26.1.2013   

EN

Official Journal of the European Union

L 26/1

(1)

In order to ensure uniform application of the Combined Nomenclature annexed to Regulation (EEC) No 2658/87, it is necessary to adopt measures concerning the classification of the goods referred to in the Annex to this Regulation.

(2)

Regulation (EEC) No 2658/87 has laid down the general rules for the interpretation of the Combined Nomenclature. Those rules apply also to any other nomenclature which is wholly or partly based on it or which adds any additional subdivision to it and which is established by specific provisions of the Union, with a view to the application of tariff and other measures relating to trade in goods.

(3)

Pursuant to those general rules, the goods described in column (1) of the table set out in the Annex should be classified under the CN code indicated in column (2), by virtue of the reasons set out in column (3) of that table.

(4)

It is appropriate to provide that binding tariff information which has been issued by the customs authorities of Member States in respect of the classification of goods in the Combined Nomenclature but which is not in accordance with this Regulation can, for a period of three months, continue to be invoked by the holder, under Article 12(6) of Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (2).

(5)

The measures provided for in this Regulation are in accordance with the opinion of the Customs Code Committee,

26.1.2013   

EN

Official Journal of the European Union

L 26/5

(1)

In order to ensure uniform application of the Combined Nomenclature annexed to Regulation (EEC) No 2658/87, it is necessary to adopt measures concerning the classification of the goods referred to in the Annex to this Regulation.

(2)

Regulation (EEC) No 2658/87 has laid down the general rules for the interpretation of the Combined Nomenclature. Those rules apply also to any other nomenclature which is wholly or partly based on it or which adds any additional subdivision to it and which is established by specific provisions of the Union, with a view to the application of tariff and other measures relating to trade in goods.

(3)

Pursuant to those general rules, the goods described in column (1) of the table set out in the Annex should be classified under the CN code indicated in column (2), by virtue of the reasons set out in column (3) of that table.

(4)

It is appropriate to provide that binding tariff information which has been issued by the customs authorities of Member States in respect of the classification of goods in the Combined Nomenclature but which is not in accordance with this Regulation can, for a period of three months, continue to be invoked by the holder, under Article 12(6) of Council Regulation (EEC) No 2913/92 of 12 October 1992 establishing the Community Customs Code (2).

(5)

The measures provided for in this Regulation are in accordance with the opinion of the Customs Code Committee,

26.1.2013   

EN

Official Journal of the European Union

L 26/7

(1)

Commission Regulation (EU) No 206/2010 (3) lays down the veterinary certification requirements for the introduction into the Union of certain consignments of live animals or fresh meat. It also establishes lists of third countries, territories or parts thereof which fulfill certain criteria and from which therefore consignments may be introduced into the Union.

(2)

Regulation (EU) No 206/2010 authorises the imports of fresh deboned and matured bovine meat from the whole territory of Uruguay.

(3)

Uruguay is free of foot and mouth disease but practices vaccination. It has thus a general health status for bovine animals different from that of the Union. As a result Uruguay is only allowed to export fresh deboned and matured meat of bovine animals. The import requirements provide that the bovine animals intended for slaughter for export of fresh meat to the Union are sent directly from the holding of origin to the slaughterhouse. This rule excludes many small holdings from producing for the Union market as their animals always pass through assembly centres or animal markets before slaughter.

(4)

A Union audit in March 2012 confirmed that Uruguay’s identification and movement registration system allows certifying veterinarians to verify the prior whereabouts of the animals. The system thus ensures that animals have stayed 40 days on one holding before transport to the slaughterhouse. Uruguay can also guarantee that the Union animal health import requirements for bovine animals destined for slaughter for export of fresh deboned and matured bovine meat to the Union are respected even if those animals pass through assembly centres and/or markets prior to slaughter due to a system that identifies all bovine animals individually so that they can be traced back to their origin.

