9.3.2013

Official Journal of the European Union

C 70/2

OPINION OF THE EUROPEAN CENTRAL BANK

of 11 December 2012

on a proposal for a regulation of the European Parliament and of the Council on key information documents for investment products

(CON/2012/103)

2013/C 70/02

Introduction and legal basis

On 11 and 18 September 2012, the European Central Bank (ECB) received a request from the Council of the European Union and from the European Parliament, respectively, for an opinion on a proposal for a regulation of the European Parliament and of the Council on key information documents for investment products (1) (hereinafter the ‘proposed regulation’).

The ECB’s competence to deliver an opinion is based on Articles 127(4) and 282(5) of the Treaty on the Functioning of the European Union, since the proposed regulation contains provisions affecting the European System of Central Banks’ contribution to the smooth conduct of policies relating to the stability of the financial system, as referred to in Article 127(5) of the Treaty. In accordance with the first sentence of Article 17.5 of the Rules of Procedure of the European Central Bank, the Governing Council has adopted this opinion.

General observations

The ECB welcomes the proposed regulation, which aims to improve the transparency of retail investment products and ensure that retail investors are able to understand the key features and risks of investment products and to compare the features of different products. Appropriate disclosure facilitates consumer protection, which plays a key role in preserving the stability of the financial system.

Specific comments

1. Consistency with other European Union legislative initiatives

1.1.

Disclosure requirements should be accompanied by adequate supervisory powers, both at the national and Union level, to prohibit or restrict the marketing, distribution or sale of certain financial instruments in the case of a threat to the orderly functioning of financial markets, the stability of the whole or part of the financial system or investor protection (2). The ECB underlines the importance of ensuring that Union legislation in the area of financial services provides the European Supervisory Authorities (ESAs) and national competent authorities with adequate intervention powers. In particular, the banking and insurance supervisors may obtain intervention powers similar to those assigned to the European Securities and Markets Authority (ESMA) and to national competent authorities under the proposal for a regulation of the European Parliament and of the Council on markets in financial instruments and amending Regulation (EMIR) on OTC derivatives, central counterparties and trade repositories (hereinafter the ‘proposed MiFIR’) (3).

1.2.

In addition to the harmonisation of pre-contractual information introduced by the proposed regulation, the ECB recommends that market conduct requirements relating to the selling of financial products should also be made consistent across financial services sectors following, where appropriate, already proposed measures (4).

1.3.

Finally, a level playing field between different types of investment products should be ensured with a view to avoiding regulatory arbitrage at the expense of the investment products that are not covered by the proposed regulation, such as non-complex financial instruments. Disclosure requirements for other categories of financial products under existing Union legislation should be complemented with the standardised key information document (KID) introduced by the proposed regulation. This may, in particular, concern the products covered by Directive 2003/71/EC of the European Parliament and of the Council of 4 November 2003 on the prospectus to be published when securities are offered to the public or admitted to trading and amending Directive 2001/34/EC (5) and Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (6).

2. Responsibility to produce the KID

The proposed regulation allocates the responsibility for preparing the KID to the investment product manufacturer that is also liable on the basis of the information provided (7). However, retail investors are in direct contact with the distributors, and not the manufacturers, of investment products. Therefore, the distributor of an investment product should also be responsible for ensuring that a retail investor has an effective way of submitting a complaint against the manufacturer in relation to the KID and of initiating a redress procedure. Moreover, the ECB considers that the proposed arrangement should allow for effective redress procedures also in the event of cross-border disputes, in particular where the manufacturer is located in another Member State or in a third country.

3. Content of the KID

The ECB recommends that the proposed regulation explicitly requires the KID to include the following elements: (i) counterparty, operational and liquidity risks affecting the investment product; (ii) sensitivity of the products’ performance to effective stress scenarios; and (iii) the leveraged component of the product insofar as this component may multiply the applicable risks. Such additional information components will ensure that the KID does not lead investors to rely excessively on past performance patterns and that it provides a complete and fair outline of the risks related to investment products.

4. Administrative sanctions and measures

The ECB recommends that the proposed regulation should be amended so as to ensure harmonisation with other proposed Union legislation (8) introducing administrative sanctions, in particular by including provisions on administrative pecuniary sanctions.

Where the ECB recommends that the proposed regulation is amended, specific drafting proposals are set out in the Annex accompanied by explanatory text to this effect.

Done at Frankfurt am Main, 11 December 2012.

The President of the ECB

Mario DRAGHI

(1) COM(2012) 352 final.

(2) See paragraph 12.1 of ECB Opinion CON/2012/21 of 22 March 2012 on: (i) a proposal for a directive on markets in financial instruments repealing Directive 2004/39/EC of the European Parliament and of the Council; (ii) a proposal for a regulation on markets in financial instruments and amending Regulation (EMIR) on OTC derivatives, central counterparties and trade repositories; (iii) a proposal for a directive on criminal sanctions for insider dealing and market manipulation; and (iv) a proposal for a regulation on insider dealing and market manipulation (market abuse) (OJ C 161, 7.6.2012, p. 3). All ECB opinions are published on the ECB’s website at: http://www.ecb.europa.eu

(3) COM(2011) 652 final, see Articles 31 and 32.

(4) See, for instance, the rules concerning the allowed scope of execution-only services offered by investment firms contained in Article 25(3) of the proposal for a directive of the European Parliament and of the Council on markets in financial instruments repealing Directive 2004/39/EC of the European Parliament and of the Council, COM(2011) 656 final (hereinafter the ‘proposed MiFID’).

(5) OJ L 345, 31.12.2003, p. 64.

(6) OJ L 335, 17.12.2009, p. 1. See, in particular, Articles 183 to 185.

(7) See Article 5 of the proposed regulation.

(8) See Article 75(2)(e) and (f) of the proposed MiFID. See also Article 99a(2)(e) and (f) to be inserted in Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) (OJ L 302, 17.11.2009, p. 32) by the proposal for a directive of the European Parliament and the Council amending Directive 2009/65/EC on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) as regards depositary functions, remuneration policies and sanctions, COM(2012) 350 final (hereinafter the ‘proposed UCITS V directive’).

ANNEX

Drafting proposals

Text proposed by the Commission

Amendments proposed by the ECB (1)

Amendment 1

Article 25

‘Article 25

1. Four years after the date of entry into force of this Regulation, the Commission shall review this Regulation. The review shall include a general survey of the practical application of the rules laid down in this Regulation, taking due account of developments in the market for retail investment products. As regards UCITS as defined in Article 1(2) of Directive 2009/65/EC, the review shall assess whether the transitional arrangements under Article 24 of this Regulation shall be prolonged, or whether, following the identification of any necessary adjustments, the provisions on key investor information in Directive 2009/65/EC might be replaced by or considered equivalent to the key investor document under this Regulation. The review shall also reflect on a possible extension of the scope of this Regulation to other financial products.

2. After consulting the Joint Committee of the European Supervisory Authorities, the Commission shall submit a report to the European Parliament and the Council, accompanied, if appropriate, by a legislative proposal.’

‘Article 25

1. After the entry into force of this Regulation, the Commission shall review the Union legislation in the area of financial services with a view to assessing the merits of: (i) introducing standardised key information documents in accordance with the rules introduced by this Regulation in relation to classes of financial instruments not covered by this Regulation, in particular in relation to the products covered by Directive 2003/71/EC and Directive 2009/138/EC; (ii) introducing harmonised market conduct requirements relating to the selling of financial products; and (iii) granting the European Supervisory Authorities and the national competent authorities powers to intervene in relation to specific categories of financial products, including through product prohibitions introduced in the interests of investor protection and financial stability, taking account of the powers introduced in this respect by Regulation (EU) No xx/xx of the European Parliament and of the Council of [date] on markets in financial instruments and amending Regulation [EMIR] on OTC derivatives, central counterparties and trade repositories (2).

