19.7.2011   

EN

Official Journal of the European Union

C 212/1

(1)

On 26 March 2010, the European Council agreed to the Commission's proposal to launch a new strategy for jobs and growth, Europe 2020, based on enhanced coordination of economic policies, which will focus on the key areas where action is needed to boost Europe's potential for sustainable growth and competitiveness.

(2)

On 13 July 2010, the Council adopted a recommendation on the broad guidelines for the economic policies of the Member States and the Union (2010 to 2014) and, on 21 October 2010, adopted a decision on guidelines for the employment policies of the Member States (2), which together form the ‘integrated guidelines’. Member States were invited to take the integrated guidelines into account in their national economic and employment policies.

(3)

On 12 January 2011, the Commission adopted the first Annual Growth Survey, marking the start of a new cycle of economic governance in the EU and the first European semester of ex ante and integrated policy coordination, which is anchored in the Europe 2020 strategy.

(4)

On 25 March 2011, the European Council endorsed the priorities for fiscal consolidation and structural reform (in line with the Council's conclusions of 15 February and 7 March 2011 and further to the Commission's Annual Growth Survey). It underscored the need to give priority to restoring sound budgets and fiscal sustainability, reducing unemployment through labour market reforms and making new efforts to enhance growth. It requested Member States to translate these priorities into concrete measures to be included in their Stability or Convergence Programmes and National Reform Programmes.

(5)

On 25 March 2011, the European Council also invited the Member States participating in the Euro Plus Pact to present their commitments in time to be included in their Stability or Convergence Programmes and their National Reform Programmes.

(6)

On 29 April 2011, Spain submitted its 2011 Stability Programme update covering the period 2011-2014 and its 2011 National Reform Programme. In order to take account of the interlinkages, the two programmes have been assessed at the same time.

(7)

The Spanish economy was severely hit by the crisis and went through a sharp adjustment in 2008-2009. Real GDP fell by 4,3 % between the beginning of 2008 and the end of 2010, and employment declined by over 10 %. As a consequence, the unemployment rate rose to 20,1 % at the end of 2010, the highest in the EU. Young people (41,6 % unemployment rate) and less educated workers (26,4 % unemployment rate) bore much of the brunt of the Spanish recession. Sovereign debt yields increased in the context of adverse public debt developments in the euro area and the banking system, in particular savings banks, came under pressure with the burst of the housing bubble and the sharp contraction of the construction sector. The ongoing process of absorbing large macroeconomic imbalances built up during the boom period will continue for some time. In response to these challenges, the Spanish government has embarked on an ambitious reform agenda covering fiscal consolidation, public pension reform, savings bank restructuring and labour and product market reforms.

(8)

Based on the assessment of the updated Stability Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections in the Stability Programme is favourable in 2011 and 2012. The Stability Programme plans to bring the budget deficit below the 3 % reference value by 2013, in line with the Council recommendations of April 2009, and reduce the deficit further to 2,1 % of GDP in 2014. The Stability Programme does not foresee the achievement of the medium-term objective, which remains a balanced budget, in the Stability Programme horizon. This adjustment path is appropriate. The annual average improvement of the structural balance is 1,5 % of GDP on average for 2010-2013, in line with the Council recommendation, and an additional 0,3 % of GDP in 2014. The debt-to-GDP ratio is projected to rise from 60,1 % of GDP in 2010 to 69,3 % in 2013 and decline slightly in 2014. There are downside risks to the consolidation path related to the underlying macroeconomic assumptions and to the respect of budgetary targets at the regional level. Regions account for a large share of total public expenditure and 9 out of 17 exceeded their fiscal objectives in 2010. However, deficit and debt control mechanisms for regional governments have already been strengthened and the Spanish government has committed to take additional measures, if needed to meet the budgetary targets.

(9)

Achieving the foreseen fiscal consolidation in 2011 and 2012 requires strict application of the deficit and debt control mechanisms that have been put in place for regional governments. Achieving the budgetary targets in the event that macroeconomic and budgetary developments turn out worse than expected in 2011 and 2012, will require additional measures that the Spanish government has committed itself to taking. For 2013, the Expenditure Revision Plan identifies a few measures to underpin the budgetary targets. According to the Commission's latest assessment, the risks with regards to long term-sustainability of public finances appear to be high.

(10)

The medium-term budgetary framework in Spain has been instrumental in promoting multi-annual fiscal planning and overall shows a good track record. However, the crisis has put this framework to the test and showed the need to strengthen further fiscal stability and the preventive aspect of fiscal policy. This would be enhanced by introducing a spending rule based on medium-term nominal GDP growth in line with the new EU economic governance framework. The rule, put forward by the Spanish authorities in the Stability Programme, would automatically bind the central government and local governments. The government also plans to seek consensus within the Council for Fiscal and Financial Policy on applying the rule to the Autonomous Communities.

(11)

In the absence of reform, the likely long-term impact of ageing on the Spanish public budget would be higher than the EU average. This is primarily because of the substantial increase in pension expenditure as a share of GDP that is projected for the coming decades. In the long run, ageing will lead to a significant increase in the ratio of retirees per worker. The Spanish government's proposal for a pension reform, agreed with social partners, will significantly improve fiscal sustainability and raise incentives for labour market participation. However, the reform still needs to be approved by Parliament and may still be subject to minor changes.

(12)

Spain has taken important steps to strengthen its banking system by providing public support and taking measures to restructure savings banks, reinforce banks' solvency, and improve transparency of their balance sheets. The sector has undergone a noticeable consolidation as a result, and specially among savings banks, with positive consequences in terms of average size of the institutions, reduction of excess capacity in terms of branches and employment, strengthening balance sheets, recapitalization and improvement in efficiency and profitability. Recent legislation has addressed the problems created by the role of local authorities in the governance of savings banks, as most of them transfer their assets and liabilities to commercial banks. The Spanish government has undertaken to finalise the bulk of the restructuring process by the end of September 2011. Coverage of the next round of stress tests will be again amongst the highest of the EU.

(13)

The ongoing labour market reform in Spain needs to be complemented by an overhaul of the current unwieldy collective bargaining system. The predominance of provincial and industry agreements leaves little room for negotiations at firm level. The automatic extension of collective agreements, the validity of non-renewed contracts and the use of ex post inflation indexation clauses contribute to wage-inertia, preventing the wage flexibility needed to speed up economic adjustment and restore competitiveness. The Spanish government has requested social partners to agree on a reform of the collective bargaining system during spring 2011. In the absence of an agreement, on 10 June, the government has approved a Royal Decree which has immediately entered into force but will have to be validated by the parliament.