(5)

Uruguay thus offers guarantees sufficient to ensure that all bovine animals whose meat is destined for export to the Union have the same health status when passing through an assembly centre (including markets) in Uruguay prior to slaughter. Therefore, the entry corresponding to this country in the list in Part 1 of Annex II to Regulation (EU) No 206/2010 should be adapted.

(6)

An error appeared in two references to footnotes contained in Part II.2 of the model certificate ‘OVI-X’ set out in Part 2 of Annex I to Regulation (EU) No 206/2010. Regulation (EU) No 206/2010 should therefore be amended and corrected accordingly.

(7)

The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on the Food Chain and Animal Health,

(a)

in point II.2.8, the phrase:

is replaced by the following:

(b)

in point II.2.9, the introductory phrase:

‘they are/were(1) dispatched from their holding(s) of origin, without passing through any market,’

is replaced by the following:

‘they are/were(2) dispatched from their holding(s) of origin, without passing through any market,’

26.1.2013   

EN

Official Journal of the European Union

L 26/9

(1)

By Commission Regulation (EC) No 180/2008 of 28 February 2008 concerning the Community reference laboratory for equine diseases other than African horse sickness and amending Annex VII to Regulation (EC) No 882/2004 of the European Parliament and of the Council (3), the Commission designated ANSES with its laboratories for animal health and equine diseases, France, as the EU reference laboratory for equine diseases other than African horse sickness for a period of five years from 1 July 2008 and set up its functions, tasks and procedures regarding collaboration with laboratories responsible for diagnosing infectious diseases of equidae in the Member States.

(2)

By Commission Regulation (EC) No 737/2008 of 28 July 2008 designating the Community reference laboratories for crustacean diseases, rabies and bovine tuberculosis, laying down additional responsibilities and tasks for the Community reference laboratories for rabies and bovine tuberculosis and amending Annex VII to Regulation (EC) No 882/2004 of the European Parliament and of the Council (4), the Commission designated the Centre for Environment, Fisheries & Aquaculture Science (Cefas), Weymouth Laboratory, United Kingdom, as the EU reference laboratory for crustacean diseases for a period of five years from 1 July 2008.

(3)

In order to ensure a high quality and uniformity of analytical and diagnostic results in the Union, it is important that the designated EU reference laboratories for equine diseases other than African horse sickness and for crustacean diseases continue to carry out their activities for another five year period.

(4)

The period for which those laboratories were designated as EU reference laboratories should therefore be extended.

(5)

After the entry into force of the Treaty of Lisbon, the laboratories listed in Regulation (EC) No 737/2008 previously referred to as ‘Community reference laboratories’ should now be referred to as ‘European Union (EU) reference laboratories’.

(6)

Regulations (EC) No 180/2008 and (EC) No 737/2008 should therefore be amended accordingly.

(7)

The measures provided for in this Regulation are in accordance with the opinion of the Standing Committee on the Food Chain and Animal Health,

26.1.2013   

EN

Official Journal of the European Union

L 26/11

(1)

Regulation (EC) No 689/2008 implements the Rotterdam Convention on the Prior Informed Consent Procedure (‘PIC procedure’) for certain hazardous chemicals and pesticides in international trade, signed on 11 September 1998 and approved, on behalf of the Community, by Council Decision 2003/106/EC (2).

(2)

It is appropriate that regulatory action in respect of certain chemicals taken pursuant to Regulation (EC) No 1107/2009 of the European Parliament and of the Council of 21 October 2009 concerning the placing of plant protection products on the market and repealing Council Directives 79/117/EEC and 91/414/EEC (3), Directive 98/8/EC of the European Parliament and of the Council of 16 February 1998 concerning the placing of biocidal products on the market (4) and Regulation (EC) No 1907/2006 of the European Parliament and of the Council of 18 December 2006 concerning the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH), establishing a European Chemicals Agency, amending Directive 1999/45/EC and repealing Council Regulation (EEC) No 793/93 and Commission Regulation (EC) No 1488/94 as well as Council Directive 76/769/EEC and Commission Directives 91/155/EEC, 93/67/EEC, 93/105/EC and 2000/21/EC (5) be taken into account.