1 2. Four years after the date of entry into force of this Regulation, the Commission shall review this Regulation. The review shall include a general survey of the practical application of the rules laid down in this Regulation, taking due account of developments in the market for retail investment products. As regards UCITS as defined in Article 1(2) of Directive 2009/65/EC, the review shall assess whether the transitional arrangements under Article 24 of this Regulation shall be prolonged, or whether, following the identification of any necessary adjustments, the provisions on key investor information in Directive 2009/65/EC might be replaced by or considered equivalent to the key investor document under this Regulation. The review shall also reflect on a possible extension of the scope of this Regulation to other financial products.

2 3. After consulting the Joint Committee of the European Supervisory Authorities, the Commission shall submit a report to the European Parliament and the Council, accompanied, if appropriate, by a legislative proposal.

Explanation

A level playing field between different types of investment products should be ensured with a view to avoiding regulatory arbitrage at the expense of the investment products that are not covered by the proposed regulation, such as non-complex financial instruments. Disclosure requirements for other categories of financial products under existing Union legislation should be complemented with the standardised KID introduced by the proposed regulation. Similarly, market conduct requirements relating to the selling of financial products should be introduced in a harmonised manner in relation to a widely defined set of products. The ESAs and national competent authorities should at the same time be granted powers to intervene in relation to specific categories of financialproducts, including through their prohibition in view of investor protection and financial stability concerns. In this respect, account should be taken of the outcome of the ongoing legislative process in which such market conduct requirements and supervisory intervention powers are to be introduced through the proposed MiFIR.

Amendment 2

Article 8(2)

‘2. The key information document shall contain the following information:

(a)	under a section at the beginning of the document, the name of the investment product and identity of the investment product manufacturer;

(b)

under a section titled “What is this investment?”, the nature and main features of the investment product, including:

(i)	the type of the investment product;

(ii)	its objectives and the means for achieving them;

(iii)

an indication of whether the investment product manufacturer targets specific environmental, social or governance outcomes, either in respect of his conduct of business or in respect of the investment product, and if so, an indication of the outcomes being sought and how these are to be achieved;

(iv)	where the investment product offers insurance benefits, details of these insurance benefits;

(v)	the term of the investment product, if known;

(vi)	performance scenarios, if this is relevant having regard to the nature of the product;

(c)

under a section titled “Could I lose money?”, a brief indication of whether loss of capital is possible, including

(i)	any guarantees or capital protection provided, as well as any limitations to these;

(ii)	whether the investment product is covered by a compensation or guarantee scheme;

(d)

under a section titled “What is it for?” an indication of the recommended minimum holding period and the expected liquidity profile of the product including the possibility and conditions for any disinvestments before maturity, having regard to the risk and reward profile of the investment product and the market evolution it targets;

(e)	under a section titled “What are the risks and what might I get back?”, the risk and reward profile of the investment product, including a summary indicator of this profile and warnings in relation to any specific risks that may not be fully reflected in the summary indicator;

(f)	under a section titled “What are the costs?”, the costs associated with an investment in the investment product, comprising both direct and indirect costs to be borne by the investor, including summary indicators of these costs;

(g)	under a section titled “How has it done in the past?”, the past performance of the investment product, if this is relevant having regard to the nature of the product and the length of its track record;

(h)	for pension products, under a section titled “What might I get when I retire?”, projections of possible future outcomes.’

‘2. The key information document shall contain the following information:

(a)	under a section at the beginning of the document, the name of the investment product and identity of the investment product manufacturer;

(b)

under a section titled “What is this investment?”, the nature and main features of the investment product, including:

(i)	the type of the investment product;

(ii)	its objectives and the means for achieving them;

(iii)

(iv)	where the investment product offers insurance benefits, details of these insurance benefits;

(v)	the term of the investment product, if known;;

(vi)	performance scenarios, if this is relevant having regard to the nature of the product;

(c)

under a section titled “Could I lose money?”, a brief indication of whether loss of capital is possible, including

(i)	any guarantees or capital protection provided, as well as any limitations to these;

(ii)	whether the investment product is covered by a compensation or guarantee scheme;

(d)

(e)

under a section titled “What are the risks and what might I get back?”, the risk and reward profile of the investment product, including a summary indicator of this profile, and a warning that the return on the product may be negatively affected by the risks listed followed by a description of:

(i)	counterparty, operational and liquidity risks affecting the product;

(ii)	sensitivity of the products’ performance to effective stress scenarios;

(iii)

the leveraged component of the product insofar as this component may multiply the risks;

(iv)	and warnings in relation to any other specific risks that may not be fully reflected in the summary indicator;

(f)	under a section titled “What are the costs?”, the costs associated with an investment in the investment product, comprising both direct and indirect costs to be borne by the investor, including summary indicators of these costs;

(g)

under a section titled “How has it done in the past?”, the past performance of the investment product, if this is relevant having regard to the nature of the product and the length of its track record, including a warning that past performance does not guarantee future investment outcomes and that the risks referred to in the other sections of the KID may have a substantive negative impact on the investment;

(h)	for pension products, under a section titled “What might I get when I retire?”, projections of possible future outcomes.’

Explanation

The proposed additional information components will ensure that the KID does not lead investors to rely excessively on past performance patterns and that it provides a complete and fair outline of the risks related to investment products.

Amendment 3

Article 14

‘Article 14

The investment product manufacturer shall establish appropriate procedures and arrangements which ensure that retail investors who have submitted a complaint in relation to the key information document receive a substantive reply in a timely and proper manner.’

‘Article 14

The investment product manufacturer and the distributor shall establish appropriate procedures and arrangements which ensure that: (i) retail investors have an effective way of submitting a complaint against the investment product manufacturer and hence of initiating a redress procedure; (ii) retail investors who have submitted a complaint in relation to the key information document receive a substantive reply in a timely and proper manner; and (iii) effective redress procedures are also available to retail investors in the event of cross-border disputes, in particular where the investment product manufacturer is located in another Member State or in a third country.’

Explanation

The proposed regulation allocates the responsibility for preparing the KID to the investment product manufacturer that is also liable on the basis of the information provided. However, retail investors are in direct contact with the distributors, and not the manufacturers of investment products. Therefore, the distributor of an investment product should also be responsible for ensuring that a retail investor has an effective way of submitting a complaint against the manufacturer in relation to the KID and of initiating a redress procedure. The redress procedures should also be effective in the case of cross-border disputes, in particular where the investment product manufacturer is located in another Member State or in a third country.

Amendment 4

Article 19(2)

‘2. Member States shall ensure that the competent authorities have the power to impose at least the following administrative measures and sanctions:

(a)	an order prohibiting the marketing of an investment product;

(b)	an order suspending the marketing of an investment product;

(c)	a warning, which is made public and which identifies the person responsible and the nature of the breach;

(d)	an order for the publication of a new version of a key information document.’

‘2. Member States shall ensure that the competent authorities have the power to impose at least the following administrative measures and sanctions:

(a)	an order prohibiting the marketing of an investment product;

(b)	an order suspending the marketing of an investment product;

(c)	a warning, which is made public and which identifies the person responsible and the nature of the breach;

(d)	an order for the publication of a new version of a key information document;

(e)

in the case of a legal person, administrative pecuniary sanctions of up to 10 % of the total annual turnover of that legal person in the preceding business year; where the legal person is a subsidiary of a parent undertaking, the relevant total annual turnover shall be the total annual turnover resulting from the consolidated account of the ultimate parent undertaking in the preceding business year;

(f)	in the case of a natural person, administrative pecuniary sanctions of up to EUR 5 000 000, or in the Member States where the euro is not the official currency, the corresponding value in the national currency on the date of entry into force of this Regulation.’