(14)

Against the background of very high unemployment, Spain launched a reform of its labour market with the law of September 2010. The law aims to reduce labour market duality and youth unemployment, increase the employability of vulnerable groups and increase flexibility at company level and improve the efficiency of the intermediation in the market. Reform of the active labour market policies was adopted in February 2011, which also included measures to strengthen the advisory and guiding role of employment services and their coordination at national and regional levels. At this stage, it is too early to fully assess whether the reform is sufficient to reduce segmentation and reduce youth and long-term unemployment since some measures are not operational yet. The Spanish government has committed itself to taking further steps by October 2011.

(15)

Spain has experienced a loss of price and cost competitiveness, although showing relative good performance in terms of export market shares, that has been reinforced during and after the crisis. Higher wage growth coupled with lower productivity growth than in the euro area and lack of competition in some product markets contributed to persistently higher inflation in Spain. Finding room to improve the tax efficiency could help to boost competitiveness. Further strengthening competition in product markets and adopting a reform of the collective bargaining system to ensure that wage growth better reflects productivity developments at the firm level will help boost competitiveness.

(16)

The high level of early school leaving in Spain (31,2 % in 2009) is particularly worrying, as it undermines the size of the skilled work force, affects the job prospects of the concerned individuals and reduces potential growth. The Law on Sustainable Economy, adopted on 15 February 2011, includes measures aiming at increasing the quality and quantity of human capital through education and vocational training. However, the effectiveness of the new measures to combat early school leaving and to improve vocational training is uncertain and implementation at all levels of government may prove difficult.

(17)

Spain has made significant progress in improving the conditions for competition in product and service markets, addressing one of the causes of slow productivity growth. The transposition of the Services Directive into law is well advanced and ambitious in Spain, although further opening up of professional services is needed. The Law on Sustainable Economy includes a wide array of measures to improve the business environment, strengthen competition and promote environmental sustainability. An effective implementation calls for further efforts by all levels of government and appropriate coordination

(18)

Spain has made a number of commitments under the Euro Plus Pact. On the fiscal side, Spain commits itself to establishing an expenditure rule to enhance fiscal stability and thus sustainability of public finances. To reinforce financial stability, Spain committed itself to completing, before 30 September, the restructuring process of the financial sector. Employment measures focus on implementing acts on active labour market policies and provisions in the field of vocational training, as well as on addressing informal employment. The competitiveness measures focus on reforming the collective bargaining system, regulated professions, setting up an Advisory Committee on Competitiveness and a reform of bankruptcy law. The above commitments refer to all four areas of the Pact. They represent a continuity of the ongoing reform agenda, adding a firm timeframe for the implementation of certain reforms and ensuring full implementation of reforms that have already been carried out. These commitments have been assessed and taken into account in the recommendations.

(19)

The Commission has assessed the Stability Programme and National Reform Programme, including the Euro Plus Pact commitments. It has taken into account not only their relevance for sustainable fiscal and socio-economic policy in Spain but also their conformity with EU rules and guidance, given the need to reinforce the overall economic governance of the EU by providing EU level input into future national decisions. In this light, the Commission considers that the Spanish government has established fiscal consolidation plans consistent with the required targets, but that some downside risks remain. Public expenditure growth should be kept below the rate of medium-term GDP growth and the pension reform needs to be adopted. Further steps in 2011-2012 should focus on ensuring the stability of the financial system (through the finalisation of the restructuring and consolidation of the savings banks) and the strengthening of domestic sources for growth, by addressing the current surge in unemployment in particular through the reform of collective bargaining and continued implementation of the ongoing reforms in the labour market, with a close monitoring and evaluation of their effectiveness. The services sector, trades and professions should be opened up to greater competition, and the administrative burden for enterprises should be reduced.

(20)

In light of this assessment, also taking into account the Council Recommendation under Article 126(7) Treaty on the Functioning of the European Union of 2 June 2010, the Council has examined the 2011 update of the Stability Programme of Spain and its opinion (3) is reflected in particular in its recommendation (1) below. Taking into account the European Council conclusions of 25 March 2011, the Council has examined the National Reform Programme of Spain,

1.

Implement the budgetary strategy in 2011 and 2012 and correct the excessive deficit in the year 2013 in line with the Council recommendation under the EDP, ensuring the achievement of deficit targets at all levels of government, including by strictly applying the existing deficit and debt control mechanisms for regional governments; adopt further measures in case budgetary and economic developments do not turn out as expected; take any opportunity including from better economic conditions to accelerate the deficit reduction; set out concrete measures to fully underpin the targets for 2013 and 2014 which should bring the high public debt ratio on a downward path and ensure adequate progress towards the medium-term objective. Keep public expenditure growth below the rate of medium-term GDP growth, by introducing a binding expenditure rule at all levels of government, as envisaged. Further improve the provision of information in relation to regional and local government budgets and their execution.

2.

Adopt the proposed pension reform to extend the statutory retirement age and increase the number of working years for the calculation of pensions as planned; regularly review pension parameters in line with changes to life expectancy, as planned, and develop further measures to improve lifelong learning for older workers.

3.

Monitor closely the ongoing restructuring of the financial sector, in particular as regards savings banks, with a view to finalising it by 30 September 2011 as envisaged.

4.

Explore the scope for improving the efficiency of the tax system, for example through a move away from labour towards consumption and environmental taxes while ensuring fiscal consolidation plans.

5.

Following consultation with social partners and in accordance with national practice, complete the adoption and proceed with the implementation of a comprehensive reform of the collective bargaining process and the wage indexation system to ensure that wage growth better reflects productivity developments as well as local- and firm-level conditions and to grant firms enough flexibility to internally adapt working conditions to changes in the economic environment.

6.

Assess, by the end of 2011, the impacts of the labour market reforms of September 2010 and of the reform of active labour market policies of February 2011, accompanied, if necessary, by proposals for further reforms to reduce labour market segmentation, and to improve employment opportunities for young people; ensure a close monitoring of the effectiveness of the measures set out in the National Reform Programme to reduce early school leaving, including through prevention policies, and facilitate the transition to vocational education and training.

7.

Further open up professional services and enact the planned legislation in order to redesign the regulatory framework and eliminate current restrictions to competition, efficiency and innovation; implement the Law on Sustainable Economy, notably measures aimed at improving the business environment and enhancing competition in the product and service markets, at all levels of government; and improve coordination between regional and national administrations to reduce the administrative burden for enterprises.

19.7.2011   

EN

Official Journal of the European Union

C 212/5

(1)

On 26 March 2010, the European Council agreed to the Commission's proposal to launch a new strategy for jobs and growth, Europe 2020, based on enhanced coordination of economic policies, which will focus on the key areas where action is needed to boost Europe's potential for sustainable growth and competitiveness.