(3)

Decisions taken in respect of certain chemicals under the Stockholm Convention on persistent organic pollutants (‘the Stockholm Convention’), signed on 22 May 2001 and approved, on behalf of the Community, by Council Decision 2006/507/EC (6) and subsequent regulatory action in respect of those chemicals taken pursuant to Regulation (EC) No 850/2004 of the European Parliament and of the Council of 29 April 2004 on persistent organic pollutants and amending Directive 79/117/EEC (7) should also be taken into account.

(4)

The substances acetochlor, asulam, chloropicrin and propargite have not been approved as active substances under Regulation (EC) No 1107/2009, with the effect that those substances are banned for pesticide use and thus should be added to the lists of chemicals contained in Parts 1 and 2 of Annex I to Regulation (EC) No 689/2008. The addition of acetochlor, asulam, chloropicrin and propargite to Annex I was suspended due to a new application for inclusion in Annex I to Council Directive 91/414/EEC of 15 July 1991 concerning the placing of plant protection products on the market (8) submitted pursuant to Article 13 of Commission Regulation (EC) No 33/2008 of 17 January 2008 laying down detailed rules for the application of Council Directive 91/414/EEC as regards a regular and an accelerated procedure for the assessment of active substances which were part of the programme of work referred to in Article 8(2) of that Directive but have not been included into its Annex I (9). That new application resulted again in the decision not to approve the substances acetochlor, asulam, chloropicrin and propargite as active substances under Regulation (EC) No 1107/2009 with the effect that acetochlor, asulam, chloropicrin and propargite remain banned for pesticide use and that the reason for suspending the addition to Annex I disappeared. Therefore, the substances acetochlor, asulam, chloropicrin and propargite should be added to the lists of chemicals contained in Parts 1 and 2 of Annex I to Regulation (EC) No 689/2008.

(5)

The substance flufenoxuron has not been approved as an active substance under Regulation (EC) No 1107/2009 and the substance flufenoxuron has not been included as an active substance in Annex I, IA or IB to Directive 98/8/EC for product type 18, with the effect that flufenoxuron is severely restricted for pesticide use and thus should be added to the lists of chemicals contained in Parts 1 and 2 of Annex I to Regulation (EC) No 689/2008 because virtually all use is prohibited despite the fact that flufenoxuron has been included in Annex I to Directive 98/8/EC for product type 8 and may thus be authorised by Member States for use in wood preservatives subject to specific conditions. The addition of flufenoxuron to Annex I was suspended due to a new application for inclusion in Annex I to Directive 91/414/EEC submitted pursuant to Article 13 of Regulation (EC) No 33/2008. That new application resulted again in the decision not to approve flufenoxuron as active substance under Regulation (EC) No 1107/2009 with the effect that the reason for suspending the addition to Annex I disappeared. Therefore, the substance flufenoxuron should be added to the lists of chemicals contained in Parts 1 and 2 of Annex I to Regulation (EC) No 689/2008.

(6)

The substance naled has not been included as an active substance in Annex I, IA or IB to Directive 98/8/EC and naled has not been included as an active substance in Annex I to Directive 91/414/EEC, with the effect that naled is banned for pesticide use and thus should be added to the lists of chemicals contained in Parts 1 and 2 of Annex I to Regulation (EC) No 689/2008.