Explanation

The recommended amendments would ensure harmonisation as regards the imposition of administrative pecuniary sanctions with other proposed Union legislation, in particular the proposed MiFID and the proposed UCITS V directive.

(1) Bold in the body of the text indicates where the ECB proposes inserting new text. Strikethrough in the body of the text indicates where the ECB proposes deleting text.

(2) OJ L …, …, p. ….’

9.3.2013

Official Journal of the European Union

C 70/14

Portuguese national procedure for allocating limited air traffic rights

2013/C 70/07

In accordance with Article 6 of Regulation (EC) No 847/2004 on the negotiation and implementation of air service agreements between Member States and third countries, the European Commission publishes the following national procedure for the distribution of traffic rights among eligible European Union air carriers where they are limited under air service agreements with third countries.

MINISTRY OF ECONOMIC AFFAIRS AND EMPLOYMENT

Decree-Law No 116/2012 of 29 May 2012

Air travel satisfies needs and performs functions the importance of which in the political and geographical context of our country justifies the State’s commitment to drawing up institutional measures which will enable it to take the most appropriate steps to strike a fair balance between the many interests, both public and private, connected with air transport activities in general.

However, matters relating to air transport, in particular the aspect of access to the market, are at present still regulated, in the area of non-Community air transport, by Decree-Law No 66/92 of 23 April 1992.

All aspects of the aforementioned national legislation underwent significant change after the European Union introduced rules in the area of intra-Community air transport governing access to the Community market in air transport by publishing three legislative packages, the latest of which is called the ‘third package for the liberalisation of air transport within the Community’ and more recently by the publication of Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008 on common rules for the operation of air services in the Community.

The latter Community Regulation, in addition to making changes to the system, consolidates in a single legal instrument the previous systems which were contained in Council Regulation (EEC) No 2407/92 on licensing of air carriers, Council Regulation (EEC) No 2408/92 on access for Community air carriers to intra-Community air routes and Council Regulation (EEC) No 2409/92, all of 23 July 1992.

As a result of not having undergone any changes until now, non-Community air transport is still regulated by the national provisions in the abovementioned Decree-Law, notwithstanding the rules laid down respectively in bilateral air services agreements and other related bilateral and multilateral legal and administrative instruments concluded between States in the field of international relations between Member States and third countries and also those concluded between the European Union, the Member States and third countries.

Thus, following the judgments of the Court of Justice in Cases C-466/98, C-467/98, C-468/98, C-469/98, C-471/98, C-472/98, C-475/98 and C-476/98, it is clear that the Community has competence with respect to various aspects which must be present in bilateral air services agreements concluded between Member States and third countries.

Regulation (EC) No 847/2004 of the European Parliament and of the Council of 29 April 2004 on the negotiation and implementation of air services agreements between Member States and third countries was subsequently published to that effect.

Thus, where it is apparent that the subject-matter of an agreement falls partly within the competence of the Community and partly within that of its Member States, it is essential to ensure close cooperation between the Member States and the Community institutions, as required by the above Regulation.

The Regulation further provides that Member States should establish non-discriminatory and transparent procedures for the distribution of traffic rights between Community air carriers, while safeguarding the need, in the application of those procedures, to preserve continuity of air services.

It is thus clear that the national rules under Decree-Law No 66/92 of 23 April 1992 are totally out of kilter with the new requirements with regard to the distribution of traffic rights in the context of non-Community air transport since it predates the more recent rules governing the negotiation and implementation of air services agreements between Member States and third countries laid down by the European Union. In the case of some of its provisions, it is even contrary to Community law, which means that it needs to be harmonised and brought into conformity with the entire framework of Community legislation in force.

The main purpose of this Decree-Law is therefore to establish a national legal framework which embodies the new Community framework with regard to the distribution of traffic rights and builds on it from the point of view of the national interest in a way which is consistent with the principles of Community law.

Since the market in non-Community air transport must be the subject of rules of law which are consistent and interdependent, so as to constitute a single regulatory system, this Decree-Law aims to create a system which clarifies and lays down the conditions and procedures with regard to the distribution of traffic rights in the context of non-Community scheduled air transport activities.

It provides that the pursuit of non-Community scheduled air transport activities is subject to having an operating authorisation issued by the National Civil Aviation Institute (INAC), I.P.

In terms of access to the market, the principle of non-discriminatory treatment applies, whereby all Community air carriers are permitted access to the routes available in the air services agreements concluded by Portugal.

Thus, in accordance with Article 5 of Regulation (EC) No 847/2004 of 29 April 2004, this Decree-Law establishes a non-discriminatory and transparent procedure for the distribution of traffic rights in situations where an air services agreement, or any amendments to it, provides for a quantitative limitation on the use of the traffic rights available or on the number of air carriers eligible to benefit from those traffic rights.

It also expressly provides that air carriers may, where so permitted by the air services agreement and in accordance with its provisions, conclude private commercial agreements with each other, such as the combination of air services and the conclusion of code-sharing agreements, for the purposes of operating scheduled routes under a single operating authorisation held jointly between them, as provided for in Article 15(5) of Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008.

Finally, it establishes a scheme of penalties relating to the procedure for authorising non-Community scheduled air services, characterising infringements according to the particular extent required by the interests to be protected.

The associations representing the sector and the governmental bodies of the autonomous regions have been consulted.

Thus:

In accordance with Article 198(1)(a) of the Portuguese Constitution, the Government hereby decrees as follows:

CHAPTER I

GENERAL PROVISIONS

Article 1

Subject matter and scope

1. This Decree-Law establishes the legal framework for access to the market and for operating traffic rights in non-Community scheduled air transport.

2. This Decree-Law applies to Community air carriers who intend to operate scheduled air services on routes where Portugal is the origin or the destination.

3. This Decree-Law does not apply to the operation of air services on intra-Community routes as provided for in Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008.

Article 2

Definitions and abbreviations

For the purposes of this Decree-Law, the definitions laid down in Regulation (EC) No 1008/2008 of the European Parliament and of the Council are hereby adopted, in addition to the following:

(a)	‘operating authorisation for scheduled air services’ means a right granted to an air carrier to operate non-Community scheduled air services;

(b)	‘designation’ means the act by which Portugal notifies the other State party to the air services agreement of the undertaking or undertakings to which the traffic rights available in the agreement have been awarded;

(c)

‘traffic right’ means the right to operate air services between two airports. A number of airports (system of airports) which serve the same locality are considered to be a single airport, as laid down in the air services agreement. A traffic right is expressed as a geographical or physical specification, or combination of specifications, identifying the number of air carriers to be designated, and the capacity and purpose of the transport to be carried out;

(d)	‘IATA’ means the International Air Transport Association;

(e)	‘INAC, I.P’ means the Instituto Nacional de Aviação Civil (National Civil Aviation Institute);

(f)	‘IATA winter season’ means the period between the last Sunday of October and the last Saturday of March;

(g)	‘IATA summer season’ means the period between the last Sunday of March and the last Saturday of October;

(h)	‘operating air carrier’ means an air carrier that performs or intends to perform a flight under a contract with a passenger or on behalf of another legal or natural person having a contract with that passenger;

(i)

‘scheduled air service’ means a series of flights possessing all the following characteristics:

(i)	on each flight, seats and/or capacity to transport cargo and/or mail are available for individual purchase by the public (either directly from the air carrier or from its authorised agents);

(ii)	it is operated so as to serve traffic between the same two or more airports, either according to a published timetable, or with flights so regular or frequent that they constitute a recognisably systematic series;

(j)	‘non-Community scheduled air service’ means a scheduled air service provided between points situated in Portugal and points situated in the territory of another country or countries.