(2)

On 13 July 2010, the Council adopted a recommendation on the broad guidelines for the economic policies of the Member States and the Union (2010 to 2014) and, on 21 October 2010, adopted a decision on Guidelines for the employment policies of the Member States (2), which together form the ‘integrated guidelines’. Member States were invited to take the integrated guidelines into account in their national economic and employment policies.

(3)

On 12 January 2011, the Commission adopted the first Annual Growth Survey, marking the start of a new cycle of economic governance in the EU and the first European semester of ex-ante and integrated policy coordination, which is anchored in the Europe 2020 strategy.

(4)

On 25 March 2011, the European Council endorsed the priorities for fiscal consolidation and structural reform (in line with the Council's conclusions of 15 February and 7 March 2011 and further to the Commission's Annual Growth Survey). It underscored the need to give priority to restoring sound budgets and fiscal sustainability, reducing unemployment through labour market reforms and making new efforts to enhance growth. It requested Member States to translate these priorities into concrete measures to be included in their Stability or Convergence Programmes and National Reform Programmes.

(5)

On 29 April 2011, the Czech Republic submitted its 2011 National Reform Programme and on 5 May its 2011 Convergence Programme update covering the period 2011-2014. In order to take into account the interlinkages, the two programmes have been assessed at the same time.

(6)

The global financial crisis, channelled through the Czech economy's high trade openness, took a heavy toll on GDP growth and unemployment in the Czech Republic. Real GDP declined by 4,1 % in 2009, as a result of the fall in exports and in domestic investment. The unemployment rate increased significantly from 4,4 % in 2008 to 7,3 % in 2010, and the employment rate fell by two percentage points between 2008 and 2010. However, the high degree of exposure to international trade and a fast recovery in the Czech Republic's main trading partners have also facilitated a relatively quick rebound in the real GDP growth rate in 2010 to 2,3 % and will continue to support a moderate recovery.

(7)

Based on the assessment of the updated Convergence Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic assumptions underpinning the Convergence Programme are plausible in the first two years of the Programme and favourable thereafter, when assessed against the Commission's medium-term projections of potential output according to the commonly agreed methodology. The Convergence Programme is based on a lower growth projection for 2012 compared with the Commission services' 2011 Spring forecast, mainly on account of a further sustained reduction in real government consumption expenditure, which is not taken up in the Commission services' no-policy-change forecast for 2012. The Convergence Programme foresees a reduction of the general government deficit below 3 % of GDP in 2013 and further to 1,9 % of GDP in 2014. The planned consolidation is mainly based on expenditure restraint. The proposed measures are broadly sufficient to reach the target by 2013, as recommended by the Council, but there are risks to the actual budgetary outcome of measures as presented in the Convergence Programme. Moreover, the attainment of the targets for the outer years of the Convergence Programme seems to rely on favourable cyclical conditions and further efficiency gains in public administration, which may become increasingly difficult to materialise. The achievement of the medium-term budgetary objective is foreseen beyond the horizon of the Convergence Programme. The average annual fiscal effort over the period 2010-2013 is slightly below 1 % of GDP recommended by the Council under the EDP procedure of 2 December 2009.

(8)

The Convergence Programme set out a clear objective to bring the deficit in public finances below 3 % of GDP by 2013. The challenge will be to ensure that measures underlying the path for the deficit reduction in 2011-2013, as well as in subsequent years, do not compromise long-term growth, especially by safeguarding expenditure on education and public R&D, and that they provide an adequate buffer for increases in expenditure entailed by demographic developments.

(9)

The budgetary consolidation strategy includes measures that affect VAT revenue: the lower VAT rate is planned to rise in 2012 and 2013, while the higher rate is to decrease in 2013. The government also intends to increase the number of firms liable to VAT from 2013. According to the Convergence Programme, these changes should result in an increase in tax receipts of 0,7 % of GDP in 2012 and further by 0,1 % of GDP in 2013. In addition, there seems to be further scope for boosting revenue from indirect taxes, which stood at 11,8 % of GDP in 2010, compared to the EU average of 13,4 %, and thereby possibly shift taxes away from labour. The envisaged tax reform will partly focus on this issue. Furthermore, the difference between actual VAT revenue and the theoretical VAT liability is estimated to be significantly above the EU average, substantiating the need for measures improving tax compliance. To this end, the Czech Republic has introduced new measures in 2011, aimed at tackling VAT fraud and reducing tax evasion.

(10)

Given that the budgetary impact of ageing is projected to be well above the EU average, the reform of the pension system is an important issue. The government has put forward two sets of proposals. The first package is expected to receive Parliamentary approval by September 2011 and targets the public Pay-As-You-Go pillar, which has been in deficit since 2009. It includes, among other measures, an increase in the statutory retirement age, which will be unified at 66 years and 8 months in 2041 for men and women born in 1975. For each subsequent age cohort, the retirement age will increase by two more months, without a predetermined limit. This set of parametric reforms should help address the fiscal sustainability problem; it may, however, not be sufficient to address all challenges presented by demographic pressures. The second package of measures, not yet approved by the government, would consist in the introduction of a voluntary second private pillar in 2013, with the aim to increase diversification in retirement incomes and support their future adequacy by promoting the development of private savings. However, the suggested form of the pillar creates few incentives to join the scheme and may actually add to the long-term pressures highlighted above. The operating costs of such pension funds also need to be carefully analysed and kept as low as possible to ensure the effectiveness of the system.

(11)

The labour market is perceived as moderately flexible and had not shown evidence of major dysfunctions before the global financial crisis. Yet, some structural weaknesses are evident. A key challenge concerns the severe difficulties that women with children face when re-integrating into the labour market after maternity leave. The issue is significant also because of its wider economic repercussions: longer periods out of work, a high gender employment gap, and very high gender pay gap. Early return to work remains difficult despite the government's effort to give parents greater choice in determining the length of parental leave. The problem can be attributed partly to the low willingness of firms to provide part-time employment contracts, often used by employees with small children in other Member States, and partly to limited availability of affordable childcare facilities. The National Reform Programme identifies a number of concrete measures to increase availability of childcare, including for children below the age of three.

(12)

While the overall unemployment rate and the long-term unemployment rate remain firmly below the EU average, the latter has been increasing as a consequence of the crisis, particularly among the 20- to 29-year-olds. The poorly educated as well as other low-wage earners face considerable difficulties in finding employment. The expenditure on active labour market policies and the share of participants in regular activation measures should be increased and these measures should be better targeted.

