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Legal framework for mobile TV

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Legal framework for mobile TV

Outline of the Community (European Union) legislation about Legal framework for mobile TV

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Audiovisual and media

Legal framework for mobile TV

Document or Iniciative

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 10 December 2008 – Legal Framework for Mobile TV Networks and Services: Best Practice for Authorisation – The EU Model [COM(2008) 845 final – Not published in the Official Journal].

Summary

This communication follows on from that of 2007 on the strengthening of the internal market for mobile TV, which highlighted the importance of the regulatory environment in the take-up of such services. It provides examples of best practice on national regulatory approaches to mobile TV networks and services.

Since launching its mobile TV initiative, the Commission has published overviews of the existing regulatory landscape in Europe with regular updates. This fact-finding exercise showed that Member States have taken very differing approaches to mobile TV. Consequently, the Telecommunications Council of November 2007 requested that the Commission take a more active role and proceed with identifying best practice on authorisation regimes for mobile TV and guiding the national adoption thereof.

When the Commission launched its mobile TV initiative in July 2007, only a few Member States had started addressing regulatory issues. To date, some Member States have still not established a regulatory framework for mobile TV networks and services, while others intend to extend the application of the general broadcasting regime to mobile TV broadcasting. In any case, the Commission is stressing the importance of avoiding situations of regulatory uncertainty. Furthermore, due to the wireless nature of mobile TV and hence the possible cross-border characteristic that it may acquire in the future, the authorisation regimes should also consider the internal market dimension. It is essential that the national regulatory approaches be as consistent as possible, without dismissing the local specificities.

Currently, the European mobile TV market is characterised by three main regulatory models that define the licensed operator’s rights as well as obligations:

  • extension of existing Digital Terrestrial Television (DTT) rules; however, this might not suffice eventually;
  • the “plain wholesale model”, where spectrum is assigned to a single operator may raise concerns under the competition directive, in particular if the assignment is made without an open and fair procedure under non-discriminatory rules;
  • the “integrated approach”, which in the Commission’s opinion seems to best suit the launch of the mobile TV service since it will involve all relevant market players.

The regulatory regime for mobile TV services should be conceived in such a way that any undue impediments or delays are avoided. The role of regulation should be to provide minimum standards, which will guarantee the efficient use of frequencies. The central elements to consider in the regulatory regime are the:

  • general framework, which should be clear, transparent and adaptable to new developments. The authorisation procedures should be efficient and open to all market players so that a level playing field is guaranteed. Similarly, a timely legislative process needs to be ensured. In order to tailor regulation to the needs of the market, Member States should put in place public consultation mechanisms. At the same time, regular reporting by public authorities on market developments is considered best practice, so that appropriate propositions can be made if the existing rules need to be adapted accordingly.
  • authorisation regimes, which should be clear and transparent. To this end, the relationship between e-communications, spectrum and content rules should be clearly defined. Furthermore, the granting of authorisations should be centralised through a “one-stop-shop” to provide for a simplified and coordinated procedure.
  • award procedures that should be public, transparent and well defined, and for which a clear schedule should be put in place ahead of the commercial trials of mobile TV services. The award criteria should insist on quality of service, optimal use of spectrum and collaboration among the market players. The criteria should be applied in an objective, transparent and non-discriminatory manner, with due consideration given to competition rules.
  • specific aspects, which should not impose any unnecessary burdens on operators. For example, “must-carry” rules are not appropriate at this stage of mobile TV service development; however, Member States should organise discussions on “must offer” rules. At the same time, network infrastructure sharing and co-location should be encouraged, while the issues concerning interoperability and roaming should also be taken into consideration.

To further guarantee the effectiveness of the regulatory practices relating to mobile TV, the Commission aims to continue promoting the exchange of best practice between national administrators and the relevant market players.

General provisions ERDF – ESF – Cohesion Fund

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General provisions ERDF – ESF – Cohesion Fund

Outline of the Community (European Union) legislation about General provisions ERDF – ESF – Cohesion Fund

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Agriculture > General framework

General provisions ERDF – ESF – Cohesion Fund (2007-2013)

Document or Iniciative

Council Regulation (EC) No 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1260/1999 [See amending acts].

Summary

The aim of the Regulation is to strengthen economic and social cohesion in order to promote the harmonious, balanced and sustainable development of the European Union (EU) regions for the period 2007-2013. European cohesion policy aims to respond to the challenges linked to economic, social and territorial inequalities, the acceleration of economic restructuring and the ageing of the population.

This Regulation:

  • defines the context for cohesion policy (including the Community strategic guidelines for cohesion, growth and employment);
  • defines the objectives to which the Structural Funds and the Cohesion Fund (hereinafter referred to as “the Funds”) are to contribute;
  • defines the criteria Member States and regions must meet to be eligible for the Funds;
  • defines the financial resources available and the criteria for allocating them;
  • defines the principles and lays down the rules on partnership, programming, evaluation, management, monitoring and inspection on the basis of responsibilities shared between the Member States and the Commission.

THREE NEW OBJECTIVES

A total of EUR 308.041 billion will be allocated to financing regional policy between 2007 and 2013 to work towards the three new objectives: Convergence, Regional Competitiveness and Employment and Territorial Cooperation. These objectives will supersede the former Objectives 1, 2 and 3 for the 2000-2006 programming period.

