Affairs Council on 29 January 1996 (doc. n° 4546/96) and the amendments voted by EP in its opinion of 19 April 1996 with the exception of numbers 7, 10, 18, 20, 22, 23, 27, 28 and 36 which were rejected by the Commission. The Commission has been favourable to amendments which • aim to increase the duration of the Regulation to six years (6, 21 ), • strive to ensure proper monitoring, audit and assessment of projects in order to be able to identify and correct implementation problems (12, 34), • propose to improve reporting requirements of the Commission to the other European institutions (30, 35), • strive to foster co-ordination between the various donors (5, 16 and 29), • aim to strengthen co-financing of projects with other donors (15, 19), • endeavour to expand the scope and to facilitate the procedures for infrastructure investments which is to be allocated, in particular, to border-crossing facilities and in the context of cross-border co-operation (3, 9 and 17), • strengthen the role of environment and public health in framework of the Tacis programme in order to ensure long-term sustainability of reforms (4, 13), • endeavour to expand the notion of Tacis "Human Resources" sector, and to include additional aspects like inter-cultural exchanges etc. (8, 31, 32), • strenghten the conditionality of the assistance and introduces the respect of minority rights and the rights of indigenous peoples as essential element of assistance (1), • endeavour to further decentralisation of programme management to the recipient countries (14), • propose to review certain implementation modalities of the Tacis programme (24, 25, 26 and 33), like for example amendment 24 which envisages to maintain the threshold for Direct Agreement contracts at 300,000 Ecu, or amendments 25 and 33 promoting the participation of enterprises from Phare and Tacis countries in the programme. • aim to strenghten the role of NGOs in the provision of assistance (2), • attempt to promote multiplier effects and spin-off effects (11). The Commission was not able to accept amendments which • prevent the Commission from proposing a modification to the annexes over the whole life-time of the Regulation (7 and 27). These amendment would hinder to adapt the new Regulation to evolving circumstances in the partner countries. Given the rapid change which could be observed in Tacis partner countries over the last years, the Commission considers it necessary to keep some flexibility with regard to modifications of its legal base. • relate to comitology questions (22 and 28). It is usual Commission practice, owing the nature of the implementing measures concerned, to request assistance of a Management Committee in the implementation of all external assistance programmes. The Tacis Committee's role should not be limited to receiving information, instead of delivering an opinion. • would require to consult the European Parliament, when Council decides on the proposal of the Commission concerning the suspension of aid (18). This requirement would render the provision, which should allow a fast decision on the suspension of assistance, operationally invalid. • would allow for the duration of the programme to employ external experts financed from the operational budget only for the purpose of supervision of projects on the spot (20). The Commission currently attempts to establish and Amending and Rectifying Budget which would include additional budget comments allowing Tacis to employ external staff without limiting the tasks and location for these experts. • would signal to all agents involved in the Tacis programme that the role of technical assistance is strongly reduced (10). The Commission believes that technical assistance should remain the core component of the Tacis programme as i) Tacis provides grant funding, ii) Tacis has gained some experience in this field and iii) a technical assistance programme complements other donors' activities and therefore wishes to keep the threshold of 10 % for exceptional activités. • propose to modify some other implementation modalities (23 and 36), e. g. the Commission wishes to maintain the present version of the Council proposal with regard to the time limit for submission of offers in open tenders which follows the formula provided for open tenders in the procurement directives in the common market. The Commission also wants to maintain the reference excluding "experience in Tacis" as an evaluation criteria in order to avoid that the programme becomes a 'closed club' in which only those enterprises have a possibility to win a tender which have already been awarded a contract before. The Commission believes that the present proposal respects a good balance between the institutions, while reinforcing the basis for the continuation of an efficient programme management. Amended proposal for a Council Regulation (EURATOM, EC) No of concerning the provision of assistance to economic reform and recovery in the New Independent States and Mongolia THE COUNCIL OF THE EUROPEAN UNION Having regard to the Treaty establishing the European Community, and in particular Article 235 thereof, Having regard to the Treaty establishing the European Atomic Energy Community, and in particular Article 203 thereof, Having regard to the proposal from the Commission, Having regard to the opinion of the European Parliament, Whereas pursuant to the European Council in Dublin and in Rome in 1990 the European Community introduced a technical assistance programme in favour of economic reform and recovery in the former Union of Soviet Socialist Republics; Whereas Council Regulation (EURATOM, EEC) No 2053/93 of 19 July 1993 concerning the provision of technical assistance to economic reform and recovery in the New Independent States of the former Soviet Union and Mongolia laid down the conditions for the provision of this technical assistance and foresaw such an operation from 1 January 1993 to 31 December 1995; Whereas such assistance will be fully effective only in the context of progress towards free and open democratic systems that respect human and minority rights and the rights of indigenous peoples, and towards market-oriented economic systems; whereas this progress is an essential element for the continuation of assistance; Whereas such assistance has already generated significant impact on reform in the New Independent States and Mongolia, and further assistance is still required to ensure that this reform becomes sustainable, it is necessary to continue this effort. Whereas a financial reference amount, within the meaning of point 2 of the Declaration by the European Parliament, the Council and the Commission of 6 March 1995, is included in this regulation for the entire duration of the programme, without thereby affecting the powers of the budgetary authority as they are defined by the Treaty; Whereas the implementation of such assistance should enable conditions favourable to private investment to be established; Whereas it is appropriate to establish priorities for this assistance; Whereas Community assistance will be all the more effective where it can be implemented on a decentralised basis within each partner country; Whereas such assistance may with advantage be provided, in many cases, through non-governmental organisations; Whereas reform and restructuring should be encouraged; the development of inter-State economic links and trade flows conducive to economic Whereas in order to properly meet the most acute needs of the New Independent States and Mongolia at the present stage of their economic transformation, it is necessary to permit a limited amount of the financial allocation to be used for small scale infrastructure projects, particularly aimed at the creation or improvement of border-crossing facilities and in the context of cross-border-co-operation; Whereas the development of small and medium-sized enterprises is a priority in all New Independent States and Mongolia, and it is therefore appropriate to provide equity funding for such companies; Whereas the dialogue between the social partners should be encouraged; Whereas the integration of the environment and public health protection aspects into the programme would guarantee the long term sustainability of the economic reforms; Whereas the European Council at its meeting in Rome also stressed the importance of effective co ordination by the Commission of the efforts made in the New Indépendant States of the former Union of Soviet Socialist Republics and in Mongolia by the Community and its Member States acting individually; whereas it is therefore the Commission's duty to ensure such co-ordination; Whereas it is appropriate that the Commission be assisted in the implementation of Community aid by a committee made up of Member States' representatives; Whereas the requirements of economic reform and restructuring now in progress, and the effective management of this programme, require a multiannual approach; Whereas assistance for economic reform and recovery may require specific types of expertise particularly available in the Phare partner countries and in certain other States; Whereas procedures for tenders shall fully respect the provisions of the financial regulation of the European Communities; Whereas the widest possible participation under equal conditions in tenders for supplies, works and services shall be ensured; Whereas the Commission shall ensure the necessary transparency and rigour in application of the selection criteria; Whereas effective competition amongst firms, organisations and institutions interested in participating in the initiatives financed by the programme shall be ensured; Whereas, to this end, all relevant information on projects shall be provided, using, when appropriate, the most modern means of communication, so as to ensure that any firm, organisation or institution which may be interested, can express its interest to be considered for an invitation to tender; Whereas, in the selection process, the Commission shall try to diversify between firms, organisations and institutions; Whereas the continued provision of assistance will contribute to the attainment of the Community's objectives, notably in the context of the Partnership and Co-operation Agreements; Whereas the Treaties have not provided, for the adoption of this Regulation, powers other than those of Article 235 of the EEC Treaty and Article 203 of the EAEC Treaty, HAS ADOPTED THIS REGULATION: Article 1 1. A programme to assist economic reform and recovery in the partner States listed in Annex I (hereinafter called 'the partner States') shall be implemented by the Community from 1 January 1996 to 31 December 2001 in accordance with the criteria laid down in this Regulation. 2. Assistance shall be concentrated on sectors and, where appropriate, on geographic areas in which the partner States have already taken concrete measures to promote reform and/or for which they can present a time-schedule. Criteria for implementation of this regulation are set out in Annex IV, which, if appropriate, may be modified according to the procedure laid down in Article 6 (2) and (3). Article la The financial reference amount for the implementation of this programme for the period 1996-1999 shall be 2. 224 Mecu. The financial reference amount for programme implementation for the remaining years will be set up in the framework of the establishment of the next financial perspectives for the budget. The annual appropriations shall be authorized by the budgetary authority within the limits of the financial perspective. finanr. ial nersnective Article 2 1. The programme referred to in Article 1 shall mainly take the form of technical assistance in support of the economic reform in progress in the partner States for measures aimed at bringing about the transition to a market economy and reinforcing democracy, inter alia through support for the development of new structures for the provision of culture, education, health and social welfare programmes and through the encouragement of the dialogue between the social partners. It shall also, case by case and in accordance with the procedure set out in Article 6 (2) and (3), cover reasonable costs of supplies required in support of the implementation of the technical assistance. In particular cases, such as nuclear safety environmental protection and public health programmes, a significant supply element may be included. The cost of the project in local currency shall be covered by the Community only to the extent strictly necessary. 2. Assistance may cover costs related to small-scale infrastructure projects in the context of border- crossing facilities referred to in Article 2 (9). 3. The programme shall promote industrial co-operation and support the establishment of joint ventures through the funding of equity investment in small and medium-sized companies. 3a. The allocation to activities mentioned under 2. 2 and 2. 3 shall not exceed 10 % of the annual Tacis budget. 3b. In all cases, particular attention shall be paid to the potential multiplier and spin-off effects of the projects financed. 4. The assistance shall also cover costs related to the preparation, implementation, monitoring, audit and evaluation of the execution of these operations, as well as costs concerning information. 4a. The Commission shall ensure constant qualitative monitoring, audit and assessment of projects underway, enabling it to identify and correct problems arising during the course of project implementation. 5. The assistance shall be concentrated in particular in the indicative areas referred to in Annex II taking into account the evolving needs of the beneficiaries. Particular emphasis shall be laid on nuclear safety issues. In addition, financial support may be given to environmental impact assessments or eco- audits. 6. When designing and implementing programmes, due regard shall be taken of : - the promotion of equal opportunities for women in the recipient countries - the environmental considerations. 7. Operations to be financed pursuant to this Regulation shall be selected taking account, inter alia, of the recipients' preferences and on the basis of an assessment of their effectiveness in achieving the objectives aimed at by the Community assistance. 8. The assistance shall be implemented on a decentralised basis as. far as possible. To this end, the final recipients of Community assistance shall be closely involved in the preparation, and execution and, as far as possible, ultimately in the financial management of the projects, and once the national authorities of the partner States have agreed on sectoral policies and strategies, as well as the geographical concentration areas, the identification and preparation of the measures to be supported shall be carried out directly at regional level, wherever possible. The Commission shall establish an appropriate level of local representation to achieve these aims. Particular attention shall be paid to projects which are co-financed directly by local authorities or economic operators in the countries of Central and Eastern Europe or on their behalf. Continuous co-ordination shall be established between the Commission, its representative offices in the beneficiary countries and the Member States, including on-the-spot co-ordination in their contacts with the partner States, both in the programme-definition and in the programme-implementation stage. 9. Assistance shall be provided to support measures aimed at promoting inter-state, inter-regional and cross-border co-operation. Particular attention will be paid to cross-border co-operation, including border crossing facilities on borders between the N. I. S. and the Union, and the N. I. S. and Central Europe, to the co-operation on the level of large geographic regions as well as to measures complementary to those undertaken in this field within the Union and the Phare countries. Cross- border projects may be funded jointly by this programme and INTERREG. 10. When an essential element for the continuation of co-operation through assistance is missing, in particular in cases of violation of democratic principles and human rights, the Council may, on a proposal from the Commission, acting by a qualified majority, decide upon appropriate measures concerning the assistance to a partner State. Article 3 1. Community assistance shall take the form of grants which shall be released in tranches as projects materialise. la. The Community shall provide assistance either independently or on the basis of co-financing in conjunction with Member States, the European Investment Bank, third coimtries, multilateral agencies or the recipient coutnries. 2. Financing decisions and any contracts resulting therefrom shall expressly provide for supervision by the Commission and the Court of Auditors, to be carried out on the spot, if necessary. 1. Indicative programmes covering three-year periods shall be established for each of the partner Article 4 States in accordance with the procedure provided for in Article 6. These programmes shall define the principal objectives of and guidelines for Community assistance in the indicative areas referred to in Article 2, and shall include financial estimates. They may be amended in accordance with the same procedure during the period of their application. Before the establishment of indicative programmes, the Commission shall inform with the Committee referred to in Article 6, on the priorities identified with the partner States. 2. Action programmes based on these indicative programmes shall be adopted on an annual basis in accordance with the procedure provided for in Article 6 (2) and (3). These action programmes shall include a list of the main projects to be financed within the indicative areas referred to in Article 2. The content of the programmes shall be determined in detail so as to provide the Member States with the relevant information to enable the Committee referred to in Article 6 to deliver its opinion. Article 5 1. The Commission shall implement operations in accordance with the action programmes referred to in Article 4 (2) and in accordance with Title IX of the Financial Regulation applicable to the general budget of the European Communities as well as Articles 5a of this Regulation. 2. Supply and works contracts shall be awarded by means of open invitations to tender except in the cases provided for in Article 116 of the Financial Regulation applicable to the general budget of the European Communities. Open invitations to tender for the award of supply contracts in accordance with Article 114 of the Financial regulation of the European Communities shall allow for a time limit to submit an offer of not less than 52 days from the date of dispatch of the notice to the Official Journal. Service contracts shall, as a general rule, be awarded by restricted invitations to tender and by private treaty for operations up to ECU 300 000. Participation in invitations to tender and contracts shall be open on equal terms to all natural and legal persons in the Member States and in the partner States and the Phare countries. Participation in invitations to tender by natural and legal persons from Mediterranean countries with traditional economic, trade or geographical links may be authorised by the Commission on a case-by- case basis if the programmes or projects concerned require specific forms of assistance specifically available in such countries. 3. Taxes, duties and the purchase of immovable property shall not be funded by the Community. 4. In the case of co-financing, the participation of third countries concerned in invitations to tender and contracts may be authorised by the Commission, but on a case-by-case basis. In these cases participation of undertakings from third countries shall only be acceptable if reciprocity is granted. Article 5 a The principles governing the application of the present Regulation for the awarding of contracts by means of restricted tendering are contained in Annex III, which may be modified by the Council, acting by qualified majority on a proposal by the Commission. The Commission shall present to the Council a report on the implementation of these principles by 31 December 1997. Article 6 1. The Commission shall be assisted by a committee composed of the representatives of the Member States and chaired by the representative of the Commission (hereinafter referred to as the 'Committee') to be known as the "Committee for the assistance to the independent States and Mongolia". 2. The representative of the Commission shall submit to the Committee a draft of the measures to be taken. The Committee shall deliver its opinion on the draft within a time limit the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148 (2) of the EC Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the representatives of the Member States within the Committee shall be weighed in the manner set out in that Article. The chairman shall not vote. 3. The Commission shall adopt the measures envisaged if they are in accordance with the opinion of the Committee. If the measures envisaged are not in accordance with the opinion of the Committee, or if no opinion is delivered, the Commission shall, without delay, submit to the Council a proposal relating to the measures to be taken. The Council shall act by a qualified majority. If, on the expiry of a period of three months from the date of referral to the Council, the Council has not acted, the proposed measures shall be adopted by the Commission. 4. The Committee may examine any other question relating to the implementation of this Regulation which may be put to it by its chairman, including at the request of the representative of a Member State and, in particular, any question relating to general implementation, the administration of the programme, co-financing and the co-ordination referred to in Article 7. 5. The Committee shall adopt its rules of procedure by qualified majority. 6. The Commission shall keep the Committee regularly informed, supplying specific, detailed information on the contracts awarded for the implementation of the projects and programmes. Moreover, for projects expected to be put out for restricted invitations to tender in accordance with Article 5 (2), the Commission shall, before drawing up short-lists, provide in good time advance information which shall include selection and evaluation criteria so as to facilitate participation by economic operators. 7. The European Parliament shall also be kept regularly informed of the implementation of the Tacis programmes. Article 7 The Commission shall ensure the effective co-ordination of the assistance efforts undertaken in the partner States by the Community and individual Member States on the basis of the information supplied by the Member States. In addition co-ordination and co-operation with the international financial institutions and other donors shall be ensured. In the framework of the assistance provided pursuant to this Regulation, the Commission shall promote co-financing with public or private bodies in the Member States. Article 8 By 1 September of each year the Commission shall present a comprehensive report evaluating the progress of projects and their impact on the progress of development in each of the partner States to the Member States, the European Parliament, the Council and the Economic and Social Committee and the Committee of the Regions. Article 9 This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities. This Regulation shall be binding in its entirety and directly applicable in all Member States. ii ANNEX I Partner States referred to in Article 1 : Armenia Azerbaijan Belarus Georgia Kazakhstan Kyrgyzstan Moldova Russian Federation Tajikistan Turkmenistan Ukraine Uzbekistan Mongolia AX ANNEX II Indicative areas referred to in Article 2 Assistance shall give priority to the following areas: 1. Human Resources Development: education, training including managerial and manpower training, inter-cultural co-operation, restructuring of public administration, employment services and social security advice, strengthening of the civic society, support for democracy and the rule of law, policy and macro-economic advice, legal assistance including approximation of legislation; 2. Enterprise restructuring and development: support for the development of small and medium-sized enterprises, conversion of defence related industries, privatisation and restructuring financial services; 3. Infrastructure: transport telecommunication; 4. Energy, including nuclear safety; 4a. Development of the social sector: - strengthening the provision of culture, education, health and social welfare, - support for institution-building in the filed of social welfare 5. Food production, processing and distribution. 6. Environment: - institutional strengthening - legislation - training 45 Principles governing the award of contracts by means of tendering, in particular restricted tendering Annex III 1. All necessary information shall be made available with the "Invitation to Tenderers" to each of the tenderers which have been registered on the short-list or which so request in reply to the publication of a notice of an open tender. This information shall contain, in particular, the evaluation criteria. The technical evaluation of the tender may include interviews with the persons proposed in the tender. 2. The Commission shall chair all evaluation committees and shall appoint a sufficient number of evaluators before the tenders are launched. One evaluator should come from the recipient institution of the beneficiary countries. All evaluators shall sign a declaration of impartiality. 3. The tender is evaluated on the basis or a weighing of technical quality against price. The weighing of the two criteria shall be announced in each invitation tender^3)- The technical evaluation shall be carried out according in particular to the following criteria: organisation, time schedule, methods and plan of work proposed for providing the services, the qualifications, experience, skills of the staff proposed for the provision of the services and the use made of local companies or experts, their integration into the project, and their contribution to the sustainability of the project results. Specific experience of the tenderer in Tacis shall not be taken into account. 4. Unsuccessful tenderers shall be informed by a letter, including an indication of the reasons for their failure and the name of the successful tenderer. 5. Any natural or legal person involved in the preparation of a project shall be excluded from participation in the project implementation. If any participating tenderer employs such persons, in any capacity within six months of the termination of their involvement in the tender process, that tenderer may be excluded from participation in the project. Any tenderer included on a short list shall be excluded from participation in the evaluation of that tender. 6. The Commission shall ensure that all commercially sensitive information relating to a proposed tender remains confidential. 7. Whenever a firm, organization or institution has serious reasons to ask for review of a tender, there will always be the possibility to address the Commission. In that event, a reasoned reply should be given to this request. 8. In the cases of award of contracts after restricted invitations to tender as referred to in Article 116 of the Financial Regulation of the European Communities, all written expressions of interest, shall be registered by the Commission, which will use this registration when drawing up the short-list. In addition, other information, in particular from the Tacis central consultancy register, may be considered when drawing up the short list. This register shall be open to all interested firms, organisations and institutions for registration. 