(13)

Inefficiencies in public administration, which weigh on the business environment, could be addressed by comprehensively implementing existing strategies. The government has launched a ‘better regulation’ agenda in 2007 and an anti-corruption strategy for the years 2011-2012. They announce measures that are important to improve the quality of the Czech legal and regulatory framework, which ranks below the EU average according to international surveys, and strengthen the confidence of businesses. A challenge is to stabilise the public administration, as frequent and far-reaching reorganisations impede its efficiency. For doing so, it would be important to adopt the Public Servant Act, which has been repeatedly postponed. The government has recently adopted measures to increase the transparency of public procurement. However, one element of the regulatory framework, namely the specific type of company shares that permit a fully anonymous transfer of wealth deserves attention.

(14)

The crisis is expected to have negativly impacted on potential growth. Improving human capital is important, despite the high ratio of young people enrolled in universities, and is hindered by insufficient quality of training, as illustrated by the low ranking of Czech tertiary education institutes in international surveys. Furthermore, spending per student, in comparable prices, is in the lower quarter of the Member States and is especially limited for primary education. The National Reform Programme outlines measures for all stages of education. A complex reform of tertiary education has been in preparation for several years. Ensuring quality and efficient tertiary education is important for competitiveness and innovation capacity.

(15)

The Commission has assessed the Convergence Programme and National Reform Programme of the Czech Republic. It has taken into account not only their relevance for sustainable fiscal and socio-economic policy in the Czech Republic but also their conformity with EU rules and guidance, given the need to reinforce the overall economic governance of the EU by providing EU-level input into future national decisions. In this light, the Commission considers that the focus on fiscal consolidation should be kept, while protecting growth-enhancing expenditure. The long-term sustainability of public finances depends, to a large extent, on the capacity to implement now the necessary pension reform. Raising labour market participation, in particular of women, and job opportunities for the long-term unemployed, are essential. Further steps to improve the quality of public services and the regulatory framework, as well as the quality of tertiary education, are crucial for competitiveness.

(16)

In light of this assessment, also taking into account the Council Recommendation under Article 126(7) of the Treaty on the Functioning of the European Union of 2 December 2009, the Council has examined the 2011 update of the Convergence Programme of the Czech Republic and its opinion (3) is reflected in particular in its recommendations 1 and 2 below. Taking into account the European Council conclusions of 25 March 2011, the Council has examined the National Reform Programme of the Czech Republic,

1.

Implement the planned consolidation in 2011 and take countervailing measures of a permanent nature as needed in case of any revenue shortfalls or expenditure slippages. Adopt fiscal measures as planned in the Convergence Programme for 2012 and underpin the target for 2013 by more specific measures; subject to this, avoid cutting expenditure on growth-enhancing items. Improve the efficiency of public investments, and continue efforts to exploit the available space for increases in indirect tax revenue to shift taxes away from labour, improve tax compliance, and reduce tax evasion. Ensure an average fiscal effort over the period 2010-2013 of 1 % of GDP, in line with the Council recommendations on correcting the excessive deficit, which will allow meeting the EDP deadline with a sufficient margin in 2013.

2.

Implement the planned pension reform in order to improve the long-term sustainability of public finances and to ensure the future adequacy of pensions. Additional efforts should focus on further changes to the public pillar to ensure that the system is not a source of fiscal imbalances in the future, and on the development of private savings. With a view to raising the effective retirement age, measures such as a link between the statutory retirement age and life expectancy could be considered. Ensure that the envisaged funded scheme attracts broad participation, and is designed to keep administrative costs transparent and low.

3.

Enhance participation in the labour market by reducing the barriers for parents with young children to re-enter the labour market through increased availability and access to affordable childcare facilities. Increase the attractiveness and availability of more flexible forms of working arrangements, such as part-time jobs.

4.

Improve the performance of the public employment service in order to increase the quality and effectiveness of training, job search assistance and individualised services, linking funding of the programmes to results. In cooperation with stakeholders, extend tailor-made training programmes, for older workers, young people, low-skilled workers and other vulnerable groups.

5.

Take the necessary measures to improve the quality of public services in areas essential for the business environment. In this context speed up the implementation of the anti-corruption strategy in line with the identified targets, adopt the Public Servants Act to promote stability and effectiveness of the public administration and take steps to address the issue of anonymous share holding.

6.

Establish a transparent system of quality evaluation of academic institutions and link it to its funding in order to improve the performance of tertiary education.

19.7.2011   

EN

Official Journal of the European Union

C 212/9

(1)

On 26 March 2010, the European Council agreed to the Commission's proposal to launch a new strategy for jobs and growth, Europe 2020, based on enhanced coordination of economic policies, which will focus on the key areas where action is needed to boost Europe's potential for sustainable growth and competitiveness.

(2)

On 13 July 2010, the Council adopted a recommendation on the broad guidelines for the economic policies of the Member States and the Union (2010 to 2014) and, on 21 October 2010, adopted a decision on guidelines for the employment policies of the Member States (2), which together form the ‘integrated guidelines’. Member States were invited to take the integrated guidelines into account in their national economic and employment policies.

(3)

On 12 January 2011, the Commission adopted the first Annual Growth Survey, marking the start of a new cycle of economic governance in the EU and the first European semester of ex-ante and integrated policy coordination, which is anchored in the Europe 2020 strategy.

(4)

On 25 March 2011, the European Council endorsed the priorities for fiscal consolidation and structural reform (in line with the Council's conclusions of 15 February and 7 March 2011 and further to the Commission's Annual Growth Survey). It underscored the need to give priority to restoring sound budgets and fiscal sustainability, reducing unemployment through labour market reforms and making new efforts to enhance growth. It requested Member States to translate these priorities into concrete measures to be included in their Stability or Convergence Programmes and National Reform Programmes.

(5)

On 25 March 2011, the European Council also invited the Member States participating in the Euro Plus Pact to present their commitments in time to be included in their Stability or Convergence Programmes and their National Reform Programmes.

(6)

On 27 April 2011, Germany submitted its updated Stability Programme covering the period 2011-2015 and on 7 April 2011 its 2011 National Reform Programme. In order to take account of the interlinkages, the two programmes have been assessed at the same time.

(7)

The German economy entered the crisis in a relatively solid position. However, the slump in world trade resulted in a collapse of exports and investment in 2009, such that real GDP contracted by an unprecedented 4,7 %. Nevertheless, after a small rise, unemployment has been falling again since late 2009. The resilience of the labour market reflects the beneficial effects of past reforms facilitating a reduction in hours worked and of subsidies for short-time work. The economy has rebounded strongly from the recession, with real GDP rising by 3,6 % in 2010. Exports have largely reversed the massive decline recorded in 2009 and paved the way for a more broad-based recovery also leading to a diminishing current account surplus. The economy has further improved its competitiveness vis-à-vis most of the other euro area Member States. The general government budget went from being in balance to a deficit of 3 % of GDP in 2009, driven by fully operating automatic stabilisers and discretionary measures to counter the economic downturn. The economic recovery helped to contain the deficit in 2010 (3,3 % of GDP) despite ongoing sizeable fiscal stimulus and financial market support measures.