CHAPTER II

OPERATING AUTHORISATION FOR NON-COMMUNITY SCHEDULED AIR SERVICES

SECTION I

Procedures

Article 3

Operating authorisation

1. The operation of non-Community scheduled air services is subject to having an authorisation issued by INAC, I.P.

2. Operating authorisations granted under this Decree-Law shall be non-transferable.

Article 4

Reporting obligation

INAC, I.P. must publish and keep up-to-date on its website the following information relating to traffic rights which are available for operation:

(a)	the programme of bilateral negotiations on air services which are planned with third countries;

(b)	the inventory of traffic rights which are available for operation;

(c)	the requests for operating authorisations submitted under the terms of this Decree-Law;

(d)	the list of authorisations granted under the terms of this Decree-Law;

(e)	any decisions of INAC, I.P. changing or withdrawing the authorisations under the terms of this Decree-Law;

(f)	the decisions of appeals referred to the court as provided for in Article 13 of this Decree-Law.

Article 5

Application

1. Community air carriers who intend to operate one or more of the traffic rights published under the terms of the previous Article must submit an application to this effect to INAC, I.P, in Portuguese, containing the following:

(a)	identification of the applicant;

(b)	details of the scheduled air services which it intends to operate;

(c)	details of the nature of the traffic to be transported by the applicant;

(d)	details of the IATA season or seasons when the applicant wishes to operate;

(e)	intended date of commencement of operations.

2. The application must also be supported by the following documents:

(a)	valid operating authorisation issued under Council Regulation (EEC) No 2407/92 of 23 July 1992 or Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008;

(b)	an air operator's certificate which is valid and appropriate for the operation of the scheduled air services covered by the application;

(c)	a document establishing that the applicant’s situation with respect to social security contributions is in conformity with Portuguese law;

(d)	a statement establishing that the applicant’s situation with respect to tax is in conformity with Portuguese law.

3. The application shall also be supported by the following:

(a)	operating schedule for the air services applied for by the applicant specifying the days of operation, timetables and aircraft to be used, configuration of the passenger cabin, number of seats offered and cargo capacity;

(b)	traffic forecasts;

(c)	tariff structure to be applied by the applicant;

(d)	details of the resources and services, internal or external, to be used by the applicant in providing the service;

(e)	details of any leasing contracts concluded or to be concluded by the applicant;

(f)	details of any alliances, partnerships or agreements concluded or to be concluded by the applicant for the purpose of performing the services applied for;

(g)	details of the conditions under which it will provide the service, as provided for in Article 11;

(h)	reservations system;

(l)	details about applicant’s previous performance in respect of regularity and punctuality;

(m)	details of measures made available in terms of passenger protection.

4. The application must also be accompanied by evidence of compliance with the requirement relating to the economic and financial capacity of the applicant under the terms of Article 9 of this Decree-Law.

5. Where a carrier intends to operate traffic rights granted under different air services agreements, it must submit a separate application for the traffic rights relating to each of the agreements.

6. Supporting material common to the applications mentioned in the previous paragraph may be submitted jointly.

7. The applicant shall be exempt from the requirement to submit the documents referred to in the foregoing paragraphs if INAC, I.P. already holds them in its records, provided that they are up-to-date and legally valid.

8. Applications must be submitted at least 60 working days ahead of the start of the IATA season for which operations are scheduled, except in the case of limited traffic rights where the minimum notice period is 120 working days.

9. Within a maximum of 10 working days from the end of the period mentioned in the previous paragraph, INAC, I.P. shall make a preliminary assessment of the file and if there are compulsory supporting documents that are missing or additional information is needed, it shall notify the applicant that the missing documents or information requested must be provided or the irregularities corrected within 10 working days otherwise the application will be automatically declined on expiry of this time limit.

Article 6

Publicity

After the periods provided for in paragraph 9 of the previous Article, INAC, I.P. shall publicise the application by way of a notice published in the Diário da República, Series II, so that anyone with a legitimate interest may, within 15 working days from the date of publication, comment on the application or submit an application in accordance with the previous Article.

The period referred to in the previous paragraph applies only in the case of publicising applications relating to limited traffic rights provided for in Article 11(1).

SECTION II

Granting an operating authorisation

Article 7

Conditions

An operating authorisation for non-Community scheduled air services shall be granted to an air carrier that cumulatively fulfils the following conditions:

(a)	it must hold a valid operating authorisation issued under Council Regulation (EEC) No 2407/92 of 23 July 1992 or Regulation (EC) No 1008/2008 of the European Parliament and of the Council of 24 September 2008;

(b)	it must be able to demonstrate that it has the technical, economic and financial capacity appropriate to the air services which it wishes to operate;

(c)	it must fulfil the conditions governing designation laid down in the air services agreement(s);

(d)	it must hold an insurance contract appropriate to the nature of the air services which it wishes to operate;

(e)	its situation with respect to tax and social security contributions must be in conformity with Portuguese law.

Article 8

Technical capacity

1. Technical capacity shall be attested by possession of a valid air operator’s certificate showing, in accordance with the specific legislation applicable, that the air carrier meets the technical standards for operation of the services applied for.

2. The air carrier must have a fleet suitable for operating the services applied for, comprised of aircraft in its ownership or aircraft which are subject to a leasing contract.

Article 9

Economic and financial standing

For the purposes of Article 5(4), the economic and financial capacity of the applicant company shall be determined by evidence that operation of the air services in question is an economically viable activity and does not compromise the financial capacity of the air carrier.

Article 10

Granting of the authorisation

1. INAC, I.P. shall give a decision on each application for an authorisation within a maximum of 20 working days from the date on which full supporting documentation is submitted by the applicant.

2. Whenever INAC, I.P. makes a notification in accordance with the provisions of Article 5(9), the time limit laid down in paragraph 1 of this Article is suspended until INAC, I.P. receives the missing documents or the correction of the information provided.

3. Where an authorisation is awarded in accordance with the conditions laid down in the previous articles, it shall be published in the Diário da República.

Article 11

Limited traffic rights

1. In the event of competing applications and the limitation of either the traffic rights or the number of Community air carriers permitted to exercise these rights, the various requests shall be decided on within a maximum of 60 days from the date on which full supporting documentation is submitted by all applicants, provided that the applications meet the requirements laid down in Article 7 of this Decree-Law.

2. For the purposes of this decision, INAC, I.P. may ask for additional information and, where appropriate, hold hearings, which shall suspend the time limit laid down in the previous paragraph.

3. In any event, the operating authorisation shall only be issued to the applicant air carrier under the conditions provided for in Article 7 of this Decree-Law, provided that the application meets the conditions laid down in Article 5 of this Decree-Law.