9. When drawing up the short-list the Commission shall be guided by qualification, interest and availability of the firm, organisation or institution. The number of firms, organisations and institutions 41 on a shortlist shall depend on the size and the complexity of the project and should offer the widest possible choice with the inclusion of the operators from the recipient states, wherever possible. Firms, organisations and institutions which have expressed their interest in writing in a project shall be informed whether or not they have been included on the shortlist. 10. Every year the Commission shall give to the Committee a list of the firms, organisations and institutions which have been selected. 11. In highly complex projects, the Commission may suggest to firms, organisations and institutions, which have been retained on a short-list, the formation of consortia among them. In these cases, this suggestion, as well as the complete short-list, shall be transmitted to all firms, organisations and institutions having been retained on it. 12. In restricted tendering there shall be a minimum period of 60 calendar days between the final opinion delivered by the Committee and the launching of the tender. Nevertheless, in case of urgency this period may be shortened by the Commission, provided that a detailed explanation is transmitted to the Committee. An invitation to a restricted tender shall allow for a time limit of 60 calendar days from the date of delivery of the invitation letter. In urgent cases this period may be reduced, but it may never be less than 40 calendar days. In exceptional cases, this delay may be extended by the Commission, provided that a detailed explanation is transmitted to the Committee. All changes of delay must be duly notified to the firms, organisations or institutions concerned. AS Annex IV Criteria for the Implementation of the Regulation 1. Cross-Border Co-operation Cross-Border Co-operation (CBC) shall primarily serve to assist border regions in overcoming their specific development problems stemming from relative isolation in the national economies, to encourage the creation of co-operation networks and the establishment of links between networks on both sides of the border including border-crossing facilities, and accelerate the transformation process in the N. I. S. by their integration into the co-operation with border regions in the Union or the CEEC. CBC may take place along all borders between the Union and the N. I. S. , the Central and Eastern European Countries and the N. I. S. and the N. I. S. amongst themselves, including maritime borders. CBC includes both measures in the field of technical assistance and infrastructure. Activities in all priority sectors may be financed under this form of co-operation. 2. Industrial Co-operation, Equity Funding of Joint Ventures (see Art. 2. 3. ) In the framework of the assistance provided pursuant to this Regulation, the promotion of industrial co-operation as referred to in Article 2. 3 shall be implemented by encouraging pilot co operation projects between EU and N. I. S. companies and direct inter-industry contacts. Any activity in this context shall fully comply with this Regulation, in particular, the demand-driven approach and the tendering procedures. In the case of nuclear-safety programmes due account shall be taken in procurement of the commitment of the recipient country to the objectives of technical assistance in nuclear safety. In addition, a specific facility ("JOPP") shall support the establishment of joint ventures through the funding of equity investments in small and medium-sized companies. This facility will operate along the lines and criteria of "JOPP". 2 bis Contract Information For the implementation of Article 5 of this regulation, the Commission shall provide upon request to all interested firms, organisations and institutions throughout the Union a documentation on the general aspects of the Tacis programme and the ways and specific requirements for a participation in the programme. The information on projects, which are going to be tendered, shall be made available, as soon as possible after the project has been submitted to the Member States in the Tacis Committee. This information shall be made available to every interested firm, organisation or institution who registers on the Tacis mailing list. db A publication shall be made available normally on a two-monthly basis to update the above information, and to inform firms, organisations and institutions if projects are still open for expression of interest. 3. Supervision, Monitoring and Evaluation In order to ensure a full implementation of Article 2. 4 of this Regulation, the Commission shall always ensure effective control over the whole project cycle. In order to ensure that the Tacis objectives are being achieved to a level that is satisfactory to all parties concerned an independent Monitoring and Evaluation (M & E) programme shall be implemented. Expenditure for this purpose may not exceed 3% of total contracts awarded each year. In the context of the Tacis programme, Monitoring shall consist of preparing\submitting an analytical assessment, carried out at regular intervals in the form of a written detailed summary of Tacis projects in order to indicate the degree to which these have achieved their stated objectives for project management and other involved parties. This shall aim at ascertaining that projects are "on course" and signal "early warning" of potential problems to allow adjustments to be made with the minimal disruption. The immediate objective of monitoring shall be to provide a regular reporting mechanism to enable more focused project management decisions to be reached in order to ensure that a project remains on course thus achieving its objectives. Evaluation shall consist of an independent objective examination of the background, objectives, activities, means deployed and results with a view to drawing lessons that may be more widely applicable. A number of objective criteria may be used, for example sustainability, impact and lessons learned. The system shall be set up and implemented via regional offices and a central M & E section at the Commission. Monitoring offices are to be established and maintained in the N. I. S. and staffed by European experts and local counterparts monitors which cannot be involved in the preparation of any project according to the criteria laid down in Annex III, point 5, last indents. These offices shall be responsible for all day to day projects Monitoring and providing specific sectoral, country and regional reports as required. These offices shall cover interstate as well as sectoral projects. The European experts will also provide training to the counterpart monitors. The Monitoring offices will interface with all the participants in the programmes i. e. the Commission (including Delegations), Co-ordinating Units, Project Partners and Contractors. They shall provide Monitoring reports on a systematic and agreed basis to the above participants on projects and prepare regional reports and evaluations as required for the M & E Section in the Commission. i? The whole programme shall be co-ordinated by an M & E section established within Tacis services in Brussels. This section shall be responsible for the overall policy and direction of the service and shall provide regular management summaries and evaluation reports on the Tacis programmes to internal services. The European Parliament and the Tacis Committee shall be provided every six months with evaluation summaries and on request with full evaluation reports. 4. Programming Before drawing up the indicative programmes referred to in Article 4 of this Regulation the Commission shall inform the Committee referred to in Article 6 of the priorities identified with the partner States. At the beginning of every year the Commission shall provide an indicative timetable for the presentation of the action programmes to the Committee referred to in Article 6 of the Regulation. The action programmes shall be established in close co-operation with the partner States. In this respect the Co-ordinating Units shall play an important role. These Units should be formed by representatives of the local Government and when necessary they shall be assisted by experts appointed by the Commission. In this case, the Commission will ensure an appropriate selection procedure in order to guarantee their independence, qualifications and a wide representation of the different nationalities. The action Programmes shall encompass the following information; link between the indicative and the action programme; insertion of the action programme in the reform process underway in the partner State; co-ordination of the action programme with other donors activities; general organisation for the implementation and the management of the programme; list of projects to be funded. Whenever possible, the objective, recipient and main components of each project shall be specified in the appendix to the action programmes. For each project above 1 Mecu, a project sheet shall be attached in the appendix to' the action programme. For each project above 3 Mecu, a logical framework matrix shall be attached in the appendix to the action programme. 4 bis Co-ordination For the implementation of Article 7, the Commission shall as a rule and on a quarterly basis hold in those partner countries where a Delegation exists an information meeting on the programmes in order to ensure co-ordination of Community and bilateral efforts on the spot. Member States shall be informed sufficiently in advance of the co-ordination meetings on the spot, in order to ensure that these meetings can be thoroughly prepared and a maximum of Member States can be present. Co-ordination and co-operation with other donors shall be encouraged. In order to obtain effective co-operation with the International Financing Institutions there shall be regular consultations between the Commission and these institutions on a central as well as a local level (4). 5. Reporting In accordance with Article 8 of this Regulation, the Commission shall provide an annual progress report. This report shall include an overview and relevant data on the implementation of the Tacis programme on a per country basis. Other aspects of operational or administrative nature which might have an important impact on programme implementation shall be included in the progress report. The report shall upon request be made available to the general public. Additional reports shall be made available to the Committee and to the European Parliament on a quarterly basis, containing a review of the position regarding contracts, payment authorisations and commitment authorisations and, in particular: (i) list of firms, organisations, institutions and their nationality being awarded contracts in excess of 100. 000 Ecu, and procedure followed for award, (ii) list concerning the distribution of awarded contracts per country of origin. The list mentioned under (i) shall be published in the Official Journal according to Art. 117 of the Financial regulation. /W Statements for entry in the Council minute tes 1) Re: Article 2. 10. Statement by the Member States "If any delegation so requests, the Council will endeavour, within a resonable time scale and without prejudice to the procedures provided for in the legal basis of the act, to reach a common view on the respect of human rights and democratic principles in the third country concerned before taking the measure concerning the assistance. " 2) Re: first parargraph of Article 5 Council statement "The Council agrees that the Commission will submit to it a report in the event of difficulties in applying the principles set out in Annex III. " 3) Re: second paragraph of Annex III. 3 Commission statement "The Commission states that in evaluating tenders it will apply as a general rule a weighting of technical quality (70%) against price (30%). " 4) Re: second paragraph of Annex IV. 4a Commission statement "The Commission declares that the European Training Foundation in Turin shall be given a specific role in the implementation of the Tacis programme in the area of vocational training. " eh* ISSN 0254-1475 COM(96) 213 final DOCUMENTS EN u Catalogue number : CB-C0-96-225-EN-C ISBN 92-78-04044-4 Office for Official Publications of the European Communities L-2985 Luxembourg <21

Proposal for a COUNCIL DECISION amending Decision 93/246/EEC of 29 April 1993 adopting the second phase of the trans-european cooperation scheme for higher education (TEMPUS II) (1994 to 1998)

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COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, 08. 05. 1996 COM(96) 198 final 96/0133 (CNS) Proposal for a COUNCIL DECISION AMENDING DECISION 93/246/EEC OF 29 APRIL 1993 ADOPTING THE SECOND PHASE OF THE TRANS-EUROPEAN COOPERATION SCHEME ,. FOR HIGHER EDUCATION (TEMPUS II) (1994 TO 1998) (presented by the Commission) EXPLANATORY MEMORANDUM L 1. 2. 3. 4. BACKGROUND At the conclusion of the European Council in Strasbourg in December 1989, the Council of Ministers asked the Commission to submit detailed proposals on the measures to be taken in the area of higher education and training in order to support the reform process in the countries of Central and Eastern Europe. The Tempus programme was adopted by the Council on 7 May 1990 (Council Decision 90/23 3/EEC) within the budgetary framework of Phare, the Community's programme of economic assistance to the countries of Central and Eastern Europe. Tempus, the aim of which is to encourage the development and restructuring of the systems of higher education in the beneficiary countries with partners in the Community, was initially adopted for a pilot phase of three years, which began on 1 July 1990. A subsequent Council Decision extended this pilot phase by one year to the end of June 1994 (Council Decision 92/240/EEC)1. On 29 April 1993 the Council adopted the second phase of the Tempus programme for a period of four years to begin on 1 July 1994, and extended its coverage to include the Republics of the former Soviet Union and Mongolia within the budgetary framework of the Tacis economic aid programme2. Article 11 of the Council Decision of 29 April 1993 (93/246/EEC) stipulates that the Commission will evaluate the implementation of the Tempus programme and will submit no later than 30 April 1996 a proposal for the continuation or adaptation of the programme for the period beginning 1 July 1998. This is the background against which the current proposal is being presented to the Council for a decision. II. DESCRIPTION OF THE PROGRAMME A. The joint European projects have always been the main instrument for cooperation between universities under the Tempus programme. A joint European project requires the participation of at least one university in a beneficiary country and of partner institutions in at least two Member States of the European Community (one of which must be a university). The projects, which are selected on the basis of an annual open invitation to tender, are funded for a period of three years The number of partner countries involved in the programme increased from two in May 1990 (Poland and Hungary) to 11 in February 1992. The current participants are as follows: Albania, Bulgaria, the Czech Republic, the Slovak Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovenia. In the 1996/97 academic year, the following Republics of the former Soviet Union are taking part in the Tempus programme funded by the Tacis programme: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, the Russian Federation, Tajikistan, Turkmenistan, Ukraine and Uzbekistan, as well as Mongolia. •1 (preceded by a one-year preparatory period in the Tacis countries), the funding being allocated on the basis of an annual assessment of the progress made. All decisions relating to the selection of projects are taken in agreement with the partner States after consultation with experts from these countries and from the European Community. In the initial phase, the strategy established for the Tempus programme was to seek to restructure university education by supporting initiatives on the basic aspects of reform, such as the development of curricula, the organisation of the mobility of staff (especially periods of retraining and continuing training) and of students, as well as the purchase of the equipment needed for teaching and communication. Under Tempus II, the programme's objectives were redefined in order to bring it more into line with the strategic aim of developing higher education in each partner country and to ensure that it dovetails with the developments funded by other activities under the Phare and Tacis programmes. To this end, the Tempus programme set out to tackle the following areas: - the questions relating to the development and overhaul of curricula in priority areas; the reform of the structures and establishments of higher education, and of their management; the development of skills training in order to make up for the lack of skills at higher-education level which are adapted to periods of economic reform, in particular by improving and increasing links with industry. - The priority sectors to be supported by the Tempus programme are defined on the basis of the annual consultations between the Commission and the authorities of each partner country. These priorities must fit in with the pre-accession strategy, thereby following the policy of the Phare programme towards the associated countries. In the case of the Tacis countries, the priorities must be in line with the economic and democratic reform policies of these States and with the specific priorities of the Tacis programme. B. C. In the case of the Phare programme, as well as the joint European projects, mobility grants are provided to teachers, instructors or administrative staff of establishments of higher education, to senior officials in the relevant ministries and to education planners. The visits conducted by these people must be concerned with the development of higher education in a partner country and, more specifically, the development of the participating institution of the country concerned. In addition, grants are provided for a number of activities which complement the Tempus/Phare programme as a whole. These activities are designed to support the overall objective of the programme, which is to contribute to the development and restructuring of the systems of higher education in the partner countries, especially by improving the capacities of the establishments of higher education to carry out strategic planning and institutional development, by supporting the dissemination of the results of Tempus and by promoting the establishment of a national strategy in the partner countries for the development of a specific aspect of higher education. III. THE POLITICAL, ECONOMIC, SOCIAL AND TECHNICAL CONTEXT OF THE PROPOSAL The possible continuation of the Tempus programme must be seen in its political and financial context. The financial planning for the Phare and Tacis programmes will run until December 1999, which means a comparatively short time span (two years) for a new phase of Tempus. There are differences between the partner countries. The needs of an area of the size of the former Soviet Union (where the Community has been working for a relatively short period of time3) are not the same as the needs of the countries of Central Europe, which have already been involved for six years and are in the pre- accession process. A. Tempus/Tacis In the Republics of the former Soviet Union and in Mongolia, Tempus has proved to be an important instrument for supporting the reform of the education systems by funding, over a period of three years, 237 preparatory projects lasting one year and 59 joint European projects lasting three years. Furthermore, Tempus is still at an early stage of development in the Tacis countries, which must meet tough requirements in the reform of their political, economic, social and legal structures, and these requirements will continue to apply in the years to come. Although the various Tacis countries are independently pursuing their own reform policies, they share certain common themes resulting from their Soviet past, which shape the role to be played by the Tempus programme in the future. The tasks include, in particular: providing assistance in diversifying and decentralising higher education and in increasing its independence; strengthening the regional dimension of higher education; Tempus was extended to cover the countries of the former Soviet Union by the "Tempus IT" Council Decision of 29 April 1993. The programme has been extended gradually to cover the various States, some of which are taking part this year for the first time. supporting the universities in their efforts to make a specific contribution to economic and social reforms in other areas, in particular the improvement of relations between the universities and the socio-economic players; reforming and modernising over-specialised courses which no longer meet current needs, in particular in the subjects which are crucial to the overall reform process; introducing new teaching methods, training teaching staff and boosting the capacity for continuing education; - modernising establishments of higher education to adapt to the market economy; the management of universities in order to enable improving and modernising teacher training, especially with a view to developing pluralist civics education. While the activities and measures that have been carried out thus far by Tempus- Tacis have proved to be fruitful and suitable (see also point V below), the nature of the remaining needs in the areas in which Tempus can provide assistance warrants an extension of the programme. This extension should initially be adopted for a period of two years, in line with the planned duration of the new Tacis Regulation and the funding plan for the Tacis programme. In addition, Tempus fits in with the general framework of relations between the European Community and the Republics of the former Soviet Union and Mongolia, and with the cooperation agreements, all of which provide for education and training measures. is planned to The new Council Regulation on Tacis4, which last until 31 December 1999, and the national Tacis programmes in particular, provide for a more specific operational strategy to be defined in order to support the objectives of economic and democratic reform. The future activities of Tempus will be at the heart of this strategy in order to encourage as many of the players in higher education as possible to help achieve these reform objectives. The priorities of Tempus will be established on a regular basis for each country, depending on the corresponding Tacis programmes. The new Council Regulation on Tacis of 29 January 1996 (No. ) provides for indicative programmes lasting four years (1996-1999) and for more detailed action programmes of varying duration. B. Tempus/Phare Association agreements have been concluded by the European Community with six Central European countries5 and, for three others6, such agreements have already been signed and are expected to be concluded in 1996. All these countries are preparing for their incorporation into the internal a) market as part of the pre-accession strategy established at the Essen European Council (December 1994). The "White Paper" of May 1995 "Preparation of the associated countries of Central and Eastern Europe for integration into the internal market of the Union" emphasises the demands that this process entails for the associated countries and the consequences for their systems of education and training. Moreover, these countries have been asked to become gradually involved in Community programmes. b) These associated countries include those which have been beneficiaries of Tempus since the beginning (1990). The scale of the assistance granted to the universities of these States, in terms of both the number of projects and the amount of funding, is worth stressing. 1 207 joint European projects have been implemented since 1990. 23 295 students from the countries of Central and Eastern Europe have spent a period of time studying in a Member State, and 3 924 students of the European Community have spent time in a country of Central and Eastern Europe. In addition, 29 923 teachers from the partner countries have spent time in the Member States, and 21 017 teachers from the European Community have spent time in Central and Eastern Europe. Of the many contributions which Tempus has made to the development of the local systems of higher education, the initiatives designed to develop new curricula, to transfer equipment and to encourage mobility have been particularly appreciated. It is therefore true to say that Tempus has made a major contribution to reducing the gap between the European Community and the countries of Central and Eastern Europe in terms of the range and quality of teaching offered to students. c) Given this new situation, rather than pursue beyond 1998 all the measures conducted by Tempus since 1990 in these countries with the same level of funding, the intention is to focus on four main areas: - preparing for accession to the European Community : the Union has a duty to smooth over the road to accession for the partner countries. The universities can play a key role in defining the "new Poland, Hungary, the Czech Republic, the Slovak Republic, Romania and Bulgaria. Estonia, Latvia and Lithuania. 