(8)

Based on the assessment of the updated Stability Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underlying the Stability Programme is cautious for 2011 and plausible thereafter, also as assessed against the Commission services spring 2011 forecast. The Stability Programme projects real GDP to grow by 2,3 % in 2011, before slowing to 1,8 % in 2012 and to an average of 1,5 % in 2013-2015. The Stability Programme plans to bring the deficit below the 3 % GDP reference value already in 2011, two years ahead of the deadline established by the Council, and to make further progress towards achieving the medium-term objective (MTO) — a deficit of 0,5 % of GDP in structural terms — in 2014. Following the expected correction of the excessive deficit, the pace of adjustment towards the MTO under the Stability Programme falls below the 0,5 % of GDP benchmark in 2013 and 2014. While the debt-to-GDP ratio rose by almost 10 percentage points in 2010 (3), it is projected to start falling as of 2011 and should reach 75,5 % of GDP by 2015, thus remaining above the Treaty reference value. The risks to the budgetary projection appear broadly balanced for 2011, but the outcomes thereafter could be weaker than expected, since some savings might not materialise as envisaged. Certain measures are still subject to debate (e.g. energy and financial transaction tax) and others remain to be specified (e.g. efficiency improvements in public administration). Moreover, further financial market support measures cannot be excluded. According to the Commission's latest assessment, the risks with regards to long-term sustainability of public finances appear to be medium.

(9)

Since the recent reform of the health-care system introduced measures to curb spending increases mainly in 2011 and 2012, further steps to enhance the efficiency of public spending on health-care and long-term care, would support the envisaged consolidation path. At the same time, maintaining a largely growth-oriented consolidation course, including by ensuring adequate expenditure on education, would help to strengthen the long-term growth potential.

(10)

While the German fiscal framework has been considerably strengthened through the introduction of a constitutional budgetary rule, the creation of the Stability Council and the early warning system to prevent budgetary distress, the budgetary rule still needs to be fully implemented at Länder level. Further strengthening of the associated monitoring and sanctioning mechanism would also enhance the overall credibility of the public finances.

(11)

The crisis revealed serious vulnerabilities in the banking sector. Heavy losses and write-downs from international investments in subprime loans and structured assets weakened the capital base of some banks and led to the need for substantial state interventions. The crisis also exposed the weaknesses of some Landesbanken, which had already been suffering from a lack of effective risk management structures and the absence of a viable business model before the crisis. Further reform of the banking sector, including restructuring of the Landesbanken in need of a viable and adequately funded business model and strengthening of the regulatory and supervisory framework, would help preserve the stability of the financial sector and also ensure a more efficient allocation of domestic savings as a means of underpinning demand and investment.

(12)

The growth potential and structural competitiveness of the German economy depend to a large extent on a well-trained, skilled workforce, but labour supply shortages may become pressing given demographic developments. This underlines the importance of fully utilising the labour force potential by removing obstacles to labour market participation for particular groups (older workers, women, the low-skilled, non-EU nationals) and the further development of human capital. Addressing the tax wedge, which remains high especially for low and middle incomes, would improve incentives to work while allowing wage increases to be translated to a greater extent into higher disposable incomes and domestic demand. The high marginal income tax rate for second earners due to the joint taxation of couples creates disincentives for labour supply. The ‘Faktorverfahren’ introduced in 2009 allows for the individual monthly tax burden to reflect the personal income of each individual, while the tax burden for the year as a whole remains unchanged. The effects of this reform on labour market participation should be monitored. In this context, further measures to reduce possibly remaining disincentives to work might be necessary. Further increasing the availability of childcare facilities would in particular also help to improve the still low full-time labour force participation of women. Moreover, increasing the number of persons with vocational training qualifications could enhance the labour market prospects of low-skilled workers.

(13)

Germany has recently taken far-reaching decisions on its future energy mix. The implementation of the Energy Concept will imply a fundamental transformation in energy supply and have implications for energy prices and the competitiveness of the economy in the medium- to long-term. Cost-effectiveness should therefore be the key guiding principle for the implementation of the Energy Concept, based on efficient energy consumption, cost-effective support schemes and adequate electricity grids for renewable energy and competitive energy markets.

(14)

Boosting competition in the service sector would foster productivity growth and support domestic demand. More dynamic growth of the service sector could also contribute to broadening the base for supply and demand growth in Germany. Despite considerable progress in recent years through the implementation of the Services Directive, there appears to be scope to further reduce barriers to the entry and exit of firms, notably by further simplifying the license and permit system and to simplify the regulation for the exercise of certain professional services. The justification and adequacy of the regulation of certain crafts could be examined. With regard to network industry services, competition in the railway sector in particular can be improved. Strengthening the supervisory role of the Federal Network Agency and the opening of sales and ticket infrastructure to competitors would foster competition in the short-run.

(15)

Further reforms to improve the accessibility and quality of the education and training system will be key to ensuring an adequately skilled labour supply, also in view of demographic developments. Shortages of medium- and high-skilled labour in particular are forecast, especially as regards mathematics, science and technology subjects. The educational attainment rates of young people in Germany, at both upper secondary and tertiary level, are below the EU average. Increasing the availability of pre-school education and all-day schools and easing the transition between different strands of the school system may improve educational outcomes.

(16)

Germany has made a number of commitments under the Euro Plus Pact. On the fiscal side, the commitments call for the excessive deficit to be corrected already in 2011 and for the targets under the national budgetary rule to be achieved by a wide margin in 2011-2012. To reinforce financial stability, measures include efficient regulation and supervision of the capital market. Employment measures focus on labour market participation (reform of active labour market instruments, improved integration of professionals with foreign qualifications and integration of migrants) and education (Basic Education Pact). The competitiveness measures focus on network industries, energy and the service sector (i.e. market transparency agency for the electricity and gas sector, a programme on electromobility, and increased funding of transport infrastructure) as well as on education (i.e. Initiative for Excellence to promote graduate schools and funding of the University Pact). These commitments refer to the four areas of the Pact. They largely reflect the broader reform agenda outlined in the Stability Programme and the National Reform Programme. However, several policy areas remain unaddressed in the Pact commitments (e.g. restructuring of Landesbanken or the tax wedge on labour) or are only touched upon (opening the services sector and network industries to greater competition). The Euro Plus Pact commitments have been assessed and taken into account in the recommendations.