Convergence

The Convergence objective is quite close to the previous “Objective 1”. It aims to help the least-developed Member States and regions catch up more quickly with the EU average by improving conditions for growth and employment. It covers the Member States and regions whose development is lagging behind. The fields of action will be physical and human capital, innovation, knowledge-based society, adaptability to change, the environment and administrative effectiveness. It will be financed by the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion Fund.

The total resources allocated to this objective are EUR 251.163 billion, equivalent to 81.54 % of the total. The following are eligible:

  • for the Structural Funds (ERDF and ESF):
    1. regions where per capita GDP is below 75 % of the European average. They must be at NUTS II level. They will receive 70.51 % of the funds allocated for this objective;
    2. regions where per capita GDP has risen above 75 % of the European average (due to the statistical effect of EU enlargement including more deprived regions) will benefit from transitional, specific and degressive financing. They will receive 4.99 % of the total allocation;
  • for the Cohesion Fund: Member States whose per capita Gross National Income (GNI) is below 90 % of the European average and which are running economic convergence programmes. They will receive 23.22 % of the resources allocated for this objective. Regions where per capita GNI has risen to above 90 % of the European average (due to the statistical effect of EU enlargement including more deprived regions) will benefit from transitional, specific and degressive financing;
  • for specific financing from the ERDF: the outermost regions. The aim is to facilitate their integration into the internal market and to take account of their specific constraints (such as compensation for excess costs due to their remote location).

For this objective, the following ceilings apply to co-financing rates:

  • 75 % of public expenditure co-financed by the ERDF or the ESF. The ceiling can be raised to 80 % where the eligible regions are located in a Member State covered by the Cohesion Fund, and even to 85 % in the case of the outermost regions;
  • 85 % of public expenditure co-financed by the Cohesion Fund;
  • 50 % of public expenditure co-financed in the outermost regions (a new additional allocation from the ERDF to compensate for excess costs).

Regional Competitiveness and Employment

The Regional Competitiveness and Employment objective aims to strengthen the competitiveness, employment and attractiveness of regions other than those which are the most disadvantaged. It must help to anticipate economic and social changes, promote innovation, entrepreneurship, protection of the environment, accessibility, adaptability and the development of inclusive labour markets. It will be financed by the ERDF and the ESF.

The eligible regions are:

  • regions which fell under Objective 1 during the period 2000-06, which no longer meet the regional eligibility criteria of the Convergence objective, and which consequently benefit from transitional support. The Commission will produce a list of these regions. Once adopted, the list will be valid from 2007 to 2013;
  • all other EU regions not covered by the Convergence objective.

With regard to the programmes financed by the ESF, the Commission proposes four priorities within the European Employment Strategy (EES): to improve the adaptability of workers and businesses, to increase social inclusion, to improve access to employment and to implement reforms in the fields of employment and inclusion.

The resources intended for this objective total EUR 49.13 billion, equivalent to 15.95 % of the total and divided equally between the ERDF and the ESF. Of this amount:

  • 78.86 % is intended for the regions not covered by the Convergence objective.
  • 21.14 % is earmarked for transitional degressive support.

Under this objective, measures can be co-financed up to 50 % of public expenditure. The ceiling is 85 % for the outermost regions.

European Territorial Cooperation

The European Territorial Cooperation objective aims to strengthen cross-border, transnational and inter-regional cooperation. It is based on the old European INTERREG initiative and will be financed by the ERDF. It aims to promote common solutions for neighbouring authorities in the fields of urban, rural and coastal development, the development of economic relations and the creation of networks of small and medium-sized enterprises (SMEs). Cooperation will be based around research, development, information society, the environment, risk prevention and integrated water management.

13 Regions eligible for funding are those regions at NUTS III level which are situated along internal land borders, certain external land borders and certain regions situated along maritime borders separated by a maximum of 150 km. The Commission will adopt a list of eligible regions.

In the case of networks of cooperation and exchange of experience, the entire EU territory is eligible. The ceiling for co-financing is 75 % of public expenditure.

The resources intended for this objective total EUR 7.75 billion, equivalent to 2.52 % of the total, fully covered by the ERDF. This amount will be distributed between the different components as follows:

  • 73.86 % for financing cross-border cooperation;
  • 20.95 % for financing transnational cooperation;
  • 5.19 % for financing interregional cooperation.

PROVISIONS SPECIFIC TO THE THREE OBJECTIVES

Principles of operation

The Funds will provide assistance which complements national action, including action at regional and local levels. The Commission and the Member States will ensure that assistance from the Funds is consistent with the activities, policies and priorities of the EU and complementary to other European financial instruments.

The objectives of the Funds will be pursued according to multiannual programming and close cooperation between the Commission and each Member State.

Strategic approach

The Council adopts the Community strategic guidelines for Cohesion before 1 January 2007. These guidelines define the priorities and objectives of the cohesion policy for the period 2007-2013. They therefore contribute to the coherent and effective implementation of the structural funds

Based on these guidelines, Member States then adopt a national strategic reference framework. This framework therefore serves as the base for programming actions financed by the Funds. It ensures the that interventions of the funds are in-line with the strategic guidelines.