4. Subject to the provisions of the air services agreement in question, competing applications shall be assessed by INAC, I.P. on the basis of the following criteria:

(a)	the satisfaction of air transport demand with regard to, amongst other things, mixed or freight-only services, direct or indirect services, service frequencies and days of service;

(b)	the tariff policy, particularly ticket prices, provision for reductions and other promotions;

(c)	overall journey time, from origin to destination;

(d)	maximum time needed to replace an aircraft in the event of an operational irregularity attributable to the carrier;

(e)	the quality of the service, particularly with regard to the type and layout of the aircraft and the existence of sales offices open to the public;

(f)	contribution to ensuring a satisfactory level of competition;

(g)	the intended date for the launch of the service;

(h)	the presence of guarantees with regard to the continuity of the service;

(i)	the potential for increasing the market share of Community air carriers on the route in question;

(j)	adapting timetables and the type of aircraft to airport capacity;

(l)	the environmental performance of the aircraft used;

(m)	the development of connecting flights for passengers;

(n)	the contribution to the promotion of the business location, including tourism;

(o)	existence of a Portuguese-language sales service, in the case of the routes between Portugal and countries where Portuguese is an official language;

(p)	the existence of a majority of the cabin crew that speaks and understands Portuguese, in the case of the routes between Portugal and countries where Portuguese is an official language.

5. The following criteria may also be taken into account:

(a)	the existence of a Portuguese-language sales service;

(b)	a majority of the cabin crew able to speak and understand Portuguese;

(c)	the air carrier’s situation with regard to payment of aeronautical taxes in Portugal;

(d)	in addition, further criteria may be taken into consideration provided applicants are notified of this in good time before a final decision is taken on their applications.

Article 12

Selection procedure

1. Once the assessment procedure provided for in the previous paragraph is finished, INAC, I.P. shall publish a draft decision on its website.

2. Interested parties may submit written comments within 10 working days of the publication of this document.

3. The final decision on the authorisation to operate the air services shall be taken within a maximum of 20 working days from the expiry of the period provided for in the previous paragraph.

Article 13

Appeal

A final decision given pursuant to the selection criteria laid down in the previous Article may be appealed before the administrative court.

Article 14

Designation

1. Following publication of the authorisation, Portugal shall designate the air carrier authorised to operate the route in question to the competent body of the other State party to the air services agreement, whenever this is provided for in the relevant agreement.

2. In the situations provided for in Article 15, the operating air carrier shall be designated.

3. Exercise of the rights conferred by the authorisation shall be subject to acceptance of the designation by the other State party to the air services agreement, where provided for in the agreement. This acceptance shall be immediately notified by INAC, I.P. to the relevant authorisation holder.

SECTION III

Private commercial agreements to operate air services

Article 15

Code-sharing agreement

1. Air carriers may, where so permitted by the air services agreement and in accordance with its provisions, conclude code-sharing agreements for the operation of non-Community scheduled air services.

2. In the circumstances provided for in the previous paragraph, the application shall be made, supported and analysed jointly on the basis of the obligations arising from the code-sharing agreement concluded between the parties.

3. The submission of a joint application, with the requisite adjustments to suit what was agreed between the parties, shall not exempt the operating air carrier from complying with the terms and conditions of the operating authorisation laid down in this Decree-Law.

4. The authorisation granted under the terms of this Article shall give rise to the issue of a single authorisation, and can include code-sharing agreements to be concluded, provided that they are allowed under the air services agreement.

CHAPTER III

CHANGES TO THE AUTHORISATION

Article 16

Validity

1. The authorisation shall remain valid so long as it satisfies the conditions negotiated in the air services agreement and so long as the air carrier fulfils the obligations laid down in this Decree-Law.

2. The validity of the operating authorisation shall always be subject to possession of a valid and effective operating licence and air operator's certificate.

Article 17

Amendment of the authorisation

The operating authorisations can be amended by INAC, I.P. where this is justified by the public interest or requested by the authorisation holder, provided that INAC, I.P. approves the requested amendment and the conditions for distributing the limited traffic rights are not called in question.

Article 18

Withdrawal of authorisation

1. INAC, I.P. must withdraw authorisations which have been granted under this Decree-Law in the following cases:

(a)	if the air carrier fails to commence operation of the service within two consecutive scheduling periods;

(b)	if the air carrier suspends or interrupts operation of the service on grounds not constituting force majeure and does not restart such services within six months;

(c)	if there are other special reasons for doing so.

2. INAC, I.P. can withdraw authorisations which have been granted under this Decree-Law in the following cases:

(a)	if the air carrier fails to fulfil the terms and conditions on which the authorisation was awarded and maintained;

(b)	if the air carrier provides false data and information on the matters referred to in Article 11 which leads to the incorrect application of the criteria laid down therein;

(c)	on grounds of public interest;

(d)	failure to pay the charges laid down in Article 27;

(e)	if the traffic rights have not been used in an efficient manner by the air carrier or if the carrier in question infringes EU or national competition law.

3. For the purposes of paragraph 1(b) of this Article, force majeure shall be considered to be any unforeseeable or insurmountable event, the effects of which are beyond the will and control of the air carrier and have an adverse impact on the operation of the route, in particular:

(a)	natural disasters;

(b)	meteorological conditions preventing the flight in question from being operated;

(c)	risks to the safety of civil aviation;

(d)	unexpected deficiencies in the safety of the flight;

(e)	strikes affecting the operation of the air carrier;

(f)	acts of terrorism or war, declared or otherwise;

(g)	breakdown of law and order, in particular for reasons of political instability.

4. Authorisations may also be withdrawn at the request of the authorisation holder.

Article 19

Supervision

Carriers that are authorised to operate non-Community scheduled air services under the terms of this Decree-Law must provide each year, within the time limits laid down by INAC, I.P., traffic statistics, annual operating accounts and any other material useful to INAC, I.P. for supervision purposes or necessary for the proper implementation of this Decree-Law.

Article 20

Publication

Decisions by INAC, I.P. which amend or withdraw authorisations under this Decree-Law shall be published in the Diário da República, Series II.

CHAPTER IV

CONDITIONS FOR THE EFFECTIVE OPERATION OF AIR SERVICES

Article 21

Schedule and timetable

1. Schedules and timetables relating to the air services authorised shall be subject to prior approval by INAC, I.P. where this is provided for in the air services agreement.

2. Authorisation holders shall adhere to the approved schedules and timetables, which must be advertised to the general public.

Article 22

Amendments

1. Any amendments to the approved schedules, such as a change to the frequency, day or time of the services, a change of aircraft or the cancellation of a flight or the introduction of additional flights, shall be subject to prior authorisation by INAC, I.P. where this is provided for in the air services agreement except where such amendments are made as a result of unforeseeable circumstances or on grounds of force majeure.

2. For the purposes of the previous paragraph, authorisation holders must obtain the necessary approvals from the aeronautical authority of the other State party to the air services agreement where provided for in the agreement.

CHAPTER V

MONITORING AND SYSTEM OF PENALTIES

Article 23

Inspection

1. It shall be the responsibility of INAC, I.P. to monitor compliance with the provisions of this Decree-Law, without prejudice to the dedicated monitoring powers conferred by law on other bodies, which must inform INAC, I.P. of the outcome of their activities.

2. Air transport undertakings must provide INAC, I.P. with all the material required for monitoring purposes within 10 working days from the date of the relevant request.

Article 24

Infringements

1. For the purposes of applying the scheme applicable to infringements of civil aviation rules, approved by Decree-Law No 10/2004 of 9 January 2004, the following shall constitute very serious infringements:

(a)	operation of traffic rights by an entity not authorised for that purpose in accordance with this Decree-Law;

(b)	operation of traffic rights by an entity which has not be designated for that purpose in accordance with this Decree-Law;

(c)	operation of an authorisation by an entity other than the authorisation holder;

(d)	making false statements in the course of the authorisation procedure;

(e)	operation of traffic rights by an entity authorised for that purpose without the compulsory valid insurance;

(f)	failure by the authorised entities to provide INAC, I.P. with annual traffic statistics and annual operating accounts and refusal to supply the material which INAC, I.P. requests for the purposes of monitoring compliance with the provisions of this Decree-Law;

(g)	amendments to approved schedules in relation to the frequencies, days or times of services, aircraft changes, flight cancellations or the introduction of additional flights without prior authorisation from INAC, I.P., in accordance with Article 22(1).