5 occupational profiles" which the countries need and in transposing the European directives on the regulated occupations, which will involve a reform of the curricula in the sectors concerned. This is part of the more general role of higher education in regard to the labour market of looking ahead to see what qualifications should be developed. making it easier to take part in Socrates (the Erasmus strand): In particular, Tempus can act as a facilitator to contribute to the effective participation of the partner countries in Socrates, which is planned to begin in the 1998/99 academic year in areas such as: • the academic recognition of periods of study mobility scheme; in the student the development or improvement of services for students with a view (counselling, housing, cultural activities); to establishing good exchange conditions university management, the improvement of which will prepare the way for the establishment of the "institutional contracts" under Socrates. Clearly, the date of entry into Socrates/Erasmus and any sharing of effort and funding between Socrates and Tempus are decisions to be taken by the associated country in question, since they have not all reached the same level of development or set the same priorities. managing change: Although the universities of Central and Eastern Europe have adopted a certain form of autonomy, they still need to establish real governing bodies and effective structures. They are accountable to their various partners (the State, local authorities, parents, students, firms) and have to diversify their services, while at the same time maintaining quality, against a background of falling public funding. It is for example a major concern of the universities how ongoing training is to be developed within the universities and the practical application of research) created. Tempus is in a position to provide effective assistance in these areas, which have been and still are among the key concerns of the Member States. Tempus can also be a useful channel for providing assistance towards the implementation of major national reforms in higher education, such as the establishment of short and vocational courses. The task, begun in TEMPUS II, is a priority in most of the countries. interfaces between universities and business (for building on what has been achieved: Following the conclusions of the external evaluation, which regretted that the potential of excellent Tempus projects was being underexploited, considerable efforts still need to be made to disseminate the results at sectoral or local level. To sum up, the task is to use the university system to prepare for accession in the best possible conditions and to make it possible for the institutions of the partner countries to reach European standards in areas in which they have shortcomings, notably in management and quality. A targeted programme of this kind can be implemented over a period of two years, with a level of funding which is adapted to each country's stage of development and needs, but which is, in any event, more limited than in the previous phase. d) As regards the non-associated countries, Albania still needs substantial assistance in all areas, given its economic backwardness and the specific difficulties of its education system. Its situation can be compared, for the purposes of the analysis, to that of many countries in the Tacis assistance zone. The countries of the former Yugoslavia (apart from Slovenia, for which the assistance is to take the same form as the components of the association agreements concluded with the countries which are at the pre-accession stage) may be included in this group, depending on their political situation and the actual implementation of the Phare programme. They have different traditions of contacts with the European Community, but their university community would like to re establish substantial links, in view of the events of recent years. The universities play a particularly important role in spreading the values of democracy and tolerance in society. IV. THE REASONS WHY ACTION AT UNION LEVEL IS NECESSARY, AND AN ANALYSIS OF THE CONSEQUENCES OF A FAILURE TO ACT The European Community's political commitment to cooperation and dialogue with Central and Eastern Europe and the Newly Independent States no longer needs to be proved. This subject has been regularly discussed in the European Council and has been translated into operational measures, namely the Phare and Tacis programmes and the "association agreements" and "partnership agreements". Education and the development of human resources have been treated as priorities in this process. The Commission would stress that the Tempus programme has provided a way of responding rapidly and substantially to the need to overhaul and adapt systems of higher education. Tempus has made a major contribution in the partner countries to the fulfilment of the recognised tasks of universities: - to raise the general level of knowledge; to produce citizens who are adapted to the needs resulting from economic restructuring: the achievements in disciplines such as economics, law and the social sciences are significant in this respect; to contribute to the civic, democratic and cultural life of peoples, which assumes academic freedom and is a particularly important issue in States which are in a period of transition. In addition, Tempus has: helped to create interest in trans-European cooperation among higher education establishments in the beneficiary countries; - - - encouraged greater use of the languages of the European Community; broken down the barriers preventing higher education systems from adapting to the requirements of the European Community; begun to open up higher education to its local, regional or even European environment local authorities or other higher education establishments); (firms, made it possible for many teachers, administrative staff and students to spend time in the Member States of the European Community; on their return to their respective countries, most of these people have endeavoured to modernise university organisation. It is now necessary to consolidate the work done by Tempus, especially by focusing on structural reforms and on the dissemination and promotion of the results already achieved; in this connection, the bilateral assistance provided by the Member States provides an essential complement to Community cooperation. This was the theme of the joint message of the Commission and the Ministers for Education of the Member States at their meeting with the Russian Minister for in St Petersburg (September 1994). Prior to this meeting, the Education Commission had disseminated a study reviewing the cooperation between the Member States and the countries of the former Soviet Union. At the meeting of Ministers on 23 October 1995 in Luxembourg as part of the institutionalised dialogue, the Ministers of the countries of Central and Eastern Europe expressed their wish to become involved in the Community programmes. At the same meeting, the Ministers of the Member States stressed the complementary nature of the bilateral and Community measures. Seen from the point of view of the partner countries, the Community measures offer an opportunity to appreciate and benefit from the diversity of the education systems in the European Community. By obviating the need for them to follow 8 one particular model, the Community measures encourage them to take the best features of the various systems and then to establish their own system, which will, by definition, be original and adapted to their needs. A decision to suspend the programme would be premature and unjustified in both technical and political terms, given that the European Community will maintain programmes of technical assistance for this part of the world, at least until the end of 1999. The lack of an educational component in these programmes would be badly received, not just by the university community in Europe, but also by all those who believe that there is a link between investment in training and economic development. As there is no alternative instrument which can support the structural reforms of higher education in the countries which are beneficiaries of Phare and Tacis, an interruption of the Tempus programme from 1998 would slow down, or even halt, the process of adapting the university systems of these countries to the new economic situation. This would jeopardise the switch from an approach based on providing assistance to one based on Community cooperation. V. THE COSTS AND ADVANTAGES OF THE CHOSEN SOLUTIONS FOR THE GROUPS MOST DIRECTLY AFFECTED The Tempus programme is targeted primarily at higher education establishments in the partner countries and their staff (lecturers and administrative staff). In addition, the measures supported by Tempus affect all those in the partner countries who seek the necessary vocational qualifications to contribute to the economic and social reforms, and in particular, to the pre-accession process. Moreover, the national authorities with responsibility for higher education in the partner countries benefit directly from the support provided by Tempus for the reform of their respective systems. The external evaluation ordered by the Commission in accordance with Article 11 of the Council Decision not only confirmed that the target groups derived lasting benefit from Tempus, but also showed the need to continue the assistance. On the basis of the results of the evaluation, the Commission believes that it is necessary to extend Tempus in order to: - prepare the way for the associated Phare countries to join the European Community by means of specific measures within the framework of the strategy laid down in the "White Paper" of May 1995 "Preparation of the associated countries of Central and Eastern Europe for integration into the internal market of the Union; - - - establish, to this end, the vocational qualifications required for a single market; prepare higher education establishments in the associated Phare countries to take part, on an equal footing, in the education programmes of the European Community (such as Socrates); provide lasting support for the implementation of the Tacis programmes and the partnership and cooperation agreements with these countries by means of measures in the higher education sector; develop new curricula, books and teaching material in priority sectors whose reform is particularly important for the overall reform process; strengthen the autonomy and improve the management of higher education in the beneficiary countries in line with the policies adopted by them, and show that higher education is essential to the process of social and political reform; - strengthen cooperation between higher education establishments, firms and other social and economic players; provide effective support for the political initiatives of the partner countries to reform higher education. The extent to which these objectives are achieved will continue to depend on the level of involvement of the beneficiaries in the Tempus programme. The implementation of Tempus will also continue to depend primarily on the willingness of higher education establishments in the Member States of the Community to share their experience by taking part in Tempus projects. Moreover, it has emerged that these establishments actually benefited themselves from this cooperation, and the recent experience of the implementation of the programme clearly shows the continued interest of universities in the European Community in participating in Tempus. Tempus will have to continue to meet all the operational costs of the projects. VI. REASONS WHY THE PLANNED MEASURES ARE CONSIDERED TO BE CONSONANT WITH THE SCALE OF THE PROBLEM The measures planned under Tempus (joint European projects, structural and/or complementary measures, and individual mobility grants) are described in the 10 Annex to the Council Decision, which remains largely unchanged, apart from updating for the associated Phare countries7. The external evaluation of the first and second phases of the Tempus programme confirmed that these measures are generally appropriate. Given that the measures applied in the past have proved to be fruitful and suitable, there is no need to re examine them for the extension of the Council Decision. Fine tuning can be carried out during the implementation of the programme, after consultation of the Tempus Committee, without any substantial modification of the Council Decision. VU PRESENTATION OF THE VIEWS EXPRESSED BY THE INTERESTED PARTIES CONSULTED It was considered useful to find out the views of the parties most directly affected by the future of the programme. Various consultations were held to this end: The Ministries responsible for higher education in the partner countries with which no association agreement has been concluded would like to see Tempus maintained in a broadly similar form, offering a variety of measures which help to reform the university system. The authorities of the partner countries which have signed association agreements are aware of the new opportunities they have to take part in Community programmes such as Leonardo, Youth for Europe or, more specifically for higher education, Socrates. Nevertheless, they would like their universities to continue to be able to benefit from the Tempus programme for a transitional period. Certain strands of Tempus - those involving assistance in the reform of higher education, the improvement of the management of universities and/or the development of new functions for them, or the establishment of specialised forms of training corresponding to the needs of European integration - appear to correspond to the current needs of the countries in which higher education is faced with the double challenge of numbers and quality, against a background of tight funding. The Commission has also communicated its working hypotheses to the members of the Tempus Committee, who, at their level of responsibility, consider them to be realistic and appropriate. Most of the education authorities of the Member States do not consider the idea of maintaining a refocused programme for a period of two years to be incompatible with the entry of several associated countries into the Socrates programme. This wish to see the programme maintained in the Phare countries with several specific, but essential, themes was also expressed by the national officials of the Tempus bureaux, who met in three regional seminars at the end of 1994. They 7 For which no mobility or support grants will be provided to students for practical placements. 11 endeavoured, together with the Commission's representatives, to translate this new approach into practical proposals for the operation of the programme. The Commission has also collected the views of a panel of top academics from the European Community and the partner countries, who confirmed that this was the right approach. Vm. JUSTIFICATION OF THE CHOICE OF LEGAL BASIS, SHOWING THAT IT IS ADAPTED TO THE OBJECTIVES PURSUED AND TO THE STATE OF LEGISLATION As the Tempus programme forms part of the assistance provided to countries which are not members of the European Community, the legal basis chosen is Article 235, since the Treaty does not include another Article which is appropriate in this specific case. K. CONDITIONS FOR THE EFFECTIVE APPLICATION OF THE MEASURES The actual implementation of the measures described in the annex to the Council Decision shows a high level of cost effectiveness according to the external evaluation (see point VI. above). As in the past, the Commission will ensure permanent monitoring of the implementation of the activities of the Tempus programme. This follow-up will be based on the regular reports submitted by the project managers, and on financial control, monitoring and evaluation by on-the-spot checks. The Commission will organise the necessary technical assistance. The draft decision also proposes an evaluation of the Tempus programme at the end of the second phase (Tempus II) and the presentation of an interim report to the Council by 30 April 1998. 12 PROPOSAL FOR A COUNCIL DECISION AMENDING DECISION 93/246/EEC OF 29 APRIL 1993 ADOPTING THE SECOND PHASE OF THE TRANS-EUROPEAN COOPERATION SCHEME FOR HIGHER EDUCATION (TEMPUS II) (1994 TO 1998) THE COUNCIL FO THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 235 thereof, Having regard to the proposal from the Commission1, Having regard to the opinion of the European Parliament2, Having regard to the opinion of the Economic and Social Committee3, Having regard to the opinion of the Committee of the Regions4, 1 2 3 4 Whereas on 18 December 1989 (EEC) No 3906/89 on economic aid to the Republic of Hungary and the Polish People's Republic5, which provides for aid to support the process of economic and social reform in central and eastern European countries in areas including training; the Council adopted Regulation Whereas on 19 July 1993 the Council adopted Regulation (EEC, Euratom) No 2053/93 concerning the provision of technical assistance to economic reform and recovery in the independent States of the former Soviet Union and Mongolia6; Whereas on 29 April 1993 the Council adopted the Decision adopting the second phase of the trans-European cooperation scheme for higher education (Tempus II) for a period of four years from 1 July 19947; Whereas the countries of Central and Eastern Europe and of the former Soviet Union, which are beneficiaries of the Phare and Tacis programmes, consider training and, in particular, higher education, to be one of the key areas for the process of economic and social reform; OJ No C. OJ No C. OJ No C. OJ No C. OJ No L 375, 23. 12. 1989, p. 11. Regulation last amended by Regulation (EEC) No 1366/95 (OJ No 133, 17. 6. 1995, p. 1). OJNo L 187, 29. 7. 1993, p. 1. OJNoL 112, 6. 5. 1993, p. 34. i3 5 6 7 8 9 Whereas the European Community has concluded association agreements with six countries of Central Europe8 and has signed such agreements with three others9; Whereas the Essen European Council (December 1994) established a "pre- accession" strategy for these associated countries, involving, notably, access to Community programmes, especially in the area of education and training10; Whereas Tempus can still make an effective contribution to the structural development of higher education required to improve occupational skills adapted to economic reform, with a view to their incorporation into the internal market of the European Union; whereas there is no other instrument for achieving this objective; Whereas the associated countries of Central Europe are required to define a particular strategy and their specific needs in connection with Tempus, with particular regard to the new possibility of participation in the Socrates and Leonardo programmes; Whereas the European Community has signed partnership agreements with Belarus, Kazakhstan, Kyrgyzstan, Moldova, the Russian Federation and Ukraine11 and that it is currently negotiating agreements with other independent States of the former Soviet Union; 10 Whereas the recent establishment of Tempus in the countries which are recipients of Tacis assistance, whose needs are greater and whose area is more extensive, fully warrants the continuation of the existing measures; 11 Whereas a funding plan has been drawn up for the Phare and Tacis programmes up to 31 December 199912; 12 Whereas Article 11 of the Council Decision of 29 April 1993 (93/246/EEC) stipulates that the Commission will evaluate the implementation of the Tempus programme and will submit, before 30 April 1996, a proposal for the continuation or adaptation of the programme for the period beginning 1 July 1998; 13 Whereas the results of this evaluation confirmed the decision to adopt and further diversify the forms of assistance in line with national needs and the priorities of the systems of higher education; Poland, Hungary, the Czech Republic, the Slovak Republic, Romania and Bulgaria Estonia, Latvia and Lithuania O J No OJ No 4W 14 Whereas this evaluation has shown the ability of Tempus to make an effective contribution in the partner countries to the diversification of educational opportunities and to cooperation between universities, thereby creating the right conditions for the development of scientific, cultural and economic cooperation; 15 Whereas the results of the evaluation, as set out above, are confirmed by the assessment of the programme by the competent authorities of the countries of Central and Eastern Europe and of the Republics of the former Soviet Union, and by the opinions expressed by the users of the programme and the facilities responsible for its organisation in the partner countries and in the European Union, and by the qualified experts and representatives reflecting the views of the university community in Europe; 16 Whereas there exist in the European Community and in third countries regional and/or national, public and/or private facilities which can be called upon to assist in the effective provision of financial support in the area of training at higher- education level; 17 Whereas the Treaty does not provide, for the action concerned, powers other than those of Article 235, and the conditions for the use of that Article have been satisfied, HAS DECIDED AS FOLLOWS: -u Article 1 Article 1 of Decision 93/246/EEC is hereby replaced by the following: "Duration of Tempus II The second phase of the trans-European cooperation scheme for university studies (hereinafter referred to as "Tempus II") is hereby adopted for a period of six years as of 1 July 1994. " Article 2 The text of the Annex referred to in Article 6 of Decision 93/246/EEC is hereby replaced by the text annexed to this Decision. Article 3 The last two paragraphs of Article 11 of Decision 93/246/EEC are hereby amended as follows: "Monitoring and evaluation arrangements - Reports The Commission shall submit an interim report, including the results of the evaluation, before 30 April 1998. If appropriate, this report shall be accompanied by a proposal for the continuation or adaptation of Tempus for the period beginning 1 July 2000 for the partoer countries which do not yet have the possibility of taking part in the higher education activities of the Community programmes of education and training (Socrates - Leonardo). The Commission shall present a final report by 30 June 2004 at the latest. " For the Council The President % ANNEX TO THE COUNCIL DECISION THIS TEXT REPLACES THE TEXT PUBLISHED AFTER THE TEMPUS II DECISION EM OFFICIAL JOURNAL L 112/93 Joint European projects The European Community will provide support for joint European projects of a 1. maximum duration of three years. Joint European projects will comprise at least one university from a partner country, one university from a Member State and one partner institution (university or enterprise) from another Member State. 2 Joint European project grants may be awarded for activities according to the specific needs of the institutions concerned and according to the priorities laid down, including: i) ii) iii) iv) joint education and training measures, notably for the establishment of new curricula, the development and overhaul of existing curricula, the development of universities' capacities to provide continuing education and retraining, the provision of short intensive courses, and the development of systems of distance learning; measures for the reform and development of the higher education system and its capacities, notably by means of the restructuring of the management of higher education institutions and systems, the upgrading of existing facilities by the acquisition of the equipment needed to implement a joint European project and, where appropriate, the provision of technical and financial assistance to the competent authorities; the promotion of cooperation between universities and the socio-economic players, including industry, through joint projects; the development of the mobility of teachers, university administrative staff and students within the framework of joint European projects. a) b) grants will be awarded to teaching/administrative staff from universities or to instructors from enterprises, in the Member States, to carry out teaching/training assignments for periods lasting from one week to one year m partner countries and vice versa; grants will be awarded to teaching/administrative staff of universities in the partner countries to undertake retraining and updating training in the European Community; ^ c) d) e) grants will be awarded to students, up to and including at doctoral level, and will be available both to students from the partner countries carrying out periods of study in the European Community and to students from the European Community spending study periods in the partner countries. These grants will normally be awarded for a period of between three months and one year1; for students participating in joint European projects, whose specific aim is to foster mobility, priority will be given to students participating in projects in which the period of study abroad will be granted full recognition by the student's home university1; support will be provided for industrial or practical placements, of between one month and one year, to teachers, instructors, students and graduates of the partner countries between the end of these studies and their first employment, so that they can undertake a period of practical training in enterprises in the European Community and vice versa1. v) activities to ensure the success of a joint European project involving two or more partner countries. Structural and/or complementary measures Grants will be awarded for a number of structural and/or complementary measures (including technical assistance, seminars, studies, publications, information activities). These measures are designed to support the objectives of the programme, notably to contribute to the development and restructuring of the higher education systems in the partner countries. In connection with these structural measures, grants will be awarded, in order to, among other things. • • • to develop and strengthen the capacities for strategic planning and institutional development of institutes of higher education at university or faculty level; support the multiplication of cooperation measures designed to achieve the objectives of Tempus and to ensure its duration; draw up a national strategy in a particular partner country for the development of a specific aspect of higher education. No mobility or support grants will be awarded for practical placements to students from the associated countries of Central Europe which are eligible for these activities under the Community programmes of education and training (Socrates, Leonardo). 1g Individual grants In addition to joint European projects and structural and/or complementary measures, the European Community will also support the provision of individual grants to teachers, instructors, university administrators, senior Ministry officials, education planners and other training experts from partner countries or the European Community for visits designed to promote the quality, development and restructuring of higher education and training in the partner countries. These visits will cover the following areas in particular: • • • the development of courses and teaching material, the development of staff, notably by periods of retraining and industrial placements, teaching assignments, activities for supporting the development of higher education. Support activities 1 The Commission will receive the necessary technical assistance to underpin the activities carried out in accordance with the Decision and to ensure the necessary monitoring of the implementation of the programme. 2 Support will be provided for appropriate external evaluation of Tempus II. 19 FINANCIAL STATEMENT 1. TITLE OF OPERATION Proposal for the extension of the trans-European cooperation scheme for higher education (Tempus II - Council Decision 93/246/EEC of 29 April 1993) for a period of two years (1998 to 2000) 2. BUDGET HEADINGS INVOLVED The budget headings involved are: a) b) for the countries of Central and Eastern Europe Article B7-500: "Aid for economic restructuring of the countries of central and eastern Europe" for the Republics of the former Soviet Union Article B7-520 'Technical cooperation with the Independent States of the former Soviet Union" 3. LEGAL BASIS A. Article 235 of the Treaty of Rome establishing the European Community a)- b)- Council Regulation (EEC) No 3906/89 of 18 December 1989 on economic aid to the Republic of Hungary and the Polish People's Republic; Council Regulation (EEC) No 2698/90 of 17 September 1990 amending Regulation (EEC) No 3906/89 in order to extend economic aid to other countries of Central and Eastern Europe (Bulgaria, the German Democratic Republic, Romania, Czechoslovakia, Yugoslavia); Council Regulation (EEC) No 3800/91 amending Regulation (EEC) No 3906/89 in order to extend economic aid to include other countries in central and eastern Europe (Albania, Estonia, Latvia and Lithuania); Council Regulation (EEC) No 1366/95 of 12 June 1995 amending Regulation (EEC) No 3906/89 in order to extend economic aid to Croatia; Council Regulation (EEC) No. of. amending Regulation (EEC) No 3906/89 in order to extend economic aid to Bosnia Herzegovina; Council Regulation (EEC, Euratom) No 2053/93 of 19 July 1993 concerning the provision of technical assistance to economic reform and recovery in the independent States of the former Soviet Union and Mongolia; y-\ c)- Council Regulation (EEC, Euratom) No. of. concerning the provision of assistance for economic reform and recovery in the new independent States and Mongolia; the Council Decision of 7 May 1990 (90/233/EEC) establishing a trans- European mobility scheme for university studies (Tempus); the Council Decision of 28 April 1992 (92/240/EEC) amending the Decision of 7 May 1990; the Council Decision of 29 April 1993 (93/246/EEC) adopting the second phase of the trans-European cooperation scheme for higher education (Tempus II) (1994 to 1998); proposal amending Council Decision 93/246/EEC of 29 April 1993 adopting the second phase of the trans-European cooperation scheme for higher education (Tempus II) (1994 to 1998) so as to extend it for a period of two years. 