Operational programmes

The Member States’ operational programmes are to cover the period from 1 January 2007 to 31 December 2013.Operational programmes deal with only one of the three objectives and receive financing from a single Fund. The Commission appraises each programme proposed to determine whether it contributes to the objectives and priorities of:

  • the national strategic reference framework;
  • the Community strategic guidelines on cohesion.

Operational programmes relating to the Convergence and Regional Competitiveness and Employment objectives must include:

  • justification for the priorities in view of the strategic guidelines on cohesion and the national strategic reference framework;
  • information on the priority areas and their specific objectives;
  • a financing plan;
  • the implementing provisions for the operational programme;
  • a list of major projects linked to an operation comprising a set of works, activities or services whose total cost exceeds EUR 25 million in the case of the environment and EUR 50 million in the other fields.

Management, monitoring and inspections

Member States will be responsible for the management and control of operational programmes. They will ensure that the management and control systems are set up in accordance with the provisions of this Regulation. They will also prevent, detect and correct irregularities and recover amounts unduly paid.

The management and control systems of operational programmes set up by Member States will provide for:

  • the definition of the functions of the bodies involved in management and control;
  • compliance with the principle of separation of functions between these bodies;
  • procedures for ensuring the correctness and regularity of expenditure declared under the operational programme;
  • reliable accounting, monitoring and financial reporting systems;
  • a system of reporting and monitoring where the responsible body entrusts the execution of tasks to another body;
  • arrangements for auditing the functioning of the systems;
  • systems and procedures to ensure an adequate audit trail;
  • reporting and monitoring procedures for irregularities and the recovery of amounts unduly paid.

For each operational programme, the Member State will designate the following:

  • a managing authority (a national, regional or local public authority or a public or private body which manages the operational programme);
  • a certifying authority (a national, regional or local public authority or body which certifies statements of expenditure and applications for payment before they are sent to the Commission);
  • an audit authority (a national, regional or local public authority or body designated for each operational programme and responsible for verifying the effective functioning of the management and control system).

Information and publicity

The Member States and the managing authority for the operational programme will provide information on and publicise operations and programmes which receive co-financing. The information will be addressed to EU citizens and the beneficiaries, with the aim of highlighting the role of the Community and ensuring that assistance from the Funds is transparent.

BACKGROUND

The other provisions on cohesion policy for the period 2007-2013 are set out in the four specific regulations on:

  • the European Regional Development Fund (ERDF);
  • the European Social Fund (ESF);
  • the Cohesion Fund;
  • the European grouping of cross-border cooperation (EGCC).

Politically speaking, the financial basis of the cohesion policy for 2007-2013 is the Interinstitutional Agreement and the Financial Framework for 2007-2013.

SUMMARY TABLE

Objectives Financial instruments
Convergence ERDF
ESF
Cohesion funds
Regional competitiveness and employment ERDF
ESF
European territorial cooperation ERDF

References

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1083/2006

1.8.2006

–

OJ L 210 of 31.7.2006
Amending act(s) Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1341/2008

24.12.2008

–

OJ L 348 of 24.12.2008
Regulation (EC) No 85/2009

30.1.2009

–

OJ L 25 of 29.1.2009

Regulation (EC) No 284/2009

9.4.2009

–

OJ L 94 of 8.4.2009

Regulation (EU) No 539/2010

25.6.2010

–

OJ L 158 of 24.6.2010
Regulation (EU) No 1310/2011

23.12.2011

–

OJ L 337 of 20.12.2011
Regulation (EU) No 1311/2011

20.12.2011

–

OJ L 337 of 20.12.2011
Regulation (EU) No 423/2012

23.5.2012

–

OJ L 133 of 23.5.2012

Subsequent amendments and corrections to Regulation No 1083/2006 have been incorporated into the basic text. This consolidated versionis for reference purposes only.

Related Acts

Commission Decision 2010/802/EU of 21 December 2010 exempting certain cases of irregularity arising from operations co-financed by the Structural Funds and by the Cohesion Fund for the 2000-2006 programming period from the special reporting requirements laid down by Article 5(2) of Regulation (EC) No 1681/94 and by Article 5(2) of Regulation (EC) No 1831/94 [Official Journal L 341 of 23.12.2010].

Commission Decision 2007/766/EC of 14 November 2007 drawing up the list of regions and areas eligible for financing under the Cross-border Cooperation Component of the Instrument for Pre-accession Assistance for the purpose of cross-border cooperation between Member States and beneficiary countries for the period 2007 to 2013 [Official Journal L 310 of 28.11.2007].

Commission Decision 2006/769/EC of 31 October 2006 drawing up the list of regions and areas eligible for funding from the European Regional Development Fund under the cross-border and transnational strands of the European Territorial Cooperation objective for the period 2007 to 2013 [Official Journal L 312 of 11.11.2006].

Commission Decision 2006/597/EC of 4 August 2006 drawing up the list of regions eligible for funding from the Structural Funds on a transitional and specific basis under the Regional Competitiveness and Employment objective for the period 2007-2013 [Official Journal L 243 of 6.9.2006].