2. For the purposes of applying the scheme applicable to infringements of civil aviation rules, approved by Decree-Law No 10/2004 of 9 January 2004, the following shall constitute serious infringements:

(a)	the air carrier fails to commence operation of the non-Community scheduled services within the time limit established for that purpose or suspends or interrupts that operation on grounds which do not constitute force majeure, in accordance with Article 18(2);

(b)	failure to submit for approval by INAC, I.P. the schedules and timetables relating to the authorised air services, in accordance with Article 21(1);

(c)	failure to adhere to the schedules and timetables approved by INAC, I.P., in accordance with Article 21(2);

(d)	failure to publish the schedules and timetables approved by INAC, I.P., in accordance with Article 21(2);

(e)	failure to pay the charges laid down in Article 27.

3. Negligence and attempts to commit an offence are also punishable.

Article 25

Infringement proceedings

1. It shall be the responsibility of INAC, I.P., in accordance with Decree-Law No 145/2007 of 27 April 2007, to initiate and conduct infringement proceedings and to apply fines and additional penalties.

2. The infringements provided for in this Decree-Law shall be subject to the scheme applicable to infringements of civil aviation rules, approved by Decree-Law No 10/2004 of 9 January 2004.

Article 26

Additional penalties

1. In accordance with Section II, Chapter II, of Decree-Law No 10/2004 of 9 January 2004, and Article 21 of the General Rules on Infringements, approved by Decree-Law No 433/82 of 27 October 1982, as amended by Decree-Law No 356/89 of 17 October 1989, by Decree-Law No 244/95 of 14 September 1995, by Decree-Law No 323/2001 of 17 December 2001 and by Law No 109/2001 of 24 December 2001, INAC, I.P. may decide to apply the additional penalty of prohibition from pursuing air transport activities for up to two years in accordance with Article 14 of Decree-Law No 10/2004 of 9 January 2004, in addition to the fine for infringement laid down in Article 24(1)(a), (b), (c) and (d).

2. Penalties for infringements may be published in accordance with Article 13 of Decree-Law No 10/2004 of 9 January 2004.

CHAPTER VI

FINAL AND TRANSITIONAL PROVISIONS

Article 27

Charges

1. An initial charge is payable for submitting the application for an operating authorisation and also for granting the authorisation, which will be increased by 50 % in the circumstances provided for in Articles 11 and 12 of this Decree-Law.

2. Holders of operating authorisations provided for in this Decree-Law must also pay an annual charge calculated on the basis of the costs involved in supervising the implementation of the legal framework established in this Decree-Law.

3. The charges provided for in this Article shall be decided by order of the Minister responsible for the civil aviation sector.

4. Pending publication of the order referred to in the previous paragraph, all legislative provisions relating to the charges laid down in this Article shall remain in force.

Article 28

Repeal

Without prejudice to Article 27(4), Decree-Law No 66/92 of 23 April 1992 is repealed.

Article 29

Entry into force

This Decree-Law shall enter into force on the day after its publication.

9.3.2013

Official Journal of the European Union

C 70/31

Publication of an application pursuant to Article 50(2)(a) of Regulation (EU) No 1151/2012 of the European Parliament and of the Council on quality schemes for agricultural products and foodstuffs

2013/C 70/13

This publication confers the right to oppose the application, pursuant to Article 51 of Regulation (EU) No 1151/2012 of the European Parliament and of the Council (1).

SINGLE DOCUMENT

COUNCIL REGULATION (EC) No 510/2006

on the protection of geographical indications and designations of origin for agricultural products and foodstuffs (2)

‘PAN DE ALFACAR’

EC No: ES-PGI-0005-0890-05.09.2011

PGI ( X ) PDO ( )

1. Name:

‘Pan de Alfacar’

2. Member State or Third Country:

Spain

3. Description of the agricultural product or foodstuff:

3.1. Type of product:

Class 2.4.

Bread, pastry, cakes, confectionery, biscuits and other baker's wares

3.2. Description of product to which the name in point 1 applies:

The name ‘Pan de Alfacar’ refers to bread made by hand for at least one stage of the bread-making process and which has one of the following shapes: bun, roll, ring, rounded (produced from the same dough).

Buns are elongated in shape with pointed ends and a single longitudinal cut is made in the bun; the weights sold are:

—	80 g, 20 ± 3,0 cm long and 7,5 ± 2,0 cm wide,

—	125 g, 24 ± 3,0 cm long and 9 ± 2,0 cm wide, and

—	250 g, 38 ± 4,0 cm long and 10 ± 2,0 cm wide.

Rolls are elliptical in shape with a flattened tubular cross-section and axial asymmetry. A single longitudinal and vertical cut is made in the thickest part of the roll. The part of the roll which is joined manually is thinner and no cuts are made. Rolls come only in one size, 250 g, and they are: 34 ± 3,0 cm long, 14 ± 2,0 cm wide, with a maximum internal diameter of 24 ± 3,0 cm.

Rings are circular in shape with a tubular cross-section and a more or less axial symmetry. They are identified by a manual join. A vertical cut is made around the top of the ring apart from at the join. Rings come only in one size, 500 g, and they have: an external diameter on top of 28 ± 3,0 cm and an internal diameter of 14 ± 2,0 cm.

The rounded shapes are perfectly round and slightly curved on top. The top has a pattern slashed into it (or ‘painted’ on it) in the form of a grid within a frame of four perpendicular cuts. The three weights sold are: 250 g (17 ± 2,0 cm lower diameter), 500 g (24 ± 2,0 cm lower diameter) and 1 000 g (32 ± 3,0 cm lower diameter).

The bread consists of 65 % to 80 % dry matter. The crumb of the bread is a creamy white, flexible and soft. There are many randomly scattered holes which vary in size. It has a characteristic aroma of fermented vinegar and/or milk, which may be mild or relatively strong. The crust is medium-thick to thick, more than 1,5 mm, golden, without flour dusting, slightly shiny and quite smooth.

3.3. Raw materials (for processed products only):

‘Pan de Alfacar’ is made from wheat flour with a low baking capacity Formula with a stretch-resistance and dough-extensibility ratio (P/L) of between 0,3 and 0,6, natural yeast with a pH of between 4 and 6 (between 10 % and 25 % of the flour used to make the dough) produced by an earlier fermentation process during the bread-making, Alfacar spring water (between 55 litres and 62 litres per 100 kg of flour), yeast culture (Saccharomyces cerevisiae L.) (maximum 3 % of the flour weight in the dough) and edible salt within the limit set by the technical health specifications in force.

3.4. Feed (for products of animal origin only):

—

3.5. Specific steps in production that must take place in the defined geographical area:

The entire bread-making process takes place in the geographical area defined in Section 4.

3.6. Specific rules concerning slicing, grating, packaging, etc.:

—

3.7. Specific rules concerning labelling:

The bread will be sold bearing a guarantee seal in the form of a wafer.

The label must bear the name ‘Pan de Alfacar’ and the symbol of the European Union must also be visible on it.

This guarantee seal will be awarded to any economic agent that meets the product specifications for ‘Pan de Alfacar’.