(7)

The substances 2-naphthyloxyacetic acid, diphenylamine and propanil have not been approved as active substances under Regulation (EC) No 1107/2009, with the effect that 2-naphthyloxyacetic acid, diphenylamine and propanil are banned for pesticide use and thus should be added to the lists of chemicals contained in Parts 1 and 2 of Annex I to Regulation (EC) No 689/2008. The addition of 2-naphthyloxyacetic acid, diphenylamine and propanil to Part 2 of Annex I was suspended due to a new application for inclusion in Annex I to Directive 91/414/EEC submitted pursuant to Article 13 of Regulation (EC) No 33/2008. This new application resulted again in the decision not to include the substances 2-naphthyloxyacetic acid, diphenylamine and propanil as active substances in Annex I to Directive 91/414/EEC with the effect that 2-naphthyloxyacetic acid, diphenylamine and propanil remain banned for pesticide use and that the reason for suspending the addition to Part 2 of Annex I disappeared. Therefore, the substances 2-naphthyloxyacetic acid, diphenylamine and propanil should be added to the list of chemicals contained in Part 2 of Annex I to Regulation (EC) No 689/2008.

(8)

At its fifth meeting in June 2011, the Conference of the Parties to the Rotterdam Convention decided to include alachlor, aldicarb and endosulfan in Annex III to that Convention, with the effect that alachlor, aldicarb and endosulfan became subject to the PIC procedure under that Convention and thus should be removed from the list of chemicals contained in Part 2 and added to the list of chemicals contained in Part 3 of Annex I to Regulation (EC) No 689/2008.

(9)

The substance dichlorvos has not been included as an active substance in Annex I, IA or IB to Directive 98/8/EC and dichlorvos has not been included as an active substance in Annex I to Directive 91/414/EEC, with the effect that dichlorvos is banned for pesticide use. Since dichlorvos is already included in the lists of chemicals contained in Parts 1 and 2 of Annex I to Regulation (EC) No 689/2008, those entries should be amended to reflect the latest legal developments.

(10)

The substances bifenthrin and metam have been approved as active substances under Regulation (EC) No 1107/2009, with the effect that bifenthrin and metam are no longer banned for pesticide use. Consequently, the active substances bifenthrin and metam should be deleted from Part 1 of Annex I to Regulation (EC) No 689/2008.

(11)

The substance cyanamide should be removed from Part 2 of Annex I to Regulation (EC) No 689/2008 since evidence was submitted that the ban in the subcategory ‘pesticide in the group of plant protection products’ does not represent a severe restriction of the use of the substance at the level of the category ‘pesticide’ due to the fact that cyanamide has important uses as a biocide. Cyanamide has been identified and notified for evaluation under Directive 98/8/EC. Biocidal products containing cyanamide may thus continue to be authorised by Member States in accordance with their national rules, until a decision under that Directive is taken.

(12)

Regulation (EC) No 850/2004, as amended by Commission Regulation (EU) No 519/2012 (10) implements the decision taken under the Stockholm Convention to list endosulfan in Part 1 of Annex A to the Stockholm Convention by adding that chemical to Part A of Annex I to Regulation (EC) No 850/2004. Consequently, that chemical should be added to Part 1 of Annex V to Regulation (EC) No 689/2008.

(13)

Regulation (EC) No 689/2008 should therefore be amended accordingly.

(14)

In order to allow enough time for industry to take the measures necessary for compliance with this Regulation and for Member States to take the measures necessary for implementation of this Regulation, its application should be deferred.

(15)

The measures provided for in this Regulation are in accordance with the opinion of the Committee established by Article 133 of Regulation (EC) No 1907/2006,

(1)

Annex I is amended in accordance with Annex I to this Regulation;

(2)

Annex V is amended in accordance with Annex II to this Regulation.

26.1.2013   

EN

Official Journal of the European Union

L 26/17

(1)

The Annex to Commission Regulation (EU) No 1125/2010 of 3 December 2010 determining the intervention centres for cereals and amending Regulation (EC) No 1173/2009 (2) designates the intervention centres for cereals.

(2)

In accordance with Article 55(1) of Commission Regulation (EU) No 1272/2009 of 11 December 2009 laying down common detailed rules for the implementation of Council Regulation (EC) No 1234/2007 as regards buying-in and selling of agricultural products under public intervention (3), Germany, Spain and Slovakia have communicated to the Commission the amended list of their intervention centres for cereals and the list of storage premises (4) attached to those centres which have been approved as fulfilling the minimum standards required by EU legislation.