Commission Decision 2006/596/EC of 4 August 2006 drawing up the list of regions eligible for funding from the Cohesion Fund for the period 2007-2013 [Official Journal L 243 of 6.9.2006].

Commission Decision 2006/595/EC of 4 August 2006 drawing up the list of regions eligible for funding from the Structural Funds under the Convergence objective for the period 2007-2013 [Official Journal L 243 of 6.9.2006].

Cohesion Fund

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Cohesion Fund

Outline of the Community (European Union) legislation about Cohesion Fund

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Agriculture > General framework

Cohesion Fund (2007-2013)

Document or Iniciative

Council Regulation of 14 July 2004 (EC) No 1084/2006 of 11 July 2006 establishing a Cohesion Fund and repealing Regulation (EC) No 1164/94 [Official Journal L 210 of 31.7.2006].

Summary

During the period 2007-2013, the general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund require the Cohesion Fund to support measures under the “Convergence” objective, the aim of which is to speed up convergence in the Member States and regions whose development is lagging behind by improving conditions for growth and employment.

The ceiling for the Cohesion Fund’s contribution to public expenditure co-financed in the Member States is set at 85 %.

Goals

The aim of the Cohesion Fund is to strengthen economic and social cohesion in the European Union (EU) with a view to promoting sustainable development.

Fields of activity

The Cohesion Fund finances action on:

  • the environment (within the priorities assigned to the Community’s environmental protection policy under the policy and action programme on the environment. In this context, the Fund may also intervene in areas related to sustainable development and transport outside trans-European networks);
  • the trans-European transport networks, especially the priority projects of European interest.

Restrictions

Cohesion Fund assistance is subject to restrictions, in that the Council may:

  • decide that there is an excessive government deficit in a beneficiary Member State;
  • conclude that the Member State concerned has not taken effective action in response to a Council recommendation. The Council may therefore decide to suspend all or part of the commitments from the Fund for the Member State concerned.

Eligible expenditure

Although eligibility is decided at national level, the Regulation states that the following types of expenditure are not eligible for Cohesion Fund financing:

  • recoverable value-added tax;
  • interest owed;
  • land purchases accounting for more than 10 % of total eligible expenditure;
  • accommodation;
  • decommissioning of nuclear power stations.

Background

Other provisions relating to cohesion policy for the period 2007-2013 are found in the four specific Regulations on:

  • general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund;
  • the European Regional Development Fund (ERDF);
  • the European Social Fund;
  • the European grouping of territorial cooperation (EGTC).

Cohesion policy for the period 2007-2013 is based on the Interinstitutional Agreement and the Financial Framework for 2007-2013

This Regulation entered into force on 1 August 2006, and Regulation (EC) No 1164/94 was repealed on the same date. The present Regulation must be reviewed by 31 December 2013.

References

Act Entry into force Deadline for transposition in the Member States Official Journal

Regulation (EC) No 1084/2006

1.8.2006 – OJ L 210 of 31.7.2006

Related Acts

ELIGIBLE REGIONS

Commission Decision of 26 March 2007 amending Decision 2006/596/EC drawing up the list of Member States eligible for funding from the Cohesion Fund for the period 2007 to 2013 as concerns Bulgaria and Romania [Official Journal L 87 of 28.3.2007].

Commission Decision 2006/596/EC of 4 August 2006 drawing up the list of Member States eligible for funding from the Cohesion Fund for the period 2007-2013 [Official Journal L 243 of 6.9.2006].

Commission Decision 2006/595/EC of 4 August 2006 drawing up the list of regions eligible for funding from the Structural Funds under the Convergence objective for the period 2007-2013 [Official Journal L 243 of 6.9.2006].

INDICATIVE ALLOCATION BY MEMBER STATE

Commission Decision 2006/594/EC of 4 August 2006 fixing an indicative allocation by Member State of the commitment appropriations for the Convergence objective for the period 2007-2013 [Official Journal L 243 of 6.9.2006].

COMMUNITY STRATEGIC GUIDELINES

Council Decision 2006/702/EC of 6 October 2006 on Community strategic guidelines on cohesion [Official Journal L 291 of 21.10.2006].

The draft Community strategic guidelines on cohesion, growth and employment were adopted by the Council on 6 October 2006. They constitute an indicative framework for establishing a cohesion policy and the intervention of the Funds during the period 2007-2013.

Communication from the Commission of 5 July 2005, Cohesion Policy in Support of Growth and Jobs – Community Strategic Guidelines, 2007-2013 [COM(2005) 299 – Not published in the Official Journal].

ANNUAL ACTIVITY REPORTS

Annual Report on the Cohesion Fund (2006) [COM(2007) 678 final – Not published in the Official Journal].

Annual report on the Cohesion Fund (2005) [COM(2006) 635 final – Not published in the Official Journal].

Annual report on the Cohesion Fund (2004) [COM(2005) 544 final – Not published in the Official Journal].

Annual report on the Cohesion Fund (2003) [COM(2004) 766 final – Not published in the Official Journal].

Annual report on the Cohesion Fund (2002) [COM(2003) 697 final – Not published in the Official Journal].

Progress towards convergence in the Member States

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Progress towards convergence in the Member States

Outline of the Community (European Union) legislation about Progress towards convergence in the Member States

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Economic and monetary affairs > Institutional and economic framework of the euro

Progress towards convergence in the Member States

Document or Iniciative

Report from the Commission: Convergence report 2004 [COM(2004) 690 – Not published in the Official Journal].

Summary

This report, dated 20 October 2004, analyses the progress made towards convergence in the ten countries which became Member States of the European Union (EU) on 1 May 2004 (the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia, Slovakia) and Sweden (a Member State since 1995). Progress towards convergence is assessed by reference to:

  • compatibility of legislation;
  • price stability;
  • the government budgetary position;
  • exchange rate stability;
  • long-term interest rates.

Assessing progress towards convergence

For all of those countries, the Commission finds that, regrettably, the laws governing their national banks are not compatible with Article 109 of the Treaty establishing the European Communities (EC Treaty) or with the Statute of the European System of Central Banks (ESCB) and the European Central Bank (ECB) as regards the integration of their central bank into the ESCB upon adoption of the euro. The situation regarding progress towards convergence in the Member States is as follows:

The Czech Republic. The average rate of inflation remained around 1.8% in the twelve months to August 2004, thereby fulfilling the criterion on price stability. However, the Czech Republic is the subject of a decision on the existence of an excessive deficit (Council Decision of 5 July 2004). With a general government deficit of 12.6% of GDP and government debt at 37.8% of GDP in 2003, the Czech Republic does not fulfil the criterion on the government budgetary position. The average long-term interest rate in the Czech Republic was 4.7%, which fulfils the criterion on the convergence of long-term interest rates. The Czech koruna is not participating in the exchange rate mechanism (ERM II). The Commission concludes that there should be no change in the status of the Czech Republic as a “Member State with a derogation”.

Estonia. With an average inflation rate of 2%, Estonia fulfils the criterion on price stability. Estonia also fulfils the criterion on the government budgetary position (the general government surplus was 3.1% of GDP in 2003, and government debt was 5.3% of GDP) and meets the criterion on the convergence of long-term interest rates. Estonia has been participating in ERM II since 28 June 2004. The Commission concludes that there should be no change in the status of Estonia as a “Member State with a derogation”.

Cyprus. With an average inflation rate of 2.1%, Cyprus fulfils the criterion on price stability. Cyprus is the subject of a decision on the existence of an excessive deficit (Council Decision of 5 July 2004). With a budget deficit of 6.4% of GDP in 2003 and government debt at 70.9% of GDP, Cyprus does not fulfil the criterion on the government budgetary position. However, it fulfils the criterion on the convergence of long-term interest rates (5.2%). The Cyprus pound is not participating in ERM II. The Commission concludes that there should be no change in the status of Cyprus as a “Member State with a derogation”.

Latvia. Latvia has an average inflation rate of 4.9% and hence does not fulfil the criterion on price stability. It fulfils the criterion on the government budgetary position (general government deficit was 1.5% of GDP in 2003; government debt was 14.4% of GDP). The interest rate in the year to August 2004 was 5%. Latvia therefore fulfils the criterion on the convergence of long-term interest rates. The Latvian lats is not participating in ERM II. Latvia does not fulfil the exchange rate criterion. The Commission concludes that there should be no change in the status of Latvia as a “Member State with a derogation”.

Lithuania. Prices are stable, as the rate of inflation remained around -0.2%. The general government deficit was 1.9% of GDP in 2003, and government debt was 21.4% of GDP. Lithuania therefore fulfils the criterion on the government budgetary position. The interest rate was 4.7%, which means that Lithuania fulfils the criterion on the convergence of long-term interest rates. Lithuania has been participating in ERM II since 28 June 2004, but did not fulfil the exchange rate criterion at the time of drafting of this report (ERM II participation has been less than two years). The Commission concludes that there should be no change in the status of Lithuania as a “Member State with a derogation”.

Hungary. The average rate of inflation was 6.5%. Hungary does not fulfil the criterion on price stability. The country is the subject of a decision on the existence of an excessive deficit (Council Decision of 5 July 2004): the general government deficit was 6.2% of GDP in 2003, while government debt was 59.1% of GDP. Hungary does not fulfil the criterion on the government budgetary position. The average long-term interest rate was 8.1% in 2004, which means that Hungary does not fulfil the criterion on the convergence of long-term interest rates. The Hungarian forint is not participating in ERM II and Hungary does not fulfil the exchange rate criterion. The Commission concludes that there should be no change in the status of Hungary as a “Member State with a derogation”.

Malta. The average rate of inflation was 2.6%. Malta does not fulfil the criterion on price stability. The country is the subject of a decision on the existence of an excessive deficit (Council Decision of 5 July 2004): the general government deficit was 9.7% of GDP in 2003, while government debt was 71.1% of GDP. Malta fulfils the criterion on the convergence of long-term interest rates (an average of 4.7% in 2004). The Maltese lira is not participating in ERM II. Malta does not fulfil the exchange rate criterion. The Commission concludes that there should be no change in the status of Malta as a “Member State with a derogation”.