4. Concise definition of the geographical area:

The municipal areas of Alfacar and Víznar, which are both located in the north-east corner of the fertile plain of Granada, share similar environmental characteristics: Alfacar spring water, a continental sub-humid Mediterranean climate, which is typical for Mediterranean mountain areas, and a micro-environment which is influenced by the Sierra de Huétor Nature Reserve. These two municipal areas have a surface area of 29,4 km2 in total, with an average altitude of 980 m above sea level for rural settlements.

5. Link with the geographical area:

The link between the product and the name ‘Pan de Alfacar’ is based mainly, but not solely, on its historical and commercial reputation, which it gained over the course of the 20th century. However, the link is even more a geographical one, as the specific characteristics of this product are attributable above all to its origin.

5.1. Specificity of the geographical area:

Natural factors

—

Local geographical area with specific environmental characteristics:

The bread-making area, which is in the foothills of the Sierra de Alfaguara next to the Sierra de Huétor Nature Reserve and near the Sierra Nevada National Park, has a specific micro-environment which influences the bread made. Firstly, there is a native micro-flora, formed in yeast cultures by lactic and acetic bacteria, which has an effect on the microbiological balance of the natural yeast used in bread-making. Secondly, the climate is specific to Mediterranean mountain areas (a continental sub-humid Mediterranean climate) and it has, along with the native microbiology, an effect on the biological fermentation processes.

—

Specific local hydrogeological resources:

In the ‘Pan de Alfacar’ bread-making area, there is a large aquifer system which rises naturally in the well-known Alfacar spring. It always displays the same hydrothermal, hydrochemical and isotopic characteristics, regardless of the climatic conditions. The water from this spring has three main physical and chemical characteristics:

—	medium mineralisation,

—	medium-high alkalinity,

—	medium-high hardness.

Human factors

—	The traditional methods used to make ‘Pan de Alfacar’ can be summarised as follows:

—	use of highly hydrated dough (between 55 % and 62 %) for bread-making which results in semi-soft dough,

—	a final mixing and kneading temperature for the dough of between 21 °C and 27 °C,

—	using a pre-ferment already fermented in wooden trays,

—	letting blocks or balls of dough rest in natural conditions: Blocks of dough are left to rest after mixing and kneading for a period of 5 to 20 minutes. Balls of dough are left to rest for a minimum of 15 minutes,

—	manually shaped,

—	single and continuous fermentation in natural conditions for one to two hours,

—	longitudinal and vertical cut of individual pieces of bread,

—	baking in ovens with a refracting floor,

—	oven-baking ‘Pan de Alfacar’ from the second load onwards.

5.2. Specificity of the product:

—	Dry matter in ‘Pan de Alfacar’: between 65 % and 80 %.

—	Characteristic aroma: influenced by the aromas produced in dough fermentation (acetic and/or lactic fermentation), mild to relatively strong.

—

The crumb of ‘Pan de Alfacar’:

—	texture: flexible and soft,

—	colour: creamy white,

—	holes: many, randomly scattered holes which vary in size.

—

The crust of ‘Pan de Alfacar’:

—	thickness: medium to thick, more than 1,5 mm,

—	colour: golden, without flour dusting, slightly shiny and quite smooth.

—	Weight of the different shapes of ‘Pan de Alfacar’: The different bread shapes have a characteristic weight-to-volume ratio for their size and this is an indicator of the density of the product.

5.3. Causal link between the geographical area and the quality or characteristics of the product (for PDO) or a specific quality, the reputation or other characteristic of the product (for PGI):

—	Dry matter in ‘Pan de Alfacar’: between 65 % and 80 %. The residual dry matter in ‘Pan de Alfacar’ depends on natural and human factors. It is directly related to the water used, the degree of hydration and the baking time.

—	Characteristic aroma of ‘Pan de Alfacar’: The characteristic aroma of ‘Pan de Alfacar’ is a product of the fermentation processes and is directly related to natural and human factors.

The main natural factors are:

—	alfacar spring water, with its unique physical and chemical composition, has a positive effect on the fermentation processes in the natural yeast and bread dough,

—

the Mediterranean mountain region (Sierra de Huétor Nature Reserve), with its extreme climatic conditions (temperature and humidity), has an effect on the fermentation processes. The natural vegetation in the area fosters the development of a wild microbiology which becomes part of the fermentation processes through the natural yeast.

The human factors which have the greatest impact are:

—	letting blocks of dough rest,

—	using wooden trays to produce yeast cultures provides the ideal conditions for refining the fermentation process, developing microbiological populations and being able to reproduce the fermentation processes.

Controlling the immediate environment in the bakery (temperature and humidity) and controlling the time required and the conditions for the fermentation of the yeast.

—	The crumb of ‘Pan de Alfacar’: The colour, the holes and the texture are influenced by natural and human factors.

The most influential natural factor on the above characteristics is:

—	Alfacar spring water. Its unique physical and chemical characteristics reinforce the gluten structure in flour with a low baking capacity and increase its ability to retain CO2.

The main human factors are:

—	the degree of hydration is crucial, along with the type of flour used and the dough's capacity to retain gas,

—	letting the blocks of dough rest produces a crumb consistency that is less uniform and helps to reinforce the protein structure developed during mixing and kneading, which in turn increases its ability to retain gas,

—	large balls of dough to prevent loss of gas,

—	letting the balls of dough rest, as with blocks of dough, is essential to give the bread a good structure before it is shaped,

—	manual shaping of the pieces of bread,

—	vertical cuts affect the volume of each bread shape, as well as affecting the texture and holes in the crumb, as they result in a greater loss in gas than diagonal cuts and lead to a smaller volume of dough in the oven and denser bread,

—	the shape of the bread also affects the loss of gas and therefore the texture of the crumb.

The use of wheat flour and the entire bread-making process affect the colour of the crumb in the final product.

—

The crust of ‘Pan de Alfacar’:

—	A crust thicker than 1,5 mm is a characteristic of ‘Pan de Alfacar’ and is achieved through the fermentation process used, the degree of hydration of the dough and the type of oven, along with optimal baking times.

—	The slight shine of the crust is achieved by baking ‘Pan de Alfacar’ from the second oven load onwards, as the temperature and humidity inside the oven will have stabilised at that point.

—	The golden colour of the crust is characteristic of using wheat flour and is also due to the type of baking, the temperature and the baking time.

—	The smoothness of the crust is due to the degree of hydration and to the fermentation process.

—

Weight of the different shapes of ‘Pan de Alfacar’:

The weight is an indicator of the density of the bread; it is influenced by the ingredients of ‘Pan de Alfacar’ and the bread-making method used, which in turn is affected by the same natural and human factors described above for the characteristics of the crumb.

—	Reputation of the name ‘Pan de Alfacar’: Various commercial, advertising, social, economic and historical sources point to the use of the name ‘Pan de Alfacar’ as a commercial brand since the 16th century.

—

Use of the words ‘Pan de Alfacar’ in advertising:

The words ‘Pan de Alfacar’ have been used as a distinguishing mark in publicity and in sales points since 1970. A survey of the reputation of the name of ‘Pan de Alfacar’ demonstrates that it is firmly anchored in the everyday language of the population of the province of Granada.

—

Reference to the commercial reputation of the ‘Pan de Alfacar’ trademark in the press:

Since 1982, there have been many articles in local and national newspapers, professional journals and international publications on the Internet which bear witness to the good reputation of ‘Pan de Alfacar’ in relation to the Alfacar bread-making tradition since the 16th century, the local know-how, the specific characteristics of the product and the prizes it has been awarded.