(17)

The Commission has assessed Germany's Stability Programme and National Reform Programme, including its Euro Plus Pact commitments. It has taken into account not only their relevance for sustainable fiscal and socio-economic policy in Germany but also their conformity with EU rules and guidance, given the need to reinforce the overall economic governance of the EU by providing EU-level input for future national decisions. In this light, the Commission considers that the German budgetary strategy should be implemented as envisaged. An adequate structural adjustment effort towards the MTO should also be ensured thereafter, while maintaining a growth-friendly consolidation course. Further steps in 2011-2012 should focus on ensuring the stability of the financial system (e.g. through restructuring of the Landesbanken), the strengthening of domestic sources for growth, by increasing labour market participation through a reduction of the tax wedge on labour, improving the accessibility and quality of education, and opening up the services sector, trades and professions and the network industries to greater competition.

(18)

In light of this assessment, also taking into account the Council Recommendation under Article 126(7) of the Treaty on the Functioning of the European Union of 2 December 2009, the Council has examined the 2011 update of the Stability Programme of Germany and its opinion (4) is reflected in particular in its recommendation (1) below. Taking into account the European Council conclusions of 25 March 2011, the Council has examined the National Reform Programme of Germany,

1.

Implement the budgetary strategy for the year 2012 and beyond as envisaged, thus bringing the high public debt ratio on a downward path, in line with the Council recommendations under the EDP. Ensure an adequate structural adjustment effort towards the medium-term objective thereafter. Complete the implementation of the budgetary rule at the Länder level and further strengthen the corresponding monitoring and sanctioning mechanism. Maintain a growth-friendly consolidation course, in particular by safeguarding adequate expenditure on education and by further enhancing the efficiency of public spending on health-care and long-term care.

2.

Address the structural weaknesses in the financial sector, in particular by restructuring Landesbanken which are in need of an adequately funded viable business model.

3.

Enhance participation in the labour market by improving equitable access to education and training systems and by taking further steps to reduce the high tax wedge in a budgetary neutral way and improve work incentives for persons with low income perspectives. Increase the number of fulltime childcare facilities and all-day schools. Closely monitor the effects of recent reform measures to reduce tax disincentives for second earners and take further measures in case disincentives remain.

4.

Remove unjustified restrictions on certain professional services and on certain crafts. To improve competition in network industries, strengthen the supervisory role of the Federal Network Agency in the rail sector; and, in the context of the announced national Energy Concept, focus on improving the long-term cost-effectiveness of the Renewable Energy Act, ensuring the effective independence of energy production and transmission, and improving cross-border interconnections.

19.7.2011   

EN

Official Journal of the European Union

C 212/13

(1)

On 26 March 2010, the European Council agreed to the Commission's proposal to launch a new strategy for jobs and growth, Europe 2020, based on enhanced coordination of economic policies, which will focus on the key areas where action is needed to boost Europe's potential for sustainable growth and competitiveness.

(2)

On 13 July 2010, the Council adopted a recommendation on the broad guidelines for the economic policies of the Member States and the Union (2010 to 2014) and, on 21 October 2010, adopted a decision on guidelines for the employment policies of the Member States (2), which together form the ‘integrated guidelines’. Member States were invited to take the integrated guidelines into account in their national economic and employment policies.

(3)

On 12 January 2011, the Commission adopted the first Annual Growth Survey, marking the start of a new cycle of economic governance in the EU and the first European semester of ex-ante and integrated policy coordination, which is anchored in the Europe 2020 strategy.

(4)

On 25 March 2011, the European Council endorsed the priorities for fiscal consolidation and structural reform (in line with the Council's conclusions of 15 February and 7 March 2011 and further to the Commission's Annual Growth Survey). It underscored the need to give priority to restoring sound budgets and fiscal sustainability, reducing unemployment through labour market reforms and making new efforts to enhance growth. It requested Member States to translate these priorities into concrete measures to be included in their Stability or Convergence Programmes and National Reform Programmes.

(5)

On 25 March 2011, the European Council also invited the Member States participating in the Euro Plus Pact to present their commitments in time to be included in their Stability or Convergence Programmes and their National Reform Programmes.

(6)

On 29 April 2011, the Netherlands submitted its 2011 Stability Programme update covering the period 2011-2015 as well as its 2011 National Reform Programme. In order to take account of the interlinkages, the two programmes have been assessed at the same time.

(7)

In spite of a previously robust performance, as the crisis unfolded, the very open Dutch economy suffered significantly: real GDP contracted by almost 4 % in 2009. The recovery started in the second half of 2009, led by a pick-up in external demand, and gained momentum in the first half of 2010, resulting in a GDP growth of 1,8 %. The impact of the crisis on the labour market was relatively contained. Unemployment is expected to decrease gradually over the next two years from 4,5 % in 2010 to 4 % in 2012. The crisis impacted Dutch public finances heavily, with the general government deficit rising to 5,5 % of GDP in 2009 and 5,4 % in 2010. Government operations to support financial institutions and stabilise the financial markets entailed an increase in the government debt ratio by 15 percentage points of GDP, with the debt ratio reaching 60,8 % of GDP in 2009.

(8)

Based on the assessment of the updated Stability Programme pursuant to Regulation (EC) No 1466/97, the Council is of the opinion that the macroeconomic scenario underpinning the budgetary projections presented in the Stability Programme is plausible. The Stability Programme is based on slightly more prudent growth projections for 2011 and 2012 than the Commission services’ spring 2011 forecast. The Stability Programme plans to reduce the general government deficit below the 3 % reference value in 2012, which would be one year ahead of the deadline set by the excessive deficit procedure. Based on the figures in the Stability Programme, the medium-term objective (MTO), namely, a structural deficit of 0,5 % of GDP, will be almost achieved by the end of the Stability Programme period, as the structural balance calculated by the Commission comes out at – 0,8 % of GDP in 2015. The budgetary strategy is fully underpinned by sufficiently specified measures up to 2015, though their implementation is subject to some risks, mainly with respect to the ability to offset health care overruns and to monitor local government expenditure. The average annual fiscal effort is 0,75 % of GDP over the period 2011-2013, in compliance with the Council Recommendation of 2 December 2009 under the EDP procedure. For the years following the deadline for correcting the excessive deficit (2014 and 2015), the recalculated structural balance is to improve by 0,25 % in 2014 and 0,5 % in 2015, thereby slightly falling short of the required 0,5 % improvement in the structural balance until the MTO is reached.

(9)

The budgetary consolidation planned and implemented by the Dutch authorities strongly relies on largely structural expenditure cutbacks, amounting to approximately 3 % of GDP by the end of the Stability Programme period (2015) compared to the baseline. The resulting adjustment path envisages a reduction in the general government deficit from 3,8 % of GDP in 2011 to 2,4 % of GDP in 2012, falling further in annual steps of around 0,5 % in the period 2013-2015. The Netherlands is firmly committed to reaching those targets. Safeguarding growth-enhancing policy areas such as education from budgetary cuts would avoid hampering the future potential for economic growth, and contribute to achieving a sustainable correction to the excessive deficit.