Poland. Poland had an average inflation rate of 2.5% and does not fulfil the criterion on price stability. The country is the subject of a decision on the existence of an excessive deficit (Council Decision of 5 July 2004): the general government deficit was 3.9% of GDP in 2003, while government debt was 45.4% of GDP. The average long-term interest rate was 6.9%, which means that the criterion on the convergence of long-term interest rates has not been met. The Polish zloty is not participating in ERM II. Poland does not fulfil the exchange rate criterion. The Commission concludes that there should be no change in the status of Poland as a “Member State with a derogation”.

Slovenia. With a rate of inflation of around 4.1%, Slovenia does not fulfil the criterion on price stability. The general government deficit was 2% of GDP in 2003, and government debt was 29.4% of GDP. Slovenia therefore fulfils the criterion on the government budgetary position. The interest rate was 5.2%, which means that the criterion on the convergence of long-term interest rates has been met. The country has been participating in ERM II since 28 June 2004, but did not fulfil the exchange rate criterion at the time of drafting of this report (ERM II participation has been less than two years). The Commission concludes that there should be no change in the status of Slovenia as a “Member State with a derogation”.

Slovakia. With a rate of inflation of around 8.4%, Slovakia does not fulfil the criterion on price stability. The country is the subject of a decision on the existence of an excessive deficit (Council Decision of 5 July 2004): the general government deficit was 3.7% of GDP in 2003, while government debt was 42.6% of GDP. Slovakia does not fulfil the criterion on the government budgetary position. The interest rate was 5.1%, so Slovakia fulfils the criterion on the convergence of long-term interest rates. The Slovak koruna is not participating in ERM II and Slovakia does not fulfil the exchange rate criterion. The Commission concludes that that there should be no change in the status of Slovakia as a “Member State with a derogation”.

Sweden. In the 2002 convergence report, the Commission assessment was that Sweden already fulfilled three of the convergence criteria (on price stability, the government budgetary position and the convergence of interest rates). With an average inflation rate of 1.3%, Sweden continues to fulfil the criterion on price stability. It also fulfils the criterion on the government budgetary position (the general government surplus was 0.3% of GDP in 2003 and government debt was 52% of GDP). Sweden fulfils the criterion on the convergence of long-term interest rates (4.7%). The Swedish krona is not participating in ERM II, and Sweden still does not fulfil the exchange rate criterion. Swedish legislation continues not to be fully compatible with Articles 108 and 109 of the Treaty or with the ESCB/ECB Statute as regards the financial independence of Sweden’s central bank and its integration into the ESCB upon adoption of the euro. The Commission concludes that there should be no change in the status of Sweden as a “Member State with a derogation”.

Background

In accordance with Article 122(2) of the Treaty, the Commission and the European Central Bank (ECB) are required to report to the Council at least once every two years, or at the request of a Member State with a derogation, on the progress made by the Member States in fulfilling their obligations for achieving economic and monetary union.

Related Acts

Report from the Commission of 5 December 2006: Convergence report 2006 [COM(2006) 762 – Not published in the Official Journal].

The European Commission’s review of the progress made by Member States not participating in the single currency towards meeting the convergence criteria for the introduction of the euro.

Report from the Commission of 16 May 2006: Convergence report 2006 on Slovenia [COM(2006) 224 – Not published in the Official Journal].

On the basis of the convergence criteria, the European Commission considers that Slovenia has achieved a high degree of sustainable convergence. The report was prepared in response to a request submitted by Slovenia on 2 March 2006. Slovenia will introduce the euro on 1 January 2007, the Council of the European Union having adopted a decision to that effect on 11 July 2006.

Report from the Commission of 16 May 2006: Convergence report 2006 on Lithuania [COM(2006) 223 – Not published in the Official Journal].

In this report, the European Commission concludes that there should be no change in the status of Lithuania as a “Member State with a derogation”. The European Commission is of the opinion that Lithuania has made significant progress towards achieving a high degree of sustainable convergence. Lithuania meets the convergence criteria on public finances, exchange rate stability and long-term interest rates, but does not, as yet, meet the criterion on price stability. The report was prepared in response to a request submitted by Lithuania on 16 March 2006.

 

Institutional and economic framework of the euro

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Institutional and economic framework of the euro

Outline of the Community (European Union) legislation about Institutional and economic framework of the euro

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Economic and monetary affairs > Institutional and economic framework of the euro

Institutional and economic framework of the euro

So far, 17 of the 27 Member States of the European Union have introduced the single currency. The European Central Bank and the national central banks together form the Eurosystem which aims to maintain price stability within the euro zone and protect the euro’s purchasing power. Member States wishing to introduce the euro must meet certain economic criteria (“convergence criteria”). The United Kingdom and Denmark have negotiated opt-out clauses and do not participate in the single currency.

Reference scenario

  • Third stage of Economic and Monetary Union
  • Introducing the Euro: convergence criteria
  • Reference scenario: Madrid European Council
  • Recommendations for future changeovers to the euro

THE MEMBER STATES AND THE EURO

“Euro area” Member States

  • Accession by Estonia to the euro (2011)
  • The introduction of the euro in Slovakia (2009)
  • Accession of Cyprus and Malta to euro area (2008)
  • Towards adoption of the euro in 2008: Cyprus and Malta
  • Slovenia authorised to join the euro zone (2007)
  • Greece’s membership in the single currency
  • Identification of the Member States participating in the third stage of EMU (1999)
  • Conversion rates
  • Monetary law of participating Member States

Member States not participating in the euro

  • Denmark : EMU opt-out clause
  • United Kingdom: EMU opt-out clause
  • Sweden: Convergence reports (2002 – 2004 – 2006)
  • Progress towards convergence in the Member States
  • Enlargement of the euro area after 1 May 2004

Relations between the euro area and the other Member States

  • Exchange rate mechanism (ERM II) between the euro and participating national currencies
  • European Council Resolution on the new exchange-rate mechanism
  • Facility providing financial assistance for balances of payments

The euro and non-member countries

  • Agreements on monetary relations (Monaco, San Marino, the Vatican and Andorra)
  • Agreements concerning the French territorial communities
  • Agreements on exchange-rate matters (Cape Verde, the CFA area and the Comores)
  • The euro and the international economy

Declaration on the Euro area

  • 2009 Annual Statement on the Euro Area
  • 2007 Annual Statement on the Euro Area

Legal status of the euro

  • Legal certainty: conversion rates and rounding rules
  • Copyright protection of the design for the common face of euro coins

EMU KEY INSTITUTIONS

  • The European Central Bank (ECB)
  • Collection of statistical information by the European Central Bank
  • Application of minimum reserves by the ECB
  • Powers of the ECB to impose sanctions
  • Enlargement of the euro area: adjustment of voting arrangements in the Governing Council of the ECB
  • Economic and Financial Committee
  • Economic Policy Committee

The European Social Fund

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The European Social Fund

Outline of the Community (European Union) legislation about The European Social Fund

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > General framework

The European Social Fund (2007-2013)

Document or Iniciative

Regulation (EC) No 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund and repealing Regulation (EC) No 1784/1999 [See amending acts].

Summary

For the period 2007-2013, the general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund provide that the ESF shall support actions in the context of the Convergence objective (for least-developed regions) and the Regional Competitiveness and Employment objective (which tries to anticipate and promote economic changes in order to meet challenges).

Tasks

The ESF shall support the policies of Member States to refocus the Lisbon Strategy on growth and employment. Such policies are closely linked to the Broad Economic Policy Guidelines (BEPG), the European Employment Strategy (EES), and employment policy guidelines. More specifically, the ESF aims at:

  • reaching full employment;
  • increasing quality and productivity at work;
  • promoting social inclusion (in particular the access of disadvantaged people to employment);
  • reducing national, regional and local employment disparities.

Scope and priorities

Within the framework of the Convergence and Regional Competitiveness and Employment objectives, the ESF shall support actions in Member States under the following priorities:

  • increasing adaptability of workers, enterprises and entrepreneurs with a view to improving the anticipation and positive management of economic change;
  • enhancing access to employment and the sustainable inclusion in the labour market of job seekers and inactive people;
  • preventing unemployment, in particular long-term and youth unemployment;
  • encouraging active ageing and longer working lives;
  • increasing participation in the labour market;
  • reinforcing the social inclusion of disadvantaged people with a view to their sustainable integration in employment;
  • combating all forms of discrimination in the labour market;
  • enhancing and increasing human capital;
  • promoting partnerships.

Priorities

Furthermore, in the context of the Convergence objective, the ESF shall support the following priorities:

  • more investment in human capital, with reforms in education and training systems, increased participation in lifelong education and training, and the development of human potential in the field of research and innovation;
  • strengthening institutional capacity and efficiency in order to contribute to good governance.

Concentration of support

The Member States shall ensure that the actions supported by the ESF are consistent with and contribute to actions undertaken in pursuance of the European Employment Strategy. Member States shall concentrate support on the implementation of relevant employment recommendations.

Eligibility of expenditure

The rules concerning the eligibility of expenditure shall be decided at national level. Nevertheless, for the ESF the following expenditure is not eligible:

  • recoverable value added tax;
  • interest on debt;
  • purchase of furniture, equipment, vehicles, infrastructure, real estate and land.

Good governance and partnership

The ESF shall promote good governance and partnership. Its support shall be designed and implemented at the appropriate territorial level taking into account the national, regional and local level according to the institutional arrangements specific to each Member State. The Member States shall ensure the involvement of the social partners and adequate consultation and participation of other stakeholders, at the appropriate territorial level, in the preparation, implementation and monitoring of ESF support.

Context

The other provisions relating to cohesion policy for the period 2007-2013 are to be found in four related Regulations:

  • the general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund;
  • the European Regional Development Fund (ERDF);
  • the Cohesion Fund;
  • the European cross-border cooperation groupings (EGCC).

In political terms, the cohesion policy for the period 2007-2013 has its financial basis in the Interinstitutional Agreement and financial framework (2007-2013).

REFERENCES

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1081/2006

1.8.2006

–

OJ L 210 of 31.7.2006
Amending act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 396/2009

22.5.2009

–

OJ L 126 of 21.5.09

Related Acts

Commission Decision 2006/593/EC of 4 August 2006, fixing an indicative allocation by Member States of the commitment appropriations for the Regional competitiveness and employment objective for the period 2007-2013 [Official Journal L 243 of 6.9.2006].
As amended by:

Decision 2010/476/EU [Official Journal L 232 of 2.9.2010].

Council Decision 2006/702/EC of 6 October 2006 on Community strategic guidelines on cohesion [Official Journal L 291 of 21.10.2006].
The draft Community strategic guidelines for cohesion, growth and employment were adopted by the Council on 6 October 2006. These strategic guidelines constitute the indicative framework for the implementation of cohesion policy and the intervention of the Funds in the period 2007-2013.

Communication from the Commission of 5 July 2005, Cohesion Policy in Support of Growth and Jobs: Community Strategic Guidelines, 2007-2013 [COM(2005) 299 – Not published in the Official Journal].

Another Normative about The European Social Fund

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic

Regional policy > Provisions and instruments of regional policy

The European Social Fund (2007-2013)

Document or Iniciative

Regulation (EC) No 1081/2006 of the European Parliament and of the Council of 5 July 2006 on the European Social Fund and repealing Regulation (EC) No 1784/1999 [See amending acts].

Summary

For the period 2007-2013, the general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund provide that the ESF shall support actions in the context of the Convergence objective (for least-developed regions) and the Regional Competitiveness and Employment objective (which tries to anticipate and promote economic changes in order to meet challenges).

Tasks

The ESF shall support the policies of Member States to refocus the Lisbon Strategy on growth and employment. Such policies are closely linked to the Broad Economic Policy Guidelines (BEPG), the European Employment Strategy (EES), and employment policy guidelines. More specifically, the ESF aims at:

  • reaching full employment;
  • increasing quality and productivity at work;
  • promoting social inclusion (in particular the access of disadvantaged people to employment);
  • reducing national, regional and local employment disparities.

Scope and priorities

Within the framework of the Convergence and Regional Competitiveness and Employment objectives, the ESF shall support actions in Member States under the following priorities:

  • increasing adaptability of workers, enterprises and entrepreneurs with a view to improving the anticipation and positive management of economic change;
  • enhancing access to employment and the sustainable inclusion in the labour market of job seekers and inactive people;
  • preventing unemployment, in particular long-term and youth unemployment;
  • encouraging active ageing and longer working lives;
  • increasing participation in the labour market;
  • reinforcing the social inclusion of disadvantaged people with a view to their sustainable integration in employment;
  • combating all forms of discrimination in the labour market;
  • enhancing and increasing human capital;
  • promoting partnerships.

Priorities

Furthermore, in the context of the Convergence objective, the ESF shall support the following priorities:

  • more investment in human capital, with reforms in education and training systems, increased participation in lifelong education and training, and the development of human potential in the field of research and innovation;
  • strengthening institutional capacity and efficiency in order to contribute to good governance.

Concentration of support

The Member States shall ensure that the actions supported by the ESF are consistent with and contribute to actions undertaken in pursuance of the European Employment Strategy. Member States shall concentrate support on the implementation of relevant employment recommendations.

Eligibility of expenditure

The rules concerning the eligibility of expenditure shall be decided at national level. Nevertheless, for the ESF the following expenditure is not eligible:

  • recoverable value added tax;
  • interest on debt;
  • purchase of furniture, equipment, vehicles, infrastructure, real estate and land.

Good governance and partnership

The ESF shall promote good governance and partnership. Its support shall be designed and implemented at the appropriate territorial level taking into account the national, regional and local level according to the institutional arrangements specific to each Member State. The Member States shall ensure the involvement of the social partners and adequate consultation and participation of other stakeholders, at the appropriate territorial level, in the preparation, implementation and monitoring of ESF support.

Context

The other provisions relating to cohesion policy for the period 2007-2013 are to be found in four related Regulations:

  • the general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund;
  • the European Regional Development Fund (ERDF);
  • the Cohesion Fund;
  • the European cross-border cooperation groupings (EGCC).

In political terms, the cohesion policy for the period 2007-2013 has its financial basis in the Interinstitutional Agreement and financial framework (2007-2013).

REFERENCES

Act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 1081/2006

1.8.2006

–

OJ L 210 of 31.7.2006
Amending act Entry into force Deadline for transposition in the Member States Official Journal
Regulation (EC) No 396/2009

22.5.2009

–

OJ L 126 of 21.5.09

Related Acts

Commission Decision 2006/593/EC of 4 August 2006, fixing an indicative allocation by Member States of the commitment appropriations for the Regional competitiveness and employment objective for the period 2007-2013 [Official Journal L 243 of 6.9.2006].
As amended by:

Decision 2010/476/EU [Official Journal L 232 of 2.9.2010].

Council Decision 2006/702/EC of 6 October 2006 on Community strategic guidelines on cohesion [Official Journal L 291 of 21.10.2006].
The draft Community strategic guidelines for cohesion, growth and employment were adopted by the Council on 6 October 2006. These strategic guidelines constitute the indicative framework for the implementation of cohesion policy and the intervention of the Funds in the period 2007-2013.

Communication from the Commission of 5 July 2005, Cohesion Policy in Support of Growth and Jobs: Community Strategic Guidelines, 2007-2013 [COM(2005) 299 – Not published in the Official Journal].