—

Reference to the specific characteristics of ‘Pan de Alfacar’:

In addition to writing technical articles in specialised and professional journals on the characteristics of ‘Pan de Alfacar’, José Carlos Capel refers to Alfacar rolls, one of the shapes of ‘Pan de Alfacar’, in 1991 in his book El pan: elaboración, formas, mitos, ritos y gastronomía. Glosario de los panes de España (Bread: bread-making, bread shapes, myths, rituals and gastronomy. Glossary of Spanish bread).

—

Production figures:

As stated by the geographer Bosque Laural, ‘in 1950, Alfacar and Víznar already dominated bread-making in the Granada area and were the main suppliers for Granada. In around 1950, 7 000 kg of “Pan de Alfacar” were sold daily in the capital of Granada; the quality was excellent and was valued by consumers’.

—

Historical references in texts to the socioeconomic importance of ‘Pan de Alfacar’:

In 2008, a monograph on ‘Pan de Alfacar’, ‘El pan de Alfacar’: tahonas y hornos tradicionales (‘El Pan de Alfacar’: traditional bakeries and ovens, J. M. Reyes Mesa et al., 2008) outlines the history of this product from the 16th century to the present day.

The importance of ‘Pan de Alfacar’ is highlighted by various historical and geographical publications and cadastral surveys, in particular by: Libro de Apeo y Repartimiento de Alfacar de 1571 y de Víznar en 1572 tras la reconquista de Granada (Survey and division of Alfacar in 1571 and Víznar in 1572 after the regaining of Granada), Tomás López and Vargas Machuca in Diccionario Geográfico de Málaga y Granada (Geographical dictionary of Málaga and Granada, manuscript of 1795, National Library in Madrid), Catastro del Marqués de la Ensenada (Land register of the Marquess of Ensenada, 1752), F. Henríquez de Jonquera’s Anales de Granada: descripción del reino de Granada y ciudad de Granada, crónica de la Reconquista (1482-1492) sucesos de los años 1588-1646 (Annals of Granada: description of the Kingdom and City of Granada, chronicles of the regaining of Granada (1482-1492), events from 1588-1646, 1987) and Pascual Madoz’s Diccionario Geográfico, Estadístico e Histórico de España y sus posesiones de Ultramar (Geographical, statistical and historical dictionary of Spain and its Overseas Territories, 1845-1850).

Reference to publication of the specification:

(Article 5(7) of Regulation (EC) No 510/2006 (3))

The full text of the product specification for this name is available at:

http://www.juntadeandalucia.es/agriculturaypesca/portal/export/sites/default/comun/galerias/galeriaDescargas/cap/industrias-agroalimentarias/denominacion-de-origen/Pliegos/Pliego_Mantecados_Estepa.pdf

via the homepage of the Regional Ministry of Agriculture, Fisheries and the Environment (http://www.juntadeandalucia.es/agriculturaypesca/portal), by following the navigation pathway ‘Industrias Agroalimentarias’ > ‘Calidad y Promoción’ > ‘Denominaciones de Calidad’ > ‘Otros Productos’; the specifications are located under the name of the quality designation.

(1) OJ L 343, 14.12.2012, p. 1.

(2) OJ L 93, 31.3.2006, p. 12. Replaced by Regulation (EU) No 1151/2012 of the European Parliament and of the Council of 21 November 2012 on quality schemes for agricultural products and foodstuffs.

(3) See footnote 2.

		ISSN 1977-091X doi:10.3000/1977091X.C_2013.070.eng
Official Journal of the European Union		C 70

English edition	Information and Notices	Volume 56 9 March 2013

Notice No	Contents	page
	II Information
	INFORMATION FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES
	European Commission
2013/C 070/01	Non-opposition to a notified concentration (Case COMP/M.6808 — PAI Partners/Industrial Parts Holding) ( 1 )	1

	III Preparatory acts
	European Central Bank
2013/C 070/02	Opinion of the European Central Bank of 11 December 2012 on a proposal for a regulation of the European Parliament and of the Council on key information documents for investment products (CON/2012/103)	2

	IV Notices
	NOTICES FROM EUROPEAN UNION INSTITUTIONS, BODIES, OFFICES AND AGENCIES
	European Commission
2013/C 070/03	Euro exchange rates	9

2013/C 070/04	Opinion of the Advisory Committee on restrictive agreements and dominant positions given at its meeting of 19 June 2012 concerning a draft decision in Case COMP/39.966 — Gas Insulated Switchgear (fines) — Rapporteur: Ireland	10

2013/C 070/05	Final Report of the Hearing Officer — COMP/39.966 — Gas Insulated Switchgear (re-adoption of fines)	11

2013/C 070/06	Summary of Commission Decision of 27 June 2012 amending Decision C(2006) 6762 final of 24 January 2007 relating to a proceeding under Article 81 of the EC Treaty (now Article 101 of the Treaty on the Functioning of the European Union) and Article 53 of the EEA Agreement to the extent that it was addressed to Mitsubishi Electric Corporation and Toshiba Corporation (Case COMP/39.966 — Gas Insulated Switchgear — Fines) (notified under document C(2012) 4381) ( 1 )	12

	NOTICES FROM MEMBER STATES
2013/C 070/07	Portuguese national procedure for allocating limited air traffic rights	14

2013/C 070/08	Information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 800/2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General Block Exemption Regulation) ( 1 )	26

2013/C 070/09	Information communicated by Member States regarding State aid granted under Commission Regulation (EC) No 800/2008 declaring certain categories of aid compatible with the common market in application of Articles 87 and 88 of the Treaty (General Block Exemption Regulation) ( 1 )	27

	V Announcements
	ADMINISTRATIVE PROCEDURES
	European Investment Bank
2013/C 070/10	Call for proposals — EIBI second Social Innovation Tournament	28

	PROCEDURES RELATING TO THE IMPLEMENTATION OF COMPETITION POLICY
	European Commission
2013/C 070/11	Prior notification of a concentration (Case COMP/M.6865 — Oaktree/Countryside) — Candidate case for simplified procedure ( 1 )	29

2013/C 070/12	Prior notification of a concentration (Case COMP/M.6796 — Aegean/Olympic II) ( 1 )	30

	OTHER ACTS
	European Commission
2013/C 070/13	Publication of an application pursuant to Article 50(2)(a) of Regulation (EU) No 1151/2012 of the European Parliament and of the Council on quality schemes for agricultural products and foodstuffs	31

	Currency	Exchange rate
USD	US dollar	1,3090
JPY	Japanese yen	125,50
DKK	Danish krone	7,4573
GBP	Pound sterling	0,87100
SEK	Swedish krona	8,3239
CHF	Swiss franc	1,2355
ISK	Iceland króna
NOK	Norwegian krone	7,4435
BGN	Bulgarian lev	1,9558
CZK	Czech koruna	25,443
HUF	Hungarian forint	297,64
LTL	Lithuanian litas	3,4528
LVL	Latvian lats	0,7010
PLN	Polish zloty	4,1380
RON	Romanian leu	4,3587
TRY	Turkish lira	2,3490
AUD	Australian dollar	1,2738
CAD	Canadian dollar	1,3470
HKD	Hong Kong dollar	10,1525
NZD	New Zealand dollar	1,5789
SGD	Singapore dollar	1,6317
KRW	South Korean won	1 427,23
ZAR	South African rand	11,8996
CNY	Chinese yuan renminbi	8,1413
HRK	Croatian kuna	7,5908
IDR	Indonesian rupiah	12 676,07
MYR	Malaysian ringgit	4,0658
PHP	Philippine peso	53,221
RUB	Russian rouble	40,1213
THB	Thai baht	38,903
BRL	Brazilian real	2,5578
MXN	Mexican peso	16,6598
INR	Indian rupee	71,1770