(10)

Besides short-term consolidation, one of the main challenges is improving the long-term sustainability of public finances, which is negatively affected by the strong increase in age-related expenditure. The long-term cost of ageing is clearly above the EU average, notably in long-term care and pensions. The expected increase in long-term care expenditure is the highest in Europe, as shown in the Commission's 2009 Ageing Report. The main reason for this is the existence of an already comprehensive system of formal long-term care (e.g. public long-term insurance covering personal care, nursing, assistance, treatment and stay in an institution), while informal care plays a more limited role in the Netherlands. According to the Commission's latest assessment, the risks with regard to the long-term sustainability of public finances appear to be high. Beyond its consolidation plans, the Dutch government has submitted measures to Parliament that will support long term sustainability including a rise in the statutory retirement age which has not yet been adopted.

(11)

The Dutch labour market is characterised by relatively high participation rates, high productivity per hour worked and low unemployment. However, the main challenge for the labour market will be to increase the utilisation of untapped labour potential, in particular to compensate for the expected decrease in the working age population as a result of ageing. The average amount of hours worked per year is the lowest in the EU, as confirmed by the latest available data. The low number of hours worked results from the very large share of people working part-time, particularly women, reflecting personal preferences but also the existence of financial disincentives for either entering the labour market or for extending the hours worked. Currently, one of the main disincentives for second-income earners to enter the labour market or to work more hours in the Netherlands is the high marginal tax rate on second incomes, which can in some cases turn out to be above 80 %, as a result of inter alia the general tax credit and the reduction in income-dependent benefits such as childcare subsidy.

(12)

For an increasing and heterogeneous group of partly disabled, long-term unemployed who face a growing risk of structural unemployment, the implementation of active labour market policies has apparently not produced positive results. Non-EU nationals are experiencing particular difficulties, thereby amplifying the persistent employment and unemployment gaps.

(13)

The Dutch research and innovation (R&I) system has succeeded in maintaining its innovative capacity, but the low share of the private sector in research and development (R&D) investment may negatively affect future economic growth and the competitiveness of the Dutch economy. The government aims to create an attractive climate for R&I-intensive firms, including firms from abroad, in terms of fiscal incentives, space for entrepreneurs and excellence of research. Due to the need for budgetary consolidation this year, some subsidies for companies may, however, not be continued while others will be streamlined and targeted towards ‘top economic areas’ and shifted to more generic tax instruments.

(14)

The business environment is negatively affected by the congestion levels in road and rail transport. These congestion levels are among the highest in the EU. In this context, a relatively inefficient transport infrastructure negatively affects labour mobility and thus potential growth through productivity. Workers are faced with long commutes, unreliable travel times and high congestion costs. The latter are expected to increase further until 2020 in the absence of policy changes. Improvements in the efficient use of infrastructure (e.g. through road pricing measures), would contribute to increasing labour mobility and productivity and thus to potential growth.

(15)

On 4 April 2011, the Netherlands announced a number of commitments under the Euro Plus Pact. These include measures to foster competitiveness (introduction of a new business policy based on more generic reductions in taxation and administrative burdens) and employment (making social security more activating and reducing dependence on unemployment benefits), to contribute further to the sustainability of public finances (anchoring the stability and growth pact in national law) and to reinforce financial stability (more power to supervisory institutions). These commitments refer to all areas of the Pact. They represent a continuation of the broader reform agenda outlined in the Stability and National Reform Programmes. However, there is a lack of detail in terms of their timing and the measures that will be needed to implement them. These commitments have been assessed and taken into account in the recommendations.

(16)

The Commission has assessed the Stability Programme and National Reform Programme, including the Euro Plus Pact commitments. It has taken into account not only their relevance for sustainable fiscal and socio-economic policy in the Netherlands but also their conformity with EU rules and guidance, given the need to reinforce the overall economic governance of the EU by providing EU-level input into future national decisions. It considers that the fully specified Dutch budgetary consolidation strategy should be implemented as envisaged, while preserving expenditure in areas most conducive to long-term growth. Further steps should be taken to improve the long-term sustainability of public finances, notably in the areas of pensions and long-term care, to increase labour market participation and integration, and to address the issues arising from transport congestion.

(17)

In the light of this assessment, also taking into account the Council Recommendation of 2 December 2009 under Article 126(7) of the Treaty on the Functioning of the European Union, the Council has examined the 2011 update of the Stability Programme of the Netherlands and its opinion (3) is reflected in particular in its recommendations (1) and (2) below. Taking into account the European Council conclusions of 25 March 2011, the Council has examined the National Reform Programme of the Netherlands,

1.

Implement the budgetary strategy for the year 2012, in line with the Council recommendations on correcting the excessive deficit, setting the high public debt ratio on a downward path. Thereafter, progress towards the medium-term objective in line with the Stability and Growth Pact requirements, respecting the overall spending ceilings and consolidation requirements, thereby ensuring that consolidation is sustainable and growth-friendly, by protecting expenditure in areas directly relevant for growth such as research and innovation, education and training.

2.

Take measures to increase the statutory retirement age by linking it to life expectancy, and underpin these measures with others to raise the effective retirement age and to improve the long-term sustainability of public finances. Prepare a blueprint for reforming long-term care in view of an ageing population.

3.

Enhance participation in the labour market by reducing fiscal disincentives for second-income earners to work and draw up measures to support the most vulnerable groups and help them to re-integrate within the labour market.

4.

Promote innovation, private R&D investment and closer science-business links by providing suitable incentives in the context of the new enterprise policy (‘Naar de top’).

19.7.2011   

EN

Official Journal of the European Union

C 212/16

1.

The distance between the Stoneyhill site and the nearest point on the territory of another Member State, in this case Ireland, is 398 km.

2.

The descaling facility will not be subject to a discharge authorisation for liquid and gaseous radioactive effluents. During normal operations, the descaling facility will not discharge liquid radioactive effluents. However, natural radioactive gas (radon) will emanate from the descaling facility and minute amounts of radioactive aerosols will be released; neither will be liable to affect the health of the population of another Member State.

3.

During the disposal facility's operational period:

4.

Following the disposal facility's operational period:

The measures envisaged for the final closure of the disposal facility as described in the General Data provide reliance that the conclusions under point 2 above will remain valid in the long term.

5.

In the event of unplanned releases of radioactive effluents, which may follow the accidents of the types and magnitudes considered in the General Data, the doses likely to be received by the population in another Member State will not be liable to affect the health of the population.