4. DESCRIPTION OF OPERATION 4. 1. General objectives The objectives of Tempus II are to promote, within the framework of the broad lines and general objectives of the Phare and Tacis programmes for economic and social reform, the development of the systems of higher education in the partner countries by cooperation, which is as balanced as possible, with the partners of all the Member States of the European Union. More specifically, Tempus II is designed to assist the systems of higher education of the partner countries to tackle: a) b) c) the issues concerning the development and overhaul of curricula in priority areas; the reform of the structures and establishments of higher education, and of their management; the development of skills training in order to make up for the lack of skills at higher-education level which are adapted to periods of economic reform, in particular by improving and increasing links with industry. The Commission establishes, in agreement with the competent authorities of each partner country, detailed priorities and objectives for the role of Tempus II in the national strategy of economic and social reform, on the basis of the objectives of the programme and the provisions of the Annex, and in accordance, notably, with: a) the general objectives of the Phare programme; 2-1 the general objectives of the Tacis programme, with particular reference to its sectoral aspects; the policy of each partner country on economic and social reform and education; the need to find the right balance between the priority areas chosen and the resources allocated to Tempus II; the involvement of the associated countries of Central Europe in the Socrates and Leonardo programmes. b) c) d) 4. 2. Period covered The 1998/99 and 1999/2000 academic years. 4. 3. Target population Teachers, instructors, university administrators and students in higher education (approximately 10 million people). 4. 4. Intermediary body The European Training Foundation the Commission with technical assistance in the implementation of the Tempus programme. in Turin, which provides 5. CLASSIFICATION OF EXPENDITURE - - Non-compulsory expenditure Differentiated appropriations 6. TYPE OF EXPENDITURE 100% subsidy: in accordance with the particular nature of the programme (economic assistance to the partner countries of Central and Eastern Europe and to the independent States of the former Soviet Union). 7. FINANCIAL IMPACT 7. 1. Method of calculating total cost of operation As Tempus is funded out of the overall budget allocated to each partner country by Phare, it is the partner countries which decide how this total Z*> amount is to be distributed between the various measures they plan to take under Phare. The proportion allocated to the restructuring of higher education through the Tempus programme represents, for most of the beneficiary countries, between 10 and 15% of the total assistance provided by Phare. As an indication. in 1995, the Tempus/Phare budget was ECU 98. 1 million in 1996, the budget should be approximately ECU 83 million; in 1995, the Tempus/Tacis budget was ECU 22. 79 million in 1996, the budget could be ECU 45 million. 7. 2. Aspects of the measure The financial assistance available under Tempus can be divided into three major categories: The joint European projects (JEPs): Financial assistance is granted for the development of joint European projects (JEPs) linking universities and/or enterprises of the countries of Central and Eastern Europe with partners in the European Union. The JEPs must include as least one university from a country of Central and Eastern Europe and partners in at least two Member States of the European Union, one of which must be a university. Assistance can be granted for a wide range of activities, including for: i) ii) joint education and training measures, notably for the establishment of new curricula, the development and overhaul of existing curricula, the development of universities' capacities to provide continuing education and retraining, the provision of short intensive courses, and the development of systems of distance learning; measures for the reform and development of the higher education system and is capacities, notably by means of the restructuring of the management of higher education institutions and systems, the upgrading of existing facilities by the acquisition of the equipment needed to implement a joint European project and, where appropriate, the provision of technical and financial assistance to the competent authorities; iii) the promotion of cooperation between universities and the socio economic players, including industry, through joint projects; l§ iv) v) the development of teachers, university the mobility of administrative staff and students within the framework of joint European projects1; activities to ensure the success of a joint European project involving two or more partner countries. The financial assistance granted is provided in the form of an institutional grant to the consortium of organisations. The average level of assistance allocated is ECU 450 000 per project for a duration of three years. Structural and/or complementary measures Grants may be awarded for a number of structural and/or complementary measures (including technical assistance, seminars and studies). These measures are designed to support the overall objective of the programme, which is to contribute to the development and restructuring of the higher education systems in the partner countries. Individual grants In addition to joint European projects, the European Union also supports the provision of individual grants to teachers, instructors, university administrators, senior Ministry officials, education planners and other training experts from partner countries or the European Union for visits designed to promote the quality, development and restructuring of higher education in the partner countries. 7. 3. Indicative breakdown of costs by aspects of the action The costs of the joint European projects (which account for approximately 92% of the total budget allocated to Tempus actions) are divided up into two categories: a) Expenditure for the structural actions accounts for 47% of the total cost, on average. This covers: staff costs for project administration and development (the ceiling is fixed at 50% of the total amount of action 1, to the amount of ECU 50 000 per year); equipment for the countries of Central and Eastern Europe; No mobility or support grants will be awarded for practical placements to students from the associated countries of Central Europe which are eligible for these activities under the Community programmes of education and training (Socrates, Leonardo). Zxi miscellaneous expenses: missions, translations, publications, intensive courses, etc. ; overheads (a ceiling of 10% of the total). b) Mobility grants for teachers and students. On average, these grants account for 53% of the total costs. Approximately 85% of this amount is provided to beneficiaries from the Eastern European countries for periods of study or training in the Member States of the European Union. 7. 4. Indicative schedule of appropriations Year 1 (6) Year 1 (12) Year 2 (6) Year 2 (12) Year 3 (6) Year 3 (12) 22% 33% 55% 67% 89% 100% 100% 100% National budgets Technical assistance PLANNED FRAUD PREVENTION MEASURES Financial monitoring: by the Commission's departments, in order to check that expenditure has been incurred in accordance with the rules and that the budget has been implemented. Scientific and technical monitoring: by the responsible departments of the Commission with the opinion of the Tempus management committee established by the Council Decision. ELEMENTS OF COST-EFFECTIVENESS ANALYSLS 9. 1. Specific objectives The financial assistance granted under the programme is broken down into three main categories (see also point 7. 2): Joint European projects: Joint measures for teaching and training, support for staff and student mobility and development of the universities' capacities to conduct cooperation measures linking universities and/or enterprises zs of the beneficiary countries to equivalent partners in the Member States of the European Union. Structural measures Seminars, studies, technical assistance and grants in order to strengthen the capacities for: strategic planning and * institutional development of institutes of higher education * at university or faculty level. Individual grants Support for the individual mobility of teachers, instructors, university administrators and other training experts. These visits can cover the following areas: * * the development of courses and teaching material, the development of staff, notably by periods of retraining and industrial placements, teaching assignments, activities education. the development of higher for supporting * * Assistance to European associations for publications and other information activities, as well as surveys, analyses and monitoring. 9. 2. Grounds for the operation The programme is based on the concept of the provision of external assistance to the universities of the beneficiary countries by means of cooperation with suitable partner institutions in the European Union and beyond (G-24). An intrinsic feature of this approach is that it establishes a parallel financial commitment on the part of the participating universities of the European Union, which would not be the case if the Tempus funds were directly invested in the beneficiary countries. In addition, the universities of the European Union provide all the contacts, experience and equipment needed to develop the teaching capacities of the universities in the beneficiary countries in accordance with their own respective academic plans. Following a long period of separation from university life in the West, this cooperation programme designed to transform higher education is greatly prized by the beneficiary countries. They would be unable to finance such transformation measures themselves during the period covered by the programme. 2G There is also a need to ensure the necessary transition to the incorporation of the countries of Central Europe into the Socrates and Leonardo Community education programmes. 9. 2. 1. Cost of the measure a) National projects The amount of funding allocated to Tempus - from Phare for the countries of Central and Eastern Europe, and from Tacis for the countries of the former Soviet Union - will be established every year by the beneficiary countries themselves. As far as the Tempus/Phare programme is concerned, the overall amount is expected to fall every year in comparison with the current budget. This is because the measures taken by the Tempus programme in this new period will be concentrated exclusively in the sectors which still require structural change. The mobility measures will be covered by Socrates in all the countries which have access to this programme. As far as the Tempus/Tacis programme is concerned, the budget will be established in accordance with the wishes of the various States of the former Soviet Union and in accordance with the amount of funding available in the Tacis budget as a whole. b) Technical assistance to the Commission The task of providing technical assistance to the Commission is given to the European Training Foundation in Turin. The budget allocated to the Foundation will have to cover all the operational activities connected to the implementation of the Tempus programme (expenses to cover publications, missions, the organisation of meetings, seminars, talks, etc. ) and will be covered by a specific agreement between the Commission and the European Training Foundation. 9. 2. 2. Spin-offs (the impact of the programme over and above its specific objectives) is essentially a measure The Tempus programme the development of university education. However, the programme produces considerable spin-offs in other areas of university activity. Not only does research derive considerable benefit from Tempus, but there is also an impact on the development of new education structures and new systems of academic qualifications and recognition of qualifications. to support n The evaluation of the programme has also shown that it has considerable benefits for the institutions concerned in the Member States, in particular for the modernisation of their own curricula. The great improvement in mutual understanding between the partner countries and the Union constitutes a sound basis for new contacts and opportunities for cooperation, in particular in economic terms. 9. 2. 3. Multiplier effects (capacity to mobilise other sources of funding) The Tempus budget can cover 100% of the cost of the projects involved. However, several factors have already helped to provide other sources of funding for the joint European projects, in particular: - the fact that universities in the European Union do not, in many cases, apply for reimbursement of infrastructure costs or, in some cases, for reimbursement of all their staff costs; the high level of rejection caused by the lack of adequate funding has prompted universities to propose joint funding, which, in the view of DG XXII, shows a high level of commitment on the part of the institutions involved; the involvement of G-24 countries which are not members of the European Union automatically creates new sources of funding, as these countries meet 100% of the costs resulting from their participation. 9. 3. Monitoring and evaluation of the operation 9. 3. 1. Performance indicators selected The performance indicators used for evaluation are the parameters used to define each Joint European project (JEP). In addition, specific indicators are added in order to take account of the wide variety of conditions in which the JEPs are implemented in each partner country. 9. 3. 2. Details and frequency of planned evaluations An evaluation report for Tempus I (1990-1994) and an interim report for Tempus II (1994-1995) will be presented to the institutions of the European Union very shortly. Moreover, the monitoring of the programme is a wide-ranging ongoing process comprising contractual reporting by contractors, visits to specific places by the Commission, and a number of talks and seminars dealing with particular aspects of the implementation of the Tempus programme. £? ISSN 0254-1475 COM(96) 198 final DOCUMENTS EN 16 H Catalogue number : CB-CO-96-207-EN-C ISBN 92-78-03560-2 Office for Official Publications of the European Communities L-2985 Luxembourg ^9

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT - SIMPLER LEGISLATION FOR THE INTERNAL MARRET (SLIM): A PILOT PROJECT

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COMMISSION OF THE EUROPEAN COMMUNITIES ir •it -it * Brussels, 08 05. 1996 C()IVK%) 204 final COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT SIMPLER LEGISLATION FOR THE INTERNAL MARKET (SLIM): A PILOT PROJECT 1. There is a growing political consensus within the Union in favour of the simplification of legislation: over-complicated regulation carries a high economic cost, endangering the competitiveness of industry and its employment-creating potential. Divergent national regulations and inadequate Community measures could damage the functioning o\' the Internal Market. All regulation - whether at justified and proportionate to its Community or national level - must be fully objectives. This applies both to new legislative initiatives and to existing legislation, which should be monitored to ensure that it continues to be appropriate in changing economic, social and technological circumstances. The Commission has, in recent years, undertaken several initiatives with regard to the simplification of legislation. For instance, it submitted to the European Council of Brussels in December 1993 a substantial adjustment programme of existing legislation and has implemented the vast majority of actions put forward in this programme. The Commission has also reported to the European Council at its end-of-year meetings, most recently to the Madrid European Council in the report "Better Law-Making". Examples of simplification initiatives are given in Annex 1. 2. While much progress has already been made, no effort can be spared to streamline the Community legislative framework for economic activity in the Union, whilst at the same time safeguarding the essential elements of the acquis communautaire and ensuring a high level of health and safety and protection of the environment and of consumers. The Commission's earlier initiatives provide an excellent basis on which to build a new, targeted approach to reviewing and simplifying legislation, in partnership with the Member States and with those affected by the legislation. The Commission has responded to the consensus among Internal Market Ministers at their informal meeting in Rome on 24 February 1996 in favour of launching a "pilot scheme" to assess how best to reduce the burden on business of single market rules in particular sectors. The exercise will provide a test-bed for more wide-ranging action. As the Molitor Group (which itself included several business representatives) emphasised, the business community must be at the forefront of the drive for simplification and should be consulted by the Commission. 3. To meet this call for action, the Commission proposes to follow these "guiding principles", which are fully in line with the views expressed at the Rome meeting : 1 : simplification should be targeted on a few sectors in order to demonstrate rapid and concrete progress; 2: business and other interested parties should be contribute directly to the exercise; 3: a progress report should be ready for consideration by the Council at the end of 1996. A PRACTICAL WAY FORWARD Objectives of the pilot project 4. This Communication describes the pilot project phase of this initiative. It aims at making, by November 1996. concrete suggestions about ways in which legislation in four areas could be simplified. This would include not only Community legislation as such but also any unharmonised national legislation affecting the sector concerned. 3 The degree of progress achieved in relation to these areas of legislation within the time available will be used as a basis for evaluating the success or failure of the working method outlined in this Communication. The Commission's intention is that the approach should be extended more widely when it has been successfully tested. Sectors to be examined in the pilot project 5. The Commission has selected four sectors for a pilot project on simplification. Certain areas proposed at the informal meeting of Internal Market Ministers in Rome on 24 February have not been included because they are subject to imminent Commission proposals: foodstuffs: As indicated in the comments of the Commission on the report of the Molitor Group'', the Commission is working on a general reappraisal of the whole area of food law with a view to the presentation of a Green Paper which will cover, inter alia, the coherence of Community legislation and the scope for simplification and rationalisation of the legislation. The Commission has already adopted, on 17 April 1996, proposals for seven vertical Directives to simplify legislation on certain foodstuffs and consultation of interested groups on the simplification of veterinary legislation is under way; Machines: The Commission also indicated its work programme for this sector in its comments on the Molitor report: it will first propose a codification of the Machinery Directive in preparation for its revision. In parallel, it is working on appropriate amendments to be proposed at the end of 1997; Public Procurement: The Commission is preparing a Green Paper on the present and future operation of public procurement rules. The Commission considers that inclusion of these exercises, which are already well advanced, in the SLIM pilot project would duplicate work already undertaken and would not further speed up simplification in these areas. It has therefore considered how to add to the existing initiatives by focusing on other areas known to be of concern to business or other interested parties. The four sectors selected by the Commission are: Intrastat, the system for collecting statistics on intra-Community trade; Technical regulations on construction products; Legislation relating to the mutual recognition of diplomas. Legislation relating to ornamental plants. The pilot project will thus cover one area relevant to business as a whole, one relating to agricultural and one to industrial legislation, and an area of legislation which is of direct interest to individual citizens. 'Comments of the Commission on the Report of the Independent Experts Group on Legislative and Administrative Simplification (SEC(95) 2121 final, 29. 11. 1995) Annex 2 outlines the aspects of legislation in each area which should be the object oi' particular attention. Methodology (i) Outline 6. The work will be carried out by four small teams, each devoted to the examination of one of the chosen areas. These "SLIM" teams (Simpler Legislation for the Internal Market), will bring together the Commission and the representatives of a few Member States and of the users of the legislation, such as business (producers and traders, including SMLs) and , where appropriate, consumers. The task of each SLIM team is to contribute to the preparation of the report to the Council, in time for the November meeting of the Internal Market Council, which will: • • • • summarise the need for simplification, including the identification of any national legislation which poses problems for users; outline proposals considered by the SLIM teams and their likely effects in terms of meeting the objectives of the legislation while at the same time reducing costs for business and improving the effectiveness of implementation; if appropriate, propose further detailed action; report on progress being made on codification and simplification; and related methods of • evaluate the effectiveness of the approach adopted in the pilot project. (ii) Appointment of members of SLIM teams 7. Each team will be chaired by a personally nominated Commission representative, with a strictly limited membership in equal proportion of representatives from Member State administrations and users of the legislation. Commission officials from interested departments will also attend as observers. Member State representation: In the interests of facilitating an efficient working atmosphere and rapid progress, the Commission will keep the teams small. This will be impossible to achieve if all Member States are to be represented on each team. The Commission therefore envisages limiting Member State representation to about 4 persons in each team. It will therefore invite Member States to indicate the teams in which they are interested in participating in order of preference. They will then be invited to participate in one team. The Commission will invite Member States to make their views known to the teams in which they are not represented. There will also be regular reports to all Member States through the sectoral committees (see iii below) and the Internal Market Advisory Committee. 5 representation: The number of user the User Commission will be the same as that oi' Member States. The Commission intends to approach European and, in some eases, national organisations representing user interests in order to identify user representatives. The appointment of business representatives will take account of the particular importance of simplification for SMEs. representatives appointed by (iii) Keeping Sectoral Committees informed 8. The relevant committee(s) responsible for Community legislation in each sector will be informed of the progress of the work of the relevant SLIM team. The committees concerned are as follows: Intrastat: Committee on the Statistics relating to the Trading of Goods between Member States; Statistical Programme Committee; Customs Code Committee - Tariff and Statistical Nomenclature Section. Construction products: Standing Committee for construction Committee 83/189 on technical rules Diplomas: Committee of Senior Officials responsible for public health; Ad-hoc Committees of senior officials responsible for veterinary surgeons and architects; Pharmaceutical Committee; the seven Advisory Committees on Education and Training attached to the seven sectoral Directives; the Coordinators' Group established by the general system Directives. Ornamental plants: Standing Committee for Propagating Material and Ornamental Plants CONCLUSION 9. The Commission invites the Council and the European Parliament to support the initiative outlined in the present Communication and to examine constructively the conclusions of the report on the outcome of the pilot project which the Commission will present in November 1996. 6 Annex 1 EXAMPLES OF SIMPLIFICATION WORK ALREADY COMPLETED OR JN PROGRESS OVERALL APPROACH For some time now, the Commission has been working to simplify Community legislation. In 1993 it presented a plan for streamlining existing legislation to the Brussels European Council and to the European Parliament; almost all the specific proposals based on that plan have now been adopted. The areas covered include: foodstuffs, the environment, taxation, mutual recognition of qualifications, competition and consumer protection. Simplification work will also be undertaken in fields not covered by the original plan. The issue of legislative and administrative simplification was also examined by a group of independent experts (the Molitor group) set up by the Commission, which presented an assessment of the group's initial proposals at the Cannes European Council in June 1995 and its comments on all the group's proposals in November 1995. In addition, the Commission has set up a Committee on Improving and Simplifying the Business Environment which, with Member States and business organisations, examines how to simplify administrative procedures based on Community or national legislation which create barriers and excessive compliance costs, particularly for SMEs. Following a Forum in Paris in June 1995 and the establishment of working groups, Commission Recommendations to Member States on administrative simplification are likely. SPECIFIC CASES Simplification measures already presented: simplification of seven vertical Directives on foodstuffs; communication sent to the Council and to Parliament regarding Community policy on water; among other things, it envisages the presentation, during 1996, of a proposal for a framework Directive to replace all the existing Directives on water supplies; mutual recognition of qualifications: a Directive covering commerce and craft occupations, Community legislation on the rational use of energy and on petroleum products Simplification measures currently being prepared Green Paper on foodstuffs law; proposals for Directives on medicinal products for (i) veterinary use and (ii) human use; simplification exercise with regard to veterinary hygiene; 7 proposal for simplifying the Community rules on plant health, together with supplementary plant-health measures in view of the single market (procedures and resources for imports from third countries). Aspects of the legislation requiring particular attention with a view to simplification Annex 2 INTRASTAT The INTRASTAT system is governed by a basic Council Regulation (EEC) No 3330/91 and by various Commission Regulations (in particular Regulation (EEC) No 3046/92 laying down implementing provisions). Operational since 1993, INTRASTAT is still not producing results of sufficiently high quality as regards either overall trade or detailed data on specific goods, and the system is taking too long to compile statistics. Despite the numerous simplification measures taken, businesses (and particularly SMEs) providing data still regard the system as imposing an excessive burden. A survey conducted in February 1996 among the suppliers and users of INTRASTAT data, together with the seminar on the system held in Luxembourg on 13 and 14 March, confirmed that this was still the case and enabled various possible means of improvement and simplification to be identified. There was broad agreement on the need to continue the EDICOM measures undertaken to modernize and automate data collection and processing - particularly by making greater use of EDI, an indispensable means of making input easier and ensuring that the resulting statistics are more reliable and more up-to-date. The other measure advocated by a majority of firms and most suited to bringing about a significant improvement is simplifying the nomenclature for the classification of goods. The SLIM team should advise whether, as requirements for intra-Community trade data change in the run-up to monetary union, more fundamental alterations should be made to INTRASTAT such that, for example, a given Member State would have to record only one trade flow and could calculate the remainder from the corresponding data supplied by the other Member States. Since the differing needs of those supplying and those using the data (which were clearly brought out during the various consultations) make such radical changes difficult to implement, the basis for doing so has to be an unambiguous political resolve on the part of all Member States. The other measures envisaged are less wide-ranging, being designed instead to consolidate and improve current procedures. Such measures, which include reducing the number of variables required, bringing INTRASTAT response times into line with those for taxation, raising the thresholds and shortening the intervals, are being examined on a case-by-case basis and assessed in terms of how much they would improve quality and reduce the administrative burden. The assessment of the Member States' national systems carried out at the end oi" 1995 resulted in a number of specific proposals for improving INTRASTAT (particularly as regards the procedures for aligning data, processing and monitoring, and harmonizing legal procedures and provisions), once these proposals have been examined, current legislation could be amended accordingly. Construction products The SLIM team should review the operation of the construction products Directive adopted in 1988. This Directive is the instrument for assuring a single market for all construction products. It relies on the adoption of European technical specifications - in particular standards - which are a compulsory element to be taken into account for assessing the conformity of products and permitting CE marking. The Directive will only be effective once harmonised standards are adopted To date, none have been adopted. This situation arises from the fact that firstly, the Directive requires many decisions to be taken and other preparatory work to be done before standards can be adopted and, secondly, that there is no alternative basis for CE marking but conformity to these standards. In the framework of the debate on the report on the operation of the Directive in 1995, all parties acknowledged that commitments must be made to speeding up the operation of the Directive. In parallel, parties agreed to continue to deliberate on the functioning of the internal market in this sector. The SLIM team's contribution is therefore required on the improvement needed in the functioning of the internal market as well as on implementation of the Directive This reflection might, inter alia, tackle the long delays needed for CE marking of construction products and the increase in national measures taken by Member States in the meantime which disrupt the internal market. Mutual recognition of diplomas The SLIM team should review the structure and operation of the seven sectoral Directives governing doctors, nurses responsible for general care, veterinary surgeons, dental practitioners, midwives, architects and pharmacists, adopted between 1975 and 1985. With the exception of the Directive governing architects, these Directives lay down minimum common standards of education and training for the profession concerned and 10 contain lists of national diplomas which meet these common standards and as a consequence benefit from automatic mutual recognition For architects, the Directive lays down certain criteria which must be met in order for a diploma to benefit from mutual recognition; however, Member States may continue to award diplomas in the field of architecture which do not meet these criteria and, as a result, fall outside the scope of the recognition provided for in the Directive The sectoral approach, which creates a certain European profile for education and training, obliged many Member States to amend national legislation governing access to the professions concerned and in some cases (for example, dentists in Italy and Austria) it required the creation of a profession which had not previously existed. The sectoral Directives may also impede reform at national level, when the changes envisaged would render national rules incompatible with the relevant Directive. This was one of the reasons which led the Community to adopt a new approach to recognition of diplomas - the general system - which leaves to Member States the decisions as to the appropriate level and structure of education and training and the need for regulation. However, the general system, unlike the sectoral Directives, does not offer the migrant a guarantee of automatic recognition. In addition, the need to keep the agreed common rules on education and training under review resulted in the creation, for each sectoral Directive, of an Advisory Committee. These committees, which are currently composed of 45 members, place a considerable administrative burden on the Commission. They issue recommendations and opinions addressed to the Member States and also advise the Commission as to whether amendments to the Directives are necessary; in practice, few of their recommendations for changes to the Directives have met with the approval of the Member States. Ornamental plants The SLIM team should review the transparency and the operation of the ornamental plants Directive adopted in 1991 with a view to the single market. This Directive has harmonised different measures, established at national or regional levels, to set out minimum quality standards and conditions at Community level with supporting accreditation procedures and documentary evidence, and to ensure the free marketing of propagating material of ornamental plants complying with such standards and conditions Due to its hurried adoption at the end of 1991, there are various inconsistencies in the text which have given rise to problems of interpretation for Member States when transposing and implementing the legislation In an attempt to overcome these problems, the Commission issued an Interpretative Note to Member States in 1992 on those provisions which had caused most difficulty However, this was not sufficient to ensure rapid and uniform implementation by Member States In addition, one Member State wrote to the Commission asking it to review the Directive in certain areas in particular the scope, the exceptions for the local market, the exceptions for woody plants and the requirements relating to varieties. Finally, due to the difficulties outlined above, the Commission has not been able to develop further implementing measures required by the Directive. 11 The SLIM team's contribution is therefore required for an improvement of the Directive to permit speedy adoption by the Commission of the necessary implementing measures, as well as rapid and uniform implementation by Member States. Financial Statement 1. TITLE OF OPERATION Simpler Legislation for the Internal Market (SLIM) Pilot Project (to be implemented by the establishment of four working groups to be known as "SLIM Teams"). 2. BUDGET HEADING CONCERNED A 250: Meetings and convocations 3. LEGAL BASIS Articles 3c, 7 A, 48-66, 100 A of the Treaty 4. DESCRIPTION OF THE OPERATION : 4. 1 Objectives in which legislation The Pilot Project aims at making, by November 1996, concrete suggestions about ways in four areas could be simplified. These are INTRASTAT, construction products, mutual recognition of diplomas, and ornamental plants. The purpose of the competitiveness of business and its employment-creating potential by ensuring that over-complicated regulation at Community or national level does not impede its effective participation in the Single Market and to improve the effectiveness of the legislation on the mutual recognition of diplomas. this simplification improve to is 4. 2 Duration The SLIM teams will be appointed in June 1996 and will be required to contribute to a report which will be submitted to Council and Parliament in November 1990. 5. CLASSIFICATION OF EXPENDITURE/REVENUE 5. 1 Non-compulsory expenditure 5. 2 Differentiated appropriations 5. 3 Nature of revenues: Not applicable 6. NATURE EXPENDITURE/REVENUE 6. 1 Nature of expenditure Meeting expenses for the 32 members of the SUM teams (8 per team): 5 one-day meetings per team in Brussels. 6. 2 Revenues The pilot project is financed 100% by the Community budget 7. FINANCIAL IMPACT ON THE OPERATIONAL APPROPRIATIONS None 8. ANTI-FRAUD MEASURES The verification of the expenses claimed for attendance at meetings will be undertaken by the Commission service providing the secretariat for the SLIM team in question (Eurostat DG III, DG VI or DG XV). 9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS 9. 1. Specific quantifiable objectives, target population - The pilot project aims at making, by November 1996, concrete suggestions about ways in which legislation in four areas could be simplified. This would include not only Community legislation as such but also any unharmonised national legislation affecting the sector concerned. The degree of progress achieved in relation to these areas of legislation within the time available will be used as a basis for evaluating the success or failure of the working method outlined in this Communication. - Target population : The pilot project is targeted on the needs of businesses and professional people for clear, simple and proportionate regulation that allows them to exercise their Single Market rights without unnecessary restrictions or excessive expense. Small and medium- sized enterprises are particularly affected by compliance costs. the Community throughout 9. 2. Grounds for the operation 9. 2. 1 Need for the budgetary intervention of the Community The pilot project is designed to improve the operation of the single market bv simplifying and improving some of the rules which govern it. The economic benefits to be expected from such simplification more than justify the intervention proposed. This action is to be seen in the light of the Commission's other activities with regard to the simplification and codification of legislation (see the report to the European Council of December 1995, "Better Law-Making"). 9. 2. 2 Choice of the method of intervention The choice of the "SLIM team" approach, which will bring together the Commission, a small number of Member States and representatives of those affected by the legislation in small working groups is dictated by the need to bring together the different perspectives oï those involved with enforcing the legislation and those affected by it. The teams are deliberately small in order to facilitate a genuine exchange of views which may be more difficult in larger and more formal groups and in to facilitate rapid progress. 9. 2. 3 Main factors of uncertainty which could affect the specific results of the operation Given that the exercise is a pilot project, there is inevitably a degree of uncertainty as to the possibility of achieving the expected results. The size of the groups, the choice of members, the sectors chosen and the deadline imposed are all factors that may influence the outcome. / )• 9. 3 Monitoring and evaluation of the operation 9. 3. 1 Performance indicators See 9. 3. 2 9. 3. 2 Methods and frequency of the evaluation foreseen Progress will be reported periodically to a Group of Commissioners, as decide by the Commission on 27 March 1996. Progress will also be reported to the Internal Market Advisory Committee and to the sectoral committees concerned Within the Commission, the services responsible for the different SLIM teams and other interested services concerned will meet to review progress and compare experiences in the operation of the pilot project. A report on the pilot project will be submitted to the Internal Market Council in November and the European Council will also be informed of the results obtained. 9. 3. 3 Assessment of the results obtained The results obtained will be the subject of a report to the Council, as mentioned above. This report will contain the suggestions of the SLIM teams for simplifying the legislation in question and an evaluation, based on the views of the teams themselves and the interested Commission services, of the value of the exercise. The report itself will be discussed with the Member States The key element in the evaluation of the pilot project will be the degree to which it has been possible to arrive at concrete proposals on simplification in the lour sectors. 9. 4 Coherence with financial programming The pilot project, which results largely from a discussion at the Informal Internal Market Council of 24 February' 1996, is not included in the financial planning of the services by which it will be cofinanced (DG XV. DG III, DG VI, Eurostat). 10. ADMINISTRATIVE EXPENDITURE (PART A OF THE BUDGET) The resources will be found within the overall envelope which the Commission attributed to the services responsible for each of the sectors concerned in its decision on the allocation of resources for 1996. i. e. , DG III (construction products). DG VI (ornamental plants), DG XV (diplomas). Statistical Office (Intrastat). 10. 1 Impact on the luimbers_ejnp_loyed None. 10. 2 Ovcra 11 fin a nc i a] i nipa et JlfAl ) C a d d i t ional human resources None. 10. 3 Increase in other administrative expenditure arising from the operation The total expenses for the 4 SLIM teams come to 120. 000 ecus. All expenses relate to A 250 - Meetings and convocations. They will be shared by the four responsible services indicated above, each service covering the expenses of the SLIM Team for its area of responsibility. The cost has been estimated as follows: 4 SLIM Teams x 5 one-day meetings = 20 meetings 20x4 government experts = 20x4x695ecus (average cost) = 55. 600 ecus 20x4 private experts = 20x4x804 ecus (average cost) = 64. 320 ecus TOTAL: 119. 920, say 120. 000 ecus ISSN 0254-1475 COM(96) 204 final DOCUMENTS EN 06 10 Catalogue number : CB-CO-96-222-EN-C ISBN 92-78-04011-8 Office for Official Publications of the European Communities L-2985 Luxembourg

REPORT FROM THE COMMISSION TO THE COUNCIL - EVALUATION OF TEMPUS ACHIEVEMENTS TO DATE AND VIEWS ON PARTNER COUNTRIES REMAINING NEEDS

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COMMISSION OF THE EUROPEAN COMMUNITIES if -k Brussels, 08. 05. 1996 COM(96) 197final REPORT FROM THE COMMISSION TO THE COUNCIL EVALUATION OF TEMPUS ACHIEVEMENTS TO DATE AND VIEWS ON PARTNER COUNTRIES' REMAINING NEEDS EVALUATION OF TEMPUS ACHIEVEMENTS TO DATE AND VIEWS ON PARTNER COUNTRIES' REMAINING NEEDS CONTENT INTRODUCTION L EVALUATION OF TEMPUS TO DATE 1. 2. 3. Evolution of the Programme TEMPUS impacts TEMPUS policy settings H. A FUTURE ROLE FOR TEMPUS 1. in the Phare associated countries A. B. C. TEMPUS and pre-accession - the Essen European Council - the relationship to Socrates Support for higher education policy initiatives The need to manage change and demonstrate accountability optimising university resources D. Maximising the utilisation of TEMPUS outputs 2. in the non-associated Phare countries 3. in the Tacis countries A. Key challenges for the future of higher education B. C. Strategic considerations Future orientations for TEMPUS Tacis IDL CONCLUDING REMARKS ©^ EVALUATION OF TEMPUS ACHIEVEMENTS TO DATE AND VIEWS ON PARTNER COUNTRIES' REMAINING NEEDS INTRODUCTION 1. In accordance with the Council Decision of 29 April 1993(OJ No LI 12/34, 6 May 1993) a second phase of the Trans-European cooperation scheme for higher education (Tempus H) was adopted for a period of four years as of 1 July 1994. Article 11 of this Decision requires the submission of an interim report, including the results of the evaluation, before 30 April 1906, as well as possibly a proposal for the continuation or adaptation of Tempus II for the period beginning 1 July 1998. 2. This interim report therefore aims to give information as to the achievements of TEMPUS to date and examines the case for a possible further phase of Tempus beyond the end of Tempus II in the light of the impact which Tempus has so far achieved on the reform of higher education in the partner Phare and Tacis countries. L EVALUATION OF TEMPUS TO DATE 1. Evolution of the Programme 3. Since its adoption by the Council on 7 May 1990 and the start of the initial pilot phase from 1 July 1990, Tempus has proved to be a dynamic programme which has been continually adapting to the changing environment in which it has been operating. This environment has been shaped in part by developments in and links with Phare and Tacis strategies, the needs and capacities of the partner countries and the policy framework provided by Council and Tempus Committee decisions. In addition, modalities have been continually improved as experience in programme delivery is fed back to inform future implementation. 4. It is possible to identify three broad phases in the approach taken by the programme. The early phase of Tempus is characterised by the need to create, broaden and deepen links between those involved in higher education in the partner countries and the European Union. Here mobility is of primary importance as a means of creating a critical mass of academics and policy makers who will be willing and able to drive education reform in the partner countries. The next phase involves mobilising and channelling this potential for change into activities directed at concrete and sustainable reforms within higher education systems. This more structural approach encompasses reform or renewal of courses, curriculum development and innovation and the adoption of improved teaching methodologies. This phase tends to become progressively more challenging as the subject areas addressed increasingly reflect those skill needs of the labour market where there is little or no experience within the academic community upon which to base project activity. The third phase involves elevating these reforms to a strategic level where they will have an impact on universities as a whole and on policy-making and implementation within ministries of education. This implies changing to a certain extent the targeting and modalities of the programme as a different set of 'clients' is addressed and as vertical subject-based priorities are increasingly replaced by horizontal systemic ones. 5. Against this general background, the phasing of which will vary according to the situation in the respective countries, it is possible to identify some key characteristics in the evolution of the Tempus programme. These may be summarised as follows : a shift from exchange and mobility as ends in themselves towards increasingly structural and strategic objectives. • an increasing degree of ownership by the partner countries. This is demonstrated most clearly in the dramatic growth of eligible country coordinators and contractors which has had the desirable effect of making Tempus project design and management progressively more demand driven rather than supply driven by the Western partners. Also relevant to mention here is the growing professionalism and profile of the National Tempus Offices(NTOs) in the Phare partner countries which have acted as an increasingly effective intermediary in the process of elaborating and articulating the agenda for reform. • projects increasingly determined according to national priorities. In turn these priorities are progressively being located within coherent national strategies for higher education reform where Tempus is positioned to address in particular those skill needs supporting overall Phare/Tacis country objectives. • modalities which have reflected this more strategic approach by adding a 'top-down' dimension to the proven success of the traditional 'bottom-up' approach. • increasing emphasis on those horizontal issues such as university /enterprise links, multidisciplinarity and flexible course structures and quality of university management, which are aimed at improving the performance of the higher education sector in meeting changing demands in the labour market and from a variety of social partners. • increasing focus on the sustainability and dissemination of the growing inventory of transferable outputs of Tempus projects. 2. TEMPUS impacts 6. When considering Tempus impacts it is necessary to assess these against the objectives set for the programme under the terms of the respective Council Decision. Those for Tempus I focused on encouraging cooperation with partners in the Community, on the mobility of students and teaching staff and on opportunities for teaching and learning Community languages. Only under Tempus II which commenced on I July 1994 was there an explicit link made in the Decision Text with the objectives of the Phare and Tacis programmes in the context of economic and social reform. Specific objectives became more structural in terms of curriculum development and overhaul, the reform of higher education structures and institutions and their management and the development of skill-related training to address advanced level skill shortages during economic reform. 7. Evidence for the impact of Tempus has been taken principally from an external Evaluation1, supplemented by the series of Country Monographs based on site-visit investigations and published by the European Commission2, the Report 'Strengthening East-West Inter-University Cooperation: From Assistance to Partnership' prepared by the CRE ("Conférence des Recteurs Européens") in collaboration with the Liaison Committee of Rectors' Conferences3 and Site Visit Reports involving external experts4. 8. Despite this diversity of sources there appears to be a considerable degree of consistency as to the assessment of Tempus impacts and the areas where further action is necessary. The Evaluation concludes that 'the projects supported by TEMPUS can be considered by and large as successful and important for the development of higher education in the CEE partner countries Although a substantial contribution of TEMPUS I to the development of higher education in the CEE partner countries can be observed, further efforts will be necessary at least in some of the CEE partner countries to reach a level of achievement and progress in higher education renewal and restructuring which utilizes the potentials of the TEMPUS Programme to a fuller extent in order to reach the aims and objectives of the Programme'. 9. The CRE report is very clear in its overall assessment of the Tempus programme within the general framework of international assistance to higher education reform: 'Thus, East-West inter-university cooperation constitutes a highly complex and diversified scene and it would be wrong to view it as a scene determined by a single supporting agency however powerful and large it may be. 1 (i) Evaluation of the First Phase of Tempus 1990-91 - 1993-94, Final Report, February 1996, (ii) Evaluation of the Second Phase of Tempus 1994-95 - 1995-96, Interim Report, April 1996, by: University of Kassel, Centre for Research on Higher Education, and GES Maiworm&Over, Gesellschaft fur Empinsche Studien bR, Kassel. 2 Tempus Country Monograph: The Slovak Republic, 1994, by: Prof. R. Gwyn. Tempus Country Monographs for Bulgaria, the Czech Republic, Hungary, Poland, Romania and Slovenia are currenly in preparation. 3 September 1994. 4 A series of site visits were undertaken by the Commission in 1992-94 in order to carry out a quality audit of the Tempus programme and, in particular, of its Joint European Projects, from both an academic and financial point of view. For details: Tempus Site Visit Programme, Annual Report 1992-93. It appeared nevertheless very clearly in the course of this project that one supporting programme, namely Tempus, played and plays an absolutely central role among the different past and present cooperation schemes. For many institutions this was by far the most important international programme of East-West cooperation, not only from the point of view of the amount of external resources involved but also in terms of thinking about outside assistance. In the opinion of many, Tempus has indeed opened and developed more than any other process the internationalisation of Central and Eastern European higher education and it can be safely argued that the overall assessment by its beneficiaries is highly positive. ' Similarly the Monographs state that Tempus 'has generated a high level of activity which has had a very positive impact on the process of innovation in Higher Education'. 10. This consensus broadly extends to the assessment of the more specific outcomes and impacts of Tempus. Both the Evaluation and Monographs distinguish in their different ways between what the latter calls proem and project outcomes. With regard to process, the Evaluation specifies as the first and most significant outcome 'the integration of the CEE partners into an international community of scholars and in some cases of administrators. They became accustomed to and versatile in this framework, they were integrated into smaller and larger networks, and they received some training and general improvement to raise their competences and status'. 11. Looking to the future it can be argued that through these process benefits Tempus has and is creating a platform for sustainable change and development within the higher education sector in the partner countries. For the associated countries the networks, skills and attitudes engendered by Tempus should have the particular benefit of facilitating future active engagement by the academic community in European Union programmes of various kinds. For the other Phare and Tacis countries these benefits will contribute to embedding democratic values and new perspectives within their higher education systems and to providing those skills important for facilitating reform in other areas of society. 12. Perhaps the most important concrete outcome of Tempus projects has been in the area of innovations introduced into university curricula including the development of new courses, teaching material and teaching methodologies. Increasingly these activities have been subject to the framework provided by national priorities, the typical features of which have included: • the promotion of multidisciplinary studies and the development of new course structures, particularly short cycle bachelor degrees and postgraduate courses. • priority to subjects in certain academic areas linked to economic transition and democratic reform or more specifically to Phare and Tacis sector programmes, such as business management, public administration, environmental protection, agriculture and health. 13. However within the generally favourable assessment of Tempus impact in this area the level and scope of impact were initially limited and have been raised under Tempus II. Initially, under Tempus I, most development took place at the level of courses or units of teaching material, that achievements have been characterised by selective innovation or adaptation rather than by totally new programmes and that the focus of impact has typically been at departmental level. Even where a university has various departments involved in a number of different projects there was often little or no synergy between them as a means for institutional reform. The Tempus I Evaluation states: 'In a substantial number of departments in CEE countries, far-reaching curricular innovations were achieved, and the development of new teaching material of a strategic nature was realised frequently. Curricular development and other educational activities, however, varied substantially in scope and achievement. ' 14. Recalling the objectives set for Tempus I by the Council Decision it is indeed quite reasonable and understandable that the outcomes of the Tempus projects commencing in the first three or four years lacked the wider dimensions which are viewed as a clear priority for Tempus II. However the reasons for the initial lack of more strategic impact within institutions seem to go beyond the question of objectives and points to constraints which are likely to persist to a greater or lesser extent through Tempus II, and thus be relevant to a possible agenda to be addressed by a further phase of the programme. These constraints arise from the move towards internal fragmentation and the development of extreme forms of individual autonomy within higher education institutions following their release from centralised direction in 1989/90. Both the Evaluation and Monographs identify this lack of institutional cohesion and strategy as an important factor in limiting the broader impact of Tempus projects. For example the Evaluation refers to: '. achievements on selected islands of innovation privileged to be chosen in the framework of the TEMPUS Programme. Spin-offs within the respective institutions remained moderate or mostly marginal. ' Interestingly both qualify this view in respect of smaller universities where a greater degree of institutional identity and management has led to more structural reforms being initiated through Tempus projects. This topic of university management will be returned to later in the report. 15. The need to create impact on institutions as a whole was specifically addressed by Tempus II. A kick-off for attempts to use Tempus as an instrument to promote sustainable development at institutional level has been the newly introduced requirement that partner country universities demonstrate how a planned project fits with their institutional development strategies. Another fact having contributed to a stronger involvement of the central levels of institutions in Tempus projects is that local universities can act as project coordinators in all partner countries and as contractors in most of them. The Tempus II Evaluation assesses the adaptations made as follows: 'The function of the central level of the higher education institutions has gradually changed within Tempus II. Special Joint European Projects and complementary measures were awarded support in order to improve the institutional management. Furthermore the attempts to integrate Tempus activities into an institutional strategy could be found more often. ' 16. Although a means rather than an end in itself, the provision of equipment, books and periodicals appears to be a highly valued outcome of Tempus projects. The Evaluation speaks of new equipment being ' the pride of the respective departments in the Central Eastern European countries'. The acquisition of new equipment was of course only agreed to where it could be seen to be demonstrably supporting relevant educational activities and/or related infrastructure, for example PCs for management projects, language laboratories for languages projects or photocopying machines to facilitate the development of teaching materials and communications with partners. Both the Evaluation and Monographs confirm that such a linkage with educational activities in fact existed. The latter refers to the beneficial impact on teaching programmes of the acquisition of microcomputers and in a more general sense the important contribution to improved communications provided by photocopiers, telephones and fax machines. The Evaluation puts it this way: 'While in some cases it(new equipment) was closely linked to the respective educational measures, it was in most cases viewed as an improvement useful anyway, ie. for the quality of educational activities in general, for easing future international cooperation, for supporting the research infrastructure, etc. Structural development met the highest consensus as being an important element of support. ' 17. Many of the same considerations apply to the provision of books and periodicals. To quote from the Monographs: ' The quality of its library is an important indicator of the quality of the University as a whole. Tempus has made a major contribution: it has enabled institutions to replenish their book stocks with many titles, often from Western Europe and North America, which may not have been available under the previous regime and which would have been denied to them still, on cost grounds alone, without the Programme's support. ' As with equipment, benefits accrued to both the methods and content of teaching and learning but it is also necessary to add that once a significant part of this 'deficit' has been corrected, increasing ernphasis has been put on the development of publications and other materials (particularly case studies) developed locally appropriate to national needs. 18. Staff mobility led as much to process benefits as to achieving specific project outcomes. Volumes have been substantial, with about 57,000 mobility grants for staff being granted under Tempus Joint European Projects (JEPs), 60% of which supported East to West visits. The Evaluation speaks of far-reaching benefits in terms of getting to know partners in other countries, their activities and ways of thinking, of establishing networks, of improving competences moderately and of adapting to other styles of communication and behaviour. The Monographs state that ' staff mobility in JEPs (and for that matter, also student mobility) and all that it has brought in its wake, albeit a means rather than an end, is one of the great success stories of Tempus'. Some of the many associated benefits are the acquisition and up-dating of specialist knowledge, adoption of new teaching methodologies, experience of using modern curriculum development strategies and the skills to work within and manage projects. Project development and management skills have proved a particularly valuable 'enabling' tool as they have contributed significantly to partner countries assuming a greater degree of ownership of projects through progressively taking on the role of contractor. To these benefits should be added the no less important factor of the adoption of new perspectives and attitudes towards change and reform and the confidence to challenge existing structures and practices. Perhaps one caveat should be added to this positive analysis in that the full potential of newly-acquired skills was not always fully realised following return of staff to their partner country institutions. Once again this comes back to the consequences of institutional fragmentation which will be addressed later in the report. 19. There has also been a substantial volume of student mobility with almost 27,000 grants being awarded under Tempus JEPs. The Evaluation notes that 'student exchange tended to be viewed as very helpful for those actually going abroad, but altogether less intertwined with the other reform activities'. Certainly it has had less direct links with educational innovation and change although the indirect effects of students returning with new perspectives and attitudes, as well as with a strengthened confidence and ability to articulate their views and challenge the status quo should not be underestimated. One of the conclusions of a seminar of experts involved in the Tempus site visits programme was as follows : ' Student mobility is considered by all experts as a cost effective activity as the formation abroad can really contribute to speeding up the pedagogical changes, considered both as teaching methodologies and techniques, and as programmes. ' This catalysing effect of student mobility is explained by the role of returners influencing attitudes within departments, both among fellow students and staff members, often obliging the latter to consider changes to curriculum and teaching methods. In the context of Tempus I, perhaps the main criticism to be voiced regarding student mobility is that periods of study in the EU were too often not recognised by the parent institution, and this is an issue being addressed under Tempus II. Under Tempus H, student mobility projects have progressively played a smaller part in overall JEP activity and now are only considered within the context of establishing measures to facilitate future mobility and cooperation through systems of academic recognition and credit transfer. 20. Each of the above outcomes is to a larger or lesser extent subject to considerations of continued sustainability beyond the life of a Tempus project. The programme has been addressing this in three ways: • Joint European Project (JEP) applicants are asked to propose plans for future sustainability as part of their project design and it is made clear that an assessment of the quality of these plans will be one of the criteria used in evaluating the overall quality of the application. Moreover, JEPs in the Tacis countries are only approved after successful completion of a one year preparatory phase which aims at analysing the precise needs to be • • addressed and preparing a viable project plan. the Joint European Network (JEN) action (i. e. limited funding for complementary activities after the conclusion of a JEP) has been introduced which specifically addresses the issue of sustainability. less directly but perhaps ultimately more important, encouragement within JEPs of developing links with and services for enterprises, particularly the provision of continuing education, is establishing the potential for institutions to generate future income and thus have their own resources not only to maintain equipment and stocks of publications but also to sustain national and international cooperation. 21. In conclusion the evidence points to a high degree of impact and success for JEP projects especially when measured against the objectives set for Tempus I. According to the Evaluation most observers 'seem to agree that the proportion of real success stories is remarkable and that useful changes could be observed in most cases'. According to the participants themselves, when asked how satisfied overall they were with the achievements accomplished with their particular JEP: • over 90% of partner country respondents, and • almost 80% of EU respondents, expressed a high degree of satisfaction. 3. Tempus policy setting 22. Tempus policy decisions are taken at various levels. In each partner country, two major events shape the policy, namely the definition of national priorities and objectives for Tempus projects (in application of Article 5 of the Tempus II Council decision) and the allocation of funds to Tempus within the global envelope of Phare and Tacis funds. The main policy makers at national level are the ministries of education and the Phare/Tacis coordinators; other ministries may also be associated. In the Phare countries, the National Tempus Offices play an essential role in stimulating the whole process and coordinating the academic community's contribution. The relationships between the different actors are rather complex and were not easily understood in the first years. In this respect the Tempus II Evaluation notes 'a routinisation and stabilisation of the procedures of policy formation for Tempus. In contrast to Tempus I we found that decisions of key actors on the national policy level play a more important role in the shaping of the programme. ' 23. Most Phare countries have set up Tempus supervisory boards or advisory boards in which all relevant actors are represented. The Tempus I Evaluation notes: 'The establishment of Tempus supervisory boards or advisory boards to serve as an arena for dialogue and cooperation of all key actors involved in Tempus policy decisions has turned out to be a good option for the necessary coordination processes. The functioning of these boards requires the willingness of all actors to cooperate with each other. ' 24. In the first years of Tempus the key players' participation in policy forming was not always well balanced. The role of ministries of education was constrained by a number of factors. Universities and indeed faculties were exercising their new-found autonomy without an effective legislative framework for higher education. There was also a high level of volatility within the structures and personnel of the ministries themselves. This situation has evolved over the years and the Tempus II Evaluation has found a more pro-active role of the ministries of education and a clear effort to better integrate the possibilities offered by Tempus in the overall national higher education policy. 25. The definition of priorities and objectives for Tempus has increasingly influenced the scope and profile of the projects supported. Priorities can be considered as adding a 'top-down' dimension to the traditional Tempus bottom-up approach, thus to a certain extent incorporating the partner countries educational, economic and social reform policies in the programme. Priorities have progressively been positioned with respect to the overall Phare and Tacis objectives and, to some extent, sectoral Phare and Tacis policies Particularly in the Tacis countries, the scope and number of the priority areas selected were restricted by the limited resources allocated to Tempus. 26. The Evaluation of Tempus II notes that 'increasingly detailed specifications have been introduced into most of the national priorities framed by statements of further conditions and preferences beyond the priorities themselves', and that furthermore 'every year national priorities change to a certain degree. Changes in subject-related priorities are mostly due to considerations of balance and rotation. Changes in thematic or structural priorities are due to policy developments. Policy changes are also frequently reflected in the formulation of preferences. ' 27. Consideration of any continuation of the Tempus programme needs to be set in the appropriate financial and policy context Financial provision for both the Phare and Tacis programmes has been made to 31 December 1999 and as funding for Tempus is contained within these programmes the perspective for any possible continuation of Tempus must be subject to this budgetary framework. Under Tempus II the last call for applications will be for 1997-98 to be covered by the budget 1997, with the final Joint European Projects (JEPs) commencing on 1 September 1997. Thus this interim report focuses on the two years 1998 and 1999 as a concrete timescale for a possible further phase of Tempus, while identifying the factors that may contribute to a case for certain Tempus activity continuing beyond 1999 should funding become available. 28. The policy and operational context leads to a certain differentiation between groups of partner countries when considering the future of Tempus and this differentiation is reflected in the structure of this interim report. 29. The first group are the associated countries of central and eastern Europe which are preparing for integration into the internal market of the European Union within the context of a pre-accession strategy which was adopted by the Essen European Council in December 1994. As set out in the subsequent White Paper of May 1995 the process of single market integration will inter alia generate new requirements in terms of skills and qualifications within the labour force of the associated countries and this in turn will have an impact on their education and training systems. The case for any continuation of Tempus in this group of countries must be positioned to add distinctive and demonstrable value to a Phare programme which through the multiannual indicative planning process is being reoriented directly to support the pre-accession process In doing so it also needs to recognise that Tempus will have been operating for up to eight years in certain of these partner countries by the end of Tempus II and that other programmes are also supporting the process of higher education reform. 30. The second group comprises the non-associated Phare countries which at present covers only Albania but which is likely soon to include also the countries of the former Yugoslavia provided that adequate progress is made in the areas of security and political development. Here Tempus will have been operating for a much shorter period by 1998 and consequently will have been able to make only a more limited impact on the reform of higher education. Rather than a context provided by a pre- accession strategy, these countries axe likely to be facing to varying degrees continuing fundamental challenges in the reform of their higher education systems and more generally in the transition to full market economies. 31. The third group are the Newly Independent States and Mongolia covered by the Tacis programme. It has only been as recently as 1993 that these states started gradually to participate in the Tempus programme. This needs to be viewed within the perspective of the huge challenges facing these countries in terms of political and economic reform and the relatively limited scale of the Tempus Tacis budget available. Following the Cannes European Council in June 1995 European Union policy towards these countries will be based on the twin tracks of continuing support for economic and democratic reform and, particularly in the case of Russia, establishing a 'substantial relationship of partnership'. This policy is gradually being consolidated within a series of Partnership and Cooperation Agreements which will set a broad context for European Union activities in the future. 32. The case for a further phase of Tempus will address the distinctive operating contexts and needs of these three groups of countries. * * * * 10 EL A FUTURE ROLE FOR TEMPUS 1. IN THE PHARE ASSOCIATED COUNTRIES 33. Despite the significant impact which Tempus has made and continues to make on the reform and improvement of higher education, the programme operates within a dynamic environment of changing needs and requirements. This environment is increasingly being shaped by the following factors: • • • the demands of the pre-accession strategy and the 'acquis communautaire'. continued development of the legislative and structural framework for higher education and the need to implement policy at the operational level. increasing pressures on universities from a range of different stakeholders, and the need to demonstrate institutional quality, relevance and value for money within a more responsive relationship with the labour market and social partners. 34. To a certain extent these are areas already beginning to be addressed within Tempus II priorities. However it can be argued that because of the nature and size of the need, for example in relation to pre-accession requirements, or because certain areas such as reform of university management as identified by the Evaluation are proving slow to change and thus requiring a more sustained effort, these areas would remain priorities beyond Tempus II. 35. A further phase of Tempus should be targeted to complete and consolidate work in these important areas, being carefully positioned so as to complement and support relevant Phare sector programmes and other EU activity. Where this strategy requires flexibility in the traditional modalities of the Tempus programme these should be considered to achieve greatest effectiveness. Additionally, in order to maximise the value of past and current investments made through Tempus, attention should also be given to strengthening the dissemination of the increasing inventory of project outputs particularly where they are supportive of the above areas and where they are applicable outside the university sector. 36. While recognising the increasing contribution of Phare programmes within the education and training sector, it is felt that the platform skills and relationships developed under Tempus I and II can be a very cost-effective and efficient means of mobilising expertise to work in particular at the interface between policy formulation and practitioners in the higher education sector. Providing that they are set in a coherent and strategic context, carefully constructed and implemented institutional development projects, including pilot projects to test and demonstrate good practice, can support and add substance to the process of policy development and can deliver specific outcomes in terms of priority skill needs. 11 A. TEMPUS and pre-accession The Essen European Council 37. The Essen European Council of December 1994 adopted a broad pre-accession strategy which envisaged a progressive strengthening of relations with the associated countries of Central and Eastern Europe through a structured dialogue and invited the Commission to prepare a White Paper on preparatory steps necessary for the integration of these countries into the internal market. It also decided that the Phare programme should henceforth be reoriented to support this process. 38. The White Paper was issued in May 1995. There are of course many different aspects to the single market but in section 4 the White Paper makes a broad distinction between the process of legislative and regulatory approximation and the establishment of implementation and enforcement structures. In relation to the latter it states: ' The overall picture is that the process of establishing, staffing and making operational all the necessary administrative structures is lagging behind the legislative process itself. The situation varies between the associated countries and from sector to sector, but there is a widespread need for more effort in this respect. ' 39. Even where the institutions themselves have been created the White Paper says that 'the trained staff to run them cannot always be found. In general, they inevitably suffer from a lack of experience. In this context, assistance through Tempus, the activities of the European Training Foundation and participation by the CEECs in the Leonardo and Socrates programmes will help them develop the relevant skills. ' 40. Adoption of certain EU internal market Directives into the national legislation will result in a requirement for staff which needs to get the adequate training at the level of universities. For example, the implementation, monitoring and enforcement of regulations on health and safety at work will require the creation of degrees in occupational medicine. As another example, the enforcement of Directives on animal and plant health calls for the creation of courses to train the future staff of inspectorates. 41. In the different Phare sector reform programmes there has been a growing concern over the shortage of qualified staff that are able to deal with the legal and economic aspects of the national policies of reform. The problem is becoming more prominent with the prospects of future accession. There is a need for development of courses with a multidisciplinary approach focusing on the intersection of legal/economic aspects and technical contents. Cases in point are for instance agriculture economics, agricultural and food trade mechanisms, transport economics, environmental policy and legislation, economics of health services, etc. 42. A more precise identification of the 'new professional profiles' required for each country will need to await the individual work programmes being developed by the associated countries within their pre-accession and approximation strategies. Once these are identified they should form an important focus for the setting of future national Tempus priorities. It is envisaged that the area of university activity most likely to be appropriate for Tempus support in this respect would be the development 12 or adaptation of postgraduate diplomas and/or continuing education courses at professional level. 43. Education and training provided by the faculties of law will have to reflect the changes brought about by the incorporation of the 'acquis communautaire' in the national legislation. Adaptation of existing courses and introduction of new courses or course modules will be required. Curriculum development activities in Tempus projects can typically address these needs. 44. Development of European studies and in particular European Law are obviously essential to support the pre-accession process. These academic areas have figured prominently amongst the priorities of Tempus since its inception in 1990 and many projects have been completed or are at different stages of operation. Some projects have lead to the creation of centers Or departments of European studies integrated in universities, sometimes as inter-faculty centers. It can be confidently stated that in most countries there is still need for new Tempus projects in these areas. 45. Another important strand of integration to which Tempus could make an effective contribution is in the area of measures to ensure the free movement of persons within the single market. Parts of the legislation concerning the free movement of persons are closely linked to the freedom to provide services, especially those services which require minimum professional qualifications which in the majority of cases are awarded following successful study at a higher education institution. 46. The Commission's seven sectoral Directives covering the regulated professions of doctors, nurses, dentists, mid-wives, veterinary surgeons, pharmacists and architects will have the most direct impact on the need to adapt university courses in the partner countries as mutual recognition depends on the previous coordination and harmonization of training. The White Paper sees a phased application of these Directives as the partner countries will need a period for adaptation during which curriculum reform under Tempus could certainly make a valuable contribution. 47. The sectoral Directives are complemented by two general systems Directives for the recognition of diplomas and professional education and training. These Directives of 1989 and 1992 cover a wide range of professions and activities and-cover, inter alia, all diplomas which are not affected by sectoral Directives and which are awarded on completion of a course of higher education comprising at least three years' full- time study or the equivalent. Examples of possible beneficiaries include teachers, engineers, opticians and chartered accountants. Although the general Directives do not require coordination of training, they do require mutual trust between the different national authorities and a good knowledge of each other's functioning. 48. Institutional transparency and consistency as well as the operation of effective quality assessment systems greatly support the strengthening of mutual trust. The implications of such requirements within the broader context of improvements in aspects of university management are addressed later in this report but they are certainly areas where Tempus should continue, for a number of reasons, to make an important contribution. Additionally the process of gradually developing better knowledge regarding the general relationship between EU requirements and partner country diplomas as envisaged in the White Paper may illuminate areas where it would be desirable for some adaptation or enhancement to the said diplomas and again Tempus would have a role to play in this respect. 13 The relationship to Socrates 49. Another aspect of pre-accession which Tempus would be able to support is the gradual participation of the associated countries in intra-EU programmes. Negotiations are already well advanced regarding entry into Socrates (as well as Leonardo and Youth for Europe III) and although final decisions have yet to be taken it is likely that participation in the Erasmus strand of Socrates will be taking place in 1998/99. 50. In order to consider how Tempus and Socrates might most productively interface during this period it is first necessary to examine their different objectives and modalities. These can be summarised as follows : • Tempus is fundamentally an assistance programme providing substantial funds for the transfer of skills and experience from the EU to partner country universities while Socrates is essentially a cooperation programme where little transfer of resources takes place. • The principal objective of Tempus is to promote the development of the higher education systems in the partner countries in the context of economic and social reform while Socrates contributes to quality in education through encouraging trans-European cooperation with particular reference to promoting the 'European dimension'. • While curriculum and structural development are at the centre of Tempus activities, student mobility retains a position of central importance within the Erasmus strand of Socrates. Although increased emphasis is being given to teaching staff exchanges and curriculum development under Socrates these are within a relationship where all partners use the new curriculum. Also the funds available for such work are considerably less than those provided under Tempus. 51. In terms of a possible future complementary relationship between the above programmes, the question posed by the above points is whether partner country universities are ready, in terms of their competences, to enter Socrates immediately or whether their are still 'gaps' when compared with EU universities that would constrain the cooperation summarised above. If so there may be a role for Tempus in addressing these areas as a contribution to facilitating entry into Socrates. 52. Assessments of partner country institutions point to structural and management weaknesses as the main areas of deficiency. The importance of these for Socrates is underlined by the introduction of the 'Institutional Contract'. An important feature of this contract is the requirement for a statement of the institution's European policy including measures for enhancing the quality of its European operations through appropriate arrangements for monitoring, quality assurance and evaluation. In the definition of plans and the selection of activities for future cooperation, institutions will be expected to make an analysis of the weak and strong points of their international cooperation so far in terms of quality of cooperation, types of activity, subject area participation and geographical spread of partner institutions. Decisions are required on which activities should be continued, extended or abolished and this overall planning process is likely to entail the orchestration and management of consultations with a broad range of actors, academic and non-academic, across and perhaps also outside the university. 14 53. In Socrates, arrangements for full academic recognition for study periods abroad form will also part of the institutional policy with increasingly wide use being made of the European Credit Transfer System as a means of achieving this. Finally, the high volume of student mobility under Socrates will require well-managed and efficient student services to provide effective support in the areas of welfare, counselling, accommodation etc. 54. All these factors will require a degree of quality and coherence in terms of university management which the Evaluation, CRE report, Monographs, and Site Visits all identify as an area of weakness in the partner countries' universities. Although Tempus II is beginning to address this issue, because it involves deeply- rooted vested interests and attitudes within institutions, the consensus points to it being somewhat resistant to change and requiring a more sustained reform effort which would extend into a further phase of Tempus. 55. Participation in Socrates(Erasmus) from 1998 on will need to take account of the progress of the Tempus programme which by its very nature is much more favourable to the beneficiary countries from a financial point of view. The above analysis identifies where Tempus needs to direct a more sustained effort in order to facilitate the cooperation envisaged under Socrates. Thus it is proposed that for a limited transition period there will be a requirement for both programmes to run in parallel and in a complementary manner which avoids overlap (for example student mobility should be the exclusive province of Socrates). The balance between them will vary from country to country and change over time as an increasing number of eligible universities are able to move from a position of beneficiary of assistance to cooperation as an equal partner. B. Support for higher education policy initiatives 56. The early 90s saw much new legislation in the partner countries which redefined the relationship between the state and higher education institutions in a way which established a high degree of autonomy within the system. This period was characterised by a distancing of universities from government as the former exercised their new-found freedom. However as the decade progresses this is being increasingly recognised as an inadequate basis on which to build an accountable, relevant and high- quality higher education sector as it tended to leave in place to a large extent the existing, predominantly conservative old internal structures within universities. 57. Consequently there is currently underway in the partner countries what could be called a 'second phase' of reform which is seeking to rebalance the relationship between higher education institutions, government and society as a whole, to emphasise responsibilities as well as rights, and above all to address the key factors of accountability and relevance to social and economic needs. For example in 1995 legislation affecting the higher education sector was passed in Bulgaria and Rumania. This addressed such areas as the restructuring of university qualifications, the establishment of assessment and accreditation systems and institutional management obligations associated with autonomy. 58. There is of course by now a diversity of legislative frameworks for higher education amongst the partner countries and each is at a different stage in relation to this second stage of reform. For example the Czech Republic is still working on its 15 new higher education law. However certain common themes are discernable within the current agenda for reform as governments and institutions themselves seek to address the above issues. This will involve in various ways challenging existing structures and vested interests as well as changing deeply-rooted attitudes and practices and it is principally for these reasons that, even where new legislation and regulations have been developed, implementation will call for a sustained effort at the operational level which is something Tempus would be well designed to deliver in the remaining years of this decade. 59. A principal common theme is the need to establish effective quality control systems for autonomous higher education institutions. Much work, supported in part by Phare sector programmes, has and is being done on setting up or reforming accreditation systems and attention is also being given to the possibility of using institutional evaluation systems to inform future decisions on institutional funding levels. However even where legislation and structures are in place there is often a need to operationalise what otherwise may be in danger of remaining largely good intentions. Tempus can build on this work by providing a means of mobilising expertise at the operational level, by trialling pilot projects to optimise implementation strategies and by disseminating and embedding best practice within the system. 60. Similar considerations apply to another common theme likely to remain on the reform agenda for some time to come, namely the development of short-cycle degree courses. This covers both the trend towards shorter, often three-year, bachelor first degrees and also the establishment of new, short, professionally and vocationally oriented university-level courses delivered either by existing institutions or by separate institutions often modelled on the German 'Fachhochschulen'. These developments are aimed at increasing the diversity, flexibility and relevance of the higher education sector and again a start on reform at the policy and structural level has already been made. There remains however an important role for Tempus in terms of reinforcing this work through assisting with the restructuring of existing cpurses, developing new more practically oriented study programmes, introducing innovative teaching methods and disseminating and embedding best practice. 61. Higher education plays a pivotal role a country's higher education policy in the sense that via its teacher training institutions has a significant influence on the quality of primary and secondary education. Reform of those levels of education is underway and in some countries legislation is already in an implementation phase. The professional profiles of teachers are being reshaped and teacher training institutions are required to restructure their study programmes, for instance in order to train teachers able to deal with two subjects. Tempus can make a valuable contribution by funding cooperation projects that could act as examples of good practice. 62. The need for greater flexibility and diversity are themes commonly heard in the partner countries (as well as in western Europe) and in addition to work progressing on short-cycle courses there is also a focus on increasing the role of interdisciplinary studies as a way of responding to the evolving needs of the labour market. It is recognised that there is still a measure of overspecialisation even at first degree level which leads to a skills base which tends to be too narrow for the multi-skill needs of today's labour markets and which tends to inhibit labour mobility and/or to meet changing requirements. Responsibility for reform in this area rests largely with higher education institutions themselves. However systemic reform also has an important supporting role to play in terms of the establishment credit transfer and recognition 16 procedures within and between institutions to facilitate the movement of students between different disciplines as part of a course of study. Tempus can contribute to this process in a number of ways: for example by providing expertise to assist with the development and/or piloting of systems, by imposing conditionality within its structural projects to encourage the institutional adoption of credit transfer and recognition and by giving emphasis to interdisciplinary objectives in its curriculum development activities. 63. There are obviously many other issues of higher education policy where legislative reforms are being introduced in the different partner countries. Just to mention a few examples : restructuring of postgraduate education, setting up of interfaculty or interuniversity centers to overcome fragmentation, integration of universities and research institutes, creation of academic course credit transfer systems at national level, development of internal quality systems at universities, reform of overspecialised curricula, reduction of the teaching load and, in particular, the volume of contact hours, introduction of new teaching methodologies, etc. A variety of Tempus project profiles could be used to address these issues. C The need to manage change and demonstrate accountability: optimising university resources 64. The environment in which universities are operating is becoming increasingly demanding. As stated in the introduction to the CRE's Institutional Quality Audit programme: ' Now perhaps more than ever in their history, universities have to face a their rapidly changing environment on which they are dependent for organisational survival. Institutional planning processes to adapt to the changing environment and to make use of the opportunities it provides, are, by the same token, becoming more important for the governance of universities. Linking these two insights, we can conclude that management for quality is central to a university's strategic management. ' 65. In the partner countries, central to this changing environment is the trend towards greater university autonomy. While originally conceived as a political measure to grant greater freedom and independence from earlier ideological direction, it is now becoming clear that autonomy brings with it responsibilities as well as rights. As an expert from the Center for Higher Education policy studies puts it: 'More autonomy for universities requires more self-regulation, requires entirely different management structures, requires strong leadership, transparency and accountability'. He calls autonomy an 'indispensable management tool in order to be able to respond to the changing environment and to grasp the many opportunities. ' 66. If autonomy brings with it new obligations, these are being defined in ever clearer terms by a range of increasingly vocal stakeholders or constituencies which have an interest in the performance of the higher education sector. As well as governments which provide the majority of funding, there are students and their parents who increasingly have to pay fees, regional and local authorities, employers offering jobs to graduates and clients commissioning research projects or specific training courses. 17 67. Perhaps the two most important factors driving change within this landscape are: • • the progressive pressure on public funding available for higher education institutions, and the need for higher education institutions to develop closer links with external socioeconomic partners and to adapt more readily to changing labour market needs. 68. This situation in turn requires the universities to put in place the means to both establish and demonstrate to their various stakeholders efficiency, effectiveness, value for money and relevance and to manage relationships with them in a coherent way. They will have to decide on priorities and be selective within a clear analysis of institutional strengths and weaknesses. Their ability to manage change across the institution will become essential. 69. Reference has already been made in this report to the internal fragmentation that took place within partner country universities following the political changes of 1989/90. In the context of die limited impact of Tempus projects on institutional reform, the Evaluation notes a lack of policy and management at institutional level. It adds: ' Most persons involved and most external observers seem to agree that Tempus-supported activities during the first four years of the Tempus programme were more or less a matter of the respective faculties or departments in the partner countries. The university as an institution did not come into play. ' 70. In their different ways, all the reviews used as sources for this report recognise the factor of institutional fragmentation. Linkage to the limited institutional impacts of Tempus offers a further advantage and rationale for developing improved management skills and a more strategic approach, in terms of providing a framework for internal dissemination, sharing of best practice and the embedding of reform measures by means of institutional policies. 71. Institutional fragmentation persists in many partner country higher education institutions, especially the larger ones, and it is becoming increasingly inconsistent with an environment of rising expectations, the requirements of which are summarised in paragraph 58 above. To quote from the report of an institutional site visit made in 1994: ' If the management skills at this university are in any way typical of Central and Eastern European institutions I think there is a strong case for diverting some of the TEMPUS funds to provide senior University managers with courses on strategic planning. ' This is seriously compromising the ability to project a coherent and distinctive institutional profile to external stakeholders. It constrains efforts to establish institution-wide norms and standards which should serve to define and assure institutional quality both internally and externally. Also it weakens the ability of the institution as a whole to reflect on its own strengths and weaknesses, opportunities and threats, and consequently to direct efforts and scarce resources to those areas where they are likely to have the greatest value within a shared sense of purpose defined by a commonly agreed overall mission for the institution. 18 72. However, while strategic management is a vital means for responding creatively to an increasingly demanding and changing environment, it is often linked to systems which assure quality within the institution. Progress towards the attainment of objectives and goals set by strategic plans can be most effectively measured and managed within a framework of clear and transparent performance standards defined through a quality assurance system which can serve as a unifying factor across the institution. As stated in the CRE's Institutional Quality Audit programme: '(European universities) need to respond to increasing demands by indicating their willingness to adapt to new environmental constraints. Developing and implementing quality management approaches is an effective way to do so'. 73. An OECD expert in a paper for an OECD/Phare seminar on quality assurance in higher education, says 'there is little doubt that quality assurance is seen in all of the countries concerned as a high priority for the successful transformation of higher education structures and practices'. He sees the following goals being addressed in CEE and other countries: • • • • to guarantee quality and standards; to improve quality and to raise standards; to provide public accountability of resources expended on higher education; to ensure consumer protection against inadequate or defaulting institutions. He also emphasises the need for commitment to quality at all levels in these terms: 'A fundamental prerequisite to the successful implementation of any system of quality assurance is that there should be a dedication to quality on the part of all members of the institution. Formal participation by the Rector, Governing Body and Academic Council is not sufficient to ensure effective participation and cooperation by faculty heads and teaching and research staff. Likewise, enthusiastic support by the latter will not succeed unless the university's top management is also dedicated to the achievement of the goals of quality assurance. ' 74. Thus the management needs of higher education institutions extend beyond the requirements of senior managers for strategic planning skills to others involved in day- to-day operational management, for example in the areas of finance, personnel, information technology and student services. Indeed it is often these non-academic staff who feel marginalised in comparison with the status and support given to their academic colleagues. However in the future success will depend not only on an institution's academic quality but also on the effectiveness of its internal systems for delivering and demonstrating value for money and high levels of efficiency in supporting academic activity. Put another way, there will be increasing pressure for these 'support services' to add demonstrable value to the operations of higher education institutions. This will not only involve providing the appropriate operational skills at various levels but also encouraging a more positive interface between the academic and non-academic staff in terms of greater involvement by the latter in institutional planning and development. 75. An improvement in the quality and coherence of university management would bring many benefits, not least in the area of maintaining institutions' relevance to the needs of society particularly through better links with and sensitivity to labour markets in partner countries. This is necessary not only to sustain public support for the higher 19 education sector but also to provide what is likely to become an increasingly important source of income as pressure continues to bear down on levels of public funding. The CRE report calls this the service function ' of universities including collaboration with industry, covering such areas as consultancy provided to regional or national industry in its restructuring, to local authorities in their administrative reforms, by organising special training courses or conducting various applied research projects. Special attention should be paid to the contribution that universities can make to the development of new small and medium-sized enterprises, for example in the training of scientists and technologists, and to the innovative provision of professional continuing education and training to provide for the changing skill needs of those already in employment. D. Maximising the utilisation of Tempus outputs 76. The Tempus I evaluation notes : "Spin-offs of educational and curricular activities for the same subjects and departments at other higher education institutions in the country have been achieved within Tempus. A certain extent of dissemination and adoption can be noted, although it could be improved by increased support for increased dissemination, publication of material developed within JEPs and communication and exchange. " Although limited support is currently given to disseminating project outputs it seems that giving this aspect greater attention in the future would capitalise most effectively on the considerable investment already made by Tempus and maximise the leverage of its effects on the process of reform and restructuring. 77. There are a number of different areas where benefits are likely to accrue from more effective dissemination, whether this be on a 'vertical' subject-related basis or a more 'horizontal' basis addressing perhaps teaching methodologies or the process- related skills of project implementation and management. One such area for better utilisation of outcomes is within the partner country institutions where the original Tempus project was located. This may be more relevant to non subject-specific aspects of dissemination but there seems to be a clear case for the better and more systematic sharing of the transferable aspects of 'good practice', whether this is in the area of management, interpersonal or didactic skills. Any improvements that can be introduced to the modalities for dissemination in this respect will clearly be made more effective if complemented by improved staff development systems within eligible universities which are designed to share and embed best practice across the whole institution. 78. Dissemination to other higher education institutions is equally important. Nationally this contributes to the critical mass for reform. It also provides an opportunity for those institutions or faculties which -have not participated in Tempus to benefit from of its outputs. However, particular attention in the future should be given to the potential for sharing Tempus results between partner countries, as this dimension is identified in both the Evaluation and the Monographs. Experience has shown that regional cooperation will work effectively only if there are clearly defined common interests, a high level of commitment by all partners and appropriate supporting modalities It is suggested that the common agenda defined by the pre- accession process as it affects the higher education sector may well provide an incentive and common framework for a new phase of regional cooperation, and future dissemination actions should take this dimension into account. It should also be added that the smaller partner countries have a particular interest in regional dissemination 20 as a means of benefiting from the experience of the larger number of projects in other partner countries. 79. Many Tempus projects have potential benefits outside the academic sector, for example those concerned with management or business skills or applied science and technology. In the context of what has already been said about maintaining the relevance of universities and improving links with external social and economic partners, it is important to encourage the use of Tempus outputs where appropriate for the benefit of local enterprises and local and regional authorities. Indeed such a role, especially if combined with harnessing the efforts of neighbouring universities, could be used to establish or strengthen the contribution of the higher education sector to regional development within individual countries. This should be part of a more focused strategy to support the skill needs of Phare sector projects where the role of universities in providing required human resource development on a sustainable basis should be better exploited. 80. In all the above aspects of dissemination, it is suggested that more effective utilisation of the considerable investment made under Tempus I and II can be made. Measures to make dissemination more effective in the future should include the provision of improved incentives and modalities in order to stimulate greater commitment and more productive activity by project participants. Perhaps more investment should be made in establishing the needs of beneficiaries and more attention given to the quality of the dissemination or implementation process which should reflect an active involvement of and ownership by recipients. This should be complemented by allowing the possibility of adapting the original outputs of projects in order to meet more precisely the requirements of target institutions or organisations, by encouraging more collective activity between consortia and by supporting innovative alliances between academic and non-academic institutions or organisations. 2. IN TOE NON-ASSOCIATED PHARE COUNTRIES 81. At present this category comprises only Albania, but is likely also to include the republics of the former Yugoslavia (excluding Slovenia) in due course. Pending decisions on the form and content of EU assistance to these republics and an analysis of their needs it is only appropriate here to make some general comments about a possible role for Tempus. Even within this limited group of countries there are significant variations in the level of development and indeed infrastructure of the in any Tempus higher education systems which would need to be reflected programme. However there appears to be an equally strong case, if not stronger, for including a Tempus element within a Phare assistance package as there was for all the other countries of central and eastern Europe. 82. While in some of the countries of the former Yugoslavia there may historically have been somewhat more contact with the academic community of western Europe, recent events have to varying degrees widened the gulf with the rest of the continent It is particularly important that universities in these countries not only establish open and democratic practices themselves but are also able through their future activities to help to project and instill such values within their societies This and the need for universities the skills necessary for economic reform and reconstruction makes a persuasive case for the extension of Tempus to these countries particularly if it is carefully coordinated with Phare sector programmes and other to contribute to assistance to the higher education sector. Experience shows that the programme will take some years to reach a critical mass and it is therefore recommended that JEPs, particularly addressing curriculum development and structural objectives, are initiated on an on-going annual basis over the full period of a possible future Phare financing commitment. 83. The origins of higher education needs in Albania are somewhat different but no less pressing. Unlike most other countries in the region there is no long tradition of higher education, with the first university being founded as recently as 1957. The country and its education system has also suffered from a long period of almost total isolation from the outside world, and cooperation even with other communist countries was very limited. The effects of this situation have been exacerbated by a weak economy and a very small budget for higher education which has been estimated at approximately half that of other countries in east and central Europe in relation to national GDP. This has resulted in a particularly large 'deficit' within their higher education system which suffers still from a poor physical infrastructure and a lack of basic resources such as books. 84. Against this challenging background Tempus made a relatively late start with the first projects being launched in 1992/93. At the time of writing only eight have been completed with a further four due to end in 1995/96. In these circumstances there seems to be a compelling case for continuing the launch of Tempus projects in each year within the Phare funding commitment. The Phare Multiannual Indicative Programme to 1999 envisages continued Tempus support to social and human resource development. The programme will need to address pressing needs in the areas of curriculum renewal, particularly where this supports Phare objectives, the upgrading of teaching skills, materials and facilities, and the modernisation and restructuring of the higher education system, including institutional management, to achieve greater diversity, flexibility and relevance to changing labour market needs. Moreover the contribution of Tempus in establishing and embedding the values of democracy and civil society should not be underestimated. Against this background it is considered that a sufficient number of JEPs to create and maintain a critical mass for change would need to be launched in each year that Phare funding is available to Albania. 3. TEMPUS IN THE TACIS COUNTRIES 85. The Council Decision of 29 April 1993 adopting Tempus II extended the programme to the Republics of the former Soviet Union. Preparatory activities commenced in 1993-94 for Belarus, the Russian Federation and Ukraine and the first JEPs were launched in these countries the following year. Eligibility has been progressively extended to other Republics, so that currently all 13 Tacis partner countries take part in Tempus. Of the MECU 565 allocated to date to the Tempus programme since its inception in 1990, approximately 8. 5% has been devoted to the Tacis countries, funding 240 one-year preparatory projects and 59 three-year full-scale JEPs. 86. Thus it is clear that Tempus Tacis is in its early stages of development, especially when measured against the more than 1200 JEPs launched in the Phare countries since 1990. This factor is reinforced when set against the huge challenges faced by the Tacis countries in reforming their political, social, judicial and economic structures. Recently a report of the European Bank for Reconstruction and Development stated: 22 'The magnitude of the task of creating the legal, institutional and human basis of the market economy has been generally underestimated'. With regard to higher education reform, the size of the task ahead is illustrated by the fact that in Russia alone 'the approximately 700 universities, institutes, colleges and other higher education institutions, many of which have century-old history and world prestige, unite around six million professors, teachers, researchers, students and postgraduates' 5. 87. When considering the future of Tempus Tacis beyond the end of Tempus II, these factors need to be taken into account. The following sections look in more detail at the principal challenges facing the future restructuring and development of the higher education systems of the Tacis countries and the strategic considerations relevant to efficient and effective programme delivery, leading to a proposed approach for a further phase of Tempus Tacis which will continue to make a valuable and distinctive contribution to the reform process. A. Key challenges for the future of higher education 88. Although each Tacis country has its own specific education reform agenda, certain common themes, largely stemming from their common Soviet legacy, can be recognised in the analysis of the challenges to be addressed. The balance of these of course vary, for example according to the size of the country concerned, but these key challenges form an important background to considering the future role of Tempus. 89. Broadly speaking, they can be divided into structural and didactic aspects, although it is of course important to recognise the close relationship between the two. Structurally, one of major items on the reform agenda is the implementation and management of the process of diversification, decentralisation and autonomy of higher education institutions. Diversification is being driven to a significant extent by the growing number of private-sector higher education institutions in several Tacis countries, although diversification is also apparent within the state sector as institutions seek to respond to legislative reform, financial constraints and the need to respond to a changing labour market. Diversification is also linked to the trend towards decentralisation of the financing and management of institutions. This is particularly relevant to the larger Tacis countries where central government is seeking to delegate a significantly larger role to regional and local authorities6. There is still much work to do in defining a satisfactory relationship between the various levels of competence within the new dispensation and in developing new supporting management structures and skills and financing mechanisms. The implications of this policy extends down to institutional level in the form of establishing institutional autonomy which is a common reform objective among the Tacis countries. However as has already been explained in respect of the Phare countries, although this is an essential tool to enable institutions to adapt to new demands and to exercise accountability to various stakeholders, it also requires new structures, skills and attitudes from both the academic and management staff of the institutions concerned. 'Forword' of the Catalogue of Higher Education Institutions (December 1994). 6 For example in Russia the proportion of federal funding for education had declined to 3. 8% by 1993. 23 90. This process of diversification and decentralisation is putting into particular focus the need to control quality and to maintain a certain degree of national cohesion in the future operation of higher education systems. Thus priority is being given to developing or overhauling national systems of standards and accreditation and this is likely to lead to an increasing emphasis on effective ways to operationalise the systems developed within the framework of the various levels of competence referred to above. 91. A major factor and constraint in this reform process is the dramatic overall reduction in the resources available for higher education. The shortage of funding is leading to staff demotivation, an internal 'brain drain' to other better paid professions, lack of basic teaching resources (such as textbooks, electronic/communication equipment and other material) and the inability to maintain the physical infrastructure (such as the repair and servicing of buildings). Living and study conditions for students have dramatically worsened, primarily due to lack of financial support. This can only put increased demands on the reform process and place even greater importance on skills to manage change in a proactive and cost-effective way. 92. One important aspect of this change, as stated above, is strengthening of the regional and local aspects of higher education. Where the regional dimension is important in a Tacis country, higher education institutions are being called upon to play a more active and distinctive role in economic and social activity, where appropriate within regional development plans, including contributing through retraining to the conversion of the military infrastructure to civilian uses. Greater local involvement is to a degree an objective common to all Tacis countries particularly in the context of developing closer links with enterprises through, for example, seeking opportunities for technology transfer, consultancy and continuing education. The establishment of what has been called a 'service function' to be provided by higher education institutions7, which should address the practical needs of various regional and local organisations and enterprises, will however only be possible with the appropriate structures, skills and attitudes to develop a closer relationship with 'external' partners. If through better and more productive links forged regionally and locally higher education institutions can establish greater relevance and added-value, this will open up the possibility of new or increased sources of funding to replace to a certain extent the reduced federal contribution. 93. Higher education institutions play an important role in the training of secondary school teachers, for example through the approximately 100 pedagogical institutes and universities in Russia, and reforms within the compulsory education sector are resulting in priority being given to restructuring the provision of (re)training for school teachers. The planned reforms in Russia8 foresee a move to a multi-level structure providing more differentiated training opportunities, including in-service continuing training, as well as the introduction of new teaching methodologies and new curricula, particularly in the humanities. Report 'Strengthening East-West Inter-University Cooperation: From Assistance to Partnership' prepared by the CRE, pp. 16-17. 8 Ministry of Education/UNESCO: 'National School Development Project', 1995; Ministry of Education: The Development of Education - National Report of the Russian Federation', 1994. 24 94. Key challenges in the didactic field focus on the need to reform over-specialised and rigid curricula, making them more relevant to the requirements of the labour market, modern technology and social and democratic development, as well as the introduction of new teaching methods. 95. Under the rigid system of the command economy the curricula of higher education institutions were (and to a certain extent still are) narrowly defined by sectoral ministries who guaranteed a job on graduation. With the gradual disintegration of this system higher education institutions are left with overspecialised, often over-long and increasingly unneeded courses which are producing graduates with inappropriate skills for the new labour market (particularly in technical subjects). Moreover, because skill needs were formerly dictated to higher education institutions, they lack the mechanisms, skills and attitudes to adapt to this changing market-driven environment. However change is made all the more urgent by the acute financial predicament of the higher education sector which cannot afford to offer courses which are no longer relevant. Developing closer links with local socio-economic partners is a necessary but not sufficient condition for the modernisation of study programmes which also calls for the internal institutional changes referred to above. 96. The situation is especially critical in those disciplines which were particularly subject to ideological influence but which in their contemporary form make an important contribution to economic and social restructuring. Principal amongst these are law and economics, although more generally the social sciences and humanities suffer in varying degrees the 'deficits' resulting from the communist era. 97. Predominantly teacher-focused and fact-based teaching methods also need radical modernisation. Higher education institutions are seeking the know-how to replace the former by more participative and innovative methods offering greater variety to suit the different learning styles and preferences of a student-focused approach. The emphasis on factual teaching needs to be reformed to encourage and develop in students the ability for critical analysis and to equip them to explore different options and to take the sometimes complex decisions that will face them in their personal and working lives. This should be complemented by developing a readiness and ability to be adaptable and flexible as these will be qualities particularly required by the market economy. The acquisition of life-long learning capabilities will form a crucial step in making higher education more relevant for changing labour market demands. B. Strategic Considerations 98. EU relations and cooperation with the Tacis countries are progressively being set within the framework of Partnership and Cooperation Agreements which focus on developing partnership relations of varying intensity within the context of supporting economic and democratic reform9. Each of these Agreements includes provisions relating to education and training and it is the implementation of these which should set the broad context for Tempus Tacis in the years ahead. Partnership and Cooperation Agreements have been signed with Belarus, Moldova, Kazakhstan, Kyrgyzstan, Russia and the Ukraine and are under negotiation with Armenia, Azerbaijan and Georgia. Exploratory discussions are being held with Turkmenistan and Uzbekistan. 25 99. The European Council of Cannes laid out the main political themes for the European Union's relations with Russia, envisaging in particular a 'substantial relationship of partnership'. The Commission has since communicated to the Council its detailed proposals for future relations with Russia, the Ukraine and the Transcaucasian Republics, and the policy framework set by the Council's eventual conclusions will subsequently have to be taken into account. 100. Tacis country programmes10 provide a more specific operational strategy for supporting economic and democratic reform objectives and it will be important to position future Tempus activity within this strategy in a way that ensures that the higher education sector is most effectively mobilised to contribute to these reform objectives. 101. In relation to the substantial reform needs of the Tacis countries, the financial resources for assistance are likely to remain limited which makes it all the more important to seek maximum cost-effectiveness in methods of programme delivery. The recent introduction of national priorities should make a significant contribution towards providing a sharper focus on country-specific priority areas and this trend to more precise targeting should be further strengthened in the future through the placing of these priorities within increasingly coherent national and perhaps regional policy frameworks. The initial phase of Tempus Tacis has also shown that the competitive approach towards project design, selection and implementation guarantees high quality and cost-effectiveness, particularly when set in the framework of targeted priorities. 102. Impact of the limited resources available can also be maximised through identifying key points of leverage to optimise the multiplier effect and by establishing the most productive synergy with other assistance activity in the higher education sector. This will involve continuing and further developing the policy of targeting centres of excellence and encouraging regional networking, while ensuring that these activities are carefully positioned to be complementary to and supportive of evolving local policy frameworks and development plans. Dissemination of project outputs will in general become increasingly important in the future, particularly in the context of creating stronger linkages with and addressing the needs of local industry and other non-academic organisations. 103. Change and modernisation within higher education systems are to a large extent dependent on significant improvements in the standard of management at all levels. This encompasses where appropriate the establishment of new management structures and will certainly involve the development of enhanced management skills and of more proactive and positive attitudes to implementing change. Not only will such measures facilitate restructuring and reform but, equally important, they will sustain it. C. Future orientations for Tempus Tacis 104. The policy orientations for Tempus will continue to be set through targeted national priorities to be defined in the general context of European Union relations with the Tacis countries concerned and the more specific context of Tacis 10 The new Tacis Council regulation of 29 January 1996 provides for four-year Indicative Programmes 1996-99 and for more detailed Action Programmes of variable duration. 26 programming. Positioning future Tempus projects within a framework of strengthened links between the policy and operational levels will lead to more productive synergy between the two and will provide a clear complementary role for Tempus in those cases where Tacis sector programmes are supporting the process of policy development. 105. The same applies with regard to the development and implementation of higher education policy in the Tacis countries, and indeed new higher education policies are needed to provide a coherent framework to maximise the value of projects at the institutional level. Tempus is well placed to complement Tacis activities supporting this process through using projects selectively to pilot, implement and embed policy at the operational level, for example in areas such as new educational management structures and practices. 106. Support to strengthening university management will continue to be a priority in the future. The trend towards increasing the degree of institutional autonomy will put new demands on university staff, and these will be all the greater within an environment of greatly reduced resources. Structures and skills to manage change on an institutional basis will be essential as universities seek to adapt their activities to new labour markets, develop new relationships with local and regional authorities and enterprises and as they assume greater responsibility for making the most cost-effective use of the more limited budgets which are likely to remain the norm. 107. Although in the future Tempus is likely to be addressing a greater proportion of 'horizontal' issues by complementing Tacis activity as outlined above, there will be a continuous need to support in a focused way subject-specific curriculum development. Areas for support should principally be those emanating from the needs of establishing a market economy and building democracy, taking into account local requirements such as the existing capabilities and absorptive capacities of institutions and Tacis country objectives. Examples of those subjects where there is a convergence of 'academic deficit', reform-driven needs and Tacis-defined objectives are legal training, economics, science and technology, environmental protection and education for democracy (civic studies). 108. In those Tacis countries where increasing the regional dimension of higher education is a priority objective, Tempus projects should wherever possible reflect this aspect in their design and selection. Ways should be sought to enhance the regional ownership and identity of projects and their linkage where appropriate to regional development plans. This should not only increase the relevance of projects to regional needs but is also likely to increase impact as the commitment of regional stakeholders is mobilised. 109. Networking and outreach on either a regional or local basis is likely to enhance the critical mass of activity and contribute to consolidation and impact. Encouragement should thus continue to be given to cooperative activity between higher education institutions in the same area and with clear common goals. However particular emphasis in the future should be placed on increasing institutions' capacity to develop links with 'external' partners in the social and economic field, in particular industry, and to provide services for enterprises and local/regional authorities through for example technology transfer, consultancy and continuing education. 27 110. In the above context, continued support should be given to the dissemination of Tempus outputs, and as the inventory of project outputs grows over the coming years consideration should be given as to whether there is scope for increasing the return on Tempus investments made by strengthening support for this activity. In this context, priority should be given to establishing and deepening interaction with relevant Tacis- supported projects. 111. One potentially important vehicle that could effectively support networking, outreach and dissemination, especially where distances are large, is the use of electronic media which could for example facilitate wider access to project outputs, assist cooperative activity or offer new options for teaching methods and delivery when face-to-face meetings are not always possible or necessary. Russia, which could benefit most from this medium, is paying particular attention to providing university access to networked IT services. u UL CONCLUDING REMARKS 112. In both the Phare and Tacis countries it is proposed that there will remain a valuable and distinctive role for Tempus beyond the conclusion of its second phase. In general this role should seek to capitalise on the Programme's strengths at the operational, institutional level and to use this substantial platform for change to: • support and develop closer synergy with higher education policy development and implementation. The value of complementarity could, for example, be further realised through the trialling of policy innovations in the form of pilot projects, establishing more systematic mutual feedback between the policy and operational levels and using institutional development projects and dissemination to establish and embed best practice. • mobilise and transfer, through well established networks and cooperative modalities, expertise within the higher education sector to address carefully-defined skill deficiencies in relation to Phare and Tacis reform objectives. • develop institutional capacities to manage change and to respond effectively to challenges within the economic anrj social environment. By placing particular emphasis on creating, strengthening and managing links with enterprises and other regional/local organisations, Tempus can contribute to establishing the processes, attitudes and skills necessary to maintain a sustainable relevance to economic and social needs. • capitalise on Tempus investments already made by using dissemination and networking to increase the critical mass for reform. 1 For example last year a concept was elaborated for the creation of a 'National Academic System of Databases of Higher Education Institutions in Russia'. This will contain information on the main activities of higher education institutions and will be made internationally available through the Internet. Also the Higher Education Committee has sponsored the creation of centres of new information technology in 60 universities and other higher education institutions, all of them with access to electronic mail. In the future Tempus should make most effective use of this developing infrastructure in Russia and elsewhere to maximise impact in the ways outlined above. 28 113. Especially in the associated Phare countries, this more managed strategy will require some further modification to the traditional 'bottom-up' approach in favour of a more hands-on role in project design and monitoring. A possible scenario for the future is for a relatively small number of carefully positioned and negotiated projects increasingly addressing horizontal areas such as standards, quality, management and the structure of qualifications relative to the needs of changing labour markets. This is likely to have implications for the current policy of consortium-driven project design and for the degree of monitoring necessary to ensure compliance with increasingly demanding, specific and strategic outcomes. In the Tacis countries, the 'bottom-up' approach as developed under Tempus II will remain a crucial prerequisite for successful programme delivery. 114. It is also envisaged that as the Tempus programme matures, especially in the Phare associated countries, and the emphasis shifts away from basic curriculum development, the requirement for full three-year JEPs may change towards shorter and more compact actions of perhaps no more than two years duration. Moreover consideration should also be given to providing more flexibility at the margins of the programme to enable it to be more responsive to needs arising in the shorter term, such as support for events which would bring together those working at the policy and levels, activities designed to contribute particular expertise to a operational problematical item on the reform agenda or initiatives to increase the impact of key Tempus outputs. 115. As was stated at the outset, the timescale for a further phase of Tempus is limited to the period of the current Phare and Tacis financing commitments. However this of course does not necessarily mean that all the reform needs in higher education will be met by the end of the decade, especially in the Tacis countries. Even in the Phare associated countries, variable progress towards the requirements of accession might result in continuing education and training needs in certain countries beyond the end of 1999 to which Tempus may be able to make a valuable contribution. The size of the reform challenges in the Tacis countries certainly makes it likely that there will still be an important role for Tempus in the next decade. 29 ISSN 0254-1475 COM(96) 197 final DOCUMENTS EN 16 11 Catalogue number : CB-CO-96-206-EN-C ISBN 92-78-03549-1 Office for Official Publications of thé European Communities L-2985 Luxembourg