(3)

Regulation (EU) No 1125/2010 should therefore be amended accordingly, and the list of storage premises attached thereto should be published on the internet, together with all the information required by the operators involved in public intervention.

(4)

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

26.1.2013   

EN

Official Journal of the European Union

L 26/19

(1)

The representative prices and additional duties applicable to imports of white sugar, raw sugar and certain syrups have been fixed for the 2012/2013 marketing year by Commission Implementing Regulation (EU) No 892/2012 (2).

(2)

Article 141(2) of Regulation (EC) No 1234/2007 establishes that additional import duties are not be imposed where the imports are unlikely to disturb the Community market, or where the effects would be disproportionate to the intended objective.

(3)

For a significant period of time, sugar prices in the Union market have been far above the reference price and, based on current market forecast, it is not expected that the world market price of sugar would be reduced to such levels that, taking into account the current import tariff, the imports of sugar would disturb the EU sugar market in the absence of additional duties. Under these circumstances of relatively high world market prices, imports of sugar products covered by Article 36(1) of Commission Regulation (EC) No 951/2006 of 30 June 2006 laying down detailed rules for the implementation of Council Regulation (EC) No 318/2006 as regards trade with third countries in the sugar sector (3) are not likely to disturb the Union market and consequently no additional duties on these imports should be imposed. Taking into account the fundamentals of the world and Union sugar markets, this situation is unlikely to change significantly for the next two marketing years, i.e. till the end of the Union quota regime.The Commission monitors constantly the sugar market and shall take any appropriate measures if necessary.

(4)

As long as additional duties are not imposed, there is no need to fix the representative prices which are used to calculate them.

(5)

It is then appropriate to derogate from the application of Article 36 of Regulation (EC) No 951/2006 until the end of the marketing year 2014/2015.

(6)

Implementing Regulation (EU) No 892/2012 should therefore be repealed.

(7)

The Management Committee for the Common Organisation of Agricultural Markets has not delivered an opinion within the time limit set by its Chair,

26.1.2013   

EN

Official Journal of the European Union

L 26/21

(1)

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

(2)

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

26.1.2013   

EN

Official Journal of the European Union

L 26/23

(1)

Implementing Regulation (EU) No 1273/2011 opened and provided for the administration of certain import tariff quotas for rice and broken rice, broken down by country of origin and split into several subperiods in accordance with Annex I to that Implementing Regulation.

(2)

January is the first subperiod for the quotas provided for under Article 1(1)(a), (b), (c) and (d) of Implementing Regulation (EU) No 1273/2011.

(3)

The notifications sent in accordance with point (a) of Article 8 of Implementing Regulation (EU) No 1273/2011 show that, for the quotas with order number 09.4153 — 09.4154 — 09.4112 — 09.4116 — 09.4117 — 09.4118 — 09.4119 — 09.4166, the applications lodged in the first 10 working days of January 2013 under Article 4(1) of that Implementing Regulation cover a quantity greater than that available. The extent to which import licences may be issued should therefore be determined by fixing the allocation coefficient to be applied to the quantity requested under the quotas concerned.

(4)

Those notifications also show that, for the quotas with order number 09.4127 — 09.4128 — 09.4148 — 09.4149 — 09.4150 — 09.4152, the applications lodged in the first 10 working days of January 2013 under Article 4(1) of Implementing Regulation (EU) no 1273/2011 cover a quantity less than that available.

(5)

The total quantity available for the following subperiod should also be fixed for the quotas with order number 09.4127 — 09.4128 — 09.4148 — 09.4149 — 09.4150 — 09.4152 — 09.4153 — 09.4154 — 09.4112 — 09.4116 — 09.4117 — 09.4118 — 09.4119 — 09.4166, in accordance with the first subparagraph of Article 5 of Implementing Regulation (EU) No 1273/2011.

(6)

In order to ensure sound management of the procedure of issuing import licences, this Regulation should enter into force immediately after its publication,

26.1.2013   

EN

Official Journal of the European Union

L 26/27

(1)

The right of every citizen of the Union to vote and to stand as a candidate in elections to the European Parliament in his Member State of residence is recognised under Article 20(2)(b) of the Treaty on the Functioning of the European Union and under Article 39(1) of the Charter of Fundamental Rights of the European Union. Council Directive 93/109/EC of 6 December 1993 laying down detailed arrangements for the exercise of the right to vote and stand as a candidate in elections to the European Parliament for citizens of the Union residing in a Member State of which they are not nationals (2) provides for arrangements for the exercise of that right.

(2)

The Commission reports of 12 December 2006 and of 27 October 2010 on the application of Directive 93/109/EC to the 2004 elections and the 2009 elections, respectively, revealed the need to amend certain provisions of Directive 93/109/EC.

(3)

Directive 93/109/EC provides that any citizen of the Union who has been deprived of his right to stand as a candidate under either the law of the Member State of residence or the law of his home Member State shall be precluded from exercising that right in the Member State of residence in elections to the European Parliament. To that end, Directive 93/109/EC requires a citizen of the Union, when submitting his application to stand as a candidate in a Member State other than the home Member State, to produce an attestation from the competent administrative authorities of the home Member State certifying that the person concerned has not been deprived of the right to stand as a candidate in the home Member State or that no such disqualification is known to them.

(4)

The difficulties encountered by such citizens in identifying the authorities empowered to issue that attestation and in obtaining it in good time act as a barrier to the exercise of the right to stand as a candidate and contribute to the low number of citizens of the Union standing as candidates in elections to the European Parliament in their Member State of residence.

(5)

The requirement for those citizens to submit such an attestation should accordingly be abolished and replaced by a statement confirming that the person concerned has not been deprived of the right to stand in the elections to the European Parliament, to be included in the formal declaration that those citizens are required to produce as part of their application.

(6)

The Member State of residence should be required to notify the home Member State of such declarations, in order to verify whether the citizen of the Union has in fact been deprived of the right to stand in elections to the European Parliament in the home Member State. Upon receipt of that notification, the home Member State should provide the Member State of residence with relevant information within a time-limit allowing for the admissibility of the candidacy to be effectively assessed.

(7)

Failure by the home Member State to provide that information on time should not result in the deprivation of the right to stand as a candidate in the Member State of residence. In cases where the relevant information is provided at a later stage, the Member State of residence should ensure, by appropriate measures and in accordance with the procedures provided for by its national law, that citizens of the Union deprived of the right to stand in their home Member State who were registered on the roll or have already been elected, are prevented from being elected or from exercising their mandate.

(8)

Given that the admissibility procedure in a Member State necessarily entails additional administrative steps for a national of another Member State than for the nationals of that Member State, it should be possible for Member States to set a different deadline for the submission of applications to stand as a candidate by citizens of the Union who are not nationals than that set for national citizens. Any difference in the deadline should be limited to that which is necessary and proportionate in order to allow for the notification of the information from the home Member State to be taken into account in good time, with a view to rejecting an application before the nomination of the candidates. Establishing such a separate deadline should not affect the deadlines for obligations for other Member States to effect notifications pursuant to Directive 93/109/EC.

(9)

To facilitate communication between national authorities, Member States should designate one contact point to be responsible for the notification of information concerning such candidates.

(10)

To ensure a more efficient identification of candidates registered both on the list of their home Member State and that of the Member State of residence, the list of data to be required from citizens of the Union when submitting an application to stand as candidates in the Member State of residence should include their date and place of birth and the last address of residence in their home Member State.

(11)

In accordance with the Joint Political Declaration of 28 September 2011 of Member States and the Commission on explanatory documents, Member States have undertaken to accompany, in justified cases, the notification of their transposition measures with one or more documents explaining the relationship between the components of a directive and the corresponding parts of national transposition instruments. With regard to this Directive, the legislator considers the transmission of such documents to be justified.

(12)

Directive 93/109/EC should therefore be amended accordingly,

(1)

Article 6 is amended as follows:

(2)

Article 10 is amended as follows:

26.1.2013   

EN

Official Journal of the European Union

L 26/30

(1)

In line with Article 3(10) of Council Implementing Decision 2011/344/EU (2), the Commission, together with the International Monetary Fund (IMF) and in liaison with the European Central Bank (ECB), has conducted the sixth review of the Portuguese authorities’ progress on the implementation of the agreed measures under the economic and financial adjustment programme (‘Programme’) as well as of their effectiveness and economic and social impact.

(2)

After a strong decline of 3 % in 2012 in real terms, economic activity is expected to gradually recover starting from the second half of 2013 with quarterly growth rates returning to positive territory. Looking forward, the economic recovery is expected to gather pace in 2014 despite risks to the macroeconomic outlook. This includes potential headwinds from domestic consumption and a stronger-than-expected deterioration of the economic climate in some euro area Member States, which could have spill-over effects on Portugal.

(3)

The 5 % of gross domestic product (GDP) budget deficit target for 2012 remains valid, even though there are some risks. While the budgetary execution on the expenditure side remains under control, revenues until October continued to fall short of already downward revised targets. Additional saving measures worth around 0,3 % of GDP are being implemented to meet the deficit target, but there are some uncertainties with regard to their final yield. Finally, the statistical authorities are still assessing whether the sale of the airport concession (ANA), estimated at 0,7 % of GDP, can be treated as a deficit-reducing operation.

(4)

The 2013 budget law, which was adopted on 27 November 2012, includes discretionary measures of more than 3 % of GDP to achieve the deficit target of 4,5 % of GDP in 2013. On the expenditure side, the budget envisages a sizeable reduction in the public sector wage bill through lower employment coupled with a reduction in overtime payments and other compensations. Rationalisation efforts in the health sector, state-owned enterprises (SOEs) and public-private partnerships (PPPs) will be deepened, while social spending will be further streamlined. On the revenue side, the 2013 budget provides for a comprehensive restructuring of the personal income tax that will reduce the number of brackets and increase the average tax rate in line with European standards, while preserving progressivity and curbing tax benefits. In addition, a surcharge of 3,5 % will be imposed on the part of taxable income above the minimum wage and a solidarity surcharge of 2,5 % on income above EUR 80 000 and of 5 % on income above EUR 250 000. Corporate income tax revenues will be increased by means of limiting the deductibility of interest costs, reducing the threshold for applying the highest surcharge on profits and changing the methodology for special prepayment to companies under group taxation, among others. The 2013 budget also includes changes in indirect taxation, in particular an increase in excise taxes on tobacco, alcohol and natural gas, a broadening of the base of property taxation after a revaluation of properties, and the creation of a financial transaction tax. In addition, social contributions will rise as they will also be charged on supplementary payments for public employees and on unemployment benefits.

(5)

Taking into account the measures in the 2013 budget, revenue increases will contribute by 80 % to the fiscal adjustment in 2013 while the remaining 20 % will come from expenditure reductions (after considering the effect of the reinstatement of the 13th salary in the public sector and 1,1 monthly pensions, following the decision of the Constitutional Court). In view of the risks associated with the strongly revenue-based adjustment, the Portuguese authorities are preparing contingency measures amounting to 0,5 % of GDP which will be activated if risks materialise. The measures will mainly consist of expenditure savings, in particular further reductions in payroll costs, and will be further specified in early 2013 in time for the seventh review.

(6)

The budgetary adjustment process is underpinned by a range of structural measures to enhance control over government expenditure and improve revenue collection. In particular, a comprehensive reform of the budgetary framework is provided for to bring it in line with best practices in budgetary procedures and management. The new commitment control system is starting to show results but implementation needs to be monitored closely in order to ensure that commitments are in line with funding. Reforms in the public administration, which have already produced significant savings, will continue. Key reforms to restructure the revenue administration are close to completion and the authorities are enhancing monitoring and strengthening revenue compliance. The renegotiation of PPPs has started and significant savings are projected for 2013 and beyond. SOEs are expected to reach operational balance on average by the end of 2012. Reforms in the health care sector are producing significant savings and implementation is continuing broadly in line with targets.

(7)

A comprehensive expenditure review has been initiated with the objective of enhancing the efficiency and equity of public services, while generating spending savings of about EUR 4 billion or 2,5 % of GDP. The exercise aims at reducing redundancies across the public sector functions and entities, and reallocating resources toward growth-friendly spending areas. The identification, quantification and timetable of the implementation of the measures should be specified by February 2013. The 2013 Stability Programme will provide further information on the medium-term fiscal consolidation plan.

(8)

Under the Commission’s current projections for nominal GDP growth (– 1,0 % in 2011, – 2,7 % in 2012, 0,3 % in 2013 and 2 % in 2014) and the fiscal targets of 5 % of GDP in 2012, 4,5 % in 2013 and 2,5 % in 2014, the debt-to-GDP ratio is expected to develop as follows: 108,1 % in 2011, 120 % in 2012, 122,2 % in 2013 and 122,3 % in 2014. The debt-to-GDP ratio would level off from 2012 onwards and be placed on a downward path after 2014, assuming further progress in the reduction of the deficit. Debt dynamics are affected by several below-the-line operations, including sizeable acquisitions of financial assets, in particular for possible bank recapitalisation and financing to SOEs and differences between accrued and cash interest payments.

(9)

The capital augmentation exercise amounting to EUR 8,2 billion is nearly completed and will allow the participant banks to meet the European Banking Authority regulatory capital buffers as well as the end-of-year target for 2012 of a Core Tier 1 ratio of 10 %. The indicative loan-to-deposit target of 120 % by 2014 will likely be met with some banks already below the threshold at this stage. Efforts to diversify the sources of funding for the corporate sector are being strengthened. The legal acts on bank resolution, including recovery plans, bridge banks and a resolution fund, are being finalised.

(10)

Further progress has been made in implementing growth and competitiveness enhancing structural reforms. In addition to strengthening active labour market policies, the authorities are committed to reducing severance payments in order to promote labour market flexibility and job creation. The implementation of the action plans on secondary school and vocational training is overall progressing as scheduled.

(11)

The transposition of Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market (3) aiming at reducing barriers to entry and boosting competition and economic activity, by facilitating access for new entrants to the market in the different economic regimes, is proceeding at good pace. Licensing procedures and other administrative burdens are also being simplified in different economic sectors such as environment and territorial planning, agriculture and rural development, industry, and geology. A framework law to set the main principles of the functioning of the most important national regulator authorities, including their endowment with strong independence and autonomy, is under preparation.

(12)

Reforms of the judicial system continue to advance according to the agreed schedule. Further progress has been achieved on the reduction of backlog cases and broader reforms such as the geographical reorganisation of the court districts and the reform of the Code of Civil Procedure.

(13)

Each measure required by this Decision is instrumental in re-establishing a sound economic and financial situation in Portugal and restoring its capacity to finance itself on the markets.

(14)

In the light of these developments, Implementing Decision 2011/344/EU should be amended,

(1)

paragraph 7 is replaced by the following:

‘7.   Portugal shall adopt the following measures during 2013, in line with specifications in the Memorandum of Understanding:

(2)

paragraph 9 is replaced by the following:

‘9.   With a view to restoring confidence in the financial sector, Portugal shall adequately recapitalise its banking sector and ensure an orderly deleveraging process. In that regard, Portugal shall implement the strategy for the Portuguese banking sector agreed with the Commission, the ECB and the IMF so that financial stability is preserved. In particular, Portugal shall:

26.1.2013   

EN

Official Journal of the European Union

L 26/34