19.7.2011   

EN

Official Journal of the European Union

C 212/18

—

in the merger section of the Competition website of the Commission (http://ec.europa.eu/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

—

in electronic form on the EUR-Lex website (http://eur-lex.europa.eu/en/index.htm) under document number 32011M6175. EUR-Lex is the on-line access to the European law.

19.7.2011   

EN

Official Journal of the European Union

C 212/18

—

in the merger section of the Competition website of the Commission (http://ec.europa.eu/competition/mergers/cases/). This website provides various facilities to help locate individual merger decisions, including company, case number, date and sectoral indexes,

—

in electronic form on the EUR-Lex website (http://eur-lex.europa.eu/en/index.htm) under document number 32011M6191. EUR-Lex is the on-line access to the European law.

19.7.2011   

EN

Official Journal of the European Union

C 212/19

Council of the European Union

General Secretariat

DG K Coordination Unit (10 HN 43)

Rue de la Loi/Wetstraat 175

1048 Bruxelles/Brussel

BELGIQUE/BELGIË

19.7.2011   

EN

Official Journal of the European Union

C 212/20

Council of the European Union

(Attn: CP 931 designations)

Rue de la Loi/Wetstraat 175

1048 Bruxelles/Brussel

BELGIQUE/BELGIË

19.7.2011   

EN

Official Journal of the European Union

C 212/21

19.7.2011   

EN

Official Journal of the European Union

C 212/22

—

to better meet the challenges of food security, climate change, the sustainable use of natural resources and balanced regional development,

—

to help the farming sector cope with the effects of the economic crisis and the increased volatility of agricultural prices,

—

to contribute to the development of growth that is intelligent, sustainable and inclusive as set out in the Europe 2020 strategy.

—

at national level, by uniting various partners around a major joint project,

—

at European level, in a maximum number of Member States so as to increase its impact.

—

ensure better public understanding of the CAP, its history and development, past but also future in the context of the proposals for reform, both in the country concerned and at European level,

—

stimulate public interest, particularly in urban areas, in the role of agriculture and rural development in our society by promoting farmers’ multiple roles.

—

production and distribution of innovative and original multimedia and/or audiovisual material (radio and/or television programmes (4), such as ‘reality shows’, talk-shows, clips, etc.) (5),

—

public poster campaigns in places with a lot of thoroughfare (metros, stations etc.),

—

events of the ‘city farm’ type, etc.,

—

media events,

—

conferences, seminars and specialised working parties targeting specific groups.

1.

It includes a dissemination plan capable of reaching as broad a spectrum of the public as possible covering at least three Member States and representing a minimum of 5 % of the national population of all the Member States covered, and whose expected (ex-ante) and achieved (ex-post) will be demonstrated by sufficient external proof (viewing statistics, etc).

2.

The evaluation committee (hereinafter ‘the committee’) has awarded it at least 75 points out of 100 for the award criteria set out in Annex III(2).

—

the letter of application giving the title of the proposed information measure and the amount of grant requested, signed by the legally authorised person responsible within the applicant organisation; it should be noted that the amount of the grant requested in the letter should be the same as the amount of EU co-financing indicated in the income table of the budget (points g and h),

—

Form 1 (information on the applicant), Form 2 (information on co-organisers, if any), and Form 3 (detailed description of the information measure) of the application. If a question does not apply to the proposed information measure, ‘not applicable’ or ‘n/a’ should be entered. Only applications submitted on these forms will be considered; furthermore; If Form 2 does not apply please write N/A on the cover page of this form,

—

a budget for the proposed information measure (comprising a detailed table of expenditure and a detailed table of income in balance), duly completed, signed and dated by the legally authorised person within the applicant organisation,

—

all the additional documents listed in Annex I (additional documents to be attached to the grant application).

European Commission

Unit AGRI. K.1.

Call for proposals 2011/C /…

Attn. Angela Filote

L130 4/148A

1049 Bruxelles/Brussel

BELGIQUE/BELGIË

19.7.2011   

EN

Official Journal of the European Union

C 212/36

1.

On 11 July 2011, the Commission received a notification of a proposed concentration pursuant to Article 4 of Council Regulation (EC) No 139/2004 (1) by which investments funds affiliated with KKR & Co. L.P. (‘KKR’, USA) and Sorgenia SpA (‘Sorgenia’, Italy), which is part of the group of companies controlled by Cofide, acquire, within the meaning of Article 3(1)(b) of the Merger Regulation, indirect joint control of Sorgenia France SA (‘Sorgenia France’, France), currently solely controlled by Sorgenia, by way of purchase of shares.

2.

The business activities of the undertakings concerned are:

3.

On preliminary examination, the Commission finds that the notified transaction could fall within the scope of the EC Merger Regulation. However, the final decision on this point is reserved. Pursuant to the Commission Notice on a simplified procedure for treatment of certain concentrations under the EC Merger Regulation (2) it should be noted that this case is a candidate for treatment under the procedure set out in the Notice.

4.

The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission.

Observations must reach the Commission not later than 10 days following the date of this publication. Observations can be sent to the Commission by fax (+32 22964301), by email to COMP-MERGER-REGISTRY@ec.europa.eu or by post, under reference number COMP/M.6299 — KKR/Sorgenia/Sorgenia France, to the following address:

19.7.2011   

EN

Official Journal of the European Union

C 212/37

1.

On 8 July 2011, the Commission received a notification of a proposed concentration pursuant to Article 4 of Council Regulation (EC) No 139/2004 (1) by which RREEF Pan-European Infrastructure Fund II, LP (‘RREEF’), ultimately controlled by Deutsche Bank AG (‘Deutsche Bank’, Germany), acquires joint control within the meaning of Article 3(1)(b) of the Merger Regulation of Arenales Solar PS, S.L. (‘Arenales’, Spain), by way of a purchase of shares. Arenales is currently jointly controlled by Solar Millenium AG (‘SMAG’, Germany) and OHL Industrial, S.L., part of the Villar Mir group (‘OHL/Villar’, Spain).

2.

The business activities of the undertakings concerned are:

3.

On preliminary examination, the Commission finds that the notified transaction could fall within the scope of the EC Merger Regulation. However, the final decision on this point is reserved. Pursuant to the Commission Notice on a simplified procedure for treatment of certain concentrations under the EC Merger Regulation (2) it should be noted that this case is a candidate for treatment under the procedure set out in the Notice.

4.

The Commission invites interested third parties to submit their possible observations on the proposed operation to the Commission.

Observations must reach the Commission not later than 10 days following the date of this publication. Observations can be sent to the Commission by fax (+32 22964301), by email to COMP-MERGER-REGISTRY@ec.europa.eu or by post, under reference number COMP/M.6238 — RREEF/SMAG/OHL — Arenales, to the following address: